SERBIA DAILY No63

W Daily e-newspaper

• N° 63 • Belgrade, July 26, 2016

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WESTERN BALKANS e-MEDIA GROUP

Serbian Citizens Support EU Membership

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According to a survey which will be presented in full end of July, more than half of Serbian citizens support EU integration

ore than half of Serbian citizens - 53 percent - believe Serbia should continue its EU integration even after the UK's departure from the Union, the Blic daily reported, quoting the results of a survey by the Institute for European Affairs.

The survey, conducted in the first half of July, will be presented in its entirety on July 28.

The survey results indicate that, in the wake of the British EU referendum, Serbian citizens are more supportive of Germany's EU policy than they are of the UK's.

Half of the citizens believe that the economic situation is better in the EU, with as many convinced that respect for human rights and freedoms is on a higher level in the EU. Also, 49 percent of survey participants believe the Russian societal model suits Serbian society.

Only 9.8 percent of young people aged 18 to 29 backed Serbia's NATO membership, while 13.2 percent of participants aged over 60 did the same.

Eighty percent of participants said Kosovo's independence should never

Aleksandar Vucic, Prime Minister: I will try to form government quickly, if I don't succeed, I'm not ruling out possibility that someone else will form it. We have problems, this is not a whim. There are things I can't talk about

be recognized even if that was a condition for EU membership.

The results also showed that 29 percent of all participants backed recognizing the Crimea as a part of Russia, with 59 percent of respondents aged 18 to 29 supporting the move.

At the same time, Vecernje Novosti newspaper carry on an interview with Frederick William Engdahl, an American German historian, economic researcher, and freelance journalist, who said: "I am convinced that we will be eyewitnesses to the disintegration of the EU as a political creation. What will follow is

Yossef Levy, Israeli Ambassador: Israel maintains the position of non-recognition of the unilaterally proclaimed independence of Kosovo, in accordance with Israeli positions that were presented to President Tomislav Nikolic

THE liberation of countries from this alliance, for which a project existed in the U.S. as far back as in 1950, with the goal of controlling Europe. Today, the EU is like a monster on behalf of which nameless bureaucrats are deciding on all aspects of our lives, from one minute to the next. Charles de Gaulle had a far better concept - nation-states cooperating, negotiating on common issues, but remaining sovereign in every aspect. Italy is a ripe candidate to leave the EU, as is Hungary, and soon maybe even France if Le Pen gets greater support."

Dusan Kozarev, Office for Kosovo: Only way for Kosovo to cease to exist as protectorate is to include Serbia in its constitution. Serbia already recognized Kosovo as its southern province under UN SC Resolution 1244

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Czech Support for Opening of Chapters Ambassador Hlavsova expressed satisfaction with the constitutional and legal position of the Czech national minority in Serbia

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zech Ambassador Ivana Hlavsova said that Serbia had Prague's full support as regards the opening of chapters in its EU accession talks and becoming an EU member state.

At a meeting with Meho Omerovic, chairman of the Serbian parliamentary Committee on Human and Minority Rights and Gender Equality, she expressed satisfaction with the constitutional and legal position of the Czech national minority in Serbia, the Serbian parliament said in a statement.

She also noted the Czech parliamentary Committee on Petitions would be glad to share with Serbian MPs the experiences gained on the European integration path, which Omerovic said was very important considering that Serbia had opened negotiation chapters 23 and 24 a week ago.

The meeting, also attended by Deputy Ambassador Pavel Koblizka, addressed an initiative for a meeting of the two

parliamentary committees in Belgrade.

Besides the position of the national minorities and exercise of human rights, discussions between the two committees should focus on solving the migrant crisis, Omerovic noted.

Nikolic and Ruch agreed.

Even though it is not an EU member state, Switzerland backs Serbia's efforts to become a full member of the organization, and Serbia has proved it is pursuing a mature policy, Ruch said, adding that Serbia's EU membership would therefore contribute to lasting stability in the entire region, the presidential press office said in a statement.

Nikolic and Levy expressed concern over mass terror attacks in Europe over the past months, while the Israeli ambassador noted that Israel was also interested in a calming of tensions in the Middle East.

Speaking about Serbia-Israel relations, Nikolic and Levy said they were exceptional but that there was still room for improvement of bilateral cooperation.

Serbian Teen Among Wounded in Munich 14-year-old Benet Fatmir Adili is among the wounded during the attack on the Olympia shopping center in Munich, Germany.

An Iranian-German attacker killed nine people and wounded 27 others.

Beta agency is reporting that the boy's parents come from the village of

Markers

BY EMIR SALIHOVIC EDITOR-IN-CHIEF

Arms, not Cars

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Nikolic Meets Ruch and Levy Serbian President Tomislav Nikolic held separate meetings with outgoing Swiss and Israeli Ambassadors Jean-Daniel Ruch and Joseph Levy, highlighting the significance of regional peace and stability.

"Serbia is striving to maintain regional peace and stability in these difficult times, in spite of the fact that, due to their internal political relations, individual countries in the region are not investing sufficient effort to establish lasting stability," Nikolic said.

"We are pursuing a policy aimed at defining us as a part of the European community as much as possible," Nikolic noted.

Peace and stability in Europe and among global powers is a crucial interest of both Serbia and Switzerland,

Daily

Konculj, in the municipality of Bujanovac in southern Serbia.

The agency is quoting local Albanian language media who reported that the boy's cousin Selver Ibrahimi said Adili was a critical condition, and that the entire family was shocked by the tragic event.

n a legendary movie about free divers, Big Blue, in some scenes features a small cozy car Zastava 750, better known as "Fica", driven by Jean Reno who starred in the movie.

