Diplomacy and Commerce No.12

February / March 2019 | ISSUE No. 12 | FREE COPY

www.diplomacyandcommerce.hr 9772466380002

OUR MESSAGE IS UNITY IN THE EU

25 70th REPUBLIC JAN

DAY OF INDIA

H.E. CONSTANTIN-MIHAIL GRIGORIE Ambassador of Romania to the Republic of Croatia

WE SHOULD STRENGTHEN OUR BONDS

I AM STILL OPTIMISTIC ABOUT ULJANIK

H.E. ALONSO DEZCALLAR MAZARREDO Spanish Ambassador

WINE IS OUR TOURIST TRUMP CARD

ROBERT BREGANT

President of Croatian Wine Roads (Vinski Putevi Hrvatske)

DARKO HORVAT

Minister of Economy, Entrepreneurship and Craftsmanship

WE WILL LIVE UP TO THE TASK ANDREJA METELKO ZGOMBIĆ

State Secretary of Ministry of Foreign Affairs

WE HAVE PLENTY OF COURAGE GORANKA HORJAN Ethnographic Museum

Serbia

H.E. MIRA NIKOLIĆ Ambassador of the Republic of Serbia to Croatia

EDITORIAL

CONTENTS

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State of the Union Address Dear readers, Recently, it was exactly 25 years since I first visited the USA. In early 1994, I participated in the five-week-long International Visitors Program, organized by the US Embassy. During this just over a month long stay in the US, I visited Washington D.C., Atlanta, Columbus in Nebraska, San Francisco, Las Vegas, Boston and New York City. I was at the same hotel as Bill Clinton where he gave his first ever State of the Union Address. For someone who came from the politically encumbered region which had just embarked on multi-party political life, with wars in Bosnia and Croatia still raging on, the State of the Union Address by an American president was the most important thing in the world.

My hotel in Atlanta had two halls with TVs. On the first TV set, we could watch the State of the Union Address, while the other broadcasted the Tonya Harding-Nancy Kerrigan scandal (we had the opportunity to recently see the film “I, Tonya” about this). There were exactly two people watching TV in the first hall and 50 watching TV in the second one. At that moment, I came to a realization that there were countries in the world were politics was not the most important thing on the planet, and where people were actually interested in other topics too.

My life was changed during those five weeks in America. In Atlanta, I interviewed Coretta Scott King, the widow of Martin Luther King. In Las Vegas, I had an interview with the general manager of MGM Grand, which, at that time, was the largest hotel in the world. With the help of Beka Vučo, from Open Society Foundations, I managed to interview George Soros in New York City. In Boston, I watched the film “Schindler’s List” only a day after its official premiere, and in New York City, I was able to see one of the last performances of the musical "Cats".

This was America in the early 1990s - political correctness was in full swing, and the ban on smoking began to be practiced in almost all places. America was the sovereign winner of the Cold War, and it seemed that Francis Fukuyama really was right when he said that it was “the end of history”.

Cue to 25 years later and Donald Trump speaking about building a wall on the border with Mexico in his State of the Union Address, while the United States and the rest of the world are preoccupied with other topics. Even Fukuyama himself admitted that “the end of history” was not yet.

In our region, we are living the Groundhog Day. What is our State of the Union Address like? Apart from not being a union anymore, since our joint country disintegrated into six - seven states, the same topics seem to consume us just like in 1918, 1941, 1945 and 1994, including media freedom, election conditions, and nationalism. Political correctness in public speech disappeared before it took off, while local sheriffs and their sons seem to take really well to the new trend launched

by President Donald Trump himself – “first I tweet, then I think of the consequences”.

In our part of the world that means that a son of a renowned politician is allowed to spread the most abhorrent religious and racial hatred on his Facebook profile, that athletes have to jump into the sea in order to save themselves from deranged hooligans, and that “society’s elite” will be horrified at all of this while comfortably sitting in their armchairs without having any real desire to change something in our societies.

ROBERT ČOBAN Director

I AM STILL OPTIMISTIC ABOUT ULJANIK DARKO HORVAT

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STRATEGIC DIGITAL TRANSFORMATION PARTNER

Minister of Economy, Entrepreneurship and Craftsmanship

VASILIS LINAKIS

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WE WILL LIVE UP TO THE TASK ANDREJA METELKO ZGOMBIĆ State Secretary of Ministry of Foreign Affairs

General Manager Linakis Digital

PREPARING STUDENTS FOR 21st CENTURY CHALLENGES MILENA PRODANIĆ TIŠMA

Director of the Bright Horizons British School in Zagreb

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THE EURASIA TIME

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Economy

WINE IS OUR TOURIST TRUMP CARD

12

OUR MESSAGE IS UNITY IN THE EU H.E. CONSTANTIN-MIHAIL GRIGORIE

Ambassador of Romania to the Republic of Croatia

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ROBERT BREGANT

President of Croatian Wine Roads (Vinski Putevi Hrvatske)

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IT'S NOT POPULISTS, MATE

Socioeconomal politics

WE SHOULD STRENGTHEN OUR BONDS H.E. ALONSO DEZCALLAR MAZARREDO Spanish Ambassador

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FASCINATING COUNTRY THAT WILL CHANGE YOUR PERSPECTIVE Travel story by Oliver Sarov

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USERS KNOW WHAT THEY WANT MARIO OPAČAK

Director of Vaillant d.o.o. for Croatia and Regional Manager for Vaillant Group for Southeast Europe, Kosovo and Albania

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WE HAVE PLENTY OF COURAGE GORANKA HORJAN Ethnographic Museum

www.diplomacyandcommerce.hr BOBAN SPASOJEVIĆ Executive director

boban@diplomacyandcommerce.hr

RUŽA RISTANOVIĆ Magazine director

TANJA BANKOVIĆ Editor-in-chief

ROBERT ČOBAN Director

SVEN DARRER Advertising manager 091 766 5479, 091 377 4358

Photos GETTY IMAGES TOMISLAV SMOLJANOVIĆ

Print ZLATNA KNJIGA Jagodina, Bagrdanski put bb

office@diplomacyandcommerce.hr

ILIJA PETROVIĆ INDIGOCHILD Art director

indigochild.ilija@gmail.com

Translation SNEŽANA BJELOTOMIĆ

sven@diplomacyandcommerce.hr

Predstavnik za RH

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THE MAN WHO WON THE COUNT

Félix Tshisekedi’s Presidency of Congo Begins Inauspiciously It may not get better

Against all the odds, and the laws of arithmetic, Félix Tshisekedi was due to become the Democratic Republic of Congo’s fifth president as The Economist went to press. A few weeks ago he was trailing in the polls. Experts predicted that the election in December would either be won by Martin Fayulu, a popular opposition candidate, or rigged in favour of the ruling-party candidate, Emmanuel Ramazani Shadary.

Somehow, Mr Tshisekedi “won”, although data leaked from the electoral commission and a count by 40,000 Catholic volunteers suggest that in fact Mr Fayulu won 60% of the vote. Many suspect a secret deal between the new president and the old one, Joseph Kabila, whose business interests Mr Fayulu had vowed to investigate.

Mr Fayulu filed a petition before the constitutional court, stacked with Mr Kabila’s appointees. He expected it to fail, and it did. He hoped that street protests would keep up the pressure. “The Congolese people will not accept the result, there may be an uprising,” he said. But few turned out at what was supposed to be his first big public appearance since the court ruling, perhaps because so many armed police did. A small crowd waved photographs of Mr Fayulu. Two hours later the police were lounging in plastic chairs at a nearby restaurant and most people had gone home. Mr Fayulu decided not to show up.

Mr Tshisekedi’s victory marks the first time an African opposition candidate has been rigged into power, says Nic Cheeseman, an expert on African elections.

(Mr Shadary, the ruling party’s candidate, won so few votes that it would have been exceptionally hard to pretend that he won.)

The new president represents the country’s oldest opposition

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party. His father, Étienne, challenged corrupt, despotic regimes for decades until his death two years ago. Many hope that his son has inherited his principles. They yearn for a leader who will halt the looting that has lasted longer than most Congolese can remember, under two President Kabilas (father and son) and the kleptocrat Mobutu Sese Seko. With all its minerals, Congo should be rich, but annual income per head is a pathetic $400, 42% less than it was in 1990.

out on his own. For a precedent, they point to João Lourenço, who shoved aside his predecessor’s family and allies after taking power in neighbouring Angola in 2017.

Mr Tshisekedi’s virtues do not include loyalty; he withdrew from a pact to endorse Mr Fayulu last year only a day after signing up.

Yet Mr Tshisekedi is weak. Few Congolese think him legitimate: leaked electoral commission data suggest that he won less than a fifth of the vote. Because Mr Kabi-

MR TSHISEKEDI’S VICTORY MARKS THE FIRST TIME AN AFRICAN OPPOSITION CANDIDATE HAS BEEN RIGGED INTO POWER Mr Tshisekedi has promised, absurdly, to raise incomes tenfold.

He has also vowed to restore stability in the east, where dozens of warring militias have brought misery. To do so, he will need to bring the army to heel and take on the elite that plundered Congo on Mr Kabila’s watch. Optimists hope that he will ditch whatever deal he had with his predecessor and strike

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la’s coalition won a big majority in the national assembly (possibly by cheating), Mr Tshisekedi does not have the power to appoint his own cabinet. Nor can he count on the goodwill of Congo’s most important neighbours. Although the leaders of South Africa and Kenya raced to congratulate him, Paul Kagame, Rwanda’s president, has hung back. He and Mr Lourenço

were said to be largely responsible for an African Union statement questioning the election and urging a delay in his inauguration.

Neither Mr Kagame nor Mr Lourenço is likely to help Congo’s new president as long as Mr Kabila—whom they detest—retains influence over him. Yet their acquiescence is vital. Rwanda has invaded Congo in the past. Angola sent troops to save both Mr Kabila (from his own mutinous troops in 2006) and his father (from Rwandan invaders in 1998). Probably neither Kabila would have survived as long without Angolan assistance. But a maritime border dispute and an influx of refugees into Angola from a rebellion in Congo’s Kasai region have soured relations. Rwanda or Angola could easily destabilise Congo again if they wished to. Mr Tshisekedi, an inexperienced and unpopular leader in hock to a crooked and dysfunctional old regime, may not be able to stop them.

From The Economist, published under licence. The original article, in English, can be found on www.economist.com

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INTERVIEW

I am Still Optimistic About Uljanik The past year was one of the most challenging in Croatian history because it was this government that had to pay all of the debts from the past. We took on this responsibility readily and I can say that I am more than satisfied, regardless of the challenges that await us in 2019

DARKO HORVAT Minister of Economy, Entrepreneurship and Craftsmanship

„Regardless of everything that this government and myself, as a minister, inherited at the beginning of our term in the office, I can confidently say that I am more than satisfied with our results in 2018, although some things can and must be better which is something we are working hard on," says Darko Horvat, Minister of Economy, Entrepreneurship and Crafts. "I am primarily referring to the overall situation in the shipbuilding industry and the Uljanik shipyard, which problems have been piling up and pushed under the carpet for years. Now that the situation has become unbearable, we need a solution that will create a framework for sustainable shipbuilding, bring people back to work and do something that has the least impact on the state budget and taxpayers' money,“ the Minister adds.

Minister Horvat is still optimistic about this issue due to the good cooperation with the current management and trade union of Uljanik. Other positive results that the Minister highlights are final-

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izing the restructuring process in Agrokor without having to lay off any workers, or the state budget suffering for it. „In such dynamic circumstances, it is very difficult to give priority to topics that are actually much more important for us, that is projects and measures that we have launched with the aim of bolstering small businesses and craftsmanship“, the Minister says.

Agrokor, Uljanik and Petrokemija, there was also the restructuring of the Djuro Djakovic Company and saving the Borovo Company which both somehow managed to stay under the radar. In Borovo, we created all the prerequisites needed for the company's management to find a quality strategic partner.

Most of these large companies today have a bright future, well-or-

WE HAVE MANAGED TO BRING DOWN OUR EXTERNAL INDEBTEDNESS TO ITS LOWEST LEVEL SINCE 2008, WHILE MAJOR GLOBAL FINANCIAL AGENCIES ARE INCREASING OUR COUNTRY'S CREDIT RATING, OR AT LEAST GIVING US A POSITIVE FORECAST Do you think that 2019 will be as equally turbulent as 2018, considering the situation with Uljanik, INA and the looming financial crisis?

— The year behind us was certainly one of the most challenging in Croatian history. All the debts of the past had to be settled by this government. We did not want to use any excuses but have readily assumed the responsibility and bravely accepted the big job that was ahead of us. In addition to the bigger problem areas such as

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ganized business, and stable financial balance. Furthermore, the Republic of Croatia ended the second consecutive fiscal year with a surplus, with the external debt also declining.

At the end of the third quarter, Croatia's public debt stood at 281.8 billion kunas which means that its share in the GDP fell to 74.5%, i.e. it has been reduced by 1.6% relative to the previous quarter and by 4% relative to the same period the year before that. According to these results, Croatia is one of the EU

countries with the highest recorded decline in public debt's share in the national GDP. In short, we have managed to bring down our external indebtedness to its lowest level since 2008, while at the same time, major global financial agencies are increasing our country's credit rating, or at least giving us a positive forecast. I am confident that the restructuring process in Uljanik will also be completed to the benefit of all involved parties, with the smallest exposure and participation of the state budget or taxpayers' money. We did everything in our power for Uljanik's employees. We have helped the shipyard to survive last year and now it is up to a new strategic partner, selected by the company's Managing and Supervisory Board, to demonstrate their seriousness and readiness to participate equally in devising a new restructuring plan. Various figures are being publicly discussed at the moment, but the only relevant thing is the content of the plan.

I can assure you that the government will act with a strong caution in this process.

The announced administrative disburdening of the business sector began last year. What can business people expect in regard to this?

— At the initiative of the Ministry of Economy, Entrepreneurship and Craftsmanship, the first decision that the Croatian government made in 2019 was to adopt the Action Plan for Administrative Disburdening of Business Sector.

This is a continuation of the policy which we have been implementing for the third consecutive year.

This year alone, due to the government's measures, the real business sector will save 626 million kunas.

In total, in the period from 2017 to date, the savings have amounted to close to 2.5 billion kunas. We have bravely stepped in into this ocean of regulation that entrepreneurs have to deal with on a daily business. This year, we identified 314 measures and processes that will be either abolished or reduced. We have already started preparing for adoption of the Action Plan for the year 2020, and in this segment, I would like to point out that we are actively communicating and consulting with entrepreneurs themselves, and that we are determining further steps in a dialogue with them. We also regularly carry out cost and benefit analyses. It is worth mentioning that we are conducting the so-called SME test (the small and medium-sized enterprise test), which puts a stop to new imposts. Otherwise, all the aforementioned efforts would not make any sense.

I AM CONFIDENT THAT THE RESTRUCTURING PROCESS IN ULJANIK WILL ALSO BE COMPLETED TO THE BENEFIT OF ALL INVOLVED PARTIES, WITH THE SMALLEST EXPOSURE AND PARTICIPATION OF THE STATE BUDGET OR TAXPAYERS' MONEY are your hopes for 2019?

— The economic growth projection, following the forecast released by the IMF last month, is in line with our Government's expectations since we are talking about a growth of between 2.6% and 2.9%.

However, a more important thing is that this growth is stable for now and that we are actively working on creating prerequisites for its further boost. In the surroundings which, even under global terms, is showing the signs of economic slowdown and in some cases, even an indication of a new financial crisis, I think that the mentioned growth rate is solid and realistic.

Of course, as the economy minister, I am especially interested in

the industrial production growth which is, for the most part, conditioned by the current situation in shipbuilding, which is why I hope that, in 2019, we can make a bigger step forward in this area. What I'm happy about is the second part of the IMF's outlook, which states that reducing external debt is one of the possible solutions to avoiding a potential crisis. As I mentioned earlier, Croatia has achieved remarkably good results in this segment in recent years.

You have also announced the year of digital transformation.

How can the Croatian government assist with this transformation which, as far as we can

INDUSTRY, INNOVATION, INVESTMENTS AND EXPORT

You are an expert when it comes to small and medium-sized enterprises. How did they manage to get back on track and recover after the financial crisis and recession in Croatia?

— There is a good reason why small and medium-sized enterprises are deemed the most resilient part of the economy. Since most of the companies in Croatia are SMEs, it is extremely important for us to build up this sector, while, at the same time, highlighting good business practices that are many. I, myself, come from an area where craftsmanship and entrepreneurship have a long tradition. In that respect, Medjimurje is a diligent and well-organized county with a strong entrepreneurial mentality which I am eager to incorporate into all the nooks and crannies of the Ministry that I helm, and then into the rest of Croatia.

The IMF has recently released its forecast which warns about a slowdown in the global economy, especially in Europe. What

see, is much different from the previous industrial revolution?

— The START project, which we plan to launch in April, will ensure that businesses in Croatia can be set up in just two to three days by filling out a single digital form. The issuance and receipt of an e-Invoices will become mandatory as of July 1st this year. We are announcing all of this now so that users will have enough time to prepare and adapt. There is no alternative to this process because the same thing is being done in the neighbouring countries with which we share the single EU market. Numerous indicators show that we are on a good path regarding future positioning of ourselves in terms of the implementation of artificial intelligence.

