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CONTENTS ISSUE 135

Ad Spending Growth to Continue in 2016

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ADVERTISING GLOBAL FORECASTS FOR 2016 51 06 | COMMENT - H.E. MICHAELDAVENPORT, Head of the Delegation of the European Union to the Republic of Serbia

Serbian medical care SPECIAL EDITION

STEP BY STEP IN GOOD DIRECTION

64 08

Highlights of 2015 Expectations for 2016

Good, But Could Be Better!

Our Neutrality is Our Strength

EDITOR: Ana Novčić a.novcic@aim.rs ART DIRECTOR: Jasmina Laković j.lakovic@aim.rs CONTRIBUTORS: Rob Dugdale, Mirjana Jovanović, Miša Brkić, Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić EDITORIAL MANAGER: Tanja Banković t.bankovic@aim.rs PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

Commercial Department of the Austrian Embassy: DOING

BUSINESS IN SERBIA SURVEY 2015

global diary

Business Dialogue

Challenges and Opportunities

ZORAN KESIC

TV presenter

The Most Powerful, Influential, Richest... in 2015 72

chill out 74

From Novice to Champion skiing guide 2015/16 78

FOCUS: BUSINESS LEADERS

Fashion: We don’t Know Where, but we know What

Intelligent Systems Now Connect the World

After Work 44

culture calendar DEJAN DRAMICANIN

CEO at Bitgear Wireless Design Services

faces & places

TRANSLATION: Snežana Bjelotomić, MRP Editorial EXECUTIVE PROJECT MANAGER Maja Vidaković m.vidakovic@aim.rs PROJECT MANAGERS: Biljana Dević, b.devic@aim.rs Aleksandra Ebilji, a.ebilji@aim.rs Ljiljana Knežević, lj.knezevic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER: Ivan Novčić i.novcic@aim.rs FINANCIAL DIRECTOR: Dragana Skrobonja d.skrobonja@aim.rs OFFICE MANAGER: Nataša Nešić n.nesic@aim.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, 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 2016

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COMMENT

Step by Step in a

Positive Direction Serbia is a key partner for the EU and is poised to move ahead in its membership accession negotiations during 2016.

H.E. MICHAEL DAVENPORT, Head of the Delegation of the European Union to the Republic of Serbia

his has been a remarkable year. First of all, on 14th December in its membership accession negotiations during 2016. The manwe opened the first two chapters in Serbia’s EU accession date of the EU Delegation in Serbia is to support Serbia in preparnegotiations. This offers a major opportunity that needs to ing for membership. be seized. A poll that we commissioned in October showed A key priority will be to implement commitments to build an inthat 59 per cent of the population support Serbia’s membership in the dependent, impartial and efficient judiciary and drive forward an efEU and 53 per cent expect Serbia to join the Union in 10 years or less. fective fight against corruption, as well as creating conditions for In August the EU-facilitated dialogue between Belgrade and Pristina full exercising of freedom of expression. These commitments are resulted in four key agreements on energy, telecoms, the establishenshrined in action plans which the government and parliament ment of the Association/Community of Serb majority municipalities have adopted under chapters 23 (judiciary and fundamental rights) and Freedom of Movement/Mitrovica Bridge. EU facilitation also helped and 24 (justice, freedom and security). The EU is committed to proto resume the flow of people and goods between Serbia and Croatia in viding significant support to Serbia in all these areas. September. Serbia has also taken serious steps towards improving relaAs Serbia enters 2016, it is encouraging that economic growth tions with other countries in the region. Visits in both directions by the is set to return, as Serbia’s reward for its responsible economic and Prime Ministers of Serbia and Albania are a case in point. fiscal policies. We will continue strongly supporting the integraWe have seen tolerance develop in other areas tion of the Serbian economy with the EU. Last as well. You will remember that the Belgrade Pride year some 80 per cent of foreign investment Key priorities Parade and the first ever Trans Pride took place in Serbia came from businesses in EU Member will be to build without incident and in a relaxed atmosphere. States. Further improvements to the business Encouragingly, Serbia’s economic reforms climate, including through an effective fight an independent, started to produce the first signs of a return to against corruption and more efficient and indeimpartial and growth, supported by enhanced regional cooppendent courts, will help Serbia attract new inefficient judiciary, eration and plans for major regional infrastrucvestors. and drive forward an ture projects. Building on achievements in regional co-opI will also remember this year for Serbia’s hueffective fight against eration will also be a high priority. The EU stands mane response to the migration crisis, symbolready to offer further political and financial supcorruption ised so powerfully by the picture of a Serbian port in driving forward projects to extend and policeman holding a refugee child in his arms modernise transport and energy networks. in Preševo. The European Union has allocated more than €20 million Serbia should start feeling the impact of €150 million in prefto support the Serbian authorities and aid organisations and to help erential loans for small and medium-sized enterprises, infratransiting refugees and migrants. More is to come, if and when needed. structure, as well as investments of local authorities from the In April Serbia and the EU signed an agreement by which Serbia European Investment Bank (EIB), the EU Bank, channeled through joined the EU Civil Protection Mechanism. Serbia received signifilocal financial institutions. We expect the Ministry of Agriculture cant assistance from EU Member States through this mechanism to start contracting the first non-refundable grants from the €175 after last year’s floods, and again this year during the migration crimillion allocation available over the next six years from the Rural sis. We have helped rebuild over 1,000 houses, many schools, and Development Programme; this would lead to a total investment supported over 20,000 Serbian farmers and hundreds of businessin the sector of approximately €400 million. On a smaller scale, es in flood affected areas. And with EU support Serbia is now modEU assistance will reach flood-hit farmers in Eastern Serbia. ernising its flood defences. Our step-by-step approach takes time, but it is very well-founded Serbia is a key partner for the EU and is poised to move ahead and thought out. The prospects for Serbia are good. ■

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FOCUS

Highlights of 2015 -

EXPECTATIONS FOR 2016

In our now traditional survey, CorD ends each year by posing questions to ambassadors accredited in Serbia that relate to the year coming to an end and their expectations for the year ahead.

Unfortunately, 2015 started and ended with major terror acts. However, the world has continued to change during 2015, with mergers, developments and nations helping each other... We have witnessed major scientific discoveries, artistic events, sporting records, humanitarian activity... And there was also good news at the end of the year, when world leaders agreed to the form the Paris Alliance for Climate and Serbia opened its first EU accession negotiation chapters. For this New Year’s issue of CorD, we asked our distinguished readers the following question:

What has marked 2015 and what are your expectations for 2016, in terms of global politics and economics?

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Serious Test for Europe in 2016

AUSTRIA H.E. JOHANNES EIGNER

AMBASSADOR OF AUSTRIA TO SERBIA

 Last year was a year with unprecedented challenges for Europe as a whole – the refugee and migrant crisis has put a large number of countries, both inside and outside the Union, to a serious test, and has shaken some of the fundamentals of the Union itself

he sheer number of people has forced governments to improvise

T and partly set aside agreed rules. In quite a number of instances the national skin was nearer than the European shirt. Forgotten borders have regained their significance, the viability of the entire Schengen system has been placed in doubt. Austria and Serbia have been, and still are, very much at the centre of this flow of a million people: Serbia as a transit country and Austria as both a transit country and a final destination for, to date, close to 100,000 asylum-seekers. Only with some delay were efforts made to try to differentiate between those who need and merit full protection and those who are in search of a better life but whose acceptance would overstretch all possibilities and, thus, endanger the country’s very capability to protect. Equally with some delay, more emphasis was placed on tackling the root

The year to come will require more determination to mitigate and control the flow of refugees and migrants, a refined search for a balance between a resolute defence against terror and an equally resolute upholding of fundamental freedoms and values, and a clear understanding among all major players involved that action against terror on the ground must not lead to new destabilising situations causes of the mass exodus, in particular from Syria, not least also as a consequence of massive terror attacks, in Paris and elsewhere. The year to come will require more determination to mitigate and control the flow of refugees and migrants, a refined search for a balance between a resolute defence against terror and an equally resolute upholding of fundamental freedoms and values, and a clear understanding among all major players involved that action against terror on the ground must not lead to new destabilising situations, such as the Russian-Turkish conflict. For Serbia and its relationship with the European Union, 2015 has brought, despite all difficulties, literally a new chapter, with the opening of the first negotiating chapters and, thus, the beginning of accession talks in substance. More chapters will follow in the next year – Serbia has definitely embarked upon the road towards EU Membership. Austria will continue to be a reliable partner to, and strong supporter of, Serbia along this road. ■

More Efforts to Support Further Growth

CANADA H.E. PHILIP PINNINGTON

AMBASSADOR OF CANADA TO SERBIA

 First, optimism: 2015 was generally positive, but it was also challenging, with uneven economic growth worldwide, the international security system strained by events in Ukraine and Syria, population movements that will have far reaching implications, and an increased threat of terrorism. There was also a malaise in some societies about the direction they are taking

n this context, Serbia remained stable, with a growing, albeit modestly, economy. An ambitious reform agenda was adopted to support investment and business. Foreign investors continued to see Serbia as an attractive destination. Agreement was reached with the IMF and other international financial institutions on reform programmes, while reforms to modernise society were equally ambitious. Given that the future of Serbia lies in Europe, the crowning event of 2015 was the opening of accession negotiations with the European Union, which is an enormous vote of confidence for what Serbia has done, and what it has the potential to do. Serbia also strove to make the Brussels Agreement work, and to be a good neighbour within the Balkan region. Canada was impressed with how the Serbian Government and society dealt with the unprecedented flow of migrants. Serbia took centre stage when it successfully managed a challenging OSCE

For 2016 we can expect the general positive trend to continue, but we can also expect more instability, with lingering security threats and uncertain economic prospects agenda and hosted the OSCE Ministerial Council meeting in Belgrade. For 2016 we can expect the general positive trend to continue, but we can also expect more instability, with lingering security threats and uncertain economic prospects. We hope that 2016 will be the year when Serbians will begin to reap the positive results of the reforms of 2015, and future reforms still to come. Areas have been identified for additional attention: more work to modernise the economy and society to support growth; modernisation of the judicial system, so that it can respond to citizens’ needs quickly and transparently; reform of public administration to provide better services to citizens; dealing with corruption and its insidious effect on people’s faith in the institutions of their society, and; ensuring that freedom of expression flourishes. These things are fundamental to a modern, successful economy and society, whether they lead to EU membership or not. As the transition to a modern economy and a well governed stable European society continues in 2016, Serbians will be looking to see the benefits after many years of sacrifice. If they feel that they are part of that modern economy and society, and that both are serving their interests, then the prospects for Serbia will be very positive. ■ JANUARY

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FRANCE H.E. CHRISTINE MORO

AMBASSADOR OF FRANCE TO SERBIA

Stressful Year Seeks New Strengths

Current Challenges Require Global Solutions

 In 2015 Paris was the stage of events that shook the planet: two tragic terrorist events and the groundbreaking conference on climate change. The world has yet to respond to these threats

 2015 has posed many challenges for Europe and the world. Just a few weeks ago, the atrocious terrorist attacks in Paris reminded us of how quickly our life of freedom can be endangered. However, it was again Paris that showed us only a few days ago – with the adoption of the Climate agreement – that we can address global challenges if we act in unity.

he terrorist attacks of January

T and November sent a shoc-

kwave well beyond our borders. France has been targeted for its values – that are shared worldwide by many people of all origins and creeds – and also for its role in the fight against terrorist organisations. Many countries became aware of the urgent need to rally all forces to get rid of Daesh [the so-called Islamic State] and its kin, which are also – first and foremost – a terrible plague for the populations under their rule in the Middle East and Africa.

The aim of building political, social and economic stability will inspire our work with the Western Balkan countries, while preparing with them for their next regional summit in Paris Meanwhile, we must not lose sight of longer-term challenges. This is why France hosted the UN Conference on climate change – COP 21. Against all odds, we reached the goal on 12th December: a universal agreement to keep the rise of global temperature well below 2°C by the end of the century. The “Paris Alliance for climate”, which includes a wide range of social and economic actors, paves the way for the transformation of our economies, in order to drastically reduce greenhouse gas emissions. 2015 has put a lot of stress on the European Union once again, with continued financial and economic challenges, and additional tensions created by the refugee crisis… France sticks to its long-term vision of a Europe based on shared European values and solidarity, a duty for all Member States. In Serbia, the opening of the first negotiation chapters on 14th December marks a new step forward on its European path, achieved thanks to the continued commitment of Serbia, and the reforms carried out so far. The implementation, by both parties, of the agreements reached between Belgrade and Pristina must continue. On the basis of the action plans prepared in the fields of rule of law, justice, human rights etc., the opening of chapters 23 and 24 early in 2016 will allow new reforms to be put in place. Serbia can count on France as friend and partner in facing the challenges. Relations among neighbouring countries in the region have improved globally this year, despite incidents, sometimes serious, which show that overcoming the past is not easy. In that field it is also important to look forward and build a future of political, social and economic stability for younger generations. These aims will inspire our work with the Western Balkan countries, while preparing with them their annual regional cooperation summit, which Paris will host next summer. ■ 10 |

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GERMANY H.E. AXEL DITTMANN

AMBASSADOR OF GERMANY TO SERBIA

he Western Balkans also faced big challenges in 2015. Fleeing war in

T Syria and other violence-torn regions, an unprecedented number of

refugees have passed through Serbia, seeking refuge and asylum in the European Union, many of them in Germany. Serbia has reacted to this crisis with solidarity and in a humane way, proving to Europe that it is a reliable partner that shares its values. Germany has stood by Serbia in the refugee crisis, contributing around four million euros for refugee relief programmes in Serbia, in addition to its assistance via the European Union. The refugee crisis has also shown us that there is again a need for regional cooperation. It was of key importance that the “Berlin process” made progress in 2015. With a key contribution from Serbia, the leaders of the region agreed in Vienna last August to establish a core infrastructure network linking their countries closer together, and bringing the region closer to the EU. They also decided to create a regional youth exchange office.

I am looking forward to seeing Serbia continue its reform agenda in the economic sector, but also implement its action plans to fight corruption and improve the functioning of the judiciary Serbia has moved much closer to the European Union in 2015. The opening of the first two negotiating chapters on 14th December was a very important step on Serbia’s path towards the European Union, signifying the start of the operational phase of membership negotiations. As a fair and reliable partner, the German Government strongly supported this step. In 2016 it will be important to continue this momentum and intensify negotiations. One of my core tasks for 2016, as German ambassador to Serbia, will be to continue to assist Serbia on its path towards the EU. I expect two more chapters to be opened in the first half of 2016, namely those dealing with the rule of law. I am looking forward to seeing Serbia continue its reform agenda in the economic sector, but also implement its action plans to fight corruption, improve the functioning of the judiciary, ensure complete freedom of the media and of expression, and strengthen other fundamental freedoms. This will be crucial for Serbian society and its citizens, and also for Serbia’s business climate. 2015 was a very good year for Serbian-German cooperation. On the basis of the economic reforms undertaken by the Serbian Government, German companies have continued to invest in Serbia, a process that I expect to continue and one that will be among my priorities. A particular highlight was the visit of German Chancellor Angela Merkel to Belgrade in July 2015, as well as the two visits by Foreign Minister Frank-Walter Steinmeier, the last of which marked Serbia’s successful OSCE chairmanship in December. I am very confident that the strong basis of German-Serbian relations will enable us to further intensify our excellent political, economic and cultural cooperation in 2016! ■

GREECE H.E. CONSTANTINE ECONOMIDES

Troubling and Troubled Year

Bright Spot in a Gloomy World

 With this troubling and troubled year coming to an end, three major issues should be highlighted as having been predominant throughout the year, and having put Europe’s unity and cohesion to the test: namely, the economic crisis, the migration and refugee crisis and the security threat

 With the government’s ambitious reform moves, India is set to record further economic growth in the years ahead

n the economic domain, after particularly delicate and lengthy negotiations, the new stabilisatiAMBASSADOR OF GREECE TO SERBIA on programme concluded last July between Greece and its European partners is expected to contribute significantly to the stabilisation of the Eurozone, while allowing for long-awaited pursuit of the growth agenda. However, in the midst of an unfavourable economic climate, Europe has been hit by an unprecedented refugee crisis. Undoubtedly, the latter constitutes a common European problem and should be tackled accordingly, within the European framework. In this respect, Greece – which has found itself at the forefront of recent migration flows – supports the setting out and implementation of a comprehensive policy based on the principle of solidarity, which will ensure the fair redistribution of burdens and will be proportional to the capacities and capabilities of each country. It is our firm belief that the future of Europe cannot be built via ever-higher walls or by turning our backs on the children who are dying on our doorstep. In the field of security, the deadly terrorist attacks in Paris constitute a direct threat to democracy and the European way of life, which also demands a common approach and a unified stance. Nevertheless, despite the spread of jihadism, Europe should not allow racism and xenophobia to destroy its common principles and values.

It is our firm belief that the future of Europe cannot be built via everhigher walls or by turning our backs on the children who are dying on our doorstep Against this wider European backdrop, during the past year Serbia has demonstrated willingness and determination in the pursuit of its main strategic goal: achieving significant progress on its path towards EU integration. Following the official opening of accession negotiations during the Hellenic Presidency of the EU in January 2014, the successful conclusion of the screening process in March 2015, as well as the tangible progress achieved in the field of the normalisation of relations with Pristina, the opening of the first two negotiating chapters at the 2nd Intergovernmental Conference on 14th December will represent an important milestone in Serbia’s accession process. Subsequently, the challenge for the year ahead will be to maintain momentum and keep the process moving at a steady pace by ensuring the timely opening of as many negotiating chapters as possible. Finally, it goes without saying that Serbia will remain an important partner in our common efforts to tackle the current refugee crisis, as well as the potential terrorist and jihadist threat against our common security. ■

he year 2015 saw a new, resur-

T gent India under the dynamic leadership of Prime Minister Narendra Modi, both on the political and economic fronts. The government launched a series of initiatives designed AMBASSADOR OF INDIA TO SERBIA to encourage investment, including FDI, and to make India an easy and simple place to do business. New flagship schemes, such as Make in India, Digital India, Smart Cities, Financial Inclusive programmes etc., were launched to boost the country’s economy. Today, there is a new vibrancy and a new energy in India. India has opened up all major sectors to FDI and is the world’s most open economy. Foreign direct investment flows during 2014-2015 reached $44 billion, representing a 48 per cent upsurge this year in dollar terms. The country expects this to double next year. FDI also exceeded the current account deficit for the first time in seven years. The government’s continued push towards FDI liberalisation will continue to ease FDI flows. The Financial Times’ ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $31 billion - some $3 billion more than China and $4 billion more than the U.S.

INDIA H.E. NARINDER CHAUHAN

The jump in India’s position to 55th place on the global index of the world’s most competitive economies, compiled by the World Economic Forum, underlines the country’s recent economic recovery In an environment where economic growth is modest, India today stands as a bright spot among the global economies. The International Monetary Fund (IMF) projected in its report that India will growth at 7.3% in 2015, rising to 7.5% in 2016, benefiting from recent policy reforms, a consequent pickup in investment and lower commodity prices. Administrative reforms and simplification of approval processes, including online project approval and easier environmental clearance procedures, are expected to improve business sentiment and the ease of doing business in India. The government has set an ambitious deadline of 2016 for implementing the Goods and Services Tax (GST). A clear cut road map for lowering corporate tax from 30% to 25% over the next four years has been laid down. Other forward-looking government initiatives include a nod for IPOs/FPOs by banks to raise funds, as long as government equity remains at 52% or over; a nod for real estate and infrastructure investment trusts, with tax benefits; and a nod from the Cabinet for the ‘100 Smart Cities’ project. $130 billion has been proposed for spending on railways over five years, on schemes including high-speed trains, while two rounds of coal block auctions have been concluded successfully, with more lined up. An impasse in the mining sector ended with the passage of a new bill for regulation and development. There has also been the successful conclusion of auctions for telecom spectrum for mobile telephony and broadband... ■

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Stronger International Cooperation Needed

ITALY H.E. GIUSEPPE MANZO

AMBASSADOR OF ITALY TO SERBIA

 On the whole, 2015 has not been an easy year for the world. Against a global backdrop where signs of economic recovery are still too weak, the recent surge of brutal terrorism, and the tragedy of hundreds of thousands of refugees and migrants crossing continents, reminds us of the need for even stronger international cooperation to tackle these challenges

n the other hand, 2015 has been an exceptional year for Italy in Serbia.

O One might think it would be difficult to expect further improvements, but I am sure we’ll do even better – as we did in 2015, after an excellent 2014. The meeting one year ago between prime ministers Renzi and Vučić launched an unprecedented period that included visits to Belgrade by President of the Republic, Mattarella, President of the Senate, Grasso, and Foreign Minister Gentiloni. Figures confirm this and rank Italy and its companies as number one in trade and investments in Serbia. Good news for your country, and for us, is that Serbia is increasingly showing both the will and the capability to be part of the solution, as opposed to being part of the problem, as it was in the past. The OSCE chairmanship, strong commitment to regional cooperation, internal economic reforms and the country’s stance on the refugee crisis – these are all the unequivocal acts of a country that not only wants to become a European Union member, but also wants to act like one. The opening of the first two chapters of EU accession negotiations, which we have advocated in favour of for a long time, is the natural result of all of this. Just as I wish Serbia to advance rapidly on this path, I also wish for Europe to welcome Serbia back into its family soon. I am sure the Serbian people and government will do what’s necessary – in terms of the still much-needed structural reforms – in order to make that happen.

Growth is what I wish for Serbia in 2016. This is a path along which Italy has started progressing steadily over the last two years But if I had to pick only one thing that matters for Serbia (and Italy), growth is what I wish for Serbia in 2016. This is a path along which Italy has started progressing steadily over the last two years. I know this is a goal your leadership is pursuing alongside fiscal consolidation. It will help people perceive the benefits of structural reforms that make your country more attractive to foreign investors. Growth will also help Serbs gain more faith in the entrepreneurial skills they are acquiring by working alongside Italian investors and others. I also hope for more local businesses to be launched in 2016 in Serbia and for the opportunities coming from what I believe are two of your biggest assets, culture and agriculture, to be seized. Italy is investing heavily in those two areas, through both private investors (Ferrero, Rigoni etc.) and scientific institutions and universities, which this year signed numerous agreements and started many projects in the field of advanced technologies. I expect that our companies and yours will continue working together more and more, promoting growth in both our countries. ■

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Year of Violence  Democratic life was reaffirmed in 2015, with electoral processes seeing many countries renew governments and parliaments. In Tunisia, a conciliatory Quartet facilitated political transition via elections and received the Nobel Peace Prize

MEXICO H.E. RAMON XILOTL

AMBASSADOR OF MEXICO TO SERBIA

owever, not everything was orderly in the world: assassinations or

H incarcerations of opposition leaders and raids on their parties,

attacks on demonstrators, suspensions or controls of the internet and social networks – these cannot be ignored and, thus, there is still a long way to go. In some cases, the range of political parties doesn’t satisfy everyone, with independent candidates or political movements arising to seek to fill the void. The economy moves at a slow pace; insufficient growth leaves little room to improve quality of life, employment and pensions. It seems as though locked in competitiveness that reduces the prices of supplies and costs of salaries; in the end, it pauperises employees and degrades their purchasing power. Does such competitiveness, benefitting only big business, make any sense? Corruption scandals are not limited to public sectors, but also encompass private companies and institutions, like football’s international governing body.

Thousands of people, fearful for their lives, flee in search of refuge in other cultures, provoking mixed reactions in transited and recipient countries This year has also been characterised by violence, with outrageous expressions of religious and ethnic radicalisation. Beheadings, burnings, explosions, terrorist attacks, kidnappings and mass executions have ended innocent lives. The security strategies have been unable to prevent such violence, which tests authorities. Violence is also manifested in internal, racial or geopolitical wars of interest. Thousands of people, fearful for their lives, flee in search of refuge in other cultures, provoking mixed reactions in transited and recipient countries. Finally, will those who have been displaced integrate into host societies actively, or only marginally, in ghettos? It’s important to mention that the aggressors were born in the same countries they attacked. Diplomacy wins. There is a nuclear understanding between the Group 5 + 1 and Iran. The Americas are integrated, with relations between the North and the Caribbean reestablished. Greece is taking austerity measures and overcoming the impasse with the support of Germany and France. Climate consensus has been achieved in Paris; Pope Francis has paved the way with a previous Encyclical and also established relations between The Vatican and Palestine, travelled to the Balkans, the Caribbean, North and South America and Africa, carrying messages of peace, for a more humane economy, denouncing corruption and sanctifying peaceful martyrs. ■

Year Dotted With Important Events

Challenging Times  Last year was an important year due to the significant developments with respect to the global political and economic arena

TURKEY H.E. MEHMET KEMAL BOZAY

TURKISH AMBASSADOR TO SERBIA

urkey chaired the G20 Presidency in 2015 and held the G20 Summit in

T Antalya, where the leaders of the world’s 20 largest economies gat-

hered to discuss the planet’s most pressing issues. 2015 was also a significant year for Serbia, because it hosted the 22nd Ministerial Conference of the Organisation for Security and Cooperation in Europe (OSCE). However, one issue that was unfortunately in the spotlight of both the G20 Summit and the OSCE Ministerial Conference was the scourge of terrorism. This year witnessed high profile terrorist attacks in Ankara, Paris and Beirut, resulting in the deaths of hundreds of civilians. Furthermore, terror attacks continue to claim the lives of more than 30,000 innocent people every year. Unfortunately, 2015 once more proved the need for the international community to combat all kinds of terrorist activities in a collective way, with full cooperation.

Both Turkey and Serbia received fresh impetus in their accession negotiations in 2015, and both were on the frontlines in trying to cope with the refugee problem in a humanitarian way The international community’s inability to come up with a feasible political solution to the civil war raging in Syria has led to a massive refugee problem and both Turkey and Serbia have been on the frontlines, trying to cope with this problem in a responsible and humanitarian way. Both countries have done an impeccable job in handling the issue with sensitivity, whilst also showing its humane face to the world. I believe other countries in the region have a lot to learn from the way Turkey and Serbia have handled the refugee crisis. Within the area of bilateral relations, 2015 has witnessed important developments, such as the opening of the first Turkish bank and the first Turkish culture centre in Serbia. The positive trend in trade and economic relations has led to a surge in the influx of Turkish investments in Serbia. The extensive historical and cultural ties between the two countries are a testament to their shared values and, more importantly, shared future. Both countries are candidates to join the EU and both countries recently received fresh impetus in their accession negotiations. And at the end of the year, on 14th December, the first two chapters in EU accession negotiations were opened. We plan to conclude 2015 with the visit of the Turkish Prime Minister to Belgrade, which will lead us to new horizons in bilateral relations, mainly in the field of economic cooperation. ■

USA H.E. MICHAEL KIRBY

U.S. AMBASSADOR TO SERBIA

 I see 2015 as a year bookended by important advances in Serbia’s Euro-Atlantic integration: adoption in January of Serbia’s first NATO Individual Partnership Action Plan (“IPAP”), representing the closest political relationship a country can have with NATO without aspiring to membership, and the opening in December of the first EU accession chapters

n between, Serbia undertook important domestic reforms and demonstrated a commitment to regional stability, which led to substantial progress in the normalisation of relations with Kosovo and the improvement of relations with Bosnia-Herzegovina and Albania. Serbia also showed broader leadership this year, as Chair of the Organisation for Security and Cooperation in Europe. On the economic front, Serbia made significant progress by concluding a Standby Arrangement with the IMF. The agreement, and the government’s dedication to following it, have improved Serbia’s fiscal policy and demonstrated to potential investors that the government is serious about, and willing to take the steps necessary for, keeping the economy on a positive trajectory. This year also brought the opening of a new chapter in Serbian history, one that will be a focus of its national life for years to come. By taking the next step in the EU accession process, Serbia has committed itself to a process of reform that represents more than just a formal paper exercise involving meaningless bureaucratic changes. Rather, the hard work of adopting EU norms and standards will lead to a more prosperous, democratic Serbia that is more fully integrated into Euro-Atlantic institutions.