This car, whose production started in Yugoslavia in 1955, found its way not only to cinema, but became a sort of symbol not only of post-WWII Yugoslav success, but also of an era, swinging 60s, and along with VW Type 2 ("hippy van") a part of iconography of a new generation in the region and its neighborhood.

However, the factory that was producing it, famous Yugoslav Zastava factory from Kragujevac, just died.

Due to bankruptcy and after its account was blocked for more than 700 days, the factory was finally closed.

Its story is inseparable from the story of the rise and death of Yugoslavia, and the story of the global win of neo-liberal capitalism, where strong, foreign companies occupy markets and resources abroad, while local factories vanish and domestic workforce becomes hired by foreign bosses. So, Fiat in Serbia flowers, while Zastava dies away.

There will be many analyses in time to come on the impact of closure of Zastava on Serbian economy, and even more sentimental reviews of what it meant for Kragujevac region and its citizens, and how, after the death of Yugoslavia, it was sort of natural that one of its prime symbols of glory and success should die too.

Hopefully, there will be also some analyses too on how local government should protect domestic workforce and economy, and resist heartless capitalist globalization which shows no mercy to local circumstances, but focuses only on profit and endless expansion.

But, one Zastava branch will continue manufacturing arms. Their sale of significant number of AK47s to US market was announced recently. In fact, Zastava Arms notes significant progress in past years.

How did we end up in a world where factories die away, but arms production survives and even flourishes?

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PINION

Improving Public Resource Management Reforms are needed at every level of government, from the legislature to the line ministries, to local governments, to state enterprises

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erbia is at an economic and institutional crossroad: it needs to complete key infrastructure and invest in private sector growth and job creation, but the government cannot borrow much more time The sustainable level of public debt is very close and should not be exceeded if the country wants to credibly pursue the EU integration path. Some relief may come through bilateral infrastructure investments and additional capital flows attracted by the prospective EU membership, but the brunt of resources must come from savings in the public sector which presently spends more than half of value added.

The necessary fiscal space has to be created from existing budgetary resources by improving the efficiency and economic usefulness of existing spending, and by saving and eliminating wasteful expenditures. Worldwide experience shows that performance-based budgeting and performance measurement are essential tools for identifying spending priorities and improving the economic usefulness of public expenditures.

It offers enormous benefits for advancing the transparency, accountability and efficiency of public spending. It reduces the scope for political interference and exploitation of public funds for private or partial political interests.

The adoption of this approach has been in the works since 2005. After initial successes progress has been slow due to capacity constraints and loss of political leadership. The political cost of doing nothing has been relatively low despite the explicit legal commitment to complete budget reforms.

After the EU candidacy status this was no longer the case.

The impetus for change has never been stronger.

Performance-based budgeting offers a path Serbia can easily follow to improve growth opportunities, offer prosperity and better quality of living for its citizens, and strengthen its own image. As usual with any new approach there is always potential for fear of the unknown, but measuring the performance of government spending is in prac-

BY DUSAN VUJOVIC CORD

tice all around the world and it is part of a wave of reforms that have been taking hold for more than 20 years. There are important lessons to learn. Serbia has the benefit of learning from what works and what doesn't to create a workable budget framework.

Reforms are needed at every level of government, from the legislature to the line ministries, to local governments, to state enterprises. Changes are needed in the process of budget preparation and review, in the type of information that is collected, in the format of budget presentation, and in the decision making processes that follow.

Coordination of donor efforts and consolidation of financial support should be a priority to achieve the widespread changes that are needed throughout the government. But the success of budget reforms hinges on political will and attitudes of government officials.

The most relevant accountability principle Serbian officials should follow is in improving budget and public sector performance, the essential task that would enable the country to respond to many challenges posed by the extended global economic turmoil.

In short, budget reform rooted in the responsible and accountable behavior of politicians, government officials and all citizens is now needed more than ever to deal with the consequences of the past crises and brace for another major economic slowdowns forecast for future.

Program budgeting can easily identify areas where performance can be improved with existing resources, and where resources can be saved. Most importantly, performance budgeting introduces improved, robust, and tangible accountability mechanisms of all future ministers and elected public officials to: document every dinar of public money spent under their responsibility, realize possible efficiency gains, and achieve stated policy and development objectives.

EU ascension has created a unique window of opportunity to mobilize political will and reignite the implementation of program budgeting in line with earlier legal commitments and prevailing performance budgeting standards in the EU and OECD countries.

If budget reforms are done, things will get better. Or they will get worse in the absence of reforms - the current fiscal situation is not sustainable.

Publisher: WESTERN BALKANS e-MEDIA GROUP z POENTA d.o.o. Sarajevo, Augusta Brauna 3 z Editor - in - Chief: Emir Salihovic z Editors: VLASTIMIR MIJOVIC, AMRA ZIMIC, RASID KRUPALIJA, DANIJELA MRKIC, SANJA LJUBICIC z Director: Amra Zimic z Office Assistant: VERICA GRAOVAC, MUSTAFA BAHTANOVIC, DTP: Bekir Tvrtkovic z Marketing: KAROLINA MIHAJLOVIC z GSM: 00 381 61 2768568, 00 381 11 4086 992, serbiadaily@sbb.rs

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4

Maja Gojkovic Visits Sarajevo

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Serbia is pursuing a policy of peace, stability and reconciliation, Serbian National Assembly Speaker Maja Gojkovic said in Sarajevo

he decision that the first visit by the speaker of the new parliament should be to Bosnia-Herzegovina (BiH) is a testimony to the great importance we attach to the country as one of the key partners in the region, Gojkovic said.

