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February 2018 | ISSUE No. 3 | Price 35 KN

WE ARE PROGRESSING, WE EXIST

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15 TWO IMPORTANT JAN page 28

JUBILEES IN ILOK

BILJANA BORZAN

The Republic of Croatia’s representative in the European Parliament

WE ARE GOING TO TURN WASTE SITUATION AROUND

THERE IS NO PROGRESS WITHOUT STRUCTURAL REFORMS BORIS VUJČIĆ

Governor of the Croatian National Bank

PRESERVATION OF CROATIAN CULTURAL IDENTITY IS OUR PRIORITY

DUBRAVKO PONOŠ

Director of the Environmental Protection and Energy Efficiency Fund

GUESTS RECOGNIZE THE QUALITY OF OUR OFFERS

NINA OBULJEN KORŽINEK Croatian Minister of Culture

WE SEEK TO PROTECT EUROPEAN UNITY KRISTIJAN STANIČIĆ

Director of the Croatian National Tourist Board

H.E. TANYA DIMITROVA

Bulgarian Ambassador

Switzerland

H.E. STEFAN ESTERMANN Swiss Ambassador to Croatia

ED ITO RI AL

CO N T E N T S

Brave Old World Dear readers, There's nothing new under the skies. For a brief moment the world was celebrating the (almost) utter defeat of the Islamic State, while the new clouds gathering on the horizon reminded us of the real situation in the world. The Syrian Civil War was not at all „a civil war“ and the Islamic State was obviously not the „autochthonous movement“ of the Syrian people, despite the involvement of the Muslim Brotherhood, Islamists and so on. The real enemies created, at first, a proxy war (Russia, America, Turkey, France as the EU's combat spears, Iran, Israel, Saudi Arabia...), and now these powers are preparing to clash directly. Poor people of Syria! They really thought it was a fight for democracy. Now they know there is one or two things actually worse than the lack of democracy: peace under the Islamic State and the absence of peace because of the superpowers' interests. Not to mention the Kurds, and their everlasting fight for self-governance! In the meantime, Olympic athletes from Russia were adamant to show, come hell or high water, that they were the best of the best, despite the sanctions and sometimes open hatred coming from the new OC leadership. In Ukraine, the government is not ready to accept any compromise, and a new war is looming. Saakashvili is ousted from yet another country with his story ending in him becoming a stateless person, although it began with the splendid Rose Revolution and high hopes. There is indeed nothing new in this world; it is not becoming any better, and although the end is always near, it never actually comes.

THERE IS NO PROGRESS WITHOUT STRUCTURAL REFORMS

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BRANDING AS AN IMPERATIVE OF TODAY

PRESERVATION OF CROATIAN CULTURAL IDENTITY IS OUR PRIORITY

DANIJEL KOLETIĆ CEO of Apriori World

NINA OBULJEN KORŽINEK

Croatian Minister of Culture

TWEETING AS THE NEW PARADIGM OF POLITICAL COMMUNICATION

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DUBRAVKO PONOŠ

Director of the Environmental Protection and Energy Efficiency Fund

H.E. TANYA DIMITROVA

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WE ARE GOING TO TURN WASTE SITUATION AROUND

Governor of the Croatian National Bank

BORIS VUJČIĆ

WE SEEK TO PROTECT EUROPEAN UNITY

ROBERT ČOBAN

GUESTS RECOGNIZE THE QUALITY OF OUR OFFERS

WE ARE PROGRESSING, WE EXIST BILJANA BORZAN

KRISTIJAN STANIČIĆ

The Republic of Croatia’s representative in the European Parliament

DAVOS 2018 Analysis

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I NTERVIEW

There is No Progress Without Structural Reforms This year will be marked by positive macroeconomic developments, with a solid GDP growth and continued low interest rates. However, the fundamental reform challenges will continue to exist for a longer period of time, with the faster growth of productivity and thus better living standard depending on these reforms

BORIS VUJČIĆ Governor of the Croatian National Bank

The case of Agrokor certainly did not bring Croatia down to its knees, as some critics claimed, nor are there big concerns that something like this will happen in the future – says Boris Vujčić, the Governor of the Croatian National Bank (CNB). But there are other reasons that the public and, above all, the public policy stakeholders have to pay attention to if they want the current positive

trends to be sustainable over a longer period of time. The announced preparations for the introduction of the euro will certainly not lead to instability in economic developments, but can only help Croatia to be even more appealing to both investors and tourists - – Govenror Vujačić says for Diplomacy & Commerce. How would your rate the current macroeconomic situation in Croatia?

— According to the CNB's estimates, the last year's dynamics of real GDP growth was similar to that of 2016, with a widespread growth again. Domestic demand has increased, and the Agrokor crisis, as

we expected, has had a limited impact, which has resulted in reduced investments. The growth in goods and service export continued to contribute the most to the overall economic growth, along with the continued dynamic increase in export of goods, as did the record tourist season, which was reflected in the high year-on-year increase in export of services in the first nine months of last year. In the beginning of 2018, consumer confidence continued to grow, and this was clearly influenced by favourable trends in the labour market, i.e. the continuation of the employment growth trend which began in mid-2014, along with the simultaneous decrease

in the unemployment rate. In addition to the employment growth, there was a relatively strong growth in gross and net wages. Increase in consumer prices remains to be minimal which is not only true for Croatia, but for most EU countries. The average annual consumer price inflation rate was slightly above 1% last year, with the food prices contributing the most to the overall average inflation. Last year there was also a noticeable surplus of the current and capital account, while the foreign indebtedness indicators improved. The state of public finances is also considerably more favourable. According to the Finance Minister, a surplus in the government budget

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balance was recorded last year, which means that a significant fiscal adjustment was accomplished on an annual basis. Such developements are positively reflected in the government debt dynamics, which share in the national GDP was also noticeably reduced. Despite the positive economic trends, we should point out that there are still significant vulnerabilities and structural problems noticeable in the Croatian economy. Although the overall government debt and external debt continued to fall last year, they still remain high, which poses a significant risk to the economy in the event of macroeconomic shocks. Reduced unemployment rate is partly a reflection of the emigration of mostly younger workforce, which is certainly not good as it adversely affects the already low potential growth in the mid- and long-term. Substantial structural changes have to be carried out in order to boost the growth.

nomic activity growth, whereby productivity growth will be the key to boosting growth rate. Namely, demographic trends in Croatia are very unfavourable, and in the midterm, labour factors are expected to have a negative contribution to GDP growth. We also expect a positive contribution of investments to be lower compared to the pre-crisis period which was marked by infrastructure expansion. Increasing labour productivity is possible only with internal reorganization and cost-cutting, continuous training of employees and the improvement of the existing and the use of new technologies. In this context, we also need a predictable legislative and institutional framework,

— The lack of adequate workforce is beginning to pose an ever greater problem for businesses in Croatia, which could turn into a significant limiting factor for stronger economic activity growth in the future. Namely, according to the Survey on Small and Medium Enterprises Access to Financing, which the CNB conducted for the second consecutive time in late 2017, Croatian businesses people cited unfavourable regulatory environment as one of the main limiting factors in doing business, in addition to the availability of experts. The difficulties with finding quality workers can partly be due to a significant outflow of working-age population, which

I BELIEVE THAT WE CAN BECOME SERIOUS CANDIDATE FOR ENTERING THE EXCHANGE RATE MECHANISM IN TWO TO THREE YEAR, ASSUMING THAT THE CURRENT TREND OF DECREASING MACROECONOMIC IMBALANCES, INCLUDING PUBLIC DEBT, CONTINUES

You announced a lower economic growth in 2018 relative to 2017. On what basis did you make such estimates and what are your proposals to overcome it?

— In 2018, we expect the continuation of real GDP growth, although economic growth could be slightly lower compared to 2017. A slight slowdown is a refledtion of the expectations of a slower growth in goods and service export, primarily due to the expected slowdown in the growth of export of travel services after several years of an exceptionally strong increase. However, exports, or foreign demand for our goods and services, will continue to contribute significantly to the overall economic growth in 2018. In terms of domestic demand in 2018, we expect a slight decline in personal spending is due to the loss of the beneficial effects of tax changes and the consequent decline in the growth of real net wages, as well as due to a somewhat lower employment growth. Household consumption could still have the biggest contribution to GDP growth. At the same time, we expect a more robust growth of gross investments in fixed capital formation due to a more pronounced utilization of EU funds owing to which the contribution of capital investments in economic growth could come close to the contribution of personal consumption. The mid-term projections also point to a trend of decreasing eco-

tional Bank has been continuosly implementing a series of measures to mitigate the adverse effects of the global crisis on the Croatian economy and reverse the negative economic trends. The results of the aforementioned Survey on Access to Financing confirm that the efforts and measures carried out by the CNB have had an effect, i.e. that access to finance is currently the least of the business-related problems of small and medium enterprises. However, the Croatian National Bank can not resolve the structural problems of the economy, and the lack of adequate workforce is partly one of those problems. Employers find it difficult to find workers despite the fact that the unemployment rate is still in double digits and that Croatia still has one of the lowest participation rates in the EU. This suggests that there is a significant number of workers with inadequate skills, that is, their knowledge does not meet the needs of employers. The measures that can resolve this problem go beyond the scope of monetary policy. They are primarily related to the strengthening of active labour market policies and more so to the better alignment of educational, vocational and university curricula with the real needs of the labour market. The profit generated by the banking sector in 2017 was 50% lower than in 2016. Based on the data available to the CNB, what trends are foreseen for 2018 in terms of the banking sector and the entire financial system?

the elimination of various obstacles to doing business, greater investments and a more advanced education system. Without this, it will be difficult to realize the inclusive, economic, social and ecologically sustainable growth in Croatia, and to reduce the difference between domestic and European income. In short, structural reforms are needed. You have also pointed to the problem of availability of experts or rather to theh problem with the quality of the workforce. What are mechanisms can the CNB use to assist the Croatian Government in overcoming these issues, and what is the solution of this problem?

intensified after Croatia joined the EU. Economics literature suggests that the decision on mobility is primarily influenced by economic factors, so it is not unusual that the long-lasting recession in Croatia and the opening up of the labour market in othe, economically more developed Member States led to a strong population decrease. Therefore, all measures aimed at boosting economic growth in Croatia and strengthening convergence in real incomes between Croatia and the developed EU countries also have a positive effect on the reduction of population emigration. Since 2008, or rather after the onset of the recession in Croatia and the problems in international financial market, the Croatian Na-

— The operational results of the banking sector improved slightly in 2017 compared to the previous year. However, this is not reflected in profits for two reasons: the first is the sale of VISA shares, a onetime positive event in 2016, which was carried out by virtually all major Croatian banks that in the process of restructuring VISA. On the other hand, Agrokor's insolvency was a major negative event in 2017. As the banks' response to this development was good in a way that they made major value adjustments on Agrokor's placements, this had a significant impact on the results. These two events combined created an illusion of the great volatility of the banking system's profitability. However, this impression, in fact, has no basis in the operational result of banks. This year, we expect the banks to be profitable, further improving their operating results. It is possible that more adjustments will

be required in order to finalize the process in Agrokor, but we think that the banks have accepted the majority of the adjustments. Therefore, we can safely say that the Croatian banking system will remain profitable and well capitalized this year. You have stated that the Government has sufficient professional capacity to continue working on the required reforms, regardless of the current situation in Agrokor. Do you think that worse is yet to come for Agrokor and what kind of developments can still jeopardize the country's financial stability?

— Following the adoption of the Law on Extraordinary Administration Procedure and Liquidity Insurance for Agrokor, the risks to financial stability resulting from the crisis spilling over to other companies have been considerably reduced. The option of a chaotic restructuring is now perceived as a less probable event. However, the conducted resistance test shows that the domestic banking system would be able to withstand such shock, even if it is combined with the slowdown in economic growth and rising financing costs. The financial system's resistance is largely due to the great effort invested by the CNB in keeping the exposure of the banking system to Agrokor within the legal framework. In addition to current activities, the introduction of the euro is certainly the biggest and most serious task awaiting Croatia. The preparations for this have already started. When do you expect Croatia to make the first step in the exchange rate mechanism and how much is the entire process of introducing the euro going last? What criteria does Croatia have to meet?

— The key prerequisite for making the first step – i.e. entering the

exchange rate mechanism – is to continue with the steady implementation of fiscal consolidation and accelerating reform efforts to boost potential growth. Such policy will contribute to the further reduction of macroeconomic imbalances, will increase economic resistance to possible future shocks, and thus persuade European member states and European institutions that we are ready for the initial step on road towards introducing the euro as our official currency. I believe that we can become serious candidate for entering the exchange rate mechanism in two to three year, assuming that the current trend of decreasing macroeconomic imbalances, including public debt, continues.

figure. Do you fear, with the introduction of the euro, product prices could go up?

— I am convinced that the fear of a significant increase in product prices in shops is not justified at all because the prices in the Croatian retail facilities are already quite comparable with those in the European Union. The positive experiences of Member States that have already introduced the euro suggest that dual pricing in the national currency and the euro is an important element that contributes to preventing unjustified price increases due to rounding off that happens when one currency is replaced with other. This practice certainly contributed to the fact that the estimated impact of the euro

AS A TOURIST COUNTRY, CROATIA COULD HAVE A BETTER ACCESS TO FOREING CAPITAL FOLLOWING THE INTRODUCTION OF THE EURO AND FURTHER INCREASE ITS COMPETITIVENESS IN THE EUROPEAN TOURISM MARKET After we start participating in the exchange rate mechanism, we will have to meet the four criteria for introduction of the euro during our participation in the exchange rate mechanism for at least two years. These are low inflation, sustainable public finances, stable exchange rate and relatively low interest rates. These criteria are de facto already fulfilled, so I personally believe that we will meet all the prerequisites and do everything we can to shorten the time spent in the exchange rate mechanism at the required minimum, as well as to enjoy in all the benefits of the eurozone membership as soon as possible. You have also said that, when the time is right, you are going to display the prices both in kunas and euros to prevent the rounding off of prices to a higher

introduction on the inflation in the new member states that introduced the euro was very mild and temporary, and it averaged at 0.23 percentage points. A similar effect on the prices is expected in Croatia after the introduction of the euro. What do businesses stand to gain and lose from the introduction of the euro compared to the current situation?

— In the countries like Croatia, the introduction of the euro usually results in lower macroeconomic risks and higher efficiency and competitiveness. By switching to the euro, the risk associated with the fluctuation of the euro / national currency exchange rate disappears. This in practice means that, after the introduction of the euro, the debtors, which have euro-denominated liabilities, will no longer be sensitive

to foreign exchange fluctuations because they will generate their income in the predominant currency of their liabilities. Companies that operate internationally will also have it easier because the uncertainty about the impact of the euro exchange rate on the relative prices of import and export products, as well as the costs of currency exchange and currency risk instruments, will disappear. In addition, membership in the eurozone makes the country more credible in international financial markets, which can ensure a more favourable access to foreign capital. This credibility is especially important in times of financial crisis when international investors are reluctant to take a risk. As a tourist country, Croatia will certainly benefit from the fact that guests from the eurozone will be able to pay for their holiday expenses in their own currency, which could further increase the country's competitiveness in the European tourism market. With the introduction of the euro, small, open-end and highly euroized countries like Croatia will not lose much. Actually, the space for conducting autonomous monetary policy in such countries is very narrow, and by transferring the authority to manage the monetary policy to the European Central Bank, the incurred costs on these countries are not really high. Furthermore, the fear of a sudden hike in prices and a drop in living standard has proved unfounded. Yet, viewed at a micro level, it is certain that some subjects will be harmed by the introduction of the euro. This applies primarily to companies relying on earnings generated by currency exchange operations, namely exchange offices and banks. We should also underline that banks will be able to reduce the loss caused by the loss of revenue from currency exchange operations by significantly reducing the cost of regulation.

