CorD Magazine No.92 by CorD Magazine

H.E. Mrs. Mary Warlick,

The Paintbrush Magician

Dr. Vesna Rakić Vodinelić,

Sava Stojkov,

Union University, USA, Faculty of Law

Artist

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U.S. Ambassador to Serbia

No Rule of Law

apr ‘12 / ISSUE No. 92

Advocate of Serbia

interviews opinions news comments events PRICE 250 RSD

Nikola Pavičić, Honourary President of Tarkett Company

Only Export Will Bring New Jobs

The strong dinar has been created artificially on the back of a weak economy. This is ‘killing’ our exports and hence we have the lowest export figures per capita in Europe focus

Protecting Foreign Currency Reserves

According to economists the dinar will continue depreciating against the euro with the possibility of the exchange rate reaching at least 117 dinars for 1 euro by the year end An insight into the world of horseracing

The Sport of Kings A major part of horseracing’s economic importance, and some word argue raison d’être, lies in the gambling which generated €90 billion in 2011

Jelko Kacin European Parliament Rapporteur for Serbia

Negotiations Could Start

in Early 2013

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COVER Jelko Kacin, European Parliament Rapporteur for Serbia

contents

Page 8

Negotiations Could Start in Early 2013

April 2012

TBearing in mind that the elections will be held on May 6th, followed by negotiations about forming a new government and a summer recess, I think that it is more realistic for Serbia to be given the date of the commencement of negotiations at the European Council’s December summit

EDITOR: Sasa Marić s.maric@aim.rs

Improving Public Resource Management

DuŠan VujoviĆ, Professor at FEFA and USAID Business Enabling Project Advisor

Negotiations Could start in Early 2013

SL 60th Anniversary Mercedes-Benz

Jelko Kacin, European Parliament Rapporteur for Serbia

f aces & places

Advocate of Serbia

c ulture calendar & news

H.E. Mrs. Mary Warlick, U.S. Ambassador to Serbia

Double-Digit Growth

John Pearson, CEO of DHL Express Europe

Global diary

No Rule of Law

T he Paintbrush Magician

Sava Stojkov, Artist

Dr. Vesna Rakić Vodinelić, Union University, USA, Faculty of Law

Protecting Foreign Currency Reserves

T he Sport of Kings

An insight into the world of horseracing

Focus

Monkey Business

Only Export Will Bring New Jobs

Comment page 6

Profile page 82

C ollection of Europe’s Best Hotels

Travel

Business Dialogue

Industry and Agriculture Neglected

F antastic Newcomer

Restaurant DEPO 23, review

Dragan Interview Lukač, Chairman of the Novi Sad Regional Chamber of Commerce

CONTRIBUTORS: Jovana Gligorijević, Rob Dugdale, Mirjana Zec, Radmila Stanković, Boško Jakšić,Steve MacKenzie Zorica Todorović Mirković,Sonja Ćirić, Vera Didanović PHOTOS: Zoran Petrović, Alja Gabrijel, Emilija Jelić TRANSLATION: Snežana Bjelotomić PROJECT MANAGERS: Nataša Popović n.popovic@aim.rs Biljana Dević b.devic@aim.rs Vanja Jokanović v.jokanovic@aim.rs Svetlana Okanović s.okanovic@aim.rs

GENERAL MANAGER: Ivan Novčić i.novcic@cma.rs

Nikola Pavičić, Honourary President of Tarkett Company

ASSISTANT EDITOR: Max Williams, m.williams@aim.rs

EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs

Slovakia Election: Causes and Consequences

ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs

Accelerating Permit Issuing Procedures

Saša Vučinić, Mayor of Subotica

s how stoppers

Techno talk

B alkan Creativity for the Whole World

FINANCIAL DIRECTOR: Ana Besedić a.besedic@cma.rs OFFICE MANAGER: Tanja Banković t.bankovic@aim.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: cordeditorial@cma.rs www.cordmagazine.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2012

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92 April 2012

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comment

Improving Public

Resource Management Dusan Vujovic, Professor at FEFA and USAID Business Enabling Project Advisor

Serbia is at an economic and institutional crossroad: it needs to complete key infrastructure and invest in private sector growth and job creation, but the government cannot borrow much more at this time

Reforms are needed at every level of government, from the legislature to the line ministries, to local governments, to state enterprises. Changes are needed in the process of budget preparation and review, in the type of information that is collected, in the format of budget presentation, and in the decision making proc-

esses that follow.

path. Some relief may come through bilateral infrastructure in-

But the success of budget reforms hinges on political will and

vestments and additional capital flows attracted by the prospec-

attitudes of government officials. The most relevant accountabil-

tive EU membership, but the brunt of resources must come from

ity principle Serbian officials should follow is in improving budget

savings in the public sector which presently spends more than

and public sector performance, the essential task that would en-

half of value added.

able the country to respond to many challenges posed by the ex-

The sustainable level of public debt (presently assessed

Coordination of donor efforts and consolidation of financial

at 45% of GDP) is very close and should not be exceeded

support should be a priority to achieve the widespread changes

if the country wants to credibly pursue the EU integration

that are needed throughout the government.

The necessary fiscal space has to be created from existing

tended global economic turmoil.

budgetary resources by improving the efficiency and econom-

In short, budget reform rooted in the responsible and account-

ic usefulness of existing spending, and by saving and eliminating

able behaviour of politicians, government officials, and all citizens

wasteful expenditures.

is now needed more than ever to deal with the consequences of

Worldwide experience shows that performance-based budget-

the 2008 crisis and brace for another major economic slowdown

ing and performance measurement are essential tools for identify-

forecast for 2012. Program budgeting can easily identify areas

ing spending priorities and improving the economic usefulness of

where performance can be improved with existing resources, and

public expenditures. It offers enormous benefits for advancing the

where resources can be saved.

transparency, accountability, and efficiency of public spending. It

Most importantly, performance budgeting introduces im-

reduces the scope for political interference and exploitation of pub-

proved, robust, and tangible accountability mechanisms of all fu-

lic funds for private or partial political interests. The adoption of this approach has been in the works since 2005. After initial successes, progress has been slow due to capacity constraints and loss of political leadership. The political cost of doing nothing has been relatively low despite the explicit legal commitment to complete budget reforms by 2015. After the recent EU candidacy status this is no

EU candidacy has created a unique window of opportunity to mobilize political will and reignite the implementation of program budgeting in line with earlier legal commitments and prevailing performance budgeting standards in the EU and OECD countries

longer the case. The impetus for change has never been stronger.

ture ministers and elected public officials to: document every di-

Performance-based budgeting offers a path Serbia can easily fol-

nar of public monies spent under their responsibility; realize pos-

low to improve growth opportunities, offer prosperity and better

sible efficiency gains; and achieve stated policy and development

quality of living for its citizens, and strengthen its own image.

objectives.

As usual with any new approach there is always potential for

EU candidacy has created a unique window of opportunity to

fear of the unknown, but measuring the performance of govern-

mobilize political will and reignite the implementation of program

ment spending is in practice all around the world and it is part of

budgeting in line with earlier legal commitments and prevailing

a wave of reforms that have been taking hold for more than 20

performance budgeting standards in the EU and OECD countries.

years. There are important lessons to learn. Serbia has the bene-

If budget reforms are done, things will get better. Or they will

fit of learning from what works and what doesn’t to create a work-

get worse in the absence of reforms – the current fiscal situation

able budget framework.

is not sustainable. ■

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interview Jelko Kacin, European Parliament Rapporteur for Serbia

Negotiations Could

start in Early 2013 ■ By Vera didanović Photo by Alja Gabrijel

Bearing in mind that the elections will be held on May 6th, followed by negotiations about forming a new government and a summer recess, I think that it is more realistic for Serbia to be given the date of the commencement of negotiations at the European Council’s December summit

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Partners

It is quite evident that Serbia will have to fully normalize its relations with Kosovo and become a sincere partner to Priština.

Integration

The key issue is to (re)integrate the Serbian community in the north into Kosovo proper. Serbia should stop being a hostage to the Serbs from Northern Kosovo.

“I

feel very positive and optimistic,” said Jelko Kacin, European Parliament Rapporteur for Serbia at the beginning of his interview for CorD magazine. “Serbia still has to do most of the work required, but, with being granted candidate status, the first big step is made.”

■ Harsh words were said and recommendations given on our path to candidate status. What do you feel now, after everything that has happened?

- My criticism of Serbia was often misinterpreted and sometimes purposefully distorted, but, throughout, I have always had very fair and honest relations with my colleagues from Belgrade. Of course, it’s much easier to hold the function of rapporteur when the country has entered a higher stage in EU integration and when topics are not so emotional or controversial. It makes me even more proud to see that we have covered a very long and difficult road in these past four years – the road from setting western embassies in Belgrade on fire in February 2008 to candidate status.

Constitution

Following the election, some amendments to the Constitution are inevitable as is the implementation of the agreements reached between Belgrade and Priština.

■ At the same time, when the news broke that Serbia was granted EU candidate status, some projections were made that negotiations could start by the year end. Is that realistic to expect?

- Bearing in mind that the elections will be held on May 6th, followed by negotiations about forming a new government and a summer recess, I think that it is more realistic for Serbia to be given the date of the commencement of negotiations at the European Council’s December summit. In line with that scenario, negotiations

Serbia was not simply given candidate status as a gift. The status is well-deserved since the official Belgrade has fulfilled the criteria defined by the European Council in December last year

■ In Serbia, candidate status was interpreted differently – while the government talks about economic benefits, the opposition parties claim that, essentially, nothing has changed. How much has Serbia’s position changed since the 1st of March?

- In a way, both sides are right –candidate status is a big step to make politically speaking. Serbia has accomplished great success in receiving this acknowledgment and a ticket to the next phase of European integration during a time of political and economic crisis in Europe. On the other hand, the aim of having candidate status is not the candidacy itself, but economic and political transformations for the better which comes with the membership negotiations and becoming an EU member. In other words, candidate status offers many possibilities and the question is in what way are Serbian leaders going to utilise these possibilities.

would start in early 2013. Of course, this implies that the dialogue with Kosovo is continued, that telecommunication and energy issues are resolved and that the current agreements are fully implemented. This especially applies to joint management of the border which will take time to be fully realized. Also, it is vital to make convincing steps towards rectifying the mistakes made during the review of the re-appointment of judges and cordeditorial@cma.rs

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prosecutors so that all sides can be assured of Serbia’s dedication to the implementation of the rule of law. This will also help with the negotiations about chapters 23 and 24 having a full meaning. ■ Can the results of the upcoming elections have any effect on the further development of the European integration process? There are various theories circulating in Serbia including one that a certain number of EU countries think that the best possible outcome would be to have ‘a wide coalition’ made up

marily referring to the economy and not politics, and certainly not only the governing political option. ■ Do you think that the decision on holding elections in Kosovo is going to affect our further EU integration process?

- The EU and Washington have a very clear stance on this issue. Northern Kosovo should be re-integrated into Kosovo proper, based on Athisaari’s plan. The plan stipulates wide decentralization and rights for local self-governments. To maintain parallel structures at a time when a real breakthrough has been achieved in the dialogue between Belgrade and Priština would be very counterproductive. However, it’s one thing to schedule elections, and another one to actually hold them and subsequently form a local government. I think it is very important for the representatives of Serbians living in Northern Kosovo, and the communities in the north in general, to re-establish contacts with the Serbian community living south of the Ibar River. People simply need to understand that there is no danger of “Albanianization” or the abolishment of their rights. On the other hand, organized crime is a clear and present danger. As long as there is a legal vacuum in the north, that danger will not be eliminated.

■ In the Resolution on the European integration process of Serbia, adopted by the European Parliament’s Foreign Affairs Committee, out of 61 points, 40 points contain various objections and suggesIt is vital to make convincing steps towards Because of that, rectifying the mistakes made during the review of tions. certain comments were the re-appointment of judges and prosecutors so made that Serbia was acthat all sides can be assured of Serbia’s dedication tually ‘given’ candidate status in order to deter to the implementation of the rule of law the country from turning to Russia. What is your opinion on such comments? by the Democratic Party and the Serbian Progressive Party. According to that theory, and with such a wide - Serbia was not given candidate status as a gift. The status coalition, the current Serbian Constitution could be is well-deserved since the official Belgrade has fulfilled easily amended and the Kosovo problem solved. Is the criteria defined by the European Council in December there any truth to these claims? last year. Cooperation with the Hague Tribunal is almost

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- The outcome of the elections are going to be simply what they are going to be. It’s not up to me to speculate about election results or meddle in the formation of political alliances and the next government. What is certain is that some amendments to the Constitution are inevitable as is the implementation of the agreements reached between Belgrade and Priština. It is important for all relevant political forces in the country to assemble around these strategic goals. Whether that will take the form of a big coalition or a gentleman’s agreement about the governing and opposition coalitions not going after each other is not that important. A whole country becomes an EU member, and I am pri-

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complete and what remains to be done is to legally process the people who aided the fugitives from justice and uncover their potential links to the security services. The dialogue between Belgrade and Priština did yield results with an agreement reached about regional cooperation with Kosovo. Russia has never been a real economic and political alternative to the EU. Even if Serbia was not granted EU candidate status, I think it wouldn’t have turned to Russia. Maybe it would in a declarative sense. Russia is, by all means, a relevant partner to Serbia, primarily in an economic sense, despite the scandal that was the sale of NIS. But let’s not forget that 58% of Serbia’s exports and 57% of imports are done with the EU.

■ Do you think that the European integration process in Serbia is irreversible now?

- In politics, I would refrain from using the term ‘irreversible’. Let’s just say that once the negotiations start, Serbia will be so far ahead in the integration process that making a detour in any other direction would make no sense. Especially after chapter 23 (judiciary and basic rights) is opened. ■ Can we say that the suggestions stated in the Resolution could be considered conditions that Serbia has to fulfil in order to be given the date of the negotiations?

north into Kosovo proper. Serbia should also stop being a hostage to the Serbs from Northern Kosovo.

■ In December, when Serbia failed to secure candidate status, representatives of the official Belgrade claimed that Serbia was asked to recognize Kosovo’s independence (in exchange for candidacy). Was that true and is this prerequisite ‘postponed’ for another time?

- No, there has never been a condition like that and the EU will never impose such condition as long there is at least one member state that hasn’t recognized Kosovo

- The Resolution has many suggestions – from general political recommendations to very concrete criticism. In regard to the date, the Council will make the final decision. What is certain is that continuation of the dialogue with Priština will be demanded, as will the implementation of the agreements reached so far and the accomplishment of tangible results in fighting against systemic corruption.

■ The Resolution states that “Dismantling of Serbian parallel structures in Kosovo is one of the key prerequisites for further progress in the regional cooperation process.” You have recently said that “Local governments should not be considered parallel structures.” Please explain these parallel structures and should their dismantling happen before the negotiations commence?

- The gist of my message was Serbian society, and even more, its economy, that organized crime held real has recognized its interest in getting closer to power in Northern Kosovo. EU membership and I think that sentiment will Those are the real parallel structures which, thanks to grow over time. There are no new jobs or foreign the Republic of Serbia’s auinvestments if you don’t grow closer to the EU thorities, can no longer act as unobstructed as before. To be more precise, let me as an independent country. But, on the other hand, it say that the Veselinović brothers held the entirety of is quite evident that Serbia will have to fully normalize Northern Kosovo hostage for a long time, particularly its relations with Kosovo and become a sincere partner when it came to putting up roadblocks. If they did to Priština in the integration process. Following the exthat in conjunction with the civil and military secret perience with Cyprus, which joined the EU as a divided services and individual politicians, that makes things country, it will be necessary to find some kind of modus much more difficult for the rule of law and everybody vivendi about Kosovo’s status before Serbia joins the EU. living in the north. I have said on several occasions that making progress in In regard to local self-governments in Northern Kothe dialogue with Kosovo will be possible only when Belsovo, they certainly need to be re-elected in accordance grade starts to have dialogue with itself and understand with Ahtisaari’s plan. It is impossible to use EU funds how many times it has acted to its own detriment. for the much needed environmental and social rehabilitation of Northern Kosovo without having local admin■ According to some sources, there is this idea about istration. Also, I would like to add that the agreement on the expedited accession of Kosovo into the EU in orrepresentation of Kosovo at regional fora should bring der for Serbia and Kosovo to become Union members an end not only to the isolation of Kosovo proper, but at the same time. Do you think that is a possibility? Northern Kosovo too. I think that the key issue is here - The credibility of enlargement is of exceptional imporis in how to (re)integrate the Serbian community in the tance, i.e. every candidate country needs to meet the cordeditorial@cma.rs

92 April 2012 | 11

membership criteria before joining. Having said that, it is realistic for Serbia to join the EU before Kosovo since Kosovo still doesn’t have a feasibility study.

■ Recently you said that Serbia would have to seriously tackle crime and corruption in high places. What should happen in order for this battle to commence? Does it depend on political decisions or does Serbia not have specific instruments to fight these dangerous social occurrences?

- The key lies in political will. The Anti-Corruption Council and the Anti-Corruption Agency are doing an excellent and professional job, but that is not enough. The judiciary has to become free of politics and capable of processing cases of systemic corruption. Also, it is vital for political parties to stop with their practice of ‘dividing the spoils’ and ’dismembering’ public functions. That’s why the key lies in the decisions made by political leaders.

bia cannot compete with Asian economies with their cheap labour. You need to stop the ‘brain drain’ and offer something fresh to investors. The success with FIAT shows that it is doable. ■ The European Parliament has raised its concerns over “the increasing influence that executive powers have over independent institutions.” What kind of growing influence are we talking about?

- Serbia has many independent institutions that are doing their job in a professional and responsible manner. The problem lies in the fact that executive powers often choose not to heed recommendations and requests coming from these bodies – i.e. from the Anti-Corruption Council or the Public Information Commissioner. We have witnessed the representatives of the executive powers publicly denouncing the Anti-Corruption Agency for the investigations it has launched. This kind of pressure needs to be eliminated from political life in Serbia.

■ The European The EU and Washington have a very Parliament’s Reso■ How big of a danclear stance on this issue: Northern lution voices the ger is Serbian citiEU’s concern over a zens having to be Kosovo should be re-integrated into large number of irissued with EU visas Kosovo proper based on Athisaari’s plan once again due to regularities in conducted privatizations. Parliament wants the docuproblems with fake asylum seekers? ments on these privatizations to be immediately - I don’t think that is realistic. But, it is important to stop stripped of their confidential status. Do you think organized crime in its tracks since organized crime is that would facilitate the fight against corruption in involved in human trafficking. That applies both to Serthe high places that you talked about? bia and EU countries.

- That would only help in fighting against irregularities in the privatization process. As far as I understood it, the public in Serbia is already familiar with the facts from many privatization affairs. It is enough to simply browse through the web page of the Anti-Corruption Council to see how much the public already knows.

■ Apart from fighting corruption and eliminating deficiencies in judiciary reform, what other demands are cited in the European Parliament Resolution? What else should Serbia do in order to improve its chances for attracting more investments?

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- Investments are drawn to security and I think that the government in Serbia needs to eliminate any doubt about the independence of the judiciary system as a prerequisite for the system becoming predictable. Ser-

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■ Public opinion polls have shown that Euro-scepticism is growing in Serbia. Do you think that is a cause for concern? Could you imagine a situation where Serbian citizens say ‘No’ to joining the EU at a referendum following such a long and pain-staking European integration process?

- If you take Croatia as an example, you will see it is highly unlikely. The support for EU accession varies because of many factors, including the economic situation, current progress made in the integration process etc. Serbian society, and even more, its economy, has recognized its interest in getting closer to EU membership and I think that sentiment will grow over time. There are no new jobs or foreign investments if you don’t grow closer to the EU. ■

interview H.E. Mrs. Mary Warlick, U.S. Ambassador to Serbia

Advocate of Serbia

■ By Max williams Photo: Zoran Petrović

Ambassador Warlick was sworn into office on January 19th, 2010 as the Ambassador of the United States of America to the Republic of Serbia. During her time in the country she has been a supporter of Serbia’s path towards the European Union and firmly believes that integration in the EU is the best way forward. Mrs. Warlick, in this exclusive interview for CorD, talks about U.S. investors continuing to come to Serbia despite U.S. Steels departure, her fondness for the country and its citizens and of her thoughts on Serbian media

“V

ice President Biden and Secretary of State Clinton both made clear in their 2009 and 2010 visits that we have a true partnership with Serbia, which means that we work together in the pursuit of common goals and we each benefit from the relationship,” said Mrs. Warlick at this start of this interview. ■ Mrs. Warlick, you have confirmed that your appointment as ambassador to Serbia is ending before the New Year. How would you grade your work over the past few years? Is there something that you weren’t entirely satisfied with?

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- I have been very fortunate to be serving as U.S. Ambassador to Serbia at a time when I believe that the U.S.-Serbia bilateral relationship is in a good place and is growing even stronger in many areas. Both of our governments are collaborating to expand trade and investment opportunities, our law enforcement agencies are working together to fight organized crime, drug trafficking, and terrorism, and our militaries take part in regular joint training and planning activities. Of course, both the United States and Serbia

Support

The United States has contributed over $810 million (€611.5m) in assistance to Serbia over the past ten years to help align Serbia’s economic and legislative environment with EU standards.

Beauty

I remember being immediately struck by the natural beauty of Serbia as I looked out of the airplane window on a late January day and began the descent toward Belgrade airport for the first time.

share a vision of Serbian membership in the European Union, and the United States has contributed over $810 million (€611.5m) in assistance to Serbia over the past ten years to help align Serbia’s economic and legislative environment with EU standards. In short, I think we are making very good progress and I am proud of everything that my Embassy colleagues and their Serbian counterparts are doing to strengthen our cooperation in so many areas and achieve these important results. ■ Elections in Serbia are just around the corner and a favourite topic of opposition parties here is the influence that foreign ambassadors exert on the line-up in the Serbian Government. Do you have your favourites? Who would the U.S. Government like to see at the helm of Serbia?

We hope that the next Serbian government will remain strongly committed to European integration and will do everything possible to achieve the necessary reforms to keep Serbia on that path.

Legitimate, legal elections have successfully taken place in Serb majority municipalities in the south of Kosovo and which should also be possible to organize in the north. However, local elections organized in Kosovo by Serbian authorities under Serbian law would not produce representatives with any authority within Kosovo institutions under Kosovo law. For that reason, we welcome the Electoral Commission’s intention to consult with the international community on the most appropriate way forward.

- The people of Serbia, not outsiders or foreign ambassadors, will ultimately decide who will represent their interests in parliament and other branches of government. Once they have I have been very fortunate to be serving as U.S. chosen your future political Ambassador to Serbia at a time when I believe leadership, the United States will work hard to develop a pro- that the U.S.-Serbia bilateral relationship is in a ductive working relationship good place and is growing even stronger and to continue to strengthen our cooperation with your government, as we do with ■ Who would you single out as having the best coopall democratically elected governments. eration with Belgrade and with whom do you think communication should or could have been better?

■ Is there any truth to the media reports that you have suggested to representatives of the Serbian Progressive Party to shun forming political alliances?

- Our message to all Serbian politicians and political parties is the same, and it is a matter of public record: We hope that any future government elected by the people of Serbia will remain strongly committed to European integration, democratic governance, greater economic growth and prosperity for the citizens of Serbia and to pursuing the necessary political and economic reforms that will enable Serbia to achieve those goals. ■ The U.S. Government has never questioned Kosovo’s independence. What is your opinion of Serbia’s intentions to hold local elections in northern Kosovo?

- As you note, the United States strongly supports Kosovo’s sovereignty and authority throughout its territory.

I believe that the Serbian Government has rightly focused its attention on developing strong relationships with the European Commission and key EU Member States, who will ultimately play a decisive role in assessing Serbia’s reform progress and its readiness for taking future steps that will further advance its eu integration process. I also believe that Serbia is doing the right thing to focus on strengthening cooperation with key trade and investment partners and on critical law enforcement cooperation with countries in the region. President Tadić and his national security council team have achieved significant progress in recent years in the fight against organized crime, which has included several major drug seizures, in cooperation with the U.S. Drug Enforcement Agency and other international partners, and a number of important arrests. It is critical for the stability of this country and the region that the Serbian Government’s courageous work in this area remain a top priority. cordeditorial@cma.rs

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■ With the closure of U.S. Steel, Serbia has lost its biggest exporter. Is it realistic to expect new investors from the U.S. coming here by the end of the year?

- Of course! Actually, there have been several significant investments in Serbia by U.S. firms in recent months, including Sitel’s and NCR’s new customer service and technical support centres in New Belgrade, Cooper Tire’s purchase of the Trayal tire factory in Krusevac, and Ball Packaging’s new production line. And more American investors are coming - Johnson Controls will

as an attractive and welcoming destination for American investors. What I told them, and what I tell everyone, is that Serbia offers many advantages to foreign investors – a strategic location, a highly skilled labour force, and free trade agreements with important markets such as the EU, CEFTA nations, Russia, Turkey and others. ■ People who criticize the Serbian Government say that our EU candidate status is just ‘optimism on paper’. How would you explain the significance of the candidacy and what do you think about the growing Euro-scepticism, both in Serbia and the EU?

