Business Partner AUSTRIA

Partner November 2018

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ISSUE No.# 11

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ISSN broj 2560-4465

Austria - Serbia

Business Partner

AUSTRIA

Dr Harald Mahrer, President of the Austrian Federal Economic Chamber ● H.E. Nikolaus Lutterotti, Austrian Ambassador to Serbia ● Marko Čadež, President of the Chamber of Commerce & Industry of Serbia ● CCIS, Erika Teoman-Brenner, Austrian Commercial Counsellor ● Johannes Irschik, Director of the Austrian Cultural Forum and President of EUNIC ● Dejan Turk, CEO of Vip mobile and A1 Slovenija ● Jelena Knežević, Certified Auditor, Managing Director, LeitnerLeitner

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YOU DON’T NEED A COMMON BORDER TO BE A GOOD NEIGHBOUR

TRACHT OR AUSTRIAN TRADITIONAL COSTUMES

COMMENT

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OUR PARTNERSHIP IS STRONG & FRUITFUL

DR HARALD MAHRER, PRESIDENT OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBER

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WE HAVE EXCELLENT COOPERATION THAT’S MUTUALLY BENEFICIAL

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA, CCIS

TRADITION

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HIGH QUALITY SERVICES ARE A KEY FACTOR

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WE SUPPORT SERBIA’S EUROPEAN DIMENSION

JELENA KNEŽEVIĆ, CERTIFIED AUDITOR, MANAGING DIRECTOR, LEITNERLEITNER

JOHANNES IRSCHIK, DIRECTOR OF THE AUSTRIAN CULTURAL FORUM AND PRESIDENT OF EUNIC

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DIGITIZATION

LAST YEAR €11.3 BILLION WAS SPENT ON RESEARCH AND EXPERIMENTAL DEVELOPMENT SCIENCE AND RESEARCH

REFORMS WILL PAY OFF

H.E. NIKOLAUS LUTTEROTTI, AUSTRIAN AMBASSADOR TO SERBIA

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AUSTRIA’S PATH TO THE DIGITAL FUTURE

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SUPPORT FOR SOCIETY’S DIGITAL TRANSFORMATION

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MANY OPPORTUNITIES AHEAD

DEJAN TURK, CEO OF VIP MOBILE AND A1 SLOVENIJA

ERIKA TEOMAN-BRENNER, AUSTRIAN COMMERCIAL COUNSELLOR

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THE PLACE OF TURBULENCE, HOPE AND ART

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VIENNA ON WHEELS THE HORSE-DRAWN CARRIAGE CITY

TRADITIONS THAT LAST OVER 450 YEARS

SPANISH RIDING SCHOOL VIENNA

BURGTHEATER – 130 YEARS FROM NEW THEATRE BUILDING

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“STEP INTO THE FUTURE” RECA D.O.O.

SECOND CHANCE EDUCATION

MULTIPLE LEVELS OF EDUCATION FOR CITIZENS

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PRESERVING AUSTRIAN HERITAGE

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COMPANY REGISTER

CULTURE

NEW TRENDS IN CONSTRUCTION AND ENERGY EFFICIENCY

WIENERBERGER D.O.O. (LTD.) KANJIŽA

EDITOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com DESIGNER Jasmina Laković j.lakovic@aim.rs

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Nataša Trifunović n.trifunovic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs

PHOTOS Zoran Petrović

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

COPY EDITOR Mark Pullen mrpeditorial@mail.com

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

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FINANCE: Ajilon Solutions m.damjanovic@aim.rs EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@aim.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica, Serbia

BUSINESS PARTNER AUSTRIA Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 11 ISSN: 2560-4465 All rights reserved alliance international media 2018 THIS PUBLICATION IS FREE OF CHARGE The views expressed in this publication are those of the presenter; they do not

necessary reflect the view of publications published by alliance international media

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COMMENT

You Don’t Need A Common Border To

BE A GOOD NEIGHBOUR

Following very difficult economic reforms, Serbia needs to go through equally bold reforms in the fields of the rule of law, judicial independence and the fight against corruption. These priorities need to be addressed and Austria is ready to support the necessary changes

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t is well known that Austria considers the EU accession process of the countries of Southeast Europe, and in particular Serbia, as a priority matter of its foreign policy.

This goes hand-in-hand with another Austrian priority: the political and economic development of the region.

Such goals can easily explain the close involvement of Austria in a number of political, economic and cultural processes leading the region towards prosperity and the Austrian stance that (to paraphrase Chancellor Sebastian Kurz) the European Union would be incomplete without the countries of the Western Balkans.

Serbia may say that, at least in some of these developments, it plays the role of a leader among its counterparts in the region. It is considered a forerunner in the accession process, as well as a good example in terms of reforms.

However, significant challenges remain with regard to regional reconciliation, good neighbourly relations and internal reforms, in particular as far as the rule of law, the fight against organised crime and corruption and media freedom are concerned. As has been stated clearly by many Austrian interlocutors, these developments are also a priority during the Austrian Presidency of the European Union. As noted by Austrian Ambassador to Serbia H.E. Nikolaus Lutterotti in his interview for this publication, “these priorities need to be addressed and we offer our support”.

Economic cooperation is a good example of such support.

Austrian companies are among the largest investors in the re-

gion, providing a permanent boost to the mutual trade balance.

With the incorporating of Serbian companies into their value chains, Austrian companies are also helping domestic companies to find their place on the Austrian market and globally.

Indeed, cooperation between the Austrian Federal Economic Chamber and its Serbian counterpart is giving a new dimension to these relations in a number of fields. The transformation of the Chamber of Commerce & Industry of Serbia into the vocal representative of Serbian companies in dialogue with the government as well as abroad; the assistance of the Austrian Federal Economic Chamber and other Austrian counterparts in the introduction of the dual education in Serbia is another example – having helped Serbia to become the most successful country in the region when it comes to introducing this type of education to its system. The focus has this year been broadened to include the nonformal education of workers (with the establishing of a business academy as the Chamber’s adult training provider offering tailored training for employees) and training for Serbian companies to prepare them to cope with the Industrial Revolution 4.0., which is rapidly changing the economic landscape globally. In the coming years, the two chambers will focus on innovative apprenticeships in digitalisation.

As noted by Ambassador Lutterotti, Serbia is rightly enjoying praise after some very courageous and difficult economic reforms. Now equally bold reforms in the fields of the rule of law, judicial independence and the fight against corruption need to happen.

Obviously, both Austria and Serbia have aspirations, energy and persistence to widen the scope and depth of their mutual cooperation

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INTERVIEW

DR HARALD MAHRER, PRESIDENT OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBER

OUR PARTNERSHIP

Is Strong & Fruitful

Chambers of commerce play a crucial role in helping businesses adapt to the new demands of the market economy. The Austrian Federal Economic Chamber and its Serbian counterpart are cooperating successfully to help domestic companies find a well-trained workforce and address challenges stemming from the digital revolution

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he Austrian and Serbian chambers of commerce are longstanding partners that cooperate closely in many aspects. We spoke with the President of the Austrian Federal Economic Chamber and the President of the National Bank of Austria, Dr Harald Mahrer, about the new trends in dual education and the informal education of workers that have been gradually introduced to the Serbian education

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system, as well as the changes companies must address if they want to cope with Industrial Revolution 4.0., which is rapidly changing the landscape of the economy globally.

In which way does the Austrian Federal Economic Chamber participate in the shaping of educational programmes and profiles in Austria?

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- Education is the essential factor in successfully securing a skilled workforce. It is therefore a key area for the Austrian Federal Economic Chamber, which is the second largest provider of education and training in Austria. With its schools, universities and adult training courses, the chamber offers a variety of company-orientated and practise-orientated education and training programmes.

With regard to the dual vocational training system, the Austrian Economic Chamber plays a crucial role in the development of occupational profiles and ensures the private sector’s close involvement. Together with other social partners, the Economic Chamber is a key player in shaping the content and scope of the dual vocational training system: the occupational profiles are defined by the social partners and form the basis for the part-time vocational schools’ curricula.

Another important task is to provide support services for companies that train apprentices at the local level. The Chamber’s regional apprenticeship offices are the point of contact for all of these companies in terms of administration, subsidies and support services.

Which recommendations could you offer your colleagues from the Chamber of Commerce & Industry of Serbia (CCIS)?

- First of all, my congratulations to Serbia!

The ongoing reform process of vocational education and training and the introduction of dual vocational training is being managed very efficiently and at a considerable speed. I’m convinced that this reform will establish a solid basis for improved economic development and enhance the attractiveness of vocational education and training.

The Chamber of Commerce & Industry of Serbia has taken responsibility for crucial tasks in the implementation of the legal framework for dual vocational training. Its role as an intermediary is very helpful in supporting companies. The chamber has a strong role towards the education sector and tries to ensure that the occupational profiles and curricula meet the needs of the business sector and the economy. It is very important to tackle the current skills mismatch that leads to a lack of skilled labour and - at the same time - a high rate of youth unemployment.

Furthermore, I fully endorse the idea of establishing a business academy, an adult training provider of the chamber offering tailor-made training for employees.

An innovative and attractive provision of training, from initial training to life-long training, clearly contributes to a strong and competitive economy.

In which specific ways will you support the further development of dual education in Serbia?

- The Austrian Federal Economic Chamber and the CCIS have enjoyed a close partnership for many years. In terms of dual vocational training, we embarked on a cooperation project in 2016, with the help of Austrian development cooperation. More

specifically, our main objectives are: capacity building of the Serbian Chamber of Commerce and Industry, development of new occupational profiles, and effective support of training companies.

Introducing dual vocational training systematically is a highly demanding task.

The law on dual VET will be effective as of September 2019. During the current transition period, we are supporting the CCIS in building up its full capacities as an intermediary institution, establishing digital support services and an effective administration. This is the opportunity to create attractive educational pathways for young people, as well as business-friendly framework conditions patterned along very practical needs. We are involved in two pilot projects dealing with the occupational profiles “trader” and “freight forwarder”. Despite the challenges, the initial results and feedback are extremely satisfying.

In the coming years we will focus on innovative apprenticeships in digitalisation. CCIS President Marko Čadež is a strong partner in all respects. Apart from the multiannual cooperation

I want to congratulate our partners in Serbia for the efficient introduction of vocational education.

I am convinced that it will establish a solid basis for improved economic development

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in dual vocational training, we are also collaborating in the field of services for SMEs in digitalisation.

Given that the CCIS established – based on the model of your Chamber – a Business Academy (WIFI) that supports the in-

formal education of workers, can you tell us something more about the role of these forms of education when it comes to strengthening the competencies of the workforce?

- Our chambers’ WIFI-Network is a modern and future-orientated service institution in vocational education and training that supports Austria’s economy. Our task is to provide success- and performance-orientated individuals with the opportunities that allow them to obtain the kind of substantiated, global, tried & tested knowledge needed to meet the social, economic and occupational challenges of tomorrow. To achieve this, WIFI cultivates constant exchanges with entrepreneurs and human resource managers. Based on this permanent feedback governing the economic process as well as the labour- and occupational markets, we continuously develop innovative educational products that are consistent with the economy’s ever-changing demand. Around 20 per cent of the annual WIFI offer consists of newly-developed programmes.

WIFI is the springboard for new training methods, innovations and SME programmes. It offers innovative educational products that are demanded by the markets in eight business segments: management/corporate governance, personal development, languages, business administration, data processing/

IT, engineering, specific industries and vocational matriculation examinations/private schools.

According to WIFI’s leading principle “from practise – to practice”, the courses are conducted by 12,000 freelance trainers.

Conducting training as a part-time activity is a key WIFI requirement in international practise to ensure the practise-orientation of the training courses and to secure the direct transfer of knowledge and competencies to the job, as well as the company. Many of the trainers are entrepreneurs, professional company experts or specialist consultants.

