InFocus Slovenia 2017 web

Slovenia 2017

GREEN COUNTRY OF DIVERSITY AND FEELINGS ZDRAVKO POČIVALŠEK

Minister of Economic Development and Technology

ZORAN JANKOVIĆ Mayor of Ljubljana

GORAN KNEŽEVIĆ

The Republic of Serbia's Economy Minister

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FOREST, FOREST

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Exactly one half of the Slovenian territory is covered by forests, thus making it one of the greenest destinations in the world.

GOING DEEPER UNDERGROUND There are over 10,000 caves in Slovenia. The best known, Postojna, runs for around 20km. That’s a lot of time in the dark. It is the most-visited cave in Europe.

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In Slovenia, there are so many vineyards that there is one vineyard on every 70 people!

It is one of the highest concentrations of vineyards per capita in the world.

05 SKI JUMP NATION The fact that Slovenia is doing great in ski jump is well known, but there is also the greatest ski jump in the world in Slovenia, the famous Planica.

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WINE EVERYWHERE!

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CLARO QUE SÍ!

The Slovenian Internet extension domain is not .sl (since it was already taken by Sierra Leone) but .si. Extension .si is often used for Spanish-speaking web sites because it means – “yes”!

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THE BEAR COUNTRY

Slovenia also has one of the greatest populations of brown bears in the world per capita, and there are more than 400 wild brown bears roaming around!

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FAIRY TALE LIVES HERE The film “The Chronicles of Narnia: Prince Caspian” was filmed in Soča Valley in Slovenia.

Fairy tale landscape, right?

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HIKING IS THE KING

Slovenia has as much as 7.000km of marked hiking trails and also 165 huts and shelters for hikers!

Slovenians are so in love with mountaineering that the first married couple to climb Mt Everest was Slovenian!

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INTERVIEW

ZDRAVKO POČIVALŠEK

Photo: STA Daniel Novakovič

Minister of Economic Development and Technology

WE HAVE GOOD REASONS TO BE OPTIMISTIC Slovenia is optimistic about its BDP growth and at the same time works on making its business environment even more attractive. The new investment act has to accelerate investment activity and maintain Slovenia competitive with other nearby countries

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lovenia is well integrated into European economies, as more than 75% of the trade is realized with the EU countries. Therefore it expects acceleration of its economy, says Zdravko Počivalšek, Minister of Economic Development and Technology in an interview for D&C. „According to forecasts by international institutions, prospects for the euro area are good. GDP growth in the euro area will be between 1,5% and 1,9% in 2017-2019.

Among Slovenia’s main trading partners outside the euro area, favourable economic growth is expected to continue in Croatia, while economic activity in Russia will rebound after last year’s stagnation,

particularly owing to the higher prices of commodities“ says our interlocutor.

The forecast for the Slovenian economy for the years to come is also promising.

Slovenia’s economy continues to grow at a strong pace in 2017. 4,7% is a forecast of economic growth for Slovenia for 2017. Export is traditionally the driving force behind GDP growth in Slovenia. The projected growth of exports is encouraging, namely, 8.9% for 2017. „Let me underline that this is a rate that ranks Slovenia at the very top of the EU Member States. The accelerated export growth is driven not only by stronger growth in foreign demand but also by the improvement of export performance,

which has been especially pronounced this year. Domestic demand will remain a significant factor of growth in 2017-2019.

Slovenia has the second highest annual growth in industrial production in the EU - which increased by 8.6% in September 2017 compared to last September. The level of employment will be high. In 20172019 wage growth will remain moderate and will not exceed productivity growth.

Inflation will hover around 2% in the next few years“, says Počivalšek.

How much can a possible growth of ECB interest rates affect the conditions for doing business and company lending? ― For sure with the euro zone in recovery, at some stage the ECB will tighten monetary conditions. But it now looks like the first move upwards in official ECB interest rates will not come until 2019 at the earliest. How quickly interest rates will rise after that will depend on how strongly the euro zone is growing and that will also determine the conditions for doing business and company lending afterwards.

The central banks with a change in interest rates affect not only the financial markets, but also the consumption in the economy, the labor market is operating in inflation. Some short-term effects, like the impact of monetary policy on employment and spending, usually last a year or two, and on the other hand, it can affect both the short-term and the long-term inflation rate.

However let's wait first on the ECB move and then see what kind of impacts can happen.

Which external risks do you consider the most important in terms of the Slo-

venian economy? ― External risks for Slovenia are mainly related to the happening in the EU, especially in light of political tensions, which could be the outcome of the Brexit negotiations, the Catalonia - Spain issue, elections in Germany and the EU - Russia relationship.

OUR TASK IS TO CREATE STABLE CONDITIONS FOR MERCATOR, SO THAT REGARDLESS OF THE PROBLEMS OF ITS OWNER AGROKOR, MERCATOR CAN DEVELOP NORMALLY FURTHER. HOWEVER, THE STATE HAS NO INTEREST IN RE-ASSUMING THE COMPANY In the same context, what is your view of various available solutions for the Agrokor issue in the domicile Slovenian market, and for Mercator's position in the Serbian market? ― Our task is to create stable conditions for Mercator, so that regardless of the problems of its owner Agrokor, Mercator can develop normally further. We made the first step with the adoption of Act Setting Conditions for the Appointment of Associate Members of Management Boards in Systemically Important Companies in the Republic of Slovenia protect-

ing Mercator from possible depletion. We want Mercator to get a stable owner, who would carry out financial and business restructuring, thus allowing Mercator to be competitive in the long run. In doing so, I must point out that the state has no interest in re-assuming Mercator.

How much are regional governments capable of using their measures to mitigate negative effects caused by the problems in Agrokor, and how vibrant is the communication between the regional governments in regard to this topic? ― I am in regular communication with my fellow ministers from the countries of the region. We all want the rehabilitation of Agrokor to be as successful as possible and that Croatia, which is an important market for Slovenia, would not fall into the economic crisis. At the same time, we are working with our counterparts in the region to minimize the export of the crisis from Croatia. Country actions are different. I think that we have been successful so far.

How would you rate the current economic cooperation between Serbia and Slovenia? ― Slovenia and Serbia are traditionally good trading partners with excellent cooperation at all levels. For Slovenia, Serbia is an important economic partner. Data show us that trade in goods, trade in services and mutual investment are growing.

But as always there is a room for further improvement.

Why, do you think, various initiatives for joint appearance in third markets failed to yield any results as yet?

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SLOVENIA AND SERBIA ARE TRADITIONALLY GOOD TRADING PARTNERS WITH EXCELLENT COOPERATION AT ALL LEVELS. BUT AS ALWAYS THERE IS A ROOM FOR FURTHER IMPROVEMENT SLOVENIA 2017

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Photo: STA Nebojša Tejić

― In my opinion joint appearance in third markets could be a great iniciative and the win-win situation for all countries involved. But this requires a lot of engagement from all parties.

Slovenia has made an important step in this direction and prepared Smart Specialisation Strategy, which is a platform for concentrating development investments in areas where Slovenia has the critical mass of knowledge, capacities and competences and where there is innovation potential for placing Slovenia witin global markets. Strategy set 9 priority areas – partnerships (smart cities and communities, smart buildings and homes, including wood chain, networks for the transition to circular economy, sustainable food production, sustainable tourism, factories of the future, health – medicine, mobility and development of materials as end products). The business sector has been linked to the academic sphere. Those partnerships have an international dimension and are expected to start operating in foreign markets. That could be a good base for joint appearance in third markets.

You have said recently that Slovenia would like to become the main logistics hub on the new Silk Road. How did you interpret then the statement given by the president of the European Commission about EU's policy towards Chinese investments in that context? ― Logistics is very important for Slovenia.

This has also been recognized by Slovenian Government and the Logistics Hub has been included as one of the three priorities in promoting investment under The Program for Internationalization 20152020. We already perceive the positioning of new logistics centres in Slovenia.

Slovenia is an ideal springboard for doing business in the near-by region. We're also working on the 2nd railroad track to Luka Koper.

Moreover, Port of Koper offers the shortest maritime route from Asia to central Europe that is why may present very important logistic hub in the Belt & Road Initiative (BRI). Moreover, the EU clearly welcomes the opportunities created by the Belt & Road initiative, bearing in mind that improved connectivity will help manufacturers and businesses of all sizes to lower transport costs and open new markets. But of course the opportunities must be equal

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SLOVENIA HAS PREPARED A PLATFORM FOR CONCENTRATING DEVELOPMENT INVESTMENTS IN AREAS WHERE IT HAS THE POTENTIAL FOR BECOMING A PLAYER WITHIN GLOBAL MARKETS. THAT COULD BE A GOOD BASE FOR JOINT APPEARANCE IN THIRD MARKETS to all, European companies must have a fair chance of being able to compete on the same terms as Chinese counterparts.

The European Union is China's biggest trading partner. China is the EU's second largest. China is also an important trading partner for Slovenia, with the trade exchange of more than 1billion EU last year.

As in Junker’s speech in June this year EU he stressed the importance of the Com-

prehensive Agreement on Investment which is currently being negotiated and which will provide a reciprocal investment relationship in the mutual interest of EU and China. Slovenia clearly follows the agenda of the EU. At the moment, Slovenia has more investment in China than vice versa.

You have announced Slovenia providing investment subsidies. Which practices were your role models in this, and were Serbian subsidy practices one of them? ― When we were preparing the new act on investment incentives we wanted to introduce those measurements that would most benefit companies – subsidies, loans and land purchase at the price which is lower than market. The law also provides conditions for the implementation of strategic investments. All measurements in Slovenia must be carried out according to the EU rules of state aid. This new Act will introduce new incentives available to local and foreign investors, in addition to current ones.

We didn’t follow any role models within the region, but we based the new law on our vision how to structure it that will serve the needs of investors.

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INTERVIEW

INVESTORS RECOGNIZE ADVANTAGES OF INVESTING IN SERBIA

Today, Serbia is a politically stable country, and the loudest advocate of peace in the region which is a signal that all investors, including the Slovenian ones, have understood well. In the first seven months of this year alone, we managed to attract more foreign investors than all Western Balkan countries put together. The companies that already operate in our country have felt the effects of the implemented reforms

GORAN KNEŽEVIĆ

The Republic of Serbia's Economy Minister 8

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erbia and Slovenia have good economic relations that have been growing for years, and this growth is reflected in the increasing number of investments by Slovenian companies in Serbia, and the burgeoning external trade between the two countries.

At the same time, this progress is a part of a bigger picture, i.e. Serbia's advancement in implementation of reforms and improvement of the overall investment environment – says the Republic of Serbia's Economy Minister, Goran Knežević. In talking to the minister, we have touched upoin topics like the efficiency of the current mechanisms for attracting investments, the Ministry's regulatory activities, and opportunities for improving the Slovenian-Serbian economic collaboration.

Following the presentation of this year's White Book by the FIC and the rankings on the Doing Business list, what would you say are the main messages in terms of the improved business climate? ― The most important message is definitely the one that the Serbian government has done a good job in the last few years and that we are on a good path to continue doing so. We are now collecting the fruits of the comprehensive reforms that we have announced and implemented from the term of the first government helmed by now Serbian President, Aleksandar Vucic until today. Serbia already offers the best investment conditions in the region, and in the first seven months of this year, we attracted more foreign investors than all Western Balkan countries put together. Foreign investors operating in our country, like the World Bank, have recognized these changes in practice.

It's a huge recognition for us when the Foreign Investors Council (FIC) says that our business climate is far better than it was 10 years ago. Serbia has recently received another recognitio, this time around from the World Bank which declared us the the best country in Southeast Europe according to the reform criteria, which made our country even more attractive

WE ARE NOW COLLECTING THE FRUITS OF THE COMPREHENSIVE REFORMS THAT WE HAVE ANNOUNCED AND IMPLEMENTED FROM THE TERM OF THE FIRST GOVERNMENT HELMED BY NOW SERBIAN PRESIDENT, ALEKSANDAR VUCIC UNTIL TODAY to investors. In the space of three years, we improved our rankings on the Doing Business list by 48 positions. Investors see and recognize all fo thisll. We also want to expedite the reform processes in order to get the job done. We have implemented a third of the recommendations from the last year's White Book written by the FIC, and our goal is to implemented at least half of the recommendations from this year's book. We made it to the top 50 countries on the Doing Business list, but we will not be satisfied until we make it to the first 30. We are not stopping now!