YEAR OF POSITIVE TRENDS What is your message to decision makers and companies? What kind of year they can expect from 2018, and what do you, as the Governor of the Croatian National Bank, see as the biggest challenge? — This year will be marked by similar trends as those in 2017, i.e. positive macroeconomic developments, with a solid GDP growth, continued fiscal consolidation, decline in public debt and a considerable surplus in current and capital account balances. In the monetary sphere, this will mean further appreciation pressures on the domestic currency that

the CNB will continue to fight against. The interest rates will remain low. However, we are nearing the end of extremely low interest rate policy, namely the normalization of monetary policy is already knocking on our door. The FED has already started it. The fundamental challenge lies in the segment of structural policies, which I have been talking about for a long time, namely improving business and investment climate and increasing efficiency of the public and the business sector. This is a core prerequisite for faster growth of productivity and thus of higher living standard.

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T H E IR G E N E RAT IO N

Young Italians are Fed up With the Traditional Political Parties But there are not very many of them

For the first time in its brief history, Italy’s maverick Five Star Movement (M5S) is going into a general election campaign as the front-runner. On December 28th President Sergio Mattarella dissolved parliament, clearing the way for a vote on March 4th. The latest polls give the M5S, which advocates direct, internet-based democracy and a hotch-potch of left- and right-wing policies, a lead of more than three points over the centre-left Democratic Party (PD), the dominant partner in Paolo Gentiloni’s coalition government. The inexperienced M5S, founded less than nine years ago, could thus get first crack at forming a government—a prospect that troubles markets already worried by Italy’s huge public debt (132% of GDP at the end of 2016). Like other populist groups in Europe, the M5S thrives on frustrated expectations. In Italy disillusion is most intense among the young and educated. Two-and-a half years after graduating, Valentina Fatichenti works six months in every 12 helping students at an American university campus in her native Florence. Otherwise, she scrapes a precarious living teaching English in primary schools, translating and, occasionally, waitressing. She has decided to vote for the M5S. Its appeal? “New faces,” she says. The M5S chooses its candidates in online polls of its members. Its candidate for prime minister, Luigi Di Maio, is 31, just three years older than Ms Fatichenti (the better known Beppe Grillo, M5S’s founder, is ineligible to run for parliament due to a conviction for manslaughter, in a car accident). Nando Pagnoncelli of Ipsos, a pollster, says 25- to 34-year-olds are the group most likely to support M5S: four points above the average. Young voters are also more likely than their elders to back other radical parties such as the Brothers of Italy (FdI), which has neo-fascist roots, and the Northern League, which wants less immigration and more autonomy for northern Italy. Young Italians resent the older generations, but not their parents, says Alessandro Rosina, who co-ordinated a recent study for the Istituto Toniolo, a think-tank. They are hostile to mainstream parties, trade unions and an ill-defined “ruling class”, which they blame for the vast gap between their incomes, job prospects and pension pots and those of their elders. The Intergenerational Foundation’s most recent “intergenerational fairness index” ranks Italy second from bottom in Europe, ahead of only Greece. In 2014, the last year for which comparative data are available, what the government spent

on Italy’s past (ie, on pensions) was more than four times what it spent on its future (ie, on education and training). But then, as Mr Pagnoncelli notes, it is the elderly who have the electoral clout. Voters over 55 make up 41% of the electorate, compared with 22% under 35—the effect of a steep decline in the birth rate dating back to the 1970s (see chart). Many of the causes of Italy’s generation gap can be found in political choices made in the past 20 years that have favoured the old over the young. Italy’s low birth rate, coupled with

YOUNG VOTERS ARE ALSO MORE LIKELY THAN THEIR ELDERS TO BACK RADICAL PARTIES

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disappointing economic growth, has prodded successive governments into pension reforms. But the way in which these have been carried out has placed on younger, generally lower-earning, workers the burden of providing not only for their own pensions, but also for those of the already retired. Labour reforms in 1997 and 2003 made it easier for bosses to hire new workers on shortterm contracts, but did little to erode the job security of those already in permanent employment. And since the latter, along with pensioners, make up the bulk of trade-union membership, the unions have been keener to defend the privileges of those with jobs for life than to campaign for a more equitable distribution of benefits. Ms Fatichenti’s family is typical: her father toiled in the same factory for 40 years, her mother was a janitor. Ms Fatichenti has a university education. Yet her take-home pay in the six months when she is under contract is €300 a month less than that of her boyfriend, who works in a street market. “A lot of employers don’t want graduates because they don’t have any practical experience,” she says. That points to a weakness stressed in Mr Rosina’s report: a lack of connection between education and the labour market. Italy has the EU’s highest proportion of under-35s not in education, employment or training: 30.7% in 2016, compared with 12.4% in Germany. A big informal economy allows young workers to arrangiarsi (get by, with odd jobs). And Italy’s EU membership lets them search for work in 27 other countries. An estimated 600,000 Italians live in Britain; not even the prospect of Brexit has stemmed the flow. In the 12 months to mid-2017, whereas the number of Poles entering the British labour market dropped by 26%, the number of Italians rose by 2%. A third factor easing the plight of the young is family support. Italian parents let their children live with them far longer than other European parents. In 2016 only a third of 18-35s had left their parental homes, compared with 63% in France. Though changes to pension and employment rules could go some way towards closing Italy’s generation gap, what is really needed, reckons Mr Rosina, is a change of outlook, both among teachers, who should equip young Italians with life skills, and employers, who need to start seeing them not as easily disposable cheap labour, but as sources of innovation. From The Economist, published under licence. The original article, in English, can be found on www.economist.com

I NTERVIEW

Preservation of Croatian Cultural Identity is Our Priority One of the central issues of today's cultural policies is ensuring the preservation of cultural diversity in the time of globalization

NINA OBULJEN KORŽINEK Croatian Minister of Culture

Globalization has undoubtedly brought incredible opportunities for new forms of cultural cooperation and getting acquainted with new cultures - says Nina Obuljen Koržinek, Minister of Culture of the Republic of Croatia, in an interview for our magazine. At the same time, globalization brings a number of risks to the survival of culture in the lesser populated nations who have difficulties promoting their cultural and creative industries in their own countries, let alone abroad - Minister Obuljen Koržinek adds. How do you view globalization and preservation of the Croatian cultural identity?

— On the very day that I was sworn in as a minister, along with other cabinet members, Malta was hosting the World Cultural Forum, which I was a programme director of and for which I chose the topic of Cultural Leadership. I researched the topic of the influence of globalization and various other

international integration processes on culture in my scientific work, professional work, and in the Ministry of Culture, during previous terms, through numerous international networks, associations and projects that I cooperated with. Our priority is preserving the Croatian cultural identity, which is also one of the central issues of today's cultural policies. You were an EU coordinator in the Croatian Ministry of Culture, and a member of the negotiation team in Croatia's accession to the EU. How much of the European money has ended up in the Croatian culture, and can that amount increase?

media workers, as well as to strong assistance from the colleagues who were in charge of administrative management of the offices for the promotion of the said programmes in Croatia, we managed to withdraw successfully EU funds already in the first few years. Parallel to the commencement of these two programmes, the opportunities for financing infrastructure and implementing collaborative projects through cross-border and pre-accession funds opened up. By becoming a full-fledged EU member, Croatia was given the opportunity to direct a part of the cohesion funds towards culture. Eighty cultural heritage restoration projects relating

THE NEW CULTURE FINANCING LAW THAT WILL CREATE PREREQUISITES FOR A STABLE LONGSTANDING FINANCING OF CULTURE — The European funds for culture and media come from several different sources. We joined the Culture Programme (2007) and the MEDIA Programme (2008) at the very beginning of the accession process. Due to the fact that we had prepared well and owing to networking between cultural and

to tourism are currently being implemented or prepared. The money from the European Social Fund is used to fund projects implemented under the public calls 'Art and Culture 54+' and 'Culture in the Centre - Participatory Governance of Cultural Institutions'. Also, we are going to launch a public call for

proposals for funding under the Community Media Programme. In the next stage, we are going to use the money from the European Social Fund to finance important reform projects like the implementation of the National Strategy for Promotion of Reading. We are going to discuss whether we could have withdrawn more funds at the end of this financial perspective. Personally, I think that, in terms of programming for the next financial perspective, we need to be better at setting key objectives in order to be able to finance more cultural infrastructure requirements from the European funds in the future. After the European cultural gathering in Malta, you said that "almost all cultural operators in the EU were trapped in the constant fight for funding, audiences, programmes". Is this also the case with Croatia? What is your Ministry doing to create enough space for more balanced views in culture, or rather for the focus to be more on content than financing?

— Surviving in culture and art in general is definitely not easy nowadays. Everybody is constantly struggling for new projects, and

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new sources of funding. Cultural workers have to adapt their programmes to the priorities of financiers. There are very few of them who can boast stable funding that will help artists to focus solely on art. Today, everyone must also possess a whole variety of managerial skills and know-how. In Croatia, we provide a relatively stable support to cultural institutions, even though they don't have sufficient resources due to budgetary constraints. We have made great strides by establishing the “Kultura Nova” Foundation and directing financial programming funds, especially the lottery generated ones, towards independent cultural organisations. At the beginning of your term in the office, you said that cultural workers could expect the government to provide higher budget allocations for culture, which should gradually reach the European minimum of one percent in four years' time. How close are we to this goal when we look at the culture budget for 2018?

— Bearing in mind that this share stood at only 0.56% a couple of years ago, I am happy because there is evident progress here. Of course, I am only relatively happy with the Ministry's overall budget. In terms of own source revenues, we are still below the amount allocated to culture prior to the onset of the financial crisis. However, I am confident that these funds will gradually grow during my term in the office. At the same time, we are working on better management of our funds. We are preparing a new culture financing law that will create prerequisites for a stable longstanding financing of culture. The tax reform has generated additional revenues to local self-governments. If we bear in mind that in Croatia more than 35% of public funds for culture are provided by the Ministry of Culture, about one-third by the City of Zagreb, and one third by other

cities and municipalities that are usually the founders of public institutions, it is important to create prerequisites for boosting cultural appropriations at the local level. How much is the Ministry's priority to secure a balanced cultural development and create opportunities for all people in Croatia to participate in culture reflected in the Ministry's work schedule for this and next year?

— Last year, our cultural policy was characterized by the implementation of urgent and concrete measures due to the growing crisis in literary world and publishing, which are anyway one of the most vulnerable segments. In cooperation with the Ministry of Economy, Entrepreneurship and Crafts and through the regular support programmes, we have implemented

network and the theatre and music performance network as the most recognizable measures. We have recently adopted the National Strategy for Promotion of Reading as a strategic document that will contribute to the development of the reading culture, encourage the development of reading audiences, and make reading more accessible. We have re-launched the Backpack (Full) of Culture project which is the national supplementary curriculum support programme for kindergartens, primary and secondary schools related to arts and culture. The project is implemented by artists in those areas and smaller communities where art programmes are less accessible with the aim of raising the level of participation in culture and making culture more accessible.

THE MINISTRY OF CULTURE'S BUDGET FOR 2018 HAS GONE UP BY 10% RELATIVE OF 2017 WHEN WE GOT ONLY AROUND 0.09% OF THE TOTAL STATE BUDGET additional measures and launched tenders aimed specifically at bolstering the whole branch. We singled out attracting audiences and participation in culture as the main goals of our cultural policy. Last year, we launched a public call for the implementation of a pilot project relating to Audience Development Promotion to which we allocated a total of HRK 500,000.00. We are going to fund activities in all areas of culture with the aim of sensitizing audiences to all types of art through different methods and practices. The interest in the project has been enormous and we now realize that we need to invest significant resources in this area in order to help each citizen participate in cultural life. The Croatian cultural policy has a long tradition of encouraging participation. I would like to mention the public libraries

Both last and this year, the Ministry has been particularly active in the legislative agenda. Can you tell us more about the main directions of the Ministry's activities in the institutional regulation of the cultural sector?

— In 2017, the Ministry of Culture launched a whole series of preparatory activities in the normative segment. A total of 21 consultations with the public were conducted for the purpose of gathering information on the interests, attitudes and proposals the public had in the process of adopting regulations, i.e. laws, strategies and other acts. We are getting ready to revise many laws like the Law on Archives that has gone through the first reading in the Parliament, the Law on Museums which is being considered by the Government, and the Library Law which will soon be forwarded for a public hearing. The

Law on Audiovisual Activities is ready to be sent to the government procedure. This year, we are planning to adopt a new Law on Financing of Public Needs in Culture, the Law on Artists, the Law on Theatre and the Law on Electronic Media. Subsequently, in 2019, we will start revising the Media Law. I believe that, next year, we will also begin the revision of the Law on the Protection and Conservation of Cultural Property, which should be finished by the end of 2019 or in early 2020. Are you satisfied with the preparations on promoting Rijeka as the European Capital of Culture 2020?

— Taking into account national significance and importance of the project like the European Capital of Culture and the opportunity to create and promote a positive image of Croatia in the global context, which will chronologically coincide with Croatia's presidency over the EU, the Government of the Republic of Croatia has been providing adequate support to the project at the national level. A number of ministries are participating in the monitoring and financing of the project. Apart from the Ministry of Culture, which is coordinating the work of the Inter-Ministerial Committee, there is also the Ministry of Foreign and European Affairs, the Ministry of Science and Education, the Ministry of Tourism, the Ministry of Demographics, Family, Youth and Social Policy, the Ministry of Regional Development and EU Funds, the Ministry of Finance, the Ministry of Economy, Entrepreneurship and Crafts, and the Ministry of the Sea, Transport and Infrastructure. In terms of complexity (both organizational and financial), the European Capital of Culture project exceeds all the projects we have been implementing in Croatia so it is very important to cooperate with the City of Rijeka and the Primorje-Gorski Kotar County in order to successfully implement the project that is being drafted in Rijeka.

PRESERVING SYSTEMATIC SUPPORT FOR THE MEDIA In 2018, the Ministry of Culture plans to tackle the media sector regulation. What are your most important goals in this regard? — One of the most important goals is to devise the key guidelines and the framework for the development of media and media policy, and just like most legal provisions, the main changes must be adapted to new technological challenges. We have to change and supplement the Law on Electronic Media to comply with

the amendments to the Directive on Audiovisual Media Services. In the segment of electronic media, we need to adjust the regulation to suit the needs of the media operating in a new, digital environment. It is important to preserve support systems in all parts of the media market - public, commercial, and non-profit. It is also important to better define media concentration by taking into account the convergence of different platforms and services.

NATIONAL DAYS

ARRI VALS & D EPAR T UR E S

in March

SVEN THORSTEN POTTHOFF

New director of AHK

BULGARIA

Sven Thorsten Potthoff has been appointed new director of the German-Croatian Chamber of Industry and Commerce (AHK) in Zagreb. For four years, Mr. Potthoff was head of consulting services at DEInternational in the German Chambers of Commerce Worldwide Network (DIHK), which is an umbrella organization for 79 chambers of industry and commerce (IHK) in Germany and German foreign trade chambers (AHK) which represent

German economic interests in 130 locations in 90 countries. Prior to this position, he worked for Germany Trade & Invest Organization (GTAI) and the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO). Apart from managing the German-Croatian Chamber of Industry and Commerce, Sven Thorsten Potthof will also manage the Delegation of German Industry and Commerce in Bosnia and Herzegovina.

National Day

IRELAND

ational Day N (St. Patrick’s Day)

TUNISIA

National Day

NAMIBIA

ational Day N (Independence Day)

PAKISTAN

JOSIP FUNDA New Senior Economist at World Bank

Josip Funda is the new Senior Economist for Croatia and Slovenia at the World Bank. Previously, he was head of Section for Macroeconomic Analysis at the Croatian National Bank. His new duties

include analyzing GDP trends and projections, public finances issues, and identifying the segments in which Croatia lags behind other countries the most. Funda, who is a native of Varaždin, has 15 years of experience in macroeconomic and fiscal policy research. Apart from working for the Croatian central bank, he also worked as a desk economist for fiscal policy at the European Central Bank.

