Italy 2020

Italy - 2020 -

ITALY & SERBIA

STRONG CONNECTION IN CHALLENGING TIMES H.E. CARLO LO CASCIO Italian Ambassador to Serbia

GIORGIO AMBROGIO MARCHEGIANI CCIS President and CEO of DDOR Osiguranje

MATTHIAS CLAIVAZ

First Secretary, Head of Economic, Trade and Scientific Cooperation Unit

Italy 2020

Dear readers and friends, I am glad to note that, in this challenging year which is totally different from the previous ones due to the Covid-19 pandemic, we have managed to put together a special publication dedicated to bilateral cooperation between Italy and Serbia in collaboration with one of our members, Diplomacy & Commerce magazine. Thank you to everyone who supported this publication, and above all, to our members and the Italian Embassy in Belgrade, as well as all the partners with whom the Chamber maintains and promotes long-term cooperation.

MIRJANA KOJIĆ Secretary-General

Italian-Serbian Chamber of Commerce

Dear readers, dear friends, The year 2020 will probably be remembered as preposterous all over the world. The coronavirus, which was spreading at incredible speed, at one point paralyzed the entire planet and caused incredible consequences that will be felt for a long time. No-one expected that something so "small" and "invisible" can cause such tectonic disturbances, so no-one was ready to adequately oppose it. Humanity remains blocked at all levels, even though great efforts are being made to find a new model of functioning in such a situation. For the past nine months, we have witnessed all sorts of situations – from mutual support and assistance to nu-

merous sabotages and frauds.

Italy is certainly among the countries most affected by this pandemic, both in terms of the number of victims and in economic terms. How long will it take for Italy to recover at all levels, what was the cooperation between Italy and Serbia like during the pandemic, how much did the pandemic affect investments and development, why is Italy considered a partner of special economic importance… We will cover these and many other topics in this year's special edition "In Focus Italy", the fifth in a row. Maybe this year is not fit for celebrating anniversaries, but we cannot fail to mention the excellent five-year-long cooperation with the Italian Embassy in Bel-

TANJA BANKOVIĆ

JOVANA MARKOVIĆ

RUŽA VELJOVIĆ

tanja.bankovic@color.rs

jovana.markovic@color.rs

ruza.ristanovic@color.rs

Editor in Chief

ILIJA PETROVIĆ INDIGOCHILD Art director

indigochild.ilija@gmail.com

NATAŠA NEŠIĆ

Advertising director

natasa.nesic@color.rs

Advertising manager

Magazine director

JELENA RANDJELOVIĆ

ROBERT ČOBAN

jelena.randjelovic@color.rs

robert.coban@color.rs

Advertising manager

DRAGANA RADOVIĆ Advertising manager

dragana.radovic@color.rs

Director

grade and the Italian-Serbian Chamber. Enjoy reading the latest issue of “In Focus Italy”. 

TANJA BANKOVIĆ

Editor and Chief

Translation

Special thanks to

Print

Embassy of Italy

SNEŽANA BJELOTOMIĆ

MIRJANA KOJIĆ

ZLATNA KNJIGA Jagodina Bagrdanski put bb

Photos

GORAN ZLATKOVIĆ GETTY IMAGES

3 ITALY 2020

Focus

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THE PIANO

The acoustic, stringed musical instrument invented in Italy

by Bartolomeo Cristofori around the year 1700 (the exact year is uncertain).

04 HOT

Italy is a volcanically active country, containing the only active volcanoes in mainland Europe, including Etna, Vesuvius and Stromboli.

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PINOCCHIO

The Adventures of Pinocchio was first published in an Italian newspaper. The classic tale of a wooden toy who comes to life – and who likes to tell lies – was written in 1880 by Carlo Collodi.

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ITALY 2020

06

THE ICE CREAM

Gelato is a popular frozen dessert of Italian origin. It is generally made with a base of 3.25% milk and sugar. It is generally lower in fat than other styles of frozen desserts.

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VESPA

A vespa is an Italian-made motor scooter that many people ride around busy city streets on.

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PIZZA

The first modern pizza, with a tomato base, was made in the Campania region of Naples in 1860. Since then, it has Although the humble pizza has gone through many changes over time, the world’s most delicious pizza can still be found in Naples today.

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FESTA DELLA REPUBBLICA Italy's national day is called the Festa della Repubblica. The founding of the republic is celebrated every year on the 2nd of June.

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WINE FOUNTAIN

A free wine fountain sounds like the stuff of dreams – but it’s a very real thing in Caldari di Ortona in Italy.

The small town has a free wine fountain that flows 24-hours a day with locally grown red wine.

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INTERVIEW

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SERBIAN ECONOMY HAS PROVED TO BE VERY RESILIENT H.E. CARLO LO CASCIO Italian Ambassador to Serbia

We still have to face a certain degree of uncertainty in the next months, but many activities have restarted once again

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E. Carlo Lo Cascio, the Italian ambassador to Serbia, talks about this year, the coronary virus pandemic, how satisfied he is with the current relations between Serbia and Italy and many other things.

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This year was very difficult for Serbia and Italy. How do you see our relationship in it?

2020 began with the successful visit of our Minister of Foreign Affairs Luigi Di Maio to Belgrade. It was a very sig-

nificant moment for our friendship, and it gave continuity to the practice of high-level bilateral meetings, in the wake of the visit of our Prime Minister Giuseppe Conte and other Cabinet Ministers last year. In December, for instance, also our Minister for Eu-

ropean Integration Vincenzo Amendola was here, reiterating our convincing support for the Serbian path towards EU accession. In addition to that, the Minister of Foreign Affairs Ivica Dacic was in Rome in June to meet Minister Di Maio. We can proudly say that the Italian-Serbian “special relationship” is stronger than ever and it was further reinforced even during the global crisis caused by coronavirus.

In difficult times, we helped each other. How important is this to you?

In April Serbia donated to Italy a large amount of sanitary material, that was sent from Belgrade to Rome on seven different aircrafts. This was a very generous donation which helped us in a very concrete way during one of the worst moments of the Covid19 crisis.

We were very grateful to Belgrade and we wanted to do something to reciprocate that gesture. Therefore, at the beginning of August, during the new peak of cases here, the Italian Government decided to send to Serbia an Italian medical team made of several specialized doctors, with the idea to share our experience and our knowledge in the fight against coronavirus.

Thanks to the support of the Ministry of Health, our doctors visited all the main clinical centers of Serbia, with the aim of exchanging advice with local sanitary staff and sharing the lessons learned in dealing with many infected patients in Italy. It was a very useful experience for both sides and I’m pleased to say the Italian medical team was very much impressed by the competences and efficiency of their

Serbian colleagues. I think it was incredibly meaningful that we were able to help each other. I was also personally moved by the solidarity expressed both by ordinary citizens and Authorities. We got hundreds and hundreds of messages of affection and hope during the hardest months in Italy. I will never forget that.

The EU acknowledged that it did not help Italy in time. What lesson did Italy learn from that? What do you think about the establishment of a Recovery Fund to help member countries affected by the virus?

At first, when the number of coro-

THIS CRISIS SHOWED HOW STRONG AND STABLE IS THE ECONOMIC RELATION BETWEEN ITALY AND SERBIA navirus contagions in Northern Italy grew abruptly, it looked like no one could really foresee what was about to happen in the rest of Europe. Italy was among the first heavily hit countries in the Western Hemisphere and the sanitary crisis that followed was very tough. However, Italian citizens reacted with diligence, solidarity and sense of unity to the tragic happenings and a new spirit of national pride emerged. During the summer, af-

ter a long negotiation, the European Council approved the Commission’s proposal for an ambitious Recovery Plan. It was a historical and appropriate decision, which took in full in consideration the ideas that Italy had put forward. A clear signal was given then to all the EU citizens, businesses and financial markets: Europe was reacting in a meaningful, timely and determined way to the crisis. As our Prime Minister Conte said, the European Union embraced a different perspective in favor of a more cohesive and more inclusive Europe, closer to the citizens and ultimately more "political". In other words, an approach more consistent both with the original spirit of the European dream and with the unprecedented challenge posed by COVID19. This is what Italy was looking for and I think that we are very satisfied with what we have achieved.

What does our cooperation look like after the whole situation with the coronavirus?

Our cooperation never stopped, also thanks to the common initiatives taken to combat the epidemic. We still have to face a certain degree of uncertainty in the next months, but many activities have restarted once again. We are waiting for the formation of the new Serbian Government, after which we will be able to resume the well-established practice of high-level bilateral visits. In the meantime, we continue doing what we do better: political contacts, economic cooperation and trade, cultural events.

BOOSTING THE BUDGET The European plan, called “Next Generation EU”, is a new recovery instrument of €750 billion, which will boost the EU budget with new financing raised on the financial markets 7 ITALY 2020

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What impact did this whole situation have on the economy?

