see magazine 13 by Igor Dakić

september 27th

in medias res / Slovenian Labour Reform: a Question of Responsibility

the industry / State of the Agricultural Nation human rights / The Merčep Trial: of Cynicism & Horror southeast europe · a fortnight in review

event horizon / Kosovo, the International Steering Group, and Organ Trafficking

no.13 / subscription only / 27th september 2012

of interest / A Serbian Permanent Cultural Revolution

Slim Pickings

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september 27th

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content

introductory epistle

Slim Pickings

Exactly what it says. North to South. fortnightly news

The Economy Of General Interest

08 10

in medias res

Slovenian Labour Reform: a Question of Responsibility

Reform or perish. Seldom has this been more true, but... the industry

State of the Agricultural Nation

Exactly how ghastly was the summer drought tally? 14 social economics

eureka's Eurostars Programme: Aim Higher

Involved in R&D? Need funding? Read on. legal

Croatia-B&H Border Agreement Ratification

Or not? As Croatians ponder the fate of two little known islets. in the margin

B&H Anti-Crime Offensive: of Puppets & Puppet Masters

Is Fahrudin Radončić getting a taste of his own medicine? human rights

The Merčep Trial: of Cynicism and Horror

And of old-school politicos testifying against the warmonger... event horizon

Kosovo, the International Steering Group, and Organ Trafficking 30

Kosovo free of International tutelage? Rather... politics

Montenegrin Parliamentary Elections: Change for Change’s Sake?

Or will someone finally oust Milo Đukanović? human interest

A Serbian Permanent Cultural Revolution

What is anti-Serbian? Or who? And why? And in whose opinion? 37

good stuff

Macedonia’s Wines: High Volume & Decent Quality

Wine lovers welcome, you won't regret these choices... to do list

september 27th

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

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september 27th

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 (Croatia) contributors Dylan Alexander (Permanent) Mark Ferrris (Permanent) Jerko Markovina (Permanent) 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

Slim Pickings Austerity, exiguity, leanness, meagerness, meanness, miserliness, parsimony, puniness, spareness, stinginess…need we go on with words synonymous to the phrase above? We needn’t. All is clear. Indeed, a small amount is left after others – or rather other things – have taken their share. The governments, North to South, seem to be pulling somersaults just so as to apply what little political capital they have left. All the money gone, the Slovenians have little choice but to liberalise the labour market, which is not to say that others in the region shouldn’t do the same. The Croatians are currently preoccupied with ratifying the old Tuđman-Izetbegović border agreement, concerning two desolate islets no bigger than a modern shopping mall, and may we posit a belief that governments usually have recourse to such initiatives when other, more pressing issues are better conveniently sidelined for the nonce. In Bosnia the media machinery is still after the tycoon and newborn politico Fahrudin Radončić, whose wealth and fame rather tend to remind the whole population that they indeed have been condemned to awfully slim pickings. The Montenegrins, preparing for another ‘historic’ election, won’t have much in the way of choice, at least that is what the political commentators, who ought to know, are telling us. Again, slim pickings. The new Serbian government, or at least some of its officials, somewhat lost and recognisably feudal, are entertaining the serfs over which they rule with reports of organ trafficking in Kosovo and with publication

of curious lists of those who have done Serbian culture unmentionable harm…and who themselves are mainly Serbs... As for us, we too found ourselves in a situation which possessed elements which might be cross-referenced with the title above. On Monday morning, September 17th, we saw that the SEE website had been hacked by a group calling themselves 'Serbian Hackers', although a statement, “You have been hacked by the Tesla Team,” could also be easily discerned on the see-magazine.eu domain under a prepossessing Serbian flag and a headline reading “Kosovo je Srbija” (Kosovo is Serbian). Initially believing them to be the same group who had caused our site to be considered an 'attack site' by Google, we discovered later in the day that they were in fact an unrelated group, and that they had already attacked several dozen Croatian based websites. The website was recovered, however, and fully functional by Tuesday morning, and it would appear that the attack, though unpleasant, was more of a show of ability than one of malicious intent. And believe me when I say that, without any false modesty whatsoever, if the crew in question could be bothered with the SEE website in the era of Wikileaks and quite serious cyberspace terrorist incursions, they too were undoubtedly condemned to some awfully slim pickings. As were we too. Having to get the site up and running again, there was no time to prepare the planned lifestyle topics, the result being an issue eight pages thinner than usual. I know the kind reader will forgive us.

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fortnightly news / the economy

pressures on slovenia might ease

eps & rwe to partner up

It's not a 'get out of jail' card, but the ruling, or lack thereof, of the German Constitutional Court will surely put the minds of both Government and Opposition figures at ease. The ESM (European Stability Mechanism) is to be the European Union's permanent rescue fund, and is meant to ensure that financial difficulties, encountered by various member States, can be overcome. The fund needed German involvement as their economy is currently operating in surplus, and while many German citizens were opposed to the idea, it will nevertheless go ahead. The court refused to block Germany contributing to the ESM, but have inserted an initial limit of 190 billion Euros - anything more than this will require special permission. What this means for Slovenia, and perhaps Croatia in due course, is that there will be a fund of 500 billion Euros available should the economic reforms put in place by the Government fail to trigger any real recovery. The money is not free, and will need to be paid back, but the main purpose of its existence is to make sure that future global crises cannot have the same impact as the one in 2008.

At the fringe of Aleksandar Vučić's (Serbian Deputy Prime Minister) State trip to Germany there was some very solid business being done. An agreement has been signed between the Serbian Electric Company (EPS) and RWE, a German utility company, regarding strategic co-operation in the future. This agreement, which was signed by the acting CEO of EPS, Aleksandar Obradović, and Peter Terium, CEO of RWE, consists of two parts. Firstly it references the development of Serbia's hydroelectric potential, and then the development of thermal energy power plants - specifically the construction of the Nikola Tesla 3 Power Plant. The ceremony was attended by the German Vice Chancellor, Phillip Rösler, Serbian Energetics Minister Zorana Mihailović and Vice PM Vučić. The leader of the Serbian delegation made note of his country's inclination to realise Nikola Tesla 3 as soon as possible, especially given its vital importance.

autumn prices shock

bosch moves into serbia German company Bosch has announced that they are to construct a new production plant in Pećinci, which will be worth 70 million Euros, towards the end of September. The first phase of this project is scheduled to start during Q1 2013. The plant is to employ up to 60 workers for a production floor measuring of the area of 22,000 square metres. The second phase is scheduled to commence in 2016, to be finished in 2019, and in this period as many as 600 workers are to be employed. The product in question? The humble windshield wiper and associated systems.

September has already seen a sharp rise in prices all over the region, with worse yet to come. As a result of the severe summer drought, which devastated crop yields and increased the price of livestock forage, the price of fresh meat is set to go up by as much as 30%, with a similar rise expected in associated products. This price hike will have knockon effects, with the farming community facing an inevitable decline in demand for their products, which will in turn put many breeders out of business. Already the new price of fuel, which is the highest in the region, has led to a rise in the cost of sunflower oil, dairy products, chemicals, bread, heating, and public transportation. Smokers, too, will be affected by the recent excise increases, as their cigarettes will now cost them that much more. There is already a sunflower oil shortage in some areas as smaller producers are stockpiling produce and shoppers are buying all that they can in advance of the eventual shortage.

b&h at risk of gas shortage As a result of a debt, amounting to 8.5 million Dollars, owed to the Chinese company Sinochem International by local company Energoinvest, Bosnia & Herzegovina is in danger of seeing its gas supply terminated. The High Court in London and the Commercial Court in Zagreb have both ruled that Energoinvest must pay the full amount, which is the sum of the original debt, 3.7 million Dollars, plus interest. Energoinvest has thus far pledged to cover the original debt and is seeking forgiveness of the interest penalties. Sinochem have rejected this proposal and have made clear their intention to begin seizure of property and assets belonging to Energoinvest, some of which are in Croatia. Sinochem also intend to appeal to the Hungarian judiciary to prevent Bosnia & Herzegovina from importing Russian gas through their country. If this were to happen, Bosnia & Herzegovina would be relying on what meager reserves they have accumulated.

prevent closes deal with bmw Prevent, a car component producer from Zenica in Bosnia & Herzegovina, have just recently sealed a deal with BMW to produce seat upholstery for the BMW 1 and BMW 3 series of vehicles. It is expected that they will be making enough for 400 cars per day, which will ensure employment for 150 workers. This new contract allows Prevent to remain the country’s premier exporter, a position it has held for the past three years. Prevent also operates as a supplier of several renowned car producers. In addition to their upholstery operation, they also make break discs and safety equipment.

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imf in belgrade Representatives of the International Monetary Fund were in Belgrade recently, though only for a short visit. They were in town to assess the current macroeconomic situation in Serbia, and to look at potential future growth. While there the IMF raised concerns over the Serbian fiscal crises, specifically with respect to the recently adopted laws regarding the National Bank of Serbia, which are seen to be undermining the bank’s autonomy. The new financial agreement was not on the agenda, but the delegation is expected to return later this year, to offer insight into the upcoming budget. The IMF is not happy with the current half-year budget proposal, in which savings of 20 billion RSD are counterbalanced by an increase in expenditure amounting to 25 billion RSD. Pavle Petrović, head of the Serbian Fiscal Council, noted that relations are already impaired between the IMF and Serbia. The IMF has indicated they would like to see Belgrade act on reducing the deficit and public debt first.

mercator considers leaving albania The Slovenian retail giant Mercator is considering leaving the Albanian market because of the oversaturation in the marketplace. Mercator has only been in the Albanian market since 2009, but already the global crisis has had a large effect on the economy there. With most Albanian emigrants in Italy and Greece, where the Eurocrisis has hit hardest, there is less money coming back into the Albanian economy. Mercator has also hinted they will wind up operations in Bulgaria in an effort to rationalise their business practises. It may also be that Mercator wishes to remove any weaknesses from their portfolio in the wake of a rumour regarding a renewed takeover bid from Agrokor.

serbian vat rates to increase As of October 1, 2012, VAT rates in Serbia will rise from 18% to 20%, while the lower rate, for food and other essential goods, will remain at 8%. Excise rates on tobacco products, as mentioned above, are set to increase by 7.7%. Other changes include higher taxes on diesel, dividends, and bank interest. Ivica Dačić, the Prime Minister, has already assured his citizenry that those who would be most affected will be protected, which suggests that salaries and pensions will not be fixed at their current rate, at least not in the near future.

agrokor/mercator love affair continues The ‘will they – won't they’ saga of the Balkan business world looks set to continue into another season as it has been rumoured that the proposed takeover, which floundered last year, was on the agenda yet again. Following the expansion of Delhaize Group Sa in the region, it would appear that Agrokor are keen to avoid being left behind. The Mercator takeover was valued at over 1 billion USD back in February, but Mercator had been seeking to structure their business model since then, so as to avoid a takeover. All that is certain right now is that this saga is likely to go on until 2013.

the russo-serbian connection Alekander Konuzin, the Russian Ambassador to Serbia, has announced that his country will provide a line of credit, totaling 800 million Dollars, to the Balkan state. This line of credit was dependent on there being very specific projects identified and available. The overall investment will be centred on the construction of the Southern Gas Pipeline, the production of heat and electricity facilities, and the chemical industry. The various projects will make use of contractors from outside Serbia as well as domestic sources. The Ambassador, who is nearing the end of his time in Office, has said that he has a positive impression of the new Government, and that he sees them as partners who will work on furthering economic relations between the two countries.

new oil field discovered near vinkovci INA has made public the information that a new oil field has been discovered within the already active Privlaka Oil Field near Vinkovci. The new find, which was a result of an exploratory drill, indicates that there is a substantial amount of oil present, at a depth of one thousand metres. It will require further exploration so as fully to gauge both the quantity and quality of oil, but INA is confident in the yield, estimating that eventual output will approximate 600 barrels per day. This discovery, like INA's previous two finds, has been part of the Croatian oil company's research in the Panonian Basin. INA has invested over 3 million Euros in this new drill site to date.

charger network for vojvodina The Faculty of Technical Sciences, Novi Sad, and the regional electric company Elektrovojvodina have begun work on a project which will result in the installation of a number of electric car chargers, which will span the entire Vojvodina region. For the time being this project is entirely conceptual, but those involved will soon focus on developing a business plan. Officials from Elektrovojvodina have already said that their firm has the capability and know-how necessary to provide these road-side chargers, as well as the logistics needed to process payments. Elektrovojvodina say they are looking to provide the region with a sustainable and ecologically friendly solution for future motorists.

