Diplomacy&Commerce 36

September 2021 | ISSUE No. 36 | ONLINE EDITION

23 SEP

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SWITZERLAND, A STRONG PARTNER IN THE HEART OF EUROPE H.E. EMILIJA GEORGIEVA

Ambassador of the Swiss Confederation to Croatia

ZAGREB STOCK EXCHANGE IS A REGIONAL LEADER IVANA GAŽIĆ

President of the Management Board, Zagreb Stock Exchange

BENEFITS FROM THE INTRODUCTION OF EURO SIGNIFICANTLY OUTWEIGH THE COSTS AND RISKS

SWITZERLAND RANKS th 13 AMONG FOREIGN INVESTORS IN CROATIA

Director, Croatian Banking Association

President of Swiss Croatian Business Association

ZDENKO ADROVIĆ

Exhibition opening:

MODIGLIANI – REVOLUTION OF PRIMITIVISM

BOJAN POLJIČAK

Not Funny Anymore FOLLOW US TO STAY UPDATED

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BOBAN SPASOJEVIĆ

Magazine Director Croatia boban@diplomacy andcommerce.hr

FOREWORD

ROBERT ČOBAN Director

ILIJA PETROVIĆ INDIGOCHILD

Art director indigochild.ilija@gmail.com

ALEKSANDAR KOSTIĆ

Designer designamites@gmail.com

ROBERT ČOBAN

Director Photos GETTY IMAGES TOMISLAV SMOLJANOVIĆ

Translation GORANKA MILOŠEVIĆ

Predstavnik za RH

n the days just after the Taliban entered Kabul, social network users had great fun with videos like “Taliban at roller-coaster”, “Taliban in amusement park”, “Taliban at the gym”, “Taliban eating ice-cream”, which seem as though they were borrowed from the movies such as “Borat” or “The Visitors”… These young men with beards and in traditional robes seemed likeable, even innocent in contact with the “charms of civilization” they never encountered until then. What the young people across the planet, and even their peers in Kabul (until a few days ago) observed as a normal part of their everyday lives (recreation, entertainment, sweets) – they never had the chance to experience.

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Then the bombs started echoing, they started to count the dead again, reports of human rights abuses started coming in, especially when it comes to women, and suddenly nothing was funny anymore.

This “funny bad guys” phenomenon did not happen now for the first time in the mountains of a state where probably none of us will set foot in during our lifetime. How many times the local “tough guys” seemed likeable to us in the movies, and even in real life; “the knights of asphalt” or, earlier, revolutionaries with a rose in their lapels, who we later learned were killing innocent people, raping their wives and daughters, evicting them from their houses and apartments.

We are often inclined to idealize people who do not deserve it under the influence of the media and popular culture. Just imagine them in your city, licking ice-cream from

a pastry shop on the corner, driving bumper cars in an amusement park where your children played just yesterday, training in a gym where your son or brother was sweating until last week. Imagine that your daughter does not have the right to school or even a simple walk on the street.

Many times in our history, we thought that many things were happening “somewhere else” and that there is no chance for them to happen to us. And yet they did. I always remember the story of an old Jewish woman originally from Čakovec, who called her parents when the war started in 1941 to hide in the house of her husband’s family in some village in Serbia. They refused with indignation and left to Auschwitz, believing that a cultural and civilized people like the Germans would never be able to commit such great evil.

Think about that every time you think the “bad guys” seem nice.

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CONTENTS

04

HOW WILL THE TALIBAN RULE AFGHANISTAN THIS TIME? Back to the past

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SWITZERLAND, A STRONG PARTNER IN THE HEART OF EUROPE H.E. EMILIJA GEORGIEVA Ambassador of the Swiss Confederation to Croatia

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SWITZERLAND RANKS 13TH AMONG FOREIGN INVESTORS IN CROATIA BOJAN POLJIČAK President of Swiss Croatian Business Association

BENEFITS FROM THE INTRODUCTION OF EURO SIGNIFICANTLY OUTWEIGH THE COSTS AND RISKS ZDENKO ADROVIĆ Director, Croatian Banking Association

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ZAGREB STOCK EXCHANGE IS A REGIONAL LEADER IVANA GAŽIĆ President of the Management Board, Zagreb Stock Exchange

TELEMACH CROATIA IS BUILDING THE FASTEST 10 GIGA OPTICAL NETWORK IN EUROPE ADRIAN JEŽINA President of the Management Board of Telemach Croatia and Slovenia

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ALTERNATIVE DISPUTE RESOLUTION FOR CONSUMERS (ADR) PETAR PETRIĆ Attorney at Law, Petrić & Kajić Law Firm LLC

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MODIGLIANI – REVOLUTION OF PRIMITIVISM Exhibition

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BACK TO THE PAST

How Will the Taliban Rule Afghanistan This Time?

The Islamist victors claim to have changed since they ran the country twenty years ago. Few believe them he Taliban fighters strolled into the marbled halls of the presidential palace unopposed, their dusty boots and sandals treading gingerly on the fine carpets. With their beards and capes, and an AK-47 on the table, they took up a sombre pose at the desk of Ashraf Ghani, the departed president. The Taliban’s standard was hoisted on the roof.

A couple of miles away a more harrowing scene was playing out at the international airport. American marines held the perimeter, seeking to evacuate international civilians, but inside was chaos. Desperate Afghans thronged military transporters and tried to climb up airport gantries to fight their way onto last flights out.

Commercial flights were cancelled. One Afghan official recounted how his flight had been prevented from taking off when government bigwigs forced their way on and tried to order passengers to give up their seats. American troops fired in the air to try to impose some order.

Mr Ghani flew to Central Asia, where he released a message saying he had fled in order to spare the country any further bloodshed. “The Taliban won victory in the judgment of sword and gun,” he acknowledged, “and they have [the] responsibility to protect the honour, prosperity and self-respect of our compatriots.” Erstwhile allies and rivals damned him. “They tied our hands from behind and sold the country.

Curse Ghani and his gang,” said Afghanistan’s acting defence minister, Bismillah Khan Mohammadi on Twitter. Abdullah Abdullah, Mr Ghani’s long-standing political rival, said: “God should hold him accountable.”

Many Kabul residents were relieved, to an extent, as the city appeared to change hands without urban fighting. Battles for control of Kabul between 1992 and 1996 caused more than 25,000 deaths.

Yet few trust the Taliban’s protestations that they have changed since their days as enforcers of an unusually harsh blend of sharia

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THE TALIBAN HAVE HAD TWO DECADES TO DREAM OF WHAT THEY WILL DO WHEN THEY RESTORED THEIR EMIRATE. IN THE COMING DAYS THE WORLD WILL FIND OUT and pre-modern tribal customs, including a ban on the education of girls. The militants have already stopped women from working in other provinces and ordered families to hand over their daughters to be “married” to fighters.

The Taliban said they would declare the restoration of the Islamic Emirate of Afghanistan— the name they gave their regime established in the 1990s, which was swept away by America in 2001, following the September 11th attacks by al-Qaeda, the jihadist group harboured by the Taliban. Mohammad Naeem, the spokesman for the Taliban’s political office in Doha, declared the war was over. He called for peaceful relations with the international community and said the Taliban did not want to live in isolation. The form of the regime would soon be clear, he said.

Mullah Abdul Ghani Baradar, the Taliban’s deputy leader and lead negotiator, congratulated the Afghan nation and admitted he was staggered by his movement’s success. “There was no expectation that we would achieve victory in this war,” he said in a short vid-

eo. “Now it will be shown how we can serve our nation,” he added.

“We can assure that our nation has a peaceful life and a better future.”

Mullah Baradar will soon fly to Kabul, Taliban sources said, where he will probably take a leading role in the new administration. Haibatullah Akhundzada may be the Taliban’s overall leader, but Mullah Baradar has been its public face.

With their conquest complete, several of the movement’s other leaders may also step out from the shadows. Men like Sirajuddin Haqqani, scion of the fearsome Haqqani faction of the Taliban, as well as Mullah Yaqoob, son of the Taliban’s founder, Mullah Omar, have had little public profile and are thought to have been hiding in Pakistan. Now they may move operations back to their homeland and take senior roles.

Government ministries will have to be carved up. “Do the Taliban have mid-senior management ready to step in and immediately run the functions of government?

Or will ministry staff be asked to remain at work, for now? Those aren’t ‘major players’ but they will be critical to what happens next,”

says Andrew Watkins of Crisis Group, a think-tank.

As yet, there is no international recognition of the Taliban. The West faces a dilemma: it does not want to prop up the Taliban government financially, but some governments also hope to use aid as leverage to elicit reasonable behaviour from the new rulers. But Imran Khan, the prime minister of neighbouring Pakistan, which has long supported the group, welcomed their victory.

“They have broken the chains of mental slavery in Afghanistan,” he said. Pakistan’s climate minister tweeted that “people are rejoicing all across Afghanistan”. And their conquest was hailed by the country’s largest religious political party, Jamiat Ulema-e-Islam (JUI-F).

Others are less enthused. “We don’t want anybody to bilaterally recognise the Taliban,” said Boris Johnson, Britain’s prime minister. “We want a united position among all the like-minded, as far as we can get one, so that we do whatever we can to prevent Afghanistan lapsing back into a breeding ground for terror.” Yet even Mr Johnson hinted that recognition might come if the Taliban were to meet “conditions” around terrorism, human rights “and many other things”.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

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INTERVIEW

Switzerland, a Strong Partner in the Heart of Europe Under the Swiss enlargement contribution, Switzerland supports many projects in the youngest EU member

H.E. EMILIJA GEORGIEVA Ambassador of the Swiss Confederation to Croatia

he Swiss Ambassador to Croatia H.E. Emilija Georgieva for Diplomacy&Commerce explains how the Swiss government is dealing with the Covid-19 pandemic and resulting economic crisis. She also talks about the bilateral relations between Switzerland and Croatia, and her recommendations for any travelers coming to Croatia.

