Connecting The Region 2023 no. 1

Connecting

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ISSN 3009-4380

The Region

No.1

BUILDING BRIDGES COMMENT

MESSAGE

OPINION

Unlocking the economic potential of regional cooperation

EU calls for acceleration of reform implementation process

Shared interests form the basis of cooperation between countries

Contents EDITOR IN CHIEF: Neda Lukić n.lukic@aim.rs DESIGN: INDIGOCHILD COPY EDITOR: Mark Pullen TRANSLATION & EDITING: PULLEN EDITORIAL HALIFAX CONTRIBUTORS: Ljubica Gojgić Milica Uvalić Adriano Milovan Armin Zeba Dejan Azeski Geri Kolgega Idro Seferi Nada Stojanović Novica Mihajlović PHOTOS: Zoran Petrović SALES MANAGERS: Biljana Dević b.devic@aim.rs Mihailo Čučković m.cuckovic@aim.rs Nataša Novković n.novkovic@aim.rs OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Dragana Skrobonja finance@aim.rs EXECUTIVE DIRECTOR: Maja Vidaković m.vidakovic@aim.rs DIRECTOR: Ana Novčić a.novcic@aim.rs PRINTING: Rotografika d.o.o.

Segedinski put 72, Subotica Connecting the Region is published by: alliance international media d.o.o.

Prote Mateje 52 11111 Belgrade 17, Serbia PAK 125806, Serbia Phone: +(381 11) 2450 508 E-mail: info@connectingregion.com www.connectingregion.com www.aim.rs All rights reserved alliance international media 2023 Connecting The Region is quarterly publication

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08 From ‘Ifs’ to Rational Choices

38 Interests Form the Basis of Cooperation

Professor MILICA UVALIĆ

ZDRAVKO MARINKOVIĆ

Visiting Fellow, European

President of the Foreign Trade Chamber of Bosnia-Herzegovina

ADRIANO MILOVAN

32 P otential Awaiting Realisation

44 Empowering Regional Collaboration

University Institute, Florence, Italy

12 Growth Plan OLIVÉR VÁRHELYI European Commissioner for Neighbourhood and Enlargement

20 F ostering Regional Cooperation GERI KOLGEGA Journalist

CONNECTING the Region / editor in chief Neda Lukić. - 2023, no. 1- .

- Belgrade : Alliance international media, 2023- (Subotica : Rotografika). - 27 cm

26 N o Alternative to Regional Cooperation

Tromesečno.

ISSN 3009-4380 = Connecting the Region COBISS.SR-ID 130142473

Prime Minister of the Federation of Bosnia and Herzegovina

6

28 Stronger Strides Needed

NERMIN NIKŠIĆ

CONNECTING THE REGION BUILDING BRIDGES

ARMIN ZEBA

Journalist

Journalist and editor

DR THORSTEN KLOSEZUBER

34 Focused on Regional Cooperation

Secretary General, Help – Hilfe zur Selbsthilfe e.V.

MICHELA TELATIN Ph.D. UNOPS Serbia Multi-Country Office Director; UNOPS Representative in Serbia, North Macedonia and Montenegro

36 K nowledge Sharing is Our Goal LUKA BURILOVIĆ President of the Croatian Chamber of Commerce

Business Pulse

45

112 B uilding Bridges Together LULZIM RAFUNA resident of the Kosovo P Chamber of Commerce, President of the WB6 CIF Management Board

Connecting

The Region

BUILDING BRIDGES

No.1 · 2023

116 N avigating Regional Challenges IDRO SEFERI Journalist

120 No Success Without Great Effort NINA DRAKIĆ resident of the Chamber of P Commerce of Montenegro

124 Love at Arm’s Length NADA STOJANOVIĆ Journalist

126 European Quality of Life At Home DIMITAR KOVAČEVSKI rime Minister of North P Macedonia

148 Echo of the “Bled pledge” TANJA FAJON

128 Simple Formula, Difficult Application BRANKO AZESKI resident of the Chamber P of Commerce of North Macedonia

136 Regional Cooperation is a Top Priority ANA BRNABIĆ Prime Minister of Serbia

130 New Value Proposition Required

138 Overcoming Barriers and Embracing Opportunities

TATJANA SHTERJOVA DUSHKOVSKA

SLOBODAN CVETKOVIĆ

ecretary General of the S Western Balkans 6 Chamber Investment Forum (WB6CIF)

134 Great, but Not (yet) Working DEJAN AZESKI Journalist

Minister of Economy of Serbia

140 Let’s Be Better for Ourselves and Others MARKO ČADEŽ resident of the Chamber P of Commerce & Industry of Serbia, CCIS

eputy Prime Minister and D Minister of Foreign Affairs of the Republic of Slovenia

150 Strong Support MATJAŽ HAN

lovenian Minister of S Economic Development and Technology

152 The Green Deal Represents a Complex Endeavour

TIBOR ŠIMONKA

resident of the Chamber of P Commerce and Industry of Slovenia

156 A Scandinavialike Balkans? Why not?

NOVICA MIHAJLOVIĆ Journalist

PREMIUM PARTNERS 7

UNLOCKING THE ECONOMIC POTENTIAL OF REGIONAL COOPERATION IN THE WESTERN BALKANS

From ‘Ifs’ to Rational Choices Promoting regional economic integration in the Western Balkans not only echoes the rationale behind EU economic integration, but also promises to stimulate economic growth, attract FDI and accelerate the region’s EU accession.

However, a sustained political commitment and effective government implementation are vital to overcoming present challenges, including lingering political issues between Serbia and Kosovo

By Professor MILICA UVALIĆ, Visiting Fellow, European University Institute, Florence, Italy

egional cooperation has been an important condition for evaluating the progress of the Western Balkan countries in their EU accession process for several decades, as part of EU conditionality requiring countries to demonstrate their willingness to implement regional co-

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fied intra-regional cooperation. Regional cooperation has been incorporated into the Stabilisation and Association Process that has been helping integrate the Western Balkans into the EU. The two processes of economic integration – with the EU and with each other – are mutually reinforcing, as regional integration within the Western Balkans aims to prepare them for smoother future entry into the EU. Although the Western Balkan countries were initially reluctant to imple-

Regional cooperation in the Western Balkans is vital for faster economic development and EU convergence, with the European Commission’s Growth plan emphasising it as a key pillar that fosters accession and attracts substantial financial support operation with neighbouring countries in various policy areas. Drawing on the experience of regional cooperation among Western European countries in the post-World War II period, the aim of regional cooperation is to promote the political stabilisation and economic development of the Western Balkan countries through intensi8

CONNECTING THE REGION BUILDING BRIDGES

ment regional cooperation, fearing that focusing on the region as a whole would delay EU integration, many regional projects have since been implemented successfully. The trade liberalisation process among the Western Balkan countries, which started in 2001 and led to the 2006 CEFTA agreement, has been fundamental to

increasing regional trade. The Berlin Process, launched in 2014, has stimulated interconnectivity and intra-regional cooperation among the Western Balkan countries. The Multi-annual Action Plan for a Regional Economic Area, adopted in 2017, and the Common Regional Market project, agreed at the Berlin Process summit in Sofia in 2020, have led to the implementing of a number of regional projects, further promoting regional trade, investment, labour mobility and digital integration. A number of regional infrastructure projects – in transport, energy, environment, digitalisation – are contributing to improving interconnectivity. The EU’s Economic and Investment Plan for the Western Balkans (October 2020), which is providing nine billion euros of grants and aims to attract another €20 billion in loans, includes flagship projects in the areas of transport, energy, environment and climate, digitalisation, private sector development and labour markets. It will further contribute to connecting the Western Balkan countries and creating a larger regional market. At the November 2022 relaunch of the Berlin Process, leaders from the region approved several agreements that will in-

BENEFITS

CONSTRAINTS

EMIGRATION

Enhancing regional cooperation in the Western Balkans, particularly through the Common Regional Market, could yield significant economic benefits, potentially adding 10% to the countries’ economies.

Despite economic integration efforts, the Western Balkans still face challenges, while slow growth since 2009 is attributed to broader economic weaknesses rather than failures in regional cooperation.

The Western Balkan economies, which are mostly small and economically underdeveloped, face challenges such as low export-GDP ratios and the ongoing emigration of young professionals.

crease citizens’ mobility (travel within the region on the basis of ID cards, mutual recognition of higher education qualifications and professional qualifications). Additional green and blue lanes, aimed at reducing waiting times at borders between the Western Balkans and the EU, have been established. The October 2023 summit of the Berlin Process in Tirana further reinforced the commitments of the Common Regional Market.

Regional cooperation in the Western Balkans has gained importance in recent years, following the February 2022 Russian invasion of Ukraine and the return of EU enlargement to the Brussels agenda. The Growth plan for the Western Balkans, officially proposed by the European Commission on 8th November 2023, places a strong emphasis on regional cooperation, as one of the four pillars that should facilitate the faster economic development of the Western Balkans and its convergence with the European Union (in addition to gradual integration into the EU’s Single Market, the acceleration of fundamental reforms and additional financial assistance of €6 billion – two billion in grants and four billion in loans). Being one of the fundamental elements of European Union conditionality, regional cooperation can clearly contribute to speeding up the EU accession of the Western Balkan countries and facilitate major inflows of financial resources to the region from both public and private funds.

Regional cooperation initiatives have had important beneficial effects for the economies of the region. The process of liberalising trade among Western Balkan countries has helped economic recovery and contributed greatly to the expansion of region-

al trade. A number of recent studies have identified strong beneficial effects of trade liberalisation. Intra-regional merchandise trade has been increasing steadily over the 15 years since the signing of CEFTA, though the impact has been uneven across individual countries. Whereas the relative share of intra-regional exports in total exports has fallen slightly over the past decade, to around 15% by 2018, the trend has since reversed. Moreover, if we consider the Western Balkan countries’ merchandise exports to other countries in the region, in value terms (million US$), a variable performance after 2009, due to the global crisis, was followed by the strong recovery of intra-regional exports from

alised markets around the region an important opportunity.

The potential to increase economic integration of the Western Balkans has been widely discussed. The benefits of economic integration are well known from the theory and practice of European integration. If the Western Balkans integrate their economies regionally, they could achieve stronger economic growth and be more competitive on EU markets. Eliminating various barriers to the free movement of goods, services, labour and capital will boost regional integration, thereby also increasing competition and leading to reduced costs and prices, thus encouraging industrial restructuring. Greater economies of scale

TRADE

The trade liberalisation process among the Western Balkan countries, which started in 2001 and led to the 2006 CEFTA agreement, has been fundamental to increasing regional trade.

In order to enhance regional cooperation in the Western Balkans, it is crucial to actively engage in ongoing initiatives, acknowledge the costs of non-integration and address non-tariff barriers like administrative procedures, differences in fiscal regimes and technical obstacles hindering economic integration 2015 onwards – from a value pf around US$4.5 billion in 2015 to US$7.5 billion in 2021. Although the Western Balkan countries have often regarded trading with neighbours as a “second-best” solution, current limited competitiveness on EU/global markets make the possibility of exporting to more liber-

will be realised on more integrated markets, since firms will operate on a larger market, while productivity gains would be achieved through easier transfers of technology and knowledge. These benefits could be even greater if we consider the current features of the Western Balkan econo-

GAP Despite the benefits of regional cooperation, recent initiatives aimed at economic integration have not resolved some of the main economic problems of the region, such as the economic development divide between the Western Balkans and the EU.

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INTEGRATION

Furthering the economic integration of the region will ultimately benefit the region’s consumers – through lower prices, better quality goods and a broader range of products.

mies: they are mostly small economies and remain at a low level of economic development (by 2022, only Montenegro had reached 50% of the average GDP per capita of the EU-27); they have relatively low export-GDP ratios and have been confronted by longterm problems on their labour markets that have caused the continuous emigration of young people and qualified professionals. The Western Balkans’ small economic size, regional fragmentation and lack of economies of scale remain important constraints for the inflow of additional FDI. According to the European Commission, the potential exists to increase benefits from further regional cooperation in the Western Balkans: boosting economic integration within the region through the Common Regional Market could potentially add 10% to their economies. This assessment is based on a recent World Bank study estimating that reforms of trade and transport policies in the Western Balkans that lead to waiting times at borders being reduced by just three hours are equivalent to removing a value-based tariff of two per cent. Furthermore, reform gains would be maximised if they were coordinated and implemented jointly, so cross-border coordination on the implementation of trade facilitation reforms would generate gains another eight per cent higher.

Despite the benefits of regional cooperation, recent economic integration initiatives have not resolved many economic problems of the Western Balkans. Increased regional integration has not fundamentally contributed to accelerating economic growth or narrowing the gap in economic development between the Western Balkans and the EU. However, slow economic growth and recovery from 2009

onwards cannot be attributed to the failures of regional cooperation, but rather to the general weaknesses of Western Balkan economies (such as a limited ability to attract FDI, inefficient industrial policies, a lack of spillover effects of foreign investment etc.).

What can be done to further increase regional cooperation in the Western Balkans? The further promotion of regional integration should be supported by contributing actively to ongoing regional initiatives and by understanding and recognising the costs of regional non-integration. Despite the various agreements signed by the Western Balkan governments and the removal of tariff restrictions, there are still a number of non-tariff (or institutional) barriers that impede the stronger economic integration of the region – administrative procedures at border crossings, differences in fiscal regimes, numerous technical barriers to trade (different norms regarding sanitary and phytosanitary standards, pharmaceuticals, food origin labelling, labour laws etc.). Creating more integrated

EXAMPLE The aim of regional cooperation in the Western Balkans is to achieve political stability and economic development, inspired by the post-World War II collaboration among Western European countries.

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CONNECTING THE REGION BUILDING BRIDGES

markets requires that the Western Balkan countries remove these non-tariff barriers, which is precisely the intention of the Multi-Annual Action Plan for a Regional Economic Area.

In conclusion, the benefits of regional economic integration are based on rational arguments that have been at the basis of the process of European economic integration. In the Western Balkans, furthering the economic integration of the region will ultimately benefit the region’s consumers – through lower prices, better quality goods and a broader range of products. The liberalisation of regional markets can stimulate competition and economic growth, attract FDI and accelerate convergence with the EU. In order for these benefits to be realised, however, continued political will to support the agreed objectives is crucial, as is the ability of government agencies to implement them.

Among the main challenges, political issues still impede the faster implementation of regional cooperation, particularly the unsettled issues between Serbia and Kosovo. The full implementation of the Ohrid Agreement and advancing of the Belgrade-Pristina dialogue therefore remain fundamental to the success of future regional cooperation initiatives, as well as to accelerating the EU accession of Western Balkan countries. ∙

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By Ljubica Gojgić

INTERVIEW

Growth Plan

We believe that, with this new model, we can integrate the Western Balkans into our Single Market faster, even prior to full EU membership. According to our calculations, this plan has the potential to double the economy of the Western Balkans in the next 10 years

OLIVÉR VÁRHELYI European Commissioner for Neighbourhood and Enlargement

he doors of the European Union are open to Western Balkan countries, but “there are no fixed timelines” for the next enlargement, says Olivér Várhelyi, European Commissioner for Enlargement, in this interview for Connecting the Region.

He emphasises that everything depends on the pace of reforms and economic development. The latest initia-

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vancing, and how much progress has already been made? ― From the outset, Enlargement has been a geopolitical priority for this European Commission. In today’s world, it is universally understood that the Enlargement policy of the European Union is crucial for long-term peace, security, stability and prosperity in our neighbourhood.

Incorporating the Growth Facility into the assistance under IPA III will result in the Western Balkans receiving a similar level of aid per inhabitant as the average offered through cohesion policy in the EU tive to accelerate the EU integration of the region, proposed by the European Commission, involves a €6 billion package, comprising €2 billion in non-repayable grants and €4 billion in favourable loans.

Commissioner Várhelyi, how is the new plan to accelerate economic growth in the Western Balkans ad12

CONNECTING THE REGION BUILDING BRIDGES

As the European Union is preparing to accelerate the enlargement process from an institutional perspective, ensuring the rule of law is upheld and that public administration and democratic institutions are well-equipped, we have introduced a new plan to facilitate tangible integration on the ground as early as possible.

The new Growth Plan for the West-

ern Balkans, launched on 8th November, aims to expedite the accession of Western Balkan nations into the EU while they implement the necessary legislative and institutional reforms.

This plan assists them in narrowing the socio-economic gap between the region and the EU by the end of this decade.

We believe this new approach can fast-track the Western Balkans’ integration into the EU’s Single Market even before full membership. According to our estimates, this plan holds the potential to double the Western Balkans’ economy in the next decade.

The release of funds will be contingent upon the delivery of country-specific Reform Agendas. Each Western Balkan partner will be invited to prepare a Reform Agenda, drawing from existing recommendations, including those from the annual Enlargement Package and the conclusions of the Economic and Financial Dialogue. These Reform Agendas will be based on the countries’ Economic Reform Programmes (ERP). The implementation of the Reform Agenda is slated to take place between 2024

and 2027 and will undergo consultation, assessment, and adoption by the Commission. We have identified seven priority areas for accessing the EU Single Market where we can immediately commence work. However, this list is open-ended and flexible, depending on our partners’ priorities.

Secondly, our objective is to enhance economic integration within the Western Balkan region through the Common Regional Market, aligned with EU rules and standards. Such economic integration could potentially contribute an additional one-third to the region’s GDP. Thirdly, the Reform Agendas, set within the framework of the Growth Plan, will assist our Western Balkan partners in expediting fundamental reforms. These encompass reforms related to the rule of law, democracy, and socio-economic aspects. These reforms are crucial for the swift implementation of the Growth Plan, attracting private investments and fostering sustainable economic growth.

Fourthly, recognising the substantial investments required for these reforms, we have proposed adding a financial assistance package to the Growth Plan. This assistance is intended to expedite reforms through a Reform and Growth Facility for the Western Balkans. The proposal entails a €6 billion package, consisting of €2 billion in non-repayable grants and €4 billion in favourable loans. Incorporating the Growth Facility into the assistance provided under IPA III will result in the Western Balkans receiving a similar level of aid per inhabitant as the average offered through cohesion policy in the EU. The ultimate goal is to support the region in achieving its full economic and social development potential in comparison to EU Member States.

The Growth Plan will complement and reinforce existing support under the €30 billion Economic and Investment Plan for the Western Balkans.

You’ve previously mentioned that you see this investment plan, worth 30 billion euros, as an “investment in peace, security, and prosperity on our continent.” Could you single out some of the “54 flagship projects” of this future investment programme? ― Three years after the adoption of the Economic and Investment Plan worth €30 billion in 2020, we are pleased to announce that we have successfully mobilised more than half of the allocated funds. To date, we have secured over € 16 billion in investments, including over € 4 billion in grant financing. This investment has been directed towards 54 flagship projects spanning sustainable transport, clean energy, environmental initiatives, cli-

will introduce innovative diagnostic and treatment technologies, more advanced patient monitoring capabilities and novel therapeutic diagnostic approaches.

Moreover, our initiatives extend to energy infrastructure, such as the Trans-Balkan Electricity Corridor, which connects the electricity transmission systems of Serbia, Bosnia and Herzegovina, and Montenegro with Croatia, Hungary, Romania and Italy. Additionally, we provide blended financial support to aid the energy transition of micro, small and medium-sized enterprises in the region, contributing to improved connectivity.

Beyond Serbia, we are actively implementing infrastructure investments in the other five Western Balkan partner countries. Notable projects include the approval of solar photovoltaic power plants in Oslomej and Bitola, North Macedonia, as well as

REFORM AGENDA

The implementation of the Reform Agenda is slated to take place between 2024 and 2027.

The Growth Plan will complement and reinforce existing support under the €30 billion Economic and Investment Plan for the Western Balkans mate action, human capital development, digital advancements and private sector growth.

As an example, Serbia has reaped significant benefits from this funding package, with 13 flagship projects implemented in the country. Notably, this support includes the construction of Railway Corridor X in Serbia, facilitating high-speed connections of up to 200 km/h between Belgrade and Niš, thus improving the flow of passengers and freight across the nation.

Another noteworthy project is the construction of a new facility for the University Children’s Hospital Tiršova 2 in Belgrade. This development

Pristina, Kosovo. In Bosnia and Herzegovina and Montenegro, we are investing in the construction of Corridor Vc and the rehabilitation of Montenegro – Serbia rail interconnection respectively. Furthermore, in Albania, we have approved a green transport project that will establish Tirana’s first electric bus rapid transport system, addressing high levels of air pollution and traffic congestion.

My message to all partners involved in these infrastructure projects is that we need to speed up the implementation process, so citizens in the region can benefit from these investments in their daily lives.

OBJECTIVE

SUPPORT

MESSAGE

Our objective is to enhance economic integration within the Western Balkan region through the Common Regional Market, aligned with EU rules and standards.

By 2030, the region should receive a level of support akin to what our Cohesion and Structural Fund countries currently enjoy.

We need to speed up the implementation process, so citizens in the region can benefit from these investments in their daily lives.

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sess the readiness of projects and expedite the implementation of flagship projects that were identified in collaboration with beneficiary economies during the preparation of the Economic and Investment Plan (EIP). Additionally, the WBIF provides a mechanism for regularly updating and discussing new project proposals within the framework of ongoing dialogue.

The WBIF represents a collaborative effort involving the EU, financial institutions, bilateral donors (EU member states and Norway), and beneficiaries. Its primary objective is to enhance harmonisation and cooperation in investment initiatives aimed at advancing the socio-economic development of the Western Balkans, while also contributing to the region’s European perspective.

Part of the funding will be provided in the form of an EU donation to the countries of the Western Balkans. Do you consider that there are enough investors interested in investing in the Western Balkans, and do you know which companies this relates to generally? ― The European Union holds the distinction of being the largest investor

standards with those of the EU. This alignment is critical to attracting foreign investments in key sectors, such as transportation, digital infrastructure and energy.

The next steps involve the European Parliament and the Council scrutinising the proposal for the Facility as part of the MMF mid-term review package. We eagerly anticipate engag-

It is crucial to emphasise that a minimum of €3 billion (€2 billion in grants and €1 billion in favourable loans) from the New Growth Plan will be allocated to investments through the WBIF

THE PLAN

Transitioning from coal to natural gas, the region could immediately reduce its emissions levels by 65%.

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and trading partner of the Western Balkans. With the introduction of the new Growth Plan, our objective is to draw the region closer to the EU markets, enticing an even greater number of EU companies to engage in business and investment activities within the region.

The reforms associated with the proposed Reform and Growth Facility are designed not only to enhance the investment climate but also to provide a compelling incentive for Western Balkan partners to expedite the alignment of their legislation and

CONNECTING THE REGION BUILDING BRIDGES

ing in discussions with the European Parliament and the Council of the EU regarding the Facility, with the hope of potentially disbursing funds as early as next summer.

It is crucial to emphasise that a minimum of €3 billion, comprising €2 billion in grants and €1 billion in favourable loans, from the New Growth Plan for the Western Balkans will be allocated to investments through the Western Balkans Investment Framework (WBIF).

The WBIF is a well-established and efficient platform for assessing projects. Through the WBIF, we can as-

You’ve mentioned the creation of a “greener region” as one of the goals that will be the focus of this investment package. What specifically does that entail? ― When we unveiled the € 30 billion Economic and Investment Plan in 2020, we introduced our vision of a more environmentally conscious Western Balkans within the framework of this document.

In the Green Agenda for the Western Balkans, we have emphasised five key areas where our efforts have been promptly initiated: (1) Climate action, encompassing decarbonisation and energy security; (2) Circular economy, addressing issues such as waste management and recycling; (3) Biodiversity; (4) Combating air, water and soil pollution; (5) Sustainable food systems and rural areas. Within these pillars, we have outlined over 50 initiatives that we support in these areas. One of the most significant initiatives is the Clean Energy Transition.

Coal remains a fundamental component of the energy sector in the Western Balkans, accounting for approximately 70% of electricity generation in the region, and in some countries as much as 97%. Transitioning from coal to natural gas, the

region could immediately reduce its emissions levels by 65%. We are all in agreement that it’s imperative to develop cleaner energy sources, enhance regional energy security, improve availability and address persistent challenges related to air and environmental pollution, which also affect public health. While these investments are costly, we are committed to providing financial support to facilitate the implementation of the region’s green agenda.

What do you consider as the key takeaways of the recent Tirana summit that brought together leaders of the EU and Western Balkan countries? ― The recent Berlin Process Summit in Tirana provided an opportunity to discuss progress on the Common Regional Market, including the implementation of the three regional mobility agreements signed last year in Berlin, as well as the recent voluntary reduction of roaming charges between the region and the EU, along with supporting new agreements. We have also been supportive of the opening of a new College of Europe campus in Tirana, which clearly signifies our backing for the EU path of the Western Balkans.

Our recent Growth Plan for the Western Balkans acknowledges the significance of regional integration among the Western Balkan countries, which includes the implementation of the Common Regional Market.

According to a conservative estimate by the World Bank, the Common Regional Market has the potential to add approximately another onethird to the GDP of the Western Balkan economies over time. Since it is based on the adoption and implementation of EU standards, it serves as a stepping-stone to the EU Single Market.

Therefore, we are convinced that a well-functioning Common Regional Market consisting of 18 million people could be a game changer for the Western Balkans. The region has the potential to become a genuine investment hub, particularly for investors seek-

ing to streamline their supply chains to the EU market. The current market fragmentation and the prospect of dealing with multiple customs regimes deter many investors.

What would you highlight as the most significant impression from the latest European Commission annual report on the progress of Western Balkan countries? ― More than ever, EU enlargement policy represents a geostrategic investment in the long-term peace, stability, prosperity and security of our continent. The renewed momentum of the enlargement process presents opportunities that our Western Balkan partners must capitalise on. Taking into account the reform efforts undertaken by Bosnia and Herzegovina since being granted candidate status, the Commission has recommended the initiation of EU accession negotiations once the necessary level of compliance with the membership criteria is attained. We are intensifying and

for cluster 3 (competitiveness and inclusive growth); nevertheless, the decision lies within the purview of the Member States. In the case of Montenegro, which has already initiated negotiations for all chapters, further progress in the accession talks will hinge on reforms related to the rule of law, specifically meeting the interim benchmarks delineated in Chapters 23 and 24.

Statements suggesting potential timelines for future EU enlargement garner significant attention in candidate countries. In light of this, what is your perspective on the recent mention of 2030 as a possible year for some of the region’s candidate countries to attain full EU membership? ― The accession process is fundamentally merit-based and contingent upon the progress made by each individual country. It is not bound by fixed deadlines, but rather hinges on the implementation of necessary reforms and the development of a robust econo-

The Growth Plan will complement and reinforce existing support under the €30 billion Economic and Investment Plan for the Western Balkans enhancing our support for and collaboration with the Western Balkans through the Growth Plan, aimed at fostering socio-economic convergence with the EU and expediting the EU accession process.

Which of the Western Balkan nations will commence new accession negotiation chapters with the EU by the conclusion of 2023? ― The Commission presented the screening reports for the “fundamentals cluster” for North Macedonia and Albania to the Council in July of this year. We anticipate a prompt continuation of the process with the goal of commencing negotiations on this cluster by the year’s end. The Commission maintains its assessment that Serbia has met the opening benchmarks

my. The Growth Plan for the Western Balkans that we have put forth offers a substantial opportunity to enhance the region’s preparedness by the close of this decade.

The criteria for EU membership are uniform and clearly outlined in the EU Treaties. Countries that meet these requisite conditions can join, making it unnecessary to await a specific date.

However, based on our projections, by 2030 the region should receive a level of support akin to what our Cohesion and Structural Fund countries currently enjoy.

In light of this new approach, we are creating the potential for enlargement to become a reality. Our Western Balkan partners could position themselves for EU membership by the year 2030. ∙

IN NUMBERS

We have identified

seven priority areas for accessing the EU Single Market where we can immediately commence work Economic integration could potentially contribute an additional

1/3

to the region’s GDP

To date, we have secured over

€16 bln

in investments, including over

€4 bln in grant financing

Coal remains a fundamental component of the energy sector in the Western Balkans, accounting for approximately

70%

of electricity generation in the region, and in some countries as much as

97%

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ALBANIA

BOSNIA-HERZEGOVINA

Windfarms Would Bring Advances

Digital Nomads Needed his largely mountainous country encompassing an area of 51,209km² has a population of 3,271,000. Its GDP stands at 23.37 billion USD, or 7,083.49 USD per capita. Bosnia and Herzegovina has officially been an EU membership candidate country since December 2022.

BiH is a republic, though it doesn’t function as such. Instead of a single president, it has a Presidency consisting of three members representing each of its constituent peoples. They rotate in the position of Chairman of the Presidency every eight months. The country’s Presidency has been headed by Croat Željko Komšić since July 2023. The Council of Ministers of Bosnia and Herzegovina is the executive branch tasked with performing the duties of the government. It con-

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lbania is a country that borders the Ionian and Adriatic seas. It has a population of approximately 2.812 million inhabitants living on an area of 28,748km². Albania’s GDP stands at 18.26 billion USD, which equates to 6,492.87 USD per capita. The country applied for EU membership in April 2009 and was granted membership candidate status in June 2014. Albania has been a NATO member country since April 2009.

The Republic of Albania is headed by President Bajram Begaj, a retired army major general and former Chief of the General Staff of the Albanian Armed Forces, while the country’s government is led by Prime Minister Edi Rama, chairman of the

A

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Socialist Party of Albania.

This country has an economy based primarily on services, agriculture and industrial sectors – food, wood, metals, textiles, petroleum and chemicals industries, mining, tourism etc.

Albania sources almost all of its electricity f rom Renewables - or more specif ically from hydropower. The country is traversed by a large number of rivers, the most important of which is the mighty Drin. Despite having excellent potential to generate electricity from wind power, Albania doesn’t have a single wind turbine. Its problems in this area include a complicated bureaucracy, a small market, antiquated infrastructure and a powerful hydropower lobby.

CONNECTING THE REGION BUILDING BRIDGES

sists of 10 members – including nine ministers and a chairman.

The Council of Ministers is currently headed by Bosnian Croat Chairwoman Borjana Krišto, a member of the Croatian Democratic Union of Bosnia and Herzegovina (HDZ BiH).

The metals industry - processing and auto parts - is the main pillar of the BiH economy, followed by the wood processing industry.

The country has great potential to attract digital nomads, who could be convinced to opt for Bosnia and Herzegovina by the low cost of living, while it is necessary to introduce administrative breaks for residence and work permits in the country.

Digital nomads are mostly engaged in freelance work related to computer programming, project management, design, marketing and similar jobs.

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CROATIA

KOSOVO*

Outstanding Potential of Geothermal Sources

Rural Ecotourism Development Opportunity osovo is an autonomous province of the Republic of Serbia that declared its independence on 17th February 2008 and has been partially recognised as an independent state. Covering an area of 10,887km², it has approximately 1,800,000 inhabitants, 92.42% of whom are Albanians, with Serbs accounting for barely 1.5% of the population. GDP per capita unofficially stands at 5,290.48 USD. Kosovo’s independence has to date been recognised by 98 UN member states, though it has not been recognised by 97 countries, including five EU member states: Romania, Spain, Greece, Cyprus and Slovakia.

Kosovo submitted its application for EU membership on 15th December 2022. The President of Kosovo is Vjosa Osmani of the Guxo [Dare] party, while

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parliamentary republic situated on the boundary between Central and Southeast Europe, Croatia covers a land area of 56,594km² and has 31,067km² of territorial waters. With a population of 3,855,640, Croatia can boast of having a GDP of 68.96 billion USD, which equates to as much as 17,685.33 USD per capita. The Republic of Croatia is headed by President Zoran Milanović, a former leader of the Social Democratic Party, while its government is led by Prime Minister Andrej Plenković of the Croatian Democratic Union. Croatia became a full member of the EU on 1st July 2013, while it has been a NATO member country since April 2009.

Tourism accounts for up to 20 per cent of the country’s GDP,

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making it is a crucial branch of the Croatian economy, particularly in the country’s coastal regions. It is noteworthy that Croatia lost almost 10 per cent of its population over the course of 10 years.

If it were to utilise its natural potential, Croatia could produce 500 MW of electricity from its geothermal sources. In the country’s Varaždin County, where subterranean water reaches a temperature of 142 degrees Celsius at a depth of two and a half kilometres, testing is being finalised on the largest geothermal source, which – apart from generating electricity – could also be used to heat buildings and greenhouses. Alongside its geothermal sources, Croatia also has excellent conditions to develop agrisolar power plants.

CONNECTING THE REGION BUILDING BRIDGES

its Prime Minister is Albin Kurti of the Lëvizja Vetëvendosje [Self-determination Movement] party.

Kosovo’s economy is based on the production of electricity, brown coal and lead and zinc ore, agriculture, and the textiles and construction materials industries.

Ecotourism represents an excellent development opportunity for rural areas of Kosovo, with many villages having been all but abandoned. And given that Kosovo’s rural areas represent regions with outstanding natural assets, they can be transformed into true ecological oases. Kosovo’s natural potential represents a solid foundation for the development of ecotourism, with further development able to impact positively on the sustainable development of the entire territory.

GRAPHICS

WB6 countries have relatively high shares of STEM university graduates Share of STEM graduates in total tertiary graduates

Serbia

29.8

Bosnia and Herzegovina

24.5

Albania

20.8

North Macedonia

20.6

Montenegro

20.5

Unites States

20.1 Source: UNESCO Education statistics 19

MONTENEGRO

NORTH MACEDONIA

Health Tourism Boosts Visitor Numbers

Preserved Nature Could Entice Tourists he Republic of North Macedonia covers an area of 25,713km² and has a population of 2.065 million.

Its GDP totals 13.83 billion USD or 6,694.64 USD per capita. North Macedonia has been an EU membership candidate country since 2005, though it is still awaiting the launch of accession negotiations. Its road to EU membership was initially blocked by Greece due to a dispute over the country’s name, while it is now being obstructed by Bulgaria, which has vetoed the launch of accession negotiations on several occasions since 2019.

The president of North Macedonia is Stevo Pendarovski of the Social Democratic Union of Macedonia, while the government is headed by Prime Minister Dmitar Kovačevski, who is a member of the same party.

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his former Yugoslav republic on the Adriatic coast encompasses an area of 13,812km² and has a population of 619,200. Its GDP stands at 5.861 billion USD (2021), equating to 9,152 USD per capita. Montenegro has been a formal EU membership candidate country since June 2006 and a NATO member since June 2007.

The country’s president is Jakov Milatović, a member of the ‘Europe Now!’ party, while since October 2023 the prime minister has been Milojko Spajić, also a member of the ‘Europe Now!’ party.

The country’s economy is based predominantly on services, with tourism - as the dom-

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inant service sector – having a major indirect impact on agriculture, trade, construction, transport, culture, crafts and entertainment.

As an extremely attractive tourist destination, Montenegro has solid foundations to develop health tourism, which would contribute signif icantly to improving the country’s economic prosperity. This is confirmed by the experiences of countries with highly developed tourism, where healthcare services represent an integral part of the tourist offer. The number of guests visiting Montenegro could increase thanks to its wealth of spas and natural health resorts.

CONNECTING THE REGION BUILDING BRIDGES

The North Macedonian economy is not well-developed and is largely based on the food and tobacco industries, as well as iron and steel production.

Despite being landlocked, North Macedonia has excellent tourism potential thanks to its mountains and preserved nature, as well as three national parks. Representing a kind of capital of the country’s tourism is the city of Ohrid, which could host even more tourists annually despite being under UNSECO protection. This city is famous for its lake, which boasts several beaches and is surrounded by numerous historical monuments. Although this country has excellent conditions for rural tourism, it has yet to be developed sufficiently and represents a major opportunity that should be pursued.

SLOVENIA

SERBIA

Never Enough Tourism Capacities

trong Returns S From Investing in Both Agriculture and IT he largest of the former Yugoslav republics, Serbia is located at the crossroads of Central and Southeast Europe and covers an area of 88,499km². With a population of 6.834 million, its annual GDP amounts to 63.08 billion USD, or 9,230.18 USD per capita.

Serbia applied for EU membership in December 2009 and gained candidate status on 1st March 2012.

The state is headed by President Aleksandar Vučić, who led the Serbian Progressive Party until recently and is currently in the second year of his second term of office. The current prime minister of the Republic of Serbia, Ana Brnabić, is also in

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ne of the most advanced states of the former Yugoslavia, Slovenia encompasses an area of 20,273km² and has a population of 2,082,599. Its annual GDP totals 61.75 billion USD, equating to as much as 29,291 USD per capita, or 88% of the European average. Slovenia has been an EU member state for almost two decades, having joined on 1st May 2004, a month after it also became a NATO member.

Slovenia’s president is lawyer Nataša Pirc Musar, who ran as an independent candidate and a representative of the left-liberal camp, while the country’s government is led by PM Robert Golob of the Liberals’ Move-

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her second term.

The Serbian economy’s mainstays include light industry, the metal and wood industries, agriculture, mining, tourism, the food industry, energy, textiles etc.

Serbia is among the countries that could further develop its mining sector thanks to an abundance of metal ores and raw materials that aren’t available in most countries. The country also possesses untapped agricultural capacities, possibilities to additionally develop tourism, particularly spa tourism, as well as river transport and port operations, but also to more intensively develop the IT sector, despite current worker shortages.

ment party. The Slovenian economy’s most important sectors include steel production, aluminium processing, the haulage and auto industries, wood processing, textiles and chemicals, agriculture and tourism.

Among the main advantages of the Slovenian economy is the great human potential that’s characterised by a strong work ethic and extremely competitive knowhow in performing complex tasks. It is thanks to this that Slovenia is an ideal destination for establishing SMEs, while the country has excellent potential when it comes to the construction of luxury, high-quality real estate projects of various purposes, but primarily tourism.

Statistics included on population, GDP and GDP per capita are sourced from the World Bank’s figures for 2021. https://datatopics.worldbank.org/world-development-indicators/

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OPINION

ALBANIA

Fostering Regional Cooperation

Over the course of nine years, Albania increased the value of its trade with Western Balkan countries fivefold, thus demonstrating how much it values regional cooperation in practical terms GERI KOLGEGA Journalist

lbania has been following and maintaining a standard when it comes to regional cooperation, as a country that’s always among the first to adopt and implement legislation aimed at reducing border barriers and tariffs, but also eliminating red tape or excessive procedures, in order for the customs clearance process to run smoothly. With 49 acts implemented, CEFTA statistics confirm that Albania has the made the biggest legislative changes.

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porters find this region more compelling because they are geographically closer and the costs are lower than exporting to the European Union. Moreover, the structure of exports, which are composed entirely of raw materials and agricultural products, ensures that they can easily enter the Serbian market, for example, which still relies on heavy industry.

The most important figure showing the importance of regional cooperation for Albania is the trade balance with CEFTA countries. We started with a huge foreign trade deficit in 2013, but nine years later, in 2022, Albania had created a surplus and increased

The Balkan Barometer clearly shows that exporters from Albania, Kosovo and North Macedonia have found it easier to export to CEFTA 2006 than to the EU Through initiatives like the Berlin Process and Open Balkan zone, our country has implemented a series of reforms, such as reducing waiting times at borders, recognising the exchange of phytosanitary certificates, harmonising professional qualifications and providing for the free movement of workers. The Balkan Barometer clearly shows that exporters from Albania, Kosovo and North Macedonia have found it easier to export to CEFTA 2006 than to the EU. Albanian ex22

CONNECTING THE REGION BUILDING BRIDGES

the value of its exports fivefold. From exports worth 188 million euros, we last year exported goods worth 686 million euros to CEFTA countries and imported goods worth around 609 million euros, generating a surplus of 77 million euro.

Twenty per cent of Albanian exports went to CEFTA countries in 2022, while that total was only 11% back in 2013. The greatest increases in trade have been recorded with Kosovo and Serbia. CEFTA figures show that, from

2013, goods imported to Albania from Serbia increased from a value of 108 million euros to 270 million euros.

Over the course of nine years, our trade only reduced with Bosnia-Herzegovina, while it increased with all of the other five countries with large margins, ranging from 50–76%.

Albania provides a major contribution to regional cooperation with initiatives like the “One Stop Shop” and the Balkans Trade and Transport Facilitation project. This project was initially launched in 2010, with the help of the World Bank, and is now being renewed by the Albanian government, under the scope of the socalled 2.0 proposal. In this phase, Albania hopes to create more efficient Green Corridors and to further digitalise its customs clearance services. The mutual recognition of Authorised Economic Operators is also a big step in this direction. Businesses are certified

by Albanian institutions and offered a dedicated customs clearance service.