What kind of quality improvements will the adoption of the amendments to the four laws that regulate the segments that your Ministry covers – i.e. company law, bankruptcy law, law on Serbian Export and Credit Insurance Agency, and law on technical requirements for products and quality assessment – bring? ― Adoption of these four laws is a continuation of the reform processes we have talked about, as amendments to these laws will contribute to the further improvement of the business climate. In particular, the new laws will bring us better and simpler bankruptcy procedures, improve the current position of small shareholders, introduce e-business services instead of doing business on paper, detailed regulation of enforced liquidation, further compliance with the EU regulations concerning the cross-border merger of companies' capital companies, and provision of more services for export-oriented companies.

Generally speaking, our level of compliance with the European regulation will be even higher.

What do you think are the main lessons for your Ministry following the analysis of the effects of state subsidies for foreign investors in processing industry? ― The analysis of the effects of subsidies given to foreign and domicile investments since the adoption of the Investment Law, which was conducted in November, has shown good results. Of the 39 investment projects from 2016 and 2017, as many as 36 were implemented in the manufacturing industry, out of which 32 projects were realized by foreign investors.

The lesson that we have learned is that

ADVOCATE OF PEACE

SERBIA IS A POLITICALLY STABLE COUNTRY, AND THE LOUDEST ADVOCATE OF PEACE IN THE REGION, WHICH IS VERY IMPORTANT INVESTORS WHEN THEY ARE DECIDING WHERE TO INVEST MONEY SLOVENIA 2017

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that we have good political relations with Slovenia, and for this country to continuously support Serbia on our path to the EU membership, as this is the basis of good economic relations.

How much did Serbian investments in Slovenia contribute to improved quality of the mutual relations? ― Of course, investments from both sides have contributed to a better quality of the mutual relations. In the past period, Serbian investors have had several major investments in Slovenia. MK Group bought the Kempinski hotel, Delta has invested in the construction of the Intercontinental Hotel, and Nectar bought Fruktal ... Joint production, where the two companies could jointly export to third markets, also creates great opportunities to connect our business communities.

we need to focus even more on the processing industry, the implementation of high-tech solutions, and on the finished products industry. The processing industry engages a significant number of domestic suppliers or subcontractors who process raw materials. Also, most of the products manufactured by the processing sector are exported, while the share that this economic segment has in the GDP is between 1.5 and 1.6 percent, and the return on investment is 26 months.

What will be the cumulative value of FDIs in Serbia at the end of 2017? ― According to results from the first half of this year, it is clear that the FDI influx will exceed the last year's value. I expect that this year we will have more than two billion euros worth of FDIs. The result we have achieved did not come out nowhere, but is a consequence of the commitment shown by all governments since 2013.

Today, Serbia is a politically stable country, and the loudest advocate of peace in the region, which is very important investors when they are deciding where to invest money. Due to the fact that Prime Minister Vucic's implemented painful, but necessary reforms, Serbia has become the best place to invest out of all Western Balkan countries. We are now continuing to attract investors by doing several things at once – having a politically stable environment, improving the business en-

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IT IS IN THE BEST INTEREST OF BOTH COUNTRIES TO IMPROVE COOPERATION IN THE SME SECTOR, AGAIN DUE TO THE JOINT APPEARANCE IN THE THIRD MARKETS vironment, and implementing an incentive programme. We will continue to work in all directions, as this is a way to provide a better life for our citizens.

How would you rate the quality of the economic cooperation between Slovenia and Serbia, and how can this collaboration improve? ― The economic relations between our two countries are good, and have been growing for years now. Slovenia is one of the 10 largest foreign investors in Serbia.

Slovenia has made close to 400 investments which value exceeds one billion euros, and around 1,400 Slovenian companies employ close to 25,000 of our citizens. Slovenia is also an important external trade partner, and last year, our trade broke the record and reached almost one billion euros, i.e. 910.8 million euros to be precise. It is also very important for us

What are the main obstacles to even bigger cooperation between Serbian and Slovenian economies in terms of their appearance on third markets? ― There should be any obstacles, which is the reason why we signed a Memorandum of Understanding in 2013. I believe there is more room for better implementation of the things we agreed on with the view of improving the cooperation between our two countries in terms of exporting to third markets.

How can the two countries further improve their institutional framework for cooperation? ― It is in the best interest of both countries to improve cooperation in the SME sector, again due to the joint appearance in the third markets. We have enough room to cooperate within the framework of the cooperation between CEE countries and China. In terms of improving the framework of economic cooperation, I am convinced this should be done by our Mixed Commission for Economic Cooperation. The Mixed Commission was formed as a result of frequent visits by high level delegations from both countries. The aim of the Commission is to improve the institutional / legal framework and to encourage trade. There is also room for improvement in joint sessions of the two governments, a traditional forum in Bled etc. These are all excellent opportunities that both countries should not miss out on.

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INTERVIEW

GOOD COOPERATION AND EXCHANGE OF EXPERIENCES

Photo: Uroš Hočevar

Apart from Chicago, we are the second 'twin city' with Belgrade, and we are very proud of that fact

ZORAN JANKOVIĆ Mayor of Ljubljana

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he cooperation between Slovenia and Serbia is still very good, but it could be even better. If we look at the economy, cooperation flows in both directions, which is very good. It is also important that political relations between the two countries are very sound.

You are a big advocate of the Western Balkan countries joining the EU. From today's perspective, how big of a chance do the countries that made up the former Yugoslavia have in all becoming EU members? ― I always say that all countries that made up the ex-Yugoslavia, which are not EU members yet, should become that, while Bosnia and Herzegovina should join the EU but through a decree.

If we want future and progress in this area, it is necessary to connect. EU offers many good foundations on which to build that are important for stability and faster

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development. Granted, not even the EU is all milk and honey, but it's a lot harder if you are outside of it.

The current situation is that all EU member states are not developing at the same pace, which is not good, because we cannot have Europe running at two different speeds. These countries, which are low on population and have a small

MERCATOR CAME FIRST TO SERBIA, AND ON THE OTHER SIDE, WE HAVE A FIVE-STAR HOTEL INTERCONTINENTAL IN LJUBLJANA, WHICH WAS DELTA HOLDING’S INVESTMENT

domestic product, would have to create a bloc so that their efforts would carry more weight. I have repeatedly pointed out that Serbia should already in the EU because I cannot see why is Serbia considered worse than, let's say, Bulgaria, which is an EU member. I believe that Serbia should enter the EU as soon as possible; in the next four years the latest.

How would that affect the cooperation between Slovenia and Serbia? ― Mercator came first to Serbia, followed

by Gorenje, and on the other side, we have a five-star hotel Intercontinental in Ljubljana, which was Delta Holding’s investment. Jevrosimović (owner of ComTrade) bought Hermes in Slovenia, and MK Group also came here by acquiring the Kempinski Hotel in Portorož and a stake in Gorenjska Bank. Nectar became owner of Fructal, while Dragan Šolak bought Telemach and a golf course in Bled ...

Similarly, Ljubljana and Belgrade are also cooperating quite well and are sharing their experiences. Apart from Chicago, we are the second 'twin city' with Belgrade, and we are very proud of that fact. Belgrade has been present in Ljubljana for several years now through its tourist community, and next year, Ljubljana will have its own special days in Belgrade with a lot on offer.

Mutual respect is also shown in acts such as erecting a monument in honour of Vuk Stefanović Karadžić in Ljubljana. Our city constantly shares its good practices and cooperates with cities and countries all over the world.

Serbia is often criticized for wanting to sit on two chairs, so to speak, and for maintaining good relations with Moscow. In a recent interview you said that European cities wanted to lead a somewhat different policy than the EU administration especially when it came to Russia. Whis is this such an important topic for European cities? ― Russia is very important for Europe politically and economically, as it has a strong impact on developments in Europe. President Vladimir Putin has all of the characteristics of a strong leader and, in my opinion, is currently one of the most influential politicians in the world. In early November, I received from him, in the Kremlin, a state decoration called the Order of Friendship of which I am very proud and which means a lot to me. Recently, the mayors of EU capitals prepared the so-called Ljubljana Declaration in which we publicly advocate cooperation with Moscow.

Cities must interconnect and share experiences in order to make significant progress towards preserving our planet for future generations. This was the underlying idea of the international three-day conference called Eurocities, which was held in Ljubljana on the topic of circular economy. There were more than 600 participants from 120 European countries, including 60 mayors and deputy mayors.

What does it mean to you that Ljubljana is a European city? What kind of opportunities this creates for you as the city's mayor? ― I have always said that, to me, Ljubljana is the most beautiful city in the world.

Eleven years ago, Ljubljana was a sleeping beauty and a city that, generally speaking, was not very well positioned. Today, this is a city that is known not only in Europe but throughout the world. After we became European champions last year, Ljubljana also won the title of the European Green Capital 2016. We became recognizable in the world, and thus interesting to many, which has generated positive effects in

declare you the best, than it really means something and it boosts the trust in what the city can do for its citizens. Everything that we achieved in these 11 years is the result of the excellent team work by my associates, who are all experts in their respective fields. Every day, all of us, in the so-called big city family which includes management, public companies and institutions and which numbers more than 12,000 people, are doing our best to provide the best service to our citizens.

With a good vision, clearly set goals, perseverance, dedicated work, belief in dreams and the best team - everything is possible. And every success is an incentive for further progress.

MANY PROJECTS AND PLANS ARE A PART OF A LARGER PICTURE AND OTHER CITIES HAVE TO BE TAKEN INTO ACCOUNT

Is there in Slovenia a phenomenon called 'Ljubljanization' similar to 'Belgradization' Serbia, or is the regional development more balanced here? ― Since both cities, Ljubljana and Belgrade, are the capitals of their respective countries, it is only logical that some functions, activities, services, events and the like are concentrated in these cities. Ljubljana is also part of a larger area called the Ljubljana Urban Region, which comprises of 26 municipalities with which we participate in several areas. In all of the voting sessions, we have never disagreed on anything and have not had a single vote against. Many projects and plans are a part of a larger picture and other cities have to be taken into account. Take, for example, the area of mobility and traffic – there are about 180,000 workers in Ljubljana, and close to 120,000 people use their vehicles to travel to Ljubljana for work or to go to school. If we want to limit the number of cars in the city and thus improve the

many aspects - from the number of foreign tourists growing year-on- year to heightened interest from both domestic and foreign investors.

Ljubljana has become a role model in green governance, and many cities are urging us to share good practices with them. The European Commission recognized Ljubljana as a city which made the biggest changes in the right direction in the shortest period time, and, on the back of that, we won numerous other international awards. And when those international experts with a wealth of experience

SHARING

OUR CITY CONSTANTLY SHARES ITS GOOD PRACTICES AND COOPERATES WITH CITIES AND COUNTRIES ALL OVER THE WORLD SLOVENIA 2017

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Photo: Uroš Hočevar

How do Slovenia and Ljubljana view the capital coming from Serbia? ― Every investment is welcome regardless from where the investor comes from, providing it is in the best interest of our citizens and that it promotes development of Ljubljana. As I have already mentioned, Delta Holding has recently opened the first five-star Intercontinental Hotel in Ljubljana and, according to the information that I have, the hotel is doing very well. New investments are evidence that overall progress, with over 1,800 implemented city projects in the last decade, made the city more attractive to foreign investors, which also contributes to economic growth and development.

quality of life in Ljubljana, we must offer alternatives to people. This means that, in cooperation with other cities, we need to ensure efficient public transport, build more parking facilities in the city's outskirts under the P + R system (park and ride), and promote car sharing formats like t. i. car sharing and car pooling in order to avoid having just one person using a car and thus polluting the environment. We are successfully dealing with this in Ljubljana.