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What is the current situation with the Covid 19 crisis in Switzerland? How many people have been vaccinated and what do you expect for the coming autumn and winter, will there be a new lockdown or some new measures or do we have to live with Covid-19?

AROUND 50 SWISS COMPANIES ARE SUCCESSFULLY ACTIVE IN CROATIA AND GENERATE SEVERAL THOUSAND JOBS

Photo: Tomislav Marić

— As is the case in Croatia, the Swiss Government is fighting against the pandemic with all necessary measures, including careful consideration of, and respect for, personal freedoms.

To date, Switzerland has administered more than 9 million vaccine doses, so that just under 53% of the Swiss population is fully vaccinated. As in Croatia, we have a mask mandate indoors and Covid-certificates are mandatory for large events.

The Federal Council recently extended the certificate requirement, and since September 13 it applies to almost all indoor events, regardless of size. This includes restaurants, museums and

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From an economic point of view, how much has the pandemic affected the Swiss economy?

Which sectors were the hardest hit? What do the numbers show?

— The Swiss economy, like the Croatian and many others, has suffered from the pandemic. The gross domestic product fell by 2.9 percent in 2020 compared to the previous year, and the particularly hard-hit tourism industry recorded a decrease in value added of 40.4 percent.

To counter this, the government has passed an aid package worth CHF 70 billion. The measures it has introduced, which include short-time work compensation schemes, hardship assistance, and Covid-19 loans, have helped ensure that workers and companies have not been too gravely affected. Further, they seem to have been able to avert a long-term economic crisis, as the gross domestic product is expected to grow between 2.7 and 4 per cent in 2021.

How do you asses the relations between Switzerland and Croatia?

— The Bilateral relations between Switzerland and Croatia are very good. This is apparent in the economic sector, in politics and of course in tourism. In the last two years, we have had two presidential visits and numerous political consultations. Around 50 Swiss companies are successfully active in Croatia and generate several thousand jobs.

An important element of our relations is the Swiss enlargement contribution to Croatia (www. swiss-cro.hr), under which Switzerland supports many projects in the youngest EU member. These range from water and wastewater infrastructure projects to projects

in the area of research, civil society, demining, and small and medium enterprises.

The approximately 30’000 Croatians who live in Switzerland and the large number of Swiss tourists who spend their holidays in Croatia also play a central role. They contribute significantly to a mutual understanding and thus to excellent people-to-people relations.

mitted to the stability and prosperity of Europe.

What do you consider to be the biggest challenges for European security and what is Switzerland's role? How do you approach new/old challenges (migrants, climate change...)

— As this past summer has shown, Climate Change is undoubtedly one of the most im-

presented by migration, and the challenges produced by irregular migration.

You have been in Croatia long enough. What would you single out as something you liked the most (from the region, gastronomy, customs…) and what would you recommend to your compatriots when they come to Croatia?

Photo: Henrique Ferreira / Unsplash

fitness centers. These measures were needed because the capacities in hospitals, especially intensive care units, began decreasing drastically after the summer break.

Switzerland intends to continue pursuing the normalization of social and economic life as far as the epidemiological situation allows. The main focus for the coming autumn and winter is therefore the vaccination strategy, and ways to motivate people to get the jab. The surveillance of new variants as well as the expansion of testing capacities are also important focal points.

WE ARE IN THE HEART OF EUROPE AND 18% OF OUR POPULATION ARE EU CITIZENS. SWITZERLAND IS STRONGLY COMMITTED TO THE STABILITY AND PROSPERITY OF EUROPE You mentioned the EU. Switzerland is not part of the European Union. How close are your relations to the EU? — The European Union is Switzerland’s most important partner, on all levels. Our daily trade with the EU amounts to one billion euros. We are in the heart of Europe and 18% of our population are EU citizens. These are only a few examples of how close the links are.

Despite these strong links, Switzerland has decided that it is not an option for us to join the EU. Nevertheless, we are a European country and share the same values with regards to peace and security, human rights, climate change, the fight against poverty and many other areas. As a dedicated partner, Switzerland is strongly com-

portant challenges facing Europe and the world in general. Switzerland is continuously striving to ensure the preservation and longterm safeguarding of our livelihoods, both in its domestic and foreign policy. This is why we are fully committed to the Sustainable Development Goals and the Paris Agreement, and why we continuously aim to work with our international partners, like the European Union, towards the implementation of sustainable practices.

Another important concern is, of course, migration. As a Schengen associated state, Switzerland is dedicated to cooperating with its European partners in order to pursue a migration policy that addresses both the opportunities

— What strikes me most about Croatia is how diverse the country is. I'm still discovering all the facets that Croatia has to offer, and I look forward to more opportunities to do so. This diversity can be seen in the people, the landscapes, the economy, the culture, food and much more, depending on what part of Croatia you are in.

Croatians in general are very polite, friendly, and helpful people. If you have trouble finding anything when travelling, for example, they are always very, very happy to help.

When people ask me which place in Croatia they should visit, I always find it very difficult to choose. All regions offer something unique and wonderful, but I do have to say that waking up early in the morning on a small island in Dalmatia and swimming in the sea, eating truffle pasta for lunch in Istria and enjoying the evening in a bar in Zagreb all sound very appealing. And being a vegetarian, I would also recommend to travelers that they taste fresh fish with blitva and have kremšnita for dessert.

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INTERVIEW

Switzerland Ranks 13th Among Foreign Investors in Croatia According to the data of the Croatian National Bank a total amount of EUR 509 million and a share of 1.5% of FDI since 1993

BOJAN POLJIČAK President of Swiss Croatian Business Association

umber of realized investments has grown, both greenfield and by acquisition types, says Bojan Poljičak President of Swiss Croatian Business Association. Croatia seems to be recognized as location for more complex, smaller and medium investments. Availability of potential employees, cost comparison, parts of infrastructure and standards seems to underline this, says Poljičak.

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You came to the helm of the Swiss Croatian Business Association during the COVID 19 pandemic, when the entire world

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seems to have stopped, and now we are waiting on recovery. How do you estimate the global economy will recover in the coming period, and is 2022 the year

ed while on the other side IT and life sciences industries have experienced growing business activities throughout most of pandemic. Also manufacturing and

SWISS INVESTORS GENERALLY APPRECIATE AND RESPECT CLEAR AND STABLE RULES AND CONDITIONS when we can expect to return to pre-pandemic times?

— I think economic and business impact COVID 19 has to be looked on sector and industry level. Clearly tourism, hospitality and events industries for example have been heavily impact-

logistics are facing different challenges with components shortage and longer delivery times.

Therefore, recovery has to be looked and planed in the same segmented view. There are still number of factors that are hard to know and plan however general-

ly it seems economies are registering growth of business activities and increasing employment trends. It is too early to give any firmer assessments of year 2022 – but in more optimistic scenario broader and more stable economic growth can be achieved.

You have been in the economy sector for a long time, so how do you see the investment climate in Croatia from this position?

— In comparison with other Central and Eastern Europe countries over the last two decades Croatia attracted less international investments. This is especially the case for manufacturing and services investments that are parts of international value chains and are predominantly target-

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The Swiss Croatian Business Association (SCBA) was established in 2005. What can you single out as the main goals of your action, what has been done so far, and what are your plans for the future?

— SCBA is focused business association with the main goal of being networking platform for Swiss and Switzerland related companies in Croatia. Also we support development of economic relations and companies business cooperation between Croatia and

Switzerland.

With the newly elected Board we will continue to work on having growing and active members base, support investment and business opportunities from both sides and try to promote Swiss business practices that are placing that country continuously on the top of global lists for competitive business environment and innovative economy.

share of 1.5% of FDI since 1993.

Swiss investments in Croatia are broadly diversified, with a partial focus on the manufacturing sector, and unlike some better-positioned investor countries do not have single large flagship investments. These investments are also well assimilated and often have local management in Croatia. Since EU accession, there has been an increase in investment

IN COMPARISON WITH OTHER CENTRAL AND EASTERN EUROPE COUNTRIES OVER THE LAST TWO DECADES CROATIA ATTRACTED LESS INTERNATIONAL INVESTMENTS From the declaration of independence of Croatia until today, how much has Switzerland invested in the country, and in which sectors did it invest the most?

— According to the data of the Croatian National Bank, Switzerland ranks 13th among foreign investors in Croatia with a total amount of EUR 509 million and a

dynamics despite negative official statistics. For example, various new investments have been made

by Swiss-based companies in the energy, electronics, metal industry, aluminum packaging, ITC services and commercial real estate sectors.

Where do you see room for progress, and what are the most

common issues and how to resolve them?

— Swiss investors generally appreciate and respect clear and stable rules and conditions. Croatia has achieved progress in many areas recently, but further improvement is needed especially in areas involving issuing of different permits as well as decreasing unnecessary procedures.

How understanding the decision-makers are when it comes to the needs of investors and how much do they listen to their needs?

— Improvements have happened in understanding of the investors needs and some improvements have been already done to make Croatian economy more competitive, for ex. with Tax reform and introduction of some electronic Government processes. There is still number of things that can and should be improved – as already mentioned transparency and predictability of business regulations – to utilize the opportunities Croatia has as potential investment location in European union.

Photo: Zan / Unsplash

ed to exports on European and global markets. At the same time since joining the EU there has been clear increase in interest of potential investors followed by some steps done on Croatian side to improve business and investment climate. Number of realized investments has grown, both greenfield and by acquisition types. Croatia seems to be recognized as location for more complex, smaller and medium investments. Availability of potential employees, cost comparison, parts of infrastructure and standards seems to underline this.