National Day

TINA PUHALO GRLADINOVIĆ

New Director of K Pivovari

Tina Puhalo Grladinović is the new director of K Pivovario which is a daughter company of the biggest Croatian beer producer, Zagrebačka Pivovara. Pri-

GREECE

National Day

or to this appointment, Puhalo Grladinović was the head of Corporate Communications at Zagrebačka Pivovara. In her new position, Puhalo Grladinović will be responsible for managing operations of the iconic brewery Pivana, and the recently established Grif's Microbrewery, which produces unpasteurized and unfiltered special types of beers.

ROBERT KOHORST New U.S. Ambassador to Croatia

ANTAL BEKEFI New General Manager, British American Tobacco (BAT)

The former General Manager of BAT France, Antal Bekefi is now the new General Manager for the Adria region. The previous General Manager for the Adria Region, Ram Addanki has been promoted to a regional position in BAT. Bekefi has been a managing executive with the company for almost 20 years. As of October last year, the Adria region has been expanded to include Serbia, Montenegro, Macedonia, Albania and Kosovo, in addition to Slovenia, Croatia and Bosnia and Herzgovina. Together with Bulgaria and Romania, the Adria Region has become a part of BAT's new organization area – Southern and Central Europe (SCEA).

KATARINA ŠIBER MAKAR New Chief Digital Officer of IN2 Group

Following the Canadian company Constellation Software Inc acquiring the biggest Croatian software company, Katarina Šiber Makar become a board member at IN2 Group in June 2016. She came to this position from Deutsche Telekom where she was Vice President for E-Transformation, covering 12 countries. Prior to that, she was a managing executive in Croatian Telekom, T-Mobile, Barr Pharmaceuticals and Pliva. IN2 is one of the oldest and largest IT companies in the region. Although Constellation Software Inc. took over the IN2 Group via its daughter company, Vela Operating Group, IN2 will continue to operate independently with a strong focus on existing customers and markets in which company is already present.

U.S. President Donald Trump has appointed Robert Kohorst to assume the post of U.S. ambassador to Croatia. Kohorst was a member of the board that was in charge of raising funds during Trump's election campaign. He will replace Julieta Valls Noyes, who was the U.S. Ambassador to Croatia for just over three years, before her term expires.

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I NTERVIEW

We Seek to Protect European Unity Taking over the rotating Presidency of the Council of the EU is both a challenge and a responsibility for us. I hope that over the next six months all of you here will get to know more of these multiple faces of Bulgaria as the good student, the strong economic performer, and the role model for ethnic tolerance H.E. TANYA DIMITROVA Bulgarian Ambassador

During the last ten years of its EU membership, Bulgaria has changed a lot - says H.E. Ms. Tanya Dimitrova, the Bulgarian Ambassador to Croatia. Today, the country has the chance to shape the EU's policies in key areas like the economy and finance, migration, social affairs, energy and the environment. “We are aware that the expectations are high, but I am confident that we will manage to respond to

them in the best possible way. For us, the Presidency is also a chance to show our partners a different side of Bulgaria”, says the ambassador. What changes are the most visible?

about visible changes and contributing to year-on-year economic growth of 3.8%. Bulgaria is a country that is protecting the EU's external border as responsibly as any Schengen area member, without in fact being a part of Schengen.

WE WANT TO ACT AS A BRIDGE THAT GOES BOTH WAYS – CONVEYING THE EU'S MESSAGES TO THE WESTERN BALKANS AND ENSURING THAT THEY DELIVER ON THE EU'S DEMANDS — For 10 years, Europe has been a part of our everyday life, and Bulgaria has established itself as its loyal member. It is a country in which cohesion funds are bringing

Bulgaria is a country which currency – the lev – is governed by the same rules as the euro, and which macroeconomic indicators are impeccable even though it is not part

of the Eurozone. This is a country where different religions and ethnicities live together in peace. In the Programme of Priorities of the Bulgarian Presidency, which was approved at the meeting of the Council of EU Ministers last December, Bulgaria states that its goal is to respond to „the real needs of European citizens and turn challenges into opportunities “. Could you define „the real needs” and „challenges“ in this respect?

— Our Presidency motto – ‘United We Stand Strong’ - conveys the message that we will seek to protect and strengthen European unity in everything we do. We will

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focus on topics that matter to all our citizens: creating more jobs, further improving the quality of life in Europe, making sure that our borders are well-protected and guaranteeing that our people have the digital skills required by digital economy. We will look for solutions that unite, no matter how challenging this may be at times. There is a lot of work ahead of us. I hope we will do it in the best way possible, following on from the good work done by the Estonian Presidency and setting the stage for the succeeding Austrian Presidency. Because only united can we stand strong.

countries and expanding the market for innovative products made in Croatia and Bulgaria. Croatia and Bulgaria are two young EU members with similar problems. How would you rate the relations between official Zagreb and Sofia, and are there any unresolved issues between the two?

The official Sofia has four priorities relating to its presidency. Which are these?

— The three pillars of our Presidency programme are stability, security and solidarity. We plan to achieve these goals by implementing three key principles: consensus, competitiveness, cohesion. We will work on four main strands: economic growth, social cohesion and youth, security and stability for a stronger and united Europe, the European perspective of the Western Balkans and the digital economy and skills of the future. The future of the Western Balkans is naturally very important to us. Stability and prosperity of the region are indispensable for the security of the whole continent. We are living in the time when the Western Balkan countries have a historic opportunity and we need to encourage them to do their part in the best possible way. Secondly, now more than ever, Europe needs to be united. With one of our Member States set to leave the EU, and considering global challenges of increasing frequency and scope, our only chance of moving forward depends on our playing together as a team. To that end, we are organising a summit of the EU leaders and the leaders of the Western Balkan countries in Sofia, on 17th May 2018. Thirdly, Bulgaria joined the EU only a decade ago. We have very

CROATIA'S EU MEMBERSHIP IS AN IMPORTANT SIGN FOR OTHER COUNTRIES IN THE REGION THAT EUROPEAN INTEGRATION IS AN ACHIEVABLE GOAL recent memories of what being a candidate country feels like. We therefore believe that we can be a bridge between the Western Balkans and the EU. The single digital market, the access to innovation, the link between education and the requirements of the future labour market are some of the priorities of the Bulgarian Presidency with the focus on young people. How are you, as the Bulgarian Embassy in Zagreb, going to be involved in resolving and implementing these issues and priorities?

— The role of the MS Presiding over the Council is to function as a mediator in the process of fulfilling the goals of all the MS. The Bulgarian embassy in Zagreb will continue being an initiator and broker in the negotiations for

signing agreements for cooperation between scientific institutions and universities from our two countries. We do this primarily for the future of the young people and as an investment in the prosperous future of next generations by identifying and developing the right skills and competences needed. Through these platforms we are developing youth competitiveness in the labour market and we are primarily encouraging their entrepreneurial spirit which is the basis of the expected economic growth in the coming years. One of the most evident examples of the importance that we attach to our priority is the cooperation agreement on digital economy signed between the University of Zagreb’s Faculty of Graphic Arts and the Academy of Arts in Sofia. Another example is our contribution to linking the start-ups in our two

— We highly appreciate our friendly bilateral relations with the tradition that spans 12 centuries, and with no open or unresolved issues. Bulgaria is among the first MS of the EU to ratify the Croatia Accession Treaty. We are continuing to maintain an active exchange of expertise and strengthen the basis for joint foreign policy steps. We are deepening the bilateral parliamentary cooperation and stepping up contacts in all areas, with a focus on economic and cultural cooperation, education and science. Both countries support the integration of the countries of the region in the EU and NATO, providing the established criteria are duly met. Our active political dialogue, developed continuously through the exchange of high-level visits, is a clear evidence of a broad coincidence in approaches and positions based on the common European orientation and the general interest in strengthening the regional security. Croatia will preside over the EU in the first half of 2020. As a representative of the country that is currently presiding over the EU, are you going to help Croatia in preparing for the presidency and with the logistic aspects of it?

— We would gladly provide all the expertise we have accumulated during our presidency both through thematic bilateral consultations envisaged in all formats and levels possible – MFA, parliamentary, respective ministries and involved institutions and also on a more regular and informal basis through our daily contacts with our colleagues at the Croatian MFEA.

MUCH WORK TO DO What does the EU presidency entail in organisational and logistic sense (meetings, summits, events)? — The Presidency’s logistics comprises of several key avenues – communication strategy and public diplomacy, cultural programme, accommodation and conference

venues, liaison assistance and many others. During our Presidency we will host 12 informal councils, over 25 high-level events, more than 200 political and expert level events, 5 parliamentary dimension events and the EU-Balkan states summit on 17th May 2018.

I NTERVIEW

We are Progressing, We Exist Biljana Borzana has approximately another year of her term in the office to go during which she plans to finalize all the works she has started with one of the most important being formulating a unique position of the European Parliament, and opening the way towards elimination of double standards in quality of products sold in eastern and western markets

BILJANA BORZAN The Republic of Croatia’s representative in the European Parliament

Although the people living in the newest EU member states, including Croatia, often think that there has been no change in the quality of their lives since becoming members of the European family, this is not entirely true. Numerous European Parliament representatives, including Biljana Borzan, have been demonstrating to their their fellow citizens that they can successfully lobby for their consumer rights both in European bodies and in Croatia.

Now that, thanks to your effort, it has been documented that the products of the same brand but different quality are sold in Eastern European countries, we have heard that certain companies are still not bothered by this and have no intention of changing their double standards. How do you respond to this new challenge?

— The research I conducted in collaboration with the Croatian Food Agency has resulted in Croatian consumers now being better informed. Additionally, after it had been ascertained that the HIPP

baby food sold in Croatia was less healthy compared to that sold in other countries, HIPP pulled the product off the market and replaced it with the one of German quality. I would like to invite other producers to follow in their footsteps. Last week, Ferrero and Bahlsen undertook to start selling the same quality products. So, some progress has been made. By the same token, the current political environment is very good and changes in the EU legislation will be made that will force companies to adhere to the same quality standards.

THIS YEAR, I WILL BE GIVING OUT THE BEST DONOR AWARD TO COMPANIES THAT DONATED THE BIGGEST AMOUNT OF FOOD IN 2017. I HOPE WE WILL ENCOURAGE THE ENTIRE SECTOR TO GET MORE ACTIVE IN THIS

Speaking from your own experiences, how willing are consumers to fight for their rights and how much support do they get from European and national institutions in that? How much do institutions understand consumer needs, and how much company needs?

— Over 80% of Croatian citizens think that multinational companies are treating them like second rate citizens. Most of them are basing their opinion on the fact that they have experienced that in practice. They mostly complain about food because that affects them the most, as well as about the quality of vehicles, domestic appliances and even agricultural compounds. We have been talking about this problem for decades, but unless you have it documented, nobody will pay any attention to you. Back

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in the day, I remember hearing the EU authorities claiming that we had nothing to complain about providing that a product is safe for consumption, i.e. it won’t poison us, but, now, after certain research has been carried out, the European Parliament will start formulating its official stance on the matter.

I HAVE BEEN TALKING TO THE CROATIAN GOVERNMENT ABOUT PROVIDING COFINANCING FROM THE EU FUNDS FOR INSTALLATION OF LIFTS IN 16,000 MULTI-STOREY BUILDINGS WHERE RESIDENTS ARE MOSTLY SENIOR CITIZENS, DISABLED PEOPLE AND FAMILIES WITH SMALL CHILDREN

To what extent are production and sales rules (for food, skin care products, household cleaning products etc) incorporated into the Croatian legislation and how can we improve these rules to secure better quality? What do you recommend?

— This problem can only be solved at the EU level because we are all in the common market. This is also an advantage of EU membership. If we were not an EU country, we would have no influence over the quality of the imported products.

What kind of communication do large multinational corporations and legislators have and how much are European Parliament’s recommendations and conclusions morally binding to them in terms of quality? Or are we talking about completely different interests here?

— Unfortunately, over 90 million tonnes of food are wasted annually in the EU, while at the same time, a quarter of the EU citizens are at risk of poverty. For several decades, some Member States have been systematically working towards increasing food donations, while others, mostly in the east, have not worked systematically enough on this. France has a well-equipped food bank and humanitarian organizations that have warehouses, vehicles and people at their disposal, as well as laws that legally bind retailers and producers to donate food. On the other hand, Croatia abolished the tax on donated food only in 2015 and the system depends solely on the enthusiastic efforts of associations and individuals. That's the main difference. What kind of co-operation do you have with the Government of the Republic of Croatia, considering that it has rejected your initiative to restrict the sale of energy drinks to children in Croatia for the sake of protecting public health, and preventing some public enterprises from charging exuberant delivery fees for small packages?

How much do you co-operate with your counterparts from other countries that are in the same position as Croatia and what changes did they experience after the research? Are there any new joint initiatives?

— Although it was Slovakia that did the first research in 2011, the Czech Republic is definitely the leader in this fight since it is their government that has been most vocal about the issue in the Council. Hungary has also conducted a similar research. In terms of practical results, Croatian citizens have benefitted from the example of HIPP baby food while in the Czech Republic, Pepsi undertook to change the ingredients of its beverage since the research had discovered a huge disparity in the quality of Pepsi in the Czech Republic and Germany.

despite provided incentives?

— I was recently appointed the European Parliament rapporteur on dual quality. My job is to formulate the European Parliament’s official stance on this topic. Over the next few months I will meet with various consumer organizations, the industry and the representatives of the EU institutions, and then write the first proposal to which my colleagues, other MEPs will submit their amendments. My job is to bridge the gap between opposing views. This battle will be very tough because European citizens, who are heavily influenced by the industry, are reluctant to even participate in this project. However, we, from the eastern states, and my entire political group, have consolidated our ranks. Once my research was finalized, I immediately forwarded it to the Euro-

pean Commission. Several weeks later, EC President Jean Claude Juncker said, in his annual State of the Union speech, that the EU citizens should not be treated as second-rate citizens. He was referring to the results of the previous research. That was a powerful political moment which showed how acute the problem had become and that European leaders could no longer ignore the fact that the EU has been divided on this issue. The EU should demonstrate its unity on this practical example. Recently, the European Commission and you have introduced new guidelines for donating food in the EU. Why was this initiative well received in France, for instance, while in Croatia, it did not yield substantial results

— They rejected the initiative with the excuse that EU legislation did not allow for such measures to be implemented at the national level. Of course, that was not the case and I asked for a legal interpretation from the European Commission, which replied that it was up to the Member States to regulate that and that, for instance, the Commission had not taken any legal steps against Lithuania and Latvia which had already implemented such bans. In cooperation with a member of the Croatian Parliament, Siniša Varga, we have drafted laws that would ban minors from purchasing these products. The Minister of Health said that he would support our initiative. It remains to be seen how is the governing majority going to vote once the law is on the Parliament’s agenda.

A LOT OF WORK TO BE DONE UNTIL THE END OF THE TERM What are currently doing and what are your plans for 2018? My term in the European Parliament ends in the spring of 2019 and until then I want to finish the projects I have set out to do at the beginning of my mandate. I'm working on the product quality report and there are

a number of consumer law packages to work on too. Of course, I want for the laws banning children from buying energy drinks to be adopted this year. Furthermore, as a member of the Gender Equality Committee, I will be working hard on the Report on Women's Rights in the Western Balkans.