At a meeting with Mladen Bosic and Safet Softic, chairmen of the House of Representatives and the House of the Peoples of the Bosnia and Herzegovina parliament, Gojkovic said she expected top-level meetings to encourage more intense inter-parliamentary cooperation and help the development of overall bilateral relations, an official statement said.

Gojkovic noted the need for mutual support in the European integration process and regional cooperation, experience-sharing in implementing internal reforms and cross-border and regional youth cooperation.

Serbia and the BiH share a common goal and commitment - EU membership, Gojkovic said, welcoming the initialling of an adapted EU-BiH Stabilization and Association Agreement and the opening of Chapters 23 and 24 in Serbia's EU accession talks.

Economic cooperation is a significant segment in Serbia-BiH relations and the possibilities for it are ample, she said.

Bosic said Gojkovic's visit would take relations and mutual understanding to an even higher level, noting that a better future and prosperity were a common interest of all peoples in the region.

Meetings of parliamentary officials are an opportunity to send a message of a wish for stability and good-neighborly

relations, which is a common objective, Softic said.

The members of the Collegium of the BiH parliament urged development of cooperation at parliamentary level in the coming period - in particular in European integration - as well as in the economy and the fight against crime, corruption and terrorism.

The chairman of the BiH Presidency, Bakir Izetbegovic, said Serbia-BiH relations were developing in a positive direction but that there was room to enhance them, noting that "peace and stability are what we owe to our citizens."

Gojkovic had separate meetings with Izetbegovic and the Chairman of the

BiH Council of Ministers Denis Zvizdic.

She noted Serbia and its parliament were ready for further improvement of bilateral relations, good-neighborly cooperation and political dialogue and that meetings and regular contacts could strengthen cooperation in many domains, particularly in European integration, the economy and regional affairs.

Zvizdic highlighted a positive trend in Serbia-BiH relations, in particular in view of mutual support in European integration and economic cooperation, noting that cooperation could be enriched in other fields as well, such as culture, sport and youth cooperation.

Vulin: Vucic Under Pressure Aleksandar Vulin has said that there are "pressures" being exerted on PM-designate Aleksandar Vucic when it comes to the formation of Serbia's new government.

However, Vulin, who is a minister in the caretaker government and leader of the Movement of Socialists, told Serbia's state television RTS that he was "certain" Vucic would withstand this pressure, and be at the helm of a new government, "as demanded by citizens in the election."

According to Vulin, Vucic is a serious politician - and the fact he publicly presented his "dilemmas" means that the pressure on him, on the government, and on Serbia is "truly great - and is certainly coming from powerful countries and people."

"Aleksandar Vucic is not a man who gives

in to pressures," said Vulin and stressed that his party finds "a government led by Vucic acceptable," while one that would be headed by another person "will not be supported in advance, and would not be a government that citizens asked for in the election."

Vulin also noted that the pressure on Vucic is "unquestionably big" and coming from "big countries have their own demands and want to know how those will be met." However, added the minister, "this is not a Serbia which walks into the UN Security Council with a Russian resolution and walks out with a European (EU) one, nor is this that Serbia which promises something to the Europeans without then fulfilling it." ''This is a Serbia that takes care of its

own interests and I am sure the prime minister will withstand the pressure and will lead the Serbian government, as demanded by the citizens, " said Vulin, adding that the delays in putting together a new cabinet are also being influenced by "the events in the world since we have a completely altered geopolitical map of the world."

Serbia, according to him, must adapt its responses to these developments, but not by carrying out anyone's dictate - rather, by adapting to the circumstances and the times.

Vulin also said that "the election was clear, posing the question of 'for or against Vucic'," where citizens "clearly said what they thought about it, and the will of citizens must be respected".

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5

EU the Best Place to Live and Work

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Joksimovic claims that the Serbian government will not feed citizens' expectations based on unrealistic grounds, but the steps in the negotiations will be based on the concrete results

inister without portfolio responsible for European integration Jadranka Joksimovic stated that the EU accession policy will remain a priority even after the formation of a new government, noting that it is an integral part of internal development policy of Serbia.

Joksimovic attended an informal meeting of ministers and secretaries of state in charge of European affairs, in Bratislava, and discussed issues in the field of continuing enlargement policy, migrant crisis and communications strategy.

The progress which Serbia has achieved in the reform process has been commended at the debate, and this progress has been manifested through concrete steps made in the accession process.

The meeting was also attended by EU Commissioner for Enlargement and Neighbourhood Policy Johannes Hahn, representatives of the candidate countries and representatives of Slovakia, which in early July took over the sixmonth presidency of the EU Council.

Joksimovic stressed on this occasion that the Serbian government will not feed citizens' expectations based on unrealistic grounds, but the steps in the negotiations will be based on the concrete results.

According to her, this can be seen on the case of economic reforms which have yielded its first results, because Serbia has

Jadranka Joksimovic with Johannes Hahn

one of the highest economic growth rates in Europe in the first six months.

For the government, the accession process is an inseparable part of the reform policy and is seen as an investment in the foundations of building a functional and efficient state, as well as higher standard of citizens, she explained.

Joksimovic thanked Hahn for supporting the enlargement policy based on the achieved criteria and respect for fair rules of membership.

Speaking about the migrant crisis, the Minister without portfolio reiterated that it is necessary to make further efforts for an effective European solution.