Meanwhile, the “One Stop Shop” concept has been implemented with Kosovo, Montenegro and North Macedonia. Its main aim is for there to only be one stop at the border. This initiative has shown that it can cut waiting times for haulage vehicles, and also the costs for businesses, by half. That figure was confirmed by the Balkan Barometer and the business climate survey that it conducted in 2022. Ac-

cording to the associated report, Albania also appears to have the quickest customs clearance process for imports among the countries of the region, with nearly half of non-exporters completing it in as little as two days.

Albanian enterprises are also encouraging and benefitting from another regional initiative: the movement of citizens around the region with the use of only personal ID cards. Respondents from Albania and Kosovo are the most enthusiastic supporters of the plan, with 88% and 76% support respectively, according to Regional Cooperation Council. Businesspeople from Albania are also the top supporters of initiatives to hire people from other Western Balkan economies, particularly Kosovo and North Macedonia, apparently owing to the lack of a language barrier. Albanian businesses also led the region in terms of innovation in 2022, with 40% of all products in the country developed for the first time.

When it comes to the regional performance strategy and the comparative advantages of the market, agriculture is the sector in which Albania remains highly competitive in the regional context. The latest World Bank data show that agricultural products account for 66% of Albanian exports to the EU, representing the highest percentage in the region. New investments are also being made to establish capacities to process products and thereby create higher added value for the economy.

Another sector where Albania plans to create a competitive advantage is the energy sector. The country’s parliament has approved the construction of a hydropower plant with a power generating capacity of 1GWH, which is one of the biggest projects in the region. We are also anticipat-

ing major oil discoveries by company Shell in the Shpirag oil field.

Albania is also leading the region in terms of tourism and we expect to reach a record number of 10 million tourists for this year. According to Eurostat, Albania also become the top country in Europe and the third worldwide when it comes to the biggest increases in tourist numbers. Albania has doubled the size of its capital city’s airport, where two of Europe’s biggest low-cost carriers, Ryanair and WizzAir, are now competing

ern Balkans to the Adriatic Sea and the markets of the EU. Projects include a railway from Tirana to the Montenegrin border and another one connecting Durrës and the Kosovo capital of Pristina, as well as a highway linking Tirana and Skopje. These will be connected directly to the “Dry Port” in Durrës, a facility that’s been created next to the port and where regional countries will be able to clear goods without having to subsequently stop for control at the border check-point.

Real estate is another sector where

HIGH LEVEL

Agriculture is the sector in which Albania remains highly competitive in the regional context.

Albania provides a major contribution to regional cooperation with initiatives like the “One Stop Shop” and the Balkans Trade and Transport Facilitation project

and making our country even easier to reach. Works are also nearing completion on another airport in the suburbs of Vlora, a coastal city in the south of the country.

With a view to its strategic location, Albania has launched major infrastructure projects aimed at transforming the Port of Durrës and turning it into the main gateway of the West-

Albania is projecting massive growth.

Albania received FDI of 1.2 billion euros in 2022, the highest in the region, with 60% of that total relating to the real estate sector.

Albania also has one of the youngest and best-educated workforces in the region, contributing to its skilled labour pool and innovation, as well as competitiveness in various sectors. ∙

Digitalising public services The most prevalent word in Albania over the last five years has been “digitalisation”, and more specifically as it relates to public services. Efforts aimed at improving the business environment, simplifying regulations and streamlining administrative processes

have been implemented in order to attract foreign direct investment and encourage entrepreneurship.

The government has embarked on a journey of putting everything online and has presented an ambitious plan to become completely digital by 2030.

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Event Highlights Berlin Process Summit in Tirana Western Balkan countries should join the EU asap

Tirana hosted the 16th October 2023 summit of the Berlin Process, which gathers leaders of the Western Balkans and the European Union. This year’s summit, the first to be held beyond the borders of the EU, saw European leaders call for the acceleration of the accession of Western Balkan countries while they also agreed that the Berlin Process is the best instrument to speed up the European integration of the region.

“It is quite clear that, 20 years after the accession of these countries was promised, it must happen soon,” said German Chancellor Olaf Scholz.

The summit also addressed the topic of relations between Serbia and Kosovo, with European leaders insisting that bilateral conflicts mustn’t be an obstacle to the process.

A regional agreement on the mutual recognition of professional qualifications was signed during the summit. This entails acknowledging diplomas and enabling freedom of movement for workers in four other professions: nurses or medical technicians, veterinary surgeons, pharmacists and midwives.

Brdo-Brijuni Summit in Skopje Preventing the disregarding of the region is important

The 12th summit of the Brdo-Brijuni Process, this year held in Skopje, culminated on 11th 24

September with a plenary session that saw Western Balkan leaders pledge to intensify their strategic dialogue with EU institutions aimed at accelerating the EU accession process and preventing the disregarding of the region.

The summit included a discussion of the European perspective of the Western Balkans, climate change and youth emigration, but also economic issues. The Declaration emerging from the summit emphasised that the achievement of the goal of integration calls for the EU and the Western Balkans to be ready for the enlargement of the Union by 2030 at the latest.

The summit was jointly hosted by North Macedonian President Stevo Penderovski, Croatian President Zoran Milanović, and Slovenian President Nataša Pirc Musar, while Serbian President Aleksandar Vučić was also among the participants.

The first summit of the Brdo-Brijuni Process, launched based on the joint initiative of the presidents of Slovenia and Croatia, was held in 2013 at Brdo Castle near the Slovenian city of Kranj.

tries of the Western Balkans future member states,” said Michel in his keynote speech, while he also noted that the road to the EU began for the Western Balkans more than 20 years ago and that the slow pace of this EU journey has disappointed many, both in the region and in the EU. Among those expressing their disappointment was Albanian Prime Minister Edi Rama, who said that he doesn’t believe that his country will become an EU member state by 2030, while Serbian Prime Minister Ana Brnabić stressed that Euroscepticism remains high in Serbia due to the country having already spent more than 20 years waiting for EU membership.

Western Balkan Leaders Meet in Tirana “Open Balkan” continues to function unhindered

Bled Strategic Forum EU and Western Balkans to be ready for enlargement by 2030

This year’s Bled Strategic Forum, which opened on 28th August under the title “Solidarity for Global Security”, saw European Council President Charles Michel announce that the EU must be ready for enlargement to encompass the countries of the Western Balkans by 2030.

“It is now time to tackle the challenges of enlargement… and we should call the coun-

CONNECTING THE REGION BUILDING BRIDGES

A meeting of Western Balkan leaders took place in Tirana on 17th July and was attended by Serbian Prime Minister Ana Brnabić, Albanian Prime Minister Edi Rama, interim Montenegrin Prime Minister Dritan Abazović, North Macedonian Prime Minister Dimitar Kovačevski and European Neighbourhood and Enlargement Commissioner Olivér Várhelyi.

The meeting included a discussion of the continuing European integration of the Western Balkans, the upcoming summit of the Berlin Process and the impact of the Open Balkan initiative. The Serbian PM stressed that the ‘Open Balkan’ zone continues to function smoothly and brings numerous benefits to all citizens of this initiative’s member countries.

Speaking after a working lunch, Commissioner Várhelyi said that the EU is committed to the swift implementation of the new development strategy for the Western Balkans announced by European Commission President Ursula von der Leyen in May.

World Economic Forum in Davos Numbers show that the EU’s popularity is on the decline across the region

The Swiss town of Davos once again hosted the annual meeting of the World Economic Forum from the 16th to the 20th of January this year, with Serbian President Aleksandar Vučić in attendance. The panel on Diplomatic Dialogue in the Western Balkans brought Vučić together with other regional leaders and Miroslav Lajčak, EU Special Representative for the Belgrade-Pristina Dialogue.

President Vučić also participated in the event’s panel debate entitled Widening Europe’s Horizons, during which he admitted that he was somewhat pessimistic when it comes to the possibility of Serbia and all other countries of the region joining the EU in the near future.

“We are not as enthusiastic as we used to be, in a way that the European Union is not as enthusiastic about us as we thought it was…

All the numbers show that the popularity of the EU is declining in the region. In North Macedonia and Serbia in particular, even in Montenegro,” said Vučić, noting that this was to be expected due to the pressure being exerted on Serbia over Kosovo and on North Macedonia over its national identity.

Berlin Process Summit in Berlin Western Balkan countries sign three agreements

The summit of Western Balkan leaders under the auspices of the Berlin Process began in Berlin on 3rd November 2022 and included discussion of the EU enlargement process, regional cooperation and energy security.

The summit was hosted by German Chancellor Olaf Scholz, who stated in his opening address that Europe could only be complete once the countries of the Western Balkans join the Union.

“The six countries of the Western Balkans belong to the free and democratic part of Europe, and your membership in the EU is in the interest of all European states,” said Scholz.

The summit included the signing of three regional agreements – on travel with identity cards within the region, recognition of higher education qualifications, and recognition of professional qualifications for doctors, dentists and architects – by the prime ministers of Albania, Bosnia-Herzegovina, Montenegro, Kosovo, North Macedonia and Serbia.

Informal Summit in Athens Re-focusing on the enlargement process

Athens provided the venue for an informal meeting of representatives of the EU, the countries of the Western Balkans, Ukraine and Moldova, which took place on 22nd August this year and resulted in the adopting of a joint Declaration that promises support to the Western Balkans, Ukraine and Moldova in their efforts to join the EU. Emphasising the fact that the countries of the Western Balkans, Ukraine and Moldova share a com-

mon European heritage, history and future, the Declaration noted the importance of these regions being accepted as full members of the European family.

The Declaration states, among other things, “We underlined the importance of setting ourselves a target for the completion of the vision of an EU enriched with the Western Balkans, Ukraine and the Republic of Moldova. We underlined the need for a re-energised and re-focused enlargement process that is tangible and credible, without shortcuts to the set conditions.”

Belgrade Summit Under the Scope of the Open Balkan Initiative Unified in search for solutions to food and energy crises

Serbian President Aleksandar Vučić, Albanian Prime Minister Edi Rama and North Macedonian Prime Minister Dimitar Kovačevski jointly chaired a summit held in Belgrade on 2nd September 2022, under the scope of the Open Balkan initiative. The summit was also attended by interim Montenegrin PM Dritan Abazović, Chair of the BiH Council of Ministers Zoran Tegeltija and foreign ministers of Hungary and Turkey, Péter Szijjártó and Mevlüt Çavuşoğlu. The political leaders discussed the difficult coming winter for Europe and the region, as well as measures that they intend to take to address ongoing food and energy crises.

The Summit included the signing of an Agreement between Serbia, Albania and North Macedonia on food security, a Memorandum of Understanding between the ministries of energy of Serbia and Albania, and a Memorandum of Understanding on cooperation in the field of film and audiovisual activities.∙ 25

BOSNIA AND HERZEGOVINA

By Ljubica Gojgić

INTERVIEW

No Alternative to Regional Cooperation

Let’s put our differences aside and work together to recover, raise economic parameters and utilise our comparative advantages - Nermin Nikšić

NERMIN NIKŠIĆ Prime Minister of the Federation of Bosnia and Herzegovina

he legacy of the 1990s, but also global political and economic challenges, have an impact on opportunities in the region.

The countries of the region have a common objective of achieving economic progress and raising citizens’ living standards, says Nermin Nikšić, Prime Minister of the Federation of Bosnia and Herzegovina, speaking in this interview for CorD’s Connecting the Region.

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When it comes to regional cooperation, there is no alternative. That’s why I believe that we must raise it to the highest possible level 26

CONNECTING THE REGION BUILDING BRIDGES

COOPERATION

We should put our differences aside and work together to recover, raise economic parameters and utilise our comparative advantages.

What do you consider as being the biggest current challenge in the region? ― Our region is unfortunately still trapped in the 1990s, which only complicates the political situation and places a strain on mutual relations. This is naturally also reflected in all other aspects of life and cooperation between nations. I would say that these are our constant challenges. When we add to this the current combination of several external factors (such as the war in Ukraine, the energy crisis, supply chain disruptions, the huge financial packages provided during the pandemic), these challenges only become even more pronounced, as they have led to massive inflationary pressure that has had huge consequences for our economies, like everywhere else around the world. The leading financial institutions implemented restrictive measures that were intended to reduce inflation. The consequences of those measures, but also some additional factors, have also been reflected in losses and contractions for some of the world’s leading economies. For example, Germany, our biggest export partner, is already in recession. And this has had a direct impact on reducing

demand for our products. I therefore consider that we should put our differences aside and work together to recover, raise economic parameters and utilise our comparative advantages.

How would you evaluate the current level of cooperation and how can it be improved? ― When it comes to regional cooperation, there is no alternative. That’s why I believe that we must raise it to the highest possible level. It is a fact that we must invest additional time and effort in raising and improving the living standards of citizens across the region as a whole. That is our common interest. I believe that each country of the region possesses the necessary tools and resources to achieve that goal. All we need is the will. At the end of the

It is a fact that we must invest additional time and effort in raising and improving the living standards of citizens across the region as a whole. That is our common interest day, the citizens of all countries of the region are facing the same economic difficulties and existential problems.

That should provide an incentive for additional and improved economic and political cooperation. We would thereby take a positive stride, while – from the perspective of Bosnia and Herzegovina – that would also provide an additional tailwind on our voyage towards the EU. ∙

The goal I believe that each country of the region possesses the necessary tools and resources to achieve the goal. All we need is the will. At the end of the day, the citizens of all countries of the region are facing the same economic difficulties and existential problems. That should provide an incentive for additional and improved economic and political cooperation. We would thereby take a positive stride, while – from the perspective of Bosnia and Herzegovina – that would also provide an additional tailwind on our voyage towards the EU.

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BOSNIA AND HERZEGOVINA

INTERVIEW

Stronger Strides Needed

Despite Bosnia-Herzegovina having to date achieved only modest results in terms of attracting foreign investments and transfers of new technology, space is opening up to utilise nearshoring as a development opportunity

ZDRAVKO MARINKOVIĆ President of the Foreign Trade Chamber of Bosnia-Herzegovina

n order for Bosnia-Herzegovina to improve its competitive standing, it is primarily necessary to create conditions to more easily attract foreign investments and thereby facilitate transfers of new technology, which at the same time is one of the country’s main competitive opportunities. Due to the limited resources available to B-H to research and develop new technologies, the fastest de-

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CONNECTING THE REGION BUILDING BRIDGES

velopment path for the transferring of new technology is through the attracting of foreign direct investment. The country has so far achieved very modest results in this area, which is why great strides are required in this field.

The Western Balkan region is now confronted by a combination of new challenges: the war in Ukraine, which has resulted in a sharp rise in energy prices and a slowdown in global growth, as reflected in the economic growth of all six countries of the region. Alongside inflation, there is also the tightening of monetary policy.

At the Chamber, and on the basis of our knowledge gathered on the ground, we are aware that the positive impact of nearshoring is being felt in the country despite the current global crises. We are recording ever-more inquiries from foreign investors, and this applies in particular to the metals, textile and footwear industries, as well as the processed food industry.

The Bosnia-Herzegovina economy is such that the country is characterised as a very reliable and professional partner, while its advantages also include geographical proximity to investor countries and its expertise, particularly in traditional industries like the metals, electrical engineering and wood industries.

Compared to all other Western Balkan economies, Bosnia-Herzegovina maintains a high level of realising cooperation with international partners. However, most of that foreign trade turnover unfolds in two directions, with us either buying or selling.

Plenty of room exists to advance cooperation in the area of developing joint products/services, especially when it comes to research and development.

Introducing standards and adapting to market conditions are things that we need to do better in the future.

According to a study on the potential of the Western Balkans to attract foreign investments in the post-Covid period, which was conducted by the Western Balkans 6 Chamber Investment Forum (WB6 CIF), the economies of the region could benefit greatly from the trend among multinational companies of relocating production operations from Asia to Europe.

However, analysis suggests that in or-

der to benefit fully from these likely developments the Western Balkans may need to change the narrative around their economies – from destinations that offer low costs for investors to those that offer high quality. Over the past 15 years, the strategy to attract foreign investors has been based first and foremost on low costs and the availability of cheap labour, low taxes and generous government incentives for foreign investors.

This strategy has had mixed success, with some economies clearly ranking among Europe’s best in terms of FDI, while some are only average despite their best efforts. Investors already know that these economies rep-

panies to cooperate in some of these ways. The Western Balkan economies could also try to better exploit the potential arising from regional cooperation and integration and the “common regional market” when it comes to local and regional sourcing. In the case that a foreign investor is unable to source required goods or services from domestic companies in one of the Western Balkan economies, they could source what they require from another Western Balkan economy, thereby keeping the value chain regional and short.

Finally, building and maintaining good relations with foreign investors appears to be important for at least

er companies and entice other investors to that country.

The WB6 economies are working to harmonise their regulations with the EU acquis, in order to ensure their progressive integration into the EU market, and as such the adopting of European standards – by following the regulations and directives of the European Commission – is an essential step in establishing new partnerships and positioning on new markets.

With the aim of supporting members, 60 WB6 companies last year received free support for foreign exports and to join supply chains across the region and in the EU. A total of 60 adapted export strategies were developed

LABOUR

Foreign investors already know that Western Balkan countries are destinations that offer low labour costs, but they should also be convinced that WB countries offer high quality services.

The Western Balkan countries should promote the potential of the “common regional market” as a resource for organising regional value chains within the scope of major companies resent relatively cheap countries, with low earnings and low taxes, and that these factors will not change markedly in the foreseeable future.

Cooperation between domestic and foreign companies doesn’t only imply foreign companies acquiring domestic companies. Cooperation can also take other forms, such as exchanges of knowledge and information, the joint development of products, joint lobbying in areas of common interest etc. Surveyed domestic companies have indicated that these softer forms of cooperation are the most desirable way for them to collaborate with foreign companies. It is for these reasons that governments and chambers could find an interest in exerting special efforts to facilitate opportunities for domestic and foreign com-

two reasons. The first is that these companies could reinvest, and in the case that they decide to do so, then it is in the interests of the economies of the Western Balkans for their first choice to be to reinvest in the economy of the Western Balkans. Certain investment promotion agencies have stated that they are taking this element into consideration, but it would be good for this to be the rule and not the exception. The second reason is reputation. Interviews with companies and investment promotion agencies have shown that a country’s reputation is a very important factor that drives decisions on where companies locate their production operations. In the case that a country has a good reputation based on good relations with investors, word will spread among oth-

to support producers of metals, alcoholic beverages and agri-food, with them all receiving a list of the standards and documents needed to penetrate new markets. ∙

POTENTIAL

SECTORS

COOPERATION

Plenty of room exists in the Western Balkans to improve cooperation in the field of developing joint products/services, particularly when it comes to research and development.

We are recording ever-more inquiries from foreign investors, and this applies in particular to the metals, textile and footwear industries, as well as the processed food industry.

Domestic companies desire softer forms of cooperation with foreign companies, such as exchanges of knowledge and information, the joint development of products and joint lobbying

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GRAPHICS

WB6 countries have relatively high shares of ICT university graduates Share of ICT graduates in total tertiary graduates

Serbia North Macedonia Bosnia and Herzegovina Albania Germany United States Montenegro

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CONNECTING THE REGION BUILDING BRIDGES

7.2 6.4 6.3 6.1 5.1 5.0 4.5 Source: UNESCO Education statistics 31

BOSNIA AND HERZEGOVINA

OPINION

Potential Awaiting Realisation The example of the economic benefits gained by BosniaHerzegovina from joining CEFTA testifies in support of the deepening of regional cooperation, but that requires stronger political will

ARMIN ZEBA Journalist and editor

he issue of regional economic cooperation has been discussed in Bosnia-Herzegovina for decades. In declarative terms, everyone favours the strengthening of this kind of cooperation with the countries of the region, regardless of whether that implies the region of the former Yugoslavia or the Western Balkans as a whole, but a consensus isn’t

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asm for this type of integration leading to a loss of state sovereignty.

If we disregard that dilemma, which in recent years has mainly boiled down to a choice between the Open Balkan initiative or the Berlin Process, strengthening regional cooperation remains an undeniable imperative in the context of creating essential preconditions for the Bosnia-Herzegovina economy to take more serious strides, with the country’s economy repeatedly and worryingly assessed by the World Bank as

Within regional frameworks, BiH has significant potential in the fields of tourism, energy and wood processing, and in the arms and metals industries as a whole even on the horizon when it comes to the parameters and model from bridging the divides of the regional economy, with the main stumbling block represented by contrasting views on the possibility of excessive enthusi32

CONNECTING THE REGION BUILDING BRIDGES

lagging as far as 60 years behind the EU average. The basic argument in support of this claim, which isn’t refuted by local businesspeople, economic experts or even politicians, regardless of their party philosophy,

lies in the fact that the BiH economy is too weak for it to be able to realise the country’s development potential through independent participation in the global market competition, which is proven by the fact that BiH has an annual deficit in trade with the European Union – its main foreign trade partner by volume – totalling more than three billion convertible marks.

In contrast, since the introduction of the Central European Free Trade Agreement (CEFTA), which came into force at year’s end 2007, the value of BiH’s annual trade with the countries of the Western Balkans and Moldova has almost tripled, with the country’s coverage of imports by exports improving from a modest 60 per cent to an average of 95 per cent.

Demonstrating just how much the region’s economic interconnectedness isn’t only necessary, but also inevitable and primarily natural, is the recent period of the Covid-19 pandemic, when global supply chains collapsed and the EU placed tempo-

rary restrictions or fully halted exports of numerous strategic products, which compelled the countries of the region to focus exclusively on their own production capacities and mutual cooperation.

An additional reason to fortify regional cooperation arises from the reduced competitiveness resulting from the fragmentation of former large economic systems that was conducted under the auspices of the failed experiment to base economic development on SMEs, which led to BiH and the other countries of the region disappearing from the markets of Iraq, Libya and many others. countries of the so-called third world, where the region’s major companies had contracted jobs worth hundreds of millions of U.S. dollars in the not-so-distant past. The possible return of companies from BiH to the aforementioned markets, or their conquest of profitable new markets, such as those of Qatar or the UAE, can only come through the establishment of regional consortia that might be able to take at least a slice of that rich investment cake that is currently in the firm grip of Western multinationals. Unfortunately, despite such ideas having been long present in the public sphere, and even officially promoted through initiatives that are now gathering dust – like the SEE 2020 project of the Council for Regional Cooperation that included the so-called diagonal cumulation of origin provision, or the joint production of specific sophisticated items with high added value intended for third markets, the declared goal of which was to create a million new jobs – they have remained dead letters to this day.

From the perspective of BiH, the swiftest possible transition from talk of regional cooperation to tangible ac-

tion is also welcome in light of the fact that, apart from the borders of the EU remaining closed to many products carrying the Made in BiH label and that it is hampered significantly in the international exchange of goods and services globally by being among the few countries that aren’t members of the World Trade Organization, the narrowness of the country’s market en-

unity on the economic front, as manifested through the functioning of its capital market via different stock exchanges for each of the country’s two entities, the division of the banking system, disparate fiscal policies and the nonexistence of any state economic strategy, all of which significantly diminish its comparative advantages in positioning itself as a significant re-

The period of the Covid-19 pandemic taught the countries of the region to focus exclusively on their own production capacities and mutual cooperation

sures that it doesn’t represent a particularly attractive destination for FDI inflows, the already small volume of which is decreasing year-on-year.

In the context of regional integration, a specific problem of BiH is nonetheless represented by its internal dis-

Opportunities From the perspective of BiH, the tangible implementation of regional cooperation is also welcome in light of the fact that the borders of the EU remain closed to many products carrying the Made in BiH label.

IMPERATIVE

Strengthening regional cooperation remains an undeniable imperative in the context of creating essential preconditions for the BosniaHerzegovina economy.

gional player. And here the story goes full circle – back to a lack of political will, but apparently also to a lack of knowledge, particularly within regional frameworks, of how to turn the existing significant potential in the fields of tourism, energy, wood processing, arms and metals industries as a whole into advantages that make BiH a desirable regional partner for economic cooperation, but also serve as drivers of projects that will shift the country and the entire region from the “bear market zone” that it has represented for multiple decades into a durably stable “bull market zone”. ∙ 33

UNOPS

Focused on Regional Cooperation

UNOPS is a project-based and outcome-oriented United Nations organisation. The UNOPS office headquartered in Serbia covers the organisation’s operations across four Western Balkan countries sults to people by expanding partners’ capacities to implement projects at the regional, national and local levels, fulfilling our mandate in project management, infrastructure, procurement, human resources and financial management.

The projects we’ve been implementing in the region are needs-based and carried out in partnership with the European Union, international financial institutions and bilateral donor governments, such as those

We create capacity at local and national level to support solution-focused environmental projects MICHELA TELATIN Ph.D. UNOPS Serbia Multi-Country Office Director; UNOPS Representative in Serbia, North Macedonia and Montenegro

ith the profile of our Multi-Country Office, a strong capacity and deep understanding of the region and its needs, we can act as a facilitator of regional change, an enabler of transnational cooperation and a supporter of inter-regional integration,” says UNOPS’ Michaela Telatin, pointing out the great potential of the region.

“W

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CONNECTING THE REGION BUILDING BRIDGES

The mission of UNOPS is to help people build better lives and help countries achieve sustainable development. How are you fulfilling your mission in the Western Balkans? ― We have been present in Serbia for over two decades and have been working successfully in North Macedonia and Montenegro for more than five years. In Bosnia-Herzegovina we liaise with the United Nations office of the Resident Coordinator and the Ministry of Foreign Affairs to be able to offer our expertise and we will soon contribute to the joint UN efforts in the country.

We focus on providing tangible re-

of Switzerland, Sweden, Norway the United Kingdom and the United Nations, as well as national host governments. The entire portfolio of our office, which has also served as a hub to launch operations in Eastern Europe, including Ukraine, amounts to a value of 350 million euros, while the projects we’re currently implementing are worth 120 million euros.

EU accession is embedded in the national agenda of every country in the Western Balkans. How is UNOPS supporting the region’s EU accession aspirations? ― The context of operations defines

Dedicated to a Healthy Environment The environment is an area of our operations in which we are increasingly active, especially in North Macedonia, where we are cleaning one of the country’s most hazardous environmental hot spots – the former OHIS chemical plant – and implementing the EU for Clean Air project, aiming to reduce air pollution in four major agglomerations: the capital of Skopje and the municipalities of Bitola, Kumanovo and Tetovo.

the needs, while the operational flexibility of the mandate and modus operandi of UNOPS ensure it is best suited to respond to different countries’ priorities and partners with a variety of stakeholders at local and national levels, including international financial institutions. Ultimately, the context is about people, and through the implementation of projects in the Western Balkans, where EU accession has a strong normative weight, UNOPS is actually doing EU integration in practice. We also provide expertise to ministries dealing with the technical requirements of EU integration, such as translations of European laws, training for journalists and the procurement of IT equipment that supports the path of EU integration.

We are also facilitating regional dialogue and cooperation, not only between the Western Balkans countries, but also with the countries that are part of the future enlargement that could benefit from the expertise that this region has acquired in the revised EU accession negotiation methodology.

Could you provide some examples of promotions of national capacities in the countries where you operate? ― We’ve been working on socio-economic development, the environment, good governance, social cohesion, the rule of law and healthcare, but we’ve also been a proven partner in emergencies like floods or Covid-19 in all three countries. We have been building social housing, providing vulnerable citizens

not only with infrastructure, but also with inclusion measures that stimulate social cohesion. We have supported small and medium-sized enterprises in Serbia and Montenegro, helping them enhance their competi-

tiveness and resilience. Both our social cohesion and socio-economic development initiatives, predominantly supported by the EU, are implemented through grant methodology, enabling not only financial support and ready-

The 120 million euro current portfolio of our Multi Country Office supports local economy, infrastructure, EU accession, and is creating the bases for further investments in the region

made solutions, but also the capacity building of beneficiaries, be they national institutions or local organisations.

Another field of growing importance is the rule of law, where we support national authorities predominantly through the procurement of sophisticated and complex digital solutions, ensuring efficiency and transparency for fundamental rights and security.

We work together with municipalities in upgrading their infrastructure, which needs to be more energy efficient. However, we are also aware of the great number of unmet needs in the economic and infrastructure sectors that are linked to local and rural development, as well as accessibility to social services through enhanced good governance services.

As this region is working towards being part of the European Union, where do you see the added value of UNOPS in this region in the future? ― UNOPS is committed to continue supporting the region of the Western Balkans in its EU accession path, including by enhancing regional cooperation on project implementation. This year, for instance, along with delivering for impact, we have worked on designing context-specific projects that respond to shared challenges linked to waste management, digitalisation, EU accession and other areas requiring regional responses. This is a region of great potential and UNOPS has proven its ability to deliver tangible solutions tailored to the needs of the people. ∙ 35

CROATIA

INTERVIEW

Knowledge Sharing is Our Goal

In aspiring EU member states, the transfer of knowledge is key to integration, creating substantial potential for regional cooperation between chambers of commerce

LUKA BURILOVIĆ President of the Croatian Chamber of Commerce

mplementing the principles of the European Green Deal in businesses in Western Balkan countries can represent a valuable step towards sustainable and environmentally responsible management.

Companies need to set clear sustainability goals (specific, measurable, and time-bound). These goals should align with the principles of the Green Deal, such as reducing greenhouse gas emissions, promoting circular economy practices and increasing energy efficiency.

Alignment with the principles of the European Green Deal can facilitate access to the European Union market, which is one of the world’s largest and most important markets.

This is important considering that European consumers increasingly prefer sustainable products.

The right strategy and approach to sustainability can help companies in transition countries to take advantage of opportunities and minimise threats.

This includes careful planning, investing in employee training and development, and continuously monitoring and adjusting strategies.

I

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CONNECTING THE REGION BUILDING BRIDGES

Countries in transition often have access to international funds and programmes aimed at supporting sustainable projects. This includes EU funds and other forms of funding that support sustainability. This is an opportunity for companies to minimise the costs of adaptation, while it also allows them to transform their operations to meet the expectations of the European market.

Additionally, sustainable finance plays an important role in achieving climate and sustainability goals under the European Green Deal. This means that financial institutions take environmental, social and governance (ESG) factors into considerations when making investment decisions.

Sustainability is an ongoing journey. It is important to be updated on evolving best practices and technol-

ogies, but also to participate in dialogue and advocacy efforts aimed at advancing green policies and regulations in their country.

In order to take advantage of the great business opportunities created by the sustainable development goals resulting from the Green Deal, the contribution of all businesses is extremely important.

Companies based in the Western Balkan countries should thoroughly familiarise themselves with European legislation and regulations related to sustainability, environmental protection and the reduction of greenhouse gas emissions. Understanding these requirements is key to helping companies adapt.

When it comes to the transfer of knowledge between the Western Balkans and the Croatian Chamber of

Commerce in the field of European integration, one has to keep in mind that the European integration process is a complex and multifaceted endeavour that involves harmonising laws, regulations and policies with European Union standards. It requires not only political will, but also a deep understanding of EU mechanisms, legal frameworks and economic dynamics.

For aspiring EU member states, transfers of knowledge play a crucial role in facilitating this integration process.

This is precisely what creates enormous potential for cooperation between chambers of commerce across this region.

European integration relates to the process of forging closer economic, political and social cooperation

Chambers of commerce primarily serve the business community. They are well-versed in the needs and challenges faced by businesses in complying with EU regulations, making them valuable sources of knowledge. At the same time, chambers offer different networking opportunities and organise various events, including seminars, workshops and trade missions, which provide networking opportunities for businesses and policymakers. These events can serve as a platform for knowledge exchange. Chambers have access to experts, consultants and legal advisors who specialise in EU law and regulation. This expertise can be shared with businesses and government agencies to support the European integration process.

the transfer of knowledge in European integration. Over 40 CCE experts actively engaged in the negotiation process, contributing their extensive expertise and resources to ensure Croatia

Choosing the correct sustainability strategy and method can enable businesses in transition countries to leverage opportunities and mitigate risks among European countries. EU accession is a significant goal for Western Balkan countries. EU membership offers numerous benefits, such as increased economic opportunities, political stability and access to a larger common market. However, achieving EU standards and requirements is a formidable challenge, given the complexity of EU regulations and the need for legal, administrative and institutional reforms.

Chambers of commerce are crucial actors in the business community in all countries of this region, connecting businesses, providing them with resources and representing their interests. They have a unique role to play in facilitating transfers of knowledge in the field of European integration.

Cooperation among chambers of commerce in the Western Balkans and Croatia and Slovenia has the potential to significantly assist in the transfer of knowledge in the field of European integration. By leveraging their business-centric focus, networking opportunities and advocacy roles, chambers can foster cross-border collaboration, share information and provide training and support. While challenges exist, the benefits of such cooperation are evident when it comes to facilitating the path towards EU membership and reaping the associated economic and political rewards.

The Croatian Chamber of Economy (CCE) played an important role in Croatia’s accession to the European Union (EU), offering invaluable insights into

met the EU’s stringent requirements.

The CCE’s involvement yielded a wealth of experience, serving as a model for successful cooperation between chambers of commerce and governments. Our efforts encompassed informing, training and supporting Croatian businesses and authorities, facilitating alignment with EU laws, regulations and best practices. The CCE organised seminars, conferences and workshops, educating entrepreneurs and stakeholders on the challenges and opportunities of EU membership. Together with governmental bodies, the CCE identified key issues and challenges, contributing to the development of effective policies and strategies for EU compliance. ∙

STABILITY

As these regions strive for integration, harnessing the collective expertise and resources of chambers of commerce can help pave the way to a more integrated, prosperous and stable Europe.

RESOURCE

GUIDANCE

CHALLENGE

The Croatian Chamber of Economy played an important role in Croatia’s EU accession process.

Chambers of commerce are well-versed in the needs and challenges faced by businesses in complying with EU regulations.

Achieving EU standards and requirements is a formidable challenge, given the complexity of EU regulations and the need for legal, administrative and institutional reform.

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CROATIA

OPINION

Interests Form the Basis of Cooperation Despite Croatia being an advocate for the EU accession of the Western Balkan countries and the fact that it has significant economic cooperation with both Serbia and BosniaHerzegovina, the structure of its political and economic ties are such that it is only partially connected to the region ADRIANO MILOVAN Journalist

he term “Western Balkans” was coined in diplomatic circles during the mid-90s, when proposals for the stabilisation of the territory of the former Yugoslavia began appearing publicly in Europe and around the world.

To put it simply, it emerged as a proposed term to connect the territory that was then referred to as being

T

been perceived by the Croatian public as the “final parting of ways with the Balkans”. And so it was that this new regional concept, presented immediately after the end of the War of Independence, was welcomed to Croatia ‘with a brandished knife’.

The authorities in Zagreb promptly defined Croatia as a “Central European and Mediterranean country”, with the Balkans as a “neighbouring region”. The Constitution was even amended, with a provision added in 1997 stipulating that “It is forbidden

Croatia today has a greater political and economic presence in the Western Balkans than it had prior to joining the EU, when “fleeing the Balkans” was Croatian political dogma “to the south of Slovenia and to the north of Greece”. To simplify it even more, the region was tailored to encompass the countries that emerged from the collapse of the former Yugoslavia – with the exception of Slovenia – and Albania.

That proposal was met with fierce resistance in Croatia. Specifically, the 1991 independence of Croatia had 38

CONNECTING THE REGION BUILDING BRIDGES

to initiate the process of association of the Republic of Croatia into alliances with other states, in which the association would lead, or could lead, to the restoration of Yugoslav state unity, that is, some Balkan state alliance in any form.” And that provision remains in force today.

The topic of regional cooperation has always been viewed with misgiv-

ings in Croatia. Even after the early 2000 rise to power of the left-liberal coalition led by the SDP, a party that rose from the ashes of the former League of Communists of Croatia, Zagreb officially remained faithful to the definition of the country as Central European and Mediterranean.

Moreover, efforts aimed at distancing the country from the Balkans were accelerated. As such, it was already in 2003 that Croatia joined CEFTA, the Central European Free Trade Area, which at the time included Poland, Czechia, Slovakia, Hungary, Slovenia, Romania and Bulgaria.

Trade with the Balkan countries was admittedly also liberalised, though bilaterally. Zagreb didn’t hide its opposition to any kind of multilateral trade agreement in Southeast Europe.

Following the 2001 signing of the Stabilisation and Association Agreement, Croatia formally applied for EU membership in 2003 and became a candidate country the following year.

It had opened membership negotiations by year’s end 2005, which were concluded in mid-2011.

Croatia joined the EU on 1st July 2013. That was the only case of the Union enlarging to include just one new

country since Greece joined in 1981.

Croatia also applied for NATO membership already during the term of the government of PM Ivica Račan. It joined the alliance in 2009, in a “package” with Albania.

It should also be noted that the Euro-Atlantic integration policy was pursued and promoted with equal enthusiasm by the subsequent governments of the reformed HDZ. They also had EU and NATO membership at the top of their list of priorities, while cooperation with the Balkans was made a low priority.

In any case, Western Balkans is were written using quotation marks in Croatia, with the term “Southeast Europe” most often used instead.

Croatia’s flight from the Western Balkans concluded with its EU accession, after which the country has no longer been treated as being part of the region even in official EU documents. And international institutions generally hadn’t classified Croatia as being in the Balkans even prior to that.

The growing importance of other EU member states to the Croatian economy coincided with the country’s accession to the EU. As such, according to data from the Croatian Bureau of Statistics (DZS), the share of EU member states in Croatia’s total exports increased from 58.3% in 2012 to 68.9% last year. The EU’s contribution to Croatian imports also leapt from 62.3% in 2012 to 70.6% last year.

Nevertheless, the importance of CEFTA members hasn’t changed significantly compared to the period prior to EU accession, which confirms that the Western Balkan market remains important to Croatian companies. As such, according to DZS statistics, CEFTA’s share of total Croatian exports stood at 20.8% in 2012 and 19.1% last year. On the import side, CEFTA contributed 6.2% in 2012 and 7.4% a decade later.

Interestingly, the lion’s share of Croatia’s trade exchange with CEFTA members is conducted with Bosnia-Herzegovina and Serbia, which still rank among Croatia’s most important foreign trade partners.

With this year’s inclusion in the Eurozone and Schengen Area, Croatia has been integrated even more deeply into the EU. And yet, cooperation with the countries of the Western Balkans remains important to Croatia.

joining the EU, when “fleeing the Balkans” was Croatian political dogma.

The prevailing view in Zagreb today is that it is in Croatia’s best interest to have a stable neighbourhood that’s integrated into the EU.

With this year’s inclusion in the Eurozone and Schengen Area, Croatia has been integrated even more deeply into the EU. And yet, cooperation with the Western Balkans remains important to Croatia

For example, Zagreb has been stressing for years that it supports the EU accession of all countries of the region. Despite demands on the Croatian political scene that the resolving of outstanding issues from the past be set as a precondition for the EU accession of the Western Balkan countries – particularly Serbia – to date no Croatian government has done so. And it doesn’t appear as though they ever will, because the official position is that bilateral issues should not be bundled together with the accession process.

Whatever the case, it can be stated that Croatia today has a greater political and economic presence in the Western Balkans than it had prior to

The bottom line is that it’s no exaggeration to say that Croatia only “discovered” the Balkans after joining the EU. Something similar also happened to Slovenia, which had fled the Balkans before joining the EU, only to close the circle by having a presence in the region that’s stronger than ever. ∙

Statistics The lion’s share of Croatia’s trade exchange with CEFTA members is conducted with Bosnia-Herzegovina and Serbia, while the bloc’s other members are represented significantly less.

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REGIONAL DAIRY

UNVEILING THE GRANDEUR OF IVAN MEŠTROVIĆ

Ivan Meštrović’s art has arrived at the Klovićevi Dvori Gallery from various global locations, including America and numerous European countries. This exhibition, the largest of the artist’s work to date, opened on 22nd November, showcasing over 200 pieces. Curators Petra Vugrinec and Barbara Vujanović, both museum advisors and doctorate holders, spearhead this landmark event. The exhibition, valued at 30 million euros, is one of the most significant in recent memory. Notably, some artworks, including the wooden giants ‘Adam and Eve’ from the Meštrović Gallery in Split, remained in situ due to their size and weight.

Several pieces are being exhibited in Croatia for the first time, including a portrait of the artist’s great love.