Unfortunately, there were negative consequences everywhere. Many countries were severely “hit by the storm” also from an economic point of view. We experienced an unprecedented crisis and now we all have to start building our recovery. The European plan, called “Next Generation EU”, is a new recovery instrument of €750 billion, which will boost the EU budget with new financing raised on the financial markets. Italy is already defining ambitious projects to boost growth and private investment that we plan to realize thanks to EU funding. At the same time, Serbia will continue to be a beneficiary of EU grants, mainly through the Pre-accession instruments, in the new multiannual financial framework. Moreover, the Serbian economy has proved to be very resilient and is already partially recovering. It is a good sign that gives us hope for the last part of the year.

Italians are one of the largest investors in Serbia. How safe are these investments in this period?

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This crisis showed how strong and stable is the economic relation between Italy and Serbia. As I always say: we are here to stay. Although there were some negative consequences and the bilateral trade slightly diminished, Italy is still among the first investors in Serbia and the second economic partner. Considering the current circumstances, I think that this is an excellent result, made possible by the persisting commitment of both countries and - above all - by the tireless activity of many private operators. I’m also very impressed by the “resilience” of the Serbian economy to the current crisis. The financial measures taken by the Government proved to be very helpful to several companies. Our goal should now be not only to bring the level of our cooperation “back to normal”, but also to further promote common economic initiatives. In 2018 we reached a record 4 billion euros bilateral trade. I am sure that we have all the elements needed to break this record very soon. Serbia and the entire

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SERBIA AND THE ENTIRE WESTERN BALKANS ARE GOING THROUGH A PHASE OF PROFOUND TRANSFORMATION Western Balkans are going through a phase of profound transformation.

Economic growth is undoubtedly a big part of it.

What lessons will the world learn from this situation with the coronavirus?

The Covid19 pandemic has affected the entire world, it has deeply shaken the lives of millions of people, it’s still having a significant impact on societies and economies, forcing us to reconsider, in a sudden way, prospects and models of development. The world must learn from this terrible experience and one could say that in Europe

we already did so. We understood that more solidarity is needed among all current and future Member States. We are also evolving towards a more digitalized society. Last but not least, we have to start investing in a more sustainable way and implement a true ecological transition. These are to core principles that the EU is trying to push both at the internal and at the global level. Italy strongly adheres to them.

What are your expectations in the coming period? Do you think we will get the vaccine soon?

I really hope we will be able to get the vaccine soon and stop the pandemic. Italy is directly contributing to the global research effort and the EU has already pulled an incredible amount of financial resources with the goal of creating a vaccine as quickly as possible. In the meantime, our communities should continue to face the situation with patience and resilience, while Governments should act responsibly and take action to prevent the spreading of the disease. Together we will make it. 

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INTERVIEW

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WE ARE ENTERING INTO A NEW PHASE OF DEVELOPMENT GIORGIO AMBROGIO MARCHEGIANI

President of the Italian-Serbian Chamber of Commerce and CEO of DDOR Osiguranje – part of Unipol Group

From the beginning of the COVID-19 outbreak, Italian companies did not stop and everybody has been fighting against it, mostly successfully

hambers were born as “physical “meeting places when both globalization and safety have turned them into “virtual spaces”. The Italian Chamber is a lean organization, based on networking and information exchange, hence, when the Serbian government declared the state of emergency, it was easy to switch to remote work. The Italian Chamber is also part of a system of around 80 chambers that Italy has worldwide. They share practices and solutions, particularly in Europe. During the past months, they were very active in supporting their members in facing the emergency,” the President of the Italian-Serbian Chamber of Commerce (CCIS) and CEO of DDOR, Giorgio Marchegiani says in an interview in which he also talks about business activities of the Italian-Serbian Chamber of Commerce.

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IN THE NEXT 3-4 YEARS, MORE LOCATIONS WILL BECOME VERY APPEALING TO MANUFACTURERS DUE TO THE IMPROVED LOGISTICS, INCLUDING THE LINK TO THE ADRIATIC

Mr. Marchegiani, economic relations between Italy and Serbia have a long-standing structure. What is the situation before, during and post COVID-19?

I recently did a quantitative analysis to get a full picture of the Italian economic presence in Serbia and it is impressive - the key figures are 600+ companies with active and significant activity and more than 35,000 employees plus another 15.000 in strictly connected local suppliers. From the beginning of

the COVID-19 outbreak, these companies did not stop, but everybody has been fighting it, mostly successfully.

These numbers represent the picture of a strong partnership. There are also some non- numerical strengths, which makes this partnership a special one.

I’ll talk about them later.

Italian companies have never stopped coming to Serbia. Which kind of companies are arriving in Serbia currently and how is this post-COVID flow expected to evolve?

The presence of Italian companies is very dynamic and it is the result of 20 years of investment flow, ranging across all industries. Over time, we have observed a change in the type of investments, moving from labour intensive ones to more capital intensive and from manufacturing to services. This mirrors the country’s evolution but also means that Serbia is a partner economy, in which small service companies are also investing, as part of an ecosystem led by large companies. This year is peculiar, because travelling is difficult, but the long term trend will not change – more companies will come, and the focus will remain on SMEs and a wider diffusion of Italian style. We are also entering a new development phase in the country, where the “Made in Italy” label becomes an aspirational element; in fashion, food and furniture. This all will generate growth of the bilateral trade over the next decades.

or on the proximity to “anchor” companies, like in the case of Fiat. I can say that the motorway network has been expanding lately, particularly with the construction of the Miloš Veliki motorway and the completion of the road to Bulgaria and North Macedonia. More developments are expected in Vojvodina and further down south, in Čačak.

In the next 3-4 years, more locations will become very appealing to manufacturers due to the improved logistics, including the link to the Adriatic.

OVER TIME, WE HAVE OBSERVED A CHANGE IN THE TYPE OF INVESTMENTS, MOVING FROM LABOUR INTENSIVE ONES TO MORE CAPITAL INTENSIVE AND FROM MANUFACTURING TO SERVICES

Which sectors do you expect to see a bigger expansion in Serbia?

I think that Serbia is attractive for a wide range of companies. Bearing in mind the structure of Italian companies, I would expect SMEs that are manufacturers, service companies (including IT and distributors) and agri-food companies to come in large numbers. By the way, I also expect a sustained flow of Serbian companies doing business with Italy. Serbia has some very interesting SMEs, for example, in the packaging industry and of course, the IT. Why is Italy considered a special partner to Serbia?

Culture plays an important role in our country’s values. I like to say that a key part of the “Sistema Italia in Serbia” is the exchange of culture. This also includes a non-economic exchange like music, dance, fine arts, exhibitions….

And, of course, food. This is a unique set of activities which expands the partnership between Italy and Serbia from only production and investment to include lifestyle. And make it very special in the process. 

Which are the favourite Serbian regions for the Italian companies to invest and why?

From our analysis we saw a widespread presence (of Italian companies), ranging from Subotica to Vranje and from Loznica to Kladovo. Historically speaking, some clusters are chosen more frequently like Vojvodina and its Bačka and Srem counties. Then there is the area of Kragujevac and Jagodina, as well as Šabac and southern Serbia, near Vranje. Of course, we should mention Belgrade. The choices partly depend on the timing of the investment, on certain local incentives

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CORPORATE

PARTNER FOR CLIENTS

The largest increase was recorded in mobile banking transactions where, in the period from March to July, we saw a growth of 91% compared to the same period last year

clients, at all times. I would like to mention recent research by Moody’s Investor Service, which identified UniCredit as one of the world's most resilient banks and well-placed to withstand any challenges, including the adverse effects of the Covid-19 pandemic.

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FEZA TAN

CEO of UniCredit Bank Serbia

„F

rom the very beginning of the pandemic, the main priorities of UniCredit were the health and safety of our employees and clients. We monitored the situation carefully, so that we were ready to take all of the necessary precautions“, says at the beginning of the interview Feza Tan, CEO of UniCredit Bank Serbia.

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What did the bank's business look like in the new circumstances? What challenges did you face?

— From the very beginning of the pandemic, the main priorities of UniCredit were the health and safety of our employees and clients. We monitored the situation carefully, so that we were ready to take all of the necessary precautions. We quickly and efficiently enabled employees to work from home. At the same time, we immediately advised clients to use our mobile and internet banking channels. In this situation, digital channels played a key role not only for business, but also for communication – we used ours to inform clients about all the changes we made to adapt to the new situation, to remain open for business. The financial sector supports the real economy, including employment, by providing public and private funds. This is why we focused on business continuity and being a reliable partner for our

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ITALY 2020

You invest a lot in digitalization, how much has it helped you?

