The Region 2025 no. 9 by The Region

ADRIA'S VOICE IN GLOBAL BUSINESS

The Region No.9

SHIFT ADRIA AT A MOMENT OF CONSEQUENCE 2026

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The Region DIRECTOR & EDITOR-IN-CHIEF: Ana Novčić a.novcic@connectingregion.com DESIGN: Branislav Ninković COMMUNICATIONS DIRECTOR: Neda Lukić n.lukic@connectingregion.com CONTRIBUTORS: Ljubica Gojgić, Ivana Babić, Marko Nikolić, Milica Uvalić, Adriano Milovan, Armin Zeba, Dejan Azeski, Geri Kolgega, Idro Seferi, Nataša Damnjanović, Branimir Jovanović, Zoran Panović, Milan Igrutinović, Maja Vukadinović, Mila Jović, Novica Mihajlović TRANSLATION & EDITING: Marija Jurić

Cover article

18–19 | Damien Sorrell (EIB) The Western Balkans Reset

SPECIAL REPORT: 10–15 | What 2030 Really Asks of the Region Less rhetoric. More delivery.

PHOTOS: Zoran Petrović, Shutterstock

20–21 | Green Transition From obligation to advantage.

ADVERTISING: Biljana Dević b.devic@connectingregion.com Mihailo Čučković m.cuckovic@connectingregion.com Vesna Vukajlović v.vukajlovic@connectingregion.com SUBSCRIPTIONS: Svetlana Petrović subscribe@connectingregion.com

22–23 | Tim Lardner (UNOPS) The 2030 Test for the Region.

FINANCE: finance@aim.rs PRINTING: Zlatna knjiga Connecting the Regionis published by: alliance international media d.o.o. Resavska 1/III, 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 2025 As part of the AIM publishing family, The Region builds on the Magazine’s legacy of 22 years of excellence

24–25 | Connectivity Why infrastructure is still destiny. 26–27 | Zoran Milovanović (MTEL) MTEL’s Big Shift.

ISSN 3009-4380

9 773009 438006 > The views expressed in this publication are those of the presenter. They do not necessary reflect the views of the publisher Connecting the Region is quarterly publication CIP - Каталогизација у публикацији Народна библиотека Србије, Београд 327 CONNECTING the Region / editor in chief Ana Novčić. 2023, no. 1- . - Belgrade : Alliance international media, 2023- (Subotica : Rotografika). 29,5 cm Tromesečno. ISSN 3009-4380 = Connecting the Region COBISS.SR-ID 130142473

The Region

28–29 | Digital Leap The moment technology stopped being optional.

CONTENTS

ADRIA'S VOICE IN GLOBAL BUSINESS

WESTERN BALKANS 2030 30–31 | Dušan Živković (EPS) EPS at the Turning Point.

33 | Aleksandar Goračinov (SME HUB) Switzerland’s Discipline, Adria’s Drive.

7 | Editor’s Comment The 2030 Wake-Up Call for Adria

36–39 | In-Depth: Adria Workforce Crunch Who’s missing—and why it matters.

34–35 | Ambassador Akira Imamura & Oliver Lepori Japan’s Vision for the Western Balkans.

40–41 | Adria’s Corporate Mood for 2026 Confidence, caution, recalibration.

42–43 | EU Accession 2025 What it really means for business.

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The Region 44–45 | Big Question: Maja Lalić Who Will Design Our Future?

46–47 | NELT at Full Speed Scale, strategy, and staying ahead.

48 | Faultline: The Day Serbia Hit the Energy Wall A system pushed to its limits.

ADRIA & THE WORLD

56–57 | Koncar The Quiet Powerhouse of Europe

50–51 | Feature: Austria’s Influence The power of consistency.

58–59 | Velocity: Edin Mehić AI kills the advantage of scale.

60–64 | Regional Pulse Signals, shifts, and strategic noise. 66,67 | Infrastructure

78-79 | Ioanna Regen: The Rise of Natural Aesthetics When restraint becomes luxury.

72-77 | The Villages We Forgot What emptiness tells us about the future.

52–55 | Gerhard Schlattl (Advantage Austria Croatia) Why presence still beats proximity.

68 | New Energy Albania’s Energy Pivot

70,71 | Margins Where Infrastructure Stops 06

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80–84 | Corporate News Deals, decisions, direction.

Countdown The 2030 Wake-Up Call for Adria Europe has set the clock — but the Adria region must decide whether it is preparing for an open door… or a moving target.

For years, 2030 drifted across the region like a polite promise — close enough to inspire hope, distant enough to ignore. That era is over. Brussels has put dates, expectations and pressure on the table. But behind every announcement hides the question no one here or in Europe likes to ask out loud: is the EU really ready for another enlargement, or is the region preparing for an exam that the teacher might postpone again?

Ana Novčić Editor-in-Chief The Region

Recent weeks have brought more movement than some whole years before them. Albania has entered the final stretch of negotiations. Montenegro has been told — unusually directly — that it could be Europe’s next new member. Croatia is among the EU’s growth leaders yet brushing against the limits of its labour force. Slovenia is quietly building an AI and supercomputing arsenal that could determine its competitiveness for decades. Further south, EU funds and digitalisation programmes are pushing transformation faster than local politics usually tolerates. But politics is where the region’s fault lines are widening. Serbia has received its toughest assessment in years. North Macedonia and Bosnia and Herzegovina remain suspended between potential and paralysis. Public trust in enlargement is thinning, often for good reason. And the region has split into three speeds: the front-runners, the frustrated and the self-sabotagers. Yet the other half of the story lies on the EU side of the equation. Europe itself is entering a period of turbulence — elections, shifting coalitions, security anxieties, migration pressures and a deepening industrial transition. Enlargement has become not just a merit-based process but a political calculation. The Union knows it needs stability in its southeast; it is less certain how fast its own members want to welcome new ones. In Brussels, optimism and hesitation now live in the same sentence.

This is why, last November in Belgrade, we convened ministers, EU officials, investors and innovators for Western Balkans 2030. For a day, scripted niceties gave way to something rarer: deadlines, deliverables and uncomfortable truths. The message was direct: Europe is willing to move, but it will not drag anyone — and it might change shape before we get there. Meanwhile, another dynamic is reshaping Adria from below: business, science and cities are sprinting ahead of governments. Renewable-energy projects, AI labs, logistics corridors and cross-border start-ups are integrating the region faster than any treaty. A new generation of professionals is emerging — people who see Adria not as a collection of small markets but as a single economic zone with shared ambitions. If governments hesitate, this generation will not wait for political permission. So as we open this issue of The Region, the real question isn’t whether EU enlargement will happen. It likely will — but perhaps not in the form, timeline or political climate anyone expects. The more urgent question is this: who in Adria is building resilience, competitiveness and credibility for a Europe that itself is changing? Who is preparing for membership — and who is preparing for the possibility that membership might come later, in phases, or under tougher terms? The next five years will define far more than accession. They will determine whether Adria becomes a contributor to Europe’s economic core — or a bystander adjusting to decisions made elsewhere. Our task, as ever, is simple: cut through the noise, measure the real progress, name the gaps, and tell the story honestly — even when it stings. The countdown has begun. And this time, the uncertainty is part of the truth. Welcome to the issue • The Region

CONTENTS

ADRIA'S VOICE IN GLOBAL BUSINESS

92–96 | World at a Glance Global stories through an Adria lens.

85 | Numbers Behind It All 86–87 | 2025 in Numbers

88–91 | A New Transatlantic Vocabulary Power, security, and shifting language.

THE OTHER SIDE OF THE REGION

98–101 | WildScope: The Adria Chamois Grace, survival, altitude.

106-107 | Lesser Known Tales When Europe Met Its First Vampire.

114 | The Roast Satire by Branko Krsmanović. 108–113 | Events Where the region actually met.

102–104 | Bookshelf Ideas worth carrying forward. 115 | In the Next Issue 08

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WESTERN

BALKANS 2030 Connecting Today’s Efforts to Tomorrow’s Europe

Convergence

Western Balkans 2030 A Region Out of Excuses — and Out of Time

ong before the lights dimmed and the opening remarks began, the Sava Centre was already heavy with the kind of anticipation that only arrives when a region understands it is walking into a moment of truth. Ministers, ambassadors, CEOs, development financiers, innovators, and policy veterans filled the hall — a rare concentration of influence for a conference that refused to be another ceremonial roundtable. The Region magazine’s “Western Balkans 2030 10

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– Connecting Today’s Efforts to Tomorrow’s Europe” opened not with polite optimism, but with a sharper, more urgent tone: the region is out of time, and out of excuses. “We brought together the people who shape the future of this region,” said Editor-in-Chief Ana Novčić, setting the tone with unusual clarity. “Ideas matter — but delivery defines everything.” And with that, the conference shifted from dialogue to diagno-

sis. What has been achieved? What remains blocked? And what must change — fast — if the Western Balkans intends to avoid another lost decade? Europe’s geopolitical recalibration formed the conference’s first throughline. Italy’s Ambassador Luca Gori argued that enlargement and security are now inseparable, and that the Western Balkans must be seen not as a peripheral project but as an essential component of the continent’s sta-

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bility. Reforming the accession methodology, he noted, is inevitable — but so is the EU’s own internal preparation for new members. Montenegro and Albania may be ahead, but the message was clear: the Union will not feel complete until all Western Balkan countries are inside it. From the United Nations, Matilde Mordt added the economic architecture behind this political urgency. Infrastructure, she argued, is the skeleton of integration, but human capital is its lifeblood. Without stronger energy links, more reliable transport corridors, and digital systems designed for citizens rather than institutions, no region can hope to compete. And without investment in people, no strategy — no matter how elaborate — will survive contact with reality. The first panel carried this momentum forward and anchored it in the logic of accession itself. What emerged was not another recitation of EU conditions, but a stark recognition that accession has shifted from a political aspiration to an economic transformation. UNOPS Regional Director Tim Lardner opened the discussion with a message that resonated throughout the day: reforms only matter when citizens feel them. He detailed years of implementation through EU PRO and EU PRO Plus — more than 500 grants, €12.5 million, thousands of companies supported, and dozens of municipalities strengthened — evidence that reforms only become real when they move from paper to practice. Damien Sorrell of the European Investment Bank underscored what many in the room felt but rarely say so plainly. Money is not the problem. Implementation is. The green transition, energy diversification, resilient infrastructure, cross-border transport, and digital networks all require

a level of institutional discipline the region has long struggled to deliver. “People need to see results,” he said. “We have to move faster.” From the private-sector viewpoint, Sustineri Partners’ CEO Biljana Braithwaite offered a reminder that gov-

ernance is no longer a fashionable acronym but the core metric investors from China to Europe use to assess risk. Transparency, sustainability, inclusion — these are not constraints but competitive advantages. Delay, she warned, is expensive.

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Representing the EU Delegation, Mauro Di Veroli presented the Growth Plan not as another policy framework but as a tangible opportunity. Serbia alone stands to unlock €1.6 billion if key reforms advance. Gradual access to elements of the Sin-

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gle Market is on the table — but only for countries that demonstrate they can meet the commitments behind it. The next chapter of the day — the green transition — was equal parts ambition and realism. The UK’s Ambassador, Edward Ferguson, reflect-

ed on Britain’s path to eliminating coal and building a renewable energy system. The transformation, he said, required not only technology but the political courage to cut unnecessary procedures and allow strong projects to move quickly. His comments landed with force in a region where administrative inertia remains one of the most immovable barriers to change. But it was Arslan Umut Ergezer of the Regional Cooperation Council who provided the statistic that captured the magnitude of the challenge ahead: the Western Balkans will require around €40 billion in climate adaptation alone. The scale simply cannot be shouldered by donors or governments. Private capital will be indispensable, but only if the region can offer predictability, coordination, and credible long-term planning. Serbia’s Assistant Minister for Energy Efficiency and Climate Change, Maja Vukadinović, delivered the kind of candour often missing from conversations about decarbonisation. With

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nearly two-thirds of electricity still coming from coal, Serbia cannot shut down plants without first building new capacities and storage. She outlined the country’s substantial pipeline — the 1 GW solar-battery project, hydrogen storage systems, the Bistrica hydropower plant, and a solar-thermal facility in Novi Sad — as proof that transition is already underway, even if its pace must remain carefully balanced with energy security. EPS General Manager Dušan Živković drove that point home. Electricity is not only a commodity; it is a precondition for social stability. Transition that ignores this reality is not transition — it is disruption. Stability must guide every decision. Digitalisation, the focus of the third panel, offered the region its most immediate opportunity. While energy systems and infrastructure demand enormous capital, digital transformation requires something more achievable: institutional coordination and a mindset shift. North Macedonia’s Deputy Prime Minister, Ivan Stoilković, positioned digitalisation as the region’s quickest route to European alignment.

A unified digital infrastructure, he argued, is not a technical exercise but a political and economic one. Finland’s Ambassador Niklas Lindqvist presented one of the world’s most compelling benchmarks: 85% of Finns now use digital public services,

surpassing EU targets years ahead of time. The success, he stressed, came from involving citizens directly in the design of services, ensuring trust and inclusivity from the start. Serbia’s own example — the mobile registration system for seasonal

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agricultural workers — demonstrated how quickly a functional model can scale. After proving successful at home, it has already been adopted in four neighbouring economies, illustrating the region’s ability to leap ahead when solutions are practical and transferable. MTEL Montenegro’s CEO, Zoran Milovanović, spoke to the human dimension: technology evolves daily, but societies do not. Education must keep pace or digitalisation becomes a hollow slogan. SME Hub Director Aleksandar Goračinov reinforced the point by arguing that software never transforms a company — leadership does. The panel ended with a sharp look at the horizon. Dražen Višnjić of Republika Srpska’s ICT Agency outlined ambitions in artificial intelligence, robotics, advanced electronics and medicine — sectors where the Western

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Balkans must decide whether it will participate or be left behind. The fireside chat with Japan’s Ambassador Akira Imamura and Oliver Lepori of the Japanese Business Alliance added an unexpected but resonant perspective: long-term thinking seldom comes easily to regions caught in the rhythms of political cycles. Japan does not approach the Western Balkans as a frontier market but as a long-horizon strategic investment. Stability, skills, and partnership — these are the cornerstones of Japanese engagement, and they offer the region a model of patience and purpose. By the end of the day, one message echoed across every session: the Western Balkans do not lack ambition. They lack time. 2030 is not a hopeful marker. It is a deadline. And the window for meaningful change is closing.

The “Western Balkans 2030 – Connecting Today’s Efforts to Tomorrow’s Europe” conference was supported by the European Investment Bank (EIB) and UNOPS, sponsored by Elektroprivreda Srbije (EPS), MTEL and SME Hub, with Carlsberg supporting the networking lunch.

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What 2030 Really Asks of the Region T

he Western Balkans has accumulated more plans and strategic frameworks than almost any region of its size. Yet none of these documents, no matter how elegantly drafted, will determine the region’s trajectory to 2030. What will matter are the choices leaders make now — choices that demand something far more difficult than drafting agendas or delivering speeches. They demand discipline, speed, and a willingness to leave behind patterns that have kept the region stuck between ambition and execution.

painfully slow in too many sectors — now defines credibility both at home and with international partners.

Across the panels and conversations of the Western Balkans 2030 conference, a single theme emerged with increasing clarity: the region must move from aspiration to action, and from comfort to consequence. The most expensive resource it is losing is not money, but time. Institutions can no longer afford to treat procedure as a badge of legitimacy when it has become an obstacle to progress. Implementation speed —

Human capital emerged as the region’s most valuable — and most vulnerable — asset. Speakers from the UN to the Japanese delegation warned that without investment in talent, no infrastructure project or investment package will produce lasting results. The region cannot build a future for citizens who are no longer there; it must create conditions that persuade people to stay, innovate and invest their expertise at home.

Equally essential is the shift from national reflexes to regional logic. Whether the conversation centred on energy lines, transport corridors, cross-border digital systems, or the mobility of workers and skills, the message was unmistakable: no Western Balkan country can modernise in isolation. Integration is not a symbolic gesture but the actual machinery of economic survival.

Governance, too often treated as a compliance exercise, has become an economic determinant. Investors evaluating projects in 2025 are motivated less by incentives and more by predictability, transparency and responsible management. The region’s political comfort with postponement is incompatible with the expectations of global capital. Stability must be earned, not assumed. And finally, 2030 demands a shift from comforting narratives to unflinching realism. Serbia’s energy dependency, the RCC’s €40 billion climate-adaptation estimate, the EU’s conditional Growth Plan — these are not challenges that can be wished away or outsourced. They require political courage to confront baselines and build from them, not around them. 2030 does not ask the region to be perfect. It asks the region to finally be serious — about its economy, its institutions, its people, and its future.

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Convergence

The Western Balkans Reset EIB’s Damien Sorrell on the region’s investment shift, the projects that will matter, and why state capacity may define 2030.

U accession is no longer just a diplomatic journey. It has become an investment race—one measured in bankable projects, institutional strength and the ability to deliver at scale. As new financing flows into the region and the Growth Plan reshapes incentives, the Western Balkans are facing a decisive moment. In this interview, Damien Sorrell, Head of the EIB Regional Hub for the Western Balkans, explains where momentum is real, where risks are mounting, and what must happen next for the region to seize its 2030 opportunity. THE INVESTMENT LENS OF ACCESSION E U accession was once treated as a diplomatic marathon. Today, it is increasingly an investment thesis. Where do you see the Western Balkans already aligning with this shift? Damien Sorrell: “The macro picture is improving— growth has held up, inflation is easing and public debt is stabilising. Yet income per capita remains far below EU levels, which means convergence has enormous potential if reforms and investment move together. We see alignment in several areas. Transport and energy networks continue to advance, particularly along core corridors. Green and digital transitions are becoming genuinely bankable, supported by rising demand for renewables, grid upgrades and digital skills. And across the private sec18

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tor, banks—supported by EU-backed platforms—are increasingly financing innovation, export capacity and climate technologies. Accession today means converting EU alignment into real, bankable projects that lift productivity and living standards.” THE PROJECTS THAT WILL MOVE THE NEEDLE Which upcoming EIB-backed initiatives could genuinely shift the region’s trajectory? Sorrell: “Three areas will be decisive. Sustainable transport, where Team Europe is financing new rail, road and waterway links along TEN-T corridors, strengthening trade and regional integration. Education and digital skills, through school renovation and digitalisation, which directly address the skills mismatch and prepare young people for future jobs. And the green transition, from major solar and wind projects to SME green credit lines and decarbonisation support—all essential to keeping the region competitive as EU climate rules tighten.” SIX MARKETS, ONE INVESTMENT SPACE How can the region overcome fragmentation and build a unified investment space? Sorrell: “Fragmentation raises costs, slows scaling and limits investor confidence. But there is strong political commitment to a common regional market,

and the new Growth Plan links funding to progress in that direction. Our role is to turn that commitment into investment. We prioritise physical and digital connectivity—rail, roads, interconnectors, broadband— building the backbone of an integrated market of 18 million people. We also support regulatory convergence, helping administrations move toward EU standards. Predictable rules make it easier for investors to treat the region as one space. And we work with banks to develop regional financial markets, supporting firms that operate across borders and integrate into European supply chains.” THE RACE TO GO GREEN Where does the region risk falling behind the EU climate agenda— and where can it leapfrog? Sorrell: “The risks are clear: coal-heavy power systems, high energy intensity and slow progress in waste management. As EU climate rules tighten, high-carbon exports will face competitive pressures. But the region can leapfrog. There is vast untapped renewable potential, and energy systems here are compact enough to modernise quickly. Faster permitting, modern grids, efficient buildings and a fair transition for coal communities are essential. EIB Global is focused on renewable generation, interconnectors, green transport and climate-smart water systems. With the right incentives and investment, the Western Balkans can shift from lagging behind to pioneering integrated green solutions.”

MONEY ON THE TABLE — BUT CAN IT BE ABSORBED? What must governments and businesses do to ensure this capital is truly absorbed? Sorrell: “Three steps matter most. First, much stronger project preparation and administrative capacity. The bottleneck is often not finance but project maturity. Second, regulatory and governance reforms must move in parallel—predictable permits, transparent procurement and digitalised public services accelerate absorption and reduce delays. Third, businesses need to prepare for investment—by upgrading skills, management practices and digital capabilities, forming EU partnerships and shifting to low-carbon models.” 2030 AND THE UNDERRATED OPPORTUNITY What is the most overlooked opportunity on the path to 2030? Sorrell: “State capacity. Efficient, digitalised administrations and strong regulators are the foundation for everything else. The next decade is about implementation. Financing is available, the policy direction is clear, and the economic need is evident. But success depends on the ability to prepare, procure and deliver complex, EU-standard projects. If governments treat public administration reform as a strategic investment—on par with a motorway or wind farm—the region can enter 2030 with stronger institutions, higher growth and a clearer path to EU membership.”