How can knowledge acquired in such a way be used in the case of employment in other countries? To what extent are these diplomas awarded by chambers recognised in other education systems?

- In Austria, like in many other countries, adult education and continued vocational training outside of the school or university system is ‘non-formal’. Therefore, the reputation of the training provider is essential. Over 70 years, the WIFI has in Austria gained a reputation for the very high quality and practise-orientation of its courses. A WIFI-certificate is recognised and valued by Austrian companies.

In the future, the Austrian National Qualification Framework (NQF), based on the European Qualification Framework (EQF), will serve as an instrument for mapping qualifications – for schools and universities, as well as for non-formal courses in adult/continued vocational training. The aims are to provide a transparency tool to facilitate the orientation within an education and training system, and to support the comparability and comprehensibility of qualifications in Europe.

Across Europe there are different, historically evolved, education systems. But there is also a vast variety of qualifications. As mobility increases - during training periods or within a working life - there is a desire for greater clarity and better comparability. The European Commission has recommended EU-Member States develop national qualification frameworks.

Each member state implements its own qualification framework and allocates national qualifications to a specific level based on respective learning outcomes regardless of the area of education. The Austrian Qualification Framework is currently being implemented. It will ultimately map all qualifications, regardless of the education areas (from vocational education

There is growing interest among small companies from Austria to find Serbian partners for joint projects, due both to the overall lack of highly qualified labour in most of Europe and the pro-European stance of Serbian decision-makers

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to tertiary education, as well as continuous vocational training qualifications obtained in the education & training sector).

In your opinion, what is the most important thing to be done to develop the knowhow of workers in accordance with the needs of the accelerated digitalisation of the economy?

- There is a critical shortage of suitably skilled ICT professionals and job-related digital skills in the workforce as a whole, as well as a lack of general digital competences among the wider population.

The skills gap is a major policy concern.

According to the 2017 Digital Economy and Society Index (DESI), 44% of people in the EU have very low digital skills, while 27% have only basic digital skills. Young people are quick to become consumers of new technology. However, in many cases they lack the skills to master this technology and use it in a reflected or creative way. (In 2017, Austria ranked 10th in the DESI, unchanged from the year before. It has made

progress in line with the EU average in most dimensions. In digital public services, where Austria scores particularly well, it is now among Europe’s top five).

Tackling the digital skills gap and boosting digital competences is a goal that concerns the society as a whole.

Therefore, a broad partnership of stakeholders is essential. A collaboration of stakeholders can help build bridges - for example, between formal and non-formal education, work and education.

At the European level, the Digital Skills and Jobs Coalition brings together EU Member States, companies, social partners, non-profit organisations and education providers who take action to tackle the lack of digital skills in Europe. Digital skills, problem-solving skills, teamwork, critical thinking and the ability to learn will also be paramount in the changing labour market. Four emerging technologies will be vital in the future: • Data – better use of data for decision-making will be a

Connectivity and the Internet of Things will soon be pervasive. We need to prepare our workforce for the changes this will bring.

A good example is the “Coder”, a brand-new apprenticeship, starting in Austria in September 2019

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challenge: this requires data science skills based on a good mathematical underpinning and computational thinking.

• Connectivity and the Internet of Things will soon be pervasive. We need to prepare our workforce for the changes this will bring.

• Artificial Intelligence & Machine Learning (AI/ML): humans will benefit from decision support from AI/ML, but will need to understand the psychological and ethical background to compliment software and digital skills.

• Virtual Reality and Augmented Reality: We have to make use of immersive learning and simulated learning to enhance and change vocational education and training. A new generation of organisational concepts and work skills is coming from fields such as game design, neuroscience and happiness psychology. These fields will drive the creation of new training paradigms and tools.

Workers in the future will need to be adaptable, lifelong learners!

Furthermore, it is of utmost importance to set up new learning methodologies and training content.

What does digital transformation imply at the level of enterprises and what should it bring to entrepreneurs?

- Digitisation is turning the business world upside down. It concerns all sectors and branches of the economy and all types of enterprises, whether they are big, medium-sized or small. No company can afford to let the trend of digitisation pass them by. Digitisation trends offer great potential and new business opportunities for entrepreneurs and their companies.

In order to help companies in Austria master their digital transformations and take advantage of opportunities, the Austrian Economic Chambers have adopted a proactive approach. For example, in cooperation with the Federal Ministry of Economic Affairs, we set up the digitisation programme SME DIGITAL, providing comprehensive support for these opportunities, specifically for small and medium-sized enterprises (SMEs).

How do Austrian investors in Serbia assess the investment climate; what kinds of trends have you observed?

- We know from our latest survey and our daily contacts with companies both in Austria and here in Serbia that their outlook for their future business in Serbia has improved markedly over the last few years. The business community has very warmly welcomed some recent legal and administrative reforms. But there is still room for improvement, especially when it comes to the rule of law and the transparency and length of procedures.

On a more general level, the firm commitment of the Serbian Government to follow the EU path, definitely reinforces trust and confidence in the future on the part of our business community. What we see presently is growing interest among small companies from Austria to find Serbian partners for joint projects or even to invest in the country. This trend is obviously driven, on the one hand, by the overall lack of highly qualified labour in most of Europe, but also by the pro-European stance of Serbian decision-makers. Let me also add another observation: much of this new interest is generated by members of the Serbian Community in Austria, whether they are successful business owners or professionals. By sharing their knowledge and experience through their personal channels, they play an important role in encouraging others to come and look into the opportunities that Serbia offers.

The business community has very warmly welcomed some recent legal and administrative reforms

Do you expect dual education to undergo certain changes in order to be able to change at the kind of pace required by the emergence of artificial intelligence and robotics?

- Digitalisation triggers a total change of job profiles and will require brand-new ones. The key factor for the success of dual vocational training is the mechanism to permanently update and develop occupations and curricula to meet the needs of the economy. In this respect, we are currently updating more than 200 occupational profiles, taking into consideration digitalisation. A good example is the “Coder”, a brand new apprenticeship, starting in Austria in September 2019.

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INTERVIEW

H.E. NIKOLAUS LUTTEROTTI, AUSTRIAN AMBASSADOR TO SERBIA

REFORMS

Will Pay Off

Austria has a genuine interest in supporting Serbia on its path to the European Union. Not only does this provide an incentive for the economic, societal and institutional reforms required by the EU accession process, but it also contributes to stability and prosperity in this part of Europe. We also genuinely believe, to paraphrase Chancellor Sebastian Kurz, that the European Union would be incomplete without the countries of the Western Balkans - Nikolaus Lutterotti

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he arrival in Belgrade of H.E. Nikolaus Lutterotti received special attention in the media due to the fact that he is one of the three close associates of Austrian Chancellor Sebastian Kurz, a foreign policy advisor, to have been directed towards diplomacy. In this interview for CorD Magazine, he says his task is to continue strengthening the existing excellent relations between the two countries.

Austria, which is currently presiding over the European Union, has placed the stability of Southeast Europe at the very top of its agenda, while it continues, like Bulgaria before it, to advocate in favour of enlargement. Ambassador Lutterotti says that he believes 2025 may be the year of the next enlargement of the Union, but that depends the most on whether the membership candidate counties fulfil their obligations.

Your Excellency, how do you feel as an ambassador at the start of your term in the country you’ve dubbed “Austria’s most important partner in the region”?

- I am very honoured to represent Austria in Serbia, a country with which we have excellent relations. For us, Serbia is a neighbouring country even though we do not share a common border. We are connected through many personal, economic,

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cultural and historic bonds. The Serbian diaspora in Austria is a very important part of our society and represents a very significant connection between Austria and Serbia. Austria has been one of the largest, if not the largest, investor in Serbia over a long period of time. And our political relations are as good as they have ever been. We have frequent visits at a high political level, which underscores the depth and importance of our relations. In October the Austrian Federal President, Alexander Van der Bellen, will pay an official two-day visit to Serbia at the invitation of President Vučić.

The Austrian press reported on your appointment, noting that you are one of three close associates of Chancellor Sebastian Kurz to have been appointed as ambassadors.

Do you have a special task in that sense?

- My task is to represent Austria in Serbia as well as I can and I hope that I will be able to contribute to strengthening our excellent relations even further. We consider developments in the countries of Southeast Europe, and in particular Serbia, and the EU accession process as a priority matter of our foreign policy. And these developments are also a priority during our Presidency of the European Union. We believe that this region

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deserves the highest political attention, given the proximity of our countries and the intensity of our political, economic, cultural and personal relations. And we also have a genuine interest in supporting Serbia on its path to the European Union. Not only does this provide – in our view – an incentive for economic, societal and institutional reforms, as required by the EU accession process, but also contributes to the stability and prosperity of this part of Europe. We also genuinely believe, to paraphrase Chancellor Sebastian Kurz, that the European Union would be incomplete without the countries of the Western Balkans.

Your country will preside over the EU until the end of 2018. Preserving the stability of Southeast Europe was placed at top of your list of priorities. What do you think the greatest challenges are in that respect?

- First of all, I would argue that if we look at the entire region, 2018 has been a good year so far. The EU has reinvigorated its focus on the region by setting out a clear strategy and reaffirming, on numerous occasions, its goal of enlarging the European Union. Both the Bulgarian and Austrian presidencies have placed this region and its EU perspective at the top of the EU agenda. But there are significant challenges that remain with regard to regional reconciliation, good neighbourly relations and internal reforms, in particular as far as the rule of law, the fight against organised crime and corruption and the freedom of the media are concerned. These need to be addressed and we offer our support. The Prespa Agreement between Greece and Macedonia over the name dispute has shown that, with the necessary political will, courage and determination, solutions can be found to seemingly intractable problems. We hope that the dialogue between Belgrade and Pristina can also advance significantly over coming weeks and months.

have great respect for all the efforts that are being exerted.

But we also believe that these reforms will pay off. We can see a positive trend in the economic development of Serbia after some very courageous and difficult reforms. The same will be true for reforms in the fields of the rule of law, judicial independence and the fight against corruption. The benefits of the EU accession process will be visible and will be felt by the citizens and businesses, as reforms aren’t only implemented and take effect on the day of EU accession.

Given that the EU is an area you know well, do you believe that members will reach a consensus on internal reforms, and how much could those changes cause a shift in the alliance that we now know as the European Union?

- I am certain that the EU will reach a consensus on internal reforms. The EU has managed very critical phases in the past and will also succeed this time. And I am sure the European Union will come out stronger than before. The Austrian presidency’s priorities are intended to strengthen the European Union by focusing on security, safeguarding Europe’s competitiveness and prosperity, as well as the stability of Southeast Europe. We are convinced that only through strengthening the European Union will we be able to maintain the level of prosperity, stability and respect for fundamental freedoms as we know them. In order for the EU to become stronger, it should focus again on the big challenges and leave it up to Member States to decide on those issues that are better dealt with at their level. This is what we call the principle of subsidiarity. It needs to be reinforced.

I am very honoured to represent Austria in Serbia, a country with which we have excellent relations.

For us, Serbia is a neighbouring country even though we do not share a common border

You’ve said you believed the European perspective of the region was the best way to ensure stability. Given the situation in the EU, but also in the region, do you still think – as you stated recently – that 2025 could mark the date of Serbia’s entry into the EU? - I believe that 2025 is possible, but there is no guarantee. It is mainly up to the candidate countries themselves to determine the pace of reforms and thus the pace of accession negotiations.

We know that this is a demanding and difficult process and we

Do you think Serbia’s EU membership depends exclusively on the outcome of dialogue between Belgrade and Pristina?