— Digital transformation is not new for us. We have been investing in the development of online and e-channels for years. The recent challenges we have faced, pushed us to accelerate in this field. Clients, faced with a new reality, have become more open and faster in their acceptance of digital solutions, reflected in the constant increase in dig-

PROUD

We are proud to work together with EBRD to support the Serbian economy ital users and transactions. The largest increase was recorded in mobile banking transactions where, in the period from March to July, we saw a growth of 91% compared to the same period last year. Also, the number of active users doubled. The number of active mobile banking users recorded an average monthly growth of 30% in the same period last year.

Business and municipalities in Serbia will benefit from a €75 million loan provided by the European Bank for Reconstruction and Development (EBRD) to UniCredit Bank Serbia for on-lending to clients, facing the economic impact

of the coronavirus pandemic. Can you tell us more about that?

— With with this loan agreement, we expanded our long-term partnership with the EBRD. We are proud to work together with them to support the Serbian economy. Now, more than ever, it is important that all market players contribute to overcoming the consequences of the pandemic. As one of the leading banks, we have the responsibility and the strength to continue to actively support the development of the country. Business and municipalities in Serbia can now benefit from the €75 million loan provided by the European Bank for Reconstruction and Development (EBRD). The financing helps address the liquidity needs of corporates, small businesses and municipalities. This is another commitment of the bank to support our customers to manage their new cash flow during uncertain times, because we need to stand besides then in the entire live cycle.

UniCredit Bank Serbia donates 50.000 EUR to National Health Insurance Fund for support in fight against COVID -19.

How important is socially responsible business for you in this period?

— In times like these, it is important to stay together and take action for the things that really matter. We are facing a collective challenge and the health of people is a shared top priority. We decided that the best way to address this urgent need is to support the National Health Insurance Fund with € 50.000, enabling it to purchase part of the medical equipment and materials urgently needed for hospitals. Moreover, we have joined the initiative organised by UNICEF, to purchase oxygen flowmeters for the Clinical Centre of Serbia, necessary for the treatment of COVID patients. 

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INTERVIEW

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THE INTEREST FOR SERBIA HAS NEVER DIMINISHED MATTHIAS CLAIVAZ

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

We can proudly say that our companies, both Italian and Serbian, have developed a mature and solid partnership READ THIS ON WEB

he whole world was put to the test and, unfortunately, Italy was among the first countries in Europe to be affected. However, it must be said that the situation has rapidly improved during the summer and, as of today, Italy is among the least affected countries in the EU”, says in an interview Matthias Claivaz, First Secretary Embassy of Italy in Belgrade. In this interview he talked about corona virus pandemic and our economic cooperation.

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The pandemic has put Italy to the test.

What are the economic consequences and when recovery is predicted?

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Of course, the pandemic caused a sudden economic crisis that will badly affect our GDP for 2020. The consequences are also hard to predict, because they mainly depend on the evolution of the epidemic. If one choses an optimistic approach, based on the encouraging news on the vaccines and

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the governments’ tendency to avoid hard lockdowns, the hypothesis of a “V” shaped recession does not seem that unreasonable. It should also be considered that the European Union has adopted an ambitious 750 billion euros Recovery Plan that aims at boosting growth after the crisis. All the Mem-

I WAS IMPRESSED BY THE POSITIVE REACTION OF THE ITALIAN COMPANIES IN SERBIA DURING THE HARDEST MONTHS OF THE EPIDEMIC ber States will be able to mobilize these financial resources to develop important national projects to relaunch their economies. Serbia and all the Western Balkan countries will continue as well

to be beneficiaries of EU aid as already planned by the multi annual financial framework 2021-2027.

How did Italian companies in Serbia survive the crisis caused by the corona virus pandemic?

First of all I have to say that I was impressed by the positive reaction of the Italian companies in Serbia during the hardest months of the epidemic. I was personally in touch with many managers, from big firms to SMEs. The vast majority of them was worried about two things: the security of their employees and the expansion of their activities in Serbia. This is also what emerged from the regular on-line meetings organized by the Italian Embassy with the wider business community. Secondly, the economic package adopted by the Serbian Government last spring and the subsequent direct financial aid for private businesses has been extremely useful for all the Italian companies. Thirdly, we could also

count on two very solid Italian banks, Banca Intesa and Unicredit, that successfully operate in Serbia and were not only able to implement the credit moratorium introduced by the National Bank of Serbia, but also continued to support companies with new credit lines.

Do you believe that the pandemic has reduced or increased the interest of companies and businesspeople for Serbia?

The interest for Serbia has never diminished. Of course, many initiatives and projects have been delayed, since it was almost impossible to travel and gatherings, such as fairs, were not allowed. That did not change one specific aspect: Italian companies know very well that their recovery depends on the ability to internationalize their presence abroad, through exports but also thanks to the opening of new branches in strategic locations. Serbia remains a very attractive destination for foreign direct investments coming from Italy, for many reasons: historical ties, geographical proximity, access to eastern markets. It is not by chance if Italy is still one of the main foreign investors in Serbia. I am also pleased to observe that there is a growing interest coming from Serbian companies that wish to invest and export to Italy. Last year, the Italian Foreign Trade Agency ICE supported many Serbian businesses, promoting their presence at International Fairs in Italy. We can proudly say that our companies, both Italian and Serbian, have developed a mature and solid partnership.

What are the projections of what will be the value of foreign trade between Italy and Serbia at the end of the year, given the situation?

In the first 7 months of 2020 we already reached 1,8 billion euros of bilateral trade. This figure is slightly lower than the one registered last year, but considering the impact of the epidemic on the European economy we can be more than satisfied with the level our bilateral trade. We should now focus on the recovery in the second part of the year, in order to get as closer as possible to the numbers we are used

IN THE FIRST 7 MONTHS OF 2020 WE ALREADY REACHED 1,8 BILLION EUROS OF BILATERAL TRADE

to see. In 2018 we reached the impressive figure of 4 billion euros trade between Italy and Serbia. I am certain that it was not an isolated case, but a phase in the growing trend of our exchanges. Let us not forget that apart from governmental initiatives to reinforce our bilateral ties, it is the will of many companies in Italy and Serbia to find closer collaboration among themselves. We should therefore try to accompany and support the private sector in forging strong partnerships

in both our countries. That is why we have never stopped organizing B2B events, even when the borders were closed we chose to continue our action on-line. Our hope is of course to host again physical events in the very near future.

Can you tell us how production and services, two complementary sectors for the Italian companies in Serbia, went through the COVID19 crisis?

The Italian economic presence in Serbia is very diverse. Manufacturing used to be the sector in which our companies were concentrated, in the past 20 years, however, thanks to the evolution of the Serbian market, the service sector developed very rapidly and many Italian businesses opened their branches in this country. We now have a vast network and Italian-Serbian companies can count on each other’s support. That is what helped our businesses in the most complex phase of the current epidemic: manufacturing companies continued their production, because they built a solid relationship with banks, insurances, law firms and HR consultancies.

They could also count on the Embassy’s support and the great work of the Italian-Serbian Chamber of Commerce, Confindustria Serbia and the Italian Foreign Trade Agency. Moreover, the Serbian economy has proved extremely resilient compared to other economies in the region and the general perspectives for its growth remain positive. In this context, I am sure that Italian companies will continue to thrive. 

ATTRACTIVE DESTINATION Serbia remains a very attractive destination for foreign direct investments coming from Italy, for many reasons 15 ITALY 2020

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CORPORATE

WE WILL GO THROUGH A SERIOUS TRANSFORMATION I think that companies, which aim is transforming their business model, carrying out digitalization and increasing customer satisfaction, will achieve the greatest success and positively affect the dissemination of insurance culture in our society and the business models of other market participants in the long run

DRAGAN FILIPOVIĆ

CEO of Generali Osiguranje Serbia

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EO of Generali Osiguranje Serbia, Dragan Filipović talks about how the insurance industry has adapted to the new circumstances, the future period and his satisfaction with the company's business results so far.

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How did the new circumstances, caused by the COVID-19 pandemic, affect Generali Osiguranje's business?

— It is evident that the pandemic has brought significant changes in the lives of people, society and the economy.

Naturally, dealing with the unknown causes fear in all people. That is why, in the beginning, we focused all our efforts on preserving the health of our people - clients and partners alike - but also on conducting our business activities with even greater commitment. We maintained our personal and teamwork

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ITALY 2020

ethic and motivation and we did not allow everything to stop. Social and physical distance proved to be a good recipe for fighting the virus, but it was clear that the exact opposite was necessary to maintain business and work ethic.

The fact is that this time has forced us to change our habits and the ways we work, but it also showed us that we are ready and able to change and adapt to the situation.

PILLARS

Innovation and digital transformation are one of the three pillars on which our strategy is based We accepted this situation as an opportunity to change for the better.