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Green Transition From Commitments to Action

or years, the green transition in the Western Balkans has been framed as a moral imperative or an environmental aspiration. At the Western Balkans 2030 conference, it became clear that it is neither. It is a structural necessity, and one that now asserts itself with urgency. What emerged from the panel was a portrait of a region that recognises the scale of the challenge yet still struggles with its practical consequences.

The urgency deepened with the figure presented by Arslan Umut Ergezer of the Regional Cooperation Council: around €40 billion will be required for climate adaptation alone. The number landed with a kind of quiet finality. The region will not find this scale of funding through public budgets or through donor generosity. Private capital is indispensable, but it will come only if policies are coherent, incentives predictable, and regional cooperation real rather than rhetorical.

The United Kingdom’s journey toward eliminating coal served as the cautionary benchmark. Ambassador Edward Ferguson described the transformation not as a technological marvel but as a regulatory revolution. Britain moved quickly because it removed obstacles that slowed good projects and streamlined processes that had long made renewable investment unnecessarily complicated. It was a reminder that the Western Balkans’ energy transition will not fail for lack of ambition, but for lack of execution.

Serbia’s energy transition, presented by Assistant Minister Maja Vukadinović, illustrated the complexity of the path ahead. With coal still responsible for nearly two-thirds of electricity production, the country cannot dismantle its existing system until new capacities and storage are fully established. Rather than offering promises detached from reality, she outlined tangible projects already in motion: a 1 GW solar-battery facility, the development of hydrogen storage, the Bistrica pumped-storage plant, and a large solar-thermal energy system in Novi Sad designed to shift

seasonal energy use. Her message was grounded and sober — transition is happening, but it must be sequenced with precision to avoid destabilising the grid. From the perspective of the region’s largest energy company, EPS General Manager Dušan Živković captured the core dilemma with stark clarity. Energy systems do not operate in a vacuum; they underpin the functioning of societies. Transition that moves faster than infrastructure can support becomes a threat, not a solution. Stability, he emphasised, is not the enemy of progress. It is the condition that makes progress possible. What the panel ultimately revealed is that the green transition is not measured by target years or abstract commitments. It is measured by whether the region can maintain security of supply while building an entirely different energy future. It is a test not of rhetoric but of sequencing, coordination and political courage. And it is a test that will define the Western Balkans’ economic competitiveness long after 2030 passes.

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Delivery

The 2030 Test for the Region Why delivery, not ambition, will determine the Western Balkans’ path to a more integrated and prosperous decade.

t the “Western Balkans 2030” conference in Belgrade, one message cut through the noise: the region is on the clock. Ambition is no longer the problem — delivery is. With funding on the table, political attention sharpened, and public expectations rising, the Western Balkans now face a test measured not in strategies but in outcomes. UNOPS Regional Director for Europe and Central Asia Tim Lardner, who brings three decades of experience in the humanitarian and development sectors, is clear about the moment: progress is visible, but the gap between planning and execution still defines who moves ahead and who falls behind. In this conversation, he breaks down where the region is gaining ground, where implementation still stumbles, and what it will take to turn 2030 from a deadline into a turning point. HERE DELIVERY GAINS W TRACTION — AND WHERE IT STALLS We hear often that implementation is where development succeeds or fails. In the Western Balkans, policy ambition is high, but execution still determines everything: trust, timelines, and real impact. Where do you see the region making the strongest progress in turning plans into real, measurable outcomes on the ground, and where does delivery still fall short? Across the region, we see a growing focus on delivery, not just planning. There has been real progress in areas where governments have strengthened institu22

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tions and built technical capacity, especially where reforms and investments meet strong local ownership. In Montenegro, for example, the commitment to institutional strengthening is particularly visible. Initiatives implemented by UNOPS, such as support to the sector of rule of law and fundamental rights, or digital transformation of local self-governments, contribute to the reform of public service systems and demonstrate a clear dedication to improving governance. These reforms create the conditions for long-term stability and sustainable economic and so-

cial impact. In Serbia, programmes like EU PRO Plus and EU Integra have shown how policy ambition translates into upgraded local infrastructure, support for small business competitiveness, and more inclusive and responsive municipal services. In North Macedonia, energy-efficiency upgrades in public buildings are now being implemented at scale through the EU for Clean Air project. These are changes that people in communities experience almost immediately, and they reinforce trust that institutions are addressing their needs.

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Progress becomes most tangible when institutions and communities work side by side. Where the region still faces challenges is in complex, multi-sector projects that require coordinated action across levels of government, and sometimes across borders. There is no lack of ambition, but implementation requires sustained focus and operational capacity. Strengthening that capacity will remain essential, and UNOPS is ready to continue supporting the region to deliver on long-term objectives. HE INFRASTRUCTURE THAT WILL T CHANGE THE REGION MOST — BEFORE 2030 From educational and health facilities to digital public services and sustainable local economies, over the past two decades UNOPS has become one of the most influential infrastructure actors in the region. Which types of infrastructure projects, in your view, have the greatest potential to transform the Western Balkans before 2030? Three areas stand out as truly transformative for the coming years. First, green and resilient public infrastructure. Schools, hospitals, and municipal buildings that are energy-efficient and disaster-resilient deliver savings, protect communities, and reduce emissions. Through the Enhancing School Infrastructure in Montenegro project, implemented by UNOPS with funding by the European Investment Bank, together with national and local institutions, we contribute to improving the safety, accessibility, and energy performance of schools. These types of initiatives will benefit children today and strengthen national resilience for decades to come. Second, digitalization. In Serbia and Montenegro, UNOPS supports the digital transformation of local self-governments by enhancing their capacities and supporting the acquisition of hardware and software components to digitalize public administration. We see how new systems improve security, transparency, inclusion, reduce administrative burdens, and make

services more efficient and predictable for citizens and businesses. Digital infrastructure creates a more open, competitive environment that prepares countries for EU integration. Digital systems also connect institutions across borders and create the conditions for a more integrated region and more integrated societies. Third, initiatives that support environmental governance and sustainability. In Serbia, with the support of the Swiss government through the joint UN Programme PRO – Local Governance for People and Nature, we are enhancing the operational capacities of local self-governments and civil society organizations to actively address environmental protection issues in their communities. In North Macedonia, initiatives such as the clean-up of contaminated soil at the former Organic Chemical Industry of Skopje factory contribute to reducing negative environmental impacts and improving public health. A practical way to make infrastructure sustainable is by coupling it with social inclusion measures, such as those implemented in Serbia for 350 families through the EU Support to Social Housing and Active Inclusion Programme, designed to build social housing units while supporting communities with social measures. When appropriate and sustainable infrastructure, strong institutions, and digital systems evolve together, the region gains the momentum it needs to reach its 2030 ambitions. HE ONE OPPORTUNITY THE T REGION CANNOT WASTE The timeline between now and 2030 seems very short. Funding is available, political attention is high, and citizens expect visible progress. What is the one opportunity the Western Balkans cannot afford to waste in the next five years, and what will define whether the region captures it or misses it? The biggest opportunity is to deepen regional integration through practical, tangible projects that address shared needs and

demonstrate joint progress. Whether it is digital interoperability, climate-resilient infrastructure, or green energy systems, cooperation can multiply impact and accelerate EU alignment. What will determine success is the ability to convert commitments into actions. This means stronger institutions, predictable project pipelines, transparent procurement, and results-oriented partnerships. It also requires a mindset that sees the Western Balkans as a single region with shared goals. If the region maintains a strong focus on delivery, the next five years offer a unique chance to make a step-change in development, bringing the Western Balkans and its citizens much closer to a European future. NOPS’ ROLE IN CONVERTING U AMBITION INTO ACTION How do you see UNOPS’ role in helping the region seize this moment? UNOPS contributes to this vision by helping governments transform plans into real results. We have been present in the Western Balkans for more than two decades, working hand in hand with national governments, the European Union, Switzerland, Norway, Sweden, international partners, and local communities. What we bring is not just technical expertise and knowledge of the local context, but reliability and a commitment to delivering tangible results on the ground, while building local ownership. Across Europe and Central Asia, we see how the region’s future is increasingly being defined by the ability to implement complex reforms and investments effectively. In the Western Balkans, this capacity is strengthening year after year. Our role is to support that progress, help accelerate project delivery, and ensure that the investments made today create real, lasting impact for the people of the region. The Western Balkans has huge potential. With determination, cooperation, and a focus on delivery, it can transform that potential into a strong, stable, and prosperous future, well before 2030. The Region

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Connectivity The Region’s Most Underrated Competitive Advantage

ew words are used as loosely in regional development as “connectivity.” At the Western Balkans 2030 conference, it finally regained its true weight. Rather than a generic aspiration, connectivity emerged as the region’s most undervalued strategic advantage — a lever that can pull economies forward if leaders decide to use it with intention. The physical dimension was illustrated by North Macedonia’s Deputy Prime Minister Ivan Stoilković, who pointed to the reconstruction of Corridor 10 as evidence of what happens when national priorities, European financing and regional coordination align. Infrastructure, he reminded the audience, is never just about movement. It is about compressing economic distance, expanding opportunity and signalling credibility to investors who want certainty, not patchwork systems. Energy connectivity added another layer. From UN representatives to

EPS leadership, the message was unanimous: the region cannot modernise or decarbonise through isolated national strategies. Cross-border electricity lines, regional balancing mechanisms, shared storage, and transparent market integration are not optional features but the backbone of energy security. Without them, the region risks volatility, higher prices, and a slower transition to renewables. Digital connectivity carried the conversation into the future. Finland’s remarkable benchmark — 85% of citizens already using digital public services — illustrated what is possible when systems are designed around people rather than institutions. Serbia’s mobile registration system for seasonal workers, now adopted across four neighbouring economies, showed how quickly regional digital harmonisation can begin. In the private sector, voices from MTEL and the Swiss-Serbian SME Hub stressed that transformation depends not only

on tools, but on the willingness of institutions and companies to rethink how they operate. Institutional connectivity may be the most intangible, yet it is the area where credibility is most visibly earned. The EU Growth Plan, the renewed engagement of Japan, UNOPS’ capacity-building programmes — all rely on the ability of institutions to coordinate across borders, sectors and political cycles. Fragmentation is the region’s most persistent weakness, but coordination remains its most powerful — and still underused — asset. Connectivity, in all its forms, is the Western Balkans’ closest thing to a competitive multiplier. Whether it becomes an advantage or another chapter in the region’s long inventory of missed opportunities will depend on whether leaders treat it as the strategy it must be, rather than the slogan it has too often become.

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Signals

MTEL’s Big Shift MTEL’s CEO Zoran Milovanović on the shift from telecom operator to regional force in cloud, fintech, cyber defence and AI-ready innovation.

TEL Montenegro isn’t simply upgrading its network — it’s reinventing its identity. Under CEO Zoran Milovanović, the company has moved beyond the familiar borders of telecom and into the harder terrain of digital infrastructure, financial technology, cyber-resilience and talent development. In a region pushing toward a smarter, safer digital economy, Milovanović argues that MTEL is no longer following the curve. It’s setting it. FROM TELECOM OPERATOR TO TECHNOLOGY PLATFORM MTEL is no longer just a telecom operator — the company is becoming a platform for fintech, cloud services, digital identity and enterprise IT solutions. How does this transformation look from the CEO’s chair, and which services will define the next five years? “MTEL’s journey from 2007 until today has, I can freely say, been revolutionary, especially considering that we are now the market leader not only by the number of users but also by innovation. With over 40 percent market share in mobile telephony, television and internet, we continue to push boundaries in many other fields. With our most modern streaming application, our MOVE service, we have raised the digital TV experience to a completely new level, while with the SiguranNet service we have ensured complete online safety for our users. The telecommunications industry is undergoing the biggest transformation since the emergence of mo26

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bile telephony, and I am very proud of where we stand today. I can freely say that we are setting the foundations for building the digital economy. We live that transformation and change — we not only build digital identity, we set the trends. Looking five years ahead, I expect several strong directions: fintech — mobile payments, interoperable financial services and new digital banking functions will be one of the key pillars of growth; cybersecurity — the business sector will require local and reliable cloud environments as well as advanced security services; and digital identity — I believe digital identification will become the key to entering all ecosystems, from government services to banking and healthcare. Digital identity is measured by digital literacy, the quality of data manage-

ment and the readiness of companies to embrace new business models.” REGIONAL INTEGRATION THROUGH CONNECTIVITY Fragmented markets create fragmented standards, prices and user experience. Can telecom companies push the region toward a unified digital market — and is the region ready? “The digital economy really doesn’t recognise borders. Users expect to move across the region as if it were a single digital territory — to have the same experience, the same standards and the same services everywhere. Although this is the European model, I am certain it is achievable here as well. Telecommunications operators have already laid the foundations: the standardisation of 4G and 5G networks, joint investments, lower-

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ing roaming prices and harmonising user policies are creating a new reality. I believe we are all ready — the region is ready, the users are ready, the companies are ready. If we continue aligning digital standards, the Western Balkans can become the first region outside the EU to build a functional unified digital market.” CYBERSECURITY: THE QUIET FACTOR OF COMPETITIVENESS As Montenegro’s 2022 cyberattack showed, a single breach can paralyse an entire country. Does the region take the threat seriously enough — and what should come first? “I think that awareness among citizens and companies about cybersecurity is increasing day by day, and the company I lead works on this with commitment and strategy. Unfortunately, experience shows that cybersecurity is usually noticed only when systems stop working — and that is the biggest problem. Attacks are becoming more sophisticated, global and orchestrated. As I mentioned, we have implemented the SiguranNET service, which allows all users to be completely protected. Regarding the statistics for our SiguranNET service, it is important to note that at least 30 percent of users experience at least one type of cyber incident in a single month — an incident our service prevents before it occurs. While developing the service, we also worked intensively on educating citizens about safe internet use. We started with primary schools, where our employees organised interactive classes to adequately prepare children for the online space. Together with the Government of Montenegro, we continued organising a series of programmes such as the Digital Acade-

my, which includes digital literacy for vulnerable groups, with a special focus on cybersecurity. MTEL has been investing for years in advanced detection systems, security centres and user protection. Cybersecurity is not a luxury — it is a prerequisite for the stability of the digital economy. Telekom Srbija Group has acquired PULSEC, a company from Serbia with 150 cybersecurity engineers specialised in protecting business systems from all types of cyber threats. Through cooperation with PULSEC, MTEL now offers its business users comprehensive cyber protection services — from end-points such as mobile phones and laptops, through network protection and backups of all business data, to the most advanced SOC capability, a security operations

centre through which our engineers monitor and respond in real time 24/7 to all types of unwanted situations.” HE AI AND CLOUD T THRESHOLD Everyone talks about AI transformation; few are prepared for it. What must businesses do in 2026 to be ready for AI, cloud migration and a new wave of digital competitiveness? “AI requires much more serious preparation than any previous technology. That is why I emphasise that 2026 must be the year in which companies finish their homework. This includes migrating key systems to the cloud, because AI requires flexibility and scalability of infrastructure; organising data and introducing systematic data governance so that AI tru-

ly has quality material to work with. Equally important is the development of employees’ digital skills through training, certifications and the creation of internal AI teams. MTEL will undoubtedly be a key partner to Montenegrin businesses in this transition.” THE TALENT RACE Every country in the region is losing digital talent to higher salaries abroad. How does MTEL plan to retain and attract the engineers and innovators who will build the next decade of digital services? “In our company, we nurture a culture of innovation where employees have the opportunity to propose, test and develop solutions that change the market. Through numerous projects, our employees have the opportunity to improve, develop and advance. That is why MTEL offers what is very important — challenging projects, top technology and a culture that encourages innovation. Our strategy is based on several pillars: systematic work with young experts through programmes at the Digital Factory, partnerships with universities and structured mentoring programmes. MTEL, together with the President of Montenegro Jakov Milatović, enabled the best students from Montenegro, through a scholarship programme, to study at the world’s most prestigious universities, and MTEL opened its doors to them for employment upon graduation. We also signed a scholarship agreement with the University of Montenegro, while students of the Electrical Engineering High School were given the opportunity to complete practical training in our company. I believe that Montenegro can retain digital talent, because the challenges that exist here are just as big as those abroad.”

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WB2030

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Digitalisation Digitalisation & Modernisation — Smart Economies, Stronger Region

mid discussions of energy security, climate adaptation and long-term investment, the Western Balkans 2030 conference revealed one domain where the region can move not just quickly, but decisively: digitalisation. Unlike heavy infrastructure or complex energy projects, digital transformation offers a rare combination of speed, affordability and high visibility. It is the closest thing the region has to an accelerant — and, judging by the panel, it is finally being recognised as such. North Macedonia’s Deputy Prime Minister, Ivan Stoilković, framed digitalisation as a political priority rather than a technical upgrade. In his view, aligning digital systems across the region is not simply desirable — it is central to European integration. A digitally connected Western Balkans is a region that can speak the same administrative language as the EU long before formal accession is complete. Finland’s Ambassador Niklas Lindqvist brought a striking comparison to the table. With 85% of the population already using digital public services, Finland surpassed EU targets by designing systems rooted in peo-

ple’s needs rather than institutional convenience. The lesson was unmistakable: trust is not an afterthought. It must be engineered from the start. The Western Balkans’ own proof of concept came from Serbia. NALED’s Jelena Bojović presented the mobile registration system for seasonal agricultural workers — a model that succeeded because it was built to solve a real problem, not to satisfy a theoretical benchmark. After transforming a previously cumbersome process, it is now being replicated in North Macedonia, Montenegro, Albania and Bosnia and Herzegovina. In a region often criticised for slow adoption, this was a rare and powerful example of fast, scalable digital reform. Technology, however, is only as effective as those who use it. MTEL Montenegro’s CEO, Zoran Milovanović, emphasised the pace at which digital tools evolve and the corresponding need for societies to maintain a learning curve. Without continuous education, digitalisation becomes performative — a change in software rather than a change in capacity. From the business-support landscape, SME Hub Director Alek-

sandar Goračinov argued that transformation begins with leadership, not platforms. Tools can modernise processes, but only mindsets can modernise organisations. Looking ahead, the perspective offered by Dražen Višnjić of the ICT Agency of Republika Srpska expanded the horizon. Artificial intelligence, robotics, advanced electronics, medical technologies and new energy systems represent sectors where the region cannot afford its traditional hesitation. The question is no longer whether the Western Balkans will join these industries, but whether it will do so early enough to shape them. Digitalisation is the region’s most immediate and achievable pathway to competitiveness. It compresses distance, reduces friction, strengthens governance, unlocks growth and connects institutions that have long operated in parallel. More than anything, it offers a chance to turn aspiration into measurable progress. In a decade defined by deadlines and diminishing patience, it may well be the Western Balkans’ fastest route from intention to impact.

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Shift

EPS at the Turning Point How Serbia’s state power utility is reshaping its role in the energy transition — from renewables and storage to long-term system resilience.

urope’s energy map is being redrawn in real time. Prices swing, politics shift, technologies leap ahead faster than regulatory systems can keep up. For Serbia — a country still anchored in coal yet aiming for a clean-energy future — the transition demands a rare combination of speed, discipline and long-term vision.