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CORPORATE

25 Years With Vetropack With the arrival of Vetropack, we started full of significant investment in technology, infrastructure and in our most important asset – the people — With the arrival of Vetropack, we started full of significant investment in technology, infrastructure and in our most important asset – the people. Over the past 25 years, more than HRK 2 billion was invested in this plant.

Along with modernization of the facility, the next step was to adopt Vetropack’s corporate culture, its way of thinking. Everyone at the plant was aware of the importance to embrace changes, and this was very much reflected in the plant’s progress. Today, we are one of the most important pillars of the Group and a highly organized and successful company within the Croatian economy and beyond.

I believe that our greatest as-

set is precisely the combination of our heartiness and glass manufacturing tradition and the Swiss rational and result-oriented business model.

What are the company’s plans in the future and what will you pay more attention to in development?

— Last year, the Vetropack Group launched the Strategy 2030, providing us as a Group and as an individual factory, with a framework for future development. The emphasis of the Strategy is on the strengthening of the existing market position, but we will also focus on expanding into new markets, stronger encouragement of inno-

OUR ULTIMATE GOAL IS TO ACHIEVE OPERATIONAL EXCELLENCE AND STRUCTURAL COMPLIANCE OF ALL PROCESSES, ESPECIALLY SALES PROCESSES AND TECHNOLOGY/ MANUFACTURING TIHOMIR PREMUŽAK President of the Management Board and General Manager of Vetropack Straža

ver the past 25 years, more than HRK 2 billion was invested in this plant.

Today, we are one of the most important pillars of the Group and a highly organized and successful company within the Croatian economy and beyond, for Diplomacy&Commerce says Tihomir Premužak President of the Management Board and General Manager of Vetropack Straža.

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At the beginning of September, the only Croatian glass packaging manufacturer Vetropack Straža marked 25 years of joining the Swiss Vetropack Group.

What that milestone meant for the factory, but also for the Group?

— To answer this question, it’s important to place this integration in the context of time. In the mid-1990s, we operated almost

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exclusively in the former Yugoslav market, which disintegrated overnight. In order to survive, we had to look for our place in export (European) markets, at the same time aware of the need to improve the quality of our finished products. Therefore, we had to turn the business "overnight" towards of modernization of the plant, all business processes and finally, the management of the company. For that we needed a strong strategic partner and we found one in Vetropack. We had the knowledge, passion and tradition of glass packaging production, and Vetropack has brought the international know-how, corporate governance, and financial stability. On the other hand, with this acquisition, Vetropack has expanded its business to the growing markets of Southeastern Europe and has established itself firmly there.

How do you see the company today, and what would you single out as your greatest asset?

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vation and creation of new business models, nurturing a holistic approach to business sustainability with emphasis on continuous reducing of carbon footprint in all our activities and engagement in the value chain with the objective to improve recycling and provision of basic sources of raw materials (primarily used glass). Our ultimate goal is to achieve operational excellence and structural compliance of all processes, especially sales processes and technology/ manufacturing.

As a businessman, how do you rate the business climate in Croatia and what is missing to make it even better?

— When you ask the Government and the businessmen the same question, you get diametrically opposed answers. I believe that the truth lies somewhere in the middle. So, the business climate is far from ideal, but it’s also far from catastrophic. Sadly, we have been running in circles for several decades already, constantly talking about the need for structural changes in the society and the economy. However, such an important and powerful step forward requires a strong political will that no state administration has had so far, or has not had enough

GOVERNMENT DOES NOT APPRECIATE BUSINESS PEOPLE (OR TALK TO THEM) ENOUGH, WHICH, UNFORTUNATELY, IS BEST SEEN THROUGH THE RECENT ADOPTION OF THE NATIONAL RECOVERY AND RESILIENCE PLAN (NPOO) of it. When and if that happens, the climate will change drastically, and the society and the economy will (finally) move in the right direction.

Everything else is just technique – various models of approaches to solving specific economic and social issues and challenges.

How satisfied are you with cooperation with the decision makers, the Government, how much they hear the needs of the businessmen and how willing are they to meet your needs?

— This cooperation could be far better than it currently is. I understand the Government: they have to balance between the ideas and desires of the economy and directives from the European Commission. Anyone who thinks that this is simple and that the Government can do whatever it likes is living in delusion and/or ignorance. How-

ever, the fact remains that the Government does not appreciate business people (or talk to them) enough, which, unfortunately, is best seen through the recent adoption of the National Recovery and Resilience Plan (NPOO).

How necessary is regional cooperation for entrance into third markets and what is changing in the needs of your customers when it comes to new technologies?

— In peaceful times and when the market is stable, you tend notice less the importance of belonging to a group like Vetropack. However, in times of crisis, this can be crucial to the viability of a business. This gives you the security of product placement through already established (group) markets, i.e. a stronger negotiating position when contracting strategic energy sources, raw materials and investment equipment.

As for technology development, as well as the ever higher quality standards and sustainability requirements, which are all in fact interrelated, we must follow them because of customer requirements, but also because of ourselves and our competitiveness. We try to react quickly and adapt to this. I expect even more significant changes in the habits of customers, i.e. end consumers, after we completely get out of the corona crisis or after the corona virus becomes accepted similarly to the flu or other diseases.

You mentioned the nurturing of a holistic approach as one of the determinants of the Strategy 2030. How is it integrated into your business?

— A sustainable approach is not new to us. It has been integrated into our business operations and our strategy since we first joined the Vetropack Group.

It has now been updated as part of the new Strategy 2030. We analyse the impact of our business on all stakeholders and always strive to maintain that balance between profitability on the one hand (owner, customers and suppliers) and social responsibility, environmental awareness and concern for employees on the other.

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Benefits from the Introduction of Euro Significantly Outweigh the Costs and Risks In Croatia, as elsewhere in the EU, housing lending is the most dynamic, and the economy - the construction sector and their suppliers - also benefit from this ZDENKO ADROVIĆ Director, Croatian Banking Association

he state and the regulator will assess the manner in which overdrafts on transaction accounts will be regulated.

We certainly support HNB’s intention to additionally protect the consumers, and we believe that the amendments will ensure that regulations and the legislation are harmonized with other European countries, says Zdenko Adrović, Director of Croatian Banking Association. He also added that HUB will continue with its constructive cooperation in the coming period, and propose solutions based on expert analyses and the best international practice for various social and economic issues.

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How much capital does the Croatian banking system have at its disposal and whether and to what extent has the COVID 19 crisis affected the pre-crisis figures?

credit institutions amounted to HRK 61.4 billion, which can be compared with HRK 55.8 billion on the same date in 2019. Therefore, despite the decrease in income and profit during the COVID

OUR END GOAL IS TO SUPPORT SOLUTIONS THAT ENSURE ECONOMIC GROWTH, INNOVATION AND EXCELLENCE IN ORDER FOR CROATIA TO BE ABLE TO CONTINUE ITS ECONOMIC DEVELOPMENT — The capital ratio is the most important indicator of banks' capital strength: it has crossed the 25% threshold and is among the largest in the world. According to CNB’s data for June 30 this year, the total regulatory capital of all

-19 crisis, the banks strengthened their capital due to responsible business policy. Earnings from previous periods were retained, in part due to restrictive regulations ordering banks not to pay profits in the pandemic.

What is the percentage of support to citizens in bank financing, and how much to the economy? How do you rate the current loan market and capital market?

— The loan structure is more favorable to citizens who participate in the private sector loan portfolio with about 61%. Total loans to citizens on a gross basis amount to HRK 140 billion, where two components – housing loans and non-purpose cash loans – make up the largest part of this amount.

The share of overdrafts, car loans, credit cards and similar types of loans is below 15%. Recently, we have noticed an increase in the share of housing loans, which is the only sector that is growing significantly. Thus, their share in the total gross loan portfolio of the

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Photo: Ibrahim Boran / Unsplash

population increased from 43% before the pandemic to the current 46%, and I estimate that this share will continue to grow because housing loans are growing at rates of about 10% per year.

In the corporate segment, we saw a large increase in demand for liquidity loans at the beginning of the pandemic, and we successfully and qualitatively met this demand. We now expect an increase in demand for longer-term investment loans, but private corporate investment is still recovering somewhat more slowly from the crisis, so the rise of this type of loan is not yet visible in the data. It is extremely important to develop the capital market in parallel, because instruments for attracting equity capital are placed on that market, and this capital by the nature of things takes a much higher risk than the risks that banks are allowed to take. After all, the banks’ job is to preserve the security of savings. Therefore, we have been calling for the establishment of a strong equity market development program for years, because banks can then supplement the financial resources for the growth and development of propulsive companies with an acceptable level of risk.

We can often hear that banks have high liquidity and surplus of funds, but have nowhere to invest that money in the economy due to bad projects. Is there anything changing in that aspect and in what way?

— In general, we are still in some state of stagnation. Housing lending is the most dynamic, like everywhere else in the EU, and let’s not forget that the economy - the construction sector and their suppliers - also benefit from this. However, quality demand is still lacking in other sectors, especially demand for investment loans. I believe that EU funds and the establishment of new companies in new industries such as IT will soon lead to an increase in demand for loans from these segments, and thanks to the aforementioned high level of capitalization and liquidity, the banks have ready answers to this demand.

To what extent will the announced introduction of the euro from 2023 have an impact on banks, it seems that banks are left without certain funds – which are not insignificant -

would be if we had our own currency, so all this will have a stimulating effect on investments and growth, and thus indirectly on the operations of banks. Therefore, after weighing short-term costs and long-term benefits, our position was unison – in favor of the euro. The very fact that our leading banks are part of pan-European banking groups played a less important role in this.