SKOPJE CHOSEN AS EUROPEAN CAPITAL OF CULTURE 2028

Skopje, the capital of North Macedonia, has been ceremoniously declared the ‘European Capital of Culture for 2028’. The announcement was made by the European Commission during a ceremony at the House of European History in Brussels on 20th September. Skopje was selected over its main competitor, the Montenegrin city of Budva. North Macedonia’s Minister of Culture, Bisera Kostadinovska-Stojčevska, expressed the nation’s readiness to rise to this prestigious occasion, stating, “Skopje has seemingly been shaped over centuries for this very challenge. Under the European and Macedonian flags, we shall elevate creative energy across the continent.

Is there a better place for this than Skopje?”

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EU Envisages Expansion The European Commission has unveiled its Enlargement Package for 2023, marking a significant stride for several nations aspiring to join the European Union. The comprehensive report evaluates the progress of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia,

Turkey, and, notably, includes assessments of Ukraine, the Republic of Moldova, and Georgia for the first time.

Particularly, the report highlights Serbia’s diligent implementation of reforms in line with EU accession criteria, especially in the realm of the rule of law. It notes Serbia’s enactment of constitutional changes in 2022 aimed at bolstering judicial independence and the introduction of a new media law, anticipated to significantly improve the regulatory landscape. However, the Commission calls for additional amendments to fully align with EU standards and acquis, with a special emphasis on Serbia aligning more closely with the EU’s foreign and security policy, particularly its stance towards Russia.

Montenegro Celebrates Njegoš Day for the First Time Montenegro marked Njegoš Day as an official state holiday for the first time on 13th November this year, paying tribute to Petar II Petrović Njegoš, a bishop, poet, philosopher and statesman born on this date in Njeguši.

Njegoš laid the foundations of the modern Montenegrin state, establishing executive power and the Senate, organising courts, introducing taxes, founding the first printing press in Cetinje in 1834, and establishing the first school. His most famous works include “The Light of Microcosm,” “The Mountain Wreath,” “The False Tsar Stephen the Little,” and “The Serbian Mirror.” Petar II Petro-

vić Njegoš, a pivotal figure in Montenegrin literature and culture, passed away on 31st October 1851 (new calendar).

Sarajevo Marks 40 Years Since the Winter Olympics Sarajevo commenced its project to celebrate the 40th anniversary of the 1984 Winter Olympics earlier this year with the “Sa-

CONNECTING THE REGION BUILDING BRIDGES

rajevo Olympic Week.” This initiative, aimed at promoting Olympic values and the cultural and sporting life of Sarajevo, is sponsored by the City of Sarajevo and the Olympic Committee of Bosnia and Herzegovina. Contributors to the event include Jure Franko, Amel Mekić, Larisa Cerić, among others. The main event, planned for 2024 and spanning seven days, will feature sports promotions and tours of Olympic sites in the city and mountains. The 1984 Winter Olympics were among the most significant events in the region during the 1980s.

Exit Festival Boosts Novi Sad and Serbian Economy with €21.2 Million

The Exit music festival has announced a significant economic contribution of €21.2 million to Novi Sad and Serbia for the year 2023,

bringing the total economic impact of the festival since its inception to nearly €250 million. The organisers of Exit emphasise the immeasurable international promotion of Novi Sad and Serbia alongside the festival’s monetary value. This July, Exit attracted over 200,000 attendees from 120 countries, with 36.7% visiting Novi Sad for the first time and 83.5% coming specifically for the festival. The majority of international visitors hailed from Austria, Germany, Russia, the United Kingdom, Hungary, Turkey, Bulgaria, Romania, Ukraine, and France, while Croatia, Bosnia and Herzegovina, and Slovenia led the regional attendance.

Montenegro Finally Forms New Government After an intense overnight session, the Parliament of Montenegro appointed the 44th Government on 31st October, four and a half months following the extraordinary parliamentary elections. Led by Milojko Spajić of the “Europe Now” Movement, the new government was supported by 46 MPs, with 19 against and one abstention, concluding the 438-day technical mandate of Dritan Abazović’s government. The 44th Government comprises the President, four Vice Presidents, and 18 ministers from Spajić’s “Europe Now” Movement, the Democrats,

TIRANA’S PYRAMID REPURPOSED

The former Enver Hoxha Museum in Tirana, which served as a NATO base during the Kosovo War, has been transformed into a centre for extracurricular education for teenagers. The renowned Rotterdam-based architectural studio MVRDV designed the renovation of this brutalist landmark, which initially served as a museum dedicated to dictator Enver Hoxha and later stood neglected and graffiti-covered, a ghost of past architecture. After a less than glorious past, the Tirana Pyramid has finally undergone a transformation and now houses cafes, studios, workshops, startup offices, spaces for festival organisation, and classrooms where Albanian youth can attend free technological education workshops.

THE RETURN OF THE NORTHERN BALD IBIS AFTER 400 YEARS the Albanian National Party, and the moderate pro-Serbian SNP.

Second “Wine Vision of the Open Balkans” Fair Opens The second “Wine Vision of the Open Balkans” fair, focusing on wine, food, and tourism, officially opened at the Belgrade Fair

on 16th November. Sponsored by the governments of Serbia, North Macedonia, and Albania, this event is part of the “Open Balkan” initiative, representing a market of 20 million consumers. The fair saw participation from 600 exhibitors from nearly 30 countries, doubling last year’s count and attracting six times more buyers compared to 2022. Half of the exhibitors are from Open Balkan member countries – 260 from Serbia, 74 from North Macedonia, and 21 from Albania. The fair’s portal facilitated over 3,000 meetings where professionals, buyers, and sommeliers discussed business opportunities for regional winemakers.

In May, Slovenia witnessed the return of the Northern Bald Ibis, an extremely endangered species absent from the region for 400 years.

This large migratory bird, with a wingspan of 120 to 135 centimetres and weighing between 1 to 1.5 kilograms, had a wild population estimated at about 420 individuals 20 years ago, with around 1,500 in captivity. They nest in colonies on cliffs in the rocky regions of southeastern Anatolia, the deserts of the Middle East, and Africa. Recently, efforts in Austria to re-establish the Northern Bald Ibis within its territory have led to more frequent sightings in Slovenia, where the birds stop but do not nest.

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GRAPHICS

The share of highly educated people in the total labour force is still below the EU average Share of labour force with high education (% of total labour force)

EU Montenegro Kosovo North Macedonia Serbia Albania Bosnia and Herzegovina

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CONNECTING THE REGION BUILDING BRIDGES

36.5% 32.5% 30.8% 28.5% 27.1% 23.6% 20.7% Source: wiiw and Eurostat 43

HELP – HILFE ZUR SELBSTHILFE

Empowering Regional Collaboration Help facilitates close coordination of humanitarian assistance and development cooperation in Southeast and Eastern Europe, working towards the region’s long-term strategic goals of EU integration and the UN’s 17 Sustainable Development Goals

DR THORSTEN KLOSE-ZUBER Secretary General, Help – Hilfe zur Selbsthilfe e.V.

elp’s strategy in the Western Balkans extends beyond emergency aid, incorporating the transformative power of regional collaboration in addressing humanitarian, social and economic challenges towards achieving sustainable development.

H

The Western Balkan region faces significant humanitarian, social and economic challenges. How can regional connections contribute to addressing these issues effectively? ― At the core of our mission is the principle of providing aid in a way that empowers individuals and communities to build self-determined lives in dignity and security. We operate based on the belief that aid should be provided in a manner that fosters self-reliance and the ability to overcome challenges. In the Western Balkans, we have consistently applied this principle of strengthening the resilience of vulnerable population groups, thus bridging the gap between humanitarian and development-oriented measures at the local level, in collaboration with local partners.

Our understanding of collaboration and regional connections has deepened and proved to be the most efficient model for addressing these challenges and creating a positive impact.

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The “Socio-Economic Empowerment of the Western Balkans” programme operates in Albania, Bosnia-Herzegovina, Kosovo, Montenegro and Serbia. What significant impacts and outcomes has the programme so far achieved? ― Our empowerment in the Western Balkans goes beyond providing emergency assistance during disasters. It focuses on economic liberation and provides skills and knowledge for the unemployed to lead self-determined lives. Our activities emphasise regional cooperation and innovative and environmentally friendly activities.

Our empowerment in the Western Balkans extends beyond providing emergency assistance during disasters. It focuses on economic liberation and the provision of skills and knowledge for the unemployed to lead selfdetermined lives Within the scope of this programme, since 2017, we have established nearly 2,500 businesses and provided skills to over 4,500 people, easing their access to the labour market.

We collaborate with 20 prisons and have supported 100 local initiatives benefiting tens of thousands of citizens. We cooperate with Red

CONNECTING THE REGION BUILDING BRIDGES

Cross Serbia and support the Down Syndrome Association of Kosovo or Roma-Egyptian people and mediators in Montenegro. Overall, we mobilise local CSOs and communities in line with our vision and principles.

Help has taken steps to include green ideas in the Western Balkan region and support sustainable development. Could you explain your strategy in the region and how these initiatives align with your mission and goals? ― We recognise the necessity of a green economy in the Western Balkans and promote environmental and climate-friendly entrepreneurship. Our strategy focuses on connecting education and enthusiasm for green practices, in-kind grants, creating networks, and aligning with legislation.

Our strategy is the product of a comprehensive participatory process that involves experts who have excellent knowledge of the regions and countries in which Help is active.

This strategy was adopted in 2020 and focuses on providing needs-based, environmentally friendly assistance, increasing the resilience of people while recognising the equality of all people in their diversity and circumstances.

In Southeast and Eastern Europe, Help facilitates close coordination of humanitarian assistance and development cooperation, working towards the region’s long-term strategic goals of EU integration and the UN’s 17 Sustainable Development Goals. By addressing the region’s unique challenges, such as political instability and high unemployment rates, we have been able to support the community’s journey towards self-reliance. ∙

Business Pulse

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Contents 70 Creating a Carbon -Free Future 48 S upporting Regional Growth Through Innovations and Green Finance JELENA GALIĆ AIK Banka CEO

50 C ommunity for a Better Living UNIQA

52 Faithful to Tradition, Oriented to the Future

59 Pushing the Boundaries of Technology ANA BAJAGIĆ Marketing & PR manager, Balkan area, Epson

60 Always a Step Ahead

FILIP SIMOVIĆ CEO, M&M Militzer & Münch Serbia

58 C ustomer Expectations Always Come First SŽ – Tovorni promet, d.o.o.

CONNECTING THE REGION BUILDING BRIDGES

LeitnerLeitner, Partner, Serbia – Belgrade

PAVO ÐEDOVIĆ

PAUL CRONIN

56 T eamwork Forms the Essence of Success

JELENA KNEŽEVIĆ

CEO, Steel Impex

Sava Centar CEO

Executive Director at CocaCola HBC Montenegro

72 W e Bring Life to Complexity

MILICA URAZ

62 P rioritising Health and Safety

NIKOLA TRIPKOVIĆ

Country Managing Director at Hitachi Energy d.o.o.

73 A ble to Solve the Problems of Each Client

KRISTINA MILINČIĆ

54 C elebrating 20 Years of Coca-Cola HBC Montenegro

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NINA DUSPER SUŠIĆ

CEO & Managing Director of Adriatic Metals Plc

LeitnerLeitner, Partner, Croatia – Zagreb

73 W e Represent a “One-Stop Shop” for Our Clients BLAŽ PATE

64 Immediate Collaborative Approach Required DOINITA MIHAI Vice President Public Affairs, Eastern Europe South TOMRA

68 No Green and Digital Transitions Without Mining MARIJANTI BABIC Country Head for Rio Tinto Serbia

LeitnerLeitner, Partner, Slovenia - Ljubljana

74 The Only Genuine Marketplace MARKO CAREVIĆ CEO, Ananas e-commerce

75 Strong Driver of Development DENIS AMPOV Country Manager at Ananas.mk

76 Networking the City SANJA PEŠIĆ Alma Quattro CEO

Business Pulse 90 N o Compromise On Quality RONALD SEELIGER Hemofarm Group CEO

78 Top Online Shopping Experience LJILJANA AHMETOVIĆ CEO, Shoppster Srbija & Slovenija

80 N ew Infrastructure for the Digital Energy Era Huawei Digital Power

82 Connecting the Adriatic and the World Akton Group

92 Reliable Partner to the Entire Region NENAD ANDREJIĆ General Manager of Analysis laboratory equipment

94 A Success Story of Cluster Building, Resilience and Exceptional Cooperation JELENA NIKOLIĆ Cluster Head Western Balkans, Country Head Serbia and Montenegro, Zentiva

86 Committed to Patients and Science

95 I t Pays off to Prioritise ESG

VIKTORIJA ZADROHUML

Horváth Consulting

Takeda Country Head for Croatia, Slovenia, Bosnia and Herzegovina

96 A Story Worth Telling

87 Partnership is the New Leadership MILENA ARGIROVIĆ General Manager, Takeda Serbia

88 Playing a Pivotal and Profound Role MOHAMED HAMMAM

MARIA BOLDOR

TIJANA ŠKORIĆ TOMIĆ Gorda Co-founder And CEO

98 R aising Awareness and Developing Solutions JELENA ANDRIĆ GRAFAKOS

100 Oriented Towards Further Regional Expansion MARKO TANAZEVIĆ CEO, Delight Holding

102 F rom Local Success to Regional Expansion BOJAN ŠVONJA ales Director for Serbia and S export markets at Bekament

104 Quality Brings New Markets ROMAN KRATOCHVIL E Industries Business C Partner & Beohemija d.o.o.

CEO

106 R esponsible citizens, global ambassadors: UDG graduates in action University of Donja Gorica

108 Far Ahead of Everyone PROKOPIJE PERIĆ CEO, Plus d.o.o. Podgorica

Managing Director ACO Eastern Europe Adriatic Group

Adriatic Country Manager, Pfizer

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AIK BANKA

Supporting Regional Growth Through Innovations and Green Finance

As a remarkably strong and stable financial institution, 2023 has seen AIK Banka continue to strengthen its image and recognisability on the markets of the region. It has continued to develop and improve its business by following the latest trends in banking

JELENA GALIĆ AIK Banka CEO

ere we discuss with AIK Banka CEO Jelena Galić how large banks and banking groups across the region have adapted to the challenges of recent times, the resilience of the banking system, flexibility and key market trends, AI applications and runaway inflation.

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AIK Banka is already doing considerable work on the implementation and integration of many advanced technologies, with an appreciation for all the advantages of artificial intelligence 48

CONNECTING THE REGION BUILDING BRIDGES

Research and analyses suggest that the region’s banking sector has no reason for concern.

How are current trends developing and what do you expect in the period ahead when it comes to banking activity? ― Since the start of 2023, similar financial and banking market trends have been recorded in the region of the Western Balkans and in Central and Southern Europe. There have certainly been local differences and specificities in individual countries, but the fact remains that large banks and banking groups around the region have adapted successfully and in a timely manner to all the challenges that existed in the previous period. This best testifies to the great readiness and resilience of the banking system, its flexibility and, of course, the stability that all national economies and key market trends primarily depend on.

The first half of 2023, but also the subsequent period, have been marked by further inflationary fluctuations around the region, but also by central banks making moves aimed at curbing inflation and maintaining it at a desired level. It is today a certainty that our region will end the current year with an average inflation rate of 9.5%. Inflation in Serbia will also remain within the controlled parameters planned by the NBS, which will enable all domestic banks to continue their regular operations and will ensure a sufficient level of demand for dinar loans on the domestic market.

Turning to the issue of GDP trends in the region, but also with us here in Serbia, which is always an extremely important catalyst that dictates and influences banks’ credit activities, an encouraging fact is that economic growth in this part of Europe will total approximately two per cent, while in Serbia it will most

certainly stand between two and three per cent, meaning that domestic companies and enterprises will expand and develop, and in so doing will rely on the credit support of banks.

Such a disposition can already be felt strongly among AIK Banka’s clients. We discuss new plans and investments with numerous companies on a daily basis, and we are extremely glad that they all recognise and view AIK Banka as their reliable partner and bank of first choice when it comes to financing major business projects.

Our direct presence on the EU banking market enables us to improve all our services and products continuously, and to do so in accordance with the highest business standards, as well as en-

es – services that are primarily adapted to the needs and expectations of our clients, but that also – with their modern performances – enable clients to further advance their cooperation with the bank.

AIK Banka has increased its presence on the domestic financial market over the previous period, bringing its services closer and more available to Serbian citizens. Here we are certainly referring to our direct physical presence in almost 40 cities and municipalities, but also to the constant availability of our services via modern digital channels that today enable citizens based anywhere to open an account at AIK Banka, apply for a loan and start using any of our banking servic-

Green transition and energy efficiency are no longer mere options, but rather vital prerequisites for further economic development abling us to provide all our clients with services and support that bring special benefits for those clients that operate in Slovenia and Serbia.

We intend to develop our operations in the coming period through an even more active and greater presence in the country and the region, which will make it possible for us to position ourselves as one of the leading banking groups in this part of Europe.

Banks must constantly offer new products and services, a new approach, higher quality, improved availability... Do you dictate trends, as opposed to following them? ― Our dedication to innovation allowed us to very quickly become a pioneer in the development and provision of exceptionally high-quality banking servic-

es Moreover, in recent times there has been ever more talk about the role and applications of artificial intelligence in various segments of life and business, and thus also in banking. AIK Banka is already doing considerable work on the implementation and integration of many advanced technologies, with an appreciation for all the advantages of artificial intelligence, because we want to continuously automate and optimise our processes. Our goal is to ensure our clients feel increasing levels of satisfaction in their work with the Bank, by monitoring their lifestyle habits, as well as their need to have a stable and reliable financial partner that provides understanding, advice and support that they can always rely on.

Green transition, an orientation towards energy efficiency

and the use of renewable energy sources are particularly important today. Does this imply that a green economy is now a necessity? ― Green transition and energy efficiency are no longer mere options, but rather vital prerequisites for further economic development. Experience has shown that such approaches yield great economic benefits extremely quickly by generating savings on energy and resource costs, creating new business opportunities and growing the green industry. Likewise, modern and energy-efficient technologies bring with them not only savings and a more responsible approach to the environment, but also far more productive working models and the greater profitability of those models.

That’s why AIK Banka considers the ecological and social initiatives of companies and industries very carefully, supporting clients that are striving for sustainable business practices.

The bank recently signed a credit line agreement worth 50 million euros with the International Finance Corporation (IFC). This credit line is intended to finance green projects of SMEs in Serbia, with plans for at least 20 per cent of these funds to be directed towards loans for investments that have a positive impact on mitigating the negative effects of climate change.

AIK Banka actively stimulates investments in energy-efficient projects with its credit and risk policies, and this is an approach that we will continue to nurture in the period ahead.

Sustainable development is our only route to a sustainable and more productive future, and AIK Banka is where the future is at.

Our desire is to support, encourage and, of course, educate our clients in such thinking and investments. ∙ 49

UNIQA

Community for a Better Living A responsible partner and employer on 18 European markets, Austria’s UNIQA Insurance Group has a tradition dating back more than two centuries and today represents a community for a better living comprising over 16 million clients. One of the leading insurance companies in Austria and among the TOP 5 insurance companies in Central and Eastern Europe, UNIQA has positioned itself at the very top of the Serbian market since its 2006 arrival in the country

s a leader of innovation, UNIQA is a brand that’s trusted in Serbia by more than 800,000 individual and corporate clients. The company is a leader in the areas of Bancassurance, Travel Insurance, Household Insurance and Health Insurance, with a network of over 1,000 health facilities.

With constant investments in innovation and digitalisation, UNIQA is the only player in the sector that has a complete online insurance process (from initiating an offer, via purchasing a policy and paying the premium, to claims registration and assessment), with a wide network of branches and availability nationwide throughout Serbia.

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UNIQA Insurance, as part of the Southeast Europe (SEE) region, has strong support in terms of further standardisation and process automation, the improvement of customer relations and the continuation of stable and sustainable business development. The SEE region, which includes Bosnia-Herzegovina, Bulgaria, Croatia, Montenegro and Serbia, is the third largest group of companies within UNIQA Customers & Market International, with a premium of 300 million euros and close to 1,600 employees. The SEE group of countries represents great growth and development potential through improved regional cooperation, digitalisation, customer ori-

CONNECTING THE REGION BUILDING BRIDGES

entation and innovation.

In addition to its focus on client needs, at the core of the UNIQA 3.0 strategy is sustainability, which is achieved by creating the best solutions for the protection of the environment and the wellbeing of society. In 2020, UNIQA Group was the first insurance company in Austria to issue “green” bonds worth 200 million euros, which will be invested in climate and environmental protection projects.

UNIQA is also the first insurance company in Austria to become a member of the “Net Zero Asset Owner Alliance” of global investors in the banking and insurance sector, which was launched by the United Nations with the aim of providing an active contribution to the international exchange of information and sustainability strategies. UNIQA Insurance in Serbia, following the Group strategy, also implements local initiatives to contribute to the community, including the planting of more than 4,500 seedlings throughout the SEE region, as well as launching numerous energy efficiency and environmental protection initiatives.

UNIQA in Serbia also implements various CSR initiatives and support projects focused on health, culture, sports, education and ecology. Over the past 17 years, UNIQA has invested more than 140 million dinars in humanitarian and socially responsible initiatives. Its commitment to the community for a better and healthier living for all people has been recognised, as confirmed by numerous awards, including Corporate Super Brand, Top Serbian Brand, the award of London-based magazine World Finance and the double award of the European Business Awards for the best company in Serbia when it comes to growth strategy and client relations. ∙

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Despite fears that the look of the building would be changed, Delta Real Estate preserved the recognisable appearance of the Sava Centar and adapted it to 21st century needs and standards. What do you think architect Stojan Maksimović would say to you? ― Delta Real Estate’s team has been in contact with our celebrated architect since the launch of the reconstruction project. We not only managed to preserve the purpose of the building and the authenticity of its external appearance, but also maximally preserved the interior, while adapting it to new standards and requirement. The renovation of the façade was implemented

DELTA REAL ESTATE

Faithful to Tradition, Oriented to the Future Company Delta Real Estate hasn’t only succeeded in preserving the purpose of the Sava Centar and the authenticity of the building’s external appearance, but has also managed to maximally preserve the interior while adapting it to new standards and requirements.

Everything has been implemented with great attention to detail, expertly and carefully, in order to avoid dashing expectations. And that’s why the result is so impressive KRISTINA MILINČIĆ Sava Centar CEO

nstead of the promised 50 million euros, more than 118 million euros has been invested in the reconstruction works.

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CONNECTING THE REGION BUILDING BRIDGES

And the result is the largest and most modern congress centre in this part of Europe, able to stage gatherings with more than 5,000 attendees and to accommodate up to 8,000 people at any given moment. But that’s only a fragment of its possibilities...

The initial reactions of visitors who’ve seen the renovated Sava Centar tell us that we can be satisfied with the way we’ve carried out the reconstruction works in accordance with Stojan Maksimović’s original project. The new glass is almost identical to the original, but these glass panes are more functional and energy efficient. The interior is still decorated with the recognisable world map, open and visible ceiling installations, orange hydrants and concrete elements combined with glass, which are all characteristics of this building’s specific architectural style. The initial reactions of visitors who’ve seen the renovated Sava Centar tell us that we can be satisfied with the way we’ve carried out the reconstruction works.

Were you aware of the importance of this project for Belgrade and Serbia, but also the entire region, when Delta Real Estate bought the Sava Centar?

― We all have memories connected to the Sava Centar. We all feel some emotion regarding the Sava Centar. It is a venue that brings prestige to Belgrade, where some of the most important world events have played out. It was the pride of Tito’s Yugoslavia, while today, following its reconstruction, I am fully justified in saying that it will be the pride of Serbia. The interest of the public in the sale and subsequent comprehensive reconstruction testifies to the importance of this facility. That’s why we carried out all the works with great attention to detail, expertly, taking care not to dash expectations.

And we succeeded in that.

What do you think visitors to the renovated Sava Centar will like the most, when it comes to both those who previously considered it one of the city’s most important venues and those who will experience it for the first time? ― What they will like the most is the fact that the Sava Centar has remained the same, and yet is new and modern. The congress zone now has a capacity that’s three times greater than it was in terms of halls for hosting gatherings, so instead of 16 halls we now have 46 of various capacities, while we’ve also increased the number of seats in the Great Congress Hall, where we’ve preserved the cascade elements and recognisable wall tapestries, and expanded the exhibition space

to an area of 8,000 square metres. One of the new facilities that only a few buildings around the world can boast of possessing, and which hasn’t previously existed in Serbia and the region, is the Immersive Hall, representing a specialised multifunctional space with the possibility of projecting videos on all its walls. I expect this space to be a genuine attraction for organisers of events, conferences and celebrations wanting to provide their guests with a feeling of total immersion in the content being screened.

You’ve already stated that the number of conference halls has increased from 16 to 46, as has the number of seats in the congress hall that’s equipped with new audio-visual systems. Given the centre’s connection with the adjacent hotel, is this set to be the venue that will host the region’s most important gatherings? ― The fact is that the Sava Centar is the only venue that can functionally host gatherings with more than 5,000 participants and can accommodate as many

Instead of 16 halls, we now have 46 of various capacities, while we’ve also increased the number of seats in the Great Congress Hall and expanded the exhibition space to an area of 8,000 square metres Another new addition is the winter garden, representing a green oasis of more than 1,000 square metres, with natural lighting and a genuine green wall adorned with suitable greenery, which will contribute to creating a better atmosphere for visitors. Future users and visitors can also expect a modern, functional, flexible and technically equipped business-commercial section. The lower level will include renowned retail chains and luxury brands, while the upper level has been reserved for office spaces with various capacities.

as 8,000 people at any one time.

When we add to this the quality and aesthetics of this facility, then the connection with the Crowne Plaza hotel and its close proximity to other hotels, combining all of that with the closeness of Belgrade airport – then yes, we are convinced that this venue will host the most important future events not only for Serbia, but also for the region.

Several thousand people at a single congress means all hotel accommodation capacities in Belgrade being full, but also extra work for restaurants, taxi drivers

and many other service providers.

This is a huge development opportunity for the capital city and for Serbia. Already during the reconstruction, we actively worked on building it up for the staging of congresses.

The congress and business section has already began operating, but when will the great hall welcome its first visitors? ― The plan is for the Blue Hall to receive its first visitors next summer. The hall has retained the blue colour that gave it its name, while the number of boxes has been increased and it has received new seating that’s much more comfortable and includes 4,000 seats instead of the previous total of 3,672. It will also be equipped with the latest audio-visual equipment.

The lobby area in front of the hall, where we eagerly awaited the screenings of hit films or the performances of international and local music stars, will continue to be lit by an impressive chandelier, which is known in our city as ‘nebo’, the sky. Everyone in Belgrade, but also a large number of foreign visitors, know the Sava Centar as the place where they’ve made some of their most important memories, from FEST, from important business and political congresses, celebrations and receptions. We say that it’s now time to create new memories, and the Sava Centar is once again there to help us do so. ∙

Congress with 1,500 participants held on first day On the very first day of operations following reconstruction, the Sava Centar hosted the European Nutrition Congress, with over 1,500 participants. It has already been confirmed that this famous congress centre will host the Congress of the European Society for Cardiovascular Surgery, then the 2025 Heart Failure Congress of the European Society of Cardiology, with more than 5,000 participants, and a year later it will host the Congress of the European Association for Endoscopic Surgery. There is also an entire array of major congresses that cannot yet be announced until the international associations officially announce them in their own events calendars.

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COCA-COLA HBC MONTENEGRO

Celebrating 20 Years of Coca-Cola HBC Montenegro One of the world’s most famous companies has spent the past two decades growing into a stable business system in Montenegro that creates secure jobs and nurtures talented individuals, provides community support and secures a predictable and stable income for the state NIKOLA TRIPKOVIĆ Executive Director at Coca-Cola HBC Montenegro

e’ve raised standards in the hospitality and retail sectors, which are particularly important in countries like ours, where tourism is one of the main branches of the economy,” says Coca-Cola HBC Montenegro Executive Director Nikola Tripković, before noting that he is proud of his team, which has been raising the bar yearon-year when it comes to the company’s approach to customers, market development and innovation.

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Coca-Cola HBC Montenegro is this year celebrating its 20th birthday. How would you describe the first two decades of operations? ― We have behind us two decades of growth and investment. When we launched operations on the Montenegrin market, our portfolio included just a few brands. Today we have a comprehensive 24/7 portfolio. Alongside the world’s most famous carbonated drinks, we also offer consumers natural spring water, carbonated water, fruit juices and energy drinks, as well as top coffee brands and alcoholic beverages. We have thus become a part of special moments in many homes of consumers nationwide.

We’ve progressed from just a few customers to the 3,200 establishments that are now visited by our sales teams. We’ve invested around 8.5 million euros in market development over the course of just the last 10 years.

What would you highlight as your greatest success? ― Our employees – without any dilemma.

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We are particularly active in three areas in Montenegro: environmental protection, youth development and support for vulnerable groups Our company engages more than 100 people directly and indirectly, including in logistics, and among them are people who’ve been part of Coca-Cola HBC Montenegro for the entire 20 years. This is the special worth of this team, as we are building a team that desires to grow and achieve successes and goals together with the company. It is a privilege for me to have a team like this, which raises the bar year-on-year when it comes to the company’s approach to customers, market development and innovation.

Are you among the sustainable business leaders in Montenegro, as is the case on other markets where Coca-Cola HBC operates?

CONNECTING THE REGION BUILDING BRIDGES

― Sustainability is the common thread that runs through all truly successful businesses. We are particularly active in three areas in Montenegro: environmental protection, youth development and support for vulnerable groups. Our initiatives are all multi-year efforts, because we don’t believe in ad hoc solutions, but rather long-term changes that are gradual and planned.

Through the environmental initiative “Catch a clean wave”, we have to date submitted over 100 tons of waste for recycling instead of being landfilled. We were also the first on the market to introduce packaging innovations that reduce plastic use (cardboard packaging for four-can multipacks) and ease the depositing of entire bottles for recycling (attached caps). In cooperation with industry partners and the Chamber of Commerce, we conducted the first Study on packaging waste, which provided approaches to resolve the packaging waste problem.

“Coca-Cola Youth Empowered” is a programme through which we’ve empowered over 3,000 young people from all over Montenegro with skills and knowledge, thereby preparing them for the labour market. We also encourage innovators with ideas that have the power to change the world for the better.

We have for many years been a proud partner of the Social Impact Award programme, but also the European Youth Card in Montenegro, which unites more than 55,000 young people.

With a strong sense of solidarity, Coca-Cola HBC Montenegro is also always prepared to support sensitive groups within our communities, such as socially vulnerable families, children with developmental disabilities, children exploited for begging. With every positive change that we are part of, our purpose becomes whole and complete. ∙

M&M MILITZER & MÜNCH SERBIA

Teamwork Forms the Essence of Success

Militzer & Münch is a company that has become synonymous with high-quality logistics thanks to it being client-oriented and focused on building longterm partnerships. Listening to the needs of clients, adapting services to their requirements and maintaining constant communication has enabled the forming of bonds of trust FILIP SIMOVIĆ CEO, M&M Militzer & Münch Serbia

ey to the company’s growth have been the people whose knowledge and experience have contributed to the its rapid expansion. They are currently focused on expanding operations to Albania and North Macedonia, which will contribute to strengthening Militzer & Münch’s leadership position in the logistics sector of Southeast Europe.

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Your company has managed to become a synonym for high-quality logistics in just four years of operations? How did you gain the trust of clients? ― We had a good leader from the outset, my father Dragan Simović, who transferred to the entire team his many years of experience, unique vision and positive energy. Investing in new premises and technology, and expanding the portfolio of services, enabled the company to satisfy growing demand and create a high-quality logistics offer, and then – thanks to our seriousness, preparedness and expertise – we managed to gain the trust of a large number of clients.

With around 300 employees, M&M is proud of the strength of its team, which – as you yourself say – forms the essence of success? ― Our commitment to maintaining high 56

standards is the key characteristic of our team. A dynamic business environment requires an ability to adapt, and M&M’s team is able to respond quickly to change. Also reflecting our team spirit is our strong commitment to clients, and the energy that you can feel as soon as you enter our premises. Transparent communication within the team and with the management, as well as constant education, enables effective problem-solving and the achieving of common objectives.

M&M doesn’t only follow industry standards, but rather exceeds them, and that includes the use of modern information systems, tracking and inventory management technology, and process automation Our plans for 2024 place an emphasis on expanding our presence around the region.

The opening of branches in Albania and North Macedonia is a strategic move aimed at expanding the availability of our services at an international level. We are thus expanding our geographic coverage and creating a regional hub, which will ease the providing of services, reduce delivery times and

CONNECTING THE REGION BUILDING BRIDGES

enable clients to gain logistical advantages within the wider region.

You are focused on integrating the latest technological trends into your operations and maintaining your commitment to green operations. Are you raising the bar for yourselves and others? ― When it comes to our commitment to green operations and the integrating of technological trends, Militzer & Münch raises the bar from year to year. We started out from solar panels, eco-vehicles and cross-docking, and we’ll see what 2024 brings us. We certainly have a strategic focus on technology that aims to improve efficiency, optimise processes and provide clients with innovative solutions.

M&M doesn’t only follow industry standards, but rather exceeds them, and that includes the use of modern information systems, tracking and inventory management technology, and process automation. Setting high standards in this area implies the implementing of measures that contribute to reducing our ecological footprint, including through the use of renewable energy sources, reducing emissions and ensuring the sustainability of the business as a whole. All of this not only benefits the company, but also has a positive impact on society. By demonstrating the importance of doing business responsibly and contributing to global efforts in the struggle against climate change, M&M serves as an example to other companies in the industry. ∙

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SŽ – TOVORNI PROMET, D.O.O.

Customer Expectations Always Come First

SŽ – Tovorni promet can offer comprehensive logistics services for the transport of a wide range of goods groups, in cooperation with various partners in the logistics chain, both at home and abroad – railway carriers, ports and freight forwarders – Tovorni promet is the largest railway carrier of goods in Slovenia and one of the leading carriers in the region. It is a distinctly internationally oriented company, which transports more than 90 per cent of goods in cross-border traffic. Based on its many years of experience in the field of logistics, it provides its customers with high-quality and competitively priced services both in Slovenia and around Europe. The company carries out transport operations in Slovenia, Austria and Croatia with its own traction, while on other markets it cooperates with long-standing partner carriers. Its customers can choose from a wide range of comprehensive transport and logistics products.

As part of the Slovenian Railways group, SŽ – Tovorni promet is able to offer comprehensive logistics services for the transport of a wide range of goods groups, in cooperation with various partners in the logistics chain, both at home and abroad – railway carriers, ports and freight forwarders. Furthermore, together with sister company Fersped, it can also offer customs clearance services, forwarding services, overseas transport and road transport. In cooperation with company SŽVIT, it is also able to offer maintenance and wagon repair services, while company SŽ-ŽIP ensures cargo safety.

SŽ – Tovorni promet is aware that highquality customer support requires regular co-

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operation. That’s why this company has an extensive sales network throughout Slovenia and representative offices or branches in Italy, Austria, Bosnia-Herzegovina, Hungary, Croatia and North Macedonia. It also pays special attention to the Serbian market, where it has been present with its own representative office for 20 years. In 2015, SŽ – Tovorni promet founded the subsidiary SI-Cargo Logistics d. o. o. in Belgrade, thereby moving even closer to its Serbian customers. In transport services for the Serbian market and other countries around the region, the company cooperates closely with railway carriers on the Alpine - Western Balkan railway freight corridor.

Ljubljana is an important transport hub and an excellent logistics platform for the wider region Slovenia is in an ideal spot for fast connections across the wider area of Central and Southeast Europe. Ljubljana is an important transport hub and an excellent logistics platform for the wider region. At the same time, the Port of Koper is among SŽ – Tovorni promet’s key business partners. This all serves to enable the company to design competi-

CONNECTING THE REGION BUILDING BRIDGES

tive solutions for the transport of complete trains and individual wagons around the entire region.

SŽ – Tovorni promet connects Belgrade and Ljubljana with goods shipped in conventional and combined transport, in cooperation with partner carriers. The company combines goods flows from the countries of Western and Central Europe with transports transiting Serbia. The latest SŽ – Tovorni promet service, introduced this year, is the connection between Ljubljana and Niš.

SŽ – Tovorni promet’s experienced employees constantly adapt their logistics solutions to the specific needs of clients, while they monitor the progress of unfolding transport operations 24/7. Whether transports require complete trains for larger quantities of goods, individual wagons and groups of wagons or door-to-door delivery – the SŽ – Tovorni promet team always finds the best way to ensure goods reach their final destination within agreed deadlines and cost-effectively.

For SŽ – Tovorni promet, the customer always comes first. With large investments in rolling stock, this company will support the growth of customers and the relevance of rail transport as an important factor of sustainable development. As a loyal business partner, this company will continue designing high-quality and flexible services, adapted to the expectations of customers. ∙

EPSON

Pushing the Boundaries of Technology

Epson was founded 80 years ago and has since grown to become a company that’s renowned worldwide, with products that are effective and well-known in every corner of the world. When it comes to the implementing of sustainable development principles, Epson has ranked among the top 1% of companies worldwide for the last three years consecutively www.epson.eu

ANA BAJAGIĆ Marketing & PR manager, Balkan area, Epson

pson is a company that invests approximately 1.14 million euros in research and development every single day, which reflects just how important innovation is to the company, while it also invests more than 770 million euros in sustainable innovation and its commitment to become carbon negative and underground resource free by 2050. And we wish them every success in this endeavour.

The Epson Group has 85 companies worldwide, comprising 81,000 employees, while it is also ranked among the top 100 global tech leaders and the most innovative companies in the world… The numbers are impressive...

As a technology company that originated in Japan, we value the convergence of tradition and innovation. This is what essentially sets Epson apart from other brands in the industry. Following the philosophy of carefully developing devices based on our own technology, we have invested years of research to develop technology that has no negative impacts on our environment. I am pleased to say that, for the third year in a row, we received the EcoVadis Platinum rating that places us among the top 1% of companies around the entire world when it comes to implementing

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the principles of sustainable development.

You are a trusted company thanks to your commitment to providing true value through innovative and creative solutions, while you also take a unique approach to sustainable processes through all production stages.

You always seem to know what the customer wants and needs, but how do you manage to unify quality, price and sustainability?

Sho Sho Sei and monozukuri. Our spirit of creativity, along with our commitment to monozukuri [meaning the art and science of manufacturing] has enabled the delivery of Sho Sho Sei (meaning efficient, compact and precise) characteristics to our core technologies and products, These two Japanese philosophies underpin how Epson runs its product development and reflects Epson’s lean production techniques. Each day, we invest about 1.14 million euros in research and development, as a reflection of how important innovation is to the company, and more than 770 million euros in sustainable innovation and towards becoming carbon negative and underground resource free by 2050.

But we don’t just meet customers’ demands. We go beyond expectations to create products and services that surprise and inspire people, provide for their fundamental needs and are as sustainable as possible throughout their lifecycles. When it comes to choosing technology, embracing sustain-

ability has for far too long been a trade-off with costs for most businesses. But we have been pushing the boundaries of technology to make both synonymous with one another.

We are committed to helping businesses push towards a more sustainable future even when navigating the current financial uncertainty.

From the very inception of the company, and particularly today, you have remained committed to reducing the environmental impact of your products. Do you constantly develop new ways of satisfying environmental standards?

Our aim is to achieve sustainability and enrich communities. Whether that means choosing where our supplies come from, phasing out unsafe chemicals, or ensuring that we are always innovating so that our technology drives energy efficiency, we are committed to being a force for good. Our inkjet printers use our pioneering heat-free inkjet technology. Compared with traditional laser printing, inkjet generates far less energy, because it doesn’t require heat in the printing process.

We provide solutions that support sustainability and protect vital resources, including PaperLab, an in-office water-free secure paper recycler, WorkForce business printers that use Epson’s Heat-Free and Micro Piezo Technology that increases productivity, saves energy, minimises waste and CO2 emissions, saves time and reduces maintenance needs. ∙ 59

STEEL IMPEX

Always a Step Ahead

Expertise, teamwork and dedication to providing a top user experience are the key factors that have propelled Steel Impex to the top and made it the leader of Serbia’s waste recycling industry MILICA URAZ CEO, Steel Impex

ere we speak with company CEO Milica Uraz about the importance of recycling, investments in innovation aimed at pre-

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serving the environment and the planet, the opening of the first scrap metal refining plant in Serbia, the efficient use of resources and company plans.