ANALYSI S

Text: ŽIKICA MILOŠEVIĆ

Davos 2018 Between conflicting winds

This year's World Economic Forum (WEF), held in Swiss Davos (usually shortened to merely „Davos“), was a place for all the elite businessmen and politicians, as usual. But this year's edition was particularly interesting because of the conflicting winds blowing from different parts of the world. AMERICA FIRST, AMERICA BEST

Some people doubted that the American President Donald Trump will even appear there, since he is a staunch opponent to the free trade agreements, and the proponent of „deals“, „America First“ (everybody else later, obviously), protectionism (remember the taxes on solar panels, to stoip investing in clean technologies and to spur the oil industry), etc. His arrival, on his first presidential anniversary, was even greeted by protesters. But, Trump appeared, and only a person who does not understand his psychology would have tought otherwise. He is a superstar, a reality show star, he loves bragging and fighting in public. So, we have witnessed Trump bragging around with good results of the American economy, which, contrary to all his enemies' predictions, are really excellent. Of course, some of it can be attributed to his predecessor, Obama, but he proudly said: „We came to say how America is great again, the economy is blooming, thanks to the regulations cut, as we expected, the

unemployment is record low, but we did not expect companies to grant bonuses to their employees“. The Americans also stated that China was the greatest rival and accused them for the sophisticated protectionist behaviour disguised as liveral globalisation (stated by US Economy Minister Wilbur Ross). But in fact, America was pushing globalisation up to the

It is a clear strategy, not a coincidence, and it seems like an answer to the EU's QE policy. EUROPE AT THE CROSSROADS

One of the most anticipated guests was Emmanuel Macron, a new young superstar of European politics, and a great hope for new European unionism. He is, how-

NATIONALISM IS FOR THE POOR, AS RAMBO AMADEUS STATED WISELY. THE RICH ARE MORE RELAXED moment when it did not serve it any longer, now China is the main proponent, and America is slowly closing. But there is another curious fact, and it might show that Trump (at least in economy) knows few things right: dollar is depreciating, as opposed to the previous efforts to make it strong, and it makes American economy more competitive in the export markets, and the tourism is being boosted.

ever, not in favour of the unified Europe, but in favour of several gear Europe, in which the richest will lead the gamne and the rest will... well, somehow organise. If we understand Europe as a train, it is impossible, but Macron sees it as a caravan, apparently. He also praised Chinese investments in Europe earlier, righfully understanding that if Europe refrains from „One Built, One Road“ it will soon

become the „Second League“, and Asia will win. We know how Chinese Empire thought it was „way too advanced“ and self-sufficient in the beginning of the Industrial Revolution and completely failed. So, young Macron is clever. Just as his statement that EU will have to seek other partnerships, apart from the USA. Time to realign, guys. As for the UK, their plans are now to become something between Canada and Norway: we are close to Europe, have the trade agreement, just we are not exactly part of it. Good luck, Theresa. It will take a lot of mastery to make it all right. THE SIGNIFICANT OTHERS

As for China, it is clear that Xi's doctrine has won, and the Far Eastern economy will be soon the leader of the world, since even China understood the urge of green economy, becoming the leader in this field. Russia is pushing towards expanding its EAU agenda, signing association deals with many, and free trade deals with others. As for the Western Balkans, we are burdened by rivalry and old hatred, but as PM Brnabić said, we are digitalising fast, and as Presidents Vučić and Rama stated, the economy has a priority, although the Free Trade Union is far-fetched, especially because of Montenegro. But, if we are poor, we will hate each other even more. Nationalism is for the poor, as Rambo Amadeus stated wisely. The rich are more relaxed. Let's be rich(er).

SOROS AGAINST INTERNET? And one shocking (is it really?) statement came from the American billionaire and activist George Soros, who, surprisingly, shouted against, guess what: the Internet and its freedoms, which is unusual for a person who supposedly dedicated his life to open society and open flow of information. He said: "Social media companies deceive their users by manipulating their attention and directing it towards their own commercial purposes. They deliberately engineer addiction to the services they provide. This can be very harmful, particularly for adolescents. There is a similarity between internet platforms and gambling companies. Casinos have developed techniques to hook gamblers to the point where they gamble away all their money, even money they don't have.” And there are dork clouds over his empire everywhere. Austrian Chancellor Sebastian Kurz informed Soros that his Open Society foundation was given 28 days to close. Otherwise, the fund will face legal claims for "attempts to undermine the democracy of the nation."

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I NTERVIEW

We are Going to Turn Waste Situation Around We have to regulate the waste management system first and foremost because of the environment we live in. However, no country has managed to do something like that overnight. This year, after going back and forth, we will create prerequisites for an effective and sustainable waste management system in the future DUBRAVKO PONOŠ Director of the Environmental Protection and Energy Efficiency Fund

The Fund is a crucial institution in the implementation of environmental and energy efficiency strategies and plans, and it runs the entire management system of special categories of waste. All of this is a demanding endeavour, but the Fund has financial and professional resources to make it work - says Dubravko Ponoš, Director of the Environmental Protection and Energy Efficiency Fund. You have a lot of work ahead of you. What are your plans, what still needs to be done and what has been done in the segments of waste disposal, energy efficiency and waste management?

— With the transition from national to EU co-financing, the Fund also acquired a new role - we help applicants to better prepare documentation for public calls. Given the fact that more than 95% of the projects that were prepared with our professional assistance were approved, we have also positioned ourselves as an institution that is a crucial link in the successful

utilization of EU funds. In this and next year, our priority will be the co-financing of municipal waste disposal facilities, and implementing projects that result in preventing and mitigating climate change. We are also going to stimulate cleaner transport and greater use of renewable energy sources. In short, we will continue to finance the already contracted projects, but we will also develop new ones, all with the aim of making the Fund's financial assistance more accessible to the widest range of users.

itiveness and Cohesion". We are extremely successful in energy recovery projects in the construction industry. We have 525 million kunas available for energy recovery in multi-storey buildings. This amount has already been allocated for energy recovery in close to 600 multi-storey buildings. For reconstruction of educational institutions, we have contracted about 220 projects for energy recovery in educational institutions, and are eligible to receive 420 million kunas of EU subsidies for this purpose.

WE WANT TO CREATE A WELL-REGULATED SYSTEM WHERE EVERYONE WILL HAVE TO BE HELD ACCOUNTABLE AND IMPLEMENT THE EUROPEAN COMMISSION'S WASTE MANAGEMENT GUIDELINES As an EU member, Croatia has the right and the opportunity to use the money from funds allocated to the areas you are dealing with. How much money is available from EU funds, how much have you withdrawn so far and what difficulties have you encountered when withdrawing these funds?

— The scope of our activities primarily relates to environmental protection and energy efficiency, and further to specific objectives and priority axes defined by the Operational Programme "Compet-

The tender for energy recovery in public buildings is temporarily closed because the value of the submitted projects is twice higher than the planned allocations. In terms of waste management projects, and despite the fact that we have 470 million kunas available for this purpose, there weren't many concrete public calls in the past few years, so the funds could not be used. However, the developments in this segment have been expedited and we have public calls for landfill remodelling, construction of recycling yards, and im-

plementation of educational programmes in waste management. Soon, the Fund will be involved in the acquisition of separate waste collection bins that will be co-financed from the EU funds. The Ministry of Environmental Protection has also been working on other public calls in order to finalize the waste management system. We should also mention the energy efficiency public calls specifically for industry and tourism. All contracted EU projects undergo a detailed check and they go through several levels of control, starting with our Fund's Intermediate Body Level 2, then national resourcing institutions and finally, the European Commission auditors. Hence, the documentation has to be neat and complete, and the procurement of goods and services legal and transparent. We insist on high quality of the performed work. In the last few years, there have been heated arguments about the ways in which waste management problem should be resolved, i.e. should we thermally treat the waste or recycle it as much as possible. What is Croatia's official stance on the recycling format?

— The topic of waste is more of a problem for political rather than professional circles which resulted

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in us going back and forth in terms of choosing the best possible waste management concept. We even changed the concepts compared to what was stated in our Operational Programme. Speaking about optimal concepts, extreme solutions are not good, at least not in my opinion. Firstly, one should really look at the situation in the field, and assess the existing capacities and the ability to invest in the required infrastructure. On top of this, there is the mentality and habits of our citizens that will not change overnight. Finally, with the appointment of Minister Ćorić, we now have a clear stance and direction after constantly changing plans for a couple of years. We are building the system at the greatest level possible in order to prevent waste generation, and to facilitate separate collection and exploitation of valuable properties of waste. However, we have to handle the waste that is left behind and cannot be used anymore in accordance with the relevant environmental standards, and this is where waste management centres play an important role.

What consequences could the country suffer from if it does not fulfill its obligations in terms of waste disposal and management?

— We want to create a well-regulated system where everyone will have to be held accountable and implement the European Commission's waste management guidelines. True, in the past we were not sure of ourselves, changed the concepts too much and hence lost time. But I hope, given the seriousness that this Government applies in dealing with this problem, that we will not be penalized by the EU institutions and that we will enter into the monitoring period during which our will and the invested effort, seriousness and money will be honoured.

continue to be sold on the market and provide profit and new jobs. On the other hand, due to the accumulation of rubbish on landfills, the state and local governments have to come up with funds for their quite expensive remediation, which over time becomes a major problem both for the environment and the budgets of cities and municipalities. So far, the Fund has invested over 800 million kunas in the rehabilitation of 299 official waste disposal sites, of which 193 have been fully remediated. Significant funds have also been invested by local self-government units in projects worth over 3 billion kunas. These are huge resources, which, in the past, could have been invested in much more cost-effective pro-

I WOULD SAY THAT ECOLOGICAL REFLECTION ON THE FUTURE OFFERS VERY TANGIBLE BUSINESS OPPORTUNITIES THAT OUR BUSINESS COMMUNITY NEEDS TO MAKE USE OF

In Croatia, only 17% percent of municipal waste is currently recycled, and the country is obliged to increase this percentage to 65 in the next four years. How do you intend to do this considering the difficulties you have experienced so far?

— Through the line ministry and our Fund, the government will try to create an incentivized environment through utilization of EU funds for waste management projects. I do hope that our mayors and municipal heads will use the available financial opportunities to advance their utility services. We are working hard on parallel implementation of all activities - on one hand, we are cleaning and closing the existing landfills, building transfer and recycling yards, and setting up project centres while, on the other hand, the whole system cannot survive without the continuous education and engagement of all our citizens. That is why we have launched a national campaign, and soon we are going to launch local campaigns for which cities have secured EU funds. Additionally, the state provides the framework and provides funds, but the local government and their public utility companies also need to make the system operational in practice and make it accessible and affordable to their citizens.

the highest revenue from exports, which certainly demonstrates that investing in waste is a very profitable business. Do you think that the existing capacities, on which a lot of money was spent in the past, are capable of dealing with the challenges that arise from countries having to adhere to the European rules, or do we need to invest in new capacities?

— As I have underlined earlier, Croatia has available capacities and a lot of potential to utilize new business opportunties and investments in secondary raw material market. The European Commission has recently presented its strategy for plastics in order to boost efforts towards better and more sustainable production, use and recycling of plastics. All segments are striving to move towards a circular and resource-efficient economy. The key to success is the innovation that needs to be fostered with funds available from various European programmes and funds, in addition to national funds. The EU has announced that financial support for innovation would be increased. Because Croatian citizens now get 0.5 kuna as recycling deposit, they are returning almost 90% of beverage packaging which is an excellent result. Are they sufficiently informed and interested in being involved in the recycling process and how much more should be done?

According to the data collated by the Ministry of Environment and Energy, in the last ten years, close to 5-billion-kuna worth of raw materials ended up at landfills. Some of them were discarded and some imported by companies. What does your data show? What could Croatian economy do in order to seriously tackle this problem, both in economic terms and in the number of new jobs?

— Unselective disposal of municipal waste that usually ends up at landfills is surely the most expensive available option. On one hand, the money that could be generated from selling useful raw materials is wasted. These raw materials can be further used in industry to manufacture new products that will

jects if only the waste management policies were more responsible and more rational. But if we analyze the performance of the system of special categories of waste, I can say that we are doing a great job, especially in terms of collecting and recovering plastic and glass bottles, cans, tires, and electric and electronic waste, for example. Companies involved in the processing of this waste generate high quality raw materials to be used for manufacturing of new products and are very competitive in both Croatian and European markets. Close to 700 companies with more than 8,500 employees were registered in the plastic and rubber processing business with the Croatian Chamber of Commerce. They generate

— In the beginning, this recycling deposit of 0.5 kuna for every returned plastic or glass bottle or a can was very stimulating for our citizens. But it seems to me that, regardless of this financial incentive which is not negligible, over the years our citizens have developed a habit of returning beverage packaging. They have become aware that this bottle they are returning is worth something and that it damages the environment. Some of the neighbouring countries have expressed interest in implementing the same or similar deposit format, so we often have foreign delegations coming here to see how our system is functioning. Still, our system requires certain improvements, especially in regard to automation of packaging collection in shops and better overall computerization. This would result in lower costs, and will probably lead to lower fees for companies too.

DAY Z E RO

Europe’s Sprawling New Financial Law Enters Into Force A disaster-free launch of MiFID 2 is not the end of the worries

AFTER years of rule-drafting, industry lobbying and plenty of last-minute wrangling, Europe’s massive new financial regulation, MiFID 2, was rolled out on January 3rd. Firms had spent months dreading (in some cases) or eagerly awaiting (in others) the “day of the MiFID” when the law’s new reporting requirements would enter into force. One electronic-trading platform, Tradeweb, even gave its clients a “MiFID clock” to count down to it. Apprehension was understandable. The new EU law, the second iteration of the Markets in Financial Instruments Directive (its full, unwieldy name), affects markets in everything from shares to bonds to derivatives. It seeks to open up opaque markets by forcing brokers and trading venues to report prices publicly, in close to real time for those assets deemed liquid. It also requires them to report to regulators up to 65 separate data points on every trade, with the aim of avoiding market abuse. The changes are greatest for markets, like those in bonds and derivatives, that are now largely conducted “over the counter” (ie, not on exchanges). But the law also restricts share trading in “dark pools” closed to retail investors, provides for access to European markets for non-EU firms, and requires investment banks to start charging separately for research, among myriad other provisions. It is perhaps the biggest regulatory change to European financial markets since the financial crisis. For all the jitters, the first hours of trading under the new regime went fairly smoothly, though trading volumes were lower than usual. Financial firms had collectively spent $2.1bn preparing for MiFID 2 in 2017 alone, according to one estimate by Expand, part of the Boston Consulting Group, and IHS Markit, a data provider. Some banks had people up all the night before the 3rd. The preparations paid off. But regulatory reprieves also helped. In late December the European Securities and Markets Authority (ESMA), an EU regulator, granted a six-month reprieve from the requirement that every counterparty to a trade must have a “legal-entity identifier”, a unique number, after many firms failed to obtain these in time. It also let trading continue across the EU even though 17 of its members had not yet fully transposed the rules into national law. And ESMA clarified that trading on non-EU venues could continue while it finishes its assessment of which

jurisdictions will be deemed “equivalent”. This avoided a worst-case scenario, in which European traders suddenly lost access to the New York Stock Exchange, say, or the Chicago Mercantile Exchange. Early on January 3rd itself, Germany’s and Britain’s regulators allowed three large futures exchanges—Eurex Clearing in Frankfurt, and ICE Futures Europe and the London Metal Exchange in Britain—to delay implementation of “open access” provisions until mid-2020. These rules, divorcing the execution of futures contracts from the clearing of them (they now occur at the same exchange), were contentious when passed, with Britain reportedly a strong

THE CHANGES ARE GREATEST FOR MARKETS, LIKE THOSE IN BONDS AND DERIVATIVES, THAT ARE NOW LARGELY CONDUCTED “OVER THE COUNTER” (IE, NOT ON EXCHANGES)

proponent and Germany staunchly opposed. A London lawyer thinks the long delay, to past the date in 2019 when Britain is to leave the EU, may well mean these provisions “never see the light of day”. Significant as they may be for parts of the market, such reprieves do not amount to a delay of the overall law, says Jonathan Herbst of Norton Rose Fulbright, a law firm. Nonetheless, a disaster-free implementation day does not mean the end of the worries. As Enrico Bruni of Tradeweb points out, market participants will adjust their trading patterns over time, and emerging problems will need to be resolved. It will take even longer to see if the structural changes the new framework is forecast to encourage—such as consolidation among brokers or asset managers—materialise. And the law may yet play a role in the Brexit negotiations. Its rules on financial-market access for third countries, after all, will apply to Britain. There are many more days of the MiFID to come. From The Economist, published under licence. The original article, in English, can be found on www.economist.com

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C O RPO RATE DHL

Digitalization Delivers a New World of Logistics DHL is the leading global brand in the logistics industry. Logistics seems to be enjoying somewhat of an Andy Warhol moment An industry which measures its success by how invisible it can be - providing that the first time an end customer notices you is when they receive their package which is usually a sign that you’re doing a good job – is suddenly very much in the public eye and enjoying its 15 minutes of fame. The boom in online shopping has drawn the attention of consumers and businesses alike to the importance of logistics, in particular the last-mile delivery experience. This, in turn, has triggered a surge in investor interest in the sector. A big driver behind this increased interest in the logistics sector is the digital revolution that has taken hold worldwide. Digital technologies have not just made online shopping possible, giving anyone with an internet connection and a laptop or a smartphone, an access to a broader assortment of products from virtually anywhere else around the globe. They have also created new opportunities for automation, data management, process improvement and customer interaction. A typical supply chain for any product is incredibly complex, involving dozens or even hundreds of processes. Digital technologies provide an opportunity to expedite and automate various parts of any supply chain, delivering efficiency gains, driving down costs, reducing errors and increasing convenience for shippers. Worldwide, DHL has been actively exploring how technologies such as robotics, automated driving and augmented reality can shape and improve areas of our business, from warehousing operations to parcel delivery. We are

looking at how big data can help us to better plan and manage our transport activities, as well as to enhance the customer experience. The international express industry, for example, already boasts high quality levels, extensive global cross-border transportation networks and experienced local teams. We believe that this service offering would be hard to replicate or disrupt with new technology, but we also recognize that we can further enhance the customer experience and manage our net-

in the industry, but also for every consumer around the world who benefits from logistics every day.

