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WOLFGANG SOBOTKA, PRESIDENT OF THE NATIONAL COUNCIL OF AUSTRIA ● H.E. NIKOLAUS LUTTEROTTI, AMBASSADOR OF AUSTRIA TO SERBIA ● MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA ● ERIKA TEOMAN BRENNER, COMMERCIAL COUNSELLOR OF THE AUSTRIAN EMBASSY IN BELGRADE ● ADRIEN FEIX, DIRECTOR OF AUSTRIAN CULTURAL FORUM ● BARBARA HOREJS PH.D., DIRECTOR OREA INSTITUTE FOR ORIENTAL AND EUROPEAN ARCHAEOLOGY OF AUSTRIAN ACADEMY OF SCIENCES ● JELENA KNEŽEVIĆ, DIRECTOR, LEITNERLEITNER ● BRANKA PUDRLJA DURBABA, SENIOR MARKET DIRECTOR AT VIP MOBILE ● SVETLANA STOJŠIĆ, REGIONAL MANAGER AT WIFI (WIRTSCHAFTSFÖRDERUNGSINSTITUT) INTERNATIONAL INSTITUTE FOR THE ECONOMIC PROMOTION OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBERS ● IVAN VUJISIĆ, SALES AND MARKETING DIRECTOR WIENERBERGER DOO KANJIŽA

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DIALOGUE IS A POWERFUL SOLUTION

WOLFGANG SOBOTKA, PRESIDENT OF THE NATIONAL COUNCIL OF AUSTRIA

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ADRIEN FEIX, DIRECTOR OF THE AUSTRIAN CULTURAL FORUM

ERIKA TEOMAN BRENNER, COMMERCIAL COUNSELLOR OF THE AUSTRIAN EMBASSY IN BELGRADE

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

WIFI INTERNATIONAL: EXPORTING AUSTRIAN EDUCATIONAL STANDARDS

FREE & FAIR ELECTIONS – A CORE EU PRINCIPLE

H.E. NIKOLAUS LUTTEROTTI, AMBASSADOR OF AUSTRIA TO SERBIA

TODAY’S OPERATORS MUST ALSO INNOVATE

BRANKA PUDRLJA DURBABA, SENIOR MARKET DIRECTOR AT VIP MOBILE

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THEATRE’S CREME DE LA CREME

SVETLANA STOJŠIĆ, REGIONAL MANAGER AT WIFI

NEOLITHIC WAY OF LIFE

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TOURISM: HIKING

BARBARA HOREJS Ph.D., DIRECTOR OREA INSTITUTE FOR ORIENTAL AND EUROPEAN ARCHAEOLOGY OF AUSTRIAN ACADEMY OF SCIENCES

(WIRTSCHAFTSFÖRDERUNGSINSTITUT)

INTERNATIONAL INSTITUTE FOR THE ECONOMIC PROMOTION OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBERS

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IVAN VUJISIĆ, SALES AND MARKETING DIRECTOR, WIENERBERGER D.O.O. KANJIŽA

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGN: Jasmina Laković j.lakovic@aim.rs EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović

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Mihailo Čučković, m.cuckovic@aim.rs

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OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs

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

FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs

PUBLISHER: Ivan Novčić i.novcic@aim.rs DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com 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 15; ISSN: 2560-4465 All rights reserved alliance international media 2019 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

Admirable COOPERATION As an avid supporter of Serbia’s EU accession process, Austria backs many initiatives that contribute to the political, economic and cultural development of Serbia, its stability and prosperity. In that respect, it also encourages all efforts leading to improvement in the rule of law, the fight against corruption, and media freedom

ustria’s foreign policy has been characterised portant for all aspects of life and economic development in by continuous support to EU enlargement, as a Serbia. This is particularly the case with the independence stabilising factor for Southeast Europe and a of the judiciary, the fight against corruption and organised key component contributing to peace, economic crime, and striving to ensure media freedom. development and social welfare in the region. Furthermore, Bilateral relations between the two countries are exexpanding trade and investment in the emerging markets cellent and improving in depth and scope each year. They of Southeast Europe is an important element of Austria's are the result of joint efforts on the Serbian and Austrian economic activity. sides, and are also based on mutual interests. Some of the Indeed, in many cases, leading best examples of these developments Austrian politicians have supported Bilateral relations between are in the sphere of education and Serbia on its EU path. There are nudigitalisation. The Austrian, German the two countries are and Swiss governments have been merous examples of that support that excellent and improving in working closely for some time with the have been presented on the pages of Serbian authorities on the introducthis publication. For example, in an depth and scope each year interview for CorD, Wolfgang Sobotka, tion of dual education to secondary President of the Austrian Parliament, pointed out that the and tertiary education in the country. These efforts were EU needs to appreciate and honour the reforms undertaken recently combined with diligent work on supporting Serbian by Serbia and other countries in the region, while Austrian companies and others in the region to enter the process Ambassador to Serbia H.E. Nikolaus Lutterotti voiced of digitalising their operations. This process, which should his support to the efforts of the Serbian Government, – over the long term – lead to the development of the emphasising that strong political will and determination knowledge-based economy in Serbia, will also help Serbian to advance on the reform path will see processes bear companies enter into much more complex and technologifruit for Serbian citizens long before an actual decision cally advanced cooperation with Austrian partners. This on enlargement is brought. will further help the already burgeoning trade exchange The list of priorities that should be addressed by the between the two countries and boost the existing level accession process relate to the rule of law, that is to EU of investment of Austrian companies in Serbia, which is accession negotiation chapters 23 and 24, which are imalready commendable.

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INTERVIEW

WOLFGANG SOBOTKA, PRESIDENT OF THE NATIONAL COUNCIL OF AUSTRIA

DIALOGUE

Is A Powerful Solution Serbia is in many respects an anchor of stability in the Western Balkans. In this context, the normalisation of relations with Pristina is a key factor, both for Serbia to advance on its EU path and for moving forward in the reconciliation process. Furthermore, all questions related to free and fair conditions for elections should be addressed and resolved in an inclusive dialogue

A Credit: @ Parlamentsdirektion / PHOTO SIMONIS

t the time of this interview, it seems highly likely that a start date for EU accession talks with North Macedonia and Albania will soon be set. The news that the German Bundestag recently offered its strong support for the accession process of the two countries represents a new, major boost to the EU membership hopes of both Balkan countries and the entire region, and is in line with the Austrian support to the EU future of the Western Balkans. Our interlocutor, Wolfgang Sobotka, President of the National Council of Austria, the Austrian Parliament, is a vocal supporter of such developments. He believes that the Council of the EU and the European Parliament will stand behind the idea that the Western Balkan countries belong to the European family, and points out that Austria has always supported candidate countries in their efforts to convince sceptical EU member states that the enlargement process is the strongest motor for positive change in the region. Yet, it is a destiny that every country in the region has to choose on its own, and implies working diligently and continuously on accepting political and economic reforms, which are “first and

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RECOGNITION

It is my opinion that the EU needs to appreciate and honour the reforms undertaken by Serbia and Montenegro

FAIRNESS

The pace of reforms is decisive for each country’s progress towards EU membership. Being frontrunners today does not guarantee joining the European Union first

SUPPORT

The Austrian Parliament is deeply engaged in strengthening the capacities of the Western Balkans’ parliamentary administrations

April in Vienna. On this occasion, we Austria has always once again reaffirmed the European supported candidate countries perspective of the Western Balkans, as in their efforts to convince well as our commitment to EU enlargeYou have reiterated many times that in the region. The same message sceptical EU member states ment it is necessary to provide the Balwas conveyed by Ursula Von der Leyen kans with clear accession prospects. that the enlargement process in the political guidelines for the new EuDo you think that the EU still clearly ropean Commission in July. Austria has is the strongest driver of stands behind this message after the always supported candidate countries positive change in the region in their efforts to convince sceptical EU recent changes in the EU leadership? foremost in the interest of the countries and their populations”, underlines our interlocutor.

How numerous are sceptical member states today? - It is my firm belief that the European project remains incomplete until all countries of the Western Balkans have joined the EU. On my initiative, the Speakers of the parliaments of EU countries discussed the relationship between the EU and its neighbours at their annual conference last

member states that the enlargement process is the strongest motor for positive change in the region. In my encounters with my EU counterparts, I have been advocating for the opening of accession talks with North Macedonia and Albania over recent months. I have also pointed out that the EU needs to appreciate and honour the reforms undertaken by Serbia and Montenegro.

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needed, Austria will be there as a close friend of Serbia.

Credit: © The National Assembly of Serbia

WOLFGANG SOBOTKA WITH SERBIAN PRESIDENT ALEKSANDAR VUČIĆ, BELGRADE, 13TH NOVEMBER 2018

There is an initiative of the Austrian Parliament to give an impetus to the EU integration-driven reforms of the parliamentary administrations of the Western Balkans. How can the parliaments of the so-called WB6 contribute to the EU accession process and democratisation? - Parliaments play an essential role in upholding and strengthening the rule of law and democracy. Members of Parliament have the task of reaching out to citizens and giving a voice to their aspirations and demands. MPs can contribute a lot to the EU accession process by ensuring that people understand and support the need for reforms. In order to strengthen the capacities of Western Balkans' parliamentary administrations, the Austrian Parliament is offering fellowships for officials who want to familiarise themselves with the practises of a parliament in the EU and to learn from their Austrian colleagues. A first group of fellows recently arrived in Vienna, and I hope that many more will follow.

Do you think that the accession mes- Time and patience are needed sage clearly resonates among the for the people in the Western Balkan countries themselves? Who are the frontrunners today among the Balkans to fully embrace Balkan countries and who has fallend the idea of becoming part behind the pace? of the EU and adhering to - From my visits to the region, I reAs you have stated, there is a need call that a pro-European sentiment European values and rules to anchor the course towards the EU is strongly held by most people in the irreversibly in the heart and minds of people in the WB6. Western Balkans. EU membership continues to be the most How does the involvement of other major countries, such as powerful driver of political and economic reforms, which are Russia and China, impact on EU sentiment in the WB6; and first and foremost in the interest of the countries and their who has to lead this battle for hearts and minds, and how? populations. The pace of reforms is decisive for each coun- When I look back on Austria’s EU accession process, which try’s progress towards EU membership. Being frontrunners started in 1989, I have to acknowledge that people’s support today does not guarantee joining the European Union first. for EU membership was not guaranteed from the beginning. It took some time to build a consensus among all parties and In that respect, what is your main message to Belgrade? to win the hearts and minds of two-thirds of Austrians, who - I see Serbia, in many respects, as an anchor of stability in finally voted in favour of EU membership in 1994. the Western Balkans. The future of the whole region will Time and patience are also needed for the people in the be significantly shaped by Belgrade. In this context, the Western Balkans to fully embrace the idea of becoming normalisation of relations with Pristina is a key factor, both part of the EU and adhering to European values and rules. for Serbia to advance on its EU path and for moving forward The EU stands for more than any single third country. It in the reconciliation process. remains unique and attractive in terms of political stability, Furthermore, all questions related to free and fair coneconomic power, social protection and democratic standards. ditions for elections should be addressed and resolved in History tells us that the countries of the Western Balkans an inclusive dialogue. I strongly welcome the government’s belong to Europe. readiness to engage in these talks. Whenever support is 10

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INTERVIEW

H.E. NIKOLAUS LUTTEROTTI, AMBASSADOR OF AUSTRIA TO SERBIA

FREE & FAIR ELECTIONS

– A Core EU Principle We sincerely hope that the upcoming elections will lead to a parliament that will reflect the diversity of political opinions and visions in this country and that will allow for a genuine cross-party debate – Nikolaus Lutterotti

ustria’s policy towards Serbia will not change after the recent snap elections, says Ambassador Nikolaus Lutterotti assuringly. According to him, Austria will continue to push for EU enlargement, but he adds that the speed of the process depends on reforms in Serbia itself. Speaking about the most important area – the rule of law, covered by Chapters 23 and 24 – Ambassador Lutterotti assesses that the reach of reforms are mixed. He considers that Serbia has made certain progress on its legislative and institutional reform agenda, but that there is a need to strengthen efforts when it comes to implementation. In this interview for CorD Magazine’s Austria special, Ambassador Lutterotti also supports the efforts of the OSCE and the European Parliament aimed at assisting on a political dialogue in Serbia that would ensure the election process is aligned with democratic norms and EU standards.

and cultural relations with the countries of Southeast Europe. We regard EU enlargement as a stabilising factor for Southeast Europe, and hence as contributing to peace, economic development and social welfare. From today’s perspective, I don’t expect significant changes in Austria’s foreign policy direction.