Bearing in mind that we started with the transformation and digitalization of

our business, promotion and support of remote work (work from home) earlier, I can confidently say that the Generali team quickly and easily adapted to the new situation and that we were immediately ready to enable clients to do all insurance-related activities online or by phone - from filing claims, renewing and contracting insurance to receiving various useful tips and information. We have activated all our online and electronic communication channels to the maximum to provide our clients with good and timely support. I am proud of the dedication and sacrifice of our people and pleased that clients have recognized this. During the first six months of this year, we recorded a slight increase in non-life insurance segment and maintained a leading position in life and health insurance. Bearing in mind that we have been working in extraordinary circumstances for almost six months since the beginning of the year, I can say that we are satisfied with the achieved results.

Do you think that the whole situation with the pandemic will raise the awareness about the importance of health and life insurance?

— Research and analysis conducted at the European level show that the pandemic has significantly increased people's interest in insurance products, especially in the segment of life and health insurance, but also for products that provide financial security in the event of job loss. Having in mind the development of our insurance market and culture, we can say that this trend has been noticed in our country as well. People are more interested in these products and are more willing to invest in their own and their family’s protection. Of course, the trends observed in our market cannot be compared with the trends in European and world markets, but the main reason for that is the financial possibilities and stability of the individual. However, it is important to point out that the interest in insurance products has noticeably increased among people with lower income.

Generali Osiguranje Serbia is the recipient of two prestigious awards for innovative solutions in the user experience category in Southeast Europe.

How important is the digitalization of the insurance sector for Generali Osiguranje?

— Innovation and digital transformation are one of the three pillars on which our strategy is based. We are very committed to the transformation and digitization of our business model through the simplification and automation of processes and the use of artificial intelligence in business. We are shifting our business focus from products to clients, by moving from the traditional business model of an insurance company, which includes protection and disbursement of claims, to prevention and the provision of additional services to clients. We are increasingly providing our clients with different types of assistance 24/7 and dispense advice that suits their needs.

We have enabled them to do most of the insurance activities online and thus increase their satisfaction with the service provided.

You have extended the COVID-19 cov-

erage for your life insurance clients, SMEs and small business owners free of charge. How did you decide to take this step?

— We made such a decision guided by the idea to provide additional protection for our clients in these extraordinary and hitherto unseen circumstances. We thought that by compensating for the days spent in a hospital and all other COVID-treatment facilities with COVID-19 infection, we would additionally protect life insurance clients and increase the financial security of their relatives. Besides, with this decision, we wanted to support SMEs and small business owners to more easily overcome the con-

SUPPORT

We have activated all our online and electronic communication channels to the maximum to provide our clients with good and timely support sequences of downtime due to illness, because they are very important for the economy of our country, and with the beginning of the pandemic, they faced great business and financial challenges. Furthermore, travel insurance clients who were abroad at the time when the pandemic was declared and could not return to the country immediately were allowed to extend their policies by calling our Contact Centre, while health insurance clients were allowed to consult authorized doctors online or by telephone about their health. I am glad that our activities received a very positive reaction from clients and that we once again showed that we have their back regardless of the circumstances and that they are the focus of our business. A satisfied customer is the greatest reward and the best referral for us and our business.

You also donated EUR 100,000 to the Serbian government towards boosting the country’s health system in overcoming the coronavirus epidemic.

How important is socially responsible business for Generali?

— Corporate social responsibility and commitment to sustainable development are the basis of our business strategy. By this, I don't mean only philanthropy, but also activities that provide support to less privileged individuals or communities, as well as activities towards preventing depletion of natural resources to maintain ecological balance so that the quality of life does not decrease over time. In that sense, we are focused on expanding our The Human Safety Net programme, which we are implementing in Serbia in partnership with the Novak Djoković Foundation, creating products for responsible customers and increasing the number of products that have a social and environmental impact. Following our strategy, the donation to the Government of the Republic of Serbia and the Vatreno Oko laboratory, we wanted to contribute to the efforts of health and scientific workers to adequately respond to the increased need for health protection and help them fight the Covid-19 pandemic. In addition to the fact that the Vatreno Oko laboratory has significantly contributed to more testing in Serbia, it is important to us that in the future it will boost the health system in Serbia, but also its research and educational potential, What will be the period ahead of us like in terms of the insurance market?

— The insurance market, like many other industries, will undergo a serious transformation in the coming period and will experience ups and downs. I think that companies, which aim is transforming their business model, carrying out digitalization and increasing customer satisfaction, will achieve the greatest success and positively affect the dissemination of insurance culture in our society and the business models of other market participants in the long run. Companies that are ready to change in line with customer expectations and trends imposed by the new age, that invest in education and satisfaction of their employees and win over customers and the market with personalized products and good service, not low price, are the ones that have a great future. 

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CORPORATE

A LAWYER WHO REACHED THE SKY

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SLAVICA GRAHOVAC

Attorney-at-law and writer

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lavica was given the opportunity to accumulate several decades of work experience and learn perseverance and dedication by working with the renowned attorney Veljko Guberina, a longtime associate and an all-around great man.

In honour of him and the promise that she would do everything necessary for Guberina's legacy not to be forgotten, she wrote the book called "Thus Spoke Guberina" („Tako je govorio Guberina“), which recently had its second (expanded) edition.

The book's reviewers are attorney Milan Sučević, a man who, at the age of 30, joined the exiled Serbs from Croatia on their road to Serbia in the 1990s and lived through everything that Guberina had lived through at the age of 14, and who came to Serbia as a war refugee from Croatia and was welcomed and accepted by Serbia just like Guberina, and Dr Jovan Janjić, also a lawyer, the chronicler of the Serbian Orthodox Church and author of several books

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Slavica Grahovac's law firm has several associates, each of whom is in charge of one branch of law.

In addition to criminal law, the firm also deals with civil, commercial and other branches of law

about the Serbian Orthodox Church and Patriarch Pavle.

You started your career by working side-to-side with the prominent attorney Veljko Guberina, to whom you dedicated several books. What are your memories of that period and how important was that for your further career?

INSTRUCTIVE

I saw Veljko as my best friend, brother and father.

He never let us down and his criticisms were always instructive — My close friendship with the most reputable attorney of that time, Veljko Guberina, started from the moment Dušanka Bojičić founded an etiquette club together with Mr. Guberina. He was looking for associates and as a result of several different circumstances, we officially met and talked on that very day.

He immediately offered me to collabo-

rate with him. That was a nice surprise for me, i.e. that the most famous Serbian attorney chose me out of so many young hopefuls. We joked about this many years later and when I asked him why did he pick me, he said: “For beauty and brains.“ Of course, this event directed the further course of my career and life. From that day until Veljko died in 2015, I worked at his firm and on all of his projects related to advocacy. I was in The Hague Tribunal as a member of the team of investigators working for the Serbian side, as well as worked on the pan-Serbian problems, the Serbian diaspora, organizing public addresses, providing rationales regarding the situation in the country during the 1990s war, etc.

We had so much work to do back then and we were in the public spotlight in the most fateful moments of the existence of a nation. For me, that was a period of learning how and to what extent one loves one's homeland, how one does not give up and when there are no options left, how one stays with one's client even after a constitutional complaint, etc. All of his associates, and there weren't many of us, knew and felt that Veljko was with us and was watching our backs, so his

passing was a great loss for all of us.

He was an old school man with modern ideas, a loyal friend and reliable support in good and evil. I saw Veljko as my best friend, brother and father.

He never let us down and his criticisms were always instructive.

As a lawyer, you took on many challenging cases that some of your colleagues refused to. What motivates you to do this and which case has been the most challenging for you so far?

— I will start from something that many lawyers would have liked to do but only a handful of them had the opportunity to do and that is to stand up and defend war crimes suspects in The Hague Tribunal. We, as the Guberina Law Firm, were among the first to take on the cases of war crimes suspects from the territory of the former SFRY such as the Erdemović-Kremenović case, where we defended Kremenović, who was the first Serb indicted for war crimes.

We won that case and he was subsequently acquitted of all charges. Today he lives near Novi Sad. There was also the case of Mlađa Radić, from the Omarska camp. The position of Serbs suspected of war crimes was very difficult at that time, and even later. When, as Croats used to call them, “a group of brave knights of war” had been indicted

by The Hague Tribunal, the Croatian authorities immediately allocated a budget and had liaison officers, as well as made a schedule for family visits to the indicted officers once a month and provided financial backup for every Croat indicted by The Hague Tribunal. We, on the contrary, had absolutely nothing. Families of our indictees had to resort to pleading with wealthy people to give them money to visit their dear ones in prison once or twice a year.

We did not have a liaison officer just

like we did not have a budget or any secure finances for our indictees in The Hague. It all came down to Serbs detained in The Hague demanding from their lawyers that they give them a percentage of their fees so that they could finance their families coming to see them.

It was the Hague Tribunal that paid lawyers' fees if an indictee did not have the means to afford an attorney, so the indictees knew how much money their attorneys were getting for working on their cases. We, the attorneys, accepted such arrangements to a certain extent but some clients resorted to very serious blackmails and threats to their attorneys. Guberina did not want to be exposed to such pressures and his law firm relatively quickly left The Hague Tribunal.