Founded in 2008, Steel Impex today represents the leader of Serbia’s waste recycling market. What is it that you are capable of or can do better than others? Is there something that set you apart and enabled your rise to the top? ― Steel Impex became a leader of Serbia’s waste recycling market thanks to our passionate dedication to innovation and sustainable operations.

We have always tried to be a step ahead, introducing advanced technologies and processes that enable us to achieve high standards of quality and environmental protection.

Our ability to adapt swiftly to changes on the market and evolve continuously to meet the needs of our clients are what set us apart. Our expertise, teamwork and dedication to providing a top user experience are the key factors that have propelled us to

the top and made us the leader of the waste recycling industry in Serbia.

Approximately 60 million tons of waste are dumped in Serbian landfills annually. This is both an ecological disaster and a huge economic loss?

The continuous promoting of recycling and raising awareness of its importance can help promote a more sustainable way of managing waste in Serbia ― Disposing of massive amounts of waste in landfills does indeed represent an ecological disaster and creates significant economic losses. Recycling is an important part of the solution to this problem because it enables the re-

use of resources, reduces pollution and the ecological footprint, saves energy and reduces the need to build new landfill sites.

Every piece of recycled waste really counts, both environmentally and economically. Recycling materials like metal, paper, plastic and rubber contributes to reducing the amount of waste dumped in landfills. Apart from that, recycling can generate revenue through the sale of recycled materials and the creation of new jobs in the recycling industry. Our company has a key role to play in this fight, as we contribute to reducing of waste and preserving the environment.

The continuous promoting of recycling and raising awareness of its importance can help promote a more sustainable way of managing waste in Serbia.

metal recycling and processing services, which can be a rarity in the region.

2. Added value and resource efficiency: metal refining enables greater precision and efficiency in the separation and processing of metals. This leads to greater added value, as the refined metal can be reused in different industries without a loss of quality.

3. Reduced ecological footprint: refining metals minimises losses and unnecessary pollution. This can be particularly important in countries like Serbia,

You’ve announced the opening of the first scrap metal refining plant in Serbia, in Krnješevci.

How does this recycling centre differ from others on our territory? ― It differs from other recycling centres in the region in several key ways: 1. Specialisation for the refining of metals: our facility specialises in the refining of mixed non-ferrous metals, which represents a precise and sophisticated process and which enables us to provide high-quality

where we are confronted by ecological challenges.

4. Technological advancements: with this work, we demonstrate our dedication to investing in advanced technologies and processes. This can help Steel Impex position itself as a leader in the recycling industry of the region.

In short, opening a metal refining plant in Krnješevci positions Steel Impex as an innovative leader in the recycling industry, with the capability to provide high-quality services and

contribute to a more sustainable way of managing waste in Serbia and beyond.

What will the new plant be able to process? ― We plan to process mixed non-ferrous metals in Krnješevci, including electronic and electrical waste. Our goal is to separate pure copper, aluminium and stainless steel from these mixtures. This is an important step in the preserving of resources and the reducing of the environmental impact, because it en-

Every investment in innovation in the area of recycling has a deeper significance and has a positive impact on our environment and the future of the planet ables the reuse of high-quality metals and prevents the unnecessary dumping of these materials in landfills or their export to operators abroad.

None of what you do would be possible without modern technology and your expert team.

Is every investment in innovation in the area of recycling an investment in a healthy environment and the future of the planet? ― Every investment in innovation in the area of recycling has

a deeper significance and has a positive impact on our environment and the future of the planet. Through the development and application of modern technology, as well as the engagement of expert teams, we are able to process waste more efficiently and sustainably. These investments not only contribute to reducing pollution of the air, water and soil, but rather also reduce the need for the exploitation of natural resources, which is crucial to preserving natural ecosystems.

Innovations in recycling also reduce pressure on landfill sites and prevent them from becoming overwhelmed, thus preserving the quality of the environment and preventing negative impacts on local communities. They also contribute to reducing emissions of greenhouse gases, thereby playing an important role in the struggle against climate change.

Moreover, investment in innovation in the field of recycling supports sustainable economic practices in which resources are used efficiently and enduringly. That creates foundations for a sustainable future, thus securing better quality of life for current and future generations. This all renders investment in innovations in recycling key to the preserving of the environment and the creating of a sustainable future for our planet. ∙

Nothing without advanced technology The processing of mixed non-ferrous metals and electronics waste demands advanced technology and expertise in order to precisely separate the desired metals. Our team of experts and innovative technology will help us achieve this goal. Once we extract pure copper, aluminium and stainless steel, these materials will be able to be used in various industries, from the electrical engineering industry to the construction industry and other sectors, contributing to a sustainable circular economic model and reducing the need for the extraction of new raw materials.

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ADRIATIC METALS PLC

Prioritising Health and Safety

Large international companies play a pivotal role in the mining industry, due to their significant investments and crucial contributions. Adriatic Metals Plc brings the required financial resources, expertise and global networks to drive transformative initiatives and have an enduring impact on the regions in which it operates PAUL CRONIN CEO & Managing Director of Adriatic Metals Plc

he approach of Adriatic Metals Plc involves engaging with the local population, understanding their aspirations and shaping mining projects accordingly.

Despite its significant economic output, this company’s operations seem small due to a deliberate focus on underground mining that minimises surface disturbances.

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It was clear to you from the first time you arrived in the region that there are many unexploited opportunities in the Balkans, which is a region that’s crying out for modern research. Were you right; are there valuable deposits? ― Our daily exploration results and deposits affirm my confidence. The Balkans, spanning over 10,000km, sits on a mineral belt that’s comparable to those of the Andes and the Rocky Mountains. Despite its potential, this area is less explored with modern geo-

physics and geochemistry.

World-class mining districts in the Balkans, like Chelopech/Elatsite in Bulgaria, Bor/Timok in Serbia, and Rosia Montana in Romania, highlight the region’s significant potential.

In Serbia and Bosnia-Herzegovina, where our projects are located, mining technology has advanced since the former period of Yugoslav exploration, attracting major players in the global mining industry. Being in such esteemed company further validates my confidence in our projects.

What led to the specific selecting of the Raška District and two locations in Bosnia-Herzegovina? ― The investment decision wasn’t made hastily. When initially presented, the project struggled to gain attention and support for its vision. In December 2016, our team, including geologists and mining engineers, conducted a comprehensive assessment in Bosnia. We thoroughly examined assets, conducted biodiversity research, tested water and air quality, scrutinised health records and assessed the taxation system – representing an £8 million investment that reflected our commitment to understanding local communities’ resources.

What sets our project apart is its adaptation to community aspirations, ensuring long-term economic sustainability. We continue to explore existing projects with enthusiasm and anticipation. In selecting projects in Serbia, we focused on historic mining areas with known mineralisation. The Raška District exemplifies such an area, neighbouring the former Trepca, the largest mining complex of the former Yugoslavia. Besides prospective geology, Raška offers factors like excellent infrastructure, market accessibility, in-country expertise, a lowcost operating environment, low tax rates and a pro-mining community that’s open to exploration and mining investment.

Why do we need large international companies? ― Large international companies are pivotal in the mining industry, due to their significant investments and crucial roles. The decision to invest often precedes a comprehensive evaluation of natural resource viability, making the presence of these companies essential.

In our case, we’ve facilitated the investment of six companies, injecting substantial capital into Bosnia.

This collective FDI has not only boosted the local economy, but also strengthened international ties. Companies like ours bring the financial resources, expertise and global networks that are required to drive transformative initiatives and make a lasting impact on the regions in which we operate.

How can you convince the local population, as well as the public as a whole, that you won’t threaten the environment? ― Our company prioritises health and safety, aiming to establish an unprecedented culture of safety in European mining. We focus on the wellbeing of our staff and local communities, addressing the unique challenge of close proximity to mining sites in Europe.

Our approach involves engaging with the local population, understanding their aspirations and shaping our mining projects accordingly. Despite our significant economic output, our operation seems small due to a deliberate

What are the key aspects of your environmental approach? ― Our commitment to environmental protection and sustainable resource utilisation is reflected in several key aspects of our approach. One significant change that we’ve made is in our energy consumption.

Our design revolves around the careful selection of equipment that minimises energy usage and reduces our carbon footprint. We’re actively working on the development of a solar facility in an effort to generate our energy sustainably. In addition to traditional mining methods, we’re pioneering new tech-

An £8 million investment reflects our commitment to understanding local communities’ resources. What sets our project apart is its adaptation to community aspirations, ensuring long-term economic sustainability focus on underground mining, minimising surface disturbance.

Strategically located on a hill, our facility preserves land and water resources, reflecting our commitment to a minimal footprint design. In the absence of environmentally friendly mining examples in Serbia and Bosnia-Herzegovina, we strive to showcase positive global examples, aiming to build trust and demonstrate our dedication to the visual and environmental aspects of the local community.

nologies and approaches within the mining industry. These innovative methods are designed to minimise environmental harm, and they prove even more efficient in many cases. Our aim is to demonstrate that mining can be done differently, in a way that is far less damaging to the environment than conventional practices. In Serbia, we focus on the management of environmental and social issues by proactively anticipating areas of concern, but also by identifying risk

and project flaws early in the exploration programme.

Adriatic Metals Serbia is striving to achieve an enduring positive impact on communities located in the vicinity of mines and on all interested parties.

What does that imply? ― We are dedicated to environmental and social responsibility, contributing to our esteemed reputation in Serbia since launching exploration in 2016. Despite the mining industry’s historical significance in Raška, we prioritise environmental and social aspects. Our environmental protection focuses on drill pad management, including clean-ups, waste management, the safe disposal of drilling muds and rehabilitation when sites are no longer needed.

In terms of social responsibility, we engage with local authorities and community leaders, disseminate information through newsletters and policies, and operate an Info Centre for information exchange. Our community support initiatives involve donations to the local hospital and disability association, sponsorships, student visits, collaboration with the Raška Children’s Association and contributions to address local issues.

Our ongoing commitment to positively impacting the local community underscores our dedication to responsible exploration, serving as an example of harmonious coexistence with both local people and the environment. ∙

Raška offers prospective geology The Raška District exemplifies a mining area with known mineralisation, neighbouring the former Trepca, the largest mining complex in the former Yugoslavia.

Besides prospective geology, Raška offers factors like excellent infrastructure, market accessibility, in-country expertise, a low-cost operating environment, low tax rates and a pro-mining community that’s open to exploration and mining investment.

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TOMRA

Immediate Collaborative Approach Required

TOMRA has amassed more than five decades of experience on several continents and created solutions that have stood the test of time. Based on a study conducted in partnership with Eunomia, TOMRA has benchmarked waste management systems around the world and combined solutions from best practice systems into what it calls Holistic Resource Systems (HRS)

DOINITA MIHAI Vice President Public Affairs, Eastern Europe South TOMRA

he waste crisis extends beyond all borders, impacting the health of citizens and wildlife. The scope and scale of this global issue must be addressed with equally ambitious goals and efficient solutions.

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Discarded recyclable waste results in severe environmental pollution, while it is simultaneously lost important resources and raw material for various industries and a challenge for the government and its citizens. Who carries the vision and bears the responsibility that will lead to change? ― Often referred to as the waste challenge, specialists say that we are actually facing a waste crisis that requires an immediate collaborative approach and action 64

from governments, industry and consumers. Uncontrolled dumping, open burning and a lack of waste services accessible to all citizens are just a few of the issues that governments must solve urgently. Producers are challenged to design their products to minimize detrimental environmental impact and to bear the entire cost of their ecological impact. Con-

resource if recovered and treated properly, thanks to innovation and progress. However, quality and consistency of these resources are two of the key factors in order to sustain the reform and stimulate the change in the recycling sector. We need high-quality recycled material that is competitive to virgin feedstock, in order to trigger economies of scale.

We need to get high-quality recycled material that is competitive to virgin feedstock, in order to trigger economies of scale sumers need to respond to educational programmes and partner responsibly in different waste management programmes.

Fortunately, waste has an acknowledged new definition and although its primary sense means unwanted or unusable material, waste today represents a valuable

CONNECTING THE REGION BUILDING BRIDGES

And although the technology has evolved to address these needs and stakeholders are becoming more responsible, resources are still depleted because voluntary action alone cannot achieve the scale we need to urgently resolve this crisis. Governments and policymakers must therefore now

take the lead on accelerating the transition from a linear to a circular economy for recyclable materials through the introduction of new legislation and regulations.

Is it possible to adapt to the needs of each individual market in order to achieve the best results in waste management? ― We need approaches at both national and regional levels that deal with existing products, materials and waste flows. However, since the composition of materials and market demands will inevitably shift over time, we also need systems that are adapted incrementally to adjust to these changes.

Based on a study conducted in partnership with Eunomia, TOMRA has benchmarked waste management systems around the world and combined existing and proven solutions from best practice systems into what it calls Holistic Resource Systems (HRS).

The unique advantage of using

a HRS approach is its ability to adapt to location requirements and future needs.

There are three solutions that comprise the Holistic Resource System and help maximise resource recovery. Deposit Return Systems (DRS) have proven to achieve exceptionally high collection and recycling rates for beverage containers. This is vital for closed-loop recycling.

Separate Collections for glass, paper, e-scrap, textiles and organics serve to reduce the contamination of material streams, thereby making recycling more effective.

Mixed Waste Sorting (MWS), as the third pillar of the HRS, can recover more plastic from household and municipal solid waste for recycling into virgin-like feedstock.

In the struggle against plastic pollution, EU member states are obliged to collect at least 77% of plastic beverage packaging for recycling by 2025. Is it possible to achieve this without a deposit return system? ― Deposit return systems have already proven to be highly efficient: for example, the European average collection rate for plastic beverage bottles in countries without a DRS is 47%, whereas European countries with DRSs collect an average of more than 95% of eligible plastic beverage bottles.

Experts suggest that it will be difficult if not impossible to achieve the collection targets of the Single-Use Plastics Directive – of 77% by 2025 and 90% by 2029 – without a DRS in place. Therefore, all EU countries either already have a DRS programme or are in the process of evaluating the possibilities of introducing one.

Today in Europe, 13 countries have implemented a deposit scheme and just by 2025

at least another 4 countries like Romania, Hungary, Ireland, and Poland have committed to adopt such solution.

We know what’s expected of EU countries by 2025 and 2029, but what are the expectations when it comes to Serbia and our region as a whole? ― The waste crisis extends beyond all borders, impacting the

such as a DRS. According to the recent statements of Sandra Dokić, state secretary of the Ministry of Environmental Protection, the Serbian government is looking into developing a holistic approach to addressing the general waste problem, and introducing a DRS for beverage containers from 2027 is part of the plan.

Croatia is first country in the

Governments and policymakers must now take the lead in accelerating the transition from a linear to a circular economy for recyclable materials through the introduction of new legislation and regulations health of citizens and wildlife.

The scope and scale of this global issue must be addressed with equally ambitious goals and efficient solutions.

Serbian citizens, like any other European citizens, have the right to a clean environment.

And we learned through the recent survey that 96% of Serbian citizens express support for the implementation of an effective waste management programme

region to have implemented already a DRS but today all countries neighboring Serbia’s are looking into implementation of such solution.

Romania has opted for the kind of DRS that has achieved an average return rate of 93% on other markets and is thus set to become Europe’s second largest deposit market. What are included in all the advantages

of this model over others? ― I would like to take this opportunity to congratulate you for your celebration in November commemorating the 20th anniversary of your magazine’s existence, which is also proof of the excellent service that you provide for your readers. A happy coincidence is that November also sees Romania, my home country, launching the second largest DRS for the collection of beverage containers in Europe, but which is in fact also the world’s largest centralised DRS. This will serves a population of approximately 19 million people and will annually handle more than seven billion beverage containers made from plastic, metal and glass, with volumes of between 100 mililitres and 3 litres.

While designing its own DRS, Romania had the privilege of looking into the existing systems and found that nine out of the ten highest performing programmes in the world, with an average return rate of 93%, return containers to the retail outlet.

Developing a return infrastructure at retail outlets is a win-win solution for all participants in the system. It delivers nationwide infrastructure at an optimum cost for the obliged industry. It offers an easy formula to consumers – who return the packaging to the point of sale where they bought it – convenient locations and faster roll-out for legislators. This model also benefits retailers through increased footfall, financial incentives, an improved corporate image and richer data, to name just a few of the benefits. ∙

TOMRA has issued a series of white papers In an effort to support stakeholders in their analysis of such opportunities, TOMRA has issued the white papers Holistic Resource Systems and Rewarding Recycling: Learnings from the World’s Highest-Performing Deposit Return Systems, which can be downloaded from circular-economy. tomra.com/resources.

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RIO TINTO SERBIA

No Green and Digital Transitions Without Mining A joint, collaborative approach is required to achieve a sustainable future

MARIJANTI BABIC Country Head for Rio Tinto Serbia

lectrifying transport and developing sustainable batteries are vital components of the energy transition. Electric vehicles and energy storage need batteries, and batteries need materials like lithium.

Serbia’s Jadar Valley is home to one of the world’s most significant lithium deposits. And while the world is rushing towards decarbonisation with lithium at the centre of that effort, the Jadar Project remains on hold in Serbia.

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which centre around the Jadar lithium and borates project. She describes Jadar as a perfect project: a great resource that can be mined sustainably, which is why we start by asking her what makes the Jadar reserves significant and worth developing? ― The world desperately needs critical raw materials to support the green transition. Both lithium and borates are vital materials that play a significant role in energy storage and renewable technologies, which are set to help the world reduce its usage of fossil fuels. The Jadar Project has an abundance of both lithium and borates, and we are confi-

dent those minerals can be mined sustainably. Jadar and mining generally must adhere to the highest environmental standards for water, air, waste and the protecting of livelihoods. We must also meet and exceed community expectations. This project could also deliver economic benefits locally and nationally – but not at the expense of the environment and local communities. The challenges we face in Serbia are not unique to Serbia. This is a challenge being faced in the development of all critical minerals in Europe. Working together with all stakeholders is vital to address the supply shortage that threatens the success of green tran-

sition. This isn’t something that any company will solve on its own.

We’ve already seen a change in the attitudes of policymakers towards mining. In the EU, for instance, they are speeding up the passage of legislation while demanding higher standards and transparency in battery value chains. Can the Western Balkan region keep up? ― It certainly can. In Serbia we have great resources, exceptional experts, significant potential investments and solid legislation, but I also see areas that all stakeholders should be aware of. Policymakers have recognised that the mining industry plays a crucial role in delivering the green and digital transitions. The fast-track permitting and prioritising of certain materials and approaches to projects is encouraging. However, the industry needs more clarity before making the huge investments required. It takes 10 to 15 years to open a new mine and that requires significant capital investments. It is important that policymakers, investors and the public understand the mining timeframe – from discovery, via permitting, execution and construction, to becoming operational. The second thing that I think is crucial is social acceptance. Trust and credibility are key to the future of mining in Europe. People want a green transition and a greener future – but what they don’t understand is that mining is needed to do that. We are aware of the policy versus community realities, so we need to listen and better help explain things. Governments can raise awareness about the benefits of mining and engage in community outreach. It is up to both the industry and authorities to work together to regain community trust and showcase the benefits for society of mining and refining.

You have said that strong relationships between all stakeholders are necessary for sustainable mining.

Does this also apply to the region? ― Stakeholder relationships must be based on accountability, respect for

sustainability standards and open communication. By electrifying transport, we have entered a new chapter in striving to save our planet. The world is experiencing a new industrial revolution, with a new economic value chain growing rapidly in the form of e-mobility. Lithium batteries are key to the energy transition and e-mobility.

The full value chain needs to be green: sustainable, with low impacts both environmentally and socially. There are a lot of challenges that will need to be managed, as well as a lot of opportu-

ite, lithium and cobalt are needed by 2050 to construct the required green technologies, like wind, solar and geothermal power, and energy storage.

EVs are projected to account for 50% of light vehicles on the road by 2030, meaning a surge in the world’s lithium consumption from 900,000 to 2.2 million tons. The green transition requires the development of more than 25 new lithium mines over the next six years. It is estimated that 1.1 trillion euros will be invested in e-mobility worldwide by 2030. Green tran-

The World Bank predicts that 500% more minerals like graphite, lithium and cobalt are needed by 2050 to construct the required green technologies, like wind, solar and geothermal power, and energy storage nities. Partnerships will be crucial in seizing opportunities in the electric vehicle (EV) industry. There is still more work to be done, and the wider industry should act together to unlock green transition possibilities. The numbers are huge: the World Bank predicts that 500% more minerals like graph-

sition is a global effort, and similar to decarbonisation, which is not constrained by borders, value chain opportunities are available to innovative and competitive companies regardless of where they come from. The Balkans has a prime opportunity to be an integral part of that value chain. ∙

Recycling & Circular Economy

Jadar in the e-mobility value chain

€33 billioin investment needed to meet 2040 EU demand

Lithium mining 7x projected increase in lithium demand by 2023

Electric vehicles 40% of EU car sales have electric motors (EVs and hybrids)

Battery manufacturing 1% of a lithium-ion battery’s total weight comes from lithium

€1.1 trillion global investments expected into the e-mobility value chain by 2023

Lithium processing 2,000 tests completed to optimise processing of jadarite ore

Baterry cell components 30% of total battery costs relate to cathode production

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HITACHI ENERGY D.O.O.

Creating a Carbon -Free Future

Hitachi Energy is advancing the world’s energy system to be more sustainable, flexible and secure.

The company offers an extensive portfolio of smart solutions, ranging from renewable integration and energy storage, via enterprise-level Asset Management and sustainable mobility, to energy services and “IT-OT integration solutions” NINA DUSPER SUŠIĆ Country Managing Director at Hitachi Energy d.o.o.

itachi Energy has placed sustainability at the heart of its Purpose and made a promise to advance a sustainable energy future for all. Sustainability 2030 is its strategic sustainability plan, summarising the company’s key commitments to act and drive businesses sustainably.

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Speaking in one of our previous interviews, you stated that the region is on the right track to becoming greener and that you are looking forward to the development of the energy transition. Do the will, money, and legislative solutions for that exist? ― Electricity will be the backbone of the entire energy system and urgent energy transition requires us to collaborate across stakeholders and sectors. We need to think in a different way and are pioneering the innovative solutions needed to integrate renewables at scale. We offer digital solutions in high-voltage (HV) transformer stations (integration of all HV apparatus with optical connections, conversion of analogue to digital signals, digital measurement of voltage and current), digital transformer stations.

By January of 2023, using 100 per cent fossil-free electricity in your operations, you managed to reduce your CO2 emissions by more than 50 per cent compared to 2019.

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What is the next goal? ― Based around four pillars – Planet, People, Peace and Partnerships – our strategy draws from the UN’s Sustainable Development Goals (SDGs), with a specific focus on the following eight elements: good health and wellbeing; quality education; gender equality; clean water and sanitation; affordable and clean energy; responsible consumption and production; peace, justice and strong institutions; and partnerships for goals. Through Sustainability 2030, we aim to achieve carbon neutrality in our own operations by 2030.

Lumada is an ecosystem that embraces your existing technologies, enabling you to benefit from the latest technological advances without sacrificing the investments you’ve already made Your Lumada portfolio is known as being a crucial component of the strategy for creating a carbon-free future. Could you tell us more about this portfolio? ― Lumada embodies our goal of shining a light on our customers’ data and illuminating it so that we can extract new insight, thereby

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resolving their business issues and contributing to the growth of their business. Lumada is an ecosystem that embraces your existing technologies, enabling you to benefit from the latest technological advances without sacrificing the investments you’ve already made.

The Lumada asset management portfolio – comprising asset performance management (APM), enterprise asset management (EAM) and field service management (FSM) – offers the latest software development, with a composable architecture designed to support customer needs for agile delivery on a changing market. Customers can precisely deploy what is needed when it is needed by replacing the forced “rip and replace” upgrades of the past.

Companies in asset-intensive industries, such as energy, utilities, transportation, oil and gas, and mining, share challenges that must be addressed in order to increase operational performance, reliability and profitability. To address these challenges, companies are turning to EAM solutions to help them be more adaptive, collaborative, insightful and predictive, and to realise sustainable gains in business performance and profitability.

Assets are at the heart of Lumada EAM. Built specifically to support the complete lifecycle of complex, critical and costly assets, Lumada EAM includes complete enterprise functionality across asset management and maintenance, scheduling and execution, work planning, supply chain and material planning, multi-entity financial and people management. ∙

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LEITNERLEITNER

Viewing the Entire Region as a Local Market

LeitnerLeitner is one of Central and Southeast Europe’s leading firms of tax professionals, auditors and financial advisory experts, having amassed vast experience in supporting and advising companies, family businesses, public bodies, NPOs, multinationals, charities, freelancers etc.

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his company has 64 years of experience and 805 employees at 17 locations, including in Sebia, Croa-

tia and Slovenia. Partners from these three countries often mention the company’s culture and vision, similarities and differenc-

es in region, and how LeitnerLeitner shares tax, economic and legal challenges with its clients. ∙

We Bring Life to Complexity JELENA KNEŽEVIĆ

Partner, Serbia – Belgrade

erbia has experienced significant changes and achieved progress on its road to the European Union (EU) over the past 12 years. During that period, Serbia has implemented various economic reforms aimed at improving its business environment, attracting foreign investment and strengthening its economy. These reforms have included fiscal consolidation, the privatisation of state-owned enterprises and improvements in the area of the rule of law. Serbia has implemented considerable steps in order to improve its legal framework, fight corruption and enhance the independence and efficiency of its judiciary.

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Despite progress, Serbia still faces several challenges on the road to EU membership.

These include the need for further reforms in areas such as the rule of law, media freedom and the fight against corruption. The pace of progress depends on Serbia’s further ability to implement required reforms and meet EU standards.

At LeitnerLeitner, we bring life to complexity – meaningful partnership is the best foundation for all questions – in private life, in business, or when considering a new vision.

That’s why, together with our international

Together with our international offices and our clients, we share the tax, economic and financial challenges of everyday life and in complex situations

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offices and our clients, we share the tax, economic and financial challenges of everyday life and in complex situations.

As such, having international expertise and offices throughout the region and around Europe is advantageous for many reasons.

This is firstly because our local knowledge ensures that we have a deeper understanding of local market dynamics, cultural nuances and regulatory frameworks. This local knowledge helps us tailor our services to the specific needs of our clients in Serbia and navigate any unique challenges that may arise.

Secondly, having a presence in Serbia and the wider region enables the development of a strong network of local contacts, including clients, partners and stakeholders. And finally, this means that we have access to a broader pool of resources, including talent, expertise and infrastructure. This can support the delivery of high-quality services and enable efficient operations. All these factors have contributed to the success of our company’s operations in Serbia.

Able to Solve the Problems of Each Client PAVO ÐEDOVIĆ

Partner, Croatia – Zagreb

e consider the entire region as a local market, as we have excellent familiarity with the region and a good understanding of the tax and legal systems, but also the needs of clients. Led by an interdisciplinary approach, we are able to solve each of their problems. In general, when dealing with clients’ needs, we follow two approaches: an interdisciplinary approach and an international approach. By taking interdisciplinary approach to tackling clients’

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needs, we involve team members from different service areas and work collaboratively, with a common purpose, to meet the needs of clients and make decisions, as opposed to following a multidisciplinary approach that would involve teams working independently without taking care of their interactions and the result that such an approach may have on the common goal. The second approach we follow is an international approach, in which

Our interdisciplinary and international approach represents our competitive edge over the competition

we also strive to consider the international tax and legal aspects of our clients’ operations with the assistance of our offices in other countries. As such, this interdisciplinary and international approach represents our competitive edge over the competition.

The majority of our clients are today focused on business innovation and optimisation. Tax and financial consulting services are currently in the process of transformation through the use of various IT tools, mainly involving the automation (RPA) and digitalisation of certain processes. These tend to have the aim of shortening certain processes of collecting and inputting data and securing additional controls, while also enabling a shift from various manual operations to data analysis and tax/financial consulting services.

We Represent a “OneStop Shop” for Our Clients BLAŽ PATE

Partner, Slovenia - Ljubljana

eitnerLeitner generally provides services in all areas of tax law, accounting, payroll & global mobility, financial advisory and audit services in Slovenia. At the same time, we also offer legal services (focusing on business law) within the scope of LeitnerLaw. Accordingly, we represent a “onestop shop” for our clients, which include small and medium-sized enterprises, family-owned business and, of course, corporations. Our client base also encompasses private clients, including high-net-worth individuals.

Prior to its EU accession, Slovenia had already harmonised its legislation with EU law, apart from in areas where certain exceptions and transition periods had been agreed during accession negotiations. After completing the accession process, Slovenia became a full member of the EU on 1st May 2004. In this respect, I would say that Slovenia has ac-

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quired considerable experience over the last 30 years of its political and economic transition towards becoming a competitive European economy, as well as amassing substantial experience within the EU, given its almost 20 years as full member of the EU. This could serve as one of the greatest advantages for Slovenia.

I would say that we primarily advanced the most with respect to the development of legislation in the area of tax and audit, on the one hand, and also, on the other hand, with respect to the development of a court case law practice via the court decisions made with regard to EU legislation.

The fact that LeitnerLeitner is a member of the Taxand network and the Praxity alliance eases our work and enables us to provide the best services to our clients at the global level.

Taxand is the world’s largest independent tax

organisation, with more than 700 tax partners and over 3,000 tax advisors in 48 countries.

We can thus access advice from our support in most countries whenever needed, in order to deliver tailored, practical local and international tax advice. A similar ability applies when it comes to the Praxity alliance, which provides the best solutions for companies to achieve their goals through seamless collaboration within a global alliance of leading independent business advisors.

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ANANAS E-COMMERCE

The Only Genuine Marketplace Ananas isn’t just another in the string of online shopping sites, but rather an ecosystem that comprises several different areas of operation and the biggest regional project at this moment. It currently covers two markets and is setting out to conquer two more MARKO CAREVIĆ CEO, Ananas e-commerce

e launched Ananas in order to show that we ‘can’, that we have no excuses. All our resources are directed precisely towards that, towards doing business and cooperating with us being at the highest level,” notes Ananas CEO Marko Carević with pride, as well as announcing that the company will certainly be present around the entire region in five years.

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What makes Ananas special, different and superior? ― We are first and foremost the region’s initiator/driver of e-commerce in the region. Why do I say this? Because by September we’d already exceeded a million different visitors, and that growth is continuing, because we’re already operating on two markets and we launched this whole story completely from scratch, here in Belgrade.

We got to grips with the huge challenges confronting this market. We need only recall how the process unfolded: you order something, wait several days for confirmation, then your package arrives in around ten days if you’re lucky. And I won’t even mention returning goods. And what have we done?

We’ve enabled delivery by as early as the next working day; we’ve enabled three options for deliveries, payments in cash, payments online, for registered companies, by business payment cards, invoicing, payment in instalments. We are working on the development of fintech services and, more importantly, we have provided the user with choice - as the only genuine marketplace, we are the only place where the same product can be bought from several different retailers and conditions can be compared in one place.

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We will open the doors of the most modern e-fulfilment centre in this part of Europe at the start of next year We’ve thus ensured a flawless user experience and set new standards in e-commerce.

I would emphasise that we are still at the beginning. Our huge aeroplane has taken flight and we’re now stabilising – we’ve brought together the best team of experts on the market, we’re improving anything that doesn’t seem to be working flawlessly as we go, and we’re assembling all the parts of our ecosystem. And when we look back retrospectively every six months, we can only say: “Congratulations, we’re moving on”.

CONNECTING THE REGION BUILDING BRIDGES

It was a year ago that you took the first step towards expanding your business, but your regional expansion isn’t stopping there? ― From the very first day of doing business, Ananas was announced as being a regional player, and in June we launched ananas. mk. And I can say that I’m extremely proud of all the successes our team has achieved in six months. By relying on experience from Serbia, we succeeded in utilising resources more effectively, learning more quickly from our mistakes and establishing processes and procedures in a significantly shorter period.

We will announce the next two markets on our route to internationalisation during 2024. We are already being invited to all conferences in the countries of the region to present what we’ve done and how we achieved it, and for attendees to hear our plans. With that in mind, I can only say that the internationalisation of our business isn’t an option, but rather an obligation.

Is it an accurate statistic that as many as 97 per cent of shipments from your warehouse have reached customers as early as the next working day? ― It is absolutely accurate. And that’s precisely what makes the essential difference between Ananas and any other online shopping site in Serbia. We will open the doors of the most modern e-fulfilment centre in this part of Europe at the start of next year. For our customers, this means that this percentage will remain at the same level regardless of the growth of our business, and that the quality of deliveries will not suffer. As a consequence, this will also have a great impact on our retailers and the growth of their business, with hundreds of them already holding part of their goods in our warehouse. ∙

ANANAS.MK

Strong Driver of Development The establishing of Ananas in North Macedonia represents the largest online project. Over previous months, this market has gained a unique combination of a wide range of products, fast delivery and secure payments, which has resulted in a top service for users

you are developing incredibly quickly...

How do you view this initial period? ― The beginnings of Ananas.mk on the North Macedonian market were indeed exciting and dynamic or, as we say at Ananas, “Tough, but strong!”. Although we formally started doing business in June, celebrating the official launch was an important moment for all of us. The North Macedonian market provided a great welcome to Ananas.mk, which contributed to our growth and development unfolding at this pace. Adding to our excellent start is the fundamental support that we receive from Delta Holding, and best testifying to our efforts to justify the trust placed in us are our extraordinary results: in just three months of operations, we’ve gained over 180 listed retailers and over 100,000 products. Our goal is to become the key destination for online shopping in North Macedonia, and we can be very optimistic based purely on the basis of the platform’s constant and stable growth.

DENIS AMPOV Country Manager at Ananas.mk

part from undoubtedly becoming a key player in the e-commerce domain, Ananas.mk has the ambition of contributing, with the support of Delta Holding, to the growth and development of the country’s digital economy, employment levels and the economy of North Macedonia, which represents a small market with limited resources.

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The market of North Macedonia hasn’t previously had an opportunity to experience the kind of top online shopping experience that you provide? ― North Macedonia is the first country on our road to internationalisation and that is an endless source of pride for us. Our end goal is to transform the experience of online shopping on this market. With just a few clicks, we now offer local consumers a range of products in various categories, including technology, home appliances, clothing, footwear, cosmetics etc. As our vision states: everything around us is or will be ananas... From day one, we’ve remained fully committed to our goal of ensuring that you can find everything you need at ananas.mk.

It is important to note that doing business in this way has a strong influence on the development of the economy and strengthening the market, while simultaneously providing an incentive to ensure equal conditions for doing business, particularly for SMEs. Interestingly, until just a few months ago, retailers had difficulties launching their own online shops and were under the impression that doing business via Ananas was “complicated”, while they are now selling plenty via our platform, expanding their prod-

Best testifying to our efforts to justify the trust placed in us are our extraordinary results: in just three months of operations, we’ve gained over 180 listed retailers and over 100,000 products uct range, devising campaigns and recommending us to others.

Ananas has officially been operating in North Macedonia since June 2023, but you only recently commemorated the official launch. We have heard that your team already comprises 40 employees and that

Can Ananas.mk become a key player in the e-commerce domain, thus contributing to the growth and development of the country’s digital economy, employment levels and business sector? ― The answer is very clear and concrete: of course. North Macedonia has a small market, with limited resources. When such a serious player as Ananas enters the market – with serious investment, knowledge and experience – expectations are huge. We will provide all small producers with a relevant place to sell their products, enabling them to visit, with excellent conditions for advertising and high visibility. By educating the market, providing support to our retailers and business partners, and developing our own operations and consequently theirs, it is clear that we will quickly become a driver of all the aforementioned domains. ∙ 75

ALMA QUATTRO

Networking the City

Alma Quattro has been present on the Serbian market since 1994, when the first organised out-of-home networking was actually established in Belgrade, and later also in other Serbian cities

SANJA PEŠIĆ Alma Quattro CEO

etworking is perhaps the word that marked the last 10 years of business operations, labour and the development of all industries, including ours. Out-of-home (OOH) is a global phenomenon that has persisted for over 150 years and represents the first large and signifi-

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for people to mutually empower and support one another, to connect business interests and exchange resources.

What did the appearance of new media in Serbia mean for advertisers and the advertising market generally at the time? The establishing of an advertising media network on the streets, where people spend a good part of the day, has provided possibilities and new space to present messages about new products, brands, businesses and services. The new media channel of communication also propelled the creative industries towards thinking innovatively and towards new ideas. Back in 1994, there were just a few TV channels and radio stations, daily newspapers and weekly magazines, while outdoor advertising

As with all global providers in the OOH industry, Alma Quattro’s portfolio comprises classic billboards, illuminated billboards, LED and LCD screens, media that we refer to as ‘City light’, and large formats, i.e., bigboards cant advertising undertaking that has survived all revolutions – industrial, technological, digital and even humanitarian – and that continues to live on today in its original form, with only insignificant changes.

Networking is also a phenomenon that is more relevant today than ever and that, as such, represents the need 76

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in its organised form provided a new dimension to advertising and the creative considering of ideas for this new medium on our market.

Since that time, Alma Quattro has gone on to connect thousands of business arrangements, establish hundreds of millions of contacts, with many businesses, products and ser-

vices having been launched through our network of advertising media, while today, when it is more important than ever before, our company stands for everything that is standard in the OOH industry worldwide.

Bus stop shelters at over 800 locations represent a public asset that is in the service of citizens of Belgrade, while at the same time sending messages from advertisers with over 1,700 advertising spaces.

The public bus stop shelters network is produced, set up and maintained by Alma Quattro at its own expense and through a public-private partnership with the City of Belgrade.

The city thereby receives huge budgetary savings because its private partner, i.e., Alma Quattro, both financially and logistically fully services a very important segment in the functioning of public transport.

As with all global providers in the OOH industry, Alma Quattro’s portfolio comprises classic billboards, illuminated billboards, LED and LCD screens, media that we refer to as ‘City light’, and large formats, i.e., bigboards. All the aforementioned media that we have in our offer for advertisers are located in the city in all possible directions, forming a huge network. More than 70,000 square metres of advertising space, which is how much Alma Quattro covers in Serbia, represents a huge media resource and

potential made to measure for small and large advertisers.

The media market currently offers a large number of television channels, only a small number of which have a national frequency, as well as countless cable channels. Mobile phones have become an extension of our hands, while the internet offers us endless content that attempts to gain our attention and prove worthy of clicks. In order for an advertiser to retain their “share of voice” in such a diversified media landscape, it is necessary to make multiple additional investments and increase budgets in order to achieve the desired reach and advertising effect.

Research conducted at a Europe wide level shows a trend

whereby the number of hours spent in front of television screens decreases in more developed societies with highly developed advertising markets. Statistics for Serbia testifies that we are being ranked at the very top when it comes to the number of hours spent consuming TV content.

However, demographic research shows that the largest segment

of the population comprising the consumer society, and those are people who are employed and financially solvent, spend most of their time “out of home”, on the move, performing their daily activities and routines. For them, OOH is the first source of information about the offers of advertisers, which serves as a trigger for them to access more detailed in-

Alma Quattro will enter the jubilee 30th year of its existence and work in 2024. The world has changed significantly over this period, with cities acquiring a new dynamic and the advertising market becoming more diversified than ever before

formation over the internet. That’s why every client in our network has their own “share of voice” and why OOH, as the last mass media, offers the best value for money that an advertiser can get.

Alma Quattro will enter the jubilee 30th year of its existence and work in 2024. The world has changed significantly over this period, with cities acquiring a new dynamic and the advertising market becoming more diversified than ever before. “Networking” still remains the key word for the future of our operations, because it is only through networking on the basis of shared values that cities and regions, and the world as a whole, can function adequately and move in the direction of high-quality development. ∙

Importance for the advertising market The establishing of an advertising media network on the streets, where people spend a good part of the day, has provided possibilities and new space to present messages about new

products, brands, businesses and services. The new media channel of communication also propelled the creative industries towards thinking innovatively and towards new ideas.

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SHOPPSTER

Top Online Shopping Experience With the establishment of Shoppster, as the first and largest integrated online and TV shopping platform, the future has arrived in the region. Over the course of just three years, this first real marketplace in our country has built an extremely wide-ranging offer of more than 300,000 products and around 1,000 partners in Serbia and Slovenia, as the two countries where it operates LJILJANA AHMETOVIĆ CEO, Shoppster Srbija & Slovenija

fter breaking the ice on our market and demonstrating that it is possible to establish and run a successful pure e-commerce business, this company’s success has motivated many others to enter the e-commerce sector and contribute to the growth of the entire market. Speaking here for Connecting the Region, Shoppster CEO Ljiljana Ahmetović reveals just how this is achieved, what the future holds for e-commerce, and what Shoppster has planned.