Few institutions sit at the centre of that challenge as squarely as EPS, Serbia’s state power utility. And few executives have inherited a more complex mandate than General Manager Dušan Živković: keep the lights on, decarbonise an entire system, modernise a legacy company, and do it in an era of volatile financing and rising geopolitical pressure. In a conversation with The Region, Živković lays out what it really takes to pull off an energy transition that is both ambitious and realistic. Energy security has become a defining question for Europe. Where does Serbia stand as CBAM, decarbonisation and new market pressures accelerate? In this decade, energy security stopped being an abstract policy goal and became the single most important guarantee of national stability. Serbia is no exception. Our responsibility is twofold: to honour the legacy of those who built this system, and to ensure that 30

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the next generation inherits one that is cleaner, stronger and more resilient. EPS is entering this transition with a clear focus — diversifying supply and deploying new technologies at scale. Decarbonisation and CO₂ pricing will reshape the entire economy, not just the power sector, and our investment decisions reflect that. By upgrading existing assets and building new renewable capacity, we are aligning Serbia with Europe’s long-term climate goals. Our

commitment is simple: by 2030, 45% of Serbia’s energy must come from renewables — and EPS intends to deliver a major share of that shift. oal still dominates Serbia’s enC ergy mix. Renewables are rising. Hydropower sits in between. What does that balance look like over the next decade? The transition will not happen without difficult trade-offs — but it will also

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not happen without bold investment. EU alignment means we need far more green power in the system, which is why EPS is expanding its renewable portfolio faster than ever. This year alone, we are adding 76 MW from new solar and wind facilities. The Petka solar plant is already operating. The 66 MW Kostolac wind power plant is now in trial operation. But the centrepiece is Bistrica — a 650-MW pumped-storage plant that will anchor Serbia’s renewable integration. Without Bistrica, large-scale solar and wind cannot be reliably absorbed; with it, the system becomes stable enough to grow. We are also developing a 1 GW solar project with a strategic partner, including 200 MW of battery storage — one of the most ambitious undertakings in the region. Still, the reality is that coal will remain a transitional baseload source for some years, provided it is modernised. Gas has a strong stabilising role as well. And we believe now is the moment to begin shaping Serbia’s longterm position on nuclear energy. Decisions about the next 30–40 years must be made today. EPS is transforming in parallel — organisationally, financially and operationally — so that by 2030, it operates as a modern, profitable, market-driven utility with corporate governance that matches Europe’s best. he transition carries a massive T price tag. Where will the money come from, and how much support can EPS expect from financial institutions? No utility in the Western Balkans can afford to compromise on security of supply or profitability. The challenge

In a region where every kilowatt carries political, economic and social weight, EPS is not just running a utility — it is attempting to rewrite the energy future of an entire country. Serbia’s transition will not be simple, fast or cheap. But as Živković makes clear, the only unacceptable option is standing still. is to finance the transition while keeping both intact. The answer is diversification — not only of energy sources, but also of funding sources. We need long-term, predictable financing conditions that match the scale of investment demanded by decarbonisation. And we need deeper partnerships with international financial institutions and global technology providers. This is not a one-country job. Decarbonisation requires a tighter alliance between utilities, financiers and innovators. With the right mix of capital and

technology, EPS can secure energy stability for consumers — and position itself as a regional leader of the transition. ow central is regional cooperation H to this vision? Absolutely central. Energy systems do not stop at national borders, and regional projects are no longer a matter of convenience — they are a prerequisite for long-term stability. Half a century ago, Serbia and Romania built Djerdap 1, followed by Djerdap 2 — projects that still power both countries today. That spirit of cooperation must return. New regional megawatts are urgently needed, and building them together is far more efficient than building them alone. The regional electricity market has significant potential. With shared expertise and coordinated investment, regional utilities can become the backbone of energy security for this part of Europe. The Region

YOUR STORY. OUR REGION. GLOBAL REACH. Whether you're launching a bold campaign, amplifying your brand’s voice, or reaching decision-makers across Southeast Europe — Region Agency delivers visibility that moves the needle. Born from The Region magazine, we offer a trusted platform that connects your message to the people shaping the future of the Adria region — and beyond. WHAT WE OFFER: • High-impact visibility in The Region magazine • Strategic digital placements across our website and newsletter • Tailored promotion through exclusive business events • A credible editorial environment that elevates your brand Portonovi is just one of the many who trust us. Let your story be seen, heard — and remembered. BE SEEN. BE KNOWN. BE PART OF THE REGION.  business@region-agency.com region-agency.com

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Precision

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SWITZERLAND’S DISCIPLINE, ADRIA’S DRIVE How Swiss-Serbia public-private partnership is rewriting the growth playbook for Adria’s SMEs

n the Adria region, ambition has never been in short supply — structure has. Few people see that gap more clearly than Aleksandar Goračinov, Director of the SME HUB, Swiss–Serbian public–private partnership between the Swiss Agency for Development and Cooperation (SDC) and ICT Hub, where local companies learn what it truly takes to enter the world’s most demanding supply chains. He argues that the fastest way to unlock growth isn’t only a better product or a bigger market, but the discipline to build processes and organization that endure. This is where Switzerland’s business culture meets Adria’s entrepreneurial fire — and where companies discover whether they are ready for the next decade. hat is the single biggest obstacle W holding back small and midsize companies in the Adria region — and what unlocks their growth fastest? From our experience at SME HUB, the biggest obstacle isn’t just the market — it’s also the lack of clear internal organization structure. Many SMEs grow quickly and energetically, but their organizational processes don’t keep pace. The moment a company tries to enter serious supply chains, it becomes obvious that product quality alone isn’t enough; you need established processes, traceability and a level of predictability that large companies take for granted. What unlocks growth fastest is a concrete roadmap: a clear vision of where the business is going and what standards it must meet. Once an entrepreneur understands what a major buyer expects — and which processes must be in place — trans-

processes function like a Swiss watch. Big companies assume that organizational capabilities are already at the right level. Understanding — and adopting — that expectation is one of the key lessons that leads SMEs toward stable, long-term partnerships.

formation begins immediately. We see this every day at SME HUB: when companies get the right guidance, the speed of change surprises even them. hich lessons from the Swiss busiW ness environment do regional entrepreneurs tend to overlook — especially those critical for entering stable supplier networks? Consistency. In Swiss business culture, every agreement counts. Delivery times, quality, communication, documentation — all of it carries equal weight. In Serbia and the region we have a strong entrepreneurial spirit, but also the habit of solving problems ad hoc. That flexibility helps at the beginning, but not when you step into the orbit of global companies. After years of working both with large corporations and SMEs, I can say that for a supplier, the real differentiator is whether the necessary standards and internal

If you were advising a young founder on how to build a company that can withstand the next decade of change, what would you tell them? Build the system from day one — and minimise improvisation. That means having a clear vision of what you’re striving toward and a strategy for implementing your goals, while staying adaptable. Through SME HUB we see that the fastest progress comes from founders who strengthen their internal organization in parallel with growth. My second piece of advice: treat partnerships as long-term strategic assets. Companies become more resilient when they work with major buyers, meet their standards and gain the chance to learn. Openness, trust and the willingness to adapt to market demands pay off far more in the long run than trying to do everything alone. That’s the path to sustainable growth in a world changing faster than ever.

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Strategy

Japan’s Vision for the Western Balkans Japan’s role in the Western Balkans is no longer an afterthought of diplomacy — it has evolved into a deliberate strategic engagement with economic, political and cultural weight. From innovation and digital transformation to renewable energy, disaster-risk reduction and youth mobility, Japan is steadily deepening its presence across the region. In this fireside conversation, Oliver Lepori, Executive Director of the Japanese Business Alliance in Serbia, sits down with H.E. Akira Imamura, Ambassador of Japan to Serbia, to unpack how Tokyo views the Western Balkans today — and why Japan believes the region’s next chapter offers shared opportunity. This dialogue took place live during the Western Balkans 2030 conference and has been edited for length and clarity.

DIALOGUE Lepori: Ambassador, President Vučić visited Japan recently. How would you describe the significance of that visit? Ambassador Imamura: It was a landmark moment — our most substantial high-level political dialogue since 2018. It reconfirmed Serbia’s central role in regional stability and Japan’s position as a strategic partner of the EU. Prime Minister Ishiba reiterated strong support for Serbia’s EU accession, while President Vučić expressed his backing for Japan’s foreign policy aimed at peace and stability in the world based on the international law and the UN Charter. Economically, the outcomes were concrete. Our governments signed a joint declaration announcing the completion of negotiations on the bilateral investment treaty, which, once in force, will send a powerful signal to Japanese investors. President Vučić also met Japan’s major business federation to discuss cooperation in energy, critical minerals and resilient supply chains. At Expo 2025 Osaka, Serbia’s pavilion attracted more than one million visitors — mostly Japanese — setting an excellent tone for Expo 2027 Bel34

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grade. I hope that we can bring anime, e-sports, music and martial arts to Belgrade.

How Japan Engages the Region olitical dialogue and support for P stability in all six Western Balkan countries. Innovation partnerships, starting in Serbia but designed for regional scalability. Sustainability cooperation, from renewable energy to forest-based disaster risk prevention. Circular-economy projects, including Japan–France collaboration in Belgrade. Talent development, from SME mentoring to nuclear-tech training.

Lepori: Innovation was clearly central during the visit. Where do you see the biggest opportunities? Ambassador Imamura: Our priority is to help Serbia avoid the middle-income trap through innovation. Two important documents were signed, including an agreement between NTT Data and Serbia’s eGovernment Office to support digital transformation and build open, resilient digital public infrastructure. JICA is also working closely with Serbian startups. A couple were invited to Japan to explore collaboration and learn from our innovation ecosystem. Some founders told me they view Japan as an even bigger market than the EU because the fact that Japanese is used by majority of people in Japan makes localization easier. Together with JBAS, we will host Society 5.0 in Novi Sad on 27 November. It’s Japan’s future vision where physical and digital spaces merge to solve social and economic challenges. We will focus on smart cities, smart manufacturing and smart healthcare.

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Lepori: Sustainability is becoming a core pillar in our cooperation. What are the key areas you’re focusing on? Ambassador Imamura: Sustainability for us includes climate action, natural-disaster prevention, environmental protection and the circular economy. We are conducting feasibility studies for major renewable-energy projects and see strong potential in energy-saving technologies — heat pumps produced by a Japanese company in Smederevo are already on the market. We are also starting cooperation in nuclear energy, beginning with training specialists after decades without nuclear infrastructure in Serbia. Next-generation solar technology is another promising field. Japan is ready to share its extensive experience in disaster-risk reduction. Protecting forests to prevent landslides and wildfires — an ecosystem-based approach — is particularly relevant. And in environmental protection, our Japan– France project in Vinča converts waste into electricity and heat, perfectly reflecting the Japanese concept of mottainai — “too valuable to waste.” Lepori: Japan has long supported regional cooperation. How do you see that role evolving? Ambassador Imamura: The late Prime Minister Abe launched our Western Balkans Cooperation Initiative in 2018 with two pillars: support for EU accession and regional cooperation. We believe reconciliation among ethnic groups is the foundation of lasting peace. Through RYCO in Tirana, we run the MIRAI programme, bringing young leaders from all six Western Balkan countries to Japan to meet peers, young business leaders and experience Japanese culture, but also this strengthens mutual connections

Japan in the Western Balkans: At a Glance upporting the EU accession and S promoting regional cooperation through the Western Balkans Cooperation Initiative (launched 2018). Achieving reconciliation and dialogue as the foundation of long-term peace in the region. Developing multi-country tourism routes for Japanese and international visitors. Strengthening youth mobility through the MIRAI programme for all six WB countries. Sharing expertise in disaster-risk reduction across the entire region. among each other while spending time together. Tourism is another practical tool. A JICA expert is developing itineraries that encourage Japanese and global tourists to visit multiple Western Balkan countries in one trip. Lepori: Japan is a strong supporter of Serbia’s EU path. What does that support look like in practice? Ambassador Imamura: It is consistent and strong. Japa-

nese investment in Serbia isn’t only about access to the EU market — it raises the quality of Serbian workforce and develops local talent. JICA’s SME mentoring programme helps small businesses function efficiently within EU-aligned market standards. Environmental alignment is another major contribution. JICA financed Mitsubishi Heavy Industries’ desulfurization facility at the Nikola Tesla power plant in Obrenovac, which now removes 99% of sulfur emissions — a direct benefit for citizens. As for Japan’s new government, Prime Minister Takaichi — Japan’s first woman to hold the office — has moved quickly. She convened a Growth Strategy Council to boost competitiveness in AI, quantum computing, biotechnology and other strategic sectors tied to economic security. On foreign and security policy, Japan will increase defence spending from 1.8% to 2% of GDP. She has stated repeatedly that she carries on the legacy of former Prime Minister Abe. Therefore, I expect his Western Balkan Cooperation initiative - Japan’s support for Serbia’s EU integration and for regional cooperation - to deepen further.

The Region

In Depth

The Region

The Adria Workforce Crunch Has Arrived

The Region

In Depth

he story of the Adria region’s economy in 2025 comes down to a simple truth: growth now depends on finding people, not ideas. What began quietly more than a decade ago — a slow demographic contraction, a steady migration of talent, and a widening mismatch between education and industry — has reached a point where every sector feels the strain. The workforce shortage is no longer a headline; it is the defining condition of doing business.

A Shrinking Base

Across Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, North Macedonia, and Albania, the pattern is remarkably consistent: aging populations, low birth rates, and a persistent outflow of young workers toward Western Europe. Germany, Austria, Switzerland, and the Nordics remain the strongest magnets, pulling in engineers, nurses, technicians, IT profiles, tradespeople, and hospitality workers. The migration that

What’s Driving the Crunch he region’s working-age T population is shrinking. Migration continues to drain high-skilled talent. Businesses report difficulties filling roles in IT, engineering, healthcare, hospitality and manufacturing. Competition for skilled workers now comes not only from the EU — but from within Adria itself. once hit only the youngest has broadened. Mid-career professionals — people with families, experience, and stability — are leaving too. 38

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Every country in the region has seen the effects. Factories adjust production targets because they cannot staff shifts. Hotels open with half the workers they planned for. Restaurants quietly reduce menus. Construction schedules bend around the availability of labour. Tech companies chase the same limited pool

The Numbers CEOs Are Watching lovenia, Croatia and Serbia all S report historically low unemployment rates. Vacancy rates in critical sectors are at multi-year highs. Wages in high-skill occupations are rising faster than regional inflation. Companies across Adria say labour shortages are now a top business risk. of developers. And the healthcare sector, already stretched, sees little relief as medical professionals continue moving westward for better pay and conditions.

Where the Workers Are Coming From

As the local workforce thins, the region has shifted into a new labour reality: companies now rely on foreign workers to keep economic activity moving. A decade ago, this would have been seen as extraordinary. Today it is routine. Workers from the Philippines, India, Nepal, Bangladesh, Sri Lanka, and increasing-

ly parts of Africa fill essential roles in retail, caregiving, tourism, logistics, manufacturing, and construction. In Croatia and Slovenia, entire tourism seasons depend on them. Serbia’s construction and services sectors increasingly do as well. This growing dependency has created its own set of pressures. Regulation often lags behind demand. Housing shortages complicate integration. Social acceptance varies widely. Yet without this inflow,

Where the Pressure Is Highest I T & digital — talent competition with EU capitals Engineering & manufacturing — German investors expanding local demand Healthcare — accelerated outflow to Western Europe Hospitality & tourism — chronic seasonal shortages Construction & infrastructure — major regional projects hitting labour constraints some industries simply would not function. The region’s economies are quietly being held together by people who, until recently, were never part of the workforce conversation.

In Depth

now behave as if people matter, because they finally understand that losing them costs more than keeping them.

The Shape of the Future

Automation Becomes Survival

Faced with limited labour, companies are automating not out of ambition but necessity. This is not the futuristic robotics narrative often imagined. It is far more pragmatic. Manufacturers are bringing in collaborative robots to maintain output with fewer workers. Retail chains are rolling out self-checkout systems. Logistics firms digitise and automate tracking and warehouse processes. Banks and telecoms quietly streamline back-office operations using software automation and AI. In professional services, artificial intel-

The Shifting Workforce Map Remote work is enabling Adria talent to work globally from home. C ompanies are beginning to source talent region-wide, not just locally. Vocational and dual-education models are expanding, but not fast enough. A utomation is rising — but nowhere near compensating for workforce loss. ligence is eroding the stack of repetitive junior tasks that used to occupy teams of young employees.

The shift isn’t about replacing people. It’s about filling the gaps left by those who have already disappeared from the

What Employers Are Doing ffering hybrid/remote O arrangements to widen the pool Recruiting across borders inside Adria Raising salaries for mid-senior roles Investing in in-house training and upskilling Partnering with universities to secure early talent labour market. The region is not entering a jobless future; it is entering a skills-dependent one.

Corporate Culture Under Pressure

The workforce crunch has forced companies to rethink how they treat their employees. Flexibility, once a novelty, is now standard. Hybrid work is no longer an experiment but an expectation. Salaries are rising, especially in sectors facing the steepest shortages. Benefits packages are expanding. Professional development, internal mobility, and clearer career paths — long-standing weaknesses in the region — are suddenly taken seriously. Some of these changes were overdue. Others are reactive. But together they signal a quiet cultural shift: employers

Nothing suggests that 2026 will bring relief. Demographics won’t reverse. Migration won’t stop. Education systems won’t rebalance overnight. And the demand for skilled workers — engineers, nurses, technicians, data specialists, and experienced tradespeople — will only intensify. Yet the picture is not bleak. The labour shortage is also forcing innovation. It pushes companies to automate, to professionalise, to invest in retention, and to globalise their talent strategies. It forces governments to modernise immigration systems and support industries that can anchor long-term growth. The Adria region has entered a new economic era — one defined not by the availability of money, but by the availabil-

The Business Outlook Executives expect the workforce crunch to intensify in 2026–2028. Talent availability is now a decisive factor for foreign investors. Companies that can attract, retain and grow skilled workers will dominate regional competitiveness.

ity of people. For the first time in a generation, the battle for talent has become the central force shaping the region’s future. And for businesses ready to adapt, that pressure may prove to be the most transformative force of all. The Region

Sentiment

The Region

Adria’s Corporate Mood for 2026 Why Executives Are Optimistic — Cautiously

he region’s CEOs enter 2026 with a familiar tension: enough growth to stay confident, not enough clarity to feel comfortable. Inflation has cooled, financing costs have stabilised, and export orders are holding up better than expected. Yet boardrooms remain anchored in realism. The Adria business climate is neither bullish nor bleak — it’s a long, strategic inhale before the next move. Across industries, executives describe the same rhythm: growth is possible, but only with discipline. Companies are planning for moderate expansion, not a leap. Margins are repairing slowly, and CFOs are running their budgets like precision instruments — phased hiring, staggered investments, and an obsessive focus on productivity. No one is betting on a breakout year; everyone is planning for one that must be managed carefully. What keeps ambition in check is not demand but workforce pressure. Talent shortages have replaced inflation as the region’s dominant head-

ache. Manufacturers can’t staff lines, IT firms can’t scale teams, and logistics companies admit they are hiring faster than they are training. Salary pressure persists, and the magnetism of EU labour markets is stronger than ever. The unspoken truth is that growth in 2026 will be determined less by capital and more by who can hold on to the people they need. Regulatory uncertainty adds another layer of caution. Executives across the region are delaying long-cycle decisions until they understand where the EU accession process is heading, how rule-of-law reforms will evolve, and whether taxation, energy pricing, and investment conditions will stabilise. The 2025 Enlargement Reports are being read not as diplomatic texts but as market signals. Businesses don’t fear risk — they fear unpredictability — and in many capitals, the regulatory horizon still feels foggy. Yet this is not a pessimistic moment. If anything, the region’s corporate mindset has become more out-

ward-looking than at any point in the past decade. Companies from Ljubljana to Tirana are entering new foreign markets, forming cross-border partnerships, and competing for the same clients as firms twice their size. The appetite for international expansion is real, even if the pace is measured. Foreign investors, meanwhile, increasingly describe Adria as a geography “with underpriced potential” — a rare blend of talent, strategic location and improving infrastructure. Sentiment surveys aside, the real mood is a quiet, focused determination. Not exuberant. Not fearful. Just steady — sharpened by the lessons of the last three years and shaped by the awareness that the next phase of growth will demand more resilience than luck. And the decision-makers know it. Across boardrooms, one line echoes: 2026 won’t be the year everything changes — but it will be the year companies decide who they want to become.