SMALL NATIONS

believe that small nations, especially those, like us, who are reduced to living in physically small territories, must be politically literate or, better said, familiar with the events in their country and the world I was invited by the American attorney of Serbian origin, Dušan Vučićević, to act as an investigator in the case of Kovačević and Kolundžija, representing the Serbian side, of course. What lessons did I learn from my engagement at The Hague Tribunal? First of all, that power writes laws and history. Namely, we all acted according to the rules that the Tribunal passed only for those purposes.

The Tribunal's rules were written in

English and Serbian. The proceedings in front of the English- or French- speaking council were also in English and Serbian, or just in Serbian, with translation provided. Since I speak several languages, the agreement was for us to speak in front of the English-speaking council and for me to be a ‘spokesperson’ because I knew the language well. Also, it quickly became clear who were your friends and who your enemies in the Tribunal. The French, as very good connoisseurs of history, were well acquainted with the situation in the Balkans and took our side.

What motivated you as an attorney to write about political issues in your books? What is your view of Serbia’s foreign policy?

— I entered politics when I started collaborating with Veljko Guberina and when he continued with the People's Radical Party. I was even the vice chairwoman of the Executive Board of the People's Radical Party. I believe that small nations, especially those, like us, who are reduced to living in physically small territories, must be politically literate or, better said, familiar with the events in their country and the world. I was good at analytics, and while working with Veljko Guberina, I developed my analytical skills to such an extent that we were commenting on various newspapers and TV stations on a daily basis, at that time.

As far as foreign policy is concerned, I believe that small countries must have good diplomatic relations with everyone and that we should look up to countries such as Monaco, the Vatican and the Benelux countries and learn how small countries engage in politics and how they manage to survive so far in the 21st century otherwise we would share the same destiny as the Jews. 

SERBIAN DRAMA One of your books is called "Serbian Drama" ("Srpska drama"). Can you tell us what constitutes drama in the Serbian judiciary today?

- "Serbian Drama" is a purely political book of our reactions over 20 years, which begins from the disintegration of the former Socialists Federal Republic of Yugoslavia (SFRY), of which I was a witness too. I am very pleased with this book.

As far as today's judiciary is concerned, I believe that this

should be discussed by judicial decision-makers in the country today. I am not in that position, but I would like to draw your attention to several problems - all court proceedings are very slow and take years to complete, the attitude towards all judicial experts is humiliating, especially as far as their fees go, since these are regulated by the laws from 1995 and 2000 respectively and all of them, including court interpreters, now usually avoid working with courts.

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CORPORATE

IMPLEMENTATION OF THE LAW IS THE MAIN CHALLENGE

In the next period, the state’s measures must be directed at encouraging investments in areas that have been recognized at the EU level as key in the coming decades, such as the development of new technologies and renewable energy sources

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VLATKO SEKULOVIĆ

Attorney at the Sekulović Law Firm and a member of the Managing Board of the Italian-Serbian Chamber of Commerce

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e have talked to Vlatko Sekulović, an attorney at the Sekulović Law Firm and a member of the Managing Board of the Italian-Serbian Chamber of Commerce, about the effect that the coronavirus had on the arrival of foreign investors and legal regulations in Serbia.

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According to your estimates, how will the whole situation with the COVID-19 pandemic affect the arrival of foreign investors in Serbia?

— The COVID-19 pandemic affected the movement of people worldwide, so, for example, air traffic between the US and the EU is still suspended. The movement of investors is therefore limited by various measures implemented by individual countries. Certainly, this situation does not benefit the arrival of foreign investments in Serbia, nor new cross-border investments anywhere in the world. As the situation becomes less strict, which we all hope for, greater mobility of people will ensure the continuation of investments. This especially refers to those investments that imply locating a certain production in Serbia, which require that executives from an investment company

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need to experience the conditions under which they can invest in our country. In other words, investments made via financial transactions are less sensitive to restrictions on freedom of movement, and those involving the construction of new production facilities are more susceptible to the negative effects of the COVID-19 pandemic.

What other measures could the state implement to reduce the economic consequences (of the pandemic)?

— According to comparable data and based on the opinions of relevant financial organizations, Serbia applied a set of measures that has somewhat eased the economic situation, while taking upon it-

SITUATION

Certainly, this situation does not benefit the arrival of foreign investments in Serbia, nor new crossborder investments anywhere in the world self to cover the cost of payroll tax and contributions which are public revenue.

This measure had a significant economic and psychological effect, whereas in a situation rife with fear caused by an unknown disease, the state functions as a system of risk dispersion, thus reducing anxiety among both employees and employers. In the next period, the state’s measures must be directed at encouraging investments in areas that

have been recognized at the EU level as key in the coming decades, such as the development of new technologies and renewable energy sources.

Domestic legislation has largely been harmonized with the EU standards.

What are the key challenges in the functioning of the legal framework?

— As is often the case with this area, at least as far as the economy is concerned, the main challenge is still the implementation of the law. We have to increase the efficiency of courts, especially higher ones, as well as to have courts share a common stance not only based on decisions of the highest judicial bodies, but also at the level of appellate courts. We are faced with the practice whereby two different councils of the same appellate court have different views in cases that are factually and legally exactly the same. Regarding specific changes in the legal framework, we need to harmonize or replace various bylaws, e.g. regulations governing certain technical aspects, which have not been changed since the 1970s.

What advice will you give to your clients in the future regarding potential investments in Serbia?

— Bearing in mind that Italy, through specialized financial institutions, has earmarked significant funds under extremely favourable conditions for Italian companies intending to invest abroad, it is certain that potential investors have even better conditions for the realization of their business ideas in Serbia, so we are definitely going to focus our advice on that aspect. 

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COMMENT

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STRONG CONNECTION IN CHALLENGING TIMES MIRJANA KOJIĆ

Secretary-General, Italian-Serbian Chamber of Commerce

Being part of our Chamber means being part of a large business family his challenging year, different from all previous ones, has surprised the whole world. Taken aback by the new situation which emerged due to the COVID-19 pandemic, every individual, entrepreneur, company, association and almost every segment of the private and public structures tried to react in the best possible way within their framework and possibilities, to overcome the crisis and maintain stability. Following the examples of developed countries, the Government of the Republic of Serbia intervened on two occasions with specific sets of economic measures and provided assistance to businesses in order to mitigate the consequences of COVID-19.

Through a constant dialogue within the global network of Italian chambers – Assocamerestero and Sistema Italia - our Chamber reacted in accordance with the situation, adhering to the recommended measures and adapting its activities and initiatives while providing maximum support to companies in dealing with both small and big issues they were experiencing. In these difficult times, we tried to assist every company that approached us, but first and foremost, our member companies.

During and after the state of emergency in Serbia, we intensified our dissemination activities. In its bilingual newsletter, the Chamber provided important information on current events, from cross-border movements, through the companies’ needs and offers, to information on measures and regulations of the Government of Ser-

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bia and the Government of Italy. This was followed by online activities that became our daily routine. We did everything we possibly could and thanks to the very good cooperation with our members, whom we would like to extend our gratitude, we jointly organized many webinars covering current topics. Some of these topics are: work safety in the light of emergencies and providing a better business environment; the importance of online business; legal interpretations of regulations and application of economic measures; documenta-

BUSINESS SCOUTING AND BUSINESS NETWORKING POWERFUL MEANS TO IDENTIFY NEW OPPORTUNITIES, TO ESTABLISH NEW CONTACTS AND TO ORGANIZE BUSINESS MISSIONS tion preparation; application of various procedures related to tax policy; new financing opportunities for companies from EU funds and EU projects, cyber security and many others. The dialogue between businesses and institutions continued this time in an online format. This initiative was done in cooperation with another three bilateral chambers in Serbia and it was very well-received as it was always providing unambiguous responses to the

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business community.

During previous months, Italian companies’ interest in placing their products on the Serbian market has notably increased, mostly in agrifood, pharmaceutical, chemical, machine, textile and furniture industries.

This trend confirms that Serbia is still a very interesting market. I would like to underline that Serbian companies (especially from the textile and automotive sectors) have also had many export and import related requests towards Italy.

We missed most the live events, our gatherings and company visits.

We are compensating this, as much as possible, with frequent communication and information exchange with our members. During previous months, this way of working brought us even closer to each other and made us stronger, making us all a part of one big business family under the auspices of the Chamber.

We hope that soon the situation in our country and worldwide will stabilize and that we will see this pandemic ends, in order to be able to contribute to even better cooperation between Italy and Serbia. Our Business Scouting and Business Networking initiatives are enabling companies to identify business opportunities, to establish new business contacts, to conduct targeted market researches and to organize business missions and B2B meetings. These initiatives can accelerate the consolidation of new investments and trade relations between companies, in our case, between Italy and Serbia. 