Promoting sustainable mobility is just one area in which we have achieved a lot in recent years. Ljubljana has demonstrated that it is possible to realize the vision which we outlined in 2007 – The 2025 Vision Ljubljana - and which we have been successfully implementing all this time. Also, the good practices in Ljubljana are transferred to other cities in Slovenia, which one might called "Ljubljanization", but in a positive conotation.

How helpful are EU funds in this, and how much does Slovenian politics contribute? ― We have ambitious goals and we need funds for their realization, some of which we have been successfully withdrawing from European funds. We have recently submitted sustainable mobility and urban reconstruction projects at a public call for utilization of funds of the Integrated Ter-

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WE ALSO INVEST A LOT OF EFFORT INTO LONGTERM DEVELOPMENT STRATEGIES, URBAN PLANNING AND DOCUMENTATION PREPARATION ritorial Investment Mechanism, and we signed a contract under the framework of the largest Slovenian cohesion project for wastewater collection and treatment in the wider area of Ljubljana. All in all, this amounted to a total of EUR 80 million from European funds, which Ljubljana is eligible to receive. The amount is almost the same as the one granted to us in the previous financial perspective.

We also invest a lot of effort into longterm development strategies, urban planning and documentation preparation, which facilitate successful use of funds and the implementation of comprehensive projects, mostly in the fields of entrepreneurship promotion and multimodal urban mobility, adaptation to climate change, investments in the water supply sector, and protection and regeneration of biodiversity.

You have caused quite a stir with your statement about Agrokor's daughter companies from Serbia suffering the same destiny as their mother company. What is the most important lesson that the entire region can learn from this case? ― Unfortunately, it looks like there is no good solution for Agrokor. If the company goes bankrupt next year, which is likely to happen, then the end will be bad.

The best solution would be to convert 50 percent of all bank and supplier receivables into equity and to recapitalize Agrokor. For example, banks can convert four billion euros of loans into two billion euros worth of capital and thus acquire an ownership stake in Agrokor, as well as lower interest rates by two to three percent on other liabilities. This is the only way to deal with the problem, but, unfortunately, I think there is a small chance of that happening.

I think that parts of Agrokor will either declare bankruptcy or be sold which is the worst option. It would be better if Agrokor was sold as a whole system. I'm sorry that Agrokor has to go through such hardship, and I'm sorry for the people who work there and are scared of losing their jobs. I know Ivica Todorić as a diligent man, who has essentially set up a good system in Agrokor and got involved in food production, water supply, and retail. So, what went wrong?

In my opinion, he went too far in his wish to further develop the company, to constantly increase the turnover, and to be the best in each of these economic segments. He took too many loans at exhuberant interest rates and the rest is history.

Unfortunately!

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INTERVIEW

H.E. VLADIMIR GASPARIČ Slovenian Ambassador to Serbia

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Slovenia has a strategic interest in the EU expanding to include the Western Balkans, and thinks that the Berlin Process is exceptionally important for accomplishing that goal. Through concrete expert assistance we have been supporting Serbia's European integration process, and in bilateral sense, we have been improving our relations to mutual satisfaction

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lovenia and Serbia have an excellent political and economic cooperation, and it gives us a great pleasure to say that the growing economic cooperation is a crowning achievement of these good relations – says H.E. Mr. Vladimir Gasparič, Slovenian Ambassador to Serbia, in his interview for Diplomacy&Commerce magazine. We are also talking to Mr. Gasparič about the current European issues, regional economic challenges, and bilateral cooperation between Slovenia and Serbia.

To what extent can the latest developmetns in Spain jeopardize Europe's unity? ― As an observer from Belgrade, I think I can say that the issue of Catalan independence and referendum did not jeopardize Europe's unity. In a sense, it might have even made it stronger. However, this story is probably not finished yet, and there will be a dilemma what is more important - adherance to the state / constitutional laws and country's integrity, or respecting human rights? Obviously, in some cases, there is this dilemma, since both of these categories prominently feature in the basic EU values.

Do you think that the old saying of „when Germany or France sneeze, smaller European countries get the flu“ is still relevant, or are they, thanks to their smaller size, protected from big turbulences? ― Germany and France are definitely strong driving forces behind the European Union, and developments around them cause consequences for others. Not only in the EU but also outside of it. A typical example of this was the economic crisis that moved from Germany and France to Slovenia, since EU member states are the

biggest trade partners of Slovenia (around 70%). Perhaps we could draw similar parallels to the case of a migrant crisis (the so-called Balkan Route). I would say that all European countries feel the turbulence that happens, for instance, in Germany and France. We are all members of the same family, and sometimes unpleasant things happen to good families.

Do you think that the Western Balkan countries are utilizing the Berlin Process and the subsequent incentives well, in the light of the latest statements by the president of the European Commission, Jean-Claude Juncker?

ACCORDING TO OFFICIAL ESTIMATES FROM BOTH SIDES, THE RELATIONS BETWEEN SERBIA AND SLOVENIA ARE AN EXCELLENT EXAMPLE OF COOPERATION IN THE REGION ― The Western Balkan countries are very interested in the proper utilization of the Berlin Process, especially those aspects related to economic components - infrastructure construction, etc. Such projects represent an important element of the connection between the Western Balkan states which is very significant.

Sometimes we are under the impression that Brussels or Berlin are not sufficiently aware of the significance of the Berlin

Process, and that its initiatives are lost at certain moments. In the Western Balkans, there is no other such initiative of the same signficance as the Berlin Process, and there should be strong advocates at all levels for the Process to continue to grow. The statements made by the president of the European Commission have a politically positive significance for the Western Balkans. However, we should keep in mind that his statements relate to the ten-year period in the future, and it is difficult to predict what will happen during that time in the Western Balkans, the EU and the world. For Serbia itself, Mr. Juncker's statement regarding the potential enlargement date is a positive message that Serbian officials have always asked for.

How do you view the initiative about infrastructural and other networking in the region from the Slovenian perspective? ― Generally speaking, initiatives relating to cooperation and networking in the region, especially in the field of infrastructure, are welcome, because they bring multifaceted positive economic effects.

Establishing appropriate infrastructure and links enables easier and faster flow of people, goods and services. It also significantly reduces the price of transport.

In Slovenia we are also aware of the importance of infrastructural connectivity above all the road one - and we have built a network of motorways that connect Slovenia in the direction of the West-East and North-South. There are also serious plans for the construction and modernization of the ferry (freight) line (second route) between the port of Koper and the continental part of our country.

PROJECTS

SLOVENIA WANTS TO INCLUDE TOP SERBIAN IT EXPERTS IN ITS PROJECTS, AND TO WORK WITH THEM ON JOINT PROJECTS IN SERBIA AND SLOVENIA SLOVENIA 2017

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The case of Agrokor also demonstrates the dangers of regional networking.

What kind of consenquences is the resolution of this problem going to have on all of our economies? ― The issue with Agrokor, which encompasses several countries from the region (Croatia, Serbia, Bosnia and Herzegovina, Montenegro and Slovenia), is certainly a negative example of economic integration that was not based on sound foundation. Regarding the serious danger and the possibility of significant damage in the event of bankruptcy of the Croatian concern, as well as an inadequate response from the competent authorities in Croatia, representatives of the mentioned regional countries have agreed on certain joint measures in order to reduce the potential damage to the bank accounts of Agrokor's companies outside Croatia. I sincerely hope that the Croatian company will restructure as soon as possible, and sell its companies in the region, with the aim of minimizing economic damage in the regional countries.

How much do bilateral relations between Serbia and Slovenia contribute to stronger stability and good relations in the region? ― According to official estimates from both sides, the relations between Serbia and Slovenia are an excellent example of cooperation in the region. For Slovenia, stability in the region is extremely important, because we all remember how this region looks when it's unstable. Slovenia is strategically interested in the EU enlarging to include the Western Balkans. We are not only talking about this but also specifically helping through participation of numerous Slovenian experts in projects that bring Serbia closer to European values, in the areas such as the rule of law, state administration, economic development, etc.

After EU member states, Serbia is our first foreign trade partner and another destination for investments abroad.

How much does the work done by the Mixed Commission help in advancing the bilateral cooperation between the two countries? ― The Mixed Commission for Economic Co-operation between Slovenia and Serbia is a very important and useful instrument at the national, inter-institutional level, which reviews the current cooperation,

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and checks the level of fulfillment of previous agreements and initiatives, as well as seeks solutions in relation to possible problems faced by companies in both countries. The meeting of the Mixed Commission was last held in January this year in Slovenia, and it was focused on seeking new opportunities and initiatives to further deepen the bilateral economic cooperation. In this regard, both parties have identified four key areas in which the bilateral cooperation can be boosted on the basis of mutual interest – they are tourism and joint appearance in third markets, agriculture, environmental protection and digi-

AFTER EU MEMBER STATES, SERBIA IS OUR FIRST FOREIGN TRADE PARTNER AND ANOTHER DESTINATION FOR INVESTMENTS ABROAD talization (IT). Both sides also expressed their satisfaction with the the development of bilateral economic relations and external trade which has been constantly growing in recent years and reached a record high last year.

Digitalization is one of the priorities of the Serbian government. What are Slovenian experiences in this area, and what kind of know-how can Slovenia offer to Serbia? ― In terms of digitalization, Slovenia has accomplished an exceptional progress,

and is one of the countries that has the fastest digitalization growth in the EU. In the last few years, we have been carrying out centralization of the entire state IT segment and decision making process which resulted in savings that were then directed towards innovative solutions.

These activities were mostly focused on our citizens with an increasing number of services available in the digital domain (e-health, e-tax, e-bills etc.). Considering that there is a mutual interest in cooperation both in Slovenia and Serbia, the Memorandum of Cooperation in the field of digitalization of public administration in Serbia

was signed. The two sides agreed to exchange good practice cases in the field of paperless business between businesses and public administration in the following areas: paperless business regulation, development and introduction of e-bills and other standards for e-business between companies and public sector, as well as good practices in introducing e-bills in public sector. The two sides also ascertained possibilities for transfer of the Slovenian experiences in terms of solutions for smart / safe cities and communities.

Both sides are also interested in establishing a single information infrastructure for the Serbian state administration (state cloud, telecommunications ...) and in implementation of communication protection solutions. Our experts have noted that Serbia has a huge potential in the IT sector, as well as numerous quality IT professionals. Slovenia wants to include top Serbian IT experts in its projects, and to work with them on joint projects in Serbia and Slovenia. Concrete talks regarding this topic are ongoing.

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INTERVIEW

OUR COOPERATION IS GETTING BETTER BY THE DAY

We are close to reaching our goal of passing over the magical limit of one billion euros worth of external trade. More importantly, this trade has become more balanced. In the first nine months months of this year, our deficit amounted to only 13.9 million EUR, while our export to import ratio in trading with Slovenia reached 96.4 percent

MARKO ČADEŽ

President of the Serbian Chamber of Commerce 20

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f we finish this year with an external trade growth of 8.8 percent, which is the increase reached in the first nine months of this year relative to the same period last year, we will exceed one billion EUR in the value of external trade between Serbia and Slovenia - Marko Čadež, President of the Serbian Chamber of Commerce of Serbia, is pleased to say at the beginning of the interview for D&C. Continuing with the 2016 growth trend, and relative to 2015, the externatl trade increased by 8.5 percent, the sale of Serbian products to Slovenia by 14.2 percent, and the sale of the Slovenian ones by 4.2 percent. This year, in the period January to September, the value goods exchanged between Serbia and slovenia reached 766.5 million EUR, and was 8.8 percent higher than in the nine months of last year. Serbian exports recorded an increase of 17.4 percent and amounted to EUR 376.3 million, while imports from Slovenia amounted to EUR 390.2 million, which is a 1.6 percent hike compared to the same period in 2016. „From the Serbian economy's viewpoint, it is much more important for the external trade between the two countries to be more balanced, than to exceed the desired billion euros in external trade this December“, Mr. Čadež says and adds: „In the first nine months of this year, our deficit amounted to only 13.9 million EUR, while our export to import ratio in trading with Slovenia reached 96.4 percent“.