According to her, there is no unilateral solu-

tion, but it requires a coordinated common policy, in which Serbia will participate responsibly as it has done to date.

Hahn underlined that the EU must evaluate and recognise the result which the country has achieved on the basis of adopted standards, whereby this evaluation is important so that the state and its citizens could feel concrete progress in European integration.

Speaking about the communications strategy in the field of European integration, the participants in the meeting agreed that it is important to present to citizens concrete benefits from that process, and that despite all the challenges it is facing, the EU remains the best place to live and work.

Migrants Started Hunger Strike About 150 migrants, mainly from Afghanistan and Pakistan, started yesterday a hunger strike in a field in Serbia on the border with Hungary to demand passage to the European Union.

The group, which initially numbered about 300 people, had traveled to the border over the weekend from Belgrade and settled in a field about 100 m (yards) from Hungary's wirefenced frontier with Serbia.

Last month Hungary limited the number of daily entries to a maximum of 30, creating a bottleneck in Serbia. It also allowed police send back illegal migrants detained within eight km (five miles) of its border with Serbia.

The migrants on hunger strike, wearing red baseball hats, told Reuters they had traveled by train and on foot.

Some said they have already been

deported back to Serbia.

They said they would refuse food until Hungary opens the border.

"The food is (brought) here, but nobody wants to eat it. The border stays closed so we will sit here, they should open the border," said Abdul Malek, an Afghan in his 40s.

Aleksandar Vulin, Serbia's minister for social affairs, said authorities would prevent any unrest. Migrants said they will protest peacefully.

"We secured them accommodation and all their needs, but we will not tolerate anything that would evolve into endangering of public order," Vulin said on Monday while visiting a refugee camp in the area.

According Serbia's commissariat for refugees, about 3,000 migrants remained stranded in the country, including 800 awaiting entry into the EU

in camps at the Horgos and Kelebija border crossings with Hungary.

Vulin said migrants deported from Hungary to Serbia must now apply for asylum or face expulsion.

The EU-Turkey refugee deal has reduced the flow of refugees from Turkey into Europe, but has not eliminated it entirely. More than 650,000 people passed through Serbia last year. So far in 2016, more than 100,000 migrants have passed through Serbia, many of them being guided by human traffickers whom they've paid. And 57,000 refugees are trapped in Greece, many of them still hoping to reach Germany.

Many European officials are thankful that the recent coup attempt in Turkey failed, because if it had succeeded, then the new government might not have honored the refugee deal.

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6

Terrifying Experience with Belgrade Taxi

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Kamal El-Zein, a Lebanese man who recently visited Belgrade, claims a taxi driver charged him RSD 9,000 (EUR 73) for a 5-kilometer ride

l-Zein hailed the cab at DG Beton, with the Metropol Palace Hotel as his destination - but when he refused to pay the exaggerated fare the driver "locked him up, and threatened him - until he got his money."

"When we arrived at the hotel, he stopped near the sidewalk and pressed the taximeter button... RSD 9,000! That's how much I had to pay! I laughed out loud and told him, look, man, we drove an RSD 400 worth - what the hell is this?

I'll give you 500," the Lebanese recounted his experience for Belgrade's Vecernje Novosti newspaper, and continued: "I reached for my pocket, took out a 500 bill, and moved to open the door and leave the car. In a split second, he reached for his door and started yelling. I didn't see what he was doing and thought he would grab a pistol or a knife to threaten me. He was locking the doors! He locked them and stepped on the gas, through a red light. He quickly took us away from the hotel, yelling in Serbian and in English."

"I started yelling, too, asking him to stop, saying I would pay, so he suddenly stopped and said, 'go on, then, pay up, pay up!," El-Zain described his experience.

"I took out RSD 2,000 from my pocket, gave him the money, told him this was more than enough, and tried to open the door. Again, same thing - he stepped on the gas, shouted, the works.

Now we were in a dark back alley.

There was nobody around and I was more and more in a state of panic!

Again I yelled at him to stop, again he hit the brakes - I took out an extra RSD 2,000, hoping I might see where the car's lock was," the Lebanese visitor said, adding: "This time I quickly grabbed the lock, unlocked the car, got out and started running, thinking the guy won't stop his car in the middle of the street to run after me, having already taken RSD 6,500!"

But - the Belgrade cabbie did run after him - shouting all the while.

"The street was dark and long, so I had to stop and shout back... I threw another RSD 2,000 back at him and said: do what you will, that's all I've got. He then stopped and said everything was fine... 'you, brother, can have a discount!' I started running toward the hotel. I was think-

ing, I just bought back my life for RSD 9,000, and how nothing was worth getting stabbed or injured for," El-Zein said.

And despite the ordeal, the daily reported - the Lebanese guest said he would "come back" to Serbia's capital city: "I must note that all this happened during one of the most beautiful weekends of my life, that I had a great time and enjoyed my time with our fantastic Serbian hosts! Excellent food, beautiful restaurants, exciting night life, wonderful people, and an incredibly beautiful city. I would come back!"

Recently, there have been reports in the Serbian language press about illegal taxi drivers creating serious problems in Belgrade, charging up to RSD 5,000 for a short ride from the capital city's Branko's Bridge to the Skadarlija district and also, "occasionally beating up somebody."

Unwanted Reactions to Medicines Unreported Doctors in Serbia still do not report unwanted reactions to medicaments often enough. This year patients who used cytostatics and antibiotics had most frequent problems, reads Blic newspaper.