Your Excellency, should we expect significant changes in Austria’s political direction following the snap parliamentary elections of 29th September? - Austria’s foreign policy has been characterised by continuity and reflects my country’s interests. In particular, EU-enlargement has been a core priority given our close political, economic

Serbia is also preparing for parliamentary elections, to be held in March 2020. Critics from the opposition, who insist that conditions to hold fair elections don’t exist and call for a boycott, have not been met with understanding in the EU. What is your position on this issue? - Free and fair elections are one of the essential conditions for

The calling of early parliamentary elections was preceded by a political scandal involving Vice-Chancellor Strache. Media reports covering that event also mentioned Serbia. Has this scandal impacted on bilateral relations between Austria and Serbia? - Austrian-Serbian relations are excellent and the level of our political, economic and cultural cooperation has grown steadily. These developments are the result of efforts on both the Serbian and Austrian sides and are based on mutual interests. We have not felt an impact on our bilateral relations.

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PERSPECTIVE

From today’s perspective, I don't expect significant changes in Austria’s foreign policy direction

PROGRESS

Serbia has made some progress on its legislative and institutional reform agenda

a democracy, which is a core principle of the European Union. We are looking forward to seeing the full implementation of the recommendations of the ODIHR and the Council of Europe regarding conditions for elections in Serbia. The dialogue that has been launched among representatives of the governing and opposition parties and facilitated by civil society organisations seems to me to be a positive step. We also appreciate the efforts of the European Parliament to facilitate an interparty dialogue. It is important that these initiatives are met by a meaningful and constructive approach from all sides of the political spectrum. We sincerely hope that the upcoming elections will lead to a parliament that will reflect the diversity of political opinions and visions in this country, and that will allow for a genuine cross-party debate. One of your messages to Serbia’s citizens is that EU membership requires credible reforms in the domain of the rule of law and fundamental freedoms. How would you rate the current situation in these areas in Serbia? - We have respect for the reforms that have been undertaken so far. Overall, it is our assessment that progress in the area of the rule of law is mixed. Serbia has made some progress on its legislative and institutional reform agenda. But as far as the implementation of chapters 23 and 24 are concerned, there is a need to strengthen efforts. This is particularly true for the area of the independence of the judiciary, the fight against corruption, media freedom, the domestic handling of war crimes and the fight against organised crime. We are aware that this is a difficult and complex process, but it is essential for the advancement of Serbia’s path towards membership in the European Union. Reforms need to be implemented and hence take effect.

EFFORTS

We also appreciate the efforts of the European Parliament to facilitate an inter-party dialogue

highest level, its commitment to enlargement, which remains a key policy of the European Union. There have also been positive messages from Brussels regarding the commitment to EU enlargement by the next Commission. Does the EU have other challenges? Yes, the EU has numerous challenges and the EU will have to address these challenges. This is in the interest of both the EU and candidate countries. Serbia has opened only 17 of a total of 35 EU accession negotiation chapters, despite having been negotiating for more than five years. Such a pace doesn’t provide hope that the country could achieve EU accession by 2025. How would you comment on this timeline? - The pace of reforms in Serbia is primarily in the hands of the Serbian Government. The reform process is the main driver of the pace of accession negotiations. This should be the focus. With strong political will and determination to advance on the reform path, negotiations can certainly be finalised at a quicker pace. However, it is important to bear in mind that the benefits of EU enlargement will be felt as reforms take effect, well before the actual enlargement date. In Austria we would be happy to see Serbia’s accession sooner rather than later, provided accession criteria are met.

We are looking forward to seeing the full implementation of the recommendations of the ODIHR and the Council of Europe regarding conditions for elections in Serbia

You have stated repeatedly that EU enlargement to encompass the countries of the Western Balkans is in Austria’s interest. Do you have the impression that enlargement remains in the focus of the EU following elections for the European Parliament and EU institutions? - As far as Austria’s interest in EU enlargement towards Southeast Europe is concerned, I am confident that this remains a priority for us. We will also continue to advocate for enlargement to remain at the top of the agenda of the European Union. The EU has repeatedly reaffirmed, at the

Do you believe in the possibility that the Belgrade-Pristina dialogue will resume soon? - Yes, I do. And I hope that it will happen sooner rather than later and that both sides will show the necessary political will to advance towards an agreement on the full normalisation of relations. Austria is high on the list of the home countries of investors in Serbia. Austrian company Immofinanz arrived in Sremska Mitrovica recently, opening a retail park in the city. Could Serbia also prove interesting to investors from some manufacturing industries or possibly from areas related to high technology or IT? - We are very glad to see a company like Immofinanz here. They manage their expansion in Serbia very successfully, having opened 10 retail parks so far. Regarding investments in production and manufacturing, we recently witnessed quite some interest in starting operations here on the part of Austrian companies. This is mainly due to Serbia’s advantageous 13

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geographical location and the favourable labour costs, but even more it is the availability of qualified personnel that makes Serbia an attractive location for investments. In this respect, we strongly support the initiatives of the government and the Serbian Chamber of Commerce & Industry to implement dual vocational training, because - based on our experience in Austria - we are convinced that this will benefit both the youth and the country as a whole. While we see a continuous shift to more value-added manufacturing

along the various steps of decision-making, are definitely at an advantage vis-à-vis others. Finally, all “hard” facts aside – making an investor feel welcome in a community definitely adds to the attractiveness of a specific location.

in Serbia among our companies here, we are still quite a way from having hightechnology investments here. On the other hand, the IT-sector is very promising, given the strength of domestic companies and the excellent output of Serbian universities in terms of research and graduates. Following the example of one outstanding Austrian-Serbian IT-company in Novi Sad, we expect more companies from Austria to look into business opportunities in IT in the medium-term.

You’ve stated that Austria is interested in participating in the construction of mini hydro-power plants in Serbia. However, are you aware that Serbia’s expert public, citizenry and environmental protection minister all oppose the construction of the mini HPPs that are emerging in protected ecological zones and threatening the survival of wildlife and sources of drinking water? How has Austria resolved this problem – given that you have thousands of mini hydro plants today? - I am aware that the discussion about small hydro-power plants in Serbia is mainly about problematic locations in protected areas and management of water resources. Of course, it is important for all projects in Austria, as well as in Serbia, to respect nature and environmental issues. What I can say is that the experiences with small hydro-power plants in Austria are very positive, both in terms of providing a stable and renewable source of energy, as well as in terms of maintaining a clean and ecologically friendly environment. Small hydro-power plants in Austria supply electricity to more than 50 per cent of Austria’s households. They add value and jobs in rural areas, while hydro power plants also contribute to flood protection and – if done properly – can improve water ecology. Given our decadeslong history with hydro power, we also have many competent and successful companies working in this field worldwide.

You’ve devoted a lot of attention in recent months to talking with representatives of local government in Serbia, promising to help them strengthen their position and attract Austrian investors themselves. Do you see the capacity for such an endeavour at the local level? - I’m always very interested in entering into a dialogue with representatives of municipalities and local communities. They play an important role in developing and maintaining infrastructure, issuing permits and supporting local business, in general. Hence, they are usually the first point of contact for prospective investors. Local governments that make sure that procedures are efficient, transparent and fast, and further show their willingness to assist a potential investor

The reconstructed Golubac Fortress was opened in early 2019, with Austria having invested €600,000 in the restoration of this historic monument. Is there any interest in Austria to reconstruct some other neglected site in our country in the future? - The reconstruction of Golubac Fortress was an important project - not only to restore a historic monument, but also to advance the socio-economic development of that part of the Danube region. If there are proposals for further reconstruction projects, I’m sure that Austria will be interested in considering being part of such a project. For the moment, I’m not aware of any concrete ideas in this regard.

Austrian-Serbian relations are excellent and the level of our political, economic and cultural cooperation has grown steadily

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ur consistently high-quality standards have also helped us achieve success and constantly increase our locations in CEE and SEE. As one of the most influential tax consulting and auditing companies in Central and Eastern Europe, LeitnerLeitner is being increasingly recognised in Serbia due to its professionalism and the high quality of services provided to clients. “We recognised the significance of CEE countries early on and can therefore offer our clients the best course of action. Tax optimisation, tax planning and successful business strategies that are tailored to each client’s needs – that’s what we aim to achieve for our clients by offering comprehensive advice,” says LeitnerLeitner Director Jelena Knežević.

plied goods or services, provided the goods/services supplied and the identity of the supplier of goods/services are indicated, either on the voucher itself or in related documentation. A single purpose voucher is considered to be a voucher for which the point of supply of goods/services and the VAT due for such supply are known in the moment of the issuance of a voucher, while a multi-purpose voucher is a voucher for which the point of supply is not known at the moment of issuance. Vouchers can be issued, in electronic form or hard copy, as an instrument that entitles the holder to the right to use a price coupon discount, which does not include the right to purchase goods or services, transport tickets, admission tickets, postage stamps or similar items not considered to represent a value voucher. VATtreatment of single purpose vouchers – each single transfer of single purpose voucher by a taxpayer in its own name – is considered as a supply of goods/services. If the transfer of a voucher is done by a taxpayer on behalf of another taxpayer, it is considered that the actual supplier of the applicable goods/services effected supply of the goods/services to that taxpayer who issued voucher. So, for a single purpose voucher, the moment when a tax obligation arises is the moment of the voucher's issuance. The VAT treatment of multi-purpose vouchers – the actual supply of goods/services for a multi-purpose voucher accepted by the supplier of goods/services as consideration for such supply – is subject to VAT, while each previous supply of a multi-purpose voucher is not subject to VAT. It is crucial that, for a multi-purpose voucher, how they will be used it is not known at the moment of issuance. A typical example is the use of vouchers issued by a shopping centre, which can be used at various shops within the centre. As such, given that the elements for the calculation of VAT are unknown at the moment of issuance, VAT is not calculated at the moment of issuance, rather at the moment when actual goods/services are supplied on the basis of the voucher.