- The requirements for Serbia’s EU membership are very clear

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and imply that a successful conclusion of the 35 accession negotiation chapters needs to occur before accession. And the political leadership of Serbia has made it clear that it wants to undertake all the necessary reforms, because doing so is in the very interest of Serbia and its citizens. Chapter 35 deals with the normalisation of relations between Belgrade and Pristina. If both sides were to agree on a comprehensive and legally-binding agreement on the normalisation of relations, this

would certainly free up a lot of political energy for reforms in other sectors and for the negotiations of all open chapters.

One of the priorities of the Austrian presidency of the EU is the fight for security and against illegal migration. Why has Austria found itself on the side of countries that oppose the influx of migrants?

- The issue of security is one of Austria’s priorities during its EU Presidency. EU Heads of State and Government concluded at the meeting of the European Council in June 2018 that they are “determined to continue and reinforce this policy to prevent a return to the uncontrolled flows of 2015 and to further stem illegal migration on all existing and emerging routes”. As you can see, this is a policy shared by the European Union. As far as Austria is concerned, you have to bear in mind that Austria was one of the countries most affected by the migration crisis of 2015 in per capita terms. We had more migrants in Austria than most other countries in Europe. It became clear to citizens that the European Union was not in control of its external borders and the influx of irregular migrants, and that something had to be done. But I want to emphasise that Austria has given shelter to many illegal migrants and Austria is also taking on people through resettlement programmes.

The solution that Austria and Italy found is certainly a very positive example of dealing with such a sensitive bilateral issue involving minorities. But I also want to emphasise that every situation is unique

You once worked in the Department for South Tyrol at the Austrian Ministry of Foreign Affairs. The way Austria and Italy resolved the issue of this controversial border area – by giving it broad autonomy and “asymmetrical status” in relation to other regions of Italy – has been cited as a possible solution for Kosovo. Why couldn’t this model be applied?

- The solution that Austria and Italy found is certainly a very positive example of dealing with such a sensitive bilateral issue involving minorities. But I also want to emphasise that every situation is unique. I have trust in both sides – Belgrade and Pristina – to continue engaging in a constructive dialogue in order to find a sustainable solution.

There are voices on the Austrian political scene suggesting that it was a mistake to support Kosovo’s unilateral proclamation of independence. Do you believe a solution for Kosovo must be such that it respects the views of both sides?

- The European Union has been clear: both sides need to agree on a comprehensive, legally-binding agreement on the normalisation of relations so that they can advance on

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their respective European paths. This requires that both sides need to find an agreement. The EU is facilitating this dialogue and Austria supports it.

Could you please explain Chancellor Kurz’s idea to establish migrant campsites beyond the territory of the EU? Where would they be located?

- At the June 2018 meeting of the European Council, the focus shifted from a debate about the distribution of migrants in Europe towards fighting illegal migration and the business model of people smugglers, as such. In this regard, we support the proposal of the European Commission to strengthen FRONTEX to a force of 10,000 people by 2020 and to explore cooperation with third countries in the fight against people traffickers. The EU, for example, is supporting the training of the Libyan Coast Guard. And we are exploring further cooperation with other countries in North Africa in the field of economic development and the fight against illegal migration. This will also be a topic of discussion at the 2019 Summit meeting between the EU and the League of Arab States in Egypt.

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INTERVIEW

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA, CCIS

We Have Excellent Cooperation

THAT'S MUTUALLY BENEFICIAL It is in the greatest interest of the Serbian economy for Austrian companies to continue investing in Serbia, for us to attract as much investment as possible in the production- and export-orientated export sectors and high-tech investments, such as Zumtobel in Niš

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ast year, according to official Serbian statistics, Serbia and Austria set a new record in the volume of their bilateral trade exchange totalling 997.8 million euros, while positive developments so far in 2018 indicate that we will end the year with a total exceeding a billion euros. It is true that, according to Austrian statistics, which have certain methodological differences, mutual trade between the two countries exceeded a billion euros by 2016 and reached a total of 1.164 billion euros in 2017.

“It is far more important than a hundred million euros recorded here or there in statistical reports that there is an evident growth trend in the exchange that both Austrian and Serbian statistics have recorded recent years,” says Marko Čadež, president of the Chamber of Commerce & Industry of Serbia (CCIS).

Trade between Austria and Serbia has doubled since 2006, while Serbian exports, as well as its imports from Austria, reached their maximum value in 2017. The total exchange last year was up by 15.1% compared to 2016, while Serbia’s export to the Austrian market grew by 18.5 per cent - to 401.9 million euros - and imports from Austria were up 14.7 per cent - totalling 596 million euros.

However, the ratio of exports’ coverage of imports is still relatively unfavourable on our side?

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- Although the Austrian market is among Serbia’s top 15 export destinations, and although Serbian exports have increased 2.6-fold in the past ten years, along with an improvement in the structure favouring products with a higher degree of processing, the growing trade exchange between the two countries is burdened by the commodity deficit on our side - 194 million euros in 2017 and 73.9 million euros in the first half of this year.

However, the coverage of imports by exports has increased significantly in recent years – up from 58.6% in 2013 to 74.4% in the first half of this year, which has been contributed to by investments and exports of Austrian and other foreign investors. For example, sales on the Austrian market of all major export products from Serbia increased last year. Among them, for example, are jumper cable sets, iron and steel products, parts for electric motors, generators, composites and motor vehicles, washing and cleaning products, frozen fruit and fruit juices, televisions and, of course, Austrian glass products from Swarovski, which is the largest exporter from Serbia to Austria.

Some important import items, such as medicines, can’t be substituted easily, but there are those for which we can increase exports significantly in the period ahead, such as furniture industry products and paper.

Unlike in the goods exchange, where we record a deficit, we actually have a surplus in the trade in agricultural food products and in the exchange of services with Austria.

How successful are domestic companies in establishing production links with Austrian partners?

- It is in the greatest interest of the Serbian economy for Austrian companies to continue investing in Serbia, for us to attract as much

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investment as possible in the production- and export-orientated export sectors and high-tech investments, such as Zumtobel in Niš.

It is important for our companies to connect with large Austrian companies and join their production and supply chains. At the same time, improved conditions for doing business in Serbia also encourage Austrian SMEs to invest here, to create joint companies or establish production cooperation with our firms in order to export to the Austrian market and third markets with which Serbia has free trade agreements.

We are working on the realising of ever more examples of good cooperation with Austrian partners like those already established in the mechanical and leather industries and in the telecommunication sector, as well as on production connections in the fields of the electrical, wood and paper industries, where significant opportunities for this exist.

- The aim of everything we’re doing for the economy – from advocating for entrepreneurs’ initiatives to improve the regulatory framework, via connecting with partners from abroad, providing analytical and other useful services, all the way to digitisation, education and the introducing of dual education – is to help our members in their everyday operations, in strengthening their capacity to grow and develop, in order for them to be more competitive and more productive, to produce and export more.

Serbian companies are already enjoying the benefits of the new method of organising and the functioning of the unique chamber system based on the Austrian model and the great support we had during past years in the process of modernisation from the Austrian Chamber and its former President Christof Leitl.

The strategic partnership between the chambers of Austria and Serbia aimed at strengthening the CCIS’s capacity to support companies is continuing. In the period ahead, as agreed with the new President of the Austrian Federal Economic Chamber, Harald Mahrer, the Austrian Chamber will specifically support activities

We will continue to work with Harald Mahrer, the new president of the Austrian Federal Economic Chamber, on the establishment of dual education and the digital transformation of the economy of Serbia, but also the entire region

How much can strategic cooperation between the Austrian Federal Economic Chamber and the CCIS help in further strengthening the competitiveness of companies?

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aimed at establishing dual education and carrying out the digital transformation of the economy of Serbia, but also the entire region.

The project of the two chambers, which is funded by the Austrian Development Agency, envisages assistance from Austrian colleagues in creating the bylaws and internal chamber acts necessary to fully establish the dual education system in Serbia, as well as strengthening the capacity of the CCIS to implement legal solutions. The Austrian Chamber also supports the introduction of new dual education profiles and the establishment of a web platform with all information on dual education, enabling our students to acquire knowledge and practical skills and then gain employment at Austrian companies operating in Serbia.

Based on the example of Austria’s WIFI system, the CCIS has established its own Business Academy, one of the development directions, of which will also be online training.

When will the web platform with a unique and complete database on dual education start to function?

- The Serbian Law on Dual Education, which is actually the first of its kind in the region, will be applied as of September 2019 and the web platform should be established by then. The CCIS will have a significant role in implementing legal solutions through support to the economy in creating or updating education profiles, training instructors to work with students in enterprises and establishing cooperation between companies with schools until the introduction of appropriate registers (public register of companies that have fulfilled conditions for performing work-based teaching; register of all contracts concluded between schools and companies, and a register of licensed instructors) and the establishment and administration of the web platform.

The web platform will greatly ease the implementation of procedures and obligations of participants in dual education, because all information intended for companies, schools, pupils and their parents will be available in one place. Via the web platform, students and parents will be able to inform themselves about dual educational profiles and the schools in which they are taught, to search the database of companies that offer places for learning

through work, as well as acquainting themselves with the way students are deployed in companies. At the same time, companies will be able to receive information on how to engage in dual education and what their obligations are, while those companies that already participate in teaching pupils under the dual education model will be able to use this platform for the simpler electronic performing of administrative procedures.

Thanks to the support of the German Organisation for International Cooperation and the Austrian Federal Economic Chamber, during October more than 20 certified consultants will start working with Serbian companies on the creation of their digital transformation strategies

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What share of Serbian companies use advanced digital technologies?

- Unfortunately, a large percentage of companies in our entire region, particularly small and medium-sized firms, lag behind when it comes to utilising the benefits of digital technologies. The low level of digitisation was also shown by research conducted by the CCIS among its members for the purpose of creating support programmes for SMEs in the digital transformation process.

The situation is somewhat better in service activities, while digitisation has advanced the least in agriculture. About a third of the 340 surveyed SMEs have no initiative whatsoever when it comes to digitising their business processes, while more than half of them are not planning digitisation projects.

How will the CCIS Digital Transformation Centre help the economy?

- The Centre for Digital Transformation will particularly assist SMEs by informing, advising and educating, proposing transformation and financing models, supporting the implementation of digital solutions, connecting them with those who possess knowledge, technology, instruments and funds, helping them to digitally transform their companies and businesses as quickly and efficiently as possible.

Thanks to the support of the German Organisation for International Cooperation and the Austrian Federal Economic Chamber, more than 20 certified consultants will start working with Serbian companies during October on the creation of their digital maps and digital transformation strategies. The plan is for 40 of our SMEs to receive their “digital signposts� by the end of this year, and the possibility to secure, via our Centre, co-financing for the introduction of the technological solutions envisaged by their strategy.

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DEJAN TURK, CEO OF VIP MOBILE AND A1 SLOVENIJA

CORPORATE

Support For Society's DIGITAL TRANSFORMATION We believe in the potential of this market, and our greatest contribution to Serbia's technological advancement is in encouraging digitalisation

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erbia’s telecommunications market has gone through a transformation this year. Speaking to CorD about how company Vip mobile responds to the ever-increasing challenges facing the telecommunications market is Dejan Turk, CEO of both Vip mobile and A1 Slovenija.

The dynamism of the telecommunications market is constant regardless of local circumstances and the restructuring of the market in Serbia. Such a situation only further encourages us to act proactively and be the first to introduce innovations, and this is something for which we’ve been recognisable since our arrival on the market 11 years ago. This business policy of ours has resulted in appropriate offers for users, such as the first tariffs providing unlimited communication with all networks in Serbia. As such, we are recording sustainable growth in all business segments and in terms of user numbers and market share. For example, we recently welcomed our millionth private postpaid mobile user and we are the operator with the largest share of postpaid users in our base – explains Vip mobile and A1 Slovenija CEO.

working on the development of Narrowband Internet of Things technologies, and through the Vip IoT Challenge project we’re supporting teams that offer the best solutions for the digital transformation of society.

