The Region 2024 no. 6

The Region

Where German Industry Feels at Home Trade in High Gear Across Adria Zoran Drakulić on What Must Change What Will Define the Next 5 Years?

Transforming the Western Balkans Economy

No.6 • JANUARY - MARCH 2025

9 773009 438006 >

ISSN 3009-4380

The German Footprint

The Region As part of the AIM publishing family, The Region builds on the legacy of CorD Magazine’s 22 years of excellence

DIRECTOR & EDITOR-IN-CHIEF: Ana Novčić a.novcic@connectingregion.com DESIGN: Slađan Radosavljević Zoran Perović 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

IN THIS ISSUE This issue opens with ”The German Chapter” — an exploration of Germany’s investment presence across the Adria region. But it doesn’t stop there. From regional logistics and agriculture to digital innovation, consumer activism, and the green transition — these pages trace the people, policies, and partnerships shaping the region’s future.

EDITORIAL & OUTREACH ASSOCIATE Anđela Radovanović a.radovanovic@connectingregion.com TRANSLATION & EDITING: Marija Jurić PHOTOS: Zoran Petrović Shutterstock ADVERTISING: Biljana Dević b.devic@connectingregion.com Mihailo Čučković m.cuckovic@connectingregion.com SUBSCRIPTIONS: Svetlana Petrović subscribe@connectingregion.com FINANCE: finance@aim.rs PRINTING: Rotografika d.o.o.

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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

04

The Region

Milan Grujić, President of the German-Serbian Chamber of Commerce, shares insights on trade, talent and technology p.18

ADRIA'S VOICE IN GLOBAL BUSINESS

CONTENTS FROM THE INSTITUTIONS • Comment: Damien Sorell, EIB p.6 • Interview: Amer Kapetanović, RCC p.82 • RCC in Figures p.84

THE GERMAN CHAPTER (Pages 8–21)

INDUSTRY & INNOVATION • Interview: Laura Tyler, Adriatic Metals p.38 • AI in Business p.40 • The Infrastructure Behind the Promise p.44 • Sustainability Playbook p.46

LUXURY & PERSPECTIVE

• Germany & Adria: A Billion-Euro Partnership p.8 •H ow German Companies Are Reshaping the Region p.10 • Interview: Marjan Vučak, AHK Croatia p.12

• Luxury & Influence p.49 • A Region at Work (Visual Feature) p.52

• Germany–Adria in Numbers p.16 • Interview: Milan Grujić, AHK Serbia p.18

• Business Fairs Calendar p.64

• World at a Glance p.56 • Regional Highlights p.60

• Interview: Lilja Pižurica, NELT MNE p.26 • Panel: What Will Define Business 2029? p.28 • Interview: Zoran Milovanović, MTEL Crna Gora p.34 • Interview: Prokopije Perić, PLUS d.o.o. p.36

TALENT, BOOKS & REFLECTIONS • Success Is Contagious p.85 • The Executive Bookshelf p.87 • Psychology of Colour in Business p.88

REGIONAL STRATEGY & BUSINESS VISION • Interview: Bogdan Gavrilović, WTO p.22 • Interview: Marko Nikolić, Innomotics Serbia p.24

The elusive Balkan lynx returns to the spotlight. p.94

CULTURE, NATURE & SATIRE The Consumer Revolt: Six countries, one message p.66

• Regional Roast p.112 • Power Moves: Monday Meetings p.92

CONSUMER FOCUS & CORPORATE VOICES

• Lesser-Known Tales p.94

• The Great Consumer Revolt p.66 • Interview: Zoran Drakulić p.72 • Corporate News p.76 • Fruvita PR Feature p.80

• WildScope: Balkan Lynx p.96

TALENT & LIFESTYLE • Big Question: Should CEOs Retire or Keep Going? p.100 • Athletes in Business p.102 • Young Talent Highlights p.104

BUSINESS TRAVEL & FINAL WORDS • The Region in Numbers p.93 • Branding the Region p.106 • Business Travel p.107 • The Last Word p.111 • In the Next Issue p.114 From left to right: Nina Drakić, Anže Droljc, Rafaela Rica, Goran Stevanović and Tatjana Skoko.

Featured panelists in The Region's roundtable “What Will Define Business 2029?” p.28 The Region

05

Viewpoint

Transformation

of the Western Balkans Economy

Aof the European market is the pivotal route

mid prevailing uncertainties, the integration to sustainability and competitiveness. The Western Balkans are gradually progressing with integration into certain areas of the EU single market under the Growth Plan. While this process is incremental, new opportunities are already arising for accelerated digitalisation and streamlined financial transactions. By further integrating fragmented and small markets, the region can pool resources and knowledge, creating a strong impetus for growth.

Author: Damien Sorrell EIB Head of Regional Hub for the Western Balkans

Foreign direct investments (FDIs) accounted, on average, for 6% of GDP during the last decade, 70% of which came from EU Member States. Their contribution to the adoption of advanced technologies, productivity and job creation has been unquestionable. As an illustration, EU trade with the Western Balkans has grown by almost 130% from 2011 to 2021, while the region’s exports to the EU have increased by 207%. In addition to traditional sectors such as manufacturing, financial services, mining and real estate, which have largely attracted FDIs so far, there is strong potential in the ICT sector due to rapid growth and skilled workforce. Additionally, the renewable energy sector offers substantial opportunities as the region needs to accelerate its transition from coal to more sustainable energy sources.

In the midst of rapid technological advancements and a shifting geopolitical landscape, the region must intensify

06

The Region

its efforts to keep attracting FDIs, which are on a declining trajectory. Some foreign companies have reached the end of their investment cycles and are now repatriating profits. Therefore, a deeper economic transformation based on EU standards and best international practices will be the right way forward for the regional market.

To achieve this, reforms focusing on stability, transparent regulations, and legal certainty should be complemented by initiatives focused on the green and digital transition, human capital and improved connectivity. Only by adopting a new growth model can the region ensure the sustainability and competitiveness of its economy in the longer term.

Preparing For the Introduction Of the CBAM To start with, the shift to a low-carbon industry remains critical. The region is making progress in adopting adequate regulations and upgrading its energy infrastructure. Currently, renewable energy represents approximately 40% of the regional energy mix, compared to 48% in the European Union. Consistent policies in the areas of climate adaptation and mitigation are also a key incentive to enhance the intake of renewables and energy efficiency and tackle increasing air pollution and public health issues. The annual average concentration of fine particulate matter (PM2.5) in the region is 22.8 μg/m³, which is almost double the EU levels and four times higher than WHO recommendations (OECD). Fossil fuels, a major cause of global warming and pollution, still play a significant role in energy generation in the Western Balkans, accounting for 41% to 95% of the electricity mix. Therefore, efforts towards larger integration of renewables and diversification of energy supply should be accelerated further, though we can already see significant improvements.

To support the shift from fossil fuels to renewables, EIB Global signed €315 million in the last five years for new renewable energy projects (such as a wind farm in the Travnik

region and one of the largest solar power plants in Pristina), the modernisation of energy infrastructure and improvement of energy security. We expect the launch of the Carbon Border Adjustment Mechanism (CBAM) to further accelerate the decarbonisation of local economies. Companies in the Western Balkans can greatly benefit from dedicated training and tools to decarbonise their businesses in order to continue exporting to the EU once CBAM comes into force on 1st January 2026.

In this regard, we are implementing the Greening Financial Systems technical assistance program, which aims to help banks and companies understand climate risks, reduce their carbon footprint, and address these challenges through adequate strategies and mitigation projects. The initiative serves as a model for mobilising climate finance by tackling barriers that hold back engagement by commercial banks and SMEs in the green transition process.

In addition, improving the business environment by reducing barriers to investment is associated with higher eco-

The integration of the European market is the pivotal route to sustainability and competitiveness nomic growth. Our analysis shows that SMEs in the region remain credit-constrained due to high interest rates, collateral requirements and complicated procedures. Financial institutions such as the European Investment Bank (EIB Global) can help improve access to finance for local medium and small enterprises by providing long-term financing on favourable terms. This is done through lower interest rates and longer tenors as are generally available on the market, as well as through guarantee products (through the European Investment Fund in particular) that contribute to lowering the collateral requirements and encourage partner banks to take more risks.

Better Connectivity For Faster Trade Flows The expansion of transportation infrastructure, largely supported by the EU, has significantly improved trade flows and operational efficiency. Past improvements have increased real incomes by about 5%, with potential gains

of up to 7% upon EU accession (World Bank). However, the region’s transportation infrastructure remains considerably less developed than that of the EU. Nevertheless, there is an upward trend, with average road infrastructure density increasing from 37 km in 2017 to 39 km in 2021 (OECD). The railway network accounts for approximately 45% of the EU’s total.

As one of the key financiers in the region’s transportation sector, we are actively engaged in EU flagship projects supporting connectivity, such as the upgrade of key railway and road sections in the Western Balkans along the Pan-European corridors, as well as the improvement of navigability and efficiency of waterway transport on the Danube-Rhine Corridor. Along with transport connectivity, investments in digital infrastructure and human capital can boost productivity and enable new technologies to be integrated into industrial and service processes.

Finally, massive brain drain, skills mismatch and lack of workforce continue to impede growth. According to estimations, close to 5 million people from the Western Balkans lived abroad in 2020 (out of 17 million population).

To help provide upskilling and modern learning opportunities, EIB Global has invested €450 million for education and R&D projects across the Western Balkans, supporting educational and scientific facilities.

Market Reforms Towards Better Investment Climate Going forward, timely implementation of the reform agendas under the Growth Plan will support a more conducive investment-friendly climate and help remove barriers that companies currently face, along with further industrial diversification, upskilling, and sustainable connectivity. As the EU bank, we will continue providing support for regional development, together with the European Commission and other international financial institutions (IFIs) within the Western Balkans Investment Framework. As an example of this approach, the Economic and Investment Plan is expected to mobilise €10.5 billion, including €3 billion in EU grants, for sustainable transport, energy, environment and climate, digital infrastructure, human capital, and private sector development.

With €11 billion invested in the region since 2010, we have contributed to improved infrastructure and private sector growth, as well as to the integration of EU standards into regional policies. By expediting the adoption of these standards, the flow of tangible benefits for people and businesses is accelerated. This means a cleaner environment and energy, smart transport solutions, and increased access to finance. We stand ready to further these efforts. ∙

Key FACTS €11 billion EIB investment in the Western Balkans since 2010

70% Share of FDI from EU Member States

207% Increase in Western Balkans’ exports to the EU (2011–2021)

40% Share of renewables in the region’s energy mix (EU: 48%)

22.8 μg/m³ PM2.5 air pollution level (almost double EU levels)

5 million People from the Western Balkans living abroad

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The Region

The German Chapter

Germany & Adria

A Billion-Euro Partnership With German investments fueling industries from automotive to IT, what’s next for the region’s economic ties with Europe’s powerhouse? We spoke with key industry leaders to find out

T

he Economic Engine Behind German Investments Germany has long been a dominant economic force in the Adria region, shaping industries, creating jobs, and integrating local economies into the wider European supply chain. But why is Germany so deeply invested in Adria, and where is this partnership heading next?

But challenges remain. Inflation, regulatory uncertainties, and EU integration hurdles have created both opportunities and risks for German investors.

From automotive giants setting up factories in Serbia and Slovenia to German energy companies financing renewable projects in Croatia and North Macedonia, this relationship goes beyond trade—it is a strategic alliance shaping the region’s future.

To understand the real impact and future trajectory of German investments in Adria, we turned to two key figures at the forefront of this economic relationship:

But the landscape is evolving. As global economic shifts, EU enlargement efforts, and new investment incentives emerge, how will German-Adria business ties transform in the coming years?

A CORNERSTONE OF REGIONAL GROWTH Germany is one of the largest foreign investors in the Adria region, with its companies deeply embedded in key industries like automotive, manufacturing, finance, and energy.

The automotive sector remains one of the strongest pillars of German investment. Major manufacturers such as Mercedes-Benz, ZF, and Continental have established production hubs in Serbia and Slovenia, integrating the region into Europe’s supply chain. In Croatia and North Macedonia, renewable energy projects backed by German companies are playing a critical role in the region’s transition to a greener economy.

At the same time, German investments in IT and digital infrastructure are rising, with Berlin increasingly seeing the Adria region as a cost-effective and talent-rich base for tech operations.

GERMAN BUSINESS LEADERS SPEAK OUT

•M arjan Vučak, President of the German-Croatian Chamber of Commerce page 12 • Milan Grujić, President of the German-Serbian Chamber of Commerce page 18 These two leaders have a firsthand perspective on how German companies view the Adria region, the industries attracting the most capital, and the biggest opportunities and risks in the coming years.

In our exclusive interviews, they discuss:  How German investments are shaping Croatia and Serbia’s economies  Which German companies have had the biggest impact and in which sectors  How Croatia’s EU & Schengen integration is driving investment growth  What challenges do German investors face and how to overcome them  The role of Croatia and Serbia as regional entry points for German business  A dvice for German business leaders entering the Adria region

The Region

09

The German Chapter

How German Companies Reshape the Region

From Industry Leaders to Innovation Drivers

G

ermany’s presence in the Adria region is far more than just trade—it’s a force reshaping industries, transforming economies, and fueling innovation. As the region’s largest investor and trading partner, Germany’s companies are not only expanding their business operations but also modernising infrastructure, advancing green energy, and revolutionising the manufacturing sector.

SLOVENIA

Whether it’s automotive giants fueling industrial expansion in Serbia and Slovenia, renewable energy leaders transforming Croatia and Albania, or digital pioneers investing in IT hubs in North Macedonia, German firms are actively redefining the business landscape.

German Industry Powers Manufacturing Growth Germany has long been synonymous with precision engineering and industrial innovation, and this expertise is shaping the region’s manufacturing sector.

SERBIA

■ I n Serbia, Bosch and Continental have turned the country into a strategic automotive production hub, supplying components to Germany’s biggest carmakers. Serbia now plays a crucial role in Germany’s global supply chain, producing sensors, electronic systems, and high-tech automotive parts.

■ I n North Macedonia, German companies dominate the automotive and electrical machinery sectors, accounting for more than 50% of the country’s exports. The TIDZ (Technological Industrial Development Zones) have attracted significant German investment, particularly in automotive electronics and mechanical engineering.

■ In Bosnia and Herzegovina, German firms are modernising metal processing and machinery production, reinforcing the country’s position as a key supplier to the EU’s industrial sector.

Green Energy Investments Transform the Market Germany is a global leader in renewable energy, and its commitment to sustainability is evident in the Adria region. roatia is at the forefront of this transition, with German energy firms C investing heavily in wind farms, solar power projects, and energy storage solutions. Siemens Energy, in partnership with KON­ČAR, is leading the charge in smart energy infrastructure.

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The Region

NORTH MACEDONIA

CROATIA

Albania, known for its hydropower potential, is seeing German investments in grid modernisation and energy efficiency projects to improve its energy stability and exports. ontenegro is attracting interest for its eco-friendly tourism and enM ergy projects, where German investors are working on sustainable infrastructure and green transport solutions.

Germany Fuels Digital Innovation Beyond traditional industries, Germany’s growing influence in IT and digital services is making a significant impact.

Slovenia, one of the region’s most advanced digital economies, is home to several German-backed AI and cybersecurity firms, strengthening the country’s position as a regional tech leader.

North Macedonia has emerged as an attractive destination for German IT outsourcing and software development, benefiting from a highly skilled workforce and competitive costs.

I n Croatia, German companies are investing in digital banking, fintech, and e-commerce solutions, accelerating the region’s transition toward a technology-driven economy.

Infrastructure and Logistics Drive Connectivity MONTENEGRO

Germany’s investment in the Adria region’s transport and logistics infrastructure is strengthening trade routes and boosting economic integration.

I n Serbia, Deutsche Bahn is involved in rail modernisation projects, improving links between Belgrade and European trade hubs.

ALBANIA

I n Slovenia and Croatia, German logistics giants are developing smart warehousing and supply chain solutions, making the region a key point in EU trade flows. ontenegro’s infrastructure growth is benefiting from German inM vestments in transport and smart city projects, enhancing connectivity across the region.

Why the Adria Region Is a Strategic Priority Germany’s commitment to the Adria region is more than just economic— it’s strategic. With a skilled workforce, competitive investment climate, and increasing EU integration, the region is becoming a prime destination for long-term German business expansion.

BOSNIA & HERZEGOVINA

From next-generation mobility solutions to AI-driven industries and renewable energy, German companies are not just doing business in the Adria region—they are reshaping its future.

The Region

11

The German Chapter

12

The Region

Where German Industry Feels at Home Marjan Vučak, President of the German-Croatian Chamber of Commerce - AHK Croatia, on the German investments shaping Croatia’s future, why relationships matter in business, and how Croatia is becoming a gateway to the wider Adria region.

By IVANA BABIĆ

W

ith bilateral trade exceeding €8.46 billion in 2023, Germany has firmly established itself as Croatia’s most important economic partner.

From automotive and renewable energy to IT and manufacturing, German companies are investing heavily, transforming industries and creating new opportunities.

President of the German-Croatian Chamber of Commerce (AHK Croatia) and CEO of MEGGLE for Southeastern Europe, Marjan Vučak, shares key insights on major success stories, Croatia’s growing role as a regional hub, and why trust and long-term partnerships are crucial for business success.

German-Croatian business ties have evolved significantly over the years. What key figures or milestones best illustrate this progress, and if you had to capture this evolution in a single word or phrase, what would it be—and why?

The economic relationship between Germany and Croatia has flourished over the years, with AHK Croatia playing a vital role in fostering bilateral cooperation. Today, Germany is Croatia’s most important trade partner, with bilateral trade exceeding 8,46 billion euros in 2023. Ger-

man companies have made significant investments in automotive, IT, renewable energy, and manufacturing, strengthening Croatia’s industrial landscape.

Key milestones such as Croatia’s EU accession in 2013 and its Eurozone and Schengen integration in 2023 have further enhanced trade and investment flows. The elimination of border controls and the adoption of the euro have simplified transactions and logistics, making Croatia an even more attractive destination for German businesses.

AHK Croatia actively supports companies in navigating these new opportunities, ensuring a smooth transition for businesses adapting to the evolving market. Summing up this evolution in a single phrase, “Partners in Progress” captures the essence of German-Croatian economic cooperation - where German investment and expertise meet Croatian innovation and adaptability, creating growth opportunities.

Which German companies have had the most impact on Croatia’s economy, and in which industries do they operate? What do you see as the most remarkable success stories?

Industrial German giants like Siemens and Bosch have played a significant role in shaping Croatia’s economic The Region

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The German Chapter

Major German Investment Projects in Croatia (2024) • Siemens Energy & KONČAR (2024) – Building a transformer factory.

•R heinmetall & DOK-ING (2024) – Developing unmanned defence systems.

Rimac’s German Investment Connection Rimac Automobili is a key example of German investment in Croatia, with Porsche owning 24% of Rimac Group and 45% of Bugatti Rimac, a joint venture formed in 2021. Backed

by Volkswagen Group and Porsche, Rimac develops cutting-edge EV and battery technology used by BMW, Mercedes, and Porsche. The €200 million Rimac Campus, partly supported by German investors, cements Croatia’s role in Germany’s high-tech automotive supply chain.

landscape. A standout success story is the strategic partnership between Rimac Automobili and Porsche. What began as a Croatian startup has evolved into a global leader in electric hypercars and battery technology, with Porsche as a key investor. Notable projects in 2024 include Siemens Energy’s joint venture with Končar to build a transformer tank factory and Rheinmetall’s collaboration with DOK-ING to develop unmanned defence systems. AHK Croatia actively supports these ventures, driving innovation, strengthening partnerships, and creating investment opportunities between German and Croatian companies.

Beyond the numbers, what do German businesses value most about operating in Croatia? Is there a key factor that often surprises investors?

Beyond the numbers, German businesses appreciate Croatia’s skilled workforce, strategic location, and strong connections within the EU market. Another important factor is the absence of major cultural differences between Germany and Croatia. Additionally, the country’s quality of life, beautiful environment, and welcoming business culture make it an attractive destination for long-term investments.

Many see Croatia’s EU and Schengen integration as a game-changer for trade. Have German companies already felt the impact, or is the best yet to come?

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Croatia’s integration into the EU and Schengen area has been important for trade and investment. German companies have already experienced tangible benefits, particularly in terms of faster and more efficient logistics, reduced administrative burdens, and improved market access. In our annual economic survey conducted among Croatian and German companies, respondents positively assessed Croatia’s entry into the Schengen area and the adoption of the euro. In particular, the euro has simplified transactions and eliminated currency exchange risks— a significant advantage for German investors. The foundations are set, and the best is likely still to come.

Numbers often tell the most compelling story of economic ties.

Looking at German investment, trade volume, or other key indicators, which statistics best showcase the strength and trajectory of German-Croatian business relations?

Trade between Croatia and Germany continues to play a crucial role in Croatia’s economic landscape. According to the latest data for the period January to October 2024, Croatia’s exports to Germany amounted to 2.39 billion euros, marking a slight increase of 1.2% compared to the same period in 2023. At the same time, imports from Germany reached 5.01 billion euros, reflecting a 6.2% increase. In terms of investments, German

•B ugatti Rimac (since 2021) – High-end hypercar & EV technology partnership.

The Impact of Schengen & Eurozone Integration usiness Benefits: Since joining the B Schengen Zone and adopting the euro in 2023, Croatia has seen: • F aster, more efficient logistics for businesses •R educed administrative and currency exchange costs • I ncreased investor confidence in longterm stability S urvey Insight: 80% of German businesses in Croatia report that Schengen and euro adoption have positively impacted operations.

Germany and Croatia share more than just strong trade relations. Decades of cooperation have fostered innovation, business growth, and long-term investment stability

In 2023, bilateral trade between Germany and Croatia exceeded €8.46 billion

companies have been active in various sectors, including manufacturing and infrastructure.

While most German investments flow into Croatia, Croatian investments in Germany remain limited but are gradually increasing, especially in the IT and service industries. We have also noticed a rising number of Croatian member companies opening branches in Germany, particularly in IT and construction. Strengthening

benefit from Croatia’s geographical position, strong local expertise, and deep economic ties with neighbouring markets. Looking ahead, further strengthening this position will require continued investment in infrastructure, digitalisation, and workforce development. Additionally, fostering stronger economic cooperation with neighbouring countries and streamlining administrative processes for foreign investors would reinforce Croatia’s

Germany-Croatia Trade in Numbers T otal Trade Volume: In 2023, Germany-Croatia trade surpassed €8.46 billion, making Germany Croatia’s largest trade partner.

rowth Trend: Trade between G the two countries has grown steadily over the past decade, with further expansion expected as supply chains evolve.

K ey Sectors: Major areas of export and investment include automotive, industrial manufacturing, renewable energy, and IT. Why It Matters: These investments signal longterm confidence in Croatia’s industrial, energy, and tech sectors.

Croatia as a Gateway to the Adria Region Representatives from KONČAR Inc. and Siemens Energy signed a Joint Venture Agreement in July 2024 in Zagreb, marking a new chapter in their long-standing collaboration. The partnership will expand manufacturing capacities for transformer tanks, strengthening Europe’s energy infrastructure and reinforcing Croatia’s role in the global energy supply chain.

bilateral investments will further deepen economic ties and create new business opportunities. Croatia also holds strong potential in renewable energy, thanks to its favourable climate and geological conditions. Expanding this sector is key to meeting sustainability targets, and investors will find promising opportunities in this growing market.

Croatia is often seen as an entry point for German businesses into the wider Adria region. Do you see this evolving, and what would help strengthen this position?

Its EU and Schengen membership, adoption of the euro, and well-developed infrastructure make it an attractive hub for regional operations. German companies

role as a key link between Germany and the broader Adria region.

What’s one piece of advice you would give to a German business leader considering Croatia—something they won’t find in a market report?

“Think beyond the numbers—relationships matter.” Business culture in Croatia is based on trust, collaboration, and long-term partnerships. German companies that invest time in building strong local connections—whether with suppliers, clients, or institutions—gain a significant advantage. With AHK Croatia’s expertise and support, German businesses can confidently navigate the Croatian market and beyond. ∙

S trategic Position: With its EU and Schengen membership, strong infrastructure, and skilled workforce, Croatia is an ideal base for German companies looking to expand into Bosnia & Herzegovina, Serbia, Montenegro, and beyond.