- The European Council’s March 1st decision to grant candidate status to Serbia is a very significant achievement and milestone because it makes clear the EU’s readiness to support Serbia in its determination to pursue a path toward EU membership. Despite occasional hiccups, the EU has brought peace and prosperity to member countries for almost sixty years, and member countries will find ways to resolve their current economic challenges. Member countries recognize that fact, and for that reason they are doing everything in their power to remain together despite the current difficulties. As time passes and as more progress is achieved by Serbia and other countries in the region toward their common goal of European integration, I believe Serbian citizens will realize that Serbia will be a stronger country – economically, politically, and culturally – as a member of the EU.

The people of Serbia, not outsiders or foreign ■ For how long can the elections and ambassadors, will ultimately decide who a formation of a new government will represent their interests in parliament postpone the date of the beginning and other branches of government of negotiations with the EU? Do you open a new factory in Kragujevac this year to supply automobile seats to the Fiat Zastava plant; Clean Earth Capital is investing in a major real estate project in Nis; and Continental Wind Partners expects to break ground on a wind energy farm in Vojvodina next year. U.S. investors know that the sale of U.S. Steel was a result of the global steel market, and not of Serbia’s performance or suitability as an investment location. Other American investors are doing very profitable business in Serbia, and U.S. Steel’s experience does not worry them. ■ What would be your message or recommendation to potential U.S. investors who are willing to invest in Serbia?

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- That is the easiest question you’ve asked, because I’ve given this sales pitch – and it’s one that I strongly believe in - so many times. You likely know about the trade and investment promotion mission that Economic Minister Cirić and I made to the United States a few months ago. We visited Washington and Chicago to promote Serbia

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see any possibility of the new government changing directions when it comes to European integration?

- It is reasonable to assume that the sooner Serbia has a functioning government the sooner it will be able to achieve the necessary next steps to secure a date to begin accession negotiations from the EU. We hope that the next Serbian government will remain strongly committed to European integration and will do everything possible to achieve the necessary reforms to keep Serbia on that path. I’m optimistic that Serbian citizens and their soon-to-be-elected political representatives will maintain on that course. ■ You are known as being an expert in all matters Russian and, now, in all matters Serbian. From the Napoleonic Wars until today, Serbia has always been viewed as Russia’s ‘extended arm’ in a political and historical context of the Balkan region. Do you think that this is just a stereotype, a historically embedded prejudice or something else?

- I think that all countries act in their own self-interest. It is understandable that Serbia is seeking to develop good relationships with many countries around the world, including Russia, in order to advance its economic and other policy goals. We appreciate that many Serbians have a personal affinity for Russia based on long historical, cultural and other ties. At the same time, we do not view such relationships in zero-sum terms. The United States also has a strong and productive relationship with Russia, and we collaborate on many issues where we have shared interests.

region in Vojvodina, with its dozens of historic monasteries, many of which I have visited frequently with family and friends. ■ Do you remember your first impressions of Serbia? How much has your attitude towards Serbia changed for better or worse compared to the impression of the country you had before coming here?

- I remember being immediately struck by the natural beauty of Serbia as I looked out of the airplane window

■ What should be the common goals in terms of establishing sustainable and good long-term relations between Serbia and America when it comes to current issues in the region while respecting both sides’ individual interests?

- No two countries will ever have 100% overlap in their interests and goals, and that’s where diplomacy comes in. Serbia and the U.S. have a very productive relationship. We both share the vision of Serbia’s future in the EU and we are collaborating across a wide range of issues and priorities. So my answer is that we – Serbia and the U.S. – should keep up the good work and continue to deepen our cooperation wherever possible.

■ During your time in Serbia I presume that you’ve closely followed the media here. What is your view of the work done by the Serbian media? Are you under the impression that they are not as free as they should be and are U.S. investors know that the sale of U.S. heavily influenced by the state?

Steel was a result of the global steel

- As you know, Serbia has a vibrant media scene, although the media industry in Ser- market, and not of Serbia’s performance bia and throughout the world is currently or suitability as an investment location dealing with the global economic crisis and a switch to online news consumption, which in turn is on a late January day and began the descent toward resulting in reduced advertising revenues. These are Belgrade airport for the first time. I had heard so much tough times for media, but I’m confident that many about Serbian hospitality, of course, before arriving and media will emerge from the crisis stronger. The State came to Serbia with a very open mind, anticipating that Department’s Human Rights Report assessed that inI would have a positive experience at a very important dependent media in Serbia are active and express a time. I have not been at all disappointed, as I have been wide range of views, but it also notes that some retreated with warmth and hospitality and incredible porters and media organizations have been victims of friendship throughout my time here. vandalism, intimidation, and physical attacks. We value freedom of the press as a key component of democratic ■ When you go back home, how are you going to degovernance and consider it the role of government to scribe Serbia to somebody who has never been in create a safe and open environment for free speech. this part of the world? - I’m going to tell people that Serbia is a beautiful country full of warm, friendly and incredibly kind and hospi■ Having surely travelled all over Serbia, have you found a place that you would like to re-visit one day? table people. I have made friendships here that I know will last for a lifetime and I will always be one of Serbia’s - In my opinion, the Djerdap Gorge along the Danube strongest advocates in the years ahead. I want nothing River in eastern Serbia is one of the most beautiful and but the very best for Serbia and the Serbian people – even breathtaking natural sites in the Balkans. I also who have truly won my heart. ■ love the beauty of Mount Kopaonik and the Fruska Gora cordeditorial@cma.rs

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No Guarantees “Boris Tadić may resign, but it does not guarantee that Slavica Djukić-Dejanović will call elections for the 6th of May. She can do that 30 to 90 days after the resignation. So, the head of state can be elected in the summer” — Ivica Dačić, head of SPS.

global diary

She’s proud of raising money, but the underlying message is for children who lose their hair because of cancer treatments.

Sarkozy Apologizes French President Nicolas Sarkozy has had to apologise to a policewoman after his teenage son threw a tomato at her from the presidential palace

Kate Middleton’s Hockey Skills Kate Middleton has proved more than a fashion trendsetter after showing off her hockey skills to Team GB at the Olympic Park French President Nicolas Sarkozy cycling with his son Louis

Louis, 15, the leader’s son with ex-wife Cecilia, and his friends threw the tomato and some pellets at the officer from the Elysee courtyard. The policewoman was in the street outside as the teenagers were playing in the palace courtyard and a pellet hit her on the cheek. Mr. Sarkozy later met with the policewoman and apologised for his son’s behaviour, according to police sources. The president, who is married to model Carla Bruni, also has two adult sons from his first marriage to Marie-Dominique Culioli.

Premier League Boss Gaffes After accusing Fifa and Uefa of ‘stealing football’ from the English and mocking his Qatari hosts’ restrictions on selling alcohol, the head of the Premier League fell into a “water feature” It was a day of gaffes for Sir Dave Richards who is also a senior FA board member. During his 18 |

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The duchess, who was captain of the first XI hockey team at Marlborough College, could not pass up the chance to relive her younger years and play with the national team. Although she arrived dressed in yet another impressive outfit of skin-tight coral three-quarter-length jeans, blue heels and a smart blue blazer with an official Team GB supporters’ scarf she quickly changed into comfy Adidas trainers and GB sweatshirt. The 30-year-old, an ambassador for the London 2012 Olympics and Paralympics, wasted no time impressing the other players by scoring with her first shot from in front of goal. Source: www.ibtimes.co.uk

speech at a sports security conference in Qatar, he repeatedly reminded an audience - including Fifa vice president Prince Ali

Bin Hussein of Jordan - that the world had England to thank for football. Prince Ali tried to defuse the tension by saying the game is now owned by everyone, not just one country. Sir Dave also questioned the lack of availability of alcohol in Qatar. He noted that the English and Germans “like to go for a pint and that pint is a pint of beer.” “It is our culture as much as your culture is not drinking,” he said, warning Qatar not to “bury

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your head in the sand on the issue...” as it could put fans off from attending the World Cup. A short time later - at Doha’s Museum of Islamic Art - Sir Dave slipped and tumbled kneedeep into a pool and had to be rescued by Bolton Wanderers chairman Phil Gartside. English football’s governing body quickly distanced itself from Sir Dave “Sir Dave Richards is not representing the FA at this conference and his personal views are in no way shared or endorsed by the FA.”

Ebben has not decided whether to grow her hair out as the Miss Alaska Pageant approaches in June, with the chance to compete in the Miss Source:AP America Pageant.

Russia’s Smartest and Most Beautiful Women

During the run-up to International Women’s Day, the Russian Public Opinion Research Centre conducted a survey find out who Russians believe are the country’s smartest and most beautiful women. Respondents were free to list both their contemporaries and any woman who has ever lived in Russia. Oksana Fyodorova

Caring Miss Debbe Ebben, the reigning Miss Chugiak-Eagle River has raised more than $4,000 (€3,061) for children’s cancer research for the St. Baldrick’s Foundation and delivered on a promise to people who pledged by allowing her brown tresses to be buzzed off.

was recognized as the most beautiful woman by 9% of respondents. However, the TV host wasn’t included in the final chart because she received less than 1% of votes in the “smart” category. Source: RIA Novosti

Coalition “If someone told me 12 years ago that I would be in coalition with SPS in an election I would’ve felt that it was not normal. But our coalition with the SPS in provincial elections proves that everything is changing” — Rasim Ljajic, head of the Social Democratic Party.

Alibi Line of Fragrances Mavericks, a popular strip club in Cape Town, South Africa, has recently launched a series of men’s fragrances called “Alibis”. As the name suggests, they provide husbands with an excuse for when they get home late

Because most clients get a bit carried away when visiting Mavericks, and choose to have one more dance “to see what happens,” the joint’s owners were inspired to create a series of perfumes that could give married men an alibi for when they arrive home late. The sprayable Alibis, conceptualized and developed by South African creative guru Porky Hefer, will be available in three different fragrances: My Car Broke Down, which smells of fuel, burnt rubber, grease and steel, I Was Working Late, with scents of coffee, ink, cigarettes and wool suits, and We Were Out Sailing, which has the smell of fresh ocean spray, sea salt, cotton rope and aqua. It’s safe to say they don’t smell nice, but they get the job done. All three are available for purchase exclusively at the Mavericks Revue Bar in Cape Town, at a retail price of 295 ZAR (€28).

Facebook's new HQ Facebook Inc. has moved into its new corporate headquarters in Menlo Park, which boasts colourful, collaborative work

spaces, funky furniture, cafeterias with free food and local art

The social networking company, led by CEO Mark Zuckerberg, has about 2,000 employees at the campus. Facebook is “allowed” to have 3,600 workers there under current permits but hopes to increase that number to a total of 9,400 once its entire headquarters is built out, which is still years away. Facebook’s business plans have called for spending about $250 million (€191.3m) on renovat-

ing its new 1 million-square-foot headquarters campus in Menlo Park and building a 430,000square-foot extension of that campus by 2014. A large art piece from Los Angeles graffiti artist David Choe hangs in the lobby of the new Facebook office. Choe was given stock options in 2005 in exchange for decorating the walls at the previous office in Palo Alto. Those stocks are now valued between $100 million and $500 million. Source: San Jose Business Journal

Appropriate Gift An advertising company in Sweden has apologized after its campaign of sending “blood soaked” wooden horse heads to companies, was mistaken for a threat

Gay Consumers Spend $845 bln a year

According to Prime Access’ data, it’s estimated that there are 16 million gay consumers in the U.S. and they spend $845 billion (€646 billion) a year Though the demographic is diverse, marketers and consumer experts have pegged gay men and women - and particularly urban LGBT two-income households without children - as having disposable incomes that are higher than average. And while they are a smaller minority market than Hispanics or African-Americans, gays are recognized influencers and early adopters. The 2011 Gay Press Report, conducted annually by LGBT ad agency Prime Access and media-placement firm Rivendell Media, showed that US advertisers spent more than $307 million (€234m) in gay print media last year. The overwhelming bulk of that, 97%, went to local publications, with bars and restaurants, nonmedical services and retail marketers spending the most.

Source: Advertising Age

The Digital director of United Power in Dalarna, Jesper Wallerborg, said that the wooden heads were painted gold, soaked in a fluid designed to resemble blood and sent to companies as a “pop cultural mashup” meant to evoke the famous horse head scene in “The Godfather.” “We were playing around with ideas, and thought the famous Dalarna horse with its head chopped off made a great image,” Wallerborg said. However, one of the wooden heads, which were accompanied by notes reading, “Humble notice — two weeks left” with links to the firm’s campaign, was accidentally sent to the complaint department of hardware chain Clas Ohlsson instead of the advertising department. The head was perceived as a threat and company security scrambled to identify the sender. “I had to make a formal apology,” Wallerborg said. The heads were designed to draw attention to the Dalarnaarea “Golden Horse” marketing competition.

Photo of the Month

Graffiti is seen on the wall of a derelict building in the Plaka area of Athens, Greece

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interview Dr. Vesna Rakić Vodinelić, Union University, USA, Faculty of Law

No Rule of Law ■ By Zora Drčelić Photo: Zoran Petrović

The reason why I am going to leave the ballot paper blank is because I believe that if a certain number of citizens are serious about demanding political parties to return to their political legitimacy, whether in this election or the next, these citizens will be able to force political parties to deal with issues that are not short-sighted and to think about tomorrow and the future thereafter 20 |

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professor at Tennessee’s Union University Faculty of Law, Dr. Vesna Rakić Vodinelić is known for being a fearless thinker. She says that she really doesn’t want to think about the election campaign since, in Serbia, the campaign is always “dirty, unpleasant and riddled with political and personal deceit.” In this interview for CorD magazine, she explains why four years ago (during the 2008 election) she propagated the idea of choosing lesser evil and why you should have voted ‘for’ if you were not ‘against’.

Difference

In the last four years the difference between political parties has become dramatically smaller in their approach to citizens, regardless of their ideology.

Equality

Equality does not mean that we are equal in our capacities; however the legal system needs to give us all equal chances.

■ Do you think that leaving the ballot paper blank, which is something that many people in the intellectual elite do, will be a wake-up call for Serbian politicians, both in power and in opposition?

Accession

Accession negotiations are very serious; they last a long time and demand feedback in the shape of the changes in the country’s legislation.

country had rule of law in the past. Although, since I am over 60, I cannot claim that there has never been rule of law in Serbia. Equality is one of the basic human rights. Equality does not mean that we are equal in our capacities; however the legal system needs to give us all equal chances. The legal system doesn’t give us all equal chances at the normative level, especially when it comes to enforcing the law. Do you know how many Serbian citizens don’t have birth certificates? That is especially evident in the Roma population. A child that

- In the last four years, it seems to me that the difference between political parties has become dramatically smaller in their approach to citizens, regardless of their ideology. Some people who favour leaving the ballot paper blank have a really emotional approach to the issue. They think that none of the political parties deserve their vote. I don’t think that all politicians are the same, nor do I think that their attitude toward our past is the same. In terms of their attitude toward our citizens and human rights, there is virtually no difference between them. The fact that I scribbled on the blank ballot papers is not a reflection of my emotional approach or disgust, I just wanted to assess the political basis for such an idea. Everybody who seriously favours that idea has tried to find a basis for reinstating political legitimacy to politicians, which is one of democracy’s foundations. This is not only characteristic of Serbia. In France, which is considered to be an ancient democracy, many people have started to ‘fall ill to this disease’, as did people in Italy during the time of former PM Berlusconi when show-business partocracy started to slowly replace democracy. These are, after all, democratic countries which are capable enough of finding a way to keep people away from the The fact that I scribbled on the blank ballot papers is not a reflection of my emotional main historical course. At certain moments, they were on that course, but approach or disgust, I just wanted to they were usually implicitly, or explicassess the political basis for such an idea itly, removed by voters’ will. Far be it for me to propagate so-called blank votes. was born today will not get a birth certificate, just like That carries huge responsibility and I don’t do politics their parents. Many people don’t have IDs and within that way. The reason why I am going to leave the out an ID you can’t have a health insurance card and ballot paper blank is because I believe that if a cerare not eligible for welfare assistance. Children cannot tain number of citizens are serious about demanding go to nursery or school. All of that could be very easpolitical parties to return to their political legitimacy, ily dealt with through changes and amendments made whether in this election or the next, these citizens will to the Civil Procedure Code which is so removed from be able to force political parties to deal with issues politics and currently being proposed by the ombudsthat are not short-sighted and to think about tomorman and an NGO despite this law having been in the row and the future thereafter. hands of many state institutions several times. Do you think that we all have the right to find employment? Do we have equal treatment in courts? Why did politician ■ Recently you were quoted as saying that “Only Velimir Ilić get justice in court very soon after a man refuse is left from the rule of law in Serbia.” Can you hit him in the street and why is Marko Milošević’s case elaborate? (Slobodan Milošević’s son – editor’s note) considered - It is possible that I didn’t use those words exactly a statute of limitations? When there are such inequalisince that statement would entail me remembering the cordeditorial@cma.rs

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ties, we cannot claim to be a society of equal chances and if we don’t have equal chances, we don’t have rule of law or a legally run state.

■ Accession negotiations with the EU, following candidacy, is another tool to use in the election campaign. How ready are we, as in the state and society, for the negotiations?

- Accession negotiations are very serious; they last a long time and demand feedback in the shape of the changes in the country’s legislation. I am speaking here as a lawyer. Those are not the only changes required. If we are talking about the economy or politics, there are certain

■ The former Democratic Opposition of Serbia (DOS), i.e. the parties that made it, has been in power for the last 12 years. How would you grade the progress made in reforms so far?

- Very poorly. In the beginning, there was a lot of energy and enthusiasm that, for the most part, should be credited to the late PM Zoran Đinđić who, with the force of his personality, rallied people who were grumpy and did not believe in change which became very evident following his assassination. Then there were difficult circumstances to deal with like Kosovo declaring independence in 2007, which would seriously impact any state, and after that there was the global economic crisis that turned out to be very serious. However, most of the government’s reactions were inadequate, starting with relying on old sentiments like the Non-Aligned Movement, hoping that this sentiment would override political reality resulting in fewer countries recognizing Kosovo’s independence. There were also very weird demagogic decisions made in the economy. Vladimir Gligorov and Miroljub Labus did make some coherent proposals but there is no will to implement them.

■ What do you mean exactly? Adopting the euro as national currency?

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- Not only that, but setting priorities in economy – one moment we are in industrial production, the next we are in agricultural production, then we want to get involved in waste management. It seems that there is no plan. The Boris Tadić represents particular party interests, 10-year-development state doesn’t know what our and, on the other side, he needs to act like a comparative advantages over state president who represents the interests of other regional countries are. At a certain point, we all listened to citizens. Often, these interests collide politicians saying that our citizens are our biggest advantage, then there were schools demands in the Acquis Communautaire (accumulated which proved them wrong, then we moved onto ecollegislation, legal acts, and court decisions which constiogy and cleaning our river banks (we’ve cleaned five in tute the body of European Union law). It seems to me total), then we got fed up with that and turned to agrithat the last accessions – Bulgaria, Romania and Croatia culture as the only branch worth investing in. Following – have changed the way in which the EU treats these that was the production of Fiat vehicles in Kragujevac negotiations. These three countries have had, and still and now we are onto oil shale. This is all very flippant. have problems with their legislation and corruption (these are the topics covered by chapters 23 and 24 of the Acquis). I believe that, in our case, the two chapters ■ What should we do in order to have a depoliticized will be given priority. If negotiations do take place, the system of justice, health, education, state institutwo chapters, i.e. Serbian legislation, corruption and antions and a society as a whole that wants to get rid ti-corruption measures, are going to be discussed first. of the shackles of partocracy? I believe that negotiations will be very extensive seeing - We are always discussing consequences in public deas, when it comes to these areas, the situation hasn’t bates. That’s what I am doing in this interview too – I am changed a great deal for the better in the last ten years. indicating the more or less deleterious effects of certain During the negotiations, Serbia’s willingness to accept political deviations, and virtually nobody deals with the certain standards and European heritage as a part of its causes. I believe that shaping people to become responinternal legislation will be carefully monitored since acsible citizens rather than subjects starts very early on cession to the EU entails a country giving up some of its and that is a must in forming a child’s, and later an adult’s sovereignty, including the legal system. social being. I am under the impression that nothing

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superiority over the prime minister. much has been done in this respect. I have heard people On the other hand, the president is directly elected saying that teachers are to blame and that they should by citizens and is given substantial powers that should do their job with more enthusiasm regardless of the difbe in accordance with the Constitution without overstepficult financial position that they are in. It all resembles ping those powers. The government is more consolidated a vicious circle where person A shifts the blame to perconstitutionally and has more defined powers than the son B who shifts the blame to person C who, in the end, president. In some segments, we are struggling to see shifts the blame to person A. In the case of education, it these powers. Realistically speaking, the prime minister’s is a triangle made of teachers, the National Education and government’s Council and the According to the Constitution, the Serbian powers have been Ministry. In our reduced. The govGovernment has very big powers since its conscience, we ernment is made have reduced runs foreign and internal policy and we of political parsociety to mean are right to feel that foreign policy, in our ties that make the the state, but socountry, is exercised by the president with governing coaliciety is not the state alone. We the government having little influence on it tion, whether we are talking about cannot ask the pre- or post-election coalitions and this is reflected in the state to solve all our problems if we don’t behave like reministries that are feudalized in the sense that not only sponsible citizens who will question certain state acts. the minister but also the people closest to him come from There is general criticism, but no concrete acts made by the same political environment, and the same political responsible citizens. The media does not do much when party. Now, we have ministries that are run by the Demdealing with causes, they are only interested in conseocratic Party, those that are run by G17 Plus (whose quences, mostly scandalous consequences. influence is now reduced following Mlađan Dinkić’s departure from the government), as well as ministries run ■ What is your interpretation of the disproportionate relationship between the prime minister and president’s powers and responsibilities under the Constitution and the reality of political decision making, as opposed to the fact that the president is elected via direct elections and the prime minister appointed by the governing majority in parliament? We can offer hear claims that the president has overstepped his powers.

- According to the Constitution, the Serbian Government has very big powers since its runs foreign and internal policy and we are right to feel that foreign policy, in our country, is exercised by the president with the government having little influence on it. It often seems that the president runs economic policy instead of the government since he is often depicted in the public as an important factor in economic policy and has credited himself with some kind of progress. Let me mention Fiat in order to illustrate the point. The prime minister, who is at the government’s helm, is neither an economy expert nor a professional politician. He also doesn’t have a particularly high rating in his party which is the strongest part in the governing coalition. On the other hand, you have the country’s president, who is also the president of the Democratic Party. He allows the prime minister to form the government providing that they will win the support of the parliamentary majority. I believe that he chose a person to represent the Democratic Party’s interests, not someone who is ranked highly in the party. In this way, he established a power balance, i.e. the president’s

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by the Socialist Party of Serbia… It is worth mentioning that the country’s president has another public function – that of the president of the Democratic Party. The people who were asked to ascertain whether that constitutes a conflict of interest said that wasn’t the case. ■ Do you think there is?

- I do. In both cases, these are public functions that we’re talking about. As the political party president, Boris Tadić represents particular party interests, and, on the other side, he needs to act like a state president who represents the interests of citizens. Often, these interests collide. In order to avoid that, while trying to weigh up which function is stronger, I think that such occurrences should not be allowed to happen in the future.

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beyond what the Constitution says. This is an executive law and it must be below and not above the Constitution. I know that my colleagues, who deal with Constitutional Law, just as I do, say that a third term is possible because of the Constitutional Law, but I have to go a step further and ask whether the Constitutional Law is in accordance with the Constitution?

■ Free media is also a precondition of democracy. How can partocracy, that we are witnessing, be the culprit behind its oppression? How would you compare today’s media scene with that of the 1990s?