During this year there were 675 cases reported, which is not enough to bring the system of following the safety of medicaments to the level of European countries. Unwanted reactions were mostly noted in cytostatics and antibiotics. In Medicines and Medical Devices Agency which collects these data, they explained that reactions for these two groups of medicaments were expected, bearing in mind the nature of the illnesses of oncology patients and the very mechanism of cytostatics.

It is similar with antibiotics, since they are widely used in all ages.

According to earlier findings, unwanted effects were more frequently noted in women than in men, while according to age they are most often in population from 18 to 59 years.

Symptoms which point to non typical reaction after consummation of a medicament were mostly appearing on the skin, sub dermal tissues, neural and gastrointestinal system. All of this might be followed with higher temperature, rash, and sickness, throwing up, itching, headache and diarrhea.

"Since Medicines and Medical Devices Agency (ALIMS) was founded, the growing trend of unwanted reactions to medicaments was noted, but it could have been better. Tracking the unwanted effects is an effect of the fact that there are no absolutely safe medicaments, so finding, evidencing and the

exchange of information about unwanted results means a possibility of betterment of contemporary pharmacotherapy", the explanation by ALIMS states.

There was no new information noted to point to the change of the safety of medicaments which are present on the market for a longer period. However, it is not in a description of a work field of the Agency to follow the unwanted reactions to dietetic supplements and general purpose devices.

"Having in mind that no medicine is absolutely safe, meaning that there is no medicament which is free of absolute risk to cause unwanted reactions, all the known risks of medicament application with recommendations are given in the manual which comes with each package" they say at ALIMS.

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7

Plan B for Galenika

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In case that the sale of Galenika fails, the state has prepared the plan B for the pharmaceutical company

he plan envision a debt write-off of around EUR 130 million, in which case Galenika would be repaying bank loans until 2022.

In two days, it will become known whether the only state-owned pharmaceutical company will get a new owner.

The sale deadline expires on July 27, and in case that the four interested companies should give up, the Zemunbased factory will continue operating thanks to the plan B. As Blic learns, Galenika's management and privatization adviser have prepared an alternative, with the focus on the factory's debts towards the state and the banks in the amount of around EUR 200 million.

"The state would write off around EUR 130 million of its receivables. These are Galenika's debts towards state-owned companies like EPS and Srbijagas, which, for example, Galenika owes more than EUR 11 million for gas alone.

On the other hand, Galenika would be repaying its debts towards banks in the total amount of around EUR 70 million in the next five to seven years", said a well

informed Blic source and added that the plan would soon be submitted to the Government.

As Blic has learned, the management of Galenika met the heads of the banks yesterday. At the meeting, whose outcome might prove to be crucial to Galenika's further operations, was talked about the possibility of approving a grace period for the repayment of accumulated debts.

The tender documentation for the pur-

Call to Israeli Investors Deputy Prime Minister and Minister of Construction, Transport and Infrastructure Zorana Mihajlovic said at a meeting with a delegation of investors from Israel, that investors from this country are welcome to Serbia because there are great opportunities for cooperation.

Speaking at a meeting with representatives of five large investment companies from Israel which specialise in construction and investment in real estate and infrastructure, led by President of the Airport City in Belgrade Gili Dekel, Mihajlovic said that Serbia is in the process of reforms and that it works hard on infrastructure development.

Representatives of the Ministry presented to members of the Israeli delegation active projects in infra-

structure and construction industry, changes in the legislation for making a better investment environment, as well as projects that are being planned, in which foreign investors can get involved.

They also discussed the growth and development of the property market since the coming into force of a new Law on Planning and Construction, which eliminated one of the biggest barriers for investors and that was a long waiting time for a building permit. This permit is now issued in eight days on average.

The strategic position of Serbia was also presented to investors, as a country that builds corridors, but also has projects in road infrastructure that will have a broad regional influence, such as the Nis-Merdare road.

Sosa New IMF Representative Uruguay's Sebastian Sosa will on August 1 take over as the new IMF resident representative in Serbia, sources in the IMF's Washington headquarters have confirmed to Tanjug.

Sosa will succeed incumbent Daehaeng Kim, who is the next resident

representative in Spain.

Kim has served in Serbia for the past three years, and his departure was unofficially announced a month ago by Finance Minister Dusan Vujovic, who expressed regret over it, noting that "Kim has learned the way Serbia works."

chase of 25% of Galenika has been bought by four companies.

"It remains to be seen now whether any of them will make a final offer. The Indians have made the best impression.

Their approach was the most serious one, they examined the finances and the production in detail, but they placed focus on the market, both the local and the foreign one. The Finnish were the only ones who haven't showed up", the Blic source says.

Ministry Subsidizes Planting of Fruit The Ministry of Agriculture has opened an invitation for the award of subsidies for long-term planting of fruit, grape vine and hops.

The incentives entail the procurement of seedlings, preparation and farming of the land and the chemical analysis of the ground with recommendations regarding the fertilizers and the research of the mechanical structure of the ground.

The right to incentives so far belongs to natural persons - owners of commercial family farms, entrepreneurs and legal entities. The condition is that the plantations were established in the fourth quarter of 2015 or the first and second quarter of 2016, and for plantations of strawberries, in the third quarter of 2016 as well.

The incentives are 40-55%, depending on whether the investments are made in developed or marginal areas.

Maximum amount per user depend on the type of incentive and range from RSD 100,000 to RSD 1,200,000.

Applications are submitted to the Directorate for Agrarian Payments, and the deadline is set for August 31, 2016.