The Region

Overview

EU ACCESSION 2025

What It Really Means for Adria’s Business Climate

he EU’s 2025 Enlargement Reports aren’t just political documents — they’re market signals. They shape investor confidence, regulatory timelines, cross-border financing, and the future cost of doing business in the region. Some markets are accelerating toward EU standards, others are slowing, and a few are trapped in political stop-andgo. Here’s what business leaders need to know, country by country.

lbania A — Regional Climber, Getting More Investable Albania remains one of the region’s most promising markets. The justice reform continues to clean up the institutional environment, although high-level corruption cases still lag. The opening of all negotiation clusters positions Albania firmly on the EU track, increasing longterm predictability for investors. Brussels warns that administrative capacity must improve — meaning regulatory implementation could be uneven in the short term. The fundamentals are solid: growth is steady, EU alignment is high, and the reform agenda is alive. For companies, Albania is becoming a safer medium-term bet, but with bureaucratic bottlenecks still to watch. 42

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Montenegro — Strong EU Trajectory, Weak Political Stability Montenegro remains technically closest to EU membership, which helps anchor investor sentiment. However, political instability and slow institutional reform continue to generate uncertainty. Rule-oflaw gaps and fragile anti-corruption structures raise risk premiums, especially for long-horizon investments. The economy is vulnerable to shocks due to its dependence on tourism, but EU-aligned policies support financial-sector resilience. Brussels’ message for business is clear: Montenegro’s direction is positive, but volatility in governance means due diligence must stay tight.

erbia S — Europe’s Biggest Market, Stuck in Political Traffic Serbia offers scale and strong infrastructure, but the 2025 report signals rising political and regulatory risk. Weakening democratic standards and limited progress in the rule of law increase uncertainty for investors who depend on fair competition and stable institutions. Foreign-policy misalignment with the EU widens the strategic gap, potentially slowing integration into European value

chains. No new clusters have opened since 2021 — a signal that Serbia’s EU pace is flat. For businesses, this means opportunity still exists, but with growing caution around governance, predictability and geopolitical positioning.

orth Macedonia N — Strong Fundamentals, Blocked Momentum North Macedonia has done much of the institutional homework that investors like: foreign-policy alignment, stable macro-framework, and completed EU screening. But political blockages outside its control — primarily the dispute with Bulgaria — freeze its accession progress. Regulatory reforms continue, but the psychological factor matters: businesses see a country ready to move, stuck in an EU waiting room. The economy remains moderately prepared with solid human capital, but talent emigration and slow productivity gains limit scale. For investors, the fundamentals are still favourable — but the timeline is uncertain.

osnia and Herzegovina B — High Potential, Systemic Risk Bosnia and Herzegovina shows small steps forward but remains the region’s

most unpredictable market. Political tensions, institutional fragmentation and a chronically weak judiciary are the core risks. While reforms like the Frontex agreement and digital advancements signal movement, the business environment remains constrained by slow decision-making, overlapping competences and unstable governance. EU negotia-

young, dynamic workforce. Visa liberalisation boosts mobility and business ties. The EU notes progress in judicial and anti-corruption frameworks, but implementation gaps persist, including limited track records in high-profile cases. Economic growth is strong yet heavily reliant on remittances, and unemployment remains high. The main stra-

“Reforms are progressing — but implementation is the real test.” EU Enlargement Report 2025

tions could open — but only once major reforms are implemented. For investors, this is still a high-opportunity, high-risk environment requiring patience and strong local partnerships.

osovo* K — Dynamic Market, Politically Limited Path Kosovo* has some of the strongest pro-EU sentiment in the region and a

tegic constraint is political: Kosovo’s EU path depends on the dialogue with Serbia and recognition obstacles within the EU. For businesses, Kosovo* offers energy and growth, but structural risk remains significant. *This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on Kosovo’s declaration of independence.

The Region

Big Question

Who Will Design Our Future?

by Maja Lalić

very decision we make—from the layout of our living room to the design of national policies—shapes the life we will inhabit tomorrow. Design is not just a product, logo, or building, but an act of disciplined imagination: the ability to rethink systems, relationships, experiences, and the rules that govern society. It is a way of making choices that determine both our immediate reality and our long-term future. EU data clearly shows that countries investing in design and innovation achieve 44

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faster productivity growth and measurable gains in competitiveness, innovation capacity, and ecological performance -demonstrating that design methodologies are among the most effective tools for addressing complex societal challenges in the green transition and social innovation. And where does that leave us? In a region where the creative sector is chronically undervalued and where young talent often leaves in search of better opportunities, it is

difficult to speak of any strategic approach to design as a driver of development. Serbia is a particularly fragile example: design is still marginal in policymaking, and universities—rather than being supported as laboratories of innovation—often operate under pressures that weaken their essential mission to educate the generations who will reimagine our society. Instead of using design to solve problems, our institutions too often reduce it to a decorative tool, disconnected from public interest.

Of course, none of this is new. Design has always been entangled with political and financial power. Architecture offers the clearest example, historically positioned at the crossroads of ambition and capital—captured incisively in Dejan Sudjić’s The Edifice Complex, which describes the impulse of powerful actors to immortalize themselves through buildings that project authority more than they serve people. But today, when societies urgently need designers to take greater responsibility and guide clients toward more socially grounded goals, the creative sector faces a troubling counter-trend: design-washing—when prestige is used to give problematic projects a veneer of respectability. In many global contexts, celebrated studios accept commissions that prioritize spectacle over community, sidelining transparency, fairness, and environmental consideration. Unfortunately, similar patterns occasionally appear in the Balkans as well, where public processes are sometimes reduced to formality, participation is symbolic, and design becomes a mask for decisions that fail to serve citizens. This is why one principle must remain non-negotiable: good design requires good intentions. As in any profession, ethics draw the boundary between harmful and beneficial outcomes. A value system that places human and environmental dignity—not just profit—at the center of the brief is the only sustainable foundation for meaningful work.

Yet there is another chapter to this story—the reason I remain committed to this profession: the transformative power of design when it serves the community. When processes become inclusive rather than imposed from above, we witness changes that far exceed aesthetics and cannot be measured by glossy renderings alone. Denmark and Finland use national design strategies to improve public services, healthcare, and policymaking—designers sit at the table alongside lawyers, economists, and urban planners. Paris dramatically reduced congestion by creating extensive cycling infrastructure and reclaiming public space for people. Ljubljana stands out as the region’s pioneer of sustainable urbanism: from pedestrianizing the riverfront to large-scale greening and integrated mobility systems, it shows how small countries can become major examples. In these contexts, design is not a luxury or decoration for investor-driven ambitions. It is treated as a public good—a method for governing complexity: improving public services, strengthening competitiveness, reducing environmental impact, and building more inclusive communities. These decisions directly affect well-being. Happiness Index rankings consistently place countries with strong design governance—Denmark, Finland, Iceland, the Netherlands—at the top. Their success is inseparable from design choices: accessible public spaces, human-scale housing, transparent planning, and participatory governance. Happiness, in other words, is often a design outcome.

IS IT TOO AMBITIOUS TO DREAM THE SAME FOR THE BALKANS? Despite systemic obstacles, the Balkans possess an extraordinary strength: young people whose creativity and courage defy circumstance. Our designers, architects, engineers, and artists generate imaginative ideas with far fewer resources than their peers elsewhere. Through platforms like Mikser Festival, Young Balkan Designers, and Next Gen Design, I see their urgency to address injustice, their intelligence in crafting solutions, and their refusal to accept inherited failures. The region’s creative potential is real and measurable. What is missing is an environment that recognizes this potential as a national asset rather than a marginal sector. The responsibility for this gap lies with institutions that undervalue autonomy, underinvest in education, and overlook creativity as a strategic resource. If Balkan countries want a sustainable and humane future, they must begin treating design as a tool for societal progress— supporting education, encouraging experimentation, and ensuring that public projects reflect public interest. Because whether we acknowledge it or not, every policy, every street, every building, every curriculum, every investment choice is a form of design. And through those choices, we shape— quite literally—the future we will all live in.

The Region

Expansion

NELT AT FULL SPEED Inside the Regional Giant Redefining Logistics, Distribution and Growth

tending a performance curve that has made Nelt one of the region’s most resilient private business systems. The momentum is no accident. It is the result of a long-term investment cycle — Uspon 2030 — a capital-heavy plan designed to rebuild the company’s infrastructure, expand capacity, and hardwire digitalisation into every layer of the business. “Despite external challenges, we achieved a consolidated revenue increase of 9% compared to 2024,” said Darko Lukić, Nelt Group’s CEO. It’s a concise line, delivered without theatrics, but it captures a larger truth: Nelt is growing while many are merely coping.

Regional Powerhouse That Keeps A Stretching Its Borders

or a company spread across three continents and operating in some of the most fragmented markets in Europe and Africa, predictability is a rare commodity. Yet in 2025 — a year shaped by rising costs, shifting consumer patterns, and persistent logistical pressures — Nelt Group delivered something unusually steady: growth. The company expects to close the year at €1.5 billion in revenue, up 9% from 2024, ex-

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Nelt’s footprint today is far wider than the traditional definition of the Adria region. Serbia — its largest and most complex market — crossed the €1 billion revenue mark. The broader Adria zone, spanning ex-YU markets, Albania and Romania, posted a 16% surge, showing that regional diversification is no longer just risk management, but strategic opportunity. Africa, often the most volatile frontier for European companies, delivered 11% growth, reinforcing that Nelt’s long-term presence in Angola, Mozambique and Zambia is not an experiment but a stable expansion path. Recognition followed scale: SEE TOP 100, a benchmark list of major companies in Southeast Europe, once again placed Nelt Serbia among the largest, making it the only domestically owned private company in its category. In a region dominated by multinational structures, Nelt’s ability to hold that position signals not luck, but institutional stamina.

Building the Infrastructure of Tomorrow

If Nelt’s 2025 had a headline theme, it would be this: build first, benefit later. More than €30 million of the €400 million planned investment cycle has already been deployed this year — a decisive push into assets that will define the company’s next decade. New, modern logistics facilities opened in Albania and Bosnia and Herzegovina, strengthening two critical distribution corridors. In Zambia, construction began on a business-distribution hub expected to serve as a long-term strategic anchor in Sub-Saharan logistics. Inside the Baby Food Factory, newly installed production lines expanded capacity, enabling entry into new product categories and supporting a portfolio that continues to deepen its regional relevance. Digitalisation — once a support function — has become a structural pillar. Platforms like SAP SuccessFactors and InfoNelt are reshaping workflow transparency, employee communication, safety compliance and decision-making. These are not glamorous investments, but they are the ones that separate companies built for the next decade from those built for the previous one.

Brands That Hold Their Ground — and Expand It

Across Nelt’s brand ecosystem — Baby Food Factory, Neoplanta and Chips Way — revenues rose 7%, accompanied by increased market share. The portfolio strengthened further with new distribution and logistics partners, including JTI (Albania), Beiersdorf (Zambia), Mondelez (Angola), Revlon (Serbia) and Bambi (North Macedonia). For a company that operates across categories where consumer preferences and supply chains shift quickly, securing and integrating global principals at this scale remains one of its most durable competitive advantages.

People as a Strategic Investment — Not a Corporate Line

Many companies talk about investing in people. Nelt quantifies it. In 2025 alone:

€6 million went into salary increases €1.5 million into additional employee benefits M ore than 5,500 hours into leadership training, skills development and capability building In a system that spans Europe and Africa, talent retention and internal cohesion matter as much as capital expenditure. Digital HR platforms now provide clearer communication, faster processes and cleaner organisational structure — features that directly influence why employees stay, evolve and contribute. Nelt’s internal philosophy is straightforward: infrastructure, technology and portfolio strength mean little without a workforce capable of using them well.

The Road Ahead

As the company enters the final chapter of 2025, it stands as one of the rare regional players capable of shaping — not just responding to — the future of logistics, distribution and consumer goods in Southeast Europe. The combination of infrastructure modernisation, geographic expansion, brand diversification and investment in people forms a strategic architecture that feels designed not for annual reporting, but for longterm positioning. Uspon 2030 will determine how far this trajectory can reach. But the signals are already clear. In a year when many companies tightened their horizons, Nelt expanded its own — with discipline, with capital, and with the operational confidence of a system preparing for its next leap.

The Region

Faultline

The Day Serbia Hit the Energy Wall

Washington said no. Moscow won’t sell. And now Serbia’s biggest refinery is going dark.

or years, Serbia treated its energy sector as a diplomatic buffer — a carefully maintained grey zone between East and West where business could operate as if geopolitics were optional. NIS, the oil company majority-owned by Russia’s Gazprom Neft, sat at the centre of that arrangement: profitable, strategically essential, and politically inconvenient in equal measure.

That arrangement has now collapsed. Standing before reporters after an emergency meeting on energy security, President Aleksandar Vučić confirmed what his government had hoped would never have to be said publicly: the United States has refused to issue the licence that would allow NIS to continue supplying crude oil to its refinery in Pančevo. Without that licence, Serbia’s only refinery — the backbone of the country’s fuel system — has begun shutting down crude processing. “We expected a positive decision, but we didn’t get one,” Vučić said. For a leader who rarely concedes strategic setbacks, the statement carried the weight of an unspoken admission: Serbia’s long-standing balancing act has reached its breaking point. Complicating the picture further, Russia has no intention of selling its stake in NIS. “They don’t want to sell, and that is their right,” Vučić said — a diplomatic way of ac48

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knowledging that Moscow still considers NIS one of its last meaningful footholds in the Balkans. What once looked like a commercial partnership has hardened into a geopolitical trap. The consequences are no longer theoretical. With no licence in hand, the Pančevo refinery has entered shutdown procedures. Keeping the system in warm circulation costs roughly €370,000 per day. A full halt carries far broader risks — not just for the company, but for the state. Looming over the entire process is the threat few officials are willing to spell out openly: secondary sanctions. Any bank that continues to process payments for NIS, including the National Bank of Serbia, could face penalties. For a country whose investment rating depends on financial credibility, the danger is existential. This is no longer a story about one oil company. It is a story about a state caught in the tightening grip of geopolitical realignment. Serbia has temporarily guaranteed payment operations for NIS to allow salaries and supplier obligations to be met, buying days — not weeks — of breathing room. Beyond that, payment flows may be frozen. If that happens, Serbia will be forced to cut NIS — and Lukoil — off from state fuel reserves after 13 December. The logic is ruthless but unmistakable: sanctioned Russian-owned entities will not be allowed to operate freely inside a country that claims a European future. Serbia has stockpiled enough fuel to last into late January. Yet nearly half of all retail fuel sales flow through NIS stations, many located on the country’s most important highways and urban corridors. Serbia may have

fuel. It may not have enough access points to distribute it efficiently. That quiet logistical strain is already surfacing beneath the political drama. Energy policy rarely delivers moments of public clarity. This one has. Serbia’s strategic ambiguity — its attempt to remain close to Europe without severing ties to Moscow — is fracturing under pressure from both sides. Washington has drawn a firm line. Moscow refuses to move. And Serbia is left standing on a shrinking patch of geopolitical ground. Vučić closed his remarks with a sentence that revealed the anxiety beneath the technical language: “We will measure day by day. We will not let the banking system collapse.” Crises in the Balkans often unfold slowly, through drawn-out negotiations and half-measures. This one arrived in a single decision — and it will define Serbia’s next decade.

ADRIA & THE WORLD

How Adria Navigates a Turbulent Global Moment

The Region

Feature

Austria’s Enduring Influence in Adria How a small Alpine nation still shapes the sea it once ruled BY IVANA BABIĆ Evening settles over Rijeka’s port, cranes glinting against a violet horizon. Freight trains slide down from the Alps, bearing goods stamped with Austrian precision — steel, timber, machinery, pharmaceuticals. A century after the Habsburg Empire’s fall, the rhythm of the Adriatic still echoes Vienna’s pulse. Austria no longer owns a coastline. Yet from Koper to Kotor, its presence in the Adria region is everywhere — in capital flows,

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tourism patterns, energy grids, and EU diplomacy. What once was empire is now ecosystem.

From Empire to Enterprise Before 1918, the Austro-Hungarian monarchy’s lifeline to the world was the port of Trieste, the empire’s maritime jewel. But it wasn’t alone. Rijeka, Split, and Pula were integral to an imperi-

al network that connected Vienna to the sea and beyond. Those trade arteries never fully closed — they just changed form. Today, Austrian companies quietly dominate parts of the region’s economy. More than 700 Austrian firms operate in Croatia alone. Erste Group and Raiffeisen Bank International finance much of the region’s credit market. OMV, Austria’s energy major, co-owns pipelines and distribution networks threading from the Balkans to the Adriatic coast. “History built the infrastructure,” says a regional economist in Ljubljana. “Austria simply kept using it.”

The Soft Power of Familiarity While other powers arrive with bold investments — China with ports, the Gulf states with real estate — Austria’s influence flows through trust and habit. Generations of engineers, bankers, and entrepreneurs from the Adria region studied in Graz or Vienna. Many still do. Flights between Zagreb, Belgrade, and Vienna are packed with business travellers rather than tourists. Diplomatically, Austria is among the most consistent advocates for EU enlargement in Southeast Europe. It has framed the region’s stability not as charity, but as strategic continuity — an investment in its own security. “If the Balkans drift, Austria feels the tremor first,” an EU official in Brussels tells The Region. This quiet conviction gives Austria leverage that goes beyond its size. It mediates where others preach, connects where others compete.

The Lasting Map On paper, Austria is landlocked. In practice, it remains a maritime nation — not of territory, but of ties. As cargo ships depart Koper for global ports and investment flows ripple through Zagreb, Sarajevo, and Belgrade, one truth endures: the Habsburgs may have vanished, but Vienna never really left the sea.

AUSTRIA IN ADRIA — A CENTURY OF CONTINUITY 1857 — The Iron Path to the Sea The Southern Railway connects Vienna to Trieste, turning the Adriatic into the empire’s commercial artery. 1890s — The Austrian Riviera Blooms Opatija, Piran and Pula flourish as seaside resorts for imperial elites — a blend of order, architecture, and leisure that still defines the coast. 1918 — Empire Ends, Ties Remain The Habsburg monarchy collapses, but trade, language, and infrastructure keep Vienna linked to the new Yugoslav states. 1978 — The Alps–Adriatic Community Forms A pioneering cross-border framework linking Austrian, Slovenian, and Croatian regions — decades before the EU’s own cohesion policy. 1990s — The Banking Expansion As Yugoslavia disintegrates, Austrian banks fill the void. Erste, Raiffeisen, and Hypo Alpe-Adria (later Addiko) become financial pillars of the region’s transition. 2020s — Green Capital and Connectivity Austria leads investment in renewable energy, digital infrastructure, and EU pre-accession projects across the Adria economies.

Echoes of the Riviera In Opatija’s seaside promenades and Piran’s pastel balconies, the ghosts of the old Austrian Riviera still linger. The grand hotels that once hosted Habsburg nobility are now boutique resorts attracting a new class of Central European travellers. Even the rituals of leisure — coffee at four, a morning paper in German, a fondness for Strauss over espresso — feel like soft imprints of empire turned culture. Tourism boards across the coast now market that shared legacy not as nostalgia, but as narrative: Austria and the Adriatic as one continuous story of refinement, order, and connection.

Vienna Museum’s 2013 exhibition “The Austrian Riviera: Vienna Discovers the Sea” reflected how deeply the empire’s Adriatic dream endures in Austrian memory.

A Modern Frontier of Cooperation From the Alps-Adriatic Alliance — a cross-border framework linking Austria, Slovenia, and Croatia — to joint green-energy corridors and cultural networks, Vienna remains a gravitational centre for regional collaboration. Austrian development banks fund renewable projects in Montenegro; think-tanks in Graz host climate dialogues with North Macedonian researchers. The symbolism matters. Austria doesn’t need to redraw borders to extend influence. It builds partnerships instead of provinces — and in doing so, keeps the map of Central Europe quietly tilted toward itself.