- Back then you had sides that were clearly polarized. On one side, there was the authoritarian regime of Slobodan Milosevic, and we all knew which media he controlled, and on the other, media that was considered opposition and free ■ How is that handled in serious media. At the time, the opposition democracies? media had the support of its con- The president of a political party sumers, there was no Internet, and can stay in that function even if apprint and electronic media pointed as the prime minThe government is made of were the main sources of ister, but if they are also the political parties that make the information. state president then they They had the support choose between the two governing coalition, whether we of those who read / lispositions. There is no one are talking about pre- or post- tened to them and supthat can reconcile particuelection coalitions and this is port, primarily financial, lar and general interests, it goes against human nareflected in the ministries that from abroad in order to able to survive. Today, ture. are feudalized in the sense that be the media or the political ■ In the case of Boris not only the minister but also the scene is not polarized, but Tadić, there is also cer- people closest to him come from there are several different of political power tain ambiguity about his the same political environment, centres that are hard to discern. new term as president. and the same political party It seems to me that there - The provision under is no clear separation bewhich President Tadić can tween the opposition and the authorities, because run for a third time is not contained in the Constituthey agree on many things and you cannot tell whethtion, it is contained in the Constitutional Law for the er there are two parties or one. Implementation of the Constitution. And just as I think Local media is almost destroyed and they don’t that Constitutional Law overstepped the limits of the have a specific audience. They are reduced to playing Constitution when it came to the general election and music and showing advertisements. When it comes re-election of judges since that is not mentioned in the to print and electronic media, those which attract Constitution but only in the Constitutional Law, I think the most attention sell scandalous content and this is that the Constitutional Law overstepped the limits of something that is widely read - shame on you if you the Constitution when it constituted the third presidendon’t know something scandalous. On top of that, Sertial term. bia is centralized. If something did not happen in BelI cannot claim that President Tadić did not have two grade, it did not happen at all and that is extremely seats. The fact that this third term was added by the irritating. There are only a handful of media outlets Constitutional Law for Implementation of the Constituthat foster analytical journalism. ■ tion means, in my opinion, that Constitutional Law went

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H[FOXVLYH IXUQLWXUH VKRZURRP

focus

Protecting Foreign

Currency Reserves A

ccording to economists and economic analysts at MAT magazine (‘Macroeconomic Analyses and Trends’), the dinar will continue depreciating against the euro and other solid foreign currencies with the possibility of the exchange rate reaching at least 117 dinars for 1 euro by the year end. The amount of available foreign currency will gradually decrease due to a lack of foreign investments, whilst our foreign currency reserves will be reduced by a further 500 million euros of extraordinary foreign currency outflow. By the end of 2012, foreign currency reserves will be depleted by at least one billion euros following various interventions on the foreign currency market whilst the foreign debt service rate will amount to 38% of our exports value this year. For this issue of CorD magazine we have asked some of Serbia’s leading economic experts the following question: How can we protect the country’s economy, business capital and profit planned for 2012 with such a negative outlook? of creditors in Serbia is utterly uncertain at this point and yet Reform extraordinarily important for preserving some kind of liquidiand avoiding abrupt cessation of capital influx which would Misunderstood tycause the forced adjustment of payment balance and have a heavy impact on the exchange rate, liquidity, living standard and budget. Currently, there is no capital in the country, both in the fiscal and monetary / financial sectors. The outcry against the exchange rate, the National Bank and the governor, who has been held as hoosing not to heed the ‘good-natured’ piece of advice responsible, is a miss or a cunning intention to instigate a rapid of ‘not spreading pessimism’, I need to underline that usurpation of foreign currency reserves and foreign currency savMAT’s latest reference rating is decidedly optimistic. In ings through devastating the National Bank’s integrity to the benits ‘Current Issues in Economic Policy’ edition, MAT emphasizefit of large debtors and importers. es that the euro is projected to grow by 10% by the year end. The majority of what can be done this year is to preserve relThis calculation was done on the basis of coherent projections ative stability and for prices and the exchange rate to stay within where the assumed GDP growth was 0.5%, export growth of 1 a certain limit but not at the expense of the fast depletion of foror 2%, 1% drop in imports, around 1% drop in domestic deeign currency reserves. They are our last safe haven and have to mand, FDI influx of 1.5 billion euros, and the inflow of longbe spent rationally and methodically in order for the state to buy term loans from abroad of at least 2.8 billion euros with 1.8 biltime for unavoidable public sector reform. lion going to the economy, in order for the total net outflow, i.e. Reform hasn’t even gained public legitimacy as a complex, for the debt payment to stand at 703 million euros and for fordeep, coherent and comprehensive concept yet. Even when there eign creditor exposure to fall is public talk about the reThe assumption of maintaining sufficient forms, they usually imply some below last year’s level. exposure of creditors in Serbia is The background to such ephemeral moves. The meanprojections is based on the ing of reform is creating more utterly uncertain at this point and yet necessity of debt payment space for employment and conextraordinarily important for preserving in this year and the years to current rationalization of costs, some kind of liquidity come (where servicing debt well calibrated redistribution of climbs over an average of 4 billion euros per annum) and on the fiscal burden, emancipation from the social function budget and fact that our economy and budget cannot survive without refiraising efficiency across all sectors. nancing through fresh loans. Pushing the realistic foundation If reform simply means ‘putting on more burden’ and is not of any kind of growth and the issue of being powerless to cona complex matrix and synergy of action, many reforms would solidate public spending in this election year aside, the biggest have already emerged. This year, there is still a possibility (or risks associated with preserving stability of not only the exnecessity) of conducting short-term fiscal measures that would change rate but the market as a whole come from the EU finantemporarily secure budget stability, extend the credit arrangecial sector. The assumption of maintaining sufficient exposure ment with the IMF and discontinue the borrowing from abroad.

Dr. Miladin Kovacević, economist and member of the editorial team at MAT monthly

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Continue To Fight Corruption

our business plans. From the standpoint of foreign investors, we have been demanding structural reforms for a long time which would animate economic and business growth. To protect the state economy and business sector, the executive powers must start implementing much needed tax reforms and stop further economic decline

Gustavo Navarro, Director General of Holcim Srbija d.o.o.

which is reflected in the shutting down of over 117,000 companies since 2008 until today and the growing share of the gray economy. Administrative obligations, imposed by the state, cost

conomic tendencies in Serbia have not been encourag-

Serbian companies 4.2% of GDP, i.e. 1.35 billion euros and loss-

ing for quite some time now. Changes are very slow and,

es of over 300,000 jobs. Of the 9000 construction companies in

in the last two or three years, the economic downturn

Serbia, one quarter are at the threshold of bankruptcy. This sector

has made things worse. This question should have been posed

is especially important since it has close to 100,000 employees. In order for the Serbian construction industry and its econo-

much earlier. Holcim, as well as other foreign investors and representatives of the cement industry in Serbia, have constantly underlined that in order for conditions to improve there needs to be regular business practices based on transparent business operations. Moreover, the framework of the so-called gray and black economy needs to be constricted as

From the standpoint of foreign investors, we have been demanding structural reforms for a long time which would animate economic and business growth. To protect the state economy and business sector, the executive powers must start implementing much needed tax reforms and stop further economic decline

my to return to the right path in 2012, both the government and manufacturers need to invest a lot of effort. The government needs to facilitate businesses by regulating the VAT system in this area which would enable a reduction of prices in the industry and generate more interest in consumers and increased production. On the other hand,

much as possible. I have said earlier that the state ‘pulls the

it is vital to increase exports, as well as to find a way to attract

strings’, particularly when it comes to investing in infrastruc-

FDIs bearing in mind that compared to other regional coun-

ture and simplifying bureaucratic procedures. Now, more so

tries, Serbia has an advantageous position.

than ever, bureaucratic procedures need to be reduced and the

The answer to your question is simple. The budget must be adjusted and structural reforms implemented. As long as

fight against corruption has to continue. We are currently in a situation where we have no secu-

we fail to comprehend that, through our business operations,

rity, especially in terms of production costs. The unrealistic

we affect each other and cannot make notable progress i.e.

dinar exchange rate, its fluctuations and inflation and the

improving the economic, business and social standards of

prices of basic energy products present a constant threat to

the country.

local market and in 2012, OMV Serbia will continue focusing on

Commitment to Market

maintaining and enhancing the network’s quality level, by extending and improving the services available at OMV filling stations, in order to offer the best services and products to our customers. We have recently opened the 61st filling station in Serbia

Karoly Lajko, General Manager of OMV Serbia

and we continue adapting our offering to the needs of our customers ‘on the move’. We will also keep rewarding our custom-

ers’ loyalty with various customer incentive promotions and

n the last few years, the effects of the global economic crisis were felt in the fuel retail sector and presented some challenges to our business. However, OMV Serbia man-

aged to overcome these challenges successfully thanks to its loyal customer base and the high quality and wide range of products and services it offers. OMV is committed to stabilizing and optimizing its current position on the

prize games at our filling stations.

In the last few years, the effects of the global economic crisis were felt in the fuel retail sector and presented some challenges to our business. However, OMV Serbia managed to overcome these challenges successfully cordeditorial@cma.rs

92 April 2012 | 27

focus

We Need Higher Purchasing Power

to survive on the financial help from our German and Austrian HQs. Our initial vision was different – we wanted to present Serbia as a stable and economically revived country. VW Group is currently the strongest company in the world. The German way of doing business has been traditionally well-accepted in Serbia, and, in the last few months, German and Austrian companies have created close to 2,500 new jobs in Serbia. Manolito Vujičić, Despite everything, we are still willing to do our utmost to change General Manager of Porsche SCG Serbia’s economic image – both micro- and macro-economically. On several occasions, I have underlined the great importance of n late 2010, when the crisis gripped Europe, we were mentally Fiat’s arrival to Serbia. Also, there is a heightened awareness about preparing ourselves to ‘survive’ 2011, a year which economy exthe importance of the auto-industry, as well as awareness about new perts announced to be the toughest so far. Our defence mechjobs and the revival of dormant production facilities. Finally, I think anism was our products which we marketed at the lowest possible that healthy competition is the basis for proper market functioning. prices combined with our financial offerings. That did yield some Porsche operates in line with this results. The company did not get The automobile industry needs a strong economic principle and only a sound rich but we did not lay off a single employee. Serbia. However, that has not happened and stable market, devoid of external and political influence and faAt the end of 2011, we had to and thus we are forced to sell our vouritism, can sustain this principle. tackle an ‘uncontrollable’ environproducts with virtually no margin We are not pessimistic and are ment in the local economy. Some constantly searching for new market placements. Every single comparts of Europe slowly started to get back on their feet (i.e. Germany) pany that has been closed and each worker that has been laid off in whilst others fell to the economic bottom. Serbia mean one less vehicle sold by us. However, we see the economThe automobile industry needs a strong Serbia with a high level ic crisis as a development opportunity and we have already received of employee economic security. However, that has not happened and sales inquiries for a substantial number of our vehicles. Nonetheless, thus we are forced to sell our products with virtually no margin. This since the bigger sales volume does not yield bigger profit, and as we way of running a business is not based on economic postulates and are often at loss, this is more survival than doing serious business. will become unsustainable after a certain point. Bearing in mind all of the aforementioned it is very difficult to Porsche SCG has 200 employees. If we continue to lower prictalk about generating profit today. es and salaries, the question is how long are we going to be able

environment and a predictable dinar exchange rate in order to operate normally. We were not too happy about the dinar appreciating for no apparent reason last year. Back then, monetary powers tried to convince us that they had tools and enough foreign currency reserves to prevent a sharp decline of the dinar. However, since late October, the dinar has depreciated by over 11%. Ninko Tešić, In Serbia you can often hear the following question posed by peoDirector General of the Impol – Seval Sevojno ple who are in favour of the current foreign exchange policy – “What Aluminum Rolling Mill do exporters want? They are complaining when the dinar is appreciating and they are complaining when it is depreciating.” The response If assumptions that the dinar is going to continue to depreciate to this question is ‘yes, we do.’ Large fluctuations, whether positive come true, then companies will have virtually no means of generator negative, do not suit the economy. Most of the business communiing their profits planned for 2012. Losses that the companies will ty thinks that dinar should not fluctuate so sharply and that it should generate because they will have to borrow money in order to invest, gradually depreciate to the level of this year’s inflation rate. and considering the current accounting system and a big difference Bearing in mind that the dinar strongly depreciated in the first between the exchange rate bid and offer rates, are going to be huge. few months of 2012, Impol Seveal turned to the Finance Ministry The economy is faced with a dilemma – we are either going to inwith an initiative for the Rule Book on the Layout of Chart of Accounts vest and have some kind of future or we are going to stop investing to be urgently changed in order to differentiate between unrealized and obtaining loans coupled with foreign exchange loss while the diforeign exchange loss and effects of nar depreciates and thus accomIn the last few years, Serbian the foreign currency clause thus enplish positive financial results. We, abling realistic financial reporting in as in Impol Seval, have chosen inbusinesspeople have agreed that 2012. By changing this segment of vesting and the future. we need a predictable economic the accounting system, companies In the last few years, Serbian environment and a predictable dinar and their planned 2012 profit would businesspeople have agreed that exchange rate enjoy some kind of protection. we need a predictable economic

Predictable Exchange Rate Imperative

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mirror Slovakia Election: Causes and Consequences

Monkey Business “Gorilla” is the codename given to a wiretapping operation in 2005-06, the details of which were, it is alleged, revealed in a secret-service file leaked on to the internet in December. It has shaken Slovak politics to its core market newcomer on the Slovak political scene and a member of the four-party coalition government that collapsed in October, has admitted that it had the Gorilla file ahead of the last general election, in 2010. On December 23rd, days after Gorilla’s publication, SaS issued a formal he file, supposedly compiled complaint to the Office for the Fight by the Slovak Information Against Corruption, a unit within the SloService (SIS), does not convak police force. A week later the general tain direct transcripts of the prosecutor’s office said it would set up a wiretaps, but purports to team to investigate the claims in the file. provide raw intelligence based on them. On January 9th Daniel Lipšić, the interior It discusses privatisation deals conductminister, put together an investigative ed during the second term of Mikuláš team to look into the issue. Dzurinda, a reformist prime minister in Some have questioned the file’s auoffice between 1998 and 2006. thenticity. Mr Dzurinda has claimed that Some Slovaks have interpreted Gorilla the entire thing is a fabrication. All the as an unwelcome reminder that the dubipolitical parties implious links between politics At the heart of the scandal lie allegations cated have rebuffed and business that thrived that bribes worth millions of euros were allegations of corrupt in the 1990s, an altogether dealings. Politicians murkier period in Slovakia, paid to officials to win various publicunder suspicion have may not have been entirely procurement and privatisation contracts pooh-poohed Gorilla as severed. Recently, hundreds kompromat timed to discredit them beactivity. He suggested that the release of of Slovaks threw eggs and bananas at the fore the election. Gorilla was designed to intimidate speparliament building in protest. It is certainly true that no corrobocific (but unnamed) individuals ahead of At the heart of the scandal lie allegarating evidence, such as audio recordthe March general election. tions that bribes worth millions of euros ings, have come to light. But various The Gorilla file has been known to were paid to officials to win various pubstatements from officials are chipping various insiders for some time. In 2009 lic-procurement and privatisation conaway at the doubts. The interior ministry it reached Tom Nicholson, a prominent tracts. Former ministers, representatives confirmed in January 2011 that a wireinvestigative journalist, who claims that from Austrian, French, Italian and Rustapping operation codenamed “Gorilla” the security services offered him “milsian multinationals, and tycoons from took place, and that it was legal. A former lions” to drop it. In the end he was unable Penta, an investment fund dubbed the senior anti-corruption police officer and to find a media outlet prepared to pub“fifth coalition partner” in Mr Dzurinda’s a former head of the National Security lish it without corroborating evidence. second government, are all named in the Bureau have said publicly that the file is Freedom and Solidarity (SaS), a freefile. So are all four political parties in Mr. Dzurinda’s second coalition government. Penta, which employs more than 25,000 people and took in €2.1 billion in revenues in 2010, is one of the dominant investment players in Slovakia’s small market. One of its rivals, J&T, is known for having hobnobbed with members of the centre-left party Direction-Social Democracy (Smer-SD), led by another former and the current prime minister, Robert Fico. Both funds have been aggressive bidders for most publicprocurement contracts in Slovakia. A spokesman for Penta said that the group denies any involvement in criminal

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authentic and that the information in it is likely to be true. On January 11th Jaroslav Spišiak, the police chief, told a newspaper that “developments could have happened in the way they are described” in Gorilla. Ivan Gašparovič, Slovakia’s president, approved the questioning of Karol Mitrík, the SIS director, who is usually bound by an oath of secrecy. For Mr. Dzurinda, a giant on the Slovak political scene, the allegations that massive corruption in public procurement took place on his watch had a huge influence on the March election, although there have been no suggestions that he took bribes himself. It is not only the centre-right that has been embarrassed by Gorilla. Mr Fico is described as visiting a safe flat in Bratislava to discuss purges in his party and financing with Penta’s co-owner, Jaroslav

Haščák. Smer-SD is known to have received about SKK 1.2m (around €40,000) from Penta magnates in the early 2000s. Mr. Fico has said that he might have met Mr. Haščák, but has made no comment on the content of their meeting. Still, such funding is not illegal under

The Outcome

tory in the March elections. Smer-SD won 83 of the 150 seats in parliament, giving it a healthy majority. No party has ever governed alone in Slovakia since the country threw off its communist shackles. As the centre-right is dragged through the mud, Mr. Fico is likely to

Following the Slovakian election last month, Robert Fico and his socialdemocratic party, Smer (Direction), won a huge 45% share of the vote, giving it 83 seats in the 150-member assembly. On the other side, the biggest loser was Mikuláš Dzurinda (pictured), a former prime minister who held office between 1998 and 2006. His SDKÚ party, which led the outgoing coalition, barely squeaked into parliament.

Slovak law, and Mr. Fico has long since cut ties with Penta. In 2008 he said that he likes financial groups “as a goat likes a knife”. After taking power in 2006, his government gave Penta a public rap on the knuckles by cancelling the privatisation of Bratislava airport. Indeed, Mr. Fico won a landslide vic-

continue gaining from the drop in public confidence, as are political novices such as SaS and other fresh faces. SaS fell out of favour after toppling Ms. Radičová’s cabinet from within over the euro last autumn. The gorilla has been spotted, but it is unlikely to leave. ■

cordeditorial@cma.rs

92 April 2012 | 31

interview Nikola Pavičić: Honourary President of Tarkett Company

Only Export Will Bring New Jobs ■ By Mirjana ZEC

The strong dinar has been created artificially on the back of a weak economy. This is ‘killing’ our exports and hence we have the lowest export figures per capita in Europe. The state is repaying old loans with new ones and net losses recorded by businesses in 2010 were just over 4 billion euros. Companies paid one billion euros more in bank interest rates than in 2009

export figures per capita in Europe. The are insufficient. Haven’t the creators ikola Pavičić is a well restate is repaying old loans with new ones of the country’s economic policy figspected businessman, adinstead of using foreign currency revenue. ured that out for themselves? visor to the Serbian Deputy The net losses recorded by businesses in PM, member of the manag- Many individuals and institutions in the 2010 were just over 4 billion euros. Coming boards of the Serbian country and abroad speak more or less panies paid one billion euros more in bank and Vojvodinian Chambers of Commerce directly about the same things as I do. interest rates than in 2009. and other business associations. He is Our public is well aware of the fact that, in Devastating illiquidity is pillaging the more than competent enough to talk the last 10 years, we have been spending country and the average payment period about the problems that have plagued what we haven’t earned and that public is now closer to 5 months. The worst thing the Serbian economy for years and spending is 25% higher than allowed by is that 250,000 people have lost their jobs points out solutions that will take us out GDP. We also know that due to this excesin the last three years. of this crisis. Mr. Pavičić is also a successsive public spending the state has been The government’s attitude ful director at the international company Tarkett. He The country’s total debt, together with to this is flippant and they was appointed managing the foreign trade deficit, should not be are trying to calmly convince citizens that everything is all director before Tarkett took twice higher than annual export right. over Sintelon from Bačka Citizens, on the other hand, are bePalanika. Hence, we have asked the now borrowing money constantly and imposhaving like all of this is happening to honourary president of Tarkett, to reing high taxes to fill up the budget. someone else, not to them. Nobody is spond to questions that are frequently Interest rates on corporate loans are concerned that, objectively speaking, we asked in business circles and which can the highest in Europe and these interest are only few short steps from the abyss. help us in finding the right solutions to rates are killing economic growth in Serour current issues. bia. Hence, Serbia is yet to reach 50% of the industrial production from 1990. A strong ■ You have suggested several measdinar has been created artificially on the ures for the reduction of prevailing il■ You have been very vocal in warning back of a weak economy. This is ‘killing’ liquidity. Have any of those measures that Serbia will have to battle with huge our exports and hence we have the lowest been taken onboard? debt since both production and export

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- We demanded for the problem of illiquidity, high interest rates and business funding to be resolved. We also have strong support from the Serbian Chamber of Commerce and Serbian Employers Union. However, it seems that all of our suggestions have simply disappeared from the public scene and got lost in inter-ministerial procedures. Our proposal was for the government, the National Bank, Association of Banks in Serbia and the Serbian Chamber of Commerce to sit together and find a solution for reducing exorbitant interest rates that businesses have to pay, as well as to find a proper solution for consolidation of previously obtained loans and new loans. The government has elegantly pushed all of these problems under the rug and it all boiled down to a lukewarm recommendation from the government to banks to conslidate loans that businesses cannot repay.

■ As we know, the state’s debt is very high and it exceeds 45% of the national GDP. What is the solution to this problem? - The debt limit of 45% of national GDP applies to countries with regulated economies, the countries where export is higher than import. In the case of other countries (where import is higher than export) different indebtedness rules apply. The country’s total debt, together with the foreign trade deficit, should not be twice higher than the country’s annual export. Once you cross that line, the red lights go off and it falls into a debt crisis. In Serbia, debt is not twice higher but 3.5 or even 4 times. Serbia has sunk into a deep debt crisis since it is repaying old loans with new ones and is falling fast into deeper indebtedness. Currently, 25% of our com-

The process of forming a new government that is capable of implementing reforms in Serbia, will last a little bit longer. During that time, businesses will, again, try to save themselves and cope as they always have. Their losses will only grow and they won’t be able to repay their bank loans which will cause a crisis in the country’s banking system. Banks will be more engaged in selling off their debtors’ collaterals than granting loans. Once illiquidity culminates, many companies will be forced to declare bankruptcy and many people will lose their jobs. The state’s budget is going

■ So, if there is no way to cut back on public spending, why doesn’t the government work toward increasing production and devising measures that will facilitate that? - There is no political will because of the elections. The typical politician in Serbia, who, for instance, has to deal with adjusting pensions to the average salary growth in industry, construction and agriculture, thinks along these lines – so, we have 1.6 million voters and several hundred thousand members of their families. If they are unhappy with the promises we give, we will loose votes. That is dangerous and we are going to stay clear from that. We are going to assure a moderate adjustment of pensions in line with public sector salaries and we are going to incorporate fiscal responsibility rules in all of that. Just to mention, civil servant salaries are 35% higher than the average salary in the processing, construction and agriculture industries.

panies have practically declared insolvency and cannot repay their loans since they don’t have the money to do so. The solution to this problem is to have 15 billion euros worth of exports in this and the years to come which, along with remittances from our people living abroad and new FDIs, would enable both the state and companies to repay their loans and preserve foreign currency reserves.

to be short of revenue and there could be problems with the disbursement of pensions, civil servant salaries and social contributions. This bleak scenario can only be stopped by a government which should enjoy the support from all pro-European political parties. There is no place for political buddies, so-called experts and pencil pushers in this government. Such a government needs to be made of people who are dispassionate about politics, competent and trustworthy. Don’t tell me that we can’t find 20 young, successful and competent people in Serbia. Forming such a government will take some time.

Although in the 1980s we were a small country, we were a political giant in the world and economic elite in the Balkans and Central and Eastern Europe

■ Why hasn’t the law stipulating shorter payment terms (60 days) still been enacted? - The reason is very transparent and true to form of this government. The state did not find money to settle its obligations and did not want to sanction itself with this new law. ■ As an election year, can we expect the new government to start operating at full speed as of autumn? - I think that we won’t have a government dedicated to its job by the autumn.

■ Why have FDIs been so modest? - Investors, whether domestic or foreign, are attracted or deterred by a country’s business climate and environment. High interest rates, devastating illiquidity, and an overrated dinar that is destroying our export, are certainly not appealing to investors. They come to Serbia because of

cordeditorial@cma.rs

92 April 2012 | 33

export benefits that Serbian companies have. With such a strong dinar, export makes no sense. Just look at our biggest steel exporter – Smederevo Ironworks. Last year, the company generated a huge loss, almost 30,000 euros per employee. Who would export with such huge losses!

ries in economy in the following four years. Pensions should also share the same destiny as salaries in the economy. Interest rates need to be reduced to the average interest rates in the European community. I would declare contracts

dinar makes imported goods more competitive. That is the main reason why so many companies have folded and why so many people lost their jobs. The dinar should have a realistic value which is the case with currencies of countries that are large exporters. Only export can save overindebted countrys and companies. Export brings new jobs too. If, in the following four years, close to 20,000 SMEs increase their production, we are going to have a solution to the high unemployment rate.