To what extent will the announced rescinding of roaming charges and new free technological possibilities for communication in the region impact on Vip’s operations?

Which technological innovations do you consider as being the - This year we’ve been able to hear from high representatives most important for the further growth of Vip and the Serbiof Western Balkan countries and the European Union that the an telecommunications sector and mobile telephone market? elimination of roaming charges is a goal, but it has also been - We believe in the potential of this market, and our greatest clearly emphasised that the first step is to reduce roaming costs. contribution to Serbia’s technological advancement is in encourThis implies that it is essential for reductions in charges at the aging digitalisation. We are recognised as retail level to be accompanied by adequate With 995 million euros invested costs at the wholesale level. All of this is a company that’s taking serious steps in this domain, particularly by investing in and to date, Vip mobile represents the important in terms of predictability when it developing appropriate infrastructure and largest greenfield investment in comes to the work of operators who invest the 4G network, and by educating users and significant resources in the construction introducing digital services. We primarily Serbia. The company currently has and advancement of mobile networks. The see an opportunity for further growth in more than 2.2 million users and a rescinding of roaming tariffs is a two-way the development of digital services and market share of over 24%, while in process in which it is essential to involve services intended for private users and all market participants. the first nine months of this year As one of the steps preceding the changthe economy. That’s why we are today offering solutions such as the smart home ing of this regulation, we have this year it registered total revenues system of Vip Čuvarkuća (House guard), offered our users a certain amount of free of 182 million euros, marking the safe Internet application Dečjazona internet traffic whilst in roaming, thereby a 11 per cent increase over the (kidszone) and Auto Manager for corporate responding to their communication needs vehicle fleet control. We are simultaneously wherever they find themselves. same period last year

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INTERVIEW

ERIKA TEOMAN-BRENNER, AUSTRIAN COMMERCIAL COUNSELLOR

MANY OPPORTUNITIES Ahead

The forthcoming visit of Austrian President Dr Alexander Van der Bellen and a high-level business delegation will offer a new opportunity for companies and institutions from our two countries to further forge their cooperation.

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ustria and Serbia enjoy excellent political relations, and Austria very much supports Serbia´s EU-accession. “This, of course, also reflects positively on commercial and economic relations between our two countries, as well as helping to build trust and confidence between institutions and individual citizens,” notes Erika Teoman-Brenner, Austrian Commercial Counsellor to Serbia, whom we spoke with ahead of the visit to Belgrade of Austrian President Alexander Van der Bellen, scheduled for October. “We are organising a highlevel business delegation and business forum around this visit, which will provide the companies and institutions of both countries with an excellent opportunity to meet and discuss topics of common interest,” says our interlocutor.

Whether the meeting will result in new business opportunities is dependent on many factors. “Companies base their investment decisions on very precise and

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defined factors that primarily include commercial and financial dimensions. In many cases, Serbia can match these criteria very well and, hence, attract new investments,” says Ms Teoman-Brenner.

As an expert on the Western Balkans, how do you assess the progress achieved through the initiative of the Berlin Process?

- The Berlin Process is certainly a very useful initiative to facilitate and strengthen regional cooperation among the six Western Balkan countries. Connecting transport and energy – the core issue of the Berlin Process – will definitely bring considerable benefits to the businesses and citizens of the region, but a four-year period is too short to assess the results fully. Given that the EU recently increased its financial commitment through the Western Balkans Investment Framework, one could expect the

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light as being the most positive outcomes of the reforms conducted? What do they perceive as challenges?

- They see an improvement in the quality of services in some areas of public administration, with the adoption of new laws. The general view is that the prospects of EU accession and the negotiation process represent an important factor for economic reform and consolidation of the rule of law. Shortcomings in the rule of law and excessive bureaucracy are definitely perceived

by Austrian and other foreign companies operating in Serbia as the most pressing issues.

How satisfied are you with the results of efforts to pair Austrian producers with Serbian partners? To what exLAWI – NOVI SAD AGRICULTURE FAIR, AUSTRIAN STAND tent are Serbian companies ready and able for inclusion in advanced value chains?

- We see a lot of very successful examrealisation of some key connectivity Shortcomings in the rule ples of cooperation between manufacprojects in the region soon. Another turers in Serbia and Austria, mainly of law and excessive very positive dimension of the Berlin the field of metal working. Serbian Process is the focus on youth and bureaucracy are definitely incompanies have a long tradition in education. Here we see some very perceived by Austrian and this sector and are experienced in promising initiatives and actions working with foreign clients. Actually, taken. Last, but by no means least, other foreign companies our office very often assists Austrian we consider the establishment of operating in Serbia as the companies in finding cooperation the Chamber Investment Forum of partners. Coming back to your questhe Western Balkans as one of the most pressing issues tion, this sector is probably one of the most tangible results of the Berlin most promising in Serbia, in terms of its growth and export Process. I can mention that this happened with the potential. There are some key factors to gaining a higher support of the Federal Economic Chamber in Vienna on value-added share in international production chains, like the occasion of the 2015 Vienna summit. This platform for regional cooperation among chambers has great potential to enhance trade among the companies of the region, increasing their competitiveness and, thus, improving the region’s business and investment climate.

Which reforms do you see as a must in order for Serbia to sustain the kind of robust GDP growth it has recorded to date?

- It is generally agreed that Serbia has achieved impressive results in fiscal consolidation that have created the kind of environment of financial and macroeconomic stability that’s needed to attract new investments. There is also a consensus, however, that major challenges still lie ahead, first of all in terms of structural reforms in the public sector, then completion of the privatisation process, reform of the tax administration and reduction of the grey economy.

What do Austrian investors operating in Serbia high-

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AUSTRIAN STAND AT THE 2018 BELGRADE TECHNICAL FAIR

innovation capability, productivity and financing. Any policy and action leading to an improvement in these conditions should be welcomed, in order to enhance Serbia’s international competitiveness in general and, in particular, for its SME sector’s ability to become part of international supply chains.

In order to encourage new companies from Austria to look into the Serbian market, we have started to offer introductory webinars with useful advice on how to start business activities here

How would you evaluate the success of the 2nd Austria Connect conference?

- First of all, we received very positive feedback from the participants, which is the most important measure of the success of any conference. They particularly valued the opportunity to network in a relaxed and informal way and to get to know “like-minded” people, i.e. business representatives who share an interest in the markets of Southeast Europe. On top of that, the presence of leading public figures from the region in presentations and discussions gave the participants access to first-hand information on upcoming trends and developments, as well the opportunity for personal interaction. To summarise, it was quite a lot of work to organise this event, but it was definitely worth it!

Is there a sufficient supply of high-quality labour in Serbia? How is dual education helping to change the picture?

- From what we hear, Serbia is still quite fortunate to have a sufficient supply of qualified labour, though companies are starting to feel a shortage in some sectors. That’s why we are glad that our counterparts in Serbia decided to introduce elements of dual education to the Serbian education system, as this will certainly contribute to

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VICE PRESIDENT OF THE AUSTRIAN FEDERAL CHAMBERS & DEJAN TURK, VIP MOBILE CEO, UNDER THE SCOPE OF THE DUAL EDUCATION PROJECT

improving the competitiveness of Serbia as a business location, while at the same time increasing youth employment. All experts agree that practical training in a company, combined with school-based training, is probably one of the most efficient instruments for meeting the needs of the labour market.

How might the Digital Agenda change the business environment, and how is this agenda being supported by Austria?

- Increasing efficiency, optimising processes and the right skills – these are the key challenges for SMEs in the Digital Single Market. The Federal Economic Chamber sees the digitalisation of SMEs as one its priorities, and it actively supports micro firms and small companies. Towards that end, a support programme for SMEs has been launched that includes financial incentives for expert consulting and training. The success of this programme is impressive, not least because it is very effective in tackling the real needs of smaller companies.

What major activities do you envisage for Advantage Austria until the end of 2018?

- In general, we will try to focus even more on highlighting the business opportunities in Serbia, which are a result of promising macro-economic indicators, while at the same time we will continue to provide our well-proven, hands-on and individualised services to our companies. An absolute highlight of this autumn is the official visit of our Federal President, Dr Alexander Van der Bellen, in October.

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JELENA KNEŽEVIĆ, CERTIFIED AUDITOR, MANAGING DIRECTOR, LEITNERLEITNER

CORPORATE

HIGH QUALITY SERVICES Are A Key Factor

In our business approach we use Austria as a best-practise example whenever possible in providing our services to clients, stresses Jelena Knežević, certified auditor and managing director at LeitnerLeitner, speaking for this CorD special edition

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eitnerLeitner is one of the leading tax advisory and auditing firms in Central and Eastern Europe, which is increasingly being recognised in Serbia due to our professionalism and high quality of services. Our experts are passionate about finding feasible solutions for clients’ tax, audit and financial advisory issues.

We strongly consider that the outstanding technical skills of our team and the high quality of LeitnerLeitner services are key success factors in Serbia. Whether you are an SME or an international group, we never lose sight of our goal, which is to identify, coordinate, and realise optimisation potentials.

On the basis of experience to date, in which areas would you say that you have had the most activities/requests for engagement?

- We have very diverse requests for engagements, ranging from ongoing accounting and tax compliance to more complex due diligence projects and tax and financial advisory services for greenfield investments. It is of crucial importance for us to listen to the needs of clients in order to provide tailor-made services. The market for consulting services is undergoing significant changes, requesting a faster response, the adoption of high-tech solutions and the provision of a wide range of services that require that we think outside the box.

a best-practise example whenever possible in providing our services to clients. We at LeitnerLeitner see the CEE and SEE regions as our home market and we know all the local tax ins and outs. We put interdisciplinary, cross-border cooperation into practise every day, as we work in close cooperation with all other LeitnerLeitner locations.

More work still needs to be done on the harmonisation of EU and Serbian legislation. What would you single out as being the most urgent tasks?

- Generally speaking, Serbia is on a positive course in terms of harmonisation with EU legislation. A lot of work has already been done in terms of tax laws, company law etc. The adoption of a new customs law is also expected in the period ahead. The Law on Anti-Money Laundry and the Financing ofTerrorism was recently adopted, improving the ground for combating suspicious transactions both in the country and across borders. It is also expected that the new law on Data Protection will be adopted in Serbia in accordance with GDPR, which is one of the most discussed topics in the EU recently. The adoption of a new Law on Accounting and Law on Audit, in order to harmonise Serbian legislation with the requirements of EU directives 2013/34/EU and 2014/95/EU, as well as Directive 2014/56/EU and Regulation 537/2014, is also projected in the coming period. However, what is perhaps more important now is the implementation of laws that have already been adopted, i.e. how their application will result in practise.

Moreover, one of the most urgent tasks is certainly reform of the Tax Administration. Significant work still needs to be done on capacity building of this important institution and the education of employees and what is most important in implementing unique and consistent procedures during tax audits, in accordance with the law.

Serbia is on a positive course in terms of harmonisation with EU legislation

Your home office is in Austria, but you cover the entire CEE Region. Do the needs of these countries differ?