People don't know that Ericsson has chosen Croatia or rather, its Ericsson Nikola Tesla Company to develop and test 5G technology.

These are the systems that are used in self-driving vehicles. The State Aid for Development and Research Projects Act further encourages the development of the ICT sector and other concomitant fields. We have extremely powerful human capital, and our engineers are well-educated and in demand. Entrepreneurs, who work and do business here, export most of their software products, and the demand for IT staff increases year-on-year. The government will continue to encourage research and innovation projects and initiatives through various regulations, while digitization will be embedded in the work of public administration.

How many companies are there in Croatia today that have already jumped or about to jump on the „Industry 4.0. train“?

What projects and plans are the Ministry's priorities and how will they affect doing business and business environment?

— I have already announced that I want my term in the office to be remembered by four things - industry, innovation, investments and export. To this end, we have launched thematic innovation councils, which are specialized bodies within the National Innovation Council, through which we are creating the Croatian innovation system. These are working groups where business people and academics collaborate with ministry officials and discuss what needs to be done to improve innovation processes. I consider innovations to be the key to higher industrial development and export. In regard to investments, we are currently compiling lists of the most desirable investors we want to see investing in Croatia. We are going to use new EU funds to especially stimulate innovations, particularly those that lead to new products that will find their place in the future digital society.

— For the time being, only larger companies have the capacity to follow the trends brought on by the 4th Industrial Revolution. For example, Ericsson Nikola Tesla, which I've mentioned earlier, has opened its development&research centre in Osijek and has become the hub of digital industry development in this part of Europe.

Atlantic Group has digitized numerous sales tracking processes, inventory, customer experience and so on. Furthermore, Microsoft has major plans in Croatia. We are right behind them in this while encouraging them to participate in various competitions which goal is digital transformation and networking with the highly developed countries in this field.

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INTERVIEW

We Will Live up to the Task We view the upcoming role of the President of the Council in 2020 as a great honour and an immense responsibility. At the same time, this is a valuable opportunity to jointly work with other Member States on strengthening our Union in a time of a rapidly changing landscape ANDREJA METELKO ZGOMBIĆ State Secretary of Ministry of Foreign Affairs

In the first half of 2020, Croatia will have one of the biggest opportunities since acceding to the EU, but also one of the biggest challenges. We spoke with Andreja Metelko Zgombić, the State Secretary of the Ministry of Foreign Affairs, about the pace of preparations and major topics the Croatian presidency will highlight.

How ready is Croatia to assume the presidency?

— Croatia understands the fortitude, perseverance and the hard work needed in the process of preparing for the Council Presidency and our preparations are consequently well underway. As one of the core institutions of the Union, the Council – and therefore its Presidency – bears an enormous responsibility for the smooth

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functioning of the European project and for generating the jointly agreed legislation and decisions as the means of improving the lives of all of our citizens.

Croatia is also fully aware of the scope and complexity of such an undertaking, especially as a country that will be holding this position for the first time. Thus, we are eager to actively participate in shaping EU policies and in the effective governing of EU’s institutions.

We are aware that the timing of the Presidencies during 2019 and 2020 is additionally challenging given the complex period for the Union as a whole, namely European parliament elections, the end of the mandate of the current

Commission, the need to negotiate a new Multiannual Financial Framework, Brexit and a number of other important topics, as well as the all-encompassing project of pondering the future of Europe.

What were the major lessons learned from Bulgaria which even established a ministry dedicated solely to the country’s presidency? Which approach will you choose?

— Croatia has already benefited greatly from the experience and lessons learned shared by other Member States and appreciates all the assistance and advice concerning the preparations for our own Presidency. We are grateful to

CROATIA IS THE EU'S YOUNGEST MEMBER STATE AND OUR FIRST COUNCIL PRESIDENCY IS AN IMPORTANT STEP TOWARDS FURTHER RAISING OUR PROFILE WITHIN THE EUROPEAN FAMILY, WHILST UNFOLDING OUR FULL POTENTIAL

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be able to utilise this vast body of knowledge and to be able to continue cooperation with several previous Presidencies in this respect.

Our design of the organisational pyramid for the Presidency was based on the understanding of what would work best with respect to the existing institutional set-up and institutional culture in Croatian administration.

The structure is nested within a model of planning, implementing and coordinating activities for the Presidency which awards the central role with respect to strategic and operationally political decisions to two bodies – the Governing Council for Preparations for the Presidency of the Republic of Croatia of the Council of the EU, chaired by the Prime Minister and the Interministerial Coordinating Committee for the Presidency of the Republic of Croatia of the Council of the EU, chaired by the State Secretary of the Ministry of Foreign and European Affairs.

On a more operational level,

we have opted for the model in which the Ministry of Foreign and European Affairs has the central role and has been appointed by the Government as the coordinating body for preparations and implementation of the Presidency (in co-operation with other relevant state administration bodies). The Ministry has always been the focal point in Croatian administration with respect to EU affairs and possesses extensive experience in both the pre- and post-membership eras. We felt that the tasks placed before Croatia by the Presidency could be accomplished within the existing framework, with simple adjustments to the internal structure of the Ministry and with key posts being held by our experienced staff.

To this end, the Secretariat of the Croatian Presidency of the Council of the EU 2020 has been created as an independent Directorate, responsible directly to the minister. The content-related aspects of the Presidency are being coordinated by the Directorate for Europe of the MFEA, in close cooperation with the line ministries and the Permanent Representation in Brussels.

One of lessons that Bulgaria learned, when presiding over the Council, was the need for flexibility and adjusting to the new priorities. How do you see your priorities today and do you expect that they could change during 2019?

— Flexibility is nothing new in dealing with the EU matters. We have to be ready, almost on a daily basis, to adjust and re-write our thinking and position in search for the solutions that are for the benefit of all Member States and our citizens. Last couple of years have thought us to expect unexpected and that is especially true now, in the period when this institutional cycle is almost over and ahead of us we have new European elections, the appointment of the new Commission and the new

Strategic Agenda that our leaders will adopt at the June European Council. The Presidency can be considered a success if the priorities are addressed appropriately, if there is progress achieved with processing of the legislative files currently in the pipeline, but also if we can show the ability to deal with the unexpected situations, where flexibility and determination are main virtues. Our national Presidency Programme has not been defined yet, but deliberations on our national contribution to the Trio Programme, which has been endorsed by the General Affairs Council in December 2018, gave us an opportunity to reflect on the possible priorities. We

You may say that for us – a country that is bordering the region but also latest to join the EU while strongly advocating for the continuation of the enlargement process - this priority is self-evident. It will also be the continuation of several presidencies before us that also put enlargement and SEE high on their agenda. As you know, the EUWB summit, organized by the Bulgarian Presidency, took place in Sofia for the first time after 15 years, ever since the 2003 Thessaloniki Summit. Croatia undertook to organize another summit during our presidency. By proposing to organize the 2020 EU-WB Zagreb summit, we wanted to underline our conviction that such a high-level

THE CROATIAN PRESIDENCY SHOULD DEMONSTRATE ITS ABILITY TO SUCCESSFULLY LEAD THE EU BY SKILLFUL COORDINATION AND MANAGEMENT OF EUROPEAN POLITICAL AND DECISION-MAKING PROCESSES would like to put special focus on economic growth and employment; connectivity (in particular transport and energy), security in all aspects – external and internal, and enlargement. Our aim is to focus on the prosperity of Europe and its citizens based on principles of equality, inclusivity and cohesion, while boosting European visibility globally. Final stages of the preparations will be done in the second half of the year and the adoption of the Programme is expected in December.

One of your goals was to bring the issue of the EU enlargement to the forefront during the presidency of the European Union in 2020. Do you think that this will be a viable goal bearing in mind that, after the elections for the EU parliament, the momentum might weaken?

— Yes, enlargement will be one of the priorities of our Presidency.

conference should be periodic, to keep enlargement and enlargement countries on the agenda of European leaders. This would also be an opportunity to mark another landmark event that is the summit that took place in Zagreb back in 2000 which opened up the European perspective for all SEE countries and further reinforced the stabilization and association process.

It is true that keeping the momentum will probably be quite challenging, given the institutional changes and the EU's internal priorities. However, we believe that with the Commission’s Strategy from February last year, as well as enlargement-friendly presidencies, the SEE countries now have a window of opportunity.

However, supportive presidencies are not enough to sustain the enlargement momentum. What is even more important is how will the countries that want to join the EU perform.

How much has the experience in presiding to the Council of Europe proved to be useful for the preparation for the much bigger task in 2020?

— The EU and CoE have many things in common. They share the same values of democracy, human rights and the rule of law. Both of them work on preserving these values and raising the standards of their implementation in respective member states, in a complementary manner. In this respect, the Chairmanship of the Committee of Ministers of the Council of Europe was a good opportunity to hear and understand better the Council of Europe’s member states that are not members of the European Union on the most pressing issues facing our continent.

Also, the Chairmanship of the Council of Europe gave us better insight in concrete cooperation between these two organizations, which can be useful for our joint future work on advancing democratic governance, human rights, democracy and the rule of law in Europe and beyond.

What was most interesting about the CoE Chairmanship was the fact that the implementation of the defined priorities depended on the cooperation of the Ministry of Foreign and European Affairs with other ministries or state administrative bodies, as well as local governments. In this sense, it gave us an idea on the process of coordination of the different levels of authorities and competences in order to fulfill national goals.

This is a truly valuable experience.

How well do you cooperate with other two countries from the Trio - Romania and Finland?

— I am really glad to say that the cooperation between the Trio countries is very good. From the very beginning of our talks about the Trio Programme we’ve had a kind of mutual understanding what is really important to our three countries and the EU as a whole. Our experts in Brussels also have a very good cooperation and exchange views and best practices in their respective fields.

MODERN AND SMART CROATIA The Croatian Presidency should present the country as a constructive Member State committed to European standards and values - a Member State that respects solidarity, advocates cooperation and the strengthening of EU institutions and actively contributes to European policies and reforms.

At the same time, the Presidency is an opportu-

nity to present Croatia’s rich culture and art, history and science, natural resources and gastronomy, as well as different brands, ranging from the neckties to Rimac cars.

By placing an emphasis on innovation, new technologies and contemporary design, we would like to showcase a perhaps less known, but nonetheless a modern and smart Croatia.

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NATIONAL DAYS

in March

ARRIVALS & DEPARTURES

MARTINA VRDOLJAK RANILOVIĆ

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New creative director of Varteks

"Being appointed new creative director of Varteks gives me a lot of joy because we are talking about a company that, for decades, was synonymous with good quality, classic Croatian design. In the environment where almost all other Croatian fashion houses

folded and where the entire domestic textile industry fell apart, it is absolutely crucial to revitalize such a big, important brand.

I am honoured to be involved with such a challenging project“, said Martina Vrdoljak-Ranilović apropos her appointment.

BOSNIA AND HERZEGOVINA

Proclamation of Independence 1992

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BULGARIA Liberation Day

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SYRIA Independence Day

IGOR PURETA

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Departing from his position of CEO of Grawe Insurance

The Supervisory Board of GRAWE Croatia d.d. approved the proposal of Mr. Igor Purete to be released from his duties as the Chairman of the Managing Board after almost 20 years in the positions of the member and the Chairman of the Managing Board of GRAWE Croatia. Mr. Pureta is leaving at his own request for personal reasons.

A long-term employee of Grawe, Ms. Nataša Kapetanović remains a member of the Managing Board, a position she has held since 2010.

MAURITIUS

Ms. Adriana Tomić also remains a member of the Managing Board, who was appointed to this position in 2017. Mr. Hrvoje Grčić will become a new member of the Managing Board after the approval of the Croatian Financial Services Supervisory Agency. Mr. Gačić has been with the company from 2015 and thanks to his great sales and marketing experience, will contribute to further development of the company in the Croatian insurance market.

Independence Day

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THOMAS SICHLA The new president of the German-Croatian Industrial and Trade Chamber

Treasurer and Board Member, Dr. Thomas Sichla was appointed as the new president of the German-Croatian Industrial and Trade Chamber. The former treasurer and long-time mem-

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ber of the Board of Directors, Dr. Thomas Sichla is also the director of the Zagreb Waste Water Company (ZOV), and has been elected president by the Chamber's Administration.

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ECONOMY

Text: ŽELIMIR MARAŠ

The Eurasia Time The return of Eurasian mass

Once upon a time, before the ships were robust and the navigators were skillful, the Silk Road was the main artery for transporting goods from rich and culturally developed Asia to Europe.

But then, in these far-back times, the countries along the road profitted the most: Persia, which was enourmously vast, rich and powerful itself; Palmyra and Petra were the magnificent desert capitals, and the countries in the Central Asia, which form today's Uzbekistan, Turkmenistan etc., were flourishing. Even the Venetian Republic and the Genoan Republic were the richest countries, transforming Venice into „the Las Vegas of the Middle Ages“. OK, there was Dubai too. The Arab world was blooming, while Damascus, Alexandria, Baghdad and Cairo were superpowerful cities. Even the Hanseatic League profitted with the shipments from the Byzantine Empire to the West.

THE TIME OF DISCOVERIES

And then it all changed! Vasco da Gama and his pals managed to find the shorter way to Asia and Far East, avoiding the Eurasian land mass. One after the other, the countries which were superpowers fell into oblivion and poverty.

Afghanistan became a backwards outback. Bukhara, Samarkand, Khiva, and Shahrisabz were offroad. The Arabs fell under the Ottoman rule, and the Damascus sabre, once the key weapon of the Islamic warriors, was forgotten, not only due to the emergence of firearms, but actually people literally forgot how it was made. Venice and the whole of Italy became illuminated

by Renaissance, but economically stagnated. Now, the superpowers came from the shores of the Atlantic - England, France, the Netherlands, Belgium (even Denmark and Sweden, at one moment), but especially Portugal and Spain. The discovery of gold in Americas and the Americas itself was another propellant for that. The Hanseatic League was forgotten and the cities of Lubeck and Danzig were just

ago, when the Silk Road and the Eurasian landmass held a crucial importance, it seems that this is happening again. The pirates in Southeast Asia, and especially along the Somali coast and the coast of West Africa, pose a great threat to the trade. Ships are no longer quicker than trains. China, India and Iran, along with the other Asian giants, are pretty much fed up with the Western domina-

IT WOULD BE A CLEVER THING FOR US TO ANTICIPATE THIS CHANGE AND ALIGN ON TIME, FOR ONCE IN OUR HISTORY,AND NOT SHARE THE DESTINTY OF THE ANCIENT HANSEATIC LEAGUE, VENETIAN REPUBLIC, OR BAGHDAD empty shells. All of this happened because the skillful seafarers could now travel avoiding high taxes of the intermediaries in Asia, and they were buying their own goods directly in India and China at much lower prices. The economic boom in Europe was starting!

THE NEW SILK ROAD

But recently, this 500-year-long way of doing business has been challenged. Just like 2,000 years

tion, and they are trying to reduce it, or eliminate it completely.

That's why the Chinese are developing this enormous 900-billion- dollar worth Belt and Road initiative, which will basically create main trade routes for the Eurasian landmass. The different legs of the roads and railways will pass through Kazakhstan, Uzbekistan, Iran, Russia, and Turkey to reach the final destination in the West. Kazakhstan is becoming

the hub of the future. No wonder why the Chinese are so preocupied with the Xinjiang-Uyghur province that they are even trying to „re-educate“ the Ughurs and prevent any terrorist disruption along the way. Xinjiang is the key Chinese province for this project.

India, Iran and Russia are trying to connect Indian ports with Iranian port of Bender Abbas by ships, and once they do, the containers will travel on the new railway through Iran to the Caspian shores where they will be loaded onto Russian ships and Russian railways and continue their way to Europe. This is called the International North–South Transport Corridor (INSTC), a 7,200-km-long multi-mode network of ship, rail, and road routes for moving cargo between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. The route primarily involves transporting cargo from India, Iran, Azerbaijan and Russia via ships, rails and roads. The objective of the corridor is to increase trade connectivity between major cities such as Bombay, Moscow, Tehran, Baku, Bender Abbas, Astrakhan, Bandar Anzali, etc.

BE ON THE RIGHT SIDE, FOR ONCE This will shorten the transport of goods from, let's say, Bombay to Hamburg by one-third and of course, it will prevent the Americans from ever imposing sanctions against anyone, particularly Iran and Russia. Any reason why America is in such a hurry? The times are a-changin', Dylan once sang. It would be a clever thing for us to anticipate this change and align on time, for once in our history,and not share the destinty of the ancient Hanseatic League, Venetian Republic, or Baghdad.

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INTERVIEW

Our Message is Unity in the EU During its mandate, Romania has the opportunity to prove its strong support to the European integration project. While holding the Presidency of the Council of the EU, Romania will act as a genuine and honest broker in order to find solutions that enable progress of the European agenda H.E. CONSTANTIN-MIHAIL GRIGORIE Ambassador of Romania to the Republic of Croatia

“Through its work and actions during the first Romanian Presidency of the Council of the European Union, Romania strives to contribute to the advancement of the European building process, based on the consolidation of the European cohesion and unity,” says H.E. Constantin-Mihail Grigorie, Ambassador of Romania to the Republic of Croatia.

Romania assumed the EU presidency in one of the most delicate moments in the history of the European project. How do you assess the challenges, particularly after the latest developments with Brexit?