■ The average salary in Serbia is just over 300 euros. How can this salary be stimulating for the workforce? - Workers more appreciate the stability of their job than their salary. The salaries in Serbian companies are low and irregular. One third of companies are 90 ■ How would you compare the curdays late with reimbursement of salarent economic environment with that ries whilst employees are kept quiet and of the 1980s? suffer. Civil servants, on the other hand, - Back then, all we talked about was openhave salaries that are 35% higher than ing new factories, creating new jobs, buythose in production, which actually gening new flats, exporting to the west, east erates budget revenue. This is a paradox and countries of the Non-Aligned Movethat exists only in Serbia ment (one third each). AlWe won’t have a government dedicated though we were a small counand is a social time bomb. to its job by the autumn. The process try, we were a political giant the world and economic ■ The Chairman of the Inof forming a new government that is in elite in the Balkans and Cendependent Trade Unions capable of implementing reforms in tral and Eastern Europe. We of Serbia, Ljubiša Orbović, devised and implemented says that any employer Serbia, will last a little bit longer economic reforms. that is not regularly reimToday, everybody, like Obama, Merkel stipulating loans with extremely high inbursing salaries should be prosecuted. and Putin, talks about economy, and we terest rates usurious. The benchmark inWhat do you think? are still on about the crisis and how to terest rate generates high interest rates - It is very difficult to have a normal soovercome it. We always have something in corporate loans and this benchmark cial dialogue if you are threatening the better to do and expect somebody else to should not exceed 5%. other side with criminal prosecution get us out of a crisis. We know more about Annual export worth 15 billion euros for the things that, as far as I know, are crises in other countries than in our own. would save the Serbian economy. The not considered criminal offences in any National Bank should stop ‘rescuing’ the other European country. Salaries are late dinar by spending foreign currency rein most companies in Serbia due to the ■ Following the results of the elecserves. In the following four years, the difficult situation that they have found tion, what do you expect the new govdinar should be allowed to reach its real themselves in and less as a result of ernment to do? value. Inflation in Serbia will not be cured employers’ who are dishonest and evil. - I am openly in favour of having a govby high interest rates and is a result of The irregular disbursement of salaries ernment of national salvation that will be excessive public spending. Export should should qualify a company for automatic supported by all pro-European parties. be supported by reasonable taxation, and bankruptcy. If you ask me, I would rathReforms in Serbia cannot be implementexport generated profit should be exempt er use the bankruptcy estate to pay off ed if there is no support from abroad. from tax. In the following three years, the workers than to settle obligations toHence, the new Serbian Government agricultural budget should reach 6% of ward the state and other creditors. should win the trust of the people who the total budget and in 2016, 10%. are going to offer us that financial support. A coalition government with weak ■ If you had the choice, what measures support in the Serbian Parliament will would you propose immediately? ■ Do you think that FDIs are the only never win over such trust, regardless of remedy that can cure unemployment - Excessive public spending is the main who puts that government together and or do you think that the state doesn’t cause of all evils that are plaguing the how much that person believes in our have a serious employment policy? Serbian economy. Public sector salaries European future. ■ need to be reduced to the level of sala- Our economy is weak and the strong

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apr 2012 business leader’s meeting point

Page 40

Page 44

Page 48

Dragan Lukač,Chairman of the

Saša Vučinić,

John Pearson,

Industry and Agriculture Neglected

Accelerating Permit Issuing Procedures

Double-Digit Growth

Novi Sad Regional Chamber of Commerce

Mayor of Subotica

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local news

Suspicion

Business Dialogue

“The threat of force is causing suspicion, and in the Balkans, between the sharp statements and actions, there is little difference between action and words. It is important to notice the absence of the international community’s reaction,” — Oliver Ivanović, State Secretary for Kosovo and Metohija.

01 Piraeus Bank

Strengthened Capital Structure Piraeus Bank has completed the Tender Offer to purchase existing securities for cash. The Tender Offer referred to subordinated and hybrid securities totalling €489m. Barclays Bank Plc and Morgan Stanley acted as Dealer Managers. Piraeus Bank accepted offers in the total amount of €144m, of which €60m is subordinated securities and €84m hybrid securities. This Tender Offer has enabled Piraeus Bank to safeguard its capital position and strengthen the quality and structure of its regulatory capital, with the increase of its Core Tier 1 capital by €83m.

03 ikea

IKEA plans to invest close to 250 million euros in building five department stores in Belgrade, Novi Sad, Niš and Central Serbia with each store having around 400 employees

Mikael Olsen, (left) and President boris Tadic When asked by the media whether he felt that he was used by the Serbian authorities due to the fact that his official visit to Belgrade and meeting with President Tadić was agreed in the middle of the election campaign, IKEA’s CEO Mikael Olsen said: “My visit to Serbia was initiated back in June 2011 and is a part of my tour of Southeast Europe. My meeting with the authorities in four countries was strictly about business, with the goal of moving IKEA’s investments in those countries forward.” He also said that he does not fear the change in the government in Serbia and that he will continue negotiations with any officials that have influence on decisions that are important for IKEA’s further development in Serbia. 92 April 2012

H&M in Belgrade, Niš and Kragujevac Swedish clothing retailer H&M plans to open stores in Belgrade, Niš and Kragujevac H&M’s team has arrived to Belgrade to study the domestic retail sector and has already picked a few locations for their stores. The first store is definitely going to be opened in Belgrade where the brand is likely to present its new autumn collection. H&M is known for its afford-

04 energy

Department Stores

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02 retail

able youth clothing. The company operates in 38 countries, has 2,200 stores and 87,000 employees. The brands that are H&M’s main competitors price and quality wise are New Yorker, Stradivarius, Bershka, Zara and Mango since H&M sells clothes in different pricing ranges.

05 lidl

EPS Negotiating With Three Energy Companies from Spain

New Supermarket in Zrenjanin

CEO of Electric Power Industry of Serbia (EPS) Dragomir Marković has signed a cooperation protocol with three Spanish renewable energy companies - Sunco Renewable Energy, Energy Resources and Grupo Labaro. At a gathering in the Serbian Academy of Science and Art, Marković underlined that renewable energy sources were an integral part of safe energy supply, environmental protection and economic sustainability.

The first location is secured following Lidl signing a land purchase agreement in Zrenjanin. Unofficial sources says that this discount supermarket chain is currently negotiating opening several more supermarkets in Serbia and that the construction of these facilities will start once the relevant contracts on purchase of land are signed. The construction timeline is not revealed.

Dragomir Marković CEO of EPS

Sunco Renewable Energy is implementing solar energy projects, Energy Resources specializes in design services, construction and hydro-power based installations, while the third company is engaged in project design, construction and financing of waste management facilities.

www.cordmagazine.com

German company Lidl will build its first supermarket in Zrenjanin which marks the company’s official arrival to the Serbian market

06 Labor law

New Jobs or New Sackings? One of 35 chapters that Serbia shall has to negotiate after getting the candidacy for the EU membership refers to social policy and employment More flexible Law on Labour means the opening of new jobs or new sackings? The Minister of Labour and Social Policy Rasim Ljajic said to ‘Blic’ that the Law on Labour ‘is in line with the international conventions on labour to a great extent’. On the other hand, foreign investors complain that the Law on Labour is very rigid especially the section referring to the sacking of workers at times of crisis. The government got the same message from the IMF which suggested changes referring to the length of labour contracts for a limited period of time, work and severance pay. ‘The limited labour contract in Serbia is valid for a year and after that as per the law in force, a worker has to be taken on to work for an indefinite period of time. Some investors hesitate to employ people they are going to need for a project which is to be finished within two or three years,’ Bogdan Lisovolik, Chief of the IMF Office in Serbia says.

Election “Institutions in Kosovo plan to stop Serbian elections in Kosovo in every way, even by force if necessary,” — Jakup Krasniqi, President of the Kosovo Parliament.

07 Credit Bureau

Placements & Postings appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Credit Reports Online Citizens are now able to get their complete credit report and an overview of their financial Veroljub Dugalić, Secretary obligations towards banks compiled by the General of theSerbian Bank Association Credit Bureau via the Internet “The Association of Banks of Serbia is not going to charge anything for downloading these reports by the end of June. As of 1st July, one report will be free while following reports are going to be charged in line with set tariffs” - Secretary General of the Association of Banks of Serbia, Veroljub Dugalić said at a press conference. “This service has been devised together with the Interior Ministry and is a relief primarily for people with physical disabilities or those unable to leave their homes,” added Dugalić. Citizens can apply for this service at a bank or the Credit Bureau while those that have a certified e-signature can fill in their application form online. So far, between 1,000 and 2,000 people have obtained an e-signature and it is expected that such services will get more people interested in having a certified e-signature.

Ivan Milosevic, new Director of Železara Smederevo d.o.o.

08 Finance

Public debt increases by € 2.4 billion

Serbia's public debt at the end of 2011 stood at €14.5 billion, increasing by € 2.4 billion compared to the end of 2010 Most of the increase related to direct government debt, €2.0 billion, while indirect government debt rose by €397.1 million. As estimated by the NBS, at end-2011 public debt reached 45.8 percent of GDP. The figure released by the Ministry of Finance is lower (45.1 percent). The difference lies not in the data on the stock of public debt provided by the NBS and Ministry of Finance, but in their GDP estimates. Once the Republic Statistical Office publishes the final GDP data for 2011, the Ministry of Finance and NBS’s figures on the public debt share in GDP will not differ. Under the Public Debt Law, data on the stock of public debt released by the Ministry of Finance do not contain the debt of social insurance funds and local governments. In order to assess compliance with the fiscal rule on the share of public debt in GDP (Budget System Law), the debt of social insurance funds and local governments needs to be included in public debt, as the rules apply to government in general. Source: TANJUG

09 Swarovski

Ansgar Borneman,

New General Manager of Nestlé in Serbia

Frederic Coin, New President of the Executive Board of Societe General Bank Serbia

New factory in Subotica The Austrian company Swarovski will build a new factory in Subotica, thus investing €21 million euros and providing jobs for 550 people Swarovski CEO Markus LangesSwarovski and Serbian Economy Minister Nebojša Ćirić signed an agreement concerning funds for direct investment, whereas the agreement on alienation of construction land was inked by Langes-Swarovsk and Mayor of Subotica Sasa Vucinic. The ceremony was attended by president Boris Tadić, Prime Minister Mirko Cvetkovic, Minister of Environment and Spatial Planning Oliver Dulic and Austrian Ambassador Clemens Koya.

Vojislav Glavinic, Deputy CEO in Delta Agrochemica

In its second session, the assembly of the company for steel production and processing, Železara Smederevo d.o.o. appointed Ivan Milosević director of Železara Smederevo d.o.o. Prior to assuming the position of director, Milosević performed the duty of executive director – Železara Smederevo operations. Ivan Milosević was born in Smederevo and went on to graduate in the Faculty of Mechanical Engineering at the University of Kragujevac. Mr. Milosević joined Zelezara in August 2000 as an engineer and finishing railway technologist in the Hot Strip Mill of Železara where he progressed to the position of director at the mill in 2009. His achievements and working relationships with employees helped him with recommendations of getting the new and even more demanding position of General Manager – production support and Kucevo branch, which he began on May 4th, 2011. The same year, on August 18th, he assumed the duty of general manager – Finishing Operations. Ivan and his wife live in Smederevo and have two children. The former CEO of Nestlé ice cream in Germany, Ansgar Borneman, was named on the 1st of February as General Manager of Nestlé Serbia, replacing Cedric Bohemia, who, after two years of dedication to the Serbian market, has become part of the company’s management team in their European operations. Mr. Borneman joined Nestlé in March 2003, in the position of director of marketing for Nestlé ice cream in Germany. Four years later, he became the executive manager of its ice cream division, carrying out this function until his recent arrival in Serbia. Prior to joining the company, Ansgar gained significant experience and expertise working in other international food companies, not only in Germany but in other parts of the world. Mr. Coin will replace Antoine Toussaint in the position of CEO of Societe Generale Bank Serbia. Frederic Coin graduated from IEG in Paris (political sciences) and did his post-graduate in economics and management at the University of Paris Dauphine. He joined the Societe Generale Group in 1993, first as general inspectorate of the bank and went on to be head of the commercial program in Nice, France. From the year 2000, he had been head of the sector for retail banking and small businesses in Egypt. As of 2007, Mr. Coin was general manager of the Banque de Polynesia, the Societe Generale Group subsidiary and the second largest bank in that area. Vojislav Glavinic joined Delta M Group in 2002 as Deputy CEO in Delta Agrochemical. From 2004 until 2011 he held the position of CEO of Pekabeta and C Market, being responsible for reconstructing the business and merging with Delta Maxi Group, and as CFO of Delta Maxi Group being in charge of strategic decisions and running the process of company selling. When Delhaize took over, Mr. Glavinic became VP, for strategy development and planning, for the Adriatic area. In January 2012 Vojislav Glavinic became CEO of Delta Real Estate Group. Currently, Delta Real Estate’s portfolio includes retail, office, hotel, and residential developments as well as prime locations all over the region with a value of 1 billion euro. Mr. Glavinic holds an engineering degree in agriculture economy from the University of Belgrade.

cordeditorial@cma.rs

92 April 2012 | 39

Location

Business Dialogue

“Who manages Fiat has the right and the duty to decide its investments and the most convenient locations where to make them. It doesn’t have the obligation to think only of Italy,” — Mario Monti, Prime Minister of Italy.

Interview Dragan Lukač, Chairman of the Novi Sad Regional Chamber of Commerce

Industry and Agriculture Neglected In the past, chambers of commerce have been responsible partners and support to companies and entrepreneurs, on one side, and local, regional and national authorities, i.e. the creators of economic policies, on the other

“A

t this time of prevailing economic crisis, the chambers of commerce are having to deal with new challenges and business conditions as we and our economy share the same destiny” – says Chairman of the Novi Sad Regional Chamber of Commerce, Dragan Lukač and adds that, despite the economic downturn, the Novi Sad Chamber of Commerce has been managing to fulfil its obligations. “Additional engagement made it possible for us to continue meeting the demands of our members in a timely and satisfactory manner, as well as to represent, protect and promote our economy’s interests both here and abroad.”

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investors and improve the business environment? - Apart from capable local authorities, and in order to run a business successfully, there needs to be macro-economic stability. In that respect, the uncertainty surrounding talks with the IMF and the candidacy and election year have not benefitted us, nor will they benefit investments this year. In addition, having a stable dinar exchange rate is very important for increasing export, as well as for the import of raw-materials. ■ Investors mostly complain about inadequate regulation and unpredictability of the business environment. What can the Chamber do in order to advance this environment? - We should underline that investors firstly make a decision in which country to invest, followed by choosing a

■ Vojvodina has received a great acknowledgment from the Financial Times by being named one of the best investment destinations in Europe. How much is this acknowledgment goAs the biggest town in Vojvodina, Novi Sad has a potential ing to advance the business to offer many benefits to investors like highly qualified climate in Novi Sad and Vojvodina as a whole? workforce, good geographical location, custom duty free - It is very important to be access to the market of over 190 million consumers and recognized in this way by the many other financial and tax incentives Financial Times, which is one of the top economic publications. This acknowledgment local community where they are going to launch their will primarily result in good references that we are going production or build a distribution centre or some other to be able present to foreign investors. We will be able to business facility. As the biggest town in the Autonomous say to them that a most prestigious magazine has selected Province of Vojvodina, Novi Sad has the potential to offer this place as an area where they should invest their capital many benefits to investors like a highly qualified workand plan their businesses future. force, a good geographical location, custom duty free access to a market of over 190 million consumers and many ■ What urgent measures should the state undertake in other financial and tax incentives. order to fully utilize the interest expressed by foreign As always, the Chamber of Commerce has an active

92 April 2012

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Priority “All reforms that can speed up the process of Serbia joining European Union should be high up on the priority list of the new government,” — Indermit Gill, World Bank Chief Economist for Europe and Central Asia. role in submitting proposals and launching initiatives with the relevant state institutions with the aim of removing hurdles that are preventing potential investors from coming here. Our Chamber has developed many formats in promoting the potential of our region through appearances at international fairs and gatherings, and through the signing of cooperation agreements with other international chambers of commerce and via our website.

■ So, in that context, how would you rate the cooperation between the Novi Sad Chamber of Commerce and relevant state authorities? Are they ready to acknowledge the problems that the chamber and its members have been facing on a daily basis? - We have already said that the regional chamber of commerce is, on one side, a partner to companies and entrepreneurs, and, on the other, to the relevant state authorities. Through having a responsible approach to such relations, we have created trust that facilitates communication and a readiness to see problems that businesses have been facing in a proper way with the aim of finding an efficient solution.

■ Do you think that Vojvodina opening its office in Brussels has met with expectations and what kind of direct benefits did the Novi Sad Regional Chamber of Commerce have from this project? - It is still early to talk about the results of the Vojvodina Regional Office in Brussels. The Novi Sad Regional Chamber of Commerce says that, by opening its office, Vojvodina now has an opportunity to be in touch with a great number of regions that have their representative offices in Brussels and through which we can promote the interests of our business community. ■ What are the Novi Sad Regional Chamber of Commerce’s immediate priorities for 2012?

■ At the Kopaonik Business Forum, which took place at the beginning of last month, businesspeople, on one side, and the Serbian Government and National Bank of Serbia on the other, often did not see eye-to-eye. What

It is still early to talk about the results of the Vojvodina Regional Office in Brussels. By opening its office, Vojvodina now has an opportunity to be in touch with a great number of regions that have their representative offices in Brussels is your view of this disagreement about the government’s measures and NBS’s fiscal policy from the perspective of someone who comes from Vojvodina’s capital? - For the past 20 years, Serbia has been battling crisis and has been spending more than it earns. Year-on-year, our debt grows and every government leaves its successors to deal with it and that has been going on since the 1980s. What was emphasized at the Kopaonik Business Forum was that the future government should firstly devise a new industrial policy and that the government needs to have a Ministry of Industry that could closely collaborate with the Ministry of Agriculture and Ministry of Education. It was also said that Serbia needed to return to its natural potentials, for the country to be re-industrialized, for agriculture to be modernized and for the government to devise a master plan called ‘Industrial Policy of Serbia’. Also, we need a development bank and we should stop being hostages to social policy which is something that we completely agree with. We think that agriculture could be a diamond in rough not only for the Vojvodinian but also the Serbian economy; however the state has been neglecting agriculture. This year’s agricultural budget of 300 million euros is bigger than previous ones but still lower than it should be.

- We expect the Serbian economy to continue with its recovery in 2012, following recovery of the global economy. Growing investments and export will be the key prerequisites for stable economic recovery and sustainable economic growth. The activities of the Novi Sad Regional Chamber of Commerce in 2012 will be carried out in line with set economic policy goals in the next period, namely: macroeconomic stability, sustainable economic growth and development of a competitive economy, increasing employment and living standards, and balanced regional development of the country. The main direction that the Chamber will take is geared towards encouraging the development of export-oriented industrial sectors (electronics, motor vehicles and IT sector), and making sure that businesses quickly adapt to the standards and norms in trading with the EU in order to efficiently use EU financial assistance in the framework of pre-accession funds (IPA funds). Due to the specific structure of the economy in the region, which is dominated by agri-complex, and considering the importance of funding, current agricultural production and investing in it, the Chamber will insist on finding the optimal model of agricultural financing on a long-term basis. ■ cordeditorial@cma.rs

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regional news

Tricky things

Business Dialogue

“This is the third assassination attempt on me. If I was in the car, as I should have been, I do not know if I would’ve survive. I stated tricky things in public: Cypriot money and a bunch of other things that bother me,” — Velimir Ilić, Leader of the New Serbia Party.

01 Bulgaria

02 Croatia

Freight Railways to Be Privatized

IKEA Opening Two More Stores Croatian Prime Minister Zoran Milanović met with representatives from the Swedish company IKEA to discuss the home decorating giant's plans in Croatia

The privatization of Bulgarian State Railways (BDZ) freight services is inevitable and will happen in 2012

Bulgaria’s State Railways company has been experiencing chronic financial problems, with debts, as of October 2011, amounting to some €400 million euros. “After the privatization of BDZ’s Freight Transport, the proceeds will remain in BDZ and will be used to cover all outstanding dues, including those that are due in 2012,” said BDZ CEO Vladimir Vladimirov. In contrast to the Passenger Transprot section of BDZ, Freight Transport has been steadily registering profits. Vladimirov suggesting that the Bulgarian state could apply to the European Commission to allow it to further support BDZ’s Passenger Transport in order to “salvage it.” The BDZ CEO said that the price expected for the sub-company is another important matter - BDZ is presently expecting to receive some €100 million euros for the deal.

IKEA is to open its first store in Croatia at the end of 2013. The Swedish Ambassador to Croatia, Fredrik Vahlquist was also at the meeting and added that the IKEA store in Zagreb would be the first of its kind in the region. He also said that long term plans included the opening of two more stores in Rijeka and in the Dalmatian city of Split. The Swedish group sees great potential in expanding cooperation with local suppliers. “Tvina and Feroplast are two local companies that have

Montenegro and Turkey have significantly improved cooperation in investment protection, social welfare and civil air transport. Last month the two countries signed agreements related to these fields in order to improve the exchange of goods. In 2011, the goods exchange between Turkey and Montenegro was nearly €31.6 million. Prime Minister Luksic said he hoped the agreements would attract more Turkish investors, especially those interested in the Steel Mill in Niksić, airport infrastructure (reconstruction of the Berane airport) and the mining industry. Turkey has already supported Montenegro in its NATO bid. According to Prime Minister Luksić, “Turkey is one of the most important members of the Alliance in this region and its support means a great deal to Montenegro.”

05 Albania

Sovereign Debt

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92 April 2012

previously worked with IKEA for a long period of time, and they will seek other suppliers in Croatia too,” said Ohlsson. Milanović stated that the government would offer complete support to IKEA in the realisation of this important investment, saying it would create jobs and provide wider opportunities for cooperation with local industry. Source: Jutarnji list.

04 Macedonia

Underground Boulevard

03 Montenegro

Improving Cooperation with Turkey

Zoran Milanović (left), Croatian Prime Minister and Mikael Ohlsson, Ikea Executive Director

Koce Trajanovski (left) Skopje Mayor and Limak's Haldun Kokturk

Turkey's Limak group is to start building a kilometre-long underground street in Macedonia's capital, aimed at easing traffic

The Mayor of Skopje, Koce Trajanovski, and Limak’s head of development, Haldun Kokturk, signed the deal. Under the terms of the deal, the company will build an underground street and hand it over to the city for free. In return Limak will be able to build a large commercial and residential complex on land above the street. Limak bought the sites 32,000 square metres in February for €3.3 million euros. Under the deal, the company has six years to complete the entire project, but it must first build the tunnel before it can start construction above ground. Estimates say that the underground road will cost tens of million of euros. “The project is still in the development stage and we do not know exactly how much it will cost,” Haldun Kokturk said. The underground street is one of two that the city plans to build in coming years to ease heavy traffic jams in its centre.

Finance Minister Ridvan Bode spoke reassuringly on the country’s high sovereign debt, saying it is not a problem for the economy since it is mainly internal debt and hence not at risk due to possible evolutions in the European crisis. The minister was reacting to a World Bank report emphasizing how Albanian sovereign debt is the highest in the region. According to Bode, 97% of Albania’s debt is low risk. “We pay off internal debt either with government bonds in leks or through development banks with long-term funding with low interest rates and in this sense our debt costs less than any other country in the region.,” said Bode confirming that Albania intends to reduce its debt applying fiscal pressure containment policies.

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Attitude “We will be depressed if Cedomir Jovanović, who has negative attitudes towards Serbia and the Serbian Republic, participates in the future ruling sets. This would reduce our potential for future cooperation,” — Milorad Dodik, President of the Republic of Srpska

06 Romania

07 Slovenia

Restitution Suspended An audit performed by the Romanian Authority for Properties Restitution revealed that illegal payments worth hundreds of millions of euros have been made to bogus owners in the past years

The audit revealed that of 80 percent of payments representing financial compensation, the so-called owners did not have the inheritance documents and that there were over 21,000 cases still unsolved. Romanian Prime Minister Mihai Razvan Ungureanu said that he had decided to suspend the payments for the next six months. The PM notified the Prosecutor’s Office as well. Romania has to solve the Restitution of Properties confiscated by the Communists (1946 – 1989) by June. The European Court of Human Rights (ECHR) in Strasbourg has notified the authorities that if they do not observe the deadline, they will have to apply sanctions. Romania ranks first among the member-countries of the Council of Europe (CoE) which do not respect property rights. Romania risks being ousted from CoE, an international body of 47 European states. The amount of financial compensation Romania has to pay to the former owners totals €21 billion, according to a recent assessment conducted by the government commission.