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fortnightly news / of general interest

slovenian presidential elections just around the corner

more tales emerge from the agrobanka scandal

Slovenia’s Presidential elections are only two months away, and are scheduled to be held on November 11th. Thus far just three candidates have made their intentions to run known; the incumbent Danilo Türk, former Prime Minister Borut Pahor, and MEP Milan Zver. Nomination for a sitting MP or elected official requires the backing of ten of his or her peers, while an independent candidate can gain nomination on the back of 5,000 signatures from the public. Although Pahor has the necessary backing, from the Social Democrats, he has also vowed to gather as many as 3,000 endorsements, perhaps in a show of popularity. The main ruling party, the Democrats (SDS), are giving Zver their support, and he also has New Slovenia in his corner. Candidates have until October 22nd to withdraw their nomination from the ballot paper. SEE will be reporting on the elections as the day draws nearer.

Keeping with Aleksandar Vučić for the time being, the Deputy Prime Minister has made claims that Farmakom, one of the companies implicated in the Agrobanka affair, was forced to take a stake in Politika, a Serbian newspaper. It is a claim that Miroslav Bogićević, owner of Farmakom, denies vehemently. The idea is that Farmakom were pressured into purchasing a controlling stake in Politika in order to save jobs which were at risk.

denis & denis revival? Denis & Denis was the band which ushered Yugoslavia into the electro-pop age, and after an absence of over twenty years, D&D are announcing plans for a new Croatian tour. The duo, comprising of Davor Tolja and Marina Perazić, first came to the attention of the region with their debut album in 1984, taking the charts by storm. Two more albums followed, in 1986 and 1988, but internal pressures took their toll and they parted ways. Perazić tried to make a career as a solo vocalist but failed, while Tolja, who produced the band’s albums, continued on with some success. The reunited duo has announced plans to perform in their native Rijeka on New Year’s Eve, with their nationwide tour to follow. SEE will, for the benefit of our readers, post some of their videos on our Facebook page and on our Twitter feed.

vučić does not rule out referendum Following his return from Brussels, the Serbian Deputy Prime Minister has said he expects a date to be set shortly for the beginning of EU accession talks. Aleksandar Vučić said that he and the Government will set about implementing various agreements which were reached with Priština during the previous administration. He then went on to accuse Tadić of trying to buy the election by signing every document put in front him, without any concern to who would actually need to deal with the political fallout. When asked whether the Serbian people would be forced to choose between Kosovo and the European Union, the Deputy PM replied that he had not seen any proposal that had suggested as much, although he did add that “a referendum is always possible as the last means through which citizens can voice their democratic will”.

building bridges It has been reported that the Society of Turkish-Croatian Friendship is seeking to rebuild the Sultan Suleiman Bridge, which once spanned the River Drava in the city of Osijek. The original bridge, which was wooden, was built in 1526, at a time when Croatia was under the rule of the Ottoman Empire. It was burned down in 1686, by the Hapsburgs, following the expulsion of the Turks from Croatian soil. The idea to rebuild the bridge came on the back of a TV show, ‘Suleiman the Magnificent’, and the local tourist organisations are already seeking funding from the European Union for the project, while the Turkish Ambassador to Croatia, Burak Özügergin, has put his full support behind it.

ice fever hits the pula amphitheatre Ice fever indeed, as the Zagreb club KHL Medveščak took their base of operations to Pula, on the Istrian Peninsula, for three days of non-stop ice hockey. It was the Arena, no less, which was the venue for this event, the third largest structure of its kind still standing, after those in Rome and Verona. Though ordinarily used for festival and concert purposes, this time round the Arena rather reverted to its ‘original’, more gladiatorial function. Although no blood was spilled, and ice replaced sand, the Bears put up a memorable performance, such as their name suggests, losing to Olympia Ljubljana but getting the better of the Vienna Capitals. What caught the most attention, however, happened on the second day, as Medveščak’s veteran team took on their counterparts from Gazpromexport, ice hockey’s equivalent of the Harlem Globetrotters. After the match Alexander Medvedev, President of the Russian KHL league, offered a three year contract to the Croatian Franchise, mooting a possible sponsorship deal (10 million Euros per year) which would provide the financing necessary to compete on Russian soil (or ice, as it were). Medveščak officials have already said that, if the deal goes ahead, they will leave their second team to compete in the EBEL in lieu of the first team.

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but not all is well in sports…

no country for old dialling codes

The ice hockey teams might be flying high but Croatians abroad have been shocked to learn of allegations against Toronto Croatia FC who, it is claimed, fixed football matches during 2009. On that occasion the players in question were reported to have received $15,000 to allow their opponents to win – even though it is not clear whether their opponents at the time, Attak, were aware of the bribes. Further allegations have been forthcoming since then, with the Canadian television channel, CBC, broadcasting an investigative documentary, identifying the existence of match fixing in Croatia, Germany, Austria, and Slovenia.

Contrary to reports in the media Kosovo will not be changing its international dialling code, currently Serbian, to match that of Albania. Reacting to the news that this might be the case, Belgrade issued a formal protest to the International Telecommunications Union, saying that such a move would be illegal, and that Serbia would then lose technical control over voice traffic within the Kosovo territory. However, Belgrade and Priština are quite close to agreeing upon a new, neutral, area code for Kosovo. This agreement is supposed to guarantee uninterrupted service for at least one of Serbia’s mobile operators. The Priština daily newspaper Koha Ditore has reported that Boris Tadić, former Serbian Prime Minister and President, had, while in office, refused to countenance the idea of a new area code for political reasons. Still, despite the current Serbian Government’s stance on Kosovo, they have proved more flexible on what should be a relatively easy problem to surmount.

waiting for godot: erdogan visits b&h

dačić makes official visit to b&h Serbian Prime Minister Ivica Dačić was recently in Bosnia & Herzegovina, where he visited both Sarajevo and Banja Luka. It was at the latter that he addressed a gathering of the Socialist Party faithful, saying that “(our party) never supported war crimes, we never supported genocide, and we never supported the creation of Greater Serbia. We just supported the rights of Serbs wherever they live, here in Bosnia, in Croatia, in Kosovo and Metohija, we were with you when it was the hardest”. He added, however, that he would “do everything for Serbs to live in peace, no matter where they live. I will negotiate a million times, but the international community needs to know its boundaries.” The latter statement is likely a response to German pressure to recognise Srebrenica as an instance of genocide, something which President Nikolić has refused to do so far.

The Turkish Prime Minister, Recep Tayyip Erdogan, paid a two day visit to Bosnia & Herzegovina, accompanied by his wife and daughter, as well as a rather impressive delegation. Joining the PM were the Deputy Prime Minister and the Ministers of Foreign Affairs, Economy, Defense, Maritime Affairs, and Energy and Natural Resources. Erdogan met with President of the Presidency Bakir Izetbegović, Chairman of the Council of Ministers Vjekoslav Bevanda, as well as with other members of the Presidency, Željko Komšić and Nebojša Radmanović. There were several meetings held, with each member of the delegation pairing off with their opposite number. Erdogan stated that he believes in a unified B&H, as a country where all ethnic groups can live in harmony and ultimately become part of the European Union – even before Turkey gains membership. The Prime Minister also paid his respects at the grave of Alija Izetbegović, calling him a “wise and persistent man, greatly admired by the Turkish people”. Erdogan was awarded the title of Honorary President of the Srebrenica Council of Conscience for his support in the construction of the memorial after the 1995 genocide. The Turkish leader was also given a plaque, ‘Isa Beg Isaković’, for his contributions to the preservation of Bosniak culture, during a celebration of the 550th anniversary of the founding of Sarajevo. On a populist note, when addressing the students of Sarajevo University, Erdogan called for a higher birth rate, saying that “Bosniak couples should have at least five children to make up for the lives lost in the war, and help make Bosnia a young, vibrant, and prosperous society”.

kerum in hot water once again The controversial Mayor of Split is at it again. Calls have been made by a number of Croatian-Serb groups, as well as Croatian MP, the ethnic Serb Milorad Pupovac, to have Kerum prosecuted for hate speech following his most recent verbal blunders. Željko Kerum, who in the past has uttered such gems as “Serbs should know their place”, and “Serbs never brought anything good to Croatia”, has once more managed to capture the headlines with “Serbs are the source of all problems in Croatia”. Pupovac described this statement as an incitement to ethnic hatred and appealed to the parliament to deal with the situation as they would with any other elected official. Kerum also offered his opinion that Croatian banks and Croatian media companies were controlled by ‘Serbs and Yugoslavs’. Although the above stated can only remind us of those most clichéd anti-Semitic statements, only with Serbs rather than Jews in the leading role, most legal experts conclude that while Kerum’s words were ill-thought-out, and repugnant, they do not warrant criminal action.

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in medias res

Slovenian Labour Reform: a Question of Responsibility The Government is lining up what international support it can muster, the trade unions are bracing for a fight which could determine their future (be it guardian of the working class or irrelevant anachronism), and businesses are sensing the opportunity of a lifetime. It’s time for labour reform in Slovenia. by Sebastijan Maček

e’ve been here before – over the past two decades, successive Governments have made attempts to reform the Employment Relationships Act, which is a voluminous law, based on Yugoslav-era legislation that deals with virtually all aspects of labour rights. Many provisions have been changed but, apart from a significant overhaul in 2002, they have all fallen well short of fully fledged reform. This time it may be different; the Government is pushing for solutions which alter the basic tenets of employment contracts. The outcome, whatever it may be, could very well determine the Government’s fate, and Slovenia’s fortunes.

dual labour market Slovenia is a textbook example of a dual labour market. Older workers, and those in the public sector enjoy relatively high job security and good working conditions, while many in the private sector, particularly youths entering the labour market, are condemned to serial short-term contracts which provide little in the way of job security. Indeed, Slovenia has the fifth largest share of workers with contracts of limited duration (about 17%), according to data provided by Eurostat, the European Union’s statistical office. Not only has this been a source of intergenerational tensions, it is also a cause of bitter fighting between businessmen who employ the workers, and trade unions who

Janša has repeatedly said that Slovenia will face bankruptcy in October if it does not act. seek to protect them . Unionists are brandishing the figures from Eurostat to underline their fears regarding the ever increasing job insecurity in Slovenia, but businesses insist they resort to short-term contracts if only because this avenue gives them, at least, minimum flexibility in adjusting their workforce to the existing economic conditions since workers on openended contracts are virtually impossible to fire – and when they are, it is very expensive for the companies.

the change The Government wants to change that. Employment contracts of limited duration are out, to be replaced by a single standard contract ostensibly providing greater flexibility as well as security for the workers. To achieve that, new contracts would include a two-year “flexible period” during which it would be easier for a company to fire a worker. In the first five months of this sort of contract, workers could be let go without cause and with no severance, a period euphemistically called “probation”. Up to the 24th month employers would still have broad discretion in

terminating contracts, whereupon the firing rules would tighten to roughly current levels. Since the rules would apply only to new contracts, the draft legislation introduces a provision restricting contracts of limited duration in a company to 10% of the workforce. Add to that shorter notice periods, lower severance and unemployment benefits, and many small tweaks required to reduce bureaucracy and make it easier for companies to let go of unwanted staff, and the proposal starts to look like genuine reform. It appears to address many of the shortcomings of the current system, which has been (sometimes unfairly) described as incredibly rigid and a drag on economic growth. The problem is, nobody seems to like it – and for very different reasons. It was no surprise that trade unions immediately raised their voice. Pergam and ks 90, two big industrial unions, claim that these solutions, as suggested, fail to address the segmentation of the labour market or balance greater flexibility with greater security in the elusive flexicurity equation. Considering the rampant abuse of fixed-term contracts, which are theoretically limited to three years in a rule that

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is simply bypassed by sending people to the unemployment line for a couple of months to rehire them later, they argue that workers will simply be let go after the expiry of the five-month probation. What was more surprising, though, was the outright rejection of the proposal by corporate bosses and their various associations. Instead of accepting the new standard contract with open hands, as the Government appears to have expected, they said it would do nothing to address the underlying problem plaguing business – a lack of competitiveness. In fact, the Manager’s Association, an executives’ lobbying group, said labour costs would rise. The powerful Chamber of Commerce said that the proposed reform would not achieve the desired effect of improving flexibility, or lead to the lowering labour costs, and would indeed lead to more bureaucracy.

the kerfuffle The Government’s proposal is by no means final. It is certain to undergo changes as the social partners sit down at the negotiating table at the end of September in an attempt to find solutions acceptable to all.