I ndustries Benefiting: Automotive, energy, logistics, and digital industries are leveraging Croatia’s position as a regional hub.

F uture Outlook: Further infrastructure investment and cross-border partnerships could strengthen Croatia’s role as a key trade and innovation corridor.

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The German Chapter

German-Adria Trade in Numbers

Germany’s deep economic ties with the Adria region have strengthened, reinforcing its position as the leading trade and investment partner. In 2024, total trade between Germany and the seven Adria countries reached €38.68 billion, reflecting steady growth across multiple sectors. Major trade exchanges include automotive manufacturing, industrial machinery, energy solutions, and digital services.

Slovenia and Croatia lead in total trade volume, while Serbia, Bosnia and Herzegovina, and North Macedonia have solidified their roles as key industrial and manufacturing hubs. Meanwhile, German trade with Albania and Montenegro—though on a smaller scale—is steadily expanding, driven by increasing investments in infrastructure and energy projects.

The following data highlights the scale, trends, and key sectors shaping German trade in the Adria region.

Total Trade Volume with Adria Region (2024)

Slovenia Croatia Serbia Countries

Germany remains the Adria region’s most influential trade partner, with total trade exceeding €38.68 billion in 2024. From automotive and industrial exports to renewable energy and IT investments, Germany’s economic footprint is reshaping industries and strengthening regional ties.

North Macedonia Bosnia & Heryegovina Albania Montenegro 0

2

4

6

8

Trade Volume (Billion €)

10

12

Germany’s Top Trade Partners in the Adria Region (2024) Serbia

31.1%

42.0%

27.0% Croatia

▸ K ey Insight: “Slovenia

is Germany’s largest trade partner in the Adria region, followed by Croatia and Serbia, making up nearly 80% of total trade volume.”

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Slovenia

Adria Trade in Numbers

GERMANY’S TRADE WITH NORTH MACEDONIA (2024): Exports to North Macedonia: €1.414 billion Imports from North Macedonia: €3.381 billion Total Trade Volume: €4.795 billion Trade Balance: €1.967 billion (in favour of N. Macedonia)

Germany’s trade with the Western Balkans grew by 8.2% from January–August 2024, surpassing €5.8 billion

Source: Statistisches Bundesamt (Destatis)

GERMANY’S TRADE WITH CROATIA (2024):

GERMANY’S TRADE WITH ALBANIA (2024):

Exports to Croatia: €5.653 billion Imports from Croatia: €2.507 billion Total Trade Volume: €8.160 billion Trade Balance: €3.146 billion (in favour of Germany)

Exports to Albania: €0.517 billion Imports from Albania: €0.228 billion Total Trade Volume: €0.745 billion Trade Balance: €0.289 billion (in favour of Germany)

Source: Statistisches Bundesamt (Destatis)

Source: IMF Direction of Trade Statistics

GERMANY’S TRADE WITH SLOVENIA (2024):

GERMANY’S TRADE WITH MONTENEGRO (2024):

Exports to Slovenia: €7.182 billion Imports from Slovenia: €5.527 billion Total Trade Volume: €12.709 billion Trade Balance: €1.655 billion (in favour of Germany)

Exports to Montenegro: €0.228 billion Imports from Montenegro: €0.125 billion Total Trade Volume: €0.353 billion Trade Balance: €0.103 billion (in favour of Germany)

Source: Statistisches Bundesamt (Destatis)

Source: IMF Direction of Trade Statistics

GERMANY’S TRADE WITH SERBIA (2024):

Germany maintains robust trade relationships with the Adria region, with Slovenia and Croatia being the largest trading partners in terms of total trade volume. Notably, Germany has a trade surplus with most countries in the region, except for North Macedonia, where the trade balance favours North Macedonia.

Exports to Serbia: €4.764 billion Imports from Serbia: €4.646 billion Total Trade Volume: €9.410 billion Trade Balance: €0.118 billion (in favour of Germany) Source: Statistisches Bundesamt (Destatis)

Key German Investment Trends

GERMANY’S TRADE WITH BOSNIA AND HERZEGOVINA (2024):

in the Adria Region for 2025+

Exports to Bosnia and Herzegovina: €1.321 billion Imports from Bosnia and Herzegovina: €1.188 billion Total Trade Volume: €2.509 billion Trade Balance: €0.133 billion (in favour of Germany) Source: Statistisches Bundesamt (Destatis)

Green Energy Exspansion Automotive & E-Mobility IT & Digital Services Growth Infrastructure & Logistics Manufacturing & Supply Chains 0

Germany &

2

4

6

Projected Business Impact (1-10)

Exports (€B)

Imports (€B)

Total Trade (€B)

Trade Balance

Slovenia

7.18

5.53

12.7

+1.65B (Germany surplus)

Croatia

5.65

2.51

8.16

+3.14B (Germany surplus)

Serbia

4.76

4.65

9.41

+0.12B (Germany surplus)

N. Macedonia

1.41

3.38

4.79

-1.97B (Macedonia surplus)

Bosnia & Herz.

1.32

1.19

2.51

+0.13B (Germany surplus)

Albania

0.52

0.23

0.75

+0.29B (Germany surplus)

Montenegro

0.23

0.13

0.35

+0.10B (Germany surplus) The Region

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The German Chapter

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Trade in High Gear Milan Grujić, President of the German-Serbian Chamber of Commerce-AHK Serbia, highlights Serbia’s “resilient transformation” as a strategic hub for German industries, with over 80,000 people employed in German companies and exports in mobility skyrocketing 300% since 2015

By MARKO NIKOLIĆ

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erman-Serbian economic relations have evolved into a high-impact, forward-looking partnership driven by resilient growth, industrial innovation, and a highly skilled workforce. With over 80,000 people employed in German companies in Serbia and bilateral trade surpassing €9.37 billion in 2023, Serbia has solidified its role as a key industrial and technological hub for Germany.

For Milan Grujić, President of AHK Serbia and Managing Director of ZF Serbia, the partnership is about more than just numbers—it’s about co-creation, adaptability, and Serbia’s strategic advantage in the European supply chain. From automotive and mobility solutions to digital transformation and green energy, German companies are shaping Serbia’s future—and Serbia is shaping theirs in return.

In this interview, Grujić discusses how Serbia has attracted top-tier German investments, why the country is seen as a production and innovation hub, and what lies ahead in the next era of German-Serbian business cooperation.

Over the past decade, German-Serbian business ties have deepened significantly. What key figures or milestones best illustrate this

progress, and if you had to capture this evo lution in a single word or phrase, what would it be—and why?

If I had to distil the evolution of German-Serbian business relations into a single phrase, it would be “Resilient Transformation.”

Over the past decade, we’ve not only expanded economic ties but fundamentally redefined how we collaborate. Trust, long-term partnership and shared vision have fueled this shift. The numbers reflect it: while global trade contracted in 2023, trade between Serbia and Germany grew by 11.1%, surpassing €9.37 billion.

One of the most striking transformations has been in mobility — in this sector, from 2015 to 2023, Serbia’s exports to Germany skyrocketed 300%. This isn’t just about volume; it’s about Serbia becoming a strategic player in the European supply chain, integrating its expertise into advanced industrial processes.

Beyond figures, over 80,000 people are now employed in German companies in Serbia, shaping the industries of tomorrow. The road ahead is clear: with digitalisation, green transition, and industrial modernisation, Serbia has the potential to solidify its position as a key economic partner to Germany. Our role is to ensure we make the most of these opportunities.

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The German Chapter

German Investment & Workforce Development in Serbia

Serbia’s Unique Position in the EU Supply Chain

Employment Impact: Over 80,000 people work in German companies in Serbia, making Germany one of the largest foreign employers in the country.

Strategic Advantage: Serbia operates inside the EU’s economic framework while retaining flexibility outside full membership, allowing cost-competitive manufacturing with easy EU access.

Education & Training: Companies like ZF and Siemens have launched dual education programs, bridging the gap between academia and industry needs.

Why It Matters: German firms aren’t just hiring—they’re developing Serbia’s next generation of engineers, technicians, and digital specialists.

Which German companies have made the biggest impact in Serbia, and what stands out as the most remarkable success stories?

German companies in Serbia are not just investors; they are catalysts for change.

They create ecosystems of knowledge, innovation and sustainable development, positioning Serbia as a key European industrial hub.

At ZF Serbia, where I serve as managing director, we’ve witnessed first-hand how a commitment to innovation and talent development transforms an industry.

In just a few years, ZF Serbia has become a leading hub for e-mobility, contributing to Serbia’s integration into global supply chains and shaping the future of automotive technology.

Siemens has revolutionised railway mobility. Bosch has turned Serbia into a strategic hub for automotive electronics. Leoni has significantly contributed to employment, particularly in southern Serbia.

What’s particularly exciting is that these companies aren’t just producing— they’re innovating. They’re integrating Serbian engineers into global R&D projects, ensuring that our workforce doesn’t just follow industry trends but actively defines them. This is the true success story of German-Serbian cooperation: co-creation of the future.

What makes Serbia the next big destination for German investment, and how would you present this opportunity to potential investors?

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Key Sectors Benefiting: Automotive, electronics, and industrial manufacturing leverage Serbia’s low production costs while maintaining EU market standards.

Future Outlook: As supply chains recalibrate post-pan­de­mic, Serbia’s role as a regional production and logistics hub will only grow.

Serbia is no longer just an emerging market—it is a strategic investment destination that bridges Europe’s industrial and technological shifts. What makes it so attractive? First, its location. Positioned at the crossroads of Europe, Serbia offers unparalleled access to key EU markets while maintaining cost advantages that make production and operations highly competitive. Logistics efficiency is only improving,

Serbia isn’t just following global industry trends—it’s shaping them with ongoing infrastructure projects reinforcing Serbia’s role as a central player in regional supply chains.

But beyond geography, what truly defines Serbia’s appeal is its people. The Serbian workforce is highly skilled, adaptable and eager to innovate. At ZF, we’ve seen firsthand how Serbia’s engineers and technical specialists integrate seamlessly into global R&D processes, not just following industry trends but actively shaping them. This ability to merge cost efficiency with high-value innovation is what sets Serbia apart.

At the same time, Serbia’s economic partnership with Germany is already well-established. Germany is Serbia’s largest trading partner, and despite global economic uncertainties, bilateral trade continues to grow at an impressive rate. This reflects Serbia’s commitment to fostering economic cooperation and continuously improving its investment framework.

While challenges exist, Serbia has proven its ability to adapt, making it a stable and attractive long-term destination for investment.

For German investors, Serbia represents more than just a market — it is a strategic platform for growth in an era of economic realignment. Those who recognise this early will not only benefit from Serbia’s competitive advantages but will also play a defining role in shaping the country’s next phase of industrial and technological transformation.

Serbia has positioned itself as an industrial and production hub for many German companies. What’s the ‘secret ingredient’ that keeps attracting investors?

If there’s one defining factor, it’s Serbia’s ability to adapt and innovate in real-time.

Serbia offers more than a workforce — it offers problem solvers, innovators and partners who move at the speed of change. German companies in Serbia aren’t just outsourcing — they’re co-creating new solutions, whether in mobility, industrial automation or digital transformation.

The German Serbian Trade Surge Fact: In 2023, Germany-Serbia trade grew by 11.1%, exceeding €9.37 billion, even as global trade slowed.

Why It Matters: This consistent growth trend underscores Serbia’s rising role as a production and export hub for Germany.

What’s Next: With ongoing investments in mobility, automation, and green energy, trade volume is expected to surpass €10 billion in 2025.

Serbia’s Role in Germany’s Automotive Future Key Growth Area: Since 2015, Serbia’s mobility exports to Germany have surged 300%.

Major Players: ZF, Bosch, and Leoni lead Serbia’s e-mobility and automotive electronics expansion, ma­king Serbia a key link in the EU’s auto supply chain.

Looking Ahead: As electric vehicle (EV) production accelerates, Serbia’s automotive R&D and smart production capabilities will play an even bigger role in the industry.

What also sets Serbia apart is its business agility. Unlike larger, slower-moving markets, Serbia makes decisions quickly and executes efficiently. This is a crucial advantage in an era where geopolitical and economic uncertainties demand rapid adaptation.

Serbia is outside the EU but deeply integrated with the European economy. How does this positioning help or challenge German businesses?

Serbia is in a unique position — it operates within the EU’s economic framework while retaining strategic flexibility. For German businesses, this means seamless access to European supply chains and regulatory frameworks, competitive cost structures for production and operations and agility in adapting to global market shifts.

This positioning allows companies to leverage Serbia as a hub for production, innovation and regional distribution while avoiding some of the bureaucratic complexities that come with EU membership. It’s a strategic advantage that is becoming even more relevant as supply chains recalibrate in response to global disruptions.

German businesses often focus on workforce development and vocational training. What are some key statistics that highlight their impact in Serbia?

German companies in Serbia are not just hiring — they are shaping the future workforce.

ZF Serbia has pioneered dual education programs, working with universities and technical schools to align training with real-world industry needs.

Also, German firms have been instrumental in bridging the skills gap, particularly in mobility, automation and IT. Even amidst global labour market challenges, German companies in Serbia remain committed to long-term workforce development.

The result? A pipeline of highly skilled, globally competitive talent that strengthens not just individual companies but the entire economic ecosystem.

What’s one thing German investors often misunderstand about Serbia

Over 80,000 people work in German companies in Serbia, contributing to one of Europe’s fastest-growing industrial ecosystems before entering the market—and what’s one aspect they always end up appreciating the most?

I would say that a crucial misconception and a common concern among German investors is that Serbia’s business environment is overly complex due to bureaucracy. While administrative challenges exist, the reality is that Serbia has undergone significant reforms in recent years, simplifying processes and improving the investment climate.

On the other hand, what they appreciate most, and what is the biggest revelation for investors, is Serbia’s talent pool. They quickly recognise that Serbian professionals don’t just execute tasks but contribute strategically. The level of expertise, problem-solving ability and innovation mindset is what truly sets Serbia apart.

Ultimately, success in Serbia isn’t just about finding cost-effective operations — it’s about discovering a dynamic, forward-thinking business environment that fosters long-term value creation.

Finally, what I would like to notice and what I find important is the fact that the German-Serbian economic partnership is at an inflection point. The next decade for sure will be shaped by digitalisation, green transition and supply chain reinvention.

For companies willing to embrace change, invest in innovation and build long-term partnerships, Serbia represents an opportunity that extends far beyond the numbers.

The real question isn’t whether Serbia is ready for the future — the question is: Are we ready to seize the opportunities that the future offers us? ∙ The Region

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In conversation with Bogdan Gavrilović, Managing Director of World Transport Overseas Group

Driving Global Logistics Forward WTO Group expands into the U.S. and Montenegro, with eyes firmly set on Vision 2030

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ith a mission to bridge tradition and innovation, the World Transport Overseas (WTO) Group is charting a clear path toward becoming a truly global logistics provider. In this exclusive interview, Managing Director Bogdan Gavrilović discusses the company’s ambitious Vision 2030 strategy, its latest international expansions, and its upcoming appearance at one of the industry’s leading trade fairs in Munich.

What are your key goals for the upcoming period, and how do you see your company’s role in the future of the transport industry in the region?

At WTO, we continuously merge tradition with innovation, offering tailored logistics solutions that help our clients navigate challenges with ease.

But we don’t stop there. Our goal is to evolve into a truly global logis-

WTO plans to open a representative office in Germany by the end of this year.

tics company—an ambition we are actively pursuing through our Vision 2030 strategic plan, which we’ve previously introduced in this magazine.

By expanding our reach, embracing cutting-edge technology, and remaining committed to sustainability, we are steadily growing to meet the needs of our clients around the world. With a strong customer-centric approach, we’re dedicated to delivering efficient and reliable logistics solutions on a global scale.

Your company recently opened offices in Montenegro and the U.S., strengthening your international presence. What were the key factors behind the decision to expand into these markets, and what opportunities do you see in these regions?

WTO USA, Inc. was officially launched at the Delmar Drive Business Campus, part of the Folcroft West Business Park. This strategic location— 22

The Region

Impressive Figure Over 30,000 cubic meters of consolidated container cargo imported in a single year through the Adriatic region

just minutes from Philadelphia International Airport (PHL) and Interstate 95—significantly boosts our capabilities in ocean freight, fast and secure air cargo, and efficient road transport solutions throughout the United States and Canada.

Opening this office is a vital step in realising our Vision 2030 strategy, as it positions us in one of the world’s key logistics hubs.

We’re proud to have Raymond Knott at the helm of our U.S. operations. With decades of experience and a strong reputation as one of the nation’s leading logistics professionals, Mr Knott is a perfect fit for our global team. His leadership will be crucial to ensuring our success in the region, and we warmly welcome him to the WTO family.

In addition to the U.S., we’ve recently opened an office in Montenegro, further strengthening our regional footprint. Vuko Jablan has been appointed Managing Director of WTO Montenegro. While Montenegro may be a small country, it holds great strategic importance for our regional growth due to its location and connectivity. We see significant potential in this new office.

How significant is your participation at the Transport & Logistic 2025 trade fair in Munich, and what can clients and partners expect?

We are proud to announce that WTO will be exhibiting at Transport & Logistic 2025—the world’s leading trade fair for logistics, mobility, IT, and supply chain management. The event will take place from 2 to 5 June 2025 at the Messe München exhibition centre in Munich.

This marks our consecutive appearance at the fair, and it’s especially noteworthy that our stand will host representatives from all 15 countries where WTO operates. We warmly invite our esteemed clients and partners to visit us at Stand 403 in Hall B2.

This event offers a unique opportunity to explore the latest industry trends, discuss innovative solutions, and strengthen our collaborations. ∙

In conversation with Marko Nikolić, CEO of Innomotics Serbia

Driving Serbia’s Green and Industrial Transition

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arko Nikolić, CEO of Innomotics Serbia, discusses how the company is helping shape the region’s industrial future. From replacing steam or gas turbines with electric motors and drives to enabling growth by increasing efficiency, Innomotics is driving forward innovation, sus-

Innomotics at a Glance 15,000+ employees worldwide 150+ years of engineering tradition #1 globally in Medium Voltage Drive #1 globally in IEC Low Voltage Motors #1 (shared) in High Voltage Motors

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tainability, and digitalization in Serbia and the Adria region. With global expertise and local execution, the company is positioning itself as a catalyst for both industrial modernization and the green transition.

Innomotics builds on more than 150 years of experience in the development of efficient and reliable electric drive systems. How does this heritage shape your approach to innovation, quality, and building trust with clients in the Serbian and regional markets?

Our legacy of trust and engineering excellence underpins everything we do. With five specialized business areas, we offer a wide portfolio of motors, drives, integrated solutions, and both classic and digital services.

Whether it’s industrial electrification, automation, sustainability, or digitalization, Innomotics Serbia serves a broad spectrum of markets across the region, including Croatia, Bosnia and Herzegovina, North Macedonia, Montenegro, and selected clients in Slovenia. Our focus is on solutions for the minerals industry, where we offer technologies that inte-

grate all processes and data—from extraction to transportation and beneficiation, and from field operations to management.

Following the carve-out from Siemens and the establishment of your headquarters in Germany, Innomotics continues its global expansion. How do you view the role of German investments in modernizing industry and infrastructure in Serbia?

The sale of Innomotics, a globally leading provider of electric motors and large drive systems, was completed on October 1, 2024. Headquartered in Nuremberg, Germany, Innomotics had operated as an independ-ent Siemens subsidiary since July 2023. The company is now fully independent.

This milestone marks a new chapter for us as we continue to strengthen our global leadership in drive systems. Our purpose, “Redefining reliable motion for a better tomorrow,” reflects our ambition to rethink electric drive technology through higher reliability, efficiency, and sustainability. German investments play a critical role in this journey, supporting Serbia’s transition to a more modern and efficient industrial base.

In one of your recent LinkedIn posts, you highlighted the strength of your global team of 15,000 experts. How does this international expertise contribute to local projects in Serbia and the wider region?

Our global presence enables us to respond quickly to market changes, while our 15,000 experts bring deep knowledge and best practices to every project. In Serbia and the region, this international perspective translates into smarter, faster, and more resilient solutions. We are incredibly proud of our team’s enthusiasm and unity. The shared drive to elevate the Innomotics brand has created a dynamic work culture focused on innovation and long-term success. This spirit is the foundation for delivering value to clients across our regional markets.

Innomotics offers solutions such as turbine replacement systems that bring real value in terms of energy efficiency and operational reliability. Can you share examples of how these systems are being applied in Serbia or the region?

With over 25 years of experience and more than 70 successful turbine replacement projects, Innomotics is a trusted partner in transforming energy systems. Our advanced “Massive Shaft” design delivers unmatched performance and reliability.

In Serbia and Croatia, we have successfully executed turbine replacement projects in the Oil & Gas sector. These upgrades have significantly improved energy efficiency and reduced CO₂ emissions for our clients, offering both operational and environmental benefits.

With sustainability becoming a global priority, how is Innomotics introducing environmentally responsible practices in its operations, and how are you contributing to the green transition in the region?

We see sustainability as both a responsibility and a growth opportunity.

Our global team is committed to transforming the industry by replacing compressor-based gas and steam turbines with electric drive systems.

We also support projects in green hydrogen production and carbon capture, utilization, and storage (CCUS).

Leading Regional Solutions • Turbine Replacement Systems

– Oil & Gas sector in Serbia and Croatia

• High-Efficiency Electric Motors & MV Drives

– Boosting energy efficiency and reducing emissions in the energy sector

Through these efforts, we are helping our clients reduce their carbon footprint while positioning Innomotics as a leader in sustainable industrial solutions.

Which technologies and innovations do you see as key to Innomotics’ future in Serbia, and how are you preparing for rapid technological change?

Energy-efficient motors and medium-voltage drives are central to our strategy. As energy prices and CO₂ taxes rise, our clients need solutions that reduce both cost and emissions. We’re addressing this with highly efficient drive systems for compressors, fans, and pumps.

Our electrification, automation, and digitalization solutions are also helping clients across all industries to optimize processes and accelerate their digital transition. Innovation and adaptability remain at the core of our approach.

We are expanding our solutions business in the Adriatic region supporting global project execution and providing solutions for energy efficiency, carbon capture, and green hydrogen projects What are your main goals for Innomotics in Serbia over the next five years, and how do you plan to address the challenges of an increasingly competitive regional environment?

Our main goal is to deliver full-service solutions tailored to the all industries—from electrical and drive systems to automation and digital platforms. We bring deep process knowledge to the table, helping our clients improve efficiency and sustainability.

We are proud of our long-standing engineering tradition and optimistic about the road ahead. With innovation and expertise as our pillars, we aim to grow sustainably and competitively across the region in the coming years.

For more information, please visit www.innomotics.com or contact us via office.ld.rs@siemens.com.

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In conversation with Ljilja Pižurica, Executive Director of NELT MNE

Nelt MNE Leads in Innovation and Sustainability

Enhancing Efficiency, Embracing Technology, and Leading Sustainability in Logistics

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elt MNE stands at the forefront of logistics and distribution in Montenegro, providing integrated solutions that enhance efficiency and competitiveness for its partners. With a strong focus on innovation, digital transformation, and sustainable practices, the company continues to strengthen its market leadership.

In an exclusive interview, Ljilja Pižurica, Executive Director of Nelt MNE, discusses how the company’s strategic approach—combining distribution, logistics, and trade marketing—has transformed business operations. From expanding warehouse capacities and adopting cutting-edge digital tools to pioneering sustainable initiatives, Nelt MNE is setting new benchmarks in the industry.

Nelt Group is a leading company in logistics services, distribution of consumer goods, pharmaceutical products, and trade marketing. How has this integrated business model performed in Montenegro, and how does it help the companies you work with to be more efficient and competitive in the market?

Our integrated business model has proven to be extremely effective in Montenegro. By combining distribution, logistics, and trade marketing, we provide strong support to our partners, allowing them to focus on their core business while we handle the entire logistics and distribution process. This ensures faster and more secure product placement while simultaneously strengthening brand visibility through innovative trade marketing strategies.