Which factors contributed the most to a slow descent of the economic cooperation in the last few years? ― I think that the turning point happened when Slovenia adopted a strategic approach to Serbia as an investment desti-

nation, i.e. with the arrival of Slovenian companies to the open Serbian market in the course of privatization and through greenfield projects. This boosted both exports and imports. In the last ten years, external trade has increased from EUR 573 million to EUR 910.8 million in 2016.

Slovenia is not only one of the top ten external trade partners of Serbia, but also among the top ten countries which companies invested the most in our country.

A SERBIAN-SLOVENIAN BUSINESS ASSOCIATION WAS ESTABLISHED IN SLOVENIA THIS YEAR, AND IT ALREADY ASSEMBLES NEARLY 30 SERBIAN COMPANIES PRESENT ON THE SLOVENIAN MARKET The fact that our business people continued to operate has facilitated the normalization of our political relations and helped to make the cooperation and strategic partnership between our two countries the best ever. Our political leadership provides a great impetus to further development and strengthening of this economic cooperation. At the same time, together with the Slovenian Chamber of Commerce and the Slovenian Business Club, the Serbian Chamber of Commerce has been nurturing a continuous successful cooperation, based on mutual understanding and mutual interest of our economies to connect, strengthen joint trade, and accelerate investments.

Could you compare the cooperation between Slovenian and Serbian companies during the time of ex-Yugoslavia and now? ― The extent of external trade between the two economies in former Yugolsavia was much higher than now. Looking at the structure of the Yugoslav gross national product (GNP), Serbia, primarily due to its size, had the largest share in the total GNP. Slovenia was the most developed in all areas except agriculture which was Serbia's domain. Also, Slovenia had the biggest share in the production of electrical machines and appliances, finished wood products and fur and leather. In search for more profitable business destinations, Slovenian companies began investing in the region in the beginning of the year 2000, i.e. in locations with lower costs and greater incentives.

Just like Serbian companies operating in certain sectors like transport are now more inclined to run their operations from Slovenia, which is an EU member of the EU, which gives them a better access to the single European transport market.

There are almost 1,500 companies in Serbia that are founded with the Slovenian capital with over 500 of them being active. According to the Slovenian sources, the total Slovenian investments in Serbia have exceeded 1.2 billion EUR. In terms of investment projects in Serbia, Slovenia occupies the fourth place, after Germany, Italy and Austria. Apart from the business incentives in Srbia and the proximity of our market which reduces transport and logistics cost, the fact that we used to be a part of a single economy, that the language barriers are almost insignificant, and considering that there is a number of companies that did business togeth-

BILLION

ACCORDING TO THE SLOVENIAN SOURCES, THE TOTAL SLOVENIAN INVESTMENTS IN SERBIA HAVE EXCEEDED 1.2 BILLION EUR SLOVENIA 2017

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the further development of Fructal and its expansion in the region, as well as beyond the ex-Yu borders, to overseas markets of the Middle and Far East and South Africa.

Delta Holding is building the InterContinental Hotel in Ljubljana. After purchasing the Kempinski Hotel in Portorož and acquiring a share in Gorenjska Bank, MK Group has also purchased a 30.45% stake in Portorož Airport. MK Group has also expressed interest in acquiring the remaining part of the airport, and expansion into the the field of banking and tourism.

er in ex-Yugoslavia and had branches in both countries all contributed to this fact.

Serbian companies have stepped up their investments in Slovenia. How well received are they in the Slovenian market? ― As Slovenia increasingly opens up to foreign investments, and as export and foreign investment capacity of Serbian companies keeps growing, more and more of Serbian products and Serbian companies are starting to appear in the Slovenian market. According to the data collated by the Slovenian Central Back, ending in 2016, Serbian investments in Slovenia amounted to 291 million euro. A Serbian-Slovenian business association was established in Slovenia this year, and it already assembles nearly 30 Serbian companies present on the Slovenian market.

Those who have already invested have the most positive experiences, so in the

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THERE ARE ALMOST 1,500 COMPANIES IN SERBIA THAT ARE FOUNDED WITH THE SLOVENIAN CAPITAL WITH OVER 500 OF THEM BEING ACTIVE coming period it is realistic to expect more Serbian investments in Slovenia.

Let me remind you that, in late 2007, ComTrade bought Slovenian company Hermes SoftLab, and in 2011, opened a new development centre which employees close to 1,00 young IT experts from Slovenia, mostly from Ljubljana and Maribor. In 2011, Nectar from Bačka Palanka became the owner of Fructal. After the acquisition, the company invested significant funds in

Digitalization, tourism and environmental protection are just some of the areas in which the two countries can cooperate further. How active are business people in utilizing these opportunites today? ― Slovenian experience and support in the process of European economic integration, i.e. in the digitalization of public administration, economy and their mutual communication, are valuable for Serbia particularly in the development of the private sector - small and medium enterprises, ICT, continental tourism and ecology.

Apart from the Slovenian experiences in building e-government, where we are using elements of the Slovenian model and have the help of Slovenian experts, the experiences of Slovenia, which, on 30th June fully implemented the EU regulation on electronic identification (eIDAS), will be very useful to us in applying e-document and e-signature services, and in implementing laws in practice. Slovenia's support will also be significant to the Western Balkan countries in implementing measures in the field of digitalization as part of the implementation of the Multi-annual Action Plan for the Regional Economic Area. Following the initiative of the Slovenian and Serbian chambers of commerce, and under the framework of the cooperation agreement between the two countries, we have formed green teams that are working on boosting the cooperation between companies in the area of green economy. Also, a 4.5-million-euro Serbian-Slovenian investment in waste water factory in Zlatibor was launched a few days ago, with the Slovenian government providing 1.5 million EUR. A consortium of companies Jedinstvo from Sevojno, Beohidro from Belgrade and Hidroinženjering from Slovenia will build the facility.

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INTERVIEW

BUSINESSES WILL ALWAYS FIND THE WAY TO COOPERATE Establishing connections in all directions, and not only in business and with people who are directly involved with it, but in entire surroundings brings nothing but welfare and prosperity

you kept your promise? ― The shortest answer to your question would be: "Yes!" In early spring of this year, at the meeting of the Chamber's Assembly, we promised to pay more attention to working with individual members in the future, and working more on micro-integration, in addition to geographically expanding our activities, and, apart from Belgrade, to visit other parts of Serbia.

WE WILL CONTINUE TO PURSUE THIS KIND OF ACTIVITIES BY ORGANIZING MEETINGS IN PARTS OF SERBIA THAT ARE SOUTH OF BELGRADE

M.Sc. DANIJELA FIĹ AKOV

President of the Slovenian Business Club (SBC)

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usinesses will always find ways to cooperate, and it is up to the state authorities in the region not to close these ways but regularly service them and keep them previous, as well as to create prerequisites for creating new ones.

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You have promised to the Chamber's members that you will give more attention to working with individual members and to micro-integration, as well as geographically expand your operations.

When we sum up the work that the SBC has done this year, would you say that

We delivered what we promised. We have increased the number of one-toone meetings. We had a remarkably successful meeting in Novi Sad with the top people from business and political councils of Vojvodina and Novi Sad, as well as with a number of Slovenian companies operating in Vojvodina. I am confident that this is a good path that the SBC is on. We will continue to pursue this kind of activities by organizing meetings in parts of Serbia that are south of Belgrade. For instance, in December, we are going to have a meeting in Kragujevac, next year, we will continue to have meetings in other regions of Serbia.

How many members does the SBC have today, and what novelties are you going to introduce in 2018?

― Although boosting the number of SBC members was not one of our priorities, in 2017, we did record a growth in the number of members relative to year before, and this number currently stands at 144. We did expect a standstill of sorts because it is not possible to maintain the intense growth trend from previous years forever. We are especially proud of the fact that the biggest number of Slovenian companies, which play a significant role in the Serbian market, are members of our club. To illustrate this, I would just like to mention Gorenje and Impol Seval which have been traditionally among the top 15 exporters in Serbia. There are many others too.

If we compare the financial power of Slovenia with the financial power of some other countries which have business clubs and chambers of commerce in Serbia, I can proudly say that the SBC far exceeds this ratio thanks to its activities and recognizability. Field work with individual members requires much more time, effort and energy than working in a plenum, to use the political jargon. Although the increase in the number of activities was also not one of the priorities this year, 2018 will definitely bring some novelties.

During this year, you organized meetings at at the top political and economic level in Serbia. How satisfied are you with these meetings and what novelties did they bring to your work? ― Of course, we are pleased that such high ranking officials play an important role in tailoring the rules and conditions of the business environment. At these meetings, the SBC members were given

the opportunity to, first and foremost, gather information about the latest policies of Serbian state bodies and economic institutions that affect the Serbian market.

Very often these meetings are a unique opportunity for the SBC members to establish direct contact with people who are crucial for solving some of their business

I ALSO HAVE TO UNDERLINE THE VERY IMPORTANT ROLE THAT THE PEOPLE WHO ARE NOT CONSIDERED OFFICIALS, OR, OFTEN CALLED, HIGH LEVEL OFFICIALS, HAVE problems, to receive advice and instructions, and even get a firm promise that their outstanding problems will be resolved. The Slovenian Business Club has had this practice for fifteen years, and has been, I hope, a good host to high officials from politics and economy.

I also have to underline the very important role that the people who are not considered officials, or, often called, high level officials, have. As a rule of thumb, the SBC members receive a lot of help from our partners in operational activities. Meetings with these people are on a smaller scale but more to the point and extremely useful.

What could additionally improve the business climate in Serbia according

to your members? ― I have been closely monitoring the business climate in Serbia and its changes for almost fifteen years, and I can personally testify that as much as we have listened in the past of it being extremely hostile to development of good, quality business, the fact remains that the conditions for the said development have been improving daily, and that business climate is becoming much more friendly to businesses in Serbia.

However, it is generally known and it is an indisputable fact that business climate conditions in this market are still considered far from ideal. The SBC members have repeatedly said and unfortunately keep saying that the rigid bureaucracy, complicated administration, inefficiency and laziness of the legal system, and widely accepted existence of corruption at all levels are damaging factors. Regardless of the speed of the EU accession process, Serbian citizens must first, for their own sake, build a more positive attitude towards the principles governing the EU in order to change the widely used expression “that’s Serbia for you”, often used by disillusioned and depressed people, into a completely different and quite opposite connotation.

Which activities of the Slovenian Business Club have been the most popular with the members in 2017? ― Although, the SBC's management has never been that bothered by the number of activities at any given point, some activities rose to prominence by themselves.

And once you start an avalanche, there is not way of stopping it. The SBC members initiate and propose the club's activities. In

ROLE

WE ARE PLEASED THAT SUCH HIGH RANKING OFFICIALS PLAY AN IMPORTANT ROLE IN TAILORING THE RULES AND CONDITIONS OF THE BUSINESS ENVIRONMENT SLOVENIA 2017

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ing can create are as old as humankind.

These stories are several thousand years old, and can be even found in the Bible and other ancient records. When we were school children we learned about the strength of connected branches and the weakness of separated ones.

Still, it seems that many people have failed to grasp these lessons, or as we say, »have missed the class«. Luckily, the SBC members belong to the latter group, i.e. they are good at learning history and excellent at learning about modern business. Moreover, the majority of them have the knowledge and experiences of a seasoned professor which is why we have them as members. We are aware of the fact that establishing connections in all directions, and not only in business and with people who are directly involved with it, but in entire surroundings brings nothing but welfare and prosperity. In that respect, regional networking occupies a special place for many reasons that we have frequently talked about before.

2017, in addition to directly working with individual members and holding working breakfasts, which continue to be the most popular format, I would also like to single out several events organized by the SBC, which are considered the most important and have attracted a lot of interest.

We had Mr. Ivica Dačić, the First Deputy PM and Foreign Minister in the Serbian government, actively participating in one of our meetings. In Novi Sad, we organized a meeting on business environment in Vojvodina together with the top people from the province's government and business. For the third consecutive year, we have organized an economic panel at the Technical Fair. We should also mention the traditional event of Martinovanje which promotes Slovenian tourism potential.