On its road to the European Union, Serbia is also amending its VAT legislation in accordance with the VAT Directive, including the VAT treatment of vouchers

VAT TREATMENT OF VOUCHERS IN SERBIA The Serbian Government determined Law on Amendments to the Law on Value Added Tax on 16th September 2019, which was adopted at the 7th October 2019 session of the National Assembly of the Republic of Serbia – with the adopted Law then published in the Official Gazette of Republic of Serbia, issue No. 72, on 7th October 2019. The majority of suggested amendments will be applicable as of 1st January 2020. One of the major amendments will be regulation of the VAT treatment of vouchers in Serbia. This topic has been a burning issue in the EU recently, where the VAT Directive 2006/112/EZ was amended in the part relating to the VAT treatment of vouchers. EU member states had a deadline of year's end 2018 to harmonise their local legislation to address the amendments to the VAT Directive. The Draft Law determines the VAT treatment of the supply of goods and services rendered through the transfer of vouchers, which can be single purpose and multi-purpose vouchers. As a first step, it is necessary to know the definition of the voucher and to differentiate between these two types of vouchers. In terms of VAT Law, a voucher is an instrument that must be accepted as a consideration, or part of a consideration, for sup-

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INTERVIEW

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

We Rely On The Best

AUSTRIAN PRACTISES Austria has a strong interest in the progress of the economies of the Western Balkans, including Serbia's, and supports the transformation of domestic industries towards digitalisation and the reform of education in line with market needs. The Chamber of Commerce & Industry of Serbia, as a leader of change in the region, provides a strong contribution to accelerating these trends and establishing best practises

hamber of Commerce & Industry of Serbia President Marko Čadež, on behalf of the Western Balkans Six Chamber Investment Forum (WB6 CIF), signed a Memorandum of Understanding in Vienna at the beginning of this year on the project to introduce dual education to the Western Balkans and develop the digital economy. “Preparations for the start of the project – to start by the end of the year – are entering their final stages, with the signing of the contract expected in a month or two, and companies from across the entire region can count on the first chamber services for helping in the digitalisation of operations and inclusion in dual education as early as the first half of next year,” says Čadež. The aim of this four-year project – to be implemented by the WB6 CIF with the financial and expert support of the Austrian Chamber of Commerce (WKO) and the Austrian Development

Agency (ADA) – is to strengthen chamber capacities and create a unique set of services for the six Western Balkan chambers for the most effective possible support to the economy in these areas. "In this endeavour, the region will rely on best European practises and Austrian knowhow, with a view to the model of the activities already conducted by the Serbian Chamber of Commerce with the assistance of Austrian partners,” says Čadež. What kind of specific support and what services can businesses count on? - In the field of digitalisation, a regional network of previously trained and certified consultants will be established to assist the region's economy, primarily SMEs, in the digital transformation process - in the devising of digital maps and strategies, and the implementation of technological solutions envisaged

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by these documents - in the same way that's already done by the Chamber of Commerce & Industry of Serbia's Centre for Digital Transformation. In the dual education segment, we will jointly create - and make available to businessmen throughout the region - a range of important chamber services for the best and most efficient possible involvement of their companies in the dual education of personnel. This implies, among other things, assistance in modernising existing education profiles and creating new ones for the jobs brought by contemporary digital operations. A tangible result of the project will be the establishment of an online regional training academy based on the model of the CCIS Business Academy. What kind of experience has Serbia had to date in conducting dual education and what jobs are carried out in that process and what kinds of services are provided by the CCIS? - Serbia was the first country in the region to introduce dual education, through projects with German, Austrian and Swiss partners, was the first to pass a law on dual education in secondary schools, and more recently became the first to legalise the inclusion of this educational model in university colleges. The number of students, schools, companies and dual educational profiles is increasing year on year. In Serbia at present, studies of 35 dual vocations include about 5,500 school pupils - about 3,500 older students, enrolled in previous years, and another 2,600 who began from first grade this year. They attend theoretical classes in 72 secondary schools, and gain practical knowledge and skills through work in around 880 companies, 280 of which opened their doors to students for the first time during this academic year. The process of accrediting companies is underway, which is one of the chamber's responsibilities, with the help of companies, in meeting requirements for accreditation. The CCIS provides support to businesspeople in creating or modernising education profiles, including digital profiles, participates equally in the creation of plans for enrolments in schools, organises training for instructors to work with students in enterprises and mediates in establishing cooperation with schools. We recently also established a web platform with complete information, guides and instructions on dual education for companies and pupils. Through this platform,

companies will be able to apply for instructor training, accreditations and statements of intent. Ever more companies have been coming to Serbia in recent times, including Austrian companies, that are interested in locating their R&D departments here. However, the experiences of individual companies show that there is already a lack of an available, high-quality workforce. Can Serbia intervene on this issue within a reasonable time frame? - The fact is that foreign companies that operate here are very

satisfied with the quality of personnel, especially highly skilled staff – their qualifications and academic education. This is one of the key arguments for companies from around the world when deciding to open their R&D centres in Serbia. An additional motive is provided by the tax incentive package for investments in innovation, research and development. However, Serbia, like Europe as a whole, is already facing the problem of a shortage of staff in some areas where demand is growing, such as IT, in which Serbia has top experts and products used around the world. The state's first response to this potentially much larger problem is to increase enrolment quotas in colleges that educate IT professionals, but also to increase the number of specialised IT departments in high schools. Classes in these departments are already being attended by around 800 pupils, who gain significantly better competencies in computer science and informatics, and are able to gain employment immediately after completing high school. This is simultaneously also a good base for future high-quality students of the IT departments of various colleges.

With the financial and expert support of the Austrian Chamber of Commerce (WKO) and the Austrian Development Agency (ADA), the economies of the region will work on the introduction of dual education and digitalisation

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Are Serbian companies ready to engage in digitalisation and to be partners of Austrian companies, considering that the results of research show that capacities and interest in shifting to digital operations remains relatively modest in the Serbian economy ? - That was a kind of initial picture that we are changing and in which we've achieved great progress in the last two years, which Serbia recently received recognition for from German Chancellor Angela Merkel. The activities of the Chamber of Commerce & Industry of Serbia and our Centre for Digital Transformation

e-commerce in various fields. Together with digitalisation experts from other European chambers, who are gathered in the Eurochambres Committee on Digitalisation, we are working to establish joint digital services that will be available to companies across Europe. At the end of September, Serbia hosted the first Eurochambres Digital Academy, which was enhanced by by the creation of the first Eurochambres joint digital tool, the starting point for which is the DigiPilot project – a French online platform for managing the digital transformation of companies. To what extent did these measures, which relate to education and digitalisation, impact on the overall trade and investment structure of the Austrian economy in Serbia? - Through Austrian projects to support dual education, and we are also working in cooperation with Austrian companies that already operate here, or those that have taken the decision to invest in Serbia, on developing education profiles based on their needs. Continuing practises from the previous academic year and this one, more than 130 pupils are being schooled for five professions and are gaining practical experience in nine Australian companies operating in Serbia in the fields of trade, transport and construction. We are thereby eliminating one of the constraints on the expanding of their operations, encouraging the faster realisation of planned investments and better export results. Simultaneously, by helping our companies to digitalise, we are also strengthening their competitiveness and productivity, as well as their ability to be even more reliable as suppliers and partners to Austrian companies. All of this also impacts on strengthening trade and investment cooperation between the two countries, which is recording continuous growth. We ended last year with more than a billion euros in mutual trade, and this year (according to data for the first seven months) that exchange has increased by 21 per cent, with Serbian exports to Austria – to which Austrian companies in Serbia contribute significantly – having increased by 33 per cent, while the deficit has halved compared to the same period of last year. This has contributed to the coverage of imports by exports reaching almost 90 per cent this year. Austria is highly positioned at the top of the list of foreign investors. Investments in the Serbian economy from Austria since 2010 have exceeded two billion euros.

By helping our companies to digitalise, we are also strengthening their competitiveness and productivity, as well as their ability to be even more reliable as suppliers and partners to Austrian companies

have contributed significantly to raising awareness about the need for digital transformation and the benefits it brings to companies, as well as to increasing the number of companies digitalising their operations. The Centre is focused on supporting SMEs in digitalising their operations faster and more efficiently – providing information, advice and education, proposing transformation and financing models, supporting the implementation of digital solutions, connecting them with those who possess knowhow, technology, instruments and funds. With the expert assistance of WKO, the CCIS Centre for Digital Transformation has formed a network of digital consultants in less than two years – with 43 digital transformation consultants trained and certified by WIFI. About a hundred micro, small and medium-sized enterprises have so far received consulting support in the drafting of digital maps and digitalisation strategies, and the first technological solutions envisaged by these documents will be implemented as early as this month. We've raised most chamber services and processes to the electronic level, while we're developing new digital products, such as the electronic application CCIS instant PAY, online platforms for support in the development of 18

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BRANKA PUDRLJA DURBABA, SENIOR MARKET DIRECTOR AT VIP MOBILE

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TODAY’S OPERATORS

Must Also Innovate

Company Vip has been constantly growing for the past several years, partly thanks to the fact that it operates within the A1 Telekom Austria Group. As a part of such a large international system, Vip mobile has access to the latest technologies and expertise, which enables it to deploy new services on the Serbian market quickly

ip mobile is the first company in Serbia to receive the Family Friendly Certificate, which enabled employees to maintain balance between their professional and private lives, as well as many other benefits. However, this isn’t the only area where this company is perceived as a positive example on the market, as that is also the case with projects that enable the development of services and technologies. Vip is part of the A1 Telekom Austria Group. What advantages does this connection bring to the local market and what are your plans for the period ahead? - Operating under the A1 Telekom Austria Group has impacted on improving the quality of Vip’s work, the formation of a simpler and more efficient structure, as well as the exchange of experiences relevant to the Serbian market. Today, operators can no longer afford the luxury of only being a provider of infrastructure and support; they must also innovate. Our users can already rely on our expertise and experience in implementing and applying various ICT solutions, and we will continue improving this segment in the period ahead.

of paramount importance from day one. Thanks to that, we today have more than 2.2 million of them. We are committed to projects that enable the development of services and technologies, and we recently became the first company to commercially launch the new VoLTE service, which offers crystal-clear audio during conversations, a longer range and connections two and a half times faster. There is always room for growth in new business models, new services, in partnership with other industries and through digitalisation. That’s why we’ll continue to develop in new and non-traditional roles as a content and digital service provider. Apart from this, we are also committed to our socially responsible projects, such as Vip Kinoteka, the Safe Kids platform and projects in the area of environmental protection, as an important aspect of our operations. Vip is also the first and only company in Serbia to have been awarded the Family Friendly Certificate for operations that are responsible to families. What does this certificate mean and how important is it? - People are our greatest corporate advantage. Services and packages can be copied, but the culture that we nurture at Vip is not easy to “adopt”. We are the first company in Serbia to receive the Family Friendly Certificate, because we’ve enabled our employees to maintain a balance between their professional and private lives, but also many other benefits. This certificate guarantees that our operations are family-friendly and is awarded by the Ekvilib Institute from Slovenia. Thanks to this, we find ourselves with the “best ones”; among top companies that operate in Europe’s most developed countries. Care for the families of employees contributes equally to their satisfaction and the success of the entire company, and such practises lead to positive changes in the wider community, and I sincerely hope Vip will be an example that other companies will follow.

We will continue to strive to be recognised as a leading innovator, particularly in the domain of digitalisation

Last year was the most successful year so far for Vip, but what will this year be like? Could you tell us more about the projects you’re currently working on? - Precisely. Vip has been constantly growing over the last few years and we are very satisfied with the results achieved. In 2019 we gained a market share of 24.6%, and in 2018 the company generated revenues of €249 million. This is another confirmation that today’s very demanding market recognises and rewards pioneers, innovators and those willing to invest their capacities and resources to change the market for the better. For us, our users and their needs have been

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INTERVIEW

ERIKA TEOMAN BRENNER, COMMERCIAL COUNSELLOR OF THE AUSTRIAN EMBASSY IN BELGRADE

AUSTRIAN COMPANIES Are Committed To The Market

Belgrade is increasingly becoming a regional centre of the Western Balkans for many Austrian companies that are taking advantage of their Serbian partners' in-depth knowledge of the region. This is just one of many positive developments in mutual economic relations

ustria has been among the leading home countries of investors in Serbia, but the profile of companies coming to the country has changed as the economy has grown. A strong pool of Austrian companies with a presence in the service sector has now been joined by medium-sized counterparts from the manufacturing sector. Furthermore, both Vienna and Belgrade are eager to establish closer cooperation in advanced technological sectors – says Erika Teoman Brenner, commercial counsellor at the Austrian Embassy in Belgrade.