The integration of Montenomaks into Nelt MNE has further enhanced our services, increased efficiency, and strengthened the synergy between distribution and 3PL logistics. Additionally, it has provided our employees with more opportunities for development and growth through diverse and wide-ranging tasks. Today, we operate with over 10,000 m² of warehouse space and a fleet of 67 delivery vehicles and 161 support vehicles, covering more than 2,900 delivery locations. This allows us to respond even more efficiently to market demands. We continuously invest in modernisation and service development because our goal, as always, is to be a reliable and sustainable business partner for our clients.

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Nelt MNE continues to strengthen its leadership position in distribution and logistics. What key factors have led you to this market position, and which business segments do you plan to focus on in the future to further enhance growth and competitiveness?

We build our leadership position strategically—through a long-term vision, operational excellence, and continuous investment. Our greatest strength lies in our employees, followed by top-tier logistics, technological innovations, and flexible solutions tailored to our partners. In the coming period, we remain focused on further modernisation and digitalisation of processes, expanding logistics capacities, and improving services in the pharmaceutical and FMCG sectors. We are also continuing to invest in technology and automation while strengthening sustainable practices in the supply chain. This will further contribute to the long-term stability and competitiveness of not only Nelt MNE but also all the companies we work with.

How do you assess current trends in distribution and logistics in Montenegro and the region? What are the biggest challenges you face, and how do you overcome them?

The logistics and distribution market in Montenegro and the region is undergoing significant changes driven by technological innovations, rising consumer expectations, and global sustainability trends. Digitalisation and automation have become key pillars of business optimisation, while flexibility and delivery speed are increasingly essential industry standards. One of the biggest challenges we face is adapting to dynamic market conditions, from regulatory changes to supply chain fluctuations.

At the same time, the era of digital transformation requires continuous investment in advanced technologies and employee development to maintain high service standards and retain our leadership position. At Nelt MNE, we address these challenges through continuous process modernisation, enhancement of logistics capacities, and implementation of innovative digital solutions. We recognise that the market will continue evolving towards greater digitalisation and automation, and our mission is to lead these changes—offering efficient and reliable solutions that not only improve our partners’ businesses but also contribute to the development of Montenegro’s economy as a whole.

How have digitalisation and technological innovations changed the way you operate? Can you share specific examples of new logistics solutions or digital tools you use to optimise operations?

Since our founding, we have been at the forefront of implementing advanced logistics solutions. By introducing the SAP system, we have ensured precise and efficient business process management, while our WMS Gold system has significantly improved productivity in warehouse operations. To optimise transportation, we use the TMS Sky Track / Track & Trace system, which enables real-time shipment tracking and route optimisation while the E-manifest further accelerates customs processes.

We are also developing a new SFA sales application to improve organisation and field operations, as well as the “Kantar” application for managing trade investments. Additionally, we are working on advanced data models that will allow for more accurate planning and data-driven de-

We operate with over 10,000 m² of warehouse space and a fleet of 67 delivery vehicles and 161 support vehicles, covering more than 2,900 delivery locations

cision-making. Notably, Nelt MNE was the first in Montenegro to introduce parcel lockers—an automated delivery solution that not only enhances our own operations but also elevates the overall market value by setting new standards in logistics and distribution.

Nelt Group is recognised as a regional ESG leader, reflecting your commitment to sustainable business practices.

What key initiatives are you implementing in the area of sustainability, and how do they contribute to the longterm development of your company and the market?

Sustainability is not just our strategic direction—it is an integral part of our daily business operations, reflected in environmental, social, and governance initiatives. Nelt Group was among the first in the region to voluntarily publish a sustainability report following the GRI methodology in 2014, and since 2016, our Montenegrin companies have been included in this report. In the area of environmental protection, we continuously work on reducing carbon emissions through transport optimisation and investments in environmentally efficient solutions. We also improve waste management and promote recycling across all business segments.

On the social front, we focus on fostering an inclusive work environment, employee education, and community support. Through these initiatives, we aim not only to improve Nelt Group’s operations but also to contribute to the market’s overall development—setting new standards for responsible and sustainable business practices in the logistics and distribution industry. ∙

Ljilja Pižurica has been awarded the prestigious 2023 Award for Management Excellence by the Chamber of Economy of Montenegro, presented by President of Montenegro Jakov Milatović

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Roundtable

What Will Define Business Success in Adria in

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Nina Drakić

Anže Droljc

President, Chamber of Economy of Montenegro

Director of Business Development, Better Care, Slovenia

Expertise: Economic policy, institutional cooperation, private sector development

Expertise: Healthcare IT, product strategy, digital transformation in health

Approach: “Continuous cooperation and joint action are essential for creating a stable, predictable business environment that attracts investment and enables sustainable development.”

Approach: “Success in Adria depends on open technology, collaboration, and agility—interoperability and digital innovation are essential for long-term growth.”

the

Next 5 Years?

From shifting geopolitical conditions to digital acceleration and workforce gaps, companies across the Adria region are facing a whirlwind of change. To explore what will define success in this landscape, The Region brings

together five prominent leaders from different sectors and countries. Their insights highlight shared challenges, emerging opportunities, and strategic advice for navigating 2025 and beyond.

Rafaela Rica

Goran Stevanović

Tatjana Skoko

Founder, Iceberg Communication, Albania

Partner, SC Ventures

Sr. Consulting Solution Area Executive, Microsoft CEMA HQ, Croatia

Expertise: Marketing, communications, women entrepreneurship Approach: “Companies must innovate with purpose, lead with values, and integrate sustainability at the core of their regional growth.”

Expertise: Scaling startups, strategy coaching, enterprise sales Approach: “Building great companies starts with building great teams—and helping them perform without losing the joy in what they do.”

Expertise: Digital transformation, cloud strategy, enterprise tech consulting Approach: “I always begin with a deep understanding of context, then build flexible, results-oriented strategies grounded in real-world execution.”

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Roundtable

Q1:

What are the biggest challenges that companies in the Adria region are currently facing?

Q2:

Which industries in the Adria region are expected to have the greatest growth potential in the next five years, and why?

NINA DRAKIĆ: The biggest challenge is the shortage of skilled talent across almost every sector. Added to this are slow digitalisation, global geopolitical shifts, and supply chain disruptions—together these hinder competitiveness. That’s why political and economic stability is essential for long-term growth.

NINA DRAKIĆ: Construction is booming thanks to investments in infrastructure, energy, and tourism. IT and green energy will also grow due to rising demand for digital solutions and sustainability. Tourism will expand in select regional markets.

ANŽE DROLJC: Companies are dealing with economic uncertainty, regulatory shifts, and the need for digital transformation. Fragmented IT systems block data-driven decisions, and the competition for tech and healthcare talent is intense.

ANŽE DROLJC: Healthcare technology and digital health services are gaining momentum, as people demand more personalised care. Defence and energy will also grow, driven by geopolitical shifts and innovation.

GORAN STEVANOVIĆ: Startups often focus too much on tech and not enough on solving real problems. The shortage of skilled salespeople adds to the difficulty of scaling regionally—cross-border growth is still the toughest barrier.

GORAN STEVANOVIĆ: The magic lies in applying AI to traditional industries—construction, agriculture, logistics. It’s not about new vs old, but how well they integrate.

RAFAELA RICA: Geopolitics, supply chain instability, a persistent talent gap, and the financial effects of broader European crises are key issues. Climate change is another growing concern. Interestingly, digitalisation is both a challenge and a growth opportunity.

RAFAELA RICA: Digital economy, fintech, tourism, and energy are poised for growth. Investors should focus on tech-driven finance, digital consumer services, sustainable energy, and innovation in tourism.

TATJANA SKOKO: Legacy systems, low digital skill levels, and pressure to modernise are challenges—but also opportunities. Companies must embrace digitalisation and sustainability to stay resilient amid regulatory demands and shifting consumer expectations.

TATJANA SKOKO: Tech is clearly leading. Infobip, Rimac, and Outfit7 are proof that local innovation can go global. Fintech, AI, cybersecurity, and cloud are key growth areas, driven by strong talent and rising investment interest.

Talent, digital gaps, and shifting global dynamics are reshaping the market 30

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Traditional industries are evolving—tech is now embedded in everything

AI’s Unexpected Impact → 40

are your should companies adapt Q3: How Q4: What key business priorities their business strategies for 2025 and beyond?

for the next two years?

NINA DRAKIĆ: Success will go to those who adapt quickly to consumer demands, regulation, and global trends. Investing in people and innovation will be vital.

NINA DRAKIĆ: Despite global uncertainty, companies will prioritise workforce development, digitalisation, and cost-optimisation through technology.

ANŽE DROLJC: Healthcare companies need modular, AI-ready systems with unified data records. All companies must adopt AI, automation, and strong cybersecurity—sustainability will be a competitive edge, not just a compliance box.

ANŽE DROLJC: Better will focus on scaling its digital health platform and medication safety tools while improving user experience and enabling faster service creation with low-code tools.

GORAN STEVANOVIĆ: Stick to real problems. Financial efficiency now matters more than ever—overfunded, unprofitable growth is no longer tolerated.

GORAN STEVANOVIĆ: Same as always—supporting top founders to achieve product-market fit, scale internationally, or successfully raise funds.

RAFAELA RICA: Large companies should focus on innovation, while smaller ones must embrace digital tools to stay competitive.

Agility, data-driven strategies, and adaptability are key.

RAFAELA RICA: We’ll focus on sustainability, adapting to workforce changes, and accelerating digitalisation to enhance both efficiency and customer experience.

TATJANA SKOKO: Digitalisation, AI, and cloud must become part of core operations. Agility and cybersecurity will define survival.

And those who don’t become data-driven will fall behind.

TATJANA SKOKO: We’re helping businesses embrace AI, build secure systems, upskill talent, and meet sustainability goals using technology.

Agility, talent, and sustainability will define winners

Tech, talent, and sustainability dominate short-term priorities

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Roundtable

advice would Q5: What you give to companies

struggling with expanding their business in the region?

NINA DRAKIĆ: Success depends on thorough preparation—understand local regulations, consumer behavior, and build strong local partnerships. Avoid copy-pasting strategies between countries.

ANŽE DROLJC: Expansion requires local presence and partnerships. Focus on digital resilience, smart data use, and platform openness to unlock growth.

GORAN STEVANOVIĆ: Stop treating the region as the final goal.

Use it to test, refine, and prepare for global scaling. It’s small but rich in learning.

RAFAELA RICA: Many underestimate the complexity of local markets. Tailor your strategy, hire local talent, and integrate sustainability from day one.

TATJANA SKOKO: Each country in the region is different. Cultural awareness and legal understanding are vital. Invest time in market knowledge, local alliances, and long-term thinking.

Don’t copy-paste strategies. Understand the market, partner locally 32

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Where is Adria Headed?

Despite global uncertainty, the Adria region is brimming with opportunity. What unites successful companies across borders is their willingness to adapt, invest in people, embrace technology, and act sustainably.

Key Takeaways: • Digitalisation is no longer optional—AI, cloud, and automation will define competitive advantage.

• Human capital is the battleground—retaining talent and upskilling will determine who thrives.

• Sustainability matters—both for compliance and consumer trust.

• Think regional, act local—understand specific markets, adapt your strategy, and build smart partnerships.

What’s Next?

Companies that integrate agility, digital innovation, and cultural intelligence will not only survive—they’ll shape the future of business in Adria.

Join the conversation: What will define business success in your industry?

Tag us on LinkedIn @connectingregion or send us an your thoughts via email business@connectingregion.com

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The Region is where ideas, perspectives, and ambitions from across the Adria region come together. From industry leaders to bold innovators, we bring you the stories that drive change and shape the future. Stay connected to the pulse of business, progress, and the people making an impact.

In conversation with Zoran Milovanović, Executive Director of MTEL Crna Gora

MTEL’s Mission: Innovation with Purpose

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he revolution that MTEL has sparked in telecommunications and multimedia will make life easier and more beautiful for all citizens, said Zoran Milovanović, Executive Director of the youngest operator in Montenegro, in an interview with The Region. He emphasised that the services created as a result of innovation, vision, and the dedicated work of all employees are slowly but surely writing the technological history of the region—as MTEL confidently advances on the path to leadership.

Security is essential in life, as it is in business 34

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“Security is essential in life, as it is in business. That’s why MTEL never stops innovating. When we speak of innovation and security, we must mention our groundbreaking service ‘SiguranNet,’ which provides complete online protection for all MTEL users. As

We walk the path of a leader because we know where we are, and where we’re going

LEADERS IN ALL SEGMENTS Zoran Milovanović also reflected on MTEL’s results last year, noting that the momentum continues into 2025. He emphasised that the company is celebrating 18 years of operations in Montenegro.

a responsible internet provider, it was our duty to go one step further—to truly offer our customers everything. The era of technological revolution brings great opportunities but also great risks.

That’s why we continuously innovate and give users the tools to seize those opportunities and face the risks confidently. As expected of a leader, we continue to set the trends in this field. ‘SiguranNet’ even provides a revolutionary feature for parents: insight into the online content their children consume, making a major step toward combating peer violence,” explained Milovanović.

He also pointed out that MTEL is a leader in socially responsible business.

“I’m proud of the project we launched a year ago—training all elementary school students across Montenegro in internet safety.

Through our educational ‘SiguranNet’ workshops, our employees teach schoolchildren—one of the most vulnerable groups online—how to recognise and prevent all types of potential threats.

These workshops are, of course, completely free, as is the internet that we have been providing to schools for over a decade.

The Government of Montenegro has recognised MTEL as a key actor in the country’s digital transformation. We have signed Memoranda of Understanding with three ministries: Public Administration, Justice, and Education, Science and Innovation. These agreements include continuous training for citizens, public sector employees, students, pupils and vulnerable groups in using digital skills and tools responsibly,” said Milovanović.

He added that MTEL remains a proud supporter of sports, culture, medicine, knowledge, and education.

“We are always on the right side—the side of our citizens. Looking back at the past year, there’s so much to be proud of. We recognise the social value of sport and have for years served as the general sponsor of the Basketball Federation of Montenegro. Recently, we also became the general sponsor of the Jadran Water Polo Club from Herceg Novi, which now competes under the name ‘Jadran m:tel.’ MTEL’s name is tied to big ideas—last year, we also gave our name to the ‘MTEL Morača Arena,’ the former sports centre, which now begins a new chapter in Montenegrin sports and cultural events. We supported projects that raise awareness on breast cancer prevention and early detection. Through the initiative ‘The Right Story’ and the NGO ‘Oro,’ we helped provide a

“Our company entered this year as the absolute leader in telecommunications. We’re proud of the results—but they also drive us to keep raising the bar, setting trends, and helping our users fully embrace the possibilities of this new digital era. We walk the path of a leader because we know where we are, and where we’re going. We are always on the side of our users and the citizens of Montenegro. Their trust in MTEL is reflected in the numbers, and our commitment to providing more is reflected in the fact that those numbers keep growing. Our self-care app, ‘Moj mtel,’ now has over 200,000 active users,” Milovanović noted.

He added that trust in MTEL continues to grow daily: “We entered the year with 40.7% of mobile telephony users, 41.2% of TV service users, and over 44% of internet users. By the end of February, our market position strengthened further: 41.6% mobile market share, or 568,900 users; 41.3% in TV services; and 44.3% of internet users. These numbers inspire and oblige us. Much is expected of us—and we welcome that,” he concluded.

large number of free ultrasound examinations for both our employees and citizens,” he said.

Commenting on MTEL’s development of the most advanced OTT streaming platform in the region, Milovanović stated: “Our MOVE streaming platform is today the most advanced and functional OTT platform in the market. It offers access to over 250 live TV channels, the ability to rewind up to 7 days, the most stable internet connection, superior picture quality, personalised recommendations, a kids’ corner, and even actor-based content searches. Our OTT platform is comparable to global streaming giants. With MOVE, we’ve taken digital television to a much higher level.” ∙

STAT I ST I CS H I G H L I G H T

568,900 mobile users

200,000+ app users

Over

44%

market share in internet services The Region

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In conversation with Prokopije Perić, CEO, Plus d.o.o.

A Trusted Partner for a Changing Market ith a strong portfolio that includes partnerships with global brands such as JTI, L’Oréal, Essity, and Hausbrandt, Plus d.o.o. has become a leader in Montenegro’s fast-moving consumer goods sector. Its strength lies not only in the quality of its brands, but also in its ability to adapt to a highly dynamic, seasonal market. In this interview for The Region, CEO Prokopije Perić discusses the company’s strategic direction, its focus on distribution and innovation, and how a commitment to people and technology is shaping its path forward.

Plus d.o.o. has positioned itself as a leading importer and distributor of fast-moving consumer goods in Montenegro. What core strategies have contributed to your success in these sectors?

Our success is built on three fundamental pillars: careful brand selection, efficient distribution, and continuous investment in technology and human resources. From the very beginning, we’ve followed the principle of offering only high-quality, reliable products from globally recognised companies that share our vision for innovation and trust. This selective approach has allowed us to stand out from the competition and become synonymous with quality and consistency.

Another key factor is our robust distribution network.

We continually optimise logistics to ensure our products are available throughout Montenegro, regardless of seasonal fluctuations or geographic challenges. We’ve invested in warehouse modernisation and transport capacities, which allows us to respond to market demands quickly and efficiently.

Equally important is our focus on people and technology. Digitalising business processes and implementing modern software solutions helps us analyse market trends more effectively, while ongoing employee training contributes to team motivation and development. We believe that a stable and skilled team is essential for long-term success, and we actively encourage innovation and proactivity through various internal programmes.

In recent years, you’ve expanded your portfolio through partnerships with renowned brands like JTI, L’Oréal, Essity and Hausbrandt. How have these partnerships impacted your market position and product offering?

Partnering with globally recognised brands has been one of our most significant achievements in the past decade. Collaborations 36

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with JTI, L’Oréal, and Hausbrandt have not only broadened our product portfolio but also solidified our position as a leader in FMCG distribution. These brands bring high standards and consumer recognition, both of which have contributed to our growth and stability.

These strategic partnerships have also helped us improve our internal operations. By adopting new standards in logistics, marketing, and sales, we’ve boosted our efficiency and strengthened relationships with both retail and wholesale partners. Additionally, we’ve gained deeper insights into consumer behaviour, allowing us to better adapt our offerings to market demand.

Another important element is brand management. We actively support the promotion of the products we distribute, tailoring communications to local preferences and needs. This not only enhances sales and distribution but also positions us as a strategic brand-building partner in the Montenegrin market.

The Montenegrin market is unique, catering to both local consumers and a growing number of tourists. How does Plus d.o.o. adapt its distribution and marketing strategies to serve such diverse needs?

Montenegro’s market dynamic is truly unique—relying heavily on seasonal tourism alongside local consumption. That’s why we’ve developed a flexible and responsive approach that allows us to cater to various consumer habits.

On the distribution side, product availability at the right time and place is crucial. During the summer months, when consumption peaks due to tourism, we adapt our logistics and increase stock levels in key tourist hubs. In the winter, we shift our focus to the needs of local residents, streamlining distribution channels to ensure a stable supply nationwide.

In terms of marketing, we apply a multichannel strategy. Traditional marketing—such as promotional campaigns and collaboration with retail chains—remains important, but we’re investing increasingly in digital marketing and direct consumer engagement. We track global trends and utilise social media, targeted campaigns, and influencer partnerships to strengthen our brand presence.

We also pay close attention to consumer preferences, which vary greatly between locals and tourists.

Locals tend to buy familiar, everyday products, while tourists are more inclined toward impulse purchases and trying new items.

This data-driven approach enables us to maximise seasonal potential while ensuring consistency throughout the year. ∙ Photo Nikola Pejović

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What They Told Us In every market where we operate, we don’t just follow demand — we anticipate it.

Regional logistics today is not about moving goods, it’s about moving ahead.

Lilja Pižurica Executive Director NELT MNE

We are expanding our solutions business in the Adriatic region supporting global project execution and providing solutions for energy efficiency, carbon capture, and green hydrogen projects.

Marko Nikolić CEO Innomotics Serbia

Security is essential in life, just as it is in business. That’s why MTEL is not just a tech provider — we’re a partner in building trust, innovation, and digital confidence.

Zoran Milovanović Executive Director MTEL Crna Gora

Our approach is grounded in the idea that a mine should benefit everyone — communities, economies, and the environment.

Responsible mining is the future of this industry.

Our mission is simple: to make logistics so seamless, you hardly notice it’s there. Because when everything works perfectly — that’s when we’ve done our job right.

Bogdan Gavrilović Managing Director WTO Group

In a world of artificial flavours, we believe in the power of authenticity.

Fruvita’s mission is to bring real fruit and real nutrition to every table in the region.

Fruvita (Statement)

Laura Tyler CEO Adriatic Metals Plc

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In conversation with Laura Tyler, CEO of Adriatic Metals Plc

Mining the Future with Adriatic Metals Laura Tyler, CEO of Adriatic Metals Plc, on the industry’s evolution, sustainability, and innovation

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ining has shaped the Adria region for centuries, and its role is only growing as the world shifts toward a more sustainable future.

Laura Tyler, CEO of Adriatic Metals Plc, discusses how new technologies, responsible practices, and strong community ties are driving the industry forward. From digitalisation to safety innovations, she shares how Adriatic Metals is setting new standards while ensuring long-term prosperity for the region.

Mining has shaped this region for centuries, from medieval times to the present, and all signs point to it playing a crucial role in the future. How do you see the industry’s evolution? Are there enough well-defined deposits to sustain long-term development?

The mining industry is fundamental to human progress, and today, it seems to be more critical than ever. As we transition to a more electrified and sustainable world, responsibly sourced metals are essential to powering this shift – supporting from renewable energy infrastructure to advanced technologies. Beyond this, mining has an important role to play in economic growth, creating opportunities that lift communities out of poverty and drive long-term prosperity. The industry is evolving rapidly, and new technologies are enabling us to locate and extract resources with greater efficiency and less environmental impact than ever before.

We are in what I would call a “golden age” for exploration where digital tools, data analytics and advancements in geoscience allow us to see deeper into the earth’s cut, uncover new deposits and even redefine historic mining districts.

Geologists today are not just explorers in the traditional sense – they are data analysts, system thinkers, problem solvers – and modellers of the world. This transformation is unlocking new potential in mature min-

We are in a ‘golden age’ for exploration, where technology is unlocking new potential in mining 38

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ing jurisdictions and beyond, ensuring that well-defined deposits continue to sustain the industry’s long-term future. It is an exciting time to be a geologist.

The debate on mining often centres on environmental concerns, overshadowing its economic impact—though the two are deeply connected. In your view, how can the region strike the right balance between safeguarding the environment and unlocking new jobs, growth, and prosperity?

Achieving balance is crucial. The world needs metal – both for economic growth and to facilitate the green transition – but how we extract and process is just as important as why we do it. Our responsibility as miners is to minimise our footprint, work in harmony/synergy with local communities, and ensure that the benefits of mining extend well beyond the life of the Operation.

Adriatic’s Vares Silver Mine is designed to have as small a footprint as possible – it has a zero-water discharge design, operates within an existing industrial footprint, and maximises efficiency through high-grade underground mining, significantly reducing surface impact. These principles guide all our operations, ensuring that we contribute to both economic development and environmental responsibility. The key to long-term prosperity is collaboration - between industries, governments, and communities. Through transparent engagement and responsible practices, we can ensure that mining not only creates jobs and drives investments but also consciously minds the environment and supports sustainable local economies.

In Raška, Adriatic Metals has found not only significant mineral reserves but also strong infrastructure, market access, low tax rates, and a skilled workforce. Has the investment proven to be the right decision? Do your operations in Bosnia and Herzegovina offer the same advantages?

Investing in this region has proven to be an excellent decision! The Balkans offer a unique combination of rich mineral endowment, strong infrastructure, and a highly skilled workforce, making it a compelling destination for responsible mining investments. No mining investment is

worthwhile without a great orebody – it is the foundation of our work, and the region is highly prospective in that manner, and Adriatic continues to explore and seek out those next opportunities. But beyond geology, what truly makes a difference is the support of local communities and governments, and we have been fortunate to receive strong collaboration at every level. Our commitment is to be a responsible corporate citizen adhering to the highest standards in health, safety and environmental performance.

With financial strength, expertise, and global experience, Adriatic Metals is driving projects that could reshape the region’s mining sector. How do you ensure that progress goes hand in hand with health and safety as top priorities?