— The first Romanian Presidency of the Council of the European Union takes place against a backdrop of large-scale developments that will determine the shape of the European Union- the reflection on the future of the Union, the United Kingdom leaving the EU, the transition towards a new legislative cycle as a result of European elections in May 2019, and implicitly, the end of the European Commission and European Parliament's terms in the office.

At the same time, challenges on the international scene require for the Union to assume an active role internationally.

The Romanian Presidency of

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the Council of the European Union will take place at a time when common efforts of the Member States and the EU institutions are needed in order to identify workable solutions to major challenges that the European unification project is currently facing.

Brexit takes the European Union into a new reality. This process must be managed in an orderly fashion, and the unity of the EU27 has to b e maintained, while striving for strong and close future relations with the UK. The EU is embarking on a new phase after Brexit and together with the Member States and the EU institutions, the Presidency should act in order to create a strategic frame for its future. In this context, a landmark of our Presidency will

— The end of the current EU institutional cycle translates into a high number of pending files that reflect key priorities for the future of our Union and its citizens. We are very ambitious when it comes to achieving tangible results, while being realistic about the complex context and the specificity of this mandate.

For this reason, in the first half of its term, the Romanian Presidency will focus on advancing legislative process, in order to finalise

A LANDMARK OF OUR PRESIDENCY WILL BE THE SIBIU INFORMAL SUMMIT ON 9TH MAY, WHICH WE SEE AS A CRUCIAL MOMENT TO SEND A MESSAGE OF UNITY WITHIN THE UNION. be the Sibiu Informal Summit on 9th May, two weeks before the European elections. We see this Summit as a crucial moment to raise awareness among the citizens about the added value generated by the EU and to send a message of unity within the Union.

From the Bulgarian experience we know that flexibility is a key word. What are your expectations when it comes to the plans and agenda already set?

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as many files as possible. Work will continue assiduously in the second half of our term when we are going to work on the non-legislative files which are equally important and complex.

The Union of the future needs a solid and appropriate budgetary framework and resources, in order to achieve the objectives of the following seven years. The European budget is a reflection of how we see the European Union in the future.

That is why we need to make

sure that the results of the negotiations on the future multiannual budget are equally balanced and well calibrated to the realities that the European citizens perceive on a daily basis. Also, another topic on our agenda is moving forward with the negotiations on the Multiannual Financial Framework, which is a flagship file for our Presidency.

Consequently, we are going to invest a lot of effort into preparing the grounds for a timely agreement on the next multiannual financial framework.

Which priorities do you see as those always worth fighting for?

— The Romanian Presidency's work programme is founded on the belief that any vision for the future must be built around the key principles that have steered the evolution of the European Union so far, which maintained their relevance all along the course of the evolution of the European project, and which have the potential to serve as a driving force for our common action towards consolidating the Union.

This is the reason why the approach of the Romanian Presidency of the Council of the European Union revolves around the princi-

ple of cohesion, illustrated in our motto and central theme of the Presidency, “Cohesion, a common European value”.

This concept covers many current realities that we have to accommodate at the European level. Furthermore, we consider that the EU policies should be more in line with the principle of cohesion among Member States, regions and citizens.

Hence, Romania aims at achieving tangible results and maximising the benefits that a strong and cohesive Union could bring to each and every citizen.

Firstly, we think it is necessary to enhance the cohesion of political action, in order to strengthen the link between Member States, European institutions and citizens.

Secondly, we need to enhance the economic dimension of cohesion as a catalysing factor in reducing development gaps between the Member States and in strengthening the Internal Market.

Thirdly, the social dimension of cohesion should also be promoted, while keeping in mind the need to ensure social convergence and to preserve the four fundamental freedoms of the EU Single Market.

The Romanian Presidency's agenda will focus on four main pillars, which will be reflected in the specific actions of ten configurations of the Council of the European Union, as well as in the events that will take place throughout its term. a. Europe of convergence: ensuring convergence and cohesion for a sustainable and equitable development for all citizens and the Member States, by enhancing competitiveness and closing development gaps, social progress, promoting connectivity and digitization, stimulating entrepreneurship and strengthening industrial policy. Taking forward the negotiation process on the 2021-2027 Multiannual Financial Framework will be an overarching objective throughout our Presidency. b. A safer Europe: making Europe safer by increasing cohesion among the Member States confronted with new security challenges that threaten citizens' safety and by supporting cooperation initiatives in this area. Migration will continue to be a topic intensely debated in Europe and our action will need to be comprehensive, both regarding the internal and external aspects of management of the migration. c. Europe, a stronger global

Before assuming the presidency, Romania received both words of doubt and support from some of the leading EU figures, with regard to its ability to govern the presidency. How much effort did Romania have to invest in order to be fit for the task, and which resources were required to achieve this?

— During its six-month mandate of the rotating Presidency of the EU Council, Romania will deploy considerable efforts both in terms of the substantive matters, which are of high complexity, and logistics, which implied an extensive preparation process and continues to require the mobilization of the entire Romanian public administration and society.

THERE CANNOT BE DIVISIONS THROUGHOUT THE UNION AND THIS IS THE KEY MESSAGE FOR REINFORCING CITIZENS’ TRUST stakeholder: enhancing Europe's global role by continuing the work on the implementation of the Global Strategy, ensuring the availability of the resources required at the EU level, and promoting the enlargement policy, the EU action in its neighbourhood and the implementation of the EU's global commitments. The EU's action in the Eastern Neighbourhood will benefit from a favourable context during the first semester of 2019, when we celebrate the tenth anniversary of the launch of the Eastern Partnership/EaP. The Romanian Presidency will support the organisation of a high-level Anniversary Conference in Brussels in May 2019, aiming to mark this historic momentum.

The Enlargement Policy, as an instrument capable of extending

stability and prosperity across Europe, will be another important topic, which contributes to a safer and a more prosperous future for the EU. d. Europe of common values: stimulating EU solidarity and cohesion by promoting policies to fight discrimination, encourage equal opportunities and equal treatment for men and women, and increase citizens' involvement in European debates. All EU policies and actions should be underpinned by European values and principles as provided by the Treaties. A democratic, fair and tolerant Union is the core foundation of the European project. At the same time, advancing on the European project should be done through a united, inclusive and open approach for all Member States.

EXPECTATIONS What can Romanian presidency bring to the country?

— The following six months present a great opportunity to bring Romania closer to the citizens of the other Member States, and to present a European country deeply anchored in the cultural and spiritual tradition of the European continent.

How many meetings and events do you have to manage over the six time period?

— The calendar of the Romanian Presidency of the Council of the European Union comprises a significant number of meetings and events, both at high and at technical level that will take place mainly in Brussels, Luxembourg, Strasbourg and Bucharest. Approximately 1,700 technical meetings and 40 meetings of the EU Council at ministerial level are scheduled to take place in Brussels. At the same time, and besides the Summit in Sibiu on 9th May 2019, we will host 288 meetings and events in Romania, out of which 22 informal ministerial meetings in Bucharest, 98 high-level officials meetings, 68 expert meetings and 99 conferences. At the same time, actions and events are foreseen in the capitals of the EU Member States as well as in third countries, where Romania will ensure local representation of the European Union.

What are Romania’s main strong sides and what are the challenges at the national level?

— As the first Member State in the current Presidency Trio, Romania coordinated its working programme with Finland and Croatia, but also with its predecessor, the Republic of Austria, aiming at ensuring a high grade of continuity and consistency of the EU agenda.

The excellent cooperation with Croatia and Finland at the Trio’s meetings held in Zagreb and Bucharest, at the level of Ministers of Foreign and European affairs, Labour and Pensions System, Transports, Economy and Commerce, is a catalyst of the implementation of the objectives assumed.

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INTERVIEW

We Should Strengthen Our Bonds Croatia and Spain share common objectives and values in most of the segments of the future EU agenda and we should continue working together as this will further improve our excellent bilateral relations

H.E. ALONSO DEZCALLAR MAZARREDO Spanish Ambassador

We are witnessing deep changes in the international relations, where new stakeholders are assuming a more active role in the international arena, while the international framework, created after the Second World War, is now being questioned. “Spain is among those European countries that believe in a stronger Europe”, says H.E. Mr. Alonso Dezcallar Mazarredo, the newly appointed Spanish Ambassador to Croatia, who is looking forward to improving the already good bilateral relations between Spain and Croatia.

You have recently assumed the duties of the Spanish Ambassador to Croatia. What are your key priorities in nurturing the bilateral relations between Spain and Croatia?

— The bilateral relations between Spain and Croatia are excellent and a good example of this is

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the growing number of Spanish tourists visiting this beautiful country year after year. These people-to-people relations are without doubt one of the best ways to approach our societies and strengthen our bonds.

ZARA, MANGO, ROCA or ACCIONA are just a few of the Spanish companies already present in Croatia and I hope that many more will come in the near future.

The Spanish companies are highly competitive and even leaders in many sectors (infrastructure, energy, water or waste manage-

reforms programmes that the Croatian Government is going to carry out. Likewise, I would like to see a similar bigger presence of Croatian enterprises in Spain.

In short, and in spite of the positive evolution of our bilateral relationship, particularly after Croatia’s entry into the European Union, I believe that no matter how good a situation is, it can always be improved. In this regard, you can count on my deepest commitment in doing my best to try to foster our bilateral relations in all fields, while honouring what my predecessors have done.

As members of the EU, NATO and other international forums which members share similar stances, in which aspects do the official views of Spain and Croatia coincide, and in which they collide? You are one of the five EU countries that did not recognize Kosovo's independence, and Croatia, for example, has.

YOU CAN COUNT ON MY DEEPEST COMMITMENT IN DOING MY BEST TO TRY TO FOSTER OUR BILATERAL RELATIONS IN ALL FIELDS, WHILE HONOURING WHAT MY PREDECESSORS HAVE DONE ment, agri-food industries). In the next few years, I would like to see them having an even bigger presence in the Croatian market while sharing their experiences and contributing to the ambitious

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— Obviously, we cannot always agree absolutely on everything.

But I don’t see that as a reason for concern. On the contrary! It may help us to see other points of view on different topics and,

accordingly, enrich our bilateral debate. But the essence here is that we agree on the most important issues and that explains why, in the recent years, Spain and Croatia have become close friends and allies. Spain was one of the most solid supporters of Croatia’s accession into NATO and the European Union. We share the same values, principles and objectives and face similar challenges. Our two countries believe in multilateralism and globalized economy, while rejecting protectionist or populist policies.

We are also both staunch supporters of a reinforced European Union that can offer the biggest space for freedom, justice and prosperity for the European citizens.

Do you think that the outcome of the European elections will bring about some changes in the EU's attitude towards Catalonia's independence, or do you expect that Europe will continue providing strong support to the Spanish government regarding this issue?

— EU's attitude towards this question has always been unanimous and crystal clear and it is based on the European treaties. In consequence, I don´t see why there could be any change in its position after the next European Parliament elections.

The media and political analysts often draw parallels between Catalonia and Spain, on one hand, and other countries that are facing the possibility of

some of their regions declaring independence. How realistic are these parallels?

— I think that each case is unique and must not be compared to others. However, there is a common point in all of them: the critically important need to respect one´s Constitution and laws. Under the Rule of Law everything is possible as long as laws are respected. You can reform them, but always by following the mechanisms established for that purpose. In a democracy ends never justify means.

You are a diplomat with an extensive experience. How much has the world changed in the last 10 to 15 years?

— It's a faster world. Sometimes you don`t have enough time to get used to the changes that are taking place. Our societies have been deeply transformed thanks to the fourth industrial/technological revolution. We have transitioned from an analogue to a digital world. This transformation has affected us all - as individuals and as citizens. We live in a globalized world where people, goods, ideas and information travel more freely and faster than ever. Borders are no longer an obstacle for them travelling from one point to the other worldwide. Social media, the Internet, and new technologies have changed our daily habits. Our societies have probably changed in these last years much more than in the period between 1945- 2000.

Also, similar deep changes have occurred in the international relations, where new stakeholders are assuming a more active role in the international arena and with the international framework created after the Second World War now being questioned.

Which global challenges could you single out as the most dangerous? How can we eliminate them and how can Spain help with this? Which challenges is Europe going to face in the upcoming period?

WE ARE CONVINCED THAT CROATIA IS GOING TO ASSUME THE PRESIDENCY OVER THE EU IN 2020 WITH A GREAT ENTHUSIASM, RESPONSIBILITY, PROFESSIONALISM AND EFFICIENCY — Along with the said changes, new challenges have emerged which make our world more unstable. We live now in a multipolar world with new proactive actors; we are becoming increasingly conscious of the climate change and of the need to act urgently if we want to preserve our planet. We have to face new and more sophisticated forms of international terrorism. misinformation, fake news, illegal and uncontrolled migration, the return of ideologies that we thought had been forgotten, at least in Western Europe, and cyber attacks. And the list unfortunately goes on and on.

International cooperation and coordination among the interna-

tional stakeholders is the only way to face worldwide challenges that transcend borders. Dialogue, cooperation, respect for international laws, and multilateralism should be ‘the weapons’ to use. When it comes to this task, Spain is an active player, investing its best effort and offering proposals in all the international fora with the objective of contributing to a better world.

Obviously, those same challenges are affecting the European Union too. Additionally, there are other challenges to face. Brexit, diminishing populations, and the rise of the anti-European sentiment and nationalistic approaches among our citizens are some of these challenges.

Spain is among those European countries that believe in a stronger Europe, considering it a community of values and a successful story that remains unfinished and needs to be reformed in those aspects that have proven to be inefficient. I think that our citizens demand a better performing European Union that can meet their needs and that has a more proactive role in the world affairs, while always defending our common values and principles.

Perhaps Brexit may be an opportunity that will spur us in the right direction and make us realize that we must go ahead with this ambitious project by increasing our coordination and cooperation in fields such as the Economic and Monetary Union, the Social Europe, the Environment Agenda, Innovation and Research, Defense, Cyber Security and other issues. As President Sanchez said in his recent speech at the European Parliament:”If we wish Europe to protect us, we must protect Europe first”.

SPAIN WILL COMPLETELY SUPPORT CROATIAN PRESIDENCY IN 2020 In the first half of 2020, Croatia will assume the presidency of the EU. What kind of advice could you give Croatia considering that Spain has already presided over the EU? — We would only give our advice if the Croatian authorities asked us for it. But what I can assure you is that Spain will completely support Croatia in this important task and offer all our experience. We are convinced that

Croatia is going to assume this task with a great enthusiasm, responsibility, professionalism and efficiency.

On the other hand, during the Croatian presidency, the EU will launch a new agenda - a new set of priorities and a new working programme. Croatia and Spain share common objectives and values in most of the dossiers of the future agenda and we shall keep on working together.

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TECH TENSIONS

America Unseals its Indictments Against Huawei The Chinese giant is accused of rewarding trade-secret pilferer

IN A CIVIL lawsuit in 2017 an employee of Huawei, a Chinese telecoms giant, was found to have swiped one of the arms of Tappy, a phone-testing robot owned by T-Mobile, an American wireless carrier, and with it the smart proprietary technology in its fingertip. A jury in Seattle ordered Huawei to pay compensation of $4.8m to T-Mobile. The court found, however, “neither damage, unjust enrichment nor wilful and malicious conduct by Huawei”.

This week the Chinese company reminded the world of that verdict in its public response to a sweeping set of fresh allegations against it by America’s Department of Justice. The charges include bank fraud, obstruction of justice—and technology theft, as Tappy becomes the subject of a new criminal case. Huawei was also accused of defrauding four big banks (one of which is known to be HSBC) into clearing transactions that violated international sanctions on Iran.

This was why Canadian police arrested Meng Wanzhou, the company’s chief financial officer,

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on December 1st, on behalf of the American authorities. On January 28th they made a formal request for her extradition. Canada now has 30 days to respond.

Huawei said that it had not committed “any of the asserted violations” and repeated that it was “not aware of any wrongdoing

Ren by FBI agents in 2007, in which he is alleged to have misled investigators by saying that Huawei did not conduct activity that violated American export laws—are only now being used to bring charges has also raised some eyebrows. In a statement on Monday the FBI made the leap from trade-secret theft to

NOTHING SUGGESTS THAT AMERICA HAS ANY CONCRETE EVIDENCE TO CONFIRM ITS GRAVEST SUSPICIONS: THAT CHINESE SPOOKS USE HUAWEI GEAR TO LISTEN IN, OR THAT IT HAS TIES TO THE PEOPLE’S LIBERATION ARMY

by Ms Meng”. Among the charges unsealed thus far, Tappy is the only direct evidence of intellectual-property theft. And none suggests that America has any concrete evidence to confirm its gravest suspicions: that Chinese spooks use Huawei gear to listen in, or that it has ties to the People’s Liberation Army (for which its founder and chief executive, Ren Zhengfei, once worked as an engineer), as has long been rumoured.

That events over a decade old— including the questioning of Mr

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telecom-infrastructure threat, stating that “the prosperity that drives [America’s] economic security is inherently linked to our national security”. China’s foreign ministry railed against America’s “strong political motives and manipulations”.

The indictments are explosive.