This new Serbia will over time become a place where young people have opportunities to find good jobs, start families, build their lives and achieve their dreams without leaving their homeland. It will have a growing economy that values innovation and encourages companies and individuals to play by the rules This new Serbia will over time become a place where young people have opportunities to find good jobs, start families, build their lives and achieve their dreams without leaving their homeland. It will have a growing economy that values innovation and encourages companies and individuals to play by the rules. The new Serbia will also be a place where civil society and journalists are supported and encouraged to play their important roles in fighting for freedom, justice and equality, and against corruption and mismanagement in all sectors of society. With hard work and dedication, Serbia has many good things to which it can look forward in 2016 and beyond. ■ JANUARY

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RECOGNITION

GLOBAL DIARY

“The EU’s negotiation platform for Chapter 35 on Kosovo does not require recognition of the unilateral declaration of independence of the Serbian southern province.“ - Marko Djurić, Director of the Serbian Government Office for Kosovo

THE 22ND OSCE MINISTERIAL COUNCIL 2015

▶ The 22nd OSCE Ministerial Council took place on 3rd-4th December in

Belgrade. The summit marks the end of Serbia’s year-long chairmanship of the organisation, which is set to be taken over by Germany in 2016. The Council addressed issues related to the settlement of the Ukrainian conflict, the fight against militant groups in Syria and the role of the OSCE in managing the refugee crisis in Europe, as

FIRST EXTERNAL AUDIT OF VATICAN ▶ In the first week of December the Vatican announced that PricewaterhouseCoopers will carry out its first external audit, as Pope Francis seeks to make the Holy See’s finances more transparent.

interests inside the Vatican — and it is far from clear if he is winning his battle to change the Catholic Church.

ZUCKERBERG PLEDGES 99% OF $45BLN FACEBOOK SHARES TO CHARITY ▶Facebook founder Mark Zuckerberg

has used the birth of his daughter Max as the catalyst to outline his vision for a better world, pledging to donate 99 per cent of his earnings to charity. Accompanying the photo of the happy family, Zuckerberg attached a heartfelt letter he penned to Max, including a pledge to donate 99 per cent PwC will work “in close cooperation” with the Vatican’s Secretariat for the Economy, headed by Australian cardinal George Pell, a statement said. The move to submit the Vatican’s finances to an external auditor comes a month after the publication of a book describing the pope’s fury over uncontrolled spending and an inadequate accounting system. According to Gianluigi Nuzzi, author of “Merchants in the Temple”, Francis is fighting a war with vested 14 |

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of his Facebook shares — currently about $US45 billion — to join many others in “improving the world for the next generation”. Following comments that he would

well as other current European and international political and security issues. It was hosted by OSCE Chairperson, Ivica Dačić, Serbian First Deputy Prime Minister and Minister of Foreign Affairs, who oversaw the bringing together of 1,500 officials and the foreign ministers of 57 OSCE member states and 11 partner countries. pay “zero tax” for the initiative’s investments, Zuckerberg denied that was the case. In a post on his Facebook page, he wrote that “just like everyone else, we will pay capital gains taxes when our shares are sold by the LLC.”

TORONTO MAYOR PLAYS MOOSE IN BALLET PERFORMANCE ▶ An unlikely moose was on the loose

at a Toronto theatre.

Mayor John Tory took part in the traditional holiday play known as The Nutcracker, playing a moose with a fondness for candy canes. Following the show, the 61-year-old mayor said he “had a fun time” playing the massive mammal. Ballet Jorgen Canada, a local dance company that

THE NOBEL PRIZE AWARD CEREMONIES ▶ More than a thousand people crammed into the Stockholm Concert Hall as the Nobel Prize award ceremony 2015. Their Majesties the King and Queen and other members of the Royal Family of Sweden were the guests of honour Each year the audience is treated to music performances in between each prize being handed out, with this December’s programme including classics by Wilhelm Peterson-Berger and Pyotr Ilyich Tchaikovsky. For the banquet, guests were promised a Scandinavian-themed locally sourced feast, spread out over more than 60 tables requiring some 7000 porcelain pieces. The following is the list of Nobel Prize winners. Physics: Takaaki Kajita and Arthur B. McDonald; Chemistry: Tomas Lindahl, Paul Modrich and Aziz Sancar; Physiology or Medicine: William C. Campbell and Satoshi Ōmura; Literature: Svetlana Alexievich; Economics:Angus Deaton and Peace: National Dialogue Quartet

DREAM

“Serbia ceases to dream dreams today, as it now understands that it will be part of the EU and the time of entry depends on us and our work, diligence and energy.” - Aleksandar Vučić, Serbian Prime Minister

DID YOU KNOW

Jamaica, Colombia and St Lucia are the only countries where a woman is more likely to be a boss than a man.

EU OPENS FIRST CHAPTERS IN ACCESSION NEGOTIATIONS WITH SERBIA ▶ Following good progress achieved in screening of the EU acquis, the 2nd

meeting of the Accession Conference with Serbia at the ministerial level was held on 14th December in Brussels in order to open negotiations on Chapters 32 and 35. The EU delegation was led by Jean Asselborn, Minister for Foreign and European Affairs of Luxembourg, representing the Luxembourg Presidency of the Council of the European Union. The European Commission was represented by Johannes Hahn, Commissioner for European Neighbourhood policy and Enlargement Negotiations. The Serbian delegation was led by Prime Minister Aleksandar Vučić and included First Deputy Prime Minister and Minister of Foreign Affairs, Ivica Dačić, Minister without portfolio responsible for European integration, Jadranka Joksimović, and Finance Minister Dušan Vujović. brings ballet to Canadian youngsters, said “it was great sharing the stage” with the mayor. The company engages choreographers and communities to bring art to children. The mayor stopped by a fundraiser for Syrian refugees later in the day before heading off to Paris to take part in the UN Climate Change Conference.

'THE KNOWLEDGE' CLOSED DOWN ▶ One of the most famous schools

that teaches London cab drivers, “The Knowledge”, closed down in December after 30 years due to ‘pro-

orise London’s 25,000 streets and learn landmark names, hotel names and shortcuts. From now on the Knowledge Point, based in Islington, will only offer its courses online, supplemented with pop-up seminars when required. hibitive’ rent prices ‘and Uber’. The Knowledge Point’s founder, Malcolm Linskey, told the Financial Times “demand has gone down since Uber arrived”. “Usually we have 350 students enrolling a year, last year it was 200.” Black cab drivers have to hold a Green Badge, which you can only get by passing ‘The Knowledge’. To pass the test drivers need to mem-

SAVING TURTLES FROM TRAINS ▶ Japan is already one of the saf-

est countries in the world for humans, and now it’s about to get a lot safer for turtles too.

The West Japan Railway Company teamed up with Suma Aqualife Park to find a turtle-saving solution: passageways under the tracks that allow the creatures to cross without being turned into turtle soup by a passing train. The turtle pathways were installed at two stations in Nara Prefecture in April and November, and since then, at least 10 of the slow-paced critters have been saved from instant death.

GELO ICE MUSIC FESTIVAL ▶ IceMusic is the invention of Terje

Isungset, a Norwegian who has been carving and playing his own ice instruments for many years. Besides being one of the foremost musicians in the field, he created the IceMusic Festival, a celebration of music and winter held inside a hollowed-out ice cave in Geilo, Norway. This year’s 11th edition of the festival will be held end of January The festival now features the sounds of harps, guitars and horns, all constructed out of ice blocks using chainsaws. The process generally begins with 300 kilograms ice blocks, that are cut from a frozen lake near Geilo. IceMusic leaves a minuscule environmental footprint and is viewed by its participants as the most unique musical celebration in the world.

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FOCUS: BUSINESS LEADERS

Challenges and

OPPORTUNITIES

What will 2016 bring us? In CorD’s survey, prominent business people – including local and foreign investors, managers of large state systems, bankers, leading figures in insurance companies, pharmaceutical companies, major retail chains, telecoms companies and other large employers in Serbia – speak from their perspective about progress in improving the business and investment environment, but also on the challenges that are yet to confront the Serbian government and the Serbian economy in the period ahead

Behind us is just the first year in the implementation of the agreement with the IMF – successful but tentative steps taken in fiscal stabilisation still need to be reinforced with much stronger moves in terms of reforming public enterprises and reducing administration, resolving issues of accumulated non-performing loans and unravelling a host of other obstacles that are hindering the normal functioning of the economy. Some are inclined to see the glass as being almost full, while some give the sobering assessment that it is half-empty. The CorD Survey enables readers to familiarise themselves – based on relevant sources and people who know the advantages and disadvantages of doing business in Serbia – with what 2016 has in store for us. The responses of the business leaders surveyed do not relate only to short-term forecasts about the challenges of 2016, but rather relate primarily to important structural issues, sectoral policies and possibilities to leverage economic policy to create room for faster economic growth. Moreover, the surveyed managers also point out the challenges posed by insufficient harmonisation of domestic legislation with EU standards, a lack of consistent application of regulations, as well as the complicated and unreformed administration that is noted each year by foreign investors SUBJECT: PRIORITY OF STRUCTURAL REFORMS IN 2016

Fully Implemented Reforms for a Healthy Economy  Serbia has made substantial progress in restoring macroeconomic stability and achieving fiscal consolidation in the previous period, while at the same time embarking on comprehensive structural reforms that are seen as crucial to improving the business environment, boosting investment and competitiveness, and fostering economic growth over the long term he first step towards achieving

T this goal was improving the re-

gulatory framework, which included the adoption of key structural laws, such as those governing labour, DRAGINJA ĐURIĆ PRESIDENT OF THE EXECUTIVE privatisation, mortgages and invesBOARD OF BANCA INTESA tments, followed by the launch of the corporate and financial restructuring of large public enterprises in the electricity, gas and rail sectors. The best validation of the government’s firm commitment to its reform agenda was the successful conclusion of the latest revision of the standby arrangement with the IMF, as well as Serbia’s improved ranking in the World Bank’s 2016 Doing Business report. A lot has been done on the structural reform path in an effort to get the economy on track to sustainable progress and ensuring that the long-term stability of public finances is preserved, but there is still a long road ahead of us. Additional attention might be paid to strengthening the economy’s capacity to bolster efficiency, production and export, whilst also encouraging job creation. The emphasis in 2016 should therefore be on stimulating 16 |

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the development of SMEs and reforming public enterprises, including through the introduction of corporate management and the completion of their restructuring and privatisation. In this sense, raising the efficiency of bankruptcy proceedings by centralising all procedures and processes will be an important task moving forward. Finally, the strategy for NPL resolution should be put into practice in order to address the high NPL rate that is impeding both economic and banking activity, with a focus on improving court and out-of-court restructuring and bankruptcy, assessments of collateral value and enforcement, as well as focusing on eliminating tax obstacles. As said before, some reform measures have already been undertaken by the government, but it is their implementation that will build the foundations of a healthy economy and enable the banking sector to realise its full potential in support of long-term economic growth. ■

A lot has been done on the structural reform path, but there is still a long road ahead of us

SUBJECT: WHAT'S IN STORE FOR THE BANKING SECTOR IN 2016?

SUBJECT: HOW TO DEAL WITH NLPS?

Serbian Banks Capable of Coping With NPLs

On the Threshold of Dynamic Challenges

MARIA ROUSSEVA

PRESIDENT OF THE EXECUTIVE BOARD AT SOCIETE GENERALE SRBIJA

 The latest technological trends, further consolidation of the banking sector and the entry of new market players are the key points that marked 2015 and will also influence banks’ plans and strategies in the next year in this challenging economic environment

t is certain that market competition for client acquisition will continue in both the corporate and retail sectors. When it comes to the corporate segment, new players are focusing strategically on this specific segment, posing new challenges for other participants to be more proactive in creating an adequate offer for specific clients’ needs. Alongside major corporations, a significant opportunity for the growth can also be found in the development of small and medium enterprises, which need advice and financing in order to boost investments.

In a very dynamic and competitive environment, banks have to find their own way to stand out, to adjust and to be quick at responding to clients’ needs A world trend that is equally relevant on the domestic market is digitisation. The creation of the Fintech market is imposing the priority of technological development on banks at the global and local levels. In 2015, Societe Generale introduced the first online branch on the Serbian market, providing clients with one more channel for communication and doing business with the bank at a time and place most suitable for them. It is certain that the further development of e-banking and e-business will drive the banking sector, bringing new solutions in this area. ■

CLAUDIO CESARIO

CEO OF UNICREDIT BANK SERBIA

 The issue of non-performing loans (NPLs) is not an exclusively Serbian problem, but rather one that most other countries are also facing. Despite the continuation of this negative trend, most banks in Serbia, thanks to their high level of capitalisation, are capable of coping with this problem

hen it comes to the banking industry, the Capital Adequacy Ratio in

W the country is over 20 per cent, thanks to the prudential policy of the

local regulator. Nevertheless, the level of non-performing loans is one of the main challenges banks in the country will continue to face. On the other hand, the high level of NPLs is the consequence of a combination of causes, starting with macroeconomic conditions, efficiency and the effectiveness of the legal framework, to market trends, as proven by the example of the real estate market. There is no universal solution for such a complex issue that would be based on one concrete measure. In accordance with that, the process of finding a solution to this problem will require time; time in which it is necessary to introduce numerous measures simultaneously. When I say measures, I am thinking about changes to the current legal framework, aimed at reducing the time for out-of-court and in-court settlements, granting greater protection for creditors and also attracting international players specialised in distressed asset management. In this regard, we support the Strategy for Resolving NPLs, which includes two action plans – one form the government and one from the National Bank of Serbia. To conclude, there are two key principles when it comes to resolving NPLs: the model has to be based on market rules; it has to contribute to creating systemic and sustainable overall business conditions in the country. When it comes to the level of NPLs at UniCredit Bank, thanks to a comprehensive set of measures and good risk management, we succeeded in keeping it under control, at a level below the market average, while maintaining the high quality of our loan portfolio. ■

SUBJECT: EU INTEGRATION, RISKS AND BANKING RATES

Start of EU Negotiations Strengthens Trust  The opening of chapters in membership negotiations with the European Union represents an important political recognition of Serbia, and with this confidence in the institutional environment is enhanced in the eyes of investors n the other side of this equati-

O on, the mere formal opening of

negotiations cannot be enough to significantly reduce the perception of risk that would in turn lead to a reduction in the measuring of risks in areas such as CDSs (credit default SLAVKO CARIĆ swaps), the difference in yields PRESIDENT OF THE EXECUTIVE between Serbian and, for example, BOARD OF ERSTE BANK “risk-free” German bonds (spread) and interest rates/yields that investors demand when buying Serbian bonds. It is difficult to compare the situation in which Serbia currently finds itself to the situation that other countries found themselves in at the time

when they joined the EU, because these countries (except Croatia) opened negotiation chapters and joined the Union at a time of positive economic relations in Europe and worldwide. As such, it is difficult to view in isolation the current effects related to EU accession and the then favourable developments on international financial markets. However, provided the European Commission’s reports on the progress of negotiations are positive, provided institutional changes begin to be reflected through the improvement of internationally comparable indicators, such as World Governance Indicators, the Corruption Perception Index etc., I believe rating agencies will adjust their estimates and expectations for Serbia, which could lead to improvements in risk perception in the medium term and consequently lead to a drop in interest rates, of course, with the additional assumption that the government continues to lead a responsible fiscal policy. ■ JANUARY

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SUBJECT: PRIVATISATION AND THE CORPORATISATION OF STATE-OWNED ENTERPRISES

Important Step in Bringing Order to the Market  The Foreign Investors Council considers the accelerating of important structural reforms, especially the privatisation and corporatisation of state-owned enterprises, as priorities going forward e believe that the privatisation

W process should not be viewed only as means for the state to generate revenue and reduce expenditure, but also as a fundamentally important step in bringing order to the market, OVE FREDHEIM introducing a level playing field and PRESIDENT OF THE FOREIGN enabling the efficient utilisation of reINVESTORS COUNCIL AND AND CEO OF TELENOR SERBIA sources. That is why we at the FIC advocate, on the structural front, for the Government to exert stronger efforts in order to finalise the privatisation and corporatisation of state-owned enterprises trapped in poor-performing socially- and state-owned companies. In the long run, postponing privatisation and corporatisation processes could create a competitive imparity in Serbia. In parallel, these are also conditions that Serbia will have to meet in the EU accession process. We are aware of recent developments and expect further progress in this regard in 2016. It is also positive that there are still investors, including those who are

FIC members, who are interested in privatisation. If you look at the privatisation portfolio of socially-owned and state-owned companies, they do not all have the same level of attractiveness. For some of them, insolvency might be the only way to move forward. From an FIC perspective, and based on our experience, even though insolvency is often seen as a dead-end in Serbia, that is not always true. It can be cured which, if administered, can help companies get back on their feet. We understand that the government is facing challenges in execution and deem it as positive that the World Bank is providing expert support to overcome these challenges. With all this in mind, it is encouraging that the current Serbian Government has expressed its commitment to finalise this process. ■

From an FIC perspective, and based on our experience, even though insolvency is often seen as a deadend in Serbia, that is not always true

SUBJECT: SERBIAN POLICY TOWARD LONG TERM INVESTORS

Essential to Improving Business Environment  The key factors to improve the business environment in Serbia are: the implementation of fiscal consolidation, law enforcement, continued harmonisation with EU acquis and the cutting of red tape hindering business

he government is on the right

T track because progress has been made in labour legislation, consumer protection, regulations regarDEJAN TURK ding the issuing of building permits DIRECTOR, CEO VIP MOBILE AND SI.MOBIL and the like. However, it is essential to continue implementing reforms in order to establish predictable conditions for doing business. There are still many administrative obstacles and levies that overburden the private sector with unnecessary costs and reduce the competitiveness of the economy, while there is also uneven application of regulations and laws. An additional burden is the growth of the exchange rate, given that the euro is dominant to a significant extent when it comes to the part related to the costs and outgoings that we are investing in imported equipment and devices. Given that 2016 will also be a challenging year, particularly in terms of creating a new regulatory framework in light of the adoption of the new Law on Electronic Communications, we also expect the government to provide full support to the telecommunications sector. The state has this year organised

the sale of radio-frequency bands to mobile operators on 1800 MHz and 800 MHz, following completion of the digitisation process. Thus we will quickly introduce and expand the 4G mobile signal and broadband internet in urban and rural areas, which will contribute to developing the competitiveness of the whole country. From sales of these frequencies alone, the budget was increased by more than 120 million euros. Vip has this year alone invested as much as 60 million euros in the development and expansion of the network to all technologies, including amounts for the purchase of the aforementioned frequencies. If the ICT industry has been recognised as the major factor driving the Serbian economy, with participation of around 4.5% in the country’s GDP, it would then be expected for the state to provide more support to investment and thereby speed up the country’s exit from recession. Larger investment inflows will occur already during 2016, provided the Serbian government continues with even more determination to implement the declared reforms and establish a stable macroeconomic framework within which entrepreneurs will be able to operate normally and have a basis to achieve returns on investment and further develop their companies. ■

Given that 2016 will also be a challenging year, particularly in terms of creating a new regulatory framework in light of the adoption of the new Law on Electronic Communications, we also expect the government to provide full support to the telecommunications sector

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SUBJECT: FUTURE OF TELECOMMUNICATION SECTOR

On the Wings of the Internet

PREDRAG ĆULIBRK

GENERAL DIRECTOR, TELEKOM SRBIJA

 In a sector that offers many growth opportunities – due to users being hungry to consume the internet - Telekom Srbija continues investing in mobile infrastructure, but also the fixed line network, in order to provide room for the boom of new technologies

f a total of 7.3 billion mobile subscribers, more than three billion

O have smart phones and their number is growing at an annual rate higher than 10 per cent. The number of users of fourth generation mobile networks exceeds 800 million and will grow at an annual rate of 25 per cent. Total mobile data traffic is growing at an annual rate of about 50 per cent and total fixed broadband traffic is growing at a rate of about 20 per cent per year. When we consider all of this data, it is quite clear where the potential lies and what the expectations are of operators worldwide. Providing for the greater flow of mobile and fixed broadband traffic, in order to satisfy users’ hunger for consumption of the internet, is our most important mission. In this regard, Telekom Srbija will continue to invest even more strongly in mobile infrastructure, especially in 4G technology, but no less in the modernisation and improvement of our fixed line network, in order to enable new technologies to provide higher flow rates.

On the basis of the infrastructure we possess, and with the convergence of traditional and internet-based services, we see a great opportunity to improve all of our operational performances On the basis of infrastructure and with the convergence of traditional and internet-based services, we see a great opportunity to improve all of our operational performances. At Telekom Srbija we are deeply aware of the global challenges that are evident in our industry, and thus we will also focus our development on Cloud and ICT services, M2M concepts, mobile financial services and other services. This also implies the transformation of our business in a process that is now often called “digital transformation”, which we have already launched. There is no doubt that our sector faces big challenges that are associated with the general economic and regulatory conditions that dictate the level of our investment and development. We at Telekom Srbija are extremely encouraged by the latest results, but also the forecasts, primarily of the IMF and the World Bank, when it comes to further GDP growth. Only the growth and development of Serbia can ensure the growth and development of our sector. We offer true support and believe that the Government will persevere in its reform course, which is the only guarantee for the development of the entire business community, and our industry within it. ■ JANUARY

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SUBJECT: WORKING CONDITIONS IN THE PHARMACEUTICAL SECTOR IN 2016

Find a “Cure” for the Pharmaceutical Industry

 Although as the top man at Hemofarm, the leader in the domestic pharmaceutical industry, I can be extremely satisfied with the results achieved, I also belong among those people who want a lot of things from 2015 to never happen again s a realistic man, I know that

A 2016 will be filled with challenges for humanity, for the state, but also for each individual. However, I remain an optimist. We all have to restore positive values, work, responsiRONALD SEELIGER bility and humanity. It would be good CEO, HEMOFARM for that to be a “New Year’s resolution”, something to which we will all commit ourselves. I am convinced that we at Hemofarm will prove that we believe in that and that we will be a good example to others. We will confront challenges in 2016 by contributing to the health of the nation and the healthcare system, making new investments, opening new production facilities, improving quality and expanding our palate of products, as well as our increasingly significant philanthropic work. I’ll be proud to make an account of all of these items at the end of the year. The opening of chapters in EU accession talks shows that everything can be done when you are really dedicated to something. I congratulate you on that, but I hope there will be a willingness to work with significantly more commitment in many areas. The situation in the health sector, one of the most important sectors, will have to be fixed. Serbia has again found itself at the bottom of the European league tables, and in one of the most important indices – the index of investments in medicine – the country takes very last place. Thus the Sta-

te must work without delay to find a cure for medicines, and that means primarily increasing funding for the area of the pharmaceutical industry, followed by the implementation of a package of measures that will contribute to the recovery of the health sector. This relates to some domestic manufacturers of medications not having the appropriate status, regulatory standards have not yet been brought to the level of international and European standards, as is the case with the list of products that can be bought without a prescription. There should be no further lowering of the price of medicines, because this seriously threatens the future of the pharmaceutical industry in Serbia. Administrative procedures are still complicated, non-transparent and slow. It is essential to have faster and more efficient registration of drugs in order to enable the Serbian market to offer the most modern drugs and, thus, the highest quality treatment. We have highlighted these and other issues in dialogue with the state and we hope sincerely that this dialogue will be even more intense and higher quality, because that’s a way to reach serious and substantial changes. I would like that when people wish each other best wishes and good health at midnight on New Year’s eve, those who the situation in the healthcare and pharmaceutical sector in Serbia is dependent on are aware that Father Christmas is wonderful magic, but everything else still depends on all of us. For its part, Hemofarm will do everything in 2016 to clean its face and wish people ALL THE BEST. ■

Regulatory standards have not yet been brought to the level of international and European standards

SUBJECT: TAX INCENTIVES AND GROWTH OF INSURANCE SECTOR

Tax Incentives Necessary for Life Insurance  Insurance companies in Serbia have been trying for some time now to reach agreement with the state in terms of tax incentives for life insurance, which would motivate the population to invest in this type of long-term savings option iener Städtische Osiguranje is

W one of the initiators of the proposal for the government to pass measures that would regulate tax incentives for life insurance and our experts play an active role in the professional associations and taskforZORAN BLAGOJEVIĆ CHAIRMAN OF THE EXECUTIVE ces dealing with issues that concern BOARD AT WIENER STÄDTISCHE the overall insurance market. So far, OSIGURANJE no understanding has been shown for these needs and no concrete results have been achieved, as you probably know. It is clear that the state has refrained from passing these measures because anyone faced with a budget deficit would be very reluctant to reduce taxes. However, this is justified only if you have a short-term view of the problem. Tax reform is something that the state authorities should seriously consider, because everybody would benefit from tax incentives on life insurance premiums – the population, insurance companies and the state – and the benefits would be multifaceted. As a result, in the future, the pressure on 20 |

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state funds would subside, because citizens would have additional income when they retire. Also, we should not forget that insurance companies are large capacity institutional investors. The aforementioned measures would increase the volume of the insurance business, which means that the entire insurance sector would be a more active participant in the process of purchasing state bonds and providing affordable loans to the state for funding infrastructure projects. In turn, such projects would boost employment and the state’s tax revenue. Tax incentives would not mean less state revenue; rather, state revenue would increase in a business environment that would be far more favourable.

Tax incentives would not mean less state revenue; rather, state revenue would increase in a business environment that would be far more favourable

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INTERVIEW

Intelligent Systems Now

Photo by mojafirma.rs

CONNECT THE WORLD DEJAN DRAMIĆANIN CEO AT BITGEAR WIRELESS DESIGN SERVICES

In the future, we will technologically base ourselves on the latest technologies related to the “Internet of Things”, with a greater focus on industrial applications. Bitgear Wireless Design Services is one of the fastest growing companies in Central and Eastern Europe

Dramićanin, founder and CEO of Bitgear Wireless Design Services, speaking to CorD.