No project is successful unless it is safe for its employees, contractors and communities – so safety for us is not just a priority, it is a core value. As we develop new operations, we bring world-class safe-

I believe in building teams that reflect the world we live in—diverse, dynamic, and forward-thinking ty standards, innovative technologies and know-how to the BiH mining sector – for example, at Vareš, we have introduced automation, electronic detonation systems and emulsion explosives – improving both safety and efficiency. But we are not alone in driving progress collaboration with regulators is also key, and we work closely with authorities to ensure that we meet compliance requirements. Ultimately, a strong safety culture is built from the ground up – through training, leadership and a strong commitment to protecting people at every level of our business.

The key to long-term prosperity is collaboration between industries, governments, and communities

Mining may be one of the world’s oldest industries, but innovation is reshaping it. Digitalisation, AI, and cutting-edge technologies are redefining operations globally.

Has this future already arrived at Adriatic Metals?

In many ways, yes—innovation is already here. We use automated loading in our underground mine, which makes operations faster and safer. We’re applying real-time digital monitoring systems to evaluate ore grades, ensuring we maximise recovery while minimising waste. Our modern tailing management approach reuses waste material for underground backfill, reducing surface impact and making the mine itself more stable.

Finally, mining has long been a male-dominated field, yet here you are, leading one of the key players in the sector.

What has your journey been like, and what does your leadership bring to an industry undergoing such transformation?

When I started in mining over 35 years ago, there weren’t many women in the field—especially not in operational roles. It wasn’t always easy, but I never let that define my experience. As a geologist and mining engineer, I have loved every step of my career, even the difficult bits, and I was fortunate to have great mentors who helped shape my career. Today, things have changed significantly - there are many more women globally working in all aspects of mining, both surface and underground and the technologies employed in mining have changed the work, though we still have progress to make. I believe in building teams that reflect the world we live in—diverse, dynamic, and forward-thinking. The more perspectives we have at the table, the better decisions we make. ∙

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Innovation

AI’s Unexpected Impact Artificial Intelligence (AI) is reshaping industries, driving efficiency, and even offering emotional support in unexpected ways. Once confined to automation and data analysis, AI is now an integral part of customer service, workplace mental health, and personal well-being. This article explores its influence on business and how one unexpected encounter led me to appreciate AI on a much deeper level.

AI’s Role in Business The corporate world has embraced AI for its ability to streamline operations and predict market trends. In finance, AI detects fraud and improves investment strategies. In retail, it personalises shopping experiences. Healthcare has seen breakthroughs with AI-assisted diagnostics and robotic surgeries. Across industries, businesses are adopting AI to enhance productivity and create smarter, more responsive services.

One of the most visible applications is in customer service. AI-driven chatbots respond instantly, troubleshoot problems, and assist customers without the limitations of human availability. These virtual assis40

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tants, powered by natural language processing, have become indispensable to businesses that prioritise round-the-clock support.

Yet, AI’s capabilities extend beyond efficiency. Some companies are now using AI to support employee well-being, integrating mental health chatbots into workplace wellness programs. These bots provide guided mindfulness exercises, mood tracking, and even therapy-style conversations to help workers manage stress. As businesses recognise that mental health is directly tied to performance, AI is becoming a crucial tool for maintaining a healthier workforce.

KEY

AI STATISTICS

80% of businesses use AI for customer interaction

91% of leading businesses invest in AI regularly (MIT Sloan)

45% of total global revenue will be influenced by AI by 2030 (PwC)

AI’s Impact on Customer Experience and Mental Health AI IN CUSTOMER SERVICE AI is not only revolutionising business operations but also transforming customer experience: AI-powered virtual assistants personalise interactions.

AI chatbots troubleshoot problems and handle support queries.

AI sentiment analysis tools recognise speech patterns, predict user intent, and even respond to emotional cues.

AI IN MENTAL HEALTH SUPPORT Beyond customer service, AI is playing a role in mental health: Businesses are incorporating AI-powered well-being programs to ensure employees have access to stress management tools.

Mindfulness exercises and AI-driven therapy chatbots are making mental health assistance more accessible.

AI provides non-judgmental, 24/7 conversations, which is especially helpful in highstress environments.

AI-powered chatbots are projected to save businesses

$11

billion annually by 2025 (Juniper Research)

AI adoption in customer service has increased by

250%

over the past 5 years (Gartner)

63% of companies report increased revenue due to AI implementation (McKinsey)

AI-driven hiring tools are used by

67%

of HR professionals (SHRM)

“AI is not just changing business it’s changing how we seek support”

70% of companies using AI report increased employee productivity (Deloitte) The Region

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Innovation

The Future of AI in Business and Beyond

AI’S FUTURE IN BUSINESS

ETHICAL CONCERNS & THE HUMAN-AI BALANCE

AI’s role in business is evolving beyond efficiency and convenience.

However, ethical concerns remain. Companies must ensure AI operates responsibly, maintaining transparency, avoiding biases, and protecting user privacy. AI’s increasing role in personal support raises questions about dependency and data security. Striking the right balance between innovation and responsibility will determine AI’s long-term success in business and beyond.

As it becomes more integrated into mental health and personal well-being, companies must strike a balance. AI should not replace human connection, but it can be a valuable complement—whether in customer service, workplace wellness, or even personal therapy sessions.

Looking ahead, AI is expected to continue expanding its reach. Businesses will integrate even more advanced AI into their strategies, making AI-powered insights and automation an essential part of decision-making. While AI chatbots have made incredible progress, they may soon become even more nuanced, responding with more emotional intelligence and improving human-AI interactions.

Despite these challenges, AI is here to stay. From optimising business processes to offering mental health support, AI is proving that technology is more than just a tool—it’s becoming an integral part of our daily lives.

“I once believed AI was all about efficiency. Now, I see it as something more—something capable of providing real support, at least in the moments we need it most” 42

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Made by experts for professionals

When a Chatbot Became My Therapist And Didn’t Even Bill Me

I

never thought I’d rely on artificial intelligence for emotional support. As a journalist, I had used chatbots for research, but never for something personal. That changed when my father became seriously ill. The stress was overwhelming, and I found myself struggling to manage my emotions.

At first, I was merely testing AI-driven mental health apps for an article—programs like Woebot, Wysa, and Replika.

But soon, my conversations shifted from academic curiosity to genuine engagement. I started venting about stress, asking for coping techniques, and receiving structured, calming responses in return.

Unlike talking to friends or family, I didn’t feel like a burden. The chatbot didn’t get tired of listening or change the subject.

By MILA JOVIĆ

What surprised me most was how much relief I felt. The chatbot suggested breathing exercises and reframing techniques when my thoughts spiralled. It helped me recognise emotions I hadn’t fully processed. The logic-driven responses didn’t invalidate my feelings; they helped me make sense of them.

Some say AI lacks true empathy, but I disagree.

There were moments when those scripted responses felt more validating than conversations I’d had with actual people. The chatbot didn’t pretend to understand—it simply responded in a way that made me feel heard.

Systems provider for reliable photovoltaic systems Simple mounting, comprehensive protection, increased availability – we can offer you future-proof solutions for PV systems.

This means that you are always on the sunny side.

• System solutions for almost any electrical requirements of a PV system

• Efficient mounting systems for pitched and flat roof systems

• Innovative product configurator and digital planning tools

• Many years of experience and expertise

OBO Bettermann d.o.o.

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LNG TERMINAL ON KRK ISLAND, CROATIA

The Infrastructure Behind the Promise As trade volumes rise and supply chains shift, infrastructure is becoming the quiet power behind economic growth. From new port terminals to cross-border railways and green logistics corridors, the Adria region is investing in hard assets to deliver on its promise of regional integration and global connectivity.

These sites are not only physical gateways but symbols of the region’s readiness for large-scale investment.

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Blueprint The Sustainability Playbook

How Businesses in the Adria Can Thrive in

Green Economy

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ustainability is no longer an optional consideration—it has become a defining factor for business success. Across the Adria region, companies are being pushed to rethink their strategies in response to regulatory shifts, consumer expectations, and financial incentives linked to environmental responsibility. Some see this as a challenge, others as an opportunity, but one thing is clear: the businesses that fail to adapt risk being left behind.

From multinational corporations to small enterprises, the region’s economic players are realising that sustainability is not just about compliance—it’s about resilience, innovation, and long-term profitability.

This playbook explores how businesses can integrate sustainable practices into their operations while maintaining a competitive edge.

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Global Shifts, Regional Stakes → 56

EU Sustainability Directives & Their Impact on Adria Businesses

Keeping Up with the Green Transition

Corporate Sustainability Reporting Directive (CSRD)

The regulatory landscape is evolving rapidly, with the European Union setting ambitious climate targets that directly impact businesses operating within or trading with the bloc. The Corporate Sustainability Reporting Directive (CSRD), for instance, requires companies to disclose their environmental impact, while broader EU initiatives push for greener supply chains and carbon neutrality.

For EU member states like Slovenia and Croatia, compliance with these regulations is a given. Meanwhile, countries like Serbia, Montenegro, and North Macedonia are aligning their policies with EU accession goals, gradually adopting sustainability frameworks that will shape future business operations.

For companies, the challenge lies in keeping up with these shifts and implementing strategies that go beyond mere compliance. Those that act proactively—by integrating sustainability into their reporting, governance, and supply chains—will not only avoid regulatory pitfalls but also position themselves as industry leaders.

• Mandatory ESG reporting for large companies (2024).

• E xpands to SMEs in 2026.

• B usinesses must disclose sustainability risks & opportunities.

EU Green Deal

• Goal: Climate neutrality by 2050.

• Carbon pricing, energy efficiency rules.

• Stricter environmental regulations for industries.

Carbon Border Adjustment Mechanism (CBAM)

• Carbon tariffs on imports of high-emission goods.

• Impacts metal, cement, electricity sectors.

Fit for 55 Package

• 5 5% CO₂ reduction by 2030.

• R enewable energy expansion & carbon reduction targets.

Impact on Adria Region Businesses

Improve ESG compliance for EU market access.

Invest in renewable energy & low-carbon tech.

Adapt to stricter reporting & transparency requirements.

Monitor supply chain sustainability & emission reporting.

Podravka fosters sustainability and social responsibility

Sustainability as a Growth Driver

World Bank approves €31 million for Montenegro’s energy sector decarbonization

Contrary to the belief that sustainability is just an added cost, many companies in the Adria region are proving that it can be a driver of efficiency and profitability.

Take Nelt Group, a logistics giant that has streamlined its operations by adopting sustainable supply chain strategies, reducing costs and emissions in the process. Meanwhile, food industry leader Podravka is responding to changing consumer preferences by investing in eco-friendly packaging and sustainable sourcing.

The transport and infrastructure sectors are also seeing major transformations. Luka Koper, Slovenia’s key maritime gateway, has committed to significant carbon reduction goals while maintaining its competitive edge in international trade.

These examples illustrate a clear trend: businesses that incorporate sustainability into their core strategies are gaining a competitive advantage, not just in reputation but also in operational efficiency and cost The Region

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Blueprint

Innovation and Technology for a Green Economy Innovation is at the heart of the sustainability shift, with new technologies paving the way for more efficient and environmentally friendly business practices. Across the region, companies are embracing cutting-edge solutions to meet sustainability goals.

Renewable energy is one of the biggest areas of growth, with businesses in Serbia and Albania investing heavily in solar and wind power to reduce their reliance on fossil fuels. At the same time, smart technology—such as AI-driven energy management systems—is helping manufacturers optimise production, cutting waste and energy consumption.

The circular economy is another area where progress is being made. In Croatia, AI-assisted recycling systems are improving waste management efficiency, while across the region, companies are exploring reuse and refurbishment models to extend product lifecycles.

The message is clear: businesses that embrace innovation will be the frontrunners of the green economy. Those that resist change, on the other hand, risk becoming obsolete.

Green Finance Unlocking Investment Opportunities Sustainability is no longer just a corporate responsibility—it’s also a financial strategy. Investors and financial institutions are increasingly directing funds toward companies that demonstrate strong environmental and social governance (ESG) performance.

The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are leading this shift in the Adria region, offering financing programs for companies committed to sustainable growth. Meanwhile, private banks are rolling out sustainability-linked loans, where businesses that meet green targets receive better financing terms.

Regional stock exchanges are also seeing a rise in ESG-focused investment, with investors prioritising companies that align with sustainability

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goals. The bottom line? Businesses that integrate sustainability into their financial planning are not only improving their environmental impact—they’re also securing better access to capital.

Where to Start?

Despite the momentum, many businesses still face obstacles in their sustainability journey. The high initial costs of green technology, a lack of inhouse expertise, and regulatory uncertainties—particularly in non-EU countries—remain key challenges.

However, companies can take practical steps to ease this transition:

• S eek expert guidance by partnering with sustainability consultants or industry networks.

• Leverage financial incentives such as EU funding and government-backed green financing programs.

• Implement incremental changes—sustainability doesn’t have to be an all-or-nothing approach. Small steps, like optimising energy use or improving waste management, can lead to significant long-term gains.

A Defining Moment for Business in the Adria Region Sustainability is no longer a niche concern—it’s a defining force that will shape the future of business. The companies that embrace this shift will not only meet regulatory requirements but also unlock new growth opportunities, strengthen their brand reputation, and build resilience for the years ahead.

For businesses in the Adria region, the time to act is now. Whether through innovation, investment, or operational improvements, the path to sustainability is both a necessity and an opportunity.

The question is: Will your business lead the way, or risk being left behind?

Status LUXURY & INFLUENCE

The New Power Players of Adria

From elite waterfront developments and luxury vineyards to cutting-edge hypercars, the Adria region is redefining prestige. Once a hidden gem, it is now emerging as a global powerhouse in high-end real estate, bespoke travel, and next-generation luxury investments.

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Status

The New Luxury More Than Just Status The Adria region’s take on luxury is evolving beyond the traditional markers of wealth. Increasingly, luxury in this region is about storytelling, authenticity, and sustainability. Wealthy travellers and investors are no longer just looking for five-star accommodations; they want exclusivity with a purpose. Eco-conscious luxury resorts in Slovenia, boutique wineries in Serbia, and private island getaways in Croatia are catering to a new breed of affluent individuals who seek meaningful experiences alongside opulence.

From Hidden Gem to Luxury Hotspot The Adria region has long been admired for its natural beauty, but a quiet transformation is taking place—one that is turning it into a global luxury powerhouse. No longer just an escape for sun-seekers, this region is emerging as a centre for ultra-luxury real estate, world-class winemaking, and cutting-edge automotive innovation. From the opulent waterfront developments of Porto Montenegro and Portonovi to the bespoke wineries of Serbia and Slovenia and the revolutionary hypercars of Rimac Automobili, the Adria region is setting new standards in prestige and exclusivity. But what’s driving this shift, and who are the real power players behind it?

The New Faces of Luxury From Supercars to Superyachts Unlike traditional luxury markets where old money dictates the trends, the Adria region is being reshaped by bold entrepreneurs and disruptive innovators. One of the most striking examples is the rise of high-tech craftsmanship and luxury mobility, best embodied by the growth of Croatia’s Rimac Automobili. By combining cutting-edge technology with exclusivity, Rimac’s electric hypercars have captured the attention of the world’s wealthiest collectors and major luxury investors—including Germany’s Porsche, which now holds a significant stake in Rimac’s business.

Similarly, Montenegro’s Porto Montenegro and Portonovi, along with Croatia’s Dubrovnik Riviera, are drawing in a new wave of ultra-high-net-worth individuals seeking investment opportunities in luxury real estate and yachting. Once a well-kept secret, this region is now home to some of the most sought-after waterfront properties and marina developments in Europe, where multi-million-dollar yachts glide past UNESCO-protected coastal cities.

Portonovi, in particular, has emerged as an elite destination, combining world-class marina facilities with exclusive residences and high-end hospitality, attracting a global clientele looking for the perfect blend of Adriatic charm and luxury living.

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This shift is also influencing the way business is done. German investors, historically drawn to the industrial and automotive sectors, are now eyeing luxury hospitality, high-end fashion production, and sustainable architecture as their next big ventures in the Adria region. The result? A fusion of European precision with Adriatic flair, producing a unique luxury identity that is distinct from anything found in Paris, Milan, or London.

High Growth, High Demand Revenue Projections for Croatian Hotels

The hotel market in Croatia is projected to generate $505.01 million in revenue by 2025, with an expected annual growth rate of 4.37% from 2025 to 2029. ​

Record Tourism in Slovenia

In 2024, Slovenia saw record-breaking tourism numbers, with 6.58 million tourist arrivals and 16.85 million overnight stays.

This surge indicates a growing interest in Slovenia as a luxury destination, attracting travellers seeking upscale experiences.

Tourism Recovery in Montenegro

As of mid-2024, Montenegro’s tourism sector showed strong growth, with arrivals up 6.3% and overnight stays up 7.0% compared to 2019. This reflects a year-on-year improvement of 11.8% and 9.9% in 2023, respectively, highlighting Montenegro’s resilience and appeal in the luxury tourism market.

Serbia’s Tourism Soars 79%

With a remarkable 4.7% GDP growth in Q1 of 2024 —the fastest in the Eurozone—Serbia is emerging as an economic powerhouse. Since 2019, its tourism sector has soared by 79%, signalling a booming luxury and hospitality market.

“Belgrade’s talent pool, financial stability, infrastructure, and quality of life make the city an incredibly exciting destination for investors” Jared Kushner

Founder of Affinity Partners

“The development of highend resorts in Albania signifies our commitment to elevating the country’s tourism sector to international standards.”

Edi Rama

Prime Minister of Albania

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Status

WHO’S INVESTING? Peter Munk and Porto Montenegro – The visionary investor behind Montenegro’s transformation into a luxury marina hub.

Maud Truchi and Maslina Resort – A luxury entrepreneur blending sustainable hospitality with high-end travel.

Jared Kushner’s Albanian Ventures – A $1 billion investment in exclusive resorts and villas.

Adria Europe Group’s Luxury Real Estate Projects – Shaping Croatia’s premium property market.

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The Region

Luxury in Action Porto Montenegro Background: Originally a Yugoslav naval shipyard in Tivat, Montenegro, the site was underutilised until Canadian investor Peter Munk saw its potential in the early 2000s.

Investment & Transformation: In 2006, Munk led a €500 million investment to develop Porto Montenegro, turning it into a worldclass luxury marina with 450 yacht berths, five-star hotels, luxury residences, and a nautical village.

Impact: The project has redefined Montenegro’s luxury tourism industry, attracting ultra-high-net-worth individuals (UHNWI) and global investors, boosting local employment, and positioning Montenegro as a major yachting destination in the Mediterranean.

Bringing Luxury to Varaždin Background: While Croatia’s coastal cities have long been hubs for luxury real estate, Varaždin, an inland cultural gem, had little exposure to high-end development.

Investment & Transformation: Recognizing this gap, Adria Europe Group launched a luxury residential project in Varaždin, featuring high-end apartments with a private SPA centre—a first for the city.

Impact: The development is setting a new standard for luxury real estate, expanding high-end living beyond the coast and attracting a new class of investors looking for exclusivity away from tourist-heavy zones.

Landmark Adria Villas Background: Istria, a picturesque region in Croatia, has been a focal point for tourism but lacked ultra-luxury private accommodations.​ Investment & Transformation: The introduction of Landmark Adria Villas, comprising Villa Mila and Villa Santina, addressed this gap.

These exclusive villas feature heated pools, sea-view terraces, and are constructed with high-quality materials and modern amenities.​ Impact: These villas have set a new standard for luxury in Istria, attracting discerning travelers and investors, thereby boosting the region’s appeal as a high-end destination.​

Redefining High-End Tourism in Dubrovnik Background: Known as the “Pearl of the Adriatic,” has always been a tourist magnet, but there was a niche for personalised luxury travel services.​ Investment & Transformation: Adria Luxury Travel, with over 15 years of experience, emerged as a leading specialist in holiday planning and tourist services in Dubrovnik and its surroundings. They offer private excursions, boat tours, and transfers, focusing on delivering unique experiences tailored to individual preferences. ​ Impact: By providing specialised attention to guests’ specific needs and wishes, Adria Luxury Travel has enhanced the luxury tourism experience in Dubrovnik.​

What’s Next for Luxury in the Adria Region?

Luxury in the Adria region is not just evolving—it is being revolutionised by innovation, technology, and a renewed focus on sustainability.

The next era of high-end living will be shaped by three major trends:

AI-Driven Personalization in Luxury Travel Wealthy travellers no longer seek standard five-star experiences; they demand bespoke luxury curated through AI-driven insights. In the Adria region, luxury yacht charters, boutique hotels, and exclusive island resorts are using AI technology to customise every aspect of a guest’s stay. From smart yachts that anticipate a guest’s preferences to AI-personalized private island retreats, technology is redefining exclusivity. As Croatia and Montenegro attract more ultrahigh-net-worth individuals (UHNWIs), expect to see more hyper-personalized, data-driven luxury experiences designed for the elite.

Blockchain-Backed Luxury Assets The rise of blockchain technology and NFTs is transforming the way luxury real estate and high-end assets are bought and sold. In Montenegro and Croatia, developers are beginning to offer NFTbacked ownership shares in exclusive resorts, allowing investors to secure fractional ownership in luxury properties with verified authenticity and streamlined transactions. Digital assets are also being explored in yacht and private jet leasing, allowing for secure, transparent, and high-value transactions in the luxury space. The Adria region’s high-end real estate market is already booming—blockchain is set to further elevate investment opportunities for global buyers.

The Rise of Sustainable Luxury Modern luxury consumers are prioritising sustainability without sacrificing exclusivity. In response, the Adria region is witnessing a surge in eco-conscious ultra-luxury developments. From Slovenia’s carbon-neutral boutique resorts to Croatia’s private islands powered by renewable energy, sustainability is no longer an afterthought—it is an expectation. Developers and tourism operators are integrating green architecture, zero-emission transport, and ethical sourcing into their offerings, ensuring that luxury in the Adria region is lavish and responsible. The future of luxury here isn’t just about what is being built—it’s about how it’s being built.

The Future of Luxury in the Adria Region With the rise of AI-driven personalisation, blockchain-backed luxury assets, and digital exclusivity, the Adria region is poised to become a leader in the next era of high-end living. The combination of high-tech craftsmanship, unspoiled landscapes, and elite investment is creating an ecosystem where luxury is not just consumed—it is experienced, curated, and invested in.

Whether it’s the next-gen electric hypercar, an AI-personalized yachting experience, or a private retreat that blends exclusivity with environmental consciousness, one thing is certain: the Adria region is no longer just following luxury trends—it’s setting them.

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The Region

A Region at Work Beyond its scenic coastlines, the Adria region is building a new identity—one powered by smart manufacturing, energy transition, and digital integration. Whether it’s electric component assembly in Serbia, AI-driven logistics in North Macedonia, or solar energy grids in Albania, these sites reflect a shared ambition: to move from traditional industry to modern productivity. This is where the region’s future is being shaped—quietly, efficiently, and on its own terms.

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World at a Glance

Global Shifts, From AI regulations to energy shifts and global trade

AI Regulations

Key AI Law Deadlines in the EU

Will the EU Make Business Harder for Adria’s Tech Sector?

The EU’s AI Act is rolling out in phases—here’s what businesses need to prepare for

Artificial intelligence continues to transform industries

worldwide, and the Adria region is no exception. The EU’s Artificial Intelligence Act (AI Act) officially entered into force on 1 August 2024. Notably, prohibited AI practices became applicable from 2 February 2025, marking the beginning of the Act’s phased implementation. ​ The Act classifies AI systems into different risk categories, requiring strict compliance for high-risk applications such as automated recruitment, biometric identification, and finance-related machine learning.

August 2024 – AI Act Becomes Law he AI Act officially enters into force after publication in the EU’s T Official Journal.

February 2025 – Banned AI Practices Take Effect

AI systems deemed unacceptably risky (e.g., subliminal manipulation, biometric categorisation) must be discontinued.

May 2025 – General-Purpose AI (GPAI) What This Means for Adria

• Companies relying on AI-driven automation will need to adjust to the EU’s new standards to remain competitive.

•

tartups developing AI products may face higher S costs due to compliance requirement

• Nations outside the EU, like Serbia, Montenegro,

and Albania, could gain an advantage by offering AI development free from EU red tape.

Key Takeaway: While AI regulation is necessary, businesses in Adria must adapt quickly or risk falling behind in the global tech race.