However, the event that I would especially like to single out, which was for the first time organized with the support of the Slovenian Embassy and the DATA Company from Ljubljana, was the meeting on the topic of the business environment in Slovenia. I emphasize the term "for the first time" because, at this meeting, we heard that Serbian investments in Slo-

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THE STORIES ABOUT HOW MUCH PEOPLE BENEFIT FROM CONNECTING WITH EACH OTHER, AND HOW MUCH GRIEF LACK OF UNDERSTANDING CAN CREATE ARE AS OLD AS HUMANKIND venia have increased in the last three years, and that the interest in the Slovenian market, shown by Serbian business people, has been constantly growing.

Next year, we are planning to organize a two-day event dedicated to doing business in Slovenia.

How do your members view regional networking, and how can we expedite this networking trend? ― The stories about how much people benefit from connecting with each other, and how much grief lack of understand-

Where do your members see opportunity for Serbian and foreign businesses in Serbia to network even more? ― The specific and current interests, that individual businesses might have, are, of course, subject to constant revision and change. They depend not only on the wishes of businesses, but also on the real and objective circumstances and conditions in the environment. However, Slovenian and Serbian business people, and thus the SBC members, are constantly observing the global and micro needs, resources and capacities. A as a result, they have reached an agreement on the greatest opportunities for mutual cooperation and expansion of space for further networking of foreign, and not only Slovenian, and domicile businesses in Serbia.

Thanks to their positive characteristics and opportunities, information technology, ecology, agriculture and tourism are especially underlined. Of course, these are not the only areas where progress can be made and cooperation develop further. By networking with other foreign associations and chambers, which the SBC has been doing a lot, the space for multilateral cooperation between businesses is expanding and the opportunities are multiplying.

INTERVIEW

GORAN KRIŽ

Economic Attaché of the Slovenian Embassy

FIVE NEW CHALLENGES

There is so much more potential and opportunities for boosting the mutual economic cooperation in five priority segments – agribusiness, joint environmental protection projects, forming a joint tourist product, IT and digitalization

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conomic recovery in Europe is quite visible in Slovenia too with the country recording high export growth and investment rates. As in previous years, Slovenian investors are very interested in advancing the economic cooperation with Serbia – says Goran Križ, the Economic Attaché of the Slovenian Embassy, in his interview for Diplomacy&Commerce magazine.

How much does the Slovenian economy feel this boost of the European eco-

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nomic growth? ― Slovenia is one of the countries that has a predominantly export oriented economy, and as such, is very exposed and dependent on external influences. It is these influences that have been very encouraging this year, and have had a positive impact on the economic growth in Slovenia. The increased demand in the countries that are key foreign trade partners of Slovenia, both at global and European levels, has given a strong impetus to the Slovenian economy this year. The key factors in

the growth of the Slovenian GDP include high export growth rates, and increased private consumption and investments. As a result, Slovenia is having one of the largest economic growth in the eurozone and the entire EU28 region. I would also like to underline that, in its autumn forecast, the European Commission has improved the growth projection for the Slovenian GDP in 2017 from 3.3% to 4.7%. Following the Commission's improved forecast regarding the GDP growth, Slovenia was ranked 4th among the EU member states.

How, in that context, Slovenian investors view the opportunity to continue investing in Serbia? ― Serbia is one of the important foreign trade partners of Slovenia, and also a key investment destination (second place in terms of investment volume). A favourable economic climate generally has an incentivized effect on investors and their decisions to make new investments, or expand the existing production. The country's political and economic stability, as well as the government's commitment to implementing further reforms, while on the path to EU membership, are among

the important factors of attracting new investments in Serbia. Additionally, the business environment in the country is becoming more attractive for foreign investors, as evidenced by the research conducted by international institutions (e.g.

Serbia improving its ranking in the global competitiveness list, etc.).

Do you think that the opportunities for networking in industry have been exhausted, or do you see a fresh potential for networking between businesses? ― I think there is still a lot of potential and many opportunities for deepening of the mutual economic cooperation, therefore our joint task is to identify these areas and connect business entities from Slovenia and Serbia. This is where our assistance to small companies with limited capacities for such activities is important.

Four key areas with a great potential for boosting the economic cooperation have already been identified, and these are: agriculture / agribusiness, joint projects in the field of environmental protection, tourism or forming a joint common tourist product, and IT and digitalization. We formed working groups for each of these areas with the aim of concretizing initiatives and preparing joint projects.

How does Slovenia view Serbian companies investing in your country? ― Foreign direct investments are one of the generators of economic growth, hence, we are quite pleased to see that lately there has been an increasing number of Serbian investments. They are mainly focused on tourism, which has a great potential for development. In regard to this,

I would like mention the construction of the Intercontinental Hotel in Ljubljana, the purchase of the Kempinski Hotel, the acquisition of a part of the Airport and marina in Portorož etc. I expect that the said positive trend will continue in the future, also in other industries.

How much can the announced infrastructure networking in the region contribute to boosting of the external trade

FOREIGN DIRECT INVESTMENTS ARE ONE OF THE GENERATORS OF ECONOMIC GROWTH, HENCE, WE ARE QUITE PLEASED TO SEE THAT LATELY THERE HAS BEEN AN INCREASING NUMBER OF SERBIAN INVESTMENTS between our two countries? ― Infrastructure integration and networking are important prerequisites for further strengthening of economic relations and external trade between the countries in the region. Creating modern infrastructure, primarily road and rail, enables a faster flow of people, goods and services. We can see that Serbia pays a lot of attention to this issue, which, in practice, is noticeable in the country constructing a motorway corridor, and building / modernizing fast railroads.

How would you rate the cooperation between Slovenia and Serbia in terms of resolving the problems with Agrokor? ― The Agrokor Group, which, aside from numerous regional companies, also owns Slovenian Mercator that has an ownership link to Mercator in Serbia, definitely has a strong influence on the economies of regional countries. In terms of resolving Agrokor's problems, the issue of close cooperation between the countries in the region is very important. As far as I know, top officials from both Slovenia and Serbia have been regularly talking about the current developments regarding Agrokor. Following Serbia's initiative, in April of this year, economy ministers from Serbia, Bosnia and Herzegovina, Montenegro and Slovenia met to discuss Agrokor. After the meeting, the ministers adopted decrees which, among other things, stipulate a formation of a ministerial group. They will also continue exchanging information and devise measures to preserve workers and suppliers' interests, as well as secure stable operations of companies that operate under Agrokor in the aformentioned countries.

In the light of this case, do you see regional networking and consolidation of companies as a threat, or is this just a bad exception? ― I think that further regional linking of companies is important and necessary, as this will boost the potential and competitiveness of companies from the region. Of course, such connectivity has to be subjected to certain conditions and rules, and have appropriate control mechanisms.

ECONOMIC GROWTHS

HIGH EXPORT GROWTH RATES, AND AN INCREASE IN PRIVATE CONSUMPTION AND INVESTMENTS CONTRIBUTED TO SLOVENIA RECORDING ONE OF THE BIGGEST ECONOMIC GROWTHS IN THE EUROZONE AND THE ENTIRE EU28 REGION SLOVENIA 2017

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CORPORATE

Commitment to a Client is a Road to Success BRANKO GREGANOVIĆ

Chairman of NLB Bank Belgrade's Executive Board We are talking to the Chairman of NLB Bank Belgrade's Executive Board, Branko Greganović about the bank's operations and challenges that modern technologies have brought to this sector.

How satisfied are you with the bank's operations this year? ― Over the last few years, NLB Bank has been recording a continuous growth in all of its operational segments, and we are exceptionally pleased and proud of our achievements. First and foremost, we have undergone significant internal changes in order to become even more efficient and to adequately meet the needs of our clients. We have constantly been working on improving our products and services, and adapting them to the expectations and needs of modern-day clients, which has also largely entailed advancing our IT system. With a truly great team of dedicated professionals, who work in NLB bank and who really try to get to know each client individually, the success was imminent. In the first ten months of this year, the bank invested over 180 million EUR in the implementation of personal and professional plans of our clients, which amounts to approximately 45% of our total investments last year. We are ready to continue with this trend.

Which of NLB's products proved to be the most appealing? ― In terms of our retail segment, cash and consolidation loans have traditionally been the most requested banking product, which is why we have most improved our offer in this segment, both

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We are constantly working on improving our products and services, and adapting them to the expectations and needs of modern-day clients which has resulted in a substantial increase in our investments. We are ready to continue with this trend

in terms of providing better terms and conditions, but also in terms of adapting our communication to our clients' expectations. We have also introduced online loan application in order for clients to get their desired funds with spending as little time in our branch offices as possible. I would also like to mention an innovative product that we have developed with our partner Gorenje, and these are loans for the purchase of Gorenje products granted

NLB GALLERY

THIS YEAR, WE OPENED THE NLB GALLERY WITH THE AIM OF IMPROVING THE CULTURAL OFFER IN BELGRADE, AND TO GIVE ARTISTS, ESPECIALLY YOUNG PEOPLE, A PLACE WHERE THEY CAN EXHIBIT THEIR WORKS directly at the retail outlets, with no interest, no loan processing fees and no need to come to the bank. In our agricultural segment, the most requested loans were those from the subsidy programmes. In this respect, NLB Bank has managed to position itself among the top three banks in terms of the number of granted loans from this programme.

Which development direction is the banking sector in Serbia going to take in the following period in your opinion? ― First and foremost, the implementation of modern technologies and

the introduction of innovations that rely heavily on advanced IT systems will be the biggest challenges and the most important criterion of business performance in the financial sector in the upcoming period. Apart from banks, companies in all other segments which are able to keep up with the times, to quickly change and innovate their businesses based on the feedback from customers, will be able to count on customer loyalty and good business results.

Which CSR activities is NLB the most active in? ― We have incorporated the highest standards of social responsibility into our business. We support young people and their education, we contribute to the quality of life of senior citizens, we support cultural projects and environmental projects. One of the most important projects in the area of social responsibility is certainly our NLB Organic competition at which we reward organic food producers, and in doing so we intend not only to contribute to the improvement of farms, i.e. the authors of the best projects, but also to promote organic agriculture as the sustainable production. Almost 300 projects have taken part in our NLB Organic competition so far, and the number of participants has been growing year after year, which we are very proud of. I would also like to mention the NLB Gallery, a project we have launched this year with the aim of improving the cultural offer in Belgrade, and to provide to artists, especially young ones, a place where they can exhibit their works.

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— Text —

Žikica Milošević

ECONOMIC COOPERATION

ALWAYS ON A HIGH LEVEL One of the largest economic partnerships

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s states, Serbia and Slovenia spent 72 years together in a joint country, but certain parts of Serbia (like Vojvodina) and Slovenia spent over 300 years in the common state. Hence, it comes as no surprise that economies of these two countries are very connected, and that Serbia and Slovenia are very close economic partners.

Actually, maybe it is better to say that,

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SERBIA HAS ALSO BEEN IMPLEMENTING DIGITALIZATION OF PUBLIC ADMINISTRATION IN ACCORDANCE WITH THE SLOVENIAN MODEL

until recently, it was Slovenia that usually invested in Serbia, while now that has changed, and Serbian companies are increasingly investing in Slovenia. Mercator and Ljubljanska Bank are not the only visible symbols of Slovenian economic presence in Serbia. Serbian companies have their own in symbols of economic presence in Slovenia too.

Regardless, Slovenia is one of the main investment pillars to Serbia, and because

of its historic ties, and knowing Serbian economy and mentality well, Slovenia has never shied away from investing in Serbia.

Transfer of experience and know-how from Slovenia to Serbia, and Slovenia showing Serbia how to organize local self-governments during the transition period, and adapt its laws and business conditions were of crucial importance for Serbia's path towards becoming a developed economy which, objectively speaking, Slovenia is, despite all the crises and obstacles.