AUSTRIAN FOOTPRINT TODAY €4.5 billion — Austrian FDI stock in Adria region (2024 est.) 700+ — Austrian companies operating in Croatia 2,000+ — Students from Adria countries in Austrian universities each year 3 major banks — Erste, Raiffeisen, Addiko — anchor regional credit markets Top sectors: Energy, banking, construction, tourism, logistics Key projects: Belgrade–Bar railway modernisation, solar plants in Bosnia, coastal tourism ventures in Croatia and Montenegro

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Strategic Calm

Austria and Croatia Partners in Progress Gerhard Schlattl, Director, Advantage Austria Croatia

ew bilateral business relationships in Central Europe are as steady — or as full of momentum — as that between Austria and Croatia. From energy and infrastructure to advanced manufacturing and tourism, the two economies are woven together by centuries of exchange and a new era of mutual investment. Austria remains among Croatia’s leading investors, while Croatian companies are finding growing success as suppliers and partners in the Austrian market. At the centre of this dynamic stands Advantage Austria, the country’s official trade promotion agency, whose mission is to connect, advise and strengthen Austrian enterprises abroad. In this conversation, Gerhard Schlattl, Director at Advantage Austria Croatia, reflects on current trends, investment flows, and the opportunities driving the next chapter of Austrian–Croatian cooperation. Austria and Croatia have long been close economic partners. How would you describe the current state of bilateral trade, and which sectors are showing the most dynamic growth this year? In terms of trade in goods, Austria currently exports goods worth around €2 billion to Croatia, while Croatian exports to Austria total approximately €1 billion. Put differently, Austria exports to Croatia twice as much as Croatia does to Austria. There was quite a spike in Austrian exports beginning in 2021, reflecting renewed business confidence and deepening sectoral ties. 52

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Gerhard Schlattl, Director of Advantage Austria Croatia

When it comes to trade in services, however, the picture is reversed — largely because so many Austrians love spending their vacations in Croatia. Tourism continues to play a major role in balancing our overall trade

for Austria to help strengthen Croatia’s export capacity and balance trade flows? There are numerous Austrian foreign direct investments in Croatia, including production facilities, many of

indirectly supporting Croatian exports to Austria. Over the past two years in Croatia, I have met a remarkable number of highly impressive Croatian firms — particularly in the pharmaceutical industry, metal processing, and

AUSTRIA–CROATIA TRADE & INVESTMENT SNAPSHOT

€2 bn

Value of Austrian exports to Croatia (2024)

€1 bn

Value of Croatian exports to Austria (2024)

800+

Austrian companies active in Croatia

€671 m

Austrian FDI inflow to Croatia in 2023

Top 3

Austria’s rank among foreign investors in Croatia

exchange and in maintaining Croatia’s strong service-sector surplus. Croatia’s trade gap continues to widen despite export growth. From your perspective, where do you see room

which are currently expanding their capacities. This is one clear way to help improve the trade balance. Secondly, our mission at Advantage Austria is to connect Austrian companies with Croatian suppliers, thereby

€24 bn vs €43 bn

Croatia’s total exports vs imports in 2024

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Strategic Calm

communication technologies. Their internationalisation efforts are accelerating, and I am convinced that Croatia’s export potential will grow substantially in the coming years. Advantage Austria has positioned renewable energy, smart infrastructure, and environmental technology as priority sectors. Which of these areas do you expect to define the next wave of Austrian investment in Croatia? Right now, we see very strong investor interest in renewable energy, especially in photovoltaic projects. These investments depend heavily on the regulatory framework in Croatia, which determines their pace and scale. Our role at Advantage Austria Croatia is therefore not only to promote opportunities but also to help improve investment conditions. We work closely with Croatian public institutions to highlight the needs and challenges Austrian investors face, contributing to a more predictable and attractive framework for green investment. Nearshoring remains a major regional trend. How competitive is Croatia compared to its neighbours when Austrian or Central European companies seek to relocate production closer to home? From our perspective, Croatia is becoming increasingly competitive as a nearshoring partner. Prices are, of course, important, but other factors are equally — if not more — decisive. 54

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ship, and its proximity to Austria all make it a natural nearshoring destination. These factors together create a strong logistical and regulatory advantage, fostering trust and longterm cooperation between Croatian manufacturers and Austrian partners.

Our job at Advantage Austria is to connect Austrian companies with Croatian suppliers Austrian companies expect the highest quality standards from their suppliers, as well as reliability in delivery schedules. Croatia’s excellent road infrastructure, its EU and Schengen member-

Many investors point to workforce shortages as their biggest challenge. What can be done to make the Croatian labour market more attractive and sustainable for foreign investors? In the production sector, one clear trend is automation. Austrian companies that have recently expanded their production facilities in Croatia tell us they are investing heavily in high-end machinery and equipment to increase efficiency and reduce dependency on scarce labour. In the services sector, however, success depends more on the overall package employers offer potential employees — from working conditions to career growth opportunities. At Advantage Austria Croatia, we also support Austrian companies through an initiative called #BrainRegain. It highlights employees who have returned to Croatia after working abroad, sharing their personal stories and motivations. It is both a talent-return and employer-branding initiative that helps Austrian investors in Croatia attract skilled professionals while strengthening the domestic talent pool. Green transition is at the heart of Europe’s growth agenda. How ready is

Strategic Calm

Croatia’s regulatory and financial environment to attract Austrian companies investing in renewable and low-carbon technologies? The regulatory framework is absolutely essential when it comes to attracting Austrian investment in renewable technologies. Austrian companies are already active in solar, wind, and gas projects across Croatia. Key issues often arise in areas such as grid connection, costs, and permits. These procedures should ideally be handled swiftly and transparently to maintain investor confidence and momentum. At Advantage Austria, we regularly assist Austrian companies in clarifying such obstacles in close partnership with the relevant Croatian authorities. The goal is to ensure that administrative procedures support — rather than slow down — the green transition. Looking ahead, what will be your key priorities at Advantage Austria in the coming years to deepen Austrian– Croatian economic cooperation? Today, more than 800 Austrian companies operate in Croatia through their own legal entities, covering virtually every sector — from production and services to retail and technolo-

ADVANTAGE AUSTRIA Zagreb team at the organisation’s headquarters

gy. They include large corporations, SMEs, and start-ups, all contributing to the strength of our bilateral ties. Because our business community is so diverse, Advantage Austria must likewise address all major segments. In the years ahead, we will continue to focus on fields such as tourism and hospitality, med-tech, retail, consumer goods, food and beverages, mobility, infrastructure, railway, logistics, se-

TOP SOURCE MARKETS, 2024 Tourism remains a vital bridge between the two economies. Germany ranks first as the key travel market for both Austria and Croatia, while Austrians consistently place among Croatia’s top three visitor groups — a reminder that business links are often strengthened by human and cultural connections.

curity, water, wastewater, and municipal services. But above all, our work is about connecting people. It’s a people’s business, to put it simply. We see ourselves as a neutral sparring partner and consultant for Austrian companies, identifying the right contacts and opportunities at the right time. Ideally, we know the right person — or at least the person who knows the right one. In doing so, we help perfect the EU internal market by bringing Austrian and Croatian companies closer together — and by ensuring that this partnership continues to grow stronger, smarter, and more resilient with each passing year. The Region

Endurance

THE QUIET POWERHOUSE OF EUROPE

How a Central European industrial leader is quietly building global scale

The foundation of that strategy lies in transformation. Over the past several years, KONČAR has redefined how it operates, moving from a primarily production-focused model toward one centred on advanced engineering, integrated solutions and long-cycle infrastructure projects. The company is closing its sixth consecutive year of record performance, a trajectory that reflects not only market demand, but the cumulative effect of sustained internal change.

Gordan Kolak,

KONČAR’s President of the Management Board

or much of its history, KONČAR was seen as a national industrial pillar, closely tied to domestic infrastructure and regional demand. Today, the company is in the midst of a far larger transition - one that is repositioning it as a technology-driven, export-oriented industrial group with ambitions well beyond its home market. By 2026, KONČAR Group plans to generate revenues exceeding €1.4 billion, with exports accounting for more than seventy percent of total income. At the same time, its order backlog is projected to surpass €2.5 billion by the end of this year, offering an unusual degree of visibility in an industry where uncertainty has become the norm. These figures are not the result of a sudden upswing, but of a long-term strategy built on investment, technological depth and international execution.

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Central to this shift is a major investment cycle. In 2026 alone, planned capital expenditure will exceed €140 million, directed toward modernising production facilities, strengthening technological capabilities and accelerating digitalisation across the Group. These investments are designed to support increasingly complex projects in energy and transport - sectors where reliability, precision and long-term performance matter as much as price. Europe remains KONČAR’s primary arena. The European Union accounts for the majority of its export revenues, with Germany, Sweden, the Netherlands and Norway among its most significant markets. Operating successfully in these countries has required meeting some of the world’s most demanding technical standards, as well as adapting to procurement processes that reward consistency and credibility over time. That experience has reshaped the company’s approach to global expansion. While Europe continues to anchor the business, KONČAR is steadily broadening its international foot-

print. By strengthening its presence on additional global markets, KONČAR is diversifying its portfolio and reinforcing its position as a dependable industrial partner capable of delivering sophisticated systems and longterm solutions. The emphasis is not on rapid geographic spread, but on building relevance where technological competence is the primary currency. Investment, however, extends beyond physical assets. KONČAR has placed growing emphasis on developing human capital, recognising that advanced industrial systems are ultimately designed, built and maintained by people. Strengthening technical expertise, digital skills and project management capabilities has become a strategic priority, underpinning both innovation and execution across the organisation. “KONČAR today operates as a strong, technology-oriented industrial system with clearly defined longterm objectives,” says Gordan Kolak, President of the Management Board. “Our strategy is based on continuous investment in production and technological capacities, digitalisation and sustainable solutions, with a strong focus on international markets. Partnerships and the development of competencies are central to ensuring stable growth and long-term competitiveness on a global scale.” As the company enters a new business year, its focus remains firmly on endurance rather than acceleration for its own sake. Further strengthening of export capacity, continued investment exceeding €140 million and the execution of a growing pipeline of contracted projects are all part of a model designed to deliver stability alongside growth.

At a Glance POWERING GROWTH €1.4bn+ planned revenues in 2026 70% of sales from exports €2.5bn+ projected order backlog by the end of 2025 €140m+ planned capital investment EU as the core market, led by Germany, Sweden, the Netherlands and Norway

In a region often associated with cost-driven manufacturing, KONČAR’s evolution points to a different path - one based on value creation, technological depth and long-term thinking. By exporting complex solutions rather than simple products, the company is not only securing its own future, but contributing to the broader competitiveness of industrial production in the region. It is not a story of disruption or spectacle. It is a story of discipline, engineering and strategic patience. And in an industry where trust is earned slowly and lost quickly, that may be KONČAR’s most valuable advantage.

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Velocity

AI and Small Countries:

Why Size is no Longer a Disadvantage By Edin Mehic

mall countries have always lived with a quiet disadvantage. Their disadvantages include limited capital, narrow markets, and modest political influence. In the industrial economy, scale decided almost everything. Bigger factories won because of bigger budgets, and bigger countries moved faster simply because they could afford to, translating resources into velocity with exceptional efficiency. Artificial intelligence is changing that equation. In the last quarter's edition, I wrote about the compound effect and why the Western Balkans need long-term stability to catch up economically. The argument was simple: 1% daily improvement, compounded over time, creates exponential advantage. That article focused on what we must fix. This one focuses on what we can leverage. AI does not reward size. It rewards speed of implementation, and in that race, small countries finally have a structural advantage. THE PARADOX WE'RE LIVING Across the Western Balkans, the ICT sector employs approximately 150,000 people, around 1.5% of the total workforce, and contributes close to 2% of regional GDP.¹ This is not a marginal sector. Local companies already build software, data sys-

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tems, and AI-driven tools for Fortune 500 clients. The paradox is not talent. The paradox is application. We are very good at building AI for others. We are far less effective at using it ourselves. That gap between exporting intelligence and applying it locally is the opportunity.

WHY IMPLEMENTATION IS THE REAL RACE The cost of AI implementation is now so low that the competitive advantage isn't in who has the biggest budget. It's in who moves fastest. Speech-to-text tools cost €50/month. Customer inquiry routing costs €100/ month. Inventory forecasting costs €200/month. The Balkans should compete on implementation, not innovation. Implement where possible, even if small, because compounding produces huge results. At Bloomteq, we've implemented AI across multiple processes: better proposal quality, more accurate work estimates, and improved code testing. We're not using AI to write code by default or design architecture. We're using it to improve what humans already do well. Result: Our proposals are 30% more accurate. Our delivery timelines are more reliable. That's not super intelligence. That's automating small tasks to create huge improvements.

Every company and institution can do the same. Courts can use speechto-text to transcribe proceedings automatically, so the judges spend more time on justice and less time dictating notes. Hospitals can use AI transcription so doctors spend 15 more minutes daily with patients instead of typing reports. Manufacturing plants can use predictive maintenance to catch failures before they happen, reducing downtime by 20%. None of this requires super intelligence. It requires implementation.

THE STRUCTURAL ADVANTAGE OF BEING SMALL In my work implementing Fortune 500 systems across regional companies, I've learned something counterintuitive: small organizations have AI advantages that large ones don't. Speed of decision-making for example a big automotive company needs 18 months to approve a new AI tool. A 30-person company can pilot it in three weeks. Focused problem sets Fortune 500 companies have 10,000 processes to optimise. Balkan SMEs have 20 critical processes. That's not a disadvantage, it can be used as an advantage. The compound effect I wrote before works both ways. Consistent improvement creates exponential growth. But consistent advantages in decision speed, multiplied over time, create exponential competitive positioning.

WHAT TO DO NEXT This demands iteration, not reinvention. This week, identify one inefficient process that wastes 3+ hours weekly. Find one affordable AI tool (€50-500/month) that solves it. Pilot it for 30 days. Measure results and implement if it works. Speech-to-text for meeting notes saves 1-2 hours weekly per person. Email classification saves 30-60 minutes daily. Medical transcription gives doctors 15-30 minutes more with patients. The question is not "How do we become an AI company?" The question is "How do we become a better version of the company we already are?"

THE BOTTOM LINE Small countries have smaller budgets and shorter decision cycles. For decades, this limited growth. Today, it accelerates it. In the AI era, scale matters less than speed. Adoption matters more than invention. Implementation costs less than delay. The Balkans' SMEs don't need to catch up to Silicon Valley. They need to implement existing AI tools faster than bureaucracies can slow them down. Small, consistent improvements create exponential growth. Small, consistent delays create exponential disadvantage. The choice is ours. ¹ OECD, Economic Convergence Scoreboard 2025

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Regional Pulse Albania Opens All EU Negotiation Clusters in One Year Albania opened its sixth and final negotiation cluster with the European Union on 17 November, completing the entire cluster framework in just over a year. The final cluster includes agriculture, food safety, fisheries, regional policy and financial provisions. Albania received EU candidate status in 2014 and opened its first cluster in October last year, marking one of the fastest negotiation accelerations in the enlargement process.

Oil Pipeline Thessaloniki–Skopje Nears Activation Diesel transport through the longplanned Thessaloniki–Skopje pipeline is expected to begin by year’s end. Transport costs are projected at around €20 per tonne, with North Macedonia receiving 20% of revenues. Officials say pipeline transport offers a cheaper and more reliable alternative to rail amid ongoing logistical disruptions.

Slovenia Adopts Controversial “Šutar Law” Slovenia adopted the so-called Šutar Law on 17 November, granting police expanded powers for searches and surveillance in designated highrisk areas. The law was introduced following the death of Aleš Šutar. The European Commission immediately urged Slovenian authorities to ensure the law is implemented without disproportionate impact on any ethnic community.

Serbia Will Not Open Cluster 3 This Year Despite optimistic announcements from Belgrade, Serbia will not open Cluster 3 in EU accession talks by year’s end. According to diplomatic sources, several EU member states insist on accountability related to the Banjska incident before giving consent. Opening the cluster requires unanimity, which currently appears out of reach. 60

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Italy Sees New Momentum in EU Enlargement

EU Enlargement Forum Held in Brussels

Italy’s Ambassador to Serbia Luca Gori said a new geopolitical awareness has reinvigorated the EU enlargement process. Speaking at the Western Balkans 2030 conference in Belgrade, Gori noted that enlargement has become a key pillar of Europe’s evolving security architecture, unfolding alongside broader global power competition.

The European Commission hosted the EU Enlargement Forum in Brussels in mid-November under the slogan “Completing the Union, Securing Our Future.” The event brought together political leaders, civil society, entrepreneurs, youth and experts from EU member states and candidate countries, framing enlargement as a shared political and generational project.

Enlargement Had a Strong Year, Says EU Commissioner European Commissioner for Enlargement Marta Kos said 2025 was a good year for the EU enlargement process, highlighting progress made by Montenegro, Albania, Moldova and Ukraine. She stressed that credibility, rule of law and democratic standards remain non-negotiable, warning that weak institutions invite corruption and malign external influence. Enlargement, she said, is ultimately a matter of security and prosperity. The Region

Regional Pulse

Albania Targets 60% Digital Payments by 2030 Albania launched the “Cashless Albania 2030” initiative to reduce reliance on cash and expand digital payments. Only 46% of citizens currently have bank accounts, while just 35% use digital payment methods. The government plans to modernise payment infrastructure and align reforms with EU standards.

Slovenia Bans Permanent Chaining of Dogs Slovenia adopted the so-called Šutar Law on 17 November, granting police expanded powers for searches and surveillance in designated high-risk areas. The law was introduced following the death of Aleš Šutar. The European Commission immediately urged Slovenian authorities to ensure the law is implemented without disproportionate impact on any ethnic community.

Thousands of Companies Registered at One Address in Budva More than 2,600 companies are registered at a single address in Budva, according to Montenegro’s business registry. Authorities suspect many are shell companies, largely owned by foreign nationals, used to obtain residency permits. As of late September, over 13,000 Turkish citizens held temporary residence permits in Montenegro.

Antifascist Marches Held Across Croatia Antifascist marches took place in Zagreb, Rijeka, Pula and Zadar in late November, organised by the initiative “United Against Fascism.” Participants said the protests were a response to growing violence, intimidation and restrictions, sending a message that fear would not define public life.

Montenegro Power Outage Caused by an Owl Parts of the Mrkojevići area near Bar lost electricity in mid-November after an owl caused a major fault in the power network. Utility workers discovered the bird at the site of the failure. Power supply was restored within hours — an unusual reminder of how fragile infrastructure can be. 62

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Regional Pulse

Inflation Tops Public Concerns in the Western Balkans The Regional Cooperation Council’s Balkan Barometer 2025 shows that 64% of citizens in the Western Balkans support EU membership — the highest level since 2015. However, 66% cite rising prices and inflation as their biggest concern. Nearly two-thirds believe economic conditions can improve through stronger regional cooperation.

64% 66% support EU membership

say inflation is the top concern

Adriatic Sea Faces Growing Plastic Crisis Fishermen across the Adriatic report pulling increasing amounts of plastic waste from the sea, with over 80% of floating debris made of plastic. Environmental groups warn the Adriatic now contains more floating waste than much of the Mediterranean. The FishNoWaste project, led by partners from Croatia and Italy, aims to develop a joint waste-management model for ports and fisheries.