08 Bosnia & Herzegovina

Sarajevo Airport to Lower Taxes

Sarajevo could soon see low cost flights from London, Rome and Dusseldorf as the Bosnian Government relaxes its conditions towards no frills airlines The government currently requires low cost airlines to pay a levy of €10 euros per passenger in order to operate flights to the country. Until recently, the levy amounted to fifteen euros but the government gave up on its share of the takings while the Federation government is expected to follow suit. According to the Al Jazeera Balkans network, interest has been shown for flights to commence from London, Rome, Dusseldorf and a major city in Sweden to Sarajevo this summer. Recently, the low cost Austrian airline Niki, owned by Air Berlin, said it was evaluating the Bosnian market. New airlines would be more than welcomed by airports in Bosnia and Herzegovina. In February, the country’s busiest airport, Sarajevo, suffered a 21% passenger decrease by handling only 26,278 passengers. Currently, B&H operates a single daily flight to Istanbul with an ATR72. During February, Banja Luka Airport welcomed 424 passengers and Mostar 318. Tuzla did not manage to attract any passengers last month.

10 Hungary

STRABAG-MML Wins Tender STRABAG-MML has won a tender to expand the instructional building of Kecskemét College’s automotive industry faculty with a bid of HUF 504 million (€1.75 million). STRABAG-MML will add about 1,900sqm of usable space to the building. The company beat Progress-B’ 90, Prím Építő, Ver-Bau and UnikornÉpker in the tender. The German carmaker Daimler will soon start serial production at an €800 million compact car plant in Kecskemét.

‘Official’ Reality

Dušan Mramor, Dean of the Ljubljana

Slovenia has officially slid back into recession as its economy contracted by 2.8% in real terms

Faculty of Economics

In the final quarter of 2011, the economy shrank at a rate of 0.2% for the year according to the Statistics Office. Seasonal and workingdays adjusted, Slovenia’s GDP contracted 0.7% in Q4 from the previous quarter and 1.5% year on year although it grew 0.2% overall. “The rather pronounced fall in economic activity was a product of two factors,” the public was informed by Karmen Hren, the lady responsible for national accounts at the Statistics Office; she pointed to external and domestic demand. External demand continued to have a positive impact on economic growth but the growth in exports slowed to 3.0% year on year in Q4, significantly lower than the growth rates in the second half of 2010 and first half of 2011. Commenting on the figures, the Institute of Macroeconomic Analysis and Development (IMAD), said that the fall in final domestic consumption, coupled with the slowdown in export growth, increase the risks to growth this year. The Dean of the Ljubljana Faculty of Economics, Dušan Mramor, says that his projection of a double-dip recession is now becoming a reality, a development shown by models relevant to the structure of the Slovenian economy with the bulk of companies supplying final producers. Future trends will depend on economic policies.

09 Kosovo

German Support

The Government of Germany pledged to allocate another 27 million euros for Kosovo in the fields of energy, water, economy and education. This was said following consultations for development cooperation between Kosovo and Germany “In the German-Kosovar intergovernmental consultations on economic development cooperation, which took place on the 12th March in Prishtina, the Government of Germany pledged their further support for the newest country in Europe in order to improve living conditions and for its move towards the EU,” read a press release from the German embassy in Prishtina. According to the press release, both delegations agreed to deepen cooperation in the field of economics and push employment, education, and that of energy and water infrastructure. For this cooperation, the German Government plans – on condition of final approval of relevant German Governmental institutions – to allocate 27.7 million euros in 2012. In the energy sector, Germany plans to support the Government of Kosovo on building capacities for a power distribution network in order for citizens to benefit directly and at the same time, to contribute to the integration of Kosovo’s market in the European market. The funds, which were pledged in 2010 for the construction of water treatment plants will increase. “A significant contribution on sustainable improvement of living conditions of Kosovars is given through this,” reads the press release. cordeditorial@cma.rs

92 April 2012 | 43

Mirror

Business Dialogue Interview

”In the business world, the rearview mirror is always clearer than the windshield,” — Warren Buffett.

Saša Vučinić, Mayor of Subotica

simplify and expedite permit issuing procedures. Through further developing location infrastructure, we would like to achieve continuity in competitiveness when it comes to attracting FDIs especially in areas like production, tourism and the commercial sector. We are going to pay special attention to creating proper conditions for the development of SME and enterpreneurial investments. Also, a government decision that allows us to rent land plots without any charge to small factories will be very uselful too. In the next period, we are going to try do double the number of implemented projects with the emphasis on small companies and benefits that we have been preparing for their arrival.

Accelerating Permit Issuing Procedures By further developing location infrastructure, we would like to achieve continuity in competitiveness when it comes to attracting FDIs

n the 7th of March this year, Subotica received a noteworthy acknowledgment in Cannes. In the Financial Times competition called ‘The European Cities and Regions of the Future’, Subotica made it to the top 10 cities in South Europe when it comes to attracting FDIs.

■ Why did Subotica win this impressive acknowledgment? - The city of Subotica has fulfilled all conditions based on which it was selected among the top 10 cities in South Europe in attracting FDIs. A total of 73 European cities and 60 regions competed. One of the most important reasons why the jury made this decision is certainly due to investors who came to Subotica, as well as attractive and furbished locations for greenfield investments, highly professional and efficient local administration and the recently formed public enterprise Privredno Tehnološki Parkovi (Industrial Technology Parks) which sole purpose is to attract and coordinate FDIs in line with the one-stop-shop.

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■ What strategic projects do you plan to develop in order to stay in this high position in the future? - By changing and amending local acts, our aim is to further 92 April 2012

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■ Today, there are over 30 foreign investors in Subotica. How can Subotica continue being ‘the most desirable investment destination’? - The state needs to provide a stable political and economic environment, conditions conducive to EU accession, a stable monetary and tax policy and clear regulation which creates security for investors. Also, there are incentives and subsidies which need to be improved in order for the country to become more competitive in the region. We need budget funds to participate in large international investment fairs so that our country can find its place in the plans made by big corporations. If we are talking about activities that come under the city’s jurisdiction and responsibility, every investor is given, in an organized and systematic manner, precise and credible information about the conditions for investing and doing business (like information on locations, planning documents, ownership, procedures for investment implementation and permit issue, infrastructure, the prices of energy products and energy connections, fees and

We expect at least two big investments and several smaller ones to be made by the year end and that’s what we are focusing on now

taxes that they have to pay, benefits of doing business in free zones, environmental protection regulation, availability of the workforce, incentives etc.). Our newly enacted decisions bring a special advantage where we guarantee the validity of relevant conditions and local fees over a certain period in relation to an investor so that anybody with a serious intent to invest can calculate their business costs with a high level of predictability.

■ Are you currently negotiating substantial new investments? - The city authorities are negotiating with several potential investors from areas like production, tourism and the commercial sector and we cannot publicly reveal their names. I think that at least two big investments and several smaller ones are going to be made by the year end and that’s what we are focusing on now. ■

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AUCTION SOUTH EAST EUROPE

Makenzijeva 67, 11000 Beograd, Srbija Telefon: +381 11 2450 508; Fax: +381 11 2450 122 office@auction-see.com; www.auction-see.com cordeditorial@cma.rs

92 April 2012 | 45

world news

Loyalty

Business Dialogue

“I have offered her (Chancellor Angela Merkel) my trust, my sincerity and loyalty. We have looked each other in the eye and I see no grounds for mistrust,” — Joachim Gauck, new German President.

01 Switzerland

02 Sweden

Tiffany’s Counterclaim Against Swatch

Sashing Out on Cash Sweden was the first European country to introduce bank notes in 1661. Now it’s come farther than most on the path toward getting rid of them

Jeweler Tiffany & Co has filed a 542 million Swiss francs counter-claim against Swatch Group SA

Tiffany’s claim for 542 million Swiss francs comes three months after Swatch, the world’s largest watchmaker, sued it for lost profits it estimated at 3.8 billion francs. The strategic alliance, signed in 2007 and intended to last for 20 years, was meant to boost development, production and worldwide distribution of Tiffany branded watches, but it never turned into big business for either company. According to Tiffany’s most recent annual report, the deal with Swatch represented less than 1 percent of sales. The companies ended their deal in September. Swatch has accused its former partner of systematically trying to block and delay development of the business and not giving the watches, marketed under the Tiffany brand, enough prominence in its stores. Tiffany in turn has said that Swatch did not honor the terms of the agreement, including providing adequate distribution, and was unwilling to work cooperatively with the U.S.-based group.

03 South Korea

Online Shopping to Increase by 13%

04 Vietnam

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92 April 2012

percent in the U.S., according to the Bank for International Settlements, an umbrella organization for the world’s central banks. The Swedish Bankers’ Association says the shrinkage of the cash economy is already making an impact in crime statistics. The number of bank robberies in Sweden plunged from 110 in 2008 to 16 in 2011 — the lowest level since it started keeping records 30 years ago.

05 Israel

Most active Venture Capitalist in 2011 Schmidt's Innovation Endeavors made 8 first investments in Israel last year, followed by Pitango, JVP and Sequoia, Israel Venture Capital Research Center (IVC) reports

More people are doing their shopping online, whether by mobile phone or the Internet According to a report released by the Korea Online Shopping Association, the online shopping market increased to about €27.1 billion in 2011, up 17 percent from the previous year. The report shows that the industry is expected to grow by 13 percent this year. Experts say the driving force behind the increase is the growing reliance on the Internet and cell phones for placing orders. In fact, the mobile shopping market has increased from €11.4 million in 2008 to €1.15 billion in 2011. Analysts add that if the current trend continues, mobile shopping will triple this year.

In most Swedish cities, public buses don’t accept cash; tickets are prepaid or purchased with a cellphone text message. A small but growing number of businesses only take cards, and some bank offices — which make money on electronic transactions — have stopped handling cash altogether. The decline of cash is noticeable even in houses of worship, like the Carl Gustaf Church in Karlshamn, southern Sweden, where Vicar Johan Tyrberg recently installed a card reader to make it easier for worshippers to make offerings. Bills and coins represent only three percent of Sweden’s economy, compared to an average of nine percent in the eurozone and seven

Aiming to Take Top Rice Exporter Title Vietnam may snatch the title of world’s top rice exporter from Thailand this year, saying it aims to match last year’s record shipments of 7.2 million tonnes helped by strong demand and a positive outlook for domestic production. In contrast, Thailand, which has been the world’s biggest exporter for three decades, looks set to see exports fall sharply to 7 million tonnes at most due to high prices caused by government intervention to support millions of poor farmers. Traders said foreign buyers, including major traditional importers of Vietnamese rice such as the Philippines and Indonesia, were waiting for the Mekong Delta harvest to peak and prices to fall before making their purchases.

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IVC ranked Israeli and foreign venture capital funds according to the number of first investments made in Israeli and Israel-related companies in 2011. The data is based on information received directly from VC funds and from IVC Online Database. The ranking reflects the number of deals only, not capital invested. The most active VC fund in 2011 was Innovation Endeavors, a foreign VC fund owned by Google Chairman Eric Schmidt, with eight first investments. Pitango, JVP and Sequoia Israel were next with seven first investments each, and Giza and Bessemer followed with six investments. Horizons Ventures, controlled by Li Ka Shing from Hong Kong, and foreign VC funds Access Medical and CP Lantern, made five investments each.

06 Canada

Thousands Out of Work

It is now officially confirmed that Aveos Fleet Performance has shut down its plants across Canada affecting more than 3,000 unionized workers. Aveos is the private firm created in 2007 when Air Canada converted its maintenance and repair division into a stand-alone operation. Reports said up to 1,800 Montreal workers were affected, along with 350 in Winnipeg and 250 in Vancouver.

State pension “Millions of workers may have to work longer before they can retire... I can confirm that there will be an automatic review of the state pension age to ensure it keeps pace with increases in longevity,” — George Osborne, British Chancellor.

07 France

08 Spain

Zara Posts Healthy Results

Le Monde Gets Makeover Under New Owners

Spanish group announces 12% rise in full-year net profit after betterthan-expected fourth quarter

The new owners of France's Le Monde are trying to drag the venerable daily newspaper into the Internet age via a website and newsroom revamp in the latest move to reverse years of losses Two-thirds of printing staff will be axed and production of the paper outside Paris outsourced to regional presses, bringing much earlier delivery in cities such as Marseille and Lyon. In September, Le Monde also shed its usually staid style to launch a weekend edition with a glossy magazine focusing on fashion and luxury. Some 15 percent of reporters have been replaced by fresher, often younger, staff. The moves should allow Le Monde to reach net profitability this year, after posting an operating profit in 2011. Le Monde teetered on the brink of bankruptcy two years ago, prompting investment banker Mathieu Pigasse, telecoms tycoon Xavier Niel and wealthy industrialist Pierre Berge to inject 110 million euros to take control. The takeover has meant that Le Monde has reversed the decline in readership and ad sales plaguing much of the French press. Business daily La Tribune and tabloid France Soir both killed their print editions last year while regional newspaper group Hersant renegotiated its heavy debt load with creditors. Le Monde’s daily paid circulation grew 2 percent last year to 292,062, making it the second-biggest daily in the country after right-leaning Le Figaro.

09 Cisco

Aquires NDS Group for $5 billion

Cisco Systems said it has agreed to acquire Londonbased video delivery software company NDS Group in a deal valued at about $5 billion The price includes about $1 billion in debt, as well as the value of retention-based incentives. San Jose-based Cisco said the acquisition will “complement and accelerate the delivery” of Videoscape, its platform for media companies. It said it will also broaden Cisco’s opportunities in the service provider market, expanding its reach into emerging markets, such as China and India, where NDS is established. The deal is expected to close in the second half of the year. Upon completion of the transaction, NDS’s 5,000 employees will join the Cisco Service Provider Video Technology Group (SPVTG). NDS Executive Chairman Abe Peled will be named senior vice president and chief strategist for Cisco’s Video & Collaboration Group, of which SPVTG is a part. Peled will report directly to Marthin De Beer, senior vice president, Cisco Video and Collaboration Group. Cisco CEO John Chambers said in a prepared statement, “Our strategy has always been driven by customer need and on capturing market transitions. Our acquisition of NDS fits squarely into this strategy, enabling content and service providers to deliver new video solutions that leverage the cloud and drive new monetization.”

The Spanish group Inditex, the world’s leading clothes retailer, announced a 12.5% rise in its dividend after outpacing rivals during the downturn in austeritywracked Europe. The owner of the fast fashion chain Zara also met expectations with a 12% rise in full-year net profit to €1.9bn, with one analyst saying that results in the fourth quarter were better than forecast. Inditex, started by Spain’s richest man, Amancio Ortega, runs eight brands ranging from Zara to the upmarket Massimo Dutti and the accessories label Uterque. The retailer has fared better than rivals by aggressively expanding into faster-growing markets such as Asia, and now has

10 USA

more than 5,500 stores across 80 countries. Inditex reported store sales in local currencies up 11% from 1 February to 14 March. That implied same-store sales up 3%, a good result for a period when there was snow through most of western Europe. Inditex’s production model is seen as having shielded it from some of the worst effects of the crisis by allowing it to adapt quickly to shifting consumer behaviour and changes in labour and material costs. As well as making clothes in Asia, where labour costs are rising from previously low levels, Inditex retains manufacturing operations in Spain – in its home region Galicia – as well as in neighbouring Portugal and Morocco.

P.J. Morgan to Buy Stake in Chine

U.S. bank J.P. Morgan (JPM.N) has agreed to buy a 19.9 percent stake in Chinese trust company Bridge Trust Co

Bridge Trust is based in Zhengzhou and is majority owned by the state-controlled company China Power Investment Financial Co. There is no mention of the value of the acquisition. The deal requires approval from the China Banking Regulatory Commission, which is expected in the second quarter. Foreign investment in China’s trust companies is limited to 20 percent. In a separate report by the Financial Times said J.P. Morgan plans to help Bridge Trust originate, structure and distribute products that will be sold to the firm’s growing base of wealthy individuals. J.P. Morgan declined to comment to Reuters on the media reports. cordeditorial@cma.rs

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Tiger

Business Dialogue Interview

“The markings on a tiger are as unique as fingerprints – they don’t change throughout its life”, — Russian Prime Minister.

John Pearson, CEO of DHL Express Europe

nies in the world and Serbia alike. We are asking Mr. Pearson about current global market trends in this segment, as well as express delivery trends in the region.

Double-Digit Growth Excellent service quality, motivated employees and recognizing client needs are the main reasons why DHL is the first choice when it comes to transport and logistics services ■ Mirjana Zec

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“L

■ What do you attribute to be the main factors in DHL’s success? - There are three main reasons for the success I mentioned earlier - excellent service quality, motivated employees and recognizing client needs, which all make our clients really loyal. In the last 18 months, we have been very consistent in creating a platform where we are focusing on communications with clients and employees and accomplishing good results on the global level. We have invested a lot in advertising and marketing in order to present our company as the top global transport and logistics company. Our underlining message is that DHL Express is an expert, an international expert, in this field and that we are doing our job in the best and fastest manner possible which our clients recognize as “The Speed of Yellow”. Our intent is to make sure that our client shipments reach their destination in the shortest possible time. We are a successful company, both in the world and in Serbia, since DHL, as a pioneer and the number one international transport and air shipping company services a wide range of companies. DHL’s services are adapted to any business – small, big or specific industries. If, in a certain country, big companies are struggling, then small ones could be more successful in finding their market niche. We are proud of the fact that thousands of customers name us as their express delivery provider. Thanks to their trust, we have potential to grow and Serbia is a perfect example of that since our growth in the country has been double digit.

ast year was successful for DHL Express and we can even say that it was a year of exceptional results. DHL is often thought to be a good benchmark when it comes to global business, but I believe ■ How much have the new communication technolothat our results were even better than the market results. gies affected your company’s operations? Historically speaking, our growth is usually in the region - New technologies have either had a positive impact or of 1.5% in developed countries, while last year’s growth none whatsoever. The positive impact can be seen in enawas double-digit and Serbia was no excepOur strategy is to be the first choice and recognized tion,” says John Pearson, CEO of DHL Express Europe at the beginning of this interview for as the employer of choice, provider of choice and CorD magazine: “If you are asking me to state the investment of choice the reasons for such good results, especially in the light of events in Greece, Portugal and several other bling us to have even closer cooperation with our clients, countries which were the bearers of depressive news, like, for instance, tracking your delivery via the website. I have to say that we are a stable organization which is E-communication offers our clients access to information focused on international express delivery markets and that is also available in the country, like Serbia where Inexpress delivery products.” ternet penetration is growing. DHL is the leading express mail and shipping company When the Internet emerged, many people thought that and also one of the leading ‘door-to-door’ delivery compait would be the end of paper documents and snail mail

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Woman “Any woman who understands the problems of running a home will be nearer to understanding the problems of running a country, “ — Margaret Thatcher, former British Prime Minister. that we were used to. But that hasn’t happened. A similar thing was said when fax machines were invented, but paper documents still have a big share in our deliveries.

■ DHL Express has one of the biggest air fleets in the world. How does the region of South-eastern Europe figure in the postal services segment? - Our biggest investments are geared towards creating sorting offices and investing in air fleet, apart from investing in our personnel which is a given. It was recently announced that an additional global hub in Shanghai will become operational in July. This is a substantial investment. Apart from that, we are expanding another strategically important hub in Cincinnati. If we are talking about the air fleet, we have new services to offer which are very important for our clients in order for their shipments to be delivered at the fastest possible speed. We have managed to reduce our transit time and the collection time has been moved to a later hour in order for shipments to arrive at their destination in the early morning hours. The same was done in Serbia – we have moved the pick-up time to evening hours in order for our clients to have plenty of time to prepare their shipments.

much faster if a shipment is carried out via DHL? - As a market, Serbia is very much like other East European countries that have already joined the EU. This is a modern country with good and competent people. Serbia is also a good country to do business in and that’s why many foreign companies have come here. We have been building efficient relations with the Customs, Post Office and other institutions that we have been professionally cooperating with. We want our “hamburger to taste the same anywhere in the world”.

We have managed to reduce our transit time and the collection time has been moved to later hour in order for shipments to arrive at their destination in the early morning hours

■ In the past 20 years, DHL has been successfully operating in Serbia. Could you tell us something about Serbian market trends and the way in which your operational services are organized? - Our aim is to be THE logistics company for the world and THE post for Germany. There is nobody better in that than us. We are present in the supply chain and offer top-notch service. Our strategy is to be the first choice and recognized as the employer of choice, provider of choice and the investment of choice. Many have been admiring our global logistics services and want to be a part of them. In terms of investments, and bearing in mind that they are substantial, we have managed to have a positive return for our shareholders.

■ Could you assess the level of development of the Serbian market by what you ship in or out of Serbia? - We were the first to come to Serbia in 1991 and have been the first choice for companies that need our services. I am here to support our Serbian team which has achieved double-digit growth in the last year. Our brand is great; we have competitive prices and a team of international specialists working for us. ■ You have very developed goods delivery logistics. Does that mean that customs clearance and other related procedures are

Our goal is to render the fastest services in the world. We want the experiences of our clients to be the same anywhere in the world. When clients come to a brand new market, they always ask is DHL Express operating there. We want our Serbian clients to share the same experience as our clients around the world.

■ Do you cooperate with the Serbian Post Office? If you so, in what ways? - We have very good relations with the Serbian Post Office. Our cooperation has been developing for years and we have created a co-branded product. We also offer joint services. We believe that such services, which are rendered not only to the business world but also to the local community, are something that brings the rest of the world closer to Serbia. ■ cordeditorial@cma.rs

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corporate Mercedes-Benz

SL 60th Anniversary Sixty years ago the story that would immediately become a legend began

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of its unusual doors. Ever since, the two letters have stood for unique cars, for legendary sports cars. The irresistible design, the superb engineering and the virtually unlimited motoring pleasure they bring have bestowed on the Mercedes-Benz SL an aura which has elevated all the models created since 1954 to the status of classic, one after the other. Amongst automotive enthusiasts they are highly sought-after collectors’ vehicles and pass on their special status from generation to generation. It is no wonder, then, that the 300 SL gullwing model was voted “Sports Car of the Century” by a jury consisting of motoring journalists in 1999. To mark its sixtieth birthday, Mercedes-Benz has completely assembled the 1952 racing car with the vehicle identification number 2 again – true to its original state and in such a way that it is ready to drive. Countless hours of work, a great deal of sweat and know-how have been invested by the specialists at Mercedes-Benz Classic in the car’s restoration. In so doing they went to enormous lengths to ensure that the vehicle was not “over-restored” and that instead it would retain its individual patina which makes its unique character shine. On the occasion of the unveiling of the new SL, the forefather – bathed in authentic splendour – was also presented to the public and demonstrated the fountainhead of the SL legend. In this juxtaposition the two SL models from 1952 and 2012 represented the entire spectrum of the SL legend – spanning from its origins right through to the current pinnacle. But 60 years ago it was not just the SL bloodline that was born; at the same time the foundations for the entire Mercedes-Benz sports car family were laid – and today, encompassing the SL, the SLK and the SLS AMG, it is more strongly differentiated than ever before. Even back in the 1950s, when the successful racing car evolved into a series-production car available for purchase,

ix years following the end of the war – a time during which some of the Daimler-Benz plants still lay in ruin – the Head of Testing, Rudolf Uhlenhaut, was inspired to shed a positive light on the developments taking place at Mercedes-Benz through successes in motorsport. The means available were limited, and he made a virtue out of necessity by building the first SL from the components available and from a generous portion of pioneering spirit: a racing car which was sent to the international race tracks as early as 1952. The 300 SL (whose in-house code was W 194) won the legendary 24 Hours of Le Mans race that year with a spectacular one-two victory. This followed on from a one-two-three finish at the Bern Grand Prix, and at the To mark its sixtieth birthday, Mercedes-Benz has Jubilee Grand Prix for Sports Cars at the Nürcompletely assembled the 1952 racing car with the burgring the 300 SL even took the first four vehicle identification number 2 again places. This hugely successful racing year was even crowned by the newcomer with a triumphant oneMercedes-Benz offered not just the decidedly sporty 300 two win at the III Carrera Panamericana, a long-distance race SL “Gullwing” but a second SL model, too: the less powerful over 3111 kilometres right across Mexico. Soon it was clear yet equally fascinating 190 SL, which, in its capacity as the “litto everyone that Rudolf Uhlenhaut’s delighted team had put a tle brother” of the gullwing model, opened up the opportunity unique car on the road. to experience the SL legend to a larger circle of customers. At the same time the combination of the letters “SL” beIn the present day the 190 SL is often regarded as the came a phenomenon. predecessor of the compact SLK, whilst the 300 SL gullwing As an abbreviation of “super” and “light” it had origimodel with its characteristic doors and its outstanding pernally merely been intended to differentiate between the formance potential is widely perceived as the ancestor of the 300 and 300 S models, but it soon took on a charismatic SLS AMG. Both models, the 300 SL and the 190 SL, are, howevshine. The forefather of the race track was followed by the er, first and foremost precisely what is revealed by the model first descendant available for purchase in 1954: the 300 SL lettering on the boot lid: the roots of the legendary SL ancesseries-production sports car (W 198), which achieved equal tral line, which stands for refined sportiness like no other has renown and was known as the “gullwing” model on account done for over six decades now. ■

92 April 2012

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faces & places 29.02.2012 Gfk Party Gfk Belgrade celebrated their 10th Anniversary at the Belgrade Promet Club, Pariska 20, following their annual conference on the same day, in a more informal atmosphere than that of the conference. In addition to the party feeling, was a photograph competition with three prizes awarded for the photo’s that beat Gfk’s own. Marijana Agic-Molnar (left), director of Gfk Serbia.