Agreement may, however, prove elusive, as all parties stand to lose a lot. Businesses, complaining for years about rigid labour law, are unlikely to accept half-baked solutions that will do little to address actual labour market problems. The unions are pressed against the wall; their mission is to fight for workers’ rights, but there will be nobody around to fight for if companies continue to go under at an alarming pace. Unions have already lost a third of their membership in the past five years, according to a recent survey by the Faculty of Social Sciences in Ljubljana. The degree of unionisation has fallen from over 40% in 1999 to below 25%, as the manufacturing sector has shrunk with the rapid rate of deindustrialisation. The only major union strongholds are the public sector and the industry, which is rapidly shrinking, while they barely register in the services sector. It is the Government, however, which faces the biggest dilemma of all. Does it accept a watered-down version to placate the unions, or does it side with corporate bosses, whose credibility has been badly tarnished by the self-interest which drove many to embark on management

buyouts – with disastrous results? Does it risk adopting a law that unions might shoot down at a referendum, or play it safe and hope that this, coupled with a myriad other small-scale measures, will be enough to appease the financial markets? Additionally, talks are starting on a pension reform, a reform that would see the retirement age increased to 65, or require people to work for at least for 40 years. Surprisingly, it appears that it will be easier to implement this particular labour reform, and though it will shore up public finances over the long term, it will not have a short-term impact on the economy, and could even undermine competitiveness. Slovenia badly needs reform, in order to be seen, by the European Union, the International Monetary Fund and other organisations, to be serious about turning its fortunes around. The economy is contracting and the treasury has been locked out of international financial markets for over a year, unable to refinance Government debt at sustainable levels. Prime Minister Janez Janša has repeatedly said that Slovenia will face bankruptcy in October if it does not act, by which he meant reforms in the labour market as well as pension reform. That would mean having to ask for an eu bailout, which involves not only oodles of money but also far-reaching, and no doubt unpopular, reform measures dictated from the outside. The outcome may depend on how much everyone realises what is at stake. Slovenia’s political tradition over the past two decades has been to go slow, avoid major foul-ups and hope for the best, knowing that economic growth is primarily driven by exports and heavily dependent on how well Germany fares. This is no longer an option. Economist Jože Damijan, despite being a fierce critic of the policies of the Janša Government and of Germany’s austerity push, perhaps put it best when he recently said that this was “the final round of negotiations, and if we don’t get a package of reforms that will stabilise public finances and convince international markets to continue lending us money, it means bankruptcy at the end of October or early November. The Government will step down, the Greek scenario will follow, and from that point on there will be no negotiations, just directives and checklists. The situation is deadly serious.”

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the industry

september 27th

State of the Agricultural Nation Only those whose heads were buried deep in the sand could have failed to notice the spectacular weather over the months of July and August. Record temperatures were enjoyed by all, and tourist numbers soared. Yet while we were all dipping our feet in the Adriatic, the farmers who toiled inland were not having a great time of it all. Crop failure due to drought has threatened to shake the farming community, and has already caused prices to rise. Is someone to blame? Can a repeat be avoided? This farmer, turned journalist, takes a look. by Lee Murphy

t wasn’t just Croatia which suffered in the recent hot weather. As temperatures creeped ever higher throughout the region, crops were dying while the farming community could do naught but watch in horror. Bosnia and Herzegovina has lost an estimated 300 million Euros in damage to their autumn harvest, which will put an inordinate pressure upon their already weakened economy. 20% of those officially employed work in the agricultural sector, and farming accounts for 10% of the country’s total economic output. Serbia was hit hardest. Initial estimates are that the damage inflicted was at approximately 1 billion Euros, although a figure which may increase even further, for consequential reasons. Already there

have been calls to place a ban upon the export of what little corn and sunflower oil remains, so as to ensure that the domestic market does not experience any noticeable shortages. It’s all the worse for them as Kosovo, which no longer exports to Serbia, also suffered a 20% loss in crop yield – a disaster for the already feeble Kosovo economy, but ordinarily the remainder would have had an eager, and lucrative, market in Belgrade. Croatia has suffered almost modest losses by comparison, coming in at under 250 million Euros, but, like Bosnia and Herzegovina, and Serbia before them, the expected yield this autumn is almost half that of 2011, with the corn crop almost entirely destroyed. Commentators have sought to spread the blame for events, querying

whether it was an Act of God, a failure on the part of the Government, or a result of lethargic farmers, not overly keen to modernise their holdings? The answer is rather simple, if somewhat disappointing: they are all to blame.

irrigation what? Rainfall for the months of July and August was 90% below mean levels, but it might be a touch indecent to consider something that took place over a mere eight weeks to be an Act of God. The Governments, too, have played their part in this calamitous situation. In May of this year the World Bank approved a loan, for Bosnia and Herzegovina, for the sum of 30 million Euros, money intended to upgrade the

In every country in this region policies and strategies are juggled, shelved, and rehashed, all depending on who is in power.

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country’s irrigation systems. Holger Kray, the World Bank’s Chief Officer for Agriculture and Rural Development in Europe and Central Asia, commented that “Yugoslavia used to have one of the most advanced irrigation and drainage systems. Unfortunately, these systems have degraded. This is not only about functional budgetary shortages but also frequent turnover in the management of these systems.” In short, these things primarily happen because of a lack of continuity within the political arena, and not only in Bosnia and Herzegovina. In every country in this region policies and strategies are juggled, shelved, and rehashed, all depending on who is in power, always looking to the near future, to the next election, rather then to the long-term security of the economy. The farmers themselves do not get a pass either. While it is truly tragic for those families who were relying upon their corn crop, or sunflower crop, in order to make it through to the next planting season, it cannot be ignored that they have chosen to accept antiquated operating models for too long now. It is this author’s opinion that agriculture throughout the region needs to be dragged, kicking and screaming, if need be, into the 21st century; the worry is that so many husbandries are still far removed from the 20th. Many farmers have put themselves in a habitual rut, preferring to thrust a familiar routine, handed down through generations, rather than to trust themselves towards the (technologically more advanced) unknown. This must change if they wish to remain – or finally start – tilling the land in a profitable fashion.

Many farmers have put themselves in a rut, rather than thrust themselves towards the unknown.

Damir Kovačić, lecturer in Agricultural Marketing at Zagreb University does not pull any punches: “We are paying for the lack of systematic agricultural policy over the past 20 or even 50 years, and yet we're always surprised when the drought hits in the summer.” Drought is not something which happens overnight, the way a hurricane might lash coastal towns and villages, nor is it something which cannot be predicted, at least not under normal circumstances.

the awful tally It would, however, be unfair simply to blame everyone in isolation. There are several reasons as to why circumstances are as they are – the break-up of Yugoslavia, the war which followed, all too frequent

changes in personnel within Government and State bodies, and more recently the global financial crisis. We would love to report on future policies set in motion by the various Ministries responsible, so as to help prevent future failures, but for whatever reason they saw it fit to remain silent, despite our repeated attempts at inquiry (at least once arriving at the Ministry lobby, hoping to doorstop an official). In a moment of cynicism, this author must believe that this was because there are, as yet, no concrete solutions in place. It is not hard to think that the public backlash in the face of the large figures, as listed above, could have been avoided if a more integrated approach to agriculture had already been in operation. Serbia, whose total losses may well exceed 2 billion Euros once ancillary costs

september 27th

be able to utilise these funds in an adequate, if not entirely competent, manner.

where there’s a will...

are calculated, could have spent 2.5 billion Euros to upgrade the irrigation systems of the entire country. In the end they will need to spend an equivalent sum but, as is traditional in such instances, the stable gate has yet to be shut, even though the horse has long gone. Croatia, of the three countries mentioned, has the greatest potential for recovery, but certainly not as a result of any grand scheme, particularly courtesy of the political elite. Rather, it is all because of the impending eu membership. Once Croatia becomes the 28th member of the European Union it will have access to a number of structural funds, funds enough to restructure the agricultural sector to a level capable of competing in a wider market. Good news surely, but there still remains the question as to whether the country would

Ivan Lovaković has managed to turn seven acres into an orchard, which has seen a yield comparable to that of Europe's best.

There are many stories of individual woe arising from the drought which afflicted the region only last month. There are also some stories which give cause for hope. One such story is that of Ivan Lovaković, who hails from the Slavonian village of Feričanci. Although having invested only 20,000 Euros, Mr. Lovaković has managed to turn seven acres into an orchard, which has seen a yield comparable to that of the best orchards across the European Union. Applying new technologies available to him, such as an irrigation drip system, and an anti-ice system for the colder weather, he realised a yield of approximately 175 tonnes of fruit, of which 90% were classified First Class, which is on par with the European average. Even more impressive is the fact that this orchard is only 16 months old. When Mate Brlosić, of the Croatian Chamber of Agriculture, says that it will take several years for the vineyards and orchards affected by the weather to recover and begin producing at expected levels again, the contrasts become all the more evident. The green fingered Slavonian said that he “did not want to leave things to chance. The latest technology, also employed in Europe and around the World, is used in my orchard. I have modern machinery, and yes that costs money, but it is worth it.” With almost 200 tonnes after just 16 months in existence it certainly appears worth it, and then some. Mr Lovaković, although a sprightly 65 years young, holds a Masters degree in Economics, and he is of the clear opinion that a change in mentality is necessary for other farmers to turn around their fortunes: “failure can happen when you take a bad approach to things, but if you have the will, and the desire to work, and the patience to invest long-term; if you have the will to work, often painstakingly, from early morning to late at night, and are persistent, then excellence will follow. You cannot do this half-heartedly and expect success, or to become wealthy; it does not work that way. Unfortunately too many farmers are buying cars instead of equipment that they need. I drive an eighteen year old Alfa Romeo and the thought that

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I could buy a new, luxury, car, does not cross my mind”.

lacking in competencies?

