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infrastructure / Bridge by the River Neretva event horizon / The Taxing Case of the Tax Collector in medias res / Janša’s Golden Rule politics / The First Forty Days of Serbia’s New Government

southeast europe · a fortnight in review no.12 / subscription only / 13th september 2012

financial / The Agrobanka Affair: from Board to Prison

Scorched Earth

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content

introductory epistle

Scorched Earth

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Extreme heat and political weapons of mass destruction fortnightly news

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The Economy Of General Interest

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infrastructure

Bridge by the River Neretva

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Bridge? Or tunnel? Wormhole? Yet to be seen.

Motorway Privatisation

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The State can't run it... and is finally aware of it? event horizon

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The Taxing Case of the Tax Collector

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Black debtors' lists? No, we're not back in the middle ages... in medias res

Janša’s Golden Rule

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Golden or not, the debt just refuses to go away... politics

The First Forty Days of Serbia’s New Government

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Or how Nikolić has brough back a few spectres from the past.

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financial

The Agrobanka Affair: from Board to Prison

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Embezzlement, crony loans. Balkan banking at its best. legal

Serbia’s New Company Law

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Changes there are, and an expert to lead us through them. human interest

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Going for the Olympic Gold: Serbia versus the World

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Or how Serbia (under)performed in London and why. feature interview

Shooting for the Stars: The Giovanni Cernogoraz Story

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Waiter wins Olympic gold. No, this is not a fairy tale. lifestyle

Experiential… sailing.hr Way

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Mere sailing?Ladies and gents, there can be much more to it.

28 good stuff

Three Slovenian Wines to Go For

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Read, white, rose… Slovenian… highly recommended. to do list

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Support in managing innovations & internationalising business operations www.bicro.hr / www.een.hr

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Subscription 2013 24 issues - including three Specials

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introductory epistle

editor-in-chief Igor Dakić executive editor Lee Murphy lee@see-magazine.eu graphic editor Ivor Vinski art editor Stiv Cinik country editors Miša Milošević (Serbia) Aida Tabaković (b&h) Sebastijan Maček (Slovenia) Miroslav Tomas (lifestyle) contributors Dylan Alexander (Permanent) Mark Ferrris (Permanent) Richard Wellings (Editorial) Nikola Janović (Legal) photography Mens-Libera Photo, Shutterstock, IStock, Wiki Commons unless otherwise specified printer Stega tisak d.o.o.

Zavrtnica 17, Zagreb Croatia issn 1848-4107

director Igor Dakić igor.dakic@see-magazine.eu sales & marketing (cro & slo) Miroslav Tomas miroslav.tomas@see-magazine.eu + 385 95 63 99 702 sales & marketing (serbia) Milan Milošević misa@see-magazine.eu + 381 63 224 223 sales & marketing (b&h) Amela Tanović amela@see-magazine.eu + 387 63 691 393 publisher Mens Libera Media d.o.o.

Ksaver 215, 10000 Zagreb tel/fax +385 (0)1 46 77 165

Scorched Earth Most of my memories of this past summer (though it is not really in the past, is it, but is still going strong in its, poets and hippies would say, Indian incarnation) are those of unrelenting heat. Numerous fires reigned supreme in the nowadays questionable wild of the Adriatic, which made motoring about a rather difficult affair. Torched grass, weeds, shrubbery, trees and the like everywhere, and if you couple this sight with a severe drought what we get is a recognisably apocalyptic scenario. That of scorched earth.

For those not in the know, a scorched earth policy is actually a military strategy which implies destroying everything in sight - food, infrastructure, resources, human beings - either when retreating from or advancing through an area. Napoleon and Hitler used it in their Russian campaigns, as did the Russians to deprive the invading forces of the necessary resources. General Sherman used it against the South in the American Civil War, as did Lord Kitchener, the proud inventor of the concentration camp, against the Boers yonder in South Africa.

So let us run the gauntlet. Serbian President Nikolić, with respect to Kosovo and hence Serbia's European future, is piping to that typically parochial tune that does have a measure of manly hard-headedness but which has

historically probably been understood only by Morlack brigands and 19 th century Montenegrin folk bards. His relatively recently discovered romantic interest, Prime Minister Ivica Dačić, is duly following in the Chieftan's footsteps. Little remains behind them but, on the international level, scorched policy.

As for Croatia, Finance Minister Linić remains in the spotlight, and this time round he has made use of his summer to arrange for the publication of a veritable black list, or a list of those owing him tax money. No easy feat, with all those fires blazing all along the coast. The word 'sacrifice' was thrown about on several occasions, although it is difficult to say whether it ought to have been ceremonial or simply patriotic. He will undoubtedly need many of these, given the purse and the economy he inherited from the previous government. The same can be said of the Slovenian pm Janša and his desperate attempt to rescue the scorched banking sector and avoid bankruptcy.

Not everything, however, is bleak. Our Olympians made sure of that. One may even deduce something from this last statement: when in the dire straits, put on your sporting gear and break a sweat.

Nothing can combat depression better than physical activity...or a robust investment cycle. May it come soon.

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fortnightly news / the economy

rohatinski lands a new job

kerum bids farewell to zagreb

After stepping down as governor of the Croatian National Bank, Željko Rohatinski has accepted a job as advisor to the president of the board of Agrokor, Ivica Todorić. Rohatinski, after two six year mandates as governor, during which time he gained international recognition for his work, has been forced to step down in favor of his deputy Boris Vujčić, this June. After considering a position as advisor for Central and South Eastern Europe Goldman Sachs, Rohatinski opted for employment with Agrokor. a company which has recently come in 26th place on Delloite's list of 500 most successful companies of the Central European region, and which is planning further to expand their operations as the leading retailer in Croatia and the region.

Željko Kerum, Mayor of Split and proprietor, amogst other things, of the retail chain Kerum, has divested himself of his shops in Zagreb.

The outspoken hotelier has sold eleven stores to Prehrana, who are based in the Croatian capital, which brings their presence in Zagreb to a total of 83 points-of-sale. Prehrana has indicated that this recent acquisition is not the last and that more purchases could be expected. It is no secret that Kerum has fallen on hard times of late, especially after the disaster that was the restoration project of the Marjan Hotel in Split. The losses incurred in Split will ostensibly cost him his empire, estimated to be worth cca. 400 million Euros. The Joker Mall in Split is also up for sale, as are a number of properties throughout Dalmatia, and the list, as one might imagine, does not end there.

fiat production officially starts On August 13th the very first FIAT 500L left the assembly line at the car manufacturer’s plant in Kragujevac, Serbia. FIAT Automobili Srbija (FAS) currently occupy the premises formerly used by Zastava, and hope to maintain a daily production quota of 500 units, which are all intended for the export market. FAS’ Head of Operations, Nunzio di Bartolo, was delighted with how well the facility was performing and noted that he expects production capacity to expand to 200,000 cars per annum from 2013 onwards. The first production run of vehicles was shipped to Italy. FAS will be hoping to export to Russia as a favoured trading partner.

croatia pays the price for the good weather While the high summer temperatures were rightly welcomed by the tourism sector, other groups bemoaned the lack of rainfall during the month of August. 2012 has seen Croatia's hottest summer on record, and this is of some concern to the farming communities who have seen their livelihoods put at risk. At least five counties were forced to declare a state of natural emergency due to the extended heatwave, with damages caused to crops estimated to be in the region of tens of millions of Euros. With the expected harvest for this summer likely to be halved, there will also be consequences for the oil and sugar industries, not to mention livestock. The difficulty for Croatia lies in its geographical makeup: only 1% of agricultural land is serviced by any irrigation system, with the vast remainder relying on rainfall. This being the case, the surprise is not the current crisis, but rather that it has taken so long to manifest. Istria is under water rationing as a severe lack of drinking water looms.

Thankfully this rationing did not have an adverse affect on the tail end of the tourist season.

comico oil gives response to smederevo lawsuit The US-Dutch consortium, Comico Oil, which won the permit to build a 200 million Euros refinery in the city of Smederevo, has presented its response to the lawsuit issued by the city itself. Comico Oil was sued by the city when the group failed to meet a deadline, June 26th, for the securing of a 99 year lease, a lease which was worth 5.5 million Euros. Comico Oil claims they are committed to their new project and have stated that they will prevent Smederevo from facilitating any breach of contract. This unfortunate series of events, which has been in motion for two years already, is due to be ruled upon in court sometime in September.

textile combinate for sale The Serbian Privatisation Agency has announced that the Prvi maj (The First of May) textile combinate, located in Pirot, is to be put up for sale. The asking price for the ex-Yugoslav knitware giant is just over 2 millions Euros, and this includes all company assets and production facilities. The State will offer subsidies totalling 6.65 million Euros to whoever purchases the business so long as 1,300 workers remain employed. The new owner will be expected to invest as much as 9 million Euros in addition to the purchase costs.

It may be that Mojca Lukančić and Nigel Baxton, owners of the Slovenia textile firm Mura, will expand their business by buying the Serbian company. Mura has had business dealings with The First of May in the past.

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janša fearful of bankruptcy

macedonia at risk of recession

Slovenian Prime Minister Janez Janša has admitted that, if his Government does not manage to sell State Bonds on the U.S. market, the country will be faced with the grim prospect of bankruptcy as early as October. This, a moment of forthrightness, contrasts with previous assurances that the State was fully capable of emerging from the current financial hardships. The recent downgrades in the Slovenian credit rating, and a drop of 3.2% in GDP during Q2, has forced the political administration to face the harsh realities of becoming the latest EU member in need of a bailout. While this posturing is being considered, by certain analysts, as a ploy to consolidate the ruling coalition’s power and hasten much needed reforms, the fact remains that Slovenia needs to raise funds, amounting to 2 billion Euros, necessary to service their foreign debt in 2013.

Industrial output in Macedonia has been on the decline for over a year. According to data from the Macedonia State Statistics Office, the decline is most serious in the production of electrical equipment, paper, and, most worrying of all, the metal industry. Already the parliament has approved a 100 million Euro loan, procured from the European Investment Bank, which is intended to help local companies. Of this amount 30 million Euros is earmarked for the metal industry, which forms the backbone of the Macedonian economy. The Opposition, while in favour of this loan, do not believe that all options are being explored, suggesting that taxes should be suspended for those companies which are struggling the most. Figures released earlier this year had projected growth in the Macedonian economy, but a decrease in demand for Macedonian exports throughout the European Union has had a devastating effect.

The Government still expects 2% growth in 2012, but figures for Q1 and Q2 surely indicate a contraction of the economy instead.

croatia's credit rating preserved Against all odds, the ratings agency Fitch has maintained Croatia’s credit rating at BBB- for the borrowing of foreign funds, and BBB for that of domestic finance. Moreover the outlook has improved from ‘negative’ to ‘stable’. This is obviously welcome news at a time when the most optimistic commentators had resigned themselves to a further slide in rating, especially when downgrades had already been applied to Spain, Slovenia, and even Japan.

Fitch noted that the prospect of GDP growth remains low until such time as the Government can go ahead with budget cuts and implement structural reforms. While this is good news, Croatia nevertheless fell five places, to 81st, on a list of 144 countries on watch by the agencies. Minister of Finance Slavko Linić appears content with the situation as it is, and has stated that, in spite of dwindling economic and industrial activity, it is great news that Fitch had kept faith with Croatia and the Government. Linić said that his Department will continue with planned investments and cutbacks, and has indicated that layoffs within the Public Sector will be likely.

b&h construction on the road to recovery tijanić remains in power Long time head of the Serbian Broadcast Corporation (RTS) Aleksandar Tijanić will not be dismissed by the new Serbian Government.

Although he had been marked out by Serbian President Tomislav Nikolić for dismissal, during the election campaign, it would seem that matters in other State-owned companies have taken precedence. Tijanić, who was appointed to his role at RTS by Vojislav Koštunica in 2004, took exception to talk coming from the Government suggesting that his was one on a list of names destined for the axe. For the time being, this media power-player is safe.

The B&H construction industry is seeing signs of gradual recovery in 2012. Traditionally a strong exporter of services, the industry suffered disastrous results last year following the loss of contracts in Libya. According to the Bosnian & Herzegovinan Statistics Agency, the construction sector has seen a year-on-year increase in foreign contracts of 310%, and a rise in completed contracts by 42% for H1 of 2012. These figures, while encouraging, are mildly misleading in that they speak more of the slump suffered in 2011, and in fact the industry has yet to recover to 2010 levels. Two thirds of the contracts signed will see B&H providing services in other European countries, while the remainder will operate in Africa.

world travel & tourism council get it right At the beginning of 2012 WTTC predicted that Montenegro would be one of the world’s fastest growing tourist destinations and to date their faith has proved well founded. For the first 7 months of the year Montenegro saw an increase of almost 5% in visitors, which will likely translate into added tourism revenue. According to the Ministry for Sustainable Development and Tourism, total revenues for 2012 will exceed 690 million Euros, a year on year increase of 3%. June saw the largest increase (13%), highlighting the fact that Montenegro has become more popular as a destination for summer holidays rather than simply as a destination for a short break. The Ministry are hoping that 2013 will be even better again, and it is also hoped that finances will be made available to fund future tourism-related innovations.