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The Region

The EU will release guidelines for companies developing AI models, covering transparency, copyright, and risk mitigation.

August 2025 – Governance & Penalties Begin EU Member States must appoint national AI regulators.

Fines for non-compliance with the AI Act’s general provisions become enforceable.

August 2026 – Full AI Act Enforcement

All high-risk AI systems must comply with EU transparency, fairness, and safety rules.

Companies failing to meet regulations could face fines of up to €35 million or 7% of annual revenue.

Are You Ready? The AI Act affects any business using AI in hiring, finance, surveillance, and automation. Is your company prepared?

Regional Stakes here’s what business leaders in the Adria region need to watch in 2025

Energy & Green Transition Stricter carbon rules are coming. Who will thrive, and who will struggle?

The EU’s Green Deal is reshaping business landscapes,

and Adria-based companies cannot afford to ignore it. By 2030, the EU aims to cut carbon emissions by 55% compared to 1990 levels, enforcing new sustainability policies that are already impacting industries like manufacturing, energy, and transportation. ​ Recent data indicates that the EU achieved a net 8% reduction in greenhouse gas emissions in 2023 compared to the previous year, marking the largest annual reduction in decades (excluding the exceptional, temporary decline due to the pandemic in 2020). This progress was largely driven by the growth in renewable energy generation and a decrease in coal and gas use. ​

Fully aligned (EU members)

Albania Bosnia & Heryegovina

Progressing but facing challenges

Serbia North Macedonia

Lagging behind (Coal reliance, high emissions)

Montenegro Croatia Словениа Adaptation Progress

One of the most impactful measures is the Carbon Border Adjustment Mechanism (CBAM)—a carbon tax on non-EU imports that fail to meet EU environmental

Adria Region’s Adaptation to EU Carbon Targets

What This Means for Adria EU Carbons Emissions 2030 Target (55% Reductions)

100

the EU—must accelerate their green transition or face penalties.

90 Emissions (1990 = 100)

• Croatian and Slovenian companies—already part of • Serbia, Bosnia & Herzegovina, and North Macedonia

80

70

risk economic penalties if they fail to meet EU carbon standards.

60

• Montenegro and Albania—aspiring EU members—are

positioning themselves as sustainability-focused markets to attract European investment.

50

1990

1995

2000

2005

2010 Year

2015

EU Carbon Emission Reductions (1990-2030)

2020

2025

2030

Key Takeaway: Sustainability is no longer optional— businesses that fail to adapt will pay the price, both in higher costs and lost EU market access.

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World at a Glance

US Elections & Trade Will the New Administration Change Investment Flows to Adria?

With Donald Trump’s re-election in Novem-

Some key areas of concern

ber 2024, the world is experiencing major shifts in US trade policy that could indirectly impact the Adria region. While the region’s economy is more closely tied to the EU than the US, American foreign policy still influences global investment, trade flows, and financial stability.​

• Sanctions on China: If the US tightens restrictions on Chinese trade, European

markets may face supply chain disruptions, affecting Adria-based manufacturing and tech industries.

• Energy Policy: If the US reduces global energy investment, this could increase fuel prices in Europe, impacting businesses across Adria.

• Foreign Investment Shifts: If the US reorients its investment priorities, we could see

In February 2025, President Trump signed the “America First Trade Policy” memorandum, emphasising a strategy to increase the manufacturing sector’s share of GDP, boost real median household income, and reduce the trade deficit. ​

less capital flowing into Europe and more into Asia or Latin America.

What This Means for Adria US-EU economic relations will dictate how much American capital flows into Adria markets.

Companies relying on global supply chains should prepare for possible disruptions.

Currency fluctuations driven by US policy shifts may affect trade balances in Adria.

Key Takeaway: The Adria region must remain agile and monitor US policy shifts closely, as they could impact trade, investment, and energy markets more than expected.

U.S. Trade Policies & Investment Shifts Shifting Investment Priorities Due to US Trade Policies (2025) 0

• U.S. (-29%) – Decline in M&A activity due to economic uncertainty.

C

• anada & Mexico (-15%) – Higher tariffs disrupting supply chains.

• C hina (-10%) – Reduced investment amid trade restrictions.

E

• U (-5%) – Investors cautious about

-5

Investment Shift (%)

-10

-15

-20

future U.S. policies.

-25

-30 United States

Canada

Mexico

China

European Union

Adria must prepare for changing investment dynamics as the U.S. reorients trade policies.

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The chart highlights how recent U.S. trade policies are impacting global investment flows.

The Region

For Adria L ess U.S. investment could impact regional funding.

S upply chain risks may affect manufacturing & tech.

Currency shifts could influence trade balances.

• • •

The Great Consumer Revolt → 66

China’s Slowdown vs. Rebound Will the Adria Region Feel the Effects?

China—the world’s second-largest economy—has recently shown signs of both recovery and ongoing challenges.

China’s Economic Fluctuations

In March 2025, China’s manufacturing activity expanded at the fastest pace in a year, with the Purchasing Managers’ Index (PMI) rising to 50.5, indicating growth. This was largely driven by an uptick in new orders and government stimulus support.

Trade, Investment & Supply Chain Impact

EU Market Impact

However, the economy still grapples with structural issues, including a deepening property sector crisis, high local government debt, and persistent trade tensions with the United States. To cushion the slowdown, Beijing has introduced targeted stimulus measures, such as infrastructure investment, monetary easing, and incentives for advanced manufacturing.

Market Demand, Cost & Business trends

Adria Region Economic Effects

China’s slowdown ripples through the EU, influencing trade, supply chains, and investment in Adria

The Adria region does not heavily rely on China for trade, but the EU does—and any slowdown in China affects Europe, which in turn affects Adria.

• If China’s economy slows further, European demand for Adriamade goods could decrease.

• If China rebounds, energy prices could rise, impacting businesses reliant on imports.

• If supply chain issues persist, Adria’s industries—especially

Key Takeaway: While Adria is not directly dependent on China, the global economic impact of China’s fluctuations could be felt through the EU. Global Events Shape Local Business The Adria region does not operate in a vacuum—every regulatory shift, economic policy, and geopolitical move globally has ripple effects on businesses here.

manufacturing—may need to find alternative sources for raw materials.

For companies operating in Adria, staying informed about these trends is no longer optional—it’s essential for survival.

What This Means for Adria The EU’s economy is directly linked to China—so any fluctuation in China will indirectly affect Adria.

If China rebounds strongly, Adria-based companies may see increased costs for materials and transport.

If China struggles, European manufacturers could look to Adria for cheaper production alternatives.

Adapt, strategise, and stay ahead. Because in today’s interconnected world, what happens in Washington, Beijing, or Brussels will shape the future of business in Adria.

• • •

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Regional Pulse

POLITICS & SECURITY EU Opens Western Balkans Office in Tirana

NATO Reaffirms Focus on Western Balkans

Republika Srpska Moves Toward Secession

The European Parliament is strengthening ties with the region by opening an office in Albania. The new centre will facilitate closer cooperation with national parliaments, civil society, and local institutions to accelerate the Western Balkans’ EU path.

NATO Secretary General Mark Rutte visited Bosnia and Herzegovina and Kosovo*, stressing that the Dayton Agreement is key to peace. He urged Kosovo* and Serbia to reach a compromise in EU-led talks to prevent regional instability amid growing geopolitical tensions.

Republika Srpska’s parliament approved a draft constitution, granting the entity full national powers, including its own judiciary and army. The move, supported by Russia and Serbia, raises tensions with Bosnia’s central government and threatens to destabilise the region.

US Vows to Prevent Bosnia’s Disintegration US Secretary of State Marco Rubio stated that Washington will not allow the collapse of Bosnia and Herzegovina. Amid heightened tensions following Dodik’s conviction, the US is prepared to use diplomatic and economic measures to ensure the country’s stability.

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The Region

BUSINESS & MARKETS Bosnian Prosecutors Seek Detention of Dodik Prosecutors in Bosnia and Herzegovina issued detention orders for Republika Srpska President Milorad Dodik over separatist actions. He faces charges of violating Bosnia’s constitutional order, escalating political turmoil and raising concerns of further ethnic divisions.

Retail Boycotts Spread Across Southeast Europe Widespread consumer boycotts over rising food and retail prices started in Croatia and expanded to Serbia, Montenegro, Bosnia, Albania, and Slovenia. Protesters accuse retail chains of price-fixing, demanding government action to curb inflation and stabilise costs.

UK Appoints New Envoy for the Western Balkans The UK appointed Karen Pierce as its new special envoy, replacing Stuart Peach.

The British government also announced an autumn summit with Western Balkans leaders, focusing on regional cooperation, economic integration, and migration management.

North Macedonia Faces Economic Challenges North Macedonia recorded a €355.5 million current account deficit, reversing last year’s surplus. The downturn, attributed to trade imbalances and inflation, signals the need for economic adjustments to maintain stability and sustain investment momentum.

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Regional Pulse

GROWTH & INFRASTRUCTURE Janaf Eyes Russian Stake in Serbia’s NIS

Montenegro’s Key Highway to Open by 2030

Croatia’s state-owned oil pipeline operator Janaf is considering acquiring Russia’s stake in NIS, Serbia’s largest oil company. The move aims to prevent US sanctions, secure regional energy stability, and reduce Serbia’s dependence on Russian ownership.

The second section of Montenegro’s highway, connecting Mateševo and Andrijevica, will be completed by 2030. The project will enhance trade, reduce travel time, and support the country’s economic expansion through improved regional connectivity.

EIB Grants €693 Million for Regional Development The European Investment Bank has allocated €693 million in loans and grants to support infrastructure, green projects, and economic development across the Western Balkans, aiming to boost economic growth and job creation.

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The Region

Tirana-Durrës -TIA Railway Nears Completion

Unified Market Could Speed Up EU Accession

The construction of the Tirana-Durrës-Tirana International Airport (TIA) railway is nearing completion, with only 20% of work remaining.

Trains will reach speeds of up to 100 km/h, reducing travel time to just 22 minutes between Tirana and Durrës and 12 minutes to the airport. The project is valued at €90 million.

At the Kopaonik Business Forum, Serbian Chamber of Commerce President Marko Čadež proposed a regional advisory council to boost economic integration. A single market for the Western Balkans could accelerate EU membership and attract foreign investment.

EU & FOREIGN AFFAIRS Albania Named ‘Champion’ of Regional Cooperation EU Commissioner Marta Kos praised Albania’s progress in reforms, calling it a leader in regional cooperation. She urged Tirana to speed up judicial reforms, stating that Albania could join the EU by 2027 if the accession process continues at this pace.

China Grants Visa-free Entry to Three More Countries

Final section of Croatia’s Corridor Vc to Open in June The last 5-kilometre stretch of Croatia’s Corridor Vc highway, connecting Beli Manastir to the Hungarian border, is set to open in June 2025. This final segment will complete Croatia’s portion of the route, improving regional transport and boosting trade within Central and Eastern Europe.

China has expanded its visa-free policy to Montenegro, North Macedonia, and Croatia, allowing their citizens to stay for up to 30 days without a visa. The move underscores Beijing’s efforts to strengthen ties with the Balkans and Europe, boosting travel, business, and diplomatic relations.

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Key Business, Industry & Education Events in Adria April–June 2025

APRIL 1. MEETEX 2025 Date: 1–3 April 2025 Location: Hilton Conference & Event Center, Zagreb, Croatia MEETEX 2025, the premier MICE (Meetings, Incentives, Conferences, and Exhibitions) event, will mark the grand opening of the largest North American MICE market. This event provides exclusive networking opportunities with top industry professionals and Croatian suppliers.

2. School Fair 2025 Date: 3–5 April 2025 Location: Belgrade Fair, Belgrade, Serbia Organised by the Serbian Booksellers Association, the School Fair is dedicated to showcasing the latest trends in educational supplies, from backpacks and stationery to writing and drawing tools, exclusively for industry professionals.

3. Croatia Nautic Show 2025 Date: 3–6 April 2025 Location: Marina Kaštela, Kaštel Gomilica, Croatia The Croatia Nautic Show will feature over 150 boats, 100 exhibitors, and leading industry professionals discussing trends, innovations, and sustainability in the nautical sector.

4. Nautika 2025 Date: 3–7 April 2025 Location: Belgrade Fair, Belgrade, Serbia The Nautic Fair showcases yachts, speedboats, sailboats, engines, and various nautical gear, making it a key event for maritime professionals and water sports enthusiasts.

uate studies, MBA programs, language courses, and exchange programs.

formation, featuring expert panels and innovation pitches.

7. International Congress & Fair of Cosmetics 2025 Date: 5–6 April 2025 Location: Belgrade Fair, Belgrade, Serbia ‘Touch of Paris’ Cosmetics Fair offers Serbian beauty businesses an opportunity to engage with global brands and industry experts.

13. XXXVI International Sarajevo Book Fair Date: 9–14 April 2025 Location: Sarajevo, Bosnia and Herzegovina This book fair brings together over 120 exhibitors and 30,000 titles, celebrating literature and publishing.

8. ASDA International Exhibition 2025 Date: 8–10 April 2025 Location: Arena Zagreb, Zagreb, Croatia ASDA is a key exhibition for the Defence, Aerospace, and Security sectors, attracting military delegations and global industry leaders.

14. ZAUH Fair 2025 Date: 10 April 2025 Location: Ljubljana, Slovenia This event addresses AI-driven cybersecurity, tailored for IT professionals and Data Protection Officers.

9. International Industry Fair 2025 Date: 8–11 April 2025 Location: Celjski Sejem, Celje, Slovenia Covering machine building, toolmaking, welding, automation, and polymers, this is Southeast Europe’s most influential industrial gathering.

15. BeoPlant Fair 2025 Date: 23–26 April 2025 Location: Belgrade Fair, Belgrade, Serbia A horticultural showcase featuring plant cultivation, beekeeping, and landscape architecture.

10. KOMOT Fair 2025 Date: 8–11 April 2025 Location: Celjski Sejem, Celje, Slovenia Focused on public utilities, KOMOT showcases innovations in water supply, wastewater treatment, and waste management.

5. Primorski Sejem 2025 Date: 4–6 April 2025 Location: Arena Bonifika, Koper, Slovenia A dynamic trade fair featuring live presentations from local and international artisans, Primorski Sejem is a platform fostering engagement and business opportunities.

11. Mostar Fair 2025 Date: 8–12 April 2025 Location: Mostar, Bosnia and Herzegovina This multi-sectoral trade fair offers exhibitors opportunities to showcase innovations in agriculture, automotive, high-tech, and services.

6. World Education Fair Albania 2025 Date: 5 April 2025 Location: Rogner, Tirana, Albania This educational fair connects institutions with students seeking undergraduate and postgrad-

12. REPEX Retail & Property Expo 2025 Date: 9–10 April 2025 Location: Hotel Hills Sarajevo, Bosnia & Herzegovina This event focuses on retail and property trans-

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The Region

16. SEEBBE - International Building Trade Fair 2025 Date: 23–26 April 2025 Location: Belgrade Fair, Serbia Focusing on civil engineering, hydro construction, and construction materials, SEEBBE is a major event for the construction industry.

17. Windoshow 2025 Date: April 2025 Location: Belgrade Fair, Serbia A trade show dedicated to window-door-glass production and technology.

18. LOV International Hunting & Fishing Fair Date: April 2025 Location: Gornja Radgona, Slovenia A premier event for hunting and fishing enthusiasts.

23. INTERNAUTICA Boat Show 2025 Date: 22–25 May 2025 Location: Piran, Slovenia A showcase of the latest in boating technology, featuring world premieres, test drives, and expert lectures.

MAY 19. International Tourism & Ecology Fair 2025 Date: 8–10 May 2025 Location: Lukavac, Bosnia & Herzegovina LIST highlights sustainable tourism, cultural heritage, and gastronomy.

20. Utility Vehicles and Logistics Fair 2025 Date: 15–17 May 2025 Location: Celje, Slovenia A showcase for commercial transport and logistics innovations.

21. International Agricultural Fair 2025 Date: 17–22 May 2025 Location: Novi Sad Fair, Novi Sad, Serbia One of Europe’s top agricultural trade events.

22. International Fair of Techniques & Technical Achievements 2025 Date: 20–23 May 2025 Location: Belgrade Fair, Serbia A leading fair for electronics, mechanical engineering, IT, and energy technology

24. Belgrade Future Gaming 2025 Date: 27–28 May 2025 Location: Belgrade Fair, Serbia A premier event for gaming equipment, software, and industry networking.

25. Balkan Security Expo 2025 Date: 28–29 May 2025 Location: Belgrade Fair, Serbia Showcasing security solutions in cyber protection, physical security, and fire protection.

26. Sarajevo Industry Fair 2025 Date: 28–30 May 2025 Location: Skenderija Center, Sarajevo, Bosnia & Herzegovina Focusing on energy, construction, machinery, and metal industries.

27. Agro Tech and Natural 2025 Date: May 2025 Location: Agro Park Tirana, Tirana, Albania A trade fair dedicated to agriculture, livestock, and sustainable production.

28. International Packing Materials and Packing Technology Fair Date: May 2025 Location: Zagreb Fair, Zagreb, Croatia Showcasing the latest in sustainable packaging materials and machinery.

JUNE 29. Belgrade Tango Encuentro 2025 Date: 4–9 June 2025 Location: Belgrade, Serbia A major international tango festival featuring renowned performers.

30. 100 EXPO – International Business Fair & Conference Date: June 2025 Location: Sarajevo Hotel Hills, Bosnia & Herzegovina A key platform for regional business networking.

31. Halal Expo Sarajevo 2025 Date: 17–19 June 2025 Location: Sarajevo, Bosnia & Herzegovina A leading event for the halal industry in the Adriatic region.

32. Real Expo Sarajevo 2025 Date: 18–19 June 2025 Location: Sarajevo, Bosnia & Herzegovina An international fair on real estate investments and construction.

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Revolt

The Great Consumer Revolt How the Adria Region is Fighting Against High Prices 53% drop in retail revenue during boycotts

Silent Uprising - Consumers Take on Big Retail It started as a single day of protest in Croatia—but within a week, consumers across Serbia, Montenegro, Bosnia and Herzegovina, North Macedonia, and Slovenia joined a regionwide boycott, refusing to spend money at major retailers. Their message is clear: corporate profiteering and unchecked price hikes will no longer go unchallenged.

With some governments supporting the movement and others remaining silent, the boycotts have disrupted businesses and policymakers alike. Supermarkets have seen record-low sales, economists are noting, and politicians are feeling the heat. But is this just a temporary show of consumer frustration, or is the Adria region witnessing the rise of a lasting economic protest movement?

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The Region

Country Breakdown January 24: Croatia

January 31: Serbia

First consumer action begins

Movement expands, gas stations affected

From Isolated Protest to Regional Disruption Croatia’s protest that set off a wave The catalyst for the movement came from Halo, Inspektore, a Croatian consumer advocacy group that, on 24 January, urged shoppers to stop spending for a full day in protest against corporate price hikes.

The premise was simple: if businesses wouldn’t lower prices, consumers would show them the consequences.

Few expected the impact to be immediate.

But by the end of the day, Croatian shopping centres reported a 53% drop in sales, a figure that sent shockwaves through the economy.

January 31: Bosnia & Herzegovina

Mass participation, banks targetedd

January 31: Montenegro

Government support, Chamber of Commerce opposition

January 31: North Macedonia

Unusual political unity, strong retail effect

January 31: Slovenia

Retailers remain silent, uncertainty ahead

What started as a Croatian protest quickly spread across the region, with consumer groups in Serbia, Bosnia & Herzegovina, Montenegro, North Macedonia, and Slovenia following suit just a week later.

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Revolt

The Financial Shockwave Retailers Feel the Impact Croatia (24 January) The epicentre of the movement, where Halo, Inspektore launched the first 24-hour boycott of major retailers. The result? A massive 53% drop in revenue for shopping centres and supermarkets.

The success prompted continued boycotts, expanding into gas stations, delivery services, and banks.

Serbia (31 January) Amid ongoing political protests and rising inflation, consumers refused to shop at five major retail chains. Although the boycott had no official government backing, it was strongly supported by consumer associations and trade unions. Retailers reported 3040% lower sales, making it one of the most successful economic protests in Serbia’s recent history.

Bosnia & Herzegovina (31 January) A country known for low wages and high living costs, Bosnia saw one of the highest participation rates, with 90% of consumers supporting the boycott. The government has yet to respond, but retailers have already hinted at potential price adjustments.

Montenegro (31 January) The only country where the Prime Minister openly supported the boycotts. While this boosted consumer participation, the Chamber of Commerce and Consumer Association opposed it, arguing that price regulation should be left to market forces.

Despite this, estimates suggest 40-50% fewer purchases were made on boycott day.

North Macedonia (31 January) A rare moment of political unity, as both the ruling party and the opposition backed the boycotts. Reports suggest major supermarket chains lost nearly half their usual revenue, signalling one of the most financially damaging boycotts in the region.

Slovenia (31 January) Public support remains high, though the movement is less structured than in Croatia or Serbia. Retailers have remained silent, and no official statistics on sales loss have been published yet. However, local economists predict that if retailers fail to respond, Slovenian consumers may intensify their boycott strategy.

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Zoran Drakulić Urges a New Economic Approach → 72

A Market in Crisis—What’s Next for Businesses and Governments?

A Silent Register, A Loud Message

The numbers are staggering. Over the course of a few days, supermarkets across the Adria region saw sales plummet at unprecedented levels.

In Croatia alone, where the boycott began, revenue dropped by 53%. Retailers in Serbia and Montenegro reported 30-50% fewer transactions, while in Bosnia & Herzegovina, an overwhelming 90% of consumers participated in the economic protest.

At first, businesses underestimated the scale of the disruption. With no street protests, no banners, no slogans, there was no traditional sign of unrest.

But the quiet registers told a different story—one that retail executives, economic analysts, and politicians could no longer ignore.

The Voices Behind the Boycott

Consumers, Businesses, and Politicians Speak Out A Consumer Revolt Years in the Making For years, rising costs in the Adria region were met with shrugged shoulders and quiet grumbling.

But something about this moment felt different.

“We are not asking for miracles—we just want fair pricing,” said a Serbian activist from Efektiva, one of the most vocal consumer advocacy groups in the region.

Efektiva played a key role in mobilising Serbian consumers, calling for strategic non-spending days to pressure retailers into fairer pricing practices. The approach worked—estimates show that during the Serbian boycott, retail transactions fell by 30-40%, marking one of the largest consumer-driven economic protests in the country’s history.

In Bosnia & Herzegovina, the scale of participation was even more striking. Over 90% of consumers joined the boycott, making it one of the most widespread economic protests the region has seen. While Bosnian officials have remained silent, retailers are now hinting at potential price adjustments—an early sign that the movement may have lasting effects.

A Divided Political Response Faced with mounting pressure, governments across the region reacted in sharply different ways.

In Croatia, Prime Minister Andrej Plenković cautiously acknowledged the impact of the protest, suggesting it could influence future policies on price regulation. His words were carefully measured, signalling an awareness of consumer frustration but stopping short of promising immediate action.

“This is a significant message from our citizens,” Plenković stated. “We will take it into account as we consider future measures to regulate price increases on essential goods.”

While Croatian officials leaned toward diplomacy, Montenegro’s government took a far bolder stance. Prime Minister Milojko Spajić openly supported the boycott, framing it as a necessary act of consumer empowerment.

“I support this movement because it shows that Montenegrins will no longer accept arbitrary price hikes,” Spajić declared. “We must ensure fair competition and transparent pricing for all.”

Spajić’s position placed him at odds with the Montenegrin Chamber of Commerce, which opposed the movement, arguing that price regulation should be left to market forces rather than public protest. The conflicting viewpoints underscored a regional debate that is far from over.

Serbia – Government Response: Context: Unlike Croatia, the Serbian government did not officially respond to the boycott. However, consumer organisation Efektiva led the charge in mobilising protests, making it one of Serbia’s most significant consumer-driven actions in recent years.

North Macedonia – Political Parties (VMRO-DPMNE & SDSM): Context: In a rare moment of political unity, both the ruling VMRO-DPMNE party and the opposition SDSM publicly endorsed the boycotts, recognising their significance in addressing cost-ofliving concerns.

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Revolt

What Happens Next?