How do you solve a problem like B&H? Bosnia and Herzegovina has 1.5 million hec- can mirror those conditions. Given that this is an tares of arable land, but of that vast amount only identified cycle, and one unlikely to alter too rad18,000 hectares are irrigated. It would seem ob- ically, the Professor feels that steps could be takvious to blame this disparity upon the war which en to avoid future crop failures. ravaged the country during the 1990s, and while “We should be modifying our crop rotation, to much of what existed prior to 1990 was indeed bring it into line with the natural soil-water redestroyed, there were only approximately 10,000 gime. This means the introduction of more ‘winhectares suitably irrigated. Bosnia and Herze- ter crops’ such as wheat, rye, and rape seed. Curgovina’s water table suggests that the country rently our system is entirely reliant on there not could be irrigated to a high level, but most of the being a drought during the summer months. We rivers and streams tend to have overly high lev- should be pickier when selecting which varieties els during periods of rain, and also as a result of to plant – there are certain crops, certain species, snow melt, which provokes flooding at locations which are more drought resistant. The utilisation prone to such events. of windbreakers would also result in less moisDuring the dry periods, such as we experienced ture being taken from the soil, especially during this summer, the water table is too low to even the July-August period, when the winds can be at enable the biological minimum in some streams their driest.” The professor also thinks that eduand smaller rivers. Professor Hamid Ćustović, cation is key for the farming community: from the Agricultural Faculty at the University of “Social awareness about the drought and its efSarajevo, believes that action must be taken if the fects should be more widespread and systems nation’s agriculture is to be saved. He notes that should be put in place to let others know when the construction of several reservoirs would pro- their crops might be at risk. It doesn’t stop there vide the necessary irrigation capacity to serv- either; drainage, especially of heavy soils, is ice 200,000 hectares of lowlands, and 150,000 more important than you might realise. Drained hectares of upland area, but as the Government soils allow for an earlier plant, and this in turn cannot agree on anything this, plan has been left allows your crop to develop deeper roots, thus unexecuted. allowing it to take up more water during the A drought does not occur overnight, and B&H is dry period. For every one day of delay in plantno different in this regard. The months of Octo- ing your crop, there is a one percent decrease ber through May see evaporation more than ac- in yield.” counted for by precipitation, while June usually Alas, the Professor and his team can only dream, sees the soil drawing up the excess water de- because for as long as there is no coordinated posits from the prior period. July and August are strategy on the ground, there will be no developthe driest months, and on occasion September ment on a local, regional, or national level.

While the current Croatian Minister of Agriculture, Tihomir Jakovina, is certainly qualified for his position, at least on paper, his recent statements cast a shadow upon his grasp of the entire situation. He has said that he is considering the lifting of fees on the lease of agricultural lands, while also increasing export duties on the export of grain and corn. While the latter will, much like in Serbia, help ensure there is at least some supply of cereal (it would no longer be immediately profitable to sell outside the country), it does not address the greater problem. If this is the response from the Ministry, then it might be time for a change of personnel – somewhat ironic given the lack of strategy caused by overly frequent personnel shuffles in years past. The Prime Minister, Zoran Milanović, has already informed the farming community that there will be no funding available to them, because the State has no money to give, and that they will now look at investing in irrigation systems to avoid a repeat in the future. In the meantime, he said, the farmers would have to look after themselves. The main goal, said the Prime Minister, was to have as many as 200,000 hectares irrigated by 2020, eight years from now. The reach of this crisis is not yet fully felt. Farmers may have lost their crops, but the bakers will still need to source their wheat from somewhere; the brewers will need their barley and their hops; livestock breeders will need fodder and straw; and the wineries will still need grapes. There has long been a wheat shortage on an international scale so we can be sure that the price of bread will see another increase in the near future. Also, as cattle cost more to feed, then so too will their meat cost more. Mate Brlosić, our friend from the Chamber of Agriculture, has already said that the vineyards and orchards will take years to recover. What then of the cattle herds, underfed and unable to reproduce at a healthy, sustainable level? Some farmers have already been forced to abandon their profession, as they can no longer provide for themselves or their families. Brlosić said that this year “corn will be as rare as gold”. The farmers would rather they had fields of corn than pots of gold – at least you can eat the former.

september 27th

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social economics

eureka's Eurostars Programme: Aim Higher Want to be a star? Want to be a European star? No, this article is neither about reality TV nor any one of those shows that all networks have abounded in over this past decade. This article is about a very serious European incentives programme intended for those operating within the realm of r&d. Have an idea and the know-how? Find a partner (or partners), apply, and collect. by Mark Ferris

urostars Programme is a European Joint Programme dedicated to SMEs which engage in Research & Development related activities, and co-funded by the European Communities and 33 eureka member countries. The main objective of the programme is to stimulate smes to lead international collaborative research and innovation projects, by easing access to support and funding. It is fine-tuned to focus on the needs of smes, specifically targeting the development of new products, processes and services and the access to transnational and international markets. Through this joint Programme, based on Article 185 of the Lisbon Treaty, Eurostars aims to combine the best of two worlds with a bottom-up approach, a central submission and evaluation process, and synchronised national funding. On the practical side of things, before we proceed, we must mention that, in order to qualify for the project, a consortium must involve at least two project participants from two Eurostars member countries. Also, r&d-performing sme(s) will undertake at least 50% of total r&d project costs, moreover in a balanced partnership whereby no partner or country will cover more than 75% of total project costs.

eurostars on home turf Although Eurostars, as a joint initiative of eureka and the European Commission was first launched back in 2008, Croatia

joined the programme in 2011, with the implementing body - or agency - being bicro, the Croatian agency in charge of innovations. The projects are financed by member states, while the European Commission participates in the public aspect of co-financing. Antonija Mršić, Chairwoman of the subcommittee for the promotion of Eurostars, steps in to clarify a few things right off the bat: "The programme is intended for smes, but we must stress the fact that Eurostars does not discriminate between businesses. Any area of technology would qualify, so long as the companies in question perform r&d." On average, approximately 350 different projects apply per each tender, and those that are accepted, following the so called central technological evaluation, have two years to place their product or service on to the market. The only exceptions to this rule are projects hailing from the fields of biomedicine and the pharmaceutical industry, for which the 'deadline' may be extended. As for, more specifically, the 'regional' angle, Croatia as well as other countries in the region stand to benefit from a form of positive discrimination, or affirmative action, if you will, which will in the future open up a huge window of opportunity for many. "Given that one of Eurostars' main goals," continues Mršić, "is to achieve balanced representation amongst member states,

EUREKA & BICRO EUREKA, the European network for market oriented research and development, was founded in 1985 with the aim of fostering transnational cooperation and boosting European competitiveness . The expected results of projects supported by Eureka primarily involve the creation of advanced technologies which will be able to find their place in the market. BICRO, the Croatian agency in charge of business innovations, has been responsible for the implementation of EUREKA’s programmes since May 2012.

EUROSTARS Main Site www.eurostars-eureka.eu/ Registration/Applications www.eurostars-eureka.eu/home.do Technical Expertise (evaluators) experts.eurostars-eureka.eu/ experts/newRequest

september 27th

both Croatia and other countries in the region, all having a comparatively lower number of r&d companies, will have plenty of space in which to manoeuvre. Also, we must not forget that the current situation is a result of the fact that many companies do not consider themselves to be an acceptable candidate because they are not, technically speaking, 'r&d performing smes'...in a programme based on the formation of consortiums, such as Eurostars, only the main partner, or 'the carrier of the project', as it were, must be an r&d company. Other, 'regular' companies can also participate and aid in the project with their complementary capabilities: access to the market, distribution network, production process related know-how, strength in monetisation… in fact, those 'regular' companies' further stand to improve their capacities to absorb new technologies and pave the way for transitioning from 'low-tech' to 'high-tech' and finally get involved in real r&d activities."

good things to come In terms of project evaluation the new 2014-2012 financial cycle will put even more stress on monetisation and all other market related aspects. The structure of applicant consortiums should be such as to ensure that all segments of the project are equally well covered, not only those pertaining to technological innovations. This next step, baptised Eurostars 2, will envelop all r&d programmes into one single schematic, called 'Horizon 2020'. The eureka Secretariat and member states are currently negotiating with the European Commission as to the design of the future programme as well as the budget to be allocated for Eurostars by the ec. The eu contribution to the Eurostars 2 Programme, managed by the eureka Secretariat, will be a flexible budget but with a fixed funding percentage, which can be up to 33% of the total public funding. The so called 'Eurostars 2 Budapest Document', which defines the future programme's aims, defines smes as 'the

backbone of the European economy, especially r&d performing smes which play a central role in increasing competitiveness and boosting job creation in Europe. r&d performing smes are characterised by being innovative, fast to commercialise new products and services and they are often “born global” in terms of research cooperation and sales. Creating the best possible framework conditions for cooperation between such companies must be a top priority for national innovation policy as well as for Horizon 2020." Indeed, Europe appears to be taking its R&D future very seriously, and is willing to do something about it.

brick by brick Naturally companies, by participating in a project, share both the risks and potential benefits with their partners, including ownership of intellectual property. New knowledge is acquired, new products and services launched, new markets opened. As in most instances when quality, standardised evaluation methods are used, potential investors are much easier to talk to. In retrospect, the success of the Eurostars 1 is notably reflected in the high quality and substantial number of applications received,

which were five times higher than originally expected. When designing the Eurostars 1 Programme, 150 applications were expected to be submitted per year. However, the r&d performing smes of Europe are increasingly seeing Eurostars as one of the best platforms for international cooperation. This is clearly reflected in the steady increase in the number of applications: 215 applications were received in 2008, 317 in 2009, 595 in 2010 and 745 in 2011. Based on the preliminary impact reports received from Eurostars 1 participants, the leverage effect of the Programme is substantial. With 1 million € of public funds, 9.8 million € of additional turnover is expected. As a result, with 520 million € of public funds forecast for the whole duration of the Programme, Eurostars 1 is estimated to boost European gdp by 5.1 billion €. And, by way of an end note, Turkey, the country currently presiding over the eureka programme, will be staging in October the Global Venture Forum, the purpose of which is to assemble in one place (Istanbul) investors and companies from world round. Not only eureka and Eurostars partners and users, but all interested parties.

… for the whole duration of the Programme, Eurostars 1 is estimated to boost European gdp by 5.1 billion €.

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legal

Croatia-B&H Border Agreement Ratification pm Zoran Milanović’s Government has finally decided that the time has come to tackle a thirteen year old agreement, and in doing so has already turned the political arena on its head. As the debate rages on, the pm finds himself, by choice, changing his rhetoric and standing up for former President Tuđman, once scorned by his party. By Dylan Alexander

he agreement of which the introduction speaks is the border agreement, signed in Sarajevo on July 30th, 1999, by the late Presidents Tuđman and Izetbegović, on behalf of Croatia and b&h, respectively. The intention of this political instrument was finally to define the border between the two countries. Once both men had put their names to paper, all that was left was for the Croatian parliament to ratify it, which did not happen. In the intervening years, it was only given cursory attention by the hdz Governments, but now tempers are somewhat strained, as current pm Zoran Milanović announced, in July, that he intends to seek that elusive ratification. Long forgotten – or simply ignored – as it was, this recent move by Milanović’s sdp has given rise to a flurry of accusations, many claiming that the Prime Minister was blasé about what amounts to relinquishing control over a part, however small, of Croatian territory. Many qualms came from hdz, the same party whose late President, Franjo Tuđman, was the exact same man who originally signed the document. The border agreement from 1999. confirms the post ww ii avnoj (Anti-Fascist Council of the People’s Liberation of Yugoslavia) border between the former Yugoslav republics of Croatia and b&h, as regulated by the findings of the Badinter Arbitration Commission, which acted under the auspices of the Yugoslavia Peace Conference in 1991. The Badinter Commission made a finding summed in fifteen points, one of which dictates that the former borders between the Yugoslav republics will become state borders, which can only be changed by compromise and not by force.

The issue at hand pertains to islets Veliki and Mali Škoj and the tip of the Klek peninsula, and dates back to 1974, when the b&h border was changed based on a cadastral survey performed by a b&h Cadastre Office , and according to which previously Croatian territory fell to b&h. Since the change affected a small portion of uninhabited territory, and made no de facto difference, the matter raised no problem at that time. It must, however, be noted that the border change was never ratified by the parliaments either of the Socialist Republics of Croatia or b&h. As of late, it has been suggested that the cadastral survey of 1974 is a forgery, thus making the border correction illegal. In that respect, the matter in dispute now concerns the legality of the avnoj border after 1974. As this new debate progressed, it became clear as to what the expected outcome would be: b&h would retain control of the tip of the Klek Peninsula, as well as the two uninhabited islets of Veliki and Mali Škoj, approximately 58,000 square metres in size, but Croatia would, in turn, get 72,000 square metres in the Una river valley.