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Did you expect this kind of success for the company, and 100 per cent annual growth in turnover? ― Shoppster’s entry onto our market impacted greatly on the development of the e-commerce industry in our country. We entered the market in a big way. We spent more than two 78

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years working to prepare the new integrated online and TV store within the framework of United Group, with great support from all group members.

Launching Shoppster as the first real marketplace in our country, accompanied by an attractive marketing campaign that attracted attention both in Serbia and around the region, signalled to many individuals and companies that they could implement their e-commerce ideas on the domes-

up of our business, including an extremely competent and fully dedicated team, we began ambitiously from day one. The success that we’re achieving provides us with a wet sail to work even better.

Shoppster is today recognised by consumers, retailers and prestigious global companies like Meta.

Does that provide the best indicator of the strength of your brand?

Establishing partnerships and synergies represents one of the fundamental elements of our strategy, and we seek and build them in all segments of our operations tic market. Shoppster emerged as the right solution for hundreds of small and large companies that have ventured into the world of online sales.

Considering the detailed preparation of the plan and the entire set-

― We’ve been building our position as a “one-stop shop” destination from the outset, and we’ve succeeded in that.

According to all research, Shoppster is recognised as the largest online marketplace where you can find al-

most anything. Over just three years, we’ve built an extremely wide-ranging offer of more than 300,000 products. Securing and maintaining this kind of offer in continuity required that we develop all possible business and logistics models and that we position ourselves as a one-stop shop for our partners, i.e., suppliers.

We have also secured the necessary conditions to establish cooperation with numerous retailers, as well as with distributors and manufacturers.

It was precisely our good practices that attracted the interest of the world’s largest companies in raising the level of cooperation and publicising our good strategy for managing digital sales channels. The awards that we’ve been receiving in both Serbia and Slovenia also testify to the fact that we’ve been recognised by the business community and rated by them as the best one-stop shop destination.

overall service. Dexpress brought state-of-the-art equipment, outstanding technology and organisational experience to our market. It established the first network of parcel machines, which completely changed the online shopping experience. Shoppster and Dexpress are today strategic partners. The very clear key performance indicators that are led by both companies in this collaboration, and along with that a high level of transparency in providing feedback to one another, proactiveness and pragmatism in solving all challenges, have a pos-

Also operating within the scope of the Shoppster platform is company Dexpress, one of the region’s biggest courier services. How much did this linkage and the creation of a strong and reliable logistics chain contribute to the further development of e-commerce in our country? ― We realised very quickly after launching Shoppster just how much the satisfaction of our customers, and therefore our success, depends on the “extended hand” of the online platform, i.e., on the courier service. Together with the administration of United Group, we took the strategic decision and, in 2021, completed the acquisition of one of the largest private courier services in Serbia. Dexpress continued its regular operations with the entire market, while at the same time receiving even greater support in the further improvement of its technology, processes and

itive impact when it comes to the constant and rapid improvement of both Shoppster and Dexpress services, while at the same time boosting the level of satisfaction among consumers.

them in all segments of our operations. E-commerce is growing and developing across the whole of Southern Europe, including in the Balkans, which is still confronting many regional specificities, primarily in supply chains and local logistics, but also with the challenges created by the overall macroeconomic situation. The faster development and greater advancement of all members of the e-commerce ecosystem is possible if we are oriented more towards cooperation and less towards competition at any cost.

Dexpress brought state-of-the-art equipment, outstanding technology and organisational experience to our market, as well as establishing the first network of parcel machines, which completely changed the online shopping experience

Is Shoppster a platform that could provide a significant contribution to unifying the region? ― Shoppster’s success is based on a well-established strategy and even better implementation. Establishing partnerships and synergies represents one of the fundamental elements of our strategy, and we seek and build

Shoppster operates successfully in Serbia and in Slovenia, and we cooperate with approximately 1,000 partners in both countries. We are constantly transferring experiences, good practices and initiatives from one country to the other, and not only to our employees, but rather to all our partners. We support various regional e-commerce projects and organisations that contribute to the wider community and strive to serve as an example to others of an organisation that is enjoying accelerated growth and contributing to the region’s overall e-commerce ecosystem.

Is Shoppster expected to incorporate into its operations new provisions of the Law on Electronic Commerce, to educate young people, advance e-commerce, contribute to the struggle to combat the grey economy etc.? ― Our leadership position brings with it obligations and responsibilities regarding the entire market. We have been working from day one to educate our market, including both our potential and existing customers, as well as educating our suppliers. We constantly develop the platform, functionalities and processes, in order for us to adapt to different levels of preparedness for online shopping, sales and all structural and after-sales processes. We utilise all available channels of communication, from the Shoppster TV channel to our extremely popular social media profiles and our online platform, in order to familiarise customers with all the benefits of online shopping, as well as the rights and obligations of online customers.

We participate in numerous conferences at which we relay our experiences and share our ideas and initiatives. We are also included in organisations that work intensively on the improving of conditions for e-commerce operations. We are a proud member of the eCommerce Association of Serbia, with which we work actively on various projects, including the analysing of existing laws and regulations and the active proposing of amendments to them that will enable the entire market to feel the real benefits of this compelling industry. ∙

Monthly visits measured in the millions Our broad offer is accompanied by extremely creative content and attractive communication through all channels of communication, which is why our messages attract millions of visitors each month.

With a well-conceived and managed performance strategy and tactics, we are succeeding not only in ensuring that we have high platform visitor figures, but also excellent sales results. We are achieving our targets and high indicators of success through all communications and sales channels..

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HUAWEI DIGITAL POWER

New Infrastructure for the Digital Energy Era

Huawei is accelerating the transition from traditional energy to new, digital energy, which is cleaner, more reliable and more sustainable uawei is applying its technology and telecommunications expertise to green energy innovation, paving the way for a more successful and faster digital transformation that will reduce the greenhouse effect, lower carbon production and make renewable energy more accessible and easier to implement.

Carbon neutrality is both a very inspiring and challenging journey towards economic and social transformation, with stable energy infrastructure forming the backbone of everything.

The global energy industry is no longer driven by resource dependence, but

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rather by technology. Low-carbon, electrification, digitalisation and intelligent development are the four key paths for energy evolution and transformation.

The energy industry has entered a new era of digital energy, deeply integrated with the digital world.

In this new era, we are taking advantage of opportunities by integrating bit, watt, heat, and battery (4T) technologies to build new energy infrastructure for new energy, electric transportation and digital transformation. Our commitment to this goal is reflected through our focus on three core dimensions.

ACCELERATING THE TRANSITION FROM TRADITIONAL TO NEW ENERGY This type of infrastructure has three major application scenarios, namely clean energy bases, urban energy systems with coordinated power generation, grids, loads and storage, as well as home energy management systems.

In the context of clean energy base scenarios, the high proportion of renewable energy and power electronics applications, large land footprints and remote locations pose significant challenges to grid connection and op-

erations and maintenance (O&M).

In order to overcome these challenges, Huawei Digital Power has developed and implemented grid forming technology, which is applied to photovoltaic (PV) and energy storage systems (ESSs). The PV+ESS solution proactively enhances the power grid and provides the functions of traditional synchronous generators, enabling the transformation from grid following to grid forming and making solar PV energy a mainstream energy source. In terms of O&M, Huawei Digital Power leverages the latest information and communication technologies (ICTs), such as the Internet of Things (IoT), big data and artificial intelligence (AI), to implement smart fault diagnosis of plant faults. This approach enables intelligent and unattended clean energy bases.

In urban scenarios, there is growing demand for low-carbon, energy-intelligent twins that integrate generation, grid, load, storage and consumption through innovative products and solutions.

These include distributed energy systems, virtual power plants (VPPs), smart charging networks, V2X, integrated smart energy and smart microgrids. By working together, these technologies create a citywide energy internet based on smart grids and microgrids, making the city safe, resilient, efficient, low-carbon and intelligent.

NEW ENERGY INFRASTRUCTURE FOR ELECTRIC VEHICLES

Huawei Digital Power is a leading provider of e-Mobility and FusionCharge solutions in the mobility electrification industry. A high-quality collaborative development approach enables Huawei to launch the hyper-converged e-Mobility all-scenario solution and the “one kilometre in one second” fully liquid-cooled

ultra-fast charging solution.

These solutions help electric vehicles surpass fuel vehicles and provide a refuelling-like charging experience, accelerating the process of mobility electrification.

Huawei works closely with customers and partners to develop supercharging solutions across China, including at filling

investment to charger operators and achieve a positive business cycle of sustainable development.

Huawei is currently working with provinces and cities like Sichuan, Shenzhen, Taiyuan, Zhengzhou, Guilin and others to accelerate the construction of high-quality charging infrastructure, continuously improv-

Low-carbon, electrification, digitalisation and intelligent development are the four key paths for energy evolution and transformation stations, highway rest areas and urban public areas with high electric vehicle traffic. The goal is to build a unified highway network and city network, integrating PV, ESSs and chargers to enable new energy vehicle (NEVs) to use renewable energy power. The company will ensure that high-quality charging networks are compatible with vehicle models of various voltage levels, and that it offers various business models that bring better returns on

ing public charging services and enhancing the electric mobility experience for users.

BUILDING A SOLID FOUNDATION FOR THE DIGITAL ECONOMY

As the world undergoes rapid digital transformation and the demand for connectivity and computing power increases, the number of data centres and telecommunications sites is set to double.

However, this growth will also

lead to a surge in electricity consumption and carbon emissions, posing significant challenges.

Huawei Digital Power recognises the need to bring more bits with fewer watts and fewer carbon emissions. To address these challenges, the company is building new digital industry energy infrastructure for data centre facilities, site power facilities and critical power supply solutions.

This infrastructure is designed to continuously reduce energy consumption and carbon emissions for generating each bit while being supported by digital and intelligent technologies.

Energy infrastructure is vital for ensuring a reliable power supply and can be seamlessly integrated into the urban energy intelligent twins. These systems feature the collaboration of power generation, grid operations, loads and storage. The infrastructure is the energy consumer and regulator of energy production and power systems.

During this critical period of industrial transformation, infrastructure plays a central role in accelerating transformation, promoting innovation and stimulating the economy. Huawei Digital Power leverages the advantages of integrating 4T technologies and establishing a solid path for the new energy infrastructure across three core dimensions, moving towards a new era of digital energy. With a vision of “brilliant stars and endless roads”, Huawei is committed to driving sustainable and efficient energy solutions for the future. ∙

Smart solutions for home energy consumption A green, low-carbon, user-friendly, intelligent home energy management system can be installed for home energy consumption. It includes an optimiser, PV, ESS, charger, load and management system.

This one-stop solution will transform homes from energy consumers to prosumers in new power systems, reducing carbon emissions and improving energy efficiency.

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AKTON GROUP

Connecting the Adriatic and the World

As a reliable and flexible provider of telecommunications and IT services operating in Slovenia, Croatia, Bosnia-Herzegovina, North Macedonia and Serbia, the AKTON Group has its own telecommunications network connected within a single system

he AKTON Group network was actually created to connect this region with the world. AKTON Group interconnections in Vienna, Frankfurt, Sofia and Milan provide a connection betweem local companies and their headquarters or branches anywhere around the world.

Founded as the AKTON company in Ljubljana back in 1991, thanks to international private capital and the founder’s bold vision it has grown from a local start-up enterprise to become today’s renowned AKTON Group, which has expanded its operations to five countries of the Adriatic region through its subsidiaries to become an international telecommu-

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vices, all with the aim of coming up with solutions that provide a winning combination between quality and service. Particular attention is paid to monitoring the quality of services and products within the framework of the AKTON Group, as evidenced by the ISO standards that the company possesses. This company also pays special attention to the environment, various interest groups in humanitarian fields, but also the population itself, which is why the AKTON Group has donated to humanitarian causes in difficult times over the last decade, in response to earthquakes, floods and other disasters that have hit the countries where it operates.

The AKTON company represents one of the largest providers of telecommunications and IT services for business users operating in the Adriatic region nications operator and provider of IT services. Maintaining a local presence enables excellent familiarity with the market, while AKTON’s services are adapted to the needs of clients around the region.

The group’s main objective is to satisfy users, which isn’t quite so simple in today’s competitive environment.

That’s why the AKTON Group is focused on providing value-added ser82

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In terms of organisation, the AKTON Group thinks outside the box, with the aim of finding better and more efficient solutions. The AKTON Group has earned a ranking at the very top of telecommunications operators and IT service providers around the region by creating services that differ from those of other operators, particlarly in terms of providing swift and effective responses to every user re-

quest, implementing services quickly and efficiently, as well as maintaining professional relations with each user. AKTON’s exclusive focus on results led to it expanding its presence to the global market and becoming one of the most popular telecommunications operators when it comes to SMS and Voice services.

Japanense company Rakuten has also recognised the AKTON Group for its trustworthiness and integrity. With the inclusion in its portfolio of the Viber SMS services for business users, the AKTON Group has become Rakuten’s largest partner in the Adriatic region.

Local offices provide all interested users with internet services, including colocation and hosting services, at their data centres. Thanks to partnership with the world’s largest telecommunication operators, AKTON is able to provide one of the best international connection services in the region.

AKTON is this year celebrating its 20th anniversary in the Republic of Serbia. As an integral part of the AKTON Group, AKTON Belgrade has worked together with the head office in Ljubljana and country offices in Zagreb, Skopje and Sarajevo to create a portfolio of over 5,000 active users. Joint success across the AKTON Group has enabled the development of completely new services, such as system integration and IT managed services that are implemented by AKTON’s highly motivated professionals. ∙

CROATIA

The Charm of Opatija Explore the timeless elegance of Opatija, where the Adriatic Sea meets lush greenery, offering a perfect blend of relaxation and cultural richness.

ALBANIA

Sarande’s Mediterranean Gem Uncover the Mediterranean gem of Sarande, with its crystal-clear waters, ancient ruins and vibrant local culture, promising an unforgettable summer escape.

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MONTENEGRO

Sveti Stefan’s Coastal Elegance Experience coastal elegance at Sveti Stefan, a picturesque islet-hotel on the Adriatic, where history, natural beauty and luxury converge.

NORTH MACEDONIA

Ohrid’s Timeless Beauty Immerse yourself in the timeless beauty of Ohrid, where a serene lake, UNESCO-listed old town and ancient churches create a unique summer destination.

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TAKEDA

Committed to Patients and Science

Takeda is committed to developing innovative medicines and new approaches to treatment that are accessible to as many people as possible, regardless of where they live or their ability to pay

VIKTORIJA ZADRO-HUML Takeda Country Head for Croatia, Slovenia, Bosnia and Herzegovina

akeda mission is to strive towards better health for people worldwide, including in our region. In fiscal year 2022, the company’s R&D investment totalled $4.8 billion, and it doesn’t end there. This is a conversation about Takeda’s plans and its launching and registering of new medicines.

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Everything at Takeda begins with the question of how you can do more for the patient.

What does that mean specifically? That you strive to ensure that your innovative medicines and new approaches to treatment are available to as many people as possible? ― At Takeda, our mission is to strive towards better health for people worldwide by leading innovation in medicine. This means that we are constantly asking ourselves how we can do more for the patient, and this is reflected in everything we do. We are com86

mitted to developing innovative medicines and new approaches to treatment that are accessible to as many people as possible, regardless of where they live or their ability to pay. We believe that everyone deserves access to the best possible healthcare and are dedicated to making that a reality.

Your innovations, which are the result of research and development globally, impact the lives of patients worldwide by converting scientific findings into life-changing medicines.

imately 40 new molecular entities, 50% of which are with orphan drug designation. Our R&D investment was $4.8 billion in fiscal year 2022. We are committed to bringing innovative solutions to patients in Croatia, Slovenia, Bosnia and Herzegovina, and around the world. One of our latest innovations is darvadstrocel, Europe’s first allogeneic stem cell therapy that represents a new treatment option for patients suffering from Crohn’s perianal fistula who do not respond to currently available therapies and may be subject to numerous invasive sur-

One of our latest innovations is darvadstrocel, Europe’s first allogeneic stem cell therapy that represents a new treatment option for patients suffering from Crohn’s perianal fistula What are the latest innovative solutions Takeda has brought to the countries for which you are responsible? ― Takeda is building one of the most exciting and diverse pipelines in the industry, with approx-

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geries. Launching this medicine has been transformative for patients and we are proud to be able to offer it in our countries.

How does the process of registering a prescription drug

look within the EU, compared to other countries? How long does it take for a medication to progress from registration to being made available to the intended patient? ― The process of registering a prescription drug within the EU is a rigorous and complex process that involves multiple stages of testing and evaluation. The European Medicines Agency (EMA) is responsible for evaluating the safety, efficacy and quality of new medicines before they can be approved for use in the EU. This process can take several years, depending on the complexity of the drug and the amount of data that needs to be reviewed. Once a drug is approved by the EMA, it can be made available to patients in all EU member states. The process of getting a drug to market in nonEU countries can vary depending on the regulatory requirements of each country, but it generally occures about a year after EU approval. In order to bridge this registration and subsequent reimbursement gap, we often create various free of charge early access programmes to make the medicine available to patients in Bosnia and Herzegovina. ∙

TAKEDA

Partnership is the New Leadership

Takeda strives globally to become the most trusted digital biopharmaceutical company, while it constantly seeks to establish global strategic partnerships for the future MILENA ARGIROVIĆ Takeda Country Head for Serbia, Albania, Montenegro, Nothern Macedonia and Kosovo

akeda partners with various stakeholders in the Western Balkans in order to optimise healthcare ecosystems. We spoke with Takeda’s general manager for Western Balkan countries to discover more about the importance of innovative partnerships.

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Which innovative partnerships has Takeda established in the Western Balkans to improve healthcare for the region’s citizens? ― Takeda globally constantly seek to establish global strategic partnerships for the future – examples of which include our joint projects and programmes with with top institutes and companies like MIT, Microsoft etc. In our region, we are inspired by these practices and do our best to find a similar basis for collaboration with local scientific institutes, academia, high-tech companies, start-ups etc. Recent examples of partneships with the National Institute for AI and the National Institute for Genetic Engeneering led to the signing of the

Memorandum of Understanding with the Serbian Government. We mutually agreed to collaborate on the optimisation of the diagnosing of rare diseases using advanced technologies like AI and raising local capacities in order to ensure faster diagnosis and timely personalised care for patients in national centres of excellence.

How does Takeda approach value-based healthcare? ― Healthcare costs are rising unsustainably, because ageing populations have increased demand for healthcare and the range of treatment options has expanded vastly.

mental fee-for-service models and prioritising health outcomes enhances satisfaction with the healthcare system among patients. We recommend health policymakers develop a strategy for transitioning towards VBHC, which includes measuring patient outcomes as an initial goal, investing in digital infrastructure, linking payment systems to the achieving of outcomes and steering resources towards the most valuable treatments (including prevention, early diagnosis, early-stage treatment and, over time, tackling health equity and the social determinants of health).

We are glad that governments in our region have the same understanding of the healthcare needs of the future and that we can collaborate on this common ground At Takeda we believe that health systems need to urgently shift away from the traditional fee-forservice approach towards a value-based healthcare (VBHC) model, to ensure health systems are more sustainable for the future.

VBHC uses outcome data to determine whether a treatment has worked for an individual patient. Shifting away from detri-

We are glad that governments in our region have same understanding for the healthcare needs of the future and that we can collaborate on this common ground.

The recent Biotech Future Forum (BFF) that was organised for the second time in Belgrade, under the auspices of the World Economic Forum and the Serbian Centre for the Fourth Industrial

Revolution (C4IR), with strong support from the Serbian Government, confirmed that digitalisation and value-based, data-driven processes are being established in our healthcare systems.

Why is Japanese heritage important at Takeda? ― Throughout our 242-year history, we have been guided by the values of Takeda-ism, which incorporate Integrity, Fairness, Honesty and Perseverance. They are brought to the life though actions based on Patients-Trust-Reputation-Business, always in that order.

As a company established and based in Japan, we also have local partnerships and fruitful collaboration with Japanese Embassies in the Western Balkans, as well as with the Japanese business community. Takeda is one of the founding members of the Japanese Business Alliance in Serbia (JBAS) and we are proud that Japanese investments in our region are increasing significantly. We sincerely hope to be able to additionally strenghten the collaboration of biotech sectors between Japan and Balkan countries at the upcoming EXPO 2025 in Osaka, given that JBAS has been actively engaged in supporting and promoting this important event. ∙ 87

PFIZER

Playing a Pivotal and Profound Role As a global pharmaceutical company that was founded in 1849 and has a rich history of bringing innovative therapies to patients worldwide, Pfizer strives to set the standard for quality, safety and values in the discovery, development and production of healthcare products

MOHAMED HAMMAM Adriatic Country Manager, Pfizer

e remain optimistic about prospects in the Adriatic region, and we are committed to investing and partnering with local stakeholders to foster an environment conducive to pharmaceutical innovation and to contribute to advancing healthcare for patients across the region,” announces Pfizer’s country manager for the Adriatic region.

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Your company is constantly on the hunt for innovative therapies. Do you believe that science always wins? ― Guided by our purpose of “breakthroughs that change patients’ lives”, Pfizer is committed to discovering, developing and manufacturing medicines and vaccines that extend and improve people’s lives. From the lens of an innovative multinational biopharmaceutical company, such as Pfizer, our role in the global health landscape is both pivotal and profound. As architects of medical innovation, we are constantly pushing the boundaries of what’s possible in healthcare, aiming to improve quality of life for millions worldwide.

We live our purpose by sourcing the best science in the world, partnering with others in the healthcare system to improve access to our medicines, always believing that science will win.

Are you satisfied with the availability of Pfizer’s innovative medicines in the coun88

tries of our region? ― We are today reaching more patients than ever before – in 2022 alone, more than 1.3 billion patients around the world were treated with our medicines and vaccines. From operations to product creation, innovative digital techniques and technologies are at the heart of Pfizer’s advancement as a company. These cutting-edge features are revolutionising therapeutic development, leading to improved patient outcomes and great-

We are today reaching more patients than ever before – in 2022 alone, more than 1.3 billion patients around the world were treated with our medicines and vaccines er accessibility to affordable healthcare for everyone. Our focus is on overcoming barriers related to affordability and availability. We are devoted to making our transformative solutions reachable to every individual, catering to the diverse needs across the region.

Meeting the needs of our patients depends on factors that emphasise the importance of collaboration. As Pfizer, we strive to maintain partnerships with governments to gain better

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insight into projected patient numbers, as well as to exchange experiences and international best practices in legislative and administrative frameworks on conducting clinical studies and other areas related to drug development and market availability.

You signed a Memorandum of Understanding with the Government of Serbia that serves to confirm your partnership on the development of biomedicine and biotechnology with the construction of the BIO4 Campus. How important is this development for Serbia and the region? ― Pfizer has been engaged in significant undertakings within the region. The Adriatic region, with its diverse market conditions and regulatory landscapes, offers varied opportunities for pharmaceutical innovation and investment. The Campus is designed to represent a recognisable point on the global map of development in the fields of biomedicine, bioinformatics, biotechnology and biodiversity, and as such aims to gather experts and renowned companies from these fields as collaborators and partners. The announcement of this project further highlights Serbia’s unwavering commitment to innovation, which is why Serbia has become an attractive investment destination for Pfizer. Our latest project involves investing more than €100 million to expand Pfizer’s manufacturing site in Croatia. This expansion will enable us to provide lifesaving treatments for rare diseases to more than 50 nations across the globe. ∙

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gard? Which pharmacotherapeutic groups represent the primary focus of your portfolio? ― There can never be compromise when it comes to quality. One of the strategic goals of the development of Hemofarm is the constant improvement of the portfolio and the continuous supplying of the market with high-quality products of the latest generation, which are available to everyone. We sell products in 13 (of 14) pharmacotherapeutic groups according to ATC classification. We take great pride in placing a lot of products on

HEMOFARM GROUP

No Compromise On Quality

Hemofarm is Serbia’s largest exporter of medicines. As a member of the STADA Group, Hermofarm does business in 31 countries on three continents and has a significant regional presence, thanks to its dedicated team of over 4,000 employees in Serbia, Bosnia-Herzegovina, Montenegro and Romania

RONALD SEELIGER Hemofarm Group CEO

ne of Hemofarm’s strategic development goals is to constantly improve its portfolio and continuously supply the market with high-quality products of the latest generation, making them available

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to everyone. It plans to continue investing intensively in the development of employees and showing others through its example that it is always possible to make change for the better.

You are focused on the production of high-quality, available and safe medicines. Could it be said that there is no compromise in this re-

We take great pride in placing a lot of products on the market, around 20 to 30 per year, because we always strive to provide better therapies in areas that are not common diseases the market, around 20 to 30 per year, because we always strive to renew our portfolio and provide better therapies in areas that are not common diseases.

Together with Roche, we have placed several new drugs on the market in 2023 alone, including a drug for multiple sclerosis, which effects 10,000 people in Serbia, and a new flu antiviral product. It’s important to take care of smaller patient groups, and we are proud to contribute in this regard.

It is part of our culture, our DNA; it is who we are.

A total of 407.3 million euros has been invested since the 2006 acquisition of the company, but you aren’t stopping there... You have continued investing in people, processes, innovations in production processes and expansion of the portfolio to include the latest medicines. ― STADA Group has a business tradition dating back more than a century.

Don’t forget that STADA is one of the largest German investors in Serbia. The best indicator of how important the Serbian market is for STADA Group is the investment of almost 450 million euros, which is how much has been invested in Hemofarm to date. Serbia and the entire Western Balkan region represents a very promising market for us, which is why we constantly strive to improve our business and strengthen our leadership position. We are on quite an exciting growth trajectory at this moment, and we are really committed to continuing with this for the years to come.

Our plan is to continue to invest intensively in the development of our employees and to show others by our example that changes for the better are always possible.

Following a successful 2022, you entered 2023 with an ambitious plan to produce 315 million packages of finished products, which would represent a new production record. Are you competing with yourself? ― When it comes to 2023, we are again expecting double digit growth, as we are for next year.

It is always a little challenging to grow when you are the market leader, but we do still like challenges. We have been breaking our own business records year after year, precisely as a result of our continuous investments.

Hemofarm is a modern organisation with high standards that

are comparable to any developed company in Germany or around the world. We are the proof that you can do business successfully in Serbia, of course under conditions that apply to any business anywhere in the world.

You recently announced new projects that will render your production site large by international parameters. How much is the investment you’re planning worth and which areas will you invest in the most? ― You will see a lot of projects

ed more than 2,300 activities worth approximately 14 million euros over the course of the last three decades. Could you highlight a few of the numerous projects and campaigns? ― Ever since its establishment, Hemofarm Foundation has been caring for peoples’ health and quality of life. We have provided aid to hospitals, launched projects, campaigns and activities related to health, invested in education and culture. We have fought against the prejudices associated with organ donation and

You will see a lot of projects that we are currently preparing for 2024 and beyond, which will bring Hemofarm to the size of a mega production site, even in international terms that we are preparing at this very moment for 2024 and beyond, which will bring Hemofarm to the size of a mega production site, even in international terms.

The investment amount is close to 100 million euros, and that sum will be invested in the area that will secure constant supplies.

And, again, this investment is part of our obligation and dedication to a secure supply chain going forward.

The Hemofarm Foundation is this year celebrating its 30th anniversary, having implement-

mental health, because there is no compromise when it comes to fighting for life. We share a vision of humanity and solidarity. The impact of our work can be great and can change lives. We have therefore learned to think about tomorrow. What we do today will impact the lives of our children.

Our success brings them a better future. ‘The next generation’ is our motto. And Hemofarm Foundation is here to involve all our employees, our partners and the entire society in doing good deeds for the generations yet to come.

While we’re on the topic of anniversaries, it is worth mentioning that this year you have commemorated two decades since the establishment of the Banja Luka factory for the production of solid dosage forms.

Are you satisfied with conditions for doing business on the Bosnia-Herzegovina market? ― I think the Hemofarm Banja Luka team deserves all the praise. They contribute greatly to the achieving of our purpose to take care of people’s health as a reliable partner. I am not at all surprised by the results they have achieved over the past 20 years.

This success is the result of the commitment and engagement of our colleagues in Banja Luka and throughout Bosnia and Herzegovina, as well as the partnerships we build carefully with everyone: doctors, hospitals, pharmacists, pharmacies, regulatory bodies and state authorities, the media and many others.

Medicines produced in Banja Luka are nowadays used by our satisfied customers all over the world. I have been here in the region for a long time, and I know that the label ‘Made in Germany’ is often synonymous with quality.

When I’m in Germany and I see my friends using STADA products or if I go to the pharmacy I can’t help but look to see if they come from one of our production facilities in the region. That is often the case, which is why Hemofarm is synonymous with quality everywhere. ∙

Sustainability Partner Hemofarm recently presented its unique STADA EXPO multimedia platform dedicated to sustainable development, with the launch of STADA EXPO having taken place in Vršac. What are your first impressions?

— STADA EXPO was created to offer visitors an all-embracing experience of what sustainable development is and what it means when a pharmaceutical company cares about the future.

We want to motivate everyone to take, together with us, the first step towards that change.

Hemofarm has been working on sustainability for more than a decade and we are ready to be a partner to everybody on that path. And that is what we want to achieve with STADA EXPO – inviting as many people as possible to join us in building a better world.

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ANALYSIS LTD. LABORATORY EQUIPMENT

Reliable Partner to the Entire Region

The primary focus of Analysis lies in wholesale supply, maintenance, and servicing of analytical, process as well as general laboratory equipment. In addition to providing application support, the company also offers the services of its Laboratory for calibration and validation NENAD ANDREJIĆ General Manager of Analysis laboratory equipment

hether intended for testing, research, quality control, or process monitoring, the company’s solutions find applications in all industrial sectors, in science, and private laboratories. The company’s vision and goal are to become a strong and reliable pillar of support for every laboratory.

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What’s included in everything that you offer your many users? ― Our range of products includes instruments and equipment made by the world’s leading manufacturers, with whom we have successfully cooperated since our company’s founding in 1996. Driven by the aim of providing optimal solutions for our users’ analytical needs, we offer complete support that involves consulting in the process of selecting adequate instruments, installation, training users for successful operations, servicing and maintenance, as well as calibration and testing. Alongside this, thanks to our many years of experience and the transfer of know-how in various areas, our users also have at their disposal application support and assistance in conceiving and designing laboratories.

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What’s encompassed by the application support that you offer users and what are all the services provided by your Laboratory for Calibration and Validation? ― The team at Analysis Ltd. recognised early on the need to develop and improve the service of providing users with application support. Our application team is today recognized as a reliable partner and leader in its field, thanks to knowledge acquired through work with the latest technologies.

In April 2021, after 25 years of successful operations, we established a subsidiary, Analysis Adria Ltd., headquartered in Ljubljana We offer several services under the scope of our application support. Apart from consulting on the selection of the methodology and optimal laboratory equipment in accordance with the needs of users, the application team provides a service for the development and implementation of a desired analytical method. This implies developing and introducing that method into routine use in the laboratory. Next comes verification or the validation of the established method, with

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which users are able to obtain reliable results in accordance with the prescribed requirements and consequently become competitive on the market.

On the other hand, alongside the calibrating and testing of monitoring and measuring equipment, our Laboratory for Calibration and Validation also provides consulting, training, and technical and metrological support. The Accreditation Body of Serbia has also accredited the laboratory for calibration and testing in accordance with the ISO 17025 international standard.

Analysis is a company that has a strong presence in the region. Where do you operate in the Western Balkans? ― Analysis operates in the territories of Serbia, Montenegro, Bosnia-Herzegovina, North Macedonia, Albania, Croatia, and Slovenia.

In April 2021, after 25 years of successful operations, we established a subsidiary, Analysis Adria Ltd., headquartered in Ljubljana, thereby consolidating our long-term business across the region and creating new prospects for further progress. The equipment we offer has broad applications in the pharmaceutical, environmental protection, food and beverage, water treatment, metallurgical, and other industrial sectors, as well as in the fields of science, forensics, and medicine – whether related to quality control, testing, research, or process monitoring. ∙

ZENTIVA PHARMA

A Success Story of Cluster Building, Resilience and Exceptional Cooperation Zentiva Pharma took over the central and eastern region of company Alvogen in April 2020, thus marking the start of its operations in Serbia. Zentiva has operated from day one under the motto that healthcare should be a right and not a privilege JELENA NIKOLIĆ Cluster Head Western Balkans, Country Head Serbia and Montenegro, Zentiva

n April 2020, Zentiva Pharma took over the central and eastern region of Alvogen, marking the beginning of its operations in Serbia.

The established and proven team structuring model of this company, which demonstrated remarkable success and resilience in Serbia amidst various challenges, has become a guiding example for team-building initiatives in other Western Balkan countries during the restructuring implemented three years ago. It is through this model that outstanding collaboration has been fostered among the countries.

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How challenging was it to become recognizable in a market filled with well-established players?

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― The synergy between Alvogen and Zentiva enabled Zentiva to build on Alvogen’s legacy.

We retained our team, business culture, and the entire operation that we had developed over the years at Alvogen. This continuity has been distinctive and widely recognised, providing an excellent foundation for Zentiva to step forward and quickly position itself among the strongest players in the generic market.

Your motto is that healthcare should be a right, not a privilege. It seems that today, more than ever before, people value the accessibility of high-quality and affordable medicines... ― The company’s motto essentially encompasses a wide range of values that form the basis of Zentiva’s work globally. When we say that healthcare should be a right, not a privilege, we are not only referring to the high-quality affordable therapy provided

by Zentiva but also to all the additional efforts, initiatives, and strides that our team members

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personally make every day. We encourage the professional and personal development of each individual in the team. Only that way, as a team can we contribute to ensuring that, despite all challenges, healthcare processes related to pharmacotherapy are implemented at the right time and in the right place in service to patients. In addition to all this, the company is committed to sustainability and minimisation of the environmental impact through numerous global sustainability projects.

Countries in the Western Balkans region operate similarly in terms of business models, structure, and business atmosphere, but they also differ significantly. What are the key foundations you have built to string together successes? ― Each Western Balkan country is unique, characterized by a distinct healthcare system and governing bodies. Therefore, our operations in each country follow a unique developmental path. At

the same time, the team structuring model that has shown incredible success and resilience in Serbia over the years has served as an example for building teams in other Western Balkan countries during the restructuring period I have lead three years ago. This has created a business atmosphere where communication flows at a high level, enabling collaboration between countries.

Understanding differences, on one hand, and mutual exchange of best practices, on the other, form the foundation for stringing together successes in the Western Balkan countries as a whole.

It has proven extremely important in building success that we exchanged experiences between countries and shared examples of successful projects, as well as ways of overcoming challenges, at regular joint gatherings that we’ve organised. This has all contributed to Zentiva’s exceptional growth in the Western Balkans, for which we’ve received important accolades. ∙

HORVÁTH CONSULTING

It Pays off to Prioritise ESG Horváth, a management consulting company that specialises in ESG strategy and performance management, advises its clients to identify the most appropriate responses to ESG, define an adequate strategy, goals and measures, and fit them into all business processes

MARIA BOLDOR Horváth Consulting

erbian companies must show their clients, employees, business partners, investors and other parties how ESG measures are implemented and the goals that they achieve, as well as how they position themselves within their activities in these terms.

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As someone who hails from a consulting company that specialises in ESG strategy and performance consulting, could you explain why companies need to engage in sustainable transformation? ― Sustainability is a strategic priority for management across industries, with widespread maturity in ESG. This is a clear finding of multiple Horváth studies developed over the last three years. Over 82% of the participants in our CxO study see the integration of sustainability as a critical success factor.

We always emphasise that this process is not a sprint, but rather a path of endurance that requires the integration of ESG in four key elements: Strategy & business model; Steering system; Processes & value network; and Organisation & corporate culture. It extends beyond regulation and companies should take a holistic approach to tackling sustainability.

Our recommendation is to define sustainability aspirations early on, keeping in mind that performance management is an important aspect for creating sustainable value.

It is important to stress here that the implementation of sustainable business is mostly expected by consumers who are increasingly seeking such products and services. Over 60% of participants in our study anticipate a sustainable product portfolio opening new markets and potentially increasing revenue by an average of 23%. Significantly, 40% of participants anticipate a sustainability-driven cost reduction of up to 7%.

The implementation of sustainable business is mostly expected by consumers who are increasingly seeking such products and services How would you evaluate the situation in Serbia and across the region when it comes to the development and introduction of ESG standards? ― For our clients in the Balkan region, we recognise that stakeholders act as drivers of sustainability. Consumers’ purchasing decisions are increasingly influenced by sustainability concerns, so companies need to be prepared for this development and create transparency. The transformation to sustainability is fre-

quently driven by employees, so from within the organisation itself. The capital market also plays a role - shareholders and investors demand binding sustainability efforts.

General awareness of this topic is lower in Serbia than it is in the EU. Nevertheless, companies that export goods or services to the EU attach great importance to it, as demonstarted by the appointment of dedicated employee(s) who deal exclusively with this topic. I believe that Serbian companies must show their clients, employees, business partners, investors and other parties how ESG measures are implemented and goals achieved, as well as how they position themselves within their activities in these terms.

What is essential for a company conducting a business transformation to become more ESG oriented? ― At Horváth, we advise clients identify the most appropriate response to ESG, define an adequate strategy, goals and measures, and that they fit this concept into all organisational processes. The understanding of sustainability must be placed at the very core of business, which consequently develops a sustainable employee’s “mindset”. This is the guarantee of long-term competitiveness and profitability.

From our experience, data collection is the most significant challenge when it comes to implementing the CSRD and EU taxonomy.

Companies should therefore focus on estimating data availability and defining processes and responsibilities early on. ∙ 95

GORDA

A Story Worth Telling

The wealth of our society lies in the fact that we nurture our own differences. In work, in sport, in entertainment, and in our free time. In our society – not only in Serbia, but across the entire Balkan region and beyond – one thing nevertheless remains eternal and eternally common: we love to celebrate

TIJANA ŠKORIĆ TOMIĆ Gorda Co-founder and CEO

ife is made up of a series of minor and major events, those that we commemorate and those that bring us together. And we enjoy them. That specific hedonism has already been woven into our tradition - toasts are the oldest recorded form of folk lyric poems. And there can be no toast without the right drink.

And good stories.

Fortunately, these lands have their own spirit. Honest hedonists know precisely what they want, and what’s best is that they don’t need to go far to find it. Rakia brandy has been perfected in this region over the centuries and has today resulted in a fantastic selection of high-quality fruit rakias, with a taste that will satisfy even the most discerning. Despite us already having a saying that there’s no such thing as bad rakia, there is nonetheless a huge grey area when it comes

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to production. Unofficial research suggests that for every registered distillery there are as many as five or even seven rakia brandy “producers”. And is that brandy excellent? Even if it is, we couldn’t possibly know. But what if that were to change?

With appropriate assistance and

With appropriate assistance and state initiatives, rakia fruit brandy production would flourish in Serbia

state initiatives, rakia fruit brandy production would flourish in Serbia.

Firstly, the budget would receive millions of euros each year from the collection of legal fees, which wouldn’t only expand the market and render it more diverse, but would also fortify it and create new space for further development. Yes, it’s a big job that’s not at all simple, but it’s worth it to make Serbia a destination for everyone seeking top quality fruit brandy.

SERBIA IS THE HOME OF RAKIA FRUIT BRANDIES And those of us who are registered distilleries want more our colleagues, because the entire offer would thereby

The beauty of plum rakia coupled with the grace of cognac Gorda didn’t emerge by chance. It was long desired and sought until we managed to make it perfect for us. It set out from Velereč, from Mount Rudnik, and found its loving fans. They have remained faithful to it from day one. They recognised the beauty of plum rakia coupled with the grace of cognac. That’s how Gorda has approached everyone elegantly and with love. In its full meaning, Gorda is also the ‘šljivovica’ plum spirit that UNESCO added to its world intangible cultural heritage list.

be made more interesting, diversified, richer. And our company emerged out of love and a great dream. My father, Veljko Škorić, wanted to enjoy with all his senses during his retirement, so he sought the help of experts for the production of his rakia, in order for them to work together to find the perfect blend and aroma. The family production gradually grew to become a company, one that’s recognised and renowned in Serbia, but not enough around the world.