- At first glance, the needs of these two markets differ considerably. Austria certainly represents a mature market, and is always listed as one of the most stable economies on relevant lists compiled by the World Economic Forum and the World Bank, while Serbia is constantly improving on such lists. Therefore, in our business approach we use Austria as

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INTERVIEW

JOHANNES IRSCHIK, DIRECTOR OF THE AUSTRIAN CULTURAL FORUM AND PRESIDENT OF EUNIC

WE SUPPORT

Serbia's European Dimension Our main mission is to promote contemporary Austrian art and culture, as well as to foster cultural and scientific exchange

- Cultural agendas and scientific and technological cooperation agreements establish an excellent basis for the development and expansion of cultural and scientific relations with other countries, and establish a framework within which cultural and scientific relations should receive particular attention in the future. Since 2015, the Austrian Cultural Forum has been able to expand the number of its projects and establish relationships with new partners. This was not only due to cultural agreements between Austria and Serbia, but also due to the particular focus that Austrian foreign cultural policy – and Austrian foreign policy as a whole – places on the countries of the Western Balkans.

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lmost 20 years after its establishment, the Austrian Cultural Forum in Serbia enjoys a wide network of local partners and we consider ourselves trustworthy, reliable counterparts and an integral part of the Serbian culture scene - says Johannes Irschik, Director of the Austrian Cultural Forum and President of EUNIC, with whom we discussed plans and new projects.

The cultural agenda for cooperation between Austria and Serbia until 2019 was signed in Belgrade in 2015. What has been done to date and what are the immediate priorities?

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Given that the policies of culture centres are closely connected to national cultural policies and policy in general, how do you see the role and importance of the Austrian Cultural Forum in Serbia?

- Our main mission is to promote contemporary Austrian art and culture, as well as to foster cultural and scientific exchange. In so doing, we place a great emphasis on partnerships with local culture actors. It is already known to our partners that our goal is not to merely showcase Austrian culture. We prefer to have a dialogue and aim at responding to the needs of local professionals and the Serbian public.

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RECA D.O.O. While planning projects, we thoroughly consult with potential local partners, try to find common ground and attempt to be flexible in order to find a way to direct our support to where it is most needed. Almost 20 years after its establishment, the Austrian Cultural Forum in Serbia enjoys a wide network of local partners and we consider ourselves trustworthy, reliable counterparts and an integral part of the Serbian culture scene. The European dimension, however, is also a very important part of our work. The local EUNIC cluster (European Union National Institutes for Culture), consisting of 16 European Union National Institutes for Culture and Embassies, is jointly carrying out several projects each year, such as our conference on the role of public libraries in the 21st century, which will take place at the National library of Serbia on 26th October.

CORPORATE

“Step Into The Future”

Austrian culture has had an influence on the countries of this region, including Serbia, for many centuries. To what extent do you recognise Austria’s cultural heritage in Serbia?

- Austrian cultural heritage is especially visible in Vojvo-

This year we are placing a special emphasis on presenting music from Austria to the Serbian public, be that classical music, jazz or electronic music, thus presenting Austrian cultural heritage from the past, as well as cultural heritage that’s in the making dina, where it can be seen not only in architecture, but also in the cuisine, language and customs. However, influences of Austrian architecture and the arts can also be found in other parts of Serbia. “Where the past meets the future” is the motto of the European Year of Cultural Heritage that we are commemorating this year. Cultural heritage should thus not only be seen as a thing of the past, but as something that’s created in the moment. This year we are therefore placing a special emphasis on presenting music from Austria to the Serbian public, be that classical music, jazz or electronic music, thereby presenting Austrian cultural heritage from the past as well as cultural heritage that’s in the making.

Has the function of culture centres gained a new role due to new communication technologies?

- New communication technologies have definitely changed the way we communicate with our audience and how we address them. These technologies have added an important boost to our visibility and helped to pro-

RECA celebrated 15 years of doing business in Serbia last September. Its rich array of products includes tools, fixing products, standardised parts, technical chemical products and occupational health and safety products. At May’s Belgrade Technical Fair, alongside its products, RECA also presented solutions for trades and industry.

The solution attracting the most interest of visitors was RECA iSTORAGE, which provides fully automated storage for various auxiliary materials and the flow of goods with access control. The system is modular and adaptable.

In accordance with the slogan of the fair, “Step into the Future”, visitors to the RECA stand could acquaint themselves with the latest systems for Industry 4.0. Primarily a solution for the supply and management of C - parts of the RECA CPS, it significantly simplifies the procurement process and reduces total operational costs. Also on show was the optimal solution for the serial production of the RECA KANBAN, as well as the possibilities of the new RECA RFID technology, which can satisfy the most diverse requirements of contemporary industry.

The RECA SECO system has been developed to cater for small and medium-sized systems. Additional interest was provided by the presentation of the possibilities of creating and delivering special prefabricated assembly kits, as well as the RECA EDI information tool for direct connection with the ERP system.

Visit us at our modern showroom.

RECA d.o.o.

Pančevački put 36/V, 11210 Belgrade, Serbia Tel: +381 (11) 271 31 35; E-mail: reca@reca.rs www.reca.rs

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Under the slogan “Look to the past, create the future!�, the 4th Creative Europe Forum was held in Belgrade this June and focused on the process of examining the new perspectives of relations between the EU and the Western Balkans in the field of culture. How would you assess the results of this event?

- The Creative Europe Forum 2018 was organised by the Creative Europe Desk Serbia, in cooperation with the EmForeign culture centres have an important shared role – bassy of the Republic of Bulgaria, the Delegation of the EU in Serbia, EUNIC Global and the State Institute for Culture of Bulgaria. In lgith of the then Bulgarian Presidency of the Council of the European Union, one part of the programme was dedicated to the question of international cultural relations and cooperation between the Western Balkans and the European Union. The event brought together local and international stakeholders and decision-makers in culture, representatives of the European Commission and the European External Action Service, representatives of the Serbian EUNIC cluster, as well as colleagues from EUNIC Global.

The event gave culture stakeholders from the region the possibility to meet representatives of the Euto convey and affirm their own culturropean Union and receive first-hand The local EUNIC cluster information about funding possibilal values. What is the interest of the (European Union National ities and future programmes. They Austrian Cultural Forum in Serbia?

- As already mentioned, one major were also able to engage in discusInstitutes for Culture), task of the Austrian Cultural Forum sion about what is important for culconsisting of 16 European is to promote Austrian contemporary ture stakeholders in the Western BalUnion National Institutes art and culture, as well as to initiate kans and how this could and should and foster sustainable contacts befor Culture and Embassies, be reflected in future European Untween artists from Austria and Serion policies and funding programmes. jointly carries out several Moreover, the event also gave stakebia. Our goal is not to invite artists or scientists to play a concert or give a projects each year, such as holders in culture from the countries lecture and then return to Austria, the Western Balkans the possibilthe conference on the role of but to engage in a dialogue with their ity to meet and exchange experiencof public libraries in the 21st es. The Forum has shown that there Serbian counterparts. In the field of music, we encourage Austrian musia need for, and an interest in, this century that will take place iskind of cross-border exchange and cians not only to give concerts, but at the National library cooperation. also master-classes for students.

We are also supporting several artisof Serbia on 26th October You pay great attention to young peotic residence programmes in Serbia, enabling Austrian artists to stay for a longer period in orple and students. You have a very diverse offer when it comes to hiring contests and scholarship opportunities der to truly get to know the country and its people, and in in Austria. What is the interest in these opportunities order to be able to establish contacts that will hopefully like among young people in Serbia? result in lasting projects. This is the kind of sustainabili- Neither the Austrian Embassy nor the Austrian Culty we want to achieve. mote our programmes among a significantly wider audience. We are very active on Facebook, where we have more than 10,000 organic followers. Close contacts with the local media, however, remain an important part of our job, be that by giving interviews or by organising joint press conferences together with our partners to announce joint projects.

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tural Forum organises hiring contests or offers scholarships. All available scholarship opportunities for students can be found on the website www.grants.at. Concerning exchange programmes for artists, there are several Artist-in-Residence programmes available for culture workers from Serbia. The Austrian Ministry of Europe, Integration and Foreign Affairs offers several programmes for young (and not so young) cultural professionals, such as the Q21 Residence programme dedicated to artists from Central, Eastern and Southeast Europe who are non-residents of Austria. It aims to give them the opportunity to live and work in Vienna, and to establish contacts on the local culture scene. The Austrian chancellery and KulturKontakt Austria have established an Artist-in-Residence Programme, as have several cities in Austria. I would also like to mention the crossborder network TRADUKI, which supports the translation of books from German into Southeast-European Languages and vice versa. It places a special focus on support for translators, whose work as important mediators in culture is sometimes not adequately appreciated. All calls for these programmes are posted on our Facebook page. I therefore strongly advise your read-

ers to follow us on Facebook – there is plenty of interesting and useful information to find!

If we were to go back in time a couple of centuries, we would find that Austria was an important haven of the Serbian intelligentsia. Who are things today on this front?

- Diplomatic relations between the Austro-Hungarian Empire and Serbia began as early as the mid-19th century, with the opening of a consulate in Belgrade that facilitated the movement of Serbs to Austria and vice versa. In the 19th century, a lot of Serbian intellectuals, scientists and artists were studying and working in Vienna and Graz (e.g. Vuk Stefanović Karadžić, Jovan Cvijić, Paja Jovanović), in a tradition that carried on through the 20th century (e.g. Milo Dor, Bogdan Bogdanović) and continues to this day. Many students from Serbia are currently studying at various Austrian universities and academies of art – especially in the fields of classical music, jazz and visual arts. Some of them remain after completing their studies, establishing an important link between Austria and Serbia, and contributing immensely to the cultural legacy of both countries. We regularly support Austrian citizens of Serbian origin and Serbian artists and experts living and working in Austria, most recently Dejan Kaluđerović.

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EDUCATION

MULTIPLE LEVELS OF EDUCATION FOR CITIZENS

SECOND CHANCE Education

Catching up on educational qualifications from basic education to Lower Secondary education up to continuing higher/tertiary education

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ducation is always essential regarding the success of the social and economic future of a country, and education in Austria is no exception. Austria has a free and public school system, and nine years of education are mandatory throughout the nation from the ages of six to fifteen, or first to ninth grade.

In Austria, there are multiple levels of education for citizens of all ages.

When it comes to children ranging from the ages of zero to six, these students are taken care of in nurseries called Kinderkrippen. Kindergarteners range from the ages of three to six years old, and very young children that are usually around the age of two are looked after in small groups by day parents called Tagesmütter, and are found mostly in smaller towns and rural areas.

In addition to obtaining a basic education, second chance

education comprises the opportunity to catch up on educational qualifications. The following qualifications can be caught up: Lower secondary school completion certificate, Pre-vocational School qualification, Apprenticeship Qualification, Higher Education Entrance examination issued by an Academic Secondary School (AHS) or College for Higher Vocational Education (BHS) taken by means of examination for external students, Academic secondary schools for working adults or Add-on Courses, Career Advancement Examinations for Civil Servants (the “B-Matura”), the Limited Higher Education Entrance Examination and the General Higher Education Entrance Examination for leavers of the apprenticeship training and VET schools.

Though educational qualifications provide no guarantee of social security and professional advancement, they do

In addition to obtaining a basic education, second chance education comprises the opportunity to catch up on educational qualifications

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however increase one’s chances in the labour market, reduce the risk of unemployment and enhance the holder’s personal development as well as access to further education. In the case of Second Chance Education, significant emphasis is placed on informing interested parties as to the types of subsidy that are available, as the participation in Continuing Education amongst adults is heavily dependent upon the financial resources and the amount of time available.

For students catching up on qualifications taken upon completion of compulsory school education appropriate for adults, examinations must be taken in six areas of competency.