■ For starters, how would you briefly explain to our readers what Bitgear Wireless Design Services does?

igh technology services, smart home systems, wireless digital communications, neuro marketing, wearable technology in sport, tele-care and tele-health, laser and ultrasound applications in industry, precision agriculture, black boxes for cars, devices for taking care of the elderly … these are just some of the innovative products developed by this company. “After six years leading a team in a company from Belgrade that has a base in California and deals with top projects in the field of digital telecommunications, I decided to start working alone. It was not easy, because we did not have enough references, but we progressed step by step. Over time, we began to assert ourselves with our quality, which allowed clients to start recognising us as a company that has superior expertise and practical knowledge,” says Dejan 22 |

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- Bitgear provides high-tech research and development services, as well as the development and marketing of intellectual property. Our foundations are our excellent knowledge of the most modern electronics, digital telecommunications and signal processing, technologies based on inertial motion sensors, as well as web software. In short, we deal with intelligent systems for an interoperable and sophisticated world. ■ In the current business environment it is not easy to launch and succeed in establishing a successful company, especially when it comes to young entrepreneurs. How did the rise and growth of your company progress?

- After six years leading a team in a company from Belgrade that has a base in California and deals with top projects in the field of digital telecommunications, I decided to start working alone. I would immediately mention that at that moment I was an accomplished expert in my field, which I consider as being a precondition

for engaging in high-tech entrepreneurship. After two years working as a consultant, I founded Bitgear in 2007, because the scope of work had expanded, and I was joined by my friends with whom I already worked and who are not only skilled experts in their fields, but also wonderful people. We moved into the Business Technology Incubator and thus it all began. It was not easy, because we did not have enough references, but we progressed step by step. Over time, we began to assert ourselves with our quality, which allowed clients to start recognising us as a company that has superior expertise and practical knowledge. Today our clients include the world’s largest companies, including international corporations from the Fortune 500 list, as well as well-known technology start-ups. ■ What are your main products and projects, and how do you attract customers?

“car sharing” system, which enables users to book a car for a short period of time and unlock it using their mobile phone. We offer our clients and partners clearly defined and proven solutions for their technological problems and help them raise their working performance to the next level. We offer successful start-ups the possibility to obtain superior engineering in the product development phase, enabling them to focus on business development. We offer large companies specialised knowhow, as well as the opportunity to use some of our innovations under license. ■ Which of your innovative projects and products would you highlight and what characterises them?

- It’s hard for me to choose. We have, for example, been working for some time on a device intended for car insurance companies. We have made an electronic box that can be installed in

- Given the (un)availability of financing in our country, we conceived Bitgear as a company that deals with high-tech services, so we gradually built up the opportunity to finance and implement our ideas and protect them through the intellectual property system. We have experience in the broadest range of applications, which includes smart home systems, wireless digital communications, neuro marketing, wearable technology in sport, tele-care and cars and which analyses the vehicle’s parameters, estimatOver time, we began tele-health, laser and uling the degree of risk of a specific driver. Insurance comto assert ourselves trasound applications in panies are thereby able to determine insurance premiums with our quality, which industry, precision agrifor each person based on their real driving style. In the event of an accident, the system immediately culture, as well as many allowed clients to provides information essential to the efficient response of other applications. start recognising us as emergency services, and also captures the car’s trajectory We have a special dea company that has and the events immediately before and after the accident. partment that deals with superior expertise and Another interesting example is a wearable device for doso-called “Machine-toMachine” technologies mestic livestock animals, which is mounted on the tail of practical knowledge. that are based on conToday our clients include an animal and, on the basis of tail movement, determines the stage at which calving will occur. necting devices using the the world’s largest The device sends an SMS with a short description of any infrastructure of mobile companies significant events, enabling the farmer to react in a timely operators for data transmanner in the case of problems, without having to confer purposes. One of our systems that we license stantly supervise and visit animals. This is especially effecis based on “wearable” technology that enables an interactive retive when animals are in a remote location. lationship with the elderly, children and pets. In this way, the entire family can have better security and healthier habits. The other ■ How difficult is it to predict how the market will react to innovasystem connects cars to the grid and provides a platform to imtion and which innovations will interest the market? plement many interesting solutions. One of these solutions is the - The market always responds positively to interesting innovaJANUARY

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tions. However, it is very difficult to progress from an idea that seems good to the realisation of an innovation that has clear value and brings advancement in some domain. As we are dealing with electronics, we are very interested in the so-called “Internet of Things” concept, which is based on networking physical objects. First computers were networked, then mobile devices, and now the idea is to network all physical objects, which enables the direct integration of the physical world with computer systems. This technology creates enormous potential for innovations that will create new markets and new value. ■ How tough is it to find experts in Serbia who want to deal with electronics?

- It’s pretty difficult, but the situation is gradually changing because the “Internet of Things” is bringing back electronics in a big way. The basis of any good company is a team. We are lucky that Bitgear attracts phenomenal young people with exceptional knowledge and a desire to deal with innovation in such a demanding area as electronics.

to give a lecture of the “Internet of Beautiful” and I really found it fun.

■ When it comes to start-ups in Serbia, what is your opinion about the current situation and future development?

- When it comes to tech start-ups, I think it’s most important to understand that our environment is specific and special rules apply. Our entire start-up scene is financed annually like a fifth of a mediocre American innovative start-up. However, there is plenty of room in services, because there is a general deficit of IT engineers worldwide. It is probably best to get into technological entrepreneurship through the provision of quality services, then to start with innovation after gaining business experience. This is particularly evident when it comes to the design and implementation of hardware, because that is a delicate and demanding process. ■ What is your general impression of the possibilities and opportunities for IT start-ups in Serbia, especially com-

■ How can issues of intellectual property be resolved in Serbia, but also in doing business abroad?

- As it is our job to develop our own intellectual property, it is essential that we understand this domain. Generally speaking, intellectual property is always a touchy subject, because it is not always clear what is basic and what represents an upgrade. We really deal with the issue of protection of intellectual property on a case by case basis. ■ You have been added to the list of the 50 fastest-growing technology companies in Central Europe and de-

clared the best innovator. How important is such recognition for the further development of the company?

pared to other countries?

The market always responds positively to interesting innovations. However, it is very difficult to progress from an idea that seems good to the realisation of an innovation that has clear value and brings advancement in some domain

- This kind of recognition is important to us, because it gives us credibility in the eyes of our foreign customers and profiles us as a reliable partner in innovation. This is extremely important for the profile of a company like ours, while there is also the satisfaction of our working method succeeding.

■ You very often participate in international events. What are your experiences like and which event marked 2015?

- Frankly, I most liked one of the domestic events. That was the Resonate Festival in Belgrade, which has an idea of inspiring debate on the position of technology in art and culture. I also had the opportunity 24 |

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- If the other country is the United States, a comparison is almost impossible to make, because MIT alone has a research budget of 700 million dollars a year. Locally speaking, I think the business environment is not so bad that we could complain, but it is true that it is not really well adapted to high technology companies. Serbia has its advantages that are characteristic for countries on the periphery of the EU, and it is also an advantage that a large number of our professionals work in companies around the world, and thus it is easier to achieve good contacts in the right places. ■ What are your future development plans and what development trends will you follow in which direction?

- After huge growth in the first five years, it was necessary to objectively assess our strengths and weaknesses, and introduce processes. That was a voluminous job that was essential in order for the company to continue to growing at a slow but steady pace in the future. Our goal in the next phase of development is to grow enough to be a regional pillar of support for major partners. In the future, we will technologically base ourselves on the latest technologies related to the “Internet of Things”, with a greater focus on industrial applications. ■

Residential buildings

Office, Industrial and Commercial

Blok 63-Construction started

Blok 43

Building On Time Every Time

Aviv park, Zrenjanin

General Contractor “turn-key” construction Urban Planing & Designing

Zemun park

Permits Support Project Management Development & Investments

Fresenius Medical Care, Vršac

With a solid foundation of experienced architects, designers and engineers, Energogroup has delivered 950,000m2 and successfully completed more than 140 commercial, industrial and residential projects, supporting a full spectrum of turnkey solutions for clients and investors.

Energogroup d.o.o. Neznanog junaka 7, 11000 Belgrade Tel: + 381 (0) 11 71 55 000 e-mail:office@energogroup.rs www.energogroup.rs J A N U A R Y

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SURVEY

COMMERCIAL DEPARTMENT OF THE AUSTRIAN EMBASSY: DOING BUSINESS IN SERBIA SURVEY 2015

Good, But Could

BE BETTER!

uring the course of four weeks, 581 representatives of Austrian subsidiary companies in Serbia participated in an anonymous online survey, with the results based on the answers provided by 102 companies – a total of 17.56% of all companies ERIKA TEOMAN BRENNER, Commercial Counsellor at that were sent the survey. the Austrian Embassy Over half of the companies (53.8%) that agreed to participate in the survey classified themselves as small or micro-enterprises, employing between one and 49 workers. Some 15.4% of the surveyed companies employ between 50 and 99 people, while 30.8% have over 100 employees. The largest number of companies are engaged in commerce (33%), followed by industry (25%) and services & consulting (14%).

ECONOMIC SITUATION AND PROSPECTS

For the fourth consecutive year, the Commercial Department of the Austrian Embassy in Belgrade has conducted its doing business in Serbia survey ethics, currency stability and a functional tax system. However, it is these very factors – that are considered especially important – which survey participants were least satisfied with and, as such, they want the initiated reforms to be intensified. The only factor that is both considered important and received good reviews is currency stability. As is tradition, companies are generally satisfied with the quality and availability of manpower and local suppliers in Serbia.

EXPECTATIONS OF THE SERBIAN GOVERNMENT

The surveyed companies have great expectations of the Serbian Government. A large proportion of them (20%) expect more legal certainty and a stronger fight against corruption. Additionally, 14% of respondents are hoping to see acceleration of the EU integration process, while 16.8% are hoping for a stable currency and stable conditions for doing business. Reducing bureaucracy and increasing transparency of tax regulations are the top wishes of many surveyed companies. Although overall business conditions are considered vital, 38% of surveyed companies say that their industrial sectors are developing and that they expect even better conditions.

RESULTS RELATIVE TO 2014

Over half of the surveyed companies (54%) still view the current While the general economic situation in Serbia is still considered economic situation in Serbia as “complex” and “problematic”. This, howdifficult, survey participants say that the Serbian economy, albeit still at a low level, has improved slightly in 2015 compared to the ever, is a substantial improvement on last year’s results, when this same previous year. In 2014, 25% of respondents were satisfied with the percentage stood at 72.1%. economic situation in Serbia, but in 2015 that percentage increased The views of the surveyed companies differed when it comes to to 45. Moreover, the level of satisfaction with respondents’ own comexpectations of Serbia’s economic prospects in 2016. Some 42.2% of survey participants say that not much panies has increased. In 2014, some will change in 2016 relative to 2015, 12% of surveyed companies had a negawhile 41.4% are optimistic about the tive opinion about the situation in their According to surveyed future and expect upward trends in own companies, while this percentage companies, the prevention of 2016. dropped to seven in 2015. A total of 11.8% companies classify In terms of turnover, employee numcorruption, improving payment their own businesses as “unsatisfacbers and investment levels, many compaethics, maintaining currency tory”, while over a third say that they nies have recorded notable growth. Over stability and a functional are very satisfied with their business 70% have increased their turnover in operations. 2015 compared to 2014, while a third of tax system are all of utmost In terms of their own economic surveyed companies have increased their importance branches, companies are moderately number of employees and investments optimistic about 2016: 46% think that (employees – 36%, investments – 31%). there will be no significant changes in Factors related to the Serbian mar2016, while 40% are relying on growth trends next year. ket received much more favourable ratings than last year. Apart from factors like the availability and quality of the workforce, which have remained constant, all other factors received better ratings than in ECONOMIC CONDITIONS IN SERBIA 2014. However, we should note that many objections relate to the When it comes to the economic conditions in Serbia, 40% of prevention of corruption, improving payment ethics and deadlines respondent companies think that there is still a great need for the for permit issuance. situation to be improved, while 43% insist they are satisfied (with All in all, the survey shows an increased level of satisfaction among the current economic conditions). According to surveyed firms, arsubsidiaries of Austrian companies that are doing business in Serbia, eas that are of utmost importance in terms of improving the current despite the fact that the general situation is still deemed problematic. ■ situation include the prevention of corruption, advancing payment 26 |

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JANUARY BUSINESS LEADER’S MEETING POINT

PAGE 28

PAGE 29

NENAD ĐURĐEVIĆ Regional Manager, Ball Packaging Europe

MILAN VUJOVIĆ Director of Corporate Marketing at Samsung

How We Won With the Can

User-Friendly Devices

PAGE 32

PAGE 33

MIRKO BUTULIJA President of the Automobile and Motorcycle Association of Serbia

BRANIMIR MIJAILOVIĆ Director of Energotehnika – Južna Bačka

Symbol of Safety and Security

No Leadership Position Without Quality

PAGE 36

PAGE 37

GORAN RADOVIC Managing Director at Vossloh Cogifer - Vossloh MIN Skretnice

NELA CERO Commercial Sector Head at PPT Inženjering a.d. Belgrade

Small Switch, Big Success

Successful Combination of Knowhow and Tradition

CORPORATE

NENAD ĐURĐEVIĆ, REGIONAL MANAGER, BALL PACKAGING EUROPE

How We Won With the Can Since establishing operations ten years ago, Ball Serbia has been a strong performer, both as an exporter and an intercompany, as one of Ball’s leading operations in Europe

all Packaging is celebrating ten years of successful operations in Serbia. In this interview for CorD, Ball Packaging Europe Regional Manager Nenad Đurđević summarises achievements to date and talks about new challenges on the market.

■ How much success how you achieve with your beverage cans in the SEE region and what are your future targets? - Just ten years ago, drinks can packaging was not so popular in SEE. At that time, beverage producers in SEE either opted for glass or PET packaging, while they were neither aware of, nor believed in, the potential of cans. Today, ten years after the launch of Ball Serbia, the market looks different. In 2014, BPE sold over 1.08 million cans, which accounted for 31 per cent of the drinks can market in SEE, which is estimated at 3.46 billion cans. This year alone, Ball Serbia’s regional sales are projected to grow by 40 per cent. Half of our current customers are made up of small and medium-sized companies, with the other half comprising key accounts. Ball’s success has been made possible through innovation and in-depth knowledge of the beverage business.

■ How does the company intend to broaden its portfolio in terms of acquisitions? - In a changing economic environment, we are faced with constant ■ Which of the major achievements made by Ball Packaging in the consolidation, especially in the brewing industry. Ball Corporation last 10 years would you single out as being the most important? is always trying to align with our customers’ changing footprint - In celebrating 10 years of operations in Serbia, Ball Packaging Europe and earlier this year Ball Corporation agreed to buy Rexam Plc for Belgrade proudly looks back at the successful path that lies behind about 4.4 billion pounds ($6.8 billion) in cash and stock, thereus. From the moment of the initial inby creating the world’s biggest manvestment in 2004 (the OECD ranked it ufacturer of food and beverage cans. Ball’s success has been made as the main Greenfield investment in The deal is conditional on European possible through innovation Southeast Europe), the first commercial Union, U.S. and Brazilian regulators. and in-depth knowledge of the We expect the final outcome in the cans were already being produced by June 2005; by 2007 all operational perfirst half of 2016. The combined combeverage business formance targets had been met or expany could have around 22,500 emceeded – with European “benchmark” performances in many areas; ployees and generate $15 billion in sales, creating $300 million in in 2011 came installation of second can line, by 2012 we had achieved annual cost savings. annual production of a billion and in 2014 the production line was converted to produce speciality cans. ■ In which CSR areas has Ball Packaging contributed the most? We have the capacity to produce over 1.5 billion beverage cans - Ball took its role in the community responsibly from the first through two high-speed production lines, with 24/7 operations year – and we still do. and 83 per cent of output exported, amounting to over 14,000 We are helping to raise awareness about recycling, through our cross-border vehicle movements annually. In 2014 we supplied 71 Recan Foundation and as a member of the Sekopak Association. different customers in 21 countries. All of this has been enabled In cooperation with EKO ART and the Čarapa Children’s Theatre, with an overall investment of approximately €100 million. Ball Serbia established the project “LIMENKICA – ULAZNICA” Since the establishment of operations, Ball Serbia has been a “POZORIŠTE KOJE RECIKLIRA” in 2009. The aim of this project is strong performer both as an exporter (always ranked among the to raise awareness among pre-school and school children about top 15) and an intercompany, as one of Ball’s leading operations in the importance of environmental protection, the appropriate Europe (ranked 1st or 2nd by KPI). disposal of waste and recycling, through the continuous performance of theatre plays. ■ 28 |

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CORPORATE

MILAN VUJOVIĆ, DIRECTOR OF CORPORATE MARKETING AT SAMSUNG

User-Friendly Devices Samsung records good results in all product categories on the Serbian market because it puts the user experience first

n the technology industry, regardless of the country in which one operates, great attention must be paid to one’s customers, both existing and future. We set aside 40 million dollars a day on the research and development of products, in order for us to understand what people want and what they need.

attention must be paid to one’s customers, both existing and future. We set aside 40 million dollars a day on the research and development of products, in order for us to understand what people want and what they need. Every country’s market is different, because the culture, way of life, thinking and even needs of customers are different. When we create devices, we never stick to the approach that something one person likes will suit everyone. Each country or region has a distinct culture that impacts on the use of technology. It is precisely our cultural awareness that enables us to direct the global innovation of our company towards the requirements of the individual, thereby satisfying consumers around the world. In Serbia people follow trends in technology, are computer literate and seek applianc-

gate the entire database of Tesla’s original manuscripts, notes and documents. We are continuing cooperation with the organising of the Tesla educational road show, which will visit 17 cities across Serbia with the aim of familiarising as many children as possible with the life and work of this famous scientist. Lectures will be organised in Samsung’s mobile smart classrooms, where, along with demonstrations of some of Tesla’s experiments, primary school pupils will discover that without this great scientist we would not have many of today’s technological innovations.

■ In which areas of CSR is Samsung ■ In which areas are Samsung products most active? recognised as a leading brand in Serbia? - Wherever we operate, we target the - Samsung records good results in all prodsocial problems confronting these counuct categories on the Serbian market. And tries and try to solve them with here, like elsewhere in the world, the help of our technology, prodwe are most renowned for our moThe Tesla educational road show, ucts and expertise. We most ofbile phones and televisions, but the with Samsung smart devices, will ten deal with the key issues of visibility of our home devices, proeducation, employment, healthcessors or memory chips is also evvisit 17 cities across Serbia with care and environmental protecer increasing. However, I always like the aim of familiarising as many tion. When it comes to Serbia, we to say that Samsung is more than children as possible with the life are most active in the fields of edjust an ICT company, we are much and work of this famous scientist ucation and unemployment. Here more than just a company that we have devised two educational makes amazing smart devices. It is projects – digital classrooms and laboes that fit their needs. That’s why we offer more important to us why and how people ratories for creating applications, and, them a wide range of products – from very use our products, and what their experience for the unemployed, we have developed affordable devices to premium models. with them is like. The production categories the Digital Academy project. We want in which we are a leading brand is not so imto teach our children and teaching per■ Please tell me more about Samsung’s portant, but rather that we design and desonnel smartly and improve their learncooperation with Belgrade’s Nikola velop the kind of devices that will improve ing through the use of modern technolTesla Museum. and simplify the daily lives of users, offering ogy, while at the same time ensuring - Cooperation with the Nikola Tesla them a completely different experience. they acquire the digital skills that are esMuseum began with the opening of the sential in today’s IT world. On the other Research Centre that we equipped with the ■ What are the most important charachand, the Digital Academy provides peomost advanced equipment and technoloteristics of the Serbian market in terms ple with professional education, where gy for faster and easier access to the scienof demand and monitoring technologthey can learn basic IT and engineering tific materials of this accomplished scienical trends? skills, thereby increasing their employtist in digital form. Students and research- In the technology industry, regardless of ment opportunities. ■ ers from around the world can now navithe country in which one operates, great JANUARY

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BUDGET

LOCAL

NEWS

“The 2016 budget is based on real projections, with next year’s GDP growth at 1.75 per cent, which is more than a two-fold increase relative to this year.”— DUŠAN VUJOVIĆ, Serbian Finance Minister

NELT

AMCHAM

Nelt Unveils Bijeljina Distribution Centre

MILOS JELIĆ, Executive Director, Nelt Group

With representatives of government, the business community and the media in attendance, Nelt officially opened its new distribution centre in Bijeljina, BosniaHerzegovina. With this investment,

Electronic Building Permits as of 1st January

worth €1 million, Nelt completed a six-year investment cycle that began with the opening of its distribution centres in Sarajevo and Banja Luka, with the aim of providing infrastructure for the smooth execution of retail distribution operations for the B-H market. “To date, Nelt has invested 15 million KM (€ 7.5million) in the B-H market, providing over 250 jobs and contributing to the development of young and promising trainees who are now the carriers of Nelt’s business in B-H,” said Milos Jelić, executive director of the Nelt Group . This business year will see the company record a net income of approximately € 100 million, which – in terms of generated net income – places the company among the four leading distributors of consumer goods in Bosnia-Herzegovina.

A conference entitled “Building permits - unified procedures and planning documents” was organised by the American Chamber of Commerce, the Serbian Ministry of Construction, Transport and Infrastructure, USAID BEP and NALED. “Serbia’s GDP grew 2.2 per cent in the third quarter, with the greatest contribution coming from construction, with growth of 18.3%. The number of permits issued is up by 27 per cent and the value of construction works is a fifth higher than in 2014. These results will be even better when building permits are issued electronically,” said Zorana Mihajlović, Deputy Prime Minister and Minister of Construction, Transport and Infrastructure. “By March 2016 more than 3,000 officials, at the state and local levels, will be trained in the issuance of electronic building permits,” announced Jelena Bojović, Director of the NALED Regulatory Reform Team.

SOCIETE GENERALE BANK

5 ITEMS

First Online Branch in Serbia Societe General Bank has introduced an online branch within upgraded e-banking services. In addition to traditional branches where clients can receive more complex banking services, online outlets allow not only applications for requests, but also the implementation of various banking products. Within these digital outlets, clients can get video chat advice from bank personnel, both during working hours and at other times, including weekends. In order for customers to make use of some of these banking products via the internet, the user is required by law to have a qualified digital certificate i.e. a digital personal signature. Societe Generale Bank will refund the cost of the purchase of the digital certificate to all clients who order this certificate by the end of January 2016 and successfully complete a request for an online cash dinar loan.

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ON EVERY EMPLOYEE’S HOLIDAY WISH LIST

BELGRADE FAIR

New Year's Festival at The Fair The Belgrade Fair is to host the traditional New Year’s Fair, featuring a large number of entertaining events for hundreds of thousands of visitors of all ages. The New Year’s Fair consist of a series of pleasant surprises that the Belgrade Fair has been organising for the last few decades, always starting prior to New Year and ending in February. This year’s event has been created jointly by the City of Belgrade, the Tourist Organisation of Belgrade, the Belgrade Fair, the Children’s Culture Centre of Belgrade and the Centre of Belgrade Festivals (CEBEF). This collaboration aims to create a synergy of content that suits the 21st century visitor by popularising positive value systems in society and traditional forms of entertainment, but giving them a new dimension. The Belgrade New Year’s Festival started in December and will end on 10th February, with the closing of the Ice Atrium.

If employees developed a collective wish list, what would be on it? According to recent survey a few common needs rise to the top:

1. Opportunities to give feedback– Create an environment where employees feel safe to have a candid conversation with you. 2. Less BS and more humanity– Enough beating-around-the-bush or, even worse, “spinning” of messages. 3. Understanding of your expectations Many problems in business are caused by a lack of understanding of expectations or a misunderstanding of what’s needed and expected. 4. Empathy– Pause and imagine how employees are feeling 5. More listening– Stop talking so much. Ask for input and feedback.

FLIGHTS

DO YOU KNOW

“Once we get the approval of the regulatory authorities, we will introduce direct flights to the United States, which the region has been waiting for since 1992.”— DANE KONDIĆ, Air Serbia CEO

CHAMBER OF COMMERCE AND INDUSTRY (PKS)

First Trade Centers by the End of 2016

Placements & postings appointments@aim.rs

Kikinda, in the northern part of Vojvodina, is the biggest wintering ground of long-eared owls on the planet.

H.E. U MYO AYE

New Ambassador of the Republic of the Union of Myanmar to Serbia Mr. U Myo Aye graduated from the Defence Services Academy in 1981 and holds a master’s degree in Defence Studies from the National Defence College, Myanmar. Prior to joining the Diplomatic Corps, U Myo Aye served the Defence Services from 1977 to 2011 in various capacities, up to the rank of Brigadier General. He served as Ambassador of Myanmar to the State of Israel from September 2011 to November 2015. Born on 3rd October 1959, Ambassador U Myo Aye is a married father of two sons and one daughter.

H.E CONSTANTINOS ELIADES MARKO CADEZ, President PKS

The president of the Chamber of Commerce and Industry of Serbia (PKS) Marko Cadez announced that the PKS will open its first five or six trade centers around the world in the second half of 2016. “The idea is to establish a model similar to the one in Austria, whose efficiency is illustrated by the fact that the country was an import-oriented economy 15 years ago, while now, thanks to a reformed programme of trade representation abroad, EUR 7 out of every EUR 10 earned by the Austrian economy come from abroad,” said Marko Cadez, President of PKS.

New Cypriot Ambassador to Serbia

H.E Constantinos Eliades (60), born in Freetown, Sierra Leone, is the new ambassador of the Republic of Cyprus to Serbia. Mr Eliades graduated from the Université d’Aixen-Provence, France, earning a Bachelor’s Degree in Business Administration, followed by a Master’s Degree in Economics and Diplôme d’Etudes supérieures spécialisées in Tourism Economy. He joined the Ministry of Foreign Affairs (MFA) of the Republic of Cyprus in 1989, entering the Economic Affairs Division. From 1990 he served as Second Secretary in the Embassy of Cyprus in Belgrade and from 1993 he was 2nd Counsellor of the Embassy in Paris. From 1996 Mr Eliades served as 1st Counsellor in Moscow, and from 1999 until 2002 he served as Deputy Director, Political Affairs Division at the MFA. From 2002 he was High Commissioner of the Republic of Cyprus in Nairobi (Kenya) and Permanent Representative to UNEP and UN HABITAT. Then in 2006 he served as the Ambassador to Belgium and from January 2011 he became head of the Americas Dept. at the MFA. Mr Eliades speaks Greek, English, French, some Russian and some Serbo-Croatian. He is married to Constantia Eliades and has a daughter.

H.E. ARCHBISHOP LUCIANO SURIANI

Archbishop of Amiternum: New Apostolic Nuncio to Serbia

TELENOR

Gift For All Users - Capture

H.E. Archbishop Luciano Suriani was born in Atessa (Chieti, Italy) on 11th January 1957. He was ordained as a priest and doctor of Canon Law on 5th August 1981. Suriani entered the diplomatic service of the Holy See on 1st June 1990 and has since served at Pontifical Representative Missions in the Ivory Coast and Switzerland. From July 1995 to August 2004 he served within the Section for Relations with States of the Vatican Secretariat of State, after which he spent four years at the Apostolic Nunciature in Italy. On 22nd February 2008 he was appointed Apostolic Nuncio to Bolivia and on 24th September 2009 he was appointed the Delegate for Apostolic Nunciatures. Apart from his native Italian, Archbishop Suriani speaks Spanish, French and English.