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fortnightly news / of general interest

eu negotiations set for 2013?

Milan Pajević, the newly appointed director of the Serbian EU Integration Office, has said that Serbia should have an official date for negotiations with the European Union by next summer. “We hope to begin negotiations with the EU in the foreseeable future and from there we can deal with the essential issues, all of which are relevant for the people of Serbia.” Pajević noted that the official date could not be determined until Serbia meets certain criteria which have been imposed by Brussels. Pajević stressed that Serbia should allow Priština to have representation at regional summits, since that would help to ensure that Serbian interests are expressed in the best possible light. The EU Commissioner for Enlargement, Štefan Füle, echoed this by saying that “improving Serbia’s relationship with Kosovo remains a crucial condition for the country’s path to the European Union.”

montenegro to receive croatian assistance in meeting eu targets Čedomir Janevski, a former manager of the U21 Macedonian football team, has been appointed manager of the senior international team following the resignation of Welshman John Toshack, who has had quite the managerial career (he managed Real Madrid on two occasions) and was contractually obliged to take up residence in Macedonia. However, he found himself unable to do so, meaning that his position became untenable. It has often been said that the British soccer establishment can be overly parochial at times, and this incident will do nothing to change opinion there. We at SEE Magazine feel that Mr Toshack could surely have found a most delightful residence anywhere in the Macedonian countryside, especially near Lake Ohrid. Toshack’s replacement, Janevski, is himself well-travelled and has taken charge of Club Brugge, Red Star Belgrade, and most recently Ethnikos Achna FC from Cyprus.

bosnian election campaign code signed by all but one

2013 to be harder on the pocket than 2012… but there is light on the horizon The current Croatian Minister for Finance, Slavko Linić, has suggested that citizen's pockets will be hit harder in 2013 than they have been already this year. Speaking on Croatian radio the Minister said “the Government will not give up on its cost cutting policies or its strengthening of tax discipline measures”. Of course there will be those, SEE Magazine amongst them, who feel that such burdens might well have been avoidable had the Coalition made the tough calls when they took power rather than allow the crisis to gather strength. Thankfully it would seem that Croatia will have no need of assistance from the IMF, although Linić would be unlikely to call upon them even if needed, since that might well reduce Croatia to junk status. On the other hand, Prime Minister Zoran Milanović is of the opinion that Croatia is about to turn a corner, economically speaking. While visiting the island of Hvar the Prime Minister said that while “the crisis is big, deep, and global, I am sure that Croatia’s recovery will begin next year… Tourism on these islands enables those living here to reach the same living standards as those enjoyed in Western Europe.” He went on to note that it should be possible, through careful and considered investment, to extend the tourist season from July-August to May-September. He also took the opportunity to appeal to the Croatian Diaspora, saying that the State should help those Croatians in other countries who are suffering under more difficult circumstances than those at home. He also reiterated the need fully to integrate into the world market so that they might better weather future crises.

The representatives of 35 political parties from all around Bosnia & Herzegovina have signed a document colourfully named the ‘Code of Conduct for Political Parties during Election Campaigns’. This document was drafted by the Democratic Initiative for Europe with the aid of the National Democracy Institute. It will regulate the conduct of political parties, as the title suggests, during any future election campaigns, with the emphasis being squarely on the upcoming local elections. The signatories have pledged to refrain from corruption, the coercion of voters in any fashion, ethnic fearmongering, propagating gender inequality, and any form of fraudulent behaviour at any point prior, during, or after the election. All agree that this move marks an historical turning point for the country’s political culture; that is all but one. The Alliance of Independent Social Democrats, Milorad Dodik’s party, has refused to sign it. Insert punchline here.

scandals continue to plague slovenian church Having already endured scandals regarding financial transgressions in the Archdiocese of Maribor and the supposed parenthood of Alojzij Uran, Archbishop of Ljubljana, the Catholic Church in Slovenia is set to face yet another problem. Uran’s predecessor and former head of the Vatican’s Monastic Congregation, Franc Rode, has been confronted with a paternity suit by one Peter (42), son of Tanja Breda S., who is now working in the Middle East. The speculation is that Peter’s mother, Tanja, was romantically involved with Rode in 1969, while he was teaching at the Ljubljana Theological Faculty. The woman, who was 18 at the time, does not deny being close friends with the cleric, but has contested the claims that she was ever involved with Rode in an inappropriate manner. Peter, who was born in Germany, was never told the name of his biological father and is now seeking a DNA sample from Rode so that the matter can be put to rest.

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croatian government moves to ratify border agreement With accession to the European Union less than a year away, the Croatian Government has made a move to ratify a border agreement with Bosnia & Herzegovina, which had previously been signed by former Presidents Tuđman and Izetbegović in 1999. Under this agreement Croatia will relinquish control of two islets in the Bay of Ston, Veliki and Mali Škoj, as well as approximately five square kilometres of sea surface. Both islets have been under the control of the Bosnian & Herzegovinan authorities since the original agreement was signed, but are currently privately owned by a Croatian citizen. This move has already created an amount of debate, with the local community ardently opposed to territorial concessions – this despite the fact that both islets are no more than pieces of rock, incapable of sustaining anything of note. What is of most concern to the Croatian locals is the loss of fishing rights within the lost waters, and they claim that this will impact on their livelihood. The ruling Kukuriku Coalition will have their work cut out for them given that they need a two-thirds majority to get this through Parliament. HDZ oppose the bill.

petar čobanković's immunity revoked

prosinečki no longer a star in belgrade Robert Prosinečki has resigned his position as coach of FC Crvena Zvezda (Red Star) Belgrade following a draw with FC Rad in the Serbian SuperLiga. Prosinečki was a member of the Red Star squad when they lifted the European Cup in 1991, having transferred from Dinamo Zagreb. Prosinečki also helped secure third place with the Croatian National Team at the 'France 98' World Cup. The Belgrade club was his first coaching gig, but it had seemed for some months now that the writing was on the wall for the Croatian, especially since he had failed to secure the league title last season (losing to FC Partizan), even though they did lift the Serbian cup. He continues to occupy a unique role in footballing history - beloved by Delije, Red Star's fanclub known for hooliganism and ultra-nationalism, and all in spite of his being a Croatian footballer. It may just be that his status as a footballing great transcended any ethnic boundaries.

The parliamentary immunity of Petar Čobanković, former Minister of Agriculture, has been revoked by the Mandate Immunity Commission of the Croatian parliament, on the insistence of USKOK. The reason behind this move is the ‘Planinska Street Affair’, regarding the purchase of an office building in Zagreb’s Planinska Street, which was sold to the Government by HDZ member Josip Fiolić at a price twice its market value. The building was acquired in order to house the Ministry of Regional Development, which was then a part of Čobanković’s Ministry of Agriculture, and the difference in price supposedly ended up in the infamous HDZ slush fund. Fiolić, former Prime Minister Ivo Sanader, and one Mladen Mlinarević, whose company conducted the appraisal of the building, have already been indicted in the case. Although Čobanković has previously claimed that he alerted Sanader as to the inflated price, the transaction was nevertheless concluded. It is speculated that Čobanković will be testifying for the prosecution in return for immunity in the case.

new statistical division of croatia

boris šprem heads to the us for treatment Boris Šprem, President of the Croatian Parliament, has been transferred to the MD Anderson Cancer Centre in Houston, Texas, so that he can avail of further treatment. Šprem, who was diagnosed with multiple myeloma over 18 months ago, was being treated by the Hematology Institute of the Zagreb Clinical Hospital. Given the arduous nature of the treatment, which includes several chemotherapy treatments, Šprem's medical team felt that his chances of recovery were better in the United States.

Currently Croatia is divided into three separate statistical regions but all of that is set to change on January 1, 2013. As Croatia moves forward into a new year, the country will instead be divided into just two regions, Adriatic and Continental. Branko Grčić, Minister of Regional Development and EU Funds, explained that such a move would allow Croatia to access a greater amount of EU structural and cohesion funding. This has not been welcomed by all, though, with representatives of the Association of Croatian Counties and of HDSSB (a Slavonian party formed from former HDZ members) claiming that because Slavonian counties will in the future be statistically wealthier, due to their being part of the same region as Zagreb and Varaždin, they will be entitled to less funding than they currently are. Cynics claim that these new regions were purposefully drawn so that the average wealth of ‘Continental’ Croatia would drop, thus allowing the capital of Zagreb to draw on more funding than it necessarily deserves.

svilan switches colours Proceedings against Siniša Svilan, the former programme director of Croatia’s Nova TV, have been aborted following a complaint by his attorney with respect to evidence introduced by the prosecution. Svilan was charged with accepting bribes, all together in the amount of over 250 thousand Euros, to run shows produced by Core Media, a production company owned by Vladimir Sellier Šelebaj. Since the beginning of the trial earlier this year Svilan has been fired from his position, but has been in the meantime employed by Željko Mitrović, the Serbian media mogul and owner of TV Pink, to help in the process of setting up the Croatian version of Pink. As the prosecution are filing an appeal regarding the ruling, Mitrović has issued a statement, commenting on Svilan's new appointment with his company, saying that “everyone is innocent until proven guilty.”

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infrastructure

Bridge by the River Neretva For as serious an issue as the PeljeĹĄac bridge is, it sometimes feels as if the whole situation is part of a cartoon, with Wile E. Coyote coming up with zanier and zanier options in order finally to catch the Roadrunner. We took a look at what has been proposed and examine the effects such a construction will have on the region.

by Lee Murphy

A

lthough the situation surrounding the Neum corridor is one which has continued to befuddle the politicians of both Croatia and Bosnia & Herzegovina for the past few decades, it is in fact something which has existed for quite a while longer. Students of history might be aware that the territory of Neum once belonged to the Republic of Dubrovnik (or Ragusa if you prefer that name), as they had acquired the lands as far back as 1399. Three hundred years later, it was part of the extended Ottoman Empire, under the Treaty of Karlowitz, and at the risk of skipping over too much of what followed, it was functionally lost to Croatia. Of course Neum is within the Herzegovinan part of Bosnia & Herzegovina.

Even after the dissolution of Yugoslavia no real difficulties arose; after all, the inhabitants of Neum were, for the most part, ethnically Croatian. It would not be until Croatia entered negotiations with the European Union that Neum would become a

serious concern. Passing between Croatia and Bosnia & Herzegovina is relatively easy, as things stand; an id card is sufficient to cross the border and conduct your business therein. From January 1st, 2013, however, Croatia will be subject to European Union rules and regulations regarding organic produce, and it is this which affects Bosnia & Herzegovina the most.

Lacking the modern facilities needed to assure that their exports meet European standards, or even an adequate number of border crossings to handle that which is

Ivan Ĺ prlje first suggested the idea of constructing a bridge to span the Adriatic, physically linking the separated parts of Croatia.

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acceptable, Bosnia & Herzegovina needs the question of Neum to be resolved now, more than ever.

For there is an even more pressing issue, the one plaguing Croatia. For, as far as many Croatians are concerned, Neum is a thorn in their side, partitioning, as it does, the continuity of the Croatian Adriatic Coast and hence making the South of the country something of an exclave. Proponents of this idea, as will duly be shown,

have had a different solution in mind: building a bridge which would connect the shore with the Pelješac peninsula.

tunnel versus bridge Ivan Šprlje, former Prefect of DubrovnikNeretva County, first suggested the idea of constructing a bridge to span the Adriatic, physically linking the separated parts of Croatia, and the peninsula to the south

would hereafter lend its name to all iterations of the project: the Pelješac Bridge Project. Although the Government of the day, hdz, were initially opposed to such an idea, they soon changed their tune and, after five years of planning, construction began in 2005: Ivo Sanader officiated at the grand opening. Concerns arose as construction proceeded, not least because of the spiralling costs (of which we will hear later). In addition, both a number

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of environmentalists and locals were afraid that the oyster beds in the Bay of Mali Ston might be affected, as well as damage caused to the seabed. Opposition to the project wasn’t limited to the local populace either; Professor Jure Radnić, the then Department Head of Concrete Structures and Bridges at the University of Split, was of the opinion that the construction of a connecting tunnel – constructed on b&h territory – would be the more rational option, and put his opinion into print in 2006.