In his first address of the autumnal session, pm Milanović stated that he was going to seek a two-thirds majority, even though he believed that “a regular majority is within the Constitutional requirements for ratification.” The Prime Minister then called on representatives of hdz, who are currently opposing the ratification, reminding them that it was their own party that had moved to ratify the same agreement on no less than two previous occasions, the most recent being in 2010. Tomislav Karamarko, the new, recently elected hdz President and hence Opposition leader, stated that the ratification, “if seemingly of little consequence now, might aggravate relations between the two countries further down the line.” It is difficult to say exactly what he meant by it. While it is no surprise that politicians are looking to gain points over what is ultimately only a sliver of land, it is slightly hypocritical of hdz given their prior position. Milanović found himself lauding a hdz hero when he said that former President Tuđman was “not a dried up old man, but a leader who knew what he was doing”, at which point hdz accused the Prime Minister of mocking their former leader. In any event, this is not a one sided issue: ratification by the Parliamentary Assembly of b&h is also outstanding, and even if Milanović manages to obtain the two-thirds of the vote that he needs, things might still not get ahead. The agreement calls for concessions in the Una river valley, and given that this land lies within the territory of Republika Srpska, it is highly unlikely they will agree to anything of the sort. Then again…

september 27th

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in the margin

B&H Anti-Crime Offensive: of Puppets & Puppet Masters The regional elections are on the horizon, but controversy is never far from Fahrudin Radončić and the Union for a Better Future (sbb). Rumors abound, connecting him to various figures from the organised crime milieu, and it remains to be seen whether he can spin his way out of this mess. by Igor Dakić

ver the past fortnight the b&h police have been taking action against organised crime, and the operation in question, codenamed ‘Puppet’, has been described as the largest undertaking of its sort in the history of Bosnia & Herzegovina’s law enforcement. It has dredged up old allegations of Fahrudin Radončić and connections he might have with Naser Keljmendi, who is often described as being the ‘top drug lord of the Balkans’. So far the operation has led to the arrest of 25 individuals, who are apparently members of as many as three different crime groups, in relation to extortion, trafficking, the illegal drugs trade, robbery, and murder. All of this points to Keljmendi, who remains at large – in spite of a region-wide manhunt for him still ongoing.

on with it... The courts of Bosnia and Herzegovina have ordered that 18 of the 25 be detained for at least a month, on account of the severity of the charges facing them and the risk of tampering with witnesses. In addition to the general charges against the gathered detainees, there is also the question of the murder of one Ramiz Delalić Ćelo, a known figure in the Sarajevo underground who served as Commander of the 9th Mountain Brigade of the b&h Army during the war. Delalić Ćelo is considered to be responsible for the shooting of an ethnic Serb groom at a Baščaršija wedding in March of 1992, which many Serbs see as the event

which sparked off the Serb ‘insurrection’ in Bosnia and Herzegovina, namely in the Sarajevo region. The former Commander was himself murdered, execution style, in 2007, with members of the Albanian underground being prime suspects in the shooting. What is most instrumental here, however, is an open letter which was published several weeks ago by the daily Oslobođenje, in which Šejla Sunko Turković, a Sarajevo journalist (formerly employed by Radončić’s Avaz), and the wife of Zijad Turković, a convicted organised crime figure, explicitly named the ubiquitous Radončić as being the man who ordered the murder of Delalić Ćelo, and further implicated him in dealings with Keljmendi, something which the media mogul strenuously denied on several occasions. The director of sipa (State Investigation and Protection Agency), Goran Zubac, stated that the operation marks 'the beginning of an end to organised crime in b&h'. The statement was of course greeted as a breach of the presumption of innocence by the detainees’ attorneys, who continued to argue that operation 'Puppet' is nothing more than a pre-election ploy. Zubac further stated that the investigation included

surveillance of 43 organized crime figures, some of whom still remain at large and are presumed to have fled to neighbouring countries, namely Serbia, Montenegro and Kosovo. Even an Interpol bolo has been issued for the arrest of several suspects, amongst them the aforementioned Naser Keljmendi, who, for his part, is presumed to have fled to Kosovo. Whatever else may be the case, the operation was greeted as a 'huge step forward and a turning point in battling organised crime as a direct fruit of cooperation between regional police forces, as agreed at a recent Sarajevo meeting, especially in light of the fact that regional criminals have never stopped their mutual cooperation'. The abovesaid was stated recently in Budva by Jelko Kacin, European Parliament's Rapporteur for Western Balkans.

a few questions It is not unreasonable to suggest that, when it comes to politics, control of the media is paramount. This truism, as it might as well be, can describe the current state of affairs within b&h politics quite neatly, without any need for exaggeration. Indeed, like so many things, exaggeration in this arena

Now that he is in power, Radončić is getting a little taste of his own medicine.

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Fahrudin Radončić Fahrudin Radončić was born in Berane, Montenegro, on May 24th, 1957. At the age of 19 he became a professional journalist and by 23 he was the youngest Editor-In-Chief of any Yugoslav newspaper. With the rise of Slobodan Milošević in the latter half of the 1980s Radončić felt compelled to write a number of texts which criticised the Yugoslav leader’s politics as being fascist, criminal, and pro-Serbian. As a result Radončić was persecuted by the establishment and lost his position as editor. He continued to work as a correspondent and political analyst for Danas, a publication which was known for its opposition to the Nationalist policies emanating from Belgrade. In 1990 Radončić published a book which advocated independence of Kosovo, something that is relatively controversial to this day. A year later he moved to Sarajevo and founded Avaz Publishing, which would become the largest publishing company in Bosnian history. He joined the inner circle which had gathered around Dr. Rusmir Mahmutčehajić, the grey eminence of the then-fledgling SDA, instrumental in the plans for B&H independence. He joined the Army of B&H from the moment it came into existence, and served as a member of the Supreme Command Cabinet, spending the entirety of the war in Sarajevo, during which time he lost several members of his family. In 1995 Radončić started the daily newspaper Dnevni Avaz, which became the most

influential Bosnian print medium, surpassing even Oslobođenje. The newspaper advocated the struggle against corruption and fought for the protection of citizens from repression and abuse of power. Radončić had a (then quite rare) policy of reinvesting his profits into domestic development projects, and it was he who built one of the first large scale projects in post-war Sarajevo – now the HQ of Hypo Bank. Expanding his construction enterprise Radončić developed projects throughout the country, and his portfolio now includes the 5 Star Radon Plaza Hotel in Sarajevo and the Avaz Twist Tower, which stands 175 metres high and has been counted, by several international publications, amongst the ten most beautiful buildings in the World. In 2009 Radončić took his most important step into the world of politics when he founded the Alliance for a Better Future for Bosnia and Herzegovina. They are a centre-right, but in terms of ethnic discourse moderate, Bosniak party advocating economic development, the fight against corruption, religious liberties, and accession to NATO and the European Union. In the 2010 elections SBB won four seats in the House of Representatives of the Parliament of B&H and thirteen seats in the House of Representatives of the Federation Parliament. Radončić placed second in the race for the Bosniak member of the Presidency, polling 32%.

is very much unnecessary, with so much of the socio-political phenomena already overly exaggerated in their own right. In this respect Fahrudin Radončić, the latest Bosniak political superstar, should be considered a man of not inconsiderable power, since he controls one of the largest media operations within the country – the daily Avaz newspaper. Avaz is a newspaper which, over the course of its existence, has made a name for itself by calling out the ruling elite (specifically sda – Party of Democratic Action) for transgressions committed, and now finds itself promulgating the relatively recently formed coalition between Radončić’s sbb and sdp – the Social Democrats. That said, it is hardly surprising that, now that he is in power, Radončić should be getting a little taste of his own medicine. Grave accusations against him have been made, the types of accusations which must be answered, but it is difficult to shirk the impression that he is currently the object of a smear campaign. Is he innocent? He is certainly guilty of something, if not perforce the things he currently stands accused of: one does not get to where Radončić, especially in the Balkans, by playing nice. As for the operation, it remains unclear as to what is behind operation 'Puppet', or rather what was it that triggered police involvement of this magnitude. One would like to believe that the Police are finally going on about their business and taking action as they should – that times indeed have changed in b&h as well and that, to use the delightful phrase all regional politicians seem to be so fond of, ‘the institutions are (finally) doing their job’. In any event, it is nice to see all these different national police forces cooperate on that level. Or, as already stated, is it all a pre-election ploy? If so, two scenarios are the most likely: sda, technically in opposition (one can never be too sure in b&h), might be going after what they perceive to be a weaker link in the ruling sdb-sbb coalition; or the ruling coalition itself might be making moves so as to clear the name of their latest poster-boy. Or perhaps it is something much more complicated than that. Still, all said and done, it remains to be seen as to how all of this will unfold, and whether the ‘criminal’ stain will be removed from Radončić’s person. We rather suspect that the conspiracy theorists will have material enough to keep them happy for quite some time to come.

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human rights

The Merčep Trial: of Cynicism and Horror The Zagreb County Court sees the continuation of proceedings against Tomislav Merčep, the former advisor to the Minister of the Interior, who has been indicted for war crimes against civilians. As the witnesses offer up their testimonies, the grim realities of 1991 unfold before all. Yet again... by Miroslav Tomas

erčep. Tomislav Merčep. Long was the arm of the law (though, let us give the man the benefit of the doubt, as he hasn’t been convicted yet) – or justice if you will – but back in February he finally found himself in the Courtroom, charged for war crimes committed by a semi-paramilitary unit seconded to the Croatian Ministry of the Interior at the start of the hostilities of the 1990s. It is not until these days, however, as high ranking officials from 1991 come forward to present their information, damning or otherwise, that things started heating up. As a member of the Croatian Democratic Union (hdz), it fell to Merčep to aid in the organisation of the defense of Vukovar, although he was relieved of his post in August

of 1991 due to numerous transgressions. He was reassigned to the Istrian region, but only to re-emerge in Zagreb with a motley crew in tow, comprised mainly of criminals and extremists. This group would act as a reserve unit of the Croatian police force, but, as there was no clear chain of command, nor any parliamentary oversight, the group gained the moniker ‘Merčepovci’. Before long they began rounding up ethnic Serb civilians, in what some have argued was counter-intelligence work; however, too many of those arrested were in fact successful entrepreneurs – or ‘well to do’ Serbs, if you will – likely targeted for the purposes of a ‘shakedown’, or racketeering. Or some sort of retribution. Merčep himself, or rather his nefarious and shadowy reputation, was used as

a means to boost moral within the defence forces and as a tool for psychological warfare; rumours were already running rife of illegal detention centres located at Zagreb Fairgrounds (which was also the group’s base of operations), and at Pakračka Poljana. With the murder of the Zec family in late 1991, the establishment had lost at least a measure of its patience: the paramilitary unit was disbanded, or rather merged into the regular Croatian army. Merčep would go on to serve as an advisor to the Minister of the Interior, a post he held until 1997. What followed were a number of political appointments, after which he somewhat dropped off the map, the public mainly wandering, if they did at all, why is it that he hadn’t been indicted yet.

details, details...

As a member of hdz, it fell to Merčep to aid in the organisation of the defense of Vukovar, although he was relieved of his post due to numerous transgressions.