GEORGIOS PAPANASTASIOU

New President of the Board of the Hellenic Business Association in Serbia

Telenor’s prepaid and postpaid customers have received the New Year’s gift of Capture – a digital photo storage service, as well as internet for its use over the next two years. The service brings them up to 100GB of personal space on the internet, where they can store photos and videos from their mobile phone free of charge. The Capture service is a type of digital photo and video album, which enables users to store all the photos and videos in the cloud. All stored data can be accessed easily from any device connected to the internet. Capture is activated via the My Telenor mobile applications or a web portal that redirects users to the appropriate web store. It is also possible to download directly from the Google Play Store for Android or the AppStore for iOS devices.

Georgios Papanastasiou holds a BSc in Economics from Thessaloniki’s Aristotle University and an MBA from Bentley College, U.S. He has started his career in the banking sector in 1987 as a credit assistant at the Bank of Nova Scotia, after which, in 1991, he joined ABN AMRO Bank and served as Relationship Manager and Area Commercial Manager. From the year 2000, Mr Papanastasiou continued his career at Stopanska Banka, where he held several management functions before being appointed General Manager in 2005. In 2009 he left the position of Second General Manager at Stopanska Banka, a member of the NBG group in FYROM, and joined the Alpha Bank team. He became a member of the Executive Board of Alpha Bank Srbija in April 2009, and in May that same year he took over the duties of President of the Executive Board of Alpha Bank Srbija.

ZORAN BLAGOJEVIĆ,

New President of the Executive board of Wiener Städtische osiguranje Beograd a.d.o. Zoran Blagojević will take up the position of president of the Executive board of Wiener Städtische osiguranje Beograd a.d.o. as of 27th December 2015. He succeeds Branko Krstonošić, who heads into retirement after almost four decades working in insurance. Blagojević graduated from the University of Belgrade’s Faculty of Law and spent 11 years working at three insurance companies before joining Wiener Städtische osiguranje. He started his career at this company in 2003 and in 2008 took over the position of President of the Management Board of Wiener Re a.d.o. Beograd. Four years later, in 2012, he advanced to become Executive Director at Wiener Städtische osiguranje a.d.o. Beograd. Blagojević is a married father of one daughter.

JANUARY

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INTERVIEW

MIRKO BUTULIJA, PRESIDENT OF THE AUTOMOBILE AND MOTORCYCLE ASSOCIATION OF SERBIA

Symbol of Safety and Security Tradition and security are hallmarks of AMS Osiguranje, Insurance company, while reliability is the biggest ally of this insurance company, as shown by the results of operations in 2015. In the coming year, AMS Insurance and AMSS will continue to participate in a number of campaigns aimed at increasing the safety of all road users

n 2015, AMS Insurance and AMSS achieved significant successes, says Mirko Butulija, President of the Automobile and Motorcycle Association of Serbia (AMSS).

■ What kind of results will you end this year with and which of the products of your insurance comopany were the most in demand? - Behind us is another very successful year. AMS Osiguranje, Insurance company, retained its market position and proved to be among the ranks of not only stable insurance companies, but also among the leading domestic insurance companies in our country. This year we also recorded an increase in sales of policies, particularly automobile liability insurance, which is a result of the dedicated and devoted work of employees. I would also point out that we achieved remarkable results in the implementation of property insurance within AMS Osiguranje, Insurance company, primarily through participation in public tenders, which encourages us to focus further on the development of this type of insurance.

tion of Serbia is that one country should have one representative club and, given that Kosovo is an integral part of Serbia, it cannot agree with any conflicting stance. I emphasise that the AMSS has excellent cooperation with the club from Kosovo, which is simultaneously a guarantee for our members on the territory of Kosovo, and I note that it is only through the combined actions of the two clubs that we can properly carry out the projects which we will participate in together.

■ What you will remember this year for when it comes to car and motorcycle sport in Serbia? - With the successful organisation of a large number of international and domestic competitions, AMSS showed in the past year its responsible attitude towards motor racing, giving full support to its affirmation in the country and abroad, returning it, after many years, under its own wing. I would particularly like to point out what is to us the most important part, including when we are talking about this kind of sport, and that is the education of a large number of young people who have the desire to one day find themselves as ■ What does your presence at the General Assembly of the FIA (Federation Kosovo’s request for admission into the competitors in a racing car or on motorcyInternationale de l’Automobile), mean FIA associations for mobility and sport cle. Education projects have proved to be to you? were, thanks to our efforts, postponed an excellent starting point, thus we decided - As a member of the FIA family since to finish the season with a seminar, with in the case of mobility, while the 1926, we participate actively in the prospeakers including people from various request for sport will be temporarily areas, thereby representing another way motion of FIA activities in our country, both in the field of sports and in the field approved, with the final decision to be that we can contribute to the development of this branch of sport, with particular emof mobility. At this year’s FIA conference, made two years from now held in Paris, requests were presented phasis on safety. by the two clubs from Kosovo for the admission into the FIA. Arguing, amongst other things, that the International Olympic Committee has ■ What are your plans for 2016? recognised Kosovo, the FIA administration justified the consistency of - We will try to maintain a transparent relationship with our clients, its standpoints. However, the final conclusion was partial admission, whose needs we always put first. In accordance with its long-term which is to say that our efforts led to the postponing of the request for strategy, AMS Osiguranje, Insurance company, will continue to invest in mobility, while the request for sport will be temporarily approved, with products, personnel and training, while expanding its sales network in Kosovo obliged to meet certain standards in the next two years, after line with European business trends, with the aim of constantly increaswhich a final decision will follow. The stance of the Automobile Associaing customer satisfaction. ■ 32 |

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CORPORATE BRANIMIR MIJAILOVIĆ, DIRECTOR OF ENERGOTEHNIKA – JUŽNA BAČKA

No Leadership Position Without Quality Partnership with company Velmont, and involvement in the production of energy pillars, has enabled Energotehnika - Južna Bačka to further diversify its business portfolio and consolidate its leadership position on the market

from being engaged in engineering, construction and the maintenance of power facilities, through partnership with the Valmont Company, Energotehnika – Južna Bačka is now launching production of energy pillars. Zrenjanin was a logical choice because it has a well-regulated industrial zone and previous investors were happy.

sition from thermal energy to renewable, are inevitable, there will be increasing need to hire companies like Energotehnika – Južna Bačka. The extent of this growth hinges on the pace and volume at which Serbia and the countries of the region implement the EU’s energy directives. It is very difficult to estimate the value of the regional market, but I can tell you that it is measured in the hundreds of millions, and maybe even billions, of euros. And the value of the business deals will most certainly grow.

nterprise Energotehnika - Južna Bačka is involved in several large-scale projects both with■ On which markets is Energotehnika in the country and elsewhere in planning to sell products manufactured the region. The most important of these in Zrenjanin? are designing and constructing a 10Mwe - Our main goal is to satisfy the needs of cogeneration facility called Toplana ■ What are your business plans for 2016 the Serbian market and for our products Zapad, constructing a new ash conveyand what important projects are ing pipe, reconstructing several substations of 110kV and 35kV voltage Implementing the EU’s energy you going to be involved in, both in the country and abroad? and electrical installation works on directives and transitioning - Our main goal is to maintain the level tunnels in Serbia. At the beginning from thermal energy to of quality achieved. Energotehnika – of 2016 we are starting reconstruction of the two 110kV substations in renewable energy sources will Južna Bačka is the leader in its sector Bosnia-Herzegovina. Along with this, open the regional market up to and we plan to maintain that status. The most important thermal-energy Energotehnika’s company in Germany the even bigger engagement of projects that we have been working – RSE Solutions – has been operating companies like Energotehnika on, and that we are supposed to wrap well. Energotehnika – Južna Bačka reup next year, are designing and concently started producing energy pil– Južna Backa structing the 10Mwe Toplana Zapad lars and the main goal of this business cogeneration facility and constructing to be a substitute for imports. In the next decision is to provide a substitute for ima new ash conveying pipe at Kostolac, stage, we plan to export to neighbouring ported pillars and perhaps, in due course, worth €6.5 million each. In terms of eleccountries and, if an opportunity presents export them to neighbouring countries”. trical engineering, we are currently workitself, we will try to conquer the markets ing on reconstructing several 110kV and of Southeast and Western Europe. ■ What were the key reasons to sign the 35kV substations, worth over €10 million, cooperation contract with U.S. compaas well as performing electrical installa■ Considering that concluding this conny Valmont; and what made Zrenjanin tion works on tunnels. At the beginning tract also means setting up a representstand out as a suitable location for the of 2016 we are starting reconstruction of ative office for the Balkans and Serbia, construction of the future factory? two 110kV substations, worth over €5 milcould you tell us your view of current - Our experience tells us that the most lion, in Bosnia-Herzegovina. Meanwhile, energy sector trends and the value of vulnerable companies are those operatin Germany, our company RSE Solutions the regional market in your business ing in only one service sector. Every marhas been operating solidly, mainly in the segment? ket disruption jeopardises operations. In area of design and working on low-volt- Considering the fact that changes in the order to have a stable company, it is image and industrial facilities. ■ structure of power production, i.e. the tranportant to diversify operations. Apart JANUARY

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MEDIA

REGIONAL

NEWS

“I would like to see neutral, independent media, which take difference stances, differentiated, nuanced views on various topics, and this refers to the entire region.” — JOHANNES HAHN,

Commissioner for European Neighborhood Policy and Enlargement Negotiations

Footwear firm Deichmann, global logistics company DHL and software designers Infinum were the winners of the 9th annual ‘Best Employers in Croatia in 2015’ awards. Organised by leading employment agency MojPosao, more than 3,000 employees took part in surveys, covering such things as employee loyalty, work organisation, working conditions and interpersonal relations. The title of best large employer in Croatia in 2015 went to Deichmann. Shipping company DHL International won best employer in the category of medium-sized employers and Infinum software design and development company was named the best employer in the category of small companies.

CROATIA

Best Employers in 2015

FYR MACEDONIA

Free Industrial Zones Expected to Top €1.5bln Viktor Mizo, director of the Technological Development Zones (TIRZ), announced that he expects total exports from these industrial parks to exceed €1.5 billion in 2015. The zones, built close to the major Macedonian populated centers and offering a range of subsidies and preprepared lots for construction, have drawn manufacturing investments from Germany, the United States, the United Kingdom, Belgium and a number of other countries.

“We expect that exports from the zones will be higher than our projections. December is a peculiar month, when many of the VIKTOR MIZO plants in Western Europe we produce parts for are closed, but there is a chance we end the month with over €100 million in exports, and to break through the €1.5 billion barrier for the entire year”, said Mizo.

Investment of €200mln in Railways

AGRON THAQI

Kosovo railways will undergo substantial improvement, especially one of the key rail line, from Hani Elezit to Leshak, said chairman of Kosovo railways in-

ty of trains in Kosovo. “We have signed a contract with a German consulting company for the first 60 km of the railway. This improvement will enable the increase of velocity of the existing trains. It is important that the railway provide the velocity of 120km/h on the most part of the segment”, said Thaci.

Sofia Tech Park, a stateowned high technology park, opened officially in the Bulgarian capital. “What we see is just the first step towards a much more ambitious goal - building a knowledge economy driven by aspiring entrepreneurs and innovative ideas,” said Bozhidar Lukarski economy minister at the opening nanced by the EU with a grant ceremony. The project is almost entirely fiof 83.5 million levs (€46.9 million). A further 52.1 million levs are expected to be invested in the project under the EU’s Innovations and Competitiveness operational program, the ministry added. Sofia Tech Park is designed to span 270,000 square meters, including 40,000 square meters of scientific research infrastructure in support of Bulgaria’s innovative businesses. Photo: Sofia Tech Park BULGARIA

High-tech Park Opens in Sofia

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Tarom Sees 2015 Loss at €11mln Romanian flag carrier Tarom expects to post a gross loss of 49 million lei (€10.8 million) in 2015, local media reported in December.

In June, the government approved the company’s 2015 business plan, setting a loss target of €1.8 million. “If we are not affected by the winter, we should conclude 2015 with a 49 million lei loss,” said Christian Heinzmann, Tarom’s general manager In 2014, Tarom posted a loss of €24.3 million on a turnover of €243,6 million, data from the finance ministry showed.

10 THINGS

KOSOVO

frastructure, Agron Thaci, following the signing of the second part of the total loan value of around €200 million. The investment will concentrate on the reparation of all components - superstructure and substructure, and the electrifying of the whole segment. Reparation of the railway segments will increase the veloci-

ROMANIA

TO FOCUS ON IN 2016

Take action now so 2016 gets off to a good start. Here are 10 key areas that you should focus on:

1. Review the products and services you sell and tailor your offering to appeal to changing market demands and needs 2. Review pricing structures to ensure competitiveness and profitability 3. Review stock levels to make sure you can satisfy customer demand 4. Review sales, marketing and promotion plans and make sure they are optimized to help achieve the best results 5. Review staffing plans and confirm acceptance of the rosters by all staff 6. Review fraud and theft protection systems 7. Review debtor lists and actively chase all overdue accounts 8. Review the use of finance products for effectiveness 9. Prepare for future trends 10. Complete a business plan for 2016

ENLARGEMENT

DID YOU KNOW

“There is no doubt that the future of the Western Balkans is in the EU - the EU remains committed to the policy of enlargement to that region.”— DONALD TUSK, President of European Council

30% or 1,800 of endemic species of Balkan flora have a home in Bosnia and Herzegovina

MONTENEGRO

HUNGARY

Etihad and Montenegro Airlines Start Negotiations

Company Payment Discipline Improves

Etihad Airways and Montenegro Airlines have held their first joint meeting since the two signed DALIBORKA PEJOVIĆ, CEO, a Memorandum of Understanding (MoU) for Montenegro Airlines Strategic Commercial Cooperation in November 2015. Etihad’s Vice President for HR Operations, Sinead Kilkelly, and the carrier’s Manager for Projects, Bojana Galebov, met with Montenegro Airlines’ CEO Daliborka Pejović, Executive Director Lidija Pantović, as well as the Vice President of the Board of Directors Predrag Marković and the country’s Deputy Prime Minister Duško Marković. The group discussed Montenegro Airlines’ organization structure in detail, which the Abu Dhabi-based carrier is working on revamping in a bid to boost efficiency. Etihad Airways stressed it was satisfied with the level of cooperation shown by its Montenegrin counterpart so far, as well as the quality of information the airline has passed on. BOSNIA AND HERZEGOVINA

Tuzla and Mostar Airports Cleared for Cargo Bosnia and Herzegovina’s Council of Ministers has cleared Tuzla and Mostar airports for cargo flights used for the export of products of animal origin. In November Tuzla Airport announced it had reached an agreement with Turkish Airlines to run at least two weekly flights, operated by an Airbus A330200 freighter aircraft, for the export of animal origin products but required state clearance beforehand. Tuzla and Mostar have been eyeing the export of chilled beef to Turkey. Currently, only Banja Luka Airport is handling such shipments. In September, Banja Luka Airport said it would invest additional funds in improving cargo infrastructure at the airport, but warned that its operations could be jeopardized if Tuzla is issued cargo clearance reports Ex-YU Aviation News

Payment discipline among Hungarian companies improved in the third quarter of 2015, as 70% of invoices were paid on time, a slight increase from 67% one year earlier, according to consulting firm Bisnode. On average, firms settled their invoices in 24 days, one day less than

a year ago, which is a positive trend, Bisnode noted. The average payment period varied in a range of 2436 days between sectors. Catering is considered the most risky sector, as it has the highest rate of insolvency, even as the sector reported a good year backed by a strong summer season.

ALBANIA

EBRD Supports Women in Business Program The European Bank for Reconstruction and Development (EBRD) is supporting the development of women entrepreneurship in Albania with a €2 million senior loan to Intesa Sanpaolo Banka Albania (ISBA). The loan is being extended under the EBRD’s €20 million Western Balkans “Women in Business”- program for on-lending to women-led small and medium-sized enterprises (SMEs) in Albania. ISBA will be the first bank to join the framework in Albania. The financing will be complemented by technical assistance to partner financial institutions and tailored advisory services for women-led SMEs. The program is jointly supported by the governments of Italy, Sweden and Luxembourg and the EBRD Shareholder Special Fund. JANUARY

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CORPORATE GORAN RADOVIĆ, MANAGING DIRECTOR AT VOSSLOH COGIFER - VOSSLOH MIN SKRETNICE

Small Switch, Big Success After achieving success abroad, Vossloh MIN Skretnice this year dedicated a significant part of its production to Serbia for the first time

ear after year, regardless of the direction of travel, a switch will be crossed by countless trains. Speed, load and frequency of trains are becoming higher and higher. This is why continuous improvement is the only way to respond to growing customers’ demands. Vossloh MIN Skretnice, as part of the newly established Vossloh Customised Modules division, offers single-source solutions on the basis of worldwide experience and skills in the development and manufacturing of project-specific switch systems. Its products play an important role in making rail transport cost effective, safe, and environmentally friendly.

■ Which opportunities have the announced rail sector reforms provided for Vossloh MIN Skretnice? - The company is investing constantly in people and machining capabilities, which create a strong basis for the expected further growth of our business. Naturally, there is a close connection between our development and the level of infrastructure investments in the region, both in railways and in urban railguided transport systems. Modernisation of rail tracks, with numerous projects launched or in preparatory phases, will finally give us an opportunity to provide a broad range of our products to our domestic market. ■ What do you consider as your optimal portfolio when it comes to domestic and foreign orders? - I have to highlight that this was the first year in 36 |

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which a significant part of our production was dedicated to projects in the Republic of Serbia, having previously been orientated mostly for export. We are very proud that we cooperated with RZD International on the Belgrade to Pančevo rail line project, as well as with Energoprojekt on the new Belgrade Centre passenger station. Our advanced technology tramway switches and crossings are installed in Vojvode Stepe Bulevard and Autokomanda Square in the Serbian capital. However, our products have also been delivered to other European countries: Greece, Slovenia, Bosnia-Herzegovina, Macedonia, Poland, Croatia, Germany and Luxembourg. Our expectations are that the local market will certainly grow in the coming years, powered by the strong will of the

which is continuing throughout the whole of the Vossloh Cogifer group and in which we are investing a lot of time and resources. An amazing transformation is already changing our minds and this will provide significant benefits through our passion for continuous improvements. Customer satisfaction, as our primary task, is a key driver of all our actions.

Serbian Government to complete pan-European corridors. Nevertheless, basically half of our production capacity will remain focused on export.

■ Would you say that this is the right formula for success? - Obviously we have found the right way. Again, we have a record year coming to an end, with outstanding results in terms of sales and profitability secured. The high performance we have achieved is now standard, expected both on the customer and on intercompany side. Vossloh MIN Skretnice team, reinforced in the last couple of years with young engineers and operators, is passionately willing to continue this trip. ■

■ How much progress have you made to date on your idea to establish a design centre within VMS? - Our designers are already recognised and a good level of cooperation has been established with collegues from all around Europe. Development of “Borderless design” is ongoing and all units of the Group will share common software and a common database. In addition, our design department will hopefully move to a new building next year. Still, we are always developing new ideas and, for example, we want to create a service activity in connection with our core business: manufacturing switches and crossings. We also actively support the corporate policy of “One Vossloh”, with Vossloh MIN Skretnice products play an the introduction of Vossloh’s Core important role in making rail transport cost components and Lifecycle solutions effective, safe, and environmentally friendly divisions on our market.

■ In which areas have you channeled most of your investments and how does VMS stand in that respect, compared to other companies within Vossloh Cogifer? - We can speak about investments, but not only in machines and buildings, although we continue with our original plan of improvements. Our focus is on Lean transformation, a process

CORPORATE NELA CERO, COMMERCIAL SECTOR HEAD AT PPT INŽENJERING A.D. BELGRADE

Successful Combination of Knowhow and Tradition PPT Inženjering a.d. Belgrade today represents a positive blend of knowledge in the field of hydraulics, pneumatics and centralised lubrication with grease and oils, as well as a long tradition of almost 60 years and a large number of references both at home and abroad serving as the best proof of its presence and continuous development on the market

PT Inženjering a.d. Belgrade is the only company from the composition of Prva Petoletka from Trstenik to have been privatised and continued operating successfully in the framework of Russian concern Trest Gidromontazh from Moscow.

■ Given the high number of capital projects that have been launched in Serbia, where do you see the most room for your engagement? - During 2015, we participated in the repair of hydraulics and lubrication on the combined machine at the Kostolac surface mine. Likewise, we implemented several contracts with public entterprise EPS Serbia - Đerdap branch. This relates mostly to regular maintenance and the modernisation of existing equipment, as well as the delivery of spare parts. We expect to move forward with the implementation of largescale investment activities, primarily in EPS, at Sartid, Petrohemija and in the processing industries. Announcements and investments to date mainly passed us by, as they did most enterprises from the metals industry, which many consider as being on its last legs. We think this will not happen and should not be allowed to happen. Serbia must strategically orientate itself towards our complex.

■ Which projects from the previous year would you single out as being the most important? - Like in the past twenty years, the most important projects in 2015 were also implemented in the fields of hydroelectric engineering and water management. For Russia’s Nizhny Bureya Dam Hydroelectric Power Plant we carried out the the design, production and delivery of an electro-hydraulic system for managing segments and emergency/overhaul shutdowns. During 2015, work began on the realisation of a project to replace and modernise the electro-hydraulic equipment for the Sayano– Shushenskaya Hydroelectric Power Plant, one of ■ What are your plans for 2016? the world’s biggest HPPs, for which we have al- PPT Inženjering is today in a posiready delivered the equipment. Repeated coopertion to compete for work on an equal ation is the best confirmation of knowledge and quality. In cooperation with a Russian company, PPT Inženjering is today in a position to compete for work on an we are again designing and supplying equipment for the Rogun Dam hydroelectric power plant in equal footing with reputable international companies, primarily Tajikistan, the highest embankment dam in the in terms of respecting deadlines and ensuring quality. With world, where our previously installed equipment experience working with major, significant clients, continuous is running faultlessly.

improvements and monitoring of the latest developments in the

■ Which markets are you most prevalent on field of hydraulics, PPT Inženjering will readily await the launch and in which areas of expertise does your of major investment projects in Serbia, primarily in EPS, Sartid, company stand out from the competition? Petrohemija and the processing industries - PPT Inženjering is a company that, in terms of its operational concept, is unique in the Balkans, and perhaps even in Europe. Our engineering offer is complete: from design and footing with reputable international companies, primarily in terms of development, through manufacture, installation, commissioning and mainterespecting deadlines and ensuring quality. Design is being finalised and production commencing on equipment for the locks on the Volga-Don nance of the most diverse fluid technology systems. That is rare, because elsecanal, hydraulic systems for equipment (for the Lipetsk Plant in Ruswhere in the world you must contact a variety of companies in various areas related to fluids. We developed as part of the large production system of Prva sia), MHE Vrgudinac, in Serbia for Goša-Fom, while negotiations are also Petoletka from Trstenik, but we gained extensive experience as designers of underway for new jobs (HE Sangtudinskaya in Tajikistan and HE Tulumsystems, with components from the world’s leading manufacturers. skaya in Russia). ■ JANUARY

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CULTURE WORLD NEWS

“Cultural diversity and cultural change are desirable and inevitable. We are cultural animals, someone without a culture is not human.” — MARTIN WOLF, Chief economics commentator at the Financial Times

Electric car sales in China are expected to reach 220,000 to 250,000 this year, surpassing the U.S. to rank first worldwide, China Association of Automobile Manufactures (CAAM) forecast. Worldwide electric cars sales will hit 600,000 and the figure for the U.S. market is estimated to be 180,000. Although China

CHINA

ITALY

World's No. 1 Electric Car Market

Barclays Sells Italian Branch Network

has achieved rapid development in electric vehicles, quality instead of quantity should be focused on for the sustainable development of the industry. In particular, vehicle safety and the quality of batteries should be carefully examined and supervised. China's new energy vehicle sector has seen explosive growth in the past two years, thanks to the government's support policies including subsidies and tax cuts. In the first ten months, the sales of electric cars surged 290 percent year on year to 171,145. Source: Xinhua

Barclays has agreed to sell its Italian bank branches to CheBanca!, the seven year-old retail arm of Mediobanca, the banks said, confirming a Reuters report.

NORWAY

Telenor Announces Divest of Shares in VimpelCom The Norwegian Telenor Group has announced its intention to divest all its shares in VimpelCom Ltd., where the company has an economic stake of 33 per cent. VimpelCom Ltd. has gradually contributed less to the value of Telenor Group, and the value of Telenor’s core operations have increased rapidly. Telenor Group has invested NOK 15 billion (€1.3 billion) in VimpelCom. The company has received NOK 20 billion (€2,4bln) in dividends and the current market value of the ownership stake is approximately NOK 20 billion.

SPAIN

Abengoa Facing $29.6bln Bankruptcy A Spanish solar energy company Abengoa is on the verge of collapse, potentially leaving international banks on the hook for around $29.6 billion. Abengoa has received $3.74 billion in loans from the U.S. government since 2010 to construct several large-scale solar projects, looks set to become the largest bankruptcy in Spanish history. Gestamp, subsidiary Gonvarri, had planned to buy up 28% of Abengoa for some €350 million, which would have made it the renewable energy firm’s biggest shareholder. But the deal fell through, and a court in the city of Seville — where the company is headquartered — launched bankruptcy proceedings, which offers Abengoa protection from creditors for up to four months until it finds a solution. Unions and politicians are increasingly concerned about the fate of the 70-year-old firm, which employs 28,700 people around the world, including 7,000 in Spain. Early last month chief executive Santiago Seage had resigned as the company announced the start of insolvency proceedings.

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The disposal is the latest by Britain’s third-biggest bank by market capitalisation as it looks to sell its continental European retail banking operations and focus on its core business, which includes corporate and investment banking. Under the deal CheBanca! would acquire 89 branches from Barclays with 220,000 clients, residential mortgage loans worth €2.9 billion and 620 staff. As part of the transaction, Barclays will refinance the unit with €237 million before passing it to CheBanca!

5 THINGS

BUSINESS LEADERS SHOULD LEARN

Here we offer five advices important for business leaders in every industry.

1. Map back to the company vision 2. Set reasonable, revisitable priorities 3. Be able to adapt-even late in the game 4. Prioritize the customer 5. Constantly collaborate and, whenever possible, in-person

CAPITALISM

DID YOU KNOW

“There are different ways to organise capitalism. Free-market capitalism is only one of them-and not a very good one at that.” — HA-JOON

The Rubik’s cube is the best-selling product of all time. The iPhone is second.

CHANG, South Korean institutional economist

RUSSIA

WORLD

Elite Real Estate Boom in Moscow

The 10 Smartest Countries in the World

After a slow year on Russia's housing market caused by the country's economic crisis, Moscow is starting to see a growth in sales of elite property, the Kommersant newspaper reported. In November, the demand for elite real estate in Moscow rose by 25 per cent compared to the same period last year and by 50 per cent compared to October. The experts attribute the growth in sales to the discounts for new housing being offered by developers and the amendments to the Tax Code

— which increase the period of time after which the owner can sell the purchased property without having to pay taxes from three to five years. The changes come into force on 1st January 2016.