Luka Koper and CMA CGM Form Joint Venture Slovenian port operator Luka Koper and French shipping giant CMA CGM are establishing a joint venture focused on vehicle transshipment. The project follows strengthened bilateral cooperation announced during French President Emmanuel Macron’s visit in October and is expected to reinforce Slovenia’s role as a strategic European logistics gateway. 64

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Infrastructure

The Year Tech Became the System AI stopped being a clever add-on and became the backbone—of power grids, regulation, capital, and national strategy.

or years, artificial intelligence was discussed like software: a tool, a feature, an upgrade. In 2025, that language stopped making sense. AI crossed a line this year—not because it suddenly learned to reason like a human, but because everything around it hardened into something more permanent. Chips became scarce. Power became political. Regulation became unavoidable. Capital started behaving like it does around roads, railways, and electricity. AI didn’t just improve how the world works. It began to structure it. This was the year tech became the system. FROM CODE TO CONCRETE Nothing captures the shift better than the physical footprint of AI. Data centres—once peripheral, anonymous boxes at the edge of cities—are now strategic assets. They are planned years in advance, negotiated with utilities, and built around dedicated substations. The most valuable part of an AI project in 2025 is no longer the model. It is the permission to plug in. Across Europe and the United States, hyperscale campuses are being announced not as digital investments, but as infrastructure projects: land, power, water, grid access. AI is now limited less by imagination than by megawatts. When something starts competing with steel plants 66

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and rail networks for electricity, it has stopped being “tech.” OWER IS THE NEW P BOTTLENECK The AI boom exposed an uncomfortable reality: intelligence is energy-hungry. Training and running large models consumes electricity at a scale that forces a rethink of national energy priorities. This year, data cen-

tres became one of the fastest-growing sources of power demand globally, with projections pointing to a near doubling of their electricity consumption by the end of the decade. As a result, the conversation inside boardrooms and ministries changed tone. Tech companies stopped speaking like sustainability influencers and started sounding like utility operators. Reliability, baseload capacity, and grid

resilience moved ahead of branding. Renewables remain central—but so do gas, nuclear, and long-term power contracts. AI does not wait for perfect energy transitions. It runs on what is available. This is how infrastructure asserts itself: it forces trade-offs. EGULATION ARRIVED R BECAUSE AI IS HERE TO STAY Governments regulate fads lightly. They regulate systems thoroughly. In Europe, the AI Act moved from abstract ambition to lived reality. Its phased rollout—beginning with banned practices and literacy obligations, followed by governance rules for general-purpose AI—signals something deeper than compliance. It is an admission that AI will underpin healthcare, finance, public administration, and security for decades. The key change in 2025 was not the text of regulation, but its intent. Policymakers stopped asking whether AI should be regulated and started asking how to make it predictable, auditable, and enforceable—exactly the way they approach transport, energy, and banking. That shift alone marks AI’s promotion to infrastructure status. SOVEREIGNTY ENTERED THE CHAT Perhaps the clearest sign of the transition came with a new word that surfaced repeatedly in policy papers and speeches: sovereignty. Across Europe, governments began treating AI capacity as a matter

of strategic autonomy. Not just who uses AI, but who controls the compute, the data, and the critical dependencies. Initiatives to build national and regional AI “factories,” anchored in high-performance computing and shared access models, gained momentum throughout the year. This is not about technological nationalism. It is about resilience. Nations do not want their public services, industrial innovation, or security systems dependent on infrastructure they cannot influence. AI, once framed as a productivity tool, is now seen as a pillar of national capability. You do not speak of sovereign spreadsheets. You speak of sovereign energy, sovereign food—and now, sovereign intelligence. APITAL FOLLOWED THE C INFRASTRUCTURE LOGIC When something becomes infrastructure, the money changes character. In 2025, the AI investment narrative began to split. On one side: concerns about overbuilding, valuation bubbles, and the sheer cost of scaling compute. On the other: a quiet rush of long-term capital toward the less glamorous parts of the ecosystem— utilities, grid equipment, land, cooling systems, and power generation. Private equity and institutional investors started looking at energy providers not as dull assets, but as leverage points in the AI economy. At the same time, warnings emerged that even the largest tech companies are stretching balance sheets to fund the

compute race. That tension—between massive capital needs and long-term inevitability—is typical of infrastructure transitions. Railways had it. Electrification had it. AI has it now. Partnerships became treaties As AI infrastructure solidified, alliances were renegotiated. The most telling partnerships of 2025 read less like vendor relationships and more like strategic compacts—long-term arrangements over compute access, intellectual property, and alignment. When AI is infrastructure, dependency is risk. And risk reshapes contracts. WHAT THIS MEANS FOR SMALLER REGIONS For regions like Adria, the rise of AI as infrastructure is not a distant story. It is a strategic test. The danger is clear: countries without affordable power, modern grids, and credible governance will import intelligence the way they import energy—paying others to think at scale. But there is also an opportunity. Regions still modernising their infrastructure can embed AI early, as a default layer rather than an expensive retrofit. The competitive edge will not come from having the flashiest startup ecosystem. It will come from being able to deploy AI reliably—under real-world constraints of power, regulation, skills, and trust. In 2025, AI stopped being a tool. In 2026, it will start behaving like a utility. And utilities, once built, shape everything that follows.

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New Energy

Albania’s Energy Pivot The Moment the Region Finally Took Notice

or years, Albania’s renewable ambitions were treated as an interesting promise rather than an unfolding reality. That changed in 2025. After a string of concrete steps — new financing, formal approvals, and the opening of long-delayed procurement procedures — the country’s energy transition finally crossed a threshold that regional observers could no longer dismiss as theoretical. The turning point came with the Belsh 50 MWp solar project, a long-planned investment that moved decisively from paperwork to execution. In April 2025, the European Bank for Reconstruction and Development (EBRD) approved a €30 million sovereign-guaranteed loan for the plant, forming the backbone of a €39–40 million financing package supported by EU and Western Balkans Investment Framework grants. By July 2025, the Albanian government and EBRD formally signed the loan and grant agreements, with Deputy Prime Minister Belinda Balluku confirming a €9.58 million EU/WBIF grant on top of the EBRD loan, marking one of the country’s most important clean-energy deals to date. Momentum accelerated again in the autumn. In November 2025, Albania’s state power utility KESH announced that the procurement for construction of the Belsh plant was expected to open the week of 20 November, signalling that the project had fully cleared its financing, state-guarantee, and preparatory stages and was entering implementation mode — the moment investors wait for before treating a project as real, not aspirational. This wasn’t an isolated development. In parallel, Albania advanced a second flag68

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Albania’s 2025 Energy Milestones 50 MWp Belsh Solar Plant €30m EBRD loan (Apr 2025) €9.58m EU/WBIF grant (Jul 2025) Procurement expected to open week of 20 Nov 2025 Skavica Hydropower Plant State-funded project; government confirms procedures launched in 2025 Vau i Dejës Floating Solar (12.9 MW) €13.9m contract (Oct 2024; active financing 2025)

“After a decade of planning, Albania’s energy transition finally entered the phase investors recognise: execution.” ship project: the Skavica Hydropower Plant, a strategic, 100% state-funded investment long viewed as the missing stabiliser in Albania’s hydro-dependent system. In 2025,

the government confirmed that procedures had formally begun and that construction was planned to start the following year, elevating Skavica from a political talking point to an active national project with a timeline and budget framework. Meanwhile, the country’s push into floating solar continued to mature. A Chinese– Spanish consortium (Sungrow + Gamma Solutions) moved forward with a €13.9 million, 12.9-MW floating PV project on the Vau i Dejës reservoir, supported by an EBRD loan and WBIF grant — another demonstration that international finance institutions see Albania as a bankable destination for renewables, not an experimental site. Taken together, these developments form a pattern that matters far beyond Albania’s borders. Belsh shows that the country can deliver utility-scale solar projects backed by European financing. Skavica demonstrates state commitment at strategic scale. Floating PV proves Albania is willing to diversify its generation profile and modernise its grid. And the EU and EBRD’s involvement signals confidence — the factor that typically triggers a second wave of private-sector capital. None of these steps individually remake the region. But collectively, they shift Albania from potential to player. The country is still wrestling with grid constraints, hydrological volatility, and the need for upgraded transmission lines. Yet for the first time, the pipeline is large enough — and real enough — to force the institutional reforms and infrastructure investments that have stalled for a decade. Albania has not declared a renewable-energy revolution. It has simply begun acting like a country that intends to build one.

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Margins

Where Infrastructure Stops

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nfrastructure is usually discussed as an achievement: kilometres built, capacity added, targets reached. In official language, progress appears neat, sequential, and irreversible. Once a system is modernised, the assumption follows that its benefits spread evenly outward. They do not. Across the region, infrastructure advances faster than the places it is meant to sustain. Main corridors are reinforced, urban centres modernised, and strategic nodes upgraded. Beyond those lines, however, reliability weakens, access thins, and costs quietly rise. The map of progress looks continuous from a distance, but fractured up close. This is where infrastructure stops being a technical question and becomes a social one. The difference between a functioning system and an unreliable one rarely announces itself dramatically. It shows up in smaller ways: businesses that cannot plan beyond the next outage; schools that struggle to operate through winter; households forced to choose between heating and staying. When systems begin to fail at the margins, the effects accumulate slowly—then suddenly. Transitions tend to prioritise scale. Large projects attract capital, political attention, and momentum. But continuity is secured elsewhere—through maintenance, affordability, and everyday access. The last kilometre matters more than the

first hundred. When it is neglected, progress turns selective. Energy, transport, and connectivity are often described as engines of growth. In practice, they function as filters. They determine which places remain connected to opportunity and which gradually fall out of circulation. Over time, these decisions redraw the region not through borders, but through absence. This dynamic explains why depopulation is rarely reversed by a single investment or strategy. People do not leave because they reject local life. They leave because systems stop working predictably. When services erode, risk increases, and uncertainty becomes permanent, staying turns into a gamble. There is an irony at the heart of modernisation. The faster systems advance without addressing their weakest links, the more uneven their outcomes become. Ambitious transitions can accelerate decline if they overlook the smallest users. Progress that does not reach everyone reshapes the region unevenly, creating islands of growth surrounded by quiet retreat. Understanding this is essential before speaking of revival or return. Infrastructure does more than power economies. It sustains settlement. It determines which places remain viable—and which slowly disappear from the future. Where infrastructure stops, departure begins.

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Reinvention

Gostuša 72

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The Villages we Forgot and why they’ll matter again

ou don’t come to Gostuša by accident. The road that climbs toward the village coils through Stara Planina like it’s thinking twice. Then, suddenly, the trees open and the valley appears — quiet, ridged, and almost absurdly intact. Stone houses stand where families once planned their futures; a schoolyard survives without the sound of children; a half-collapsed barn leans against the landscape like a punctuation mark. It feels less deserted than paused. For years, villages like this were treated as the fine print of modernisation — the collateral damage of people leaving the countryside for cities that promised more. The numbers told a stark story: shrinking populations, collapsing birth rates, empty homes sold for the price of a phone. The region absorbed the losses and quietly assumed they were permanent. But permanence is overrated. Europe, after decades of urban consolidation, is facing a new reality: crowded cities, overheated summers, absurd housing prices, wornout public services. The idea that the “future” happens only in metropolitan centres now looks like a relic. The 21st century has begun revaluing what the Balkans still possess in extraordinary quantity: space, nature, silence, identity. Gostuša, for all its emptiness, sits at the intersection of these shifts. The village has fewer than ten permanent residents, but it has something far rarer: clean water, unbroken landscape, and a silence dense enough to feel physical. A generation ago, that silence meant loss. Today, it’s starting to sound like opportunity. The same logic is unfolding across the region. In Croatia’s Žumberak, a cluster of highland villages once considered past the point of rescue now sit inside a protected landscape visited more by hikers than residents. The houses — wooden, modest, unmistakably local — were built for a life that doesn’t exist anymore. Yet their location, just an hour from Zagreb, has made Žumberak unexpectedly relevant. When a city pushes people to the edge with costs and noise, the edge starts to look attractive. The Region

Reinvention

Even more revealing is what’s happening above the Bay of Kotor. Drive up the winding road from Perast or Risan and you reach Crkvice, once a bustling Austro-Hungarian settlement and now a scatter of stone ruins overtaken by grass and wind. The village is almost entirely deserted, but the location is staggering: a high plateau with clean air, open views, and a silence so complete it feels engineered. Crkvice has no curated tourism, no restored façades, no commercial pitch. And yet its very absence of development is what makes it valuable. In a coastal economy saturated with overbuilt apartments and rushed investment, this abandoned settlement stands out as one of the last places where authenticity hasn’t been edited for visitors. It is a reminder that the region’s most compelling assets are often the ones no one has tried to monetise — yet. None of this means rural rebirth will resemble the past. The old model — families tied to land, local schools full, life revolving around agriculture — is not coming back. The demographics are too stark, the economic incentives too different. But something else is emerging, slower and quieter, driven not by nostalgia but by exhaustion with the alternative. Remote work finished rewriting the rules. A software engineer in Vienna no longer needs Vienna. A designer in Belgrade doesn’t need Belgrade. A startup team from Copenhagen doesn’t need Copenhagen. What they need is time, affordability, perspective, and the freedom to shape their days. For many, those ingredients aren’t found in cities anymore. They’re found in the places cities left behind. Spend a morning in Gostuša and the logic is obvious. You can walk through a village built entirely from local stone — not as an aesthetic choice, but because that’s how people built before cement — and see the outlines of an economy that could exist again: small creative retreats, climate research outposts, regenerative agriculture, nature-based tourism that doesn’t feel manufactured. The infrastructure is thin, but the raw assets are extraordinary. Europe will eventually notice. Žumberak offers a glimpse of what happens when it does. In the past two years, young cou74

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Crkvice The Region

Žumberak 76

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Reinvention

ples, remote workers, and weekend migrants from Zagreb have begun to trickle into the area — quietly, without slogans or initiatives. One couple restored a wooden house that had been empty for twenty years. Another turned a barn into a minimalist workshop. A third uses their grandmother’s abandoned home as a base for a start-up that creates outdoor products. There is no “movement,” but something is moving. Crkvice, by contrast, shows the beginning of a different path: selective reinvention. Not mass tourism, not gentrification — but a slow awakening to the fact that land this beautiful, this unspoiled, this close to the coast, will not stay invisible forever. Investors may eventually arrive. The hope — and the test — will be whether they understand that the value of the place is precisely in what it hasn’t become. Experts, when asked, tend to describe this moment as “transitional,” a euphemism for uncertainty. But the uncertainty is the point. Rural decline was once considered irreversible. Now, its reversibility depends less on policy than on imagination. The question is not whether villages will return. It’s what form they will take when they do. They may become places of intention rather than inheritance — chosen rather than inherited, shaped by people who arrive not because they must but because they can. People who want less noise, more meaning, and the ability to build something in a world that increasingly feels built-out. A century from now, demographers will still talk about the great rural exodus. But they may also speak of a quieter counter-movement — the moment when empty villages stopped being treated as evidence of decline and started being seen as Europe’s rarest resource: the last expanses of possibility. Stand in Gostuša at sunset and you understand it instinctively. The light slips across the valley, catching the stone walls in a way that makes them look almost deliberate in their endurance. There is no traffic, no background hum, no reminder of the world beyond the ridge. Just the architecture of a life that paused — and the outline of a life that could begin again. The Region

Wellbeing

The Rise of Natural Aesthetics How Ioanna Regen Is Redefining Beauty Through Regeneration restore themselves after the pace of modern

treatments give a natural presence,” she says.

life wears them down. Executives, entrepre-

“A person should look elegant and refreshed,

neurs, public figures and anyone living under

but unchanged.”

constant visibility seek the same thing: a re-

Behind that simplicity lies a precise medi-

freshed presence that feels like them, not an

cal process. Every new patient begins with a

engineered version of them. The appeal of

long conversation. Lifestyle, stress, previous

dramatic interventions has faded. A new ide-

illnesses, injuries, sleep, habits — all of it mat-

al is taking hold — one that values subtlety, re-

ters. Regen wants to understand the person

straint and the quiet elegance of looking rest-

before she even considers the face. Many pa-

ed without appearing altered.

tients arrive asking for a specific intervention,

Regen’s method mirrors that shift. Her clinic

convinced they know the solution. She rarely

he global obsession with perfection

favors regenerative materials drawn from na-

agrees at first. Years of experience have taught

has never been louder than it is to-

ture or from the patient’s own biology. These

her that people often focus on the wrong prob-

day. Filters sharpen jawlines, algo-

treatments do not sculpt or inflate. They en-

lem. Someone might request a procedure for

rithms smooth out fatigue, and entire indus-

courage the skin to repair itself, to rediscover

the forehead when their real challenge is in-

tries promise transformation at the speed of

the elasticity and tone it once had. The result

flammation or acne. Others want volume in

a swipe. Yet beneath this surface noise, an-

is not a new face, but a clearer expression of

places where the skin actually needs recovery,

other current is forming — quieter, steadier,

the person who was already there. “Natural

not enhancement. Her job, she says, is not to

rooted in an older understanding of beauty. In Belgrade, Dr. Ioanna Regen is one of the physicians leading that shift, returning aesthetic medicine to something closer to its original purpose: the preservation of natural vitality. Her path began in Paris more than two decades ago, inside one of the world’s most respected schools of aesthetic medicine. The professors who shaped her thinking believed deeply in an ancient idea — that beauty is inseparable from the balance of the entire human being. The Greeks, Egyptians and Persians viewed the face not as an isolated canvas but as the final expression of what was happening within. Regen carried that philosophy with her, and it has become the foundation of her work today. People increasingly turn to aesthetics not to change who they are, she explains, but to 78

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value credibility and authenticity. Regen’s pa-

gevity. The field is slowly returning to what

tients are drawn to that sensibility. They want

medicine always aimed for: restoration rath-

to feel confident in a boardroom, on a stage or

er than correction.

simply in their everyday lives. A balanced com-

When asked what guides every decision

plexion, a softer texture, a sense of brightness

she makes as a doctor, Regen answers with a

— these changes, however small, often trans-

kind of clarity rare in an industry often blurred

form the way a person enters a room.

by trends. Her motive, she says, has never

Confidence moves outward. It changes pos-

changed. It is love for the patient — a belief

ture, tone, energy. It amplifies competence

that medicine only holds meaning when it pro-

rather than competing with it. Regen sees this

tects the person, not the fashion of the mo-

daily. When a patient begins to feel more at

ment. “If you truly care for someone,” she says,

ease in their own skin, they engage different-

“you will never do anything that harms them.

ly with the world, and the world responds in

Not for recognition. Not for money. My re-

kind. It is not vanity, she insists. It is wellness.

sponsibility is to the patient, always.”

The future of aesthetics, in her view, is al-

In a world chasing instant improvement, her

ready taking shape. Regenerative medicine is

philosophy can feel almost radical. But perhaps

follow the patient’s wish list but to guide them

set to dominate the field — therapies drawn

that is why it resonates. At a moment when

toward what is healthiest and most natural.

from stem cells, growth factors and enriched

artificial perfection is everywhere, authentic-

Time has shifted expectations in aesthetic

biological materials designed to support the

ity has quietly become the new luxury.

medicine. The idea of “subtle work” once be-

body’s own healing mechanisms. Artificial fill-

longed only to a niche of practitioners; it is

ers and short-term solutions are losing ground

now the preferred standard for people who

to approaches that respect anatomy and lon-

Ioanna Regen Aesthetic Clinic

Belgrade | Instagram @ioanna_regen_klinika The Region

Corporate News Zagrebačka banka Named Croatia’s Best Bank Zagrebačka banka has been named Best Bank in Croatia by The Banker at the magazine’s annual awards ceremony in London, recognising excellence in per-

year Zagrebačka banka has received the Bank of the Year title, while UniCredit Group banks were also awarded across several European markets. Orbico Takes Over Dockers Distribution in Europe and Central Asia Orbico Group has been selected by Authentic Brands Group as its partner for

the expansion of Dockers across Europe and Central Asia, following ABG’s $311 million acquisition of the brand from Levi Strauss & Co. The agreement covers distribution, production and design of Dockers’ men’s and women’s collections across apparel, footwear and accessories. The move is part of ABG’s strategy to strengthen Dockers’ presence outside the US through strong regional partners.

formance, strategy and market impact. CEO Dalibor Ćubela said the award reflects the work of the entire team and the bank’s long-term focus on digital innovation, client-centric services and responsibility to the community. The recognition marks the second consecutive

Portonovi Named an AmEx Favorite One&Only Portonovi has been selected as an American Express Travel® 2025 Card Member Favorite Hotel, placing the Montenegrin resort among a global list chosen by AmEx cardholders. The recognition highlights the property’s appeal to high-end international travellers and its growing visibility on the global luxury map. It also reinforces Montenegro’s position as an emerging destination for premium tourism. 80

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Dexpress Names Vladimir Vidaković as CEO Ariston Opens New Factory in Niš Italian manufacturer Ariston has officially opened its new factory in Niš, employing 175 people ahead of the start of serial production in April next year. The facility will produce cylinders, reservoirs and components for heat pumps, strengthening the industrial base of southern Serbia.

Dexpress, part of United Group, has appointed Vladimir Vidaković as its new CEO. He brings more than 20 years of experience from leading regional companies, including Merkur, Delhaize, Delta Maxi Group and Nelt, and most recently led Shoppster’s operations in Serbia and Slovenia. The

company plans strategic investments in parcel lockers, fleet modernisation and internal process optimisation.

CKB Named Montenegro’s Bank of the Year CKB has been named Montenegro’s Bank of the Year by The Banker, reaffirming its position as the country’s leading financial institution. The award recognises strong market share, advanced digital banking and a year marked by stability and growth, while also highlighting the contribution of the bank’s employees.

United Group Appoints Bruce Humphreys as SVP Human Capital United Group has appointed Bruce Humphreys as Senior Vice President for Human Capital. He brings more than 30 years of international experience in human resources and legal affairs, gained across Europe, the United States, South America and the Far

East. Humphreys has held senior roles at global companies including Bristol-Myers Squibb, Warner-Lambert (Pfizer), Chrysler, Newell-Rubbermaid and KPN International. The Region

Milan Nedeljković to Lead BMW Group Dr.-Ing. Milan Nedeljković has been appointed Chairman of the Board of Management of BMW AG, effective 14 May 2026, following a decision by the

EasyJet to Acquire Adria Tehnika in Slovenia EasyJet has agreed to acquire Adria Tehnika, the aircraft maintenance provider based at Ljubljana Airport, with the deal expected to close in early 2026 pending regulatory approval. The move supports the airline’s strategy to expand in-house engineering operations, with EasyJet confirming long-term investment plans for the Slovenian facility. Adria Tehnika employs around 250 people and operates five maintenance bays, maintaining EasyJet’s Airbus fleet for nearly a decade.

company’s Supervisory Board. He will succeed Oliver Zipse, who has led BMW since 2019 and played a key role in the successful launch of the Neue Klasse. The Supervisory Board praised Nedeljković’s strategic vision, execution strength and people-focused leadership as BMW enters its next phase of transformation.