DHL EXPRESS E-COMMERCE STORY

Cross-border e-commerce and in particular, the premium segment of international online retail is a fastest growing business vertical for DHL Express. Our services add value for online retailers who are looking to expand abroad. In addition, research that we have recently conducted into the market has

AT THE MOST BASIC LEVEL, DIGITAL TECHNOLOGIES HAVE THE POTENTIAL TO DELIVER SIGNIFICANT PRODUCTIVITY GAINS IN THE LOGISTICS INDUSTRY

works even more efficiently thanks to digitalization. Industrial development over the last two centuries led to massive productivity improvements in manufacturing. Now, digitalization is poised to bring similar leaps in productivity to services, and in particular to logistics. It’s an incredibly exciting time for everyone

reveals that cross-border e-commerce offers aggregate growth rates not available in most other retail markets: cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from USD 300 Billion to USD 900 Billion) – twice the pace of domestic e-commerce growth. Online retailers are

also boosting sales by 10-15% on average simply by extending their offering to international customers. An additional boost comes from including a premium service offering: retailers and manufacturers that incorporated a faster shipping option into their online stores grew 1.6 times faster on average than other players. DHL Express offering is typically attractive to a particular type of online retailer – those with a high value product, high quality service offering or with smaller delivery orders to overseas markets, for example, start-ups that are just entering new markets. Time definite international delivery services are door-to-door and can allow retailers to reach customers quickly just about anywhere in the world without the need to establish warehousing or distribution chains. At the same time, we encourage customers to recognize that there can also be premium demand for their product, whatever the value of the goods they are selling. We have a range of solutions to cater to different customer requirements and cultural differences between markets. Our On Demand Delivery and MyDHL+ solution allows customers to select the most convenient delivery option in real time, it is deployed in more than 100 countries. The global DHL network generates value for customers trading internationally, particularly SMEs and premium cross-border e-commerce shippers. DHL Express has an unparalleled, market-leading global time definite network and delivers excellence across all its functions and markets.

C O LU MN DANIJEL KOLETIÄ†

CEO of Apriori World

BRANDING AS AN IMPERATIVE OF TODAY

Historically speaking, those companies and individuals who realized the importance of investing in advertising and promotion created a long-term perception in their time, boosted sales and became leaders. Some of these brands have maintained their position in the market today and some, that lacked readiness to transform, have simply disappeared If you analyze historical events, you will come to the conclusion that in the first 10 years of each century, there are always industrial and technological innovations that change the way and tone of human habits. At the beginning of the 19th century, with the transformation from the feudal to the industrial era, machines replaced plows. Thanks to the invention of the telegraph and the telephone, communication processes started to emerge. Owing to the industrial revolution, high quality printing machines were created and used to print newspapers which opened the door for advertising or branding. The goal of a brand is to get you emotionally attached to a product. However, just like generations change, so do consumer habits. At the end of the last century, the cosmetics industry had a certain amount of brands that grew by almost one hundred percent in a single revolutionary moment. The number of people living on our planet has been steadily increasing, which, in principle, tells us that logically speaking, the number of consumers and the types of brands that are affordable to everyone are also going up. Certain automotive brands have recently emerged with Tesla forging the way ahead. These brands are becoming synonymous with a certain consumer group and are becoming a status symbol. Behind every brand lies that infamous magical phrase - a status symbol. It is visible in brands of wristwatches, women's bags, and even in the tourist industry. Brands are constantly being born, but in order for them to survive it

is necessary to constantly invest in their perception so that a customer can identify with the brand and demonstrate pride in having it. World-renowned brands are constantly investing in advertising snot to be forgotten. Every advertising expense hides our investment which we paid by purchasing the product. What is actually hidden behind brands and who has been creating them for centuries? Today, every brand is given one chance only, as it did in the past. Brand culture, that is evidenced in quality, stories it tells, top publicity seasoned with advertising, is also recognized to-

century, digital transformation has not only created new products and new ways to communicate, but also new brands. Google, Facebook, Apple and Samsung are new kings of mass branding; famous all over the world and a staple in almost every home. Brand culture today is the imperative of life. New generations live fast and believe in stories, high quality photos and videos that stir in us a desire and an emotion to get what we seek or want. Unfortunately, we live in superficial rather than meaningful time. Back in the day, the valued professions like teacher or doctor have been replaced

BEHIND EVERY BRAND THERE IS A CERTAIN STORY, AND BEHIND EVERY STORY THERE IS SOMETHING CALLED INDIVIDUAL INTEREST day, and sometimes even passed from generation to generation. I'm sure that each and every one of you has its own favourite brand, starting from toothpaste, clothing, favourite store. By telling a good story, some brands are still going strong. However, their position on the top 10 list is no longer the same. As a result of the digital revolution in the first decade of this

with new ones that rule the cyber space and whose life habits have been created by digital processes. In all of this, new brands and new perceptions are created to which humans adjust, change and transform as they always do at the beginning of each century. How do you choose a brand? Based on a media or digital ad or based on a referral? When you become familiar with the

new brand through your own experience, you share that story on different social platforms or simply trust various specialized, themed content, depending on your interests. Today's digital space offers a variety of online platforms where original and fake brands can be purchased. At this particular moment in time, cryptocurrencies are the biggest challenge. They are backed by many famous people and many beginners. The new generations of interest groups want to use currencies in this way in order to avoid having to go to a bank in person. You may be wondering what is the difference because now you can buy everything online anyway. Eventually, you will find out that behind every cryptocurrency there is that currency's brand. Only time will tell which one of these brands will become the most popular and the most effective. The best way to get to know new brands is through user experience, and based on that, you should decide whether to get involved in brand's new story. In this digital age, you will also likely share your travel experiences or the moment spent in a bistro, cafe bar or restaurant with a large number of other social platform users. Ultimately, each of us has its own habits and each one of us creates a picture of a brand. Only those quality brands that tell a story will survive long-term. In the next issue, we will try to discover what is a personal branding mission and where it is hidden, as well as the reasons why people get attached to a certain type of people who have become brands themselves, and advantages and weaknesses of personal branding.

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C O RPO RATE

Why Businesses Need Mediation - Resolving Disputes Among Business Partners Mediation is timely, immediate, and a fraction of the cost of litigation, which means less disruption to business operations. The main purpose of business is to make a business, not be involved in disputes

PETAR PETRIĆ Licentiate in Law Certified Mediator

When business partners and business leaders find themselves at an impasse in their relationships, they have several options for resolving their predicament: litigation, arbitration, negotiation and mediation. Courts and litigation are important parts of our systems but trial in the court system is unfortunately focused on winners and losers. The major difference between mediation and litigation is that settling through mediation is a voluntary agreement between the parties, in contrast to litigation that results in a binding decision outside of the parties’ control. Mediation is an efficient, cost-effective process of problem-solving where the disputing parties work together to find a solution. Mediation is a flexible process based on specific processes which usually involve the parties meeting with a mediator in a neutral setting to work out the issue. Mediation offers businesses these main positive benefits: •d oes not have the destructive side effects or adversarial outcomes that often accompany litigation •k eeps the focus squarely on the present and future •d oes not dwell on who did what to whom in the past •m ediators assist partners in collaborating with each other and in repairing or strengthening relations

• adds new value to business Mediation may take place at one or more meetings lasting from one to several hours, attended by the parties in the dispute and the mediator(s). The parties may attend alone, or be accompanied by a legal advisor or another person whose presence is considered useful. The mediation process is based on confidentiality. So mediation works the best because it guarantees privacy to business partners so that important and crucial relations with creditors, suppliers, customers, and employees are maintained. Business partner disputes contain a complex mixture of financial, legal, and business factors. Using mediation team with a lawyer and a financial specialist or a business consultant or a psychologist, depending of the mediation case, is the best way to handle this. The main role of the mediator is to help the parties to communicate

That proces may take place before, during or after legal proceedings. The parties to the dispute are responsible for defining the terms of a settlement that is satisfactory to all parties. Mediation focuses on resolving the matter in a way that keeps relationships intact. Parties used to be partners and used to act together to meet their common interests, but have now lost faith in each other. That is a method that can help restore dialogue and confidence. Mediation is timely, immediate, and a fraction of the cost of litigation, which means less disruption to business operations. The main purpose of business is to make a business, not be involved in disputes. Experiences with disagreement/ dispute resolution - according to Eurobarometar 347, European companies are more satisfied with ADR procedures than they are with court procedures, in particular when it comes to the duration (51%

MEDIATION OFFERS BUSINESSES A LESS EXPENSIVE AND QUICKER WAY TO RESOLVE BUSINESS DISPUTES AND IT ALSO AIMS TO PRESERVE RELATIONSHIPS better so that they can come up with an agreement they are both satisfied with. A good mediator can get parties talking to each other, can help identify common goals, and find a resolution that works for all. Mediators receive special training in conflict resolution skills. They help to identify the interests of the parties. They use this information to help guide a negotiation between the parties that will provide them with mutual benefits.

vs. 21%), the ease (58% vs. 30%) and the costs (50% vs. 24%) of the procedure. The three main reasons for not using a court to resolve a disagreement/dispute are costs(45%), its duration (27%) and the fear that nothing would come off it (27%). Duration of court/ADR - the difference between courts and mediation style ADR is very pronounced. It took an average of 17.8 months for courts to resolve a domestic dispute, while mediation style ADR

took 7.3 months. For cross-border disputes, it took courts 15.2 months to resolve them, arbitration style ADR 8.0 months and mediation style ADR 5.8 months. Costs of court/ADR - for disputes with another business in the same country, businesses spent an average of 11,500 euros when they went to court, and 2,700 euros when they used a mediation. For disputes with a business in another country, companies spent an average of 13,000 euros when they wento to court, and 6,100 euros when they used a mediation. Future considerations about disagreement/dispute resolution according to Eurobarometar 347, a majority of companies are willing to use mediation style ADR and, to a lesser degree, arbitration style ADR and courts to resolve future disputes. 83% of companies that had used a mediation style ADR would do so again. The three most important aspects of ADR are that it is quick to reach a solution (50%), it is conducted by a mediator who has the knowledge and experience in the field of the dispute (35%) and it is cheap (34%). Conflicts hurt business. They hurt business performance and profitability, and also result in increased stress levels and low morale in the workplace. Growing numbers of business partners and leaders use mediation when they are in serious conflict. The way of solving business conflicts and disputes is the main key for the successful business. Mediation adds a new value to the business. Whatever you do, do it quickly and smart.

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C O LU MN JAGODA POROPAT DARRER

Business Communications Professional

DIGITAL RHETORIC:

TWEETING AS THE NEW PARADIGM OF POLITICAL COMMUNICATION Influence and networking, connecting and making alliances are taking a brand new platform for its actualization imposing a question about the role of political digital rhetoric as media maker and regulator

Embrace the unknown, adapt, change, survive…it is not a novelty to the human beings, it is written in our DNA code. It is a matter of evolution. At the dawn of the Fourth Industrial Revolution (4IR or just Industrial 4.0), when hardly anything has remained the same, new technology and social media are creating a new paradigm for political communication, out denting the political processes basis in that way. In her book 'Virtualpolitik', Elizabeth Losh defines digital rhetoric as a: “Public rhetoric, often in the form of political messages from government institutions, which is represented or recorded through digital technology and disseminated via electronic distributed networks”. It encompasses creating mutual connections via virtual diplomatic network, and building alliances to spread a government’s message across the globe. “Social media has become diplomacy’s significant other”, states Mattias Lüfkens from Burson-Marsteller. As a social networking and micro blogging service, Twitter enables registered users to read and post short messages, so-called tweets. It is one of the most popular social networks worldwide, and has become an important communications channel for governments and heads of state as well. Contrary to the common believe that Trump “owns” the Twitter space, former US President Barack Obama claimed a runaway first place in terms of Twitter followers, with Indian Prime Minister Narendra Modi and Turkey's President Recep Tayyip Erdogan ranking second and third respectively according to statista.com. Unlike Facebook, Twitter is

not based on the social aspect but on the following and commenting important topics, prominent people, and conversations that are of interest to the users. Tweets may contain tags, known as hashtags, composed of a key phrase with prefix #. In this way it is possible to find tweets about a particular topic by simply searching the used tag. Popularity between Facebook and Twitter

global study of world leaders on social media, conducted by a global PR firm Burson-Marsteller, identified 856 Twitter accounts of heads of state and government, foreign ministers, and their institutions in 178 countries worldwide, analyzing each leader’s Twitter profiles, tweet history and their connections with each other. Donald Trump’s tweets have made a major impact

Most followed foreign ministries in 2017 on Twitter, Source: www.twiplomacy.com

TWITTER, IN PARTICULAR, HAS BECOME A DIPLOMATIC BAROMETER, A TOOL USED TO ANALYZE AND FORECAST INTERNATIONAL RELATIONS ACCORDING TO TWIPLOMACY.COM varies from country to country. Facebook is the dominant social network in nearly 130 countries (including Croatia) around the world, while Twitter is widely used in the United States, Brazil, Japan, the United Kingdom and Indonesia, and has 317,000,000 worldwide users. Twiplomacy, a pre-eminent

on governments around the world. His tweets dominate 24hour news cycles and are even considered official statements, according to The White House. Argentina’s @MauricioMacri, Canada’s @JustinTrudeau, @ KingAbdullahII of Jordan, Saudi Arabia’s @KingSalman and Turkey’s President Recep Tayyip

Erdogan (@RT_Erdogan), have all made a significant impact in terms of interactions on Twitter over the past year. CHALLENGES AND OPPORTUNITIES

However, not everyone is thrilled by the new communication opportunities. Bret Stephens, NYT, states that “Twitter is the political pornography of our time: revealing but distorting, exciting but dulling, debasing to its users… It’s bad for the soul and, as Donald Trump proves daily, bad for the country. That is what Twitter has been for our politics. Short-form writing can be informative, aphoristic and funny. Twitter is terrific when tailored as a personalized wire service and can be a useful way to communicate with readers. But Twitter’s degrading uses tend to overwhelm its elevating one.” On the other hand, for some, Twitter revolution means more visibility, more votes, and more profits for digital media owners. Trump being elected as the U.S. president a year ago was largely credited to the digital campaign led by Brad Parscale that used real time data and social response to articulate his political messages and spread it throughout U.S. All major online media were involved - Google recommended geographically targeted ads, Twitter analyzed the success of tweet-based fundraising efforts, and Facebook identified which pic performed best on Instagram. Moreover, President Trump kept tweeting himself to the victory. So the best advice to conclude this story is contained in Parscale’s statement: “Keep tweeting. Tell people what you’re thinking. Tell people what you want to do. Talk to them.” #DigitalRhetoric #Victory.