01.03.2012 Serbian Association of Managers The Serbian Association of Managers invited guests to the Big XII forum on Thursday 1st March 2012, in the Crystal Ballroom of the Hyatt Hotel. Dejan Soskic, National Bank of Serbia, was a special guest at the forum which also included the panelists Branko Radujko, CEO of Telekom Serbia, Miodrag Kostić, President of MK Group and Slavko Carić, CEO of Erste Bank. During the BIG XII forum, panelists discussed current socio-economic issues.

Miodrag Kostić (left), President of MK Group and Branko Radujko, CEO of Telekom Serbia

02.03.2012 Military Medical Academy On the occasion of their 168th anniversary, the Military Medical Academy in Belgrade organized a reception at which they granted special awards to individuals who have excelled in their work over the previous year. The surgeons Dr. Branislav Pantelić and Dr. Slobodan Slavković received awards. Special recognition was also given to medical students with the finest dissertations in 2011. The Department of Physical Medicine and Rehabilitation was awarded as the best organisation, whilst the author of “Military Medical Examination” Dr. Zoran Stanojković from BTI Nis was awarded as the best author. In the photo Defence Minister Dragan Sutanovac and Health Minister Zoran Stanković with laureates.

07.03.2012

Conference - Women in Public Life

Proffesor Dragoljub Micunović and Professor Slavica Djukić-Dejanović

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For the occasion of International Women’s Day, 8th March, the Directorate for Gender Equality and Ministry of Labour and Social Affairs organized the conference of “Women in Public Life”. The conference was opened by Professor Slavica DjukićDejanović, Speaker of the National Assembly and Proffesor Dragoljub Micunović, and included representatives of the DS, LDP, the SNS, the SPS, LSV and others. Dr Natalija Micunovic (left), Liselot Agerlid and Bjorn Mozberg

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07.03.2012 9th Belgrade Dance festival 06/03/2012 Signing Wiesbaden Joint Statement President of the Assembly of AP Vojvodina, Sandor Egereši and President of the German Federal State of Hessen, Norbert Kartman signed the Wiesbaden Joint Statement which sets out the basis for further parliamentary cooperation and linking of the two regions.

On the 7th March the 9th Belgrade Dance festival was held the in presence of distinguished members of Serbia’s diplomatic corps, and the organizers and representatives of Belgrade cultural circle. Top picture: organizing committee chaired by the director Aja Jung; bottom: Thanasis Katsiroumpas, president of the Executive board of VIP mobile and Aja Jung, founder and director of the festival.

11.03.2012 12th Iranian Film Festival The 12th Iranian Film Festival was organized by the Cultural Centre of the Embassy of the Islamic Republic of Iran, in cooperation with the Museum of the Yugoslav Film Archive. This year’s Festival presented the film retrospective of the acclaimed Iranian film director Rasul Sadr Ameli. In addition to the diplomatic corps of the Islamic Republic of Iran, the opening ceremony was attended by numerous distinguished guests, diplomatic representatives of several countries, eminent personae of Serbian culture, art and education, as well as more than four hundred friends and admirers of Iranian cinematography and culture.

11.03.2012 Anniversary of Tsunami Disaster Japanese Ambassador to Serbia H.E. Mr. Toshio Tsunozaki hosted a reception in the Assembly of Belgrade on the occasion of the anniversary of the devastating earthquake and tsunami on the 11th March 2011. The reception was attended by Serbian President Boris Tadić, President of the National Assembly of Serbia Slavica Djukić Dejanović and a large number of other notable guests had the opportunity to see an exhibition of children from Japan, and were shown a video of the tragedy that befell Tohoku. cordeditorial@cma.rs

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faces & places 14.03.2012 DHL Awarded

Nebojsa Mandic, DHL Srbija (left), John Pearson DHL Evropa and Darko Babic, CEO of DHL.

On the occasion of 20 years of successful business in the market of Serbia, the Belgrade Chamber of Commerce has awarded DHL in recognition of its accomplishments. “This award from the Belgrade Chamber of Commerce is yet another significant award for our company and is the best motivation to stay in the business we do,” said recipient of the award Darko Babić, CEO of DHL in Serbia on the occasion. The Annual Award is given for exceptional achievements in production and other fields of economy, for many years of corporate work and other results.

Milan Jankovic (left), president of Belgrade Chamber of Commerce and John Pearson DHL Express Europe.

Jelena Pavlović, Director of Corporative Affairs

16.03.2012 Media Reception

13.03.2012 Top Job

“We welcome the European integration process in Serbia and we expect that Serbia will become a full fledged EU member so that we can have a new friend in the Union,” said the Chinese Ambassador to Serbia, H.E. Mr. Zhang Wanxue at a reception held for Serbian media by the Embassy of China. He also pointed out that Serbia’s accession to the EU was not contradictory to strengthening of the country’s relations with China. Last year, the value of trading between China and Europe stood at €429.6 billion and European prosperity is closely tied to the Chinese market. In 2009, Serbia and China signed a strategic partnership agreement.

Phillip Morris International organized an employment fair called TOP JOB, where visitors could meet with the company’s leading employees in Serbia. “This is a unique opportunity for all those seeking work or are still searching for their future career with the company Philip Morris through direct discussion with the directors of various sectors,” said Tatjana Jovanović, Director of human resources at Philip Morris in Serbia.

Tatjana Jovanović, Director of human resources

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20.03.2012 National Day of Tunisia In celebration of the national day of Tunisia, the Tunisian Ambassador to Serbia H.E. Mr. Ammar Ben Lammine and his wife hosted a party at Continental Hotel.

20.03.2012 International Development Agency Anniversary For the 10th anniversary of the International Development Agency (USAID) in Serbia, at the Gallery of Contemporary Art in Niš, a reception was organized which was completed by cutting a cake. USAID has marked a decade of development work in Serbia and a half century of providing assistance around the world.

The U.S. Ambassador to Serbia, H.E. Mrs. Mary Warlick (left), Milos Simonović, Mayor of Niš, Susan Fritz, Director of the USAID mission in Serbia, Alexander Paige, USAID Assistant Administrator for Europe and Eurasian Affairs, Daniel Rozenblum, Coordinator of U.S. foreign assistance under the State Department.

22.03.2012 Societe Generale Bank Societe Generale Bank this year marked 35 years of presence in Serbia. The first branch opened in Belgrade, in the centre of the city, on Kraja Petra. The Banks presence in Serbia, over the past 35 years, is “An expression of willingness to support the future development of economy and citizens in Serbia.” Antoine Toussaint (left), former president of Executive board, Frederic Coin new president of executive board and Goran Pitic, president of Societe General, Serbia.

22.03.2012 Gender Mainstreaming in Security Representatives of Bosnia, Macedonia, Serbia and the UN Development Program signed a joint statement on greater engagement of women in the security sector. The signing ceremony held in Belgrade officially launched a project dubbed “Support for Gender Mainstreaming in Security Sector Reform in the Western Balkans,” Serbian Defence Minister Dragan Šutanovac said. Representatives of Sweden, Norway, and the UN Development Program (UNDP) backed greater female engagement in the security sector, and the efforts that Serbia and other regional states have made in this area. cordeditorial@cma.rs

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culture calendar CONCERTS Aleksandra Kovač Kolarac, 7 April @ 20.30 Aleksandra Kovač, Serbian pop, soul and funk singer and songwriter, will held a concert this time in more intimate setting of Kolarac Foundation Hall. She is known as a singers who delivers amazing live concerts followed and on 7th April in Kolarac Aleksandra will also combine her piano performance with singing.

Chuck Findley and RTS Big Band Kolarac, 16 April @ 20.00 Chuck Findley, an American session musician, and Belgrade’s RTS Big Band will held a concert in Sava Center. Most widely-known as a trumpet player, Chuck Findley also plays other brass instruments such as flugelhorn and trombone. His technical abilities and versatility are renowned even among other session players, with the celebrated session horn player and arranger Jerry Hey saying “Chuck Findley can play anything”. Concert we recommend. YU Grupa Sava Center, 19 April @ 20.00 After couple of years, the oldest group of ex-Yugoslav Rock area YU Grupa will have their solo concert in Belgrade on 19th April in Sava Center. YU group will held a concert performing band’s greatest hits and surely delight loyal fans who followed the group’s work over the years. The legendary rockers will most certainly justify the epithet of the highest quality concert band of the area. With a number of surprises in the form of new arrangements of old favorites as well as special guests, we expect the concert to remember.

St Sava Gathering Sava Center, 22 April St Sava Gathering will be held on 15th March in Sava Center to celebrate 12 years of the existence of the Fund for the continuing education of young farmers - Borka Vučić. Fund is one of the few non-governmental institutions dedicated to the revival of the villages in Serbia. Traditional St Sava Gathering will be celebration of Serbian national music and dance, with agricultural fair where exhibitors will give special emphasis on new developments and support rural life and agricultural production. The Fund started with a humble, noble mission to draw attention to the almost forgotten young people living in rural areas, with the intent to help further education in the newly developed world and give a helping hand to modernize their operations and achieve higher revenue growth and increase the quality of their children lives. CLASSICAL MUSIC RTS Choir and Symphonic Orchestra Kolarac, 5 April @ 20.00 Conductor: Vladimir Krnjačević Program: S.Frank D Mol Symphony, A Honeger King David Monographic Kolarac, 6 April @ 20.00 Conductor: Muhai Tang Solist: Boris Belkin, violin Choir Obilić, AKUD Branko Krsmanović Program: S.Prokofiev In Love with three oranges, Concert for violin and orchestra no.2, Aleksandar Nevski for mezosopran, choir and orchestra

Belgrade Philharmonic Orchestra Kolarac, 20 April @ 20.00 Conductor: Jonathan Shifman Solist: Andreas Bojd on piano Program: Glass Four parabolas, Copland Symphony no.3

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people to experience the distinctive atmosphere of union, especially since several hours will show this time will be underlined by excellent technical terms, selected special guests and surprises.

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Additional music: J.S Bach, Cliff Martinez, Sergio Mendes, Joni Mitchell, G.Verdi Costumes: Merle Hensel Nominated for South Bank Award Sky in 2011, Legende Sava Center, 7 April @ 20.00

Due to the large interest of their faithful admirers, we will have the opportunity to hear the Legends for the third time this year. This concert will be the bands 50th concert at the Sava Center. After the Great Jubilee, which marked 25 years of bands very successful career, this anniversary will be further enriched with this BALLET Lady With the Camellias National Theatre, 3 April @ 19.30 Conductor Angel Surev arranged for choreographer Lydia Pililenko opera Samson and Dalila, using excerpts from other pieces of French masters, but retaining choir on stage.

Kolarac Chamber Music Kolarac, 8 April @ 11.00 Solists: Piano duo Julija Bal and Jelena Bajić Program: Piacola, Pulank, Villa Lobos, Shubert,

Beogradski Sindikat Belgrade Arena, 28 April @ 20.00 Six years after their last concert in Belgrade, band Beogradski Sindikat will perform on Saturday 28th April in Belgrade Arena. Since the release of their third album (“Discrete heroes”, June 2010), Which is on the site www.beogradskisindikat. com up for free now taken more than a million people, groups, despite the great interest of the audience, did not have much opportunity to perform. The upcoming spectacle will be an ideal opportunity for all

Russian State Chapel Choir Kolarac, 23 April @ 20.00 Conductor: Valerij Poljanski Program: Russian Spiritual Music

Don Quixote National Theatre, 5 April @ 19.30 Don Quixote is considered to be the one of the greatest ballet in the entire Russian classical tradition. Unlike others, arising mostly in St. Petersburg, Don Quixote was premiered in Moscow in 1869 at the Bolshoi Theatre. DANCE Dark Matter Madlenianum, 8 April @ 20.00 Music: Owen Belton Choreography: Crystal Pite Scenography: Jay Gower Taylor Costumes: Linda Chow Dancers: Eric Beauchesne, Peter Chu, Sandra Marin Garcia, Yannick Matthon, Jiri Pokorny, Cindy Salgado, Jermaine Maurice Spivey Political Mother Madlenianum, 12 April @ 20.00 Choreography and Music: Hofesh Shechter Musical assistants: Nell Catchpole, Yaron Engler Arrangement: Hofesh Shechter, Yaron Engler

concert. Six members of the Legends, as always, will do their best to surprise their fans with selection of their greatest hits and guarantee a concert to remember on April 7th in Sava Center.

and entitled “audio-visual miracle” by critics, the show “Political Mother” completes Šehterov’s emotional and courageous laminating. In addition to 10 dancers, performance will include the live band, drummer and guitarist. BELGRADE DANCE FESTIVAL Sava Center, 9 April @ 20.00 La La La Human Steps, Montreal, Canada “New piece”, Edouard Lock Music: Gavin Bryars, BlakeHargreaves Choreography: Edouard Lock Costumes: Liz Vandal Dancers: Diego F. Castro, Mi Deng, Talia Evtushenko, Sandra Mühlbauer, Grace-Anne Powers, Alejandra Salamanca Lopez, Jason ShipleyHolmes, William Lee Smith, Zofia Tujaka, Marcio Vinicius Paulino Silveira, Kai Zhang Special Guest: Diana Vishneva Musicians: Njo Kong Kie (musical director, pianist), Jean-Christophe Lizotte (cellist), Jennifer Thiessen (violist), Ida Toninato (saxophonist) Two tragic love stories are presented in the New Piece. Multilayered dance is composed of micro-moments that unite the two operas in one. Dido and Aeneas, Orpheus and Eurydice. With romantic and technically challenging “New Piece” La La La Human Steps celebrate 30 years of its existence. The company La La La Human Steps was established in 1980, after a three-week series of performances in a small theater Eskabel in Montreal, after which followed performances in the theater Kitchen in New York, which at that time represented the epicenter of events on the world dance scene. The group has quickly become known and recognized, especially for very unique choreographic language that was repeatedly promoted.

culture news Sava Center, 11 April @ 20.00 Dutch Dance Theatre, Hague, Holland “Longing” Sol Leon and Paul Lightfoot Music: Ludwig van Beethoven Choreography, costumes, décor: Sol Leon and Paul Lightfoot

Capricious, short-lived love affair between two adults ... The temptation of freedom for the one who is trapped in a long and an inert relationship. Love was once beautiful, now it just keeps locked in a small, tilted cubic room. After an interesting jumping out of limited space, a man returns home, but the gap can no longer be overcome. “Butterfly” Sol Leon and Paul Lightfoot Music: The Magnetic Fields: Liedjes from the album: 69 Love Songs; Max Richter: Europe after the rain, Untitled Figures from the album Memoryhouse and On the Nature of Daylight from the album Blue Notebooks Choreography, décor: Sol Leon and Paul Lightfoot

She looks old, but flexible. Bows slightly, pushing her legs. Gray haired dancer Parvaneh Šarafali, suggests a certain year, but under her coat a energy is still pumping. Šarafali represents a mother of Valerski, a central figure of this setting, but can also be a display of beloved wife with whom the hero wants to grow old. Duo LightfootLeon dedicates this piece to Valerski. It is no coincidence that this extraordinary dancer was an inspiration because of the one-year absence and dedication to his sick mother. She leaves this world, and her son returned once again to the Dutch dance theater. After his time worrying about his mother, he now speaks of the great game of love and the emptiness that it leaves...

Tommy Emanuel The Guitar Art Festival EXPO 19 March

Australian Embassy organized socializing of students from the Music Academy in Belgrade with one of the greatest modern guitarist, Tommy Emmanuel. Tommy Emmanuel is a blend of Australian originality and creativity, and Australian Embassy wanted to provide an opportunity for Belgrade students not only to enjoy the concert of “Kings of Strings”, which was held in Sava Center on 17th March, but also to personally meet Tommy and have an opportunity to talk to him.

Saxofonquadrat National Museum 22 March Gesualdo and Bach, Piazzolla and the Balkans, Tangra and jazz, with choreographic elements in the audio space foyer of the National Museum: “Saxofonquadrat” admirably combined various musical styles and influences during their concert in National Museum on 22nd March. Their repertoire included a range of medieval music to modern improvisation. Concert was organized by Goethe Institut in Belgrade.

6th PROSEFEST The Cultural Centre of Novi Sad, 13-15 April International Festival of prose “Prosefest” was founded with the intention of returning literature back to its roots – author’s live and direct contact with the reading public. The eminent local and foreign writers during the four days of Festival will read, talk with the audience, but also visit high schools, the colleges,

art schools and universities and conduct dialogues with the pupils and students on jointly selected topics.

Marking of the World Water Day, Ada Ciganlija, 22 March

Secretariat for Utilities and Housing Services - Water Administration and the Secretariat for the Environment organized traditional celebration and marking of the World Water Day in Ada Ciganlija on 22 March. This day is celebrated every year in order to emphasize the importance and significance of water resources and the need for sustainable management of water resources. Since the United Nations Conference on Environment and Development in 1992, 22nd of World Music Festival: Todo Mundo Dom Omladine 22-23 March

The first “World Music Festival: Todo Mundo” was held on 22nd and 23rd of March in Dom Omladine. The festival presented performers of the traditional folk music from Spain, Mali, Congo and Serbia. Visitors enjoyed Talabarte (Spain), a new concept of formation in Galicia strictly based on the contemporary folk and acoustic music. Mali blues performed by Tinariwen was something unique and worth seeing. The band was created in the early 80s by Tuareg musicians from northern Mali’s Kidal region playing music, often described as “Blues from the desert”. Kinshasa’s band Konono Nº1 combine three electric likembé (a traditional instrument) with voices, dancers, and percussion instruments that are made out of items salvaged from a junkyard. Svetlana Spajić will also had a unique performance with Bokan Stanković, the best Serbian multi-instrumentalist, singer and bagpipe player.

March is adopted as an important reminder to the world. This year, the UN agency for water has selected the theme “Water for food.”Coorganizers of the event are the Ministry of Agriculture, Forestry and Water Management - Directorate for Water, JVP “Beogradvode” PUC “Belgrade water supply and sewerage”, and the Institute for Water Resources “Jaroslav Cerni”.

Archeological Film Festival National Museum 26 March – 2 April Each year the National Museum in Belgrade is organizing the International Festival of archaeological films and this year in collaboration with the Goethe Institut Belgrade, five German films were presented. The stories of scientists and adventurers to exotic places and spectacular discoveries were recorded in camera and made into films. Viktor Zegalen - Expedition in the middle kingdom of China, Storey - The discovery of a royal tomb, In search of gold fleece - Put in Georgia, Persia - A Legacy of fire.

59th Belgrade Documentary and Short Film Festival Dom Omladine 30 March – 3 April

Belgrade Documentary and Short Film Festival originates from The Festival of Yugoslav Film, founded in 1953 in Pula, Croatia (back then Socialist Federal Republic of Yugoslavia, SFRY). The festival screened both fiction films and documentaries. This year Festival was held in Dom Omladine and during five days presented numerous films from around the world. cordeditorial@cma.rs

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interview Sava Stojkov, Artist

The Paintbrush

Magician In the ninth decade of his life, Sava Stojkov, the great painter of Vojvodina’s scenery and portraits, is still conveying his artistic vision onto the canvas as beautifully now as he always has ceremony, Sava Stojkov remains quiet and meek in nature throughout.“ Stojkov discovered the art of portraiture somewhat later. The canvases of this Panonnian magician with a paintbrush have appeared at many galleries in global art centres. Even the toughest art critics commended his famous ‘glass portraits’, while appreciating this exceptionally difficult painting technique so rarely used by Stojkov’s contemporaries. Although he is considered one of the one hundred greatest living painters in the world, he remains modest. He says that he has always viewed his popularity as “an award that motivates him to

ture age. Despite your years, you don’t change your work pace, your hand remains still and your eyesight precise. How do you explain that? Is it because of your gene pool, discipline or something else?

ecently, a gallery was opened in Belgrade, Sredačka Street, as a leg- All of it. We are born with a certain geacy and permanent exhinetic code and we cannot change it, but bition of Sava Stojkov’s I think that self-discipline is very imwork. Many national and international portant. For years and decades, I have diplomats were captured by his fabeen working every single day, from mous ’glass portraits’. The artist says five o’clock in the morning to late in the that “endless love and hard work” are evening, with a short rest in the afterhis winning combination. noon. This work regime has enabled me, With a mere mention of the Serdespite entering the ninth decade of my bian painting master, Sava Stojkov, life, to have working vitality tantamount images of tame and quiet Vojvodinto that from twenty or thirty years ago. ian plains, where Of course, I love what Without a doubt, my best portrait is that of time almost stands I do and that is great still, flashes before Patriarch Pavle of Serbia, which I did in 2002 with motivation for me. your eyes. Since the great excitement and endless love. His primordial ■ This year started very beginning of calm and holy character simply emerged on the really well for you. his creative fairytale, nature was and still canvas, as if someone else was guiding my hand The Sava Stojkov is his constant inspilegacy gallery was work even harder,” but he also “always ration, just like the kind-hearted and opened in our capital city in January tried not to step away from his peasant wrinkled faces of his Pannonian comand Belgrade citizens feel privileged soul.” And the awards keep on coming patriots. Dejan Medaković explained it to have the gallery in their town. – the latest being the legacy gallery in beautifully: “In Serbia’s painting world, - To be more precise, let me say that it Belgrade, as well as the 2011 Vuk’s Art apart from a giant like Milan Konjović, is not a classic legacy, but a permanent Endowment Award. it is very difficult to find an artist who exhibition of my paintings. Of course, I Living in his beloved Sombor, Sava approaches nature with such awe as am happy to have a gallery of my work Stojkov talks about his work, awards Sava Stojkov does. While Konjović exopened in our capital and it is a great and people with a smile on his face. pressed his approach to nature in an acknowledgement. There are many almost enamoured and passionate people who like my art in Belgrade way, giving himself to painting landand, now, they finally have an oppor■ You are one of the few artists that scapes like they were a sensual pagan tunity to see it on a daily basis. continues to be productive at a ma-

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■ In the building named ‘Preparandija’, which is the former Teacher’s School in Sombor, there has been a permanent exhibition of your work since 2010. However, representatives of Serbian culture still expect the Stojkov Gallery to be opened in Sombor. Let’s not forget that your sons – Dragan and Milan – are also artists. Is this idea still viable?

■ You are known as an artist who views awards as gifts and who gives back whenever he can. You have given a portrait of Vuk Karadžić to Vuk’s Art Endowment, which awarded you in 2011. Where does this wonderful need to give back come from?

- The opening of a gallery with a permanent retrospective exhibition of my artwork, which was set up by the Sombor Faculty of Pedagogy in the famous historical building of Preparandija two years ago, is my ‘dream come true’. Exactly ten years ago, the Som-

- I can say that I have given away almost a quarter of my painting opus, whether we are talking about the portraits of historical personalities or statesmen or ordinary paintings (landscapes). I gave to everybody – from our national and international institutions and individuals, to humanitarian organizations, associations, campaigns, and unknown

bor Municipal Assembly launched an initiative for the Stojkov Gallery to be opened in a baroque building of the Grašalković Palace (in close proximity to the Milan Konjović Gallery). There was even an institution of the same name. The building had its roof, attic and electrical installations repaired, but that was all. A lack of budget funding and maybe insufficient enthusiasm of the town authorities postponed the realization of that beautiful idea. What remains for us is to wait for better and happier times.

people who needed my help. Simply put, I find great joy in giving. I have never turned down any request in that respect and never has a man left my house without me helping him in any way I could. Apart from Vuk Karadžić’s portrait, I have also donated the portrait of our only Nobel Prize laureate Ivo Andrić to the Andrić Endownment, and I gave the Russian embassy a portrait of the famous Russian scientist Mikhail Vasilyevich Lomonosov, apropos the 300th anniversary of his birth.

Several decades ago, Oto Bihalji Merin guided me towards portraits. In the mid-1970s, I started to paint a lot portraits of my fellow peasants, shepherds, coachmen, drifters and merry men, but also portraits of our famous people and contemporary statesmen

■ Admirers of your work are split – some prefer your landscapes, whilst others, including art critics, are more impressed by your portraits. What is your attitude to each of those genres?