The Chinese giant is alleged to have awarded bonuses to staff based on the value of the information they managed to filch from competitors, as revealed in internal emails written in 2013 and obtained by the FBI. Sepa-

rately, speculation swirled that prosecutors might have secretly indicted Mr Ren as well; America’s acting attorney-general, Matthew Whitaker, said that Huawei’s criminal activity went “all the way to the top of the company”, though without giving further details.

Some defendants’ names have been blacked out from one of the indictments.

And if America is able to prove a simple case of trade-secret theft and bank fraud, Huawei will have plenty to fret about. A bipartisan bill introduced in Congress a few weeks ago would, if passed, systematically ban the sale of American technology to any Chinese company found to have violated export-control laws or sanctions.

When ZTE, a Chinese peer, was hit with such a ban last April, only a surprise reprieve from President Donald Trump three months later saved it from collapse. In October Fujian Jinhua, a state-owned chipmaker, was hit with a swingeing export ban for posing a “significant risk” to American national security; it is expected to suspend all operations within weeks.

The threat of a similar ban is Huawei’s greatest fear. “Any relief for the Chinese national champion will likely come at a steep price,” writes Dan Wang of Gavekal Dragonomics, a research firm. Huawei could perhaps dodge such a ban by paying a fat fine and allowing Americans to monitor it from the inside (a demand to which ZTE yielded last year). The big American suppliers that sell so much of their gear to Huawei, including Qualcomm, Intel and Seagate, would also rather see it more leniently treated. But for now, at least, America seems determined to press on, not settle.

From The Economist, published under licence. The original article, in English, can be found on www.economist.com

CORPORATE

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CORPORATE

Users Know What They Want Last year was so successful for Vaillant d.o.o. that the company would not mind repeating the same success this year too. However, Vaillant would not be the leader it its segment if it did not set the bar higher every year. One of the things that is working in the company's favour is that end users in the region now appreciate more the quality cooling and heating devices

MARIO OPAČAK Director of Vaillant d.o.o. for Croatia and Regional Manager for Vaillant Group for Southeast Europe, Kosovo and Albania

Although the announcement of a new global financial crisis is usually met with concern and caution, the director of Vaillant d.o.o., Croatia and the regional manager for Vaillant Group Southeast Europe, Kosovo and Albania, Mario Opačak claims there is no panic because Vaillant does not belong to either small or high spending companies that are always the first victims of sudden market upheavals. On the contrary, Vaillant sees a significant room for growth and potential for further consolidation of its position in the Croatian and regional market.

What was the year 2018 like for your company, both in Croatia and the region?

— Bearing in mind that we almost matched the results from the time before the last major crisis and that all the markets of which I am in charge contributed to this result by recording double-digit growth themselves, then all I can say for 2018 is that I would not mind repeating it.

Of course, looking back, we always remember the good moments, facts and events, but the past year, just like all the others, brought some new problems too.

First of all, there was a somewhat greater fluctuation in our staffing and more difficulty in finding new employees than before. Neverthe-

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less, we will remember last year primarily for our many successes.

We will also remember it for the successful launch of a number of new products in the market, in cooperation with our long-term partners, the implementation of new ideas and services that we had created to be even more of service to our partners and customers, and setting new business standards in our industry.

I am referring to successfully completing the digitization of our post-sales service by which we facilitated and expedited the operations of our service partners, and, at the same time, ensured availability and monitoring of all relevant service information in real time.

Which trends have you noticed in these markets in terms of your product range?

— There has been a series of new trends in the heating, cooling and ventilation market that have significantly changed the size, structure and dynamics of it.

Naturally, each of the 8 markets, that I am in charge of, has its own peculiarities and its way of responding to these trends. That is why our business is very diverse and demanding in terms of monitoring these changes, recognizing trends and adjusting to the peculiarities of each individual market.

In addition to the very strong trends in the application of new technologies and structural changes in the share of individual tech-

WE HAVE MARKETED A WHOLE NEW LINE OF GAS CONDENSING DEVICES AND NEW HEAT PUMPS, AND WE ARE CURRENTLY LAUNCHING PHOTOVOLTAIC SYSTEMS THAT WILL ROUND OFF OUR SALES PROGRAMME

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nologies, there is also the consolidation in the wholesale segment, the need for narrower specialization in the field of installation and maintenance, and the necessity of continuous training of all stakeholders in the sales process.

Nevertheless, the most significant trends for me are the way our end users think and behave since they are becoming increasingly aware of the importance of the efficiency of heating and cooling devices, are showing a stronger interest in environmental issues, and have a growing awareness of the need for regular maintenance of these devices.

How fast is technological progress in your segment and what are your leading products in the region?

— Technological progress is noticeable in all areas today. New technological achievements in one field lead to changes in other fields. This is particularly true of digitization and new digital technologies that are changing the very foundation in many areas of human activity.

However, there are very few areas where the use of new technologies is encouraged, or actually made mandatory thanks to new laws. The global environmental goals that are transposed into the European goals and the new EU legislation that relate to energy-consuming devices significantly change the technological situation in our field.

Consequently, we are adapting our production and sales programme, while striving to keep

the leading position in the market.

Because of this, we have marketed a whole new line of gas condensing devices and new heat pumps, and we are currently launching photovoltaic systems, which will complete our sales programme and enable us to create complete systems with our products that will fully meet all the highest standards in efficiency, ecological acceptance and quality. The implementation of the new NZEB construction standards is ahead of us, and we can confidently say that we are able to respond to all these new demands.

Of course, all this is paired with products that enable our end users and service providers to have remote monitoring, management and online communication with all our devices.

What product placement opportunities does this region offer in the context of its GDP growth potential, and thus the demand for modern heating, air conditioning and ventilation systems?

— The market volume, which is the crucial factor in product placement, is most affected by current economic activity. Construction, private investments and investments in general increase during the periods of favourable economic conditions. These are times when the demand for our devices increases too. What is often forgotten in the recent discussions regarding the negative migration trends and depopulation that most countries in our region are facing is the fact that the volume of our markets is also decreasing.

However, there are also market segments that are less susceptible to changes due to economic conditions, and one of them is the replacement of old devices market

faster and to a higher degree than other areas. Back then and now, we are ahead of many older EU members in this segment.

In 2008, the financial crisis hit the whole region, immediately after you voiced your expectations about strong growth. Are you getting ready for a new potential global financial crisis that could shake up these markets again?

WE ARE GOING TO REMEMBER LAST YEAR FOR THE SUCCESSFUL LAUNCH OF A NUMBER OF NEW PRODUCTS IN THE MARKET, IN COOPERATION WITH OUR LONG-TERM PARTNERS,AND THE IMPLEMENTATION OF NEW IDEAS AND SERVICES which is quite large in these areas as a result of the earlier common practices of incorrect maintenance and servicing and very frequent exploitation of these devices beyond their usual service time.

Anyhow, we welcome the tendency of investors willing to invest a bit more in order to get more modern and efficient devices and thus achieve long-term savings.

How much has the Croatian mar-

ket progressed by joining the EU and introducing higher ecological standards?

— Progress is certainly visible, but I do not think that the EU membership alone has brought dramatic changes to the Croatian market.

The fact remains that, in the cooling and heating segment, the Croatian market followed and applied new technological trends years before the country joined the EU, and had probably done that

GROWTH IN THE AIR CONDITIONING SECTOR To what extent is climate change reflected in the demand for your products considering that we can notice it even with our naked eye, i.e. how much has energy consumption on air conditioning increased?

— The air-conditioning market has grown remarkably in the last decade, but it is almost impossible to discern how much of that is due to the higher average temperatures observed in that period, and how much is the result of the increased demand for end-user home comfort.

— If you are planning your business seriously and long-term, then you must always keep in mind that a crisis could strike again.

The question is only when it will happen. Keeping this in mind, we strive to run our business as prudently as possible. In my world that means that even when everything seems all right and when you are very successful, you still have to be careful about your costs. We aim not to succumb to the euphoria that comes from having good results, and to give to ourselves, our partners and the market only what we will be able to even if the crisis strikes. In this way, we try to ensure the permanence and consistency of our business.

Here is an unusual and interesting fact – our investments were the highest during the crisis and we did this to prepare ourselves in a timely manner and be able to take advantage of all the opportunities once the period of positive conjunctures came.

Simply put, of course we are going exercise concern and caution when it comes to the new crisis, but I think there is no room for panic because Vaillant does not belong to either small or high spending companies that are always the first victims of sudden market upheavals.

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CORPORATE

Strategic Digital Transformation Partner

Linakis Digital focuses on building long-lasting relationships with major enterprises and leading brands which need an experienced partner to work with them in the realization of their Digital Transformation strategy

VASILIS LINAKIS General Manager Linakis Digital

Back in 2006, Linakis Digital, an agency of designers and developers who were eager to explore the digital world, launched their business by creating corporate web portals, ecommerce sites and mobile applications, designed to inspire and engage.

How has the agency evolved since then?

— We have grown over the years by being faithful to our core values. For us, customers come first.

We take great pride in offering the highest level of service to our cutomers, a business value which is clearly validated by the growing list of important clients. We constantly strive for excellence.

We do not compromise on quality.

We learn from the best worldwide and strive to become better than our competitors. We are results-driven. Our work should always make our client’s business more useful to their relevant users, while offering added value.

We invest in the development of our people. As a result, our designers and IT experts regularly participate as keynote speakers in local and international conferences, workshops and fora, as leaders in their communities. We have earned more than 70 international and domestic awards: the Red Dot Award, the European Design Awards, the German Design Council distinction, the D&AD White Pencil Award, the Sitecore Experience Award, the Ermis Award, the WebX Award,

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the Business IT Excellence Award and the EBGE Merit.

Which industries are in your focus?

— We focus on building long-lasting relationships with major enterprises and leading brands which need an experienced partner to work with them in the realization of their Digital Transformation strategy, across industries. We are currently actively involved in the consulting, design and development of omni-channel assets for more than 20 leading accounts in

jects in over 12 countries around the globe with our clients serving thousands of users in a variety of languages and regions. We have delivered challenging digital solutions in e-commerce, mobile apps, smart intranets, online booking applications, advanced CMS and complete digital experiences.

How can Linakis Digital help an organization succeed in its Digital Transformation initiative?

— Linakis Digital provides a very well-defined set of services,

CUSTOMERS EXPECT TO HAVE A PERSONAL TREATMENT, WHILE THE NEED FOR INCREASING DIGITAL SALES REQUIREDS MORE AND MORE VISITORS TO BE ATTRACTED TO DIGITAL CHANNELS various industries; mainly banking, airlines, tourism, telecommunications, and pharmaceuticals.

We are proud to say that we grow solely through the continuous assignment of new projects from our existing customers, as well as from positive customer references.

We implement and support pro-

cutting-edge software platforms and great experience in important projects. These services are key to the success of such initiatives. It is important to underline that organizations which choose Linakis Digital as their strategic digital partner have already taken the first and the most important step

in this process, which is deciding to digitally transform themselves and treat the digital channel as a very important growth medium.

Once this decision is made, Linakis Digital can help in building digital services designed to achieve goals and increase conversions.

More specifically, via the well-structured Service Design methodology, Linakis Digital will work closely with the organization’s stakeholders and end-customers, study performance and marketing data, analyze digital competition, understand the underlying technological infrastructure, clarify digital goals and KPIs, identify innovation opportunities, and combine all this knowledge in a new, state-of-the-art digital service. Additionally, through its partnership with world-class software platforms such as Sitecore, Kentico, Synerise, Vintom and Microsoft which provide Context and Video Personalization, Marketing Automations and Artificial Intelligence, Linakis Digital designs, implements, tests, launches supports omni-channel digital assets created to facilitate the organization’s new digital services.

DIGITAL CHANNEL AS A STRATEGIC GROWTH PILLAR What are the biggest challenges that enterprises are facing in their digital transformation efforts?

— Any enterprise which identifies digital channel as a strategic growth pillar is facing a series of internal and external challenges towards its digital transformation.

Internal challenges include outdated processes, legacy systems and human resources that require constant skill building in new technologies. These factors may greatly hinder an organization’s Digital Transformation journey.

In order to be able to provide state-of-the-art digital products and services to their end customers, organizations must quickly identify and transform any internal processes, systems and people typically “tuned” to facilitate more traditional services. External challenges include the extremely rapid advancement in available technology, a growing number of digitally-savvy customers who have already experienced high-quality digital services in completely different market sectors, fierce on-line competition and a legislative landscape which is becoming increasingly difficult to navigate.

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CORPORATE

Preparing Students for 21st Century Challenges Our students come from all over the world, and we have a number of them from Croatia too. The main reason why they attend our schools is the uniqueness of our curriculum and the possibility of continuous education in programmes outside the Republic of Croatia

MILENA PRODANIĆ TIŠMA Director of the Bright Horizons British School in Zagreb

The Bright Horizons British School in Zagreb implements the British National Curriculum along with the International Primary Curriculum. “This is a comprehensive curriculum with a clear learning process and individual learning goals for every subject, for personal learning and international orientation”, says Director of Bright Horizons, Milena Prodanić Tišma.

The International Primary Curriculum is currently being implemented in over 730 international and national schools in 95 countries worldwide.

Last year you celebrated the school’s 5th anniversary. How challenging was to open another educational facility following the success of your nursery?

— The need to open this school emerged as a result of the absence of the vertical education in our preschool programme.

Plus, in our case, I can say that we are really happy and grateful to the parents of our students that they have chosen us to follow their children through most of their growing up process, and that, in collaboration with them, we can use the element of upbringing, in addition to the educational one, to have a positive impact on their growing up.

What does it mean to educate children for future jobs?

— Learning is at the very heart of the International Primary Curriculum. This curriculum was devised to help children with learning and for children to enjoy it. To focus on learning also means to focus on grades and evaluation, and grades and evaluation are important ways for us to find out whether children are learning.

Since knowledge, skills and understanding are learned in different ways, they are also taught, graded and evaluated in a different way.

Knowledge pertains to facts and facts can be right or wrong. The simplest way to find out whether children have learned the facts is

to give them standard tests.

Skills are practical and experiential. They cannot be right or wrong, but only developmental. To that end, the International Primary Curriculum speaks about learning skills in the context of the beginning of learning, building and mastering skills.

These three levels are not clearly delineated, and the perception of how each one looks differs from an individual to an individual. For this reason, in the International

robotics classes after regular ones.

Part of teaching is done on tablets which encourages students to access online platforms where they can find Math exercises or maybe reflect on their work. We view STEM activities as tools for achieving even important competencies - key skills such as learning skills, problem-solving, collaboration, and communication, and personality traits such as curiosity, taking initiative, persistence, adaptability, social and cultural awareness.

IT IS EXTREMELY IMPORTANT TO HELP OUR STUDENTS TO LEARN HOW TO FIND THEIR WAY AROUND IN NEW SITUATIONS BECAUSE WE MIGHT BE PREPARING THEM FOR FUTURE JOBS THAT DO NOT EXIST AS YET Primary Curriculum, grading is formulated in a special way and is based on segments. It is extremely important to help our students to learn how to find their way around in new situations because we might be preparing them for future jobs that do not exist as yet.

We have also put emphasis on new technologies and computer science is taught at our school from the first grade. Students can attend

How many children do you usually enrol and which countries do they come from?

— Our school grows because we enrol a new generation of first-graders each year. Next school year we will round off the vertical education from early preschool to elementary education by opening the eighth grade. The highest number of students that we have in one classroom is 18.

EDUCATION AGAINST VIOLENCE What other projects does your school take part in?

— EQUI-X is a project implemented by the Status M Organization in Croatia in partnership with the Vedri Obzori International Elementary School.

The project develops, pilots and implements an innovative approach to working with children and young people on problems created by the peer, gender-based violence, gender inequality and absence of responsible behaviour, as well as on healthy lifestyle. Its aim is to contribute to gender equality and to prevent all forms of violence and

risky behaviour.

Under the project auspices, we conduct educational workshops with children and young people in partner schools. Students also devise and carry out mini public campaigns aimed at involving the wider community and raising public awareness about the problems of violence and gender inequality.

The project is supported by the European Commission through the Rights, Equality and Citizenship Programme, and is implemented in five European countries (Spain, Portugal, Belgium, Germany and Croatia) from 1 January 2018 to 31 December 2019.

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CORPORATE

Health From Iodine Solution

A Croatian entrepreneur from Križevci patented a unique iodine-based supplement. This product will soon have its own promotion in the region as well

With her unique product based on an essential mineral – iodine, Croatian entrepreneur Jadranka Vrhovec caused a real revolution in the Croatian food supplements market.

In only a year, the young entrepreneur from Križevci has managed to intrigue the entire region and Europe with her first ever product – Jadrankina Otopina (Jadranka's Solution). She makes the solution in a small lab in Križevci, just outside Zagreb, and after a year of recording excellent sales results in herbal pharmacies across the country, Jadrankina Otopina will be now also sold in Slovenia, Bosnia and Herzegovina, Serbia, Germany and Austria.

Jadranka Vrhovec called the solution after herself because the product is a result of a very personal story of her fight against thyroid problems. She first tested this food supplement, which main ingredient is iodine from algae and potassium iodide, on herself. „I discovered the healing properties of iodine while personally struggling with health problems.