Some statistics suggest that there are around 800 companies of Austrian origin operating in Serbia. What is the pace at which Austrian companies are coming to Serbia? - Austria is indeed a very important investor in Serbia, with an investment volume of around 2.5 billion euros. It is difficult for us to confirm the number of 800 companies, which seems a little high on the basis of our estimates. The important thing, however, is that when Austrian companies come to Serbia they stay – even during times when their businesses are not doing too well. They are committed to their investment but

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also, more than anything, to their staff, Potential and new investors movers”. Nevertheless, we also have manufacturing companies – most of their customers and their local communo longer see Serbia as a them medium-sized and probably not as nity. This is mainly due to the fact that the majority of Austrian companies are “low-tech” location. In most well-known as some of the “big names”. The largest investment in production family-owned and, as such, tend to focus cases, the availability of so far was implemented recently by on long-term sustainability and growth. qualified technicians and Zumtobel in Niš. We currently see interest in coming to Serbia among some manufacturing engineers is the No.1. companies – some of which have already What is the structure of the trade criteria for choosing a decided on a location, while others are exchange between Austria and Serbia still in the decision-making process. This like in 2019? location in Serbia process is often influenced by external - Exports from Serbia have increased factors, like suppliers’ demands and production processes. continuously over recent years, thus narrowing the trade gap between our two countries. This is a good sign for the competitiveness of Serbian producers, as well as for the Austrian companies are very much present in Serbia’s growing internationalisation of production chains in Serbia. service sector, whether that be through banks, insurance Despite this, frozen raspberries still represent the single companies or other service providers. What is the level of most important export from Serbia. investments in production? As regards imports from Austria, we see a strong demand for - We are very glad to see so many Austrian companies products like paper, pharmaceuticals, machinery and industrial as market leaders in the service industry. They were ofequipment. We also see that Serbia, in particular Belgrade, has ten actually the first in their field to come to Serbia, and increasingly become a regional centre of the Western Balkans have hence enjoyed the advantage of their status as “first

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Austria supported the introduction of a dual education system in Serbia, primarily because of investors from Austria. Was this policy measure enough to secure the supply of a high-quality workforce in Serbia? Those investments in manufacturing that are already - We are still running several activities to support the operational in Serbia originally came as “low-tech” manusuccessful implementation of the dual education system facturing. Are they upgrading their operations? in Serbia. The need of Austrian investors for qualified - There is definitely a trend among many companies to workers was the starting point for our project, in the sense that we identify trades in which dual education profiles are needed on the basis of their input. However, our support goes far beyond that. Just to give you an example, we bring expert trainers from Austria who spend a few days with Serbian trainers, showing them how to train students to handle real life situations in their professions. Furthermore, we helped with our expertise in the drafting of laws and by-laws in such a way that dual education can be implemented smoothly. We support a national campaign that aims to raise awareness of dual education among students and their parents. By doing all this, we hope that we can contribute - in the medium and long run - to improving youth employ“upgrade” their Serbian operations. We are involved in many We also know from our talks with ment in Serbia and simultaneously activities that extend beyond making Serbian businesses – both potential and new investors that they no longer see Serbia as a “lowdomestically- and foreign-owned – dual education and could tech”-location. In most cases, the more competitive. contribute to improving availability of qualified technicians and engineers is the No.1. criteria for youth employment in Serbia Links between Belgrade and Vienna choosing a location in Serbia. were strengthened recently by new and making Serbian exchanges of expertise. What, in your businesses – both You have also a significant investment opinion, does the future hold for this in an IT-company in Serbia that develcooperation? domestically- and - Belgrade and Vienna have always ops extremely advanced systems for foreign-owned – more enjoyed excellent relations – not least the European automotive industry. Is due to the high number of residents of it a unique example, or are Austrian competitive Vienna who are of Serbian origin. We companies thinking of setting up trust that recent initiatives to further strengthen these serious IT investments in Serbia? relations will be very fruitful, since there is great inter- The IT sector is definitely a very promising area for more intensive cooperation. Serbia is very fortunate to have excelest on both sides to focus more on creative industries, innovation, science and technology and start-ups. These lent universities and colleges in this field, and their graduates are all sectors that benefit from a large pool of incredibly can compete with the best at the global level. Although talented young people in both cities. Hence, I trust that in other Austrian companies are increasingly looking into new the future we will see more of them inspiring each other opportunities here in Serbia, the company you mentioned is in common projects. certainly unique in terms of its size, scope and level. for many Austrian companies, who take advantage of their Serbian partners’ in-depth knowledge of the region.

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SVETLANA STOJŠIĆ, REGIONAL MANAGER AT WIFI (WIRTSCHAFTSFÖRDERUNGSINSTITUT) INTERNATIONAL INSTITUTE FOR THE ECONOMIC PROMOTION OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBERS

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WIFI INTERNATIONAL: Exporting Austrian Educational Standards WIFI has been working for over 70 years to develop new offers on a continuous basis and opening up innovative educational pathways through its nine regional WIFI head offices and 80 local subsidiaries in Austria

IFI’s network today encompasses most countries of Eastern and Southeast Europe, as well as Asian, African and Arab countries, but also the CIS countries (Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova and Russia). WIFI supports companies by providing higher qualifications for their staff and Austrian educational know-how in respective local languages, as well as strengthening the competitiveness of companies in this region. The WIFI offer ranges from seminars and courses, to industry-specific education and training in both the White Collar and Blue Collar segments. In Central, Eastern and Southeast Europe, WIFI works on an estimated market potential of approximately 470 million inhabitants.

WIFI INTERNATIONAL: ECONOMIC PROMOTIONS WIFI International serves as an intermediary between companies of the Austrian economy and entrepreneurs and executives of local SMEs based in the Western Balkans and Ukraine, via offers of practise-orientated training on the topic of exports. WIFI International acts as a door-opener for international cooperation and promotes economic relations. As a rule, graduates come to Austria for study visits, where they gain contacts with equivalent sectors of industries and companies during meetings addressing cooperation.

ENERGY From Biomass

Polytechnik Luft- und Feuerungstechnik GmbH, building boilers since 1965, is one of the most important suppliers of energy systems for biomass fuels in the world and is renowned for manufacturing, planning and providing turnkey solutions. A one-stop-shop specialist for difficult tasks. The company offers energy systems in the range from 300 kW to 30,000 kW. Experience with > 150 fuels ensures the right solution from district heating to industrial energy needs. The systems can also be used for power generation, ranging from 200 kW to 20,000 kW of electrical power. Green Carbon, a patented solution for biocoal produc-

tion, is a newly released innovative solution, once again proving Polytechnik as a technology leader. A new CO2 negative, carbon sequestration method helping combat climate change while producing high value products. Innovation and research allow Polytechnik to reach the highest performance values in its class, guaranteed. The Austrian coat of arms, bestowed upon the company by the Republic of Austria, symbolises quality, stability and reliability. With offices in all parts of the globe, Polytechnik is constantly involved in all matters from biomass to energy. More than 3,200 Polytechnik systems are already 23 in use worldwide.

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WIENERBERGER

Road To Success Of Company WIENERBERGER Wienerberger is today the world's largest manufacturer of building materials, but it all started precisely 200 years ago on Wienerberg Hill, which is now part of the city of Vienna

ere in Serbia, Wienerberger d.o.o. (Ltd.) Kanjiža employs almost 300 workers. Taking care of employees, ensuring their satisfaction and good working conditions, and above all safety at work, is on the focus of the company's operations.

BEGINNINGS OF AN EMPIRE The company was founded by Alois Miesbach (1791-1857), who was born in Moravia. Schooled as an economist, he was also a civil engineer. During his studies in Rome, he learned about techniques used by ancient Romans to make bricks. He was 29 when, in 1819, he decided to open the first brickworks, where he produced around 1.5 million bricks in just a year. He opened a new factory in Maidling three years later, and by 1855 he'd already amassed nine brickworks. As a result of the expansion of operations, Miesbach continued increasing the company's capacity, creating the largest brick factories in Europe during that time. The company has already entered the construction sector by then, constructing numerous buildings in and around Vienna. MANAGING THE COMPANY It was back in 1857 that Heinrich Drasche, Miesbach's nephew, took over the management of the company and continued its expansion. The result of the expansionary policy was an increase in the amount of bricks produced, reaching 188 million by 1869, then came the expansion of the product range to encompass ceramic tiles, clay ornaments, pipes and bricks, mining, canal digging and the construction industry. PUBLIC ENTERPRISE That same year saw the Austrian part of the company become a public enterprise under Drasche's leadership, with Wienerberger among the first Austrian companies to have its shares listed on the Vienna Stock Exchange. Alongside the anniversary of its founding, the company is this year also celebrating 150 years of being listed on the stock market. 24

INNOVATION Drasche was the first owner of a brickworks to introduce so-called circular kilns, oval or round structures, to Austria in the 1860s, which baked the clay at temperatures of around 1,000°C. He was also among the first industrialists to increase social benefits and construct housing for employees. NEW STRATEGY AND EXPANSION – ENTERING THE INTERNATIONAL MARKET Wienerberger's route changed in the early 1980s, when a new management team began restructuring operations and developing a new expansionary strategy aimed at achieving a leading position on the European market. Another significant landmark moment is linked to 1986, when the company took over Germany's Oltmanns-Gruppe, with more than 200 factories, and became one of the leaders of the European brick market. The company simultaneously expanded its operations to other areas of manufacturing, such as ceramic pipes, and in 1989 opened a new company, Pipelife. Wienerberger became the largest industrial group in Austria, making several important acquisitions in the 1990s, including that of Semmelrock, which specialises in paving systems. CONTEMPORARY TRANSFORMATION – FOCUS ON CONSTRUCTION MATERIALS It was during the last year of the last century, with the acquisitions of General Shale Inc. in the U.S. and ZZ Wancor in Switzerland, that Wienerberger started heading towards the top of the world list. It purchased company Mabo, through Pipelife, thereby also shifting its focus to the Scandinavian markets, while the acquisition of Tondach Gleinstätten AG and the introduction of ceramic tiles to Wienerberger's portfolio proved yet another successful move. Wienerberger entered the Serbian market in 2006, with Porotherm clay building blocks, Tondach clay tiles and Terca facade bricks. Wienerberger d.o.o. Kanjiža's plans are to constantly improve business processes, create added value for products and systemic solutions that are offered on the market.

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WIENERBERGER

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SKYLINE BELGRADE, SERBIA – Living The Highlife With Porotherm Amazing mixed-used complex in Belgrade city centre

he iconic Kneza Miloša Street deserves a landmark ending that would become a place for everyone in the city to recognise and enjoy” Project Architect, Ami Moore, a famous Israeli architect and the creator of projects implemented in more than 30 countries around the world. He is well-known to the Serbian public as the architect of Delta City shopping malls in Belgrade and Podgorica. Skyline Belgrade, as a complex comprising three towers – a central business tower and two residential towers, will provide its future tenants with quality and safety at the very heart of central Belgrade, in the famous Kneza Miloša Street. Project investor AFI Europe has been present on the Serbian market since 2005 and and has proven with already completed projects - including the iconic Airport City Belgrade and Central Garden developments. The exclusive sale of apartments has been entrusted to Serbia's leading real estate consultancy, CBS International, part of the Cushman & Wakefield Group. Skyline Belgrade represents a 68,000sq m multi-use commercial and residential complex. The project encompasses 34,000sq m for residential use, 4,000sq m of retail space and 30,000sq m set aside for commercial spaces. The project Skyline Belgrade represents a unique complex, with an impressive size and in a prestigious location – in the area of the capital that's known for its numerous diplomatic institutions. In the first construction phase, Skyline Belgrade offers 134 apartments ranging from one-bedroom to four-bedroom apartment. Project realization is very fast and at this moment 80% of tower A is already finished, while the first residents can move in by the end of the year. Wienerberger System was selected by the Skyline investor and architect for the wall segment, to fulfil high quality and future living standards. WIENERBERGER BUILDING SOLUTIONS ARE REPRESENTED IN THE PROJECT FROM: Exterior walls – Porotherm 20 S Partition walls between flats – Porotherm 25 AKU Partition walls – Porotherm 11.5 Profi & Porotherm 10 Profi build with Dryfix.Extra

All Porotherm products are made from natural clay and contribute to increased energy efficiency by providing the most natural form of insulation. Clay, as a natural building material, also creates a very healthy and pleasant environment, producing natural humidity regulation in rooms. The benefits of such a system are that rooms are naturally ventilated, pleasantly cool in the summer and warm in the winter. In addition to all of this, natural clay blocks have good anti-seismic characteristics and Wienerberger Porotherm S bricks provide supreme seismic characteristics. Special acoustic blocks retain all the positive characteristics of clay and add excellent sound insulation, which is becoming ever more important for urban living. Clay blocks are a sustainable and fire resistant material that lasts almost forever. From this perspective, the investor and architect of this project at the heart of Belgrade, fully supported by the Wienerberger Technical Sales department in Serbia, decided to use Porotherm solutions from the initial stage. Wienerberger's support didn't only include technical expertise from the company's team, but also a live demonstration of the Porotherm system itself. A special focus was placed on the creation of superior living standards, energy savings and acoustics. The Wienerberger Acoustic system with Porotherm 25 AKU was certified by the Serbian Institute for materials and, as such, has superior characteristics on the Serbian market. Porotherm Profi ground brick solutions with Dryfix were chosen due to their thermal properties, fast bricklaying process, reduced labour costs and the fantastic flatness of wall surfaces, which have a huge impact on reducing the consumption of plaster. Wienerberger provides constant support on the construction site, in order to enhance the customer experience and the satisfaction of the investor, architect and construction company. 25