A tunnel, he said, would “cost as little as 25% of the (then) current estimate for the bridge, and offer a safer solution for this unique ecosystem. The tunnel would be inland rather than underwater, approximately 5.5 kilometres from the coast, and the expertise to execute this project would be readily available; the size would be comparable to the Mala Kapela tunnel on the A1 Motorway. Such a tunnel would cost 90 million Euros, roughly, and, if we compare this figure to the 400 million Euros quoted for the bridge, I cannot see why the idea of the bridge is being entertained.”

That was Professor Radnić’s opinion six years ago, and he still stands by his comments: “I still feel that the construction of a tunnel, inland, is the best solution and, until such time as this alternative has been given adequate consideration, a ferry service would be sufficient to connect the peninsula with the mainland.”

It is worth noting that the learned Professor was not the only person who thought this way. Siniša Hajdaš Dončić came to take over the Ministry of Maritime Affairs, Transport, and Infrastructure following the resignation (due to poor health) of Zlatko Komadina, and he explored the possibility of such a ferry service as Radnić had suggested. Yet it emerged during this period that the ferry option might be as expensive as the bridge itself.

Ferry ports would need to be constructed on either side of the route, along with roads capable of servicing them. In addition, a minimum of two ferries would be required. This option, if it were ever really viable, was quickly shelved; not, it must be said, because of the costs per se, but rather because of the reduced flexibility of a ferry system when compared to a bridge (or even a tunnel). Had the Government pursued this option, it would likely have been fully functional by the beginning of Croatia’s membership of the European Union next June.

further concerns One of the main difficulties for all involved was the question of access to international waters for shipping out of Neum. The original plan was to build a bridge 35 metres high, but that would prevent all but the smallest of cargo vessels from passing underneath the structure. In late 2006, Prime Minister Sanader was able to reach agreement with his relevant counterpart, the late Ahmet Hadžipašić, Prime Minister of the Federation of Bosnia and Herzegovina. However, with the continual alterations to the designs, opposition resurfaced once more. In addressing the concerns of Neum’s shipping, the possibility of making the bridge a bascule bridge, better known as a drawbridge, was explored – yet dismissed as quickly as it was suggested. Eventually the height of the bridge was increased, to 55 metres, but this meant that

the bridge itself would have to be somewhat longer and wider, and as with all such changes, the price began to climb.

In August 2007 the companies chosen to construct the bridge were announced: Konstruktor, Viadukt, and Hidroelektra, all Croatian firms. The bridge was to be built within four years, and for a cost of 260 million Euros. Work began shortly thereafter, but in mid 2009, under Jadranka Kosor’s Government, construction was directed to move at a slower pace, so as to spread out the capital costs over a longer period of time, and thus relieve some of the pressure off the Ministry of Finance (who were struggling to find areas in which to make much needed cuts).

The Kukuriku Coalition had identified the Pelješac Bridge as something which was not indispensable, and so, on May 17th 2012, they scrapped the entire project and paid off the constructors.

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A Floating Bridge, Anyone?

The Adriatic Group, based out of Dubrovnik, has decided to enter the battlefield, so to speak, and they think that they can provide all the answers…by constructing a floating pontoon bridge!

It might sound strange at first, but according to James Price Chuck, CEO of The Adriatic Group, he and his team have done their homework.

“Floating bridges provide safe, cost-effective, environmentally-friendly and permanent solutions to transportation challenges on almost every continent. Norway has the longest floating bridge in Europe, while America has the longest one in the World. In fact, the said American bridge sees daily traffic of over 115,000 vehicles, which is equivalent to the entire population of the Dubrovnik-Neretva County. Our plan allows for a capacity of 42,000 vehicles per day, which is actually three times more than the current peak in border traffic. We feel that this rules out the need for upgrades for reasons of increased volume. Best of all, we could be finished in time for July 1, 2013.”

According to The Adriatic Group this concept would only need an additional 36 million Euros to complete, which could be sourced from private investors through a concessionary model.

They would be able to utilise the already-existing elements from the 2007 construction, thereby saving a considerable amount of taxpayers’

The original plan was to build a bridge 35 metres high, but that would prevent all but the smallest of cargo vessels from passing underneath the structure.

Since then the debate as to what is the best way forward has begun anew. There are, of course, those who feel that the original plan was the best, but officials in Bosnia & Herzegovina were not entirely displeased with the cancellation. They had long opposed the idea of a bridge, such as was being contemplated during the early planning stages, claiming that it would, in various ways, harm their economic future.

Following the official end of construction, Bosnia & Herzegovina brought forward their own plan: the Neum Corridor. This corridor would be, in name and literal appearance, a highway. Constructed as per normal like any other road it would cross ‘over’ the territory of Neum; it would be, for all intents and purposes, simply a rather long bridge.

There could be no entrance (or exit) to the corridor once it passed outside the Croatian

money. All materials needed for the construction are available through Croatian companies, specifically the shipyards, for the purposes of building the individual pontoons for the bridge, and it is estimated that the entire project would provide revenues approaching 9 million Euros through VAT (during construction alone; the construction of the materials is expected to raise as much as 6 million Euros in taxes) by summer of 2013, and 2 million Euros in VAT from toll fees per annum thereafter.

The bridge itself would use an access ramp, which would be a more traditional structure, leading (or transitioning) onto the floating segments.

The underneath of the access ramp would possess dimensions of 30 metres in width, 23 metres in height, and 15 metres in depth, so as to allow open access to the sea, from Neum, for 99% of all registered vessels. The CEO thinks it’ll be cheaper for users as well: “As things stand, it’s a costly trip, driving through Ston to get from one part of Croatia to the other. Our proposed toll rates are similar to those used on existing motorways in Croatia and Slovenia. When you compare that to the cost of taking, for instance, a ferry? A ferry would cost anywhere between 60 and 200 Euros.” A floating bridge would also be less intrusive on the skyline, and might actually prove a tourist attraction in its own right.

state, and that in itself was problematic. As the highway would be in Bosnia & Herzegovina it would be impossible for Croatian police (or any other body) to patrol it. There could be no access to the road from the immediate surrounds, nor could the road be monitored by Herzegovina’s police force. It would fall to eufor Althea (the eufor unit in Bosnia & Herzegovina) to supervise activity if it were to work, and eufor were already tasked with maintaining the Dayton Peace Accord. Ultimately, while the concept seemed simple, and it would cost a fraction (5 million Euros) of what the bridge was estimated to cost, it was unworkable from a logistical angle.

a bridge after all? or not?

Regardless of what happened in May, when the Government shelved the ‘bridge’ idea, it would be foolish to think

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Motorway to Pelješac Local road to Dubrovnik Proposed route of the Adriatic-Ionian motorway

the matter was ever at rest. You may have surmised by now, amongst other things, that the Pelješac Bridge has been something of a populist trump card for all governments, one of those things one would always want to build but aware one had better not.

The turnaround took place just last month. Minister for Foreign Affairs Vesna Pusić had only just returned from Brussels, where she was able to secure a promise of funding for the construction of… well the construction of something. The Croatian Government has yet to decide what to do, although past form would suggest that they plump for the original idea – irrespective of how unwieldy it might be in the face of some of the other options which have surfaced.

Still, there is no denying that there is plenty of political will within Bosnia & Herzegovina – in ardent opposition to any bridge being built. In order words, should Croatia proceed unilaterally there is plenty of legal ammunition the Bosnians can use to tie up any construction in the European Courts for an almost indefinite period of time. The relevant Croatian Minister, Siniša Hajdaš Dončić, arrived with a bang when he took office, but he may well have to prove his juggling skills with all the

The Tunnel The natural highway, coming east from Opuzen, runs along the southern edge of the Neretva fields (Kuti). There, a tunnel, 5.5 kilometres in length, could be bored under the territory of Bosnia & Herzegovina. A tunnel would have several benefits where a bridge would not: • It provides a permanent, firm, and efficient connection between both parts of the country without the need to stop and cross any border.

• It would be exceptionally cost effective. Pelješac

considerations to be made. He will, as they say, have to build a bridge, and get over it.

The construction of tunnels to overcome geographical hindrances is not a new concept; Croatia already possesses 12. Professor Jure Radnić is of the opinion that for Croatia to be connected a tunnel should be constructed. A bridge, he says, is simply not feasible: “Besides being too expensive, a bridge has a number of other disadvantages; a negative impact on flora and fauna in Mali Ston, and it can harm

is ‘naturally’ connected to the highway in Mali Ston, only a few kilometres behind Neum.

• A classic bored tunnel, with two tubes, would cost 50 million Euros on average. This would be five times cheaper than the current estimates for the Pelješac Bridge. At the same time a tunnel is safer, more reliable, easier to build, and cheaper to maintain.

• Given the opposition to the bridge from Bosnia & Herzegovina, it would also serve as a show of good faith and help to build better relations.

the developing aquaculture and economic development of the area – disrupting shipping in the gulf, and it would certainly hinder the entry of vessels into Neum.

It goes without saying that it would be an eyesore, and would also impact adversely on tourism, something which is of growing importance right now… If the bridge were to be discarded as an idea, it would allow unfettered development within the Port of Neum, which could only be of benefit to Croatia.”

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infrastructure

Motorway Privatisation Croatian pm Čačić has recently made quite a stir when he announced that the Government were thinking about privatising Croatia’s motorways. The idea may still be in its incipient stage, but it is an interesting one, and we turn to the expert to inform us about the benefits of motorway privatisation, in general terms.

W

hen governments try to manage infrastructure the results are usually disastrous. Wasteful investment, bloated bureaucracies and political interference are the frequent consequences of state control.

Government owned motorways are no exception. In most countries they are cursed with chronic congestion and delays. Typically there is overcrowding in some locations and overcapacity in others. The supply of road space is almost completely divorced from consumer demand. This is because motorway networks are supplied using methods that are thinly disguised versions of Soviet central planning. Politicians and senior officials decide where new routes will be built with little regard for the needs of road users.

Typically decisions are heavily influenced by special interests. Local or regional governments, together with large corporations, might argue that they need a new motorway to boost economic development in their local area. They will lobby fiercely for funding from national governments or the European Union. Unfortunately, this means that the preferences of consumers and taxpayers are neglected, and motorways get built in the wrong places. As well as building motorways in the wrong places, governments also charge the wrong prices. Toll levels are decided by politicians and bureaucrats rather than based on consumer demand. Indeed, in many countries there are no direct charges whatsoever. Motorways are free at the point of use. There is no price mechanism to allocate road space efficiently and, unsurprisingly, this leads to chronic inter-urban congestion in high-demand locations, as seen for example in the uk and the Netherlands.

The problems associated with state control make a strong case for privatisation. Private owners do not set prices for political reasons; they set them to maximise revenues

by Richard Wellings

Richard Wellings is Head of Transport at the Institute of Economic Affairs, a UK-based think tank. He is the co-author (with Oliver Knipping) of Which Road Ahead – Government or Market? which will be published later this month.

by attracting customers. And since drivers – particularly those whose time is valuable – do not want to be delayed by congestion, private motorway owners set toll rates at levels that ensure the free flow of traffic.

They also vary tolls to make maximum use of capacity. This has an important additional benefit. By maximising the use of existing infrastructure, privatisation reduces the need to construct expensive new routes.

Toll revenues also provide motorway owners with valuable information about where to invest. If prices are high due to strong demand, it may be worthwhile adding new capacity. However, if prices are low, this may be a sign that building new infrastructure would not be profitable. In other words, privatisation restores the link between supply and demand, making motorway investment responsive to the needs of road-users.

Privatisation also opens the door to innovation and entrepreneurship on the motorways. Private owners could, for example, decide to increase speed limits to reduce

journey times. Or perhaps they might allow heavier trucks to use their routes. They could also provide a range of additional services for their customers or even decide to make money from developing land alongside interchanges with shops, offices and housing.

By allowing entrepreneurs to discover new ways of serving their customers, motorway privatisation has the potential to inject much needed dynamism into the transport sector, bringing very substantial efficiency gains. These benefits depend, however, on politicians and state officials renouncing control. If governments transfer motorways to the private sector, but heavily regulate the new owners, then most of the benefits will be lost. For example, the regulation of prices could jeopardise attempts to tackle congestion, while speed and weight restrictions could limit the scope for productivity gains.

Many previous privatisation programmes have been undermined by the retention of tight political control. Privatised electricity markets across Europe have been rigged by governments to promote renewable energy, while privatised railways have been forced to operate under complex regulatory structures that have seen costs explode. These mistakes must be avoided when motorways are transferred to the private sector. The new private owners must be free to experiment and innovate without being stifled by the dead hand of the state.

The rewards from genuine privatisation will be enormous - lower congestion, massive efficiency gains and new investment where it’s most needed. And there is a further benefit that will be particularly welcomed by politicians: the prospect of huge flotation receipts from the sale of motorways to private investors. In an era when public debt is reaching dangerous levels, more and more countries are likely to take advantage of this potential windfall.