THE TOTAL REGULATORY CAPITAL OF ALL CREDIT INSTITUTIONS AMOUNTED TO HRK 61.4 BILLION, WHICH CAN BE COMPARED WITH HRK 55.8 BILLION ON THE SAME DATE IN 2019 based on exchange rate differences and conversion. What are your estimates?

— We have been studying the impact of the introduction of euro for years already, and this data can be found in the published series of HUB Analysis on our webpage.

Banks are guided by expert findings in their views, and they are quite unequivocal: the benefits of the introduction of euro significantly outweigh the costs and risks. I must emphasize that this calculation is even less favorable to banks than to citizens and companies. Namely, you are right, banks will be directly affected by the introduction of the euro in the short term. Not only because of the increased operating costs of adjusting IT systems and cash distribution, but primarily because of the loss of part of the revenue from currency conversion.

We estimate that banks will be left without approximately one hundred million euros of annual in-

come on that basis, which is a significant part of the profit of their business. Nevertheless, the position of the banks is that we should not oppose the introduction of euro because of that. On the contrary, this reduction in conversion costs will spill over into increased spending and creditworthiness for our customers. More importantly, we see the euro as an additional great opportunity to grow and reduce risk: currency risk will disappear, a currency clause that has tormented banks and clients equally throughout the history in most credit agreements will become unnecessary, Croatian government bonds will become acceptable collateral with the European Central Bank, the possibilities of financing both the state and banks in the European financial market will expand, I believe that the risk premium on our securities will decrease as well, so some future pressures on interest rate growth will be less than they

In which direction is the agreement on solving the problem related to the tacit deficit of citizens going? What options are on the table and when do you expect a solution to this problem?

— The state and the regulator will assess the manner in which overdrafts on transaction accounts will be regulated. We certainly support HNB’s intention to additionally protect the consumers, and we believe that the amendments will ensure that regulations and the legislation are harmonized with other European countries. It is important that citizens still have the opportunity to use the product, because according to current data, there are a large number of customers who regularly use overdrafts. We believe that the solution to this situation will be found in limiting the nominal interest rate instead of the effective one or in a different model of calculating the effective interest rate.

In addition to everyday topics, what would you single out as HUB’s plans in the coming period (online security, EUROPOL campaign #Ne BuduMula ….)?

— In the coming period, HUB will continue with its constructive cooperation, and propose solutions based on expert analyses and the best international practice for various social and economic issues. Our end goal is to support solutions that ensure economic growth, innovation and excellence in order for Croatia to be able to continue its economic development. Also, we strive to promote corporate social responsibility and provide citizens of all ages with knowledge about finance in an interesting and accessible way, and thus improve the level of financial literacy in Croatia. Every year we also conduct campaigns related to the safe use of the Internet because we are witnessing a period of digitalization in which it is important to learn how to behave safely and responsibly on the Internet.

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INTERVIEW

Zagreb Stock Exchange is a Regional Leader Over the past several years, we significantly expanded our activities, we increased revenue, we have positive business results and intend to continue the same in the future IVANA GAŽIĆ

es have really switched the online work and communication to a "higher speed" overnight. After the initial adjustment, we quickly adopted new systems of work and communication. The technology has its drawbacks because almost nothing can replace live contact, and the use of technology for work and communication during the pandemic was really extreme, unnatural. However, a number of solutions and new work practices will likely remain after the pandemic. It is crucial to take the best from the "online" world and successfully combine it with "offline" work and communication.

President of the Management Board, Zagreb Stock Exchange

vana Gažić, President of the Management Board of Zagreb Stock Exchange announced for Diplomacy&Commerce that the Stock Exchange will continue to strengthen its operations to make the services of the capital market more available, more economical and more efficient. The goal is to maintain a leading position in the region in the years to come.

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The COVID 19 pandemic is still here, but it seems that we are slowly going back to our old ways. What is "old" normal for the Zagreb Stock Exchange, and what is "new" normal, if there is anything new for you here?

— No one could have imagined that such an incredible sequence of events would happen in the last year and a half. Of all that could have happened, a global pandemic of unprecedented proportions was among the least imaginable options, but today it is the reality in which the world lives. New modalities of business and everyday life in general have been established, and the memory of life and business “before the pandemic” sometimes seems incredibly pale and distant. The earthquakes that hit Croatia seemed even more incredible. However, the domestic capital market has proven to be strong and resilient enough not only to survive but also to thrive through new stock issues, new investment products, service improvements and many other steps that may not always be in the forefront but still contribute significantly to market quality and efficiency and the better service for all its participants. Despite the apocalyptic circumstances, the Zagreb Stock Exchange maintained business and trading continuity and continued to provide a high level of business quality to meet the needs of shareholders,

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IN THE LAST FEW YEARS, SOME OF THE MOST IMPORTANT MOMENTS WERE THE TAKEOVER OF THE LJUBLJANA STOCK EXCHANGE IN 2015 investors, issuers, members and all other stakeholders for an efficient, transparent and economical market of financial instruments.

We adapted very quickly without major difficulties, and showed that even in these challenging circumstances we can work as efficiently as possible, thanks to the efforts of the Zagreb Stock Exchange team and all market participants, members, issuers and investors, as well as infrastructure organizations and capital market regulators.

Digital communication has taken precedence in business. To what extent does online communication improve work productivity?

— Although we have used the advantages of technology to some extent in the past to communicate effectively and economically with colleagues outside Croatia, where we primarily refer to colleagues from the Ljubljana Stock Exchange, of which we are 100% owner, and other regional exchanges, these circumstanc-

What would you single out as the most important achievement and success of the Zagreb Stock Exchange and what are your business priorities?

— Since its establishment 30 years ago, the Zagreb Stock Exchange has been leading the regional capital market in all aspects: innovations, products, services, consolidations, etc.

In the last few years, some of the most important moments were the takeover of the Ljubljana Stock Exchange in 2015, because with this step we became a regionally relevant group. We transfer everything we can to the Ljubljana Stock Exchange, and vice versa, we exchange those services where each of us has a certain expertise, which is another mechanism for maximizing the positive effects on business within the group. The second important step was the listing of shares of the Zagreb Stock Exchange on the Zagreb Stock Exchange itself, i.e. on the regulated market, as the stock exchange is "officially" called. The Zagreb Stock Exchange was and still is the only stock exchange in Central and Southeast Europe whose shares are listed on a regulated market, which sets new standards of transparency and corporate governance criteria and further strengthens the position of leader in capital market opera-

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that would create a favourable investment environment – rather than in deposits and real estate, which is now the case. Foreign investors see this area as one region and that is why we try to raise our visibility through a series of joint activities with stock exchanges from the area. We organize numerous events with the aim of connecting companies and investors, and before Covid we held the first roadshow of Croatian

If we talk about some deficiencies in the work of the Zagreb Stock Exchange, in relation to some similar or larger SEs in Europe and the world, which deficiencies would you mention and how to overcome them?

— The problem is in the economic environment and the incentives that we lack. Croatia is among the first to enter the crises, and among the last to emerge from them. Incentives should certainly include the abolition of capital gains tax and the introduction of personal investment accounts

and Slovenian companies in New York. There are quality investment stories, but it would certainly help to have more, especially in terms of diversity. For example, after Pliva Company left the stock exchange, the Croatian capital market did not have a single pharmaceutical company, which is typically a defensive stock. This was especially evident in Slovenia, where Krka is the most liquid stock with the best results in times of crisis.

New and attractive issues would certainly additionally boost

investments because the funds are there, we just need to mobilize them in favour of investors and companies. Further privatization of companies from the state portfolio, which was announced several times, would without a doubt serve as a significant boost to the market, but also to the return of transparency, efficiency and trust in state-owned companies. It is important to say that in terms of new issues from the corPhoto: Tima Miroshnichenko / Pexels

tions and services in the wider region by following the example of developed markets, where such practices are common.

The listed companies are continuously under public scrutiny and that is why they are constantly trying to improve and do more than possible, and that is our goal.

With our listing, we set an example of how a small company with only 24 employees and relatively small capital can function as a listed company and we believe we provide a quality example of transparency, communication with investors and meeting all capital market requirements.

Over the past several years, we significantly expanded our activities, we increased revenue, we have positive business results and intend to continue the same in the future. In addition, we want to be a place for raising capital for companies at all stages of development: for startups we have Funderbeam SEE, a company we coown with partners from Estonia and through which we have already done a number of successful campaigns that gave young companies access to capital for growth, and the Progress market is aimed at small and medium-sized enterprises and is one of the first EU-registered markets of its kind. These are all steps that lead to a regulated market, with which we have created a system that aims to keep companies in Croatia and contribute to their development, and thus the economy as a whole. With this concept, we provide a unique example in the region and beyond.

We can say that, in a way, we are the most complex stock exchange in the region today in terms of the activities we perform, compared to stock exchanges far larger than ours, such as the stock exchanges in Vienna and Budapest.

WE ALSO HAVE A COMPANY IN SKOPJE WITH THE BULGARIAN AND MACEDONIAN STOCK EXCHANGES, A NUMBER OF COOPERATION AGREEMENTS HAVE BEEN SIGNED porate sector we see progress, of which we would like to point out the inclusion of Span, with which we will have a real technological share in perhaps the most attractive sector at the moment.

Connecting stock exchanges is a common practice in the world and in our country as well as it seems. You have been appointed a member of the Board of Directors of the Macedonian Stock Exchange. How do you see the Macedonian Stock Exchange and what is your management goal

in Macedonia, and of course in Croatia?