Serbia has also been implementing digitalization of public administration in accordance with the Slovenian model. The economic cooperation between Serbia and Slovenia is characterized by constant advancement of bilateral relations. The total value of the trade between Serbia and Slovenia in 2014 amounted to 1,032.7 million dollars. Serbia exported to Slovenia 471,1 million dollars worth of goods, and imported from Slovenia 561,6 million dollars worth of goods. Since then, the economic cooperation has progressed even more, especially when the first Serbian super-

THE EURASIAN UNION, WHICH ARMENIA AND KYRGYZSTAN HAVE JOINED RECENTLY, REPRESENTS A HUGE MARKET, AND, FOR SLOVENIA, SERBIA IS A GATEWAY TO THIS MARKET market in Slovenia was opened in 2015, which increased Serbia's exports to Slovenia. Considering the current position of both Serbian and Slovenian economies, the mutual economic cooperation, realization of joint projects and producing for the markets of the Russian Federation, Belarus and Kazakhstan, with which Serbia has free trade agreements, are expected to grow and develop. The Eurasian Union, which Armenia and Kyrgyzstan have joined recently, represents

a huge market, and, for Slovenia, Serbia is a gateway to this market. The Slovenian Business Club in Serbia and the Serbian Business Club in Ljubljana play a major role in the development of cooperation.

"Slovenia is one of our most important trading partners and investors with more than one billion euros of investments, and with over 600 companies employing 35,000 people in Serbia. I am honoured to have the opportunity to talk with the representatives of the government of Slovenia on the continuation of the expansion of our cooperation, which in terms of trade from 2015 to 2016 jumped by five percent, and I expect that this trend will continue," Serbian PM, Ana Brnabić said recently at the Bled Strategic Forum.

In 2016, the trade between the two countries exceeded a billion euros in value which is an excellent result. In 2017, all indicators point towards further progress.

Considering the interconnectivity of the two economies, it is realistic to expect that 2017 is going to be the most productive in the history of their economic cooperation.

The port of Koper remains one of the pivotal points in the Serbian-Slovenian cooperation. Along with ports in Rijeka, Bar and Thessaloniki, this is one of the four main hubs via which container goods enter Serbian market from the world marine routes. In that respect, and considering the increased trade between Serbia and China which transports most of its goods via sea, and due to its favourable geographical position and good transport connections to Serbia, the port of Koper can only continue to profit at least until the Belgrade-Bar railroad and Corridor 11 don't become fully operational which is unlikely to happen any time soon.

ADVANCEMENT

THE ECONOMIC COOPERATION BETWEEN SERBIA AND SLOVENIA IS CHARACTERIZED

BY CONSTANT ADVANCEMENT OF BILATERAL RELATIONS SLOVENIA 2017

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Žikica Milošević

ECONOMY

DIVERSIFIED, REGIONALISED Successfully swimming upstream

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lovenia had never implemented a format that was so successfully (or rather unsuccessfully) applied in other ex-Socialist countries – from Montenegro and Kyrgyzstan to Estonia and Armenia. Slovenians did not centralize their economy to become a part of the state economy hub which overpowered economies in the rest of the country. On the contrary, they did it the way Germans, Italians or Austrians did it. And it was all worth it!

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UNIFORMITY – SMALL AND

MEDIUM ENTERPRISES

When Socialism came with the end of the World War II, Slovenia adopted a very interesting economic policy which literally emptied out villages and pushed farmers to move to towns thus strengthening the industry that was created artifically, on the back of the destruction of the economy's organic structure. Slovenia was creating a diversfied economy.

The aim and the strategy for this was to build smaller factories in smaller towns across the countries, i.e. what we call today small and medium enterprises, in Socialist environment. What Slovenians did back then was something that we have in Serbia today – like the village of Čelarevo that is home to a big brewery, or the village of Bački Maglić where the HQ of a big snack producer, Marbo is located. By doing so, the Slovenians prevented a huge migration to

cities like Maribor and Ljubljana, and created a workforce that is uniformly employed across the country.

FACTS AND FIGURES SAY IT ALL Today, Slovenia is a developed country that enjoys prosperity and stability, as well as the GDP per capita of purchasing power parity which stood at 83% of the EU28 average in 2015, was the same in 2014 and 2 percentage points higher than in 2013.

The nominal GDP in 2015 amounted to 38,570 million EUR, while the nominal GDP per capita (GDP per capita) in 2015 amounted to 18,693 EUR. The highest GDP per capita was in Central Slovenia, where the capital city Ljubljana is and which is a part of the statistical region of Western Slovenia, which, again, has a slightly higher GDP per capita than Eastern Slovenia.

Slovenia was the first new member of the European Union to adopt the euro as national currency in January 2007, and to become a member of the Organization for Economic Co-operation and Development in 2010. Adoption of the euro is today interpreted in many circles in Slovenia as a controversial move since the countries which adopted the euro at the onset of the 2008 crisis (Greece, Portugal, Ireland) faired worse than those which fluctuated their currency (Poland, UK, Estonia, etc.).

Slovenia has a highly educated workforce and a well-developed infrastructure, and lies on the junction of main transport routes, whichever side you look from and whichever route you take - railway, sea, or roads. On the other hand, the level of foreign direct investments is one of the lowest, but has been continuously growing over the last several years. The

THE DISADVANTAGE OF THE SLOVENIAN ECONOMY IS THAT IT IS NOT A POPULAR DESTINATION FOR FDIS, BUT THIS HAS STARTED TO CHANGE AS EVEN SERBIA HAS BEGUN INVESTING IN SLOVENIA Slovenian economy was seriously affected by the European economic crisis that began in the late 2000s, and its recovery lasted for quite a long time which is why Slovenia is now not much different from its neighbouring countries. At the end of 2011, recession hit, and the reasons were attributed to the decline in domestic consumption and exports. Slovenia exports

mainly to the eurozone countries. Furthermore, this crisis has seriously affected the construction sector. After 2013, the GDP per capita starting growing again.

Almost two-thirds of the working population is employed in the service sector which marks a strong U-turn in the direction of post-industrial society. The disadvantage of the Slovenian economy is that it is not a popular destination for FDIs, but this has started to change as even Serbia has begun investing in Slovenia.

For a long time, Slovenia was a quite closed up economy. It was Croatians, out of all ex-Yugoslav republics, that, that broke the mould first, and started investing in Slovenia in the second decade of the 21st century. On 1st July 2010, the Mercator supermarket chain was bought by Agrokor for 454 million EUR. However, it remains to be seen what will happen with this investment considering that the business empire of Agrokor's owner, Ivica Todorić is crumbling.

THE FIRST

SLOVENIA WAS THE FIRST NEW MEMBER OF THE EUROPEAN UNION TO ADOPT THE EURO AS NATIONAL CURRENCY IN JANUARY 2007 SLOVENIA 2017

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PRESIDENTIAL ELECTION IN SLOVENIA

GUARANTEE OF POLITICAL STABILITY Unlike other European countries, which have seen the rise of right-wing populism, this was not even mentioned during the Slovenian presidential election. Since declaring its independence Slovenia has always chosen left-wing candidates for its presidents. Second time around, it was Borut Pahor

A

lthough the Slovenian new/old president, Borut Pahor, rather unexpectedly, had to go into second election round, on 12th November, 2017, he made history as only the second Slovenian president to get elected twice into the office, after Milan Kučan. His 15 years younger opponent, the former comedian and mayor of Kamnik, Marjan Šarec, who won almost 47% of votes, said post-election that he was the voice of the new pro-change movement, adding that he was happy with the results.

Although there were nine candidates in the first election round, with five of them women, Pahor, who has been in politics for over 30 years now, was the voters' favourite. During his student days, Pahor (age 59) was a member of the Communist Party, and the youngest member of the party's Central Committee. Back in the 1980s, he was known as one of the strongest advocates of the refomist wing of the Communist Party. After that he became a social-democrat and an MP in 1992. Five years later, he was appointed president of the Social-Democratic Party, and in 2000, the speaker of the National Parliament. He entered the European Par-

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liament in 2004, and in the period from 2008 to 2011, he was the prime minister of a not-so-successful government which was shaken to the core by the global financial crisis during his term in the office.

His party lost at snap parliamentary elections which were scheduled immediately after Parliament failed to give the vote of confidence to Pahor's government. Subsequently, Pahor resigned as party president. At last presidential election, he was the candidate of the Social-Democratic Party, while, this time around, he ran as an independent candidate since his party refused to nominate him.

In Slovenia, Pahor is known as a smiling

IN SLOVENIA, PAHOR IS KNOWN AS A SMILING POLITICIAN THAT SPREADS GOOD CHEER WHEREVER HE GOES, AND WHO SHIES AWAY FROM CONFRONTATION

politician that spreads good cheer wherever he goes, and who shies away from confrontation. Many media outlets, both Slovenian and foreign, talk about his skillful use of social media, primarily Instagram.

The Frankfurter Allgemeine Zeitung writes that, during his first presidential term, he managed to totally depolitize his function which already carried very little authority. „As the president, I am going to continue doing exactly what I have been doing for the past five years. I am going to be the president of everybody, and I am going to connect and build on what is common to all of us“, he said in his first speech after the victory. He also added that he was wrongly perceived as a populist.

Croatia was one of the countries that keenly observed the outcome of the Slovenian presidential election. During the pre-election campaign, just like many times before, there was a lot of talk about the relations with Slovenia's neighbour, Croatia. Pahor, who is also called „the father of arbitration“, insisted on that topic being discussed because, according to political analysts, he wants to be remembered as a politician who enabled Slovenia to have an exit to the open sea.

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SLOVENIAN BUSINESS CLUB

ACTIVITIES OF SBC IN 2017

In 2017, the Slovenian Business Club (SBC) organized a number of events / working meetings, speed business meetings, and working breakfasts either by itself, or in collaboration with other business associations. The aim of these events was to exchange opinions and views, and to educate and connect members, in addition to boosting good relations between member companies

Martinovanje

ORKING MEETING WITH THE W DEVELOPMENT AGENCY OF SERBIA A working meeting on business conditions in Serbia, Slovenian investments, and government plans for improving the economic environment was held at the IN Hotel on January 19th, with the Director of the Development Agency of Serbia, Željko Sertić as a special guest. The meeting was attended by the representatives of the Slovenian Embassy in Serbia, led by H.E. Mr. Vladimir Gasparic, as well as many member companies.

WORKING BREAKFAST WITH BEL

MEDIC HOSPITAL

A working breakfast, organized together with the Bel Medic General Hospital and titled Successful and Healthy, took place on 22nd February. The event covered the topic of how stress affects phsychological and physical health.

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ORKING MEETING WITH THE W MINISTRY OF EDUCATION A working meeting was held at the Faculty of Organizational Sciences on March 23rd. The State Secretary in the Ministry of Education, Science and Technological Development, Vladimir Popovic and the Dual Education Adviser to the Minister, Ms Gabrijela Grujić attended the meeting. They discussed the topic of the links between science and economy, and dual education in Serbia with the members of the Serbian Chamber of Commerce, and a number of professors from the Faculty of Organizational Sciences.

WORKING BREAKFAST

WITH TSG LAW

A working breakfast, organized together with the TSG Law Firm and the German-Serbian Chamber of Commerce (AHK), titled Incentives for Direct Invest-

ments in the Republic of Serbia and Incentives for Investments in Renewable Energy Sources Sector, took place on 30th March.

EUROPEAN NETWORKING BUSINESS COCKTAIL A big business gathering, organized together with seven European chambers of commerce, clubs and associations in Serbia with over 250 guests (chamber members, foreign and domicile business people and managers) happened on 20th April. This is the first and so far, the most important meeting of the European chambers of commerce which was organized with the aim of networking between their members and boosting cooperation between the chambers themselves.

S EMINAR ORGANIZED WITH JSP LAW FIRM In collaboration with the Joksović, Sto-

janović & Partners Law Firm, a seminar on the topic “Recommendations to business entities in order to comply with the Consumer Protection Act, with a special emphasis on responsibility for the non-conformity of goods and dealing with complaints" took place at the Zira Hotel on 11th May.