For years, shoppers across the Adria region have quietly accepted rising prices. Complaints filled social media, family conversations revolved around shrinking paychecks, and frustration simmered beneath the surface. But until now, there had never been a clear, collective response.

This movement changed everything.

What began as a one-day experiment in Croatia has forced businesses to reconsider their pricing strategies, led politicians to publicly acknowledge consumer frustration, and ignited discussions on economic activism across the region. The question that remains is: Was this a single act of defiance or the start of a long-term transformation in consumer behaviour?

Will the Boycotts Continue?

Across the region, consumer advocacy groups are already planning the next steps. In Croatia, Halo, Inspektore has suggested that supermarkets and banks could face regular non-spending days if price adjustments aren’t made. Meanwhile, Serbia’s Efektiva is calling for an expansion of protests beyond grocery chains, warning that banks, telecom providers, and even fuel companies could be next.

“We proved that we have power,” says a spokesperson from Efektiva. “The next step is making sure businesses know this wasn’t a onetime stunt.”

The momentum is real, but sustaining it will be a challenge. Consumer movements are notoriously difficult to organise on a long-term basis—protests may start strong, but without concrete results, public enthusiasm often fades. For this movement to endure, shoppers will need to see tangible victories.

Will Businesses Adapt or Resist?

Retailers are facing a difficult decision: lower prices to regain consumer trust, or hold firm and risk long-term damage to their brand reputation.

So far, reactions have been mixed. Some companies, including Kaufland and Konzum, have already announced price freezes on key products, a move seen as a direct response to consumer pressure. Others, however, remain silent, hoping the outrage will fade before they have to act.

“Businesses that ignore this movement are gambling with their future,” warns an industry analyst in Slovenia. “Consumer trust, once lost, is extremely difficult to regain. If companies don’t make changes, they may see permanent shifts in shopping behaviour.”

Will Governments Step In?

With boycotts disrupting retail markets across multiple countries, some governments may soon face an unavoidable question: Should they intervene?

In Croatia, Prime Minister Andrej Plenković has acknowledged the movement but has stopped short of promising legislative action. In contrast, Montenegro’s Prime Minister Milojko Spajić has openly backed the boycotts, stating that the public has every right to demand fair pricing. North Macedonia’s ruling and opposition parties both endorsed the movement, marking a rare moment of political unity in the country.

If public pressure continues, new legislation could emerge—including stricter price-monitoring laws, anti-profiteering regulations, or even tax incentives for retailers that keep prices stable. But such measures will require political will, and as history has shown, governments are often slow to act unless the pressure is relentless.

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Who Will Make the Next Move?

Boycotts alone won’t change the system, but they have proven something critical—for the first time in years, Adria region consumers have control over the conversation.

The next phase of this movement will depend on who takes action first: • I f supermarkets cut prices, the movement could turn into a landmark case of economic activism forcing corporate change.

• I f boycotts continue expanding, entire industries—not just supermarkets—could face massive consumer pressure.

• If governments introduce reforms, this moment could be remembered as a turning point for consumer protection laws in the region.

One thing is certain: Shoppers in the Adria region are no longer staying silent.

REACTIONS

Consumer Voices Serbia – Consumer Activist “We are not asking for miracles—we just want fair pricing.”

Context: The consumer advocacy group Efektiva played a major role in mobilising Serbian consumers against high prices. Public participation was significant, with 30-40% drops in retail sales reported.

Bosnia & Herzegovina – Public Sentiment Context: Reports confirm that over 90% of Bosnian consumers supported the boycott, making it one of the most widely endorsed economic protests in the region. While the government has yet to respond, retailers have begun considering price adjustments.

Business & Retail Responses Croatia – Anonymous Supermarket CEO “We have not seen such a large-scale, coordinated consumer movement in decades. We are monitoring the situation carefully, but prices also depend on global supply chains and inflation, not just retailer policies.”

Context: Supermarket executives in Croatia have acknowledged the impact of the boycott but argue that pricing is influenced by broader economic conditions beyond their control.

Croatia – Major Retail Chains (Kaufland & Konzum) Context: Following the boycott, both supermarket chains announced price caps on several essential products to address consumer concerns and prevent further loss of business.

Montenegro – Chamber of Commerce & Consumer Association Context: The Montenegrin Chamber of Commerce and Consumer Association opposed the boycott, stating that price regulation should be left to market forces rather than government intervention or consumer prote

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71

Straight Talk

Zoran Drakulić Urges a New Economic Approach S

erbia stands at a crossroads where business and politics intertwine, shaping the country’s economic future in ways that spark both ambition and concern. Few understand this dynamic better than Zoran Drakulić, a businessman who has built his career navigating industries from energy to metals. While foreign investments are often hailed as engines of growth, he warns that Serbia may have traded control over its most valuable resources for short-term gains—at a cost that is only now becoming clear.

In this conversation, Drakulić doesn’t mince words about the country’s economic trajectory. He reflects on what he sees as missed opportunities in managing nation-

al assets, the looming impact of U.S. sanctions on the oil sector, and why lithium mining in Serbia could be a costly miscalculation. At the heart of his perspective is a fundamental question: Who truly benefits from the decisions shaping Serbia’s economy— and what does that mean for its future?

You have long warned about the fatal consequences of Serbian politics. What were the most significant indicators over the past decade that Serbian policy was heading toward decline?

I will focus primarily on the consequences of Serbian policy concerning Serbia’s economy.

I have long stated that the country has chosen the wrong path—one that was not directed toward Serbian resources or Serbian entrepreneurs. Unfortunately, only in the past month has the government realised that, given the current international circumstances and global and European economic trends, this is the right approach. I fear that too much time has been lost and that some Serbian resources have already been handed over to foreign entities, such as NIS, Bor, and other metal mines, making it very difficult to regain control over these strategic assets.

I would particularly highlight the issue of Serbian agriculture, which has suffered due to disastrous policies and poor subsidy management. As a result, our livestock industry has collapsed, and farmers are on the brink of survival. Serbian agriculture has the potential to feed 40 million people, and with global population growth and diminishing arable

Serbian agriculture has the potential to feed 40 million people, and it is absurd that we import large quantities of agricultural products 72

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Straight Talk

land, food will become a crucial strategic commodity. It is absurd that we now import large quantities of agricultural products, including meat because our farmers cannot compete.

How do you see a possible solution to the Naftna Industrija Srbije (NIS) crisis following the U.S. administration’s decision to impose sanctions?

This issue should have been resolved much earlier. As early as 2022, after the war in Ukraine began, I sent a message to Prime Minister Ana Brnabić, urging immediate action to reclaim NIS. Nothing was done about it, and we even allowed the initial 45-day deadline to pass without any results. We boast about Russia being a great friend, but in this situation, they are using us as a political tool.

This issue must and can be resolved because if the sanctions persist for a long period, we will not be able to supply the domestic market. The biggest problems involve fuel storage and logistics, as we need to transport between 200,000 and 250,000 tons of fuel into Serbia every month.

In a recent interview, you suggested that the state should nationalise strategically important companies, specifically mentioning the Bor copper mine. Do you believe such a move could be executed without consequences in international arbitration?

I am now even more convinced that under new political circumstances, Serbia must reclaim or, if necessary, nationalise both Bor and NIS. Of course, Russian and Chinese partners should be provided with appropriate compensation or alternative concessions—perhaps offering a share of future copper production in Bor. Bor is currently facing an environmental catastrophe, with cancer rates quadrupling due to the use of low-quality imported concentrates. This situation underscores the need for professional management in strategically important companies. Such firms cannot be 74

The Region

If sanctions on NIS remain for an extended period, we won’t be able to supply the domestic market with fuel

left in the hands of political appointees; if necessary, we should bring in foreign management.

Regarding arbitration, I believe there are strong arguments related to past corruption and mismanagement in these companies, which will undoubtedly come to light. As a result, international arbitration may not be a major issue.

You have been outspoken against lithium mining in Serbia and were one of the signatories of an analysis highlighting the negative economic effects of the Jadar lithium project. Do you feel isolated in your criticism compared to the rest of Serbia’s business community, including members of the “Privrednik” club, where you previously served as president?

The Jadar project is unacceptable, as confirmed by experts in this field, particularly those knowledgeable about lithium extraction technologies and the devastating environmental impact of mining in a region rich in clean water and dependent on agriculture. I firmly believe that this project is part of the current government’s corrupt policies.

It is a fact that extracting lithium from Serbian ore cannot be done without severe

environmental consequences. That is why I strongly oppose this project.

As a businessman, how do you view the criticisms of Expo 2027 and the calls to halt its organization in Serbia?

Several people have spoken out about the Expo project, especially regarding the special laws being passed to facilitate it— once again enabling the continuation of

Extracting lithium from Serbian ore is proven to be impossible without catastrophic environmental consequences corruption in Serbia. The investment required for a 90-day exhibition is not justified, and the return on investment will never be realised.

The current government has not convinced us of the long-term purpose or profitability of this project once the event is over.

When stepping down as president of the “Privrednik” club, you stated in an interview that “corruption constitutes a major part of the economy” in Serbia. Has anything changed since then?

I don’t believe anything has changed regarding corruption. We are currently witnessing widespread discontent among students following the Novi Sad tragedy that claimed 15 lives.

Behind this incident, there is clearly corruption that led to serious professional failures.

Once again, I emphasise that the real culprit is not the profession itself but the corruption that influenced the project.

Recently, we have seen the arrests of individuals linked to corruption and connected to the government, proving what we have long known—that the current administration is sustained by large-scale corruption.

Some minor players who have been arrested accumulated millions of euros worth of assets in a short period.

Just imagine what will happen when the major figures in this corruption network are exposed. Many citizens will be shocked by the sheer scale of corruption in Serbia. ∙

The Region

75

Briefs Končar Unveils First Battery-Powered Train

Končar has unveiled the world’s first fully battery-powered regional train, a groundbreaking leap in sustainable transport. Debuting at InnoTrans Berlin, the 120 km/h train, carrying 216 passengers, showcases Croatia’s leadership in green innovation, aligning with UNESCO’s World Engineering Day and the UN’s sustainability goals.

Radisson Launches Montenegro Resort

Radisson Hotel Group is set to launch its first resort in Montenegro, Radisson Resort Ruža Vjetrova, in 2025. Nestled along the stunning Montenegrin coast, the family-friendly resort blends luxury with local charm, offering 170 rooms, exclusive beach access, and rich cultural exploration.

Ivan Rakočević Takes Charge at Tivat Airport

Tivat Airport has appointed Ivan Rakočević as director, bringing over two decades of law enforcement expertise to the role. His leadership aims to elevate passenger experience, improve security, and secure international certifications, building on record-breaking achievements under outgoing director Vladimir Praščević.

Maslina Resort Names New Hotel Manager

Maslina Resort in Stari Grad, Croatia, has appointed Klara Šoštarić as its new Hotel Manager, effective May 1. With over 20 years of luxury hospitality experience, Šoštarić will lead the resort’s continued growth, bringing expertise in quality management and visionary leadership to enhance its mindful, sustainable ethos.

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Nestlé’s Serbia Growth Milestone

Nestlé marks 20 years in Srbia with €160m investment, employing 900+ people, half women. Its Surčin factory champions sustainability with zero waste-to-landfill and water reuse. Beyond business, Nestlé supports communities, donating €1.2m in food during the pandemic and educating 200,000 children on healthy eating.

Nelt Group Invests €1.6 Million in BiH

Nelt Group has invested €1.6 million in expanding its Bijeljina logistics hub, part of a €100 million initiative to modernise Southeast Europe’s supply chains. The upgrade adds 2,065 sqm of storage, climate-controlled zones, and cutting-edge tech, strengthening its regional presence for top clients like Mondelez and Philips.

Škoda Superb Named Slovenian Car of 2025

The Škoda Superb has been named Slovenian Car of the Year 2025, edging out the Dacia Duster, Peugeot 3008, Citroen C3, and Renault Symbioz. With 50 points, it clinched victory, marking a European sweep of the shortlist for the first time since 2017—a triumph of design, performance, and innovation.

BH Telecom Expands Regionally

BH Telecom is set to acquire Telemach’s operations in Bosnia, Montenegro, and North Macedonia, reshaping the Balkans’ telecom market.

This bold move, part of a broader restructuring by United Group, positions BH Telecom as a dominant regional player, with significant implications for competition and connectivity.

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Briefs

NLB Banka Montenegro Appoints New Board Members

NLB Banka Montenegro expands its board with Marko Čelebić and Zarija Milić, driving digital innovation and growth. Čelebić, a seasoned NLB Group leader, focuses on corporate banking, while Milić, an expert in fintech and cybersecurity, leads the bank’s digital transformation and operational resilience.

Adriatic Bank Unveils Elite Card

Adriatic Bank has launched Montenegro’s first Mastercard World Elite card, offering affluent clients exclusive perks like a personal concierge, global lounge access, luxury discounts, and premium insurance. A game-changer in luxury banking, it reinforces the bank’s commitment to innovation and elite service.

Albania’s Floating Solar Revolution

The partnership between China’s Sungrow and Spain’s Gamma Solutions will see Albania’s Vau I Dejes Lake transformed into a 12.9 MW floating solar hub. Backed by €13.9 million in funding, this innovative project signals Albania’s bold step toward sustainable, diversified energy.

Slovenian Pharma Giant Krka Soars

Slovenian pharmaceutical giant Krka has reported an impressive 13% profit rise to €353.4m and record revenues of €1.91bn in 2024. With strong gains in Eastern Europe and over 22 new product approvals, the company forecasts €2bn in revenues for 2025, reinforcing its growing global influence.

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Amer Kapetanović explains how RCC is helping the WB → 82

Revoz to Produce Nissan’s Electric Pixo Revoz, Renault’s Slovenian plant, is set to produce Nissan’s budget-friendly electric Pixo in 2027, boosting the region’s EV market. With a range of 200-300 km and a price under €20,000, the Pixo aims to appeal to cost-conscious buyers. The move will create 400 jobs and strengthen Europe’s EV footprint.

Croatia’s Largest Solar Plant Powers 100,000 Homes

Croatia’s largest solar plant, SE Korlat, is set to power 100,000 homes by 2026. A €70m project near Zadar, it combines 75MW solar capacity with an existing wind farm, creating a groundbreaking renewable energy hub. With storage and expansion plans, it promises cleaner, sustainable energy for the future.

Russian Retail Giant Fix Price Sets Sights on Serbia

Fix Price, Russia’s retail titan, is set to enter the Serbian market with plans to open several stores by the end of 2025. This expansion pits the Russian chain against European heavyweights like Germany’s Lidl, Slovenia’s Merkator, and Holland’s Delhaize, all of whom dominate the region. The company, which operates over 6,700 stores across Russia and neighbouring countries, offers a diverse range of products—from food and drink to cosmetics, household items, and even clothing.

Atlantic Grupa Breaks Milestone

Atlantic Grupa has reached a historic €1.08 billion in revenue for 2024, marking a 10.8% growth despite rising commodity costs. Resilient in adversity, its EBITDA surged 12%, bolstered by strategic investments, acquisitions, and a focus on operational efficiency. A milestone year of growth and stability.

The Region

79

Company Fruvita is launching Fruvita Puree - ONLY FRUIT F

ruvita, a company recognizable in the category of fruit juices made from pure fruit, has entered the category of fruit purees under the Fruvita Puree brand. This innovation brings fruit purees made from 100% fruit, with no added sugar and additives.

Fruvita wished to offer its consumers one more 100 % natural product, adapted to a busy lifestyle. Fruvita Puree is the perfect choice for everyone who wants a nutritionally rich snack, practical for consumption anytime and anywhere.

Five irresistible flavors Fruvita Puree comes in five carefully selected fruit blends, created to provide a balance of flavors and nutrients: 1. Apple, peach, mango - a refreshing blend with an exotic taste.

2. Apple, apricot, pear - a mixture of traditional fruits.

3. Apple, raspberry, blueberry - a fruit explosion, rich in antioxidants.

4. Apple, mango, passion fruit, banana - an exotic fusion of tropical fruits.

5. Strawberry, apple, banana - a classical blend of full taste.

Practical takeaway packaging Fruvita Puree comes in practical and innovative packaging, ideal for onthe-go consumption. These purees are perfect for:

• School - a snack for the youngest.

• Work - a refreshment during a workday.

• Faculty - a fast and nutritious snack between lectures.

• Travelling - an easy way to enjoy natural flavours.

This packaging is designed to preserve the full aroma and freshness of the fruit, providing maximum enjoyment in natural flavours.

Whether you are on the go or looking for a light but filling snack, Fruvita Puree is the perfect solution. Apart from being practical and tasty, these purees are vegan, which makes them suitable for everyone who cares about a healthy diet.

Why to choose Fruvita Puree?

• 100 % fruit - no additives, only natural ingredients.

• No added sugar and additives - an excellent choice for all generations.

• Easy and quick consumption - anywhere and anytime.

• Perfect snack - nutritionally rich and filling.

• Vegan product- adapted to all dietary habits.

Fruvita continues to set standards regarding natural products and Fruvita Puree is another step towards its mission to offer its consumers the best of nature, without compromising quality.

Try Fruvita Puree and enjoy the full taste of fruit- anytime, anywhere!

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Agenda

The Western Balkans’ Path to the EU

M

step. It is not just about policy papers—it is about making life easier for people and businesses. We are talking about slashing bureaucratic red tape, making it easier for professionals to work across borders, and improving investment opportunities.

The challenges? Political will and administrative capacity. If governments commit and follow through, CRM will continue to be the bridge to EU integration. The good news? The EU is taking the region seriously, and so should we.

oney alone will not solve the Western Balkans’ challenges—but strategic reforms and stronger regional cooperation just might. As the EU Growth Plan opens new financial opportunities, the region faces a crucial test: implement reforms or risk being left behind. Amer Kapetanović, Secretary General of the Regional Cooperation Council (RCC), explains how RCC is helping the Western Balkans seize this opportunity, why the Common Regional Market matters more than ever, and what must be done to keep young talent from leaving.

How does RCC plan to support the region’s digital and green transition, specifically in reducing CO2 emissions and improving energy efficiency?

How is RCC helping Western Balkan countries maximise access to EU Growth Plan funds, particularly in the rule of law and economic reforms?

Let us be honest—money alone will not solve our problems. However, access to EU Growth Plan funds can be a game-changer if we use them wisely. The Growth Plan is more than just financial aid; it is a roadmap to a stronger, more competitive Western Balkans. And RCC? We are the ones that can help the region to be ready to seize this opportunity.

Here is the deal: If WB6 want access to these funds, they need to push through major reforms—rule of law, better governance, economic transformation, digital and green transitions. RCC is in the trenches, so to speak, helping to align national plans with regional ones to fit EU expectations, build capacity, and implement policies that actually work.

We are not just talking—results are real.

Roaming fees within the region? Gone.

Trade? Up 19%. GDP per capita? Climbing.

More companies are expanding beyond borders. Green Lanes have already saved businesses over 20 years of waiting at borders in 2023 alone! And now, we’re working to make movement between the EU and WB6 easier too.

It is simple: No reform, no funds, and, more importantly, no access to the EU 82

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Amer Kapetanović

single market. But with RCC’s support, through regional cooperation, the Western Balkans is unlocking its full potential, becoming more competitive, more relevant in a global market, and taking big steps towards the EU.

What is the current state of the Common Regional Market, and are all Western Balkan countries fully committed to its implementation?

What key obstacles remain?

The region has made huge progress: roaming charges within the region are history, trade is booming, and businesses are seeing new opportunities. Nevertheless, let us be clear: political commitment varies, and not all economies move at the same pace.

CRM 2.0, the second iteration of the Action Plan that has been agreed upon by all WB6 last year in Berlin, is the next big

The green and digital transitions are not just about ticking boxes for EU membership—they are about making the Western Balkans a better place to live and do business. The Green Agenda for the Western Balkans, whose implementation is monitored by the RCC, includes everything from cutting pollution to making sure our industries are competitive in a greener future.

Here is the reality: Half of the greenhouse gas emissions come from how we produce and consume goods. We are tackling this by promoting the circular economy, reducing waste, and supporting companies that go green. The expected result?

Less pollution, more investment, and a healthier environment. And yet there is more of the reality: green transition is not a catchy phrase but a generational endeavour that will cost more than EUR 30 billion and might have a serious socio-economic impact across the region. This also has to be taken into consideration. You do not turn off thermo-power plants just like that. It takes time, money, courage and determination. That is why we call it a green transition but a transition that has no alternative.

And let us not forget digitalisation.

Fast broadband, 5G, AI, and digital wal-

lets—these are not luxuries, they are necessities. RCC is making sure our region is not left behind in the digital race. The EUWB Roaming Declaration, which slashed data roaming charges by up to 99%, was just the start.

The regional approach is simple: Make green and digital progress work for people. More efficiency, lower costs, cleaner air—who would not want that?

How do you see the future of Western Balkan EU integration? Do you believe any country in the region could join the EU before 2030?

If you ask people in the Western Balkans whether they think they will join the EU by 2030, you’ll get mixed reactions. Some are hopeful, others sceptical. The truth?

It depends on what happens in the next few years.

For the first time, the EU is offering something tangible before full membership: access to parts of the Single Market. That is huge. But here is the catch— our region needs to prove we can deliver reforms. No shortcuts. No excuses. To that end, the CRM is an important test. If we cannot be competitive in a market of 18 million people, I am sure we cannot be even close to competitiveness in a market of 450 million people.

Public support for the EU is still high (54%), but people are getting tired of waiting. They want real change—jobs, security, better services. Regional cooperation can be a tool that makes sure the Western Balkans stays on track, whether full membership happens by 2030 or a little later.

What are the main challenges in retaining young talent and driving economic growth in the region, and what strategies is RCC implementing to address them?

Let us be blunt: Young people are leaving.

In the past decade, over 5 million people packed their bags and left the Western Balkans. Why? Better salaries, better opportunities, and a more stable future. And who can blame them?

But here’s the thing—we can’t stop people from chasing their dreams, but we can help them look for their dreams in the Balkans, too. For that to happen, we need to

create real opportunities that make young people want to stay. For example, for our part, we have brokered agreements to make it easier for professionals to work across WB6 borders, supported the creation of Digital Innovation Hubs, empowered innovative and tech-savvy minds and gave them an initial push to create their own products or businesses through annual competitions such as Balkathon and Butterfly Innovation Award, pressed for more investment in innovation and entrepreneurship, etc.

The numbers do not lie: Youth unemployment is still too high (25.1%), but we are making progress. Programmes like the Western Balkans Youth Lab give young people a voice in policymaking. The creative industries—one of our biggest untapped resources—need more support.

We are working on that, too.

The Growth Plan is more than just financial aid; it is a roadmap to a stronger, more competitive Western Balkans But as we are, everyone else should make this a top priority and push forward with this in mind. Bottom line? If we create better, more stable opportunities at home, people will stay. It is that simple.

How is RCC working to ensure the effective implementation of the SEE 2030 Strategy in line with UN Sustainable Development Goals, particularly in tackling poverty, inequality, and depopulation?

The SEE 2030 Strategy is a policy document— but it is also a sort of survival guide for the region. If we do not tackle poverty, inequality, and depopulation head-on, we risk falling even further behind. We need to make sure that does not happen. But the implementation of the SEE2030 is not a task for one organisation that monitors its implementation but for the entire region of South East Europe and each and every one of its thirteen participants.

One of our most recent key initiatives within the SEE2030 Strategy is the South East European Network on Disaster Risk Insurance and Risk Sharing, which we launched at the last RCC Board meeting at the beginning of March. It aims to ensure that when disaster strikes, economies are not left to pick up the pieces alone. Climate change is already taking its toll, and our region must be prepared.

Depopulation is another massive challenge. The numbers are alarming— as I said earlier, over 5 million people have left in the past decade. We need to make the region a place where people want to stay, and not just the young ones but also everyone. That means job creation, better education, stronger social policies and, above all, stability. The SEE 2030 Strategy is built around these priorities.

And let us not forget inequality. Women, marginalised communities, and young people need more support to participate in economic and social life. SEE2030 is built on the principles of making sure our region does not just grow but grows for everyone.

What are your top priorities during your mandate, and which initiatives do you see as crucial for advancing regional cooperation and European integration?

I have one goal: Make regional cooperation matter to everyday people. That means: Strengthening the creation of the Common Regional Market so businesses and citizens benefit now, not just in the future.