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WIENERBERGER

Through Listening To Needs To THE PERFECT CLAY TILE LOOK!

rchitects have long since stopped viewing sloping roofs solely through their unsurpassed functionality and now refer to it as the “fifth facade”. As inspiration for this product, company Wienerberger asked architects, in Serbia and all across Europe, what kind of “fifth facade” they would like. Consideration of their responses led to development of the Tondach Inspira clay tile. Following comprehensive analysis of the responses, trails and presentations of test models to the region's most prestigious architects, impressions were summarised and the final Tondach Inspira product was produced, which was proudly presented recently on our market. A completely innovative design, sporting extremely modern lines with high functionality, all aimed at raising the appearance of roofs to an entirely new level. With building standards constantly rising and the needs and ideas of architects and investors becoming ever more creative, Wienerberger was faced with an extremely challenging task. According to company representatives, only the highest quality clay tile, with a modern design and high-tech process, can make something completely new and unrivalled. An entire team of experts from Wienerberger worked on developing the Inspira tile and the result wasn't lacking. Perfectly straight lines on the roof, with minimalist modernism, represent an absolute trend around the world and in our country. The tile's dark shades enable architects to play

creatively with the complete design of a building. The combination of these shades and the modern tile shape, along with interesting lighter shades of facades, serve to create a structure that won't leave anyone feeling indifferent. If you also use the Terca facade brick or brick slip for the design of your facade, the effect you create will be truly amazing. First and foremost, there is no limit to your creativity. Increasingly modern low sloping roofs don't pose a problem for this tile. With a Tondach roof substructure with special requirements, created to high quality specifications, this tile is suitable for a roof with a slope exceeding an angle of 200 . Take advantage of the possibility of utilising additional living space in the loft area. On the other side, we mustn't overlook the fact that the basic function of a roof is to protect the building and to last for decades. That's precisely why Wienerberger has not abandoned its basic guiding principle - QUALITY! With the Tondach Inspira tile, engineers have taken care to ensure it meets high standards of hardiness, durability and functionality. Sliding battens makes it very convenient to install and replace, while its dimensions and lightness contribute to the simplicity of installing, ensuring that it won't be a problem for contractors to complete the roof very easily and quickly. Read more about this model of tile at www.wienerberger.rs

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IVAN VUJISIĆ, SALES AND MARKETING DIRECTOR, WIENERBERGER D.O.O. KANJIŽA

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PROUD

Of Our Solutions Wienerberger d.o.o. Kanjiža is part of the world's largest manufacturer of building materials and its obligation is to always have something new for the market, which is what the company has been doing every year. This is why it has new products and services planned already for 2020

ood business results go together with product innovation. Sales and Marketing Director at Wienerberger, Ivan Vujisić talks about the company's product range and its advantages.

Wienerberger brings something new and special to the Serbian building material market. Are you planning on developing new products? - In 2019, in cooepration with architects from Serbia and Europe, we have introduced new, modern-designed roof tile Inspira. It is a strong but lightweight clay roof tile that architects adore. We also have the top quality ancillary equipment and technical support, with the aim of making sure that an entire roof lasts as long as the Tondach tiles. Our special solution for roof to chimney, Koraflex Plus, was introduced in 2019. Building in line with the DryFix-free mortar system using our Profi Porotherm clay blocks is something that's quite popular on the market, as are our AKU 25 sound solutions. Tondach clay tiles, Continental Plus NATURA, are the winner of the Nova Vizura Award that we received at the 2018 SEEBBE Construction Fair in Belgrade. The tile has higher resistance and durability associated with natural clay, which - thanks to the application of new technologies - will last for decades. The best validation of our achievements is the fact that our competition is trying to copy our products, sometimes even their names, but this is the destiny that we, as the market leader, gladly accept. This is why we have new products and services planned already for 2020.

houses, we have compared numerous concepts of house construction with different building technique systems. It is important to say that if you use our recommended products in building walls, you can achieve all the energy requirements related to low-energy houses (LEH) without requiring additional insulation. Our most popular products are definitely Porotherm 25 IZO Profi and Porotherm 38 Profi blocks, which meet the current energy standard and don't require additional thermal insulation. Of course, we have products that are of exceptionally high standards made for our e4 concept, like the unrivalled Porotherm 50 IZO Profi clay block. Can you tell us more about your many smart clay solutions? - Special construction solutions using the Porotherm system ensure a healthy climate, excellent sound protection and safety, as well as maintaining the investment's permanent value. In addition to thermal insulation, I would also mention the sound solution of our Porotherm 25 AKU block. All you need to do is line it with bricks and you'll have noise protection in line with the required standards.

All our other certified products and systems provide solutions to the most demanding situations

How much energy can be saved through the use of your building materials? Which Wienerberger product is the most popular? - In cooperation with independent experts for passive low-energy

You are getting ready for the 2020 Brick Award. Could you elaborate on this award that you give out and competition terms? - The Wienerberger Brick Award, which we have been giving out since 2004, is an architectural award presented every two years for outstanding examples of modern and innovative architectural solutions using bricks. In 2020, Wienerberger will present the new cycle of competitions for the ninth consecutive time. Architects, critics and architectural journalists can apply with their projects online. In 2018, nearly 600 projects from more than 50 countries were submitted for award consideration. Ceramic products must play a significant role in the project, ranging from clay blocks to facade bricks, tiles or clay pavers. The use of Wienerberger products is not a mandatory requirement for participation. 27

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ECONOMY

ROBUST INDUSTRY & Strong Service Sector

Austria has a highly developed market economy, with strong industrial and service sectors, a skilled labour force and a very high standard of living for its population. Export is regarded as vital to the Austrian economy, while – with an average per capita GDP of about $55,000, as of 2017 – Austria ranks among the richest countries of the European Community

ustria is one of the most stable and robust European member states, with a diverse and healthy economic system. The most significant industries in Austria include construction, electronics and electrics, tourism, food and beverages, logistics and transportation, and the automotive and chemical industries, as well as steel and mechanical engineering. Austrian industry comprises mainly small and medium-sized enterprises, yet Austria's industrial sector is nonetheless among the world's largest: industrial production increased nominally by 28 per cent between 1995 and 2003, to reach a total volume of €90.9 billion, while industry grew by 6.5% in 2017. Back in 2003, the mechanical and steel industry - with €11.4 billion - was the greatest contributors to Austria's total output, followed by the chemical industry (€10.6 billion) and the electrical and electronics industry (€10.2 billion).

Austria's top-ten export commodities account for twothirds of the entire export volume. Most exports go to other EC countries, predominantly Germany, while about 15 per cent of Austrian products and services go overseas. The service sector also accounts for some two-thirds of total GDP of €232 billion. Trade and industry make up about a third of GDP, while agriculture contributes two per cent. As noted, trade with other EU countries accounts for almost 66 per cent of Austria's total trade exchange. Expanding trade with and investment in the emerging markets of central and eastern Europe is a major element of Austrian economic activity. Trade with these countries accounts for almost 14 per cent of Austrian imports and exports, and Austrian firms have sizeable investments in and continue to move labour-intensive, low-tech production to these countries.

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Based on the available data, companies and investors from Austria have been very active in mergers and acquisitions (M&A). Statistics shows that more than 7,183 mergers & acquisitions were recorded between 1991 and the present day, with these transactions having a total value of €261.6 billion. There were 245 M&A deals made in 2017, with a total value exceeding €12.9 billion. This number includes both domestic and international deals, with Germany being the most important partner. To date, a total of 854 German companies have been acquired by Austrian parent companies (outbound). The industry with the largest M&A activity in Austria, in terms of transaction value, has been the financial sector, while the industry with the largest number of transactions has been industrials – representing 19.2%. Austria can draw on an abundance of resources, with its own natural resources of iron ore, non-ferrous metals, important minerals and soils. The constant growth of the industrial sector, however, increasingly requires supplementary imports. This is also true of fuels, energy resources and the electricity-generating industry. Austria has its own sources of petroleum and natural gas, while the generation of hydroelectric power is constantly being expanded, making Austria the leader in the field of hydroelectric power within the EU. About a third of Austria's energy consumption is covered by the national energy industry. Up to 70 per cent of energy comes from renewable sources, such as water. Alongside water, wood plays an increasingly important role as a renewable source of energy. About a sixth of Austria's three-million-strong wage and salary workforce is employed in the trade and industry sector, which contributes some 13 per cent to the country's GDP. Tourism is the country's biggest foreign exchange earner and the fastest growing sector: 220,000 people in 40,000 tourist establishments generate 10 per cent of Austria's economic output. Some 131 million guests had overnight stays in Austria in 2012. In Austria, 7.5 million hectares of land are used for agriculture, with cattle farming contributing 30 per cent to the agricultural value-added business. Austria boasts an incredible 18,500 organic farms that add to the country's reputation as Europe's deli shop. In the field of agriculture, Austria is witnessing a strong trend towards organic farming – with an overall share of 22 per cent, organic farms in Austria occupy a leading position among EU member states. It is also noteworthy that 47 per cent of Austria is forested. Among insiders in the wine business – and despite being only a small wine growing country – Austria has gained an excellent reputation for producing some top-rated wines. About 32,000 wineries produce an average of 2.5 million hectolitres of wine annually. Austrian wines are produced mostly from Riesling and Gruener Veltliner grape varieties, while Sauvignon Blanc grapes are also used. Austria's white wines receive most of the attention, but the reds are also excellent. Austria is world-famous for its arts and crafts, most notably fine

handcrafted items, customised jewellery, ceramics and glassware. As one of the most prosperous and stable EU member states, Austria offers investors ideal conditions. The Austrian economic system can be characterised as a free market economy with a strong social focus by also taking into account the weaker members of society. Austria also features a tried and tested system of economic and social partnership, which has traditionally played a strong and reconciliatory role in wage and price policies. In the global-political arena, Austria is increasingly becoming an international meeting point, which is illustrated by the large number of summits and conferences held in the country. At the same time, the country's relevance as a vital transit country between Europe's different economic areas is increasing, especially for European energy supplies, including petroleum, natural gas and electricity. Austria's fiscal position compares favourably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017, while public debt fell again in 2017, to 78.4% of GDP, after reaching a post-war high of 84.6% in 2015. The Austrian government has announced plans to balance the fiscal budget in 2019. Several external risks – such as Austrian banks' exposure to Central and Eastern Europe, the refugee crisis and continued unrest in Russia/Ukraine – eased in 2017, but remain factors for the Austrian economy. additional risks are also presented by exposure to the Russian banking sector and a deep energy relationship with Russia. According to the country's central bank, Oesterreichische Nationalbank, Austrian economic growth strengthened in 2017, with GDP increasing by 2.9%. Austrian exports – accounting for around 60 per cent of the country's GDP – were up 8.2% in 2017. The same year saw Austria’s unemployment rate fall by 0.3%, to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labour market. Austrian GDP was estimated at $417.4 billion in 2017, with agriculture contributing 1.3%, industry 28.4% and services 70.3%. The pace of growth has slowed in Austria since the spring of 2018, though it still reached 2.7% for 2018 as a whole – representing the highest increase since the recovery immediately following the financial crisis of 2011. Still buoyant global trade boosted Austrian exports. Together with the domestic economy, economic growth was once again above average compared to the rest of Europe, driven by continued strong investment activity and the strongest levels of consumption in over a decade. The slower pace of the global economy is responsible for the more moderate growth forecasts for the Austrian economy in the second half of 2019 and in 2020 compared to 2018. Momentum in exports is set to remain modest in the second half of 2019, despite initial signs of global trade stabilising. However, driven by private consumption, domestic demand is expected to provide sustained growth of 1.4% in 2019 and 1.3% in 2020.