Serbia should and could be branded as the home of rakia fruit brandies, but quality control must always remain the primary prerequisite, because we set high standards. Through the combating of the grey market and the organisation of fruit orchards, the quality of production and products will not only develop, but distilleries will also become placenames that will enrich our country’s tourist offer.

This all leads to the creation of not only national associations of rakia producers, but also regional ones, which enables the organising of joint appearances to present and promote rakia fruit brandies themselves, as well a much wider range of products and services. We would reinvigorate traditional crafts and certainly help underdeveloped areas and create many jobs.

LONG ROAD AHEAD Serbia is currently the world’s third largest plum producer and Europe’s second largest quince producer. Beyond our industry, how many people are aware of these facts? Our rakias are among the leading fruit brandies in the region, with quality on a par with world leaders. Why are we miss-

ing out on this enormous potential?

Over the course of last year, we exported fruit brandies with a value of 12 to 15 million euros, and that is a massive success. However, I believe that, with the right strategy, we could reach the magic figure of 100 million euros annually in just a decade. We do have a long road ahead of us, but I believe that all the effort is worth the success that we could achieve.

Until then, we will continue to provide our contribution. Gorda began from a niche in the market and with just one product - single-variety plum brandy, made from the domestic Čačanska rodna plum. This is the same variety that surrounded all of us who grew up in Šumadija. That’s why, for me and for all of us who make up the Gorda com-

Aron is special. This rakia is made from seven varieties of apple, five domesticated and two wild. Those seven varieties are left to rest in oak barrels for seven years. And this is precisely what gives it its unique balance. And that’s also why we only produce 1,000 bottles a year.

Crunchy notes of wild apples intertwine with sweet and sour tones to create an aroma that seduces with every sip. That’s also why we can state with pride that we’ve set a new standard for apple rakia. Our efforts were rewarded with a great gold award and Aron was declared the champion in its category, as evaluated by the judges of the CroSpirit event organised by Zagreb’s ZGrappa Festival of Brandy and Liquors.

Gorda began from a niche in the market and with just one product - single-variety plum brandy, made from the domestic Čačanska rodna plum pany, the plum is primarily a symbol of carefree living, natural joy, rich flavours; of a time that is perhaps slowly disappearing, though we’re not allowing our memories of it to fade.

GORDA HAS GAINED A HUSBAND CALLED ARON Gorda was initially made exclusively from plum, only for our great lady to receive company: quince brandy and apricot brandy. It was only years later that we realised that this saga has its own sequel, and that Gorda also has a husband. Not an opposite, not an antithesis, not a competitor - but rather an extension, improvement and pure love. Aron had arrived.

Despite the meaning of the name Gorda always being associated with the word “proud”, its true nature is, in a special sense, synonymous with self-respect, dignity and honour. All that pride isn’t an end in and of itself, but rather something that’s rooted in family tradition and spirit. We want these values to form the foundations of the recognisability of fantastic rakia fruit brandies originating in Serbia, hopefully in some different time that’s ahead of us.

The strength of Gorda is in the special selection of fruits, the team and the vision. We love it at tastings when we’re told: “She’s not ‘proud’, she’s Gorda”. ∙

VARIETIES

Aron is a rakia that’s made from seven varieties of apple, five domesticated and two wild.

Those seven varieties are left to rest in oak barrels for seven years.

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Raising Awareness and Developing Solutions Founded in Germany in 1946, ACO is today an international company that’s present in more than 50 countries and has 40 production sites on all continents. ACO has been present for more than 20 years in the Adriatic region, in Slovenia, Croatia, Serbia, Bosnia-Herzegovina and Montenegro

JELENA ANDRIĆ GRAFAKOS Managing Director ACO Eastern Europe Adriatic Group

CO is one of the world’s leading water technology companies, particularly for rainwater and wastewater management. Our mission is embodied in our claim: “ACO. we care for water”. Care in this regard means being protective and attentive, and is deeply embedded in the ACO WaterCycle. This cycle describes the collection, transportation, purification, storage and finally reuse of this vital resource. By using innovative separation and filter technologies, ACO prevents the contamination of water by fats, fuels, heavy metals and microplastics.

Worsening climate change and increasing urbanisation have influenced the water cycle to a large extent, which motivates us to

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work hard on the development of new technologies that protect people from water and water from people.

Many of these solutions and technologies have received prestigious awards in the construction industry, such as the Red Dot Award, Architect’s Darling, Innovation Medals and others.

been implemented throughout the region: airports, city squares, highways, tunnels, bridges, ports, hotels, apartment buildings, offices and public buildings, the food industry and professional kitchens. In all of these reference projects, ACO supported placing an emphasis on safety, functionality, durability and aesthetics.

Our showrooms in Serbia, Croatia and Slovenia provide a perfect space for discussion, exchanging knowledge and identifying solutions for each challenge connected to rainwater or wastewater.

Our AskACO approach comprises the expertise, continuous learning and development of innovative solutions that we create together with our clients and implement in ever-more complex and demanding projects and environmental conditions. On the basis of this approach, some of the most iconic reference projects have

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The requirements of each project and each participant in the project – investor, designer, construction company and supervisor – are carefully analysed, discussed and agreed on to ensure the desired outcome. Our showrooms in Serbia, Croatia and Slovenia provide a perfect space for discussion, exchanging knowl-

edge and identifying solutions for each challenge connected to rainwater or wastewater. The main purpose of opening these showrooms was to bring ACO solutions closer to our clients and also learn from them about the specifics and needs of each project, in order to find the best possible solution. These are often customised solutions developed by ACO experts to suit the conditions and requirements of modern projects.

The conditions of tomorrow’s environment include ACO engagement in areas impacted by climate change, global warming and the need for healthier living conditions in urban areas. That’s why, in this region, ACO has started promoting and focusing on the sponge city concept and caring intensively for trees. By so doing, we want to contribute to raising awareness and developing solutions that will help the people and the environment in the future. ∙

MARKO TANAZEVIĆ CEO, Delight Holding

elight Holding represents a group of companies with complementary core businesses that has been present on the market for more than two decades.

This regional business platform has companies in six countries and a clear strategy for the further expansion and development of its business.

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DELIGHT HOLDING

Oriented Towards Further Regional Expansion

Through its member companies, Delight Holding is present in most of the countries of Southeast Europe.

What are the specifics of maintaining a regional presence? ― A regional presence brings numerous specificities and challenges, and our response to them is always tied to synergy and complementarity. Every company is a kind of point-of-sale that reflects the local culture, business practices and knowledge of the spe-

The central pillar of the success of our business model is company Delight Office Solution, which operates As a holding company that operates in the private sector, in the domain of with all its challenges, Delight Holding has a strong complete interior financial position and more than 100 employees in the Adriatic region, thanks to the continuous organic growth of furnishings for business premises its operational turnover on sustainable foundations 100

CONNECTING THE REGION BUILDING BRIDGES

cifics of the market. We have established the system that enables us to enter a new market, creating the possibility for all companies that are members of the holding company to operate successfully.

Could you better acquaint us with the companies that are members of Delight Holding, as well as how much they complement one another in business terms? ― The central pillar of the success of our business model is company Delight Office Solution, which operates in the domain of complete interior furnishings for business premises. It has already gained great recognisability on the markets of Slovenia, Croatia, Serbia, Montenegro and North Macedonia, best testifying to which are its longstanding presence and continuous growth, as well as the number of clients with whom we’ve been collaborating successfully for many years.

All the other companies that today are part of the holding were initially developed to support the Office Solution segment and have emerged on the basis of the analysis of needs and the best experiences acquired over multiple decades of work.

The operations of Delight Office Solution are fully supported by business software that was developed for the needs of our operations by company Data Cycle, as a member of Delight Holding, with the idea of creating unique solutions for the comprehensive digitalisation of the business processes of companies from var-

ious industries.

We would also like to offer the professional experience we’ve gained to date to other companies on the market through the Delight Holding member company that specialises in the provision of advisory services and fi-

nancing for the procurement of equipment. Delight Asset and Advisory Services creates solutions for the most varied needs of clients, supported by a carefully developed financial plan.

We Share Space is a natural extension of our core business

Entering a new market creates the possibility for all companies that are members of the holding company to operate successfully

The client at the centre of considerations Delight Holding remains open to new ideas and new partnerships that place our clients and their needs at the centre of considerations, while simultaneously supporting all of our complementary businesses. The idea behind that partnerships always contribute to boosting joint results and the company’s strength and values.

of furnishing business interiors and represents the leading operator of serviced office spaces in Serbia. The regional expansion of this business was launched in late 2023 with the aim of developing several locations in all capital cities of the region.

The youngest member of the holding company, Delight ICT, provides services in the field of information and communications technology, hardware and maintenance services. Our idea is to strengthen Delight Holding even further by investing in synergistic businesses that have their own independent market position.

What are the next steps in the development of your business and are you open to new partnerships? ― Delight Holding is a unique platform for the support of business operations that enables growth through organisational development that’s supported by experienced managers, suitable software and the development of business and people. Centralised services, a clear organisational structure and business processes enable the optimisation of costs and time. Software support provides access to information and the business reporting that’s essential to decision-making. Market research and experience gained in the process of developing business lead to the shortening of go-to-market initiatives, while discovering and nurturing talented employees leads to a business model that’s sustainable over the long run. ∙

Planning to conquer new markets We have a clearly positioned plan for the future, which – alongside the inevitable organic growth of the company – targets the diversification of business, but also further regional expansion. This strategy is being implemented through the expansion of the operations of the serviced office business on all existing and future markets.

Alongside neighbouring markets we are analyzing further ones for our geographical expansions.

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BEKAMENT

From Local Success to Regional Expansion

Bekament has achieved very impressive figures over the three decades of its history to date, which is why company representatives note with pride that, in addition to the domestic market, Bekament’s range of over 250 products is also sold on 17 other markets, as many as 11 of which are on the territory of the EU in the region, with the help of distributors and our teams of diligent people who monitor the needs of consumers on a daily basis. Operating on a large number of markets that are specific in terms of their demands, competition and pricing policies, requires expertise, varying approaches and detailed analysis of each individual market. We take a professional and serious approach in all of this, striving to be a leader in Southeast Europe, and we believe that we already are a leader in the region and that this is recognised by others.

BOJAN ŠVONJA Sales Director for Serbia and export markets at Bekament

his Aranđelovac-based giant welcomed the construction sector’s expansion in a state of readiness, with new automated plants and capacities capable of responding to the demands of a rapidly expanding market. This has enabled the company to satisfy growing demand and become a regional leader in its industry. Here Bekament’s Bojan Švonja, Sales Director for Serbia and export markets at Bekament, reveals how this has been achieved and the company’s ambitious plans.

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Bekament sales wide range of products to end users. On how many markets are you present? Do you export to the EU and how are you rated across the region? ― Apart from the domestic market, Bekament also supplies another 17 markets, 11 of which are on the territory of the EU. We have spent many years strategically developing markets 102

Do you manage to satisfy the growing demand for your products? ― The last decade has been marked by the significant development of the construction industry, which has experienced genuine expansion over the previous few years. Bekament entered this period in a state of readiness, with new automated plants and capacities capable of responding to the demands

― Having a fully rounded-off process, from our quarry to the final product, provides us with the possibility of strictly controlling the quality and having a sense of certainty in the products that we offer. In this regard, we are proud of our development laboratory, where we satisfy high criteria in terms of quality, as evidenced by the numerous certificates that we possess. We are certainly ready for new challenges and have already created a base that provides us with the basis to believe in that eventuality.

Our factory for powder materials and liquid products has an annual production capacity of 350,000 tons, while our polystyrene plant is able to produce 500,000m3 at the annual level. Bekament has further fortified its leadership position in the region with the opening of a new factory for the production of extruded polystyrene that has a capacity of 250,000m3.

None of this would be possible without the 500 employees who contribute with their ded-

We strategically develop markets in the region, with the help of distributors and our teams of diligent people who monitor the needs of consumers on a daily basis of a rapidly growing market. This has all enabled us to satisfy the growing demand and become a regional leader in our industry, and through this we’ve achieved revenue growth exceeding 100% for the last three years, while additionally establishing a presence on several new EU markets.

Company Bekament is characterised by the fact that it pays special attention to the complete production process, investing in development, people and the community. Why is that so important to you?

CONNECTING THE REGION BUILDING BRIDGES

icated work on a daily basis to Bekament being not only a leader in the growth of turnover, but also to be a guarantee of quality and good service for all our partners and end users, as well as a top place for our employees to work and develop. One of the fundamental values of our company is to also invest in the community in which we operate, and to do so through socially responsible and sustainable operations. In the belief that success is even greater when shared, we are happy to help and invest in the development of sports, healthcare, science, culture and education. ∙

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Quality Brings New Markets

As one of the leaders in the production of detergents and household chemicals, Beohemija is a company that exports its products to more than 15 countries of the region and the EU, while it is preparing, together with CE Industries, to enter the markets of Africa

ROMAN KRATOCHVIL CE Industries Business Partner & Beohemija d.o.o. CEO

n this interview for Connecting the Region, Roman Kratochvil discusses the business results of the company he leads and shares a portion of the ambitious plans for the upcoming period.

I

How are the results of the operations of this Zrenjanin-based giant under your leadership? What has changed over these two years? ― It is important to note that we bought a good company, which we acquired from Preston, and thus Beohemija has practically been operating within the framework of Czech holding company CE Industries since September 2021. CE Industries is a modern industrial holding company with high added value in the fields of energy, heavy engineering, rail transport 104

CONNECTING THE REGION BUILDING BRIDGES

and raw material recycling. It has more than 2,500 employees in Czechia, Slovakia, Croatia and Serbia, and a turnover that we believe will exceed 350 million euros this year.

Has the company’s two decades of commitment to quality and continuous investment fortified Beohemija’s leadership position in the country and around the region? ― Our strategy is to develop our relationships with customers and all stakeholders, through long-term development and the ascribing of the proper value of our branches, thereby contributing to the company’s further economic development. Despite expectations that 2022 would show the first positive effects of recovery from the economic crisis brought about by the pandemic, inherited problems were only added to with the new challenges brought by the war in Ukraine: supply chain disruptions, increases in the prices of raw materials, energy and transport, rising inflation and interest rate hikes.

Regardless of everything, investments were made in the plant and in the procuring of new equipment,

while holding company CE Industries took over a company in Czechia that has a very similar product range, and so today that company, which is called Beohemija Czechia, operates under the auspices of Beohemija Serbia. All of the aforementioned form part of our long-term strategy, which encompasses investing in the portfolio and expanding to new foreign markets.

The Open Balkan initiative is very important for us, because it is thanks to it that we are able to approach consumers on all markets encompassed by the initiative How would you evaluate the potential for development towards new foreign markets? Are you assisted in this by the companies that operate within the scope of CE Industries or

My heart is in the Balkans Apart from one small break that I took to run a large international and American company in Poland, I’ve lived in Serbia for two decades, because everything I need is here – pleasant people and wonderful friends – which is why my heart is in the Balkans. I visit at least one country of the region each month and feel wonderful in each of them, like I’m at home, which is the case for most people from Central Europe when they come to these lands. It is with this in mind that I’m organising a teambuilding trip to Jahorina, a skiing holiday for employees of CE Industries. What can I tell you? I’m a Yugo-nostalgic.

by the Open Balkan initiative? ― The Open Balkan initiative is very important for us, because it is thanks to it that we are able to approach consumers on all markets encompassed by the initiative. We respect the needs of all our consumers; we listen to what they want, what they expect, what products to offer, what fragrance notes to include. We cooperate with the world’s largest producers of raw materials, fragrances, technologies; with the top experts in our industry, who are committed to developing and improving products. This is our formula for success, with which we’ve retained the trust of existing consumers and gained the trust of new ones.

The Beohemija development strategy is to strive towards new European markets, and we were proud to add Romania to the map of our export markets in October.

The Romanian market is extreme-

ly demanding, but we managed to enter the Kaufland chain, which has 270 retail outlets. We are simultaneously preparing, together with CE Industries, to appear on the very popular African markets, where a great need for our products exists.

know that, by buying Duel, they will get the quality and scent to which they are accustomed, but also that they can rely on the entire range of products included under this brand name. Despite all the turmoil both within the company and on the market,

Our Duel brand has had its own loyal customers for decades, who know that, by buying Duel, they will get the quality and scent to which they are accustomed, but also that they can rely on the entire range of products under this name You invest a lot in developing the company, and primarily in developing your brands. What do you use to fight the increasing competition? ― Our Duel brand has had its own loyal customers for decades, who

Duel has kept its position thanks to its quality. All countries in transition, Serbia included, have gone through a phase of turning to products from abroad, due to a need to try something international, something global, but they

ultimately returned to what’s familiar to them, which symbolically represents safety.

We have an entire portfolio of household brands, from Duel, which is unsurpassed in the category of detergents and fabric softeners, via dishwashing detergent Spin, to Pompa etc. Thanks to our acquisition of a company from Czechia, we are in a position to offer the market Spin dishwasher detergent tablets. At the same time, we are restoring the glory of the Pompa brand, while we will also pay special attention to Duel and won’t overlook the Selection brand either. Everyone knows about the yellow Duel, while for next year we are preparing something special in the softener category: a limited-edition product that will be available in all supermarkets in Serbia and around the region as of next spring. That will be a new product, but with old and unquestionable quality. ∙

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UDG

Responsible Citizens, Global Ambassadors: UDG Graduates in Action

The University of Donja Gorica (UDG) held a University Day celebration that included the ceremonial awarding of diplomas, which was followed by a joint performance of the UDG anthem, a photo shoot and the throwing of this university’s recognisable orange caps

n honour of the first generation of students, who enrolled in the University of Donja Gorica as far back as 2007, a formal diploma award ceremony was organised on the 11th hour of the 11th day of the 11th month, as has been the case in all previous years. The date and time were carefully selected as a reminder that it was 16 years ago that the UDG Faculty of International Economics, Finance and Business and the UDG Fac-

I

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ulty of Law each received 111 newly enrolled students. That first generation of UDG students, who marked the start of everything for this institution of higher education, truly deserves eternal gratitude for believing in the vision of university professors Veselin Vukotić and Dragan K. Vukčević, who implemented the greatest entrepreneurial venture in the field of education and research in Montenegro.

Speaking at the opening of the

award ceremony, UDG Rector Veselin Vukotić congratulated the students and their parents on their diplomas and expressed his hope that their life at UDG to date has awakened within them the courage to believe in themselves, to respect their own freedom and dignity. He also expressed his hope that they experienced a spiritual transformation and that they are on the road to being liberated from “small town arrogance” and “provincial intel-

lect”. As Rector Vukotić himself noted, he is convinced that these students will contribute to realising the UDG mission – by becoming global players and responsible world citizens. He reminded attendees of the student initiative to call UDG the University of Life, because they themselves felt that one doesn’t learn about life at UDG, but rather from life!

The graduation award ceremony is a day that marks the culmination of an important chapter in the lives of students. At the same time, it is also a day that fills their hearts and those of their families who attend the ceremony. Approximately 500 students graduated this year from UDG’s 24 study programmes, with a significant number of them set to continue their studies at prestigious European, American and Asian universities. Apart from diplomas, special awards were also presented to the top students of the generation.

The event’s rich programme included the participation of all-fe-

male vocal group Alata, which performed the Montenegrin national anthem and the student anthem, the ‘Crna Gora’ folklore ensemble, poet, lawyer and presenter Jelena Božović, who ded-

icated her poem Ima li đe? [Is There Anywhere?] to the graduating UDG students who are continuing their studies at universities around the world.

The University Day celebra-

Approximately 500 students graduated this year from UDG’s 24 study programmes, with a significant number of them set to continue their studies at prestigious European, American and Asian universities

tion was also marked by a number of events, with the standouts including an Homage to Blaise Pascal, Chinese Arts Events and happenings organised by the university’s research centres.

The National Competence Centre for Supercomputing organises Info Days with companies, while the FoodHub Centre of Excellence is a co-organiser of the 3rd Black Sea Association of Food Science and Technology Congress (B-FoST 2023).

In accordance with tradition, this year also saw the presenting of the award bearing the name of Svetozar Stiv Pejović, one of the 20th century’s top economists and one of the founders of the UDG Faculty of International Economics, Finance and Business. Among the 34 nominees, this year’s award, which includes a monetary prize of 1,000 euros, was presented to Viktor Avhust from Ukraine’s American University Kyiv (AUK) for his essay entitled “The Future of Democracy in a Spiritless Society”. ∙

Proud of excellent international cooperation Testifying to UDG’s importance for the development of Montenegro’s higher education and its internationalisation are its strategic partnership with Arizona State University, membership in the Alliance of International Science Organisations (ANSO), cooperation with a large number of European universities through the programmes of the European Commission, cooperation with 16 Chinese universities, one of the best global programmes for international management and hotel management, headed by France’s Vatel, membership in the Council of Europe’s Cultural Routes University Network, as well as membership in the United Nations World Tourism Organization.

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PLUS D.O.O. PODGORICA

Far Ahead of Everyone

Consumer goods importer PLUS Podgorica is among the leading companies on the Montenegrin market. Cigarettes represent the key category of its operations, while it is also achieving fantastic results in the categories of cosmetics, hair and body care, and hygiene, as well as in the food and beverage segment

PROKOPIJE PERIĆ CEO, Plus d.o.o. Podgorica

e paid over 40 million euros into the budget in 2022, in the form of excise duties on tobacco products,” says CEO Prokopije Perić, noting that this amount will exceed 43 million euros for this year, which is far more than any other company that deals with the importing of cigarettes to Montenegro.

“W

In which categories are you present and what are all the items that comprise your portfolio? We know it’s difficult to list simply because our company is expanding constantly... ― Having learned from previous experiences, we tried to diversify our operations into as many categories as possible, in order for the company’s stability to be beyond question, regardless of the various turmoil on the market. Cigarettes certainly represent the key category of our business. Japan Tobacco International’s Sobranie and Winston brands dominate the premium and mid-price category of cigarettes, while Una Slims – as a brand that we developed ourselves and marketed on the Montenegrin market – is the absolute leader in the budget category. Our brands’ total market share exceeds 45%.

Our stability is strengthened greatly by products from the category of cosmetics, hair 108

care and body care from the range of company L’Oréal, with the brands L’Oréal Paris, Maybelline New York, Garnier and Mixa. The trust they placed in us was returned with a market leadership position in every category in which they are present. We cover the hygiene category with Essity produced brands Libresse and Zewa, and we are also among the key players in Montenegro in that segment.

Investing constantly in the development of our employees is one of our priorities, and in future we’ll allocate ever more resources to this We devote a lot of attention to the food and beverage segment. Alongside Hausbrandt coffee, for which we are the exclusive importer for Montenegro, our portfolio includes numerous other brands, and since June 2022 we’ve been the exclusive importer of Banja Luka Brewery and its Nektar brand.

It is vital in your line of business to ensure a fast and high-quality service, and that you are able to constantly adapt to new trends. Judging by the results, PLUS appears to be ahead of the times? ― Despite us investing a lot in the digitalisa-

CONNECTING THE REGION BUILDING BRIDGES

tion of the business and software, which enables faster and more efficient operations, our employees are the ones who make the biggest difference between us and our competitors. If you have sufficient funds, it is today easy to build the best logistics facilities and buy the latest vehicles, but having a sufficient number of motivated and professional people, who form the core of the company, is more important than all of that. Investing constantly in the development of our employees is one of our priorities, and in future we’ll allocate ever more resources to this. I’m particularly proud of the earnestness and dedication of all our employees, which is why I’m certain that we’ll remain far ahead of everyone for a long time to come.

You always have huge plans, and one of them is to maintain your leadership position and increase your market share. Does space exist for you to expand to other markets, to the rest of the region? ― That’s certainly a topic that’s always relevant, but we are also very cautious when it comes to venturing onto other markets. The results we’ve achieved on the Montenegrin market with our Una Slims brand are truly impressive, so it is to be expected that we will move to expand further in the region. We currently have agreements with partners in Serbia and Albania to launch sales on those markets, and for now that’s what we’re focused on. ∙

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KOSOVO*

Brezovica Beauty Explore the captivating landscapes of Brezovica, nestled at an altitude of over 1,015 metres, where nature’s charm unfolds in every season.

BOSNIA AND HERZEGOVINA

Jahorina Majesty Experience the majesty of Jahorina, standing tall at 1,916 metres above sea level, and embrace the Alpine wonders it offers.

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SLOVENIA

Triglav Tranquillity Discover the tranquil beauty of Triglav National Park, where nature’s serenity embraces every corner of this pristine Alpine wonderland, standing at 2,864 metres high.

SERBIA

Kopaonik Splendour Feel the splendour of Kopaonik, where the pristine landscapes rise to an elevation of 2,017 metres, offering a paradise for nature enthusiasts and winter sports lovers alike.

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KOSOVO*

INTERVIEW

Building Bridges Together

Western Balkan nations could entice FDI by offering cost-effective operations, skilling the workforce, improving infrastructure, streamlining regulations, ensuring stability and providing incentives for foreign companies these countries do not impede one another’s progress,” he adds.

This involves a multifaceted approach that includes the complete removal of trade barriers and the facilitation of the free movement of people and capital within the region. By addressing these issues and fostering a harmonious environment, the Western Balkan nations are not only building stronger bridges amongst themselves, but also paving the way to a more interconnected and economically vibrant region.

improving the skills of its workforce.

Western Balkan countries should invest in education and training programmes to ensure a skilled and adaptable workforce. Training in languages, technical skills and industry-specific expertise can make the region more appealing to foreign companies seeking a talented workforce.

Third are investments in infrastructure development, which are essential in terms of improving and modernising infrastructure, including transportation, logistics and digital con-

The inclusion of Western Balkan countries in supply chains drives streamlined trade infrastructure that’s vital to efficient crossborder trade and compliance with EU standards

LULZIM RAFUNA President of the Kosovo Chamber of Commerce, President of the WB6 CIF Management Board

onnecting the Region – Building Bridges” is the vital theme of cooperation among the Western Balkan nations as they strive towards accession and integration into the European Union, says Lulzim Rafuna, President of the Kosovo Chamber of Commerce and President of the WB6 CIF Management Board. “In order to achieve this goal, it is imperative that

“C

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“Such cooperation is essential not only for regional stability and prosperity, but also as a stepping stone towards achieving aspirations of EU accession and alignment with European standards,” says Rafuna.

Our interlocutor suggests a list of approaches through the Western Balkan countries that can enhance their appeal to potential nearshoring partners.

The first relates to competitiveness on costs. Western Balkan countries can offer cost-effective labour and operational expenses, making it financially appealing for businesses to offshore or nearshore their operations to the region. This could involve competitive wage structures and tax incentives for foreign investors.

Second, the region should focus on

nectivity. Reliable infrastructure is essential for supply chain operations to run smoothly and business processes to be efficient.

Fourth is the regulatory environment. Western Balkan countries should streamline their business regulations and reduce bureaucracy in order to create a business-friendly environment. This includes ensuring ease of company registration, property protection and simplified customs procedures, as well as the eliminating of barriers to trade.

Furthermore, it is important to maintain political stability and promote the rule of law as a way of instilling confidence in foreign investors. A stable political environment reduces the risks associated with doing business in the region.

Rafuna also believes that Western Balkan countries should provide incentives like tax breaks, grants, or subsidies to attract foreign businesses, while they should additionally establish support mechanisms and onestop shops to assist companies in setting up and running their operations.

The Western Balkan countries should also provide access to each other’s markets without trade barriers and then highlight the region’s proximity to European markets and the potential for expansion to the European Union, demonstrating the strategic advantages of locating operations in the Western Balkans.

It is also important to foster cultural and language affinity. Western Balkan countries have cultural and language affinity, which makes it easier for companies from EU member states to operate and communicate effectively. The youth of Kosovo*, for example, speak different foreign languages.

It is also vital to maintain collaboration and networking between local businesses, foreign investors and government agencies, in order to create a supportive ecosystem for nearshoring.

Networking and partnerships can lead to mutually beneficial opportunities.

The inclusion of Western Balkan countries in major supply chains can impact significantly on the process of adopting European standards in several ways.

“To participate in these supply chains, Western Balkan countries need to align their regulations and standards with those of the European Union.

This alignment is essential to enabling seamless integration into supply chains and ensuring products and services meet EU requirements,” says Refuna.

Furthermore, companies operating within these supply chains must adhere to the high quality and compli-

ance standards demanded by their clients. “This encourages the Western Balkan countries to improve their quality control, safety measures and production processes to meet EU standards,” explains our interlocutor.

Participation in supply chains often involves transferring technology from more advanced economies. This technology transfer can aid Western Balkan countries in adopting advanced manufacturing and production processes that satisfy EU standards.

“As already noted, skills and expertise are extremely important. In order to become part of these supply chains, the workforce in Western Balkan coun-

ket. As a result, Western Balkan countries have a strong incentive to conform to European standards, both in terms of product quality and business practices. Moreover, compliance with European standards can provide a competitive advantage for companies operating in the region. “It allows them to attract international customers and business partners who prioritise quality and conformity to EU norms,” concludes Refuna.

Ultimately, the involvement of Western Balkan countries in significant supply chains is crucial in expediting their embracing of European standards. This participation aids in

CHAINS

Being part of major supply chains provides easier access to the EU market.

Cooperation among Western Balkan countries is crucial to regional stability, prosperity and progress on their path to EU accession and alignment with European standards tries needs to acquire the necessary skills and expertise. This includes knowledge of EU regulations, quality control and best practices, contributing to the adoption of European standards,” adds Refuna.

Being part of major supply chains provides easier access to the EU mar-

aligning regulations, advancing product quality, refining workforce abilities and simplifying entry into the EU market. This integration not only boosts the economy of the region, but also supports the broader journey of EU accession and compliance with European standards. ∙

PARTICIPATION

PROGRESS

COLLABORATION

Supply chain participation drives Western Balkan countries to align their regulations with neighbouring EU states, simplifying cross-border trade and adopting European standards.

It is necessary for Western Balkan countries to avoid hindering each other’s progress as they pursue accession and integration into the European Union.

Maintaining collaboration and networking among local businesses, foreign investors and government agencies is crucial to fostering a supportive ecosystem for nearshoring.

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GRAPHICS

GDP per capita is still below half of the EU average, even after adjusting for purchasing power GDP per capita, as % of EU average (PPP adjusted)

Central, East and Southeast Europe Montenegro Serbia North Macedonia Bosnia and Herzegovina Albania Kosovo

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64.1% 50.5% 44.6% 41.6% 35.2% 34.1% 26.7% Source: wiiw 115

KOSOVO*

OPINION

Navigating Regional Challenges Kosovo’s* economic growth hinges on the progress of EUSerbia dialogue, with the lack of a comprehensive agreement and regional cooperation potentially impeding its trajectory and citizenry’s needs

IDRO SEFERI Journalist

espite challenges, the economy of Kosovo* has made notable strides in recent years.

The country’s young people and educated are its engine and workforce that represent a promising asset for future development. Like many countries

D

ical dynamics, notably in the EU dialogue with Serbia. The pace of economic growth is intricately tied to the outcomes of these negotiations. Without a comprehensive agreement and strengthened regional cooperation, the economy may experience slower growth, potentially falling short of meeting the needs of the citizenry.

When entering the Kosovo Innovation Centre in Pristina, the sight of

Kosovo’s* economy faces challenges, including high unemployment and dependence on external trade, necessitating efforts for long-term sustainability that don’t have enormous foreign investments, diversity in the economy has helped develop sectors like information technology, which bodes well for its overall economic outlook.

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teenagers engaged in activities that seemed like gaming caught me off guard. To my surprise, it wasn’t a gaming room; my friend, a leader at the institution, explained that these youngsters were part of a NASA programme.

The centre exuded a modern, busi-

ness-like atmosphere reminiscent of the offices at Oerlikon in Zurich, Switzerland, where I used to work. It was a hub that facilitated work, but also provided spaces for relaxation and short breaks, including real game rooms.

During my visit, I played ping pong with the young participants of the Innovation Centre and quickly found myself outmatched. It reminded me of the collaborative and dynamic atmosphere of similar business settings.

Not long before this, I had visited another centre, “Bonevet”, which aims to guide very young individuals not only in technology, but also in life skills. Founded by Vllaznim Xhiha, a retired engineer from Switzerland who returned to Kosovo, “Bonevet” serves as a platform for young minds to explore their potential. I covered this story for Swiss public broadcaster SRF. My story at “Bonevet” began with a remarkable innovation—an electric car made in Kosovo. Four young

innovators, two girls and two boys, demonstrated their creation with enthusiasm. Despite their youthful appearance, their maturity was evident.

When I asked if someone could drive the electric car for video footage, they replied humorously: “we are 14 and have no driving licenses”.

Within “Bonevet”, even younger kids were actively engaged in various projects. They worked diligently on crafting toys and wooden houses, programming, and even 3D printing items like printers, violins and, later, Covid-19 face shields. These young individuals are the future assets of Kosovo’s economy.

It is worth noting that young people from Kosovo* are becoming bilingual, speaking English alongside their mother tongue. Despite concerns about the impact on their native language, the positive aspects are undeniable. The ability to communicate fluently in English accelerates their development. Most children and young people in Kosovo* now speak English proficiently from nursery school onwards. However, in order for these generations to thrive, they will need a more extensive and sustainable economic landscape.

Unfortunately, many individuals in the country still aspire to move abroad. The Kosovo diaspora continues to be a crucial pillar of the country’s economy. The Central Bank of Kosovo has reported that remittances received in Kosovo* have reached a value of 1.22 billion euros, showing a six per cent annual increase, constituting 13.7 per cent of the GDP. Despite the positive changes in Kosovo’s economy, the heavy reliance on remittances makes the country vulnerable. To achieve stability, Kosovo* must focus on enhancing its domestic production. Kosovo’s major exports predominantly consist of met-

als (47 per cent of total exports) and mineral products (30 per cent of total exports). Other notable export products include prepared foods, plastics, rubber, machinery, appliances, electric materials and textiles. The country’s key export partners are Italy, Albania, North Macedonia, Switzerland, Montenegro and Germany.

On the import front, Kosovo* covers most of its needs, including essential food products, which are primarily sourced from outside the country.

However, it consistently experiences a trade deficit due to the significant reliance on imports to meet consumer demand.

pivo”. While this beer is available on markets across Western Europe, especially in Switzerland and Germany, Serbians nostalgic for it cannot buy this beer in their neighbourhoods due to import challenges. Paradoxically, despite campaigns to boycott Serbian products, Kosovo* continues to import hundreds of millions of euros worth of goods from Serbia.

The economic future and accelerated growth of Kosovo* hinge on its political stability, which is tied directly to outcomes and peace agreements in the dialogue with Serbia that is being facilitated by the European Union. No significant investments will

PARTNERS

The country’s key export partners are Italy, Albania, North Macedonia, Switzerland, Montenegro and Germany.

Fluent English skills accelerate development for most children and young people in Kosovo*, but a broader and sustainable economic landscape is crucial for their long-term success The primary domestic industries include agriculture, mining, the home bedding sector and construction.

Notably, Kosovo’s major exports include scrap metal, nickel, lead and mattresses.

While the Kosovo-Albanian diaspora, which has been enriched with experiences from Western countries and capital for investment, contributes actively to the economy, investments from large foreign corporations remain modest. Kosovo* faces challenges in economic competition with other regional countries, some of which, like Serbia, exert dominance over its economy with their products.

Kosovo* boasts excellent wine production and many residents of the city of Rahovec/Orahovac rely on its output. The country’s most renowned product across the region is Peja beer, originating from a Yugoslav-founded factory formerly known as “Pećko

Stability Stability is essential for both Kosovo-Albanian and local Kosovo-Serb businesses, supporting regional cooperation initiatives like Open Balkan.

flow into a country that’s perceived as being dogged by long-term instability. This predicament is not Kosovo’s fault, but it does underscore the need to shift the focus away from political tension.

Stability is crucial not only for Kosovo-Albanian-owned businesses, but also for local Kosovo-Serb businesses, for fostering notions of regional cooperation espoused in initiatives like Open Balkan, where participation is notably limited to Albania, Serbia and North Macedonia. Attempts to use the economy to alleviate regional issues, such as those made by the administration of former U.S President Donald Trump, have often met with failure. Technical aspects, like aviation and train connections and the building of highways, and the addressing of administrative issues, are deeply political, stalling not only the development of the country, but that of the entire region, which is in desperate need of progress. Economic growth therefore remains closely tied to political considerations. When economic indicators consistently rise, it signals success in politics and a point of no return. ∙ 117

Cultural Compass The Art of Spinning Wool Unites the Women of the Region Folk Crafts

More than 20 women from Serbia and Bosnia-Herzegovina presented craftsmanship skills using the ancient technique of spinning wool to representatives of national institutions and the international community during the Diplomacy Day that was this year held on 27th October, under the scope of the first wool spinning colony that took place at Sremska Mitrovica’s Sirmium Imperial Palace Complex. The colony was jointly organised by the National Alliance for Local Economic Development (NALED) and the Ethno Network, in partnership with the Bosnian Handicrafts association and under the auspices of the project “Together for Cultural Tourism Cross-Border Cooperation for Improved Socio-Economic Development and the Preservation of Traditional Crafts”, which is being implemented with EU support. Most of the pieces made during the colony included the motifs of the mosaics of the Imperial Palace, with Solomon’s knot represented the most.

its promotions of the arts and the use of music as a universal language that promotes reconciliation in this region of cultural diversity. The “No Borders Orchestra”, which isn’t a conventional ensemble, received the award “because it uses art as a medium to achieve a positive impact in communities by bringing together artists and music lovers from all parts of the region; because it promotes art, togetherness and wisdom through the most beautiful notes, lectures and concerts in the region’s major cities and thus erases the borders between them”. The “No Borders Orchestra” serves as a platform for overcoming nationalism, racism, xenophobia, homophobia and the bloody legacy of the Western Balkan region and beyond.

24th Economy Fair LELEE launches mini Balkan tour

Kraljevi Čardaci Art Colony Held Fine art

Under the joint organisation of the Cultural Centre of Novi Sad and Kopaonik mountain’s Kraljevi Čardaci hotel complex, the first re-

Select Orchestra Uses Balkan Notes to Erase Borders Music

The ”No Borders Orchestra” has been selected as a champion of regional cooperation for 118

gional painting colony was held in June 2023 and included the participation of artists from Serbia, Montenegro and Bosnia-Herzegovina.

Cooperation was thus established between economic and public sectors, with the intention of enriching the cultural offer of the Kopaonika region. The colony included the participation of artists with various aesthetics and styles of expression.

This extremely successful colony, which saw the creation of very interesting artworks, is set to develop into a traditional gathering of artists, with a tendency for the project as a whole to take on international proportions.

Works from the colony went on to be presented within the framework of a special exhibition in the Art Salon of the Cultural Centre of Novi Sad from 3rd to 12th September.

CONNECTING THE REGION BUILDING BRIDGES

The LELEE band, Ljubljana’s heroes of the Adriatic indie-rock sound, launched a second mini-tour around the Balkans in early November that will see them appear at some well-known venues in Belgrade and Skopje, while they will also introduce themselves to new clubbers in the cities of Bitola, Kragujevac and Niš. During this year that’s been rich with happenings, this Slovenian quartet has released two singles: the instant hit Snaga [Force] and the spring ethno-psychedelia song Nestaješ [You Disappear], which helped fortify LELEE’s place on the map of the region’s indie music scene – a place that’s

demonstrated constantly through their energetic performances on home soil and around the region. LELEE’s members are currently focused on preparing new material and recording upcoming singles, while the band is using the tour, which will enable audiences to hear new songs, as a short break from the studio and their current creative work.

Ruta Grupa Triglav Festival Unites Actors Theatre

Podgorica’s City Theatre hosted the Regional Union of Theatres’ Ruta Grupa Triglav Festival for the third time this year, from from 18th to 24th April. Theatregoers had an opportunity to watch top theatre productions created by members of the Union, which, apart from Podgorica City Theatre, includes Zagreb’s Ulysses Theatre, the Belgrade Drama Theatre, Chamber Theatre 55 from Sarajevo, Drama Theatre Skopje and the Ljubljana City Theatre.

This festival was created in October 2019, when representatives of these six theatres from the territory of the former Yugoslavia signed a protocol agreement on professional cooperation and formed the Regional Union of Theatres, thereby enabling the creation of large regional coproductions.