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ABOUT

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THE ITALIAN-SERBIAN CHAMBER OF COMMERCE (ISCC) ABOUT THE CHAMBER The Italian-Serbian Chamber of Commerce (ISCC) has been operational in Serbia since 2002 and this year it marks its 18th anniversary.

The Chamber belongs to a worldwide network of a total of 79 Italian chambers of commerce abroad (Assocamerestero), which operate in 56 countries and have 140 offices and over 18,000 members.

The Chamber was founded on March 26, 2002, as an Italian-Yugoslav Business Association, while today it goes by the name the Italian-Serbian Chamber of Commerce. The Law 518/70 stipulates that the Chamber is recognized by Government of Italy and is a member of the worldwide network of Italian chambers of commerce abroad (Assocamerestero). It is also a starting point of trust for both Italian and Serbian businesspeople.

MISSION The ISCC monitors all market trends and economic indicators related to the economic cooperation between Serbia and Italy and consequently adjusts its activities to support the activities of its members and the general development of economic exchange between the two markets.

At all times, the ISCC’s main task is to provide a wide range of services, both in Serbia and Italy, including organizing business missions comprised of business people and investors, B2B meetings, market research, sector

analyses, partner search, assistance in dialogue with local institutions and agencies, assistance in privatization and M&A processes, and organization and promotion of trade fairs.

WE ARE AN IMPORTANT FOREIGN CHAMBER OF COMMERCE IN SERBIA AND OUR STABILITY IS GUARANTEED BY OUR MEMBERSHIP COMPRISING OF ABOUT 200 COMPANIES

We are an important foreign chamber of commerce in Serbia and our stability is guaranteed by our membership comprising of about 200 companies. The ISCC’s focus is on small and medium-sized enterprises.

Cooperation with other economic entities and institutions The Italian-Serbian Chamber of Commerce puts a special emphasis on the excellent cooperation with the Italian Embassy in Serbia, the Italian Institute for Foreign Trade and the Italian Institute for Culture.

As such, the ISCC has developed cooperation with practically all Italian and Serbian institutions, other mixed chambers in Serbia, associations and numerous members to promote economic exchange and cooperation between Serbia and Italy. 

EVENTS In previous years, the ISCC has successfully organized several different events, which were planned for this year too if it weren’t for the pandemic. In collaboration with its associates and partner institutions, the ISCC organizes several types of events: seminars, workshops and conferences, busi-

ness meetings, events, chamber after-work receptions and galas. It also gives out the Giuseppe Maria Leonardi Award to those organizations and individuals who contribute the most in the development of economic relations between Italy and Serbia.

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CORPORATE

LAW ON PERSONAL DATA PROTECTION-ONE YEAR AFTER

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Each instance of data processing represents a certain risk for personal data, which needs to be assessed and adequately controlled

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JPM JANKOVIĆ POPOVIĆ MITIĆ LAW FIRM

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he implementation of the new Law on Personal Data Protection (the Law) started more than a year ago, but the question arises to what extent the obligations prescribed by the Law are fulfilled. A significant part of the solution from the General Data Protection Regulation (GDPR) has been copied, which creates numerous new obligations for companies and makes the harmonization process more complex and time-consuming, as well as more demanding in terms of resources. The main impression is that a large number

of companies have not taken the steps necessary to harmonize their business with this Law, which can lead to the imposition of fines, as well as damage to the company's reputation.

Experience tells us that the reasons for companies' non-compliance with the Law differ from company to company.

REASONS

Experience tells us that the reasons for companies' non-compliance with the Law differ from company to company

- There are frequent situations where the parent company, based in the European Union, harmonizes its business with the GDPR, so domestic companies implement these solutions with corrections, believing that, in this way, they have fulfilled their obligations.

- We have also encountered cases where companies use "standard" forms of documents, which do not meet specific needs.

- Finally, many companies are still not aware of the need to implement this Law. The fact that some of the necessary steps have been taken does not mean that compliance with the Law has been carried out.

How individual processing of personal data is performed, as well as the risk regarding the protection of personal data, are different for each legal entity, and thus create different obligations for them. The development and implementation of documents is the last step in this process. The first things that need to be defined are the following: - what data the company processes and their flow

- in which business processes data processing is performed - risk assessment for personal data that is being processed with the appropriate measures applied to reduce the risk to an acceptable level.

For example, a company sells furni-

STEPS

The fact that some of the necessary steps have been taken does not mean that compliance with the Law has been carried out ture. Suppose a company like this has employees, customers and business partners, as well as a website with online shopping options. The amount of personal data processed by the company in question is large: biographies of job candidates, loyalty programmes for customers, the website uses cookies to analyze visitor behaviour, there is a da-

tabase of suppliers and / or customers and / or salaries of employees, servers are located in countries that do not provide a sufficient degree of data protection, external associates are hired with whom the collected data is shared, etc.

Each data processing represents a certain risk for personal data, which needs to be assessed and adequately controlled. Documents (rule books, privacy notices, data transfer agreements, procedures, consent forms, etc.) need to be compiled and rules for handling the data need to be established, concerning the assessed risks. Employees who process data in the company must be trained to use the documents. Only in this way it is possible to prove that the company implements the Law. The goal is to establish procedures for handling personal data that are understandable to those who are obliged to apply them and that are appropriate for the business processes that take place in the company.  IVAN MILOŠEVIĆ, Partner ANDREA CVETANOVIĆ, Senior Associate

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GROUP VOLUNTARY HEALTH INSURANCE Key Tool for Employee Retention

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DDOR OSIGURANJE

n the recent years, private health insurance has been constantly growing in Serbia. The main cause of this trend is the fact that citizens seek easier access to and higher levels of health service. Also, the prices of services have decreased and the purchasing power has increased, so these services have become more attractive to a larger number of users. What’s more, in the framework of growing competition among the employers and increased attention to talent management and benefits schemes, health insurance is very often used as a strong retention tool.

Unipol, the market leader in Italy for non-life insurance and particularly in health insurance has transferred its best practices to Serbia, adapting them to meet the requirements and expectations of the local market. This is implemented through DDOR osiguranje, the leading player in the Serbian insurance market for the last 70 years, now part of Unipol Group.

A thorough market research has been conducted recently in order to properly understand the market.

The results have shown that the largest number of insureds consider care about their health a priority in terms of insurance. One group of the interviewees that had a chance to use the services of voluntary health insurance claim that the received care was very good.

The most significant components of this insurance class, apart from the evaluation of commitment and professional expertise of medical staff and doctors, are the simplicity and efficiency of making appointments and undergoing diagnostic and other examinations. Additionally, the largest number of interviewees has said that they pay

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TRANSFER

Unipol, the market leader in Italy for non-life insurance and particularly in health insurance has transferred its best practices to Serbia special attention to prevention, mostly through different kinds of physical activity and adequate nutrition. Moreover, the participants in this research expressed their opinion that the annual medical examination, with properly selected types of examinations, is extremely important for them, and that they received valuable information about their health at such examinations, i.e. they had a chance to react in a timely manner in order to maintain and improve their health.

The conclusions indicate that regardless of their material condition, citizens increasingly think and care about their own health, as well as of their family members’ health. Different lifestyles and

work dynamics also influence how people receive services provided by health institutions, and the voluntary health insurance policy is recognized as one of the most important ones.

Aimed at the companies that take special care of their employees, group voluntary health policies provide suitable coverage at competitive conditions.

Within the employees’ benefits, it is the one that stands out in care services for workers, and increases their retention.

It can be extended to the family members, as well.

The offer of voluntary health insurance provides users with a coverage for both outpatient and inpatient treatment, such as the coverage for simpler and more complex laboratory analyses, diagnostics, as well as for hospitalisation with surgeries, coverage of therapy costs, in accordance with the arranged coverage package and terms and conditions of insurance. Furthermore, DDOR osiguranje can adapt the offer to the specifics of every company, type of business activity, and needs of a certain team, as it has been the case in Company’s previous activities. 

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COOPERATION

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FRIEND IN NEED IS A FRIEND INDEED

The COVID-19 pandemic has further solidified the relations between Serbia and Italy

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taly and Serbia are friendly countries that have exceptionally good bilateral and economic relations.

This was also demonstrated in difficult times for both nations during the coronavirus pandemic. Help came from both sides.

Although both hit by an invisible enemy, the two countries managed to preserve economic cooperation, so in the first seven months of 2020, the external trade between the two countries amounted to EUR 1.8 billion.

This figure is slightly lower than the one from last year, but given the impact of the epidemic on the European economy, we can be very satisfied with the value of our external trade.

The peak of economic relations was in 2018 when an impressive EUR 4 billion was generated from the trade between Italy and Serbia. These figures are not surprising given that Italy is one of the largest investors in the Serbian economy. So far, Italian companies have invested about three billion euros and employed the entire population of an average Serbian town, or 26,000.