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8

INTERVIEW

Greenfield Investments on Rise in Serbia LEED or BREEAM certified building is not just a nice plaque on the wall, but an improved working environment offering significant savings

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umber of greenfield investments has still been on the increase in Serbia while the rest of Central European region is focused on expanding building extension and reconstruction. I am optimistic when it comes to Serbia. Not only do I feel there is undoubted potential for market growth but also the office of Tebodin in Belgrade is ready for further success and achievements, Jaromir Kriz, head of company Tebodin for CEE says in his interview for eKapija.

How h as y our c ompany p erformed in C entral E urope, a nd p articularly in S erbia, a nd w hat a re y our expectations r egarding b usiness performance i n 2 016?

Our customers are faced with challenging market conditions such as in oil and gas with the sharp drop of the oil price.

But also other industrial markets in our area, are affected by global economic and financial developments. Despite these challenging market circumstances and high competiveness, we managed to be profitable and we met our operational plans.

What r ange o f s ervices d o y ou o ffer and w hat d ifferentiates y our c ompany c ompared t o s imilar s ervice providers i n S erbia?

We are an engineering and consultancy company with a strong customer focus. Our international knowledge and expertise allows us to meet and exceed our clients' expectations from the very beginning of the investment, offering support from the first initiative with a broad range of consultancy services, multidisciplinary engineering design, all the way through project- and construction management, site supervision and commissioning. This ability, to cover the entire project lifecycle, is our differentiating factor, Tebodin in Serbia is part of Tebodin's regional network in Central and Eastern Europe encompassing 800 engineers in 7 countries. We are the most widely spread engineering company in this part of Europe. We strive to share experienced personnel and specific industry/client know how in order to ensure the best quality of service. Our strengths lie not only in design & engineering, management and consultancy. We are especially experienced in core processes of food, chemical, and

automotive sectors and we also have experts in energy, including green building solutions and savings.

What i s y our o verall a pproach t o project d evelopment a nd s ustainable b uilding?

Our approach is a customer approach; we act as client's representative, which means that we promote the client's interest and those of the development.

There are many ways to develop projects. Tebodin mostly deals with EPCm (engineering design, procurement, and construction management) approach or PMC (Project Management Consultancy). Seeing that we have all the necessary experts in house, we cater to the project from start to finish, and are able to react to project needs.

However, every client has different requirements and standards, and we are flexible in meeting any request.

As far as sustainable buildings are concerned, I believe that industrial buildings in particular cannot truly be sustainable unless they are built by the investor. It is important for us to become involved from the very beginning in order to make sure all aspects are thought through, such as flexibility of usage, future extensions, smart logistics, energy efficiency, and pleasant working environments. We are able to optimize energy consumptions of buildings and core processes, achieving significant savings in exploitation phase.

These principles are, of course, also

applied to our commercial building projects.

Are g reen b uilding s olutions a c ommon p ractice i n S erbia a nd w hat consultancy s ervices d o y ou o ffer i n this a rea?

The Green building solutions have still not come into full force in Serbia although, in the last couple of years, there are more and more investors realizing that the benefits of a LEED or BREEAM certified building is not just a nice plaque on the wall, but an improved working environment offering significant savings. Central Europe experienced a boom in building certification that is still going strong, and with the growth of multinational investors in Serbia we see more and more clients who are deciding to adopt these standards on local projects.

What p rojects a re y ou c urrently working?

At the moment I am proud that our cooperation with Tigar Tyres on their production complex extension will continue. To my knowledge, this is one of the largest industrial expansions in recent times in Serbia. We are also managing the ABLOK development in Belgrade with a total of around 120,000m2 of residential and commercial space. We have also just recently won a high profile project on the outskirts of Belgrade. Parallel to all this we are continuously working on some retail expansions and reconstructions most notably for Delhaize and MOL, as well a wide variety of lender supervision services for most of the major banks on the market, including UniCredit Bank and Banca Intesa.

Given y our v ast l ocal e xperience, how w ould y ou e valuate S erbia's construction s ector a nd d o y ou expect f urther g rowth i n t he c oming years?

It is interesting that we are still seeing major Greenfield developments in the Serbian market, whereas the focus in the rest of Central European region is on extensions of buildings and reconstructions. I am quite positive when it comes to Serbia. Not only do I feel that there is undoubted growth potential for the market, but Tebodin's office in Belgrade is set for further successes and achievements.

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9

Nazi-Hunter Condemns Stepinac Decision A director of the Simon Wiesenthal Centre, said the Croatian court judgment, quashing the conviction of Cardinal Alojzije Stepinac in 1946 for collaboration, was 'shameful and horrible'

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fraim Zuroff, director of the Simon Wiesenthal Centre's Israel and Eastern Europe office and its chief Nazi-hunter, condemned last Friday's ruling by the Zagreb County Court annulling the 1946 conviction of Croatian Cardinal Alojzije Stepinac for collaboration.

Zuroff told Bosnian Serb radio he found the decision "absolutely shameful and horrible.

"It can't undo the fact that, as such a person in such a position, he supported the genocidal regime established in Croatia [Nazi puppet state, the Independent State of Croatia," he said.

"This is absolutely a bad decision, which we hope will be changed by a higher court," he added, possibly unaware that the Croatian state attorney's office will not file an appeal to the Supreme Court.

He maintained that the goal of the judgment was to "wash away" the wartime crimes of the Catholic clergy in Croatia and Stepinac's own support for the wartime Fascist regime.

Zuroff admitted that Stepinac did help some baptized Jews escape death, but only to a limited extent.

He complained of attempts throughout Eastern Europe to redraw the history of World War II and, along with that, downplay the "genocide committed against Serbs" in that period.