- Several decades ago, Oto Bihalji Merin guided me towards portraits. In the mid-1970s, I started to paint a lot portraits of my fellow peasants, farmers, shepherds, coachmen, drifters and merry men, but also portraits of our famous people and contemporary statesmen (so far, I have done portraits of over 40 statesmen, prime ministers and sovereigns). Still, landscape paintings remain my eternal love. They are

a part of my childhood that is deeply embedded in my painter’s conscience, i.e. the old image of my slowly disappearing birthplace – Bačka – where I grew up. Meadows and fields, forests and groves, river backwaters and ponds, the endless plain that is meeting the sky at the horizon... That is my internal and constant inspiration.

■ You have painted the portraits of many famous people – Ivo Andrić, Nikola Tesla, Laza Kostić, Lenka Dunđerski, Patriarch Pavle of Serbia, cordeditorial@cma.rs

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Patriarch Alexy II of Moscow, Novak Đoković... The gentle dame of Serbian poetry – Desanka Maksimović also sat for you, as did Miroslav Antić, François Mitterrand and Jacques Chirac. Who inspired you the most and whose portrait is going to be next?

- Without a doubt, my best portrait is that of Patriarch Pavle of Serbia, which I did in 2002 with great excitement and endless love. His primordial calm and holy character simply emerged on the canvas, as if someone else was guiding my hand. I was especially fond of the reception at the Patriarchy where my portrait was officially presented in December 2002. Also, I am greatly honoured to have received the Medal of St. Sava, which was given to me with the blessing of our Patriarch Pavle, now rested in his holiness. I have just received a request to paint a portrait of the president of a neighbouring country and that is something I am going to be engaged in for the following few weeks.

■ With your lavish artistic signature, you have made the Vojvodinian plain immortal. Lovers of nature on canvas claim that your framed granges and sun-kissed wheat fields bring peace into any home that display your paintings.

leagues helped me to open a Facebook profile; I have received thousands and thousands of messages and comments and I have been contacted by people from all over Serbia, the region and the rest of the world. I have two Facebook

■ The number of exhibitions that you have staged in Serbia and abroad is impressive, which is a testimony to how popular of an artist you are today.

- I have staged over 460 independent exhibitions on five continents and have participated in more than 600 collective exhibitions. That is an indication of how interested people are in my art. Of course, every success feels good and it feels even better when it is a fruit of endless love and hard work. Still, such success does entail a certain kind of obligation to live up to the expectations. You mentioned earlier our tremendous young athlete Novak Đoković. I have been following that diligent and persistent young man for many years and I can see, in his success, the same system and principle that I apply which is infinitive love toward what you do and hard work.

I have staged over 460 independent exhibitions on five continents, and have participated in more than 600 collective exhibitions. That is an indicator of how interested people are in my art. Of course, every success feels good and it feels even better when it is a fruit of endless love and hard work accounts with over 6,500 “friends” who all express their opinions about my art in a very similar fashion. Then I realized that is not just a simple courtesy and that people really do find this ancient harmony between nature and human beings in my paintings. Recently, one of my Australian ‘friends‘ said on Facebook: “Mr. Stojkov, I would love to live in your paintings.” There is no greater recognition than that.

■ You have said on many occasions that your family is your main support in life.

- Even with all the love I have for my work, my paintings would never have been so successful without the support of my family, especially the support I get from my endlessly patient and totally devoted wife Barbara – - When I was younger, I viewed that as Beba – with whom I have been hapan expression of kindness from lovers pily married to for seven decades of my art. A year ago, my younger colnow. I am happy to see that my sons Dragan and Milan Masaryk award have inherited my painting This great painter has been awarded with around 40 important gene and they are already medals. Close to a dozen books and monographs have been published, 12 accomplished invididuals art maps printed and several documentaries and TV shows made about and artists. I am also happy his work. One of the recognitions that is dear to Sava’s heart – the Czech to know that I have started Academy of Art’s Masaryk Award – was given to him in Prague in 1995. and will end my artistic That same year, Italian tenor Luciano Pavarotti received the Masaryk and personal life in my beAward for his accomplishments. loved Sombor. ■

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feature An insight into the world of horseracing

The Sport of T

Kings ■ By Max Williams

A major part of horseracing’s economic importance, and some word argue raison d’être, lies in the gambling associated with it, an activity that in 2011 generated a world-wide market worth around €90 billion 62 |

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he competitive horseracing industry is one of humankind’s most ancient sports, having its origins among the prehistoric nomadic tribesmen of Central Asia who first domesticated the horse in around 4500 BC. For thousands of years, horseracing flourished as the sport of kings and the nobility. Today, horseracing is the second most widely attended U.S. spectator sport, after baseball. Horseracing is also a major professional sport in Japan, Great Britain, Ireland, UAE and Australia.

The Horses:

Thoroughbred horseracing is a gigantic business. A quick look at some statistics show that the top ranked North American horse (named Blame)

by 2010 had raked in over €2.8 million, while the top owner brought in over €3.7m, the top trainer over €16.6m, and the top jockey almost €12m. It seems quite realistic to assume that horse owners are purely out to maximize profits. From there, the interesting economics seems to come from the myriad risks and uncertainties faced by the owner when making decisions to maximize earnings. For example, thoroughbred racehorses are generally sold under auction for upwards of €7.57m. The highest price ever paid at auction: €12.11 million for 2-year-old Green Monkey at the 2006 Fasig-Tipton Florida sale in Miami. Green didn’t

be highly speculative. It is not a rarity to pay a low stud fee and yield a high earning racehorse, or vice versa. Most of the world’s top-earning horses have never won the arguably win the planet’s most prestigious race, the Kentucky Derby, but you don’t have to win it to make a mint. The richest victory pots lay in places like Japan, Australia and Dubai. The top race in Japan, the Japan Cup, has a €3.48 million purse. The Derby, meanwhile, dangles €1.51 million; the Preakness and Belmont Stakes, each €757 million. Winning horses take home 60% of the purse. Of that, jockeys and trainers take 10% each, and the horse’s owner gets the rest.

his luck changed forever. JP had €4.8 on Linden Tree in a Newmarket maiden in 1970, pocketing a tidy profit of €60 when the horse won at 100/8. He reinvested another €4.8 on the same horse in the Observer Gold Cup, a bet which returned €120 when Linden Mill came in at 25/1, and €6 each-way at 33/1 for the Derby came within a whisker of another mammoth win, as Linden Mill came home a close second behind the champion Mill Reef. Those experiences tipped him headlong into an obsession with all things racing, starting with a stint as an on-course bookmaker before he switched sides to become a big-money punter.

Magnier is said to be the most influential man in horseracing and breeding worldwide, his financial worth is estimated at around €3 billion produce much green, though: The horse raced just three times, where it landed in third once and fourth twice, before retiring in 2008. When considering such an investment the horse owner must weigh the potential future earnings of such a young horse against the auction price and future costs of training, managing, and racing it. In other business decisions, such as a simple capital investment in machinery at an Alex FeRguson Those purses are a big reason seven auto-parts shop, the costs and benefits of the 10 top-earning horses (listed) may be rather transparent and determinbased on career winnings, tabulated by istic. In horseracing they are anything the Thoroughbred Times’ Racing Almabut. The typical cost of owning a racenac, a trade publication based in Lexinghorse in training for a year is as much ton, USA - have hailed from outside the as €26,500. The cost includes monthly U.S. Six of the seven come from Japan. trainer fees, stable fees, veterinarian and Successful thoroughbreds typically race horseshoer fees, insurance premiums, for just a few seasons, but many retired jockey fees, and stakes entry fees. champions go on to make hay and plenty Relatively though, these costs are of money as studs. much more transparent than that of the potential benefits to the horse owner. The earnings of a male horse are from its Breeders and Owners: race earnings and stud fees. A stud fee is No story about horseracing would the price that a horse owner of a female be right without mentioning a few key horse must pay to have it breed with the individuals and who better to start with said male horse. Stud fees can reach upthan JP Mcmanus - the beloved milwards of €385,000 for the top earners in lionaire Irishman. It was back in 1970, the business, and as you can imagine can when JP was just about to turn 20 that

JP McManus

In 1982, he and his wife bought Martinstown Stud on over 400 acres (1.6 km2) in County Limerick from the McCalmont family. McManus’s first horse was Cill Dara, which had been owned by the late Edenderry solicitor and legendary gambler, Tim O’Toole. McManus is now National Hunt racing’s largest owner with over 400 horses in training. Famed for his huge, and mostly successful bets, he is well known to both racing fans and racing professionals although he remains somewhat an enigma. In 2006, he built a €120 million residence on his Martinstown Stud farm in Co. Limerick. His personal fortune is now estimated to be €840m. That fortune leaves him just a few million or so off his fellow equestrian obsessive and cordeditorial@cma.rs

92 April 2012 | 63

Top 10 Earning Horses his era, and Robert Sangster, heir to the Vernon’s Pools business in the UK, and together they started Coolmore Stud, taking on the Northern Dancer bloodline. In 2008, new valuations on the Coolmore stud placed it at €4 billion. It is estimated that the income from Coolmore’s Irish operations alone amount to €160m a year. Stallions such as Rock of Gibraltar, the racehorse at the centre of a bitter row between Manchester United boss Alex Ferguson and Magnier, stood at Coolmore with a fee of €75,000 per cover. Magnier is said to be the most influential man in horseracing and breeding worldwide, even over Sheikh Mohammed bin Rashid Al Maktoum. While the extent of his fortune can only be speculated about, the common estimation of his financial worth is around €3 billion. Sheikh Mohammed bin Rashid Al Maktoum’s love of horses is renowned. Descended from one of the most notable tribes in Arabia, Bani Yas, horses have been part of his life since childhood. His Highness was born on July 15, 1949.

old business partner John Magnier, with whom JP part-owns the high-end Sandy Lane hotel and complex in Barbados. Also with John Magnier, he built up a 28.89% shareholding in Manchester United F.C., which they sold on to businessman Malcolm Glazer. The aforementioned John Magnier, one of Ireland’s most successful entrepreneurs, is a leading thoroughbred horse breeder and stud owner. With an extensive portfolio of successful business interests in a range of industries across the globe, Magnier is the owner and founder of the Coolmore Stud. The Co Tipperary-based stud is regarded internationally as a leading stallion and thoroughbred nursery. The success of Coolmore has since been replicated in America and Australia. Magnier was also named as a member of an investment panel which got involved in the purchase of the €412 million Irish Glass Bottle site in Ringsend and was also revealed to have secretly built stakes in Mitchells & Butlers, a listed pub company. Originally, from Fermoy in Cork, Magnier was educated at Glenstal Abbey School. His father was John Magnier at the Breeders Cup a small-time bloodstock breeder and saddlery merchant and this gave Magnier an insightful The highest price ever paid for a horse at auction introduction into the was €12.1 million for 2-year-old Green Monkey at bloodstock industry. the 2006 Fasig-Tipton Florida sale in Miami When the thenNow the UAE Vice President, Prime Minister finance minister, the late Charles Haughey, made and Ruler of Dubai, Sheikh Mohammed is the stallion nomination fees exempt from income tax, inspiration and driving force behind Godolphin, Magnier realised that by combining the tax exwhich he has developed into the world’s leading emption with modern equine techniques, he could international horseracing entity. He also owns create a highly successful and lucrative horse Ballysheehan Stud in County Tipperary, Irebreeding operation. He recruited the late Vincent land and Gainsborough Farms Inc in Versailles, O’Brien, one of the most successful trainers of

1. T.M. Opera O

Career winnings: €12.6m Home country: Japan 2. Deep Impact

Cumulative winnings: €9.71m Home country: Japan 3. Makybe Diva

Cumulative winnings: €8.15m Home country: Australia 4. Curlin

Cumulative winnings: €7.95m Home country: U.S. 5. Zenno Rob Roy

Cumulative winnings: €7.93m Home country: Japan 6. Admire Moon

Cumulative winnings: €7.73m Home country: Japan 7. Cigar

Cumulative winnings: €7.57m Home country: U.S. 8. Skip Away

Cumulative winnings: €7.28m Home country: U.S. 9. Tap Dance City

Cumulative winnings: €7.25m Home country: Japan

10. Special Week

Cumulative winnings: €7.07m Home country: Japan 64 |

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Major Race Events 2012: Kentucky, United States. In 2008, he bought the Woodlands Stud empire for more than €348.2 million. Sheikh Mohammed’s visionary approach prompted the inauguration of the Dubai World Cup in 1996, which draws the best dirt horse in the world to the desert. Dubai World Cup day in late March is now one of international racing’s glittering showpiece events, worth €7.5 million – the world’s richest series of horse races. Sheikh Mohammed’s wealth is estimated at €3.4 billion by Forbes magazine. Another notable character in the horseracing world is Sir Alex Ferguson, the famed Manchester United Manager. Sir Alex is an entirely different proposition. His first love is football but he is also a big player in the sport of kings. The United boss has interests in several horses including one with Manchester United striker Michael Owen. His most high-profile involvement was with the brilliant Flat horse Rock of Gibraltar. Ferguson led Rock of Gibraltar into the winner’s enclosure during his early successes but an owner-

Criticisms:

13 to 14 April

Organized groups dedicated to protecting animals, such as the Humane Society of the United States and People for the Ethical Treatment of Animals, target some horse sports with claims of animal cruelty. Horseracing is most commonly targeted, due to its high visibility and to the level of stress and potential physical dangers to the equines involved. Criticism of horseracing and its practices runs a wide gamut, however; while some may consider even fairly drastic discipline of horses non-abusive, others may consider abuse to be anything done against the will of the animal in question. Some people may consider poor living conditions abusive, while others might consider riding abusive. In 2009, animal rights group PETA released undercover video of alleged abuses of former racehorses at a slaughterhouse in Kumamoto, Japan. The group states that 20,000 horses, including former thoroughbred racehorses, were killed in 2008 in Japan alone for use as human and pet food. Sheikh Mohammed bin Rashid Al Maktoum One of the biggest points of abuse in the horse race industry comes in the The richest victory pots lay in places like form of doping the horses. While racing authorities Japan, Australia and Dubai. The top race in Japan, the Japan Cup, has a €3.4 million purse are cracking down on this practice, and the race horses at the biggest races are routinely tested for all ship dispute with the wealthy Irish racing duo of manner of performance enhancing and pain maskJohn Magnier and JP McManus resulted in the end ing medications, the practice of giving race horses of the association. drugs to keep them running is all too common at Sir Alex admits racing isn’t a cash cow like his smaller tracks around the world. This practice is football interests but when your personal fortune of course dangerous to the horse rider as well as to is estimated at €35 million you probably can afthe racehorse. ■ ford a “hobby” like horseracing. cordeditorial@cma.rs

John Smith’s Grand National, April, Liverpool, UK, top prize (TP) €600.000 4 to 5 May 2012

Kentucky Derby & Oaks, May, Louisville, USA (TP) €1.05m 5 to 6 May 2012

The QIPCO Guineas Festival, May, Suffolk, UK (TP) €250.000 1 to 2 Jun 2012

Investec Derby Festival, June, Epsom, Surrey, UK (TP) €1.4m 19 to 23 Jun 2012

Royal Ascot, June, Ascot, UK (TP) €250.000

6 to 7 Oct 2012

Prix de l’Arc de Triomphe, October, Paris, France (TP) €2.1m

5 to 8 Oct 2012

Qatar Prix de l’Arc de Triomphe, October, Qatar (TP) €500.000 30 Oct to 4 Nov 2012

Breeders Cup, October and November, Las Vegas, USA (TP) €3.7m 26 to 27 Dec 2012

The William Hill Winter Festival, December, Middlesex, UK (TP) €200.000 |

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travel Our picks of some of the finest hotels Europe has to offer

Collection of Europe’s

Best Hotels

If you're looking for a hotel where the biggest worry is being pampered to death, this may be the list for you. CorD has chosen some of the most luxurious and beautiful hotels that Europe has to offer

1/08

he hotel industry has suffered due to the recession, however the owners of these hotels have clearly thought the best course of action is to take advice from the old saying “You have to spend money to make money.” Unfortunately, unless you are planning to conduct your business meetings during your stay, it is highly unlikely you will!

The Dorchester London, UK The Dorchester occupies the most prestigious acre and a half of real estate in the world, in the heart of Mayfair overlooking the glorious green expanse of Hyde Park. The preferred hotel of British society, The Dorchester embodies the highest service values whilst its design and character exude 1930s glamour with a contemporary edge. Prized for its spacious and beautifully designed rooms and suites, The Dorchester’s restaurants and bars also attract Londoners and the glitterati alike. The Dorchester Spa was recently transformed to create the most desirable and indulgent pampering destination in London.

2/08 Hotel Martinez Cannes, France As spacious as it is extravagant, the hotel has extraordinary infrastructure, both in terms of guest accommodation and in the services the hotel has to offer. The Martinez has three restaurants including La Palme d’Or, a 2 star Michelin gastronomic restaurant, Le Relais Martinez and Zplage Beach Restaurant. There is a piano bar, private beach, heated pool, 15 meeting rooms and reception lounges. The reception infrastructure is one of the major assets of the hotel, and in all seasons conventions, seminars and other social, festive and professional events, the majority of them international can be hosted.

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4/08 Lotte Hotel Moscow, Russia Lotte Hotel Moscow is ideally located on the New Arbat, the financial and shopping center of Moscow, and just a stone’s throw away from the Red Square, the Kremlin Palace, and the Bolshoi Theater. The hotel features elegant and spacious guest rooms and top-notch restaurants. “Les Menus” is a French restaurant by 3-star Michelin Chef Pierre Gagnaire and “MEGU” introduces modern fusion Japanese cuisine. A premier experience is granted at six small and large banquet halls, the luxurious Mandara Spa, Club Lounge, and Atrium Garden. At Lotte Hotel, you can enjoy the warmth and depth of “real” service.

3/08 Principe Forte dei Marmi Principe Forte dei Marmi, Italy Principe’s design exemplifies an accurate, linear structure which differs from much of the rest of Forte dei Marmi’s architectural style. Instead of round arches and pillars, straight lines and sharp forms have been used. The building has bold wooden windows which are framed with steel and wooden fins which can be removed and used as sun blinds. The facade of Principe is eye catching due to the regular window designs that break up each side of the building and create deep architectural lines. From inside these windows capture the sunlight and illuminate rooms with soft shadows and cascading light effects.

The Zlatnik Hotel The Zlatnik is a small, family run boutique hotel, which brings together traditional Serbian hospitality with state of the art amenities. The hotel offers 33 rooms and 4 suites, lavishly decorated and well equipped to meet the requirements of contemporary businessmen. The hotel has a conference hall, business centre and a cosy restaurant with a rich variety of international and national dishes and carefully selected wines. Private garage and a large parking lot, both under video surveillance, are on our guest’s disposal. A newly opened banquet venue ‘Zlatnik hall’, perfect for corporate events and private gatherings, with capacity of over 400 seats, is situated minutes away. If you prefer an informal meal on the Danube river bank, visit our vibrant and friendly ‘Zlatnikkej’ restaurant. Dobanovačka 95, 11080 Zemun, Serbia Tel.+ 381(0)11 316 7511 e-mail:office@hotelzlatnik.com www.hotelzlatnik.com cordeditorial@cma.rs

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5/08 Kempinski Palace, Portorož, Slovenia People talk about a “legend growing,” and that is exactly what happens every day with the services at the Kempinski Palace Portoroz – legendary with me is a daily occurrence. Portorož – the ‘Port of Roses’ – has been attracting people with its therapeutic baths and spas throughout the ages. In the 13th century the Benedictine monks treated their visitors with seawater and salts. In the 19th century the cream of European society came to ‘take the waters.’ Our rooms and suites evoke the fabled history of the Palace Portorož – and offer fabulous views of the Adriatic Sea and the Istrian countryside.

6/08 The Regent Esplanade Hotel Zagreb, Croatia Housed in an elegant, distinguished building originally constructed in 1925 to accommodate passengers of the world-renowned Orient Express train, The Regent Esplanade Hotel in Zagreb offers the ultimate in sophistication, service and modern amenities. Unwind and indulge in this historic setting, located in the centre of the city. One of the city’s most famous buildings, The Regent Esplanade Hotel plays host to distinguished guests including presidents, and entertainers. This five-star hotel flawlessly combines luxury and convenience to ensure a rejuvenating stay in the heart of Croatia’s capital.

Tulip Inn Putnik Belgrade Tulip Inn Putnik Belgrade is a hotel of modern design that represents the business spirit of New Belgrade. The hotel has 84 standard rooms, 20 stylish suites and 1 room for people with special needs. Indulge in culinary pleasures or organize an exclusive wedding at our restaurant Nevski with a capacity of up to 250 persons. For all our wedding couples we offer free use of the honeymoon suit and a dinner for a first year anniversery. You can also enjoy drinks, cocktails and light snacks at our Absolut Cafe&Bar. Paste Festival is organized every Friday, from 18:30 to 22:30. Throughout the evening, for only RSD 999, you can enjoy in an unlimited variety of pasta dishes, a buffet selection of salads, antipasti and desserts. info@tulipinnputnikbelgrade.com, 011/225-9999, www.tulipinnputnikbelgrade.com. 68 |

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Belgrade sport center Kovilovo & hotel President 5* Located just 14 km from Belgrade, on 26 hectares of well kept lawns and parks there is a unique sport complex with 5* hotel accommodation and a shooting range for clay targets officially ranked as the best in the world. Sport facilities consist of a sport hall (2 000 sqm with FIBA certificate), two gyms, sauna, Jacuzzi and massage rooms, 4 open sports courts, two football fields, the first class shooting range and an outdoor swimming pool. The hotel’s Congress Center, with its multifunctional Congress Hall, has a capacity of up to 300 persons. The smaller Hotel VIP meeting room is for up to 25 participants and the Crystal Hall restaurant, seats up to 240 guests. Zrenjaninski put 170 11211 Beograd, Serbia For more info please visit www.president-belgrade.com

7/08 Boscolo New York Palace Hotel Budapest, Hungary Luxury and culture in the heart of Budapest. The contemporary Boscolo is the rethinking of the original edifice built in 1894 by the creative ideas of Maurizio Papiri. The building has an eclectic style relying on the Italian renaissance however the most unique contemporary interior design has gained ground in the formation of inner spaces creating one of the most dignified hotels within the Boscolo Group. The opulent splendour of Boscolo can be recognized not only in forms but materials as well. All the finest textiles and furnishings for the hotel come from the original home of style and design - Italy.

8/08 Hermitage, Monte Carlo, Monaco Located near the casino, overlooking the harbour of Monte Carlo and the prince’s palace, Hermitage has been a landmark since 1900 and is a registered historical monument. The hotel is short walking distance from the most prestigious shopping in Monaco and offers an impressive selection of facilities and services including award-winning dining at vistamar restaurant, direct access to the adjacent spa, les thermes marins de monte carlo, with a full array of beauty, health, fitness facilities, heated sea water indoor pool, plus privileged access to other societe des bains de mer faciities. cordeditorial@cma.rs

92 April 2012 | 69

restaurant

Fantastic Newcomer ■ By Max williams Photos Emilija JELIć

Depo 23, one of Belgrade’s newest restaurants, isn’t the average neighbourhood dining spot. With an international mix of cuisines and personable staff making the rounds, Depo 23 is a restaurant on the up

n the desert even a stagnant pond is a godsend. Depo 23 is not a pond, or anything like it, but the point about context is made. An early-evening Over the past few years, some of wander around the faded, nearthe most inspired food in Belgrade has ly desperate former grandeur of emerged from some unlikely locales. Depo Belgrade, dodging taxis and the 23, on Zahumska 23 in the city centre, is odd stray barking dog, made this the latest addition to this group, pushing International/Serbian restaurant the mash-up of high-concept cooking and feel less like a place for dinner chilled out setting to new levels. than a place to unwind. I could Heady cooking aromas engulf you as lie about my feelings regardyou walk through the door, eyes adjusting Belgrade, describing it as the ing to a dimly lit space filled with woodPortofino of the Balkans. This is one of the best new restaurants, a en tables and funky, soon to changed, I know I will hot spot with some of the most creative decor. The setting screams of a trendy, new direction for Serbian ethos. And the now be pelthigh-end food of any eatery in Belgrade food here tells the story, with flavours ed with outteased out using cutting-edge cooking techniques and platrage and fury from locals (or as equally likely, people who ing, or jarring in some cases, straight from the pages of a grew up here, left and feel a residual affection without coffee-table cookbook. quite recognising the reasons for their exile). But what’s This is one of the best new restaurants, a hot spot with the point of pretending? The once, and still occasionalsome of the most creative high-end food of any eatery in ly lovely city is in trouble. That might be a trifle unfair as Belgrade. The menu, which changes specials nightly, needs Serbia and indeed Belgrade are indeed on the up, but the very little explaining, although the warm hosts here offer winter months get me down.