These examinations consist of four compulsory subjects (German, English, Mathematics and Careers Orientation) as well as two elective subjects (four elective subjects can be selected from: “Creativity and Design”, “Health and Social Care”, “Nature and Technology” plus an additional language). All examinations, with the exception of one, can take place at adult education institutions that have obtained authorisation to conduct examinations. A type of examination taken as an external student to obtain qualifications from a New Secondary School or a Lower Secondary School is also available. Preparation by following a course is not compulsory for all examinations taken as an external student and can even be carried out by means of independent study. If this is the case, the examination is taken at a school and not at an adult education institution. Catching up on qualifications taken on completion of compulsory school education enables those who successfully complete the programme to access School for Intermediate Vocational Education , Upper Level Academic Secondary Schools (AHS) and Upper Level College for Higher Vocational Education (BHS), Higher Technical College (HTL), Commercial College (HAK), etc.

courses offered by the schools or via distance learning. In addition, a range of Continuing Education is offered at universities, private universities, University Colleges for Teacher Training and Universities of Applied Sciences. University of Applied Sciences-Study programmes (Fachhochschul-Studiengänge) are also available for employees.

HIGHER EDUCATION The Higher Education Entrance Examination for external students provides an additional option to gain access to the Higher Educational Entrance Qualification via Second Chance Education. By successfully completing the examinations taken as external students, graduates are awarded the same entitlement to study and other entitlements similar to those who

obtain a Reifeprüfung (Higher Education Entrance Examination) certificate of the same type of Upper Level Academic Secondary School by attending a school.

The requirement for admission in this case is successful completion of the eight years of education and an application for admission, which is to be submitted to the relevant Regional Education Board. The examination requirements are dependent upon the type of school selected during admission. In order to prepare for Higher Education Entrance Examinations taken as an external student, participants are offered courses in adult education institutions, for example adult education centres and various private schools.

The actual type of education that is available to an individual will depend on the qualifications he/she obtained while attending Second Chance Education. Whilst individual qualifications (such as compulsory school education and the Reifeprüfung - Higher Education Entrance Examination) can be used to access any form of further education, other qualifications (such as the Limited Higher Education Entrance Examination) only prepare students for a restricted or specific type of further education. Continuing Education courses in the context of Adult Education are, in any case, available, irrespective of the educational qualifications an individual has.

Though educational qualifications provide no guarantee of social security and professional advancement, they do however increase one’s chances in the labour market

SCHOOLS FOR ADULTS Persons who have already entered the labour market or have completed a course of technical or vocational education, may obtain appropriate educational qualifications by attending courses that take place during the evening. Medium Level and Upper Level Secondary General, Technical and Vocational Schools for Adults, Add-on Courses (Aufbaulehrgänge), Postsecondary VET Courses and Academies are available. In Evening Academic Secondary Schools, i.e. state public schools, people under employment are given the opportunity to take the Reifeprüfung (Higher Education Entrance Examination) in Second Chance Education. Preparation for this can either take place via

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DIGITISATION

AUSTRIA’S PATH

To The Digital Future T

History has shown that technological change can be a powerful force for positive change processes in society.

New technologies have always presented people with challenges, but have also expanded their possibilities, made their lives easier and made progress possible

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he Neolithic and industrial revolutions were the results of economic and social change made possible by technology, just as the invention of printing allowed science and world views to advance.

Digitisation is part of everyday life. Digital infrastructures, products and services are changing business, science, society and politics. The technological changes associated with digitisation currently include the use of information and communication technology in the manufacturing sector (Industry 4.0), the use of big data and artificial intelligence (AI), and the Internet of Things applications that are entering our everyday lives. Digitisation is also changing the way in which we communicate, our social relationships, opportunities for us to participate and our working environment.

Digitisation is not a development that we only will have to face in the future. It is neither a technological niche issue nor a business issue that is solely relevant to major corporations. It is already part of our everyday lives. It affects us all, e.g. with 92%

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of Austrian mobile phone users owning a smartphone, 6% more than in 2015. This means that almost everyone is constantly carrying a key to the digital world.

NEW OPPORTUNITIES The potential of digitisation is enormous and wide-ranging: it can open up new opportunities for growth, work and prosperity, improve health care, be a driving force behind the turnaround in energy policy, facilitate equal opportunities and social participation, support government transparency and help to enhance our democracy.

NEW CHALLENGES At the same time, the digital revolution is confronting us with new challenges: the fear of constant monitoring and restrictions to our freedom are issues that must concern us just as much as protection from cybercrime and the ethics of artificial intelligence.

One intensively debated topic is the fear that digitisation is replacing human labour on a massive scale. This fear has always accompanied any kind of technological change. It is clear that technological developments are changing work processes and the work itself. First, activities are being replaced; second, new areas of activity that do not currently exist will constantly emerge. Modern working conditions, social security and focused training measures for employees are important factors for leveraging the potential of digitisation for new high-quality jobs.

innovation is one of the most important insurance policies for the future of Europe and of Austria. The ambitious goal of the Austrian Federal Government to make our country an innovation leader in Europe is becoming increasingly important in light of digitisation.

Digitisation offers key technologies for the development of economic and social innovations. Only as a competitive innovation leader can Austria maintain and develop its economic and social model and ensure equal opportunities and social security through innovative and efficient enterprises and high-quality jobs.

THE FOUNDATIONS OF DIGITISATION When shaping digitisation in a positive way, key political tasks include the issues of data protection and cybersecurity, a modern legal framework for new business models, and the fair structuring of working conditions. Three areas form the essential foundation for successful digitisation: develop an education system that prepares students for digital opportunities, provide a first-class digital infrastructure, and develop research and innovation policies that specifically promote Austria’s strengths.

Digitization does not just mean having access to new technologies, but participating in the opportunities offered by a modern society. Digital applications are having an ever increasing impact on knowledge, the world of work and freedom

DIGITAL PARTICIPATION Digitisation does not just mean having access to new technologies, but participating in the opportunities offered by a modern society. Digital applications are having an ever increasing impact on knowledge, the world of work and freedom.

Everyone in Austria should be able to benefit from the opportunities of the digital world, regardless of origin, gender, age or social class. By ensuring that everyone can participate from a very early age, digital poverty can be prevented and a significant contribution made to combating poverty in future.

DIGITISATION NEEDS TO BE SHAPED Digitisation does not happen automatically. It is not a development that can only be marvelled at or simply awaited. To enable us to take advantage of the positive effects of digitisation and avoid critical effects of this transformation process, appropriate political goals and priorities need to be set. Digitisation needs to be shaped proactively in the interests and for the benefit of everyone. An obstructive approach or defensive behaviour towards digital change would only keep us on the international sidelines. The future cannot be stopped.

MORE INNOVATION THROUGH DIGITISATION Digitisation plays a major role in the development of our innovative strength. In the face of international competition,

DIGITAL OPPORTUNITIES THROUGH EDUCATION Digitisation requires our education system to evolve rapidly. Routine tasks become less important in the modern working world, while the scope of the work becomes more complex. There is a growing need for specialists in the digital economy, while participating in society also requires digital skills. The education system needs to take account of these requirements at all levels. Using digital tools in the education system must become standard practice.

Digital media literacy is becoming an integral part of basic education. Retraining people who are already in employment ensures their employability. Innovations in education must be accelerated and quickly incorporated into the regulatory system on a wide scale.

DIGITAL INFRASTRUCTURE The digital infrastructure is the nervous system of Austria as a digital nation. In order to make Austria’s digitisation a success, an efficient nationwide infrastructure is needed. The development and deployment of digital applications, products, services and forms of work is dependent on powerful broadband Internet connections. Moreover, when it comes to securing livelihoods and providing for the future in order to increase social participation and equal opportunities, the digital infrastructure is an essential tool for the future development of Austria. With its target of increasing nationwide broadband speeds to at least 100 Mbit/s by 2020 and playing a leading role in 5G development, Austria is taking an important step to safeguard its position and ensure that it continues to have a society worth living in.

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SCIENCE AND RESEARCH

Last Year €11.3 Billion Was

SPENT ON RESEARCH AND EXPERIMENTAL DEVELOPMENT

The Austrian Government considers research, technology and innovation (RTI) as the driving forces for a sustainable increase in the performance and competitive potential of a society. Research carried out in Austria’s universities, research centers, in small and medium-sized enterprises (SMEs), and in industry makes an important contribution to solving social challenges while ensuring competitiveness, economic growth and jobs

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hree federal ministries are responsible for the Austrian research and technology policy: the Ministry of Science and Research (BMFW), the Ministry for Transport, Innovation and Technology (BMVIT), and the Ministry of Economy, Family and Youth (BMWFJ). The Austrian Science Fund (FWF), the Austrian Research Promotion Agency (FFG) and the “Austria Wirtschaftsservice” (AWS) are the main agencies that manage the funding for basic and applied research, development and innovation on behalf of the ministries.

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TRENDS IN R&D SPENDING IN AUSTRIA The number of personnel engaged with R&D which was covered in the framework of STATISTICS AUSTRIA’s surveys on research and experimental development (R&D) in all economic sectors was 71,395.9 full-time equivalents (FTEs) in 2015. In comparison with the reference period 2013, this represents an increase of the number of R&D personnel by 7.9%. In 2015, 70.8% of total R&D personnel were occupied in the business enterprise sector, 24.8% in the higher education sector, 3.7% in the government

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tutions will amount to about €122 million. 15.4% (€1.7 sector and 0.7% in the private non-profit sector. billion) will be financed from abroad and 0.4% (approx.

In 2015, altogether €10.50 bn were spent on R&D €51 million) by the private non-profit sector. The funds in Austria in all sectors of performance. Hence, R&D from abroad originate predominantly from foreign enexpenditures increased by 9.7%, compared with the terprises. A considerable part comes from multinational reference year 2013. Of the approximately €10.50 bn enterprises whose affiliates in Austria perform R&D spent on R&D in 2015, 71.4% were spent in the business and includes receipts from EU research programmes. enterprise sector, 23.5% in the higher education sector, The European Commission has launched its (Research 4.6% in the government sector, and 0.5% in the private and) Innovation Union Scoreboard (IUS) in 2011. The report non-profit sector. assembles 25 single indicators that combine research In Austria, presumably €11.3 billion will be spent on and innovation. Under the new scoreboard, Austria research and experimental development (R&D) in 2017. is in 7 th position EU-wide, among In comparison to 2016, the total sum of Austrian R&D expenditure will the innovation followers. Austria’s Under the new scoreboard, increase by 3.8% and hence reach Federal Government has set the goal Austria is in 7th position 3.14% of the gross domestic product of increasing the country’s research (GDP). ratio to 3,76% by 2020, which shall EU-wide, among the The largest part of total R&D promote Austria into the league of innovation followers. expenditure 2017 will be financed by “innovation leaders”, thus making Austrian businesses (approx. 48.2% Austria’s Federal Government Austria one of the most innovative or €5.5 billion). The public sector will countries in the European Union. has set the goal of contribute 36% (approx. €4.1 billion); The full IUS is available for downincreasing the country’s of this share, the federal government load at the European Commission’s (“Bund”) will finance around €3.4 research ratio to 3,76% by Website. Further information on billion, the regional governments research in Austria is available for 2020, which shall promote download at the Website of the (“Laender”) around €515 million and other public funding such as from Austrian Agency for International Austria into the league of local governments, professional Cooperation in Education and Re“innovation leaders” chambers or social security instisearch (OEAD).

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CULTURE

BURGTHEATER – 130 YEARS FROM NEW THEATRE BUILDING

Barely another theatre in the entire world enjoys such an outstanding reputation as Vienna's Burgtheater.

This is due not only to the magnificent building on the Vienna Ringstrasse which is its home, but above all to a 250-year-old dramatic tradition, regarded by the theatrical community as the measure of all things

INTERIOR, BURGTHEATER

THE PLACE OF

Turbulence, Hope And Art

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ne of the most significant buildings on the Ringstraße of Vienna is the Burgtheather, Austria’s national theatre. It faces the line of the Houses of Parliament, the Rathaus (town hall) and the university main buildings and is surrounded by some of Vienna’s most famous coffee houses. The theatre, colloquially known as the “Burg” (“castle”), is one of the most important theatres of Europe and - after the Comedie-Francaise - considered to be the second-oldest.