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Čačić on Motorway Privatisation Since Deputy PM Radimir Čačić declared, in midAugust, that he would be looking for a concessionaire for Croatian motorways in order to stabilise State finances and allocate funds for repayment of State debt, the public sphere has been awash with criticism regarding the issue. ‘Privatisation’ still seems to be a derogatory term, or at least the one, after the pillage and plunder of the nineties, distinctly remindful of all things unclean.

The main issues, however, lie elsewhere.

On one hand, the average motorist, uninformed or misinformed, is of the opinion that ‘privatisation’ by definition means that he will have to pay higher tolls. This is not necessarily true, as the problems that the Croatian motorway system is facing are not necessarily related to revenues, but rather to the ‘cost’ side of things. Put simply, the State has done a poor job at managing motorways, as perhaps best evidenced by a truly astonishing number of former HAC (Croatian Motorways) and ARZ (Rijeka-Zagreb Motorway) executives who have been either convicted of corruption and/or abuse of power or are standing trial as we speak. Or are under suspicion.

The other reason is of a purely populist nature, and, as usual, it involves the relevant trade unions. HAC, for instance, has roughly 2800 employees, and the real surplus, as in most State-run companies, is at least 30% (a conservative estimate). For years now the company has run job tenders – for rather well paid jobs, in Croatian terms – drafted in such a way as to give privileged treatment to war-veterans. True, there is nothing illegal or ignoble in any of this, but cronyism and corruption ran deep.

Though Minister of Transport Siniša Hajdaš Dončić announced in August that as many as 422 people would be made redundant (and further 87 in ARZ), the deadline he mentioned was the end of 2015. In spite of relatively costly severance and early retirement packages, he believes that some 300 million Kuna (40 million Euros) could be saved.

That said, regarding the aforementioned privatisation scheme, the government is looking to cash in as much as 2.5 billion Euros (three in some statements) from the 30 year motorway concession for 1050 kilometres of road, a welcome sum indeed, and the amount in question represents only the initial fee. Still, given that the State has spent

as much as 5 billion Euros on road construction in the last ten years alone, is that fair compensation?

Detractors of the idea of privatisation would certainly say ‘no’. We would say ‘yes’, governed by the notion that the State is a poor manager and that companies and resources are in place to function efficiently and make a profit.

None of these relative commonplaces, however, would have made so many headlines had not Deputy PM Čačič publicly declared that the Government was looking for a consulting firm to aid in the process of finding a suitable concessionaire and to develop a monetisation method. Attacked in turn

by Statists, Socialists and even the odd Chauvinist, Čačić cynically replied, as is his fashion, that he himself wouldn't take up the work of conceiving a model of motorway monetisation any more than he would take up performing eye surgery. Be that as it may, the Government will be issuing a tender for a consulting firm sometime this month, though a warning must ensue: tenders of this magnitude in modern Croatia have a particular knack for absolutely never coming to fruition. We shall only mention shipyards by way of example.

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event horizon

The Taxing Case of the Tax Collector Benjamin Franklin once opined that “nothing can be said to be certain, except death and taxes.” Of course while modern man can’t escape death, it may be that escaping taxes is all that remains. That is, until now. The Croatian Tax Authority have tired of such ‘practices’ and have published a list, a long list at that, of major tax debtors in a desperate bid to offer the state coffers some respite.

Having caused somewhat of a stir amongst the public, this ‘black list’, as it is affectionately known, seems to be giving results.

by Miroslav Tomas

T

he Croatian Government, which can hardly be described as ‘new’ anymore, has finally begun to take steps towards resolving that which might be resolve-able: the pressing insolvency which currently plagues the State. Always a sensitive matter, politically, the focus on cutbacks in Government spending has turned away from ‘low-hanging fruit’ and instead is now firmly upon the tax inspectors and whatever pennies they might be able to find. And that which they have found is an ever growing list of those who owe all manners of dues to their State – be it as result of (nationally recognised) poor business practise, or because of past, present, or expected insolvency.

The first step in the process were the changes in the General Tax Law, which suspended the clause referring to the secrecy of tax information, which in turn enabled the Tax Authority to employ a ‘name and shame’ policy, producing a list of all businesses (who owe at least 300,000 Kuna), sole traders (100,000 Kuna), or private

citizens (15,000 Kuna) who owed unpaid taxes for more than a 90 day period: admittedly not everyone on this list was necessarily deserving of their newfound infamy, but that discussion is for another day.

From this extensive list the Ministry of Finance is looking to collect in excess of 40 billion Kuna (almost 6 billion Euros) from over 100,000 debtors: the Ministry and analysts have conceded, however, that the best case scenario should result in roughly half of this amount recouped.

everyone’s problem The list, which was published during the summer break (or silly season if you will), has given the media something to fuss over in the absence of anything substantial, and it would appear that the continued coverage has had the desired effect, if only to some small extent. To begin with, the tax Authority have been able to boast about their early victories: 8 million Kuna extra was paid during that initial week of

publication; it must be said that this came mainly as a result of embarrassment on the part of various businesses which had grown accustomed to the sluggishness of the administration, and which traditionally might have paid their taxes regardless, however late they might be. The fact that, by the Authority’s own admission, this amount was less than expected, is more indicative of a lack of liquidity throughout the country rather than an immediate unwillingness to pay.

The question on everyone’s lips is how this state of affairs came to be so out of hand. The answer may never be forthcoming, but the insinuation that some of these tax defaulters were being aided by lax (if not criminal) attitudes within the Tax Authority is there: since the Government came to power at the beginning of the year, 17 of the 20 heads of Tax Authority’s regional offices have been relieved of their duties. Of course some of these tax defaulters are actually State-owned companies, and the Croatian National Television (hrt)

From this extensive list the Ministry of Finance is looking to collect in excess of 40 billion Kuna from over 100,000 debtors…

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According to Minister Linić, this was done, and will continue to be done, so that jobs would be preserved. This begs the question: who gets to decide which companies get assistance, and which do not? If any economic pressures can lead to the loss of jobs, then surely none of these companies can afford to pay taxes? Indeed, if this has been the existing practise for some time now how can the Tax Authority expect to wrest any amount of back-tax away from these firms, who have thus far enjoyed the favourable patronage of the Ministry?

Linić is now forming a ‘shock troop’ of 200 Tax Authority officials who will be tasked with assessing 20,000 companies from the ‘black list’, all with the aim of identifying those who might be given tax write-offs for the purposes of saving jobs. The Government might wish to effect change within the tax regime, but they lack the moral authority to do so with any real success.

the next step

are listed second on the ‘black list’. The list also features a number of privately owned companies, and given the amounts that are owed it is patently clear that they had been the benefactors of privileged treatment: in other words corrupt behaviour. According to law, a company can only operate for a certain period of time while owing taxes before their banking facilities are forcibly withdrawn – this has not been the general practise to date.

solution, anyone?

It isn’t the short term solution that the Tax Authority is seeking, but rather a lasting one. They have already said that one of their main goals is to put an end to alltoo-prevalent practise of utilising multiple dummy companies in order to withdraw funds and avoid paying various taxes.

To date, several hundred such companies have been identified and are on a short list for prosecution and seizure of assets. If this aspect of the Tax Authority’s activities is a

success, then it will reduce future tax defaults and, theoretically, lead to a greater tax take. This, however, has brought an alarming fact to light: a number of companies, such as pan Paper Industry (who occupy the third highest spot on the list) are themselves claiming a large amount of money owed from the State. In this case pan are in fact owed several times more than the amount of tax which they are liable for, meaning that the State is largely responsible for generating this specific instance of insolvency. When this came to wider attention, the entrepreneurial community took umbrage with the State’s hypocritical position, who was calling for improved responsibility from all these businesses when they were clearly choosing to act in a wilful manner. The State can also only be embarrassed by the large number of State-owned companies on the list.

It is common knowledge that a number of companies – privately owned companies – have been enjoying privileged treatment.

President Ivo Josipović was more optimistic and hailed the publication of the list of tax debtors as a step in the right direction. There is broad consensus of the righteousness of the overall endeavour, although there have been a number of blunders, such as the inclusion of the names of three minors (drawing strong criticism from the Children’s Ombudsman).

The exchequer has seen 50 million Kuna paid since this all began, and 300 names have been removed from the list; clearly the strategy is working, or at least it seems to be. Given that Fitch, encouraged by the actions of the Tax Authority, have maintained Croatia’s credit rating, it is unlikely that too many will view the list as anything other than a good thing.

What comes next is obvious: the Tax Authority will enforce that which can be enforced, and then resort to the seizure of assets in order to recover the remainder of any debt. The State Attorney’s Office is also expected to become involved at some stage, seeking to take action against those who are refusing to discharge their debts.

Whichever way this plays out, it must be that the taxpayer feels a tad more content, if not for the State Budget being augmented (thus reducing the likelihood of additional taxes being imposed), then for the fact that this move drives Croatia one step further along the path towards much needed fiscal discipline.

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in medias res

Janša’s Golden Rule For Andrej Bajuk, Slovenian Finance Minister, it was a moment of pure joy as the atm delivered a crisp 20 Euro note into his ready hands.

Behind him tens of thousands were celebrating New Year’s on the streets of Ljubljana, with each patron keen to pay for the first mulled wine of the year with their new currency. That was back in 2007…

by Sebastijan Maček

T

ip O’Neill, the former Speaker of the United States House of Representatives, coined the term “all politics is local”, and that has never been more the case than here. Prime Minister Janez Janša’s Government has been making efforts to put what we can call a Golden Fiscal Rule into Constitutional Law, so that the financial markets do not lose confidence in the Slovenian economy. However, such pragmatic, or responsible (call it what you will), manoeuvring is being received poorly by the Opposition, namely Alenka Bikar’s Positive Slovenia, and for a number of reasons.

Firstly, Positive Slovenia are a centreleft party and are, by definition, less enamoured of such fiscal rigidity as the Golden Fiscal Rule would necessitate. Secondly, this move by Janša has been seen as a preemptive strike, designed to tie the hands of his present and future political opponents; still, unable to convince the Slovenian parliament to give him the two-thirds majority support he required, Janša ended up with a problem of credibility.

a problem of credibility His position was already eroded when, in mid-July, members of his own coalition derailed his attempt at seeking a confidence vote on the fiscal rule and a law establishing a sovereign wealth holding, which would also double as a bad bank. A month and a half later, both motions appear dead in the water, although there is at least a cross-party agreement that a bad bank will, eventually, be set up in order to take over soured loans. The proposed bad bank would, theoretically, shore up the

ailing banking sector, while at the same time it would also be severed from the much criticised sovereign holding.

As the politicians returned from their summer break (seen as undeserved given their track record so far), public attention refocused on Slovenia’s many problems, and the fiscal rule has taken a back seat to what is seen as a far more pressing issue – specifically the problems facing the Slovenian banking sector; while the politicians were working on their tans Slovenia

likely to require a fresh injection of capital, which could total between 2-8% of Slovenia’s gdp.

a credible problem A quick glance at the calendar will tell us that it is no longer 2007, but instead some five and a half years later. That same glass of mulled wine will now set us back almost twice as much. Back then the elation was palpable, with those celebrating

Janša’s centre-right Government made it a centrepiece of their raison d’être to slash spending back to sustainable levels.

endured yet another downgrade. In late July Moody’s took the unprecedented step of lowering Slovenia’s rating three notches, from A2 to Baa: Standard & Poor’s and Fitch followed suit, if more cautiously.

It must be said that the banks themselves are the most immediate cause (the term ‘excuse’ might also be used) for these downgrades: Nova Ljubljanska banka (nlb) has already received hundreds of millions of Euros from the Government so that it may stay afloat. Nova Kreditna banka Maribor and Abanka Vipa, the second and third largest banks in Slovenia, are, like nlb, also State controlled – yet they are barely making ends meet. Moody’s, ever the optimists, are estimating that the trio are

exceptionally proud finally to be members of the Euro family, and of course it allowed the business community an opportunity to jack-up their prices during the changeover period. These days, sentiment regarding the Euro is just as ambivalent, but the feeling runs much deeper.

It is no secret that membership of the Eurozone affords many benefits: just ask the happy Slovenian shoppers in Austria and Italy, who can compare prices directly and no longer have to worry about conversion rates. But it also comes with caveats, foremost amongst them the loss of monetary independence and the provisions of the Stability and Growth Pact which aim to limit unsustainable fiscal imbalances. It

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was these rules on excessive budget deficits (Slovenia’s is currently well above the 3% of the gdp ceiling) which have been informing Government policy, opting for a distinctly Keynesian flavour of fiscal stimulus, as the Government sought to spend its way back to prosperity: of course such policy has left a huge hole in the budget, with very little growth to show for.

Janša’s centre-right Government, which has only been in power since the beginning of 2012, made it a centrepiece of their raison d’être to slash spending back to sustainable levels. It succeeded, albeit not nearly as well as they had hoped. Yet, in the process, they managed to antagonise the trade unions and other social partners, energise the opposition, and fritter away precious political capital for what seems, in retrospect, a modest achievement at best.