Two years ago, I was faced with a very bad diagnosis and a thyroid disease. I was diagnosed with Hashimoto. I could not make my peace with the prescribed therapy that I would probably had to take all my life. I am an advocate of a healthy lifestyle, and nearly all my life I had to watch my mother struggling with thyroid disease and the side effects of taking medication. I did not want to go down the same route, so I started

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to explore how to help myself, " Jadranka, who lives in Križevci, near Zagreb, explains. Her friend, a pharmacist jumped to her help, and Jadranka created the iodine solution, not having a clue where her journey would take her. She tested the solution on herself first and soon after a number of friends and women contacted her with similar health problems. After that, Jadranka decided to start the registration process for Jadranka's Solution, and, in the meantime, she has also submitted an internation-

al patent application.

The first thing that most of us think when iodine is mentioned is a disinfectant that we use for skin cuts, or in treating thyroid problems.

However, throughout history, iodine has been used as a universal medium for improvement and treatment of a wide range of health problems.

Iodine is an essential mineral in the human body responsible for the synthesis of thyroid hormone, which uses iodine to produce hormones, which are, in turn, crucial for healthy metabolism, protein synthesis and growth. In addition, iodine is essential for the proper development of brain and brain structures in the prenatal period, and lack of iodine in pregnancy can cause irreversible consequences on newborns such as poor motor and cognitive functions; its deficiency in pregnant women is also directly linked to mental retardation in children.

AFTER RECORDING EXCELLENT SALES RESULTS IN HERBAL PHARMACIES ACROSS THE COUNTRY, JADRANKINA OTOPINA WILL BE NOW ALSO SOLD IN SLOVENIA, BOSNIA AND HERZEGOVINA, SERBIA, GERMANY AND AUSTRIA

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Iodine is of utmost importance for female reproductive health too and has been recognized by many international researches as universally applicable as prevention aid, as well as in recovery from many health problems such as HPV, polycystic ovaries, breast and cervical cancer and others related diseases.

Also, with regular iodine intake, women can often resolve problems with ovulation deficiencies, but also infertility.

While waiting Jadranka's Solution to hit the regional and European markets, Jadranka Vrhovec has also begun to expand the production of her own dietary supplements, and since January 2019, there are several other products from the same product line of Jadranka's Solution – eco-grown eglantine powder from Croatia, rich in Vitamin C, Magnesium Chloride in powder and Magnesium Chloride in spray, with the addition of essential skin care oils. „I am marketing these new products as supplements to Jadranka's Solution, and they are perfect for everyday use to strengthen the body, immunity and preventing health problems,“ Jadranka Vrhovec underlines.

"Along with the necessary vitamin C intake, especially at this time of the flu, Magnesium Chloride is a product I recommend to be taken with my iodine solution because it helps with detoxication since it takes part in more than 300 metabolic processes in the body. We should also be taking 100 micrograms of selenium, which is a recommended daily dose, because this is also a very important mineral, especially for people who already have thyroid problems," says this self-confident young entrepreneur.

You can find more about Jadranka's Solution on her websie and Facebook page: www.jadrankinaotopina.com and www.facebook.com/Jadrankinaotopina.

KAPTOL BOUTIQUE CINEMA

Z A G R E B 29.03.2019.

PREDAVANJA • Telemedicina u RH: što imamo, a ne znamo da imamo?

• Što smo naučili u prvoj godini primjene GDPR-a i što nas čeka?

• Potencijal blockchain tehnologije za upotrebu u medicine

PANELI • Efikasno prikupljanje i obrada zdravstvenih podataka • Onkologija u digitalnom društvu - hrvatska perspektiva i europska budućnost

Više informacija i prijave na: hit-konferencija.hr

23

INTERVIEW

Wine is Our Tourist Trump Card

We want to promote Croatia's complete wine heritage, its winemakers, wine and wine routes, nurture traditional values and initiate new forms of socializing. The abundance of wine offerings is a great asset of Croatia's tourist offer and tourist potential ROBERT BREGANT President of Croatian Wine Roads (Vinski Putevi Hrvatske)

Almost all of Croatia, except the Lika and Gorski Kotar regions, is more or less covered in vineyards. Slowly but surely, wine tourism is finding its place in Croatia's overall tourist offer, with the Croatian Wine Roads Association getting involved in this endeavour in its unique way.

How did you come up with the idea of forming this Association?

— The idea behind forming Croatian Wine Roads was born in the late afternoon of July 3, 2016, while I was with my friend Zoran Rapajić (President of Serbian Wine Roads), drinking a glass of the Prokupac wine, made by winemaker Kosta Botunjc. One glass of wine will suffice for a good idea, but if you want to come up with an excellent, historically important idea, you need a few more glasses of top-notch wine. And I had the latter! The idea sat with me for a while, just like good wine should, and then I started gathering enthusiasts who could and wanted to share their spare time with wine aficionados, winemakers and wine experts, but also to learn and try new flavours and combinations.

Two dates are exceptionally important for the Association.

The first is August 18, 2016, when I gathered four friends and held the Founding Assembly of the Croatian Wine Roads Association.

Another important date is October 6, 2016. On that day, the General Administration Office of

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the City of Zagreb issued an official decision approving the registration of an association called VINSKI PUTEVI HRVATSKE, with headquarters in Zagreb, 75B Vlaška Street, abbreviated as VINOPUTI. HR and translated in English: CROATIAN WINE ROADS, with the Republic of Croatia's Register of Associations.

What kind of experiences did you have in these last two and a half years of the Association's operations?

— Our experiences, in the two and a half years since we have founded the Association, are beyond great.

All of the Association members are enthusiasts who possess good and noble virtues, and since the very beginning, they brought a lot of drive and panache to the Association. Today, I can say that we are a

roads in Croatia, which, in some regions, blend with cheese roads or olive oil roads. Most winemakers have added beautifully furnished tasting facilities and accommodation to their wine offer. Some also offer organized bicycle tours of wineries. All this is accompanied by numerous wine festivals and exhibitions such as Vinistra or Vinocoma. I also have to mention hundreds of wine associations that cultivate winemaking and which, like our association, are doing a lot on the promotion of wine and wine tourism both in Croatia and in the world.

The Romario d.o.o. Company, where I am the editor-in-chief, and the Jutarnji List daily have created and published a new and unique wine card of Croatia. Our intention was for everybody to become familiar with the immense

TODAY, CROATIA IS A COUNTRY WITH A HIGHLY DEVELOPED WINE CULTURE, NUMEROUS WORLD-RENOWNED AND RECOGNIZED WINES AND WINEMAKERS, WITH A TENDENCY TO CONSTANTLY EVOLVE AND IMPROVE big, inseparable wine family. We are growing steadily. Together with our friends and wine lovers from Serbia and Slovenia, we are experiencing unforgettable moments that people are already talking about.

winemaking abundance as much as possible. On December 3, 2018, the Jutarnji List published the wine card as a free supplement. This card is a realistic cross-section of everything wine-related.

In which way are you promoting Croatia's winemaking tradition?

Considering that this is a cross-border cooperation initiative, what is your cooperation with the regional neighbours like?

— There is no wine region in Croatia that still hasn't recognized the potential of wine and has not included it in their tourist offer.

Today, there are numerous wine

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— The cooperation was established from the very beginning and registration of the Association. On

November 11, 2016, we organized the first NovemberFest that hosted a large and impressive delegation from Serbian Wine Roads. During the three festival days, we presented the tradition and the customs of the city of Zagreb and its surroundings. We spent time together while enjoying beautiful wines and autochthonous dishes from Zagreb and Zelinski vineyards.

The most significant moments of the first NovemberFest happened at the Bornstein Wine Cellar in Kaptol. The presidents of the two associations – myself, on behalf of Croatian Wine Roads, and Mr Zoran Rapajić, on behalf of Serbian Wine Roads - signed the Charter, the Friendship and Cooperation Treaty and the treaty on the founding of the Panonian Wine Corridor. The Pannonian Wine Corridor epitomizes the continuation of our cooperation and will become the foundation for disseminating common wine-related ideas to other countries in the surroundings.

The Pannonian Wine Corridor (abbrev. PWC) is an international project of linking wine associations, winegrowers, winemakers, wine cellar proprietors and all subjects who are in any way linked to wine and wine tourism.

It connects all those who provide products and services for tourist purposes to the countries situated in the former Pannonian Sea, namely Bosnia and Herzegovina, the Czech Republic, Hungary, Austria, Croatia, Slovenia, Serbia, Romania, Slovakia and Ukraine. The PWC is a joint international project of Croatian Wine Roads (abbreviated CWR) and Serbian Wine Roads (abbreviated SWR). These two

associations are the creators and implementers of the project. Also, they are the sole owners of the project copyright.

How can someone join the Association? How many members do you currently have?

— The Association membership can be full-fledged (regular), temporary, affiliate, supporting and honorary. Any physical and legal person can become a member on condition that they have at least three references from our regular members and they successfully complete the process related to the temporary member status.

Any physical and legal person can become a temporary member by submitting a written request and following the Association president giving their approval of membership. If they are admitted as temporary members, they have a trial period of six months starting from the day the President decides to admit them as members, during which they have to prove that they are interested in being active members and that they have contributed to accomplishment of the Association's goals by successfully completing certain tasks given to them by the Association president. A temporary member acquires the status of a full-fledged (regular) member on the date of the decision made by the President of the Association to grant them membership. The Association's Assembly decides on the admission to other forms of membership.

There is one article in Croatian Wine Roads' Articles of Association that I would like to single out – it is the Article 17 which says:“Promise given to the Association is unbreakable for all members.“ In other words, you must do what you promise, otherwise, you could be excluded from the Association.

Today, the Croatian Wine Roads Association has 18 members and the membership is free of charge.

What is it that you offer to your members and what benefits do

THE PANNONIAN WINE CORRIDOR IS AN INTERNATIONAL PROJECT IMPLEMENTED BY CROATIAN WINE ROADS AND SERBIAN WINE ROADS THAT WILL BECOME THE FOUNDATION FOR DISSEMINATING COMMON WINE-RELATED IDEAS TO OTHER COUNTRIES IN THE SURROUNDINGS they stand to gain upon joining the Association?

you planning for the upcoming period?

— Along with the standard rights and obligations that members have that stem from their active involvement in managing the Association's operations, implementing its activities and supervising its work, the benefits, or as I would rather call them satisfaction, that the members stand to gain comes from cooperating with other associations from the PWC countries. We have several annual wine gatherings with these countries. These exclusive meetings involve sightseeing vine growing areas, presentation and tasting of wine and food, sightseeing of natural and cultural/ historical sites and attractions, as well as wonderful thematic music gatherings in the evening.

— The first and most important project of the CWR Association in 2019 is organizing the 4th NovemberFest that requires a lot of effort and time. Our goal again is to present the City of Zagreb in the best possible light, fitting of a European capital city and the three-times bearer of the title „The Best Christmas Destination in Europe“.

The second project is the revival and expansion of the Wine Road of the City of Zagreb, which we plan to accomplish in cooperation with the City Office for Agriculture and Forestry and the University of Zagreb's Faculty of Agriculture.

Zagreb boasts having vineyards right in the metropolitan area, such as the Jazbina complex at the Faculty of Agriculture, but also the vineyard in the town centre - in

What promotional activities are

Tkalčićeva Street.

Considering that Zagreb has experienced a fantastic tourist boom and that a large portion of the oenological-gastronomic offer is contained within the comprehensive wine card, I think it is necessary to revitalize and supplement the Wine Road in the city and offer it to the visitors as another very interesting tourist product.

The third project that we plan to implement this year is organizing at least two or three two-day educational and entertaining wine tours in the countries members of the Pannonian Wine Corridor. We are going to start off with the Republic of Serbia and the Republic of Slovenia.

In order to implement the aforementioned projects this year, we really need financial resources. The only financial means that we have had so far were obtained through the Public Call for allocation of oneoff grants, launched by the Mayor of the City of Zagreb, Milan Bandic.

Therefore, I would like to appeal to all fans of wine and fellowship to join us personally and financially in the expansion of the cross-border cooperation and to become part of brilliant wine stories.

NINE PATRON SAINTS OF VINEGROWERS AND WINEMAKERS The UNESCO Intangible Heritage List contains yet another proof that Croatia is rich in traditional customs, including those related to wine and wine heritage. The list contains 15 traditional customs and crafts in Croatia including Sinjska Alka, lacemaking. traditional a cappella group singing called klapa, the festivity of Saint Vlaho, patron saint of Dubrovnik, Za Križen (Following the Cross) Procession on the island of Hvar and others.

The most important practice of the centuries-old wine, winemakers and vinegrowers tradition is the Day of Bishop Saint Martin or popularly called Martinje, which takes place every year, on November 11. The festivities

include a ritual of a baptism of must into young wine.

Along with St. Martin and Martinje, Croatia has eight more patron saints of wine and winemakers. At the beginning of the year, on January 22, we celebrate St. Vinko Day*, popularly called Vincekovo, when the cultivation of vineyards officially starts. Then there are St. Juraj* (Jurjevo, April 23rd), St. Urban (Urbanovo, May 21st), St. John the Baptist*, (June 24th), St. Lovre Rimski (August 10th), St. Bartol (Bartolovo, August 24th), St. Mihael (Miholje, September 29th) and St. Andrija (November 30th). * - the star denotes commemorative days of winemaking patron saints

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PEOPLE & EVENTS

25 70th REPUBLIC JAN

DAY OF INDIA

A reception was held at the Sheraton Hotel in Zagreb in celebration of the 70th Republic Day of India. The Indian Ambassador to Croatia, H.E. Mr. Arindam Bagchi hosted the reception and welcomed the

Indian Ambassador to Croatia, H.E. Mr. Arindam Bagchi with his wife

28 THE KICK-OFF OF JAN

THE ROMANIAN PRESIDENCY OF THE COUNCIL OF THE EUROPEAN UNION

Indian Ambassador to Croatia, H.E. Mr. Arindam Bagchi, former Croatian President Mr Stjepan Mesic with associates

The Embassy of Romania in the Republic of Croatia organized the kick-off of the Romanian Presidency of the Council of the European Union in Zagreb. In his speech, the Ambassador Extraordinary and Plenipotentiary of Romania to the Republic of Croatia, H.E. Mr. Constantin-Mihail Grigorie, highlighted the priorities of the Romanian Presidency of

Ambassador Extraordinary and Plenipotentiary of Romania to the Republic of Croatia, H.E. Mr. Constantin-Mihail Grigorie, Minister of Labor and Pension System Mr Marko Pavić

29 AUSTRIAN BUSINESS CIRCLE JAN

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guests with a speech, as did academic and Deputy Speaker of the Croatian Parliament, Željko Reiner. The reception was attended by a number of public and cultural figures, as well as members of the diplomatic corps.

ON CSR TOPICS AND NEW YEAR`S RECEPTION

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the Council of the EU with the motto "Cohesion, a common European value", while also underlining the excellent cooperation between Romania with Croatia in the Trio that presides Council of the EU in the period 2019-2020, and the very dynamic and intensive Romanian-Croatian agenda in all fields of the bilateral cooperation.

Ambassador of Romania to Croatia, H.E. Mr. ConstantinMihail Grigorie , Mr Miro Kovač, US Ambassador, to Croatia H.E. W. R. Kohorst

The representatives of the Austrian companies in Croatia gathered at the Admiral Hotel in Zagreb to celebrate the Austrian Business Circle meeting in 2019 titled “CSR Matters: Non-Financial

Reporting &FeedFORWARD”, as well as attend a New Year’s reception where the guests were able to enjoy top notch food and drinks while networking and getting to know new people.

05 BUSINESS FEB

BREAKFAST OF SLO CRO BUSINESS CLUB

Minister of Construction and Spatial Planning of the Republic of Croatia, Predrag Štromar

07 AHK’S NEW FEB

YEAR’S RECEPTION

H.E. Dr. Robert Klinke, German Ambassador to Croatia

EXHIBITION

Planning of the Republic of Croatia, Predrag Štromar. Guest lecturer was Marjan Pipenbaher, a graduate engineer specialized in structural and earthquake engineering, and co-author and chief designer of the Pelješac bridge. Pipenbaher has been building bridges for 35 years.

Mr Branko Roglić, President and Proprietor of Orbico, president of the SLO CRO Business Club Mr Saša Muminović , Minister of Construction and Spatial Planning of the Republic of Croatia Mr Predrag Štromar, Mr Marjan Pipenbahe

Under the auspices of its New Year’s reception, on 7th February, the German-Croatian Chamber of Industry and Commerce gave out the AHK Award for vocational training 2018/2019 for the first time ever. The Croatian Ministry of Science and Education and the German Embas-

President of the SLO CRO Business Club Mr Saša Muminović

sy in Croatia were the Award’s sponsors. The winners of the very first AHK Award for vocation training are the Haix Obuća Company, the Mechanical and Traffic School from Varaždin, the Harburg- Freudenberger Belišće Company and the Mechanical – Technical School from Osijek.

H.E. Dr. Robert Klinke, German Ambassador to Croatia , Sven Thorsten Potthoff, Director of the German-Croatian Chamber of Industry and Commerce with winners of the very first AHK Award

08 DINAMO SPRING FEB

On Tuesday, 5 February 2019, the Sheraton Hotel in Zagreb hosted members and friends of the SLO CRO Business Club at a business breakfast . The host was the president of the SLO CRO Business Club Saša Muminović and the honorary guest was Minister of Construction and Spatial

The winner of the last Euroleague match against Schalke in 1970, the 1967 World Cup Leeds championship, the 1967 and 1982 football jerseys, the 1980s

member card, the soccer ball and the 1960s and 1970s, are all depcited in the exhibition titled “Dinamo Spring”, which will be officially opened at the Kranjčar Gallery on Kaptol.