— In addition to being the owners of the Ljubljana Stock Exchange for six years, we also have a smaller share in the Macedonian Stock Exchange. We also have a company in Skopje with the Bulgarian and Macedonian stock exchanges, a number of cooperation agreements have been signed, and they are being implemented in various fields, such as education, joint events and the like. Companies are looking for easier access to capital, and investors for easier investment, where all this together must be efficient and economical, and our efforts are focused on achieving these goals.

Investments, the capital market - this is what stock exchanges do, among other things.

Where is there room for progress in Croatia in terms of connecting and doing business with stakeholders?

— The financial system is just what its name suggests - a system. No entity in it can exist independently of all others. That is why joint action is needed so that all the components of this system can function as best they can for the benefit of the entire economy. The capital market and the stock exchange function like any developed European market and in this sense there is an asymmetry in relation to the parts of the system that still have room for improvement.

More initiatives are needed, creating a better investment climate, removing bureaucratic and tax barriers, removing corrupt practices, strengthening the judiciary and the like. There is enough capital, as well as good investment stories, and many of them are "told" on the Zagreb Stock Exchange.

How do you see the Zagreb Stock Exchange in the future?

— We will continue to strengthen our operations to make the services of the capital market more available, more economical and more efficient. The role of the Stock Exchange is to be a place for strengthening companies’ transparency, a place for collecting capital for further growth and development of companies, and a place to create offer and demand with regular and effective trade with financial documents. We have been regional leaders for 30 years and we believe that we will only strengthen our position in the years to come.

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ARRIVALS & DEPARTURES

NATIONAL DAYS SEPTEMBER

H.E. OSAMAH DAKHEL R. ALAHMADI New Ambassador of the Kingdom of Saudi Arabia in the Republic of Croatia

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President of the Republic of Croatia Zoran Milanović received credentials from the Ambassador of the Kingdom of Saudi Arabia.

H.E. Osamah Dakhel R. Alahmadi, Ambassador of the Kingdom of Saudi Arabia in the Republic of Croatia with residence in Sarajevo, presented the credentials to the President of the Republic of Croatia Zoran Milanović.

CHILE

MEXICO

Grito de Dolores

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The First Junta Day

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CZECHIA

St. Wenceslas Day OCTOBER

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CHINA

H.E. CRISTIÁN EDGARDO STREETER NEBEL New Ambassador of the Republic of Chile in the Republic of Croatia President of the Republic of Croatia Zoran Milanović received credentials from the Ambassador of the Republic of Chile. H.E. Cristián Edgardo Streeter Nebel, Ambassador of the Republic of Chile in the Republic of Croatia with residence in Zagreb, presented the credentials to the President of the Republic of Croatia Zoran Milanović.

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National Day

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CYPRUS

Independence Day

02

INDIA ahatma Gandhi’s M Birthday

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GERMANY

German Unity Day

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CORPORATE

Telemach Croatia Is Building The Fastest 10 Giga Optical Network In Europe A strong investment cycle of Telemach and United Group, of over one billion and seven hundred million kuna, aimed at modernizing the mobile network and building a state-of-the-art optical network y building the fastest optical network in Europe Telemach will place Croatia high on the European digital map and ensure the highest level of service quality for its customers. Zagreb will become the first 10 Giga city in the region.

Already today, thanks to the existing infrastructure, Telemach can support internet speeds of up to 10 Giga in twelve thousand households in Zagreb, and by the end of next year in the entire area of the City of Zagreb. In the next year, about 170,000 Croatian households will be covered by a 10 Giga optical network. The internet speeds that Telemach currently provides to its customers are as much as twenty times higher than the average internet speed in Croatia.

“Telemach came to Croatia to become a leader. We are an operator that fulfills its promises and we can proudly say that the 10 Giga optical network we are building will be convincingly the fastest in Europe, comparable in speed and quality only to the existing network in South Korea which is a world record when it comes to internet speeds. Thanks to our investments in infrastructure, Zagreb will thus become the first 10 Giga city in the region, and the fastest optical network will soon be available to the whole of Croatia, “said Adrian Ježina, President of the Management Board of Telemach Croatia and Slovenia.

After integration into the Group and change of name, with the introduction of new mobile packages and the launch of an investment cycle of HRK 1.7 billion in the modernization of the mobile and construction of the optical network, Telemach is today the fastest growing operator in Croatia. Business growth is accompanied by a significant increase in the number of employees of as much as 59 percent in the last year and a half.

Simultaneously with the construction of the fastest fixed network, Telemach is working inten-

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Adrian Ježina, President of the Management Board of Telemach Croatia and Slovenia

TELEMACH HAS ENRICHED ITS OFFER BY BRINGING TO CROATIA THE LEADING OTT PLATFORM IN SOUTHEAST EUROPE EON AND ONE OF THE WORLD’S LEADING MUSIC SERVICES TIDAL sively on upgrading the existing 4G mobile network and introducing a 5G network so that all Telemach Croatia users will have the same level of mobile service in the next year. Thus, after the purchase of the frequen-

cy spectrum for almost HRK 110 million, Telemach successfully put into operation the first 5G base stations in Zagreb and Osijek, and the speeds measured on Telemach’s new 5G network reach up to 1.8 Gbps. Upon completion

of the upgrade, the entire mobile network will be significantly improved, in line with the highest world standards.

“In less than a year, the 5G signal will be available throughout Croatia. Until the beginning of Advent, we will first cover the whole of Zagreb with a 5G network, followed by other larger cities. Already during the autumn, the residents of Novi Zagreb will be able to boast of the fastest internet speeds in Croatia, because the entire part of the city will be covered by a 5G mobile and 10 Giga optical network at the same time, “said Adrian Ježina.

Telemach in Croatia is currently building an intensive network modeled on Vivacom from Bulgaria and Telemach Slovenia, a member of the United Group with the fastest mobile network in its markets.

Ježina, who achieved an impressive career in Croatian telecommunications industry, has also brought Telemach Slovenia to the level of the fastest growing mobile operator on the market in just a few years, as well as etablished best user experience and best network. Telemach Slovenia managed to position itself as the market leader from the third place thanks to a clear vision, introduction of new technologies and experienced Ježina.

Since March 2020, when it became part of the United Group, the leading provider of telecommunications and media services in Southeast Europe, Telemach Croatia has undergone an intensive business transformation with a clear focus on delivering the best products and user experience.

With the already announced investments in the mobile network of an additional almost one billion kuna, which plans to significantly improve the coverage and capacity of the existing network, Telemach is currently upgrading the existing network based on the migration of technical systems as part of the separation process from Tele2 Swedan.

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CULTURE

by Žikica Milošević

What to Read and Watch About Afghanistan?

Everybody wants to know what kind of country it is fter the fall of Kabul and the return of the Taliban to power, everyone is suddenly wondering "what kind of country is this?" and "how did this come about?" Here are a few suggestions of what you could look at or read to understand this complex country that has never become a nation in the true sense of the word.

do boy from the Wazir Akbar Khan district of Kabul who is tormented by the guilt of abandoning his friend Hassan. The story is set against a backdrop of tumultuous events, from the fall of the monarchy in Afghanistan through the Soviet military intervention, the mass exodus of Afghan refugees to Pakistan and the United States, and the Taliban regime.

THE MAN WHO WOULD BE KING - BY RUDYARD KIPLING (1888) AND THE EPONYMOUS FILM (1975) Maybe the greatest read about Afghanistan during the Great Game, and certainly the best film to see about the country. It tells us the story of the bygone times, when there were groups of non-believers, so-called Kafiristan, living in Afghanistan. The two scoundrels from the British Army, perfectly portrayed by Michael Cane and Sean Connery, roam deeply into Afghanistan. First, they try to teach locals how to fight, eventually turning themselves into demigods and incarnation of Alexander the Great. Funny and tragic at the same time, depicting the fickle and volatile mentality of the local tribes and their spiteful customs and endless clashes.

A THOUSAND SPLENDID SUNS - BY KHALED HOSSEINI (2007) “A Thousand Splendid Suns” is a multi-generational story that unfolds over 45 years but revolves around the lives of two women, Mariam and Laila, who are married to the same abusive man.

Mariam, an illegitimate teenager from Herat, is forced to marry a shoemaker from Kabul after a family tragedy. Laila, born a generation later, lives a relatively privileged life, but her life intersects with Mariam's when a similar tragedy forces her to accept a marriage proposal from Mariam's husband. A painful “sequel” to its successful predecessor.

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GRUPPA KROVI (BLOOD TYPE) - BY KINO (1988) What is Kurt Cobain for American music and Milan Mladenović for Yugoslav music, Viktor Tsoi is for Soviet music. The too-early-departed musical hero was the symbol of Perestroika in music and embodied all of the fears and hopes of the Soviet and post-Soviet youth. The epic song called Gruppa Krovi exists in both versions, Russian and English, under the title Blood Type, and it tells us the story of a Soviet soldier in Afghanistan, who prays not to die in this faraway country. The song is also a discreet homage to Lermontov and an excellent postnew wave and darkwave song.

KITE RUNNER - BY KHALED HOSSEINI (2003) AND THE

NOW IS THE BEST TIME TO INDULGE IN AFGHAN-THEMED BOOKS AND FILMS EPONYMOUS FILM (2007) Placed in Kabul, the magnificent story by a local writer, born and bred in Afghanistan, who witnessed all the changes in this shaky country, it is a romantic and cruel story of nostalgia and terror. A boy from Kabul begins his

life in the Kingdom of Afghanistan and the Hippie Trail flourishes, the foreigners smoke weed and climb the Hindu Kush mountains, while Radio Kabul plays Woodstock hits. It all changes suddenly and the change is endless there.