On 14th March 1741, the theatre manager Joseph Selliers was authorised by Empress Maria Theresia to let a vacant banqueting hall next to the Hofburg palace to theatrical companies. In 1776 the Teutsches Nationaltheater, as it was then called, was placed under court administration

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by royal decree by Maria Theresia’s son Joseph II. This marked the beginning of the heyday of German-language theatre in Vienna. In 1794, the theatre was renamed K.K. Hoftheater nächst der Burg. After 130 years of operation, the company’s new theatre building, designed by Gottfried Semper und Karl Hasenauer, opened its doors on the Ringstraße boulevard on 14th October 1888, after fourteen years of construction.

The Burgtheater was the last link in the chain of sumptuous structures built around the Ringstraße, and its magnificent façade has made it one of Vienna’s popular tourist attractions.

In September 1922, the Akademietheater on Lisztstraße was affiliated as an additional stage. During the

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BURGTHEATER CEILING PAINTING THE ALTAR OF DIONYSOS BY GUSTAV KLIMT

EXTERIOR

made honorary members, many of last days of the Second World War, whom are awarded the title of Kamthe Burgtheater was extensively merschauspieler. When an honorary damaged by a bombing raid and a member dies, the coffin is laid out fire of unknown origin, and the combefore the grand staircase for the pany took up temporary residence memorial ceremony and subseat the Etablissement Ronacher, a quently carried around the building variety theatre. In 1955 the company once in a solemn procession. returned to its home on the Ring530 people work at the Burgthstraße which had been restored to eater. They collaborate to produce its former glory and equipped with about 20 premieres every year, every up-to-date technology. single production being a new creaToday, the venues Kasino am tive adventure. Everyone working Schwarzenbergplatz and Vestibül at the Burgtheater approaches are also affiliated stages to the his or her work as an artist – this Burgtheater and it’s Company. guarantees the sterling quality of The famous ensemble is the our productions. most important constant element ENTRANCE, BURGTHEATER The Burgtheater (constructed of the theatre and represents the between 1874 and 1888) was the soul of the institution. The Vienna last of the magnificent buildings audience loves its theatre stars and The Burgtheater was erected along the Ringstraße Bouleshows its appreciation by regular the last link in the chain of vard. Designed by the two archiattendance. Even if the Burgtheater today has a modern programme and sumptuous structures built tects Gottfried Semper and Karl Hasenauer, the structure with contemporary structures, it has kept around the Ringstraße, and its von its ornate facade is one of Vienna’s alive many of the traditions that one associates with names such as magnificent façade has made popular sights. It features busts Paula Wessely, Attila Hörbiger, Oskar it one of Vienna’s popular of playwrights and famous figures from world literature, complemented Werner or Raoul Aslan, and that have tourist attractions by paired figures that symbolise invested the institution with such a human emotions and qualities as mythical aura. they appear in many plays: love and hatred, humility and In the ensemble there is always a doyenne and a self-importance, heroism and selfishness. At the top, doyen, the leading actress and actor of the theatre – at dominating all the others, the God Apollo holds court with present this distinction is borne by Elisabeth Orth and the Muse of Tragedy Melpomene on his right and the Muse Michael Heltau. Important members of the ensemble are

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AUDITORIUM OF THE OLD PALACE

of Comedy Thalia at his left.

As the largest theatre in the German-speaking world, one of the most important stages in Europe, and the country’s symbol of freedom, the Burgtheater is a place of turbulence, hope, and art.

The opulent building on the Ringstraße is a symbol of freedom, and not just in the artistic sense. After it was destroyed during World War II, a lot of money and effort went into its reconstruction. It was intended as a step towards a new beginning for a country that had completely lost its identity. Five months after the Austrian State Treaty was signed, the Burgtheater was opened and with it, the birth of the Second Republic was complete.

By the end of the 19 th century, the actors of the Burgtheater had developed into a true celebrity cult.

“The Burg” was seen as a refuge of genuine Austrianism and as such, transformed Vienna into a theatre city. The first performance of the tragedy King Ottokar’s Fortune and End by Grillparzer after the end of the occupation was associated with the 19th century myth.

Over the years, the building was gradually modernised. Icons such as Oskar Kokoschka were employed as stage designers and Thomas Bernhard’s “scandalous” Heldenplatz play was brought to the stage, despite

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AUDIENCE

ZAGREB

large protests. In 1955, this would have been unthinkable, while today, the Burgtheater represents classic and contemporary theatre of the highest level.

“The Burg” is also a masterpiece in the architectural sense – the facades flaunt the style of the Italian High Renaissance on the Ringstraße. Gustav Klimt has also been immortalised in its halls with the frescos which extend high over visitors’ heads in the foyer.

KLIMT AT THE BURGTHEATER The early work of famous painter Gustav Klimt encompasses a number of paintings he created together with his brother Ernst and Franz Matsch in the context of the Künstler-Compagnie (a studio collective) they had set

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EUGENE O’NEILL’S LONG DAY’S JOURNEY INTO NIGHT

BURGTHEATER,ENTRANCE

side) and Theater in Taormina (grand staircase on the Landtmann side).

More than ten years ago, a bundle of full-scale sketches (called cartoons) by Gustav Klimt for the ceiling paintings in the grand staircases were found in the attic of the Burgtheater. These paintings are seminal pieces in Klimt’s early work, heralding the symbolist phase of the fin-de-siècle in Vienna. This priceless treasure of preparatory sketches by the painter also includes his only self-portrait.

Their restoration completed, BURGTHEATER they are now accessible to the interested public in a permanent exhibition at a dedicated Klimt-Raum up. Among these early works are the The famous ensemble in the Burgtheater. ceiling paintings created in 1887 for is the most important The Burgtheater regularly goes the Burgtheater’s grand staircases. on international ‘guest tours’ and its Although still informed by the tradiconstant element of approximately 50 annual guest pertion of history painting, they already the theatre and represents formances make it one of Austria’s point towards the symbolistic phase the soul of the institution biggest and most important cultural of the fin-de-siècle in Vienna. ambassadors. Every year, about In 1886, the artists were com30,000 theatre-goers enjoy performances outside of missioned to portray the history of the theatre on the Vienna, the venues including Amsterdam, Berlin, Bogotá, ceilings of the two magnificent grand staircases. For the Bolzano, Edinburgh, Hamburg, Moscow, Mülheim, Omsk, Künstler-Compagnie as well as for its eldest member Paris, Prague, Rome, Sofia, St. Petersburg, Toulouse, Franz Matsch, only 25 years old in 1886, this commisVarna, Venice, Warsaw, Winterthur, Zagreb and Zurich. sion meant the final breakthrough after commissions The fact that the Burgtheater receives a continuous in Carlsbad, Fiume and Reichenberg. influx of invitations testifies to the eminent quality and Gustav Klimt created four of the total number of ten standing of the institution and its actors. We welcome paintings: Thespiskarren, Shakespeares Globetheater, these invitations as a token of appreciation.

Altar des Dionysos (grand staircase on the Volksgarten

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CULTURE

STEPHANSDOM IS A WORLD-FAMOUS CULTURAL HERITAGE SITE IN AUSTRIA

PRESERVING

Austrian Heritage The Federal Monuments Authority Austria (FMAA) protects and maintains the material cultural heritage of Austria and demonstrates the social importance of this task

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onuments bring the past to mind, form our cultural landscape, are part of our identity and an important element of the image of our country as well as a significant factor in economy and tourism.

The FMAA is the professional instance that protects the cultural heritage of Austria by law and assumes

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the responsibility for the preservation of the monuments. It is not only a professional authority but also a service agency that spreads the necessary historical and technological knowledge and strives to be open to requests and suggestions. The primary aim is to preserve in an authentic and undiminished way cultural heritage which is an irreplaceable capital for the future.

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CORPORATE WIENERBERGER D.O.O. (LTD.) KANJIŽA

New Trends In Construction And Energy Efficiency GRAZ CENTRAL SQUARE

RATHAUS OLD TOWN HALL

The image and reputation of Austria are formed considerably by the enormous richness of its monuments.

Monument protection and care also represent a commitment on cultural diversity of Europe and the world.

Preservation and maintenance of monuments form an essential factor in the Austrian economy. The FMAA lists monuments and puts them under monument conservation.

It researches and documents archaeological heritage, decides on export and whereabouts of moveable monuments and is responsible for monument care including structural alterations, restoration, conservation and maintenance of listed buildings.

The FMAA strives to arrive at a consensus with the monument owners regarding conservation and use of the monuments.

Around 200 staff members try to ensure the preservation of the monuments in cooperation with owners, states, municipalities, dioceses and the many highly specialised experts.

Wienerberger is a world leader in the production of clay building materials, known for its high quality clay block walling system under the brand Portoherm. With its acquisition of company Tondach, Wienerberger has become the owner of Potisje Kanjiža AD Kanjiža. As 2018, the new name of Potisje Kanjiža A.D. (JSC) Kanjiža is Wienerberger d.o.o. (Ltd.) Kanjiža, while Tondach remains the brand name for its high quality clay tile.

The focus of Wienerberger’s operations is on the constant development of new, innovative products and system solutions for walls, ceilings and roofing. The Tondach clay roof tiles and roof system solutions are leaders on the market. Also, the clay construction blocks with high quality thermal insulation and noise reduction properties providing an unprecedented speed of construction with the dry block installation system under the brand name Porotherm, as well as the Terca clinker facade bricks of which this company is very proud.

Wienerberger d.o.o. Kanjiža is also a winner of the “New Vision” Award in the segment of construction materials for the Continental Plus NATURA roof tile, which the company won at this year’s International Construction Fair in Belgrade.

Wienerberger is a company that’s fully orientated towards solutions for the construction of energy-efficient buildings and ecological housing, fulfilling the highest standards of thermal insulation, noise reduction and fire prevention. Superior system solutions for roofing ensure a safe and stable roof that’s resistant to all weather conditions. All Wienerberger products are made from natural materials and the company’s entire production process is harmonised with nature.

Today, Wienerberger vision is to be the most revered building materials and infrastructure solutions manufacturer and the employer of choice in Wienerberger markets. Wienerberger is a market leader in Smart Solutions and a pioneer of digitalisation in the industry.

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TRADITION

ACTIVE DIRNDLS DIFFER FROM THE WOMEN'S COSTUME

Tracht Or Austrian TRADITIONAL COSTUMES Once upon a time in the Alps, Emperor Charlemagne was out with a hunting party consisting of some of the noblest knights in his empire. They were all dressed in valuable clothing made of fine fabrics like silk, beautifully embroidered - only the Emperor himself wore the plain clothing of a peasant

A

tiny little dirndl dress for girls Charlemagne was so upset about his knight's pretentiousness and their need to show off their wealth, that he made them ride up and down the Alps, through forests and swamps, over cliffs and mountain tops, all day long.

When they finally arrived at a chateau late at night, all the noblemen were dirty, bleeding and their clothes had turned into rugs. Only the Emperor was still fine and his warm coat was unharmed - made of the local loden cloth.

People in Austria tell this story when they want to convince you that Austrian “Tracht” or traditional clothing is superior to other fashion. Historically, the rather coarse fabrics and materials that are used for tracht - whool, linen, leather and alike - were indeed mostly worn by peasants. Nobility could afford more refined cloths, but the common people had to use

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materials that were durable and easy to clean. Unsurprisingly, it was indeed hunting parties that were the first to copy the style of the common people: Not only Charlemagne, but also Emperor Maximilian I was keen on “local wear”.