Expanding trade and investment in the emerging markets of Central and Eastern Europe is a major element of Austria's economic activity

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INTERVIEW

ADRIEN FEIX, DIRECTOR OF THE AUSTRIAN CULTURAL FORUM

BROAD & OPEN Dialogue

“The most effective way to accompany Serbia on its way to the EU is through cultural exchange at eye level – no amount of financial support can replace that” says Austrian Cultural Forum Director Adrien Feix

he new director of the Austrian Cultural Forum in Belgrade, Adrien Feix, kindly responded to our request that he convey his first impressions of Belgrade to CorD readers, but also announce projects that will help to further advance the already successful cultural cooperation between Austria and Serbia. The Austrian Cultural Forum in Belgrade opened under the auspices of the Austrian Embassy in 2001, tasked with promoting the culture of its country through contemporary and innovative projects with lasting significance. It

has maintained a prominent presence throughout Serbia since then. Here we will mention as examples only that this July, thanks to the Austrian Cultural Forum, residents of Niš enjoyed screenings of Austria’s best short films, while Pančevo recently received a new mural that was painted by Austrian artist Manuel Skirl. Is this your first encounter with Belgrade and Serbia? What are your expectations of the region in which you’ll spend the next few years?

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By Sonja Ćirić

Serbia allocates the lowest percentage of its national budget to culture in the region, while at the same time we have the impression that people from these parts have very high awareness of the importance and significance of culture. How would you comment on this imbalance? - I am neither entitled nor sufficiently qualified to judge budgetary priorities in Serbia, but, generally speaking, money spent on education, culture and science is not only intrinsically valuable, but nearly always also a worthwhile investment, because it paves the way for innovation, investment and tourism. This is especially true for Serbia, where there is already Generally speaking, a high awareness of the importance money spent on education, of both the rich cultural heritage and culture and science is not only vibrant contemporary scene.

- This is indeed my first encounter with a country I had previously only read about and worked on based in Vienna. My expectations were already high – unique history and culture, welcoming and open people, excellent cuisine – but since the first few days, I felt that they would be surpassed. What also impressed me is the cultural diversity within the country, which I am looking forward to discover during my travels. Of course, there is also one major difficulty, which consists of mastering the language – at least to the point of being able to work with it.

The website of the Austrian Embassy states that the emphasis of the work of the Austrian Cultural Forum is on contemporary and innovative projects, as opposed to the works intrinsically valuable, but Cultural contact between two counof authors who are trademarks of nearly always also tries is also dependent on their Austrian culture: Mozart, Strauss, a worthwhile investment, political contacts. How do you overSchubert, Mahler, Klimt, Kokoschka, come this kind of obstacle? Schiele, Rilke, Handke, Jelinek etc. because it paves the way - It is absolutely true that the Austrian Why is that? for innovation, investment Cultural Forum builds upon a broad - The main idea behind this is to innetwork of contacts in arts, cultural crease the visibility of aspects of and tourism management, science, business – Austrian culture that are not already political ones are no exception, and the current excelwell-known and commercially sustainable in Serbia. This lent political relationship between Austrian and Serbia is not to say that Mozart or Schiele are outdated or iris certainly helpful. But I would frame the relationship relevant, but they no longer need our support, whereas somewhat differently: it is cultural exchange that is crucial this support can make a difference for young Austrian to a good political relationship. Culture and science lay musicians, visual artists, filmmakers or poets. An adthe foundation for everything else, not politics. ditional benefit of focusing on culture in the making is that it leads to an exchange between the respective art Here in Serbia, the Austrian Cultural Forum isn’t only scenes, which has more of a long-term effect than simply present in Belgrade, but rather also in other cities – this displaying old masterpieces. What would you personally like to recommend to our public from contemporary productions of Austrian culture? - First and foremost, follow our social media presence, where we showcase a wide array of contemporary aspects of Austrian culture. Regarding film, it is worthwhile to follow the programmes of the two Austrian main film festivals (Viennale and Diagonale). Regarding music, people should listen to the selection of promising musicians in the “New Austrian Sound of Music” programme. In terms of visual arts, the “curated by” gallery festival in Vienna is one of the many interesting events to follow, also at a distance. And, on a really personal note, I very much enjoy the current electronic and instrumental hip-hop scene in Austria and would also recommend researching Austrian contemporary and sustainable architecture, which is for example very innovative in the western province of Vorarlberg. 31

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is so extensive that I don’t even want to attempt a summary here. It is remarkable that the relationship was based on interactions between artists and intellectuals (e.g. Vuk Karadžić, Jovan Cvijić, Paja Jovanović, Milutin Milanković, Bogdan Bogdanović and Milo Dor), which explains why it proved so resilient. Perpetuating the tradition of grassroots exchange, many Serbian students, intellectuals, artists and scientists currently study and work in Austria, often moving back and forth between both countries, further strengthening our ties and continuing to enrich both of our cultural legacies. Since Serbia has become a full member of Erasmus+, I expect the exchange in both directions to intensify over the coming years.

summer, for instance, a series of It is cultural exchange that Austrian short films were screened is crucial for a good political in Niš, while a mural of artist Skirl adorned a wall in the city of Pančevo relationship. Culture and – demonstrating unambiguously the science lay the foundation for view that culture isn’t an elite category. Could you comment on this? everything else, not politics - It is quite natural that culture tends to develop more rapidly and vigorously in certain areas, Despite having only just taken on your new post, could mostly in large cities. However, it seems to me that you tell us about any upcoming programmes of the excessive centralisation and the subsequent formation Austrian Cultural Forum for the season ahead? of closed artistic bubbles in capital cities is problematic, - Firstly, I will focus on consolidating the excellent probecause it severs the connection between a large majority grammatic work of my predecessors and build upon the of the population and art. experience of my team, especially in the areas of visual At our level, we try to counter this tendency and also arts, music and film. Secondly, in line with your previous bring Austrian contemporary productions to places where question, we will strive to further increase our presence they would not usually be shown. Skirl is a great example, also outside Belgrade, Novi Sad and Niš. Thirdly, we will because he actively tries to engage a public beyond the work to make already existing excellent cooperation usual street art scene and has developed a universal that’s largely unknown – especially in science – visible graphic language, which works in Pančevo in the same to the general public. way as it does in Prague or Vienna, and can appeal to all Finally, as more of a long-term endeavour, I believe social and ethnic groups. that, together with other European cultural institutes, we must instigate a broad and open dialogue with the Serbia and Austria are countries with contrasting geoSerbian people on our European heritage and destiny. political and historical realities, but do they still share The most effective way to accompany Serbia on its road something in terms of their cultures? to the EU is through cultural exchange at a high level – no - The cultural and scientific exchange between Serbia amount of financial support can replace that. and Austria dates back to at least the 18th century and 32

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INTERVIEW

BARBARA HOREJS PH.D., DIRECTOR OREA INSTITUTE FOR ORIENTAL AND EUROPEAN ARCHAEOLOGY OF AUSTRIAN ACADEMY OF SCIENCES

NEOLITHIC

Way Of Life

An Austrian-Serbian archaeological team has proven at a site near Lebane that the Balkans represents a key-zone for understanding the past of the European continent, especially of central Europe and modern-day Austria

ast September, as part of an international research project called the Pusta Reka Project, archaeologists from Austria and Serbia began uncovering the story of European history in southern Serbia, at the Svinjarička Čuka archaeological site near the town of Lebane. The project’s partners are the Institute for Oriental and European Archaeology (OREA), the Austrian Academy of Sciences, the Belgrade Archaeological Institute and the National Museum in Leskovac. Their aim is to perform detailed analysis of the Leskovac Basin, which is believed to have been a hub a human

interaction throughout various periods of the human past. This cooperation is the reason for a series of six lectures that have been held since mid-September at the Austrian Embassy in Belgrade, in collaboration with the Austrian Academy of Sciences. The first lecture, entitled “The Beginning of History - The Balkans as a Prehistoric Bridge between Asia Minor and Europe”, was preformed by CorD’s interlocutor Professor Barbara Horejs, Director of the Institute of Oriental and European Archaeology (OREA), Austrian Academy of Sciences, and Head of Excavations at Svinjarička Čuka, and professor Sofija

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By Sonja Ćirić

OVERVIEW OF THE EXCAVATION TRENCHES AT SVINJARIČKA ČUKA 2019 (PHOTO: M. BÖRNER/OREA)

Stefanović of the Biosense Institute, University of Novi Sad Department of Archaeology, and the University of Belgrade Faculty of Philosophy. The first question that arises in the mind of a layman when he hears that Austrian scientists are exploring archaeological sites in southern Serbia is – how come Central Europe is interested in prehistoric times on the territory of the Balkans. Is this way of thinking mistaken? - The reason for our research is related with the essential developments in southeast Europe influencing central Europe in almost all steps of human history. The Balkans represents a cultural zone with a great impact on the European continent over several millennia. Analysing the crucial steps in European prehistory, such as sedentism, new economies or new technologies (e.g. metallurgy) is always linked with the Balkans, where they start first. Understanding the complex process behind these enduring and sustainable changes requires analyses of how, why and where past societies invented, adopted or modified new ways of life. Therefore, the Balkans represents a key-zone for understanding the past of the European continent, especially of central Europe and modern-day Austria.

structures from the early to mid Neolithic period (c. 6000-5600 BC), from the mid and late Bronze Age (c. 2000-1100 BC) and the early Iron Age (c. 1000-800 BC). The new site of Svinjarička Čuka shows a recurring occupation of prehistoric communities starting from around 8,000 years ago. The neighbouring famous Caričin Grad (Justiniana Prima) from the early Byzantine period (6th century AD) is therefore embedded in a cultural landscape exploited by humans for many millennia previously. What proved that the discovery was a prehistoric settlement; how did people live there? - Prehistoric archaeology represents a field of research strongly linked with a bundle of other (natural and life) sciences, such as genetics, anthropology, botany, zoology, geography, chemistry, mineralogy, climatology etc. All kinds of excavated remains are analysed by an interdisciplinary team of experts to provide detailed information. For example, the remains of carbonised crops (emmer, wheat) have been dated with the radiocarbon method (C14), which is scientifically proven to give us exact dates for archaeological remains. We therefore know that the lowest levels we could excavate so far are 7,600 years old. Further cultural layers of 0.80m underneath are attested by core drillings and are expected to go back to 6200 to 6000 BC (radiocarbondating of the core charcoals). The first settlers at the site practised agriculture by means of farming and herding domesticated animals. Our data demonstrates the field farming of wheat, emmer, einkorn and pulses.