Referendums Date

Title

Yes

No

Turnout

June 6th, 2010

Slovenian Border Dispute Agreement Referendum

51.54%

48.46%

42.66%

Dec 12th, 2010

Slovenian Public Broadcaster Law Referendum

27.36%

72.64%

14.65%

April 10th, 2011

Slovenian Part-Time Work Referendum

19.93%

80.07%

33.99%

June 5th, 2011

Super-Referendum Sunday (3 referendums held on one day) . Slovenian Illicit Work Referendum . Slovenian Secret Service Archives Referendum . Slovenian Pension Reform Referendum

24.59% 29.12%

75.41% 70.88%

40.43% 40.41%

27.95%

72.05%

40.46%

45.45%

54.55%

30.31%

political manoeuvring gone awry March 25th, 2012

With the onerous burden of austerity dealt with (however successful or unsuccessful), the Government set its sights upon the implementation of the aforementioned Golden Fiscal Rule which would require future budgets to be balanced, or in surplus, for all but the most extraordinary of times. As has been mentioned, the Opposition resisted the attempts of the Prime Minister. Strangely, the idea of a Golden Fiscal Rule was well received, initially, by

Slovenian Family Code Referendu

Positive Slovenia, who were all too aware of the need to correct the nation’s finances, but as time went by the consequences of such legislation became more apparent to all. Should all parties within the Slovenian parliament be denied the ability to offer give-away budgets or cost-negative

bills, then the political advantage would stay firmly with the more conservative parties, namely Janez Janša’s Slovenian Democratic Party.

The previous Prime Minister, Borut Pahor of the Social Democrats, had attempted a number of measures aimed at fiscal reform, but these were a political disaster for his Government as all but one of the referendums held by the centre-left Government were heavily defeated by margins of 45% and 60%. One referendum, on the regionalisation of Slovenia, didn’t even reach quorum and was disregarded. The solitary victory, regarding a border dispute with Croatia, was only passed by a margin of 3%.

Consequently, a vote of no confidence was called and the Social Democrats and their coalition (the Democratic Party of Pensioners of Slovenia, Zares, and Liberal Democracy of Slovenia – the latter two failing to gain the votes needed to enter parliament in the subsequent general election) were forced out of power.

Janša, entering the office of Prime Minister, must have felt that his star was on the rise, but he soon found out that the electorate were as disinclined to support his referendums as they were his predecessor’s. In March of this year, the Slovenian Family Code referendum was defeated

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by a margin of 9%, and then it only saw a 30% turnout, lower than the majority of Pahor’s efforts. Clearly all parties were as unpopular as the others, so far as the populace were concerned.

With defeat in the referendum in March, and relative defeat in July, Janša launched an all out attack on the Opposition, calling them irresponsible for opposing the Golden Fiscal Rule (on a constitutional level).

Janša’s Government could just as easily pass the Golden Fiscal Rule as an ordinary law, but the temptation would be there to merely ignore such a law and that would not suit the Slovenian Democratic Party, whether for purposes of transparency, or for more egotistical reasons.

Slovenians love to complain that nobody knows where their country is, or what it is like, but this time it was different: the political circus which was unfolding in Slovenia had drawn the attention of the international financial press. As focus was given to the obvious inefficiency of this Government, and indeed the previous incumbents, there ensued the need for vociferous denials regarding potential bailouts from Brussels. While representatives from Slovenia and the European Union were quick to clarify the positions of all involved, the various ratings agencies were feeling less confident in proceedings, and took the knife to the Slovenian sovereign rating. The outcome is that Slovenia, despite there being no real change in economic circumstances over the past year, is now seen as a prime candidate for a bailout.

eu welcome?

The actions of the assorted ratings agencies have provided ammunition for critics of the Government: they say that energy was wasted on pushing the fiscal rule and on the sovereign holding, while it should have been the banking sector which the Government should have been sorting out, as it demanded the most urgent attention.

The Government now appears determined to tackle the huge book of delinquent loans, but it is unclear whether Slovenia possesses the competence to manage this task or whether European assistance will be required.

Janša, for his part, has already stated that he would not be the one to ask for a bailout from Brussels, which has led to speculation that he might be anticipating

…the political circus which was unfolding in Slovenia had drawn the attention of the international financial press. a political future away from the helm of Government. Of course there is also opinion that this was merely a well worded statement, designed to give him, for a lack of a better phrase, some space to breathe, interested as he is in keeping his coalition partners in line while throwing the opposition onto unsure footing.

Essentially, it is clear that no one is sure of where they stand right now: all options are on the table, including a technocratic Government, or even a new round of elections. Uncertainties are rife and, so far, any obvious solution eludes the Slovenian politick. The smaller parties are keen to avoid new elections for fear they might be wiped out (their successes in December were a result of dissatisfaction with the previous administration), while the bigger parties seem almost eager to pass on the baton of leadership, like some hot potato. They fear revolt from an ever increasingly disgruntled electorate, an electorate which has lost all faith in its politicians.

And all the while political commentators have been sounding the alarm, urging action lest the dreaded bailout be needed – a bailout which would necessitate further austerity measures which the Slovenians would be unable, unwilling to be sure, to accept.

Yet it may not all be bad news, if you choose to view it in a certain light: since the Government currently enjoys an approval rating which is below 20% – and the Opposition are not doing much better either – their fates might well be sealed irrespective of the degree of European involvement. And so, as the memories of the hated austerity measures, implemented in the name of saving the Euro and thus keeping Slovenia in the Eurozone, fade, the pendulum might swing once more. The Euro might no longer be a new currency to the Slovenes, but it is what’s needed if their banks are to survive. That, if nothing else, might set the political tone in Ljubljana this autumn.

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politics

The First Forty Days of Serbia’s New Government Given that the new Serbian Government was only formed on July 27th 2012, no wonder we’re still getting mixed messages, and by ‘we’ we mean both the Serbian public and the International community.

Then again, with Nikolić and Dačić riding shotgun, it is hardly surprising that the course has taken a different turn.

by Miša Milošević

F

ollowing his inauguration as President of Serbia, Tomislav Nikolić stepped down as President of the Serbian Progressive Party (sns), thus fulfilling his electoral promises and becoming the first citizen of the entire nation.

Such practices are quite commonplace (Josipović did the same in Croatia), but there is also cause to believe that the new President relinquished, at least nominally, his partisan responsibilities because he was physically and emotionally drained from an extensive electoral campaign: his replacement, Aleksandar Vučić, will reap the rewards, or suffer the consequences, come as they may.

Sns’s victory was entirely political; there was no ideological angle to the electorate’s decision to remove Tadić’s Democrats from power – they simply wanted a change, and there was only one real alternative available. ‘Tadić out’, rather than ‘Nikolić in’, was the mantra of the voter, if we’re being entirely honest with ourselves.

For similar, political motives, the Socialists turned their back on their pre-election pact with the Democrats and hitched their wagon to Nikolić and the Progressives, and this in spite of the ‘history’ they shared with Tadić’s party.

As a consequence, Serbia now has an overly political Government which generally seems to be lacking in the competencies required for these demanding times.

Aware that this is the case, the coalition looked to some notable characters from the ancién régime of the nineties. Dejan

Serbia now has an overly political Government which generally seems to be lacking in the competencies required for these demanding times.

Carević was a former member of the horror 6th Department of the Secret Service, which was in charge of physical eliminations and special assignments; he’s been appointed the head of cabinet of the Minister of Justice. Ivan Mrkić, known as ‘Milošević’s cashier’, because he was responsible for money which was transported from Serbia to Cypriot banks via diplomatic mail, is now the Minister of Foreign Affairs. Aside form Carević and Mrkić there are other examples of officials, not only from the time of Milošević but also from former Democratic Governments, who

have a somewhat murky past behind them.

Perhaps all of this was to be expected after pm Dačić, of the Socialist Party, was heard saying, “I am sick of October 5th!” October 5th is of course the date when Milošević was overthrown back in the year 2000.

consolidation of power The new parliamentary majority consists of sns (the ‘Progressives’), sps (the ‘Socialists’), urs (the ‘Regionalists’), and assorted allies. A simple crunching of the numbers shows that the Democrats were unable to form a Government by a mere two MPs. However, the effects of this failure, on the part of the Democrats, is more far reaching than is immediately obvious.

Once the Government was in situ, sns began to apply pressure on already-established local coalitions in order to, as Vučić put it, “reflect the general political situation in the country”. Already a number of local authorities, such as the Belgrade municipality of Surčin, which were previously held by the Democrats, have been replaced by an sns-sps coalition. It won’t be so easy to repeat the same in Novi Sad, where ds has been in control, but if sns manage to seize power there as well this might further increase the existing tensions between the more centralist sns and those who prefer the more autonomous status of Vojvodina.

Technocracy – or meritocracy, if you will – is not the word of the day, although all parties currently in Government had

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The Democratic Party has yet to identify the factor or factors which had contributed to their fall from grace.

pledged to its ideals prior to the elections.

Dragan Marković Palma, leader of ‘United Serbia (js) and former collaborator of convicted war criminal Željko Ražnjatović Arkan, explains that this was done for electoral purposes only: “It makes no sense in Serbia to follow this policy, and it was only done to win the elections.” It would be hard to find a statement more honest than that.

There was a rather dramatic example of the autocratic nature of this Government when Aleksandar Vučić exercised his Ministerial mandate: he immediately ruled out Serbia’s future association with

nato (though one suspects nato had not considered Serbia for membership), and limited the country’s engagement with them to Serbia’s existing Partnership for Peace obligations. In addition, it is most likely that Vučić will replace those Generals who have exhibited undue fondness towards the North Atlantic Treaty Organisation. At the beginning of August the new Director of bia (the Serbian Secret Service), Nebojša Rodić, was put in place. His name is best known for when he was General Secretary of the National Electoral Commission back in 1997, which was associated

with the fraud organised by the then ruling Milošević’s sps. In 2012, Rodić enjoys the reputation of being one of President Nikolić’s closest confidants.

The new laws regarding the National Bank of Serbia have already been criticised, by both national and foreign experts, as being detrimental to the independence of the institution. However, it is key to the Government copper-fastening its grip on power. According to the new law, which was passed with some urgency over the summer, Governors, Vice-Governors, and board members of nbs are now elected

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Structure of the Serbian Parliament Party Seats Serbian Progressive Party (SNS) Democratic Party (DS) Socialist party of Serbia (SPS) Democratic Party of Serbia (DSS) Liberal Democratic Party (LDP) United Regions of Serbia (URS) Party of United Pensioners of Serbia (PUPS) Social Democratic Party (SDP) New Serbia (NS) United Serbia (JS) Social Democratic League of Vojvodina (LSV) National Minorities, National Party, Wealthy Serbia Alliance of Vojvodina Hungarians Serbian Renewal Movement Demochristian Party (SPO-DPS) Individual MPs

by parliament. Now, while this definitely puts increased powers into the hands of the Government, it also creates a situation where the Government can deal with the fallout from the Agrobanka crisis in a more transparent fashion: time will tell whether the move was a power-play, intended to increase accountability, or a mixture of the two; we already suspect the former.

All of the above moves and appointments gave rise to the suspicion that Serbia might be regressing, and at a considerable pace. Advocates of the new establishment, however, simply concluded that Serbia had been suffering from a needless surfeit of superficial reform and fake democratisation, and these moves, strange as they might seem, were intended to create real change instead of a veneer.

north and south The abolition, for the most part, of Vojvodina’s status as a quasi-autonomous state was sure to raise the spectres of the past.

The courts, acting on a motion made by the Democratic Party of Serbia back in 2009, found Vojvodina’s autonomies (such as Novi Sad being the capital and its right of representation in Brussels) to be unconstitutional. To add more confusion into the mix, this ruling clashes quite rudely with the overall concept of regionalisation

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which was announced as one of the main goals of the new Government. Milošević, and his denying Kosovo and Vojvodina any degree of autonomy, does come to mind. It is likely that this will wind up in the European Court of Justice.

Still, if there is one hot potato (out of a great many boiling hot potatoes) which this Government would like to see cool down, without complication, is Kosovo.

While other areas requiring Government action, legislative reforms and budgetary deficits for example, might have multiple solutions including, but not limited to, temporary fixes and postponements, Kosovo, by contrast, is dictating its own agenda, at its own tempo – and all the while Belgrade has been forced to respond in order not to display any signs of weakness.

The Serbian President was keen to gauge international opinion on his new establishment and so, a couple of weeks ago, offered the Albanians the same status as enjoyed by the Germans in Belgium – essentially a form of substantial autonomy. The declaration was a bomb, and yet it failed to explode. In fact it did not make a sound. Nikolić clearly misjudged his audience, who were well aware that such a statement was designed to elicit a response.