It tells the story of Amir, a well-to-

THE GREAT GAME - BY PETER HOPKIRK (1990) In this work, the author relates the story of a time best described

by Captain Arthur Connolly, of the East India Company before he was beheaded in Bokhara for spying in 1842, as "The Great Game".

The Great Game was played between the Russian Empire and British Empire for supremacy in Central Asia. At stake was the preservation of India, key to the wealth of the British Empire.

When play began early in the 19th century, the frontiers of the two imperial powers lay two thousand miles apart, across vast deserts and almost impassable mountain ranges; by the end, only 20 miles separated the two rivals. It is interesting that the progressive Socialist president Najibullah, who was aligned with the Soviets, was actually translating the book from English to Pashto when he was killed by the Taliban.

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CORPORATE

Alternative Dispute Resolution for Consumers (ADR) CLICK ON ICON 

WEBSITE

PETAR PETRIĆ Attorney at Law, Petrić & Kajić Law Firm LLC

WHAT IS ADR Alternative dispute resolution for consumers (ADR) is one of the out-of-court ways of resolving disputes between consumers and traders. It is an outof-court settlement of domestic and cross-border consumer disputes between traders based in the Republic of Croatia and consumers residing in the European Union, and the procedure is conducted before the Alternative Dispute Resolution (ADR) bodies, which are authorized to mediate or make non-binding or binding decision on the dispute. This allows the consumer to resolve his complaint from consumer contracts with a certain trader based in the Republic of Croatia or another EU member state, Norway, Iceland or Liechtenstein, with the help of one of the competent bodies for alternative dispute

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resolution. The above applies to a consumer dispute whether it is a purchase of goods in the business premises of the trader or online shopping. Proceedings before the alternative dispute resolution bodies are a simple, fast and financially acceptable procedure, both for consumers and traders, so all of the above is a great advantage compared to the judicial settlement of such disputes.

Mediation centers conduct proceedings on a voluntary basis in such a way that, with the help of expert mediators, the consumer and the trader can reach an amicable solution to their dispute.

Courts of honor resolve disputes between the consumer and the trader arising from violations of commercial and business customs in the performance of the trader's activities. Unlike volun-

EACH EU MEMBER STATE HAS NOTIFIED ADR BODIES THAT MEET CERTAIN CRITERIA FOR RESOLVING CONSUMER DISPUTES ADR BODIES Each EU Member State has notified ADR bodies that meet certain criteria for resolving consumer disputes. There are two types of such ADR bodies in the Republic of Croatia: 1) mediation centers and 2) courts of honor.

tary proceedings before the mediation centers, proceedings before courts of honor are binding on traders, and if a violation of good business practices by an individual trader is determined, the prescribed sanctions shall be imposed on him.

ON-LINE CONSUMER DISPUTE RESOLUTION In the event of consumer disputes arising from the purchase of products or services via the Internet with a trader based in one of the EU Member States, it is also possible to resolve them through an interactive website - Online Dispute Resolution Platform (ODR Platform).

Through the ODR Platform, which is available in all official EU languages, including Croatian, the consumer can resolve all consumer disputes, regardless of whether it is a cross-border or domestic dispute, of course only if the consumer contract is concluded online.

With the click of a mouse, the consumer can file his complaint against the retailer, and in case the retailer agrees, they can resolve the dispute through one of ADR bodies.

It is important to point out that the ODR Platform does not resolve consumer complaints, but serves to forward the consumer complaint to the appropriate ADR body, which then resolves such a complaint, in case the consumer and the trader agree.

The European Consumer Centers Network has been designated as the contact point of the Online Dispute Resolution Platform, and its function is to provide support for resolving disputes related to complaints submitted through the Platform.

WHAT IS MEDIATION IN ADR It is a voluntary and confidential procedure for assisted negotiation between the parties in a dispute, with the assistance of a third party – mediator, with the aim of reaching a settlement in the best interests of both parties.

MEDIATION PARTICIPANTS Participants in the mediation are the mediator, the parties and possibly their advisors (lawyers), and, if necessary, experts. Other persons of trust may join the parties in the mediation as support,

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and persons who have an interest in the dispute or have an influence on the parties in resolving it may also be involved.

WHO IS THE MEDIATOR A mediator is a person with special knowledge of the nature and structure of conflict, communication, negotiation and mediation skills, and knowledge of alternative dispute resolution. The parties may choose the mediator themselves.

HOW TO START THE MEDIATION PROCEDURE Mediation may be initiated by one party, with the acceptance of the other party, or it may be initiated by both parties by a joint proposal.

HOW DOES THE MEDIATION END The mediation usually ends with a settlement whose form and content are determined by the parties. The law gives settlement in mediation the significance of an enforceable document, which is equivalent in effect to a court settlement or a final court judgment.

WHICH LAW GOVERNS ADR Alternative settlement of domestic and cross-border disputes arising from sales contracts or service agreements between traders established in the Republic of Croatia and consumers residing in the European Union are regu-

lated by the provisions of the Alternative Dispute Resolution Act. The said Act transposed the Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) no.

2006/2004 and Directive 2009/22/ EC (Alternative Dispute Resolution Directive) (OJ L 165/63 of 18 June 2013), into the legal order of the Republic of Croatia.

efficient, fast and cost-effective dispute resolution, in order to achieve a high level of consumer protection and proper functioning of the internal market.

BASIC TERMS OF ALTERNATIVE DISPUTE RESOLUTION. „Consumer“ is any natural person who enters into a legal transaction or operates in the market outside their trade, business, craft

EUROPEAN CONSUMER CENTRES NETWORK PROVIDES CONSUMERS WITH INFORMATION ON ACCESS TO ADR BODIES OPERATING IN OTHER EU MEMBER STATES The law also regulates the implementation of Regulation (EU) no. 524/2013 of the European Parliament and of the Council of 21 May 2013 on the online dispute resolution for consumer disputes and amending Regulation (EC) no.

2006/2004 and Directive 2009/22/ EC (Regulation on the online settlement of consumer disputes) (OJ L 165/1 of 18 June 2013; hereinafter: Regulation (EU) No 524/2013).

The purpose of this Act is to enable consumers to voluntarily initiate dispute resolution proceedings against traders before alternative dispute resolution bodies, which ensure independent, impartial, transparent,

or professional activity.

"Trader" means any person who enters into a legal transaction or acts on the market in the course of their trade, business, craft or professional activity, including a person acting in the name or on behalf of a trader.

INFORMING CONSUMERS

BY TRADERS Traders with a registered office in the Republic of Croatia who undertake to or are obliged by the relevant regulations to resolve consumer disputes through the ADR body, are obliged to inform consumers about this fact.

The notice on the competent

ADR body or bodies shall contain the postal address and the address of the website.

These notices must be displayed in a way that is clear, understandable and easily accessible to the consumer, on the website and in the business premises of the trader, as well as in other ways provided by special regulations on consumer protection.

If the dispute cannot be resolved through a written complaint sent by the consumer to the trader, in their response to the written complaint the trader is obliged to give the consumer the above information with a written statement on the possibility of initiating proceedings before the mentioned ADR bodies and about whether they will engage in proceedings before any of them.

CONSUMER HELP The European Consumer Centres Network provides consumers with information on access to ADR bodies operating in other EU Member States, who are responsible for resolving cross-border disputes arising from a cross-border sales contract or service contract.

The European Consumer Centres Network and each individual ADR body publish a list of dispute resolution bodies on their websites by providing a link to the European Commission's web pages and, where possible, in paper or other durable medium on their premises.

Photo: Scott Graham / Unsplash

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CORPORATE

We do Not Expect a Drop in Property Prices Given the trends buying seems like a smart decision at the moment clients a moratorium on loans, thus avoiding pressure on the sale of real estate, and the scenario of 2008 was not repeated. The pandemic made people able to work from home, so the pressure on office space was reduced and there was a change in the market. There is less interest in renting office space, but the pressure on storage and logistics real estate has increased. A good part of the traffic has been transferred to the Internet, and this requires logistics centers, which are currently lacking on the market. Many buyers from abroad have realized that they can work from home and that it is better for them to sit in a house on the Adriatic coast than being closed off in an apartment in one of the EU cities. This has made our property even more attractive. The earthquake in Zagreb had an effect on the market.

REAL ESTATE FROM THE PREMIUM SEGMENT WILL CONTINUE TO ACHIEVE HIGH PRICES AND PRICE GROWTH IS POSSIBLE

BORO VUJOVIĆ Vice President of Real Estate Business Association at the Croatian Chamber of Commerce and General Manager of Opereta d.o.o. real estate agency

here is both loyal and unfair competition in the market. Due to the problems caused by the corona virus, a significant number of employees in the tourism sector moved to real estate, counting on quick earnings, says Boro Vujović, Vice

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President of the Real Estate Business Association at the Croatian Chamber of Commerce and General Manager of Operetta d.o.o. real estate agency, for Diplomacy & Commerce. It is better to pay professionals and sleep peacefully, than to have headaches later, Vujović emphasizes.

To what extent and did the COVID 19 pandemic actually affect the real estate market in Croatia?

— The pandemic affected the real estate market both in Croatia and

all over the world. When the pandemic began, prices were expected to fall and a scenario similar to 2008 was expected, but the opposite happened. States reacted differently, giving subsidies to preserve jobs and the economy. As a result, the system did not collapse, but the situation moved in a different direction. One of the reasons is that there was no “Swiss franc effect” that made the 2008 crisis “disastrous” for the real estate market. The reaction of banks was also different, giving

A good number of properties have disappeared from the market. It led to an increase in the prices of newer real estate, and made old real estate unattractive.

It seems that the prices have never been higher. At the same time, the offer of new build is increasing. How far do you think this can go and is any stagnation expected in this regard?