At the beginning of this year, before the outbreak of the crisis caused by the coronavirus, an Agreement on Cooperation on Economic, Social and Cultural Development was signed with the Italian region of Veneto. On the occasion, the Serbian officials pointed out that they were interested in continuing cooperation in the field of innovative technologies and investments of small and medium-sized enterprises from Veneto, a region that has proven to be a leader in this field in Italy. In ad-

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dition, several Serbian and Italian cities have been twinned at the local level, which represents a significant social and economic potential and provides an opportunity to get to know our peoples better and facilitate exchange between local cultures.

HELP IN THE MOST DIFFICULT MOMENTS The coronavirus-induced crisis has further strengthened the relations between Serbia and Italy, although both countries were hit hard. During the pandemic period, Belgrade sent help

SERBIA SENT A TOTAL OF TWO MILLION SURGICAL MASKS, TWO MILLION EPIDEMIOLOGICAL MASKS, ONE MILLION PAIRS OF GLOVES AND 100,000 HAZMAT SUITS TO ITALY

to Rome in the form of medical equipment as an expression of Serbia's gratitude for the help and support that Italy had given Serbia earlier. During the shipment of medical equipment to be used in the treatment of coronavirus patients, the President of Serbia said that our country has always had Italy's support in the EU and that that country was among the first to send aid to Serbia during the 2014 floods. A total

of two million surgical masks, two million epidemiological masks, one million pairs of gloves and 100,000 hazmat suits were sent to Italy. Also, Italy is one of the most important trade partners of Serbia. Italian companies employ tens of thousands of people in Serbia, and many Serbian citizens work in Italy.

Italy repaid Serbia by sending a five-member medical team on a special flight, who, based on the experience gained during the five-month fight against the COVID-19 virus in Italy, provided assistance to their Serbian counterparts. The five-member medical team consisted of two anesthesiologists, one emergency physician, an infectious disease specialist, a surgeon and a medical technician. The members of the Italian medical team, who was engaged by the Italian Civil Protection Department, came from different Italian regions: Piedmont, Lazio and Friuli-Venezia Giulia. With this initiative, Italy wants to once again highlight the importance of its friendship with Serbia, the exceptional level of bilateral cooperation, as well as to respond to the generous assistance that Serbia sent to the Italian people in April this year.

This is not all. Serbian Foreign Minister, Ivica Dačić, visited Italy in June, and this was his first visit to a foreign country after the pandemic.

The visit was a reflection of the great friendship and respect between Serbia and Italy. He met with his Italian counterpart Luigi Di Maio during the visit. The two foreign ministers discussed bilateral relations and economic co-operation. 

ECONOMIC COOPERATION Although both hit by an invisible enemy, the two countries managed to preserve economic cooperation, so in the first seven months of 2020, the external trade between the two countries amounted to EUR 1.8 billion 29 ITALY 2020

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ECONOMY

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‘TECHNICAL’ RECOVERY Focus

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The EU fund could help, both in the short and long run, and both in terms of the grants provided to Italy and the signaling effect of such a big step forward in EU fiscal coherence

he Italian economy is facing one of its darkest hours in modern history. After shrinking by 5.4% y-o-y in the first quarter, it is set for a much larger contraction in Q2. In April, arrivals at tourist accommodations were down 99% compared to last year, car sales contracted by 98% y-o-y, retail sales by 29%, industrial production with 47% and construction production by 68%. And while scarcely available data suggests that May and June have been less bad –which makes sense as non-essential production sites and stores were allowed to reopen, albeit with restrictions. Industrial production shrank by 31% compared to the same quarter last year and car sales by 57%.

Starting from the second half of this year, there is room for a ‘technical’ recovery. The simple fact that stores and restaurants have reopened, and people are again able to spend as opposed to being confined to their homes, for example, will lead to more spending.

Moreover, the fact that since 3 June, the country again welcomes foreign tourists from the EU, Schengen and the UK, is likely to lead to at least some tourist inflow, as opposed to close to zero during the largest part of the spring.

But many factors, related to both demand and supply side shocks are holding back the recovery .

All in all, we project the economy to contract by 11.5% this year and to grow by 7% next year. Many people believe the economy will not have recovered losses before 2025, the end of our forecast horizon. This forecast is based on the assumption that a COVID-19 vac-

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cine will not be available before the second half of next year, implying social distancing rules will remain in place until then.

ROOM FOR RECOVERY The Italian economy will likely grow rapidly in the third quarter. Yet if we look passed this so-called technical recovery, the Italian recovery faces many hurdles.

IN APRIL, ARRIVALS AT TOURIST ACCOMMODATIONS WERE DOWN 99% COMPARED TO LAST YEAR, CAR SALES CONTRACTED BY 98% Y-O-Y, RETAIL SALES BY 29%, INDUSTRIAL PRODUCTION WITH 47%, ETC...

While many containment measures have been lifted, social distancing rules continue to persist. This has an impact on a broad range of activities, for example in the hospitality sector.

We have estimated that about 17% of Italian jobs cannot be done from home or while maintaining a 6 foot distance.

Moreover, even when on paper jobs can be done from home, weak digital advancement hampers that possibility, at least partially. Second, despite that the country is again welcoming

desperately needed tourism, international tourism is expected to remain muted. Which is very troublesome for the economy, given that half of its tourists are foreign , the high season is coming and tourism contributes to 13% of GDP . Third the major contraction in the first half of this year brings along a large domestic demand shock despite large fiscal support measures.

So far, the government has approved fiscal support packages worth around EUR80 billion (4.6% of GDP), including health care investment, short-time work-schemes, income transfers, tax deferrals, and moratoriums on loan repayments and utility bills. On top of this, the government is issuing guarantees on loans to a broad range of businesses covering at maximum between EUR700 and EUR750 billion loans. According to the European Commission, the contingent liability for the government arising from these guarantees would, at maximum, be EUR430 billion euro.

THE RECOVERY FUND The EU recovery fund could help, both in the short and long run, and both in terms of the grants provided to Italy and the signaling effect of such a big step forward in EU fiscal coherence. The latter could help to suppress bond yields. Based on the proposal and a suggested distribution key, the European Commission has forecasted the fund could raise the EU27 GDP level with 1.5-2.25% by 2024, depending on assumptions made on the takeup rate for the loans. For the country group that includes Italy, the estimate ranges from 2.8% to 4.2%. 

REOPENING The simple fact that stores and restaurants have reopened, and people are again able to spend as opposed to being confined to their homes, for example, will lead to more spending.

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DID YOU KNOW

THE SCHOOL OF ATHENS he School of Athens (Italian: Scuola di Atene) is a fresco by the Italian Renaissance artist Raphael. It was painted between 1509 and 1511 as a part of Raphael's commission to decorate the rooms now known as the Stanze di Raffaello, in the Apostolic Palace in the Vatican.

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TRADITION

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THE BEAUTY OF DIVERSITY Parts of Italy differ in many ways and are divided into regions

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taly is divided into 20 administrative regions, which correspond generally with historical traditional regions, though not always with exactly the same boundaries. A better-known and more general way of dividing Italy is into four parts: the north, the centre, the south, and the islands.

The north includes such traditional regions as Piedmont, which is characterized by some French influence and was the seat of united Italy’s former royal dynasty; Liguria, extending southward around the Gulf of Genoa; Lombardy, which has long been noted for its productive agriculture and vigorously independent city communes and now for its industrial output; and Veneto, once the territory of the far-flung Venetian empire, reaching from Brescia to

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Trieste at its greatest extent. The centre includes Emilia-Romagna, with its prosperous farms; the Marche, on the Adriatic side; Tuscany and Umbria, celebrated for their vestiges of Etruscan civilization and Renaissance traditions of art and culture; Latium (Lazio), which contains the Campagna, whose beautiful hills encircle the “Eternal City” of Rome; and the Abruzzo and Molise, re-

HISTORICALLY, THE LOCATION OF ITALIAN URBAN CENTRES PLAYED A CENTRAL ROLE IN THEIR ECONOMIC DEVELOPMENT

gions of the highest central Apennines, which used to support a wild and remote people. The south, or Mezzogiorno, includes Naples and its surrounding fertile Campania; the region of Puglia, with its great plain crossed by oleander-bordered roads leading to the low Murge Salentine hills and the heel of Italy; and the poorer regions of Basilicata and Calabria. On the islands of Sicily and Sardinia are people who take pride in holding themselves apart from the inhabitants of mainland Italy. However, the south and the islands have changed a great deal since about 1960 and have become more modernized. Within these four main divisions, the variety of the much smaller traditional districts is very great and depends on history as well as on topography and economic conditions.

RURAL In general, rural life is in decline. The majority of the population of Italy live in cities and villages; only a fraction live in hamlets or in isolated houses.