When Kosovo already enjoys functional, if not sovereign, independence, the idea of

exchanging that position for federal autonomy smacks more of diplomatic clumsiness than of being a realistic idea.

Meanwhile the pressure is mounting on Belgrade, both from Brussels and Priština.

Nikolić and Dačić have both said, on separate occasions, that Kosovo would not be on the table for negotiations with the European Union. Brussels, on the other hand, is very much adamant that Serbia will not see a date for formal negotiations unless Kosovo is formally recognised by the would-be candidate State. Nikolić has announced negotiations on a higher level, which was news to those in Priština who were clearly unaware of these talks. The rhetoric, however, has been toned down somewhat in recent weeks and Dačić has recently been to Brussels to meet with officials there. Meeting with Herman Van Rompuy, the President of the European Union, the Serbian Prime Minister said that the Serbian Government was “ready to continue the [Belgrade-Pristina] dialogue not only when it comes to technical issues but also political issues”. As the European President might say, “Different colours. Tongues, towers, and gods. I search my way.”

vanishing point As might be expected, the Democrats fell radically out of the public view while the new Government began dominating the news cycle. Almost overnight the party, which had reigned in sovereign fashion for a decade, became irrelevant in the eyes of the media. Months after their unexpected defeat (or expected if you were a member of the Progressives), the Democratic Party has yet to identify the factor or factors which had contributed to their fall from grace. If Tadić is unable to identify those causes, then it may be that he himself will become the scapegoat, despite his previous successes in the political arena. Already the vultures are circling and Dragan Đilas, the current Mayor of Belgrade, is tipped to challenge the party President at the upcoming Democratic Party primary in September. Đilas does not possess the same charisma as the former Prime Minister/President, but he is recognised as being more entrepreneurial and is performing better in recent opinion polls. If they are to be prepared for the next elections, in 2016, Tadić might well have no choice but to step aside and allow new blood to make their mark.

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financial

The Agrobanka Affair: from Board to Prison During the first three quarters of 2011 Serbia’s Agrobanka declared a moderate loss of 18 million Euros: not entirely unexpected, given the state of the global economy. What could never have been expected, however, was the figure posted at the end of q4: a staggering 263 million Euros loss.

So then, what happened, and could it be happening elsewhere?

by Miša Milošević and Igor Dakić

Y

ou wouldn’t ordinarily expect a national bank with a 3% market share to find itself the centre of an entire news cycle, but that’s exactly what happened to Agrobanka when a closer look at its business dealings uncovered a systemic failure within the sector. The drama is far from over, but already the names of those individuals and companies associated with the crisis reads like a Serbian who’s who list. It was that q4 loss, 263 million Euros (already approaching 300 million as we speak), which brought everything to a head: the National Bank of Serbia was forced to take Agrobanka into administration, conscious of the fact that this single loss would wipe out the entire profit of the banking sector, hoping to avoid further scrutiny from the broader community.

who’s who?

This was the first case of instability within the Serbian banking sector, a sector which had shown a strong aggregate performance even during the worst years of 2008 and 2009: in that period only one bank, Metals banka, was taken into administration.

From our current point of view, Metals banka could have been the precursor to the Agrobanka case - or a test of a State takeover writ small: in 2009, the nbs audit discovered that the bank was authorising risky and unsecured loans, which resulted in the arrest of several of the bank's directors; in the follow-up, the Government

of Vojvodina decided to rescue the bank by releasing State Bonds, taking the stakes of almost 3,000 small shareholders into State ownership and turning the institution into today's Development Bank of Vojvodina. This has yet to reach its epilogue as the bank’s former officials, recently released from investigative custody, have brought criminal charges against the Government of Vojvodina, former Governor of nbs Radovan Jelašić, and a number of other State officials, accusing them of engineering an artificial illiquidity crisis within the bank in preparation for Nationalisation.

The Agrobanka case is astonishingly similar, if somewhat bigger: loans were granted to insufficiently solvent clients, those with insufficient collateral, as well as loans which were presumed impossible to repay. It is clear that there were simply too many irregularities and omissions to have escaped notice by the regulatory bodies of the National Bank; that is, unless there was some political pressure being applied from further up the food chain. The list of companies, whose debt will amount to an estimated 300 million Euros in bad loans (so far), is still being populated as the investigation is under way. The most prominent debtor is HabitPharm (and its eight subsidiaries), which was granted over 50 million Euros worth of loans; since HabitPharm has subsequently ceased trading, these loans will never be recouped. The owner of HabitPharm, Radoslav Sekulić, was a prominent member of jul, the political party founded by Milošević's spouse

Mirjana Marković, and was also known for his funding of Milošević’s defence at The Hague Tribunal. Other clients of Agrobanka include: Farmakom, whose owner Miroslav Bogićević is mentioned as a 'silent partner' in the recent acquisition of the daily newspaper Politika from its previous owner waz; Rudnap, now owned by Vojin Lazarević, notable electricity tycoon; Zekstra, owned by Dragan Đurić, President of the football club Partizan fc; pkb Imes, owned by Rajko Latinović, who in his turn served as President of Agrobanka’s

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Board of Directors at the time his company was granted the loan; and a number of other companies including privatised wineries such as Vino Župa, Navip, and the list goes on.

The whole situation exploded in May of this year when Dušan Antonić, the Director of Agrobanka’s Board, admitted receiving a bonus of 600,000 Euros in spite of his bank’s disastrous balance. It was this admission that triggered a spectacular public investigation; Antonić was immediately arrested, together with his son Milan, who also served on the bank’s Board of Management. In a matter of weeks, eight more people found themselves in custody. The list of these most recently incarcerated business folk included HabitPharm owner Radoslav Sekulić, various managers of the company's subsidiaries (who are the biggest debtors in total), as well as two official appraisers who

struggle to regain any modicum of public trust given the activities of its predecessor.

nova agrobanka Neddless to say, Nova Agrobanka itself couldn’t kick off without creating additional controversy: the National Bank of Serbia had availed of the funds held within corporate accounts and personal deposit accounts of the old bank in order to set up the new bank (State Bonds were subsequently issued in order to increase Nova Agrobanka’s capital to 90 million Euros).

Aleš Škoberne, representative of European Union investors in Serbia, chose not to mince his words: “The Government’s move with this new bank is state sponsored robbery on an unprecedented level. This is the biggest ever case of embezzlement in the history of financial operations and it can

The whole situation exploded in May when Dušan Antonić admitted receiving a bonus of 600,000 Euros in spite of his bank’s disastrous balance.

are accused of inflating the value of assets used as collateral. Politically there are accusations of mutual responsibility being tossed back and forth between Dinkić and Šoškić, both ex-Governors of the National Bank of Serbia, while the list of those connected with the whole scandal is headed by non other than former Prime Minister of Serbia, Mirko Cvetković. On the back of everything, Agrobanka had its licence revoked and the bank was forced to cease trading, to be replaced by Nova Agrobanka - who will, one may easily posit this opinion,

hardly be swept under the carpet with a high-profile series of arrests.” He also noted that minority shareholders, who had invested some 130 million Euros, had initiated two independent audits through PwC but that on both occasions the State representatives had failed to show-up. Following these snubs, though not directly as a consequence of them, the minority shareholders are awaiting international arbitration that will likely cost Serbia hundreds of millions of Euros and also seriously (further) undermine the State’s integrity.

autumn cleaning To add insult to injury, there is a consensus amongst commentators that Agrobanka could yet become the twin of Croatia’s Sanader affair, with systemic corruption uncovered within the corridors of political power; while the case of the former Croatian Prime Minister involved the flow of money, nefariously, through real estate and marketing firms, in Serbia the web is woven through banks, associated companies, families of note, et al. All of this would stymie any country’s efforts to build a trustworthy image in the international arena, much less one’s which is constantly at loggerheads with its neighbours, and all this on top of the fiscal damage suffered by the exchequer.

The upshot of this whole incident is that it has brought added pressure upon the new Government, who, aside of demanding a full investigation into Agrobanka (and beyond), also seem to be interested, as the daily Blitz reports, in merging all State-owned banks into one bank. Indeed, apart from the aforementioned Nova Agrobanka, the State has a majority stake in eight other banks (Komercijalna banka, Jubmes banka, Srpska banka, Čačanska banka, Poštanska štedionica, PBB, Razvojna banka, and Dunav banka), accounting for some 30% of market share. Naturally, the idea has both its champions and detractors, but, all things being equal, Serbia’s track-record to date would indicate that problems have largely germinated in those banks with partial State ownership, i.e., not fully controlled by the State.

Still, though this may give Nikolić’s people an excuse to tighten the reins even more, cause and effect in this instance are anything but clear: for let us not forget, let us never forget, that it is very difficult in any transitional economy to create an Agrobanka-like scenario, i.e., to suck that much money out of a financial institution, without, at the very least, silent consent or complicity on the part of certain political or pseudo-political structures.

In other words, no one could be blamed for viewing the motives of the politick with cynicism; but if the SNSSPS coalition are truthfully dedicated to reform, to transparency and the rule of law – they will act accordingly, regardless of the political capital lost along the way. It would be nice, wouldn’t it, to think that they will.

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legal

Serbia’s New Company Law The Law in question has been in effect for some time, but what does all this really mean? We believe anyone doing business in Serbia will find it relevant to find out that the liabilities have been enhanced, and, as our expert tells us, there are many more things one had better get acquainted with… as soon as possible.

I

n May 2011 the Serbian Parliament adopted a new company law, implemented in February 2012, and this has brought a certain degree of ‘novelty’ to the trappings of Serbian business. New Company Law is intended to change the way business is conducted: we will see the implementation of one- and two-tier management structures; an enhanced liability on the part of Managing Directors (and other responsible parties) and shareholders (it is envisioned that this will reduce the possibility of abuse within the company structure); a more detailed regulation for the protection of creditors; and the enhanced usage of electronic forms of communication between companies as well as between shareholders and the companies in which they have a stake.

While these changes are admirable in their own right, one should, nevertheless, stress the fact that the provisions regarding forced liquidation, as well the introduction of new criminal acts by the New Company Law, deserve more attention: specifically that ncl predicts a number of numerus clausus (‘closed number’) cases where the Register initiates any procedure of forced liquidation, thus resulting in the ultimate termination of that company.

Such cases can include the following: where a company is prohibited to perform its business activity; when a company, registered for a limited period of time, fails to inform the Register of its prolongation of activity; when a company does not legally comply with directives regarding its legal form as prescribed by the New Company Law; where the registered capital is in fact below the required minimum for such a company; where a company fails to submit its financial report to the Register by the end of the business year, and so on.

That’s not to say, however, that any breach of these conditions will necessarily result

by Nikola Janković

Nikola Janković, a senior partner at the Belgrade firm Janković, Popović & Mitić (JPM), received his LL.B. in 1985 from the University of Belgrade, and then his Master of Law degree in 1996 from the University of Vienna. Mr. Janković’s key areas of practice are Mergers and Acquisitions, Privatisation, Bussines and Corporate Law, International Trade, Commercial Law, and International Arbitration. nikola.jankovic@jpm.rs / www.jpm.rs

in the dissolution of the company at fault, but certainly one should take steps to rectify the situation at once.

If one of the aforementioned numerus clausus instances is true, then the Register will, ex-officio, register the company’s status as ‘in forced liquidation’, and advertise that fact on the Serbian Business Registry’s own website (leaving that information in place for at least six consecutive months). If, during the 12 month period following such an event, the Register does not receive a decision from the competent court that bankruptcy proceedings have begun, then that company will be deleted from the Register.

Any such assets as the company has would then become the property of that company’s members or shareholders, in proportion to their share in the company. From thereon, those individuals or groups will be liable to the company’s creditors during bankruptcy proceedings, and can only

be liable for up to the value of those specific assets. That said, the controlling member of a limited liability company and the controlling shareholder of a joint stock company, in the same circumstances, would be liable without limit, even after that company has been deleted from the Register. This should, it must be hoped, deter reckless business activity in varying sectors.

In addition to all of this, the New Company Law has introduced four criminal acts: if an authorised representative, or member, of the corporate body of a company, a liquidation manager, authorised court expert, auditor, or any similar expert purposely provides a written statement with false data (given that such a statement is prescribed by ncl as a condition for the initiation of a particular procedure); where a person with special duties towards a company executes a transaction, or undertakes an activity, in his or her personal interest, without approval, and, as a consequence, causes damage to the company; where a person with special duties towards a company breaches said duty in order to avoid some conflict of interest and, as a consequence, acquires some profit from the transaction; and where a representative of a company exceeds their powers, as determined by that company’s acts and by the acts of the relevant company bodies.

All of the above provisions enhance the liability of a company’s representatives, which should offer additional protection against any abuse within, or by, a company.