PEO PLE & EVENT S

18 THE NATIONAL DEC

DAY OF QATAR

The Ambassador of the State of Qatar to the Republic of Croatia, H.E. Ms Sheikha Moza bint Nassir bin Ahmed Al-Thani held a reception in honour of the National Day of Qatar which was attended by more than 300 dignitaries from the Croatian public and political life including the State Secretary for Political Affairs at the Ministry of Foreign Affairs of Croatia, Ms Zdravka Bušić, the head of the General Staff of the Croatian Armed Forces, Lieutenant General Mirko Šundov, Mayor of the City of Zagreb, Mr. Milan Bandić and many others.

H.E. Moza Bint Nasser Al-Thani, Ambassador of the State of Qatar in Croatia and Lieutenant General Mirko Šundov, Chief of General Staff of the Armed Forces of the Republic of Croatia

Winner of the prize awarded by Qatar Airways

15 TWO IMPORTANT JAN

Mrs Kolinda Grabar Kitarović President of the Republic of Croatia with representatives of the govermanat, her cabinet, church and the City of Zagreb

JUBILEES IN ILOK

On the occasion of marking the 26th anniversary of the international recognition of the Republic of Croatia and the 20th anniversary of the completion of the peaceful reintegration of Eastern Slavonia, Baranja and Western Srijem into the constitutional and legal order of the Republic of Croatia, President of the Republic of Croatia, Kolinda Grabar Kitarović held a reception in Ilok. The reception was attended by the diplomatic corps, and Croatian cultural and public figures.

Representatives of the diplomatic corps in Croatia

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25 ADVANTAGE AUSTRIA JAN

NEW YEAR'S RECEPTION

Advantage Austria/ Office of Austrian Economy Abroad held a rather refreshing New Year's reception at its offices which were decorated in the room branding style, with Austrian companies sharing their experiences of doing business in Croatia and an exhibition of artwork of Fedor Fischer and Ivana Juric. Almost a hundred guests attended the reception and used the opportunity to network while sipping on Austrian wine and enjoying in Croatian delicacies.

Mrs Sonja Holocher-Ertl Director od Advanatageaustria

Mr Nicolas Baron Adamovich President of the German Chamber of Commerce Branimir Iveković – lawyer, Mr Sven Thorsten Potthoff Director of the German-Croatian Industrial and Commerce Chamber, Mr Michael Müller – President of Raiffeisenbank in Croatia

Fedor Fischer, painter, Sonja Holocher-Ertl, Director od Advanatageaustria, Ivana Jurić, painter, Kristijan Jurković, Director Adcom International

26 THE NATIONAL JAN

H.E. Sandeep Kumar Ambassador of the Republic of India

H.E. Thomas E. Schultze German Ambassador with wife and H.E. Sandeep Kumar Ambassador of the Republic of India

H.E. Mira Nikolić Ambassador of the Republic of Serbia and H.E. Sandeep Kumar

H.E. Park Won – Sup Ambassador of the Republic of Korea and H.E. Sandeep Kumar

DAY OF INDIA

The Embassy of the Republic of India in the Republic of Croatia marked the National Day foir the first time outside the Croatian capital, in the town of Varaždin. A commemorative programme was held at the National Theatre of Varaždin. The host of the ceremony was the Ambassador of the Republic of India to the Republic of Croatia, H.E. Mr. Sandeep Kumar. A number of foreign ambassadors accredited in the Republic of Croatia and the parliamentary representatives were in attendance, including Mayor of Varaždin Ivan Čehok. The Indian – Croatian cultural programme followed after the welcome speeches.

MORE PHOTOS ON

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PEO PLE & EVENT S

30 AHK BEST JAN

INNOVATION AWARD

The 2017 Innovation Award went to Presscut Media Monitoring and Press Clipping, which impressed the jury with its text-tospeech application. The President of the German-Croatia Chamber of Industry and Commerce, Nicolas Baron Adamovich officially opened the New Year’s Eve reception, the first event organized by the Chamber in 2018. In his speech, Adamovich talked about excellent results that the Chamber, which is the biggeset bilateral economic organization in Croatia, had accomplished last year. He also reminded that the Chamber would celebrate its 15th anniversary in Croatia in 2018. Despite expressing his satisfaction with the positive economic indicators last year, the Chamber's President warned that conditions for doing business in Croatia were far from optimal and that more effort on improving the investment climate should be invested.

Mrs Sonja Holocher-Ertl Director od Advanatageaustria, Mr. Sven Thorsten Potthoff Director of the German-Croatian Industrial and Commerce Chamber and Nicolas Baron Adamovich President of the German Chamber of Commerce

Mr Sven Thorsten Potthoff Director of the German-Croatian Industrial and Commerce Chamber and H.E. Thomas E. Schultze German Ambassador , Marko Poljak Presscut, Nicolas Baron Adamovich President of the German Chamber of Commerce

Mr Sven Thorsten Potthoff Director of the German-Croatian Industrial and Commerce Chamber and H.E. Thomas E. Schultze German Ambassador

Boban Spasojević Executive Editor Diplomacy&Commerce Croatia magazine

30 TİKA HOSTS THE JAN

Guests of the exhibition

HISTORICAL CITY OF OSIJEK EXHIBITION

The Turkish Cooperation and Coordination Agency (TIKA) hosted an exhibition in Osijek, the largest town in Eastern Coratia, in cooperation with the Museum of Slavonia and the Croatian Ministry of Culture. The exhibition features many important artworks, including the painting of the Turkish fountain, which was built in the Ottoman era and which was featured in Osijek until the 1950s. The famous artist Gustav Antolkovic made the painting in 1923.

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03 SALON OF SPARKLING FEB

WINES

The 2nd Salon of Sparkling Wines, which opened the new wine season in Zagreb, was the first event organized by the Salon of Sparkling Wines network. Two weeks later, on Friday, 16th February, the 5th Salon Penečih Vin Ljubljana (the 5th Salon of Sparkling Wines Ljubljana) marked the beginning of the season of wine-related events in Ljubljana, Slovenia. Over 500 people, the true fans of sparkling wines, and close to 50 journalists attended the event at which they were served with the wines from 39 wineries. The Slovenian Ambassador to Croatia, H.E. Ms Smiljana Knez, PhD, opened the Salon of Sparkling Wines in Zagreb.

H.E. Smiljana Knez , Ambassador of the Republic of Slovenia

Nourishing the best-rated wines

08 THE NATIONAL FEB

Mr Milan Bandić Mayor of Zagreb

H.E. Mohammad Reza Sadegh, Ambassador of the Islamic Republic of Iran

DAY OF IRAN

This year, the Islamic Republic of Iran has celebrated its National Day – the 39th Anniversary of the Victory of the Islamic Revolution in Iran. The Ambassador of the Islamic Republic of Iran to the Republic of Croatia, His Excellency Mr. Mohammad Reza Sadegh hosted the reception in honour of the National Day at the Westin Hotel in Zagreb.

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PEO PLE & EVENT S

14 AMCHAM EXECUTIVE FEB

LUNCH WITH SPEAKER OF THE CROATIAN PARLIAMENT

AmCham played host to Mr. Gordan Jandroković, Speaker of the Croatian Parliament, as the keynote speaker at the Executive Lunch that gathered over 100 distinguished AmCham members and guests who had an opportunity to hear about the legislative framework with an emphasis on economy and business environment in Croatia, as well as the opportunities for stronger cooperation between Croatian Parliament and representatives of the business community.

Mrs. Andrea Doko Jelušić Executive Director AmCham in Croatia Mr. Gordan Jandroković, Speaker of the Croatian Parliament, and Mr. Gordan Jandroković, Speaker of the Croatian Parliament H.E. Robert Kohorst, US Ambassador with with colleagues

15 THE NATIONAL FEB

H.E. Mira Nikolić the Ambassador of the Republic of Serbia and Mr. Milan Bandić Mayor of Zagreb

DAY OF SERBIA

The Embassy of the Republic of Serbia marked the National Day at the Mimara Museum. The Ambassador of the Republic of Serbia to Croatia, H.E. Ms Mira Nikolić was the reception's host. Ambassador Nikolić and Zagreb Mayor, Milan Bandić both gave welcome speeches at the reception which was attended by a number of members of the diplomatic corps, business people, and political, cultural and public figures in Croatia.

Mr. Stjepan Mesić the former Croatian president with his associates

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B USINESS NEWS Optimapharm

ZAGREB’S OPTIMAPHARM TAKES OVER CZECH MKS RESEARC After the takeover, Optimapharm will have 120 employees and annual business income of over €12 million. Optimapharm is the regional leader in the field of clinical research (Clinical Research Organization – CRO), and the takeover of MKS Research, i.e. its entry into Czech market, will additionally strengthen the portfolio of clients from the pharmaceutical and biotechnological industry and the company’s market position in Central Europe. This move is in accordance with this Croatian company’s mid-term strategic goal to become the biggest independent clinical research organization in Central and Eastern Europe, and with operations across Europe and USA. Value of global market of clinical research over the past years has increased at annual rates of over 10 per cent, and in 2016 it reached the amount of $31.4 billion. Forecasts say that it will reach the sum of $49.26 billion in the period from 2017 to 2021.

Croatian tourist community

GLOBAL RECOGNITION FOR CROATIAN SYSTEM EVISITOR

Croatian check-in and check-out tourist system, eVisitor won a third prize of the World Tourist Organization - UNWTO in the category of tourist innovations and technology. The most important international tourism fair in Spain - FITUR – was held in Madrid. First prize in this category went to the Spanish SegitTur, as SIT or “Smart Tourism System”, while second ranked was the Australian BPDS (Building Planning and Design Standard) standard. UNWTO distributed a total of 14 prizes in four categories, and the eVisitor system was the only project from Croatia that was nominated for these awards this year, among a total of almost 130 projects from 55 countries, from which award finalists were

nominated. HTZ’s eVisitor system is a national tourist information system, which is being implemented since January 1, 2016. All the tourists in Croatia must be registered in this system which provides check-in and check-out information by types of accommodation, destinations, and other parameters. It also uses all of the information that has been entered into the system to analyze the number of in and out tourists.

eBay

EBAY DONE WITH PAYPAL, A NEW PAYMENT SERVICE ADYEN

Constellation Software

CANADIAN HOLDING TAKES OVER IN2 GROUP The plan is for IN2 Group to become a regional centre from where new regional acquisitions will be carried out. The transaction will be formally concluded on January 15, after which more details on the deal will be published. The deal was formally done for Constellation Software by their daughter company Aquila Software, which is seated in Florida. This is a company that specialized in the offer of software for the real estate, finance, banking and tourism industries, on the territory of North America and Europe. Aquila is already present in the region. It owns a Slovenian software company Halcom, which develops solutions for finance and banking in the Adriatic region and Africa. The plan is to transform IN2 Group into a regional centre of the Canadian holding and the point from where new regional acquisitions will be carried out. This would enable IN2 Group to be at least twice bigger than today by 2023. The company currently employs over 650 IT experts and has a revenue of HRK 200 million.

The world's leading trading platform has announced that in the future PayPal will not be its major payment partner. eBay has chosen a Dutch company Adyen for the new partner. These are completely interrupted by the two companies that already have a history of relatively complex relationships. eBay bought a PayPal company behind Silicon Valley Elon Musk and Peter Thiel - for $ 1.5 billion in

2002. eBay, with the help of Adyena, is trying to gain more control over payments on its site. The company claims that the benefits of this change will include lower sales costs and more customer payment options. At the end of this year, the payment agent's change will start on the North American market, and eBay expects almost all users in the world to use the new system by 2021. Namely, eBay payments account for 13 percent of all payments through that quarter service. In the same period last year, this share was 16 percent. Adyen, who is already working with major technology companies such as Uber and Netflix, said they were "excited" about co-operation with eBay. Adyen supports transactions in 150 currencies.

Zagrebačka banka

ZABA BEST EMPLOYER IN CROATIA AND EUROPE Top Employer Europe and Top Employer Croatia 2018 titles were presented to Zaba by the Dutch The Top Employers Institute. This is a recognition for companies that provide their employees with excellent work conditions, cherish and develop talents on all the levels of the organization and try to continuously improve their employment practices. The Top Employers Institute declared Zaba as one of the best employers and as an excellent place for work. Ana Bašić, HR Development Manager, accepted the award of Zagrebačka Banka. UniCredit,

under which Zagrebačka Banka operates, won the Top Employer title at a European level, thanks to local certificates they received in Croatia, Bulgaria, Germany, Italy and Russia.

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Valamar Riviera

Badel 1862

NEW HOTEL FOR SEASONAL WORKERS OPENED

SUCCESSFULLY IMPLEMENTED RECAPITALIZATION An amount of HRK 30 million in money was paid to Badel’s share capital, and rights (claims) in the total amount of HRK 192.68 million were contributed. This increased the share capital by a total of HRK 222.68 million, where strategic investor Meteor participated in recapitalization with HRK 214.15 million, and the state with HRK 8.5 million. Decisions of the Management and Supervisory Board have determined that the subscription was successfully implemented and that a total of 22,268,139 ordinary shares were registered, each with par value of HRK 10, with total par value of HRK 222.68 million. Along with Meteor, which participated in recapitalization by cash payment of HRK 30 million and entry of claims in the amount of HRK 184.15

million, the state also had the right to registry of shares through entry of claims, in the total amount of around HRK 8.5 million (Tax Administration for a claim of HRK 891,700 and Customs Administration for a claim of HRK 7.6 million), as well as Zagrebačka banka for a claim in the amount of HRK 2.6 million.

McDonald's

INTRODUCING MAJOR CHANGE TO ITS MOST POPULAR MENU

Most popular fast food restaurant decided to introduce a major change to its most popular menu and thus change its decades-old tradition. Aside from the fact that, for some time now, customers have

been able to order fruit, sugar-free Coke and bottled water in these popular fast food chain, McDonalds is taking a step further, according to inc.com. They decided to remove cheeseburger from their most popular children’s menu, “Happy Meal”. Reactions of users are divided. Some support reduction of calorie intake for their children even in fast food restaurants, while others are unsatisfied with this move. A “Junior Chicken” meal is being introduced in some restaurants, whereas a much healthier chicken sandwich will replace the high-calorie cheeseburger.

Following the decision to increase of minimum net income from April 1, Valamar now guarantees their employees the minimum net income from HRK 5,000 to HRK 7,500. The Valamar Riviera will open their fourth hotel for employees this year, so the Valamar House will be available on two locations as of this season – in Poreč, as well as in Krk and Rabac. Over the past 2 years, Valamar invested more than HRK 60 million in accommodation for its employees. The Valamar House concept comprises of modern facilities for seasonal workers with comfortable and pleasant accommodation. There are also many amenities in the common room such as big TV, DVD player, PlayStation console, board games and free WiFi.

RWE

THIRD GAS DISTRIBUTOR ON THE MARKET

Eurostat

EU’S EXPORT OF GOODS INCREASED BY ALMOST EIGHT PERCENT IN 2017 Value of trade inside the EU increased by 7.3% last year, up to €3,343.4 billion. Export of goods in European Union of 28 members increased by almost eight percent last year, and almost identical growth was recorded when it comes to import of goods, according to initial assessments of European statistical office. Value of import increased by 8.2% to €1,853.5 billion. This means that the Union, which has 28 members, recorded a surplus in commodity exchange with the world in the amount of €25 billion, which is €7 billion less than the year before. Value of trade inside the EU increased by 7.3% last year, up

to €3,343.4 billion. At the same time, import increased by 1.4% to €146.4 billion. Last year, Eurozone exported goods in the total value of €2,193 billion, which is 7.1% more than the year before, Eurostat estimates.