Bridging diverse cultural regions, instead of closing long-established communication routes between the Balkans and central Europe, would be another lesson to learn from the past

Exploration of the ‘Svinjarička Čuka’ archaeological site near Lebane began in 2018. What have you uncovered to date? - Our excavations revealed the remains of several prehistoric periods on this small elevated river terrace. We found various

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RECOVERING OF THE FINDS WITHIN THE NEOLITHIC ACTIVITY ZONE INCLUDING MASSIVE STONES, TOOLS AND A BROKEN FIGURINE (PHOTO: F. OSTMANN/OREA)

BROKEN, BUT COMPLETELY PRESERVED VESSEL UNDERNEATH A COLLAPSED WALL (?) DATING TO THE NEOLITHIC PERIOD (PHOTO: F. OSTMANN/OREA)

The nutrition of this early Neolithic comThe communication between of the first sedentary communities in Europe. The Balkans plays a key munity, with domesticated sheep, goats, mobile hunter-gatherers, first central role in understanding how, when and pigs and cattle, was complemented with farming communities and why the transformation from mobile the hunting of wild species like red deer, hunter-gatherers into farmers and wild boar, roe deer, ibex, badger and fox. their neighbouring regions herders living in permanent villages These Neolithic farmers, herders are of particular interest in our took place. and hunters produced their own texMany basic elements of the new tiles (attested to by production impleresearch project, in order Neolithic life are long-lasting and have ments), jewellery (beads) and all kinds to analyse the process impacted on the globe (and climate) of household work. The community of of migration, innovation, to this day, such as the dependency of the Svinjarička River terrace was very modern societies on industrial agriculexperienced in the management of adoption and adaptation ture, ongoing tendencies to urbanise or available resources, of which workable source management strategies. stones and minerals are of special importance in the Neolithic Most Neolithic innovations spread side-by-side into (Stone Age) period. The accessibility of good-quality sources other world regions, where mobile hunter-gatherers are of cherts (flint-stone) in the direct vicinity of the site might partially evident. This so-called “Neolithic package” most be one reason for the first pioneers occupying this region probably came with groups of people seeking new land. around 8,000 years ago. Another important aspect is repreOur research hypothesis of small-scale migrations from sented in the fruitful environment, which presumably offered Anatolia and the Aegean regions into the Balkans is based a suitable landscape for early agriculture under appropriate on a bundle of facts and data: conditions. Both elements – sources or raw materials and Particular new technologies, such as ceramic-vessel environmental conditions – are key to understanding the production or distinct modes to produce stone tools (somovements of people to new lands. called pressure technology), are discussed as being linked with the dispersal of the first Neolithic farmers. The farming How people communicated and spread the Neolithic culof cultivated crops and herd management are essential new ture back then is among the questions that the research at skills embedded in a broad package of knowledge. Not least, ‘Svinjarička Čuka’ is expected to answer. the cultivated and domesticated new species are related - Our research project, funded by the Austrian Science Fund to humans and would hardly have moved by themselves. (FWF) and the Austrian Academy of Sciences, is dedicated Recent aDNA studies support the migration model in both to uncovering the spreading of the Neolithic way of life to the relations of human and animal DNA of the Balkans with the European continent. The current facts and data of world their ancestors in the Near East and Anatolia. archaeology demonstrate that, to date, the oldest farmers and The link between mobile hunter-gatherers, first farming herders in Europe are attested on the Greek mainland and on communities and their neighbouring regions are of particuthe Balkans. All other routes of the Neolithic dispersal from lar interest in our research project, in order to analyse the the Near East via the central and western Mediterranean are process of migration, innovation, adoption and adaptation. slightly later and not related directly to the establishment 36

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In mid-September, a series of six lectures on the Balkans as a bridge between Asia Minor and Europe began at the Austrian Embassy, with the objective of showing that interconnectivity between people from that part of the world has existed since prehistoric times. What should we learn from their example? - From my perspective as a scientist, I would rather stress the general phenomena and process related with the attested connectivity between the Near East, Anatolia, the Balkans and the inner European continent, instead of highlighting single events. Generally speaking, most of the essential developments in human history started in the Near East and Anatolia, some also in the Balkans, which plays a crucial role in inventing and transmitting the main steps of humankind into Europe. Migrations of people formed a crucial part in the spread of new civilisations over millennia, of which central Europe mostly received innovations, technologies, knowledge and skills. The connectivity of communities living in different ecological and economic zones formed the framework of a dynamic and fruitful intellectual environment, where new ideas, concepts and adaptation processes took place. Connected groups and communities were establishing stable communication networks lasting hundreds or even thousands of years only within a favourable environment. Creating such stable environments to enable the positive dynamic of connectivity would be one aspect that our modernday society could learn from the past. Border-crossing networks were successful over millennia by means of developing new technological, social and cultural practises to face past challenges (such as climate change). Bridging diverse cultural regions, instead of closing long-established communication routes between the Balkans and central Europe, would be another lesson to learn from the past. The ‘Svinjarička Čuka’ site has brought together scientists from Austria, Germany and Serbia. In your opinion, is cooperation among European archaeologists at an enviable level in terms of quantity? - As the history of science in the 19th and 20th centuries demonstrates convincingly, successful research is always international and not limited to distinct nationalities or even continents. The high degree of specialisation in distinct research fields nowadays requires international collaboration, which is additionally requested by our scientific community’s regularities and the international competition in excellent research programmes. When we initiated collaboration between the OREA institute of the Austrian Academy of Sciences and Serbian partners at universities, museums and research institutions in 2017, I was surprised that we were the first Austrian-Serbian mission in archaeology so far. The same can be stated for our collaborations with North Macedonia or Bosnia-Herzegovina. We confronted this lack of collaboration among Austrian scientists and part-

AUSTRIAN-SERBIAN TEAM OF THE 2019 EXCAVATIONS AT SVINJARIČKA ČUKA (PHOTO: F. OSTMANN/OREA)

ners from the Balkans by developing a “Balkan Archaeology” focus in our research programme at the OREA institute, in order to initiate new projects, support young scholars from various countries of Southeast Europe and establish new and broad collaborations. Our Balkan Archaeology programme is quite successful, which is already visible in the new scientific networks and project outcomes of the last few years (books, exhibitions, scholarships etc.). Exploration of the site near Lebane is planned to last for several years. What other discoveries are expected? - We hope to find further and large undisturbed cultural layers with the remains of early farmers dating back to the pioneering phase of the first settlers, around 8,000 years ago. So far we’ve only been able to identify their traces in small areas, which did not include constructed dwellings. The lack of solid built architecture in the early phases of the Neolithic period in the central Balkans is astonishing and requires further scientific analyses. Our future excavations are expected to show whether we are in fact lacking remains of housing structures (or even the clustering of dwellings into a village system) or if archaeological data can provide other explanations for this gap. We additionally hope for good archaeological contexts to analyse past climatic conditions, the practises of farming, herding and hunting, the management of resources and exchanges of raw materials. Artefacts and objects embedded in good contexts would offer the chance to analyse innovations and technologies in various aspects; the latter is expected to shed new light on the cultural process of adoption and modification, as important factors in the spreading of innovations. Nevertheless, we will only know after removing the earth and soils, and I hope that our Austrian-Serbian mission will be lucky in future campaigns. 37

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FLOATING STAGE IN BREGENZ

AUSTRIA’S CULTURAL WEALTH

Theatre’s

CREME DE LA CREME In Austria there were 6.09 million tickets sold for more than 15,000 theatre performances in the 2014/2015 season. With just over 8.5 million inhabitants, this is categorical evidence of Austria’s obsession with the theatre. The great theatres of Vienna sold more than 3.8 million tickets, with a population of just 1.8 million inhabitants, while in 2016 the Republic of Austria gave impressive funding of €200 million to its theatres

t’s no surprise that Austria incorporates all forms of theatres in its national repertoire; everything from the internationally renowned National Theatre to countless cabarets, intimate cellar theatres, along with an array of independent artists’ performances occurring on professional or impromptu stages. With regard to large theatre institutions, there are

state, regional, municipal and private theatres, which together employ a combined total of more than 5,000 actors, directors and administrative staff that work almost year-round to put on acclaimed works. The terms for these different theatrical institutions have developed historically, and allude to the financial structure behind them.

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Some of the most recognisable names in the imperial branch of theatre include the world-renowned Wiener Staatsoper, the Volksoper and the Burgtheater, which is the second oldest theatre in Europe. In 1999, the Austrian Parliament passed the Federal Theatres Organisation Act, which required state theatres to be removed from the federal administration. This resulted in the creation of the Bundestheater-Holding company (Federal Theatres Holding). The Bundestheater-Holding group is owned by the Republic of Austria and tasked with facilitating contact between its four subsidiaries and political players in the field of culture, the business community and the public. This holding company is additionally responsible for the strategic management and operations of its subsidiaries. This includes everything from financial and legal support, to contract handling and the upkeep of historical theatre buildings. In addition to three independent theatres (Wiener Staatsoper, Volksoper, Burgtheater – all located in Vienna), the Bundestheater Holding also incorporates an association called “ART FOR ART,” which provides creative shops and services in ticketing, building management and IT. With a budget of €246.2 million and 2,400 employees, Bundestheater-Holding is the largest theatre corporation in the world. Its three member theatres attract an impressive 1.3 million visitors every year. Lending such comprehensive support in business management to its subsidiaries, the Bundestheater-Holding allows its theatres to focus on the core of their work: creating high-quality theatre productions. The second category of theatres includes regional and municipal theatres, which are the main stages in the federal states and its cities, respectively. Federal states also have holding companies, such as the Vereinigte Bühnen in Vienna, which comprises the Theater an der Wien, the Ronacher and the Raimund Theater. These three theatres primarily offer different forms of musical theatre in its three venues with 1,070, 1,040, and 1,255 seats respectively. With a combined 644 performances annually, the Vereinigte Bühnen reaches a sizeable audience of lovers of musicals. In the Styrian province, which is home to Austria’s second largest city, Graz, company Theater Holding Steiermark unites the opera house (including the ballet), the municipal theatre and the children’s theatre,

and is financed 50/50 by the state and the City. Eight out of the nine federal states have a regional or municipal theatre, most of which are former court theatres dating back to the 18th and 19th centuries (Court theatres used to be funded and managed by the court, as opposed to the people’s theatres, which were privately funded and publicly accessible). More often than not, they are so-called “multi-branch” theatres,

VIENNA'S FAMOUS BURGTHEATER

which usually comprise opera, drama, ballet and children’s theatre. They are primarily financed by the federal state and local municipality. These theatres are part of the Society of Theatres of the Austrian Federal States and Municipalities. Its purpose is to protect the interests of its members, as well as to propose how to divide federal government funding of €18.7 million over the course of a five-year period. Its members, which include the Salzburger Landestheater, Oper Graz, Tiroler Landestheater and Stadttheater Klagenfurt, offer more than 3,000 performances a year to over a million spectators. In total, these theatres receive collective subsidies of €136 million. Europe’s municipal theatres flourished in the 19thcentury and inspired architects Fellner & Helmer to specialise in representative buildings for municipal theatres, which they erected in various cities across Central and Eastern Europe. In Austria alone, they designed the opera house in Graz, Landestheater Salzburg, Stadttheater Baden bei Wien, Stadttheater Klagenfurt, Akadmietheater (part of the Burgtheater), Konzerthaus, Ronacher and the Volkstheater in Vienna.

The capital’s budget for culture amounts to 84 million euros, which far exceeds the rest of the federal states. Its main three theatres alone attract more than 1.3 million people a year. Vienna has more than 90 theatres and an estimated 500 independent theatre groups

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In a third category, there are so-called private theatres, such as the Volkstheater, the Theater in der Josefstadt and the Theater der Jugend. They collectively stage more than 1,500 performances a year for more than 600,000 spectators. Broadly speaking, the Volkstheater offers more innovative approaches to critical spectators, while the Theater in der Josefstadt caters to a more conservative and traditional audience. Meanwhile, the Theater der Jugend shows ambitious literature for young people. The private theatres were originally founded by benefac-

VIENNA OPERA HOUSE

tors as an antithesis to the court theatre. However, today their money no longer comes from private benefactors, but rather from the municipality and the federal government (approximately 60% and 40% respectively), which effectively renders the term ‘private theatre’ obsolete in Austria. From a legal perspective, private theatres have been transformed from private corporate entities into foundations, associations or limited liability companies. Given that the majority of funding for these theatres comes from the federal government and the municipality, artistic directors are nominated by the culture secretary and the city councillor for cultural affairs. One of the major benefits of having these private theatres registered as limited liability companies is that, legally, the artistic and managing directors are entitled to make independent decisions. Indeed, the Volkstheater’s strong financial position, coupled with vast managerial and artistic independence, is a privilege that would be the envy of most theatres around the world.

However, the seemingly ideal Austrian theatre system comes with understated flaws. Subsidies for theatre institutions remain the same every year, while fixed outgoings – such as rent, electricity bills or fees and salaries – increase every year. Each theatre has to cover this gap in costs with money from their own pocket, usually through ticket sales. However, most of them already reach a high percentage of seats sold. Theatres must therefore come up with new ways of generating money—which can easily become a distraction from fulfilling

RONACHER THEATER

the actual purpose of their existence.