However, while these provisions are quite clear, it is also apparent that some of the solutions, as prescribed by New Company Law, are ambiguous and could well be subject to differing interpretations. Therefore, bringing Limited Liability Companies and Joint Stock Companies into line with New Company Law will require an inventive approach and a comprehensive analysis. This discussion, of course, is to be continued…

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human interest

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Going for the Olympic Gold: Serbia versus the World Objectiveness is not a trait one would strongly associate with any country in the region, perhaps least of all with Serbia. And, as Vlade Divac, former nba star and President of the Olympic Committee, takes the heat for what everyone in Serbia regards as underperformance in London, let us take a look at where things might have gone wrong – if indeed they did go wrong.

by Dylan Alexander

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hose who depart to do battle do so with the roar of the confident. The common imperative for the Serbian Olympic team, and the spirit of their preparations for London 2012, was simply to bring home the 100th Olympic medal in their country’s history, which – the medal count – as we shall see later on, is precisely the type stuff Balkan controversies are made of. Going for Gold, except for the few athletes and Olympians who made a more realistic prognosis for their own ability, was the very loud, and very convincing, promise made by many.

As the events began, however, it became clear that too many of the Serbian favourites had set their bar too high, drastically so in some cases. Was it that the team underperformed in general or was it that expectations were unrealistic?

the medal count… and the reality check The 100th medal boast was made by practically all Serbian media, eager to lift the confidence of their athletes but also to mobilise fan support behind a national cause.

Buoyed by this wave of over-inflated optimism the team set sail, figuratively speaking, for London. Vlade Divac, President of the Serbian Olympic Committee, added to the atmosphere by speaking about no less than ten medal opportunities: ambitious indeed, given that Serbian athletes were only competing in fifteen sports. Medals

were almost guaranteed in some disciplines: tennis, volleyball, shooting, water polo, and tae kwon do; the basketball and football teams did not qualify on this occasion.

It all started unravelling early on – athletes were leaving their fields of battle without victories, many in the early stages. Then, in a single day, Serbia found itself eliminated in all team disciplines but one, water polo, although a bronze medal would be secured in what many have

(shooting) all finished in 4th place in their respective sports; needless to say that Đoković’s underperformance came as particularly unsettling.

mentality & the (mental) media It is no wonder that the media should be the main culprit for generating the hype of high expectation: although 2012 was a better performance than either 2008 or 2004,

In essence, Serbian athletes punch above their weight while (it might be argued) their country punches below it. viewed as a testing match, with a puzzling refereeing performance against Montenegro. That bronze would be only one of four medals won by Serbia, with two in shooting, and a gold in tae kwon do. This tally put Serbia in 42nd place overall in the medal tables, together with Argentina and Slovenia, a similar performance to their efforts in Atlanta in 1996. Strong favourites such as Novak Đoković (tennis), Milorad Čavić (swimming), and Zorana Arunović

it is nevertheless being reported as a failure. With the exception of disciplines in which Serbia excels the media rarely pays any attention to the lesser lights of the sporting world: that is, until such time as they burst onto the scene before, or during, any major international competition or championships. Sensationalism sells newspapers, and in the quest for a larger readership many sports writers tend towards hyperbole with increased frequency,

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as in 2011 when a number of Serbian reporters pronounced Novak Đoković the greatest sportsman of all time. Đoković, though winning three majors in one of the best seasons any tennis player has ever had, felt very uncomfortable with this title.

There is very little one can do to avoid undue hype: public opinion, practically all throughout the region, can all too often find itself carried away on a wave of flashy headlines: according to a 2005 research study published in the Journal of Personality and Social Psychology, Serbia topped the list of countries in self-esteem.

True, the idea that a small, proud nation can clash with great countries in the sporting arena and come on top despite all the odds is hardly a new one; but if the primary result of such sentiment is that enormous pressure is put on athletes – who on occasion begin sharing the same sensationalist air rather than a more becoming sporting spirit – a problem emerges. As Emir Bekrić, the Olympic hurdler, put it (perhaps somewhat sarcastically): “I am so ready that I fear my own self.”

many Anas are quitting their sport because of the added difficulties heaped upon their young shoulders?

A constant lack of funding impedes the introduction of advanced training techniques and medical care, and of course the ability to travel to events out of country. What Serbia possesses right now is a self-made and authentic product, but also probably the best that the country will be able to offer in the foreseeable future.

the state of serbian sporting structures The Serbian Olympic Committee appears to be the most stable sports institution in the country. Various other clubs and federations are all too often shaken by scandal, dispute, and a constant lack of funding.

Yet the soc is merely the final stop before a readied and accomplished athlete sets off on international duty. To get there, an athlete must overcome much adversity, and the State is seldom there to aid talent. Dejan Udovičić, coach of the Serbian water polo team, could hardly have defined the notion any better: “Đoković and Čavić are not Serbian products”. By this he meant that these two international stars were not raised on Serbian courts or in Serbian pools, or even by Serbian coaches.

Sporting education and sporting culture, which create and breed athletes and athletic mentality, have been one of the poorest and most neglected areas in Serbia for many years now. Physical infrastructure in schools and clubs is in decay and certainly contributes to the lack of motivation within the younger generations. Ana Ivanović, the former world number 1 in tennis, was famously forced to train in an emptied out swimming pool due to a lack of adequate facilities. How

Vlade Divac said, after the closing ceremony of London 2012, that he was “happy with the credible 4th place finishes but as a sports fan I am disappointed with how our handball and volleyball players performed.

Ivana Maksimović, on the other hand, was an unexpected surprise, winning gold in shooting as she did. That, unfortunately, is how it goes in sports”.

A conclusion can be drawn and it is that in spite of those near misses, with tennis being the most obvious, Serbia did not fail in London. 42nd on a list of Olympic nations is a ranking which Serbia cannot repeat in any other competitiveness report or table, from the economy to technological development. In essence, Serbian athletes punch above their weight while (it might be argued) their country punches below it. If sport is the mirror of a society then we could instead judge Serbia by the catastrophic situation which mires her football clubs and leagues.

The latest battle cry is ‘Rio 2016’, and we can but hope that the Serbian athletes will be ready to fulfil their dreams there, but to do so they’ll need more support from the State, more brave and knowing coaches who are capable of drawing out those medal winning performances in spite of the circumstances, and less pressure from the media, no matter how well-intended.

100 Medals You Say? Having reached 97 before the London games, Serbia, only recently restored to individual subjectivity, needed three more medals to reach the magic number of 100. They got four.

However, as Serbia was only one of the constituent Republics within former Yugoslavia, it is natural that not all of these medals were won by Serbian athletes. For instance, the most successful Yugoslav Olympian of all time, the gymnast Miroslav Cerar, was Slovenian; at least a half of every medal-winning water polo team was composed of Croatian players; and so on. Still, as a legal successor to Socialist Yugoslavia, Serbia also inherited its membership of the IOC, and thus, in 1992, all of Yugoslavia’s medals won until 1988 (83 to be precise). The other ex-Yugoslav states were forced to reset their count to zero, just like Slovakia after the break-up of Czechoslovakia and all ex-Soviet states with the exception of Russia.

Serbian patriots would say that many of those medals were theirs anyway, given that citizenship, under IOC regulations, is reasonably flexible. Also, one need not be a diligent student of history to be aware that place of birth and ethnicity are two vastly different things within the Western Balkans.

Many might object to this line of reasoning, so, to stay objective (for lack of a better phrase), let us see how the countries in the region have fared over the last 20 years. Both the Summer and Winter games medals are included in the tally: Country Croatia Slovenia Serbia Montenegro Macedonia B&H

Gold 10 4 4 0 0 0

Silver 12 8 5 1 0 0

Bronze 11 14 11 0 1 0

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feature interview

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Shooting for the Stars: The Giovanni Cernogoraz Story We might have been on holiday during the Olympics, but that doesn’t mean we weren’t paying attention to what was going on. Croatia did particularly well in London, but of all their successes one stands out. How many people could say that they had been waited on by an Olympic gold medallist? We met for lunch with a father of two, Giovanni Cernogoraz: Slovenian born, ethnically Italian, and he shoots for Croatia.

S

EE It’s not often we get to speak with an Olympic gold medallist, and truth be told we could begin at any number of places. Let’s talk about the sport itself. Trap shooting is inevitably tied in with hunting: where do you fit in? Was it hunter-turned-Olympianhopeful, or vice versa?

GC Well, it’s no secret that I come from a long line of hunters, as well as trap shooters. I would have to say that both have been irrevocably intertwined for me since as far back as I can remember. The Hunters’ Code calls for practitioners to be outstanding shots, and in that way trap, or skeet, shooting, has evolved over the years. As for my own experiences, I fired my first shots back in the early nineties when a new shooting range opened near my home town of Novigrad. My father, who was in his time an acclaimed trap shooter in his own right, was invited to the opening ceremony and that, as they say, was that. As for hunting, well, that’s somewhat of a tradition in my family, so my father and I would take every opportunity we could to travel around the hunting grounds of

Istria. I think most people have the wrong idea about hunting in the 21st century: for the larger part it’s more about the environment and the preservation of wildlife and less about the actual shooting of game.

SEE It sounds almost like a way of life rather than a sporting discipline. Trap shooting doesn’t seem like the sort of sport one might take up after playing with other kids in the school yard. That said, as in any sport, it must have taken an inordinate amount of practise for you to get to that level. What sort of hours are we talking here?

GC Again, there’s a common misperception that this sport is all about guns. In fact, physical fitness is extremely important. You’re out there, standing upright for hours on end, training your shotgun, which weighs 4.5 kg, on fast moving targets. I could spend eight hours per day training of which only three might be actual shooting, using as many as 280 clay pigeons – the rest would be jogging and gym sessions. At the end of the day I need to be both physically and mentally fit for

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the task of actually picking up my gun. I could be the best shot in the world, but I need to have the concentration to make difficult shots, and let me tell you a shootoff for gold requires a lot of concentration.

I couldn’t have done that if I was lax in my preparation.

SEE That’s a lot of ‘pigeons’, and I doubt you could make decent soup from them afterwards. It can’t be cheap, even to practise. How supportive have the Government and the Croatian Olympic Committee been in your endeavours? It wouldn’t look good if you had to sell the family silver just to be able to compete.

GC Well, I’m fortunate in this regard – I’m part of an aspiring athletes program which is in turn part of the Croatian Olympic Committee. Thanks to our sponsor, the Italian shotgun shell manufacturer rc, I have received 10,000 shells per year, at least over the last three years. That might sound like a lot, but you have to remember I could be using as many as 2,000 per week for training alone. In the beginning my family supported me, and that was quite expensive. My first shotgun cost 9,000 Euros, and at the time a shell would cost me 30 cents and a clay pigeon 4 Euros. Without the dedication and love for the sport that runs in my family, none of this would be possible. Since my victory in London I’ve been awarded 100,000 Kuna by the State and have received a brand new Perazzi shotgun from the coc. But I can’t lie – even that does not cover all the costs. It is not a cheap sport.

SEE You mentioned the shooting range in Novigrad. I can’t recall seeing very many similar clubs anywhere around Croatia.

Handball, water polo, basketball – these seem to be the default sports for young aspiring Olympians, but how would one get into trap shooting?

GC Well, naturally handball and water polo are more popular, and there are definitely plenty of clubs to service these mainstream sports – but to say that there aren’t many shooting clubs would be an understatement. Out of necessity, such clubs must be situated in remote areas: we wouldn’t want to alarm any neighbours with all the shooting, and of course there’s a safety element involved as well. The reason such clubs don’t receive any real publicity is because the sport itself doesn’t – we will likely see an increase in memberships now,

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"… if I can inspire someone to try as hard, then I can be satisfied." following the Olympics, but it remains to be seen whether they can all stay the course. Given the costs involved, it is not something for fair-weather athletes, but if they have their heart set on becoming a trap shooter then all they need to do is find a club, apply for membership, and once that is cleared they can apply for a gun licence through their local police station.

SEE Snježana Pejčić won a medal in the 2008 Olympics, so perhaps it might be that Croatia is starting to grind out its own niche in this sport. Do you think there are other shooters, rising through the ranks, who might have medal winning potential? Could trap shooting be mentioned in the same breath as handball and water polo when it comes to podium expectation?

GC There’s no doubt that the popularisation of any sport is due largely to media exposure and, of course, competitors with superb results who can act as role models for the younger generations. I can try and be humble, but I am well aware of the amazing results I have achieved in my career and if I can inspire someone to try as hard, then I can be satisfied. There are a few youths who are rising through the ranks, and showing some very promising results, and we will see a jump in memberships over the coming months. Ideally, we need increased sponsorship and support on a municipal and county level if we are regularly to win accolades in the sport.