After the takeover of gas distribution in Koprivnica, RWE took over the networks in six cities and municipalities around Zagreb as well. It was announced in December that Montcogim has the biggest profit by the number of employees and the best quality gas network with losses of only 0.5%. Company’s net profit is on the rise since 2014, as well as the newly created value and investments. In 2016, they posted a revenue of HRK 87.1 million and profit of HRK 19.8 million, according to information from Poslovna Hrvatska. RWE announced that they expect major growth of Motcogim in the upcoming period because the area that their gas network covers has around 60 thousand potential users. RWE presented new members of Montcogim-plinara gas plant’s Management. Zoran Miliša, Chairman of the Management Board od RWE Energija and RWE Plin, will be responsible for gas supply, while network will be managed by Miloslav Zaur, who conducted the consolidation and transformation of Czech gas operations during the first 15 years after RWE’s takeover.

B USINESS NEWS Hystead Limited (Hystead)

SpaceX

HYPROP INVESTMENTS

FAST INTERNET IN THE MOST REMOTE PARTS OF THE WORLD SpaceX plans to use low orbit satellites to create a global communication system with an even faster connection. After the recent successful launch of the most powerful rocket in the world, SpaceX received an approval from the US communications regulator (Federal Communications Commission – FCC) to build a network of satellites that will bring wireless superfast internet even to the most remote parts of America, and later of the world as well. Over the past year, FCC granted the requests from OneWeba, Space Norway and Telesat for access to US broadband internet market by using satellites. Last month, Telesat launched a satellite of Indian Space Research Organization, and by 2021 they plan to set up a network of

120 satellites. The company is focused on creation of a “global communication system” that will enable faster internet connection than the existing one. By obtaining the “green light” from FCC, everything is ready for tomorrow’s launch of two experimental satellites by rocket Falcon 9, which SpaceX announced on February 1 in a letter to the regulator. The rocket will carry the satellite PAZ for Spanish company Hisdesat.

Ministry of Tourism

HRK 24.6 MILLION FOR STRENGTHENING THE COMPETITIVENESS OF TOURISM ECONOMY

Funds will be awarded through a number of measures for improvement of standard, quality and additional offer of catering facilities, development of new products at the destination, sustainable development, internationalization of operations, use of new technologies and other activities for the purpose of strengthening the competitiveness of

tourist economy. This year’s program is a continuation of all previous activities of the Ministry of Tourism aimed at encouraging attractiveness and competitiveness of Croatian tourism. Special attention shall be paid to development of tourism on the continent, Dalmatian hinterland and the islands, sustainable development, use of new digital technologies and connecting agriculture and tourism. Funds are available to small business subjects (trade companies outside the public sector, trades and cooperatives) and family farms that offer catering and/or tourist services.

Hystead Limited (Hystead), a UK company co-owned by Hyprop Investments Limited (Hyprop) from South Africa and PDI Investment Holdings Limited (PDI), today announced that it has acquired a 90% interest in two Croatian shopping centres - City Center one Zagreb West and City Center one Zagreb East, both located in Zagreb. The purchase consideration net of EUR 154.4 million – the Johannesburg Stock Exchange reports. So far, there is no mention whether the company is interested in purchasing the third shopping mall in the chain - City Center One in Split. CC Real d.o.o. will continue to manage the said shopping malls which are going to operate under the same brand. A total of 21 million shoppers visited these shopping centres last year, which cumulative turnover amounted to over EUR 480 million. After completion of the transaction, Hystead will own six shopping centres in five countries with the gross worth of more than EUR 740 million. The other four centres are Delta City in Podgorica, Delta City in Belgrade, Skopje City Mall and The Mall in Sofia.

Ericsson NT

DECLINE IN REVENUE AND PROFIT

Coca-Cola

RESULTS BETTER THAN EXPECTED

Coca-Cola published its quarterly results which were better than analysts’ expectations, and this resulted in growth of share price by more than 2%. Organic growth of sales amounted to six percent thanks to demand for coffee and vitamin water. Net operating income dropped from $9.41 billion in 2016 to $7.51 billion, which is better than analysts’ forecasts, who expected $7.36 billion. In fourth trimester, Coca-Cola posted a loss of $2.75 billion, or 65 cents per share,

mainly due to one-time cost of $3.6 billion because of the tax reform. Adjusted result shows a profit of 39 cents per share, which is one cent better than expected.

Ericcson Nikola Tesla generated a total of 276.6 million kuna from domestic sales last year, which is a 3% hike compared to the year before. Sales revenue in 2017 amounted to 1.48 billion kuna, which is a 6.9% drop relative to 2016, and this is a result of the declining sales in foreign markets. The company's net profit decline was in double digits. According to the company's report, published on Friday, the net profit was 67.9 million kuna last year, which is 38.7% less than in 2016. In the domestic market, total sales amounted to HRK 276.6 million which is 3% percent more compared to 2016.

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PO LI TI C S

Text: ŽIKICA MILOŠEVIĆ

Suicide or the Death Drive The dark side of nationalist love and Yugoslav federal leaders and Slobodan Milošević were also quite suicidal, playing a very dangerous game with no allies. So, after 1999 and the Kumanovo Agreement, we thought it is all over, right? Wrong! THE NOUGHTIES AND BEYOND

When Bosnian-Croat Army General Slobodan Praljak drank a small bottle of poison in the very centre of The Hague Court (justly compared to Shakespearean heroes or villains, depending on your position), it provided a kind of perfect ending for the ICTY. The general of a former civil war nationalist army committing suicide, with the wars and nationalism that triggered them having been equally suicidal. It seems that people and governments will never stop feeling the Freudian “death drive”. THE NINETIES

It seems quite paradoxical that in America, and the West generally, people remember the 1990s as “the best decade ever”, while half of Europe remembers that decade as the worst since the 1940s. However, it all started with suicidal moves. The most suicidal countries at the time were Serbia, Bosnia and Georgia. We paid the highest price for the nationalist drive, which led to … well, in Serbia at least, the revoking of the autonomies of provinces (the same in Georgia) and a desire to bring all Serbs into one state. Bosnia paid the price for Izetbegović’s totally irrational rejection of two plans that could have prevented war: the 1991 plan compiled by Muhamed Filipović et al., regarding the reforming of the Federal Republic of Yugoslavia to comprise three republics instead

of two, and the later rejection of Cutilhero's plan in March 1992. After the disastrous war in Croatia, leaving thousands killed and displaced, could anyone have believed that Bosnia would avoid that without a comprehensive agreement? Azerbaijan revoked the autonomy of Nagorno-Karabakh, prompting

A crisis broke out in Macedonia in 2001, and it was again an ethnic Albanian insurgence that ended up in a wise agreement being reached, the Ohrid Agreement. Serbia was quite constructive at the time, peaceful Bosnia was slowly healing its wounds, Croatia was preparing for EU entry, while the rest remained in status quo, following Chechnya’s successful reintegration into Russia. Still, other suicidal moves came. Kosovo unilaterally declared its independence, supported by the West, and is now in limbo, with half-recognised passports and a state, provoking

SERBIA AND UKRAINE CANNOT PICK THEMSELVES UP AND RELOCATE TO SOMEWHERE BETWEEN NORWAY AND ICELAND. WE MUST DEAL WITH OUR NEIGHBOURS AND SHOULD ALL STOP BEING SO NATIONALIST... AND SUICIDAL Armenia to step in. Moldova flirted with unification with Romania, so Gagauzia and Transnistria stepped out (the former was later peacefully and wisely reintegrated, so Moldova proved to be a story that was at least 50% successful). Croatia kicked the Serbs out of the Constitution, triggering its own crisis,

constant tension. Mikheil Saakashvili, perhaps listening to some whispers from outside, launched a war adventure in Tskhinvali, which triggered Russian intervention in South Ossetia, Abkhazia and, even worse, in Poti and Gori. All intelligent things – like reforming the police, the economy and the rest –

were shattered by Misha, who was later ousted. Such a waste… And then, after the beautiful picture it represented, Ukraine made another self-destructive move in early 2014, after Maidan-2 or Euromaidan. Yanukovych might be corrupt, but the agreement with him was not fulfilled, and the country – instead of striving to reach a comprehensive agreement between all regions, from Crimea to Lviv and from Donetsk to Odessa, turned to a one-sided solution, thus repeating all the mistakes made by Serbia, Bosnia and Georgia. Needless to say, it is hard for Kiev to communicate with Russia, which annexed Crimea, but it seems that Ukraine doesn’t stop raising tensions with many others: the Education Law is really bad, to put it lightly, creating problems with Poland, Hungary and Romania, while its latest approach to Belarus, Serbia (well, we are the only ones that could possibly be intermediate countries, since we are rather impartial here) and Israel don't help. And the trouble is that we will all have to live together once again, like in the Balkans. Nobody can escape their geographical position and neighbours. No matter how tough it might be, we have to talk: Serbs with Albanians, Ukrainians with Russians, Georgians with Russians, Azerbaijanis with Armenians etc. Serbia and Ukraine cannot pick themselves up and relocate to somewhere between Norway and Iceland. We must deal with our neighbours and should all stop being so nationalist... and suicidal.

MORE SUICIDES More suicidal moves came from Catalonia and Kurdistan. Both provinces desired independence and organised referenda and, as a result, Catalonia temporarily lost its autonomy and had its leaders prosecuted, while Iraqi Kurdistan lost 30% of its territory, which it had acquired in the war against the co-called Islamic State. The Croatian Sabor, in an effort to prove that Croatia didn’t intervene in Bosnia, declared the members of Croatian Defence Council (HVO) members of the Croatian Army, granting them all the associated privileges! Montenegro almost obliterated the Cyrillic script, while Russia adopted a new language law, causing disappointment among the titular nations in autonomies – abolishing the teaching of titular languages if you are not a member of a titular nation... The list is growing longer by the day.

Guests Recognize the Quality of Our Offers

The excellent results from January, when we recorded a substantial growth of 20 % in arrivals and 17% in overnight stays, just corroborate the fact that we are on the right track KRISTIJAN STANIČIĆ Director of the Croatian National Tourist Board

The constant growth of tourist traffic is best substantiated by the announcements from the generating tourism areas for this year where I expect the continuation of positive trends and the increase in tourist traffic of about 5% with a special growth of traffic in the pre- and post-tourist season – says Kristijan Staničić, Director of the Croatian National Tourist Board (CNTB), for our magazine. . Particular attention is paid to the development of health and business (MICE) tourism. After 2017 being a record year, 2018 also started with certain set and more than good results

accomplished. How can we interpret these results and what are the general trends?

— The results indicate that the promotional activities and campaigns carried out by the Croatian National Tourist Board worldwide are giving results and that we are successful in our efforts to position Croatia as an attractive all-year tourist destination. The guests recognize the quality of our offers, which is best substantiated by the

and post-tourist season The excellent results from January, when we recorded a substantial growth of 20 % in arrivals and 17% in overnight stays, just corroborate the fact that we are on the right track. One of the things that the CNTB will be working on in 2018 is developing and promoting health and business tourism. What is the current potential of each of these branches?

TODAY, CROATIA GENERATES AROUND EUR 300 MILLION IN REVENUE FROM HEALTH TOURISM WHICH IS A GLOBAL PRODUCT THAT IS GROWING AT A RATE OF BETWEEN 15% AND 20% A YEAR announcements from the generating tourism areas for this year where I expect the continuation of positive trends and the increase in tourist traffic of about 5% with a special growth of traffic in the pre-

— Health tourism is one of those tourist products which is in demand all year around and which greatly complements the rest of the Croatian tourist offer. Today, Croatia generates about EUR 300

million from tourism, and has the potential to generate an even bigger annual turnover. We are talking about a global product that is growing at a rate of between 15% and 20% a year, and our ultimate goal is for Croatia to be recognized a renowned health tourism destination. Business (MICE) tourism also has a stable position globally. Both research and forecasts point to further growth in business travel and business gatherings, as well as the growth in total budgets allocated to business meetings of corporations and associations. Our goal is to keep perpetuating positive development and trends, and in order to do so, we need to further develop and promote selective forms of tourism that can be the driving force behind further development of the overall tourist offer outside peak summer season. Health and business tourism have the biggest potential to achieve this.

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Photo source: Goran Stanzl/Pixsell/HTZ

I NTERVIEW

— First and foremost, it is vital to create valid legal frameworks that will encourage further investments and projects in health tourism. The Ministry of Tourism has made great strides by drafting a new Tourism Services Act which stipulates services that are considered health tourism services. These are the services like organizing and mediating transportation, tourist transfer and accommodation services, and individual services or organized trips. Also, a prospective circle of health tourism service providers has expanded, and besides specialized hospitals and health resorts, other healthcare institutions, such as healthcare companies, can now provide these services, as can healthcare professionals who have an independent private practice. Our promotional activities are also important, bearing in mind that around 15% percent of all travels in the world are motivated by health reasons. We have recently presented a new page dedicated to health tourism on our official website. This is a joint project of the Croatian Tourist Board and the Croatian Chamber of Commerce, which aim is to present the national health tourism offer in one place. On this page, businesses are divided into 10 tourist regions and according to their activities while the information is available in six languages, so that all businesses involved in health tourism are promoted in a unique way. Also, this year, we have allocated HRK 2 million for advertising health tourism as an important tourist product in terms of the potential and its development projection. We are continually promoting our health tourism offer in the generating tourism areas.

This month, for example, we had a successful presentation at the specialized Termalies Fair in Paris in a very representative area under the famous Pyramid of the Louvre Museum, at the conference titled "Croatia, a new attractive European destination for health tourism and good physical and spiritual health".

THE TOTAL VALUE OF EXPECTED INVESTMENTS IN TOURISM IN CROATIA IN 2018 EXCEEDS EUR 1.3 BILLION

systematic approach to promotion and development of the congress tourism offer, and with that aim in mind, we have created a new Congress Department that will begin its activities soon. Its tasks will include organizing appearances at specialized congress fairs and conferences, monitoring the quality of congressional capacities, coordination of promotional activities, coordination of activities with business partners, supporting Croatian congress destinations, monitoring developments in tourism markets, and building and maintaining relations with international organizations. I am confident that these activities will give an additional impetus to presenting Croatia as a desirable congress destination. Apart from the fact that congress tourism is an excellent way of promoting the destination, because congress tourists usually return to the same desination with their families and friends later on, the advantage of this form of tourism lies in the increased average guest spending.

Which parts of the country have the best infrastructure for development and how much additional investment is needed?

What expectations do you have from positioning Croatia in this market segment, and can you tell our readers what events the CNTB has been preparing?

— Croatia has numerous comparative advantages for faster development of health tourism. We have a highly sought after, qualified, skilled staff, a good reputation as health services provider, very competitive prices, and easy accessibility from the major generating tourist areas. Furthermore, we have an overall tourist appeal and widespread natural healing resources, such as thermal and mineral water, medicinal mud, clean air, the seaside, medicinal plants, etc. We are also pleased to see that, along the coastline, the continental part of our country abounds with quality resources for a more powerful development of this tourist product. Our research and estimates indicate that the mentioned changes in the legal framework

will pave the way for 350 million euros worth of investments in health tourism projects. If we add this amount to the announced EUR 940 million worht of tourism investments in the public and private sector, the total value of expected investments in tourism in Croatia in 2018 exceeds EUR 1.3 billion.

These figures are the best indicator that Croatia, apart from being an attractive tourist destination, is attractive for investments as well. Business and congress tourism are one of the fastest growing segments of tourism. Croatia plans to attract around one million participants of business meetings annually by 2020. What are the plans for this year and what progress have you made in the implementation of the Tourism Development Strategy in this segment?