"This is very dangerous, such tendencies must be stopped and we are trying very hard to stop them," Zuroff concluded.

However, the County Court ruled that Stepinac did not get a fair trial in 1946 under the Yugoslav Communist regime.

The Yugoslav Supreme Court sentenced

Ustasa leader Ante Pavelic shaking hands with Stepinac

Stepinac to 16 years in prison for collaborating with Nazi Germany and Fascist Italy as well as with the homegrown Independent State of Croatia, NDH. He was also found guilty of forcing Serb Orthodox believers to be baptised as Catholics, helping the NDH regime and "spreading enemy propaganda".

Controversy over Stepinac centres on the fact that he publicly hailed the establishment of the NDH in 1941, giving the regime legitimacy among Croatian Catholics.

Led by the Ustasa movement, the NDH, led by Ante Pavelic, immediately adopted racially discriminatory laws and carried out large-scale atrocities against Serbs, Jews and Roma, which have been characterized as genocide.

Many Croatian Catholics, however,

remember him as as a pious and patriotic bishop who remained in his post after the Communist takeover in 1945 and who - they say - was then condemned in a show trial.

Moves have long been afoot to canonise Stepinac - who the Vatican made a Cardinal in 1952 - helped by the Croatian government, which the Serbian Orthodox Church and Serbian authorities have strongly condemned.

Stepinac was released from prison to house arrest in 1951 and died in 1960.

Pope Francis, aware of the bitter controversies over Stepinac, has put the breaks on the canonisation process, proposing that a joint commission involving the Vatican and the Serbian Orthodox Church examine the case first. The commission started work earlier this month.

Court Upholds Journalist's Libel Claim Montenegrin journalist Milka Tadic Mijovic confirmed to BIRN that the Appellate Court in Belgrade had ruled in her favour and had ordered the Serbian daily portal E-novine to pay her a total of 8,000 euros in compensation for damaging her "honour and reputation".

The court upheld an earlier judgment of the High Court in Belgrade, from December 2015, which found E-novine and its editor-in-chief Petar Lukovic guilty of insulting Tadic Mijovic in a series of articles.

According to the verdict's explanation, several articles that the portal published in 2013 and 2014, as well as

scurrilous and insulting comments under the photographs in the published texts, focused on "degrading the personality of the journalist.

"By listing false information and insulting the journalist, the published articles mostly contained abusive or insulting expressions," the court said.

The E-novine editorial team said that the media outlet had now ceased to exist, eight years since it was founded.

Serbian media quoted Lukovic as saying that the portal had been forced to fight against "media terror, the overall hatred of the extreme right and the false left and the terror of the High Court.

"In the shameful history of the Serbian judiciary it should be written that we have already paid 55,000 euros in penalties to mindless persecutors called Emir Nemanja Kusturica, Cedomir Cupic, Stojan DrèeliÌ, Darko Trifunovic, Milka Tadic Mijovic, Filaret, Nebojsa Spaic ..." Lukovic said, citing the names of various public figures who had sued E-novine for defamation.

Known as a sharp critic of the government of Prime Minister Milo Djukanovic, Tadic Mijovic is a former editor of the only weekly magazine in Montenegro, Monitor, and is now editor at the Center for Investigative Journalism, CIN.

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10

Legendary Car Factory Fades Into History

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The final closure of the long defunct Zastava car factory in Kragujevac has left many Serbs grieving for a part of their history that is now definitely over

he cars - once popular throughout the former Yugoslavia - have not been produced for years. But the "lock on the factory gate" in Kragujevac - which a Serbian court ordered placed last week - marks a final break with what some believe was "a better past".

The company Zastava Automobile from Kragujevac was declared bankrupt on Thursday because of mounting debts and after its bank account was blocked for 701 days.

The Commercial Court in Kragujevac, acting on the proposal of the Ministry of Economy, started bankruptcy proceedings on the grounds that Zastava's negative equity topped 410 million euros.

Huge Impact "The factory was built in the post-war period in the 50s, after World War II, and as we built the factory and the models in it, the factory was building us," said Slavoljub Bataveljic, president of the "Fica fan club" and a former worker at Zastava.

"It had a huge impact on the city of Kragujevac, which start to thrive after the factory opened," he added.

In the 1950s, the "Fica", a small car modeled on the Italian Fiat 600, become a symbol of the modernization and success of a new Socialist Yugoslav society.

Almost a million "Ficas" had rolled off the Zastava assembly lines by 1985, metaphorically putting Yugoslavs on four wheels.

Bataveljic told BIRN that the definitive

closure of the factory was an emotional event for him.

Some 300 former workers are also demanding back pay that the company owes them, worth almost 120 million dinars [about a million euros]. They are claiming the unpaid wages for the years from 1997 to 2001.

The former workers wanted bankruptcy proceedings delayed until they established the real size of the company assets, arguing that the assets were much bigger than were shown.

By the time it closed, the company was down to only three employees. Back in 1989, before international sanctions and the start of the war in Yugoslavia, it employed 13,500 people and produced 220,000 vehicles a year.

All that changed in the Nineties, when, because of sanctions and war, it stopped working and Kragujevac become known as "the valley of hunger".

In 2008, the property and equipment of Zastava Automobile were transferred to a new company, Fiat Serbia, presently Fiat Chrysler Automobiles Serbia, while the debts and surplus workers remained with Zastava.

Zastava was one of great symbols of the former Yugoslavia becaause the cars made in the factory were driven not just by most of the adult population of the old Yugoslavia but were popular throughout the Balkans and beyond.

There are still numerous fan clubs in the region celebrating the cars produced in the factory, especially the Zastava 750, or "Fica".