P OWER OF NEW INVESTMENTS IN INDUSTRY On 16th March, in collaboration with the Slovenian Embassy, a panel discussion titled “Power of New Investments in Industry” took place on 16th May. The event was organized under the auspices of the 61st International Technical Fair. The panel was officially opened by the president of the Slovenian Business Club, Danijela Fišakov, with the Economic Attaché of the Slovenian Embassy, Goran Križ and Aleksandar Kemiveš from the Serbian Chamber of Commerce also addressing those present. The following representatives of successful Slovenian companies in Serbia participated in the panel - Tomaž Berginc from ETI B, Dr Goran Vorovotić from the Belgrade Faculty of Mechanical Engineering, Vladimir Čabrić from

NLB Bank, Mirko Ležajić from Plamen, and Mihailo Puzić from TAB Baterija. The panellists talked about conditions for doing business in Serbia and what should be done in order for Serbia to have an even better business environment.

B USINESS ENVIRONMENT IN VOJVODINA A meeting titled “Business environment in Vojvodina” was held in Novi Sad on 8the June. The following officials were present at the mmeting - Head of Vojvodinian Government, Igor Mirović, Speaker of the Novi Sad Assembly, Zdravko Jelušić, and director of the Development Agency of Vojvodina, Nataša Bajić which presented the business environment and investment climate in Vojvodina to a number of SBC members, Slovenian business people and Slovenian officials. They also talked about strengthening the economic cooperation between the two countries, Vojvodina as an investment destination, and the presence of Slovenian companies in the province. This event was supported by: the Marić Law Firm, Celjske Mesnine z Dežele, IBW Strategy, and the Aleksić & Associates Law Firm.

SEMINAR BY JPM In collaboration with our member Janković, Popović, Mitić Law Firm and several European chambers of commerce, we held a seminar ton 22nd June covering the topic of customs regulation, and titled ‘"How to effectively implement import procedures?" and ‘Exporting products of Serbian origin to Russia, Belarus and Kazakhstan’.

WORKING MEETING ADIZES SEE In cooperation with the Adizes SEE Company, and in honour of the newest issue of Biznis Transfer Barometer magazine, a working / networking meeting focusing on the business transfer company, Asee was held on 21st September. The main speaker was Boris Vukić from Asee who used practical example to demonstrate to the members how was business transferred in family-run companies, whether family companies were a good solution or not, at what age should one consider retiring from business, and what was the current solution in Serbia regarding all of the aforementioned.

Working meeting with the Ministry of Education

Working meeting with PPV and Serbian Minister of Foreign Affairs Ivica Dačić

Working breakfast with Data

Working meeting with Adizes SEE

European networking business cocktail

Working Breakfast with Miha Pogačnik

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BASKETBALL TOURNAMENT (SBC, SAM, AMCHAM) On 30th September, a basketball tournament called BusinessSlamDunk, organized by the Slovenian Business Club, the Serbian Association of Managers and AmCham Serbia, took place.

The members of these three organizations played against each other at the tournament’s which motto was “Healthy Body, Healthy Mind”, each defending the colours of their organization. Three games were played in total and each team played against one another. The players put up a valiant fight on the court. “This year is definitely going to be remembered by Slovenian basketball”, the referee said after the final game.

The Slovenian Business Club team won the tournament.

WORKING BREAKFAST ECDR A working breakfast was held on 4th October together with the Slovenian lecturers from the European Centre for Dispute Resolution (ECDR). The first part of the lecture was given by the founder and president of the ECDR, Katarina Kresal who talked about the topic “Innovation in

dispute resolution - from problem to business opportunity” during which attendees were able to hear details about the increasingly popular mediation and arbitration processes. The second part of the lecture was given by the director of ECDR, Uroš Petohleb who talked about in detail how companies could access European funds and information about current European affairs much quicker, and offered all participants the assistance of the ECDR in Ljubljana and its office in Brussels.

ORKING MEETING WITH W PPV AND SERBIAN FOREIGN MINISTER IVICA DAČIĆ On 5th October, a working meeting titled "Political and Economic Cooperation of Serbia and Slovenia and the situation in the region" was held at the IN Hotel. The main guest was the first Deputy Prime Minister of the Government of the Republic of Serbia and Minister of Foreign Affairs, Ivica Dačić. Mr. Dačić pointed out at the meeting that it was crucial for Serbia to preserve regional stability and intensify cooperation in all areas, adding that only such region could enable sustainable development of Serbia itself. H.E. Mr. Vladimir Gasparič, Ambassador of the Republic of Slovenia to Serbia, pointed out that Serbian invest-

Working meeting with the Develepment agency of Serbia

Working breakfast with TSG law

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S PEED BUSINESS MEETING (SBC, SSCC, BSCC) In cooperation with the Swiss-Serbian Chamber of Commerce and British-Serbian Chamber of Commerce, a fourth consecutive Speed Business Meeting took place at the Hyatt Regency Belgrade, which was also a partner of this event, on 17th October. A total of 26 companies from various economic branches participated in the meeting, and were given an opportunity to connect and expand their base of contacts to facilitate development of their businesses and acquire potential partners.

ORKING BREAKFAST WITH W CONFIDA CONSULTING On 19th October, our member, Confida Consulting, organized a working breakfast with the help from the SBC and other chambers on the current taxation related topics – “Royalty-based revenue of non-residents, flat-rate taxation of small businesses, management fee - tax treatment and engagement of non-resident natural persons”.

Seminar by JPM

Speed business meeting (SBC, SSCC, BSCC)

SLOVENIA 2017

ments were very welcome in Slovenia and that there was a good trend Slovenia and Serbia boosting mutual relations.

Seminar organized with JSP law firm

Working breakfast with Confida consulting

Basketball tournament (SBC, SAM, AMCHAM)

ORKING BREAKFAST WITH W MIHA POGAČNIK

With the help from the SBC, NLB Bank Belgrade held a working breakfast at its premises on 31st October. Leadership innovation expert, violinist, visionary and founder of music training that has been used for decades in training and developing teams of leaders in multinational corporations, Miha Pogačnik was the special guest. The working breakfast – titled “Resonant platform for leadership, passage through fire - inspirational success in disrupted economy, emotional intelligence 2.0 - winning creative approach, world 4.0 - power of emotional innovation for IT leaders, HR - from human resources to human resonance " – was attended by numerous members and representatives of companies who were very pleased with a completely new, inspiring and visionary way current topics were discussed.

MARTINOVANJE IN BELGRADE The traditional Slovenian event, Martinovanje took place at the Velika Skadarlija restaurant, in the eponymous Bohemic quarter of Belgrade, on 17th November.

Working breakfast with Bel Medic

Business environment in Vojvodina

Panel discussion ”Power of New Investments in Industry”

In Slovenia, Martinovanje is the biggest holiday dedicated to wine, i.e. to that time of the year when the aging of mošt (young wine) is celebrated. It also marked the end of the grape harvest, a successfully completed agricultural season, and fully stocked cellars and granaries, and a time out for farmers.

"This event, which for its better part focuses on tourism and its development, is an opportunity for Slovenia to present itself as a green, active and healthy destination where tourists can find something for themselves, and experience Slovenia in the right way, as the famous slogan of the Slovenian Tourist Board - "I feel Slovenia" – illustrates. Every year we promote a different destination in Slovenia, and this year that’s Nova Gorica. This is a 70-year-old city in Slovenia which is famous for its red rose, the Soča River, excellent food, premium wines, and above all, kind people. This event positively contributes to the fact that the number of Serbs visiting Slovenia and Slovenians visiting Serbia has been growing, year-on-year.

Thanks to this cooperation, more jobs are created for all of us”, the president of the Slovenian Business Club, Danijela Fišakov said in her welcome speech.

The event had a cultural and entertainment programme with Slovenian and Serbian songs sung, and traditional gastronomic specialties like Kraški prosciutto, Jurčkov paté, pasta and bean soup (the so-called paštafižol), pork loin, beef tartar with pancetta, stewed beet and other delicacies prepared by the owner of the Žogica Inn from Nova Gorica. The top wines from the Vipava Valley and Goriški Hills – White Pinot, Zelena, and Cabernet Sauvignon – perfectly complemented the food.

Slovenian Tourist Board, the town of Nova Gorica, TIC Nova Gorica, TU! Magazin, Kras and Diplomacy& Commerce magazine were the event’s partners.

WORKING BREAKFAST WITH DATA A working breakfast in cooperation with the DATA Company from Slovenia took place at the IN Hotel on 29th November on the topic of “Slovenian business environment and business migration ", at which numerous participants acquired information about doing business in Slovenia and were able to schedule individual interviews in order to discuss setting up companies in Slovenia.

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Žikica Milošević

C SMALL IS SPIRIT AND CUSTOMS

BEAUTIFUL Conservative yet idyllic

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onservatism is a trait common to Central Europe, as we have established many times before. Mitteleuropa is the one that keeps the traditions of old Europe alive, and is least receptive to liberal novelties in terms of people's behaviour, economy and spirit. Slovenia is one of the best examples of this.

Tendency not to move to a big city at any cost and stay loyal to your home and lesser populated areas are the most characteristic elements of this Slovenian conservatism - unlike

Greece, where everybody gravitates towards Athens and Thessaloniki, or Serbia, where everything is concentrated in Niš, Novi Sad, and primarily Belgrade.

This is the reason why Slovenia doesn't have many big cities. Actually, it doesn't have any big cities at all because Ljubljana is as big as Novi Sad, and Maribor is somewhere there too, size-wise. There are anegdotes / urban legends circulating around about the town council in Ljubljana banning any construction activity both

in downtown and suburbs. Same thing can be seen in Sibiu, Odessa or Prague because 'normal' countries would not allow architects to destroy old parts of their towns in order to build horrendous looking buildings like in the aforementioned Novi Sad. However, banning construction both in the town centre and in suburbs could be construed as an act of a big city sabotage. Townsfolk in Ljubljana have sabotaged the idea of having a metropolis that never materialized with the nearest metropolis being Zagreb. People say that authorities in Ljubljana are slow with issuing building permit, and that this is the reason why foreign investors, wanting to build huge skycrapers in Slovenia, don't do that because they lose patience with the authorities and move onto towns like Batumi in Georgia or Warsaw which, as things would have it, is starting to resemble Frankfurt or big American cities. This will not happen in Slovenia!

This is also the reason why Slovenia is evenly populated, why town spirit is still alive and well in small towns, why they live in harmony with nature, why they often climb mountains or hike, and why people look after animals, or are engaged in beekeeping, or gardening, or other hobbies for that matter. They don't spend endless hours in public transport, going from home to work and vice versa. True to their conservative tradition, Slovenians have built a humane society, focused on people.

It is a well-know fact that Germany and its economic system have been studied by many economy experts, especially the American ones. The reason for this is that since the Americans cannot outdo the Chinese in terms of dilligence, dedication and long working hours, they are trying to find another way to regain

SLOVENIANS ARE THE PEOPLE WHO LOVE CYCLING AND WALKING, HATE THE HUSTLE AND BUSTLE OF BIG CITIES, NURTURE THEIR OWN CULTURE, AND DON'T ASK TOO MUCH FROM LIFE their status of the world power no. 1. It seems that the Germans hold the key to this. But, do they? Maybe not. With their strict demarcation between work and private life, and insisting on having enough spare time, Americans are more like Slovenians. This is something that Slovenians are proud of – they are perfectly capable of going hiking in the afternoon despite having house guests or leaving a lot of unfinished work while not sacrificing their well-being for companies they work for. And, they are doing just fine.

Slovenians are among the nations that

live the longest. Are they also among the most melanchonic nations? Well, maybe yes, but they would definitely be more melanchonic if they worked more. They have found their middle ground, and have dodged corporate culture of modern-day capitalism for sense of personal freedom and quality of life.

If this negatively reflects on the country's competitiveness, bearing in mind that Slovenians are not keen on sacrificing their own well-being to compete with tireless Asians or workaholic Americans, than be it. Slovenians copy the German way of living in a sense that they are aware of how important is to have a quality product and quality life, as well as enough time for nature and family while hoping for success. Even if success never comes, they are happy with the status quo, and, in Slovenia, it is a good status quo. If there is a spirit worth copying, it is definitely the Slovenian one. These are the people who love cycling and walking, hate the hustle and bustle of big cities, nurture their own culture, and don't ask too much from life, while, at the same time, actually wanting the best of it which cannot be measured in numbers or growth indicators.