LATVIA

INDONESIA

Parliament Grants €80mln Loan to airBaltic

Officially Joins OPEC Again

The Latvian parliamentary committee on budget and finances (taxes) approved the plan for a Treasury loan to the national airline airBaltic and its subsequent capitalization, u under condition that the airline must not buy, rent or use military equipment of any kind. WIDHAYAWAN PRAWIRAATMADJA

The provision is apparently intended to prevent the airline from purchasing Russian-made Sukhoi Superjet aircraft as there have been reports that this is what the new financial investor might expect from airBaltic.

Indonesia is once again officially an active member of OPEC, said Widhayawan Prawiraatmadja, Indonesia’s Governor for OPEC, in a statement. The reactivation of the Indonesian membership was marked with its participation in the 168th Session of OPEC in Vienna, Austria."Now, Indonesia is in the transition process which is dominated by a shift from fossil energy to new and renewable energy that is sustainable in the future," he said.

SLOVAKIA

Men Earn 27% More Than Women

The average salary in Slovakia in the first half of 2015, according to a fresh survey by the internet portal Platy.sk, was €929 a month, with Bratislava topping the list of best paid jobs, as always. In the region of Bratislava, the average salary comes to €1,280, while the lowest average salary can be found in the Presov region, at €808. The survey also pointed to the existing pay gap in Slovakia between men and women, with men making an average of 27% more than their female counterparts. The top paid jobs are in management and higher qualified jobs, while the services industry laments the lowest paid jobs, with the hotel, tourism and catering sectors coming out worst.

The OECD tracks new college degrees in 40 of the world's most advanced countries. Now the group has released its 2015 Science, Technology and Industry Scoreboard report, which includes data up to 2012. The ranking is based on the percentage of science, technology, engineering, or math (STEM) degrees awarded per capita so that it's a fair comparison between countries with different populations.

Here is how 10 of the smartest countries in the world stack up when it comes to science degrees: 1. South Korea (32%) had the top 10's largest drop, from 39% in 2002, even though the country retained its position at the top of the OECD's list; 2. Germany (31%) had the third-highest average annual raw number of STEM graduates at about 10,000, right behind the US and China; 3. Sweden (28%) is just behind Norway for most computer use at work. Over three-quarters of workers use computers at their jobs; 4. Finland (28%) publishes more research about medicine than in any other field; 5. In France (27%), most researchers are employed by industry rather than the government or universities; 6. Greece spent only 0.08% of its GDP on research in 2013. It might explain why its STEM degree rate dropped from 28% in 2002 to 26% in 2012; 7. Estonia (26%) has one of the highest percentages of female STEM graduates, at 41% in 2012; 8. Mexico moved up despite the government abolishing tax breaks for businesses investments in research and development; 9. Austria (25%) has the second-highest number of working-age PhDs, with 6.7 female and 9.1 male doctorate holders per 1,000 people; 10. Portugal had 25% of its students graduate with a STEM degree and has the highest percentage of doctorate holders (72%). JANUARY

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AFTER WORK

NOV

INTERNATIONAL DAY FOR THE ELIMINATION OF VIOLENCE AGAINST WOMEN

The Serbian government’s coordination body for gender equality joined the UN Country Team in marking the International Day for the Elimination of Violence against Women, with joint activities announced within the framework of the global initiative – 16 Days of Activism Against Violence Against Women. “Combating violence against women is a strategic pillar of the policy of improving gender equality in Serbia,” said Zorana Mihajlović, Serbian Deputy Prime Minister and President of the Coordination Body for gender equality. The fact that 34 women were killed in Serbia this year and 27 last year highlights the necessity of combating this type of violence and the need for cooperation between organisations.

NOV

CANADA RENEWS BOSUT PUMPING STATION

Canadian Ambassador to Serbia, H.E. Philip Pinnington, joined Deputy Prime Minister of Vojvodina and Provincial Secretary for Agriculture, Water and Forestry, Branislav Bogaroški, and Sremska Mitrovica Mayor, Branislav Nedimović, to open the Bosut pumping station in Sremska Mitrovica, which was reconstructed using funds provided by the Canadian government. The Government of Canada secured a total of one million Canadian dollars for the project to renovate the Lipac and Bosut pumping stations, in Sremska Mitrovica and Šid, and to clear the basin of the River Bjelica in Lučan, which will contribute to protecting these municipalities from possible flooding. This project is being implemented by the United Nations Office for Project Services (UNOPS), together with Public Water Management enterprises Vode Vojvodine and Srbijavode.

26 SCIENCE FESTIVAL “MIRACLES EVERYWHERE”

NOV

BRANISLAV BOGAROŠKI (left) and H.E. PHILIP PINNINGTON during the opening ceremony

More than 7,000 students from 200 schools attended the first day of the Festival of Science, which was held in Belgrade from 3rd to 6th December. This ninth science festival was held at a new location - the Belgrade Fair, under the slogan “Signs are everywhere”. During this largest scientific event in Southeast Europe, close to 600 scientists welcomed children from across the country, who – among other things – played enthusiastically on the laser harp, explored the depths of the sea and land, socialised with Naomi the robot and personally performed physics, chemistry and psychology experiments. The festival was opened by Ana Jovanović, Festival Director, Nemanja Djordjević, director of the Centre for the Promotion of Science, Greg Gage, a world renowned neuroscientist, and Ana Vidosavljević, a primary school pupil from the Sveti Sava School in Mladenovac.

H.E. PHILIP PINNINGTON (left), BRANISLAV BOGAROŠKI and BRANISLAV NEDIMOVIĆ

28 FROM ISRAEL WITH LOVE

NOV

Savamala’s Mikser House hosted the two-day event “From Israel with love” on 28th and 29th November, which saw Israeli culture, gastronomy and music presented to Belgraders. Attendees were entertained by the Orphaned Land Orchestra, pioneers of a musical direction called “orient metal”. The band performed music from their album “All is One”, which top the charts around the world, as well as “Hazelnuts” - a phenomenon of the Israeli music scene which has quickly managed to win over audiences around the world. During the event attendees had the opportunity to enjoy Israeli culinary masterpieces, as well as an exhibition of paintings entitled “Exchanging Glances”. Fans of fashion had the opportunity to view and even purchase the creations of famous designers from Israel, such as Victoria Kanar, Liron Itzhakov and Michal Hidas.

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29 DAYS OF GREECE

NOV

The three-day Days of Greece event saw visitors entertained with a varied selection of Greek products, music and dance, via a rich entertainment and education programme. Visitors were delighted with the students of the Department of Hellenic Studies at Belgrade university’s Faculty of Philology, who dressed in traditional costumes and performed Greek dances. During the event, the Greek Embassy in Belgrade and the Greek National Tourism Organisation organised the promotional campaign “Christmas in Athens”. Honorary guests at the event’s opening included Sofia Camiha, Economic Attaché at the Greek Embassy, Sophia Lazaridou, Director of the Greek National Tourism Organisation, and Vasilis Kakagiotis, Vice President of the Hellenic Business Association in Serbia.

SOFIA LAZARIDOU, Economic Attaché at the Greek Embassy

01 FAREWELL PARTY

DEC

MAJA PIŠČEVIĆ, ZORAN PETROVIĆ, MRS and AMBASSADOR KIRBY

MIODRAG KOSTIĆ (left) and ECONOMY MINISTER ŽELJKO SERTIĆ

DEC

AmCham organised a party at Belgrade’s Hyatt Regency on 1st December to bid farewell and offer thank to Ms Maja Piščević for her three-year term as executive director of this association. Guests were greeted by Zoran Petrović, AmCham Serbia president and Chairman of the Board of Raifeisen Bank, who also wished Ms Piščević success in her future career. Maja Piščević gave an emotional speech in which she thanked all the members of her team and all AmCham members for their cooperation, revealing that she will continue her career in New York. The event was attended by prominent guests from the worlds of diplomacy, politics and business, including Kori Udovički, Deputy Prime Minister and Minister of State Administration and Local Self-Government, Zeljko Sertić, Minister of the Economy, H.E. U.S. Ambassador Michael Kirby, and Marko Čadez, President of the Serbian Chamber of Commerce.

IN KOSOVO

TRADITIONAL STAR IMPORT ANNUAL DINNER

Company Star Import, general distributor of Mercedes-Benz and Smart vehicles in Serbia, organised its traditional dinner for media representatives. “This year was exceptionally successful due to the new SUV models and the expansion of markets. We achieved a 25 per cent increase in sales of passenger vehicles and thus we expect to end the year as the leader in the premium segment. We are confident that, with the application of values based on quality and the highest level of professionalism, the future success of our business is assured,” said Rolf-Juergen Seyerle, CEO of the company. Star Import expects a continuation of the favourable trend in all segments, but primarily with the brand new E-Class and GLC coupe from the SUV family. The greatest attention among those present was certainly attracted by the premier models of the new E-Class and the new generation A-Class.

FRANCE HELPS

03 MOTHERS & BABIES DEC

ROLF-JUERGEN SEYERLE, STAR IMPORT CEO

French humanitarian organisation “Solidarity for Kosovo” has donated new equipment for the maternity hospital in Kosovska Mitrovica. “Every birth is a victory that gives hope that the Kosovo Serbs have a future. We are very happy and proud to have this campaign, which helps mothers and babies in Kosovo. We bought four birth and operating tables, which will improve safety and comfort during labour significantly” – says the founder of Solidarity for Kosovo, Arnaud Gijon. In cooperation with the Diocese of Raška and Prizren, French aid workers also installed a donated cooling unit for the purposes of the maternity ward in Pasjan. The donation is worth in excess of €50,000. JANUARY

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AFTER WORK

03 ECO PARK IN SOMBOR DEC

SAŠA TODOROVIĆ, Mayor of Sombor

A unique eco park was opened in Sombor with a formal ceremony held on the town’s Republic Square. The Eco Park is a gift from Coca-Cola Systems in Serbia to the citizens of Sombor, built with the support of the NALED business association and WWF - World Wide Fund for Nature. Sombor’s Eco Park is the first in a series of seven parks in seven Danube cities within the campaign Danube Eco Parks, which is being financed by Coca-Cola Systems in Serbia. Those in attendance at the park’s unveiling were greeted by Saša Todorović, Mayor of Sombor, Dragan Lupšić, Manager of Public Relations and Communications at Coca-Cola Hellenic Serbia and Montenegro, and Violeta Jovanović, director of business association NALED.

SOCIETY OF 03 BRITISH SERBIA ARRIVES IN DEC

07 FAREWELL PARTY FOR WEINER CHIEF

DEC

BELGRADE

The British Society of Serbia is a new voluntary and not-for-profit association set up in Belgrade to support British citizens living and working in Serbia and provide a single platform for their charitable and cultural efforts. The Society was officially introduced to its 1,000 members at a reception organised for friends of the association and attended by Her Majesty’s Ambassador Denis Keefe. To date, the Society has fundraised for a number of charities, including the Red Cross of Serbia in Kragujevac and “Blazing to Serbia”, which donates fire engines from Wales to Serbian municipalities. “The British Society will serve as a meeting place for its members in Serbia. We will provide them with relevant information to make their life in a new country easier,” said Neil Howie, Chairman of the Society.

DRAGAN LUPŠIĆ (left), DANIJELA BUZUROVIĆ and MAYOR SAŠA TODOROVIĆ

Insurance company Wiener Städtische Osiguranje organised a celebration to mark the career and retirement of Branko Krstonošić, CEO and Chairman of the Executive Board, who held this position from the company’s founding. He has now been replaced by Zoran Blagojević, who previously served as the company’s executive director. The celebration at Hotel Jugoslavija was attended by many guests from the worlds of politics and business, including Serbian Economy Minister Željko Sertić, Erste Bank chief executive Slavko Carić, MK Group owner Miodrag Kostić and many others. H.E. DENIS KEEFE (left) and NEIL HOWIE

08 EUROBANK HOSTS DEC

LEGENDARY GOALKEEPER

Eurobank Serbia has marked the 2nd year of its successful cooperation with the Manchester United Football Club with the visit of one of this prestigious English football club’s greatest ever living legends: goalkeeper Peter Schmeichel. As the exclusive partner of Manchester United in the payment card segment in Serbia, and following a strong campaign with exceptional results, Eurobank organised special events for clients, partners, media representatives and employees. “Since the launch of this partnership, we have acquired more than 12,000 new Manchester United cardholders,” said Philippos Karamanolis, President of the Executive Board of Eurobank Serbia. The Manchester United credit and Eurobank 42 |

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DUŠAN MIHAILOVIĆ, Member of the Executive Board of Eurobank (left), PETER SCHMEICHEL, Eurobank Serbia President PHILIPPOS KARAMANOLIS and SIMON HOPPE, Head of Financial Services at Manchester United

debit cards belong to the group of the most sophisticated payment cards with MasterCard Paypass technology.

10 HEMOFARM

DEC

COMMEMORATES 55th ANNIVERSARY

With production of billions of tablets, investments of millions of euros, markets on three continents, and decades ranked among the country’s top 10 exporters, Hemofarm celebrated its jubilee 55th anniversary. It is with the same expectation that Hemofarm enters 2016, another jubilee year marking the tenth anniversary of the merging of German knowledge and Serbian experience through the synergy of Hemofarm and Stada. “Numbers are an important indicator of our success, but I always emphasise that there is something that is more important – the people. Our employees, partners and associates are our most valuable resource,” said Hemofarm CEO Ronald Seeliger, speaking at the company’s New Year’s reception. Hemofarm plans to open a new building for quality control in the next year, as well as launching new products and maintaining its position as the regional leader in pharmaceuticals.

DEC

RONALD SEELIGER, Hemofarm CEO (left), and H.E AXEL DITTMANN, German Ambassador to Serbia

DEC

KNAUF INSULATION CELEBRATES DECADE IN SERBIA

Knauf Insulation, which privatised Surdulica’s factory for the production of stone wool in 2005, has celebrated its first decade of successfully doing business in Serbia. In addition to producing more than 40,000 tonnes of stone wool insulation annually, the biggest success of this plant is that, as of January 2016, it will introduce the Ekos technology to the production of its Earthwool insulating material, which is based on the use of completely natural materials. The celebration was attended by representatives of the Government of Serbia and the Embassy of Germany, as well as numerous clients and friends of the company. “It is greatly satisfying for me that we have, as a collective, contributed to Knauf Insulation being synonymous with successful production and energy-efficient solutions,” said Tihomir Civkaroski, Knauf Insulation’s general manager for the Balkan region.

SAM PRESENTS AWARDS TO THE BEST

For the fourth consecutive year, the Serbian Association of Managers (SAM) has organised a gala evening on the occasion of the presenting of annual awards to companies and managers. In the presence of more than 350 guests, including Konstantinos Lambrinopoulos, Chairman of the Management Board of the European Managers Association (EMA), the gathering was opened by special guest Željko Sertić, Serbian Economy Minister. A total of 22 awards were presented in 12 categories. The title of Manager of the Year for 2015 went to Vladan Živanović, while Telenor was declared employer of the year. In the category of “Socially Responsible Companies”, first place was won by Bel Medic General Hospital.

DEC

ŽELJKO SERTIĆ (left), JAE HONG KIM and H.E. LEE DO HOOM

Knauf Insulation Serbia CEO TIHOMIR CIVKAROSKI (centre) with his team

KOTRA BRANCH OPENS IN BELGRADE

Belgrade’s Crowne Plaza Hotel welcomed H.E. Korean Ambassador to Serbia Lee Do Hoom for the inauguration of the representative branch office of the Korean Business Centre, KOTRA, in Serbia. The formal opening was attended by Serbian Economy Minister Željko Sertić, who signed a Memorandum of H.E. LEE DO HOOM (left), ŽELJKO SERTIĆ, JAE HONG KIM and Understanding with KOTRA MAJA GOJKOVIĆ, National Assembly Speaker President Jae Hong Kim on cooperation between the Serbian Ministry of Economy and the KOTRA centre. The main aim of the KOTRA centre is to explore new opportunities for cooperation in trade and investment. Chan-kil Park has been appointed director of the KOTRA centre for Serbia. The event was attended by representatives of government, chambers of commerce, major companies and many other public figures. JANUARY

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CULTURE CALENDAR CONCERTS

RIBLJA ČORBA

ORTHODOX CELTS

1st – Mikser House – 21:00

Renowned Belgrade band Orthodox Celts will perform on 1st January at Mikser House in the Savamala district. The “Celts” was established 23 years ago and since then has released five studio albums. In 2016 the band will release a new album, with the audience having already had the opportunity to hear two singles from this latest project. As a prelude to 2016’s tour, a video was filmed for the new single, “One”, which will premiere at the Mikser House concert.

2 ND – M I K S E R H O U S E – 2 1 : 0 0

▶ Bora, Miša and the crew will close this year’s Mikser Festival, which begins on 29th December, with a Riblja Čorba concert at Mikser House on 2 nd January 2016. Riblja Čorba is a Serbian and exYugoslav rock band from Belgrade, formed back in 1978. The band was one of the most popular and influential acts of the Yugoslav rock scene and still remains a popular band for audiences of all ages. dinars until year’s end at all Eventim outlets, and afterwards for a price of 600 dinars. Tickets will cost 700 dinars on the day of the festival.

TRICKY

The Celts are unique on the Belgrade music scene, performing traditional Irish music combined with rock elements, which has had a significant influence on music lovers and helped popularise Irish music in Serbia, but also across Southeast Europe, where the band enjoys high popularity. The talented team first came together in the early 1990s and produced their first album two years later. While the first album consisted entirely of standard Irish folk music, from the second album the Orthodox Celts began to include their own songs, written and composed following the Irish music style.

26th – Dom Omladine – 21:00 Legendary trip-hop artist and producer Tricky will perform on 26th January 2016 at Dom Omladine’s Americana Hall.

BELGRADE RIOT FEST

23rd – Dom Omladine – 20:00

Get ready for “rebellion” at Dom Omladine’s Americana Hall on Saturday 23rd January. With punk, hardcore and metal, organised by “Route 011”, this evening will bring together nine bands from the alternative scene for the Belgrade Riot festival. Tickets for the festival can be purchased for a promotional price of 500

Tricky’s Belgrade concert will be a world exclusive of sorts, with the artist choosing Belgrade to launch the tour with which he will present his new album “Skilled Mechanics”, to be released on 22nd January 2016. “Skilled Mechanics” was announced recently with the singles “Beijing to Berlin”, a collaboration between Tricky and Chinese rapper Ivy, and “Diving Away”.

Tricky imposed himself as an important name on the global music scene two decades ago, with his debut album “Maxinquaye”. After years of internship as an associate of Massive Attack, part of the Wild Bunch crew and the Bristol scene, this release turned Tricky into a global star, and turned trip-hop into an exciting new sound on stage. Tricky’s former collaborator, Martina Topley Bird, remains probably the most recognisable vocal contributor to his songs, although in the last twenty years Tricky has gone on to work with Bjork, Nenah Cherry, PJ Harvey, Cindy Lauper et al. Despite all his meanderings and ups and downs, Adrian Thaws, aka Tricky, has managed to remain one of the most respected and innovative musicians, who had no trouble writing a new chapter in his life with the “Skilled Mechanics” project. “Music has no master. Music is free. I do not make music, music created me. Everything I have been is through my music...” said Tricky.

CLASSICAL MUSIC

NEW YEAR’S GALA CONCERT

13th – National Theatre – 20:00

Ballet Ensemble on 13th January. Under a programming comprising three parts, directed by Ivana

Dragutinović Maričić, Ana Grigorović and Aleksandar Nikolić, the concert will include popular arias, compositions from world famous films and traditional Serbian songs.

SABORNA CATHEDRAL CHURCH CONCERT

14th – National Theatre – 20:00

The day of St Vasilije the Great traditionally sees Belgrade’s Saborna Cathedral Church organise its New Year’s concert at the National Theatre in Belgrade, featuring the First Belgrade choral society, numerous guests, musicians, reciters, actors, musicians and other artists.

The traditional New Year’s Gala Concert will be performed by the National Theatre’s Orchestra, Choir, Opera and

PIANO DUO JELICA GLIGORIJEVIĆ & NATALIJA MLADENOVIĆ 1 7 TH – K O L A R A C E N D O W M E N T H A L L – 1 1 : 0 0

▶Jelica and Natalija will perform pieces by Mozart. During her decades spent performing concerts, Jelica Gligorijević has made numerous solo performances, as well as concerts in chamber ensembles throughout the former Yugoslavia, Moscow, Lavovu, Kiev, Kharkov, Minsk, Dnepropetrovsk ... She has recorded for Belgrade and Kiev’s radio and TV stations. Natalija Mladenović has performed as a soloist throughout the Soviet Union, Germany, Switzerland, France….as well as performing with Samarska Philharmonic Orchestra and RTS Orchestra. She also took part in BEMUS, NOMUS, NIMUS and currently works as artistic contributor at the Faculty for String Instruments. Entrance to this concert is free of charge.

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JOHANN STRAUSS – GALA CONCERT WITH BALLET

21st – Sava Centre – 20:00

The most famous New Year’s Concert to have toured concert halls around the world returns once again to perform at the Sava Centre, this time with a new programme. European production of Strauss’s most famous New Year concert again perform in Belgrade with its fa-

BALLET

NUTCRACKER

16th – Sava Centre – 19:30

mous version of the traditional New Year’s Concert The Great Johann Strauss Gala. Presenting the most famous pieces of the Austrian composer known as the “King of Waltz”, the Strauss Festival Orchestra and Strauss Ballet Ensemble have been performing on major European stages for 15 years already. With a combination of famous marches, polkas and waltzes, the event includes dance couples dressed in tuxedos and romantic dresses reminiscent of the famous 19th century ballrooms of Imperial Vienna. In short, the combination of the Strauss Festival Orchestra and the Strauss Ballet Ensemble ensure this version of the New Year’s Concert is a unique event.

SCHOOL OF BONTON – HOW TO LISTEN TO A CONCERT

30th – Kolarac Endowment Hall – 11:00

This event, which has been organised each month at Kolarac for many years, is aimed primarily at children and introducing them to classical music in entertaining way. The event is planned as a walk through Kolarac together with a guide, who explains everything – from purchasing tickets for the concert, the information included in the concert programme, those involved in the organisation of concerts, where and how the artists prepare before going on stage and how to behave during the concert, but also how and when to applaud. The central part of the event is an adapted musical programme for children in the form of a short concert lasting approximately 20 to 30 minutes. Following the concert, these mini music fans are often allowed to mingle with the artists and hosts of this monthly event.

GIORGIO MENDOZA, CHIALOGERO PALERMO, NATAŠA ŠARČEVIĆ

31st – Kolarac Endowment Hall – 11:00

Piano, bassoon and piano. Repertoire including pieces by Glinka, Liabov, Schuman and Sans Sans. Entrance for this event is free of charge.

At the start of 2016, with the spirit of Christmas and the New Year holidays still in the air, Belgrade’s Sava Centre, National Theatre and Russian Centre will jointly host a magnificent cultural event for the city’s faithful ballet audience.

The Ballet of the National Theatre will perform, in the Great Hall of the Sava Centre on 16th January 2016, the anthological show the Nutcracker with guest stars of the Bolshoi Theatre. Konstantin Kostyukov is the choreographer of this balletic grandeur. In addition to guest artists, soloists and the entire ensemble of the Ballet and Orchestra of the National Theatre perform in this show. This magical, wintry ballet fairy tale, which begins on one Christmas night, is interwoven with the expressive music of Tchaikovsky, providing reason enough not to miss this ballet spectacle, which is aimed especially at the youngest audience.

nearly a decade with a spectacular series of more than 30 sold-out performances from December 2014 to June 2015, mainly performed at Belgrade’s Dom Omladine youth centre and the Novi Sad Youth Theatre, but also at the Army House in Pančevo, the Inđija Culture Centre and Dom Sindikata in Kragujevac. “Čikaške perverzije” continues to engage audiences in a humorous and provocative way, using the problem of male-female relationships, which are inexhaustible and very inspirational issues, explains lead actor Dragan Jovanović.

28th – Dom Omladine – 20.00

The hit play “Čikaške perverzije” (Chicago perversions) returned to theatre audiences after a break lasting

HOAKIN BERCESO

1st-15th – Instituto Cervantes

On the occasion marking 400 years since the death of Domenico Teotokopulos, “El Greco”, in Toledo (Kandy, Crete, 1541 - Toledo, 1614), this exhibition presents a photographic journey through his most important artistic achievements of the altar art in Spain. El Greco, who first acquired an

ART

JOVANA POPIĆ – NEITHER HERE NOR THERE

1st-31st – Goethe Institut

“Neither here nor there” presents clues in the search for one’s own place in the world. These places are unique,

THEATRE

CHICAGO PERVERSIONS

one of these paths, but never two at the same time” (Wittgenstein 1933-34). Popić primarily deals with the theme of identity and its countless fragments and constitution. This multimedia artist is trying to uncover clues – traces of places, memories, time, and marked cultural life stories – that determine the real identity, meaning and worth of every individual.

emotionally and mentally concentrated. In this exhibition, Jovana Popić uses art as a tool to study human geography, inspired by Wittgenstein’s notion that “when we are forced to map certain areas, the map shows the various paths that cross a given area; we can choose

artistic education on Crete, and then in Venice and Rome, arrived in Toledo in 1577. In this new environment, he was introduced with a new style of painted art that differed from the Italian in that the artist did not make only the painting, but also the shrines which framed the painting. In Spain, together with the painting, he made creations as an architect by designing the altars, working together with his son Jorge Manuel on the design and manufacture of wooden statues, polichrome (aka. estofado techniques and gilded altars architectural elements.) El Greco will surprise you with distinctive style and an unusual attachment to the splendour of burnished gold and matt, to which he stayed loyal from his period of study on Crete.

BAT 5 TH – N A T I O N A L T H E A T R E – 1 9 : 3 0

▶ Bat is a classic operetta, or comic opera, offering excellent singers, rich voices, experienced actors, comedians, fluttering ballerinas, a cheerful chorus, orchestra and a great favourite guard. The Castle Opera, which later became the State Opera in Vienna, included this piece in its repertoire early on, which has led many of the most prestigious opera houses in the world, from Covent Garden to the Metropolitan, to stage the opera Bat, guaranteeing an excellent response from audiences. The same can be said of Serbia, where this Strauss opera masterpiece has quickly won over audiences.

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FACES & PLACES 01.12.2015

Romanian National Day

A formal reception at Belgrade’s Hyatt Regency Hotel marked the National Day of Romania, commemorating the date of 1st December 1918, when the national unification of this country, which is now an EU member, was achieved. Romanian Ambassador H.E. Daniel Banu said that bilateral relations between Belgrade and Bucharest are growing each year and that the Romanian national minority in Serbia and Serbs in Romania represent the foundation for advancing cooperation. The reception began with a minute’s silence in memory of those who died at Romania’s Kolektiv club and the victims of recent terrorist attacks in France, Libya and Mali. The reception was attended by numerous government, military and church officials, including the Speaker of the National Assembly Maja Gojković and the Head of the EU Delegation to Serbia, Ambassador Michael Davenport.

07.12.2015

PM Meets With Nordic Business Alliance

UAE National Day

Mrs and H.E. BANU

H.E. DANIEL BANU and H.E. MICHAEL DAVENPORT, Head of the EU Delegation to Serbia

Ambassador of the United Arab Emirates in Belgrade, H.E. Juma Rashed Al Dhaheri, organised a reception to celebrate the 44th anniversary of the National Day of the UAE. “It is an honour to point out the strength of bilateral relations between the UAE and friendly Serbia, our mutual respect and common interests,” said Ambassador Al Daher, who also symbolically cut a cake, decorated with the markings of the two countries, with the help of Maja Gojković, President of the Serbian National Assembly, Željko Sertić, Minister of the Economy, and representatives of the diplomatic corps. The reception was also attended by representatives of political, business and public life in Serbia.