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as new diners are welcomed into Depo’s style. The menu, in clipboard style lists a short amount of dishes with some fantastic offerings. There’s confusion among the hipster hordes in Belgrade, drawn to restaurants not for the food but to be seen. However, with food this ambitious, Depo 23 really is a showcase for the chefs in the kitchen. Their leaders, having worked at the embassies of the UK, USA, Spain and the Hyatt and Iguana, seem to have taken their guidance wholeheartedly. Creativity and great preparation are part of the scenery here. The cooking at Depo 23 is entirely free of guesswork culinary improv it is not. The food is wildish yet familiar with a sense of home, too – ‘international’ is the term the owners approve of - gorgeous, tasty and hard to predict. Specials on the menu, including salad, soup, pasta and fish,

We’re on the frontier of fine dining, where innovative food and a cool casual space seem a natural fit evolve nightly, which is a nice and simple touch for the regular customer. Dinner for my guests and I began with venison on toast and finger food – crispy spring rolls, samosas and chicken. Sounds simple enough, until you consider that even Chinese restaurants in Serbia struggle to have spring rolls even on the menu, let alone make them. Or that the venison was equal to the best I have ever had the pleasure to taste. These two starters were delicious and striking and I would highly recommend them. Relaxing into the meal, I couldn’t help but notice that my chair was doing its level best to deny me of any sense of pleasure. I have been reliably informed that the diner style

chairs are on the way out, as is the current wall decor of records and vintage posters. In their place will be new seating - my back is appreciative as I am sure to be a regular fixture at the restaurant, and much hipper visuals by Serbian artist Livia Jovanović. With the atmosphere buzzing around the restaurant, the main courses arrived. First up was beef in a full flavoured Middle Eastern sauce accompanied with couscous. The best way to describe this dish is an exceptionally good effort at making food outside of one’s comfort zone. Also on the table was grilled to perfection tuna with creamy mashed potato and a generous helping of vegetables and finally, the best to the taste buds dish, veal cutlets served with French mustard, sautéed cabbage with a hint of apple, cooked in wine. Presentation across the three dishes was of a high standard. There was none of the now all-too-usual massive plate, no food syndrome going on here. Also on the menu are Serbian dishes, which I am sure are as fantastic as the international food. Of note was the wine – I sampled both a Serbian white and red from a new company opened by a French businessman. Both were excellent. Dessert was an over indulgent affair even by my standards. With my guests full to the brim, a compliment in itself, I devoured the chocolate cheesecake and tarte tatin served in a jar (very Public, but still cool) with pears and Armagnac like my life depended on them being eaten. Alas, I am now writing this review from beyond the grave, because of the generous, but not enormous proportions of the mains, I couldn’t finish the tatin, try as I might. And, this is where Depo 23 excels, not only is the atmosphere relaxed and the service great but best of all the food is what will draw the customers. We’re on the frontier of fine dining, where innovative food and a cool casual space seem a natural fit. Depo 23, though already impressive, is never stagnant, taking new risks every night. And that makes it one of Belgrade’s most exciting new places to eat. ■ cordeditorial@cma.rs

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chill out

Monster Fleas

scendants - the fleas we see today. Nine perfectly preserved fossils were unearthed from 165-million-year-old Jurassic deposits in Daohugou, northeast China, and the 125-million-year-old Cretaceous strata at Huangbanjigou, China. The female fleas were a huge 20mm in length, while the slightly smaller males still measured in at 15mm. The biggest fleas to be found today have a maximum length of 5mm.

It seems that dinosaurs weren’t the only scary monsters of the Jurassic period as newly-discovered fossils reveal giant blood-sucking fleas afflicted the prehistoric world. Scientists say that the 2cm-long parasites, which roamed the planet between the Middle Jurassic and Lower Cretaceous, were up to four times larger than their de-

Crazy Teeth

108 year old Vacuum

A Chinese daredevil has broken a Guinness World Record after balancing a staggering 23 wooden benches on just his teeth in Chongqing, China. Li Hongxiao, 31, has been balancing objects in his mouth since he was a child. But the stuntman surpassed all his previous achievements by successfully balancing the unusual load for 11 seconds, as audiences in the Dazu district of southwest China looked on in disbelief. With each bench one metre long, 45 centimeters high and weighing in at 3kg, the combined weight stood at a whopping 69kg - almost as much as his 75kg body weight. Li, from Tianqiao village in Chongqing, began performing a ‘lion dance’ at the tender age of eight to earn money for his family. The previous holder mastered just 14 benches.

Still sucking after 108 years, Harry Cox owns the oldest known working vacuum. He rescued the cleaner and accessories from a skip at work before it went to a landfill site. Harry, at 53 less than half the age of his 1904 American Sturtevant vacuum cleaner No.4, said: “There was a walk-in skip at the factory and I rescued it. “I like to collect things that are getting thrown away, restore them and give them a new lease of life. It makes me feel good.” Despite his enthusiasm for old machines, his wife Jacqueline ignores the heavy, noisy antique and prefers to clean their three-bed semi in Timperley, UK, with a more modern model. Bill Whitwam, of Leicester, UK, was previously believed to have the oldest working vacuum with a 1929 Hoover Senior.

Atherstone Ball Game Introducing the 800-year-old ball game where the rules are simple. Hang on to the ball and don’t kill anyone. The town of Atherstone in Warwickshire plays host to the annual running of their “Ball Game”, with organisers hailing it as “the best game for years.” The Atherstone Ball Game is a free-for-all event which takes 72 |

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place along the town’s Watling Street. A heavy leather ball decorated with ribbons is thrown from a window in the town and the game begins. The object of the game is simple. Be the person holding the ball when the game finishes at 5:00pm. The rules are even simpler. Don’t kill anyone. The 2012 game was the 813th running of The Atherstone Ball Game and organisers were delighted with the event... in other words, no-one died.

Spider Strings A Japanese researcher has used thousands of strands of spider silk to spin a set of violin strings. The strings are said to have a “soft and profound timbre” relative to traditional gut or steel strings. That may arise from the way the strings are twisted, resulting in a “packing structure” that leaves practically no space between any

of the strands. Shigeyoshi Osaki of Japan’s Nara Medical University has been interested in the mechanical properties of spider silk for a number of years. In particular, he has studied the “dragline” silk that spiders dangle from. Dr Osaki has perfected methods of obtaining large quantities of this dragline silk from captive-bred spiders and has now turned his attention to applications of the remarkable material.

Extinct for 80 Years A forbidding rock that stands higher than the Empire State Building, does not look like the most welcoming place to set up home. But that did not stop an insect which was thought to be extinct for 80 years from building its last known colony on the 1,844ft high Ball’s Pyramid. The insect, which is as large as a human hand, had somehow made its camp despite the lack of food and harsh conditions. The astonishing discovery was made on Ball’s Pyramid which emerged from the sea 7 million years ago off the coast of Australia near Lord Howe Island. The six legged ‘tree lobster’ or, Dryococelus australis, presumed extinct since none had been seen since 1920, are 12cm long and are the heaviest flightless stick insect in the world.

Elevator to Space A Japanese firm would like to take tourists spaceward, to a station connected to a 22,370-mile stretch of cable. Ever dream of flying into outer space? In the next 40 years, adventurous space tourists might be able to get there without even boarding a rocket ship. The Tokyo-based firm is planning to build a space station thousands of miles above the planet, transporting passengers toand-from orbit with a futuristic space elevator. Obayashi Corp. - a firm currently building Japan’s tallest structure, the 2,080-foot Tokyo Sky Tree - has unveiled plans to build a working space elevator, which it hopes to running by 2050. The project is said to cost €9.14 billion. The company has said it has no idea “where to build it, or who would pay for it.”

Titan Masterpiece Titian’s Diana and Callisto has been saved for the UK after a £45m (€53.8m) deal was agreed with owner the Duke of Sutherland. The “supremely important” oil painting was bought with the help of £25m (€30.2m) from the London National Gallery after a lengthy fundraising campaign. Along with partners National Galleries of Scotland, they also saved sister piece Diana and

Actaeon in 2009. Both galleries hailed the “exceptional generosity” of donors. The two pieces will be displayed together on a rotating basis in London and Edinburgh. Titian’s Diana and Actaeon was purchased three years ago for £50m (€60.3m). The institutions had originally been given until the end of the year to raise money for the second work. The two Titian paintings form part of the Duke of Sutherland’s Bridgewater Collection. cordeditorial@cma.rs

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techno talk The hottest new models from the Geneva Motor Show

■ by Max

WILLIAMS

The Geneva Motor Show is the only place in the world to witness the ultimate in automobile unveilings, and this year was no different. Manufacturers have rolled out their new models for 2012/13 and if you have the means, there are numerous stunning new vehicles to chose from Fiat 500L

€14,000

The ‘L' stands for ‘Large', and that's because the new 500L is actually quite large. At 414cm long, 178cm wide and 166cm high, it comfortably eclipses the Fiat Panda in size, as well as the the Punto Evo. Think of it as a mutant 500. Fiat says the 500L offers MPV passenger space with the feel of a small SUV. It'll launch in Europe near the end of 2012 with that fabulous TwinAir engine.

Mercedes A-Class

€19,000

Staying close to the stunning design of the Concept seen at the Shanghai show last year, the new car apparently sits 18cm closer to the ground than its predecessor. The bold face and sweeping lines lend it a very aggressive feel, and Merc has promised a "high-quality" interior to match. There's more good news too, because Mercedes says AMG were involved in the design from the very start.

Audi A1 Quattro

€35,000

The limited-edition A1 Quattro shares the 2-litre TSI turbocharged petrol engine of the existing Audi S3, which is claimed to be capable of blasting the supermini from 0-62mph in 5.7 seconds, on its way to a 152mph top speed. Drive is delivered via a six-speed manual gearbox instead of a twin-clutch. But don’t get too excited – the A1 Quattro has a production limited to 333 cars for worldwide sale. 74 |

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Jaguar XF Sportbrake

€45,000

While this isn’t Jaguar’s first estate, it is only its second in 90 years. The car goes on sale in Europe in the third quarter of 2012 with a choice of two diesel engines measuring 2.2 and 3.0 liters. Either powerplant is matched with an eight-speed automatic and sends its power exclusively to the rear wheels. Take some time now to drool over it.

Audi RS4

€55,000 It's been three years since Audi's RS4 went MIA from Ingolstadt's line-up. Be thankful for 2012 then, because it has now returned in an attempt to take its rivals back to school. Welcome the new Audi RS4 Avant. It gets Audi's handbuilt 4.2-litre naturally aspirated V8 engine. That means 444bhp and 317lb ft of torque being fed through Audi's quattro system.

BMW M6

€100,000 This is the second M car to get the very highly pumped 4.4-litre twin-turbocharged V8 engine and therefore boasts 552bhp and 502lb ft of torque. That's more power than the Jaguar XKR-S. Power, naturally, goes to the rear wheels via a seven-speed M double clutch gearbox with launch control. As such, BMW quotes a 0-62mph time of 4.2 seconds for the coupe, and 4.3 seconds for the convertible.

Porsche 911 Carrera Cabriolet

€110,000

As goes the 911 coupe, so goes the convertible. The all-new 2012 Porsche 911 Carrera Cabriolet is longer, lighter, and more powerful than its predecessor. While it retains all the unmistakable DNA like the rear-mounted flat-six and evolutionary styling that still pays homage to the 1965 original, there's no mistaking this 911 for any previous generation. The 2012 911 Cabriolet is more refined than ever. cordeditorial@cma.rs

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techno talk Mercedes SL63 AMG

€120,000

Mercedes has revealed its rather delectable new SL packing the full complement of AMG's modern knowhow. As such, it is the latest in a long line of new Mercs (CL63, CLS63, E63, S63) to get the 5.5-litre twin turbo V8 petrol engine, rather than the 6.2-litre naturally aspirated monster. It'll go on sale in Europe later this summer with prices to be confirmed closer to its launch time.

Ferrari F12 Berlinetta

€260,000

The 740 horses from a 6.3-litre V12 mean the rear-drive F12 can nail 60 in three seconds, howl to 125 in just 8.6, and thunder all the way to more than 211mph, making it the fastest road-going Ferrari ever produced. Replacing the 599, the F12 heralds a new generation of ultra-swift V12 engines that will power the latest Enzo in 2013. Like the Daytona before it, the F12 Berlinetta is an instant legend.

Mansory McLaren MP4-12C

€300,000

Looking at the Mansory version of the McLaren MP4-12C is to us like looking like a supercar made from carbon fiber that’s on fire. You just can’t get enough of this hotness. Thanks to a new engine management system, a redesigned exhaust and intake air filter, the 3.8-litre McLaren twin-turbo now pushes out 670 PS (661 bhp) instead of the standard 600 PS (591 bhp).

Bentley Mulsanne Muliner Driving

€330,000

The Bentley Mulsanne Mulliner Driving Specification is fit for kings. The monarchs must love sharp handling though, as this four-door saloon distinguishes itself from its siblings with a 'sport' setting. This optimises the air-suspension and steering. This Bentley produces 505bhp and propels crown wearers to 60mph in 5.1s. Top speed is 184mph, which is fast for a palace. 76 |

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Aston Martin V12 Vantage Zagato

€350,000

The new V12 builds on just over 50 years of history between the British and Italian firms, the first DB4 GTs with Zagato bodies appearing as racecars in 1961. Think of the new V12 Zagato as Aston's Golden anniversary present, to itself. Each Zagato takes around 2,000 man hours to complete, and is constructed from hand-crafted aluminium and carbon fibre, just like the One-77.

Pagani Huayra

€1.7 million

The Huayra is Pagani's second supercar following the successful Zonda. Similar in design, it uses a Mercedes-sourced V12 engine and takes advantage of Pagani's in-house carbon fiber expertise. Pagani thoroughly revised their production process to tool up for the Huayra. It uses a different type of construction, involving extensive use of titanium througout the chassis and suspension.

Lamborghini Aventador J

€2.1 million

This is not a concept car. We repeat, this is not a concept car. It's one thing to create a convertible version of the gorgeous Lamborghini Aventador LP700-4, it's another thing to take off the roof and the windscreen. What you do get, however, is what Lamborghini calls "an utterly indescribable experience of power and dynamics." The J will hit speeds as high as 186 miles per hour.

Bugatti 16/4 Veyron Grandsport Vitesse

€2.2 million

Please be upstanding for the most powerful factorybuilt roadster in the history of TIME - the Bugatti Veyron 16/4 Grand Sport Vitesse. So, what sort of numbers does a convertible need to be the fastest in the world? 1184bhp and 1105lb ft. That's 197bhp and 183lb ft up from the cooking variety Veyron's 987bhp and 922lb ft. Or roughly one VW Golf GTI more. cordeditorial@cma.rs

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fashion

Au Revior ‘It’ Bag I

It’s time to put your Birkin bags in storage and opt for something fresh this year. After over a decade of ‘It’ bags among the fashion elite, the statusscreaming bags are out ■ By Danica Tancic

n an age where almost nothing is démodé, a stronger-than-ever demand for individuality is born. Fashion is a mechanism of social distinction and identification and serves as an outlet for the pressure that comes with the demand for both equality (striving to belong to a certain crowd) and individuality. The modern woman wants to belong to a certain crowd, but at the same time strives to be individual. When everyone jumps into the hype of a current novelty, it instantly becomes old news - so innovation and imitation continuously and forever follow one another in a vicious and competitive cycle. Experiencing novelty is the core of fashion, primarily because the mania for novelty is a craving that can never be completely satisfied. Competitive human nature is one of the main stimulators of fashion – everyone strives to be superior and outsmart one another in order to show and improve their position in society - and this is how the ‘It’ bag was born. What is the ‘It’ bag? The ‘It’ bag is the bag that everyone wants, and everyone who is someone already has. The power of the ‘It’ bag was mindblowing – dangle it on your forearm (never in the crook of your inner elbow, terribly crude), walk into a hip party, and you’re instantly a somebody, no matter how anonymous you are. Your ‘It’ bag becomes a characteristic you share with only the most elite, fashion-forward and upper class of society – la crème de la crème – and it’s intoxicating. Suddenly you’re sporting the same bag as Grace Kelly, Lindsay Lohan, Kate Moss, and everybody relevant amongst the true fashion elite– and everybody knows just how painful to your wallet this baby was. The female covetousness and status-symbol power surrounding these bags is addictive, exciting, and almost fulfilling.

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Iconic ‘It’ bags such as the Hermes Birkin, Hermes Kelly, Balenciaga Motorcycle, Chloe Paddington, Chanel 2.55 - and more recently the Proenza Schouler PS1 and Alexander Wang Rocco - are worn as a statement by women who want to show they are part of this clique of the privileged, powerful and elite. However, the ‘It’ bag is dead. In fact, it died over a year ago and is now decomposing, rotting away in the basements of the fashion elite. So what officially killed the ‘It’ Bag? Officially, the low economy, but Jil Sander’s €90 Market Bag – a tangerine coloured, transparent, plastic holdall - stole the spotlight. Now it’s tacky, distasteful, and even embarrassing to sport one of these €1,500 status symbols. (picture of Jil Sander market bag with labeling caption)

Today it’s all about (faux?) modesty, anonymous luxury, a certain type of simplicity – the “who knows, knows” (and those who know matter the most) mindset. Of course, many celebrities are still parading around their Hermes Birkins and Mulberry Alexas, but the true fashion elite wouldn’t be caught dead taking a stroll with something so passé. So say goodbye to ‘It’ bags, although they’ll probably make a comeback, and welcome the focus which is now firmly on metallics, surface materials - think plastic, acetate, neoprene – neon colours, fur, conceptual, interesting and new designs of all types, though still not necessarily wallet-friendly.

3.1 Phillip Lim

FREYWILLE

Over time

Pashli Satchel

The Pashli is an incredibly handsome handbag with its expandable sides and front flap, and it’s very convenient and spacious. A bold and convenient buy for the fashion-aware career girl. price:

€ 893

The new FREY WILLE bangle watch REGINA combines luxurious jewellery and artistic design with a sleek watch function; perfect for every day wear and elegant occasions. FREYWILLE boutique, Terazije 26, Belgrade

price: xxx

Collection “ Hommage à Hundertwasser”, Design “Emotion Spiral”

€ 1597

www.freywille.com

Proenza Schouler

price: Celine

€1,530

Phantom Similar in design to its predecessor (the Boston), but slightly quirkier and redesigned. Definitely a fashion statement that can be worn daily.

PS1 Raffia & Leather Clutch The raffia gives this Proenza staple a chic twist for the sun, and the combination of the navy leather is mouthwatering. Definitely a versatile buy you won’t regret for this spring/summer.

price:

€1,400

price:

€776 Proenza Schouler

PS11

The Proenza Schouler PS11 is an edgier, bolder sister to its predecessor, the PS1. A must-have that can be worn both day and night. Especially cool in the bolder colours for spring/summer.

cordeditorial@cma.rs

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Alaia

Stella McCartney

Laser-cut Leather Clutch

Falabella Fold-Over Clutch

A very versatile and distinctive piece. Can be matched with any style – from wild prints to rock’n’roll. An original take on the transparent trend, without such an eye-watering price tag.

The Stella Falabella fold-over clutch in tangerine is right on trend with Pantone’s predicted it-colour this season, and is also one of the coolest bags out there. price:

price:

€510

€399

price:

€435

Anndra Neen

Cage Clutch If you sport one of the up-andcoming sister design duo Anndra Neen’s cage bags, you’ll definitely be the coolest girl in town. Absolutely genius design with the right amount of both chic and edge. Isabel Marant

Etoile Isabel Marant

Willow Sneaker Currently one of the hottest pairs of shoes on the market. There’s even a waiting list. There are various colour combos to choose from. They may seem strange at first sight, but you will fall in love. price:

€375

price:

€615 Haider Ackermann

Silk Mesh Cropped Trousers They come in either mint or tangerine – this season’s hottest shades. Pair them with Ackermann’s fuchsia silk mesh blazer for an extraordinarily rich look.

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Gibson Shorts These retro-modern shorts are a simple, but matched with the right things make an amazing piece that won’t be forgotten or left sitting in the closet.

price:

€135

Eddie Borgo

Rag & Bone

Gemstone Cone Bracelet

Danby Cable Knit Sweater €405

A slight variation to the classic silver cone bracelets; this transparent pick is right on the transparent trend.

In a rich mint shade, one of the season’s top colours, with cable knit on the front and waffle knit and zipper down the back, this sweater is full of edge. Pair it with a pair of leather shorts.

price:

€419 Balenciaga

Glove Leather Mule Slides

price:

€383

Popularized by Taylor Tomasi Hill and still a hit, buy these in bright red to stand out from the crowd.

3.1 Phillip Lim

Big Splash Print Pant

Stella McCartney

Hawaiian Print Dress

These relaxed pants are all about the amazing print that can be paired with an endless amount of outfits.

A minimalist silk silhouette with a tremendous print. Wear it to stand out this season.

price:

€343

€839 Alexander Wang

Enzyme Cutout Silk Tank An ideal buy to participate in one of this seasons big trends – athletic inspired clothing.

price:

€298 cordeditorial@cma.rs

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profile

Balkan Creativity for the

Whole World

My father taught me that ideas are the strongest currency. In the region where we live, there is a huge number of talented and creative people. Although we work on rather small markets, we have great potential in the creative industry

Žarko Sakan, Managing Director, New Moment New Ideas Company

aybe we can’t manufacture cars that are better than

Pesev and Nenad Lozović are of the biggest help to me in our re-

Mercedes, but we can certainly make a movie, com-

gional structure.

pose music, design, make a computer game or any oth-

Although, globally speaking, the communications business

er creative product that can be competitive on the global market.

is suffering from a deep crisis, our company has been growing.

Apart from generating export and profit, the creative industry can

We have stability and in the last two years annual growth of 15%

help in dispersing our culture on the global scene.

which I consider a great success. Big companies, which are our

Ever since I was born, I have been in the advertising busi-

clients, have also recognized the quality of our creative people

ness. All my life I was surrounded by the best experts and creative

and engineers. This is especially evident in the digital segment

minds in the Balkans.

and Internet campaigns which, due to their nature, can be creat-

I manage a company that operates in eight regional countries

ed in Serbia for the entire world to see. For instance, in the case of

(Serbia, Slovenia, Croatia, Bosnia and Herzegovina, Montenegro,

our client Nokia, we do digital campaigns for Switzerland, Greece,

Albania, and Bulgaria), with 250 employees and 120 clients.

Austria, Israel and many other countries. Our creative output was

I was schooled in London and Rome, worked in our companies in Slovenia and Bulgaria but learned the most by following my fa-

even picked up by Nokia Argentina so creative products which are made in Belgrade are used by Nokia in South America.

ther’s example who taught me very early on that in order to cre-

At the beginning of this year, we started to work for the North

ate, we need to dream first and that everybody has a guiding star.

American market where our client is the biggest online travel

He used to say the company is like a jazz band where every indi-

agency from Toronto.

vidual is a virtuoso on their own instrument and that, together, we

In addition to the traditional business, we have also engaged

create a melody. Our business is made of the 4Ps - people, peo-

in promoting the spirit and creativity of the Balkans around the

ple, people, and people.

world. For the past 11 years, we have held a school of creative

In the last ten years I have managed New Moment Belgrade,

thinking called ‘Ideas Campus’ which assembles the leading cre-

and, as of recently, I am in charge of managing our companies in

ative minds from all over Europe. Also, we are proud issue no. 33

the region. As a regional company, we have developed a special-

of New Moment Magazine which came out late last year. The big-

ized agency providing specific services in integral marketing com-

gest regional and global creative minds gave their contribution

munications. We have companies that specialize in advertising, media buying and planning, digital, trade markets, events, PR and healthcare. We live locally, work regionally and think

Ever since I was born I have been in the advertising business. All my life I was surrounded by the best experts and creative minds in the Balkans

globally so that all of our regional companies operate as indi-

and support to the creation of this issue.

vidual companies and yet we all service regional clients togeth-

As one of our greatest successes and projects dearest to me I

er. Globally, we are a member of the biggest communications

would like to single out the work we did on creating a monument in

group in the world – WPP and represent its companies Young and

honour of my late father which was built on the Adriatic coastline,

Rubicam in advertising, Wunderman in digital communications

in the Slovenian town of Piran. The project was realized together

and MediaEdge in media planning and buying.

with the municipality of Piran, and was executed by my brother

I am glad to have continued to our family’s tradition. Apart

Lazar, with the creative help and support from Slavisa Savić.

from omnipresent globalization, I am very proud of the fact that

Although our company’s tradition is 30 years long, we believe

we are still a family company. My brother Lazar and I run the re-

that each new day brings a brand new game. I am looking forward

gional network with friends with whom we’ve been working for the

to new games and new brands that we are going to help to shine

past 15 years. Aside from my brother, our business partners Saso

in their full splendour. ■

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www.cordmagazine.com

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92 April 2012