One of the most highly Furthermore, competition among theatres is big, especially in the capirespected and popular types tal, and relations amongst them, as well is the socio-politically charged as with political stakeholders, requires cabaret genre. The most careful handling. Subtle ambiguity and scheming happen of course, like anywhere renowned stage is the else, inhibiting the productivity of theatre Kabarett Simpl, the only managers. Back to Austria’s theatres, though. cabaret dating back to the Vienna is, of course, the centre of the 19th century that is still country’s diverse and compact theatre landscape. The capital’s budget for culture open today

amounts to €84 million, which exceeds the rest of the federal states by far. Its three main theatres alone attract more than 1.3 million people a year. Vienna has more than 90 theatres, and an estimated 500 independent groups. It is home to the country’ most prestigious theatres and has multiple theatres that are considered highly significant. Often simply referred to as “Die Burg” (the fortress), the Burgtheater is a unique cultural phenomenon. Under the reign of Joseph II, the theatre world of Vienna flourished, and he declared the Burgtheater “the German National Theatre”. Instead of opera

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and ballet, drama is now placed in the limelight, with a particular emphasis on European literature. Austria’s National Theatre is the largest and one of the most prestigious theatres in the German theatre realm: the Burgtheater employs approximately 550 people, 74 of whom are permanent actors. Additionally, it regularly hires 38 guest actors. For comparative purposes, Germany’s largest theatre—the Deutsches Schauspielhaus in Hamburg—has 47 permanent actors and approximately half the budget of the Burgtheater. Based on the sheer volume of its permanent actors and budget, the Burgtheater has the largest company and is the most well-funded theatre in the world. Specifically, this goliath received more than €46 million in public funding during the 2015 season. It attracts the highest number of spectators in continental Europe, with an average of 850 performances a year on four different stages (one of these stages is located in an entirely different theatre building). After the Comédie Française, it is the second oldest traditional theatre in Europe. Demand to see the creme de la creme of Austrian theatre live on stage is extremely high, and there’s usually a long queue meandering from the ticket booth inside all the way to the front of the building. While the Burgtheater was once only frequented by the aristocracy, today it is accessible to anyone, with a standing ticket as cheap as €3.50. Historically, the Volkstheater was founded with the mission of being the exact opposite of the Burgtheater. Its name says it all: “People’s Theatre.” Its purpose, as Mrs Badora pointed out during the UTE conference in Belgrade, “is to bring theatre to the people on its main stage, as well as on its second stage and its 19 theatres in the districts.” The Volkstheater includes both entertainment in its repertoire and also - and most importantly - innovative theatre that is critical of socio-political developments. Austria’a theatres offer different content and aesthetics than the Burgtheater or the Volkstheater, and partially cater to a different audience altogether. The Theater in der Josefstadt, which opened in 1788, is the oldest theatre in Vienna that’s been in continuous use since its founding. Its focus, as suggested earlier, is on classical Austrian theatre, including contemporary literature and light comedy. There are numerous other theatres in Vienna, such as the Schauspielhaus Wien and the Rabenhof Theater, to name just

two famous ones. Smaller stages are also very well frequented by Austrian theatregoers. One of the most highly respected and popular types is the socio-politically charged cabaret genre. The most renowned stage is the Kabarett Simpl, the only cabaret dating back to the 19th century that is still open today. Austrians also highly value their independent theatre scene. This scene has boomed tremendously since the 1990s, especially due to the high influx of students of theatre who opt to stay in Austria after graduation. Even though Austria’s most prestigious

SALZBURGER LANDESTHEATER

drama school, the Reinhardt Seminar, only accepts three to 12 students a year, there are still more than 50 drama and music schools that attract a high number of students from abroad. The (former) students’ sundry backgrounds, and their offbeat and experimental approaches, make the independent scene particularly attractive to the versed spectator. Theatres’ efforts are rewarded each year, when their artistic contributions and creative minds are nominated for a “Nestroy”—the Austrian theatre prize. Inspired by the Parisian theatre award “Molière”, the “Nestroy” aims to highlight Austria’s artistic ability by honouring the most creative and innovative actors, directors and playwrights, as well as in-house productions by festivals. Since the Baroque age, and in particular since the era of Joseph II, theatre has been a central cultural institution in Austria. But it’s the combination of tremendous respect for this art form and a happy financial position that allows for the continued prosperity of Austria’s creatively (and otherwise) rich theatre.

Instead of opera and ballet, drama has now been placed in the limelight, with a particular emphasis on European literature. Austria’s National Theatre is the largest and one of the most prestigious theatres in the German theatre realm

Source https://conflict-zones.reviews/austrias-cultural-wealth/ 41

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TOURISM: HIKING

A Touch Of

ALPINE BEAUTY Hiking is a major attraction for visitors to Austria. With hundreds of kilometres of excellent marked trails through some of the most pristine natural environments in Europe, it’s not hard to see why 42

rom the high mountain trails of the Tyrolean Oberland to the more gentle terrain of central Tyrol and the hills around Austria’s ‘Lake District’, Austria provides an excellent variety of walking and hiking options. These are ideal resorts for those wanting to experience high alpine walking, offering fresh mountain air and wildlife.

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OBERGURGL

OBERGURGL The Ötz Valley, in the Ötztal Alps, with miles of extensive, well-marked walking trails leading directly from one's hotel door, offers many challenging hikes and easier walks to viewing platforms and mountain pastures that can be reached by gondola. The top of Hohe Mut offers views of a spectacular glacial panorama, with a more gentle path winding down along the river to Zwieselstein and Sölden, passing waterfalls and mountain huts along the way. A haven for lovers of fauna and flora, if boasts an abundance of wild flowers, but also golden eagles, chamois, ibex and marmots. The popular Ötztal pass includes travel on all lifts, buses for hikers and public transport in the area, as well as cycle hire and entrance to local attractions, while full walking programmes are offered by the tourist office and some hotels. The village of Obergurgl has opened its doors to a new mountain cabin: Schönwieshütte, set at an altitude of 2,266 metres above sea-level, in a peaceful location at the entrance to the Rotmoostal Valley. Tirolean

specialities are served on its large sun deck terrace, amongst stunning mountain views. SAALBACH AND HINTERGLEMM Surrounded by rolling hills and countryside, Saalbach and Hinterglemm, in the scenic Glemm Valley, represent a paradise for hikers, offering 400km of well-marked trails and more than 30 rustic mountain cabins along the way. The ‘Saalbach Hinterglemm Joker Card’ provides free, unlimited use of all cable cars* and buses for walkers in the valley, plus guided walks and free entrance to various attractions, making this beautiful region fantastic value and a joy to explore. The Joker card was extended for Summer 2019 to encompass all use of trains and buses (SVV lines and OBB trains) in the Pinzgau region free of charge - Visit Zell am See, Taxenbach Gorge, the Krimml Waterfalls and much more! A huge range of activities is available for families, while this is also one of Austria’s premier mountain-biking areas. 43

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10-DAY 'CLASSIC' WALKING HOLIDAY

PERTISAU

Both villages have attractive pedestrianised centres, with a good choice of shops, cafés and restaurants. Traditional folklore events, band concerts and weekly festivals take place throughout July and August. 44

FUSCHL AM SEE This enchanting village lies on the shores of a tranquil lake surrounded by pine forested hills and gentle mountains. Swimming or rowing in crystal clear waters is a pleasure, especially as no motor boats are permitted here. The village is a marvellous centre for walking, offering some wonderful woodland strolls, a lovely path around the lake and some tougher hikes up Schober Mountain, which towers over the village. It is also a great base from which to explore the lakes region. St. Gilgen (6km away) is easily accessible by bus for boat trips on Lake Wolfgang and further walking opportunities. Various local events are held in the village throughout the summer, and an alfresco evening drink or meal, watching the glorious sunsets over Lake Fuschl, is not to be missed. PERTISAU Beautifully situated on the scenic western shores of Lake Achensee, the largest and deepest lake in the Tyrol region, Pertisau is known for its striking emerald waters, framed by the picturesque Karwendel and majestic Rofan

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FUSCHL AM SEE

mountain ranges. Popular daytime activities include boat trips across the lake or exploring the lake shore villages by bike or on the famous Achensee steam railway. Alongside many easy promenade strolls around the lake, there is also extensive hiking above the village and an abundance of wildlife in what is Tyrol's largest nature reserve. A compact and tranquil village, Pertisau has a handful of shops, cafés and restaurants, while live music and folklore entertainment is regularly performed at hotels and on local mountain pastures throughout the summer. The 10-Day 'Classic' Walking Holiday is Austria's flagship walking tour, organised during June and July each year. The perfect time for alpine flowers to bloom in abundance, pleasant temperatures to walk and hike are also guaranteed. While 30km daily hikes and sleeping in tents is certainly an experience, we prefer a bit of luxury. Based in a 4-Star wellness resort, guests enjoy a huge wellness area, with steam bath, sauna and relaxation areas, indoor and outdoor pools and very fine dining. You don't need to be a Himalayan hiker to enjoy this tour, though a moderate level of physical fitness is re-

SAALBACH AND HINTERGLEMM

quired. Daily walks normally range from six to 12 'alpine' kilometres, include some long ascents and descents, and take in a variety of terrains (from grassy meadows and well-groomed paths, to uneven mountain trails). 45

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AUSTRIAN HEALTHCARE

Among The

WORLD’S BEST Austria has one of the world's best healthcare systems, and access to medical services can be considered exemplary in international terms

The principle of compulsory health insurance, combined ustria's health system is exemplary, though - at with the co-insurance of children and non-working partners, the same time - the high rates of increases in ensures that 99 per cent of the entire population enjoys costs in recent years and the way in which comhealth insurance coverage. petences for various parts With the introduction of the miniof the healthcare system are divided Irrespective of the up represent great challenges for the mum income scheme, its beneficiaries individual amount of country. In order to ensure optimal are also covered by compulsory social their health insurance structures for healthcare provision health insurance. and more services for coming genera- contributions, all individuals Public expenditure on healthcare (according to ESSPROS) totalled altions, Austria's federal government, the covered by any of Austria’s most €22 billion in 2011, equivalent to autonomous 'Länder' states and social insurance institutions have agreed to roughly seven per cent of GDP or 25 social health insurance reform the Austrian healthcare system. per cent of social expenditure. Outschemes are entitled to This modernisation programme has a patient and inpatient care accounted medical care by clinic-based for the vast majority (81%) of this clear goal: to ensure the well-being of patients. expenditure. Another 15 per cent is physicians or hospitals

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spent on income support provided by employers and social health insurance schemes, in cases of temporary incapacity to work due to illness. Irrespective of individual health insurance contributions, all individuals covered by any of Austria’s social health insurance schemes are entitled to medical care by clinic-based physicians or hospitals. In the case of temporary incapacity to work, employees are entitled to sickness benefits that follow on the continued payment of wages by the employer (employers are obliged to continue paying wages for six to twelve weeks). If an illness continues - depending on an employee’s insurance record - sickness benefits coverage may vary from between six months and one year. The minimum level of monthly sickness benefits is 50 per cent of the individuals' previous gross monthly salary. Mothers generally receive maternity allowance equivalent to their current working income for the period eight weeks prior to the birth of a child and eight weeks after. Although compulsory health insurance is linked to gainful activity, it goes far beyond the scope of insurance for workers. Insurance coverage relates not only to those directly insured, but also extends to family members. Roughly a fourth of health insured individuals are co-insured family members (e.g. children, housewives or househusbands). Co-insurance is non-contributory for the following groups: children; individuals who care for children or have done so for at least four years (e.g. non-working partner); nursing family members and beneficiaries of long-term care benefits and particularly vulnerable individuals in need of social protection. Co-insured parties may opt into a voluntary insurance scheme in order to have insurance of their own. On an annual average, around 130,000 persons were covered by such a voluntary self-insurance scheme in 2010. BENEFITS Most of the benefits available under Austria's health insurance schemes are benefits in kind provided by insurancerun facilities (mainly clinics) or – primarily – by institutions (hospitals) or clinic-based doctors under contracts concluded with compulsory health insurance (CHI). If patients consult other physicians or institutions (i.e. non-CHI), the costs incurred will be partially refunded. Basically, all those covered by CHI are free to choose their physicians. If, however, insured individuals opt for treatment by non-CHI physicians (‘doctor of choice’), they will have to finance this service in advance. Up to 80 per cent of the amount that the CHI would be required to pay to CHI physicians for the same treatment will be refunded ex-post at the request of the insured individual. Furthermore, there are also private insurance companies covering an even larger number of services and treatment options than those provided under public health insurance. 47