MORE PHOTOS ON

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PEOPLE & EVENTS

13 FORUM OF FEB

MONTENEGRIN AND CROATIAN BUSINESS PEOPLE

14 STATEHOOD DAY FEB

The Forum was held during the "Days of Creative Montenegro in Zagreb" event. The Croatian Chamber of Economy was the host of the gathering, with more than 100 representatives of companies from two countries attending. The

OF REPUBLIC OF SERBIA

A reception was held at the Mimara Museum in Zagreb apropos the Republic of Serbia’s Statehood Day. The reception’s host, the Serbian Ambassador to Croatia, H.E. Ms Mira Nikolić addressed a number of guests, followed by the Zagreb

Vice-Presidents of the Montenegrin and Croatian chambers, Ivan Saveljić and Ivan Barbarić respectively, gave their welcome speeches, as did the Ambassador of Montenegro in Zagreb, H.E. Mr. Boro Vučinić.

Mayor, Milan Bandić. The reception was attended by many political, business, cultural and public figures in Croatia, as well as the members of the diplomatic corps. Traditional Serbian dishes and beverages (wine and rakija) were served at the reception.

Serbian Ambassador to Croatia, H.E. Ms Mira Nikolić

18 PATRON COCKTAIL FEB

WITH US AMBASSADOR, H.E. MR. W. R. KOHORST

This traditional cocktail was a great opportunity to discuss the Croatian business environment with Ambassador Kohorst and Directors of the Patron Company, a member of the AmCham.

US Ambassador to Croatia , H.E. Mr. W. R. Kohorst, Mr. Patrick Mikkelsen, the Executive Director of the American Chamber of Commerce in the Netherlands and President of the organization of European AmChams, Andrea Doko Jelušić Executive

28

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Mr. Patrick Mikkelsen, the Executive Director of the American Chamber of Commerce in the Netherlands and President of the organization of European AmChams, joined the cocktail too.

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29

SOCIOECONOMAL POLITICS

Text: ŽELIMIR MARAŠ

It's not Populists, Mate

And it's not Russians either to be more liberal, well, at least for themselves, to protect their interests in the poorest countries, and feel hateful against any new superpower that might rise up.

ILLIBERALS WANT IT THE OTHER WAY

OK, liberalism is in crisis, everybody keeps repeating. Of course, we have two guilty parts – hateful populists and even more hateful Russians, who support them with logistics and propaganda. But is it really so?

The Economist is a nice magazine, but sometimes it becomes very clear who it is defending. A few months ago they celebrated their 175th birthday and reminded us that The Economist was formed in the early 19th century Britain to liberalise the wheat trade against the import taxes, or something of the kind. Of course, as a result, the wheat became much cheaper and the population was not starving (that much). To this day, they say that liberalism should continue on its way since it makes things cheaper, more affordable and people get richer while enjoying a better living standard. But is it really so?

LIBERALS WANT IT MORE LIBERAL

Libération, the renowned French paper, published something along the same lines. Unfortunately, it was managed by Bernard-Herni Lévy, the notorious

And here came the populists, who are undoubtably sometimes dangerously simplifying the cause and the solution of the crisis. But It is important to mention that it was the liberals that gave birth to populists, and now don't do squat to remove the causes of the circumstances that brought populists on stage. Greece was sacrifised during the Great Recession starting in 2008, and the great banks were preserved. Lobbists are taking care of great companies, politicians are taking care of their financers and companies, and the common people are left begind, even by

THE EMPEROR IS NAKED AND EVERYONE IS SEEING THAT. AND WHAT IS SEEN CANNOT BE UNSEEN! BEWARE! warmonger and „philosopher“ involved in every kind of military intervention around the planet, who conveniently forgets that France is holding firm economical grip over Sahel and West Africa with their Central African and West African francs, regulates the economy in these countries, with some of them being clearly the poorest in the world despite their natural wealth, thus triggering the mass migration.

Liberals somehow want the things

Social Democrats, who are more concerned with identity questions - Are there only two genders?

Should the same-sex marriages be allowed? Are there enough women in parliament and in the boards of great companies? Is the commercial racially diverse? - while the common people in Britain say: „I'm poor, white, hetero, unemployed and fed up of being treated like scum“ because they are being treated like scum since they have

THE EMPEROR IS NAKED For many years, Social Dems were champions of the working class, but only because of the Socialism in the East. When the Socialism collapsed, there was no more Mr Nice Guy. Capitalism showed its ugly face and the Soc Dems stopped championing the workers since 1991.

Now, almost 30 years later, the workers finally understand it as they turn their backs to the establishement, trying not only, like in France, to overthrow petrol prices or Macron, but the whole elite, and dismantle the whole system. If the liberals don't notice that and don't start enabling better life for the workers, like they did 175 years ago, the old system is doomed and they are doomed. The Emperor is naked and everyone is seeing that. And what is seen cannot be unseen! Beware!

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no money. At least, give them a decent life, otherwise they will voite for Brexit, Trump, AfD, Salvini, whatever you don't like. They will tolerate everything from non-binary genders to gay marriages and extremely rich people if they're satisfied with their own material situation. They will read in tabloids about all the aforementioned things. Laughing at them! Or not!

FACTS

Nebojša Katić from The Economist Intelligence Unit argues: „If it is to be trusted to the French minister of labour, 87 percent of those who are employed today have a job only for a limited time, the majority only for a period shorter than a month, and even a third gets a job for only one day, or only a few hours a day.” This is what brought the Yellow Vests and anger to the streets. In Germany “about 40 percent of households do not own anything” or, as the economic dictionary says, the value of their net assets is zero. They will not have anything to leave to their children.

Only about 45 percent of German households have flats and houses in their own property.” Much less than in the Balkans or Moldova!

They know that the migrants are here just to stop the potential rise of wages, hence the hatred. Salvini even said: “The Africans belong to Africa, but we should enable the conditions for them to thrive and be rich. If we don’t abuse their wealth (especially France), they will flourish. Otherwise they will come to Europe. Which is something that we don’t want.

THE DAVOS DELUSION

Down With Philanthrocapitalism, Says an Entertaining Polemic Anand Giridharadas says the global elite is complicit in the problems it purports to solve

IT IS MORE than 20 years since Samuel Huntington introduced the concept of Davos Man in his great book “The Clash of Civilisations”. Now Anand Giridharadas has gone one better and taken his reader deep inside the mind of that peculiar creature.

Everybody knows the basics: Davos Man believes that markets are more efficient than governments and that globalism is preferable to nationalism or localism. Mr Giridharadas’s trick is to focus on the more intriguing parts of the Davos world-view: that businesses can “do well by doing good”; that philanthropy needs to be “reinvented” for the age of the internet and the T-shirt-wearing billionaire; and that one of the greatest problems facing the world, even as some inner-cities are ravaged by drugs and violence, is that there aren’t enough Davos Women to join the Davos Men in this win-win nirvana.

A few years ago Mr Giridharadas, who works as a political analyst for MSNBC and teaches journalism at New York University, stumbled across a big problem— that the rise of the win-win mantra had coincided with one of the longest periods of wage stagnation in American history. Davos Man’s smiley-faced faith in business-led solutions (green bonds, impact investing, social innovation and the rest) concealed a harsher reality. Businesses were relentlessly pursuing efficiency and cutting costs—shifting jobs to cheaper places or forcing people to work longer hours—and then recycling a fraction of the profits they made into Davos-style consolations.

All this recycling is wonderful for the billionaires who derive a warm feeling from spending their money on helping the poor.

It is wonderful for CEOs who can burnish their brands by embracing

the latest fashionable good cause.

It is particularly wonderful for the “thought-leaders” who can spend their lives hanging out with Sergei and Mark and suggesting clever ways for their philanthrocapitalist masters to cure the world’s ills.

But it does little to make up for the winner-takes-all philosophy that is driving companies to hold down wages and transfer the burden of risk onto their employees. And it does little to solve the problems of

decades, hundreds of millions of people in the emerging world have been lifted out of poverty. His anti-business animus is bluntedged: he would have been better off focusing on genuine scandals such as tax-dodging rather than railing against efficiency-seeking in general. Yet in some ways these objections miss the point.

“Winners Take All” is a splendid polemic that is all the better for simplifying and exaggerating.

IT DOES LITTLE TO SOLVE THE PROBLEMS OF “THE UNEXOTIC UNDERCLASS”—WHITE EX-WORKING-CLASS MEN IN PARTICULAR—WHO HAVE BEEN DEEMED TOO BORING AND REACTIONARY FOR THE DAVOS CROWD TO BOTHER ABOUT “the unexotic underclass”—white ex-working-class men in particular—who have been deemed too boring and reactionary for the Davos crowd to bother about.

It is easy to raise objections to Mr Giridharadas’s argument.

He ignores the fact that figures like Bill Gates have done a great deal of good. He doesn’t mention that, even though incomes in the West have stagnated in recent

Mr Giridharadas writes brilliantly on the parasitic philanthropy industry that somehow manages to hold its meetings in desirable resorts (Davos in the ski season, Bellagio in the summer) rather than in Detroit or Lagos. In one particularly stomach-turning section he reports on a luxury cruise, Summit at Sea, where various bigwigs discuss ways to improve the world while sitting in the well

of the Bliss Ultra Lounge. “The boat’s not about getting drunk and getting naked,” a motivational speaker intones. “Well, it’s sort of about that. But it’s also about social justice.”

He produces worrying case studies that illustrate his theme of companies creating big social problems and then offering sticking-plaster solutions in the form of philanthropy. For example, Purdue Pharma has an impressive record of providing grants that “encourage the healthy development of youth by reducing high-risk behaviours such as substance abuse”.

But one reason that the company can afford such largesse is that it has made a fortune from marketing OxyContin, a drug that, thanks to over-prescription, is at the heart of America’s opioid epidemic.

The only genuine failure of this otherwise excellent screed is that Mr Giridharadas does not push his argument further. He rightly goes beyond inequality of wealth to address inequality of power: how win-win fixes invariably take problems out of the political realm and sub-contract them to unaccountable global elites. But he says nothing about the fascinating issue of inequality of esteem.

The Davos elite is not content with hoarding an inflated proportion of the world’s wealth and power. It is trying to appropriate an outsize share of the world’s esteem by reinventing philanthropy in its own techy and globe-trotting image. It is not just Davos Man’s vices that are fuelling the populist fire. It is his virtues too.

Winners Take All: The Elite Charade of Changing the World.

By Anand Giridharadas. Knopf; 304 pages; $26.95. Allen Lane; £12.99.

From The Economist, published under licence. The original article, in English, can be found on www.economist.com

31

BUSINESS NEWS

A1

OPERATING PROFIT EXCEEDS 114 MILLION EURO

Croatia Airlines

NEW COLLECTIVE AGREEMENT SIGNED

Croatia Airlines and two representative trade unions signed a new collective agreement. The agreement was concluded after more than two years of collective negotiations between Croatia Airlines and its two representative trade unions representing all groups of employees for a period of five years, unlike the previous ones which had been signed for a maximum of two-year-validity period. It has been said that the new collective agreement is within the framework of real financial capabilities of

the company and that the changes to income tax regulation, which enabled the introduction of new non-taxable income, created additional opportunity for conclusion of the agreement.

BAT

PARTNERSHIP WITH MCLAREN

McLaren Racing has announced a multi-year sponsorship deal with British American Tobacco (BAT) centered around the promotion of BAT's potentially reduced risk products and development of advanced technology and innovation geared towards a new product portfolio. As part of the agreement, BAT will work closely with

McLaren Applied Technologies to collaborate and share technological expertise in batteries, advanced materials and design. BAT’s stated goal is “transforming tobacco,” and the company said it would work to transform the tobacco business with the view of providing consumers with less risky tobacco and nicotine choices.

Last year, A1 Croatia generated 444.5 million euro in revenue which is 1.6% more than in 2017 and the EBITDA of 114.1 million euro (a 4.6% increase) – this telecom company has confirmed. Business results achieved by A1 Croatia were published as part of the financial report of their parent company Telekom Austria Group, and as the report adds, the growth in business results in 2018 was supported by the transformation into a digital company and investments in network, technology, content and internal change (from Vipnet to A1 ). Last year's investments amounted to 87.8 million euro or 3.1% more relative to 2017. A1 underlines that regulatory reductions in frequency utilization fees allowed for additional investments in development and network capacity. The company adds that they have recently tested 5G technology at a speed of 20 Gbit/s in a live network. Revenues from roaming users were somewhat lower last year due to a substantial reduction in wholesale prices, which was not offset by higher traffic, but by the major demand for mobile WiFi routers and higher equipment sales revenue.

Pevec

11% HIGHER SALARIES

Google

SHARP RISE IN COSTS

Google's parent company, Alphabet has logged $39.3 billion in revenue for the fourth quarter of 2018 - an increase of 22 per cent from the same period a year ago. Google's advertising business accounted for $32.6 billion of Alphabet's overall revenue. The company’s revenue and earnings rose more than Reuters analysts expected, which is mostly due to Google's revenue growth, which accounts for 83 percent of the company’s total revenue. Alphabet's traffic and acquisition cost was $7.4 billion, up from $6.5 billion a year ago, while

32

expenses rose to $31 billion compared with $24.6 billion in the same period a year ago. Capital investments also jumped by 64%, to $7.08 billion.

www.diplomacyandcommerce.rs

The Pevec supermarket chain has announced that the minimum net wage in their company will be 5,000 kuna as of January next year. Pevec's top management has fulfilled the promises given the past year and also delivered the increase of the Christmas bonus to 1,500 kuna, provided gifts for children of its employees, and increased the baby bonus which has gone up from 3,300 kuna to 4,000 kuna. Last year, Pevec's retail chain paid dividends to its shareholders for the first time since 2009 when it went bankrupt, in the amount of 80 million kuna or 61 kuna per share.

Siemens

CEE PRESS AWARD 2019

This year, Siemens will reward the best journalistic work on the topic of "The Digital Future of Cities, Industry and Energy". The competition is being conducted in eleven countries of Central and South-Eastern Europe (Slovakia, Romania, Hungary, Bulgaria, Ukraine, Croatia, Slovenia, Montenegro, Serbia and Austria) and Israel. The purpose of the competition is to reward media coverage of the key themes in modern society and to promote exchanges between journalists from across the CEE region. Media workers can participate in the competition by submitting their published papers on "The Digital Future of Cities, Industry and Energy" by March 31, 2019. This includes all textual articles from print and online media, journalist reports, as well as reports broadcasted on electronic media (TV and radio) in the period between 1 August 2018 and 31 March 2019.

Volvo

RECALLS 167,000 NEW CARS

Volvo Cars said it would recall 167,000 of its XC60 model vehicles due to a possible fault with the electric tailgate mechanism. A spokeswoman for the Swedish carmaker, which is owned by China’s Geely, said the voluntary recall was for XC60 cars built in 2018 and 2019. In Croatia, this model retails for around 45,000 euro.

Intesa Sanpaolo

INCOME OF 4.05 BILLION EURO

Mercedes

PROFIT DROPS BY 22%

Daimler's fourth-quarter operating profit fell 22 percent as trade wars and rising costs for developing electric and self-driving cars hit earnings at MercedesBenz cars. Earnings before interest and tax (EBIT) dropped to 2.67 billion euro, the company confirmed. Daimler said the return on sales at its Mercedes cars business fell to 7.3 percent in the fourth quarter from 9.5 percent in the year-earlier period. Mercedes passenger car sales rose 4 percent in the fourth quarter but increased tariffs on vehicles exported from the United States to China and delivery stoppages for individual diesel models hit demand and resulted in weaker prices. For 2019 Mercedes-Benz Cars expects to achieve a return on sales of between 6 percent and 8 percent and a return on sales of between 5 percent and 7 percent for Mercedes Vans, Daimler said.

Intesa Sanpaolo, which owns the second biggest bank in Croatia, PBZ, ended 2018 with the net income of €4.05 billion, the best result since 2007, with pro-forma growth of 6% versus 2017.

In its native country Italy, that has recently fallen into recession, the banking group achieving its plan and the best result since 2007 is a powerful message to investors who are nervously calculating how much the economic downturn will deepen.

Intesa did not feel the slowdown in the economy in the fourth quarter, whereas a combination of slower crediting and falling net interest income of 5.4 percent per annum could make it harder for the

Intesa to make more revenue in 2019.

Analysts believe that the bank was able to withstand a stronger deterioration of market conditions in Italy thanks to by cleaning its portfolio of bad assets and high capitalization.

OTP

BUYS ANOTHER BANK FROM SOCGEN

Societe Generale has agreed to sell its 87.85% majority stake of in Moldovan bank Mobiasbanca Societe Generale to Hungary’s OTP as the French group continues its retreat from parts of emerging Europe while OTP – the region’s largest lender – gradually increases its presence in the region. Mobiasbanca has a 13% market share in Moldova.