Helmut Fenzl to Lead IDEA in Serbia Long-time SPAR Hrvatska CEO Helmut Fenzl has been appointed President of the Management Board of

RATEL Awards 5G Licenses in Serbia Serbia’s telecom regulator RATEL has granted 5G licenses to Telekom Srbija, Yettel and A1 Serbia, with operators paying around €150 million for the first instalment of spectrum fees. The move marks a key step toward the rollout of Serbia’s 5G network, enabling faster mobile services and new opportunities for business and innovation. Nelt’s ‘Uspon 2030’ Strategy Shows Early Results

Fortenova’s IDEA retail chain in Serbia, effective 1 December. He will lead the company alongside board member Ognjen Milas. Fenzl previously built SPAR Croatia into a €1-billion business with 143 stores and the country’s largest logistics centre. 82

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Nelt Group expects revenues of €1.5 billion in 2025, up 9% year-on-year, driven by the early impact of its “Uspon 2030” strategy. More than €30 million has already been invested in logistics, production and digitalisation across Adria markets and Africa, with new facilities in Albania, Bosnia and Herzegovina and Zambia. All business units recorded growth, while continued investment in employees and digital tools reinforced the group’s long-term development focus.

Goran Čačić Appointed Head of Coca-Cola HBC Slovenia Goran Čačić has been appointed Sales Manager and Managing Director of Coca-Cola HBC Slovenia, succeeding Nina Juvanc, who moves to the role of Head of Coffee Category Development for the Adria business unit. With more than 20 years of sales and leadership experience, Čačić joins from Croatia,

Aktiva Invest Raises Takeover Bid for Krajinapetrol Bosnian investment fund Aktiva Invest has raised its takeover offer for local fuel retailer Krajinapetrol, upping the bid to 1 marka per share in a renewed push to acquire the company. The move reflects competitive interest in Bosnia’s energy retail sector and growing investor activity in strategic domestic assets. where he led field sales for the past two years. In his new role, he will focus on market development, customer relations and strengthening local teams to drive further growth.

Glovo Appoints Dušan Lazić as CEO for Serbia Glovo has appointed Dušan Lazić as its new General Manager for Serbia. After two years with the company, he steps into the role following strong re-

Vitapur Launches Bold Campaign Featuring Former President Borut Pahor Slovenian home brand Vitapur has rolled out a headline-grabbing advertising campaign starring Borut Pahor, the country’s former president. The intimate, minimalist visual marks a sharp departure from conventional political imagery, positioning comfort, confidence and modern masculinity at the centre of the brand’s storytelling. The campaign has already sparked wide public discussion—exactly the kind of attention Vitapur was aiming for.

sults in analytics, operations and financial strategy, having held key positions that shaped Glovo’s regional growth. The Region

EU Puts €134m Into Niš–Dimitrovgrad Railway Upgrade The European Union has committed €134 million to modernise the Niš–Dimitrovgrad railway, strengthening the rail link between Serbia and Bulgaria. The package combines a €100 million EIB

Global loan with a €34 million EU grant to upgrade the Sićevo–Dimitrovgrad section, electrify and signal the full line, and build a rail bypass around Niš to ease congestion. Part of Corridor X, the project will raise speeds to 120 km/h, boost passenger and freight volumes, improve safety and reliability, and reinforce Serbia’s role as a key transit hub on the Western Balkans–Eastern Mediterranean corridor.

DHL Opens €21m Logistics Hub Near Ljubljana Airport DHL has opened a €21 million, stateof-the-art logistics centre near Ljubljana Airport, strengthening its footprint in Slovenia as trade volumes grow. Located in Brnik, the 8,400-square-metre facility replaces the nearly 20-year-old centre and features an automated sorting system handling up to 3,500 parcels per hour, alongside 44 van ramps, 14 lorry ramps and eight aircraft container positions, positioning it as a key hub for both domestic and international operations. 84

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OTP Banka Srbija Opens Business Centre in Belgrade OTP Banka Srbija has opened a new Business Centre in Belgrade’s Delta Hub, designed for corporate clients and entrepreneurs. The concept offers comprehensive advisory support in one place, with simplified onboarding to the bank’s digital channels and fewer in-branch visits. Positioned as a micro hub, the centre also enables clients to test new services and actively participate in their development.

Komercijalna Banka Gets Green Light to Sell Shares North Macedonia’s Securities and Exchange Commission has approved Komercijalna Banka’s plan to sell 558 of its own shares in a public offering, marking a small but noteworthy capital move by the local lender. This comes amid broader activity on the Macedonian financial markets as the economy posts growth and investment interest continues.

Numbers Behind It All What the year really left behind

Taken together, these numbers tell a simple story: the region is no longer fragile — but it is not yet fast. The Region

By the Numbers

2025 in Numbers A snapshot of the region at year’s end

ECONOMY 3%

Regional economic growth in 2025 — stable, but slower than the post-pandemic rebound years.

40%

Average GDP per capita compared to the EU average — a reminder that convergence remains gradual.

Below 3%

Inflation across most markets by year’s end, easing cost pressures but not fully restoring confidence.

LABOUR 20%

Projected decline in the working-age population by 2050, reshaping labour markets sooner than expected.

190,000+

Estimated labour shortfall looming in the coming years if migration and participation trends persist.

CAPITAL & STABILITY

Wages rising

Driven more by scarcity than productivity gains.

€4 billion

Estimated investment potential available to the region, conditional on reforms and political predictability.

FDI cooled

Foreign direct investment softened compared to earlier peak years.

TRANSFORMATION

Below 3%

€377 million

Fiscal deficits largely contained, as governments balanced stability with limited room for stimulus.

A new regional push for SME digitalisation and innovation launched in 2025.

Hundreds of SMEs

Expected to modernise operations through digital tools and systems.

The Region

ONE NUMBER THAT DEFINED EACH COUNTRY IN 2025 Slovenia

High-income stability, with growth constrained by mature-market dynamics.

Croatia

Tourism remained the dominant growth engine, again carrying the wider economy.

Serbia

Growth intact, but investment momentum uneven across sectors.

Bosnia and Herzegovina

THEN VS NOW Then (pre-crisis):

Cheap capital, surplus labour, faster convergence expectations.

Now (2025):

Selective investment, labour scarcity, slower but more realistic growth.

Economic potential held back by political fragmentation.

Montenegro

Tourism revenues offset pressure from public debt and fiscal constraints.

North Macedonia

Exports stabilised after recent shocks, anchoring industrial output.

Albania

Strong growth momentum continued, alongside persistent structural gaps.

THE QUIET NUMBERS 17 million

Approximate total population of the Western Balkans.

EU = main market

The European Union remains the region’s primary trade and investment anchor.

SMEs dominate

Small and medium-sized enterprises continue to employ the majority of the workforce.

Productivity gap

Still wider than the income gap — the core challenge for convergence.

The data confirms what leaders sensed in 2025: stability returned — urgency must follow. The Region

Reckoning

A New Transatlantic Vocabulary What Washington’s New National Security Strategy Really Signals for Europe — and for Adria

eleased on the White House website in November 2025, Washington’s newest National Security Strategy abandons the familiar cadence of past decades — a document that arrived only last month but has already reframed the transatlantic conversation. Its chapter on Europe, pointedly titled Promoting European Greatness, reads less like diplomatic prose and more like a strategic reckoning. In strikingly direct terms for an official document, the United States portrays Europe not as a settled pillar of the democratic order but as a civilisation in a slow structural crisis. The NSS describes an over-regulated economy, eroding confidence, demographic contraction, political suppression and migration policies that strain cohesion. It warns that Europe could be “unrecognizable in 20 years or less” if course corrections fail to materialise.

The United States Capitol in Washington, DC.

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Agree or disagree, this is the vocabulary of America’s new strategic doctrine — and in geopolitics, vocabulary signals intent.

STRATEGY THAT SAYS A THE QUIET PART OUT LOUD Washington’s shift is not stylistic; it is strategic. The United States is signalling that the old habit of wrapping concerns in polite transatlantic language has run its course. Where previous administrations tempered pressure with polite phrasing, this one states the diagnosis flatly — and lets the consequences speak for themselves. The NSS frames Europe as a continent with ample assets but faltering momentum: wealthy yet hesitant, capable yet divided, ambitious yet indecisive. It argues that Europe cannot regain strategic relevance without restoring economic dynamism, political clarity and cultural confidence. The subtext carries the real weight: A Europe preoccupied with its internal contradictions cannot help shape an external order defined by speed, volatility and competition.

Across Europe, the National Security Strategy has triggered unusually sharp reactions from senior officials. EU foreign policy chief Josep Borrell has warned that the document’s language “raises serious questions about America’s view of Europe as a strategic partner,” while German Foreign Minister Annalena Baerbock has cautioned that framing Europe in terms of “civilizational decline” risks undermining decades of transatlantic cooperation. France’s Europe Minister Jean-Noël Barrot has described the NSS as a dramatic departure from the values-based partnership that once de-

WHAT “EUROPE” MEANS IN THE NSS Understanding the distinction is essential to understanding the implications 1. EU Europe Used when criticising regulation, sovereignty erosion and limits on speech. Target: EU institutions and political direction. 2. NATO Europe Used when discussing defence spending, Russia or alliance reliability. Target: NATO allies, including non-EU states. 3. Civilisational Europe Used when referring to identity, birthrates or cultural cohesion. Target: The broader Western cultural sphere.

fined the West, and Italy’s Foreign Minister Antonio Tajani has insisted that Europe cannot be treated as a stage for ideological experiments. Even traditionally Atlanticist voices, such as Polish Foreign Minister Radosław Sikorski, have expressed unease at a document that appears to cast Europe more as a liability than an ally. Across business circles — from Germany’s BDI to France’s MEDEF — the concern is more pragmatic: harsh U.S. rhetoric has a habit of preceding pressure on trade, supply chains and investment screening. For many in Brussels, the deeper worry is that the NSS quietly redefines Europe not as a co-architect of the West, but as a problem Washington intends to correct.

HICH “EUROPE” W IS WASHINGTON TALKING ABOUT? The NSS relies on a term Washington uses with deliberate elasticity: Europe. It shifts meaning depending on the argument. When the document attacks regulatory suffocation, sovereignty erosion or constraints on free expression, it is unmistakably targeting EU institutions and policies. These are EU-level choices — and Washington names them as such. When the subject turns to defence, reliability and Russia, the term expands to NATO Europe — a set of allies the United States expects to invest more, deliver more, and hesitate less. And beneath both lies a broader cultural critique. Here, “Europe” denotes a

Berlaymont Building, European Commission HQ, Brussels The Region

civilisational space wrestling with identity, confidence and cohesion — a cultural Europe rather than an institutional one. Decoding which version of Europe the NSS invokes matters, because each carries distinct implications for the Adria region.

DRIA IS NO LONGER A WATCHING FROM THE STANDS The Adria region sits at the intersection of Europe’s promise and its fragilities — and Washington’s new framing lands here with particular force. The push for stronger defence places NATO members like Croatia, Slovenia and Montenegro under a sharper spotlight, while raising new questions for neutral Serbia. The demand for competitiveness reaches directly into EU accession debates, regulatory reforms and investment conditions across the region. And the call for political clarity underscores broader questions of governance, cohesion and long-term orientation. The NSS makes one thing plain: Europe’s next phase of momentum may have to be generated at its edges, not its centre.

A MOMENT OF PRESSURE By describing Europe’s vulnerabilities so bluntly, the NSS inadvertently highlights where renewal might begin. The Adria region has qualities older EU economies increasingly lack: institutional agility, reform appetite and a political landscape that has not fully ossified. If Europe needs an injection of clarity, adaptability and demographic resilience, it may find more of it in Zagreb, Belgrade, Ljubljana, Sarajevo, Skopje and Tirana than 90

The Region

in some of the EU’s older capitals. The NSS does not spell this out, but the log-

WHAT THIS MEANS FOR ADRIA Faster Reforms Will Matter More Washington is signalling impatience with slow-moving systems. Adria’s agility becomes an asset. Defence Expectations Will Rise NATO members face harder scrutiny. Non-NATO states face harder questions. E U Accession Is Now Strategic, Not Procedural The U.S. now sees enlargement through the lens of competitiveness and stability. The Periphery Has Leverage Regions capable of delivering stability, clarity and growth will shape the next chapter of Europe’s evolution. ic is unmistakable: the periphery may become the engine.

HE DEBATE EXPLODES T INTO THE OPEN Since the article was first drafted, the Strategy’s impact has moved decisively beyond diplomatic unease. European Council President António Costa publicly rejected what he described as political interference in Europe’s internal affairs, while German Chancellor Friedrich Merz argued that the language of the document only reinforces the case for greater European strategic autonomy. Reactions have not been confined to mainstream politics. Nationalist parties in parts of Europe have selectively welcomed the NSS’s harsher diagnosis,

Reckoning

even as most governments have rejected the implication that Europe’s democratic systems require external correction. More quietly, the debate has reached Europe’s security institutions. In Denmark, defence officials have warned that growing U.S. economic and strategic assertiveness toward allies could itself become a source of vulnerability. Taken together, these responses suggest that the NSS has accelerated a shift already underway: transatlantic disagreements that once played out behind closed doors are now becoming part of Europe’s open political and security conversation. If Washington’s sharper tone felt provocative yesterday, today it is unmistakably a rupture. Within hours, Polish Prime Minister Donald Tusk fired back publicly, warning the United States that “Europe is your closest ally, not your problem,” and even questioning whether America’s strategic posture toward Europe has fundamentally shifted. And from a radically different vantage point, Elon Musk weighed in with a provocation of his own, declaring that the EU “should be abolished” and sovereignty returned to individual states. From within the European Union itself, Hungary’s Prime Minister Viktor Orbán offered a different response. Without endorsing Washington’s authority to judge Europe, Orbán argued that parts of the diagnosis should not come as a surprise, repeating his long-standing criticism of what he calls Europe’s over-centralisation, demographic decline and erosion of national sovereignty. His remarks

underscored a deeper reality exposed by the NSS: America’s sharper language does not confront a united Europe, but a continent already divided over its direction. In that sense, the Strategy has not introduced a new fault line so much as illuminated an existing one. These reactions, though ideologically worlds apart, crystallise the same pressure point: the NSS has punctured the usual diplomatic cushioning. Leaders and influencers are now speaking with a directness usually reserved for private briefings. The conversation Washington started is no longer a policy debate — it has become a public stress test of the West’s cohesion.

THE NEW TRANSATLANTIC REALITY The United States is not stepping back from Europe; it is engaging with a sharper point of view. The era of automatic reassurance is over. In its place are harder, more urgent questions: Can Europe defend itself? Can it innovate? Can it maintain cohesion across divergent political landscapes? Can it adapt faster than the pressures bearing down upon it? For the Adria region, these questions are not theoretical. They shape capital flows, diplomatic priorities, infrastructure planning, energy strategy and the viability of EU enlargement. They will determine which states emerge as stabilisers — and which drift. Washington’s NSS signals not the end of the transatlantic partnership, but the end of its comfort. Europe is being asked to rediscover its confidence, its coherence and its competitive edge. And if it succeeds, its next leap forward may begin not in Brussels, but in the parts of the continent still restless enough to build something new. The Region

World at Glance AMERICA REDEFINES THE ALLIANCE

The United States released a new National Security Strategy in late November that sharply reframes its view of Europe. The document argues that the continent’s challenges are structural, not simply a matter of defence spending. In European capitals, the strategy was read as both diagnosis and warning.

NATO WARNS WAR IS “AT THE DOOR”

NATO Secretary General Mark Rutte warned in Berlin that Europe risks war with Russia if it fails to act now. He accused allies of “quiet complacency” and urged an immediate ramp-up of defence spending and weapons production. “We are Russia’s next target,” Rutte said, invoking conflicts “our grandparents and great-grandparents endured.”

FRANCE CALLS IT “BRUTAL”

France’s junior army minister Alice Rufo described the new U.S. doctrine as a “brutal clarification” of Washington’s posture. The remark captured a wider unease across Europe. When Paris speaks that plainly, others stop pretending it is business as usual. 92

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EUROPE PUSHES BACK

European leaders responded by criticising the strategy’s blunt language, warning it risks weakening cohesion at a sensitive moment. Several officials said the tone crossed from strategic assessment into political judgement. The exchange marked one of the most openly tense transatlantic moments in years.

DOCUMENTS THAT SHAPED THE END OF 2025

U.S. National Security Strategy (2025) Reframed transatlantic relations and triggered EU pushback. EU Decisions on Russian Asset Freezes Shifted sanctions from temporary measures to long-term financial architecture. UN Humanitarian Appeal for 2026 Signalled a new era of constrained global aid.

BY THE NUMBERS

€210 billion Russian central bank assets held in Europe, now moving toward an indefinite freeze. $35 trillion Projected value of global trade in 2025, despite geopolitical fragmentation. 400 million CHF Reduction in the Red Cross and Red Crescent’s 2026 humanitarian appeal. 134 countries Participating in Interpol’s global wildlife-trafficking crackdown The Region

World at Glance

THE UN CUTS ITS 2026 AID ASK

The United Nations launched a sharply reduced humanitarian appeal for 2026, citing declining donor support. Officials warned that even this lower target may not be met. Scarcity is reshaping humanitarian priorities worldwide.

RUSSIA TAKES THE FIGHT TO COURT

Russia’s central bank launched legal action against Euroclear, the Belgian clearing house holding most of the frozen assets. Moscow argues the measures violate international law and vows retaliation. The financial war is now being fought in courtrooms as well as capitals.

EUROPE FREEZES RUSSIA’S MONEY FOR THE LONG TERM

EU governments moved toward indefinitely freezing roughly €210 billion in Russian central bank assets held in Europe. The change removes the recurring six-month renewal risk and underpins longer-term support for Ukraine. Sanctions are being transformed from pressure tools into permanent architecture. 94

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World at Glance

RED CROSS SHRINKS ITS APPEAL

The International Federation of Red Cross and Red Crescent Societies cut its 2026 funding request by 400 million Swiss francs. The decision came despite rising global need and growing risks to aid workers. When the world’s largest humanitarian network scales back, the message is unmistakable.

The Region

World at Glance

TRADE SURGES DESPITE STRAINS

Global trade is on track to exceed $35 trillion in 2025, defying predictions of collapse amid geopolitical fragmentation. Supply chains adapted rather than disappeared, rerouting through friend-shoring and near-shoring. Politics fractured faster than commerce.

2025 CLIMBS THE HEAT RANKINGS

European climate data indicates that 2025 will rank among the hottest years ever recorded. Scientists warned that the three-year average is nearing critical warming thresholds. Climate change is no longer a future risk—it is a present economic cost.

INTERPOL’S WILDLIFE CRACKDOWN

Interpol announced the results of a global operation across 134 countries that rescued nearly 30,000 trafficked animals. The seizures included protected and endangered species. Wildlife trafficking has become a fully industrialised global crime.

The Region

THE OTHER SIDE OF THE

REGION

The People, Places and Ideas Shaping Tomorrow’s Adria The Region

Wildscope

hey move the way gravity wished it could. At dawn, when the ridgelines of the Alps and Dinarides are still dissolving out of the mist, the Adria chamois is already in motion — sprinting up slopes that make human knees buckle, leaping across ledges the width of a smartphone. In a region obsessed with building better roads, this is the creature that proves the most efficient transport network was always vertical. For centuries, the chamois has been a quiet witness to everything unfolding beneath its hooves — empires rising, borders shifting, hikers debating whether they actually follow the trail or just guess. Through it all, this mountain goat-antelope hybrid has remained the purest expression of alpine freedom. But don’t let the serenity fool you: the chamois is a precision machine. Flexible hooves that grip like climbing shoes. A centre of gravity that lets it pivot mid-air. Eyes built to scan distances most drones would envy.