Serbian Prime Minister Aleksandar Vučić met for the first time with members of the Nordic Business Alliance, with the main topic of discussion being the experience of Nordic companies operating in Serbia and opportunities for improvement of the country’s business environment – aimed at creating a better business environment for current and future investors. The meeting was attended by Serbian government ministers and the ambassadors of Denmark, Norway, Finland and Sweden, as well as leaders of Nordic companies. Attendees were addressed by Jasmina Vignjević, president of the board of the Nordic Business Alliance and manager for cooperation with government institutions at Telenor, and Andreja Pavlović, CEO of the Nordic Business Alliance.

ANDREJA PAVLOVIĆ (left), JASMINA VIGNJEVIĆ, Prime Minister ALEKSANDAR VUČIĆ and H.E. Swedish Ambassador CHRISTER ASP

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H.E. JUMA RASHED AL DHAHERI and ŽELJKO SERTIĆ

07/15.12.2015

09.12.2015

HBA Election and Christmas Dinner

Gala Concert of the Regional Children’s Philharmonic

More than 60 representatives of Hellenic Business Association (HBA) members, representatives of the Greek Embassy and members of the Greek business community in Serbia, gathered to wish for a successful and prosperous 2016 at the Christmas dinner. The President of HBA Management Board, Mr. Georgios Papanastasiou, welcomed the guests and extended his and Board’s warmest wishes for Prosperity, Health and extended business relations between Serbia and Greece. Earlier last month representatives of the members of the HBA elected new members of the association’s board of directors at the General Assembly in Belgrade. The new President of the Board is Alpha Bank Srbija’s Georgios Papanastasiou, while Vice President is Vasileios Kakagiotis, of Robne Kuce Beograd, the new HBA Treasurer is Zafeirios Lampadaridis, Hyatt, Excelsior, and the two newly elected members are Stefanos Karapetsis, Mellon Serbia, and Stylianos Zakof, of Chipita.

Under the guidance of visiting Slovenian conductor Žive Ploj Peršuh and the organization of the “Children for Children” Foundation, with the support of the Belgrade City Assembly, the Children’s Regional Philharmonic Orchestra presented its traditional New Year’s gala concert at Belgrade’s Kolarac Endowment Hall. Sixty junior musicians of the world’s first Regional Children’s Philharmonic performed a rich musical programme, while the special guests of the concert included world renowned trombonist Branimir Slokar and opera singer Ana Petrović. The talented young musicians endeavoured to relate the spirit of the New Year’s holidays in the atmosphere of the Vienna, Berlin and New York philharmonics. The traditional concert was attended by members of the diplomatic corps and prominent guests from cultural, artistic, scientific, sporting and economic circles.

ZAFEIRIOS LAMPADARIDIS (left), STEFANOS KARAPETSIS, GEORGIOS PAPANASTASIOU, VASILEIOS KAKAGIOTIS and STYLIANOS ZAKOF

09.12.2015

FIC Regular Elections Annual Assembly

DSW Christmas Reception

Ove Fredheim, CEO of Telenor Serbia, was elected President of the Board of Directors of the Foreign Investors Council (FIC) at the association’s regular annual assembly. Gabor Bekefi, CEO of Carlsberg Serbia Group, continues to hold the post of FIC Vice President elected as a substitute to the FIC President, while Lafarge Serbia CEO Dimitrije Knjeginjić continues to hold the post of FIC Vice President elected as spokesperson of the association. Other members of the FIC Board of Directors include Thanos Trimis, British American Tobacco’s General Manager for Serbia, Montenegro and Bosnia & Herzegovina, John Kyritsis, COO of Delhaize Serbia, Ivan Rakić, Ernst & Young Partner and Head of Tax, Silvia Vernetti-Blina, CEO of FCA Srbija, Yana Mikhailova, Regional Director of Nestlé Adriatic, Michalis Orfanoudakis, PepsiCo Western Balkans Commercial Director, Goran Pitić, President of the Board of Directors of Societe Generale Bank Srbija, and Udo Eichlinger, CEO at Siemens d.o.o.

The German-Serbian Business Association (DSW) welcomed representatives of its more than 300 member companies and friends to the traditional DSW Christmas Reception at Belgrade’s Hotel Metropol Palace. Guests were first welcomed by H.E. AXEL DITTMANN (left) and MARTIN KNAPP DSW Director and Delegate of the German Economy in Serbia, Martin Knapp, after which attendees were addressed by the guest of honour, H.E. German Ambassador Axel Dittmann, who provided a brief retrospective of economic conditions in 2015. DSW President Ronald Seeliger thanked all members for their support in fundraising during the cele- RADMILA IVETIĆ and RONALD SEELIGER bration of the 6th DSW Oktoberfest in Belgrade, with the funds then formally handed to Radmila Ivetić, director of the Food Bank (Banka hrane) organisation, to help the children of single parents.

IVAN RAKIĆ, Ernst & Young Partner and Head of Tax, UDO EICHLINGER, Siemens CEO, OVE FREDHEIM, Telenor Serbia CEO and FIC President, YANA MIKHAILOVA, Regional Director of Nestlé Adriatic, DIMITRIJE KNJEGINJIĆ, Lafarge Serbia CEO and FIC Vice President, GABOR BEKEFI, Carlsberg Serbia Group CEO and FIC Vice President, MICHALIS ORFANOUDAKIS, PepsiCo Western Balkans, THANOS TRIMIS, General Manager at British American Tobacco for Serbia, Montenegro and Bosnia & Herzegovina

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FACES & PLACES

IVICA DAČIĆ and H.E. JUICHI TAKAHARA

10.12.2015

Japanese Emperor’s Birthday Celebrated A formal reception to celebrate the 82nd birthday of Emperor Akihito, the 125th consecutive emperor according to the traditional hereditary system, was held in Belgrade. The numerous guests in attendance were greeted by H.E. Juichi Takahara, Ambassador of Japan to Serbia, who said that, despite the great distance separating them, there is a strong feeling of friendship between the two countries. The reception was followed by an exhibition of ka-

10.12.2015

Gala Evening of the Chamber of Italian-Serbian Businessmen

CLAUDIO CESARIO (left), representatives of BASSILICHI CEE LTD, ZORANA MIHAJLOVIĆ and H.E. MR. GIUSEPPE MANZO, Italian Ambassador

The Chamber of Italian-Serbian Businessmen organised a traditional event at which the results of the previous year were summarised and the prestigious Giuseppe Maria Leonardi Prize was awarded, this year going to company Bassilichi CEE Ltd. “In the past two years, Italy has managed to position itself as Serbia’s largest foreign trade partner,” said Claudio Cesario, President of the Chamber. “Italian companies employ around 26,000 people in Serbia, and we are trying to ensure even more companies come to our country,” added Deputy Prime Minister Zorana Mihajlović. In addition to representatives of Italian organisations, guests of the reception also included representatives of the diplomatic corps, Serbian political and economic leaders, as well as personalities from the public and cultural life of Serbia.

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buto, the Japanese samurai helmet and the Japanese calligraphic version of Petar II Petrović Njegoš’s famous work “Mountain wreath”. In addition to First Deputy Prime Minister Ivica Dačić, who thanked Japan for providing humanitarian aid whenever it is needed the most, the reception was attended by other members of the government, representatives of the diplomatic corps and other dignitaries.

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Slovenian Business Club Members Decorate Christmas Tree Danijela Fišakov, president of the Slovenian Business Club, was the host of a traditional reception that was prepared for members and guests of the Club to mark the completion of another successful year. “We end this year with a rise in the number of members by more than 10 per cent compared to the previous year. However, this number must be even higher. That is the task of all of us for 2016,” said Fišakov. Guests were also addressed by Goran Križ, new Economic DANIJELA FIŠAKOV Counsellor at the Embassy of Slovenia, who wished those present a happy New Year and Christmas holidays. The reception had a humanitarian character, with collected donations sent to the National Association of Parents of Children with Cancer - NURDOR.

11.12.2015

GIZ Presents Results

During the past six years, the Serbian-German cooperation project entitled “Improving land management at the local level – an urban module” has provided cities and municipalities in Serbia with technical assistance in the modernisation of land management at the local level. The aim of the project was to harmonise the operations of partners at the local and national levels with the EU’s standards and guidelines. The project’s activities were implemented using the “bottom-up” principle. The first stage was marked by pilot projects at the local level, while the second stage, from 2013 to 2015, saw experience from the previous phase serve as the basis for strengthening discussions at the national level. The presentation was attended by Siegmund Müller, Director of GIZ in Serbia, Harald Müller, project director and AMBERO team leader, Jürgen Schmid, First Secretary for Economic Cooperation at the Embassy of Germany, Aleksandra Damjanović, State Secretary in the Government of Serbia, and other distinguished guests.

15.12.2015

CANSEE Christmas Reception

MIRJANA DONČIĆ – BEATON, Managing Director CANSEE(left), GORDANA GAVRILOVIC, CANSEE Secretary Treasurer, H.E. PHILIP PINNINGTON, Canadian Ambassador

The Canadian-Serbian Business Association (CANSEE) and the Embassy of Canada hosted a Christmas reception at the Canadian Ambassadorial Residence. Distinguished guests included H.E. Ambassador Philip Pinnington and representatives of CANSEE members, partners and potential members, while guest of honour was Crista McInnis, Deputy Director of the Canadian MFA’s Department for Eastern Europe and Eurasian Affairs. The celebration marked the end of CANSEE’s successful first year of operations and the association was proud to announce it will be the main carrier of the LEADER Project’s programme for Serbia for 2016 – with many thanks offered to the Richard Ivey School of the University of Western Ontario for awarding CANSEE the exceptional educational opportunity of being one of the LEADER Project’s worldwide sites in 2016.

15.12.2015

Reception Marks Opening of EU Chapters On the occasion of the opening of the first negotiating chapters with the EU, Prime Minister Aleksandar Vučić hosted a reception in the building of the Yugoslav Cinematheque Film Archives. The reception was attended by top state officials, including Serbian President Tomislav Nikolić, Speaker of the National Assembly, Maja Gojković, and the entire cabinet, as well as members of the diplomatic corps. The event also saw PM Vučić formally thank the citizens of Serbia who have “understood well what it is we are doing and how we want Serbia to look”. Head of the EU delegation in Serbia, H.E. Michael Davenport, noted that the opening of the two chapters is an historic step that makes Serbia’s European perspective very tangible.

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ADVERTISING

GLOBAL FORECASTS FOR 2016

Ad Spending Growth to Continue in 2016 In separate revised projections released, Interpublic’s Magna Global, Publicis’ ZenithOptimedia and WPP’s GroupM predict global ad spending to increase almost five per cent in 2016, with double-digit growth rates forecast for digital media

fell 0.1% in 2015 to $193 billion, marking the first time the category hasn’t grown in a year in which the economy isn’t in a recession. Looking to 2016, TV ad spending growth is expected to come in just at 1.4%, excluding the impact of nonrecurring events. The erosion of TV viewing among key demographic of 18 to 49-year-olds is accelerating in mature markets of North America and Europe and in many emerging markets as well. Over the next five years, Magna Global doesn’t expect growth in TV ad revenues during odd numbered years when the category gets a lift from political and Olympic ad spending.

mobile advertising to reach $114 billion, overtaking desktop ad spending. Advertising sent to mobile devices only totaled $50 billion in hile the firms slightly reduced 2015, the firm estimates. their projections for 2016, all ZenithOptimedia projects Internet adthree are still forecasting ad vertising overall to post an average annual spending growth to continue growth rate of 13% over the next three years. at a steady pace. This year’s ad spending levThe rapid growth of paid search advertising, els will get a slight boost from the U.S. presiwhich is essentially direct response marketdential election, UEFA football championship ing, is one of the driving forces behind Web in Europe and the Summer Olympics in Brazil. marketing overtaking television. TV, in conThe firms are estimating that ad spending ontrast to search ads, is more about building ly rose between 3.2% and 3.9% in 2015. brand awareness, and its market share probaMagna Global projects global ad sales bly peaked in 2012 at 39.7% and is expected to to increase 4.6% to $526 billion next year. fall to 34.8% by 2018, ZenithOptimedia said. Excluding the impact of nonrecurring Meanwhile, GroupM noted that 2015 events, global ad revenue in 2016 marked the first year that absolute is expected to increase 3.7%. That spending in traditional media cateWhile TV viewers decline, rate suggests there will be no sigdeclined in the so-called “new marketers are increasingly turning gories nificant acceleration in underlyworld” markets of Latin America, to digital platforms to reach ing ad demand this year, considerCentral and Eastern Europe and ing that 2015 ad revenue probably Southeast Asia, though the trend is consumers rose 3.2%. Global ad growth in 2015 expected to ease slightly in 2016. While would have been 4.1% when excluding the While TV viewers decline, marketers are only a half-point decline, GroupM notes it’s a impact of nonrecurring events in 2014. increasingly turning to digital platforms “rapid deceleration” from the 17% growth traZenithOptimedia expects a 4.7% into reach consumers. Last year’s ad spendditional media experienced in these geographcrease in expenditures in 2016 and projects ing growth was driven by a 17% gain from ic markets as recently as 2010. The slowdown the global ad market to continue to grow at digital media ad sales, according to Magna is in part because “digital is making such great a stable rate of 4% to 5% through at least Global. Digital ad spending is expected to inroads in these countries,” GroupM Futures 2018. GroupM forecasts 4.5% growth in increase roughly 14% in 2016, driven by Director Adam Smith said. 2016, as ad spending since 2007 continues mobile advertising. However, some overDigital media will be 90% of the driving to grow at a slower rate than the expansion all ad budgets may be shrinking as marforce behind net global ad growth in 2016, of the world economy. keters shift money from traditional media GroupM said. Digital media is driving overThe health of the TV advertising market, to cheaper digital media, and that could be all growth even as its own pace of expansion in particular, has been closely monitored putting pressure on the overall ad market. decelerates to 14%. It’s the first slowdown in this year as younger consumers increasingly Magna Global expects digital media to the industry post-recession, and may be due, turn to video-on-demand or streaming sersurpass TV as the world’s largest advertisin part, to the fact that Internet advertising vices and marketers, in turn, shift more ad ing medium by 2017. ZenithOptimedia prohas become a much larger category, the firm dollars toward new digital platforms. jects Internet media will earn that title a said. Digital media is also facing some “sigMagna Global’s latest forecast suggests year later when it will represent 36.6% of nificant structural issues” as marketers raise an underlying slowdown in TV advertising. all global ad spending. questions about ad fraud, ad blocking and The firm estimates that global TV ad sales By 2018, ZenithOptimedia also expects the viewability of online ads.■

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| JANUARY

Serbian

MEDICAL CARE S P E C I A L

E D I T I O N

2016

Serbian MEDICAL CARE

TEST WITHOUT RISK Our genetic basis consists of two sets of 23 chromosomes. In certain cases, an error occurs in the formation of these basics, leaving the baby with a surplus or deficit of chromosomes (aneuploidy). Nature has arranged for the vast majority of these genetically defective foetuses to be rejected, but occasionally a child is born with intellectual and physical development problems. Because of this, routine screenings are carried out to determine the individual risk pregnant women for the most common aneuploidy. These are the double, triple and Q tests.

ROLE OF SCREENING TESTS One of every 156 live births has a chromosomal abnormality, with up to 80 per cent of these abnormalities relating to the so-called trisomy 13th, 18th and 21st pairs of chromosomes and aneuploidies sex chromosomes. Screening tests are tasked with separating pregnancies with an increased risk of these disorders, in order for follow-ups with other methods to confirm whether these abnormalities are really present in the foetus.

NON-INVASIVE METHOD DETECTS ANOMALIES The new generation of prenatal tests, such as the Tranquillity Test, separates the foetal (baby) DNA from a sample of maternal blood, then detects whether there is extra chromosomal material that is the result of excess chromosomes and reveals its origin. In this way it can be accurately determined whether or not the foetus has the tested chromosomal abnormality. The test is carried out from the 10th week of pregnancy, while the non-invasive method involves only taking a blood sample from the pregnant women, thus ensuring there is no risk of miscarriage.

EFFECTIVENESS OF SCREENING The effectiveness of certain screening tests are based on the detection rate (the percentage of detected faults compared to the actual number of foetuses with disorders) and the rate of falsepositive results (indicating high risk, while the foetus actually has no disorder). The real rate of detection of current screening methods is 80-90%,

whereby a foetus really has a disorder in one of every 25-29 screenings of positive cases. In all positive cases, it is advisable to reach a definitive diagnosis by conventional chromosome analysis (karyotyping) of materials obtained by the invasive prenatal procedure.

HIGH DETECTION RATE Non-invasive prenatal testing is very reliable. Various tests in this group have a detection rate for Down’s syndrome of over 99%. Specifically, the detection rate with the Tranquillity Test is 99.9%, with a false positive rate of 0.01%. The crucial advantage is its extremely low rate of false negative results and better identification of cases in which invasive testing should be considered. With this, the number of invasive procedures is reduced significantly, and along with that the complications they cause. However, one should not rule out the double test, primarily due to the ultrasound examination, which is its essential part and is very important for the diagnosis of major structural anomalies, predictions of pre-eclampsia, conditions of raised blood pressure of the mother, or a halt in the development of the fetus in the early stages of pregnancy.

FOR WHOM IT’S RECOMMENDED All mothers aged over 35, or if the screening test is positive. It is good to do the test if the ultrasound identifies an increased risk of aneuploidy. Testing is also recommended when the risk measured by the double test is moderate (according to international standards, that is between 1:100 and 1:2,500), because in that way a significantly higher number of affected foetuses are detected and at the same time the number of unnecessary invasive procedures is reduced. Although the risk of miscarriage in invasive procedures (CVS, amniocentesis) ranges from 0.2 to two per cent, for a number of pregnant women, especially those with high-risk pregnancies or pregnancies resulting from in vitro fertilisation, the risk is too great and, as such, the Tranquillity Test is a good solution.

Serbian MEDICAL CARE

INTERVIEW

PROFESSOR VIŠESLAV HADŽI-TANOVIĆ M.D., cardiologist

Private Practice

■ By Ivan MIŠKOVIĆ ■ Photo: Zoran PETROVIĆ

STILL NOT RECOGNISED

here isn’t a country in the EU that has not incorporated private health care practice into the mandatory health insurance system. There are different formats in existence and they are all performing well. We don’t need to invent something new in this area but just implement one of the systems that is the most fitting to our country’s economic potential. If we are talking about the developed EU countries, there are the German, British, French, Norwegian and other models to apply. As for our neighbours, we can implement the Slovenian or Macedonian format. Any of these will do as long as we finally transcend this 70-yearold ancient model of the monopolistic Communist health insurance which violates patients’ rights – says the famous cardiologist and president of the Serbian Medical Association of Private Doctors professor Višeslav Hadži-Tanović, M.D., at the beginning of our interview.

• Could you rate the results of the private practice in Serbia considering it has been in existence for a quarter of a century? - The situation in the Serbian health care sector is worse now than it was in 1990. The political regimes that have

Serbian MEDICAL CARE

When asked about the strategy of the Serbian Medical Association of Private Doctors, Dr HadžiTanović had the following to say: “One of the Association’s main strategies is continuously providing professional training for private practice doctors. The first private medical practice conference was held in Belgrade, on 27th April, 1990. The second one was held in Herceg Novi, Montenegro, in 1991. In the last 25 years we made sure that we had conferences every year and we brought the top experts from all over the world to participate.”

been in power in Serbia for the past 25 years were not interested in changing health care. They have been hampering the development of the private sector by isolating it from the health insurance system and discriminating against it, while at the same time, they have violated patient’s rights to freely choose the insurance, doctor and treatment anywhere in Serbia.

• Could you remind us what was it like when you started private practice in Belgrade a quarter of century ago? - It was the patients who dispelled the

Private medical practice in the former Yugoslavia and Serbia was reinstated when doctor Višeslav Hadži-Tanović opened the first private clinic – “International Heart Clinic, Dr Hadži-Tanović” - at 43 Hadži-Milentijeva Street, near Belgrade's St. Sava Temple in 1990 doubt that private practice could not be successful and they were the ones who couldn’t wait for private medical practitioners to be allowed to work again. I remember an older lady from Belgrade who came for a check-

up to my office back in 1990 who said: “You know, doctor, back in the ‘old’ Yugoslavia, prior to World War II, we had our family doctor who had a private practice in our street and this is what we have been missing all along. Thank you for opening a private clinic and for being brave enough to bring our private family doctor back.” After the print and electronic media reported about the opening of the first private clinic, we had patients coming from all over ex-Yugoslavia.

• How did other medical professionals react? - At first, the medical professionals, who had been raised in Communism, were skeptical and did not believe that private medical practice would survive in competition with the state-run health care system. They were particularly skeptical about patients opting to pay a private doctor considering that they already have health insurance paid by the state. I remember some of my colleagues, also cardiologists, coming to check whether I really had any patients and them being pleasantly surprised when they saw for themselves how many people were actually came to see a private doctor.

• Back then you were advocating huge

cardiology clinics, followed by gynaecological, ophthalmic, dermatological and psychiatric clinics. Community health centres are also being opened, which is a foreign concept elsewhere in the world. In terms of private hospitals, the majority of them are practicing plastic surgery, gynaecology and ophthalmology, followed by general surgery and orthopaedics. Ophthalmic surgery has been on the rise, particularly lens implants, and correction of congenital and acquired anomalies of vision. Endoscopic laparoscopic procedures in gallbladder and hernia surgery dominate in the field of abdominal surgery.

changes in the healthcare system. - In January 1990, when I returned from my cardiology specialisation at the Texas Heart Institute in Houston, the US, I gave an interview about how I saw the development of the healthcare system in Yugoslavia and Serbia in my capacity as a young doctor who completed medical specialisation and lived in Paris and America. Back then, Yugoslavia was just starting its transformation from a Communist, one-party-regime to a multi-party, democratic political system. Everything I said and suggested back then regarding the healthcare reform and development is also true today – a quarter of a century later. Unfortunately, nothing has changed for the better in the last 25 years. Serbian healthcare, which used to be one of the best in Europe, is stagnating and, today, we can say it is the worst in Europe.

• That was back then. Do you have different views today? How should we reform health insurance? - My suggestion for the Serbian Government and the Health Minister would be to rally together health insurance specialists from the EU with the aim of putting in place a health insurance system that would enable Serbian citizens to freely choose one or several mandatory health insurance policies, and have the right to choose their doctor – be they private or state funded. The principle behind changing the strategy and management of health insurance is actually quite simple. • Who is considered the foundation of the private medical practice in Serbia? - These are medical professionals who have specialised in various medical branches and who provide over 90 per cent of health services in private practice. Most of them work at internal medicine-

It has been estimated that over €3 billion has been invested in private medical practice in Serbia in the past 25 years

• What benefits could we gain by incorporating private practice into the mandatory health insurance system and in the overall healthcare system in Serbia? - Patients would be given the right to choose a doctor anywhere in Serbia, be they private or state-funded. Waiting lists would also be eliminated, which means that patients would be given treatment on the same day, and at a time that best suits them. Private doctors would have more patients and state doctors would be encouraged to move to the private sector, because the money is better. The state would benefit from drastically reduced healthcare spending through cutbacks on investments in healthcare (construction and reconstruction of hospitals) or through spending less on new equipment, because such

equipment is already available in private practice. However, the most important benefit would be curbing corruption in the Serbian healthcare system which is currently at the very top in the world. Additionally, the number of non-medical staff would be reduced by 30% which would be a significant relief for the state healthcare budget. As you can see, everybody would benefit from incorporating private practice into the state health insurance system, which is all the more reason why we should do it sooner rather than later.

• Could you tell us how well-equipped private practice is today? - Private medical practice in Serbia has the latest diagnostic equipment, i.e. over 1,500 ultrasound machines and more than 100 scanners and MRIs. Serbia has over 100 private hospitals where all sorts of surgery is performed, except for brain and heart surgeries. People in Serbia have recognised all the benefits of private healthcare and more than 50% of patients are now using private medical services, while over 60% use diagnostic and specialised services; 65% of patients are using gynaecological services, while 80% of them use laboratories and dental services provided by private medical practitioners.

• Which segments of society use private healthcare in Serbia the most? - Every one of them, including pensioners. Patients are respected and nobody is violating their rights. They are free to choose their doctors. There are no waiting lists in private medical practice and patients can schedule a checkup whenever they want. The services are of good quality and provided by very knowledgeable people, which are some of the reasons why patients choose private practices.•

Radiologija, interna medicina, neurologija, ginekologija, anesteziologija sa reanimatologijom. +381 11 78 57 555; +381 62 288 470 www.panaceapoliklinika.com office@panaceapoliklinika.com

Serbian MEDICAL CARE

INTERVIEW

VESNA JOVANOVIĆ

Director of the Serbian Medical Chamber ■ By Ivan MIŠKOVIĆ ■ Photo: Private PHOTO ARCVIHE

Linking State and Private

HEALTHCARE VITAL I am advocating for a uniform national healthcare development strategy which would prevent the problems with enrolment figures and allocation of specialisations in medical schools in the long run. The same applies to other issues that are important for the optimal functioning of the Serbian healthcare system

he members of the Serbian Medical Chamber are all licenced doctors working in both the state-run and private healthcare sectors. The Chamber is doing everything in its power to incorporate private medical facilities into regular healthcare segments in Serbia. Following World War II, private medical doctors were banned from practicing medicine privately. The Serbian Medical Chamber was also banned, which was a great injustice both for our profession and for the healthcare benefits of our people – says Vesna Jovanović Ph.D., Director of the Serbian Medical Chamber.

• Does Serbia need both state and private medical professionals? - Serbia needs every single available medical professional it can get.

Serbian MEDICAL CARE

Through its activities and negotiations with the institutions that could change, or at least influence changes, in the current legislation, the Serbian Medical Chamber will do everything in its power to adequately involve our

The Serbian Medical Chamber plans to establish closer cooperation with the World Health Organisation, in order to prevent outbreaks of infectious and non-infectious diseases. Our aim is for Serbian doctors to also apply this knowledge in their everyday practices medical peers from the private healthcare sector in regular healthcare segments in Serbia, which is a crucial pillar in providing the best possible medical services to patients.

• What about the new Healthcare Law and the innovations it introduces? - Changes and amendments to the Healthcare Law were passed on 26th November 2015. The Serbian Chamber of Commerce was involved in this process and the new law more precisely defines the status of those doctors who practice medicine in schools and at colleges, and this is something that wasn't previously specified at all. Moreover, the relations between all actors in the Serbian healthcare system have been regulated, and by “actors” we mean medical facilities, users of medical services and the State Healthcare Insurance Fund. There is a more detailed explanation regarding medical professionals working in the healthcare systems and their internships and passing the state licence exam, as well as a more detailed expla-

pendently of one another, complement each other? - It is vital to link the two systems, even if only partially, so that the patients, who are at the forefront of our work, are not forced to wait, but rather can be provided with the best and most professional healthcare services. Medical experts in this country are certainly ready to provide such services in an appropriate environment, with the latest medical equipment and sufficient quantities of medical supplies.

nation of licences that all doctors and other medical professionals have to have in order to provide medical services in the Republic of Serbia.