Until well into the 19th century, when Tracht was formalised and spread throughout Austria and Bavaria, traditional clothing was very regional. The person who wore traditional dresses, trousers or coats often expressed region of origin and social background. The regulations for this were tight - in the Middle Ages, peasants were not allowed to wear colours. Craftsmen of certain guilds in Austria would wear a particular kind of clothing, and so did students, merchants, wealthy farmers.

Imported cloth was usually limited to nobility and church. For example, farmers were allowed to wear laces only in 1730.

Traditional clothing is a common sight in rural Austria,

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especially in the WestIn the 18th century, legal constraints in apparel design were gradually abolished. At this time, traditional patterns, techniques to dye fabrics and other means to produce new materials in “basic fashion design” became both more sophisticated and accessible to lower classes. Valleys and villages developed their own styles in enormous diversity. The

COSTUMES FROM VORARLBERG, AUSTRIA

word “Tracht” is derived from “tragen” (meaning “to wear”) - so it was the clothing people would wear even in daily matters.

In the early 19th century, the Age of Romanticism sparked a new interest of the nobility in folk culture. Tracht or traditional clothing suddenly became fashionable. Archduke Johann of Styria advised his tailors to include traditional styles in his coats and jackets. Once again it was hunters who learned to appreciate the rustic designs of Tracht. Johann's nephew, Emperor Franz Joseph I, was a great hunter - and an aficionado of lederhosen and loden jacket. He loved to spend his summers in Bad Ischl, still a centre of Tracht manufacturing.

A “Sommerfrische” vacation in the Salzkammergut, Salzburg or Tyrol became hugely fashionable in the late 19th century. The aristocracy from Vienna loved the hills and lakes - and the traditional clothing. Fashion designers started to draw inspirations from traditional clothing and gave rise to “Trachtenmode”. At the same time, academics tried to learn more about genuinely traditional clothing by doing research in it. And soon societies for the preservation of folk culture (many of them with dubious pan-Germanic ideas) popped up.

Two tanners of Salzburg, Josef and Johann Jahn, developed a new technique to dye lederhosen and make them look old and used. The company Jahn-Markl is still big and among the most traditional in Austria's lederhosen industry. Other designers created new styles of the Dirndl dress. Within a few years, tracht became socially accepted as formal wear, at least in Western Austria. Following the collapse of the Empire in 1918, both Tracht (traditional clothing) and Trachtenmode (fashion inspired by traditional clothing) were not forgotten.

The “Salzburger Trachtenbuch” and similar publications

presented all the information about traditional styles. When the Salzburg Festival was first organised in 1920, traditional costumes had found a new catwalk. Many of the artists performing at the festival loved to wear Tracht ensembles. It was the 1920s that saw the rise of formalised tracht and the establishment of “Tracht dynasties” - many of the most important designers in the scene started in those days.

CURRENT CENTRES FOR TRACHT & TRADITIONAL WEAR Today, Salzburg and the Salzkammergut are the centres of Tracht manufacturing and trade. Other regions that are big in the business are Bavaria, Tyrol, Styria and Carinthia. Authentic Tracht can cost several thousand Euros - nevertheless, dirndl dresses or lederhosen are among the favourite souvenirs from Austria. Tracht specialist boutiques occupy spots in some of the most exclusive shopping areas in Salzburg and Vienna.

A traditional ensemble consists of a large number of items.

Men usually wear a lederhosen or a pair of trousers made of loden; a cotton or linen shirt; a loden, linen or whool jacket; a loden or whool coat; and a variety of accessories, from certain kinds of socks to snuff vials, daggers and schnapps hip flasks.

FAMOUS ALBERT HELD FROM INNSBRUCK IS STILL MAKING TRACHTENHUT, TRADITIONAL TYROLEAN FELT HATS

Women wear one of two kinds of Dirndl dresses or - usually on the countryside - a skirt and jacket made of loden.

If you want to see proper Tracht, just take a walk through the city centre of Salzburg. If you have a deeper interest, look up the fashion shows of the big design companies - Gmachl, Lanz, Jahn-Markl and others. The best seasons are spring and autumn, when the new designs are presented, as well as the festival time in summer.

Speaking of the Salzburg Festival: Many visitors there will wear extravagant Trachtenmoden designs. The Salzkammergut is a good hunting ground for Lederhosen. And if you would like to see traditional designs in use, go to any countryside village or town on “Fronleichnam” (Corpus Christi) in June.

The holiday is celebrated with a procession for which many people wear Tracht.

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THE HORSE-DRAWN CARRIAGE CITY

TODAY IT IS HARD TO IMAGINE THE CITYSCAPE WITHOUT THE VIENNESE FIAKER

Vienna On Wheels Horse-drawn carriages are a part of Vienna just like St. Stephen's Cathedral or the Giant Ferris Wheel. The historical coaches are a permanent feature in Vienna's cityscape. A ride in a horse-drawn carriage is a must for many people when visiting the city 44

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he Wagenburg is a museum of carriages and vehicles used by the imperial household of the Austrian Empire. It is housed in the grounds of the Schloss Schรถnbrunn in the Hietzing district of Vienna and is a department of the Kunsthistorisches Museum. Its exhibits include the Imperialwagen (golden carriage of the Imperial Austrian court in Vienna) Established in 1922 after the bulk of the Imperial carriages were moved to the former Winter Riding School in Schรถnbrunn Palace, the Carriage Museum presents many fine state coaches, ceremonial carriages, sleighs, and

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Emperors and Empresses each needed more than one style of carriage, naturally, and below are a couple of “knocking about town” buggies

ROYAL CORONATION CAR, IMPERIAL CARRIAGE, 18TH CENTURY

HABSBURG SPLENDOUR

THE FUNERARY COACH WOULD CARRY THE HABSBURGS TO THEIR FINAL RESTING PLACE

IMPERIAL CARRIAGE

sedan chairs. A highlight of the collection is the exquisite Imperial Coach built for the coronation of Joseph II in 1764, and the carriage of choice for numerous royal coronations since. Richly decorated with ornate carving and sumptuous paintings, this heavy coach was pulled by a team of eight horses (always greys) but, due to its immense weight, could never go faster than walking pace. Also interesting is the black Funerary Coach used to take the Habsburgs to their final resting place. Note that Vienna is famous for

its many horse-drawn carriages (Fiaker), and they provide a fun way to explore the city.

The most impressive carriage for living royalty is without doubt the Coronation Carriage, built in the late 1700s and used for Habsburg coronations. This carriage weighs 4,000kg and even being drawn by eight horses, could not proceed at more than a walking pace.

Emperors and Empresses each needed more than one style of carriage, naturally, and below are a couple of

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RENT-A-CARRIAGES AT THE CONGRESS OF VIENNA, 1814 DORMEUSE OF KAISER FRANZ I. AROUND 1833

COURT-WARE GALAWAGEN, SO-CALLED GRIEF-HULDIGUNGWAGEN, AROUND 1690

“knocking about town” buggies.

Come warm weather, when the family spent their days at their summer palace, Schloss Schönbrunn, this was their everyday ride, pulled by six white stallions.

Even little royalty had carriages. This was designed for the son of Napoleon and his second wife, Maria Louisa (a Habsburg princess). But little royalty did not require stallions for power; this carriage was pulled by sheep.

And even in death, appearances must be maintained. The

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Black Hearse of the Royal Court was pulled by eight black horses, and was last used in 1989 for the funeral of Empress Zita, who died in exile in Switzerland at the age of 96.

FIRST RENT-A-CARRIAGES For eight months two centuries ago Vienna was the centre of the world: monarchs, policy makers, and lobbyists from all over Europe gathered at the Congress of Vienna (18th September 1814 – 9th June 1815) to redraw the map of

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At the Congress of Vienna, two hundred years ago, for the first time all carriages were given a uniform appearance as part of efforts to improve the administration of this carriage rental service

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SISIS SPROUTS, EXACT MINIATURE VERSIONS OF LUXURIOUS CARRIAGES

VIENNA COURT CAROUSEL SLEIGH, C. 1740-50

Europe after Napoleon’s defeat. They were accompanied by huge retinues, as well as thousands of adventurers and onlookers, who all needed to be housed, fed, entertained and moved about in Vienna – making this conference of princes the precursor of contemporary conference tourism.

Everyone knows that the Congress danced – but much more important for contemporaries was that it also “drove”: hundreds of sumptuous carriages had to be built almost over night to provide suitable transport for these elegant

visitors, and to entertain them with much admired sleigh rides and outings in fashionable barouches. Noble guests and members of their retinues could rent these coaches at any time of the day or night simply by ordering them using specially printed forms. For the first time all carriages were given a uniform appearance as part of efforts to improve the administration of this carriage rental service. Thus the imperial court invented the “corporate identity” of a princely fleet of carriages, an idea soon copied all over Europe.

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SPANISH RIDING SCHOOL VIENNA

Traditions That Last

OVER 450 YEARS Levade, courbette and capriole are classical school jumps performed by the Lipizzaner stallions, who enchant their public at the Spanish Riding School in Vienna.

The traditions of this haute école of classic equestrianism have been passed down by word of mouth for around 450 years. Once these intelligent white stallions have completed their training, they are known as "professors"

T

hese world famous horses originally from Spain are schooled in the Winter Riding School of the Hofburg Palace in a hippodrome once reserved for the imperial family. During their morning exercise they practice the choreographed steps which will be executed perfectly at the evening gala with their riders. These stallions were once stabled in the courtyard of every royal household in central Europe, valued as ceremonial horses for parades, jousts and military campaigns. However, only in Vienna has the tradition of Lipizzaner horsemanship endured to this day. The Lipizzaner horses, Europe’s oldest domesticated breed of horse, take their name from an imperial stud which was located near to Trieste. And the

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Spanish Riding School is the only institution in the world which has practiced classical equitation in the tradition of the haute école since the Renaissance.

Lipizzaner horses are bred at the Piber Stud Farm in Styria, and the young stallions which demonstrate the best jumping ability and stamina are selected for High School training. They begin with four years of schooling in Vienna, where the guiding principle is the wellbeing of the horse. During gala performances the horse performs the movements that it would naturally make in the pasture - various gaits, changes of steps and jumps - but in a beautifully stylised form. Through the specific strengthening and training of muscles, the horses’ natural movements are developed into

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choreographed to historic dance music from the time of the perfect figures of the High School. A stallion may be the Viennese Congress. This ballet of the white stallions perfectly schooled after about six years, but a rider needs a requires intense concentration. Nothing is done purely for full ten to twelve years of training. During their first four to show and yet every detail is impressive - the baroque riding five years the riding school apprentices practice above all hall from 1729, the historic uniforms, the correct posture in the saddle on a complete trust between rider and professor horse. In 2008 women were In 2015, the tradition of the the Lipizzaner, who communicate only accepted as riders for the first time Classical Horsemanship and with body language. It is a perfect, in the history of the Spanish Riding School. British and Austrian female the High School of the Spanish living work of art, in which the unity of horse and rider touches everyone riders are currently being trained.

Riding School were admitted who witnesses it.

The audience at the gala perforIn 2015, the tradition of the Classimance sees the stallions demonstrat- to the UNESCO’s world heritage ing the most demanding movements cal Horsemanship and the High School list of intangible cultural such as pirouette, passage and piaffe of the Spanish Riding School were heritage of humanity and the most difficult jumps to the admitted to the UNESCO’s world heraccompaniment of Austrian classiitage list of intangible cultural heritcal music. The horses are both ridden and led by the reins. age of humanity. The UNESCO list comprises over 300 The highlight of the evening, after the pas de deux (two cultural practices and expressions of intangible heritage horses in mirror image), is the school quadrille, a very and includes two other Austrian traditions, falconry and difficult dance with eight Lipizzaner horses, precisely the Schemenlaufen carnival of Imst.

THE WHITE SADDLES USED FOR PERFORMANCES

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