Merčep has been charged with ordering and/or command responsibility for the illegal detention of 52 people, 43 of whom who have been murdered: three individuals are still unaccounted for, while six survived their incarceration and torture. Merčep had been held in detention since December of 2010 until July of this year, but he was released to house arrest due to poor health. Thus far we’ve seen testimonies from former members of the

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Merčepovci, who have uniformly backed Merčep, positing that the detention centres never existed, or that the hdz man was not the commanding officer of the group (despite his name being lent to them). It might have been that the prosecution’s case was poised to fail in the face of this unified front, but for Josip Manolić. Manolić was Prime Minister in the so called Government of National Unity, and one of the founders of hdz. During the period under scrutiny Manolić was also Head of suzup (the State Counter Intelligence

Merčep’s apparent immunity had been a political decision, as any prosecution during the war would have tarnished morale and ultimately helped the enemy.

Tomislav Merčep Merčep was born in Borovo Naselje, a suburb of Vukovar, on the 28th of September, 1952. By profession he is a construction engineer, having received his degree from the Vukovar Polytechnic. He entered into politics in 1991, being elected to the Vukovar City Council on HDZ’s list, whereupon he became the Secretary of Defence within the Municipal Government. Following reports of the harassment of the ethnic Serb civilian population in Vukovar, he was relieved of his duties and transferred to Zagreb, where he found himself appointed as an advisor to the office of the Minister of the Interior. He served as MP in the House of Representatives, as well as in the House of Counties of the Croatian Parliament, back in those days when Croatia still

had bicameral legislation. In 1995 Merčep first clashed with President Tuđman over charges involving the formation of illegal terror groups, and he finally left HDZ in 1997, when he won two seats in the Vukovar City Council, as an independent, in the local election. He would subsequently form HPS (Hrvatska pučka stranka, or the Croatian Folk Party), which would not have much success in the long run. In that same year Miro Bajramović, a former member of the Merčepovci group, accused him and his subordinates of torture, murder, and other criminal activities. Nothing came of those charges until December 2010, when Merčep was arrested and incarcerated pending trial. Court proceedings began in February 2012.

and Security Agency). He told the court that both he and President Tuđman became aware of the illegal detention centres during November of 1991, but that they did not act on this knowledge until after the Zec family had met their untimely fate. After these tragic events Ivan Vekić, the then Minister of the Interior, ordered an investigation into the murders, although at the time the identities of the culprits were not yet known, or at least so Vekić said. Manolić, for his part, continued by saying that President Tuđman had put a condition, at the time, upon Merčep’s appointment as mp – Merčep would have to divulge the identity of the guilty party, or parties. It is from this moment on, concerning Manolić’s testimony, that one would have to read between the lines. The old pm stated that he was not privy to further discussion between Tuđman and Merčep, merely that Tuđman related to him at a certain point that Merčep would not be prosecuted for the murders and would sit in parliament. But murders there were, and the Government, including Tuđman, knew about them. Naturally, then, Manolić was grilled further. He was asked as to why no legal action had been taken against Merčep at the time, and in his reply he noted that Merčep’s apparent immunity had been a political decision, as any prosecution during the war would have tarnished morale and ultimately helped the enemy. The former Prime Minister continued by stating that Merčep, if anything, was a traitor to Croatia for refusing to lead his troops in an attempt to break the siege of Vukovar.

a macabre lesson One cannot escape from the impression that Manolić’s testimony was somewhat cynical, but that was the order of the day

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– perhaps still is to a certain extent. Also, Manolić has always been regarded as a very pragmatic man, and he lived up to his reputation in this instance as well. Those Serbians who were detained, and ultimately murdered, were not soldiers, nor spies, but rather civilians, many of whom were loyal to the newly independent Croatia. At least one of them, Mihajlo Zec, as we have hinted earlier, had met a most horrific demise. Mihajlo Zec was a well to do Zagreb Serb, the proprietor of a butcher shop and café in the Dolac market, in the city centre. In December of 1991 his home was raided by five members of Merčep’s unit, in an attempted robbery. Mihajlo was shot dead as he attempted to escape the intruders, by one Siniša Rimac, who later served as a bodyguard to the Defense Minister Gojko Šušak. Mihajlo’s wife, Jelena, and their twelve year old daughter, Aleksandra, were both taken to Sljeme and

Josip Manolić

Siniša Rimac

Ivan Vekić

executed by one Munib Suljić, a career criminal. The other two children, Dušan and Gordana, managed to hide and so survived the massacre.

Several days after the incident the group were arrested and charged with their crimes, to which they pled guilty. They were released from prison, however, on a technicality: they had offered their confessions without legal counsel being present, and as such the documents were no longer admissible in a court of law. With no other witnesses to the crimes the proceedings were terminated. Both Dušan and Gordana moved to Banja Luka, and were raised by their paternal grandmother. In 2004, following a law suit, they were awarded 1.5 million Kuna (200,000 Euros) as a reparation by the Croatian Government, a paltry sum indeed. The irony to be found in this unforgivable crime is that Mihajlo Zec was one of the financiers of the original hdz, and stayed loyal to the new Croatian regime following their split from Yugoslavia. In the end he was targeted, and murdered, simply because he was a well to do ethnic Serb. As for Merčep, the trial will go on and the judges will rule as they rule. The most important – or worst – thing, is that it took until 2010, almost two decades, before any action was taken, when the facts were, ostensibly, known by the hierarchy and indeed could be described an open secret. The current judiciary has an opportunity to atone for the sins of the State, and finally put an end to a matter which has, and rightly so, brought immeasurable shame upon Croatia. For Tomislav Merčep, whether guilty of murder or not, was undoubtedly a warmonger, the very epitome of all those things most of us would rather forget.

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event horizon

Kosovo, the International Steering Group, and Organ Trafficking Kosovo has finally come of age. Or has it? In any case, no longer will its administration be guided by the International community, and the question remains as to whether the fledgling country has the strength to withstand recent accusations of organ trafficking, especially as coming from Belgrade… by Miša Milošević

n September 10th, 2012, the International Steering Group for Kosovo (isg) declared the end of the so-called supervised independence of Kosovo. Now, at least in the eyes of isg, Kosovo must fend for itself, with the Priština authorities now relying on their own capabilities and competences to tackle future difficulties, and not only those pertaining to its erstwhile unilateral declaration of independence and the perennial ‘problems’ to be found in those few municipalities where the Serbs are still in the majority.

coming of age Kosovo has been the responsibility of the International Steering Group, administratively and executively, since 2008, when the region declared its independence. The isg was established according to the Ahtisaari Plan, and was tasked with overseeing the democratic development of Kosovo, along with the promotion of ‘good governance, a multi-ethnic society, and the rule of law’, until such time as the nascent state was ready to tackle it alone. Pieter Faith was Civilian Representative for Kosovo (icr) and it was he who acted as the final authority on the interpretation of the Plan; it was also he who possessed the power to annul non-compliant

legislation, as well as the ability to dismiss any public official whose agenda was incompatible with the broader picture. Although his mandate, identical as it is to that of the Office of the High Representative in Bosnia and Herzegovina, does not end until later this year, it can be expected that his involvement in sovereign affairs will be minimal, as he steps back to allow others to get to grips with issues at hand. Priština has shed the training wheels and, although support will still be there as needed, Kosovo is slowly but surely being forced to lead a life on its own. In legal and practical terms, this new chapter is an important step forward, both formally and ceremonially, but at the same time it is unlikely to change much in the way of daily life for the Kosovan people. Although Kosovo’s Constitution is already in full effect, which means that Priština will doubtless feel and act more empowered than previously, they will also, however, find themselves with more

responsibility for solving internal problems and furthering their cause on the international stage. The Prime Minister, Hashim Thaçi, stated that his Government’s priorities have not changed – it is, in his view, essential that they fully integrate Northern Kosovo (which includes Kosovska Mitrovica, the city split in two along ethnic lines), abolish the remaining Serbian institutions in that same area, liberalise visa regulations, and get Kosovo onto the so called Schengen white list, that final goal being part of Kosovo’s ultimate goal of furthering relations with the European Union. Oddly, Thaçi did not mention any economic goals, not even the country’s dire need to improve its infrastructure. Although Kosovo is enjoying one of the highest economic growth rates in all of Europe (4% according to the imf), this piece of information could not be more misleading. mainly due to the number of Kosovar citizens working abroad and

Germany’s support for Serbia entering the eu is contingent upon Kosovo being recognised.

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sending money home. Kosovo has an estimated unemployment rate of 45-50%, and the average income is only 300 Euros per month, per household. If it weren’t for the remittances, the economy would be virtually non-existent. According to the Kosovo Remittance Survey 2011, conducted by undp, as many as 25% of the households are heavily dependent on this source of income, which accounts for up to 16% of Kosovo’s gdp. And these are only the official figures, or the results arrived at by using a method which is far from perfect when it comes to tracking down cash which enters the country. There is, of course, also the issue of the prevalence of smuggling and the grey economy, of which more later.

running out of alternatives While Kosovo is starting out on its new journey, it falls on the International community to help pave the way to full recognition. As such they are increasing pressure on Belgrade finally to accept the situation. Ruprech Polenz, representative of the German Bundestag, left no doubts when saying during European talks that “Serbia will have to recognise Kosovo before joining the European Union”. And while recent comments from the eu President, Herman Van

Strangely enough, the creation of the Kosovo State has been one of the smoothest political operations in the region to date.

Rompuy, suggest that any such ultimatum has not been issued, it is most certainly the case that Germany’s support to Serbia entering the European Union is contingent upon Kosovo being recognised. It is worth noting as well that German support for accession talks with Serbia has been rather subdued following the recent elections, where Tadić’s Democrats lost power. While all of this is happening, Belgrade is more or less standing still. Serbian President Nikolić announced a new plan for future negotiations, but that has yet to

be presented to Parliament. The question everyone is asking is whether there still exists a strategy whereby Serbia and Kosovo can be reconciled; after everything that has happened, any scenario but Kosovo’s full independence is highly unlikely. The latest news, however, which has dominated the recent Serbian media, concerns the findings on human organ trafficking, which was supposedly taking place between Northern Albania and the contentious Kosovo. Dick Marty, of the Council of Europe, reported the alleged crimes, saying that civilians detained by the Kosovo Liberation Army (kla) had been shot dead in Northern Albania so that their organs could be harvested and sold on the black market. A location, the ill-famed ‘yellow house’, which lies within an Albanian village, was also identified as the place where such activities took place. The Serbian War Crimes Prosecutor has now presented the shocking testimony of a protected witness, apparently Albanian, who claims to have helped medical staff perform some of these macabre operations. This new testimony also recalls the report which accused Hashim Thaçi, the pm himself, of being the head of a ‘mafia like’ network which dealt in weapons, drugs, and (relevant in the circumstances) human organ trafficking. In spite of these unspeakable atrocities, this case is unlikely to undermine Kosovo’s legitimacy – although it may end the career of more than one Kosovar public figure. The creation of the Kosovo State, strangest as it may sound, has been probably one of the smoothest political operations in the region to date; Kosovo is recognised by 91 countries (with just 5 abstentions from amongst the European Union members), and it continues to join more and more international organisations with each passing day, including the World Bank, the imf, and cefta. Its participation in regional and economic summits also confers a de facto independence upon the four year old nation. Belgrade, by comparison, has been almost entirely passive during the process, choosing instead to react to Priština rather than take a pro-active approach. All of this means that, as time goes by, Serbia’s manoeuvring space is shrinking, not that it was particularly large to begin with. Serbia and Kosovo are on the same path, but down that road lies Kosovo’s house, and it’s a dead end.