QUALITY OF LIFE

THE SLOVENIANS HAVE FOUND THEIR MIDDLE GROUND, AND HAVE DODGED CORPORATE CULTURE OF MODERN-DAY CAPITALISM FOR SENSE OF PERSONAL FREEDOM AND QUALITY OF LIFE SLOVENIA 2017

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Žikica Milošević

CULTURE

RESILIENT, SOFT AND FRIENDLY

Feel at home, a childhood home

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t was a close call for Slovenians who, at certain point, risked having the same destiny as the Sorbs, a nation which was assimilated by its powerful neighbours Italy, Germany and Hungary, and is now a thing of the past. Slovenians decided to fight back, and in 19th century, had a powerful Slovenian national revival that formed the foundations of the modern nation, which, in the 20th century, elevated Slovenians to the level of the constitutive element of the Kingdom of Serbs, Croats and Slovenians, later the Socialist Federal Republic of Yugoslavia, so that Slovenian spirit would finally become completely free in independent Slovenia.

In a literary sense, Slovenians have a long history. Their main cultural holiday

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is marked on 8th February, the anniversary of the death of the great Slovenian poet, France Prešern who, among other things, wrote the Slovenian national anthem 'Zdravljica'. Apart from Prešern, a Protestant priest called Primož Trubar also played an important role in the Slovenian

SLOVENIANS ARE ONE OF THE SLAVIC NATIONS AND HAVE SOFT SOUL, THEY ARE ALSO DEEPLY INFLUENCED BY GERMANIC MODESTY AND CLOSENESS

culture. Despite the fact that modern-day Slovenians are mostly Catholic, Protestantism did contribute a lot to development of their national identity thanks to the Protestant tendencies for everything to be done in mother tongue which resulted in the first book in Slovenian language being published in 1550. When this happened, the Slovenian language officialy joined the group of the European literary languages. In 2010, UNESCO declared Ljubljana „the world book capital“ while, in 2012, Maribor was declared „the European culture capital“. Still, it is interesting to note that both Austria and Italy, as Slovenia's neighbours, had a huge influence on the Slovenian culture because it is these two countries that produced the biggest number of classical music composers. As

a result of this, Slovenia's has been expressing itself mostly through music. Or is it Mathematics? Slovenian Jurij Vega gave a huge contribution to the world of Mathematics with his logarithmic tables.

Slovenians have always guarded their culture carefully, and have been successful in doing so. Even back in Yugoslavia, they were very keen on sports. There is no country in immediate surroundings and very few in the world that have so many sporting equipment stores per capita as Slovenia. Slovenians always live in harmony with nature and close to it. They are also big fans of outings in nature. They love the winter although their winter is not that much harsher than in other Balkan countries. They see snow as their friend that enables them to indulge in healthy skiing activities, and not as an enemy that can kill or should be avoided.

On the other hand, Slovenians are very modest and quiet, as well as very keen on hiding how much money they actually have because talking about money is, fortunately, considered exceptionally bad manners. Other Balkan nations view Slovenians as maybe too frugal since it

is not in their mentality to splurge and demonstrate how wealthy they are in front of everyone which was also one of the biggest complaints that Slovenians had against other Yugoslav nations, back in the day. Simply put, they think that saving is one of the main corner-

THERE IS A VERY PRONOUNCED PARADOX IN THE SLOVENIAN CULTURE WHICH IS A CONFLICT BETWEEN HARDCORE TRADITIONALISM AND MODERNISM stones in life. Although they are one of the Slavic nations and have soft soul, they are also deeply influenced by Germanic modesty and closeness. Slovenians are Catholic through and through, but have accepted the Protestant work ethic and the art of blending in, combining it with

necessary relaxation and spending time with their families and on hobbies. They will not burn out at work, which often and unfortunately happens too often in the countries that are very Americanized despite being Americanophobes as Serbia paradoxically is. But that is a whole different story...

Do Slovenians have any mental or cultural paradoxes? Of course they do. There is a very pronounced paradox in the Slovenian culture which is a conflict between hardcore traditionalism and modernism.

For instance, back in Yugoslavia, Slovenians were at the forefront of guarding social freedoms and protesting against the rigid system. They were the forefathers of Neue Slowenische Kunst and Laibach, while remaining deeply conservative. They were the first to insist on democratization and rejection of Socialism, and yet they had the most egalitarian society out of all Yugoslav republics.

Their egalitarianism is reflected in the fact that they feel awkward when someone is demonstrating their power. They are quiet and rebelious, and modern and traditional, all at the same time.

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CORPORATE

With AMS Osiguranje you can go on holiday relaxed Skiing in the mountains sounds like a perfect holiday so don't let unforeseen events spoil this idyllic setting. Skiing does bring a risk of injuries, and medical costs abroad can be exhuberant. However, if you choose quality travel insurance, you will be protected from unwanted financial losses, and your winter holiday will be exactly like you planned.

AMS Osiguranje has been successfully operating in the Serbian market for over 19 years, and has built its name and status thanks to its reliable products, tailor-made to clients. If you purchase our travel insurance policy you will be covered in regard to the costs of surgical and dental interventions, hospitalization and other health services, in line with the terms and conditions of your policy.

Since we take good care of our clients, this year we are giving you an additional 20% discount on the entire travel health insurance premium which will unburden your family budget. For instance, a premium on individual insur-

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ance policy that covers 7 days of skiing on the territory of Europe will cost you only 1,260 dinars, and if you are going on a skiing holiday with your family and want to insure them too, than the premium will amount to 2,772 dinars for the same time period.

ONLINE

YOU CAN BUY TRAVEL INSURANCE AND HOME INSURANCE POLICIES ONLINE TOO, IN ONLY FEW STEPS And in order to leave for your holiday completely relaxed, don't forget to insure your flat or house while you are away. We can offer you very affordable home insurance policies that will protect your home from numerous risks like fire, burst pipes, burglary, bad weather or theft, in line with the terms and conditions of your policy. If,

on top of the home insurance policy, you choose to insure the things and belongings in your home, AMS Osiguranje will give you additional 10% discount on the total price of insurance premium.

Do not let unforeseen events spoil your enjoying in a holiday with your family or friends but rather travel completely assured that the highly professional team of AMS Osiguranje is taking care of you. Prepare in advance, and come to our offices in 16, Ruzveltova Street in Belgrade, or to any of over 250 outlets across Serbia, and let our kind staff advise you on the best insurance policy for you, in accordance with your needs and financial situation.

You can buy travel insurance and home insurance policies online too, in only few steps. You can find the detailed instructions on how to do this on our website www.webshop.ams.co.rs/ .

For more information, please call 0800-009-009.

AMS Osiguranje wishes you bon voyage!

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— Text —

Žikica Milošević

S A LITTLE JEWEL...

TOURISM

...full of undiscovered dreams

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lovenia is a country that practically has everything – mountains for skiing, a Mediterranean coast which, although short, is spectacularly beautiful, rivers, lakes, gorgeous towns and even more picturesque villages. Slovenia offers a wide range of landscapes to tourists – the Alps in the northwest, the Mediterranean in the southwest, the Pannonian Plains in the northeast, and the

Dinaric Mountains in the southeast. These are considered the traditional regions in Slovenia, formed on the basis of the four areas that made up the so-called Habsburg Crown (Carniola, Carinthia, Styria, and the Littoral). All of these areas have their own unique natural, geographical, architectural and cultural features. Slovenia has mountains, meadows, lakes, caves and a sea which makes it a very attractive tourist destination in Europe.

WHAT IS ON OFFER? The capital Ljubljana has many beautiful buildings built in baroque and art nouveau styles, and several masterpieces designed by architect Jože Plečnik who was born in this town. Other attractions include the Julian Alps with the pictur-

SKIING AND SPAS ARE SLOVENIA'S MAIN TOURIST TRUMP CARDS, AND A HUGE NUMBER OF PEOPLE FREQUENT SLOVENIAN SPA AND SKI CENTRES esque Lake Bled and the Soča Valley, as well as the highest mountain peak in Slovenia called Triglav. Perhaps even more famous is the Slovenian karst called the Karst Plateau in the Slovenian Littoral.

More than 28 million visitors visited Postojna Cave, and only a 15-minute drive from it is the Škocjan Caves, a UNESCO's world heritage location. Several other

caves are also open to the public, including the Vilenica Cave.

The Adriatic coast, also known as the small coast of Slovenia for being the shortest coastline in Europe, is further down in the same direction. Despite being short, the Slovenian coastline is as beautiful as any coastline, but has no big towns whatsoever. The small towns on the coast are so brimming with charm that they are irresistible. The most important historic monument here is the town of Piran, built by the old Venetians in the Gothic / Mediterranean style. The nearby town of Portorož is a popular place with tourists, especially the ones who like to gamble.

The former fishing town of Izola has been transformed into a popular tourist spot while many tourists also flock to the old town centre of the port of Koper which is,

EQUATION

WHEN A COUNTRY RECORDS A NUMBER OF TOURIST ARRIVALS THAT EQUALS OR EXCEEDS THE NUMBER OF ITS INHABITANTS, THAN THAT COUNTRY IS CONSIDERED SUCCESSFUL IN ITS TOURIST ENDEAVOURS SLOVENIA 2017

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nevertheless, less popular than its coastal counterparts because of its industrial inclination perhaps.

Skiing and spas are Slovenia's main tourist trump cards, and a huge number of people frequent Slovenian spa and ski centres. This is particularly true of Croatians and Serbs who often choose Slovenia as their holiday destination because of the similar language and affordable prices, as well as because of the proximity and high quality services. Rural tourism is important in Slovenia, and is especially developed in the Carniola region, while horseback riding, cycling and hiking are among the most imporant tourist activities in the country. The Triglav National Park is the biggest and most popular national park here.

Slovenia has a number of smaller medieval towns that are often fortified or have a very charming architecture of bygone times and they are important tourist attractions. The most popular are Ptuj, Škofja Loka and Piran. Fortified villages, mainly located in Western Slovenia (Štanjel, Vipavski Križ, Šmartno), have also become an important tourist destina-

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TOURISM IN SLOVENIA GENERATES ABOUT 13 PERCENT OF THE TOTAL GROSS DOMESTIC PRODUCT AND ACCOUNTS FOR ABOUT 8 PERCENT OF SLOVENIA'S TOTAL EXPORTS tion, especially because of their cultural events which take place in the scenic surroundings. All in all, although small, Slovenia is a wonderland in which you feel at home, and which quickly fills your camera's memory card, as it does your heart.

FACTS AND FIGURES, AGAIN According to the Slovenian Tourist Board, 2017 is expected to be a record year for the Slovenian tourism, because, in the first ten months of this year, the

increase in the arrivals of foreign tourists and overnight stays has been close to 10%. The Tourist Board says that these are the results of large investments and tourism development. In the last twenty years or so, tourism in this country has developed at an extraordinary pace. Tourism provides a great opportunity for Slovenia as the most propulsive branch of the economy of today.

Also, tourism is the only branch that has grown despite the various adverse conditions and economic crises, including the one from 2008. Tourism in Slovenia generates about 13 percent of the total gross domestic product and accounts for about 8 percent of Slovenia's total exports. In addition, every eight employe in Slovenia works in tourism, which is above the EU average. It is interesting to note that although it has the same population as Bosnia and Herzegovina, a coastline that is not much longer, and approximately the same number of mountains as Bosnia, Slovenia attracts even four times more tourists from the Central Balkan countries.

Judging by the number of visits, Slovenia stands shoulder to shoulder with other smaller but successful EU countries. In terms of the foreign tourist arrivals, Finland with 2.6 million tourists, Estonia with 2.7 million, and Cyprus with 2.6 million, are in the same group of EU countries as Slovenia. When a country records a number of tourist arrivals that equals or exceeds the number of its inhabitants, than that country is considered successful in its tourist endeavours. And Slovenia has definitely succeeded! Still, it can always do better. Knowing Slovenians, that is exactly what they are going to do – become better.

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