Pushing for deeper regional and EU integration—step by step, stone by stone, but together, and note one by one.

Accelerating the green and digital transition because that is where the world is headed, and we cannot afford to be left behind.

Supporting the SEE 2030 Strategy to improve quality of life, economic stability, and regional security.

The Western Balkans is standing at a crossroads. We can either move forward with bold reforms or stay stuck in old habits. I am an optimist that the region does not keep the status quo because the alternative is something I would not like to even imagine. ∙ The Region

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Business Expectations Rise Despite Lingering Doubts While satisfaction with the current business climate remains mixed across the Western Balkans, optimism about the year ahead is gaining strength. According to the latest RCC Balkan Barometer, nearly half of surveyed companies expect business growth in the next 12 months — even in economies where satisfaction with the current situation remains low.

This contrast reveals a region in transition: hopeful, ambitious, but still weighed down by systemic challenges.

Despite challenges, 43% of businesspeople across the region believe their operations will grow this year, while only 11% anticipate a decline. Confidence is highest in Albania (55%) and Bosnia and Herzegovina (50%), while even in Serbia and Montenegro — where other indicators are more negative — optimism remains above 25%.

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Future Business Growth: This graph shows strong optimism across the region — over 40% of respondents in most countries expect growth, with Albania, BiH and Kosovo* leading at 50% or more. Use as the lead visual

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Business Climate Satisfaction: This graph provides contrast to the optimism above. Satisfaction with current conditions is far more moderate, especially in Montenegro (10%) and North Macedonia (34%).

Use it to show the tension between optimism and reality

Business sentiment remains a mixed bag. While Bosnia and Herzegovina boasts the highest satisfaction rate (53%), Montenegro lags at just 10%, with nearly half of respondents unsatisfied. In Serbia, 51% expressed dissatisfaction — highlighting ongoing concerns over bureaucracy, labour costs, and rule of law.

These results echo what RCC Secretary General Amer Kapetanović shared in his interview for The Region: the region is progressing, but reforms are uneven, and businesses are often forced to look ahead with hope rather than current support.

This data-driven snapshot of the Western Balkans reveals a region that is cautiously optimistic, driven by resilience but still shaped by systemic pressures. As EU integration advances and regional cooperation deepens, the business sector may be both the barometer and the engine of meaningful change.

Inflation (Consumer Price Index): The timeline-based CPI graph shows the post-COVID spike in inflation across all the Western Balkan economies and the recent trend toward stabilisation

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Behaviour

Who You Sit Near Matters Who you sit near at work can elevate your performance or drag it down, making office layout a surprisingly powerful tool for success.

Most people understand that talent, hard work, and experience shape workplace performance. But what if one of the most overlooked factors influencing success is something as simple as who you sit next to? A study from Kellogg Insight, conducted by Dylan Minor and Michael Housman, found that employees working in close proximity to high performers experience a significant increase in their own productivity—by as much as 15%. This finding suggests that success is not just an individual effort but can be contagious in the right environment.

The Productivity Ripple Effect

pick up habits, work styles, and strategies just by being in the same space as top performers. This phenomenon, often called “positive spillover,” can create a culture of high achievement within teams and departments.

However, there is a flip side to this effect. Just as good habits and high performance can be contagious, bad habits and negativity can spread just as quickly. The study revealed that sitting near a toxic coworker—someone who is disengaged, inefficient, or disrup-

“Sitting next to a toxic coworker can be even more damaging than the positive impact of a high performer”

When high performers are placed in a workplace, their impact doesn’t stop at their own output—it spreads. The research shows that employees who work near top performers tend to mirror their behaviours, improving their own efficiency, work ethic, and engagement.

Whether through observation, informal learning, or simply feeling motivated by the energy and discipline of those around them, people tend to rise to the level of their colleagues.

tive—can have an even stronger impact than sitting next to a high performer. Employees in close proximity to toxic workers often:

Interestingly, the study found that this improvement in performance happens naturally, without the need for additional training or management intervention. It’s a form of passive learning—employees

Shockingly, the negative effect of a toxic employee can be twice as strong as the positive effect of a high performer. This means that one toxic worker can do more damage to a team than a high performer

• P ick up bad habits—adopting a lower standard of work • L ose motivation—feeling demoralised or frustrated • Experience a drop in productivity—due to distractions and a negative atmosphere

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Behaviour

“Employees who sit near top performers tend to step up their own work” can uplift it, making it crucial for managers to identify and address workplace negativity quickly.

The Hidden Power of Strategic Seating Most companies focus on training, performance reviews, and incentives to boost productivity. However, this research suggests that something as simple as seating arrangements could be one of the most cost-effective ways to improve workplace performance.

By placing high performers in central locations where their positive influence can reach the most employees, businesses can create an environment where success becomes the norm. On the other hand, isolating toxic employees—or addressing their behaviour through interventions—can prevent their negativity from spreading to the rest of the team.

Another interesting finding from the study is that while the negative effects of toxic employees appear quickly, they also disappear just as fast once that individual is moved away or removed from the company. This suggests that businesses don’t need to overhaul their workforce to improve productivity; in many cases, a few well-placed adjustments in the office layout can make all the difference.

How Hybrid Work Changes the Game While the study was conducted in a traditional office setting, it raises important questions for today’s workforce, where remote and hybrid work models are becoming more common. If physical proximity to high performers can boost productivity, how can businesses replicate these effects in a digital environment?

For remote and hybrid teams, the challenge is to create virtual spaces that foster the same kind of informal learning and motivation 86

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that occurs naturally in a physical office. Some ways companies can do this include:

• P airing employees with top performers in mentorship programs • C reating digital workspaces that encourage real-time collaboration • Hosting interactive team meetings where employees can observe and engage with high achievers

• E ncouraging knowledge-sharing sessions where successful employees talk about their work habits

Companies that figure out how to replicate the positive spillover effect in hybrid settings will likely see higher productivity and more engaged employees—just as they would in a well-organized physical office.

The Business Case for Proximity-Based Productivity The implications of this research are profound. In an era where companies are constantly searching for new ways to increase efficiency and drive results, seating strategy emerges as an oftenoverlooked but highly effective tool. Unlike expensive training programs or complex performance-based incentives, simply arranging employees strategically can yield impressive results with minimal cost.

Key Takeaways for Business Leaders 1. High performers boost the productivity of those around them— placing them in central locations can maximise this effect.

2. Toxic employees have an even stronger impact—but in a negative way—isolating or addressing them quickly can prevent harm to overall performance.

3. S eating arrangements can be an effective and low-cost way to enhance workplace productivity.

4. Hybrid and remote work environments must find new ways to replicate the benefits of working near high achievers.

At a time when businesses are rethinking their workspaces, this research suggests that who you work next to matters just as much as the work itself. Whether in an office or a remote setting, success is contagious—and businesses should design their workplaces to make the most of it.

Bookshelf

Smart Reads for Business Leaders & Decision-Makers In this issue of The Region, we bring you two standout books that top executives, investors, and policymakers should have on their reading list. Whether you’re leading a company, shaping economic policy, or investing in the future, these books offer powerful insights into decision-making, leadership, and the evolving business landscape.

The Man Who Solved the Market

The Mind of the Leader

How Jim Simons Launched the Quant Revolution

How to Lead Yourself, Your People, and Your Organization for Extraordinary Results

By Gregory Zuckerman

By Rasmus Hougaard & Jacqueline Carter

What if data and algorit­h­ms could make better investment decisions than humans? Jim Simons, a brilliant but reclusive mathematician, redefined finance by building the world’s most successful hedge fund—Renaissance Technologies. Instead of relying on economic trends or intuition, his team developed advanced AI-driven models that consistently outperformed even the smartest investors.

Why it Belongs on Your Shelf • T he future of investment and business strategy is data-driven. Understanding this shift is crucial for anyone working

in finance, tech, or corporate strategy.

• German investors are heavily focused on automation, AI, and machine learning—this book offers insight into that mindset.

• I t’s a masterclass in risk-taking, innovation, and challenging the status quo.

Beyond finance, this book reveals how big data is transforming decision-making in every industry. Whether you run a company, advise investors, or develop policy, Simons’ revolution offers powerful lessons.

What makes a leader truly successful today? It’s not just strategy or intelligence—it’s mindset.

Based on research with 30,000+ global leaders from companies like Google, Accenture, and Microsoft, this book argues that great leadership is built on mindfulness, self-awareness, and emotional intelligence—not just power and performance.

Why it Belongs on Your Shelf • The business world is shifting—companies that thrive are those that develop people-first leadership styles.

• Germany’s corporate culture is deeply influenced by leadership science—this book offers a window into the thinking behind top global CEOs • It’s not just about leading others—it’s about leading yourself better to make sharper decisions, avoid burnout, and improve focus.

This is an essential read for any leader looking to stay ahead in a fast-changing world. The future belongs to those who combine sharp business instincts with human-centered leadership—and this book shows exactly how to do it.

Essential Takeaway

Essential Takeaway:

The biggest wins aren’t always made by those who play the game best—but by those who change the game entirely.

The best leaders don’t just manage people—they inspire them.

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Perception The Psychology of Colors in Business

Why Are Boardrooms Always Blue?

Ever noticed that most corporate boardrooms, leadership offices, and high-stakes negotiation rooms are painted in blue, grey, or neutral tones? That’s not a coincidence. Color psychology plays a major role in business decisions – from how CEOs dress to how companies brand themselves. Here’s why blue dominates the business world – and what other colors secretly influence power, negotiation, and perception.

The Power of Blue Why It’s the #1 Business Color

Black Grey & White The CEO Power Palette

Blue = Trust, Stability, Focus

Black = Sophistication, Control, Prestige

• Blue is the most used color in corporate branding because it pro-

jects confidence and reliability.

• Tech giants (IBM, Facebook), banks (Visa, Deutsche Bank), and global organizations (United Nations, NATO) all use blue because it subconsciously signals professionalism and authority.

• Studies show that blue environments increase focus and lower stress—making it ideal for negotiation rooms.

Next time you walk into a boardroom, check the walls. If they’re blue, the company wants you to feel secure.

• B lack is the color of luxury and exclusivity – used by Mercedes-Benz, Chanel, and Prada.

• M any high-profile CEOs, diplomats, and business moguls wear black suits to project dominance.

White = Clarity, Simplicity, Modernity

• Tech innovators (Apple, Tesla) use white to suggest innovation and a clean, future-forward vision.

• C EOs often wear white shirts because they subconsciously signal transparency and authority.

The Red Effect Power, Urgency, and Action Red = Dominance, Urgency, Energy

• Politicians wear red ties in debates because it signals strength and confidence.

R

• ed is used in sales and fast decision-making environments – think Coca-Cola, CNN, Ferrari, and “SALE” signs in stores.

• Studies show that people react faster in red-colored environments, making it a high-stakes negotiation tool.

If a leader wears a red tie in a meeting, they’re sending a subconscious power signal.

Dark suits + white shirts = the ultimate power uniform.

The Hidden Power of Color in Negotiation & Leadership

• Want to control a business conversation? Pay attention to color: • Wear blue if you want to appear professional and trustworthy.

• Wear red if you need to take control and dominate a room.

• U se green in branding to attract high-value clients and longterm investors.

• N ever underestimate the power of a white shirt—it signals leadership without saying a word.

Green & Gold: The Colors of Wealth and Growth Green = Wealth, Sustainability, Balance

• Green is common in luxury brands, finance, and eco-conscious businesses.

R • olex, Starbucks, and Land Rover use green to associate their brands with wealth and quality.

Many high-end business lounges and VIP investor spaces use green tones — symbolizing money and long-term growth.

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Next Time You Step Into a Boardroom, Ask Yourself: What Is This Color Telling Me?

• Are you walking into a negotiation where blue walls are calming tensions?

• Are you in a sales pitch with red visuals pushing urgency?

• Are you attending a luxury business event where green and gold are reinforcing wealth?

What’s the color of your office? Maybe it’s time for a strategic refresh.

Events

10 February

2-5 March

The European Institute of Innovation and Technology (EIT) inaugurated its Community Hub in Albania, aiming to bolster innovation and entrepreneurship within the country. This initiative is set to provide Albanian innovators and startups with access to EIT’s extensive network, resources, and support programs, fostering a more vibrant entrepreneurial ecosystem.

The Kopaonik Business Forum once again gathered top government officials, business leaders, and experts to discuss Serbia’s path toward becoming a high-income economy. Key topics included EU integration, digital transformation, energy transition, and financial market trends shaping the region. The event concluded with the presentation of the “Kopaonik Consensus,” outlining strategic recommendations for sustainable economic growth. Over 1,500 participants engaged in high-level discussions on investment opportunities and regional cooperation.

Sponsored by leading firms like Andersen, the forum reinforced its reputation as the “Serbian Davos.”

EIT Community Hub Launch in Albania

Kopaonik Business Forum 2025

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Events

22 February – 4 March 2025

12 March

From late February to early March, the streets of Ptuj, Slovenia’s oldest town, erupted with colour, noise, and folklore as the Kurentovanje Carnival took over. At the heart of the celebration were the iconic Kurenti— fur-clad, horned figures believed to chase away winter and bring good fortune for the coming year. Recognised by UNESCO for its cultural significance, the festival blended deep-rooted pagan traditions with a festive atmosphere of parades, music, and community spirit. Locals and visitors alike joined in, turning the town into a living museum of heritage, rhythm, and joy.

The 57th GZS Awards, hosted by Gospodarska zbornica Slovenije (GZS), celebrated not just individual achievements but the broader impact of visionary leadership in shaping Slovenia’s economic future. The event emphasised that success is never a solo endeavour, echoing Aristotle’s thought, “The whole is greater than the sum of its parts.” The honoured business leaders—Milan Kuster, Estera Brajak, Enver Šišić, Peter Čas, and Medeja Loncar—were recognised not just for their results but for resilience, adaptability and commitment to innovation in uncertain times. GZS President Tibor Šimonka highlighted how Slovenian businesses navigate geopolitical and economic challenges, reinforcing why leadership matters beyond the boardroom. This year’s awards provided a roadmap for leadership in the Adria region, inspiring businesses to think beyond short-term success and invest in sustainable, future-ready strategies.

Kurentovanje Brings Ptuj to Life

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Visionary Leaders at the GZS Awards

The Elusive Balkan Lynx → 96

7 March

20-22 March

The AmCham Slovenia Business Leaders Club had an inspiring day in Gorizia, combining innovation at the Pipistrel Aircraft factory with history at the Franciscan Monastery Kostanjevica. Hosted by Gabriel Massey, the visit to Pipistrel showcased cutting-edge aviation advancements, while the monastery visit highlighted Slovenia’s rich heritage and its connection to France as the final resting place of the last Bourbon king. The Wines of Friendship & Peace initiative, rooted in this historic site, underscored the power of cross-border collaboration. The event reaffirmed AmCham Slovenia’s mission of bringing together top executives to challenge ideas, exchange insights, and shape the future of business.

Shkodra Carnival in Albania is an annual carnival showcasing a blend of medieval traditions and vibrant local heritage. The event featured stunning Venetian-style masks, traditional Albanian folk music, and elaborate parades through the historic streets. Locals and visitors dressed in elaborate period costumes, adding to the festive atmosphere. As one of Albania’s most culturally rich celebrations, the carnival reinforced Shkodra’s reputation as a hub of artistic and historical preservation.

AmCham Slovenia Leaders Explore Innovation & Heritage

Shkodra Carnival Celebrates Tradition and Culture

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Power Moves

Why CEOs Should Never Take a Monday Morning Meeting The First Hours of the Week Define the Rest

Most business leaders start the week by diving straight into meetings – but the smartest CEOs protect their Monday mornings fiercely.

Why? Because Monday sets the tone for the entire week. High-performing executives use this time for strategy, deep work, and personal clarity – not endless meetings.

The Case Against Monday Morning Meetings Your Brain is at Its Peak • Studies show that Monday morning is one of the most productive times for cognitive performance – but only if it’s used for focused work.

• The first 2-3 hours of the workweek should be spent on high-priority decisions, creative problem-solving, and strategic thinking.

Meetings Drain Energy Early • Meetings demand attention but rarely create real progress.

• One bad, unproductive meeting can ruin your entire day’s focus.

• CEOs who start with meetings often get trapped in reaction mode, responding to others’ demands instead of leading proactively.

The “CEO Deep Work Rule”

• Many top CEOs block Monday mornings for

uninterrupted work – no emails, no calls, no distractions.

• Bill Gates, Jeff Bezos, and Elon Musk all follow structured time-blocking strategies to protect focus.

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What the World’s Best CEOs Do on Monday Mornings Tim Cook (CEO, Apple): Wakes up at 3:45 AM and reads customer emails to stay connected to Apple’s core business.

Jeff Bezos (Amazon Founder): Starts his day slowly, with a calm morning, breakfast, and strategic thinking – no urgent tasks.

Oprah Winfrey: Spends Monday mornings on mindfulness, reading, and setting intentions for the week.

The Pattern?

They don’t let external demands take over their first hours of the week.

How to Protect Your Monday Mornings Like a CEO  B lock the first 3 hours for deep

work – no meetings, no emails.

 Prioritize strategy, long-term planning, and creative thinking.

 Set your biggest goals for the week before engaging with others.

 Push all non-essential meetings to Tuesday or later.

Challenge for Executives: Try protecting your Monday morning next week.

Block time for deep work and see how it transforms your productivity.

If you want to run your company like the best CEOs in the world, start by owning your Monday mornings.

Your team, your inbox, and your industry will still be there at noon – but your best thinking hours won’t.

Make them count.

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The Region, in Numbers

the s in sing sse ine on u r Bus ia regi tome s Adr for cu tion.

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Across industry, investment, and public opinion — these ten figures offer a snapshot of how the Adria region is reshaping its future.

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40 The Region

93

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(Source: RCC Balkan Barometer)

Western Balkan businesses expecting growth in the next 12 months

43%

Rev enu ret e dro aile p rs for o dur Cro c n o n sum e-da ing th atian e er y b o yco tt.

53%

Tales The Zduhać Protectors MONTENEGRO, SERBIA, BOSNIA AND HERZEGOVINA In Montenegrin, Serbian, and Bosnian folklore, a zduhać is believed to be a man whose soul can leave his body during sleep to combat demonic beings that bring bad weather, such as storms and hail, thereby protecting their community’s crops.

The Benevolent Dragons (Zmaj) SERBIA In Serbian mythology, the zmaj is often depicted as a benevolent being, protecting people from evil forces such as the destructive ala demons.

These dragons are seen as guardians, ensuring safety from storms and other natural calamities.

The Ala Demons BULGARIA, NORTH MACEDONIA, SERBIA In Bulgarian, Macedonian, and Serbian folklore, an ala (also known as hala) is a female mythological creature considered a demon of bad weather. They are believed to lead hail-producing thunderclouds toward fields, vineyards, or orchards to destroy crops or steal them away.

The Rainmaking Dodola Ritual BALKANS

The Dodola or Perperuna is a rainmaking ritual found among various Balkan peoples, including those in Albania, Bulgaria, Croatia, Greece, Hungary, Kosovo*, Moldova, Montenegro, North Macedonia, Romania, and Serbia. The ceremony involves young girls or boys dressed in fresh branches, leaves, and herbs, singing and dancing through villages to invoke rain during times of drought.

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The Legend of Đavolja Varoš SERBIA Located in southern Serbia, Đavolja Varoš (Devil’s Town) features peculiar rock formations that, according to legend, are a petrified wedding party.

The devil bewitched the guests to make a brother marry his sister, but divine intervention turned them all to stone to prevent the sin, leaving a haunting landscape behind.

The Lost Continent of Greater Adria ADRIATIC REGION

Greater Adria was a paleomicrocontinent that existed from approximately 240 to 140 million years ago. Its remnants now form parts of mountain ranges in Southern Europe, including the Alps and the Balkans, highlighting the region’s dynamic geological history.

The Curse of the Balšić Dynasty MONTENEGRO, ALBANIA The Balšić noble family ruled over Zeta (modern-day Montenegro) and parts of northern Albania from 1362 to 1421. While historical records detail their reign, there is no well-documented legend or curse associated with their dynasty in the provided sources.

The Moštra Dance of Žrnovo CROATIA In the village of Žrnovo on the Croatian island of Korčula, the traditional Moštra sword dance is performed annually on August 15th, the feast day of the Assumption of Mary. The dance involves synchronized formations accompanied by bagpipes and drums, showcasing the village’s rich cultural heritage.

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Wildscope

EXPLORING THE UNTAMED SIDE OF THE ADRIA

The Elusive Balkan Lynx Hidden in the dense forests of the Adria region, the Balkan lynx moves like a ghost. With fewer than 50 left in the wild, can we still save this guardian of the wilderness?

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A Silent Phantom in the Forest In the rugged terrains of the Adria region, a silent guardian prowls—a symbol of wilderness and a testament to nature’s resilience.

The Balkan lynx (Lynx lynx balcanicus), a subspecies of the Eurasian lynx, is one of Europe’s most elusive and endangered felines. Once roaming freely across Albania, North Macedonia, Montenegro, and parts of Greece, its population has declined dramatically over the past century. Today, fewer than 50 individuals are believed to remain in the wild, primarily in North Macedonia’s Mavrovo National Park and Albania’s Munella Mountains.

Masters of Camouflage & The Perfect Predator With its tufted ears, robust build, and striking spotted coat, the Balkan lynx is the largest wild cat in the Balkans. It thrives in dense forests interspersed with open meadows, where it hunts its primary prey—roe deer, chamois, and hares. A solitary and nocturnal predator, it plays a vital role in maintaining ecological balance, controlling prey populations, and contributing to the overall health of forest ecosystems.

Fewer than 50 Balkan lynx remain in the wild today, with their last strongholds found in North Macedonia’s Mavrovo National Park and Albania’s Munella Mountains.

Did You Know?

The Balkan lynx is one of the rarest big cats in Europe – fewer than 50 remain in the wild.

It has been a symbol of Balkan folklore for centuries, often representing mystery and independence.

Its eyesight is six times better than a human’s at night, making it an exceptional nocturnal hunter.

Lynxes are silent hunters – their soft-padded paws let them sneak up on prey undetected.

Each lynx’s coat pattern is unique, like a fingerprint, helping researchers identify individuals.

Lynx in Myth & Culture In Albanian and Macedonian legends, the lynx is seen as a spirit of the forest, guiding lost travellers.

In some Slavic myths, lynxes were believed to have magical vision, seeing truths hidden from humans.

The ancient Greeks believed that lynxes could see through walls, inspiring the term “lynx-eyed” for sharp vision.

The lynx appears on coins, stamps, and conservation emblems in Balkan countries, symbolising rare wildlife.

Tracking the Phantom Camera traps: Motion-activated cameras capture images of elusive lynxes in remote forests.

GPS collars: Some lynxes are tagged with non-harmful collars to track their movements.

Footprint analysis: Their distinctive rounded prints help researchers estimate population density.

DNA sampling: Scientists collect fur or scat to study genetics and family lineages.

Why Protect the Balkan Lynx?

Biodiversity Guardian: The lynx keeps prey populations balanced, ensuring healthy ecosystems.

Forest Health Indicator: A thriving lynx population means a well-preserved habitat.

Tourism Potential: Protected nature reserves with lynx populations attract ecotourists.

Heritage Preservation: Saving the lynx means keeping an ancient part of the Adria region’s wilderness alive.

If we lose the Balkan lynx, we lose more than a species—we lose a piece of history.

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Wildscope

A Species at the Brink

The Conservation Effort

However, this iconic species faces an uphill battle for survival. The loss of habitat, caused by deforestation, expanding infrastructure, and human encroachment, has severely reduced its roaming territory, making it increasingly difficult to find food and mates.

Illegal poaching remains a major threat, despite strict legal protections. Lynxes are hunted for their valuable pelts, while others fall victim to farmers who see them as a threat to livestock. Conservationists argue that lynxes rarely attack domestic animals, but fear and misinformation continue to fuel their persecution.

Adding to these challenges, prey populations have also declined due to overhunting. With fewer deer, hares, and chamois available, lynxes struggle to find enough food, leading to malnutrition and a decline in reproduction rates.

Recognising the urgency of the situation, conservationists have launched major initiatives to protect the species. The Balkan Lynx Recovery Programme (BLRP), established in 2006, focuses on population monitoring, habitat protection, and local engagement.