33

BUSINESS NEWS

Jadranska Bank

MERGER WITH HPB

Hrvatska PoĹĄtanska Bank (HPB) and Jadranska Bank (JABA) have entered into a merger agreement, which stipulates that the merger will take place by 1 April this year. Given that HPB is the only shareholder of Jadranska Bank, the merger will be carried out in accordance with the Companies Act without the increase of share capital and exchange of shares. Thus, the shares of Jadranska Bank held by HPB will cease to exist on the date that the merger is registered with a court, while all assets, liabilities and rights of Jadranska Bank will be transferred to HPB following the merger.

The Court of Justice of the European Union

EU RULES AGAINST CROATIAN LAW ON RETROACTIVE INVALIDATION OF LOANS

The Court of Justice of the European Union ruled that Croatia's legislation on retroactive invalidation of loans concluded with foreign lenders not authorised to provide credit services in that Member State is against the EU acquis if the legislation is not applied also on Croatian lenders. The Luxembourg-based court concludes "that EU law precludes legislation of a Member State under which credit agreements and other legal acts based on those agreements concluded with a lender which is estab-

lished in a Member State other than that of the recipient of the service and which does not hold all the necessary authorisations, issued by the competent authorities of the first Member State, are invalid, retroactively, from the date on which they were concluded."

Societe Generale

BIGGER PROFIT IN 2018

European Parliament

CHEAPER CROSS-BORDER MONEY TRANSFERS FOR CROATIAN CITIZENS WITHIN EU

The European Parliament adopted new rules that reduce charges for cross-border money transfers in euro within the EU, eliminating discrimination against member states that are not in the eurozone, which means that fees will be reduced for Croatian consumers too.

Consumers in Croatia on average pay 8.23 euro in transaction fees for every 100 euro in cross-border transactions while Bulgarian consumers on average pay 20 euro for these transactions, a study conducted by the European Commission in 2017 shows. The lowest cross-border transaction fees were paid by Polish consumers (2 euro). The adopted rules will be the same throughout the EU and will be payable in local currency. An additional advantage of this approach is to boost cross-border shopping, reducing costs for companies and will result in savings of almost 1 billion euro a year.

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Societe Generale, which withdrew from Croatia a year ago, recorded an increased profit in 2018 compared to 2017, but cut its expectations for profit in 2020. The Group generated the profit of

EUR 3.86 billion in 2018, an increase of 37 percent compared to the profit in 2017 (EUR 2.8 billion). Banks' shares have fallen by about 1 percent after the opening of stock markets on Thursday in Europe.

Google

INVESTS $13 BILLION IN NEW DEVELOPMENT

Google will spend more than $13 billion on data centres and offices in the United States this year. These new investments will give us the capacity to hire tens of thousands of employees, and enable the creation of more than 10,000 new construction jobs in Nebraska, Nevada, Ohio, Texas, Oklahoma, South Carolina and Virginia," Google CEO Sundar Pichai said in a blog post. Google will continue to expand its presence in Chicago and Washington, and the company's workforce would double in Virginia and Georgia, according to the blog post. The company said it had hired more than 10,000 people in the United States and made over $9 billion in investments in the last year. For the fourth

quarter, Google reported $31.07 billion in costs and expenses, up 26 percent from last year. Capital expenditure rose 64 percent to $7.08 billion. Last week, Reuters reported Amazon.com Inc was exploring alternatives to locate part of its new headquarters in New York in case the plan fails due to local opposition.

Crowe Global

Bled Slovenia

ANNUAL REAL ESTATE MARKET GROWTH OF 30%

RECORD NETWORK GROWTH

Otmar Zorn, one of the wealthiest people in Slovenia, was the biggest purchaser of real estate in Bled last year. He already owns the Jelovica Hotel. While the real estate market in Bled in 2017 was mainly marked by the sale of hotels owned by Sportina, the past year was all about residential real estate. Many apartments and houses were sold not only in the centre of Bled, but also in the surrounding places, says Finance.

IMF

CALLS FOR IMPROVEMENT OF BUSINESS CLIMATE IN CROATIA

The International Monetary Fund's (IMF) executive directors have established that in 2018 Croatia continued its fourth year of positive economic growth as well as its fiscal consolidation albeit at a slower rate, and they also call for improving the business climate in Croatia and cost-cutting in the public enterprise sector, as well as improvements in bankruptcy legislation. After the 2.7% growth in 2018, Croatia's economy is likely to grow by 2.6% in 2019, according to the IMF estimates.

Crowe Global (Crowe) has released its latest financial report which stipulates revenue of $4.3 billion (an increase of 14%) in 2018. This jump is the result of an extraordinary year for the eighth largest global accounting network, which has gone through a major strategic consolidation during the aforementioned period.

The results show strong performance at all levels, backed by impressive effectiveness in the United States, Germany, the United Kingdom and Singapore, as well as the targeted acquisition of key member companies. The figures conclude a brilliant year for David Mellor, the company's new CEO, who came to this position from being Executive Director of Crowe UK.

HEP Opskrba

SUCCESSFULLY INTRODUCES E-INVOICE FOR ENTREPRENEURS

Raiffeisenbank Austria

GROWTH OF CASH LOANS

At the end of December 2018, the total amount of granted retail loans reached HRK 124.4 billion, which is HRK 5.5 billion or 4.6 percent more than in the end of 2017, with cash loans increasing by 11 percent to HRK 47.7 billion. Loans also rose on a monthly basis; compared to November they increased by HRK 42.7 million. Loans granted in kunas continued with the double-digit annual growth rates, and in December, rose by 12.6 percent.

HEP Opskrba says that security of electricity supply, ease of concluding contracts, and use of services are crucial for long-term customer satisfaction, which makes it possible for customers entrepreneurs to receive invoices in electronic form to designated email addresses. According to national laws and regulations, an invoice issued and received in electronic form is considered valid, provided that there is a written consent of the recipient to accept such invoices.

35

MY TRAVEL STORY

Text: OLIVER SAROV

Fascinating Country That Will Change Your Perspective

Valley of the Stars - Queshm Island

Seeing images of Iran’s magnificent mosques, Persian gardens, and the former Shah’s extraordinary palaces on television and knowing first-hand about the genuine hospitality and warmth of the Iranian people, visiting Iran was something I knew I wanted to experience ‘Persia’, ‘Iran’, ‘Isfahan’, ‘Shiraz’; names that conjure up the promise of endless desert landscapes, lush green hills, sapphire colored mosques, succulent food and the most fragrant rice you will ever taste. Names that carry with them millennia of culture, history and civilization. Yet, Iran, at least in the past few decades, also conjures up a range of negative connotations; images of angry mobs, news reports of human rights abuses and sharia law.

This article will certainly not be an analysis of the political history or present of Iran, the geopolitics of the Middle East, or an essay on human rights. What it will be is the subjective impression of a traveler, visiting a country and experiencing a culture he has been fascinated with since he can remember.

Growing up in the Netherlands exposed me to different cultures at a

very young age. Apart from the mix of Serbian and Dutch culture I call my own, spending four years in a refugee center and growing up in a multicultural society there were also whiffs, pinches and dabs of Turkish, Armenian, Russian, Somali, Arabic, African, Filipino and others. None, however, left a bigger impression on me than Persian culture.

In fact, lubia polow, an Iranian

VISITING IRAN WAS SOMETHING I KNEW I WANTED TO EXPERIENCE, WHILE AT THE SAME TIME BEING SOMETHING, I THOUGHT WAS NOT GOING TO HAPPEN ANY TIME SOON rice dish and tahdiq; the crispy rice that is created at the bottom of the pot during the cooking process, are among my all-time favorite foods. What’s more, I consider them a childhood comfort food – odd for a Dutch-Serbian

Traditional Iranian Food which strongy features rice, saffron, fruit and marinated lamb

36

guy, who grew up in Limburg…

Seeing images of Iran’s magnificent mosques, Persian gardens, and the former Shah’s extraordinary palaces on television and knowing first-hand about the genuine hospitality and warmth of the Iranian people, visiting Iran was something I knew I wanted to experience, while at the same time being something I thought was not

www.diplomacyandcommerce.rs

going to happen any time soon.

Luckily, it did. And it was everything I expected and more.

One of the most asked questions when I told friends where I was going was ‘’is it safe?’’ and ‘’why are you going to Iran’’? The

first question has a very simple answer; yes – very. If you feel safe in Serbia, you will feel safe in Iran as a tourist, if not more so (traffic excluded!). Walking through any of the cities busy streets felt like taking a stroll through Dorćol, with the addition of friendly locals occasionally approaching you to bid you a ‘’whereyoufrom’’ and a sincere ‘’welcome to Iran’’ with a smile before continuing minding their own business. Iranians are a friendly, proud and open people with very distinct values, culture and mannerisms from their neighbors in the Middle East.

As to why? Imagine a modern, safe and clean country with efficient and functional public transportation, incredibly friendly people, delicious food, out-ofworldly landscapes, majestic structures and the heritage of one of the world’s most ancient civilizations. Add to that a tranquil

Naqsh-e Rustam (Necropolis), where four of the most well known Traditional Iranian accommodation, featuring an inner court Persian Emperors are buried in tombs carved into the mountain yard and a water feature

Nasir al-Molk Mosque (also known as the Pink Mosque) in Shiraz

vibe that is created by local Iranian families having tea and snacks in the shade of one of the many green spaces dotted around Iran’s cities, or people enjoying a watermelon smoothie while sitting on a carpet in one of the many trendy bars, located in a shaded courtyard centered around a water feature cooling people down from the desert heat. Sound interesting?

Now add to that the fact that you will be one of the relatively few foreign tourists (but certainly not the only), due to, well, a lot of people asking the two questions I mentioned before. That means that you’ll hardly ever stand in a line for a museum and be able to see many of the majestic sites as they should be seen – serene and quiet, without hordes of sandal-and-sock tourists that have become almost inescapable in modern travelling!

A relatively short five-hour flight takes you from Belgrade’s Nikola Tesla Airport to Tehran’s Imam Khomeini Airport via Istanbul. Our trip took us to Teheran, Yazd, and the ruins of Persepolis, Shiraz, Isfahan and two islands in the Persian Gulf called Qeshm and Hormuz in thirteen days.

Teheran’s hipster restaurants, Yazd’s adobe old town dotted with wind catchers and Zoroastrian towers of silence, Persepolis’s ancient grandeur, Shiraz’s intricate and breathtaking mosques, Isfahan’s relaxed vibe and bustling Christian (Armenian) quarter and the Persian Gulf’s desert islands all left an impression so awe-inspiring, exotic and yet so familiar that it is difficult to put into words.

Iran is home to one of the world's oldest continuous major civilizations and has a history spanning more than five millennia, during most of which it was known as the Persian Empire – a state that stretched from the Balkans to the Indus Valley and comprised nearly half the world’s population. That does not escape you while you are there. The country breaths history

Hormuz Island, known for its many different types and colours of sand

and being able to see the tombs of men like Cyrus the Great, an emperor mentioned in the Old Testament, Xerxes I, who fought the Spartans at the battle of Thermopylae and the ruins of Persepolis, a city infamously raised to the ground by Alexander the Great, among countless other historical sites makes visiting Iran a must for anyone interested in human history, rivaling and perhaps exceeding the likes of Italy and Greece.

Due to its history and geographical position at the center of the Silk Road, Iran has been as influenced by other cultures as it has influenced others. Its’ ethnic make-up of Persians, Turkmen, Arabs, Turks, Jews, Armenians and

Iranian desert landscape

other ethnicities make Iran a rich tapestry of languages, customs, foods and traditions.

We, for the most part, visited Central Iran, the epicenter and cradle of Persian culture. To me, a soft-spoken, melodic language and a sophistication and attention to detail that you can see, taste and smell characterize Persian culture.

Saffron infused…well…everything, rose petal tea, intricate tilework, tapestries and glass inlays and a distinct love for poetry and relaxation coupled with ubiquitous water features, fountains and gardens, combined with an almost inherent elegance that Persians carry themselves with, particularly the women, all come together to

Typical Persian geometric mosque dome clad with inlayed tiles

TEHERAN’S HIPSTER RESTAURANTS AND QESHM’S VALLEY OF THE STARS LEFT AN IMPRESSION SO AWE-INSPIRING, EXOTIC AND YET SO FAMILIAR THAT IT IS DIFFICULT TO PUT INTO WORDS

A Zoroastrian ''Tower of Silence'', which is where Zoroastrian would traditionally send their dead to the afterlife

give you an almost overwhelming feeling of experiencing an ancient culture’s hedonism and sophisticated way of enjoying of life.

In somewhat of a contrast to that gentle sophistication are the islands of Qeshm and Hormuz.

Desert islands in the Persian Gulf the oppressive heat of which hits you like a ton of bricks on exiting the airplane. The rough and rugged desert terrain, different smells and mostly Arabic population is in quite a contrast to the gentle water features, gardens and soft-spoken Persian vibe in central Iran. There is definitely no poetry and rose water tea there.

Once you are past the first impression of being away from your shaded inner courtyard, fountains and rosepettals however and your body acclimatizes to the oppressing heat, the friendliness of the locals and riding in the back of the ubiquitous Toyota pick-up trucks through the fantastical desert landscapes quickly exchanges a sense of discomfort for a sense of amazement.

Qeshm’s ‘’Valley of the Stars’’, a mesmerizing maze of canyons the locals say were created when the stars fell from the sky, and Hormuz island, also known as the ‘’Rainbow Island’’ for its seventy-two colors of sand, are fascinating micro cosmos that perfectly depict Iran’s diversity and magic.

Thirteen days in Iran not only fulfilled a life-long desire; it also reaffirmed the fact that a country’s culture and people are separate matters from its politics, a matter the people of the Balkans are painfully familiar with. In fact, if we were only to travel to countries the politics of which we agreed with, we would be hard pressed to find destinations.

Iran is a fascinating country that will change your perspective on travelling into the ‘’unknown’’ and on the ability to feel completely at home in a culture wildly different and yet incredibly similar to your own!

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COLUMN

FUNDRAISING SKILLS AS A FACTOR OF POLITICAL SUCCESS

In order to win on the political battlefield it takes a myriad of skills, with fundraising skills now days emerging to be the most prominent among them. It encompasses certain speech techniques and interpersonal skills, well established reputation and assertiveness JAGODA POROPAT DARRER Business Communications Professional

While writing this lines the partial federal government shutdown in US is on its 33rd day. As known, Trump first forced the government into a partial shutdown in December 2018 after he suddenly changed his mind on a funding bill that did not include funds for the wall along the US – Mexico border. As Democrats didn’t yield Trump decided to fundraise the money for the wall. He addressed the nation over border security. “I'm addressing the nation tonight at 9 PM EST,” wrote Trump. “Get on the Official Secure the Border list my team sends me afterwards. Donate NOW.” Analytics from the URL-shortener Bit.ly shows 114,000 people have clicked on the pre-address link, 60 000 within the first two hours after the message began going out, writes thedailybeasts.com. A second wave of messages followed after the speech. “I just addressed the nation on Border Security. Now I need you to stand with me. Donate to the Official Secure The Border Fund NOW.” That link has garnered another 102,000 clicks, 67 000 of them in the first two hours. “There’s no way to know how many people actually contributed, or how much they gave, but counting each click as a $25 donation yields a back-of-theenvelope valuation of $5 million dollars for a nine-minute speech aired by every national network for free.” President Trump’s speech certainly hasn’t make Democrats change their minds, but the presidential address has been a great fundraising success.

Fundraising skills of House Speaker Nancy Pelosi, Trump’s fierce opponent, hasn’t been

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nothing less. Au contraire! A huge reason she maintains her iron grip in politics is her ability to raise lots of money. According to miamiherald.com, she’s raised more than $500 million for Democrats since entering the party leadership in the early 2000s, including $141.5 million in the 2015-2016 cycle. She explains it “I'm a master legislator, I am a strategic, politically astute leader, my leadership is recognized by many around the country, and that is why I'm able to attract the support that I do,

campaigns, charitable organizations, community organizations, entrepreneurship, and even scientific research, explains Alyson Doyle (2018). It's natural that people who work in fundraising need to have good written and verbal communication skills.

It's difficult to convince people to contribute their money to a cause without an excellent pitch.

Fundraiser experts should be able to write letters, edit, proofread and write grant proposals and press releases. They'll also need

YOU CAN THINK OF THIS FUNDRAISING APPROACH AS A FUNNEL, AS WRITES FUNDABLE.COM, WITH YOU AND YOUR PITCH AT THE WIDE END AND YOUR AUDIENCE OF INVESTORS AT THE CLOSED END. FAIL TO POINT THAT FUNNEL AT THE RIGHT INVESTOR OR FIRM AT THE RIGHT TIME, AND THAT’S YOUR TIME AND MONEY LOST which is essential to our election, sad to say.” But it’s her fundraising skills that are regarded as a key political asset. The daughter and sister of former Baltimore mayors, she rose quickly through Democratic ranks in the 1980s as California party chairman, then finance chair for the party’s Senate campaign committee.

Effective fundraising is a critical part of successful political

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to be able to effectively facilitate discussions, inspire confidence and trust in face to face communication, and effectively engage in public speaking. Individuals who work as fundraisers should have a wide range of interpersonal skills.

They should practice leadership and assertiveness, as well as be able to build relationships with donors motivating and training volunteers. It is crucial to know

how to effectively recognize prospective donors and be persuasive in their dealings with them.