Fast Facts Species: Rupicapra rupicapra Adria Range: Slovenia, Croatia, Bosnia & Herzegovina, Montenegro, Serbia, North Macedonia Top Speed: Up to 50 km/h Vertical Takeoff Ability: Can jump 2 metres straight up Life Expectancy: 15–20 years Fun Detail: Their hooves have a hard rim and a soft, rubbery core — basically nature’s premium climbing shoes. What makes the Adria chamois remarkable isn’t just its athleticism. It’s how perfectly it embodies the landscape we claim to know. Slovenia’s Triglav, Croatia’s Velebit, Bosnia’s Prenj, Montenegro’s Durmitor — each mountain range carries its own version of the chamois story. A population climbing higher as summers warm. Young males sparring on sheer cliffs because apparently life isn’t thrilling enough. Females guiding their kids across knife-edge ridges with the calm authority of mothers everywhere. And yet, unless you’re an early-morning wanderer with good luck and better lungs, you’ll never meet one. That’s part of the charm. The chamois is a reminder that while much of the region negotiates efficiency, regulation, and connectivity, some things remain beautifully untamed. It is wilderness distilled — a creature that demands nothing from us except awe. So the next time you stand on an overlook and feel the wind whip across your face, imagine a silhouette flickering across the cliff opposite. Sure-footed. Effortless. Unbothered by the noise of the world below. That’s the chamois, the mountain’s original free runner — claiming the vertical frontier long before anyone coined the word “parkour.” 98

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The Adria Chamois The Parkour Champion of the Alps & Dinarides

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Wildscope

Where to Spot Them Slovenia: Triglav National Park C roatia: Velebit and Biokovo B iH: Prenj and Čvrsnica M ontenegro: Durmitor, Prokletije N orth Macedonia: Šar Mountains Pro tip: Go early. The chamois follows a strict schedule: sunrise gym, midday ghosting.

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Wildscope

One Fun Thing “The Chamois Standoff” Young males sometimes engage in dramatic cliff-edge staring contests where the winner is the one who… doesn’t blink. Imagine extreme eye contact mixed with Cirque du Soleil, minus the safety harness.

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Bookshelf REGIONAL SELECTION

Sjećanje šume by Damir Karakaš Theme: The childhood shadows that shape us

Stories Worth Your Attention For readers who want books that sharpen the mind, not just decorate the shelf.

Karakaš reconstructs the rural Lika of his youth with stark clarity, turning landscape into emotion and silence into dialogue. His storytelling walks the line between tenderness and brutality, suggesting that memory is both wound and compass. What emerges is a portrait of a boy learning to read the world long before he can escape it. Pair it with: A cold evening and a window that looks onto trees. Why now: Because modernisation always has a backstory.

Books travel better than most of us — slipping across borders, cultures, and assumptions with ease. This selection favours writers who observe the world patiently, argue honestly, and refuse to tell comforting stories. Some come from the region, some from far beyond it, but all offer one thing we desperately need: clarity.

To Noč Sem Jo Videla by Drago Jančar Theme: Memory, guilt, and the stories we inherit

A haunting novel built around the disappearance of a young woman during WWII — told through five different voices. Jančar’s mastery lies in how he lets truth emerge through contradictions, showing how personal and historical trauma intertwine. The result is a book that reads like an x-ray of a country learning to remember. Pair it with: A quiet evening and a mind willing to hold contradictions. Why now: Because every region haunted by its past needs writers able to face memory without flinching. 102

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GLOBAL SELECTION

Pismo čitateljici

Poverty, By America

by Olja Savičević Ivančević

by Matthew Desmond

Theme: The politics of intimacy

Theme: Systems, incentives, and the price of looking away

Savičević Ivančević blends essays and narrative fragments to explore womanhood, desire and the emotional economies we rarely name. Her voice is warm yet unflinching, exposing the hidden negotiations behind relationships, community and identity. It’s a book that reads like a conversation you didn’t know you needed — and can’t forget once it ends. Pair it with: A quiet hour and a mind willing to self-interrupt. Why now: Because progress is measured in the private as much as the public sphere.

Desmond reveals how modern societies benefit from the existence of poverty, dismantling the myth that inequality is inevitable. He weaves data with lived experience, creating a narrative that is as urgent as it is uncomfortable. The result is a book that forces readers to confront their own place within the system — whether they want to or not. Pair it with: A steady coffee and a willingness to challenge assumptions. Why now: Because inequality is becoming a business risk, not just a moral one.

Zovite me Esteban by Lejla Kalamujić

The Age of Revolutions

Theme: Love, loss, and the quiet courage of becoming

by Fareed Zakaria

Kalamujić’s celebrated collection moves through the spaces where grief, identity and tenderness meet, offering stories that feel both fragile and unbreakable. She writes with a precision that makes small moments feel seismic, turning personal memory into a map of emotional survival. The result is a book that lingers long after the last page, not because it demands attention, but because it earns it. Pair it with: A slow morning, a warm drink, and no rush to be anyone but yourself. Why now: Because stories that face pain honestly become guides for modern resilience.

Theme: Why societies leap forward — and then snap back

Zakaria traces the long arc of human progress through scientific, political and technological revolutions, showing how each era reshaped the balance of power. His analysis is sweeping but precise, making centuries of change feel startlingly relevant to today. It’s a book for readers who want to understand why the world feels unstable — and why that instability is familiar. Pair it with: A long train ride and the need to see the bigger picture. Why now: Because our region is in the middle of one.

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103

Bookshelf

The Runaway Species: How Human Creativity Remakes the World by David Eagleman Theme: Creativity as humanity’s strategic advantage

Eagleman and Brandt break down creativity into three core cognitive moves — bending, breaking and blending — showing how every innovation follows this ancient mental choreography. Their examples span art, science and industry, illustrating how the mind transforms old materials into new futures. It’s a book that treats creativity not as magic, but as a discipline anyone can strengthen. Pair it with: An open notebook, a stubborn problem, and time to think sideways. Why now: Because every industry in the Adria region is competing on ideas, not imitation.

Chip War by Chris Miller Theme: The geopolitics of semiconductors

Miller explains how the smallest component in modern technology became the world’s biggest strategic vulnerability. His narrative moves from Silicon Valley labs to Asian manufacturing hubs to global political chambers, showing how chips became the new oil. It’s a rare book that makes industrial policy feel cinematic. Pair it with: A news-free evening and room to think globally. Why now: Because business strategy now includes supply-chain geopolitics.

The Biggest Bluff When McKinsey Comes to Town by Walt Bogdanich & Michael Forsythe

by Maria Konnikova Theme: Decision-making when the stakes are real

Theme: What happens when consultants own the playbook

This investigation digs into McKinsey’s global influence, uncovering how the firm shapes governments, industries and public policy often from behind closed doors. The authors combine meticulous research with storytelling that reads like a political thriller. It’s a sharp reminder that expertise isn’t neutral — and that power rarely announces itself. Pair it with: A sharpened pencil and your organisation chart. Why now: Because decision-making is too often outsourced. 104

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Konnikova enters the world of professional poker to study how humans interpret risk, uncertainty and intuition. Her journey from psychologist to prizewinner becomes a case study in how knowledge shifts when theory meets real pressure. It’s a deeply intelligent reminder that the smartest decisions often come from the intersection of logic and instinct. Pair it with: A long evening and your own unmade decisions. Why now: Because leaders who can read uncertainty will define the next decade.

From the Margins

very region measures itself through growth rates, investment flows, and strategies for the future. These are the stories that dominate headlines and policy rooms. But regions are also shaped by quieter forces — the narratives that survive outside official memory. Stories passed on not because they were useful, but because they were unforgettable. Across Adria, myths and legends have outlived borders, governments,

and economic cycles. They moved freely when people could not. They adapted when systems collapsed. Long before the language of GDP and competitiveness, these stories explained the world in ways numbers never could. They reveal what communities feared, what they revered, and what they chose to preserve when power shifted elsewhere. In mountain villages, along forgotten roads, and at the edges of forests, stories became a form of continuity — a way of anchoring iden-

tity when certainty disappeared. This is not nostalgia. It is cultural infrastructure. In a region moving quickly toward the future, these lesser-known tales remind us that progress does not erase memory. It accumulates it. And sometimes, the fastest way to understand where we are going is to revisit the stories we never fully left behind. TURN THE PAGE.

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Lesser Known Tales

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Lesser Known Tales

When Europe Met Its First Vampire Centuries before Dracula, an Istrian village recorded a story that still unsettles historians.

n the mid-17th century, the Istrian village of Kringa lived by the rhythms of the land — harvests, marriages, storms rolling in from the Adriatic. Then one night, something stranger than bad weather arrived. Or rather, returned. Jure Grando, a stonemason who had lived a quiet life on the edge of the village, died in 1656. According to official Venetian reports — rare for stories like this — he didn’t stay dead. Villagers claimed he began appearing at windows after nightfall, knocking on doors, and visiting homes where someone later fell ill. Fear spread quickly; in rural Europe, the unknown never stayed private for long. The parish priest, Giorgio, tried to confront the apparition. Contemporary notes describe him standing over Grando’s grave, cross raised, demanding the restless soul return to peace. The nightly disturbances stopped briefly. Then they resumed. By 1672, the community decided the haunting had to end. A group of villagers, led by the local prefect, Mihovil Mišković, opened the grave. What they found became the backbone of the legend: the body, they wrote, appeared “strangely preserved,” a phrasing that would echo

through vampire literature for centuries. When the usual tools failed, the villagers turned to the bluntest solution they had — a stake and a prayer. Only then, the report claims, did the terror cease. What makes the story remarkable isn’t the supernatural claim — Central Europe is full of ghost tales — but the paper trail. In 1689, the respected historian Johann Weikhard von Valvasor published a detailed account in his monumental The Glory of the Duchy of Carniola, giving Jure Grando the dubious honour of becoming the first named vampire in European written history. Long before Stoker, before cinema, before vampires became metaphors for everything from disease to desire, there was a frightened Istrian village and a man they could not forget. Today, Kringa leans into the legend with a wink, but the story’s core remains unresolved. Was it fear, folklore, or a misunderstood illness? TIME would say this: stories endure not because they’re true, but because they reveal what people believed at the moment belief mattered most. And on that lonely stretch of Istria, belief — and fear — once shaped an entire village.

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Events AmCham Slovenia Celebrates Business Excellence AmCham Slovenia marked the end of the year with its AmCham Business Breakfast: Special Edition, celebrating standout achievements and future-focused leadership. The Best of the Best 2025 award went to Micromobility Coexistence – Zavarovalnica Triglav, while Medeja Lončar and Robert Lešnik were named AmCham Business Leaders of the Year 2026, nominated by the YOUNG platform.

DMW Talks EU Business Readiness The German Montenegrin Business Club (DMW) held an Impulse Session on preparing businesses for the EU, highlighting the need to act faster and smarter. Central Bank Governor Dr. Irena Radović urged companies to prepare now, stressing fair competition, digitalisation, inclusion, and gender equality, while German Ambassador Peter Felten underlined Montenegro’s untapped potential and the importance of stable, transparent regulations. Panelists from finance, customs, EU cooperation, and tourism agreed on one message: progress is possible—but speed matters. 108

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MFIC Brings Members Together for Year-End Gathering The Montenegrin Foreign Investors’ Council (MFIC) brought its member companies together at a year-end event marked by a warm holiday spirit and reflection on a year of strong partnerships and shared achievements. The gathering was hosted by Arijana Nikolić Vučinić, Executive Director of MFIC, together with members of the Board of Directors — Tamaš Kamaraši, Branko Mitrović, Remon Zakaria, Vasilis Panagopoulos and David Margason — highlighting the Council’s continued commitment to dialogue, cooperation and a stable investment climate in Montenegro.

Game Changer Raises the Bar When more than 1,000 people gather with the same mindset—growth, ideas, ambition—the atmosphere shifts. When 63 speakers take the stage, challenging limits and redefining what’s possible, something bigger happens. This year’s Game Changer conference delivered exactly that. With packed halls, bold conversations, and a programme spanning technology, business, innovation and leadership, the event set a new benchmark for regional conferences. More than just talks and panels, Game Changer proved itself as a platform where ideas turn into momentum—and momentum into impact.

Slovenian Business Club Hosts New Year Reception The Slovenian Business Club marked its traditional New Year Reception on 10 December at the Hyatt Regency Belgrade, bringing together members, partners and friends to reflect on business achievements in 2025 and strengthen Slovenia–Serbia economic ties. President Danijela Fišakov highlighted a year shaped by resilience, innovation and new partnerships, while H.E. Slobodan Šešum, Ambassador of Slovenia to Serbia, underlined the importance of bilateral cooperation and the Club’s role in connecting businesses. The evening concluded in a festive atmosphere with Slovenian and Serbian wines and delicacies, supported by a broad network of sponsors. The Region

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Events

CEO Summit Belgrade Gathers Regional Leaders The seventh CEO Summit Belgrade took place on 1 December at the Sava Center, bringing together more than 500 leaders from business, finance, technology and public policy. Organised by InStore Serbia, the conference focused on leadership, innovation, trust, and the green transition. The keynote address was delivered by Nobel laureate James A. Robinson, with speakers including Emil Tedeschi, Mike Michel, Ketrin Dekorzan and Miljan Ždrale, reinforcing the summit’s role as a key regional business forum.

NLB Wins Gold Effie After 23 Years NLB has received a Gold Effie Award 2025, becoming the first bank to win the top Effie prize in 23 years. The award was granted to the campaign “Life Is Full of Opportunities,” developed by Publicis Groupe Slovenia and Internavti. NLB said the recognition reflects years of consistent, strategic brand management and measurable marketing impact on business results. The Gold Effie is widely regarded as the most prestigious global award for proven marketing effectiveness—making NLB’s achievement a rare milestone in the highly regulated and competitive banking sector. 110

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Events

Dani hrvatskog turizma 2025 Held in Dubrovnik The Days of Croatian Tourism 2025 took place in Dubrovnik from 19 to 21 November, bringing together tourism leaders and professionals from across Croatia and abroad. The event reviewed the results of the tourism season, addressed key challenges and future trends, and concluded with the Croatian Tourism Awards, recognising excellence across the sector.

AmCham Albania Marks 25 Years The American Chamber of Commerce in Albania celebrated its 25th anniversary with a Gala Evening in Tirana, bringing together state officials, diplomats and business leaders. The event was attended by President Bajram Begaj and U.S. Chargé d’Affaires Nancy VanHorn, alongside representatives of key institutions and the diplomatic corps. Founded in 2000 with 44 companies, AmCham Albania has grown into a network of 276 member companies.

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Events

AmCham North Macedonia Looks Ahead at Anniversary Assembly AmCham North Macedonia combined its 25th General Assembly with an anniversary reception, using the milestone to reflect on past cooperation while setting priorities for a more competitive, future-ready business environment. The formal session also confirmed the new Board of Directors, with Živko Mukaetov, Ognjen Lazić, Dragan Davitkov, Aleksandra Ivanovska and Konstantinos Nikolaou joining Andrej Petreski and Slavko P. in providing strategic leadership for the year ahead.

Wine Vision by Open Balkan 2025 The fourth edition of Wine Vision by Open Balkan was held from 22 to 25 November at the Belgrade Fair, bringing together more than 600 exhibitors from over 30 countries. The international fair showcased wine, spirits, food and tourism, alongside tastings, competitions and professional masterclasses, further strengthening Belgrade’s position as a regional wine and gastronomy hub. The Region

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Roast

Overarching Prejudice I was driving down a byway of my hometown when I was pulled over by the police. The officer grilled me on my private life as he perused the documents I gave him. “What do you do for a living?” “I’m a student,” I said. “What do you study?” the officer persisted, with his second chin jiggling after the question, as a bell does in a shop when somebody enters — though it made not a sound, but a silent wobble, which hypnotized me and made me miss the question. “I beg your pardon?” “What do you study?” he repeated with an increased wobble, and handed me back my papers. “English language and literature, sir.” He growled, spat on the ground, and protested: “Oh, the shame, don’t you know they bombed us in ’99?” His second chin emphatically swayed, underscoring his condemnation. He was right. I was a traitor. I should have known better, especially since I was living in Belgrade at the time it was bombed by English language and literature. As soon

as I got home, I went to the attic, threw some boxes aside, until I found one marked: “Branko’s childhood journal and other shit that we, his parents, couldn’t throw out, out of sentimental obligation to him. He is our child after all, and we are totally glad we didn’t have an abortion” A lengthy title, I thought, and splayed open the box. Here I present to you some of the excerpts from my childhood journal, documenting the atrocities committed by English language and literature against the good people of Belgrade: April 6th: Grandma Stana died today, she was hit in the head by Charles Dickens’ Great Expectations. April 12th: …We found my big brother in an alley behind our apartment building, he was buried under thick tomes of Shakespeare, we pulled him out, he was still breathing. That same night he had nightmares, I know, because he was screaming in his sleep. He

Branko Krsmanović

Stand-up comedian

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also wet the bed, I know, because his was the upper bunk. April 20th: The air raid alarm sounded, we all rushed to the basements. Not everybody made it in time; some people were still in the streets screaming: “aaaah Pride and Prejudice aaaaah.” We cowered in the basement, unable to help them, as paperback Penguin editions plopped down on innocent civilians, causing severe papercuts and mild bruises. April 22nd: It is my birthday today. I asked my parents what they will get me. They said that, considering the current economic situation, I will probably get diddly squat. I didn’t know what that was, but I was excited. April 23rd: The RTS building was destroyed today. Its roof caved in under the immense pressure of Sherlock Holmes and Agatha Christie pocketbooks. April 24th: It’s been three days now, no birthday present. May 1st: My brother told me diddly squat means I’ll get nothing, and that I was stupid for thinking otherwise. I told him he wet the bed. He punched me in the throat. I called him a base knave — a phrase I took up from Shakespeare in order to trigger my brother’s now very evident PTSD. May 2nd: I played in the street with my friends, it was a quiet day, until an immense boom deafened us. The shock wave sent us to the ground, the raised dust and debris blinded us, and the fear paralyzed us. As it all settled down, and fear gave way to curiosity, we were aghast to see how narrowly we escaped death. Right beside us, in a fresh, smoking crater, lay a massive fourth edition of Encyclopedia Britannica. Moved by remorse, I dropped out of college, swore never again to take up a book by a foreign writer, which is now evident in the shit prose you just endured.

Follow Branko before English literature strikes again: Instagram @branko_krsmanovic_

NEXT ISSUE — MARCH 2026

The Region

Where Adria’s Next Chapter Begins As the first quarter of 2026 unfolds, the region is entering a moment that feels both restless and full of promise. The economic cycle is shifting, political calendars are tightening, and the race for competitiveness is no longer abstract — it’s measurable, urgent, and happening in real time. Our March edition captures this pivot, spotlighting the people and ideas shaping what comes next.

The New Acceleration Adria’s economies have left the post-crisis holding pattern. Now comes the harder test: can the region accelerate fast enough to keep pace with Europe’s next decade? We examine the data, the decisions, and the leaders setting the tempo.

Family Business 2.0 Succession isn’t a quiet process anymore — it’s a strategic battleground. From manufacturing groups to tourism dynasties, we explore how a new generation is rewriting the rules of continuity, culture, and control.

One Region, Many Speeds Infrastructure, energy, digitalisation: three areas where the region’s future will be decided. We break down who is building momentum — and who risks missing the window.

Leadership in a Fragmented Era Power is shifting, and not always where expected. A special report on the executives and public voices building influence through competence, credibility, and long-term vision.

Work, Redefined Quiet quitting is old news; quiet adapting is the new reality. From flexible factories to AI-enabled offices, we map how work across Adria is changing — and what employers still haven’t understood.

Diplomacy Meets the Market Where embassies become economic actors, new opportunities emerge. A closer look at how diplomatic networks are shaping trade, investment, and the region’s place in global value chains.

Culture as Capital Festivals, galleries, design studios — the cultural sector is no longer a side story. It’s an industry with economic weight and global ambitions. We explore its rise and its next frontier.

The Roast & WildScope Want your company featured in The Region’s March edition? Secure your spot today with a premium feature, CEO interview, or advertisement package! Contact us at business@connectingregion.com

A lighter take on ambition, leadership, and regional quirks — paired with one extraordinary animal doing what humans often can’t: adapting without drama. Out this March — a region moving, competing and reinventing itself. All in The Region. The Region

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