— It is difficult to predict exactly what will happen to prices. We do not expect prices to fall given all the current circumstances. We have low interest rates for housing loans, low interest rates on savings. Real estate from the premium segment will continue to achieve high prices and price

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Photo: Maria Orlova / Pexels

growth is possible. Considering the amount of building permits and the purchasing power of citizens, price stagnation is possible.

It is important to emphasize that in the current market prices of all real estate do not grow linearly.

New apartments in attractive locations have become more expensive than those in "non-attractive" ones. The difference between the situation from a few years ago and today is that everything can be sold. Until 5 years ago, an apartment in the Podsljeme district was difficult to sell, regardless of the price.

The coastline and Zagreb represent a significantly different market than the inland. What makes them stand out and what makes them different?

— The buyers in Zagreb are domestic customers from Croatia, Bosnia and Herzegovina and the diaspora. At the moment we have few foreigners on the capital city’s market. After the earthquake and Covid, the attractiveness of Zagreb as a tourist destination decreased, so this is even more pronounced.

The advantage of the coast is that it has buyers from all over Europe, and Dubrovnik has buyers coming in from all over the world. This gives real estate on the coast an advantage over Zagreb. A larger pool of customers with higher purchasing power.

Most of them are buying second homes on the coast, but more and more buyers are moving to our coast because of the home office model.

Photo: The Lazy Artist / Pexels

How much did the earthquake in Zagreb, and the slow-moving reconstruction, affect the real estate market in the capital?

— It was a tectonic disturbance in every sense of the word. Old buildings in the city center went from being the most attractive real estate to the least desirable goods.

The price for new buildings in the center has risen further, but for old apartments it has dropped significantly. In 2020, the number of sales dropped by almost 50% in the center, as a result of the earthquake. The slow pace of reconstruction further slows the recovery of the downtown market. All of

BUYING AND SELLING A REAL ESTATE IS ONE OF THE BIGGEST THINGS IN LIFE FOR A LARGE NUMBER OF CITIZENS, SO IT IS IMPORTANT TO PAY ATTENTION TO BE CAREFUL ABOUT WHO THEY DO BUSINESS WITH AND HIRE PROFESSIONALS

this has affected the price growth in other locations in the city.

What is your advice for all those who intend to buy a property in the near future? What to pay attention to and is now the right time for it?

— Given the trends, buying seems like a smart decision at the moment. Of course, one should take into account what and where is bought, as well as the price.

Buying for a living or renting is definitely worth it.

How do you estimate the market in terms of agencies and those dealing with sales and rentals, whether there is unfair competition and what are the most common business problems?

— There is both loyal and unfair competition in the market. Due to the problems caused by the corona virus, a significant number of employees in the tourism sector moved to real estate, counting on quick earnings. This has led to a drop in quality and a questionable level of service. Especially from unregistered intermediaries who work “from their kitchen”.

The chaos on the market is also made by foreign agencies that operate on the market, but without the control of our institutions.

Buying and selling a real estate is one of the biggest things in life for a large number of citizens, so it is important to pay attention to be careful about who they do business with and hire professionals. An old saying goes “There’s no such thing as a free lunch”. It is better to pay professionals and sleep peacefully, than to have headaches later.

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CORPORATE

A Regional Market Leader In 2020, this largest European manufacturer and distributor of light decorations added this Croatian company to its ranks, which thus became the 27th subsidiary of Blachere Illumination in the world he company Gospodari svjetla has been in the light decorations business since 1999. Continuous investments, education, following trends and many years of position as a regional market leader in the field of light decorations, were recognized last year by the French group Blachere Illumination.

Occasional, mostly Christmas decorations, make the largest part of the business of Blachere Illumination – Gospodari svjetla and that’s the company behind the Christmas editions of more than 60% of shopping centres in Croa-

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tia, and are in charge of Christmas decorations in more than 120 cities and municipalities as well as numerous facilities, restaurants, hotels.

The company's business is not limited to Croatia, but covers the entire SEE region, which in ad-

dition to Croatia consists of Slovenia, Serbia, Bosnia and Herzegovina, Albania, Kosovo, North Macedonia and Montenegro. In the region, Blachere Illumination – Gospodari svjetla, is behind major projects such as the Belgrade Shopping Mall, Promenada shop-

WE ARE AVAILABLE TO ITS CLIENTS FROM THE DEVELOPMENT OF THE IDEA AND ITS SIMULATION, TO THE IMPLEMENTATION, IE THE REALIZATION ON THE TERRAIN

ping centre Novi Sad, The Capital Plaza in Podgorica, the city of Budva, the city of Maribor and many others.

Part of that successful business story and spreading in the SEE region was presentation of lighting decorations for ski resorts that company Blachere Illumination – Gospodari svjetla held at the begining of this September.

For their first destination for such presentation they choose Olympic Center Jahorina in Bosnia and Herzegovina. As a part of the official program, international sales manager Julien Laurent presented

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the French group Blachere Illumination and the team Blachere Illumination – Gospodari svjetla gave their guests more information’s about trends, their experience in decorating and concrete offer of lighting decorations. „In Bosnia and Herzegovina today I see something similar as the situation and experience that we had in Croatia before ten years.

Market is spreading and growing, clients are looking for something different and new, but existing offer on the market can't respond to that. This is the main reason because we choose this destination as first to present lighting decorations for ski resorts. We want to offer a step forward, move away from just a classic lighting decorations, give new solutions and raise the standard of quality of lighting decoration in Bosnia and Herzegovina“, said Željko Fresl, director of the company Blachere Illumination – Gospodari svjetla.

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Guests at the Olympic Center Jahorina also had a opportunity to see live some of lighting decorations that was mentioned during the presentation. Garlands, 2D and 3D motifs, lighting decorations that take the breath away, was part of this event called Magically illuminated Jahorina.

Knowledge, special skills and experience of the people who make up the team Blachere Illumination – Gospodari svjetla, but also large production capacities of top quality light decorations, guarantee that the company can meet all business challenges and

over 120 Christmas 2D and 3D light motifs, various types of commemorative lighting, but also motifs from the new Easter & Spring collection of light decorations.

The wide range of light decorations, of top design and performance, is accompanied by the strategy of environmental responsibility. This is not an empty word on a piece of paper, but a really high level of environmental awareness, which is visible by the two innovations that the company has introduced into its production processes since 2019 : Bioprint and Recyprint, which in

THE COMPANY COVERS THE ENTIRE SEE REGION, WHICH IN ADDITION TO CROATIA CONSISTS OF SLOVENIA, SERBIA, BOSNIA AND HERZEGOVINA, ALBANIA, KOSOVO, NORTH MACEDONIA AND MONTENEGRO provide complete service and support in all phases of the project.

The company Blachere Illumination – Gospodari svjetla is available to its clients from the development of the idea and its simulation, to the implementation, ie the realization on the terrain. Regardless of the size and complexity of the project, the demands of the installations themselves, they will find and realize the best light decorations solution for each individual client.

Each year, the company Blachere Illumination – Gospodari svjetla presents part of its offer of light decorations as part in a showroom, which is also the largest showroom of light decorations in the region. It features

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practice means that the light decorations are made from biodegradable and recycled materials.

Bioprint involves the production of sugar cane decorations, and Recyprint the production of decorations from used plastic bottles, which drastically reduces the negative impact that light decorations can potentially have on the environment.

Bearing in mind the people behind the name Blachere Illumination, the quality of their products and the mission to use the power of light decorations, their knowledge and experience to amaze, surprise, stimulate emotions and create fairy tales, this is just a continuation of a successful business story.

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BUSINESS NEWS

03 Amazon OPENING OFFICES IN CROATIA

Strabag OPENS A NEW BUSINESS AND PRODUCTION BUILDING IN DONJA LOMNICA 01

On the occasion of the opening, Strabag Director Veljko Nižetić says that this concludes their strategic project, which, according to him, will certainly facilitate and improve the daily business of the company, which is continuously working on a number of key infrastructure and demanding construction projects across Croatia. “We believe that investments like this

one, in the asphalt base and in ancillary buildings and plants, as well as the employment of new people and the expansion of production, are a logical step in the growth and development of the company," Nižetić explains.

Strabag, one of the leading construction companies in Croatia, at the company level with more than a billion in total revenues in 2020, has completed its strategic project which additionally positioned the company in the vicinity of the City of Zagreb and Zagreb County.

After two years of preparations, Amazon, one of the top five tech companies in the world, has formally started opening an office in Zagreb. To begin with, Amazon is looking for 15 employees, and unofficially it is mentioned in the industry that the final number could rise to 50. Even though the company is best known in Croatia as an Internet retailer, the largest one in the world, it is much better known in IT industry for its cloud services.

aimler AG D OFFERS UP TO 400,000 EURO TO EMPLOYEES TO LEAVE THE COMPANY 04

Automotive giant Daimler AG has faced major changes during the restructuring. Namely, on the one hand, the group will be divided into two new, independent companies this year: Mercedes-Benz for cars and vans and Daimler Truck for trucks and buses. The car manufacturer, on the other hand, wants to become climate neutral before 2039 and must completely redirect its production towards electromobility. However, in order to be able to afford large investments, Daimler is facing strict savings measures and this will have far-reaching consequences for the Group’s employees

overnment of the G Republic of Croatia EUR 13.15 BILLION WORTH OF PROJECTS HAVE BEEN CONTRACTED FROM EU FUNDS 02

Croatia arranged the financing of projects in the value of EUR 13.5 billion from European Structural and Investment Funds (ESIF) by September 09, thus exceeding the amount allocated to the country for the period from 2014 until the end of 2020 by 22.5 percent, Ministry of Regional Development and EU Funds announced on Thursday. At the closed-door Government session held today, Minister Nataša Tramišak presented

the report on the utilization of ESI funds in Croatia, which the Government then adopted, the press release states. Croatia had a total of EUR 10.7 billion, i.e. HRK 81.56 billion at its disposal from ESIF for the 2014-2020 period. By September 09 this year, projects worth EUR 13.15 billion or HRJK 99.93 billion, or 122.53 percent of the allocated funds, have been contracted.