Belgrade welcomes the exhibition Kako te vidim? [How Do I See You?] Multimedia exhibition

The exhibition ‘How Do I See You?’, which is being jointly coordinated by Prizren’s DokuFest, the Free Zone Junior programme

(B92 Fund) and the Free Zone Film Festival, with the support of the European Union, opened on 3rd November on the premises of the B92 Fund in Belgrade’s Obilićev Venac street. The exhibition, which invites the audience to stand in the shoes of young people from both Kosovo* and Serbia, consists of video interviews conducted “in pairs”, as well as photos created and statements made within the scope of the cultural exchange camp of the same name that was organised in Kosovo* in September 2023 and saw young people attempt to identify common problems and experiences by examining the differences between them.

“The most important thing is how we see our neighbours,” said Ambassador Jan Braathu, head of the OSCE Mission to Serbia, in reference to the name and essence of the project.

Labyrinth of the ‘90s Exceeds Expectations Exhibition

An exhibition entitled “Labyrinth of the ‘90s”, representing the first step in a long-term initiative aimed at establishing a regional centre for reconciliation, education and future cooperation, ran for two and a half months at Belgrade’s Prostor Miljenko Dereta com-

munity centre and was seen by 2,000 visitors from various generations. This exhibition emerged as the fruit of two years of research, labour and cooperation among individuals, experts, activists and partner organisations from the countries of the former Yugoslavia that was aimed at developing an approach to the events of the 1990s that will encourage everyone to consider and prevent a reoccurrence of that horrific period.

The exhibition will be enriched and will next year head to Sarajevo, then, in 2025, it will appear in Zagreb, before moving on to Skopje and perhaps also Pristina and Podgorica, only to ultimately result in the establishing of the “Museum of the ‘90s”, as the project’s end goal.

CirkoBalkana Takes Place For the 11th Time Contemporary circus

The contemporary circus festival CirkoBalkana this year ran from 21st September to 7th October in a circus big top erected at the Silosi Belgrade centre. CirkoBalkan is a regional festival that was created in cooperation between Belgrade’s Cirkusfera and Zagreb’s Cirkorama and this autumn took place for the 11th time.

The festival’s programmes unfold throughout the year in both cities, which together bought a big top. The circus tent spends spring in Zagreb and autumn in Belgrade, while during the summer months it travels with circus artists to various festivals around the region.

This regional cooperation has opened the festival up to numerous new opportunities and provided greater visibility to the larger group of people who are engaged in certain art forms in these two countries that are well connected.

The connection and exchange of programmes ensures the sustainability of projects jointly implemented by Belgrade and Zagreb.

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MONTENEGRO

INTERVIEW

NINA DRAKIĆ

No Success Without T Great Effort

President of the Chamber of Commerce of Montenegro

In order for the countries of the region to utilise nearshoring opportunities, continuous work and commitment are needed from both the public and private sectors, together with the intensification of regional cooperation at all levels 120

CONNECTING THE REGION BUILDING BRIDGES

he topic of nearshoring has become relevant since the outbreak of the Covid-19 pandemic, but also following the start of the war in Ukraine. Events unfolding globally have highlighted the importance of flexibility and adaptability in modern supply chains, which is why ever more companies are considering ways to increase the resilience of their production processes through the diversifying and shortening of supply chains, but also increased reserves.

The economies of the Western Balkans are increasingly attracting companies from Western Europe, due in particular

to their geographical proximity, time zone, competitive labour costs, incentives for foreign investors, low living costs and wealth of natural resources.

In order to make Western Balkan countries even more attractive to potential nearshoring partners, it is necessary to work continuously to create the most favourable business environment possible, particularly by reducing administrative obstacles that hinder the establishing and running of a business, but also via additional tax breaks and subsidies for nearshoring partners.

In focusing on the creation of a high-quality and highly educated workforce, which is currently among the greatest inadequacies of the Montenegrin economy, essential prerequisites to take advantage of the potential of nearshoring opportunities include investing in education and training, but also modernising the education system as a whole. It would also be essential to continue investing in improving all types of infrastructure, transport infrastructure in particu-

vestors who recognise the opportunity to launch production for the markets of the EU and the region.

Geopolitical events have created new economic conditions worldwide. Changes are occurring right now and the Western Balkan econo-

Geopolitical events have created new economic conditions worldwide... and the Western Balkan economies shouldn’t miss out on the chance to take advantage of these changes lar, because lower transport costs are required for the development of production capacities.

From that aspect, geographical proximity to the European Union represents an important advantage of Western Balkan countries when it comes to nearshoring. Apart from European companies that are interested in establishing their own supply chains in the region, there are also in-

mies shouldn’t miss out on the chance provided by the global repositioning of economic relations. However, in order for the countries of the region to utilise nearshoring opportunities, continuous work and commitment are needed from both the public and private sectors, together with the intensification of regional cooperation at all levels, which would boost competitiveness and ensure greater economic

effects for the community as a whole.

Through the EU accession process, Western Balkan countries have obliged themselves to harmonise with European standards. The inclusion of Western Balkan countries in large supply chains could have a major positive im-

pact on this process. Specifically, in order to be included in global supply chains, Western Balkan countries must meet international technical standards and specifications that are aligned with European standards. This encourages them to improve their operations to ensure that they are competitive on the European market. This also leads to transfers of knowledge, technology and best practices. Integration can itself increase exports of products and services from Western Balkan countries to the European market, while cooperation with European partners can make companies from the region more aware of the importance and need to adopt and apply European standards, which is one of the prerequisites for increasing competitiveness. ∙

EXPORT

Integration can itself increase exports of products and services from Western Balkan countries to the European market.

HARMONISATION

EDUCATION

INFRASTRUCTURE

The inclusion of Western Balkan countries in large supply chains could have a major positive impact on the process of harmonising with European standards.

Focusing on a high-quality workforce, education, training and modernisation are crucial to taking advantage of Montenegro’s nearshoring potential.

Continuous investment in infrastructure, transport infrastructure in particular, is key to reducing transport costs and maintaining competitiveness.

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GRAPHICS

FDI stocks are among the highest in Europe Total inward FDI stock, % of GDP

Montenegro Serbia Kosovo Albania North Macedonia Bosnia and Herzegovina Central, East and Southeast Europe

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86.5% 83.0% 59.8% 57.9% 54.4% 38.3% 31.9% Source: wiiw 123

MONTENEGRO

OPINION

Love at Arm’s Length

Those shaping economic policy in Montenegro face the challenge of balancing foreign trade policies, promoting market openness with neighbouring countries, and safeguarding economic interests, particularly in vulnerable sectors NADA STOJANOVIĆ Journalist

espite the praise heaped on Montenegro, when the time comes to “add and subtract” the real balance of progress towards the European Union, it is debatable, and regional economic cooperation, which is declaratively espoused by the choir, often stumbles on political squabbles in the region.

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cooperation has always been among Montenegro’s priorities, which in terms of quantity participates actively in the work of more than 30 regional initiatives and cooperation platforms, ranging from the expert level to the highest political level. However, whether relations with the region are qualitatively ahead of, at the same level, or below relations with the EU and NATO is a question that remains and persists.

Corporate players from the region have already entered the Montenegrin market, making substantial ownership progress, especially in telecommunications, banking services, and retail chains In response to the simple question of what regional cooperation means from the Montenegrin point of view, the official position that’s been advocated actively by all recent governments is that “Montenegro shows commitment in continuity to good regional relations, in which we are a good neighbour to everyone”... The consolidating of regional economic 124

CONNECTING THE REGION BUILDING BRIDGES

The impression is that the region is loved almost “chorally”, but at the time when the Open Balkan initiative was launched, it caused tension and continuous conflict between Montenegro’s political actors. Opponents constantly highlighted possible rivalries and tension between different countries, as well as a distinct separation from the EU accession process, be-

cause that process must not “eclipse” Montenegro’s efforts to satisfy the conditions for EU accession, the country’s top foreign policy goal.

Furthermore, the country’s foreign trade balance doesn’t provide a strong argument to advocates of a more open region, given that Montenegro’s foreign trade deficit increased by a full 700 million euros in 2022, reaching 2.8 billion euros, which was equivalent to the state budget. Modest exports worth 700 million euros, in contrast to imports with a total value of 3.5 billion euros, demonstrate the economy’s clear dependence on imports, with all the populist discussion that draws out.

Foreign direct investments in Montenegro last year “surpassed” the one-billion-euro mark for the first time, but most investment is still linked to real estate.

And yet, the Montenegrin market is already open to the region’s corporate players, and in the lucrative fields of telecommunications, banking services and retail chains (trade) - the “region” has long since made significant (ownership) strides on the Montenegrin market. And there are no signif-

icant obstacles, at least on the most financially attractive territory, to the free movement of people, goods and capital – and capital somehow always seems to find its way to profitable sectors.

Looking to the future, Montenegro is clearly betting on the trump card of offering its tourist products to the region, and tourism is the country’s chief resource, so in this domain the openness of the region really suits Montenegro. In this sector, every Open Balkan, open Europe, open world initiative is more than desirable, and upscale tourists from the region are very welcome guests... Just as the international and regional hotel chains that have arrived in Montenegro and significantly elevated the level of service of the outdated hotel industry along the entire Montenegrin coast were extremely desirable.

However, one gets the impression that the country’s flimsy agriculture is already faltering, due to both its inefficiency and great openness, while it is clear that everyone tasked with shaping economic policy in this small country is confronted by the problem of striking the right balance, or of finding ways to carefully balance the country’s foreign trade policies and promote market openness and cooperation with neighbouring countries while simultaneously protecting its economic interests, including certain fragile sectors of the economy.

Decisions regarding customs systems and foreign trade policies have sometimes been made spontaneously and sometimes with great consideration, while they’ve sometimes simply been copied... Liberal economics was the mantra of the so-called Montenegrin school of economics, and over the past few decades the laissez-faire ap-

proach has been promoted as the only desirable approach.

The 30th August 2020 change of government in Montenegro seemed, at first glance, to spell the abandoning of that liberal economy forever, with specific social mediation, socially-oriented policies and state interventionism “raising their heads” and appeared to bring an end to any elements of the

the country’s most fragile industrial sectors, and particularly whether it’s helped at all when it comes to agriculture.

That’s why, in this simultaneously “liberated” and “illiberal” Montenegro, a local producer of yoghurt and cheese will view the open regional market that threatens their position with suspicion. The products of the

Montenegro pins its tourism future on regional openness, welcoming upscale tourists and international hotel chains for elevated coastal experiences

liberal economy. Some kind of Novo-Montenegrin “New Deal” seemed to have appeared on the scene, but things usually aren’t what they initially seem to be and Montenegro is a long way from being a utopia of social justice and it is unclear how much the new interventionism has helped

Conundrum The ‘Kravica’ brand’s cheaper products in Montenegro may reignite old tensions, making unbiased economic analysis ineffective in defending a widespread regional presence.

ECONOMY Modest exports worth 700 million euros, in contrast to imports with a total value of 3.5 billion euros, demonstrate the economy’s clear dependence on imports.

‘Kravica’ brand, which are a few cents cheaper than domestic alternatives on the Montenegrin retail market, will once again lead to a rise in old tensions – social, political and national – and any based economic analysis and honest evaluation of the inefficiency of domestic production won’t be very useful and won’t defend an unrestrained regional presence. And that’s because populism doesn’t disappear overnight and, as has been the case to date, the greater opening up of the market will be loved the most “at a distance”, with the old maxim “love in exchange for love, and cheese in exchange for money”. ∙ 125

NORTH MACEDONIA INTERVIEW

By Ljubica Gojgić

European Quality of Life At Home In order to provide for a better life and better living standards, we need growing economies and the improvement of democratic processes in our countries. We will only accomplish this through regional connectivity

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What do you consider as the biggest challenges in the region today? ― In realising the vision of democratically strong societies, the biggest challenges – alongside the maintaining of peace and security, as a path that leads to a prosperous future for the countries of the entire region – are economic development and investing in future generations.

As decision-makers, we have a responsibility to invest in better living conditions for future generations, in providing a European quality of life,

an-oriented societies with developed economies, where the rule of law and democracy will be at the highest level.

The Republic of North Macedonia is today positioned as a country that international organisations recognise for its constructive dialogue.

This comes as a result of the policy of pursuing the peaceful resolution of open issues. We are seen as a country that is ambitiously and steadfastly traversing the European integration path, recognised as a valued partner of the international community and

STEPS

We need bold steps and wise decisions to bring European life to our countries.

We are expected to make the following decisive step that will secure and guarantee our European future and bring positive change to the lives of all citizens, including the youth DIMITAR KOVAČEVSKI Prime Minister of North Macedonia

chieving economic recovery and development while preserving peace and strengthening stability are the greatest challenges confronting the Western Balkan region. The commitment and responsibility of local decision-makers in that process is important, as is the regional cooperation that’s stimulated by initiatives like the Berlin Process or the Open Balkan, says North Macedonian Prime Minister Dimitar Kovačevski in this interview for CorD’s Connecting the Region.

A

but here at home. The process ahead of us means making decisions that are not always easy, but that bring a better and brighter future that depends on all of us.

It is only through responsible, committed work that we be able to provide quality, sustainable long-term solutions through which we can transform our societies into healthy, Europe-

a factor of stability across the region.

We are expected to make the following decisive step that will secure and guarantee our European future and bring positive change to the lives of all citizens, including the youth. We therefore need bold steps and wise decisions to bring European life to our countries. Our citizens, our young people, expect this from us. ∙

Better Conditions for the Future As decision-makers, we have a responsibility to invest in better living conditions for future generations, in providing a European quality of life, but here at home. The process ahead of us means making decisions that are not always easy, but that bring a better and brighter future that depends on all of us.

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NORTH MACEDONIA

within the region, as well as with other countries. Furthermore, a reduction in the number of border crossings, physical inspections at borders and numerous non-tariff barriers, which consume time and funds for companies, is necessary. According to the World Bank’s 2023 Logistics Performance Index, which assesses infrastructure development, customs procedures and logistics, countries in the Western Balkans are ranked low (Serbia in 73rd place, Bosnia and Herzegovina 61 st , Montenegro 73 rd, Al-

The participation of Western Balkan trade in the total trade of the EU is only 1.4%, indicating that there is significant room to increase that share INTERVIEW

Simple Formula, Difficult Application In order to boost the attractiveness of the region to investors, we need infrastructure improvements and the removal of hurdles at border crossings and non-tariff barriers that consume both time and money

BRANKO AZESKI President of the Chamber of Commerce of North Macedonia

nsuring the attractiveness of countries for investment implies a good business environment and long-term security for investors, which requires political stability in the region, credible state institutions, adherence to the rule of law,

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CONNECTING THE REGION BUILDING BRIDGES

the protection of private property and encouragement of competition.

To increase the attractiveness of the region’s countries to investors and prompt them to transfer their operations to the Western Balkans, we require (in addition to the generally low taxes compared to other regions) infrastructure investments in an efficient and unimpeded transport system, which will provide connectivity

bania 97th and North Macedonia 57th among 139 countries), and this needs to be addressed.

Demographic shifts due to reduced population growth and the emigration of young and educated people from the region are reflected in a shortage of workers with appropriate skills for companies in the region. It is therefore necessary to increase labour mobility in the Western Balkans and ease the obtaining of work permits, as well as ensuring the mutual recognition of professional qualifications.

The free movement of goods and services, capital and people within the Western Balkans can help countries overcome the limitations created by poor infrastructure, inefficient policies, geographical affiliation and demographic changes, rendering the region more attractive to investors and encouraging them to transfer their operations to this region.

For Western Balkan countries, the EU is the leading trading partner, accounting for two-thirds (65.8%) of total trade in 2022, when the region’s to-

tal trade with the EU reached historically high levels of €85 billion. This trade expansion largely favours Western Balkan countries. Over the past decade, the region increased its exports to the EU by 217%, compared to an increase in imports from the EU to the region by 125%. These figures indicate that our companies are penetrating the European market, which implies the adoption of European standards by certain companies and an improvement in performance, but also continuous coping with high pressure from the competition.

However, the participation of Western Balkan trade in the total trade of the EU is only 1.4%, indicating that there is significant room to increase

In order to enhance the presence of Western Balkan companies on the European market, we need incentives, expertise, financial support and access to EU structural funds the share. In order to achieve this goal, in addition to preferential trade that allows exports to the EU without duties and quota restrictions (with some exceptions, which all Western Balkan countries have had since 2000), it is important to meet European standards, especially relating to compliance with and acceptance of industrial products, veterinary, sanitary and phytosanitary standards for products

of plant and animal origin, as well as those set by the European Green Deal and the Green Agenda for the Western Balkans. In order to achieve a greater presence of Western Balkan companies on the European market and their inclusion in supply chains, incentives in the form of expertise and financial support for meeting standards are necessary and infer a need for access to EU structural funds. ∙

DEMOGRAPHY

SHORTCUTS

STRENGTH

Demographic shifts resulting from reduced population growth and the emigration of young people from the region are reflected in a shortage of workers with appropriate skills.

Free movement within the Western Balkans can mitigate infrastructure, policy, geographical and demographic constraints, thereby enhancing the region’s appeal to investors.

Our region has boosted its exports to the EU significantly over the past decade, highlighting the expanding presence of our companies on the European market.

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OPINION

New Value Proposition Required In order for Western Balkan countries to maximise the benefits of nearshoring trends in the postCovid-19 period and amidst global restructuring, they need to shift their economic narrative by moving beyond being seen solely as low-cost FDI destinations and rebranding themselves as high-quality investment options TATJANA SHTERJOVA DUSHKOVSKA Secretary General of the Western Balkans 6 Chamber Investment Forum (WB6CIF)

ver recent decades, geographical position and free access to key markets, combined with low wages and favourable tax systems and investment incentives, have been among the key characteristics of the Western Balkan economies when it comes to attracting FDI, resulting in the region attracting total FDI inflows amounting to 8.8 billion euros. “But that is still far below the region’s potential,” says Tatjana Shterjova Dushkovska, Secretary General of the Western Balkans 6 Chamber Investment Forum.

In order to benefit fully from the nearshoring trends prompted by the disruptions of the Covid-19 pandemic and intensified by the ongoing restructuring of the global scene, the economies of the Western Balkans also need to change the narratives around their economies and move a step further –

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IN PERCENTAGES

The EU is the Western Balkans’ largest trading partner and investor, accounting for more than 70% of the region’s total trade.

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from being seen as FDI destinations that offer low costs for investors, to destinations that offer high quality, suggests Shterjova Dushkovska. “This relates, amongst other things, to the further work that each of the economies will have to dedicate to overcoming some of the deficiencies of the systems at present – including a complex legal and regulatory framework, a low level of digital transformation in some key areas, the quality of overall transport infrastructure and labour market shortages,” says our interlocutor.

Regional economic integration can certainly play a role in enhancing the region’s attractiveness to potential investors – setting up a shared area securing the free movement of goods, services, people and capital would be beneficial to both foreign investors – enabling them to source their components regionally – and local companies, as it would enable them to cooperate with foreign companies. Indeed, explains Shterjova Dushkovska, one of the key reasons behind the idea of working to establish a Common Regional Market for the Western Balkans,

which was set in motion with the 2020 adoption of the Action Plan within the framework of the Berlin Process, was to also contribute to placing the region on the map for global investors seeking to reduce the distance to EU markets and diversify their suppliers, thereby creating jobs, offering greater choices at lower prices for consumers and enabling people to work throughout the region.

However, benefiting from nearshoring doesn’t just mean attracting more foreign companies. Rather it also means local companies gaining the maximum from the presence of these companies in their countries, by joining their supply chains, but also through different forms of cooperation that extend beyond this – through exchanges of knowledge and information, the joint development of products and the establishing of regional R&D hubs. Improving cooperation between domestic and foreign companies has the potential to ensure positive technological spillovers and supplier linkages with domestic companies, benefiting local firms. This re-

FOUNDATION

ALIGNMENT

COLLABORATION

The establishment of the Common Regional Market is itself a steppingstone for companies from the WB6 region to better integrate into European value chains.

By adopting the EU acquis, the region closes the gap on the regulatory framework of the Single Market, while the countries also align with one another.

Boosting collaboration between local and foreign companies can create positive technological spillovers and stronger supplier linkages with domestic firms.

quires further work on building the capacities of regional companies, which is precisely aligned with one of the key activities being conducted at the Western Balkans 6 Chamber Investment Forum with the implementation of the Regional Supplier Development Programme aimed at ensuring the participation of SMEs in regional and multinational supply chains and establishing new regional partnerships between WB6 companies.

These activities include mapping suppliers from the WB6 region in selected industries, developing databases aimed at providing essential information to SMEs, thus easing their access to markets, providing technical assistance to SMEs, thus easing their access to finances and integration into global supply chains, the staging of networking events for SMEs from the region (joint participation in fairs and business events, investment conferences) and events aimed at increasing the capacities of regional SMEs (info days and trainings), all aimed at supporting the integration of WB6 SMEs into regional and global supply chains. Under the scope of the Regional Supplier Development programme, 2,600 SMEs from the WB6 countries have been reached with trade promotion activities, with 950 SMEs receiving individually tailored support in seeking business and funding opportunities across borders.

To what extent does the inclusion of WB countries in major supply chains impact on the process of adopting European standards? ― The EU is the Western Balkans’ largest trading partner and investor, accounting for more than 70% of the region’s total trade – this naturally means that the standards and practices of global companies prolifer-

ate down the supply chain, including local companies from the region.

In fact, the challenge of being included in global supply chains requires local companies to transform into modern and serious companies based on high standards, quality assurances and strict procedures defined and implemented.

basis by the companies themselves, in expanding their cooperation with their EU partners.

In order to contribute to this goal, the European Commission and the Western Balkans 6 Chamber Investment Forum established the ‘WB6EU Business Platform’, as a forum that brings together representatives of the

Benefiting from nearshoring implies more than attracting foreign companies; it’s also about local companies maximising their opportunities by integrating into the supply chains of these foreign companies

The establishment of the Common Regional Market is itself a steppingstone for companies from the WB6 region to better integrate into European value chains and strengthen their competitiveness on the European and global marketplace. By adopting the EU acquis, the region closes the gap on the regulatory framework of the Single Market, while the countries also align with one another, and this is also achieved indirectly on a daily

Western Balkans’ business community and the European Commission to discuss challenges and opportunities for the region’s private sector. Such a dialogue helps the business community to better understand the European Union, its laws and policies, whilst also helping the community prepare for integration into the Single Market by presenting concrete challenges and proposing solutions directly from WB6 companies to decision makers. ∙ 131

GRAPHICS

The EU is the main source of FDI Albania EU 56% United States 2% Other 42% China 0%

Bosnia and Herzegovina

Kosovo EU 60% China 1% Russia 2% Other 37% USA 0%

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EU 39% USA 7% Other 54%

Montenegro EU 27% China 1% Russia 14% USA 3% Other 44%

North Macedonia

Serbia EU 65%

EU 63%

China 2%

China 9%

Russia 0%

Russia 6%

USA 2%

USA 2%

Other 31%

Other 20%

Source: wiiw 133

NORTH MACEDONIA

OPINION

Great, but Not (yet) Working

North Macedonians have embraced the concept of regional reunification, primarily centred around economic aspects, but there has yet to be any substantial progress when it comes to easing transport, eliminating trade barriers and enabling the free movement of people DEJAN AZESKI Journalist

orth Macedonians, as irredeemable Yugoslavs, welcomed the idea of the region’s reunification (albeit only on an economic basis) with open arms. Although the majority of the population and representatives of the business elite hardly differentiate between the Berlin Process and the Open Balkan initiative, both ideas have received full support from literally all possible factors. For the first time, everyone –

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borders. Only a few fringe extremists prevent a hundred percent consensus around this idea.

And really, at least initially, it all seems logical, particularly from an economic perspective. It has been proven throughout many years of struggle and strife that our economy and our products aren’t as compatible and competitive anywhere else as they are in the Balkan region. If the most important elements ensuring the success of a product, apart from quality, are the costs of transporting and marketing (recognisability) that product, then where could there possibly be

Neither Albania nor Bosnia-Herzegovina, and certainly not Montenegro, figure among North Macedonia’s top 20 export-import partners, and yet the region’s reunification matters very much elites and ordinary workers, left and right, ethnic Macedonians and Albanians – has united around an external political idea, such that it has received support even from the youngest, who immediately highlighted Belgrade’s raft venues and Albania’s sand beaches as gems of a Balkans without 134

CONNECTING THE REGION BUILDING BRIDGES

cheaper transport and greater recognition of Macedonian products than here in the Balkans? And this was genuinely recognised by everyone, and led to the Open Balkan zone really finding open doors in North Macedonia, at least as far as the people and business leaders are concerned.

However, the work that was launched by politicians was also undermined by them, so despite a plethora of announcements nothing has to date been accomplished in practice, with the exception of some slight acceleration and easing of procedures at border crossings, as well as the huge assistance we received from Serbia during the Covid crisis.

In order to illustrate just how much the Western Balkan region means to the economy of North Macedonia, it is best to highlight the bare numbers.

Over the first eight months of the year, the Republic of North Macedonia exported goods worth 726 million dollars to these five countries, representing growth of 7% compared to the same period of 2022. At the same time, products with a total value of 709 million dollars were imported from the same group of countries, which represents a reduction of 6.5% compared to last year, which is a positive for North Macedonia as it means that there is now a surplus in economic cooperation with the Western Balkans. Importantly, the exchange between North Macedonia and the Western Balkans as a whole can be expected to reach a value of close to 1.7 billion dollars, which equates to almost a quarter of the ten

billion dollars in trade exchange that North Macedonia should achieve with the 27 EU member states by year’s end.

The problem is that, of this total amount, as much as 757 million dollars (more than half) belongs to the economic exchange with Serbia, which is our fifth largest trading partner statistically, though it is de facto the largest, because cooperation with the first four countries is almost exclusively conducted through foreign investments.

Statistically, Kosovo* also figures separately among our country’s ten largest trading partners, with exchanges worth over 350 million dollars in the first eight months of the year alone, which is a problem in itself, given that Serbia (including Kosovo*) accounts for almost 75% of our trade exchange with all the countries of the Western Balkans.

Neither Albania nor Bosnia-Herzegovina, and certainly not Montenegro, figure among North Macedonia’s top 20 export-import partners.

As a journalist who’s been addressing this topic actively for almost fifteen years and has interviewed and talked to hundreds of businessmen from the entire region about this topic, I can responsibly convey their view that a practicable strategy for regional unification has neither existed nor exists.

Businesspeople are simply left to their own devices if a strategy is not tangibly present beyond the several protocols of understanding jointly signed at several summits of Western Balkan leaders.

It is true that waiting times for haulage vehicles have reduced from weeks to days over the years, but the queues and the borders themselves (which it was promised would be gone) remain in place. There is still no visible pro-

gress on the abolition of work permits between the countries of the Western Balkans – a step that was expected to be applied across the board and to at least partially alleviate the need to import labour from the Middle East.

hour due to railway safety concerns.

There are no regular aviation routes connecting the country with Montenegro and Bosnia-Herzegovina. Worst of all, the Moravian Vardar valley and the Danube-Morava-Vardar canal sys-

Of the country’s total trade exchange, more than half is generated through the economic exchange with Serbia, which is our fifth largest trading partner statistically, though it is de facto the largest

Additionally, and shamefully, North Macedonia has not had a railway connection with neighbouring Albania for almost two hundred years, or ever, since the construction of the first railway, while trains traversing the country along Corridor X in the direction of Serbia are limited to 20 km per

tem – representing our country’s only geostrategic advantage – serves as a joke between politicians when it is mentioned once every 20 years.

And this best testifies to the real, and not declarative, attitude of politicians towards regional economic cooperation. ∙

BORDERS

STRATEGY

CHALLENGE

It is true that waiting times for haulage vehicles have reduced from weeks to days over the years, but the queues and the borders themselves (which it was promised would be gone) remain in place.

A practical strategy for regional unification is lacking, which leaves businesspeople to navigate the situation for themselves, in the absence of a practicable approach.

North Macedonia lacks the transport routes that would reconnect it with the rest of the region. That is one of the main challenges confronting the enacting of the Open Balkan initiative.

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SERBIA

By Ljubica Gojgić

INTERVIEW

Regional Cooperation is a Top Priority There is an intricate link between a resilient, stable nation and a well-connected region, given the potential for shared prosperity and stability when neighbouring countries work together ANA BRNABIĆ Prime Minister of Serbia

ccelerating economic growth, advancing towards European Union membership and the struggle to reverse adverse demographic trends are the biggest challenges facing Serbia, says Serbian PM Ana Brnabić in this interview for Connecting the Region, before noting that regional stability and good cooperation at all levels, from politics to tourism, are among the key links in the process.

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What do you consider to be today’s biggest challenges in the region? ― One of the primary challenges we face today, as a region, is the need not only for significant economic growth, but economic growth that comes quickly and sustainably. This is a very difficult balance to achieve, but we recognise how important it is if we want to ensure Serbia is not only growing today, but also in the years to come, for the good of everyone. In order to successfully create such rapid growth while ensuring it lasts, we

need not only resources and will, but regional cooperation and stability that ensure we have partners to build a future with, and a stable environment in which we can grow together.

The more we grow our economies, the more stable we become as a region, and vice versa.

Aside from the economic challenges, there is also the EU accession process, which we don’t consider as being as fast and efficient as we would have hoped, despite our efforts. For example, the European Commission has rec-

ommended the opening of Cluster 3 with Serbia three times in a row in its annual report – meaning that Serbia has met all the conditions – yet this still hasn’t happened. In addition to these efforts, Serbia remains committed to rule of law reforms, especially as they relate to human rights and the protection of vulnerable groups, as well as the prohibiting of all forms of discrimination.

Demographic Issues remain one of the biggest challenges, not only for our region, but for Europe as a whole.

Serbia has been working hard to overcome this issue, and we have luckily managed to reverse the brain drain and stop the emigration of younger generations. Population analyses and data for last year show our progress: compared to 2021, the number of newborn children in Serbia rose by 520; we additionally saw an increase of 600 in the number of firstborn children in 2022 compared to 2021. This growth in the number of firstborn children is particularly important for us, because there has been a reduction in the number of firstborns in Serbia for decades (since the ‘80s), which reflects the smaller number of women giving birth in each generation. This increase in the number of firstborn children testifies to the success we have had in implementing financial measures as part of our population policy. It also reflects the fact that fewer young people are leaving the country permanently – they are instead opting to stay at home and start families because they see their future here.

How would you evaluate the existing level of regional cooperation, and how could it be advanced? ― Engagement in regional cooperation is one of our top priorities, as it has long been considered a linchpin for success. There is an intricate link between a resilient, stable nation and a well-connected region, given the potential for shared prosperity and stability when neighbouring countries work together. This is part of our motivation for collaborating

with our neighbours. Given this, we will remain dedicated and will always pay special attention to developing all types of regional cooperation where there is space and will to leverage our economic potential and contribute to the stability and improvement of relations in the region.

A clear improvement of regional cooperation can best be achieved through regional connectivity, which is a cornerstone for the fostering of economic, political and social development. Firstly, it significantly boosts trade and economic growth by providing businesses with improved access to regional and global markets. Enhanced con-

ation, enhancing the livelihoods of the local population.

Connectivity is not just about economic benefits. It also contributes to the creative, innovative and technology sectors and to the building of a cohesive, vibrant and sustainable region. For example, it facilitates the exchange of knowledge, technology and ideas between neighbours within a region. This cross-fertilisation of innovation can drive economic development and technological advancement. Socially, this connectivity fosters cultural exchange, promoting greater understanding of and appreciation for diverse cultures and traditions.

TOP PRIORITIES

regional collaboration has wide-ranging and deeply transformative potential for the economic, political and social development of our country and our neighbours, which is why it will remain among our top priorities.

Demographic Issues remain one of the biggest challenges, not only for our region, but for Europe as a whole. Serbia has been working hard to overcome this issue, and we have luckily managed to reverse the brain drain and stop the emigration of younger generations nectivity often involves the development of essential infrastructure, such as roads, railways and ports, which not only facilitates the movement of goods, services and people, but also contributes to overall economic efficiency. Moreover, regional connectivity attracts investment by creating an environment more conducive and attractive for businesses. Successful connectivity projects involve close collaboration with neighbours, which builds diplomatic and political ties in the process and contributes to regional stability and conflict prevention.

Finally, the creation of new industries and services as a result of improved connectivity leads to job cre-

The tourism industry also benefits from improved connectivity, attracting visitors and contributing to local economies. From an environmental perspective, well-planned connectivity can lead to more efficient transport systems, reducing the environmental impact and promoting sustainable development.

As we can see, regional collaboration has wide-ranging and deeply transformative potential for the economic, political and social development of our country and our neighbours, which is why it will remain among our top priorities. We will also continue to highlight the key drivers of successful regional efforts: connectivity, trust and open cooperation. ∙

GROWTH BRINGS STABILITY In order to successfully create rapid growth and ensure it lasts, we need not only resources and will, but also regional cooperation and stability that ensure we have partners to build a future with and a stable environment in which to grow together. The more we grow our economies, the more stable we become as a region, and vice versa.

137

SERBIA

INTERVIEW

Overcoming Barriers and Embracing Opportunities Investors in the Western Balkans can access a 20-million-strong consumer base and cross-border value chain prospects, thus bolstering the region’s economic attractiveness and EU trade relations SLOBODAN CVETKOVIĆ

Minister of Economy of Serbia

he Western Balkan region has certainly made significant progress on the deepening of regional integration over recent years, but we still face several barriers that hinder economic cooperation. One of the primary challenges is the historical legacy of political tensions and regulatory fragmentation. These issues can sometimes overshadow economic cooperation, making it more difficult to build trust and partnerships ~ says, Serbian Economy Minister Slobodan Cvetković, with whom we discussed the challenges and opportunities of regional economic cooperation and the crucial role of EU support in strengthening ties between the Western Balkans and the European market.

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EU support can play a pivotal role in strengthening links between the Western Balkan nations and the European market Minister Cvetković believes that the aforementioned barriers can be overcome through joint efforts. “The commitment to the European integration process of all Western Balkan nations serves as a unifying force. By focusing on common goals and shared values, we can work together to address all issues and build a brighter economic future for our region,” explains our interlocutor.

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CONNECTING THE REGION BUILDING BRIDGES

In order to further promote economic cooperation, the Western Balkan countries need to continue improving their regulatory environment, reducing trade barriers and enhancing the ease of doing business across the region. Collaboration on infrastruc-

ture development, energy projects and the harmonising of regulations can make a significant difference in overcoming these challenges and boosting economic growth.

This includes implementing agreements and initiatives like the Region-

1

2

3

BARRIERS

SUPPORT

COLLABORATION

Political tensions and regulatory fragmentation sometimes overshadow economic cooperation, but I firmly believe that these barriers can be overcome through joint efforts.

al Economic Area and CEFTA, which aim of developing the Western Balkans into an area where not only goods and services can move without obstacles, but also investments and skilled workers, adds Cvetković.

“This scales up the market available to potential investors in the region: access to almost 20 million consumers from a single base and opportunities to create value chains across borders, which also improves the Western Balkan’s economic attractiveness by taking advantage of trade relations with the EU.” EU support is invaluable when it comes to strengthening links between the Western Balkan nations (WB6) and the European market. By providing its political, technical and financial help, the EU plays a pivotal role in our efforts to achieve this objective.

There are several domains where this support can be particularly beneficial, and I would firstly mention the transport network. Investment in the improvement of transport infrastructure is essential. The EU’s support for modernising road and rail networks, as well as enhancing connectivity through initiatives like the Berlin Process, can significantly boost trade and regional integration. Furthermore, access to European funds – especially through programmes like IPA (Instrument for Pre-Accession Assistance) – is crucial to the development of the WB6 nations. These funds can be directed towards various projects, including infrastructure, environmental sustainability and the development of small and medium-sized enterprises (SMEs). Another important area relates to energy and the environment. Collaboration on energy projects, such as building interconnections and improving energy efficien-

EU support in enhancing digital infrastructure and fostering a digital economy is essential to increased regional competitiveness and innovation.

cy, can enhance energy security and promote sustainable development.

Moreover, support for environmental protection and in the meeting of EU standards is essential for accession, particularly in green energy, innovation and technology sectors.

Furthermore, the digital sector offers substantial growth and innovation potential. EU support to enhance digital infrastructure and foster a digital economy is critical to our region’s competitiveness.

I would also like to stress the important of economic reforms, where the EU can provide technical assistance and expertise in implementing economic reforms, including those that improve the business environment and enhance regulatory frameworks. This can further strengthen our ties with the EU and create an environment more conducive to trade and investment.

One also has to mention education

By focusing on common goals and shared values, we can work together to address all issues and build a brighter economic future for our region.

and research, where collaboration on education and research programmes, as well as facilitating academic and student exchanges, can promote innovation and the development of human capital.

EU support across these domains can play a pivotal role in strengthening the links between the Western Bal-

Collaborative efforts aimed at enhancing the regulatory environment and reducing trade barriers are key to stimulating economic growth and regional integration kan nations and the European market, reiterates Cvetković, concluding that this “will not only help us achieve economic convergence, but also bring greater political stability and prosperity to the region”.∙

139

SERBIA

INTERVIEW

Let’s Be Better for Ourselves and Others Joining the European common market would render our region more attractive in the eyes of both investors and supply chain buyers, and would create new opportunities for our economies to grow faster and – according to the estimates of World Bank analysts – by an additional six per cent MARKO ČADEŽ President of the Chamber of Commerce & Industry of Serbia, CCIS

f the first questions of potential investors arriving in this region that was considered a destination offering reduced business costs and generous incentives until just a few years ago were mainly “do you have people who could work in our factories and how is your infrastructure?”,

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“European companies’ need to relocate their operations closer to home and find suppliers and investment destinations in the neighbourhood has brought the Western Balkans into their focus and created huge opportunities for the region, but circumstances globally, world market disruptions and new trends in business have also presented new requirements for states, business associations and companies that relate – to put it as succinctly as possible – to sustainability

It is crucial that all six small economies work together, through mutual cooperation and connection, in terms of both infrastructure and business, to overcome limitations and become better for ourselves and others while supply chain buyers would assess, apart from the price, the ability of suppliers to deliver high-quality products, on time and in sufficient quantities, the list of expectations is today much longer.

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CONNECTING THE REGION BUILDING BRIDGES

across the entire supply chain,” explains Marko Čadež, president of the Chamber of Commerce & Industry of Serbian (CCIS).

“Without undermining the importance of what each of us does in our

own backyard to satisfy the new expectations of buyers and investors, it is crucial that all six small economies work together, through mutual cooperation and connection, in terms of both infrastructure and business, to remove common barriers, overcome the limitations of our small, fragmented markets and become better for ourselves and others,” considers our interlocutor.

The CCIS president believes that the countries of the region need to build a larger common regional market of almost 20 million consumers that will function according to the same principles and freedoms of the European Economic Area and will prove more stimulating to both local and European companies that already operate here and more attractive to future investors from around the world.

The vision of such a market implies fewer barriers and costs and the greatest possible freedom in terms of movements of people, goods, services and capital. Doing business on

such a market would be more efficient; road haulage vehicles carrying goods would travel without stopping and spending hours waiting at border crossings, while the mutual recognition of qualifications and exchanges of experts and workers would be possible without excessive bureaucracy. The vision of such a region implies doing business according to the same rules, which have been harmonised mutually and in accordance with EU standards, and based on the principles of the new digital and green economies.

“It is equally important that we simultaneously accelerate European integration. The business community of the Western Balkans insists that the entire region together, all six economies, in dialogue with Brussels-based institutions, reaches a new model or framework that will provide us – even before gaining full membership – with the four freedoms [governing the movement of goods, persons, services and capital] and the complete opening up of the single European market to companies and products from this region, providing them with the same treatment as EU companies,” says Čadež. “That isn’t something unprecedented; that process could be completed in two years, based, for example, on the example of the successful model of the Agreement on the European Economic Area (EEA), which brings together EU and EFTA member states in a single market.”

Our interlocutor insists that we have no time to waste; that this is a prerequisite to ensure the competitiveness of our companies and the survival of our economies and businesses.

“It is important that we enter the single market as soon as possible, remove barriers to trade with the EU, enable the free flow of people, goods, services and capital, but also that we secure

access to European funds not currently available to us, thus receiving more funding for the energy and green transitions, for infrastructure and for new technologies.”