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politics

Montenegrin Parliamentary Elections: Change for Change’s Sake? Montenegro is about to find out just how popular, or unpopular, the current Government is, as early elections have been called for October 14th. Which direction will Lukić’s party take? Will they stay where they are, or have they identified a destination above all? by Dylan Alexander

ark the date in your calendars; Montenegro will see a full General Election on October 14 th, following the decree of President Filip Vujanović. At the same time the cities of Nikšić, Budva, and Kotor will see Local Elections. All in all, this will be the ninth election to be held in Montenegro since its full dissociation with Serbia. This election, however, is being seen by the Opposition as their biggest and best chance to effect change since the break-up of the former Socialist Federal Republic, and for a good reason. According to ‘Vijesti’, the Podgorica daily, this is the first time since 2002 – when the current incumbents first came to power – that certain developments could shake the seemingly absolute supremacy enjoyed by the Government. “Beside the fact that the Opposition is getting serious, having presented a new political option, and could seize a considerable share of the vote, the main concern for the ruling Democratic Party of Socialists (dps) should be that those who are unhappy with the situation in Montenegro now know who they have to vote for”, said the publication. With the Opposition now consolidated, with two parties looking to get Lukić out of office, a high turnout would likely mean the end of the current establishment’s rule. While much of Europe has seen a change in Government due to the

global crises, so often written about, Montenegro has thus far resisted any change. The Opposition hopes that this is no longer the case.

a litmus test for the founding fathers The current coalition, consisting of Milo Đukanović’s Democratic Party of Socialists (dps), and Ranko Krivokapić’s Social Democratic Party (sdp) has been in undisputed power for over a decade. This political marriage, which will continue on into this coming election, has worked on many fundamental issues for Montenegro: independence, the introduction of the Euro as

While much of Europe has seen a change in Government, Montenegro has thus far resisted.

a national currency, and their efforts to gain European Union candidate status. Đukanović, who is regarded by many as being Montenegro’s founding father, will seek to trade on this reputation, especially if it seems as if more pragmatic political campaigning is failing his party. As for Đukanović’s return to active politics – or his running for an executive office – this remains one of the biggest stories in the forthcoming Montenegrin election. Đukanović recently said that he harboured no ambitions towards the offices of President or Prime Minister, but did cast doubt upon his own words when he stated that “this is politics, and you never know what will happen until the very end.” That said, the reasoning behind the early elections, as explained by the Government, is that they feel a full, four year mandate is required in order to successfully negotiate with the European Union, or otherwise they might run the risk of having talks interrupted half-way through the process. The official talks began on June 29th of this year. The Opposition, while in a strong position electorally, are not happy with the snap election. According to Srđan Milić, leader of the Socialist People’s Party (snp), there was no consensus on when an election would be called, and that President Vujanović had essentially shortened the mandate of the entire parliament, against

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the will of those politicians who are not in Government. Moreover, the position of snp is that Montenegro is not able to conduct fair and democratic elections as things stand: a lack of independent media, incomplete electoral registers, and an abuse of public resources during campaigns, by the ruling coalition, are just some of the problems to overcome if full transparency is to be achieved. Furthermore Milić, though dismayed with the circumstances, said his party “will not boycott the elections, if other Opposition parties decide not to do the same”. For the time being, only one party has chosen to abstain from the upcoming campaign, Righteous Montenegro (pc), albeit for different reasons than might be expected.

The maturation of a political era, and its potential termination, can often be adjudged by the alternatives on offer.

expanding the opposition

President Vujanović not resigning Several opposition parties, as well as Srđan Milić of the Democratic Front, had asked President Vujanović to step down from his office so that, like Serbia before them, Montenegro could hold one consolidated election. The reply from the President was that his surrendering

The President of pc, Rade Bojović, explained: “These elections have come too early for us, since we have only been in existence for three months. We do not want to take any risk with elections now, but would instead prefer to develop a longterm alternative to the current political regime”. It is Bojović’s opinion that the electorate could best punish the current Government by abstaining, en masse, from the upcoming election, thus de-legitimising any result. The opposite, being a high turnout, might actually prove the best solution to ousting the incumbents from their perch; let us see why.

his mandate, which expires in May 2013, would be of immense disrespect to the electorate who had voted him into Office. The paradox is more than discernible, especially given the Government’s decision to cut short their own mandate without any qualms.

The maturation of a political era, and its potential termination, can often be adjudged by the alternatives on offer. Since the advent of a more democratic system in Montenegro, the political scene has been dichotomous in nature – Nationalists and Unionists, ‘genuine’ Montenegrins and Serbian Montenegrins. In the short history of this nation, the political parties who represent it have done little but operate to their specific agenda, furthering the segregation of the two camps, perhaps to a point where they might never share common ground again. This contrast is, as one might have surmised, directly connected to the ethnic set-up of the country; according to the 2011 census, 45% of the population identify as Montenegrin, while 30% consider themselves Serb. This data has varied wildly from census to census, with people inclined to feel ‘more’ Montenegrin or Serb as a result of national and political events. Could it be that the Montenegrin people have reached a saturation point? Tired of seeing politics being used almost exclusively as a weapon for furthering various different nationalistic agendas, are the people finally ready to place welfare and prosperity coming to the fore, leaving ideological, mostly identity-based bickering behind? The emerging options from the Opposition might suggest that the answer is ‘yes’.

the choices New Serbian Democracy (nsd) and Movement for Change (pzp) are two parties which have joined forces in a new alliance called the Democratic Front (df),

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under the leadership of Miodrag Lekić, a former Minister in several Montenegrin Governments, long-time Ambassador to Rome, and also a ubiquitous public figure. Another Opposition contender, and possibly the strongest, is Positive Montenegro, a centre-left sovereignist party which bears an intentional nod to Positive Slovenia. A recognisably reformist party, it has thus far proven quite popular with the public, nominally at the expense of dps-sdp ratings, presenting, as it does, an alternative for current supporters of the coalition who no longer believe dpssdp capable of jumpstarting the economy, reducing social inequality, and redeeming the reputations of those State bodies which have alleged ties to criminal spheres. Be that as it may, experts on the ground seem to be of the opinion that the Opposition’s chances of success are no more than moderate. Boris Raonić, Director of the Civic Alliance of Montenegro, said that the “current political situation in Montenegro might differ from that of earlier years, but not drastically; I would stress that the main political division is not as severe as before, but now the sovereignists have one clear alternative available to them – of course we are talking about Positive Montenegro, which has been very critical about the current Government. This may prove appealing to voters who themselves have very strong feelings about Montenegro as their homeland, and that may in turn endanger the position of the ruling coalition.”

Structure of the Montenegrian Parliament Number of MPs in Montenegrin parliament is not fixed but depends on the number of voters: each MP represents 6.000 votes. Majority Democratic Party of Socialists (DPS) Social Democratic Party of Montenegro (SDP) Croatian Civic Initiative (HGI) Opposition Movement for Changes (PZP) Serbian People's Party (SNS) Socialist People's Party of Montenegro (SNP CG) People's Party (NS) Bosniak Party (BS) Democratic Party of Unity (DSJ) People's Socialist Party (NSS) Serbian Radical Party - Vojislav Šešelj (SRS-VS) Democratic Serbian Party (DSS) Liberal Party (LPCG) Democratic Union of Albanians (DUA) Albanian Alternative (AA) Party of Democratic Prosperity

We must add, however, the opinion of Srđan Vukadinović, a sociologist. He believes that Montenegrin voters have but a limited choice, politically speaking, even with the emergence of Positive Montenegro. “The political spectrum is just too wide for the considerably small body of voters, and that leaves very limited space for any new ideologies, options, or political subjects,” said Vukadinović.

41 33 7 1 40 11 9 8 2 2 1 1 1 1 1 1 1 1

And herein lies the main problem. The political spectrum is cluttered in every sense, which means that it will be difficult, for any option, to win on merit or programme alone. In other words, one should not expect wonders to happen, even in the event of the current government being ousted. It just may be that ‘change for change’s sake’ is the absolute best Montenegro can do under the circumstances.

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human interest

A Serbian Permanent Cultural Revolution Remember the Chinese Cultural Revolution? Not the best of memories? It may be that Serbia will soon experience something of a similar bent, albeit dressed in the costume of Nationalism. Already a manifesto has been written, and circulated, by no less than the new Deputy Minister of Culture… and yes, of course there is a black list involved. by Miša Milošević

hen it has come to divvying up the various facets of power, amongst those parties which have formed the Serbian Government over the past decade, it certainly appears as if the offices of culture featured very low on anyone’s wish list. Traditionally, and this is very much the case elsewhere too, chief interest lies with defence, policing, infrastructure, and finance. The reasoning for this need not be delved into too deeply, and the Ministry of Culture, therefore, would not have been viewed as having strategic importance, but rather somewhere to deposit loyal party elders, allowing them one final hurrah on the political stage. Prolonged neglect of such cultural institutions brought about expected consequences: museums and libraries closed, and the wider cultural experience atrophied. Yet there was nevertheless a surprise in store as one of the most radical, nationalistic, and regressive messages (appended as it was to one of the new Government’s many statements), came from the Ministry of Culture, or, as it were, from one of its officials.

the new crusade As we have mentioned in the previous issue, the Serbian Government is facing somewhat of a deficit when it comes to experts and experience in general. It was

for these reasons that names from the past were recalled to active duty. Given the feudal nature of Governmental institutions and publicly owned companies, it was left to each separate body to call upon their own ‘names’, and so it came to be that Dragan Kolarević, novelist and long-time editor at Serbian State Television, was appointed as Assistant to the Minister of Culture, in charge of media and information. Kolarević had also served as the editor of

There are those who are of the opinion that the whole thing may have been orchestrated, if not by the present Government itself, then at least by those close to it.

the News and Culture Programme, partly during the era of Milošević. In the weeks prior to his appointment Kolarević published an open letter – ‘State of the Nation’s Culture’, its casus belli being the theatrical production ‘Zoran Đinđić’, by Croatian avant-garde director Oliver Frljić, which was recently on the playbill in Belgrade. In this particular work the entirety of the Serbian people are held guilty for the assassination of the Serbian Prime Minister, and the piece, truth be told, features a number of rather distasteful scenes, such as the one involving vomiting upon the Serbian flag. It is worth noting that the play itself was very well received, but it was the political message inherent in the play which was Kolarević’s sole focus. Kolarević claims that the cultural identity of the Serbian people, over the past century, has been occupied by various enemies – first by the identity of the newly established Yugoslavia, then by the post World War II Communist regime, and finally by the democratic Government which succeeded Milošević. For him the entire cultural policy of the 20th century had been anti-Serbian and, if you could believe it, a deliberate war waged by the Croatians, Slovenians, and ethnic Albanians – all financed by Serbia’s own money, mind – while ‘true Serbian’ artists were pushed to the margins.

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Kolarević not only listed the names of past promoters of anti-Serbian cultural policies but also offered a list of some 30 individuals – artists, singers, actors, writers, and directors – who are alleged exponents and executors of this specific war. The list doubles as a list of those who have publicly supported Boris Tadić and Čedomir Jovanović, and almost reads as a ‘who’s who’ of the local showbiz and culture scene. The new Assistant concluded with his clarion call: “There is only one remedy against such occupation – an upheaval, meaning a cultural upheaval; the first Serbian cultural upheaval!”