• When can we expect private medical workers to be incorporated into the state system? - As the Health Ministry says, it is vital to first create a uniform IT system that will consolidate both sectors. Once this is done, waiting lists will be much shorter. The waiting lists are one of the main indicators of the quality of a state's healthcare system, which is something we have already discussed with Mr. Björnberg, the representative of Health Consumer, an institution that rates medical facilities in Europe. He told us that the waiting lists in Serbia were not that long and that some countries more economically developed than Serbia have waiting lists almost twice as long.

• In which areas could these two systems, which currently operate inde-

Medical experts in this country are certainly ready to provide such services in an appropriate environment, with the latest medical equipment and sufficient quantities of medical supplies

• What role does the Serbian Medical Chamber play in all of this? - We have been actively participating in writing laws and bylaws and have had excellent collaboration with the institutions that are important for the medical profession, as well as with the Health Ministry. We have been investing a lot of effort into improving the status of both doctors and patients, as well as all vulnerable population categories, and we provide medical care and forensic exam-

Serbian MEDICAL CARE

ination services. We have been quite engaged in implementing a project about the legalisation of hospices in collaboration with the Serbian Orthodox Church, because there are none in Serbia at the moment. In cooperation with the World Health Organisation, the World Medical Association and the Standing Committee of European Physicians, our doctors provide expert opinions on all relevant aspects regarding various crises, prerequisites and developments influencing global health, the prevention of adverse effects or disasters.

• The existing capacities of staterun medical facilities do not cover all medical needs of the Serbian population. How many new clinics/hospitals do we actually need? - I believe that number is not as high as many presume. Existing capacities could be used in a much better, or rather a more planned, fashion, while both medical and non-medical staff could be allocated more rationally, in order to achieve the best possible effect in providing the best possible healthcare to people. • What is the Serbian Medical Chamber's stance on reducing the number of state medical workers? - I think that apart from incorporating private healthcare institutions into the state system in Serbia, it is also necessary to make a more comprehensive plan to better allocate existing medical workers. I am fully supportive of the efforts exerted by the Health Ministry, which is doing everything in its power to utilise the knowledge of all the medical experts who have been schooled in this country.

• What will happen to the doctors who haven't collected enough points to renew their licence? - Through mutual agreement with all medical chambers, and in collaboration with the Health Ministry, we have come up with a solution for this unpleasant situation, and our solution will contribute to ensuring the smooth functioning of our healthcare system. We cannot allow so many doctors

Serbian MEDICAL CARE

and other medical workers to be left unable to renew their medical licences, which would ultimately jeopardise the provision of quality medical servic-

Serbia has a sufficient number of physicians. However, in cooperation with the Health Ministry, we need to develop a quality plan to ensure better allocation of existing staff in the medical facilities around the country es to our population. Doctors who do not meet the requirements for licence renewal will be able to take a licence exam in front of a committee comprising medical school professors, under conditions determined by the health minister, thereby enabling them to demonstrate that they are acquainted with the latest medical advances.

• Which of the results achieved by the Chamber in 2015 make you most proud? - Getting to know how this institution works was a challenge of sorts, as was overcoming minor difficulties in the Chamber itself. This is a personal achievement that I am proud of. I consider the Chamber's achievements in 2015

as my personal achievements, as well as the achievements of everybody in the Chamber. We have launched many public projects and established impeccable cooperation with all relevant partners here and abroad. We are very satisfied with being able to position ourselves in the chamber system and establish daily communication with all medical chambers. We have also exchanged ideas with non-medical chambers, like the Serbian Engineering Chamber. Cooperation with the Health Ministry was fruitful and together we have managed to instigate changes to controversial articles of the Healthcare Law. This will enable us to properly position and protect our peers, who did not have a clearly defined status, and we have gone through the heaviest period of licencing that is now being successfully drawn to a close. We have been cooperating successfully for a number of years with the Serbian Medical Council and have been giving them the required professional and technical assistance. This cooperation has grown even bigger in 2015, and has been validated through an official cooperation memorandum.

• What are the Serbian Medical Chamber’s plans for 2016? - We will continue working to improve the Serbian healthcare system, the status of our doctors and their working conditions, as well as continuing to raise the quality of healthcare services, which is a never-ending job. Generally speaking, we shall continue investing a lot of effort. This is process that cannot stop, because if it does we run the risk of the entire established system malfunctioning. The Serbian Medical Chamber plans to continue maintaining good communication with all institutions with which we have cooperate successfully to date. We are also planning to organise a traditional gathering of our doctors from the diaspora at an event called the ‘Days of the Serbian Medical Diaspora’, which we will organise together with the Foundation of Her Royal Highness Princess Katherine. •

COMMENT

HEALTHCARE SITUATION UNCHANGED

Private Doctors Ready, But State

■ By Ivan MIŠKOVIĆ

FAILS TO INCLUDE THEM While waiting for private and state medical practices to be granted equal treatment, private medical professionals are celebrating the 25th anniversary of the existence of private medical practice in Serbia. Studies have shown that a third of people in Serbia are being treated by private medical workers

ccording to the World Health Organisation (WHO), Serbians spend $196 per capita on healthcare annually. This implies that patients’ rights, which are guaranteed by mandatory health insurance, and the services we should be receiving in state-run healthcare facilities, only exist on paper. Estimates have shown that, in Belgrade alone, half a million people visit private doctors every year. Statistical data shows that patients usually seek private gynaecologists and cardiologists, as well as using the services of private laboratories. Early in 2015, the Serbian Health Ministry promised that private medical practice would be incorporated into the state-run healthcare system and that this would initially take place in those segments where waiting lists are the longest – usually MRIs and scanners. The Ministry also promised that by year’s end patients with state-funded medical insurance would be able to use the services of private gynaecologists, paediatricians and GPs, as well as that millions of patients would be able to obtain the documents necessary for paid sick leave or hospital referrals from private doctors. Unfortunately, these remain in the realm of promises, with no progress hav-

Serbian MEDICAL CARE

ing been made towards integrating the public and private health sectors in 2015. Experts agree that there is no rational explanation why the private sector, which employs over 9,000 doctors, dentists and pharmacists, and which provides medical services to millions of people, does not have treatment equal to that of the state healthcare sector in the eyes of the State Health Insurance Fund, which is a public fund that is financed by taxpayers. Serbian citizens, who turn to privately run healthcare fa-

Estimates have shown that close to 40 per cent of all patients use private medical services. This could increase to 80 per cent if citizens with state health insurance were allowed to use private medical services cilities for most of their medical services, are not even given an opportunity to take their medical files from a state-run medical facility and give them to their private doctors, i.e. they cannot use the option of a “selected” or “chosen” doctor if that doctor is working privately. The gap between these two sectors is even more obvious given the fact that the medical opinions and referrals of pri-

vate doctors are not recognised at statefunded healthcare facilities, particularly in cases when patients decide to continue their treatment at a state hospital. When asked about this, the Health Ministry said that that was an exception rather than a rule, adding that this could only be the case if medical documentation brought by patients to a state-run medical facility failed to meet the relevant standards and new analyses had to be performed. Experts also point out that such a disorderly situation could jeopardise patients, asking whether the same doctor could perform as well in a state medical facility as a private one that hired them as a consultant, all in the same day. Doctors often point out that this chaotic situation suits their colleagues who don't work much and operate rarely, since the state healthcare system doesn't have a uniform IT system that would show both the volume and quality of their work. It is these doctors that are actually obstructing the idea of competition and the incorporating of private doctors into the state system. Professor Danica Grujičić, M.D., from the Clinical Centre of Serbia, says that incorporating the private sector hasn’t started yet and that the monopolistic po-

sition of the State Health Insurance Fund is an obstacle. She claims that everybody should pay private supplemental health insurance and that the emphasis should be on primary health care, while the state health insurance fund should pay only for the most expensive surgical interventions (like cardio and neurosurgical). “We would need only €50 per capita annually to cover the costs of primary healthcare and create a service package that would cover the needs of all patients. By this I primarily mean preventative check-ups, since it all starts with and relies on family doctors. In translation, we need to urgently conduct primary healthcare reform and involve insurance companies in that,” emphasises Dr Grujičić. She adds that there must be a registry containing the names of all doctors who work in state and private practice, and that the two sectors need to cooperate and refer patients to facilities that have free capacities, in order to avoid waiting for checkups and medical procedures. Dr Draško Karađinović, from NGO “Doctors Against Corruption”, points out that no progress has been made in giving equal treatment to these two parallel system in the Serbian healthcare sector, and we are already at the end of 2015. “By having a free choice to select a doctor, and by abolishing the monopoly of the state healthcare system, the basic corruption mechanism will be limited drastically in terms of patients. Such change will instantly lead to higher quality and productivity across the entire healthcare system, since many unwarranted and unnecessary waiting lists will be abolished. What most disappoints me are the amendments to the Healthcare Law that are cur-

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PRIVATE FACILITIES READY TO OFFER THEIR CAPACITIES

Private medical professionals say that, in terms of diagnostic equipment, they can make their capacities available immediately. This primarily refers to scanner diagnostics, for which there is a several-month waiting list in the state sector. Private health centres could be incorporated into the state system via selected or chosen doctors, while private hospitals could be involved in taking care of patients with kidney stones or those who have been waiting for a very long time for hernia or gallbladder operations in the state sector.

rently being considered by parliament and which don't even mention this crucial aspect. We should also finally define who the healthcare system actually serves: patients or several thousand privileged medical professionals who are sitting on sever-

There are approximately 4,000 private doctors registered in Serbia. We should consider that most private clinics also employ nurses and administrative staff, which means that, realistically speaking, the number of people working in the private healthcare sector is around 10,000 al chairs, so to speak. We should also not forget that Serbia spends 11 per cent of its GDP on healthcare, which is much more than neighbouring countries in the region, but with worse medical results,” says Dr Karađinović, adding that patients should finally have the right to choose where they are goi n g to be treated, since they are payi n g for that. Professor Dušan Milisavljević, M.D., who is both an otolaryngologist at the Medical Centre Niš and a member of parliament, adv o - cates equal treatment for private and state healthcare sectors and adds that Serbia is one of the few countries that don’t even recog-

nise the existence of the private healthcare sector. According to him, the private sector has been around for a long time, developing steadily and making gains in terms of quality. “It is completely irrational for the state to turn its head away from the private healthcare sector when there are so many waiting lists for numerous procedures in the state sector. I am all for clearly informing citizens or insured parties about what kind of service package they can get for the money they are paying into the state healthcare fund, and offering them a choice of medical facilities. The monopolistic behaviour of the State Health Insurance Fund needs to stop and we should give a chance to other insurance companies to get involved,” suggests Dr Milisavljević strongly, adding that it is vital to have several types of health insurance and to definitively incorporate the private health sector into them. Although money is often cited as the reason private doctors are not incorporated into the healthcare system, Dr Milisavljević thinks this should not be an excuse. He notes that the Health Ministry does have the will to embark on the process of equalising the status of the two parallel healthcare systems and he is waiting for the first tangible moves to be made. Until that happens, he points out that he is also very concerned by the discrimination suffered by his colleagues from the private sector. As often happens, medical analyses and check-ups performed by private doctors are not considered valid in the state sector. These procedures then need to repeated, which he says is a waste of both time and money. “When this happens, it further burdens the State Health Insurance Fund and this practice is just not good. What I advocate is stricter control of the work performed by doctors in both sectors,” insists Dr Milisavljević.•

Serbian MEDICAL CARE

INTERNATIONAL ASSOCIATION OF AUDIT BUREAUX OF CERTIFICATION

From Circulation to Certification While Serbian media companies are choking on their own egos and slowly disappearing, systems for measuring media potential are changing, spreading and improving globally on a daily basis, in order to provide advertisers with the most reliable data possible upon which to base their decisions regarding where, how, and how much to spend, and thereby increasing the revenue generated from media advertising

ne example of this is the er media brands with multiple products such first, in response to fragmenting patterns world’s oldest association for as websites, events, seminars, conferences, of viewership and the proliferation of platforms, channels and catch-up services. It measuring sold copies of print apps, videos, podcasts, webchats and more. provides an independent , industry-standpublications and website visCertification, rather than circulation, its: the International Association of Audit ard audit of viewing on broadcasters’ memuch more accurately represents what audit bureaux cover and how nimbly they redia players both linear and VOD. Bureaux of Circulation (IFABC), which last act – it’s no longer just copies issued or In Spain, the OJD has recently passed a month, following a decision of the Board, sold, but viewers reached through multiset of rules to determine the metrics and expanded its activities and also its name, ple devices, online editions, digital publireporting for out of home, which includes becoming the International Association of cations, measured by newsletter subscribboth traffic and audience impression for Audit Bureaux of Certification. This evolution in the development of IFABC is just ers, monthly uniques, active views and daimedia properties that have a face recognily views, to name just a few. tion system installed. This new framework the first step in adapting to the world’s Members across the IFABC’s broadly provides a consistent accounting method needs in the digital era. representative countries worldwide have to understand the real audience of digital International Federation of Audit already demonstrated proficient measursignage, rather than just trusting audience Bureaux of Circulations now to be known ing practices under a model of certificadata based on samples. as International Federation of Audit tion over circulation. In Hong Kong, for exAnd in Brazil, the IVC has rolled out inBureaux of Certification, reflecting diversification of media industry ample, mobile app publishers can audit not dependent ad campaign auditing as well as While print circulation numbers used to just downloads, but, by platform, number its own web-analytics tag to provide an independent source of evidence. It has shiftdefine a media brand, now they are simply of app visits, app visit duration, page views ed all digital auditing to this methodone measurement among many. For ology, with the result that around 80 this reason, the International Federation websites are crunching data of more of Audit Bureaux of Circulations, foundThe rebranding of the IFABC ed in Stockholm in 1963 and now with than two billion page views monthly. is a response to the evolution members in over 36 countries, has anThe same technology has been adaptof media business models nounced a rebranding strategy. It will ed to also audit app performance. worldwide and points to an become the International Federation of “Our move to certification over cirAudit Bureaux of Certification to reflect increasingly digital and diverse culation strengthens each part of the media brand value chain and allows its holistic approach to media measurefuture ment following the mass digitalization the whole to be greater than the sum and diversification of the media indusof their parts. Media brand owners can try worldwide. and social platform followers. This transimake money from each and every one of tion allows all parts of the ecosystem - meThe rebranding of the IFABC is a retheir different products far more effectively sponse to the evolution of media business dia brand owners, advertisers and advertiswith the ability to highlight the growing diing agencies - to have the confidence to inversity and reach of their products through models worldwide and points to an increasingly digital and diverse future. The identivest further in app-based advertising. independent certification – and make the ties of published media brand owners are no Meanwhile, in the UK, the ABC’s work case more credibly for investments in new longer simply defined by their print publicawith TV broadcast measurement body forms of advertising,” said Pedro Silva tions, but they have now evolved into widBARB as part of Project Dovetail is a worldPresident of IFABC. ■ 62 |

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■ By Radmila STANKOVIĆ ■ Photo: B92

INTERVIEW

Our Neutrality is

OUR STRENGTH ZORAN KESIĆ TV PRESENTER

He says that he came into the world a little unexpectedly, ten years after his elder brother. In fact, his father’s mother, Grandma Milanka, had insisted with her son and daughter-in-law: “Go and make a daughter!”, and everything had been made ready for a daughter, who was to be called Ana, and they bought a famous pink blanket, but instead of Ana he came, Zoran: “the blanket remained and I used it almost until I went to the army”. 64 |

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oran’s father, Milan, had been a model, an athlete phen Colbert, whom he adored. It was a satirical political talk for the Red Star Club, and then he graduated from show that emerged under local conditions through collaborauniversity and became an inspector of the Federal tion between Zoran Kesić, director Aleksandar Saničanina and Interior Ministry. Mother Ljiljana worked at JAT, a team of five Njuznet screenwriters. That was how viewers travelling around the world, and two of them raised received a show that quickly became the most watched protheir youngest son with much leisure and without restraint. gramme broadcast by B92 - 24 minutes. Unfortunately, after He went with them regularly to the cinema and theatre, and three seasons the contract has now ended and Kesić is noremembers how he went with his dad to the Teatrotek to where to be seen during December. watch a screening of Kralj ibi (King Ubu) with the irresistible Zoran Radmilović. ■ And, what now? Legend has it that his mother submitted his application to audition for the position of a radio journalist, as a junior at Studio B. She believed he could do that because her son had written the best essays in school and enjoyed the public appearances of reading his work in front of the class. That same day, he had scheduled to take both the entrance exam for DIF (today’s Faculty of Sport and Physical Education) and have his audition for Studio B. He did not pass the DIF test, but he was accepted by Studio B. His first editor was legendary journalist Đoko Vještica and Zoran Kesić admits even today that he remains his favourite editor, the only one whose authority he respected. He switched to B92 in the year 2000 and quickly managed to assert himself as an author who at that time, at the age of 24, already had five years’ experience at Studio B and excellent knowledge of the - “Now everything is in the hands I have no reason to panic of TV B92 and it depends on them journalist’s trade. when faced with the “I was filming people, squirrels, lunawhether the public will see us on tics, demonstrations, 5th October 2000 – question of whether the their television sets again. We have everything that seemed interesting to me contract will be extended no reason to doubt that we will conin the form of a fifteen-minute documentinue our good cooperation, because for 2016, but, knowing it is tough to believe that a television tary. I am the proud recipient of several where we live, I also have company would deprive itself of its awards for my short documentary films.” When he moved to TV Metropolis in reason. However, I cannot most popular show – without getting 2003, the satirical phase of his work beclose my eyes to the fact into the most influential, most cited and other “most” shows. We want to gan. He worked on the show Prekid prothat there have been work, but it is up to TV B92 to offer us grama (Interrupting the programme), other influential and the chance to work; or to not offer us but also the extremely noteworthy Dezinformator (Dis-informer), the show that well-watched shows that that. I have no reason to panic when faced with the question of whether was the forerunner to what he would lathave disappeared from the contract will be extended for er do in the form of 24 minutes. He then the screen 2016, but, knowing where we live, I headed to Fox TV and there gained popualso have reason. larity across the spectrum of the general However, I cannot close my eyes to the fact that there have public with the show Fajront republika (Closing time for the been other influential and well-watched shows that have republic). After three seasons of broadcasting, Fajront experidisappeared from the screen. So, my team and I are defendenced its own closing time. When he decided to return to the small screen, he did so ing ourselves against that possibility. From the first episode based on the model of American authors John Stewart and Steof our show there has been a running thesis – your show is JANUARY

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great, but you’re not normal; they’ll shut you down. We go through that on a wave of messing around and I don’t think we are particularly brave. We would not be able to work if we were constantly worried about what we are saying, and I think we must not remain silent in the face of the running stupidity we are served up on a daily basis.

■ That nonsense is most interesting and most convincing when it comes from the people in power. Is it most fun to mock the government?

- That is true and logical, as the leaders are the people who decide the fate of this country, and thus our fate as well. With that power they receive the responsibility of being criti-

headlines, that which is in front of all our eyes, and that means Vučić and the other people in power around him.

■ Have you ever had face-to-face meetings with some of the

people you mention often in your show – from Prime Minister Vučić, through various MPs and Ministers, to President Nikolić?

- At a recent celebration of the Antenna Group, which owns both TV B92 and TV Prva, I saw Aleksandar Vučić live for the first time in my life. He was five metres away from me and he didn’t see me. I began to think about how much responsibility he has for the success of our shows. If, for example, we were the authors of The Simpsons, he would be Homer Simpson. We must not undermine that fact. And it was with that in mind that I decided to approach the man and introduce myself to him. At that instant I was approached by my friend Galeb, who I had not seen for a long time, and spoke with him. When I turned around, the prime minister was gone. And thus Pinki did not see Tito. Or, as in Balašević’s song “Three times I saw Marshal Tito”. I have to date, from afar, only once seen marshal Vučić, but I can’t say I would really like to have that happen twice more. That was my only, almost close, contact, and I have had no other. ■ Do you avoid going to places where you could meet the heroes of your shows, or not?

- I avoid them. I was recently invited to go to a culture centre for some gathering, but I didn’t go because I knew all the other people who were going to be there. It’s not about my animosity towards those people, but simply that’s not my world and it’s best to remain at a distance from people who represent the subject of my professional attention.

cised, and that’s what we do. We also criticise people who We also criticise people who are not in power, the so-called are not in power, the so-called opposition, but that doesn’t opposition, but that doesn’t have such an impact; that have such an impact; that joke holds no weight because those joke holds no weight because ■ Has your father, who’s a former popeople have no weight. You’re those people have no weight. lice inspector, ever warned you to ease not a fighter if you stomp on up, to take it easy? You’re not a fighter if you someone lying on the floor. - After spending his career as a senior instomp on someone lying on He’s already been trampled. spector of commercial crime, my father Be a fighter yourself and scold was chief of the analytical department at the floor. He’s already been someone who is powerful and the Federal Interior Ministry, so he anatrampled who can respond the next day, lytically watches my show and highlights if it boils over, by screaming: You kind of played around, overthe best moments with radar like accuracy, or those that are not the best. His criticism is very helpful for me. Sometimes he played! I must admit that, due to political correctness, we does not say anything because he is concerned about our son struggle to find a topic that would relate to the opposition, so Andrej when we come to lunch, but when he praises something that we could have a little fun with them. But in recent years that means it was really very good. Otherwise, my father gets the opposition has been so unconvincing and powerless, so annoyed by the improper accents of people who appear on lacking in signs of a desire to do something, that we have TV; he is annoyed by effeminate presenters and often sees in nothing to catch them out for. So we deal what is in the news

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them something they might not be, while he is most irritated by sports commentators. He wants to enjoy the football, not listen to the foolish ideas of bad reporters. He has a somewhat antiquated view of the value system, which I understand and respect. On the other hand, he is very humorous and I think I inherited some of that talent from him, if that is hereditary.

■ And mother? - She worries. She asks in that maternal way if we have perhaps gone too far, if we need to stop a little. I hesitated for a long time when it comes to telling her about this crisis situation with the completion of the contract, so she won’t worry. She’s very systematic, responsible and respects deadlines. No matter how much I might at first glance appear not to be a person with those characteristics, in business I stick to precisely those principles, which I believe I inherited from her. Regardless of that, they are my great support, they understand me and are with me at all times.

submit the epithets that are given to us, nor does that make us think that we are something we’re not. Our greatest strength is in the fact that we are realistic, that we have not gone mad and imagined that we really are the only opposition to the government. We are not politically neutral, but we do not want to be claimed by anyone, neither the government nor the opposition.

■ As a man who lives with his wife and child in Belgrade, as

someone who was born in the centre of this city and who loves his city, what do you personally get annoyed by in this city and in Serbia?

- I’m annoyed by the media war that’s going on. I’m irritated

■ In a recent interview with journal-

ist Olja Bećković in NIN, you showed a remarkable dose of reality and awareness of the environment in which you live and the possibility that your programme will no longer exist, just as her Impressions of the Week disappeared from the airwaves a year ago. Is this awareness emphasised by the fact that the most frequent comments of the widest audience is that you are the only bastion of satirical and humorous programming on television? Does this fact burden you?

by the so-called “coup” that’s - Yes, that is a burden, but for another Who is against the going on, and which is actually reason. I don’t want us to be proclaimed government? No one has a coup to take over the brains the only opposition in Serbia. That is ever had such a majority or as and psyches of us all. I’m finding not what we are. We are a group of guys much public support as this this ever the less humorous and who have good fun, who have a desire all the more painful. I am horrito criticise and say what they think in government. All this looks a humorous, satirical and entertaining fied that people I know and with like a game that we ordinary way. That’s how we envisaged the show whom I associate are aware of viewers don’t understand, from the beginning, and that’s how it what lies they are participating while it’s clear to those who looks to this day. You must be current, in, how no one is innocent in the entertaining; our position must be clear war going on between Kurir, on are leading that game on every theme we address. Everything the one side, and Informer and else that they attach to us as a title, the only, the last, or I don’t TV Pink, and now even the state, on the other side. Here we can know what kind of beacon of free speech, only imposes on us replace the thesis and now Kurir and Aca Rodić will suddenly a responsibility that we do not want. We have a responsibility become the bastions of free media. I see in these newspapers to our show and there we want to push through with what we my picture and text that death threats have been issued against want. However, in general I do not need the responsibility of Rodić, some other guy and me. And now we are together! How being the light at the end of the tunnel, because I will not be come we are together and since when have we been together? that; I will not be the opposition or anybody’s only hope. I am Who are you to be dubbed a bastion of free journalism when responsible for my show and those of us who work on it did not you poison people with your nasty newspapers? The same JANUARY

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goes for the other side. This is a conflict between Alien and Predator, and you can’t take sides with anyone, and even less support either of them. Now the state has also involved itself in this huge lie that is aimed at raising tensions and imagining into existence a coup, with the explanation that the Prime Minister is physically endangered... There’s nothing funny in that anymore. What is meant by the statement of the Interior Minister that the Prime Minister passed a polygraph test which he set for himself and passed himself, while behind the Minister stands a police cordon in full battle dress. You remember when Informer published the claim that Croatia President Kolinda Grabar Kitarević had filmed a porn film? Well it turned out that she didn’t. And imagine that the government had to prove for some reason that Kolinda did film a porno. Would Nebojsa Stefanović be standing in front of a cordon of porn actors or a cordon of vibrators? What does such a parade mean; what kind of message are they sending with that police cordon behind the interior minister? ■ Does that prove some individuals are against the government?

- Freedom of the media is what you succeed in fighting for. We fight for every minute of freedom in our show. And we behave as though every show of ours is the last. And if we lose sight of this form of fighting, we will find another form, another way to speak, to fight for the freedom that will allow us to have that critical tone towards the bad things that are happening around us. I think it is in the job description of every authoritarian government, like this one, to stifle the freedom of the media, to keep all the strings in their hands, and those strings are in the media thread. We are aware of that, and we will not be surprised if, God forbid, our show no longer exists tomorrow. We would not be prompted by that to whine over the Greek tragedy of our destiny, but rather we will seek another form to say what must be said. The fight for the freedom of the press implies that we must not stop fighting. The worst thing is to be in despair, and I know that because I was in despair when I was left without a show. And I despaired until I was not tired of being desperate. Today every critical show, every critical article, is so precious that they must be preserved. And they must be fought for.