According to Čadež, it is vital for companies from the region to become part of European supply chains. “Local companies thereby not only open a channel to send their products to market, but also raise their capacities, develop themselves, advance and improve the quality of their products and processes, harmonise their operations

and Governance) standards, including due diligence, non-financial reporting, the Carbon Border Adjustment Mechanism, amended EU Taxonomy etc.” notes our interlocutor. “The countdown has already begun, and if there are some requirements that local companies don’t have to fulfil immediately, they will be knocking on their door as early as tomorrow. They won’t only have to respond to them, but also ensure compliance with them down their supply chains – transferring them to their smaller supplier

CHANGES

The economies of the Western Balkans need to change the narratives around their economies and move a step further.

Entering large supply chains requires significant domestic investments in terms of the applying of innovations and new technologies that are essential for satisfying the standards of such chains with new regulations on the markets where they operate, in order to remain in those arrangements for as long as possible and to contract new jobs.”

One of the key conditions for establishing cooperation to date has been the applying of relevant international or European standards for management systems, as well as an array of technical specification standards that are widely understood and ensure the quality and safety of products. “In recent times, through negotiation processes or during the implementation of contracted arrangements, our companies have already been confronted by new standards that emerge from the increasingly stringent European and national regulations of the home countries of their customers or partners and which relate to an entire body of issues connected to environmental protection and sustainable corporate business, such as the CRSD (Corporate Sustainability Reporting Directive) and ESG (Environmental, Social

companies. That is also a great challenge and responsibility for chambers of commerce - to take on the key role of being allies to their members in green transformation processes,” explains Čadež. ∙

RESPONSIBILITY

ROLE MODEL

FREEDOMS

Taking on the key role of being allies to members in green transformation processes is also a great challenge and responsibility for chambers of commerce.

The example for us to emulate is the successful model of the Agreement on the European Economic Area (EEA), which brings together EU and EFTA member states in a single market.

It is important that we remove barriers to trade with the EU as soon as possible, enabling the free flow of people, goods, services and capital, and that we secure access to European funds not currently available to us.

141

GRAPHICS

Rail networks are poorer than in the EU, with big differences across countries Railway density, km of lines per 1000 sq. km

EU Montenegro Kosovo North Macedonia Serbia Albania Railway density, total length of lines operated (km) per 1000 km2 by Country and Year

142

2011

2012

2013

2014

2015

Albania

14

14

12

12

13

Montenegro

..

..

..

..

..

Bosnia and Herzegovina

20

20

20

20

20

North Macedonia

27

27

27

27

27

Serbia

43

43

43

43

43

France

55

55

55

53

53

CONNECTING THE REGION BUILDING BRIDGES

49 38 27 20 18 8

2016

2017

2018

2019

2020

2021

2022

12

12

12

6

8

8

8

18

18

18

18

18

18

18

20

20

20

20

20

20

20

27

27

27

27

27

27

27

43

43

..

43

38

..

38

49

51

50

50

49

49

49

Source: UNECE Transport Division 143

SERBIA

OPINION

Wholeheartedly for the Region

For Serbia, as the largest economy of the Western Balkans, the creation of a regional market that will function according to the principles and freedoms that characterise the European economic space is an important step on the road to joining the EU, and not a substitute

he eight economies of this region – six from the Western Balkans, plus Slovenia and Croatia – that have a combined population of 23 million inhabitants, together exported worldwide goods worth 141.5 billion euros last year, almost half of which actually represents Slovenia’s export balance, or more

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than 80 per cent of the export performance of three countries – Slovenia, Serbia and Croatia. If we reduce the region to just the Western Balkans, this export result falls dramatically – to just 50.8 billion euros, with Serbian exports accounting for more than 50 per cent.

At the same time, the five Nordic

Among the almost 20,000 companies under majority foreign ownership that operate in Serbia today, more than 4,000 come from the economies of the region, with half of them being Slovenian and Croatian 144

CONNECTING THE REGION BUILDING BRIDGES

countries – Denmark, Iceland, Norway, Finland and Sweden – with a combined population that’s not much higher, at 27 million inhabitants, recorded exports almost five times higher: 658 billion euros and a combined GDP seven times higher than the eight economies of Southeast Europe, or exports and GDP that are 1314 times than those of the Western Balkan economies.

Just this one comparison with the Nordic region, as our region’s most often mentioned role model, provides perhaps the clearest answer to the question of why we need regional cooperation. And that’s valid no matter where you define its boundaries and regardless of how you call it – Southeast Europe, the territory of the former Yugoslavia, the Western Balkans, with or without Slovenia and Croatia.

In tailoring its new Growth Plan for the Western Balkans, the European Commission calculated that more solid regional integration through the building of a common market would bring additional growth of 10 per cent to the Western Balkan economies. And for the first time, in an official document, it offered the Western Balkans – admittedly with expected conditions – something that the local business community has been insisting on for years in communication with Brussels: the possibility of accessing the European single market even before the Western Balkan economies gain formal membership in the EU. Somehow at the same time, in separate

calculations and using specific examples, the World Bank proved the benefits of lifting restrictions on the free movement of people, goods, services and capital within the Western Balkans and between the Western Balkans and the EU, not only for the Western Balkan economies, but also for neighbouring EU countries.

Businesspeople from this region, whether they hail from existing EU member states or candidate countries, have long been clear that there can be no more important job for the politicians and governments of the region than strengthening regional cooperation, and removing obstacles to facilitate business operations and connections, and to increase trade and investments. And here the crucial question for all the small national economies of this region isn’t how to sell as much as possible to one another, and even less so whose side will be left with a deficit or surplus of a few tens of millions of euros, but rather the crucial question is how to develop higher forms of cooperation; how to cluster companies, and their offer, references and free capital, in order to jointly produce and appear on third markets, to create regional players that are competitive around the world. And to thereby seriously boost the export performances and economic capacities of each country individually and the region as a whole; and to entice new investors from around the world, for whom it matters whether they’re arriving on a market with fifty, a hundred or five hundred thousand companies, or with six, 11 or 20 million consumers.

This will also crucially determine the extent to which the region will be able to take advantage of the new opportunity created with nearshoring processes – how many local companies will join the supply chains of international corporations that have been recalibrated

in recent years and how many Western European companies will opt to relocate their business operations from more distant destinations to our region.

From the perspective of Serbia, as the Western Balkans’ largest economy, speeding up regional integration and the construction of a common market that functions according to the same principles and freedoms as the European economic area has never been in question. And that isn’t as a replacement for joining the EU, but rather as an important step on the road to the EU. It is certain that the government in Belgrade, like all current and previous governments around the region, could and can be criticised, but there are two facts that are indisputable.

gration, without any of the hidden intentions sometimes attributed to its moves. Led purely by sound economic logic and the interests of the economy, it initiated new ways to internally accelerate regional cooperation and the construction of a common market itself, when the existing, externally-coordinated models failed to yield the expected results.

Regardless of how those initiatives were called, officially or colloquially – “Mini Schengen”, “CEFTA plus”, “New Deal for the region” or “Open Balkan” – them remained essentially unchanged and reflected the needs of companies from all six economies, which are supported publicly by Slovenian and Croatian businesspeople operating in the

Serbia was led purely by sound economic logic and the interests of the economy in initiating new ways to internally accelerate regional cooperation and the construction of a common market itself, when the existing, externally-coordinated models failed to yield the expected results The first fact is that the Serbian market was fully liberalised back in the early 2000s, which was long the subject of internal wrangling and turned out to be a good move, and that Serbia also opened its doors wide to products, companies and investments from the region before others, and that it did so at a time when only the harshest messages were being exchanged at the political level. Among the almost 20,000 companies under majority foreign ownership that operate in Serbia today, more than 4,000 come from the economies of the region, with half of them being Slovenian and Croatian.

The second fact is that Serbia entered into and remained wholeheartedly in the processes of regional inte-

Western Balkans. That’s because every company is interested in operating on a larger common market with more consumers, lower costs and fewer barriers to the free movement of people, goods, services and capital; in haulage vehicles packed with their goods travelling through the region without stopping and having to wait for hours in columns many kilometres long at EU entry points; in being able to hire experts and workers from other countries without excessive red tape; in the same rules applying throughout the region, harmonised mutually and with EU standards.

Such an environment has no room for fear that someone will benefit more or less, and will particularly benefit at the expense of others. ∙

Common interest The building of a common market – regardless of whether or not some politicians want to admit it – is first and foremost an economic project, one with equal opportunities for all those who contribute to it and do business on it, tailored to the needs of business leaders from Kosovo, Montenegro and Bosnia and Herzegovina, but also those from Serbia, Albania and North Macedonia. And that is also in the interest of companies from the EU that operate and produce on this market, that sell their goods on it, export from it and generate profits through it.

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Fairs Beyond Borders 90th Agricultural Fair in Novi Sad: Over 1,100 Exhibitors from 26 Countries

24th Economy Fair Bosnia and Herzegovina

Serbia

years. This year, it showcased 90 exhibitors from 12 countries across eight pavilions, covering more than 18,000 square meters of the Zagreb Fairground. The fair included major events like “Ambienta”, “ArhiBau.hr”, and “Zagreb Design Week”, focusing on architecture, design, furniture, and the HoReCa sector.

The city of Novi Sad recently hosted the grand 90th International Agricultural Fair from 20th to 26th May, drawing an impressive crowd of 125,000 visitors. This year’s fair was not just about traditional agricultural machinery and food industry equipment but also featured a variety of exhibitions including a national livestock show, a genetic potential exhibition, and displays of organic products. A highlight was the “Serbian Quality” geographical indication products and craft beers. The fair boasted over 1,100 exhibitors from 26 countries, including 14 collective exhibitions from nations such as Italy, Spain, China, and Russia. This event marked a century of the Novi Sad Fair’s existence, propelling it into its second century.

50th International Furniture and Interior Design Fair

33rd Alpe-Adria Tourism Fair: Promoting Active Holidays Slovenia

Ljubljana hosted the 33rd Alpe-Adria Tourism Fair from 15th to 18th February, with more than 300 exhibitors from various European countries. This fair, a key event in the Slovenian capital, specialised in active tourism, including camping, caravanning, and sustainable tourism. The fair also included the GASTexpo, showcasing over 100 HoReCa exhibitors. This year, the focus was on green, active outdoor tourism, with an emphasis on sustainability.

The Vojvodina Tourist Organisation from Serbia highlighted the region’s potential in active vacations and cycle tourism.

Croatia

Zagreb recently celebrated the 50th anniversary of the “Ambienta” International Furniture, Interior Design, and Allied Industries Fair. Held from 26th September to 1st October, the fair has become synonymous with furniture, tradition, and home warmth over the 146

The 24th International Economy Fair – Mostar 2023, held from 2nd to 6th May, saw participation from around 800 exhibitors from 30 countries. The fair was characterised by a strong entrepreneurial spirit, leading to numerous business deals and contracts. Conferences and forums focused on investments, European funds, and cross-border cooperation.

Notably, leaders from Bosnia and Herzegovina, Croatia, and Serbia called for stronger regional cooperation.

CONNECTING THE REGION BUILDING BRIDGES

17th Book and Education Fair: A Celebration for Literature Enthusiasts Montenegro

Podgorica’s 17th International Book and Education Fair, running from 8th to 14th May, displayed over 100,000 titles. It proved to be a major cultural event in Montenegro, attracting

a vast audience and emphasising the importance of reading in today’s world. The closing ceremony recognised various achievements with 20 awards in 14 categories.

28th International General Economic Fair Albania

The 28th International General Economic Fair in Tirana, held from 1st to 4th December 2022, featured 240 exhibitors and attracted over 12,000 visitors. This fair showcased a variety of industries, benefiting from the “Open Balkan” initiative. The upcoming fair, scheduled for 6th to 9th December, is expected to see record participation.

2nd International Tourism Fair Kosovo

The 2nd International Tourism Fair Kosovo 2023, held in Pristina from 16th to 18th March, saw participation of 210 tourism companies from 10 European countries. The fair demonstrated Kosovo’s commitment to developing tourism and tourism infrastructure, attracting visitors with various offers and a grand prize draw.

2nd National Food and Drink Fair North Macedonia

Skopje hosted the 2 nd National Food and Drink Fair, where approximately 400 small producers showcased over 2,000 products prepared using traditional recipes. The fair emphasised the importance of regional cooperation in preserving traditional tastes and recipes.

5th International Tourism Fair: Showcasing the Finest Beaches Albania

The “Expo Tourism International Fair 2023”, held in Tirana from 6th to 8th April, brought together over a hundred exhibitors from countries such as Greece, Italy, North Macedonia, Switzerland, and Bosnia and Herzegovina.

This annual event, now in its fifth year in Tirana, aimed to promote the tourism offerings of the participating countries, with a focus on business travel and sustainable tourism.

The fair provided an excellent opportunity for tourism agencies and other industry players to connect with potential clients and business partners from the region and beyond.

35th International Book Fair: Attendance at Pre-Pandemic Levels North Macedonia

Held in Skopje’s Boris Trajkovski Arena from 4th to 10th May, the 35th Book Fair saw participation from over 60 publishing houses from North Macedonia, Serbia, Albania, and Kosovo. Attracting 30,000 visitors, the event reached attendance figures akin to the pre-pandemic period. Themed “The Scent of a New Book Announces Spring”, the seven-day fair featured numerous new titles, author meet-and-greets, and a variety of promotions and discounts. Sponsored by North Macedonia’s Ministry of Culture, this fair is a significant cultural event in the country.

Regional Job Fair Exceeds Expectations From 24th to 31st October, the most significant online job fair in Serbia and the region took place, attracting over 150 employers from Serbia, Croatia, North Macedonia, Bosnia and Herzegovina, and Slovenia, offering more than 1,000 job vacancies. Serbia maintained its leading position, with the highest number of participants and job listings.

The event saw 55 employers presenting over 500 job positions, with more than 690,000 visits and over 50,000 applications submitted. The fair was organised by leading employment websites from the region, including Poslovi Infostud (Serbia), MojPosao.ba (Bosnia and Herzegovina), Vrabotuvanje (North Macedonia), Deloglasnik (Slovenia), and MojPosao (Croatia).∙ 147

SLOVENIA

By Ljubica Gojgić

INTERVIEW

Echo of the “Bled pledge” The strong message of European Council President Charles Michel at the Bled Strategic Forum 2023 that both the EU and the Western Balkans should be prepared for enlargement by 2030 resounded loudly throughout the region and in Brussels, and I sincerely believe that this is an important chance for both sides that’s not to be missed TANJA FAJON Deputy Prime Minister and Minister of Foreign Affairs of the Republic of Slovenia

he countries of the region should recognise the “recent new window of opportunity for enlargement” opened by the EU. It is essential for the Western Balkan countries to fully implement the required reforms in order to “grasp the 2030 opportunity”, suggests Slovenian Foreign Minister Tanja Fajon.

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You are very well acquainted with the situation in the Western Balkans. At a time when it is often suggested that the required “momentum” now exists to accelerate the pace of the region’s EU integration process, would you say that the tempo of accession depends more on the current state of affairs in the EU or the level of preparedness of the countries of the region? ― As a staunch supporter of the EU enlargement to the Western Balkans for the past 15 years, I very much wel-

Regional initiatives help the region address common challenges like energy shortages, environmental pollution, transport infrastructure, cross-border criminal activities etc.

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come the recent new window of opportunity for enlargement. Let me remind us all of the strong message provided by European Council President Charles Michel at the Bled Strategic Forum 2023 that both the EU and the Western Balkans should be prepared for enlargement by 2030. The so-called ‘Bled pledge’ echoed loudly throughout the region and in Brussels, and I sincerely believe that this is an important chance for both; a chance not to be missed. I think the main message is very clear: countries that are serious about joining the EU should grasp this ‘2030’ opportunity. I am also glad to see that it is ever clearer to everyone that the enlargement policy is the EU’s most powerful stabilisation instrument, which is greatly needed in a world full of destabilised regions and

alarming conflicts. However, a new approach – one that’s more geostrategic and less bureaucratic – doesn’t mean lowering enlargement standards. Full reform implementation, which is in the hands of the Western Balkans, remains essential.

That’s why I believe that the EU’s internal reforms should run in parallel with the EU enlargement process. Enlargement to encompass the Western Balkans shouldn’t wait for changes to the founding treaties. We should work to find sufficient political will to reform in the region and to enlarge in the EU. The opportunity is here and we have to seize it fully and with full speed. We need to complete the Union, but also to prepare the Union for this clear objective by 2030. In the coming months, political leaders will have to show the political willingness and determination to consider substantial internal EU reform.

The report recently presented by the Franco-German group of experts will be a good starting point for reflection, as will the Commission’s announced pre-accession reviews of EU policies.

Namely, EU enlargement to the Western Balkans, plus to the East to a potential 36 Member States, would have major implications for the EU budget. This is why we will need to find the right way to manage this complex transition. It is important that the EU remains at the forefront of the green transition and makes progress on deepening integration in areas like energy and climate, the single market and digital transformation. It is clear that EU enlargement and deepening various policy areas will have to go hand in hand. To this end, creative solutions, such as innovative forms for the gradual integration of future new members into EU policy areas (Green Deal, Single & Digital Single Market, CFSP etc.) will be crucial. We certainly need to do more to close the development gap between the EU and future new Member States.

What kind of scope do regional initiatives with a European agenda have – with one such initiative be-

ing Slovenia’s own Brdo-Brijuni Process. There is some concern that these initiatives (the Berlin Process, Open Balkan…) represent a kind of alternative to EU accession itself, which remains a long way off. How do you view them? ― I don’t think we should see these initiatives as “either-or” options. They do not exclude one another, but rather are complementary. As regional cooperation is an essential element of the enlargement process, guiding the Western Balkan countries towards EU membership, I see regional initiatives as being useful. They help the region address common challenges like energy shortages, environmental

and supporting each other in the EU integration process. It serves as a natural platform for open debate and cooperation in all areas of common interest and for addressing outstanding issues in the region, as it is often easier to address them in an informal setting, through open and frank discussion. When we talk about the perspective of young people in the Western Balkans, youth mobility, cultural and social exchanges, and education are all vital if we want to achieve lasting and sustainable reconciliation in the region. In this context, the RYCO (Regional Youth Cooperation Office) is an important mechanism that enables youth cooperation in the region

NEW MEMBERS

We certainly need to do more to close the development gap between the EU and future new Member States.

When it comes to the perspective of young people in the Western Balkans – youth mobility, cultural and social exchanges, and education are all vital if we want to achieve lasting and sustainable reconciliation in the region

pollution, transport infrastructure, cross-border criminal activities etc.

For instance, the Western Balkan region is still confronted by a lack of reconciliation or slow progress on it, and regional initiatives contribute significantly to building mutual trust.

For example, the Brdo-Brijuni Process brings together countries linked by historical, geographical, cultural and political ties, and which have a common interest in sharing experiences

and thus contributes to reconciliation.

Slovenia strongly supports regional cooperation among the countries of the Western Balkans - inclusiveness remains crucial to the successful functioning of regional initiatives.

So, I would say that regional initiatives should seek synergies and complementarity with the enlargement process, and not as any kind of alternative to EU enlargement, which remains an absolute imperative for the region. ∙ 149

SLOVENIA

INTERVIEW

Strong Support

Slovenia is actively engaged in facilitating the swift expansion of the EU to include the Western Balkans. However, the pace of this convergence is ultimately in the hands of each individual member state

MATJAŽ HAN

Slovenian Minister of Economic Development and Technology he Republic of Slovenia set the expansion of EU membership in the Western Balkans as one of its priorities upon entering the EU, says Matjaž Han, Slovenian Minister of Economic Development and Technology, with whom we spoke exclusively for this issue.

Han points out that it was for this

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purpose that Slovenia, together with the Republic of Croatia, initiated the Brdo-Brioni process in 2013, representing an annual multilateral meeting of Western Balkan leaders aimed

at identifying solutions for the European Union’s expansion to encompass the Western Balkan countries.

Slovenia also highlighted EU expansion to the Western Balkans as a

Slovenia’s commitment to facilitating EU expansion to encompass the Western Balkans is a cornerstone of regional collaboration, reflecting the country’s dedication to advancing collective interests

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OPPORTUNITIES

SUPPORT

CONSULTATION

Various areas of economic development and tourism present opportunities for Western Balkan countries to converge with the EU faster .

During its EU Council presidency in the second half of 2021, Slovenia spearheaded events promoting EU expansion to the Western Balkans.

Slovenia and Croatia initiated the annual Brdo-Brioni process in 2013, with the aim of addressing EU expansion to encompass the Western Balkans.

priority during its recent presidency of the Council of the EU in the second half of 2021. And it was during this period that it organised and hosted a series of events addressing this topic.

“At the strategic level of the Western Balkans, the Republic of Slovenia is doing everything in its power to facilitate a swift expansion. However, the pace of convergence lies within the domain of each individual member state, which must still meet the standards and conditions required to start negotiations,” says Han. According to our interlocutor, cooperation among Western Balkan countries is at a satisfactory level and thus fosters deepened collaboration, particularly in the economic sphere.

Each country, whether in the West-

ern Balkans or not, must consider numerous factors when setting economic priorities – ranging from natural resources, geostrategic position and future development plans, to limitations in accessing various markets, adds Han. “However,” he explains, “certain areas of economic development and tourism could offer opportunities for

faster economic convergence with the EU for Western Balkan countries, especially in areas like the European Green Deal, Europe fit for the digital age, An economy that works for people, A stronger Europe in the world, Promoting our European way of life, A new push for European democracy, Digitalisation and Artificial Intelligence and Mobility.”∙

Cooperation among the Western Balkan countries has reached a commendable level, particularly within the economic sphere. This collaborative atmosphere supports deeper cooperation and coordination

STRATEGY

At the strategic level of the Western Balkans, the Republic of Slovenia is doing everything in its power to facilitate a swift expansion.

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SLOVENIA INTERVIEW

The Green Deal Represents a Complex Endeavour

New sustainability reporting demands will necessitate enhanced efforts across businesses for transparent implementation, impacting not only larger EU companies, but also Western Balkan partners through value chains TIBOR ŠIMONKA President of the Chamber of Commerce and Industry of Slovenia

he European Green Deal is a plan with objectives to achieve a low carbon, resource efficient economy/society in the EU. Since the late-2019 publishing of the Green

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Deal, the European Commission has substantiated each objective with the implementing of measures. Some are still in the parliamentary approval process and will only come into force in the following years. Most will be compulsory, being enforced with EU regulations that are applied directly instead of directives that are currently the main mode of common EU environ-

mental legislation. A lot of the new regulations will need to be supported with additional implementing regulations that detail technical measures for states and companies to be compliant with the new demands.

New demands, especially for reporting, which will be more detailed and broader in order to encompass sustainability indicators along val-

ue chains, will require additional efforts in business to ensure transparent and verifiable implementation in everyday business. Though these requirements are aimed at larger companies in the EU, they will spillover to SMEs operating within the EU and partners outside the EU area through value chains.

I would recommend following legislative developments in the EU, including them in state strategies to incorporate a business-friendly environment and work with your partners in EU, with whom you will be ascertaining new developments and requirements to ensure compliance.

In the EU accession process, the countries (and chambers) of the Western Balkans have mastered the Europe-

an mechanisms of projects, the means to implement them and the method to implement them successfully.

One area that should perhaps receive even more attention in the con-

looming ESG requirements. Among the tangible potentials, I can mention only one with direct current profitability: rare earth minerals in abandoned and devastated mining and industri-

The Green Deal’s regulations will predominantly be compulsory and directly enforced through EU regulations, shifting away from the current reliance on directives for common EU environmental legislation text of the Western Balkans is the circular economy, with all the associated “transitions”. The Western Balkan countries have the need, experience and potential to integrate this area into the economy more intensively – for the sake of sustainability and

al sites. The most valuable raw materials of the future lie there, discarded.

Technologies for their extraction are being developed increasingly, with the only question being whether Slovenian providers are big enough “players” to tackle them. ∙

REMINDER

ADVICE

RESOURCES

The Western Balkan countries have the need, experience and potential to integrate circular economy principles into their economies more intensively.

Keep up-to-date on EU legislation, collaborate on business-friendly policies at the national level and work closely with EU partners to meet evolving compliance standards.

The immediate profit potential lies in rare earth minerals found at abandoned sites. The only question is whether Slovenian providers are significant enough “players” to tackle them.

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GRAPHICS

The EU and WB6 are the main export destinations, with the EU being more important Export to EU and WB6, % of total exports

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73

34 18

17

Albania

Bosnia and Herzegovina

EU - 27 countries (from 2020)

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36

WB6

Kosovo

78 64 42 30 12 Montenegro

North Macedonia

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Serbia

Source: wiiw 155

SLOVENIA

OPINION

A Scandinavialike Balkans?

Why not?

The Western Balkan region is still much more often associated with times of turmoil than periods of progress and economic growth, but if the countries of the region were clearly oriented towards one another, it could ultimately lead to the kind of cooperation enjoyed by Scandinavian countries NOVICA MIHAJLOVIĆ Journalist

f you were to enter into Google the words ‘Croatia, Serbia, Bosnia & Herzegovina and war’, this American creation and global tool for searching the internet would provide 1,040,000 hits in 0.46 seconds. However, if you repeat the search but replace the word ‘war’ with ‘progress’, Google is only able to offer 505,000 options in half a second.

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of nationalists, radicals, criminals and arms dealers. It seems as though there’s no place for optimists and rational folk who believe that nothing is impossible and that change doesn’t always mean change for the worse.

But some of us are nonetheless like that. I have been dealing with journalism for almost 30 years and have spent most of my career as a journalist monitoring the economy and events in Balkan countries. If you’d told me or any of my colleagues in Slovenia in the mid-1990s that Croatian or Ser-

Nowhere in the West does the average Slovenian businessman feel so at home and desired as he does on the markets of the former Yugoslavia Considering the constant instability across the territory of the former Yugoslavia, where various peoples, cultures and religions encounter each other and the interests of the great powers, the headline of this article might seem like the premise of a film from the fantasy genre. The political reality of the Western Balkans gives the unfortunate impression that all microphones and megaphones in the region are exclusively in the hands 156

CONNECTING THE REGION BUILDING BRIDGES

bian companies would become important players as owners of significant Slovenian companies in many sectors of the economy in less than three decades, you would only have received pity-filled smiles. A destitute person who has no contact whatsoever with the economic and political reality of Slovenia and other less developed countries of the region would have been considered back then of being an impudent prognosticator. Our

smile would probably closely resemble the kind of belittling smile evoked by the notion of the Balkan Peninsula one day becoming a region resembling Scandinavia.

The lands known today as the Western Balkans have always been viewed by Slovenia as its own backyard; as the epicentre of the country’s interests. The great importance of the markets of the former Yugoslavia to Slovenia became clear to even the worst sceptics after 1991, following Slovenia’s gaining of independence and in the subsequent period of the bloody wars in Croatia, Bosnia-Herzegovina and a Serbia that was blocked by sanctions. It was during that time that the Slovenian economy was compelled to suddenly shift, practically overnight, and reorient its production and trade flows towards Western markets. That was no mean feat, but the Slovenian economy, which is based on small and medium-sized family firms, nevertheless succeeded, and thus today the vast majority of its exports end up on Western markets, in the countries of the European Union. And yet, nowhere in the West does the average Slovenian businessman feel so at home and desired as he does on the markets of the for-

mer common country. Despite having gone through a generational shift and the fact that the “Made in Slovenia” label means nothing more to younger consumers than the “Made in Turkey” one, older generations of consumers still remember Iskra, Gorenje, Elan, Fructal and other Slovenian brands as being synonymous with reliability and quality. In fairness, following the privatisation process and numerous business transformations that inevitably followed changes to the demands of the market and consumers, the aforementioned brands have very little to do with Slovenia, but the knowledge and skills of the numerous people who spent years building and developing the Slovenian economy have not disappeared.

They are still there, working, forging careers, developing new products, defending their positions on old markets and conquering new ones. EU membership and the euro are important trump cards for Slovenia, which – with just two million inhabitants – is a relatively small market. Slovenia’s market is the entire EU, but also the Western Balkans. That was previously also the case and will continue to be in the future. That’s why it is in Slovenia’s vital national interests that the region remains stable and continues to develop, and that it is made as easy as possible to cross borders in the future, for goods not to spend inordinate periods stuck at borders, and for the recognition of professional qualifications and university degrees to be facilitated.

Given that the value of exports totals almost 90 per cent of Slovenia’s GDP, the country is very vulnerable to any heightened disruptions to cross-border trade, as occurred during the Covid-19 pandemic. It is extremely difficult for a small market like Slovenia’s to absorb such shocks simply by doing business on the domestic market. This is probably also one of the main reasons that numerous Slovenian entrepreneurs so warmly welcomed Serbian President Aleksandar Vučić’s initiative regarding the so-called Mini-Schengen zone, later dubbed the

Open Balkan initiative. In one public appearance, Blaž Brodnjak, CEO of the NLB Group, representing Slovenia’s largest bank and the third largest in Serbia, illustrated the need for the Balkan markets to unify by noting that

appearance in Serbia.

The world is changing too rapidly for Brodnjak and other dynamic businesspeople to spend eternity waiting for rigid state administrations to change to ease their operations. How-

Small markets like Slovenia’s can’t handle shocks like the closing of borders, which is why Slovenian entrepreneurs so warmly welcomed Serbian President Aleksandar Vučić’s Open Balkan initiative

the combined total of the GDPs of all former Yugoslav republics barely exceeds – by just a few billion euros - the annual GDP of Hungary, which isn’t a large economy from the European perspective. “In Slovenia we produce everything that our market needs in two weeks. And what should we do for the rest of the year? I believe strongly in building regional markets and linking them based on the Scandinavian model. We don’t need any new Yugoslavia; we need the free movement of people and capital across that territory,” said Brodnjak during one public

ever, that doesn’t mean that there’s no room for success and progress in the region that we share. There is! And Scandinavia is closer to the Balkans than we would have dared to dream until recently. ∙

Stability It is in Slovenia’s vital national interests that the region remains stable and continues to develop, and that all barriers to doing business are reduced.

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REGION, FOCUS

HOW ART SHAPES OUR REGION

Transformative Threads How powerful is the language of art when it comes to fostering mutual connections, understanding and inspiration within the region? In which realm does its influence resonate most profoundly? Does it manifest in the realms of reconciliation, tolerance, reflections on the past, or do cultural forces within the region wield the greatest impact when it comes to shaping the future? Equally intriguing is the exploration of where this expressive language falls silent and the reasons behind those moments of silence. Numerous contributors responded to our invitation to share insights into their initiatives that are weaving the intricate fabric of the region.

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Guardians of the Fire Art and artistic exchanges are crucial to preserving the shared past and building the foundations of a common future, and its guardians are the independent art scene and dedicated artists around the region

NATALIJA VUJOŠEVIĆ Artist, curator of the Centre for Contemporary Art of Montenegro, Founder and Director of the Institute of Contemporary Art in Montenegro

est illustrating the power of the language of art to create connections and understanding in the region is the fact that it not only survived but grew stronger at a time when all other

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ent art scene and dedicated artists a n d i n d iv i du a l s, b u t a l s o to high-quality exchanges between institutions, though they have often found themselves in uncertain situations due to culture’s marginalised position in the political programmes of the countries of the region. Even though the language of art is powerful in its ability to use communication to overcome barriers and differences, but also to endure under extremely unfavourable conditions, a major problem in the

The governments of the region ascribe little importance to culture, thus showing that they are unaware of the importance of culture and its potential connections had been severed. Art and art exchanges deserve the most credit for preserving the common heritage of the shared past, and thus for laying the foundations to imagine and move towards a common future. We could say that these links were maintained for decades thanks primarily to the region’s independ-

region is represented by the poor position that culture occupies in the priorities of the governments of the region, which in their neocolonial positions are incapable of forming visions of a society with the kind of highly developed culture that serves as an indicator of the seriousness and maturity of a modern state. ∙ 159

Exploring the Past, Shaping the Future Ars Aevi shapes the future through diverse art collections, fostering connections and strengthening institutional ties in cities like Istanbul and Podgorica he process of developing Sarajevo’s Ars Ae v i M u s e u m o f Contemporary Art was strongly motivated by the idea of creating a collection that fosters connections between cities, cultures, ideas and artis-

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SENKA IBRIŠIMBEGOVIĆ Assistant Professor at the University of Sarajevo Faculty of Architecture and Director of the Ars Aevi Museum of Contemporary Art, Sarajevo

tic expressions. Each collection reflects diverse artistic practices influenced by the personal experiences of artists, ranging from artworks archiving human experiences of war to those exploring pure artistic elements like

colour, light and form. By establishing collections in cities like Istanbul and Podgorica, Ars Aevi made a significant statement about fostering stronger institutional and artistic connections within the region.

Using Culture to Oppose Fear Fear has accumulated all around us and we are haunted by questions about how we will live tomorrow. Good art provides us with the possibility of making positive interpretations and defining strengths for us to make better decisions BLAŽ PERŠIN Director of the Museum and Galleries of Ljubljana, MGML

e need the language of art today more than ever. During this time of incomprehensibly swift change, accumulated problems, wars and tensions, which are never ending in our neighbourhood, art is one of the few havens of hope for the future.

Art has become one of the few mediators enabling the transformation of society, which mostly stands on positions of national barricades. The integration of

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art into our lives is essential, as is its power to connect different communities and expose the numerous cruel blunders that we make today.

Fear has accumulated all around us. How will we live tomorrow? Where and how we will grasp a daily grain of salvation?

It is precisely art that provides us with the possibility to interpret contrasting views by shed-

ding light on real problems from different perspectives. It critically defines the current moment and, provided it is good art, gives the possibility to positively interpret and define strengths for us to make better decisions.

Connecting participants in the domain of art around the region is essential. Only a true platform, comprising actual contributors in the field of art, can create

Our societies and communities need art. We would not have the possibility to become better people without it

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the prerequisites for junctures of action that are not based only on the theoretical level, but rather provide the strength of concrete decisions leading to their embodiment. Perhaps the politicians of today don’t want people who think, who desire progress, who want to be connected by art and persuaded by it to strive for the betterment of society. The easiest people to lead are those who don’t have a stance of their own. Such thinking leads to fatal consequences that are difficult to alter, making it difficult to create preconditions for a better tomorrow. ∙

Ars Aevi’s most evident contribution lies in both re-examining and documenting the past, while also actively shaping the future.

The re-examination of the past is addressed through interpretive policies and curatorial practices rooted in the artworks included in our collection, featuring pieces by artists such as Nebojša Šerić Šoba, Šejla Kamerić, Nora Aslan, Braco Dimitrijević and Marina Abramović. With over 150 artworks in the Ars Aevi collection, there’s ample potential to discuss multifaceted historical narratives.

Concurrently, our institutional efforts towards shaping the future are exemplified by our commitment to completing the construc-

tion of the museum building designed by the Renzo Piano Building Workshop, architect Renzo Piano and his partners in charge, Emanuela Bagiletto and Philippe Goubet. This building serves not only as a home for the collection, but also stands as a model showcasing the potential of contemporary architecture. It emphasises aspects such as reducing CO2 emissions, promoting green ar-

chitecture and contributing to urban planning in the city of Sarajevo by showing the potential to transform public spaces into vibrant cultural landscapes, even a cultural district [Ugljen-Ademović, N., & Ibrišimbegović, S. (2023, May). An imaginary museum quarter: towards cultural and urban renewal. In Sarajevo Singular Plural (pp. 295-306). Nomos Verlagsgesellschaft mbH & Co. KG].

Despite successful collaboration within the art scene, active reconciliation is hindered by toxic influences from populist political agendas, intertwined with nationalist ideals

However, despite the success and robust collaboration within the art scene, toxic influences exist from populist political agendas that are deeply intertwined with nationalist ideals that hinder active reconciliation.

In Bosnia-Herzegovina, the Dayton structure, based on ethno-national dominance, significantly impacts various aspects, including procedures for participating in international events like the Venice Biennale. Here, the focus of election commissioners often shifts from assessing the quality of artwork to prioritising the concept of “national” representation, influenced by the prevailing ethno-national framework. ∙

Spaces of Freedom Art’s power lies in its ability to spark conversations, provoke considerations and inspire change, bridging divides and fostering unity among diverse communities around the region

BLAGOJA VAROSHANEC Senior Curator of the Department for Collections and Exhibitions, Museum of Contemporary Art, Skopje

he language of art is incredibly powerful when it comes to building mutual connections, understanding and inspiration in the region. Art has a unique ability to transcend language barriers and cultural differences, allowing people to connect on a deeper, emotional and visual level. Through art, we can explore shared experiences, challenge perspectives and foster

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empathy and understanding.

In terms of where its voice resounds most powerfully in the region, that can vary depending on the specific context and cultural landscape. However, art often resonates strongly in spaces such as museums, galleries, public installations and community initiatives. These platforms provide opportunities for artists to express themselves freely and for audiences to engage with their work.

Additionally, art festivals and events that bring together artists from different backgrounds can also serve as powerful catalysts of connection and reconciliation.

Ultimately, the power of art

lies in its ability to spark conversations, provoke thoughts and inspire change. It has the potential to bridge divides and create a sense of unity among diverse communities around the region.

Conservative or nationalist political and social contexts often silence the voice of tolerance. In

dressing systemic barriers and promoting dialogue and education to encourage a more inclusive and tolerant society become imperatives.

Governments, institutions, community leaders and individuals must actively promote and prioritise reconciliation, tolerance and shaping the future in

In conservative settings, overcoming extremism and social divisions calls for the addressing of systemic barriers and the promoting of education and dialogue for a more inclusive and tolerant society environments where extremist ideologies thrive, or where social divisions are intentionally perpetuated, the message of tolerance may be overshadowed or suppressed.

Under such circumstances, ad-

order to build a society that values empathy, justice and equality for all. By so doing, the voice of art can resonate more powerfully and contribute to a more inclusive and harmonious world. ∙ 161

Hidden Bridges The question is whether we are capable of overcoming the dictates of public opinion and boundaries between groups, politics and economics in order for us to genuinely foster cooperation for change towards a fairer and more just society

ZORANA DJAKOVIĆ Minniti, Associate Director of Programming at the Cultural Centre of Belgrade

rt doesn’t resolve conflict, but when it is courageous it at least suggests a solution. However, when art is courageous and questions the reality generated by the media, which is important for (re)establishing trust and maintaining relationships, it often encounters varying degrees of state resistance. It wasn’t easy to organise an exhibition in a public institution like the exhibition Bogujevci // Visual History, and it still isn’t easy ten years on. One of the recommendations of the small group of cultural workers from Albania, Greece, North Macedonia and Serbia, who gathered in 2019 with the idea of reconsidering what is required for us to cooperate better in the region of Southeast Europe, was for public

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spaces to be used more for joint projects and for pre-existing courageous practices to be supported by their countries and thus strengthened. This didn’t happen because we are subservient to the excessive pace of profit seeking that doesn’t have the goal of serving the community, but rather the individual, and everything that exposes the taboos of the system is not seen as being progressive, but rather subversive.

and work. There are topics that remain taboo. This, after all, is also how last year’s 59th October Salon ended, when the last in the series of 46 performances was executed in the public space in front of Belgrade’s Palace Albania as part of the joint work of Croatian artist Antonio Grgić and the performer – Serbian actress and educator Joana Knežević, when tears were left in glass jars – tears for the world, for corrup-

Art and those of us who gravitate towards it must be more courageous and resolute, because it seems to me that only perseverance and honesty can stand in opposition to the challenges in our surroundings That’s why I think that art and those of us who gravitate towards it must be more courageous and resolute, because it seems to me that only perseverance and honesty can stand in opposition to the struggles in which we live

CONNECTING THE REGION BUILDING BRIDGES

tion, for polluted air, for widows, for Kosovo, for culture, for NATO aggression, for Srebrenica, for unborn children, for unborn mothers and fathers, for the October Revolution, for revolution, for evolution.

According to French art critic Nicolas Bourriaud, contemporary contacts between people are directed towards “checkpoints”, where social ties are sorted into different products. Artistic work represents an expression of striving towards the creation of an alternative path of more modest ambitions, the removal of obstacles at some “thoroughfares” and “crossroads”, and to connect aspects of reality that are often distant.

Cooperation in the region exists today and even existed when that wasn’t part of political or economic agendas, but the question is whether those of us who participate in that cooperation are in a position to overcome the fabricated parameters of public opinion. There are no boundaries between different groups; politics; economics and truth, and to be honest towards ourselves and others and to nurture that cooperation in order for something to change on a broader social front in the direction of creating a fairer world. ∙