Ratko Božović, a Professor of Sociology, says that “this is a moral problem – it is an anachronism, which reminds us that we are currently regressing, instead of progressing. What if it was precisely Kolarević’s opinions that got him the job?” Branislav Lečić, a famed Serbian actor and one of Kolarević’s ‘heretics’, doesn’t feel threatened by events: “We don’t need such exclusivity today – it belongs to the handicapped, and outsiders.” For the actor, perhaps, it’s still a case of ‘sticks and stones…’

sticks & stones

All of this, however, was just the overture to the Minister’s own, and therefore official, cultural declarations. Bratislav Petković of the Progressives (sns) is a dramatist by education, but had spent most of his non-political career in his family-owned pastry shop, in Belgrade. That particular shop has also made the news, as the business owes several years in back taxes to the State. What brought him to wider attention, rather than some mixture of ice cream and breads, was his founding of Serbia’s first private car museum, a museum which boasts a large collection of

Do we really have an uprising unfolding? Is this the list of supposed heretics who must be eliminated, if only figuratively speaking, in this crusade? As always, there were those who would agree, and those who would disagree. Reaction to this missive was immediate, on all levels. The Government, however, did not choose to act – the coalition parties felt it was not in their remit to pass comment, as Kolarević had published his views prior to his appointment, and before the Government had been formed. Bratislav Petković, Minister of Culture, said quite plainly: “I will not fire Kolarević, and he will stay in the Ministry. Honestly, I have not read the article in question and I am not aware of its contents.” The Prime Minister, Ivica Dačić, also ruled out any action. There is of course the possibility that Kolarević’s version of ‘J’accuse’ may have been more than mere personal meanderings, and there are those who are of the opinion that the whole thing may have been orchestrated, if not by the present Government itself, then at least by those close to it – a well timed and coordinated action intended to announce the future ideological criteria in the Government’s course of managing culture and arts within the country. Firstly, the language is clearly too inflammable for a Minister to have their name directly attached – so it would be more opportune to take advantage of an unelected official instead. In the second instance, in his letter Kolarević fails to pay heed to the museums and libraries which have, for many years now, been closed due to the lack of adequate funding.

Dragan Kolarević

culture as politics

Minister of Culture Bratislav Petković in his natural environment.

rare classic automobiles, hosted in a refurbished World War II military garage; a collection which takes priority, at least in the then future-Minister’s eyes, over any other obligations. “I didn’t feel like selling some of my cars in order to pay the taxes owed,” the Minister recently quipped. Now, with the sns flag flying overhead, Petković is still drawn to controversy

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Kolarević’s List of Shame Zdravko Čolić - probably the most famous pop singer in ex-Yugoslavia in the last 30 years; Momčilo Bajagić - famous ex-Yugoslav and Serbian rock and pop singer; Dejan Mijač - distinguished theatre director; Slobodan Šijan - famous movie director; Mira Banjac - theatre and movie actress; Gordan Kičić- theatre and movie actor; Branislav Trifunović - theatre and movie director; Radoš Bajić - movie and TV actor and director; Vojislav Brajović - famous movie actor in exYugoslavia; Svetozar Cvetković - theatre and movie actor; Predrag Ejdus - theatre and movie actor; Branislav Lečić - theatre and movie actor; Branko Cvejić theatre and movie actor; Tihomir Stanić - theatre and movie actor; Lazar Ristovski - theatre and movie actor; Dara Đokić - theatre and movie actress; Goran Šušljik - theatre and movie actor; Tamara Vučković - theatre and movie actress; Milica Mihajlović - theatre and movie actress; Slobodan Boda Ninković theatre and movie actor; Miroslav Momčilović - dramatist; Jagoš Marković - theatre director; Nataša Ninković - theatre and movie actress; Srdan Golubović - movie director; Vjera Mujović - theatre and movie actress; Tanja Mandić Rigonat - theatre director; Milena Šešić - professor at the Faculty of the Arts in Belgrade; Biljana Srbljanović - famous playwright and writer; Jovan Ćirilov - famous theatre director and historian; Lazar Stojanović - movie director; Srđan Gojković Gile - frontman of the rock band "Elektricni orgazam"; Timothy John Byford - TV director naturalised in Serbia; Dušan Ercegovac - music and video producer; Lena Bogdanović - theatre and movie actress; Đorđe Pavlov - Belgrade male model and restaurateur; Stevan Filipović - movie director; Olivera Ježina - theatre and movie actress; Alek Conić - movie and ad director; Seka Sablić - famous movie and theatre actress; Bora Todorović - famous movie and theatre actor; Puriša Đorđević - famous movie director; Svetislav Basara - acclaimed writer; Miljenko Dereta - dramatist and movie director; Dragan Velikić - novelist; Maja Mičić - Youth Initiative for Human Rights; Jelena Milić - Centre for Euro-Atlantic Studies in Belgrade; Dunja Ilić - pop singer.

– shortly after taking office he found himself involved in an attempt to reopen the National Museum, which had been closed for almost a decade due to a lack of funding for reconstruction. His plan was to move the museum into the main Post Office building. The now vacant building would host a new museum, the Nikola Tesla Museum, while the Town Hall would become the Museum of Serbian Dynasties. In addition to this, the parliament building itself would also host varying exhibitions, thus turning the entire area “into our Serbian Versailles”, in the Minister's own words. This Romanticist approach proved quite impossible and exposed the amateur nature of the Ministry, causing no small amount of dismay amongst the academia, the artistic world, and the officials and staff of the Post Office who had never been consulted on the plan. Further statements, such as “culture should affirm traditional and national values…art should be patriotic…people who have been pushed to the margins must restore their positions”, have done little to calm the mood and, indeed, have evoked

old fears of dictated cultural, educational, and media patterns, reminiscent of the old regime. Or worse.

the true state of culture Without any intention to act as interpreter for the claims of the two Ministry officials, we do have our own views on the Serbian cultural scene, and perhaps an idea as to why it reacted as it did. Even if we accept Petković and Kolarević’s positions as being retrograde they are, nevertheless, not entirely unfounded – they do address what can be described, if briefly, as the over-internationalisation of Serbia’s cultural output and the consequent suppression of local artists, authors, etc. While the nineties, under Milošević, were marked by an overwhelming national, ethnic, Orthodox, quasi-traditional programme of art and culture (coupled with the near absence of any imports of foreign content), the following decade saw a reversal of that policy. Similar in nature to the cultural liberalisation and emancipation which Spain enjoyed after the

All of this caused the Serbian cultural identity to change, but for some it appeared as if that identity was dead, or dying.

demise of Franco, Serbia also saw the arrival of many foreign influences. In this way traditional expression was marginalised, a 180° turn from the previous policy, though this was possibly not the intended result. All of this caused the Serbian cultural identity to change, but for some it appeared as if that identity was dead, or dying. Serbia, as it is still doing, had needed to perform a complete makeover, to present a more hospitable face to those who looked on, yet does that necessarily mean that Serbia’s traditional culture should have been overlooked at the expense of a more modern, international version? Certainly, the 2000s were more marked by quantity than quality, suffering on occasion from bad taste and non-selectiveness. That said, it is unlikely that this programme of modernisation was in any way a sinister ploy to undermine the very essence of Serbia. The system under Tadić may have been flawed, but it would be dangerous to allow the current Government to use culture as a political weapon, loaded with ideological ammunition. If events progress along the current path, the only result possible is a return to nineties, which is hardly something anyone wants. A middle ground would be the obvious solution, but it might be too early in the Government’s reign to expect that. In the meantime, we can only hope that this new cultural policy, as announced – or intimated – by the Ministry, does not become a reality. Cooler heads are called for in this particular battle.

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good stuff

Macedonia’s Wines: High Volume & Decent Quality Macedonia, as a region, accounted for almost two-thirds of Yugoslav wine production. It has been known for quality wines, even in times when quantity came first. Although current production volumes are roughly half that of levels during its heyday, Macedonia still enjoys a huge market share in the region. Reds dominating, the Macedonian product is also excellent value for money. Sadly, however, the country’s winemakers still struggle to come up with a truly exclusive product. Tikveš » T'ga Za Jug

Ezimit » Vranec Reserva

Bovin » Chardonnay

Macedonia’s largest and best known wine producer is the Tikveš winery, located in the Vardar valley. They produce a wide array of alcoholic beverages, from whites and reds, to sparkling wines and spirits. If one is inclined to explore the full range of Tikveš’s bottled product, it is important to keep in mind that their top Alexandria line is grossly overpriced and will leave you somewhat disappointed, if only for the lack of value. Their entry level wines will provide you with plenty of ‘bang for your buck’, and these certainly atone for any shortcomings of the other ranges. We chose to look at one such wine, T’ga za Jug, which is the best known of all Macedonian wines. Over one million bottles are produced annually, so it is also the most widely spread. It is made from the vranec variety of grape, which is the predominant variety grown within Macedonia (although the grape itself is originally Montenegrin). T’ga za Jug is a semi-dry red wine of intense colour, with an aroma reminiscent of raspberries and raisins. It is rich in fine tannin and possesses an overall sweet taste. It is best served with grilled red meat and hard cheeses, at a temperature between 16°C and 18°C. (4-5 Euros)

The Ezimit Winery, located in Štip, is another large Macedonian wine producer, and can be counted amongst the most modern wineries in Europe. We picked another red in this instance, but rather than harp on about merlot or cabernet sauvignon we plumped for another vranec wine, if for no other reason than to illustrate how one variety of grape can yield two rather different types of wine. Vranec Reserva is aged in oak for two years prior to being bottled, and then left to age even further so that the most recent bottles on the market have ‘2006’ emblazoned upon their labels. It is safe to say that this wine is a most definite ‘best buy’, as similar wines from Chile or Spain are priced double what our Macedonian pick will cost you. This is a full-bodied, dry red wine with a pronounced barrique quality (perhaps even too much so). Indeed, rather than turning into an ‘oak monster’, as some would put it, this wine is instead very rich in aroma. It is best served at 18°C as a companion to any cured meat, black olives, and blue cheese. (5 Euros)

Our third wine comes from the Bovin winery, in Negotino. Bovin was only established recently, in 1998, and was Macedonia’s first privately owned winery. Unlike many similar operations in the region, Bovin produces a large quantity of wine without tarnishing the overall quality. This much could be ascertained by looking at the numerous international awards they have won over their short life, and it is this which makes them very much a champion of Macedonian wine. We didn’t want to make this piece entirely about red wine, and so we chose a Chardonnay, which has so far won twice as many medals as all of Macedonia’s Olympians combined. This is a quality dry white wine, of pale yellow hue, tropical fruit nuances and harmonious aromas of vanilla and toast making for a light and easily drinkable wine. Best served chilled at 8°C to 10°C, with mild cheese, fish or white meat, as you would with any other Chardonnay. (7-8 Euros)

september 27th

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to-do list

The Duke Ellington Orchestra

Jovan Kolund탑ija

Marija Braut

September 25th - 30th

October 1st - October 5th

October 10th - 14th

25 FPS

Joy Of Europe 2012

Auto Show 2012

Studentski Centar, Zagreb /

Children's Cultural Centre, Belgrade /

Fair Grounds, Novi Sad /

8th International Experimental Film Festival

43rd European Children's Culture Festival

12th Novi Sad Motor Show

September 27th - 30th

October 2nd - 6th

October 10th - 14th

Green Design Festival

Balkanima

Ambienta

Holiday Inn Hotel, Sarajevo /

DK Studentski Grad, Belgrade /

Zagreb Fair Grounds /

International Festival of Green Industry and Design

9th European Animated Film Festival

39th International Furniture, Home Decoration and Interior Design Fair

September 27th - October 10th

October 5th - 14th

October 11th November 11th

BIO 23

Restaurant Week

Marija Braut: My Zagreb

Croatia /

Cankarjev Dom, Ljubljana /

23rd Ljubljana Bienniale of Design

Three course meals for 100 Kuna at select Croatian restaurants

Exhibition of works by the acclaimed Croatian photographer

Museum of Architecture and Design, Ljubljana

September 29th - October 7th

October 7th

October 11th - 14th

MESS 2012

Jovan Kolund탑ija

Nature & Health Fair

Cankarjev dom, Ljubljana (19:30h) /

Ljubljana Exhibition and Convention Centre /

52nd International Theatre Festival

Classical music concert by an acclaimed Serbian violinist

43rd Nutrition, Wellness, Health, and Ecology fair

October 10th - 12th

October 12th - 14th

various venues, Sarajevo

October 4th

The Duke Ellington Orchestra

Horticulture Festival

Bemus

KD Vatroslav Lisinski, Zagreb (20h) /

Skenderija Centre, Sarajevo /

various venues, Belgrade /

Jazz, or as the Duke would put it, American music concert

International horticulture festival and fair

44th International Classical Music Festival

september 27th

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