— The Croatian National Tourist Board systematically carries out a number of promotional activities in the mentioned segment through specialized fairs and workshops, as well as through having quality cooperation with partners and international professional associations. We have noticed the need for an even stronger and more

— On the European and world MICE map, Croatia is presented as an attractive congress and incentive destination. This is greatly complements our other tourist offers, which include the celebrated natural attractions, cultural attractions and an excellent eno-gastronomic offer. The Croatian National Tourist Board has successfully participated in specialized fairs and workshops such as IMEX Frankfurt, IMEX Las Vegas, IBTM Barcelona, The Meetings Show London, Conventa Ljubljana and others, and we will step up our activities in the future too. Croatia's membership in the Strategic Alliance Management Congress Europe is also very important, which just corroborates the fact that our country is an important MICE destination.

Photo source: Goran Stanzl/Pixsell/HTZ

You said that Croatia today generates EUR 300 million from health tourism, with a potential for earning over EUR 1 billion a year. What are the concrete steps and actions you plan to undertake to further strengthen this tourism branch?

BUSINESS AND CONGRESS TOURISM IS THE SOLUTION FOR HAVING A LONGER SEASON Business and congress tourism is the solution for having a longer season Business and congress tourism is the solution for having a longer season? — Speaking in more detail about the congress industry in Croatia, we can say that it is still mostly about hotels and specialized congress and event agencies, although in recent years, the number

of companies specializing in organizing individual business events has gone up. Also, several congressional offices, such as those in Zagreb, Opatija or Dubrovnik, have been successfully operating in the tourist board system. The cooperation is very good, and by establishing the Congress Department in the CNTB headquarters, it will be even more efficient and successful.

I NTERVIEW

We Always Start from Scratch Although the critics have been showering Malayes with praise, the band's lead singer says that the band members are too much of realists to be euphoric and rest on their laurels for too long. Still, they are persistent enough to continue „tilting at windmills“, which are a small music market and an apathetic society you, or do you not even think about these awards when you are preparing new material?

PETAR BELUHAN Lead singer of Mayales

„We are always searching for a good song, without being calculated. This is the beginning and the end of any musical experiment that we undertake“, says the lead singer of Malayes, Petar Beluhan in an interview for Diplomacy&Commerce. So far, you have figuratively died and been reincarnated three times, with each new reincarnation being exciting and drawing in new fans. Is this more difficult to do now compared to the 1990s when the audiences were much more attuned to the Croatian music scene?

— I don't know how objective of an answer I can give you, but I am under the impression that in the 1990s we were naturally closer to younger audiences which, by default, were more curious and more tolerant to experimenting. Today, understandably, everything is much different because we are no longer the first choice for young people who make up the consumer majority which every band needs in order to transition from being a self-sustainable band to a performing one. We are still far away from that. However, this is the only way we can function, without being calculated and being led solely by our musical curiosity. In a survey conducted among 30 music critics late last year, your album „Simbol za Sunce“ („Symbol for the Sun“) was voted number one, while, in 2013, you won the Porin Award for your album „2“. Does this pose a burden to

— I often say that all these, really incredible compliments fade out and become irrelevant pretty quickly, and that, soon after, you have to do it all over again – sit down and make music from scratch. Our creative process is quite casual, with the exception of very high standards that we impose on ourselves. Maybe this is due to our age and the fact that we don't succumb that easily to a rather questionable and short-lived euphoria. We are quickly put back in our place by our everyday lives and our reality. And this is the tilting against windmills situation – we are 'battling' against a small market, modest purchasing power, and the culturally neglected and apathetic society. If we were to disapper by any chance, nobody would miss us. Your last album „Simbol za Sunce“, which came out in 2017, was first released on Deezer and then in stores. What is your approach to younger audiences today, where they can find you and what novelties do they bring to your music?

— Reaching the audience is a combination of attempts and failures – from Deezer, Facebook and YouTube to radio and TV. This is a very challenging battle where we are on a constant search for opportunities, cracks, and any chance to get to the audience, both young and older. This, unfortunately, takes up 50% of our day which, otherwise, we could have spent performing our music. And that's the reality for artists in general. I believe that

our counterparts in other countries have it the same. Since the ether is ovesaturated with billions of pieces of information, it's really hard to break through all that noise and content. I don't think I will be able to list here all my main moves and tricks that have enabled us to have a presence both in the ether and the people's conscience. You are asking me about younger people... I really couldn't tell you how they perceive us. I assume that, at a subconscious level, they recognize the quality that resembles their foreign idols. But, again, we are far from being widely accepted. I should also underline that a number of our friends and enthusiasts, and above all our record label, have been helping us on a regular basis.

force. We are also inspired by TV series, films, documentaries, and conceptual artists from all sorts of segments. Last but not least, we are inspired by our contemporaries who are fighting the same battle here as we are, namely everyone who has enough breath to inflate a fairytale baloon in this alienated and often dim reality. What is psychedelia considered a genre that easily fits into contemporary pop trends? How much effort do you need to invest to translate your music into this new sound?

— The term 'psychedelia' is not something that we use on purpose or knowingly. If critics did not recognize this moment, I don't

REACHING THE AUDIENCE IS A COMBINATION OF ATTEMPTS AND FAILURES TAKES UP 50% OF OUR DAY WHICH, OTHERWISE, WE COULD HAVE SPENT PERFORMING OUR MUSIC Apart from The Beach Boys and The Beatles, music critics say that your music has hints of The Flaming Lips and Gorillaz. What kind of music do you listen to? What kind of music appeals to you and affects you?

— Oh, this is one of those questions that you are never prepared for. I can give you the names of at least 50 or so artists and bands now, and come tomorrow, I will remember another two or three important bands that I did not mention because this is an everyday process that is happening on the margins of the conscious. Music is not the only role model and driving

know if we would ever include it in our biography as a description of what Mayales sounds like. Psychodelia happens spontaneously in our arrangements, and not because we want to associate it with the state of daze, but because such a sound is inadvertently imprinted in our subconscious code. We just love to 'sprinkle' the reverb all over our performances; we also love polyphony, surf guitar and various effects that are usually associated with psychedelia - but that's just icing on the cake. The foundation - good song, melody, harmonic circle, message that your lyrics carry – is much more important.

MUSIC BY OUR OWN MERITS Although you write music effortlessly, you do spend a lot of time in studio until you get the sound that you want. Is that a luxury in today's day and age of speed and short attention span? — You are right. It is a luxury that we have not renounced as yet. We are pendatic, ruminated and self-critical and that's the only modus operandi that we use. I am confident that only in such way you can play in the long run. I seriously doubt if we would be capable of doing it differently.

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N O T T H E F IL M YO U ’ RE LO O K IN G F O R

“The Last Jedi” Tears Down—and Rebuilds—the Star Wars Franchise Rian Johnson’s film subverts expectations, and offers a new jolt of purpose to the venerable series

In an early scene in “Star Wars: The Last Jedi”, Luke Skywalker (Mark Hamill) is handed his long-lost lightsaber—only to toss it over his shoulder and walk away. Sacrilege! In another early scene, the moody Kylo Ren (Adam Driver) is ordered to take off the “ridiculous” Darth Vader-like mask that makes it so difficult to understand what he is saying. Sacrilege again! The lightsaber and the mask were presented as holy relics in the previous "Star Wars" instalment, “The Force Awakens”, but the follow-up, written and directed by Rian Johnson, establishes in its opening minutes that it won’t be putting up with any of that nonsense. Harrison Ford’s sceptical Han Solo may be absent, having been killed off in “The Force Awakens”, but the character’s grouchily irreverent spirit flows through it. “The Last Jedi” keeps scoffing and smirking at the saga’s iconography and mystic mumbo-jumbo in a manner more akin to a Mel Brooks parody than an official entry in the series. And yet, by the end of the film, it ensures that its devotees will love “Star Wars” more than ever. “The Force Awakens” revived the franchise when it came out two years ago. A decade earlier, George Lucas’s abysmal trilogy of “Star Wars” prequels had staggered to an ignominious conclusion, but it was obvious within the first half-hour of the new film that the people behind it knew what they were doing. Indeed, J.J. Abrams, who directed “The Force Awakens”, clearly understood the magic of Mr Lucas’s original 1977 film more deeply than Mr Lucas did, and he gave its fans everything they treasured about “Star Wars”—not least the scratched, grimy metal interiors, with their grilles and cables and atmospheric puffs of steam. He also gave them the novelty of a female protagonist, Rey (Daisy Ridley) who could outfight, outshoot and out-mind-control her male counterparts. To quote the subtitle of the first “Star Wars” film, Mr Abrams gave the fans a new hope. What he didn’t give them was any compelling reason for the saga to continue other than to heap billions of dollars into the coffers of Disney, the company which now owned it. “The Force Awakens” may have been a barnstorming space opera, but it was also a shameless retread of the 1977 “Star Wars”—yes, it even ended with the rebels blowing up another bloody Death Star—and this lack of novelty undermined the validity of the whole enterprise. If the best a new “Star Wars” film could do was to copy Mr

Lucas’s old ones, then what was the point? To a degree, “The Last Jedi” is derivative, too, in that many of its scenes are minor variations on scenes that were in the 1980 “Star Wars” sequel, “The Empire Strikes Back”. To wit, Luke lectures Rey in his off-the-grid Jedi retreat, just as Yoda once lectured Luke, only the lecturing takes place on a mountainous island rather than in a swampy cavern. And Finn (John Boyega) and his sidekick Rose (Kelly Marie Tran) try to evade their fascist pursuers by rubbing shoulders with the galaxy’s high-rollers, just as Han Solo and Princess Leia once did, only the shoulder-rubbing takes place in a casino rather than in Cloud City.

JUST WHEN YOU THINK THAT IT IS NEARLY OVER, MR JOHNSON COMES UP WITH SURPRISING ANSWERS TO ALL THE QUESTIONS HE HAS POSED But if “The Last Jedi” is all too similar to “The Empire Strikes Back” in outline, what is different about it is its maverick attitude. Instead of going along with the received wisdom that the Jedi are virtuous crusaders for peace and justice, and that imperial oppressors have to be fought at all costs, Mr Johnson keeps questioning and mocking everything we took for granted about the series. To paraphrase Edwin Starr, he keeps asking: “Star Wars, what is it good for?” For much of the film, this line of enquiry is intriguing without being especially entertaining.

It is hard to resist BB8, the lovable and astonishingly capable robot (who can be recreated at home by putting an upturned cereal bowl on top of a beach ball). It tugs the heartstrings to see Princess Leia (Carrie Fisher, who died before the film was completed) finally getting to show off the Jedi powers which the men in the Skywalker family have always been so free and easy with. And Mr Driver’s wounded performance as the conflicted Kylo Ren must put him in contention for a Best Supporting Actor Oscar. But “The Last Jedi” doesn’t have the hurtling pace or the vertigo-inducing action that distinguished “The Force Awakens”, so it is possible to admire Mr Johnson’s cheeky iconoclasm and philosophical musings while glancing repeatedly at your watch. In the film’s last act, however, it makes its metaphorical leap into hyperspace. Just when you think that it is nearly over, Mr Johnson comes up with surprising answers to all the questions he has posed. He stages combat sequences which will have audiences punching the air and cheering, and he deepens the characters in ways which subvert our expectations and then surpass them. It is quite a feat: he tears “Star Wars” down to its foundations, only to build it back up again. As slow as it may initially be, “The Last Jedi” finishes by giving the series not just a new hope, but a new and electrifying sense of purpose. Best of all, it doesn’t rely on anyone blowing up a Death Star. From The Economist, published under licence. The original article, in English, can be found on www.economist.com

C ALEND AR & NE W S

CU L T U RE CA L E N DA R Schedule

CONTEMPORARY CROATIAN ART AWARD

CROATIAN NATIONAL THEATRE IN ZAGREB Tuesday, March 27, 2018 at 7.30pm Ballet

BEDŘICH SMETANA PATRICE BART

Empress Elisabeth of Austria - Sissi Premiere

Saturday, March 31, 2018 at 6pm Ballet

BEDŘICH SMETANA PATRICE BART

Empress Elisabeth of Austria - Sissi Sunday, March 4, 2018 at 11.00am Foyer

WINFRIED RADEKE PETER LUND

Hillary the Witch and the Offended Contrabass Premiere

Saturday March 10, 2018 at 6pm Opera

GIUSEPPE VERDI SICILIAN VESPERS

The HT Contemporary Croatian Art Award is the biggest and one of the most important awards for contemporary visual art in Croatia. The exhibition of the artwork, selected over the last ten years, has grown into a representative and relevant overview of the situation on the Croatian visual scene. The selected thirty or forty artists and their artwork have been equally presented and awarded at the past exhibitions. The artwork is evaluated and selected by the International Expert Committee, which this year comprises of Snježana Pintarić, Director of the Museum of Modern Art, Ivana Kancir, Senior Curator at the Museum of Modern Art, Katrin Bucher Trantow, Senior Curator at Kunsthaus, Graz, Alenka Gregorič, Curator and Head of the Ljubljana Gallery and KC Tobačna Gallery 001, and artist Alem

Korkut. Just like previous years, the expert committee will give out three awards - the first prize, in the amount of 75,000 kuna, the second prize in the amount of 45,000 kuna, and the third prize in the amount of 40,000 kuna. The audience award, in the amount of 10,000 kuna, is paid to the artist whose work got the highest number of votes, counted by the special committee, after the exhibition closes. The award is not redeemable and is paid to the author as an incentive for further work. This year, a total of 236 works on a wide range of topics and of various media expressions have been submitted for the exhibition. As usual, the International Expert Committee has directly invited three artists - Mihael Giba, Dunja Jaković and Zlatan Vrkljan – to participate in the exhibition.

Conductor Nikša Bareza, director Janusz Kica, with Adela Golac Rilović, Željka Martić, Michal Lehotský, Siniša Hapač, Berislav Puškarić, Nikša Radovanović, Božimir Lovrić, Tvrtko Stipić, Davor Radić, Ozren Bilušić, Ivica Trubić Sunday, March 11, 2018 at 11.00am Foyer

WINFRIED RADEKE PETER LUND

Hillary the Witch and the

Offended Contrabass

Foyer

Sunday, March 11, 2018 at 11.00am Opera

Hillary the Witch and the Offended Contrabass

GIUSEPPE VERDI SICILIAN VESPERS

WINFRIED RADEKE PETER LUND

Sunday, March 25, 2018 at 11.00am Foyer

WINFRIED RADEKE PETER LUND

Hillary the Witch and the Offended Contrabass

Wednesday, March 28, 2018 at 7.30 pm Opera

GIUSEPPE VERDI OTELLO

Guest performance by the Croatian National Theatre Ivan pl. Zajc from Rijeka Thursday, March 29, 2018 at 7.30 pm Opera

GIUSEPPE VERDI OTELLO

Guest performance by the Croatian National Theatre Ivan pl. Zajc from Rijeka Friday, March 30, 2018 at 7.30 pm Opera

GIUSEPPE VERDI MESSA DA REQUIEM

Conductor Nikša Bareza, with Lana Kos, soprano; Dubravka Šeparović Mušović, mezzosoprano; Tomislav Mužek, tenor; Luciano Batinić, bas

PREMIERE OF WILLIAM SHAKESPEARE'S 'KING LEAR' COMING SOON The Drama Section of the Croatian National Theatre in Zagreb is currently preparing a premiere of William Shakespeare's 'King Lear', directed by Janusz Kic, that will take place on 23rd February, 2018. Lada Kaštelan translated this masterpiece, Numen and Ivana Jonke are in charge of the set design, Eva Dessecker is the costume designer, while music is written by Tamara Obrovac. Predrag Miki Manojlović plays Lear, Ana Begić is Goneril, Iva Mihalić is Regan, Jadranka Đokić is Cordelia, Milan Pleština is the Earl of Gloucester, Mislav Čavajda plays Edgar, Bojan Navojec is Edmund, Gloucester's son born out of wedlock, Goran Grgić is the Earl of Kent, Krešimir Mikić plays the Fool, Ivan Glowatzky is the Duke of Albany, Luka Dragić is the Duke of Cornwall, Alen Šalinović is Oswald, Damir Markovina is the Gentleman, Ivan Jončić plays the King of France, Silvio Vovk is the Duke of Burgundy, Ivan Colarić plays the The First Servant and Ugo Korani the Second Servant.