- But, who is against the government? No one has ever had such a majority or public support as this ■ Have you experienced any ungovernment. All this looks like a comfortable situations because of game that we ordinary viewers do what you’ve done or said on your not understand, while it is clear to 24 Minutes show? those who are leading that game. So, - I’d have to struggle to recall any I guess, they wonder how we can discomfort. I mostly experience the be so stupid as not to see it. That receiving of praise and congratulahorrifies me, but I could not say tions. What’s discomforting is now that in the show because it’s not having doubt about whether or not Freedom of the media is what we will continue. We live in times entertaining. That would then be you succeed in fighting for. called a kafana tirade, which you when no one would be surprised if a can see and hear in shows on some show like ours disappears. I am not We fight for every minute of more obscure television channels. freedom in our show. And we surprised by that, but by the lack of That equally annoys me because surprise among people when they behave as though every show ask how it is possible that this or it shows how stupidly has taken of ours is the last power and how the lie has become that happened, how is it possible dominant, so the media slowly bethat reality shows have the highest ratings, how was it possible that this one or that one was chogins supporting this enormous lie. All of that raises my blood pressure. sen...? It is possible because the people chose that, because the people watch that; and those of you who are surprised can enjoy yourselves in the oasis of your circles of friends and not ■ How do you see and evaluate the level of freedom of the be surprised by those who form the majority. ■ media in Serbia today?

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THE BEST

The Most Powerful, Influential, Richest... Another year, another set of records broken by the world’s most powerful, wealthiest and most influential people, as well as the most profitable companies. Each of these lists has been composed on the basis of numerous different parameters and statistical indicators

his year's lists of people and companies – who, each in their own way and from their perspective, influence global developments – do not differ too much on the whole from those of the previous year, though economic and political turbulence in the world has caused smaller or larger movements on the lists. Moreover, various political and economic influences should be taken into account, which even these ratings are not immune from, and so

IN 2015

many of us will certainly find some kind of objections to the ratings of certain people or companies on this year’s lists. We have tried to round off the year by using various reference sources to collect the information we present to you in this issue. The lists are processed according to multiple criteria that you may find interesting, but which may not necessarily concur with your own assessment and opinion.

VLADIMIR PUTIN

ANGELA MERKEL

JANET YELLEN

CARLOS SLIM

LILIANE BETTENCOURT

APPLE INC.

APPLE

DAVID M. ZASLAV

FLOYD MAYWEATHER

LEGO

THE WORLD'S MOST POWERFUL PEOPLE

THE WORLD'S MOST POWERFUL FEMALE

RANK/NAME COUNTRY

RANK/NAME COUNTRY/CATEGORY 1. Angela Merkel Chancellor, Germany 2. Janet Yellen Chair, Federal Reserve, U.S. 3. Christine Lagarde Managing Director, IMF 4. Dilma Rousseff President, Brazil 5. Park Geun-hye President, South Korea 6. Hillary Clinton Presidential candidate, U.S. 7. Ginni Rometty CEO, IBM 8. Mary Barra CEO, General Motors 9. Margaret Chan Director-General, World Health Org. 10. Melinda Gates Co-Chair of the Bill & Melinda Gates Foundation

1. Vladimir Putin Russia 2. Angela Merkel Germany 3. Barack Obama United States 4. Pope Francis Roman Catholic Church 5. Xi Jinping China 6. Bill Gates United States 7. Janet Yellen United States 8. David Cameron United Kingdom 9. Narendra Modi India 10. Larry Page United States

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THE WORLD’S MOST INFLUENTIAL PEOPLE RANK/NAME ORGANISATION 1. Janet Yellen Chair, U.S. Federal Reserve 2. Xi Jinping President of China 3. Tim Cook CEO, Apple 4. Larry Fink Co-founder, BlackRock 5. Warren Buffett CEO, Berkshire Hathaway 6. Barack Obama President of the United States 7. Carl Icahn Chairman, Icahn Enterprises 8. Lloyd Blankfein CEO, Goldman Sachs 9. Angela Merkel German Chancellor 10. Reid Hoffman Co-founder, LinkedIn

THE WORLD'S RICHEST PEOPLE RANK/NAME

NET WORTH ORIGIN OF WEALTH CITIZENSHIP

1. Carlos Slim 2. Bill Gates 3. Warren Buffett 4. Bernard Arnault 5. Liliane Bettencourt 6. Amancio Ortega 7. Larry Ellison 8. Eike Batista 9. Stefan Persson 10. Li Ka-Shing

$69.00bn $61.00bn $44.00bn $41.00bn $40.9bn $37.5bn $36.00bn $30,00bn $26.00bn $25.5bn

THE WORLD'S WEALTHIEST LADY RANK/NAME

NET WORTH

1. Liliane Bettencourt 2. Alice Walton 3. Christy Walton 4. Maria Franca Fissolo 5. Jacqueline Mars 6. Laurene Powell Jobs 7. Anne Cox Chambers 8. Susanne Klatten 9. Abigail Johnson 10. Charlene de Carvalho-Heineken

40.9bln 28.9bln 27.8bln 23.1bln 23.1bln 20.5bln 19.0bln 15.1bln 14.6bln 13.7bln

CITIZENSHIP

THE WORLD’S MOST PROFITABLE COMPANIES SOURCE

France L'Oreal U.S. Wal-Mart U.S. Wal-Mart Italy Ferrero SpA U.S. Mars, Inc. Apple, Inc., Disney U.S. U.S. Cox Enterprises Germany Altana, BMW U.S. Fidelity Investments Netherlands Heineken Int.

THE WORLD'S MOST VALUABLE BRANDS RANK/BRAND

BRAND REVENUE COMPANY ADVERTISING

1. Apple 2. Microsoft 3. Google 4. Coca-Cola 5. IBM 6. McDonald's 7. Samsung 8. Toyota 9. General Electric 10. Facebook

$182.3bln $93.3 B $61.8bln $23.1bln $92.8bln $87.8bln $187.8bln $171.1bln $129.1bln $12.1bln

$1.2bln $2.3bln $3bln $3.5bln $1.3bln $808mln $3.8bln $3.8bln - $135mln

ENDORSEMENTS $15mln $12 mln $27 mln $22 mln $58 mln $44 mln $35 mln $48 mln $50 mln $26 mln

RANK/NAME

EARNINGS FROM TOTAL REVENUE

1. Apple Inc. 2. Exxon Mobil Corp. 3. Samsung Electronics 4. Berkshire Hathaway Inc. 5. Chevron Corporation 6. Toyota Motor Corporation 7. PetroChina Co. Ltd. 8. China Mobile Limited 9. Wal-Mart Stores Inc. 10. Johnson & Johnson

$182.8bln $369.4bln $188.9bln $189.7bln $192.3bln $227.0bln $368.1bln $103.4bln $485.7bln 74.3bln

HEADQUARTERS

United States United States South Korea United States United States Japan China Hong Kong United States United States

THE WORLD’S HIGHEST PAID CEOs

INDUSTRY

RANK/EXECUTIVE NAME COMPANY

Technology Technology Technology Beverages Technology Restaurants Technology Automotive Diversified Technology

1. David M. Zaslav Discovery Communications $156,077,912 2. Charif Souki Cheniere Energy $141,949,280 3. Michael T. Fries Liberty Global $111,914,319 4. Mario J. Gabelli GAMCO Investors $88,518,411 5. Satya Nadella Microsoft $84,308,755 6. Nicholas Woodman GoPro $77,427,175 7. Gregory B. Maffei Liberty Media & Liberty Interactive $73,750,882 8. Lawrence J. Ellison Oracle $67,261,251 9. Steven M. Mollenkopf Qualcomm $60,740,592 10. David T. Hamamoto NorthStar Realty Finance $60,334,396

THE WORLD'S HIGHEST-PAID ATHLETES RANK/NAME PAY 1. Floyd Mayweather $300mln 2. Manny Pacquiao $160mln 3. Cristiano Ronaldo $79.6mln 4. Lionel Messi $73.8mln 5. Roger Federer $67mln 6. LeBron James $64.8 mln 7. Kevin Durant $54.2 mln 8. Phil Mickelson $50.8 mln 9. Tiger Woods $50.6 mln 10. Kobe Bryant $49.5 mln

Telecoms Mexico Microsoft U.S. Berkshire Hathaway U.S. LVMH France L'Oreal France Zara Spain Oracle U.S. Mining and oil Brazil H&M Sweden Diversified Hong Kong

SPORT Boxing Boxing Soccer Soccer Tennis Basketball Basketball Golf Golf Basketball

TOTAL COMPENSATION

THE 10 MOST POWERFUL BRANDS IN 2015 NO.

INDUSTRY

1. Lego Toys 2. PwC Prof. Services 3. Red Bull Beverages 4. McKinsey Prof. Services 5. Unilever Food 6. L'Oréal Cosmetics 7. Burberry Apparel 8. Rolex Apparel 9. Ferrari Automobiles 10. Nike Apparel

HEADQUARTERS BRAND STRENGTH SCORE

Denmark U.S. Austria U.S. U.K. France U.K. Switzerland Italy U.S.

JANUARY

93.4 91.8 91.1 90.1 90.1 89.7 89.7 89.7 89.6 89.6

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CHILL OUT UK

THE MINISTRY OF FUN'S SANTA SCHOOL ▶ Members of The Ministry of Fun's Santa School, dressed as Father Christmas, work out to get 'chimney-ready' as they attend a special Santa Boot Camp at the new David Lloyd Club in Newbury, England. The Ministry of Fun has been entertaining the world since 1997 in theatres, arenas, big tops and holiday attractions, but they are also the UK’s number one provider of Father Christmases. All prospective candidates are checked before they are allowed to graduate from the Ministry’s Santa school at the end of a day’s training. In the past 18 years more than 800 men – no women – have graduated from the course and gone on to work in Britain’s most famous grottoes. Santa can charge about €215 for a seven-hour day – though this depends on the length of the booking or the size of the shop, and several thousands of euros if they appear in an ad.

ARGENTINA

STRANGE VILLAGE IN ARGENTINA ▶ It may look like a scene from a

zombie apocalypse film, but this is Argentina's latest tourist attraction. Epecuen, which is 549 kilometres southwest of Buenos Aires, has been attracting tourists with its eerie atmosphere, after a flood submerged it in salt water for more than two decades. U.S.

AMAZON REVEALS NEW PRIME AIR DRONE ▶Amazon has revealed its new drone prototype, which aims to deliver packages in less than 30 minutes. The drones weigh 25 kilograms and can carry packages weighing up to 2.3 kilograms.

Originally a busy lakeside village in the 1920s, renowned for its saltwater baths, Epecuen came to a sudden end in November 1985 when the town's lake overflowed and water surged into the town. Residents and tourists were forced to evacuate and just days later their homes and buildings were covered by almost 10 metres of salt water. Now, 30 years on, the water has evaporated and former residents can walk through the ruins of what was once their town.

They fly under 122 metres and use "sense and avoid" technology to dodge potential obstacles end route to their destination. In March, the Federal Aviation Administration granted Amazon approval to fly drones for research purposes, after first revealing its plans in 2013. If regulators approve the latest version, this futuristic new service could one day become a reality.

COLOMBIA

EL ALUMBRADO ▶ Christmas lights in Medellín (El Alumbrado) or more officially the EPM Lights (Alumbrados EPM), is a traditional seasonal event in Medellín, Colombia, where the city hangs millions of Christmas lights and holds light shows and other cultural events. Since the 1990s, the main locations of the lights have been on and around the Medellín River and La Playa Avenue, although the event has expanded to include over one hundred other locations around the city. The event usually lasts from the beginning of December until the beginning of January, and the lights are designed and sponsored by the city's public utilities company.

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SWEDEN

SWEDEN'S STRAW YULE GOAT DESTROYED AGAIN ▶ An iconic Christmas straw goat that gets torched almost every year in Gävle, Sweden, was erected again at the beginning of December. Every year the massive Christmas goat (Gävlebocken) in the Slottstorget square in Gävle, central Sweden, attracts a media attention with locals dreaming up new ways to protect the 13 metre high creation. Despite their efforts, including in some years spraying the goat in anti-flammable liquid, the goat usually goes up in flames long before Swedes have opened their Christmas presents. Over its 49-year history, it has been attacked and destroyed 33 times. In 2014 it survived, but the fate of the goat is now so big that Swedish and British bookmakers now offer odds on the goat surviving the season of Advent.

U.S.

Top 10 New Year's Resolutions for Business Success ▶ The end of the year is a good time to reflect on your business's progress over the past year and plan how you want your business to develop. These top 10 New Year's resolutions are designed to help you strike a better work-life balance.

INDIA

1. Learn how to delegate and do more of it. 2. Promote your business regularly and consistently. 3. Make business planning a weekly event. 4. Learn something new. 5. Join a new business organisation or networking group. 6. Give something back to your community. 7. Put time for you on your calendar. 8. Set realistic goals. 9. Don't make do; get a new one. 10. Drop what's not working for you and move on.

RIGHT TO WEAR COLANDER ON HEAD FOR DRIVING LICENCE PHOTO ▶The U.S. Registry of Motor Vehicles (RMV) says Massachusetts woman Lindsay Miller can, as a Pastafarian (a social movement that promotes a lighthearted view of religion), wear a colan-

AUSTRALIA

CANBERRA BREAKS RECORD FOR NUMBER OF CHRISTMAS TREE LIGHTS ▶ Canberra has broken the world record for the greatest num-

PASS YOGA EXAM, GET OUT OF PRISON ▶ Prisoners in India’s Yerwada Jail can now get a three-month early release date for merely passing an exam in Yoga. Some inmates have already progressed to instructor level, while 500 other inmates will be trained in yoga and sessions will comprise asanas, dhyaan and pranayaam. “Yoga is a complete exercise that rejuvenates one from within. It has been proven that yoga brings positive thoughts and helps bring change. It is a process that connects body to the soul and undoubtedly increases efficiency and concentration,” said Bhushankumar Upadhyay, Director General Prison at the Yerawada Central Prison

ber of lights adorning an artificial Christmas tree this year. The 22-metre tree in Civic, Canberra, Australia, was strung with 518,838 LED lights to raise money to help families affected by sudden infant death syndrome. The tree was refurbished with 1.6 km of fake green fir from China and dressed with giant baubles and flashing presents. It was topped with a 1.5m star filled with 12,000 glowing bulbs. It was the centrepiece of the Christmas Lights in the City display and took a team of architects, engineers, designers and volunteers a year to put together.

der on her head on her licence photo. The RMV only allows drivers to wear hats in their pictures for a medical or religious purpose. “As a member of the Church of the Flying Spaghetti Monster, I feel delighted that my Pastafarianism has been respected by the Massachusetts RMV,” says Miller. She was represented by The American Humanist Association, which said Pastafarians believe the existence of a Flying Spaghetti Monster is “just as probable as the existence of the Christian God”.

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SKIING GUIDE 2015/16

From Novice to

CHAMPION

Whether you’re a complete novice or a ski virtuoso, regardless of whether you're going to ski to enjoy beautiful white slopes or just to be seen at the mountain peak cafés, it is essential to have the proper equipment, which will allow you to move through the snow easily while feeling comfortable

Gloves £109.99

THE NORTH FACE KELVIN GORE-TEX WOMEN’S GLOVE

The Kelvin is a technical ski mountaineering glove, ideal for tackling difficult routes in bad conditions and has a GORE-TEX membrane for maximum waterproof protection.

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any of you have no doubt already decided where you will spend your winter holidays, which in our country last from the end of December until mid-January 2016. This year there is an extremely high number of good offers available in Serbia, but also in neighbouring countries, and of course in the already well known centres of Austria, Switzerland, France, Italy etc. Regardless of which direction you head in, it is necessary to first check your ski equipment and ensure everything is in its place. In the case that you need to buy more gear, or you’ve did to show up on the ski slope with completely new gear, we have prepared the latest models and ski equipment prices for men and women, for beginners, solid skier and ski experts. Whether you belong to one of these groups of skiers or you just feel like you do, it wouldn’t be a bad idea to check out our recommendations before you head to the ski shops.

$188.49

ARC'TERYX ALPHA SV MEN’S GLOVE These high-tech Gore-Tex Pro Shell three-layers gloves use a patented technology that feels almost skin-like and are completely storm-proof.

Intermediate

Beginner

Advanced/Expert

Atomic Nomad Smoke Skis Men’s

$399.95

Line Skis - Pandora 95 Skis Women's

$599.95

Head - i.Supershape Magnum $899.95 Skis Men’s

Nordica - Elexa EVO Skis Women's

$399.95

Rossignol - Experience 88 BSLT Skis Men’s

$649.95

Rossignol - Savory 7 Skis Women's

$749.95

Socks £ 18.99 STANCE WOMEN’S SOCKS Additional elastic around the heel, ankle and arch helps to keep your socks in place no matter how long you spend on the hill.

£ 19.99 SMARTWOOL MEN'S SOCKS The most advanced walking socks on the market. Patent pending ReliaWool Technology dramatically improves wear in these tough, super comfortable merino socks.

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Intermediate

Beginner Atomic - Hawx 1.0 80 Ski Boots Men’s

Salomon - X Max 70 Ski Boots - Women's

$249.95

Advanced/Expert

Salomon - X Max 90 Ski Boots - Women's

$599.95

Atomic - Carbon 130 Ski Boots $699.95 Men’s

Nordica - NXT N3 Ski Boots Men’s

$299.95

Rossignol - Alltrack Pro 110 - Women's

$599.95

Beanies £ 18.99

LUTSEN STRIPE BEANIE WOMEN Lusten Stripe Slouch Beanie made of soft, comfortable acrylic and a fun fit is ideal for the stylish skiers.

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£ 19.99 OAKLEY BOYLERMAKER CUFF BEANIE The Boylermaker Cuff Beanie features tightgauge ribbed knit fabric and reinforced top seams for a snug fit and lasting warmth when the temperature drops.

Snowboarding There are snowboards designed for every ability level, each addressing specific rider needs. Flex, shape, length, construction, materials, design, and intended use are all important when crafting a snow-

Intermediate

Salomon - Pulse Snowboard $269.95

board for a particular ability level. Finding the right snowboard for your personal attributes, including your ability will help make your riding experience more enjoyable and help speed your progression.

Advanced

Burton - Custom Flying V Snowboard

Expert

$579.95

$969.69

Lib Tech - T.Rice Pro 2016

Goggles £ 18.99

£ 19.99 CUSTOM CROWBAR® SNOW

OAKLEY FLIGHT DECK XM PRIZM GOGGLES 2016 With a Mid-Size fit the Flight Deck XM provides the perfect fit for smaller faces.

The lens on the Crowbar has been chemically treated with a permanent F3 Anti-fog coating for exceptional performance within a variety of conditions.

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FASHION: WINTER HOLIDAY 2015/16

We don’t Know Where, but we know The time of winter holidays has arrived, and here in Serbia, with a little effort, they can last for up to a month. As usual, most people in Serbia have yet to choose their destination: whether that’s a peaceful spot at the top of a mountain; or Kopaonik and all the obligations implied by staying on this mountain, or a visit to a small town in the southern hemisphere where no one knows you, or simply staying at home and going out only when you feel like it. It has never been easy deciding where best to spend the winter holidays, regardless of whether you are alone, with a family, which significantly complicates the choice, or seeking a break for two. Ten days of skiing could certainly help. That is provided you are sporty, you love icy mountains, enjoy skiing and falling in deep snow; that you enjoy a soiree in cafés and restaurants scattered along the mountain crags and in the company of the same people you see at work throughout the year... With the best of intentions, we cannot help you decide where and how you will spend your winter break, but we can offer you a few ideas of what to wear during the cold wintry days ahead.

What PRICE:

€1,010

Giuseppe Zanotti Cossotto Shearling Boot Crafted in warm shearling and buttery-smooth leather, Giuseppe Zanotti’s Cossotto boot is a statement choice this season.

Mackage Wool Blend Coat, Sweater & AG Jeans Mackage PRICE: €610

PRICE:

€115

Tiffany Square Sunglasses

Portolano Leather Gloves

These oversized square sunglasses by Tiffany feature a twotone design with heart shaped keys applied to the temples. PRICE: €370

A classic companion for colder weather, Portolano's cashmerelined gloves come crafted in rich nappa leather that only gets softer with age.

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PRICE:

€490

Elie Tahari Quinn Reversible Wrap Drape it over your shoulders for a touch of luxurious warmth to everyday wear this season.

Patagonia Women's Sweater The perfect warmth for pretty much anything, the Patagonia Down Sweater is a lightweight, windproof, and finetuned warmth-packing machine. PRICE: €215

Tory Burch 'Argyll' Lace-Up Boot Genuine shearling lining keeps your toes nice and warm, while rich leather construction and a sturdy rubber toe let you splash through slushy puddles without a care in the world. PRICE: €370

Canada Goose - Kensington Parka Not many jackets can keep you looking great and feeling ultra-comfortable in extreme conditions. The Canada Goose Kensington Parka is definitely one of them. PRICE: €695

PRICE:

€550

Maje Marion Oversize Zig Zag Cardigan

€250

Bogner Leonie Ski Hat This timeless beanie's cuffed hem is adorned with a Bogner B metal charm, and the luxurious genuine fur pom pom can be detached.

€375

Yves Salomon Rabbit Fur Earmuffs These beautiful rabbit fur earmuffs in white are undisputedly soft and luxuriously cosy to ensure you beat the cold in utmost style this winter.

This 1980s-inspired design features a zig zag pattern complemented with a sparkly lurex weave. Pair with any casual weekend looks. PRICE:

PRICE:

Burberry Heritage Shinola Cashmere Scarf Chrono' Leather Strap Watch To create a subtle lustre and soft texture the cashmere is washed in spring water then woven on traditional looms, at a historic cashmere producing mill. PRICE:

€473

The 84-piece, Americanmade quartz movement powers the time, date and chronograph subdials, while a double-curved sapphire crystal PRICE: face protects the €750 clean display.

D EJ C A ENM UB AE RR Y

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FASHION: MEN’S WINTER HOLIDAY TRENDS

Relaxed, Active Festive

Holiday

Regardless of whether you decide to spend the evenings of Christmas and New Year in a formal suit, or in the company of close friends, in a relaxed and friendly home atmosphere, these holidays last a long time in our country, so in these days of rest and relaxation you’ll certainly want to get out in nature and devote more time to friends and family on a trip or one of many ski slopes. Whichever option you choose, our advice is to make the most of these festive days with an active holiday, in a relaxed atmosphere and by recharging your batteries in preparation for what awaits you upon your return to work. Fashion trends change constantly, but the fact remains that a casual outfit is always at the top of the lists of all trends when it comes to holidays, relaxation or heading out into nature. If we add to this the activities offered by the winter period and winter sports, then our enjoyment in the holidays is complete.

PRICE:

$17.99

Reversible Faux Leather Belt A sleek faux-leather belt reverses from rich brown to classic black for easy, everyday versatility.

A.P.C. Navy Wool Overshirt Crafted from a felted wool-blend this overshirt from A.P.C. is just what you need going into the colder months and invest in a winter warmer that has bags of sophisticated style. PRICE: £190 PRICE:

$1,230

Moncler 'Chauvon' Quilted Down Kenzo Check Pattern Wool Jacket & Silk Scarf An exploded check pattern lends rich color to a soft wool-and-silk blend scarf edged in fringe. PRICE: $227

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A tall collar and insulated hood offer added protection against frigid temperatures.

PRICE:

Paul Smith Stripped Scarf

£140

Our Legacy Shawl Zip Denim Shirt This lightweight Our Legacy shirt obtains a raw feel in a unique hemp and cotton-blend. Pair it with heavy wool trousers for an eclectic textural contrast.

£65

The Paul Smith stripped scarf is expertly crafted with soft wool and multistriped to keep you warm whilst providing a refined touch of style to your outfit.

'Aristocrat Opera' Slip-On

PRICE:

$74.95

Our most popular style with a buttery soft, full-grain American leather upper, full leather lining over a padded insole and a leather outsole. Hand-turned construction. Also available in an open-back scuff style.

PRICE:

£310

Canada Goose 'Banff' Slim Fit Parka

Cutler and Gross Yellow Metal Sunglasses

Canada Goose Arctic-Tech fabric offers high performance, soft hand, and durability, while fleece-lined hand pockets and recessed, heavyduty, flexible rib-knit cuffs ensure warmth and comfort. PRICE: $845

These proportionally designed sunglasses have an iconic frame. The metal bridge and vintage styling will finish any look with a dose of timeless style.

Oliver Spencer Melange Wool Knit Jumper A slim, streamlined cut and extra fine wool construction bring Oliver Spencer’s renowned quality into this classic knit jumper. PRICE: £165

PRICE:

£725

Miansai 'M24' Round Leather Strap Watch The clean, minimalistic silhouette of this round watch pairs well with the one-handed dial with smooth Italian leather forms the comfortable, alloccasion strap. PRICE: €185

Rick Owens Geobasket Leather Trainers Kept entirely tone-ontone and showcasing an unusually oversized tongue, these shoes will bring a unique edge to street-style.

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PROFILE

HR as a Business Partner Being HR manager in a company such as DDOR Novi Sad is not a simple or easy job, but it is exciting and challenging, particularly now, when we are building up a multidisciplinary and proactive HR approach

TATJANA RAKOČEVIĆ Assistant General Director for Finance, Asset Management and Human Resources at DDOR Novi Sad

fter several years building my professional career in the sphere of finances at DDOR Novi Sad, I voyaged from the position of Assistant Director of Department at the CFO Office into the waters of HR in the second half of 2011. Every new challenge you face in life, even if you refuse to admit it openly, places before you the dilemma of whether to stay in the safety of your comfort zone, which you know almost everything about and where you can perform tasks in a routine way, or whether to step out of that cosy environment, start something new and attain a higher level of personal and professional development. Apart from my first three years of work experience, which I spent at the Novi Sad Department of the Subotica Faculty of Economics as a scientific research and teaching assistant, my further professional engagement has been devoted entirely to DDOR Novi Sad, which means slightly over 20 years of an interesting and enjoyable experience. Today DDOR Novi Sad is part of the Unipol Group, a leader in non-life insur82 |

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ance in Italy, with written premiums of nine billion euros and 14,500 employees. In comparison, Serbia’s entire insurance sector employs 11,200 people. The function of human resources management is a challenge and a source of ‘inexhaustible’ possibilities at every company, and especially a company which brings together old and new, traditional and modern, domestic and foreign. People, as the potential of an organisation, represent its biggest driving force and creative power. People implement changes, create additional value and increase the effectiveness of operations, which makes them the initiators of future achievements within the organisation.

The selection of talent in a “knowledge intensive industry” like insurance is condicio sine qua non if you are aiming to make your company a leader of development and innovation The HR function at DDOR Novi Sad is currently in the final stages of that process, aiming to initiate the development and transformation stages – building up so-called strategic HR – in the coming period. The idea is well known in the HR sphere and is a continuation of the innovations of the re-

nowned Dave Ulrich. It essentially involves shifting the focus and tasks within HR from administrative and back-office jobs, to a multidisciplinary and proactive approach, which transforms HR into a business partner. I believe that my previous work experience is very useful for the realisation of such ideas. If you ask me which segments of the HR cycle I consider as being the most relevant for the company, I must say that it is important to develop all segments, particularly in larger and more complex companies. That said, however, I would single out: proper selection of personnel, i.e. talents; employee training and education, including tutorship; clear definition of goals and familiarisation with company strategy. The selection of talent in a “knowledge intensive industry” like insurance is condicio sine qua non if you are aiming to make your company a leader of development and innovation. Being HR manager in a company like DDOR Novi Sad is neither simple nor easy, but at the same time it is an enjoyable and, above all, interesting job. The dynamic environment and the development of the company itself place challenges before you on a daily basis. Motivating people to do their best and attain maximum results, while concurrently making them feel content and happy, represents my greatest satisfaction and personal goal. 

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