Bataveljic said he started the fan club in

2005, not just to commemorate the legendary Fica but to keep alive memories of the all of the models produced in the Zastava factory.

Production of the Fica, the first model in the factory, started in 1955 and ended in 1985.

"People today cannot imagine what kind of effort all the workers put into building this factory. When the factory opened, no one had special training for the jobs that we performed, so everything was learned along the way," Bataveljic recalled.

He said he drove Ficas all over the former Yugoslavia. In the holidays, he recalled, people would pack the whole family into this small car and drive to the sea or wherever they spent their vacation.

Fica Festivals "We have been organizing festivals for the Fica and the other Zastava cars in Kragujevac for 12 years but we are expanding. Now, the festival is named the Balkan Fica Fest. People from all over ex-Yugoslavia countries come to our festivals, even from France or Switzerland," Bataveljic said.

Almost million Ficas were made in total, he said, and it deserved its own monument because its impact on the culture and economy in Yugoslavia had been so large.

His fan club has collected over 3,000 signatures in a petition demanding that this symbol of the long-gone country and its culture is immortalized on one of the city squares.

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11

Locals Fear Hidden Cost of EXIT Festival

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While Novi Sad's EXIT festival has undoubtedly boosted the local economy, some fear it might be doing the city more damage than good

eaving the festival grounds, EXIT festival-goers could be overheard debating: "Was this the best EXIT ever?"

With a line-up that lacked nothing and a reportedly record-breaking turnout, most were hard-pressed to say anything to the contrary. First-timers and EXIT-veterans alike gave rave reviews. Visitors in town specifically to attend the festival were blown away by the "magic" EXIT promised.

Locals, however, were torn.

While EXIT draws hundreds of thousands of paying tourists and gifts the city of Novi Sad free publicity each year, some argue that the festival has lost touch with its philanthropic roots and may be doing more damage to the city than its organisers care to admit.

Tourist Season Novi Sad, the capital city of Serbia's northern Vojvodina province, is usually a fairly quiet place. The second weekend in July - the festival's annual timeframe - marks an impressive peak in the city's summer tourist season.

And the four nights of fireworks and pounding music at the city's famous landmark, the Petrovaradin Fortress, is drawing ever larger crowds of musiclovers, and their money, to the region each year.

With this year's audience estimated to have numbered just over 200,000, business-owners and entrepreneurs alike compete to earn their share of the money to be made from the crowd of boisterous, often intoxicated, guests.

The most obvious sign of EXIT's economic impact is the vastly increased foot traffic through the city's downtown pedestrian area, which is striking when compared to the average weekend.

Although most festival-goers sleep through the day to recover from the nightlong festivities, only emerging from their accommodation as the sun begins to set, the city can feel almost too crowded at times.

Hotels and hostels sell out weeks in advance, with rates rising to match demand created by the festival. Some local families choose to rent out their flats to visitors for extra vacation money, using house-rental apps like AirBnB. There are queues to be seated at local restaurants and even at grocery stores, with shoppers lining up to buy cheap

drinks before entering the festival grounds.

Not one business opportunity is wasted.

Residents of Novi Sad have learned how to get their share of trade out of the festival, but there's much more to EXIT than its moneymaking merits.

Founded in 2000 by a student movement fighting for democracy in Serbia and the Balkans, it was a protest against the legacy of hate of the bloody Balkan wars of the 1990s.

The festival organisers say they have retained that strong philanthropic mission, as explained on the website page dedicated to EXIT's values.

Yet it's hard to find that original vibe at the venue these days. Corporate sponsors plaster the walls of the fortress with logos and advertisements for Heineken and Smirnoff.

This is likely just an inevitable symptom of a festival getting world attention too quickly but there's something to be said about the loss of its original mission and the transition towards hedonism.

In addition, EXIT has been accused of irresponsibility on several fronts. The thing that appears to be called into question most frequently, however, is the festival's relationship with its host city and venue.

Despite the fact that the festival receives significant funds from the provincial government of Vojvodina and is allowed to use Petrovaradin Fortress as its venue free of charge, EXIT does not appear to contribute a great deal to the upkeep of the fortress.

Over the course of four days, the grass in front of the many stages is completely uprooted by stomping feet and dirt and dust fills the air to the extent that most choose to cover their nose and mouth by the fourth night of the festival.

The wearing away of the turf exposes the soil to a high risk of erosion and waterlogging, which some believe could, over time, have lasting effects on the stability of Petrovaradin's impressive walls and deep foundations.

Additionally, the preparation of the fortress and the construction of massive stages within its walls require large trucks and cranes to come and go via the narrow cobblestone streets. The fortress's famous clock tower has been found to be sinking over the past 15 years, although it's not determined if the festival is to blame.

Vojislav Devic, a local architectural history enthusiast, has suggested that "during the 10 days of EXIT [including setup and dismantling] the fortress ages 10 years".

Historical Landmark In a written response to BIRN, EXIT organisers said that some damage has been present since before the festival began using the fortress as its venue and that the sound vibrations have no harmful effect, citing a joint study between the University of Novi Sad's Faculty of Technical Sciences and the Institute for the Protection of Cultural Monuments.

Despite this, EXIT exists on the profits it generates without releasing if it hands over much at all to maintain and restore the historical landmark. Now that it is a successful fixture of the international music festival season, it may be time to ask that it gives back a little more.

So say what you will about the festival's economic contribution or the hedonism of those who flock each year to attend, at some point, Novi Sad will have to ask: Is EXIT worth the cost?

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