SEE Let us talk about your Italian citzenship for a bit. How is it that you found yourself competing under the Croatian flag, and would you ever swap teams, so to speak? Like Jakov Fak in biathlon?

GC True, as an ethnic Italian, I have an Italian passport, but I was never in doubt as to which country I would compete for. My only connection with Italy, other than my dual citizenship, is the fact that I finalised my Olympic training at the shooting range in Padova, and then only because their setup regards clay pigeon launchers, etc, was

identical to that which I would use in London. I’ve never been in doubt about competing for Croatia and would never consider switching flags, even if my services would be in high demand – after all, the Italians have dominated this sport for many decades.

SEE So what next for you? Is there any news on possible employment with the police or with the armed forces?

GC I have indeed been promised a position with the army by the Ministry of Defence, and hopefully everything will come into place soon. It is a good model, to reward Olympic medallists or secure them employment if they excel in less lucrative sports. Also, we should not forget that this model is shared by many other countries too.

SEE After your Olympic win the media were caught up in the romance of a waiter winning a gold medal… I don’t think any of them realised that your family owns their own restaurant. Are there any particular dishes here which you might put on the winners podium?

GC Well there’s certainly an air of romance involved – but I have to reiterate the support my family have given me throughout my career. My family have been in the restaurant business for as long as they have been hunting, four generations now. I would not have been able to put the same effort into my shooting if I held a 9-5 day job, and it was the flexibility with my restaurant hours which allowed for training in the morning. When I came back from London the City of Novigrad threw a huge party for me, a part of the evening of course taking place in the restaurant. As for picking a dish for the podium? I’m not sure I could single out anything in particular, but our restaurant – called Giovanni, though not after yours truly, but after my grandfather – is well known for traditional fresh seafood dishes, so you should certainly try the home made pasta with lobster, or our shrimp risotto.

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lifestyle

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Experiential… sailing.hr WayThe Next Great Naval Hope Be you a sailor or sportsman, an enthusiasts or an average layman, the romance of navigating by sail has a special kind of appeal for all.

But what if there were more to sailing than…just sailing? Why not use your sailboat as a means to an end, to provide you with a truly unique experience…

by Mark Ferris

B

usiness must be booming because there are roughly 350 charter operators in Croatia today, and they account for 5% of the overall turnover of the Croatian tourism industry. The business has accepted the inevitable evolution necessary to vouchsafe survival: where once upon a time sailing was regarded as a sport and leisure activity for the privileged few, it is now becoming ever more popular, and (more importantly) more accessible to those born to lesser circumstances. For those privileged sailors a sailboat was often a status symbol, perhaps a means to an end as wealthy playboys and heirs prowled the ports of the French Riviera, but for the more humble enthusiast, however experienced, the sailboat is an amalgamation of transport, accommodation, and the agent of the activity itself.

For anyone with sailing experience nothing we have said thus far will come as a surprise. Seas are conquered and winds tamed. Mistakes are made but a sailor learns, like any disciple of any other sport.

However, there is a third option available, specifically aimed at those who have thought about taking up sailing but have not found the intestinal fortitude needed to take that first step. It’s painless, and, more importantly, it’s affordable.

The term experiential sailing implies that an operator will organise a charter, skipper, full itinerary of destinations and activities – basically the entire package is shaped to suit the hobbyist. Now this might seem terribly similar to a self-organised

charter, but the differences are clear – not only does one not need to worry about any of the details, in depth expertise is assured; perhaps there is a beach not usually advertised by the local tourist boards, or some cove only accessible to those truly in the know. Or it might be that you just want to find all the hottest party spots on a holiday more bacchanalian than spiritual. Or savour the very best of wines...

party on There already exists a concept, party sailing, in the Adriatic since 2006. Flotillas of sailboats, hosting up to 200 young men and women, wind their way along the coast, eager to please the more base instincts.

Tibor Skala, co-owner and founder of sailing.hr spoke to us of his company’s efforts to revamp the traditional yachting bout, or come up with, if you will, a business model that would flourish in the long-term.

Tibor has been in the sailing business for 15 years, mainly organising regattas at first.

What struck him then – and the same is probably true now – was that even experienced sportsmen, after a day of sailing, had little else to do but to step ashore, perhaps have a meal, and then count the minutes until bedtime. It was no great effort for sailing.hr to begin organising various programmes, such as tours of local sites, guides to the best (and perhaps secret) restaurants, nautical attire fashion shows, and eventually clubbing programmes with

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Of course, not all hedonists focus purely on the party, and that is why the Wine and Gourmet Programme was developed. the famed Garden Lounge in Zadar. With Croatia growing as a party destination, the idea was to arrange an Adriatic cruise of a different sort – connecting one music festival with the next, and so on. This, they felt, would provide the customer with an experience far more memorable than a

mere night in a club. With Croatia playing host to several festivals during the summer months, it wasn’t long before the Party Sailing Programme was launched, in 2009.

We’ve already mentioned that it’s a simple idea; charter a flotilla of sailboats, hire your skippers, whatever style of dj, equip

one of the boats with a powerful sound system, and start selling your tickets. The party goers are free to move from boat to boat (though only once they’re moored, pontoon style), and are free to disembark at any port to take in the local scene. It’s not all about the party though, and tours

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wine and food can be enjoyed without the need for blistering sunshine or festival events on every other night. Sailing from spring well into autumn (before and after the winter winds make their mark), there are at least two reasons why the less ‘popular’ months’ (April, October...) may just take the prize: more favourable wind conditions and better fishing harvests, which translates into sportier sailing and richer menus, respectively.

experiences in the making

are provided so that the guests come away with some local knowledge and not just a hangover. In 2011 the programme was booming, and in 2012 it saw an amazing increase in popularity: numbers were up by 70%. Sunshine holidays are fine, and cultural holidays are fine, but what appears to be the order of the day is something more of a ‘wholesome’ experience.

true hedonism Of course, not all hedonists focus purely on the party, and that is why the Wine and Gourmet Programme was developed.

This journey will take the client from island to island, so that he (and she) might ‘discover’ the natural beauty of the wine trails, vineyards, and wineries. There’s the local cuisine cooked by veritable artisans, often using recipes unchanged for centuries. But you won’t have to suffer the spectacle of a boat ferrying 200 wild-eyed oenophiles; instead there is a limit of just 50 berths, ensuring a warmer and more personable atmosphere. After all, it is a touch simpler to seat 50 individuals in a restaurant rather than 200.

The Wine and Gourmet Programme has an added advantage over the party flotillas:

Sailing.hr took the next step and began offering customised tours for individual clients. Mr Skala explained to us that “there are several other companies which offer experiential sailing in the Adriatic, but they concentrate solely on party sailing. We took the initiative and offered a more exclusive service, but also a wider service.” These customised cruises tend to be single boat affairs, and, in the vein of Fantasy Island, “we never say no to a client, except if there is absolutely no way to provide what they want; if it’s feasible then we’ll do it!”

The entrepreneur then added that sailing.hr had “only scratched the surface of what is possible. We are looking further to diversify and have a Dive Sailing Programme on the drawing board right now, which naturally means that we would visit the best diving sites and organise the presence of diving instructors who are familiar with the nuances of local waters. There is also the Catch & Cook programme, where our guests are tutored in the ways of the fisherman – and anyone who has ever fished will know just how many baits and lures there are. Whatever gets caught gets eaten, and we’ll provide chefs to teach our budding fishermen how to prepare their catch. We won’t reveal any more past these two, as we’re still working on specific details, but you can be sure that we’ll roll those programmes out as soon as we’re sure we can provide the best experience available. I will mention that we’re considering expanding into Thailand, because that’s another experience altogether. There are some beautiful waters in Thailand, and we feel we could offer as good a service there as we have here.”

On this note, now is the time to leave you to your own devices, to decide for yourselves which route to take to the high seas. Until the next issue...

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good stuff

Three Slovenian Wines to Go For One might too often refer to Slovenia as being too small, yet the country is incredibly diverse in terms of its wine regions, each with a number of specific terroirs and characterised by a meticulous approach of the country's numerous winemakers. For what Slovenia lacks in quantity, they very well make up for in quality: innovative, quirky and above all of high quality are the wines introduced below.

Rose » Batič The Batič family vineyard is situated in the famous terroir of the Vipava valley, a place where grapes have been cultivated since Roman times, more specifically in the village of Šempas near the Italian border. The vineyards and the Batič farm date back to the 16th century, but the modern production process is renowned for using fully organic grapes and cutting edge winemaking that employs the newest technological solutions. The product is marketed in a most interesting-looking bottle, designed by Slovenian designer Oscar Kogoj. Among the various wines produced by the Batič family our choice fell on their rosé, made entirely from the cabernet sauvignon variety, the volume being 19 thousand bottles per annum. This dry wine is characterised by a rich body with a harmonic and fruity aroma, with fine bubbles to complete the overall impression.

It is best served chilled at 9 C with fish dishes and appetizers such as, say, the tuna carpaccio. Perhaps the best rosé made in this neck of the woods. (cca 15 Euros)

Carolina Rdeča » Jakončič Another wine from the Slovenian Littoral region, this time hailing from the Goriška Brda terroir, home of the very best of the country's red wine production.

The Jakončič family is dedicated to production of supreme quality and boutique wines, marketed under Jakončič and Carolina labels, and have won numerous international awards for their product. Rdeča (red) Carolina is made from a blend dominated by cabernet sauvignon, with an addition of merlot and cabernet franc grapes. It is matured for two years in oak casks, the end product being of garnet red colour with a distinctive smell of cherries which dominates the pallet and finishes off with a lasting aftertaste that gives away all its subtlety, reminiscent of chocolate and exotic spices. The serving temperature is between 18 and 19 C, and the wine is best complimented by venison and red meat dishes or mild cheese. This is a wine which definitely puts many of the famous regional reds to shame.

(25-30 Euros)

Rebula » Kristančić The Kristančič family are one of the oldest independent winemakers in Slovenia, and have marketed wine under their own label since as early as 1989, with domestic and international awards for quality pouring in from the very beginning.

Kristančič market their wines through three product lines; Kristančič, Pavo and Medana. As this is another winemaker from the Goriška Brda terroir, we decided to recommend a white wine made from the grapes indigenous to Brda and the neighboring Friuli-Venezia Giulia region of Italy, the Rebula or Ribolla Gialla variety, a variety that is believed to originate from ancient Greece but has

made its way to the Gorizzia region in Roman times. It almost became extinct after the outbreak of phylloxera in the late 19th century, but it has, over the last two decade, made quite a comeback and is now the distinctive white of the region.

Kristančič Rebula is a wine of deep yellow colour with a greenish tint, rich aroma reminiscent of citrus, peaches and tropical fruit, and possesses a decent dose of acidity which lends it exceptional freshness. It is best served chilled at 10-12 C as a companion to asparagus dishes, grilled vegetables and fresh water fish.

(12-15 Euros)

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to-do list

The Dubliners

Dinamo Zagreb vs. FC Porto

September 11th - 17th

September 15th

Int. Puppet Festival

Zagreb Ladies Open 2012.

Terry Fox Run

September 22nd

Il Divo

Ljubljana Puppet Theatre /

Tenis Centar Maksimir, Zagreb /

Belgrade Kombank Arena (20h) /

International biannual festival of children's and adult puppet theatre

ITF-level tennis tournament finals

World famous operatic pop quartet, very popular with the ladies

September 12th - 22nd

September 15th - 16th

September 11th - 17th

Bitef

various venues, Belgrade /

US Cars & Bikes Meeting

BTC City, Ljubljana (12h) /

Tutti World Music Centre

Belgrade International Festival of Modern Theatre

8th International U.S. classic vehicles meeting

Inauguration of the first World Music centre in Serbia

September 14th

September 15th

September 22nd - 30th

Le Corbusier

Dinamo vs. FC Porto

Exit Festival

Belgrade /

Maksimir stadium, Zagreb (20:45h) /

Petrovaradin Fortress, Novi Sad /

The work of the French architect as seen by the photographers of his time

Uefa Champions League match

Region's largest music festival

September 14th - 23rd

September 19th - 22nd

September 23rd

Ex Ponto

Turkish Fair

Terry Fox Run

/

Skenderija Centre, Sarajevo /

19th Int.festival of performing arts with emphasis on socially relevant themes

5th annual fair of Turkish industry and consumer goods

Humanitarian race

September 14th

September 19th - 22nd

September 25th

The Dubliners

Autumn Fair

National Gallery of B&H, Sarajevo

/

various venues, Ljubljana

SRC Jarun, Zagreb (16h) /

Mobing

Tvornica Kulture, Zagreb (21h) /

Zagreb Fair Grounds, Zagreb /

Sava Centar, Zagreb (9h) /

50th anniversary tour of this iconic Irish music quintet

International consumer goods and industry fair

Legal protection and indemnity education seminar

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