Daniel J. Jenuwine, senior consultant at Richner&Richner emphasizes three main pillars of fundraising. He mentions reciprocity, relationship, and reputation. You can think of this fundraising approach as a funnel, as writes fundable.com, with you and your pitch at the wide end and your audience of investors at the closed end. Fail to point that funnel at the right investor or firm at the right time, and that’s your time and money lost.

Crowdfunding platforms, on the other hand, turns that funnels on-end. By providing a single platform to build, showcase, and share your pitch resources, this approach dramatically streamlines the traditional model. Traditionally, it will take months sifting through your personal network, vetting potential investors, and spending your own time and money to get in front of them. With crowdfunding, it’s much easier to get the opportunity in front of more interested parties and give them more ways to help grow your business.

It is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure. Although, text messages are emerging as the key fundraising medium in the US run up to 2020, states Kevin Poulsen. At an event in October, Trump campaign manager Brad Parscale reportedly held up his cellphone and declared “This is how Donald Trump stays president for four more years.” Who wants to bet on it?

CORPORATE

(K)Not Just Any Tie Croata, a luxurious Croatian brand distinguished by the assortment and quality of its ties, is a muchloved destination of modern dandies. A dandy, a man who radiates beauty to the world around him, and knows exactly what he wants, chooses none other than a Croata tie to complete his look

fashion as a mode of self-expression, and even an extension of their personality. The modern dandy understands the value of quality clothes and, just like his predecessors, appreciates the smallest details like interesting stitches and perfectly coordinated colours. A dandy knows that a single accentuated detail may elevate the entire appearance to the level of a work of art.

It is precisely for that reason

ALEN KOLBAS IS A MAN WHO ATTRACTS ATTENTION WITH HIS SOPHISTICATED FASHION STYLE, SO IT DOES NOT COME AS A SURPRISE THAT THIS CROATIAN COUNTERPART OF JUSTIN O'SHEA HAS APPEARED IN THE ADVERTISING CAMPAIGN OF CROATA, A LUXURY CROATIAN BRAND

Kolbas, a tall and elegant man, is neither a trendsetter, nor an influencer. In fact, his lifestyle is entirely different from the modern fashion and social trends. The only thing that connects him with fashion is the fact that every day, when he goes to work as a Flight Controller, he wears a fancy piece of clothing that fits the timeless dandy look he so devotedly maintains! Sometimes, it is a tailored suit with unusually coordinated shirts and ties, which he often complements with a detail such as socks with interesting patterns.

Even the beard of this slightly grey-haired gentleman blends well with his sophisticated, suave appearance, while his tattoos give him a bad boy vibe.

He does not have to be in the spotlight. He wears fashionable clothes because he truly enjoys wearing them. He maintains a certain lifestyle and appreciates quality materials and interesting designs, so it does not come as a surprise that this Croatian counterpart of Justin O'Shea has appeared in the advertising campaign of Croata, a luxury Croatian brand.

His dandy-like lifestyle has given a new charm to the traditional feel for fancy details, precisely what Croata is all about, and this modern gentleman’s story has also contributed to the modern revival of wicker motives on bow ties, ties and cufflinks; important details of a man's aesthetic appearance.

Photos: KOLBAS

As a purely decorative fashion accessory, a tie has always indicated a sense of personal style.

It will not warm you up or cool you down, nor will it make your life easier. Still, ever since Croatian soldiers spread the tradition of wearing a tie throughout Europe in the 17th century, ties have been gladly and readily embraced by men who care about their appearance. Although modern ties are very different from the original neckerchiefs, they are still a must-have in the wardrobe of any man with style.

It is therefore not surprising that Beau Brummell, a British man, was declared “the dandy leader” at the end of the 18th century.

Dandies were gentlemen who devoted particular attention to aesthetics, taking careful care of themselves and making sure that they are always well-groomed and dressed up. And they simply loved ties! Brummell allegedly spent five hours a day taking care of himself, grooming and dressing up, thus proving that style is not the privilege of the upper classes. Numerous artists soon followed suit, from Oscar Wilde and Charles Baudelaire in the 19th to David Bowie, in the 20th century.

There are dandies today as well.

Modern dandies have embraced

that a dandy will devote careful attention to selecting the very detail that will make them stand out in the crowd, while breaking the mold and demonstrating that they are fashion experts – a detail such as a tie. And, to find inspiration, it is sometimes best to go back to the very source. It is therefore best to look for ties in their country of origin – Croatia. Croata, a luxurious Croatian brand distinguished by the wide assortment and quality of its ties, is a much-loved destination for modern dandies, since a dandy, a man who radiates beauty to the world around him, who is also self-confident, content and knows exactly what he wants, chooses none other than a Croata tie to complete his look.

One of the Most Interestingly Dressed Croats Wears a Croata He is a man who attracts attention with his sophisticated fashion style wherever he goes.

However, he can rarely be seen at trendy venues, and even less in the town centre on a Saturday morning, which is the place to be if you want to get noticed. Alen

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INTERVIEW

We Have Plenty of Courage We want to be a museum that is a meeting place for people, that will be available to different user categories and that will be the place that visitors really want to see. We have shown determination and a strong desire to work, and now, all we need is luck and support because fighting to be given EU funds is really tough

GORANKA HORJAN Ethnographic Museum

When she was appointed the director of the Ethnographic Museum in 2015, Goranka Horjan said that it would be challenging to use the Museum's huge, albeit untapped potential, especially in the modern day and age which was not too inclined towards heritage institutions.

In the three years since your appointment, do you think that you have found the key to making the museum shine with everything it has?

— I think I have, but big challenges remain. After several decades of negligence, I found the Museum in a dilapidated state, with the entire infrastructure in poor condition – from the leaking roof containing asbestos, and rainwater pouring into the basements where museum depots are located to the façade, which parts were falling off with the risk of hurting the passers-by, the outdated layout, and the overcrowded storage rooms with museum exhibits. Plus, no basic standards were implemented in the museum, its collection was partially processed and many other things.

In short, it was a situation ripe for crisis management that had to be instigated as soon as possible, on top of having to do a cost evaluation of this long-term investment and finding financial sources in

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the long run. We hired the Croatian Conservation Institute since we had to also carry out conservation research since the building that houses the Museum is a masterpiece of the Secession architecture, designed by Vjekoslav Bastl, whose mentor was Otto Wagner. The City of Zagreb agreed to finance the works that are still ongoing and we expect the building's façade to regain its old, splendid appearance by the end of this summer.

This year, the Museum celebrates its centenary. Which people and events would you single out as crucial in its history?

ological collection of the Croatian National Museum, significant number of objects came from the Museum of Arts and Crafts, the Croatian School Museum, and the Chamber of Trades and Crafts Museum. The Ethnographic Museum collection also comprises rural and home-made craft products from the S. Berger Collection, as the government bought this collection from the industrialist Salamon Berger, who also became the first director of the newly founded museum. In the Museum, you can see his portrait painted by Vlaho Bukovac, while Berger himself is remembered as an intriguing combination of an industrialist, a heritage connoisseur, a collector and a skilful merchant whose products were exhibited at various exhibitions across the world, including overseas countries.

Over the century-long history,

WE HAVE FANTASTIC COLLECTIONS THAT PROVIDE AN EXCELLENT INSIGHT NOT ONLY IN THE TRADITIONAL, EVERYDAY LIFE OF ALL PARTS OF CROATIA, BUT WE ALSO STORE VERY VALUABLE ITEMS FROM NEIGHBOURING COUNTRIES AND INTERESTING EXHIBITS FROM THE CULTURES AROUND THE WORLD — Although the beginning of the Ethnographic Museum is tied to the establishment of the National Museum, which was opened in 1846 in Zagreb, the Museum was officially founded at the orders of the Count of Croatia and Slavonia from 22nd October 1919, as an independent part of the National Museum, and as such, had several collections of different provenances under its roof. Apart from the ethnographic items of arche-

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many renowned museum workers enriched the Museum with their research, collecting exhibits and publishing specialist and scientific papers. Vladimir Tkalčić, who was the first curator of the Museum, played the key role in setting the guidelines for a museological approach to processing the exhibits and systematizing the collections. In the first half of the 20th century, along with Tkalčić, B. Širola and M. Gavazzi also greatly contributed to the Museum,

while Museum directors Marijana Gušić and Jelka Radauš Ribarić did that after the Second World War, thanks to their exceptional work.

You are an expert at European museology. How appealing are the museums like the one you helm and their exhibits to visitors and how do they react to tradition?

— The attitude towards ethnographic museums has changed fairly at the turn of the millennium. In the 1980s, the prominent museologist and founder of the European Museum of the Year, Kenneth Hudson, was extremely critical of ethnographic museums, saying that exhibiting attractive objects outside the context and social ties only superficially covers the topic (Hudson, 1987). Ethnologists were quite hurt by his words - "ethnographic museums collect widely, but don't reach deep."

Nevertheless, in the 21st century, the museums that present world cultures are the ones that have been winning international awards (such as the Museum of the World Cultures in Cologne, the Museum of the Mediterranean Cultures in Marseilles and the Ethnographic Museum in Geneva).

Perhaps the reasons for a better understanding of ethnographic museums are found in today's global community in which multiculturalism is an important backbone that contributes to a better understanding of other cultures and other communities.

The aspect of intangible heritage, that connects objects and people in an emotional way, is exceptionally important for Croatian traditional culture. It helps us to understand that the museum not only exhibits objects but also com-

municates to us their importance through the work of other people.

For museum workers that is a very sensitive topic because what we are actually doing is collecting things from someone else's life and transforming them into heritage, i.e. something worth keeping that becomes a national treasure.

Today, we live in a different world which we, in our project, call 'hyperconnected', so I want to see the younger generations of curators serving as activators of change; people who are going to infuse new energy into the museum space and help us to transition into a new dimension of interpretation of the heritage. How we will cultivate these changes in our museum depends on the amount of courage that we invest in realizing our Museum's future vision through its mission.

How many foreign tourists have picked your museum as a place for learning about this part of the world, its culture and other non-European collections that you have?

— I will give you a very brief answer to this question - not enough.

One reason is certainly our neglected space and obsolete permanent exhibition, but I also think that the things are not put together properly, so to speak, in the tourist promotion of the Museum. Capped employment in the museum sector, which needs marketing, public relations, digital communication and other new staff because they are important for bringing the visitors in, is a great handicap for us.

I recently read an article in which LinkedIn listed several basic soft and hard skills required by modern employers and regretted that we do not have such jobs in our museum job classification.

Another flaw is that museums are not adequately included in tourist routes, sightseeing tours and offers.

I WANT TO SEE THE YOUNGER GENERATIONS OF CURATORS SERVING AS ACTIVATORS OF CHANGE; PEOPLE WHO ARE GOING TO INFUSE NEW ENERGY INTO THE MUSEUM SPACE AND HELP US TO TRANSITION INTO A NEW DIMENSION OF INTERPRETATION OF THE HERITAGE "Restored Heritage for Smart and Sustainable Development in the Hyperconnected World". The project entails drafting the project documentation for the restoration of the monument complex consisting of three buildings with an inner courtyard and auxiliary premises. The total amount granted from the European Structural and Investment Funds for drafting the said documents was HRK 6,094,300.00, that is disbursed from the operational programme 'Competitiveness and Cohesion'.

80% of that amount is co-financed and 20% is provided by the applicant and the partner.

The project entails drafting the complete project documentation (concept, main and implementation project) for the renovation of the entire infrastructure in two buildings: the building of the Ethnographic Museum and the

auxiliary museum building in 9, Kačićeva Street. The design documentation is completed and we are ready for the implementation phase. In order to secure HRK 41 million for restoring the Museum's storage, we submitted our application at a tender for ITU brownfield investments. The value of the applications always exceeds the available funds several times over, but we are hoping for a positive result.

Can you tell us about the challenges you have been facing in implementing the "Restored Heritage for Sustainable and Smart Development in the Hyperconnected World" project, thanks to which the museum looks better in 2019?

— If you have never participated in the implementation of a major infrastructure project which includes a cultural monument in a protected

KNOWN FOR ATTRACTIVE EXHIBITIONS

Since the very beginning of your appointment, you had to deal with scarce funds. How much did the EU funds help to realize your ideas?

— We couldn't have even started the comprehensive restoration of the Museum without EU funds. In November 2016, at the Croatian Chamber of Economy, which is our partner in the implementation of the project, we signed a contract with the Ministry of Regional Development and EU funds stipulating cofinancing of the project

The museum is recognized for its attractive exhibitions and projects, many of which have been awarded and internationally recognized. The Museum is also engaged in the community, and it promotes a multicultural approach and programmes for vulnerable groups. We participate in two projects co-financed by the EU Social Fund called 'Effective Human Potentials'. The first one is called 'Knjige Naših Ulica' and the second '#Za BITI 54+ Na Zagorkinom Putu' which both aim at increasing the involvement and employability of senior women.

city core, you can hardly imagine what a traumatic experience that is.

Under the auspices of the planned integrated programme in the implementation phase, we want to renovate and equip the Ethnographic Museum Zagreb building and part of the building of the Croatian Chamber of Economy in order to make these valuable cultural heritage buildings, located in the very centre of the City of Zagreb, even more valorized in tourist sense. Project partners have teamed up to create a spatial, content-rich and functional tourist complex in the city centre based on ethnographic cultural heritage and economy. The existing facilities of both partners will be refurbished and equipped with modern multimedia equipment to attract visitors and present cultural, tourist, educational and entertainment content in an innovative and interactive way while creating an added offer of products and services intended for visitors and users.

In order to make these two buildings, which share a common yard, a unique spatial unit, the joint yard – atrium will be upgraded and covered, namely, we are going to build a glass interpolation which will have the exhibition, cultural and heritage-interpretative purposes.

Which exhibitions would you like to single out and recommend to our readers to visit?

— They should definitely visit the international guest exhibition we opened on February 7th called RED ROOSTER - BLACK HEN, which showcases fertility cults and symbols and which is staged in cooperation with the Museum of Macedonia and the Archaeological Museum in Skopje.

The Hat Down exhibition marks the 100th anniversary of the Ethnographic Museum in Zagreb. The very first items in the Museum's collection were actually women's hats, so through telling a story about head coverings, we are also telling a story about the Museum's history. The exhibition shows head coverings from different cultures not only from the past, but also contemporary ones, including the type and material from which the head coverings were made, their shape, and the way they were made and decorated, which provide us with a lot of information for easier understanding of the cultural, aesthetic, economic and political circumstances of a certain period.

This exhibition, which opens in May, is definitely a must-see!

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CULTURE NEWS

Treasury of Zagreb Cathedral as New Tourist Attraction Approximately a million peole visit the Zagreb Cathedral annually, but barely any of them manage to see its rich treasury due to the fact that the space is not adapted for visits by large groups. However, the news broke recently that, after ten centuries, the treasury will be moved to the Archbishop's Courts. Among the golden chalices, relics, and historical documents, it is the eight-century-old old sarcophagus with the mummy of a two-year-old child - the sacrifice of King Herod - that attracts the biggest attention – says Sister Lina, the long-standing treasurer. The Treasury also keeps the most valuable book in the Croatian history – Misal by Juraj od Topuskog. The book is invaluable in terms of its content and the priceless workmanship with which it was made, and has been kept at the Treasury's desk for centuries. The Treasury also has a silver hand that holds a relic of Saint Leopold Mandić, the gift from the Pope John Paul II, when he visited Croatia in 1994.

Renovation of St. Duje Belfry After 110 Years One of the symbols of Split, the bell tower of St. Duje, will be restored. The last time the belfry was renovated was 110 years ago. Nevertheless, one of the greatest city attractions, the view from the top of the bell tower, will still be available to tourists to enjoy. The restoration will last three years, and during it, an alternative way to walk to the top of the belfry will be available. The project is funded by the Splitsko-Makarska Archdiocese, Kaptol and the parish, with the preparatory renovation works estimated at a million kuna. During the last restoration, 110 years ago, the process lasted 23 years.

Tomb With 50 Mummies Discovered Near Cairo A pharaonic tomb containing 50 mummies has been discovered by Egyptian archaeologists. The mummies, 12 of which were children, were found inside four nine-metre deep burial chambers in the desert province of Minya, south of Cairo. The chambers, which were cut out of rock, belonged to a middle-class family who probably lived during the Ptolemaic period (305-30BC). Their identities are still unknown, but the mummification method suggests they held important or prestigious positions. Mostafa Waziri, secretary-general of the Supreme Council of Antiquities, said the team who made the discovery at the Tuna el-Gebel archaeological site had not found names written in hieroglyphics.

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Large Austrian Fortress Discovered Near Knin The 19th century Austrian fortress in Vrbnik, a little town in Šibenik-Knin County, was discovered by Sibenik conservators Ivo Glavaš and Marko Sinobad after being informed of its existence by a professor from the Catholic University of Zagreb, Hrvoje Kekez, who, while researching about the Knin fortress in the Vienna State Archives, found the blueprints of the fortress. The Conservation Department in Šibenik says that, without any doubt, this is the most important historical and archaeological discovery of a defense system from the new era in Croatia's history. The Austrian Army buit the fortress in Vrbnik probably in the first half of the 19th century with the view of demilitarization of Knin in 1875, after which it was never mentioned again. It was built to protect the southern access to Knin. The fortress is clearly visible on the Austrian topographic map from the middle of the 19th century.

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