Several international agreements, including the Convention on International Trade in Endangered Species (CITES) and the Bern Convention, grant legal protection to the Balkan lynx. However, weak enforcement and a lack of public awareness continue to hinder progress.

The Balkan lynx is more than a rare predator; it is a living emblem of the Adria region’s untamed wilderness. Ensuring its survival is not only a mission for conservationists—it is a commitment to preserving the ecological balance, cultural identity, and wild beauty of this diverse landscape.

Balkan Lynx by the Numbers Estimated population: Fewer than 50 Primary locations: Mavrovo National Park (North Macedonia), Munella Mountains (Albania) Protected status: Endangered (CITES & Bern Convention) Lifespan in the wild: 10–15 years

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The Lynx in Balkan Folklore The Balkan lynx has not only roamed the wild, but also the imagination of the region’s people. Across history, the lynx has been a symbol of independence, strength, and wisdom.

In Albanian and Macedonian folklore, the lynx is described as a mystical guardian of the mountains, guiding lost travellers and protecting the wilderness. In Slavic mythology, it was believed that lynxes possessed magical vision, able to see truths hidden from humans. The ancient Greeks, too, saw the lynx as a supernatural being, believing it could see through walls, inspiring the phrase “lynxeyed” for sharp vision.

Even today, the lynx appears on coins, stamps, and conservation emblems, symbolising the region’s fight to protect its last wild places.

Can the Lynx Be Saved?

The battle to save the Balkan lynx is not just about protecting a species—it is about preserving an entire ecosystem. The road ahead requires a collaborative effort: R estoring Habitats – Reforestation and wildlife corridors to reconnect fragmented territories.

Stronger Anti-Poaching Measures – Increasing penalties and enforcement to protect lynxes.

Local Community Engagement – Encouraging farmers and hunters to see lynxes as an asset, not a threat.

Education & Awareness – Ensuring future generations understand the lynx’s role in the region’s ecosystem.

The Balkan lynx is more than a rare predator; it is a living emblem of the Adria region’s untamed wilderness. Ensuring its survival is not only a mission for conservationists—it is a commitment to preserving the ecological balance, cultural identity, and wild beauty of this diverse landscape. ∙

Scan to learn how EuroNatur protects the Balkan lynx and how you can help.

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Big Question

Should CEOs Retire Early or Keep Leading for Life?

Argument One: Retire Early – Success Should Mean Freedom “If you’ve built your empire, why keep working?”

There’s something undeniably appealing about the idea of stepping back while you’re ahead. For some top executives, early retirement isn’t a retreat—it’s the ultimate luxury. After all, if your career has afforded you financial freedom, the ability to mentor others, and the space to explore new passions, why continue grinding?

Peak Performance Isn’t Forever The science is clear: cognitive flexibility, processing speed, and risk assessment tend to decline after the age of 50. For CEOs in fast-moving industries like tech and media, these changes can be critical.

A Harvard Business Review study found that younger CEOs tend to outperform older ones in innovation-driven sectors, largely due to greater adaptability and openness to change.

New leadership also brings new ideas. As the world shifts, companies benefit from leaders who reflect current realities—whether that’s digital transformation, changing workplace values, or cultural shifts.

Reclaiming Time for Life’s Essentials Many top executives spend decades working 60–80 hour weeks, sacrificing personal life in the name of professional legacy. But once you’ve proven your capabilities, shouldn’t there be time to enjoy life?

Kevin Systrom, co-founder of Instagram, left the company at 34. He now focuses on family, philanthropy, and travel. “Life is short,” he said. “I didn’t want my obituary to just be about photo filters.”

The same goes for health. Burnout, high stress, and sedentary lifestyles take a toll. Retiring early allows leaders to prioritise longevity in a different sense— not just corporate, but personal.

Protecting the Legacy Hanging on too long can tarnish even the brightest reputations. From outdated views to a reluctance to adapt, leaders risk becoming bottlenecks rather than beacons.

Some analysts have questioned whether Warren Buffett should have handed over the reins of Berkshire Hathaway a decade ago, even though his legend remains intact.

Final Thought “Retirement is not quitting. It’s choosing a new game, on your own terms.”

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Some of the world’s most powerful leaders never stop. Others step back early, choosing freedom, health, and passion projects over boardrooms. But which is the smarter move?

In this issue, The Region dives into one of the most provocative dilemmas in leadership today: Should CEOs retire early—while they’re still at the top of their game—or continue working into their later years, driven by purpose, power, and vision? We weigh both sides of the debate.

Argument Two: Work for Life – Purpose Is the Ultimate Power “What happens when driven people stop working? They fade.”

For many high achievers, the idea of early retirement is unthinkable.

Work is more than a job—it’s an identity, a calling, a source of vitality.

To stop is to stagnate.

Purpose Extends Life—and Drives It A growing body of research links longer working lives with longer life spans. CEOs and entrepreneurs who remain active often report greater mental and emotional well-being than their retired peers.

A 2022 Journal of Economic Perspectives paper concluded that retirement can negatively impact cognition, especially for those in intellectually demanding roles.

Steve Jobs famously worked through illness because he believed Apple’s future was part of his destiny. For him, stepping down was not an option—until there was simply no choice.

Experience Is Irreplaceable While youth may bring energy, seasoned leaders offer what no MBA can teach: instinct, wisdom, and the ability to navigate complexity. In turbulent times, experience is often the most valuable currency.

Jamie Dimon (JPMorgan Chase), Jeff Bezos, and Elon Musk are still leading major global companies well into their 50s and 60s—not because they have to, but because they want to.

Giorgio Armani, now 89, remains actively involved in designing collections. And Warren Buffett, at 93, still speaks with clarity and conviction at annual shareholder meetings.

Evolution Beats Retirement For some, continuing to lead doesn’t mean doing the same thing forever—it means adapting the role to fit new needs. Many leaders shift from CEO to mentor, from hands-on to advisory, still shaping outcomes from behind the scenes.

Henry Kissinger was still offering geopolitical advice to global heads of state at 100, showing that influence doesn’t fade—it transforms.

Final Thought “Driven leaders don’t retire. They reinvent.”

So, What’s the Smartest Move?

Retire early, or work for life? For some, success is measured by the freedom to walk away. For others, it’s the ability to keep building, shaping, and leading until the very end.

There may be no right answer—only the one that aligns with your values, energy, and ambitions.

What Would You Choose?

If you had the means, would you retire early to enjoy life, or keep working to stay sharp, fulfilled, and influential?

Tell us what you think at info@connectingregion.com The Region

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Crossover

From the Field to the Boardroom How Athletes Are Turning to Business

For many professional athletes, success is measured in trophies, medals, and unforgettable moments on the field. But a growing number are proving that their talents extend beyond the game, as they build careers in business after retiring from sports. Across the Adria region and beyond, former sports stars have ventured into hospitality, technology, media, and manufacturing, applying the same determination and discipline that once defined their athletic careers.

From Tennis Champion to Entrepreneur

Footballers, Restaurants, and New Business Fields

Few athletes from the Adria region have embraced business as widely as Novak Djokovic. The Serbian tennis star has successfully expanded his brand beyond the sport with investments in multiple industries.

Djokovic launched the Novak Café & Restaurant franchise, with locations in Serbia, bringing his passion for healthy eating and hospitality to the public. His interest in sports event management led him to acquire and rebrand the ATP tournament now known as the Serbia Open, further strengthening his involvement in the business side of tennis. In the health and wellness industry, he introduced a nutritional product line, Djokolife, and opened a vegan restaurant, Eqvita, in Monte Carlo. Most surprisingly, Djokovic entered the biotechnology sector, holding an 80% stake in QuantBioRes, a firm focused on developing medical treatments.

Djokovic’s ventures reflect how sports professionals can use their name and financial resources to explore different industries.

However, many other athletes from the region have also found success in smaller, but equally impactful business ventures.

Football is not just the world’s most popular sport—it is also one of the most financially rewarding, allowing players to invest in post-career opportunities.

In Croatia, Robert Prosinečki, a former Barcelona and Real Madrid midfielder, moved into hospitality after retiring. He opened Prosikito, a restaurant in Zagreb, and later co-founded Padel.hr, an indoor facility that introduced padel tennis to Croatian audiences.

Meanwhile, Montenegrin basketball player Ivana Jovović turned her attention to the food industry, launching Čarolija, a successful patisserie business in Podgorica.

With expansion plans in Belgrade and Budva, her business has proven that athletes can transition into everyday entrepreneurship outside of traditional sports-related ventures.

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Best Destinations for Executives & Digital Nomads → 107

Sports and Media Motorsport’s Business Success Stories In motorsports, strategic thinking is just as important as speed, and some have translated this into media and broadcasting.

Croatian entrepreneur Davorin Štetner, although not a professional athlete, has played a key role in the sports business by founding GP1 TV, which secured Formula 1 broadcasting rights for Croatia. His company has since expanded to cover MotoGP and other motorsports events, helping to grow the sport’s audience in the region.

Innovation and Industry From Football to Manufacturing

Some former athletes take an entirely different route, moving into industries far removed from the world of sports. Shkamb Koshi, a former footballer from Kosovo*, shifted to automotive manufacturing, founding Koshi Group. His company now supplies highend carbon-fibre car parts to brands like Alfa Romeo and Jaguar, proving that success in business doesn’t always have to be connected to sports.

Similarly, Montenegrin entrepreneur Nenad Novović founded Amplitudo.me, a tech company specialising in digital product development. His firm is now a leader in Montenegro’s tech industry, with innovations such as the My Tree environmental awareness app.

Winemaking, Tradition, and a Different Kind of Legacy Athletes sometimes invest in industries linked to tradition rather than cutting-edge technology. Gjoke Gjini, a former Albanian footballer, turned to winemaking, establishing Kallmeti Winery. His efforts have helped revive Albania’s wine industry and demonstrated how business success can also come from preserving heritage.

Global Examples

How Athletes Worldwide Are Building Businesses While many athletes from the Adria region have launched successful ventures, they are following in the footsteps of global sports icons who have mastered the transition into business.

Former basketball star Michael Jordan built Jordan Brand into a multibillion-dollar business under Nike’s umbrella while also owning a stake in the Charlotte Hornets NBA team. David Beckham leveraged his football legacy to create his own brand and coown Inter Miami CF, a Major League Soccer club. Tennis legend

Davorin Štetner

Serena Williams established Serena Ventures, a firm investing in women- and minority-owned businesses while also expanding into fashion and wellness brands. Meanwhile, Cristiano Ronaldo has turned CR7 into a global empire spanning fashion, fragrance, gyms, and hotels, and former NBA player Shaquille O’Neal has built a diverse business portfolio, including restaurant chains, real estate investments, and tech startups.

What’s Driving This Trend?

Athletes have distinct advantages when stepping into the business world, positioning them for success in industries ranging from hospitality to technology. Their strong personal brand provides instant recognition and credibility, making it easier to attract investors and customers. Many retire with substantial wealth, giving them the financial resources to invest in high-risk, high-reward ventures. Their years of training and competition cultivate a competitive mindset that helps them navigate the challenges of business with the same determination they displayed on the field. Additionally, their global reach and connections in media and sponsorships create unique networking opportunities that many traditional entrepreneurs lack.

However, not all athletes find success in business. Some make poor investment decisions or struggle to adapt to the different skill sets required for entrepreneurship. Those who thrive are often the ones who surround themselves with experienced business partners and advisors, ensuring they make informed decisions and leverage their strengths effectively.

As more athletes from the Adria region recognise the potential of business, this trend will continue to grow. Whether it’s launching a restaurant, investing in tech startups, or building an international brand, their post-sports careers are proving to be just as competitive and rewarding as their time on the field.

The next generation of sports stars may not only be remembered for their achievements in the game but also for the businesses they build long after the final whistle. ∙

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Rising Strahinja Trivković Triumphs at StemCo Olympiad

Serbia Shines at Iranian Geometry Olympiad Serbia triumphed at the Iranian Geometry Olympiad, earning top honours in all categories—elementary, middle, and advanced—among 8,000 students from 60 countries. The winning team, led by Dr. Miljan Knežević, hails from Matematička gimnazija in Belgrade.

Strahinja Trivković, a 4th-grade student from Belgrade’s Third Grammar School, triumphed at the StemCo International Science Olympiad, winning 1 gold and 3 silver medals across biology, mathematics, physics, and chemistry.

This achievement caps a stellar 2024 with 14 international awards in science.

Zrinka Ljutić Closes In on World Cup Slalom Zrinka Ljutić, 20, claimed a stunning second place in Sestriere, Italy, securing the slalom lead in the World Cup standings. The Croatian skier finished just 0.61 seconds behind Mikaela Shiffrin, marking her ninth podium and third second-place this season. A future slalom star in the making.

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Besir Alili Wins U23 Bronze for N. Macedonia Besir Alili from North Macedonia earned a bronze medal in the 61 kg freestyle category at the 2025 European U23 Wrestling Championships in Tirana. Among the top-performing youth from the Adria region, Alili’s success stands out as the highest result among the six participating countries.

Tara Marković Wins 1 Million Dinars Using Her Smarts Tara Marković, an 18-year-old from Belgrade, wowed audiences on the quiz show Superpowers, taking home 1,000,000 dinars thanks to her sharp mind. Already the author of two novels, Tara also touched hearts by donating her hair to children with cancer at age 8.

Nika Prevc Claims Gold in Trondheim Nika Prevc, 19, soared to gold at the Nordic Ski World Championships in Trondheim, securing Slovenia’s sixth title. With flawless jumps of 98m and 100m, Prevc triumphed by 8.4 points over Germany’s Selina Freitag. Her win marks another leap in Slovenia’s ski jumping legacy.

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A region in motion, shaped by ambition

Branding the Region What do we mean when we talk about “branding” a region? Is it just tourism campaigns and investment slogans, or something deeper — something earned?

of cross-border cooperation. It means making the region legible to the world — not through clichés, but through clarity.

The Adria region is rich in contrast. It’s where coastlines meet capital flows, where tradition stands beside innovation, and where resilience shapes ambition. But until now, much of its global image has been fragmented — built on isolated stories rather than a collective identity.

A strong regional brand isn’t made in a boardroom. It’s forged in boardrooms and bakeries, in ports and think tanks, in every company that chooses to act regionally while competing globally. That brand is forming, organically, through shared infrastructure, digital integration, environmental goals, and joint investment summits.

To brand the region effectively is not to homogenise it. It’s to embrace its strengths: entrepreneurial spirit, export-oriented industries, untapped natural beauty, and a growing network

The Region magazine exists to amplify that process — by telling stories that resonate across borders. Because a brand is only as strong as the people who carry it.

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Business Travel

Best Destinations for Executives & Digital Nomads Navigating the New World of Business Travel

In an era where work transcends borders, business travel has evolved beyond boardrooms and briefcases. Today’s executives and digital nomads seek destinations that offer not only seamless connectivity and world-class infrastructure but also a stimulating environment for networking, productivity, and quality of life. Whether it’s a high-powered corporate hub or a haven for remote work, these cities are shaping the future of business travel.

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1

Business Travel

SINGAPORE

The Ultimate Business Powerhouse For executives, Singapore remains an unrivalled choice. Ranked among the world’s top financial centres, it boasts exceptional infrastructure, political stability, and a strategic location bridging East and West. The city-state’s Changi Airport is a global leader in connectivity, ensuring business travellers can access major markets with ease. Singapore also caters to digital nomads with its growing coworking spaces, tax incentives for startups, and a thriving fintech scene.

The blend of business efficiency and quality of life—marked by a vibrant culinary scene, green spaces, and safety—makes it a prime destination for those on the move.

3 TALLINN

Europe’s Digital Pioneer

2 DUBAI

The Gateway to Global Markets With its futuristic skyline and relentless pursuit of innovation, Dubai has become a magnet for business leaders and entrepreneurs. The city’s free zones, tax benefits, and ease of doing business attract multinational corporations and ambitious startups alike. Its high-end business hotels and luxury hospitality cater to executive travellers seeking comfort and convenience.

For digital nomads, Dubai’s new remote work visa makes it an attractive base, offering excellent internet connectivity, world-class coworking spaces, and a lifestyle that blends modern urban living with rich cultural experiences.

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Estonia’s capital, Tallinn, is a rising star in the business travel landscape, especially for digital nomads. As the first country to introduce e-Residency, Estonia has positioned itself as a global leader in digital entrepreneurship. Tallinn offers seamless online business registration, a highly skilled workforce, and a cost-effective environment compared to Western Europe.

Executives will appreciate its innovative tech ecosystem, while remote workers benefit from high-speed internet, a rich historical setting, and a lower cost of living. The city’s charm, from medieval architecture to cutting-edge digital services, creates a unique blend of tradition and technology.

4

BARCELONA

Where Business Meets Lifestyle Barcelona is fast becoming Europe’s top destination for professionals who value work-life balance. The city’s startup ecosystem, led by sectors like biotech, fintech, and creative industries, is thriving. With excellent international connectivity, conference centres, and coworking hubs, it attracts busi-

ness travellers looking for both productivity and inspiration.

For digital nomads, Barcelona offers a laid-back lifestyle with beachside cafes, an excellent culinary scene, and affordable living compared to other major European cities.

The city’s Digital Nomad Visa, introduced by Spain, further solidifies its appeal.

5

BELGRADE

The Emerging Business Hub of the Adria Region Belgrade has been quietly gaining traction as a regional business hub, attracting executives and entrepreneurs looking to tap into the Balkans’ growing economy. Serbia’s business-friendly policies, skilled workforce, and increasing foreign investments make it a compelling choice for business expansion.

With a low cost of living, strong expat community, and a rising number of coworking spaces, Belgrade is also an appealing destination for digital nomads. Its rich history, dynamic nightlife, and strategic location offer the perfect mix of work and leisure.

6 AUSTIN

The Innovation Capital of the U.S.

Known as the tech heart of Texas, Austin has established itself as a magnet for startups, venture capital, and major corporations like Tesla and Apple. The city’s pro-business environment, coupled with a strong creative and cultural scene, makes it an exciting destination for executives looking to network and innovate.

For remote workers, Austin’s numerous coworking spaces, moderate cost of living (compared to Silicon Valley), and vibrant music and food culture create an ideal base for those seeking both productivity and lifestyle perks.

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7

Business Travel

BANGKOK

Southeast Asia’s Remote Work Paradise Thailand’s capital has long been a favourite among digital nomads, and its business appeal is growing. Bangkok offers a thriving startup ecosystem, low taxes, and an easy company registration process, making it attractive to entrepreneurs and remote workers alike.

For executives, the city’s luxury hotels, modern conference facilities, and regional connectivity provide a strong business base in Southeast Asia. Combined with affordable living costs, a strong expat network, and cultural richness, Bangkok continues to be a top-tier choice.

8 LISBON

A Rising Star in Business and Remote Work Portugal’s capital has evolved into one of Europe’s most attractive business destinations.

With a thriving tech scene, competitive startup incentives, and excellent infrastructure, Lisbon is a strategic choice for executives looking to expand in Europe.

The city’s digital nomad community is also booming, supported by Portugal’s Golden Visa and digital nomad programs. The stunning coastline, pleasant climate, and relaxed lifestyle make Lisbon a top pick for professionals seeking a balance between work and leisure.

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The Future of Business Travel The landscape of business travel is changing, shaped by the rise of remote work, digitalisation, and global connectivity. Executives and digital nomads alike are prioritising destinations that not only offer business-friendly environments but also enhance productivity and lifestyle.

As companies adopt more flexible work models, the next wave of business travellers will be those who seek locations that support their ambitions while providing a dynamic and inspiring backdrop for success. Whether it’s the ultra-modern appeal of Dubai, the digital prowess of Tallinn, or the sun-soaked charm of Lisbon, the future of business travel is more exciting than ever.

RAILWAY STATION IN SLOVENIA

THE LAST WORD “By expediting the adoption of EU standards, the flow of tangible benefits for people and businesses is accelerated.”

Damien Sorell EIB Head of Regional Hub for the Western Balkans

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Roast

Someone recently asked me:

If the Adria region were a Monopoly game, what would it look like?

Probably like the poorest version of Monopoly ever.

There would be no railway stations—except maybe in Slovenia. Waterworks and Elektra would be the most expensive properties, naturally, because good infrastructure here is a luxury. Purple properties wouldn’t exist—because who in this region can afford the equivalent of the Côte d’Azur or Geneva Square?

B A L K

Most of the board would be dominated by Balkan Road and Prison, because, let’s be honest, that’s where many of our politicians belong. Not that it would matter—they’d all have at least fifty “Get Out of Jail Free” cards, since the judicial system here is more of a suggestion than a functioning institution.

Munich Street, Hamburg Boulevard, and Berlin Square would all belong to Bosnia and Herzegovina, simply because that’s the language you hear most often when you visit those cities. Brussels Street would, of course, be reserved for Croatian Prime Minister Andrej Plenković—because, let’s be honest, that’s his only longterm investment. Meanwhile, Surprise Cards would be owned by Aleksandar Vučić, because just when you think he can’t outdo himself, he surprises us all with something even dumber.

And forget about free parking—prices would increase every round.

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O

And we all know which monsters need to go first.

L Y

But I have a different game in mind. In Serbia, we’re starting to play something new. Maybe, just maybe, it’s time for the entire Adria region to switch to Here to Slay—a game about assembling a party of heroes and slaying monsters.

P O

Honestly, this whole region feels less like Monopoly and more like Risk, where politicians treat us like pawns, constantly maneuvering us into conflicts that only benefit them. Although, if they had their way, they’d probably prefer we were all playing Don’t Get Angry—that way, they could knock us off our path to stability without us having the right to complain.

A

Green properties wouldn’t exist—our politicians have no idea what “green” even means.

Instead, buildings would be grey, black, or non-existent on the Adriatic coast, where the only construction rule is: put a hotel on top of another hotel and hope for the best. We also wouldn’t need dice to determine how many fields we move—our politicians already tell us exactly how much we’re allowed to move.

Meet the Roaster

Marina Orsag

Marina Orsag is a Croatian stand-up comedian, comedy club founder, and expert in roasting both politicians and slow service at cafés. She pioneered the stand-up scene in Croatia and has performed across the Adria region and beyond. She believes that bureaucracy is just a slow-motion joke and that our politicians hold the world record for “Get Out of Jail Free” cards. This month, she takes us through Adria Monopoly – the game where the only free parking is a lie.

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In the Next Issue Coming in June: The Innovation Boom Edition

The Region As The Region’s June issue approaches, we explore the visionaries, companies, and industries redefining the future—from cuttingedge startups to corporate pioneers transforming business, finance, and sustainability.

he Cover Story: “Adria’s Innovation Boom – T Who’s Leading the Charge?”

Meet the trailblazers revolutionising technology, finance, sustainability, and industry. Discover which companies are driving change and how they’re reshaping the region’s business ecosystem.

uture-Makers: CEO Insights F & Exclusive Interviews What do top executives and startup founders predict for the next five years? Gain insights from leaders who are setting new standards for success.

I nfrastructure Renaissance: Finding Solutions for Adria’s Transportation Challenges The Adria region faces critical transport inefficiencies—from underdeveloped roads and congested cities to gaps in regional connectivity. What innovative solutions, policy shifts, and investments could help solve these challenges?

The Green Transition: How Business is Embracing Sustainability With green finance, renewable energy, and ESG policies driving corporate strategies, we look at who’s leading the sustainability revolution.

uxury & Business: L The High-End Summer of 2025 From yachts and resorts to exclusive business retreats, explore how luxury tourism is evolving in the Adria region.

ower Moves: The Executives P Reshaping the Region Want your company featured in The Region’s June edition?

Secure your spot today with a premium feature, CEO interview, or advertisement package!

Contact us at business@connectingregion.com

A look at the key business expansions, investments, and leadership changes defining the regional market.

The Regional Roast & Lesser Known Tales As always, expect a fresh dose of business humour and a fascinating, little-known story from the region’s past.

Don’t miss The Region’s June issue!

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You Ship We Care

Impressive Figure: Over 30,000 cubic meters of consolidated container cargo imported in a single year through the Adriatic region.

Address: Trešnjinog cveta 1b, 11000 Belgrade, Serbia +381 11 4220720 www.wto.com

Portonovi

The Address of your new home by the sea

WWW.PORTONOVI.COM enquiries@portonovi.com | +38267994994