In the long Alpine valleys the economy was always both agricultural and commercial, with towns such as Aosta and Bolzano at the outlets of the lateral valleys and agricultural settlements higher up or on the slopes of hills. The perpetual subdivision of landholdings makes a purely agricultural economy precarious in this region except in the upper Adige, where the Germanic system of primogeniture survived, producing the masi, family holdings that are passed on to the eldest son intact.

These rural areas now also include an increasing number of skiing and tourist centres, such as Courmayeur and Cortina d’Ampezzo. In the band of Alpine and Apennine foothills, the villages, often situated on the knolls and flanks of the hills, are linked by roads that hold to the heights, away from the humid valley floors. Each village is usually grouped around a church, a castle, or a nobleman’s palace, with its fields on the slopes around it and woodlands lower down. There are innumerable plum and cherry orchards and, above all, vineyards; their wines (Conegliano and Monferrato) are famous. Lombardy is the only area in which the ancient rural way of life has been comprehensively displaced by the development of heavy industry.

The Padano-Venetian-Emilian plain is the most important agricultural and stockbreeding region of Italy. The upland plain hosts the great industrial centres such as Turin, Milan, and Bus-

to Arsizio, while the lowland plain remains socially as well as economically rural. Villages high in the Apennines are less prosperous than those of similar elevation in the Alps. They are still isolated, the ground is infertile, and land is rarely owned by those who work it. Tourism and the expansion of cottage craft industries, such as the porcelain making at Gubbio, near

LOMBARDY IS THE ONLY AREA IN WHICH THE ANCIENT RURAL WAY OF LIFE HAS BEEN COMPREHENSIVELY DISPLACED BY THE DEVELOPMENT OF HEAVY INDUSTRY Perugia, have helped these towns survive. The lower hills and plains of Italy are covered with agricultural villages in which a wide variety of crops and vegetables are grown, though often in low yield. In Puglia and Basilicata large farms are staffed by labourers who live in urban centres, such as Cerignola and Altamura, and travel to work in the countryside. Some fertile and well-watered plains, such as the Neapolitan countryside, have a high level of productivity, especially of market vegetables. Here there is direct ownership of land and fairly dense settlement. In Sicily, settlement

is clustered in widely spaced, nucleated towns, with extensive pastureland and farming. In Sardinia the settlement is sparse and mainly inland, and most of the local fishing industry is carried on by men from the mainland.

URBAN Italian cities vary greatly in terms of population, economic activities, and cultural traditions. Many of them have developed close economic links with surrounding communities, forming major metropolitan areas, such as Rome, Milan, Naples, and Palermo. Slightly less populous are the urban centres of Genoa-Savona, Bologna, Catania, Messina–Reggio di Calabria, Cagliari, and Trieste-Monfalcone. The geographic pattern shows an even distribution of large metropolitan areas across the whole country, while medium-sized cities are more numerous in the north than in the south, where there is a concentration of small towns.

Historically, the location of Italian urban centres played a central role in their economic development. In the Po valley, cities such as Milan, Pavia, and Cremona were well placed for commerce, being situated at the confluence of roads or rivers. Another group of cities were those on the coast, at the mouths of rivers, or on lagoons protected by sandbars; these included Savona, Genoa, Naples, Messina, Palermo, Ancona, and Venice. At present the most economically viable urban centres are those able to engage in global trade, such as Milan, and medium-sized centres such as those in northern Tuscany that engage in light manufacturing. 

REGIONS Italy is divided into 20 administrative regions, which correspond generally with historical traditional regions, though not always with exactly the same boundaries.

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CULTURE

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“My Brilliant Friend” and Elena Ferrante’s other best-selling books are inspiring female novelists

n Italy, literary fiction has long been considered a man’s game. However, Elena Ferrante’s Neapolitan novels My Brilliant Friend, became an international sensation, selling over 11 million copies, inspiring an acclaimed HBO series and cementing her reputation as the most successful Italian novelist in years. Her ascent, and the rediscovery of some of the last century’s great Italian female writers, has encouraged a new wave of women and shaken the country’s literary establishment. Women writers here are winning prestigious prizes, getting translated and selling copies.

Their achievements have set off a wider debate in Italy about what constitutes literature in a country where self-referential virtuosity is often valued over storytelling, emotional resonance and issues like sexism or gender roles.

In the past two years, novels by women have accounted for roughly half of Italy’s top 20 best sellers in fiction — nearly double the percentage from 2017, according to data released

by Informazioni Editoriali, which surveys sales in the country’s bookshops.

In interviews, Italian authors, editors, critics, translators and publishers said that women writers have gained extraordinary attention. Some call it “the Ferrante effect.”

“My Brilliant Friend” and the other Ferrante novels (“La Vita Bugiarda Degli Adulti,” “The Lying Life of Adults” ) showed that “there is a market for fiction by women.

Establishment critics were previously quick to disregard stories about

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the bonds between women. That has changed.

Three much-discussed recent books delve into mother-daughter relationships. Donatella Di Pietrantonio’s “A Girl, Returned,” is a coming-of-age story set in rural Southern Italy. Claudia Durastanti’s “La Straniera” (“The Stranger”) recalls her upbringing in a dysfunctional family between Brooklyn and Basilicata.

Nadia Terranova’s novel “Addio Fantasmi” (“Goodbye Ghosts”) tells the story of a 30-something woman facing her painful past on a trip home to see her mother. Both of those are being translated into English.

ESTABLISHMENT CRITICS WERE PREVIOUSLY QUICK TO DISREGARD STORIES ABOUT THE BONDS BETWEEN WOMEN. THAT HAS CHANGED A new English translation of “Family Lexicon,” the 1963 masterpiece by Natalia Ginzburg, came out in 2017. Three more of her novels were reissued this year, two of them in new translations.

Another major writer from Italy’s postwar period, Elsa Morante (whom Ferrante has cited as a source of inspiration), is likewise getting a fresh look, with a new translation this year of her coming-of-age classic, “Arturo’s Island.”

WHO IS FERRANTE? But many of the new wave of women writers attribute their momentum to the pseudonymous Ferrante, who has guarded her anonymity even as her books have become best sellers.

(Some people speculate that Ferrante could be Anita Raja, a prominent literary translator married to the novelist Domenico Starnone, and they have looked for evidence of his hand in her work.)

Beyond the guessing game, Ferrante has generated international interest in Italian writers overall.

In today’s noisy Italy, detachment has become a value in itself. The novelist’s elusiveness is just as endearing as her unforgettable characters Lenù and Lila and as intriguing as the unfolding of their strong friendship set against Italy’s recent history.

She is the introspective writer whose very personal style leads her to worldwide fame while leading a normal life in her hometown, Naples, away from the spotlight. She is the heroine who seems to have avoided the inexorable fate of Southern Italians: compromise. This may or may not be true but it’s now part of her aura and what her readers love in her.

Her four novels – she calls them The Friend, as if there was only one – provide among other things an accurate dissection of the role that compromise plays in life, particularly in Naples, a city which still provides much of Italy’s narrative material and where many of the country’s most significant writers are from. 

ITALIAN WRITERS Beyond the guessing game, Ferrante has generated international interest in Italian writers overall.

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TOURISM

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THE BASTION OF MEDITERRANEAN CULTURE

Eternal crossroads of the Mediterranean, the gorgeous island of Sicily continues to seduce travellers with its dazzling diversity of landscapes and cultural treasures ravel to Sicily to visit the Mediterranean's largest and most diverse island.

From the ancient Greeks, Phoenicians and Carthaginians to the Arabs, French and Spanish, Sicily has seen many rulers. As the land of Scylla, Charybdis and the Cyclops it is also a backdrop of myth and legend, this

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magic still present today. The relics of this turbulent and fascinating history are just one of the many reasons to visit Sicily.

As the bastion of Mediterranean culture, Sicily boasts stunning beaches, roaring volcanoes and rich cuisine.

Here are just some of the places you can't leave out of any Sicily travel plan.

The Sicilian summer stretches beyond the summer months that confine northern and central Italy, and often it is possible to sunbathe and swim until November. But with 2,500 hours of sunshine, warmer sea temperatures and virtually no rain the summer months are the best time to visit. However, nature lovers can visit as

early as February when the wild flowers begin to bloom.

Seductively beautiful and perfectly placed in the heart of the Mediterranean, Sicily has been luring passersby since the time of legends. The land of the Cyclops has been praised by poets from Homer to Virgil and prized by the many ancient cultures – Phoeni-

THE SICILIAN SUMMER STRETCHES BEYOND THE SUMMER MONTHS THAT CONFINE NORTHERN AND CENTRAL ITALY

cians, Carthaginians, Elymians, Romans and Greeks – whose bones lie buried here. Whether in the classical perfection of Agrigento's Concordia temple, the monumental rubble of Selinunte's columns or the rare grace of a dancing satyr statue rescued from Mazara del Vallo's watery depths, reminders of bygone civilisations are everywhere.

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