The Competitiveness and Cohesion Operational Program has the best percentage of contracted funds of 131.87 percent of the total available allocation, while the best percentage of disbursed funds is recorded by the Rural Development Program, i.e. 76.96 percent of the allocated funds.

05 Zvečevo SOLD PART OF BUSINESS AND IS CHANGING ITS STRATEGY

Zvečevo Confectionery Company signed a contract for the sale of its spirits production business to Zagreb's JAP 1921, a company associated with the distributor Alca Zagreb. JAP 1921 s expected to take over the assets, employees, property, intellectual property rights and other, according to the statement from the Zagreb Stock Exchange, while the value of the transaction was not mentioned. Over the first six months this year, this company operated with a loss of HRK 3.57 million, compared to a profit of HRK 3.09 million in the same period last year.

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LONG-HAUL SALLY

JetBlue Launches a Low-cost Transatlantic Flight It has a better chance to stay aloft than failing forerunners erhaps Jetblue believes that the sky is darkest before dawn. On August 11th America’s sixth-biggest airline, known for its no-frills domestic services, launched its first transatlantic flights, between New York and London. The timing seems plucky. America has yet to follow European countries in lifting tough pandemic-era cross-border travel restrictions. Industry insiders think that long-haul travel will be the last sort to rebound. And low-cost intercontinental travel has historically been a tough business. Can JetBlue crack it?

The flight path of failure can be tracked from Freddie Laker’s Skytrain in the 1970s, via People Express, Tower Air and Air Berlin, to the more recent hard landings for Denmark’s Primera Air in 2018 and Iceland’s WOW in 2019.

Norwegian Air Shuttle, which had captured a third of the worldwide low-cost-long-haul market, gave up on it in January, a victim of reckless expansion as much as of covid-19. Even survivors have little to shout about. Malaysia’s AirAsia X has made an annual pretax profit only twice since it went public in 2013.

Budget airlines have transformed short-haul flying by running simple point-to-point operations that eschew the hassle of connecting passengers across a complex network. They keep aeroplanes in the air for longer each day than full-service rivals do, fly from less popular airports at ungodly hours when charges are lower, cram punters into minimal legroom, charge extra for every tiny comfort and keep labour costs down by employing fewer and cheaper staff.

These tricks do not translate well to long-haul travel. Sweating costly assets is harder on a ten-hour journey crossing several time zones than when darting around a region with fast turnaround times. That makes it difficult to schedule flights to take off and land at those odder, cheaper times. And exhausted crew must be accommodated in hotels rather

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JETBLUE PLANS A FURTHER SERVICE TO LONDON GATWICK STARTING IN SEPTEMBER AND FROM BOSTON TO LONDON NEXT SUMMER than being immediately rostered back to their own beds at the end of the day.

JetBlue thinks it can overcome these obstacles. In contrast to Norse Atlantic, a new carrier that thinks it can make better use of the wide-body Boeing 787 Dreamliner, 15 of which it is now leasing, the American airline is using a new breed of aircraft, the Airbus A321LR. This is a long-range version of the European planemaker’s single-aisle short-haul workhorse. These are cheaper than wide-body jets. They are also smaller, and so easier to fill.

And JetBlue has another card

to play. The standard business of long-haul flying makes competing on price difficult. Full-service airlines rely on selling lucrative business-class seats at the front of the plane for the bulk of their revenues and profits. As a result, they can afford to sell economy seats relatively cheaply. Unlike most earlier low-cost efforts, JetBlue’s planes will include 24 business seats which should plump up margins. To attract business passengers it has steered clear of remote airports that executives dislike and picked up slots at Heathrow freed up by pandemic flight cuts.

JetBlue plans a further service to London Gatwick starting in September and from Boston to London next summer. Norse intends to fly between several European and American destinations. But full-service carriers will not take the challenge on their most lucrative routes lying down.

American carriers succeeded in lobbying their domestic regulators to slow Norwegian’s expansion. Incumbents including IAG, owner of British Airways, have launched their own low-costlong-haul subsidiaries. Laker offers a sobering lesson. He successfully sued several legacy airlines for predatory pricing—but only after he had been forced out of business.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

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COLUMN

Agile Communication in Sales Management Agile communication differs from traditional communication in setting different tone and principles as well as emphasizing simplicity, directness, and face-to-face conversations among stakeholders in sales process

JAGODA POROPAT DARRER Business Communication Professional

o manage communications in agile way it is essential to understand how different agile communication methods work. It should be possible to write, edit and publish an important piece of news within hours. That’s not to say that everything must be fast, just that it can be fast when it needs to be.

That said, responding to the work means that agile communication is usually done at a faster pace than traditional communication.

According to Turnbull, Cattell, (2018) that good agile communicators can go from idea to product within days. If someone has an idea for a poster or a sticker that might help spread a useful message, an agile comms team can rapidly iterate through ideas for words and designs, then send something to be printed. Agile communication recognizes that most people, most of the time, are too busy to read detail. So, by default, agile communicators simplify and summarize, helping their readers to understand the basics very easily and very quickly.

A writer sits down with one or two members of the discovery team and asks them what the team actually discovered. They write a draft and share it back to the team, who make edits and suggestions.

Continue until there’s a post that everyone’s happy with.

That’s not to say that detail is ignored. Detail is important to some people, some of the time, so it should be available. But it should not be the first thing that people must read. Good agile communication sums up the detail by default, and then points readers to the detail, wherever it sits.

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It’s easier for teams and for audiences to break the story down into a series of smaller posts presented over time. In this way a blog, comprising a series of posts, can become a digital hyperlinked narrative of thought. New posts can link back to past posts. Teams can document what changes and show how it has changed. They can show how their minds have changed, and what evidence or research brought those changes about. Blog posts are the best way to create a spine for it, but other things like Tweets, videos, presentations, show-and-tells, team newsletters and other tools can all interlink to it. It tells stories about work and finds ways to tell them in new ways. It aims to keep au-

diences interested and inspired, if you want people to read something, give them something that’s readable. Write the way you would speak. Communicate in small doses, frequently. Allow your story to develop over time, conclude Turnbull and Cattell (2018).

However, agile methods are urgently required in sales to keep pace with accelerated processes and consumer decisions, sates Schulz (2020). Customers are well accustomed to finding alternatives to offered products and filtering out the best deals in fractions of a second with the click of a mouse. Traditional sales approaches that involve a detailed exploration of needs and numerous steps and phases are no

TO MANAGE COMMUNICATIONS IN AGILE WAY IT IS ESSENTIAL TO UNDERSTAND HOW DIFFERENT AGILE COMMUNICATION METHODS WORK

Photo source: Pexels

longer fit for purpose given this buying decision process. Customers mainly require speed and tailored products. For sales teams, this means purposeful consulting with full consideration of customer wishes and speedy completion – before the customer turns elsewhere, (Schulz, 2020). The agile sales concept is based on Scrum methodology, among others, but also encompasses customer centricity, transparency, and continuous adaptability. Inherent to agility, and therefore agile sales as well, is flexibility. Adapt in real time to new data, information, and situations. If customers jump off at short notice, respond by improving your pitch to include hard-hitting, quality-based reasoning and present references from customers for whom your product has proven successful.

You should be able to see market changes coming before they happen and adjust targets, processes, and strategies, accordingly, concludes Schulz (2020).

New studies show that sales agility is even more impactful than agile sales methodology. Unlike the more commonly discussed agile sales, sales agility does have quantifiable results, about 22% increase in win rates.

What do pilots, first responders or surgeons all over the world have in common? It is obviously the ability to diagnose fast what’s going on and adjust on a dime.

It is good to know that everyone can learn sales agility. According to vantagepointperformance. com. first, you need data on previous engagements. They call it situational intelligence. Then you teach your sellers how to be aware of the common situations they will encounter. They define that as situational readiness. And finally, you train and reinforce.

They define that as situational fluency.

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PEOPLE & EVENTS

Weekend Media Festival This year, the largest regional conference, the SEP Weekend Media Festival, revived the premises of the old Tobacco Factory in Rovinj and celebrated life and togetherness under the slogan "Long live life". It is a regional event that brings to-

gether numerous experts from the world of media and communications and brings the latest trends, knowledge and successful practices from the industry, the organizers said in a statement and added: "This year's festival exceeded all expectations! What is our secret?

The secret is in the great program, interesting lecturers and informal socializing in a pleasant environment. Everyone here feels good and inspired, and of course, some jobs are arranged. It is an ideal combination - a combination of September's extended weekend

and inspiring gatherings with colleagues from all over the region ", said Tomo Ricov, director of the Weekend Media Festival, after closing another best Weekend of the year, which again marked a series of inspiring lectures and speakers.

Photo: Matija Habljak / Pixsell

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Mina Rzouki, Guillem Balague, Sonya Kondrateno and Pete Radovich

Photo: Matija Habljak / Pixsell

Photo: Kristina Stedul Fabac / Pixsell

Nevena Rendeli, Sandra Bencic, Jelena Veljaca, Vesna Blaskovic

Tomo Ricov

Photo: Matija Habljak / Pixsell

Photo: Emica Elvedji / Pixsell

Damir Smrtic and Nina Obljen Korzinek

Photo: Matija Habljak / Pixsell

Robert Čoban, Renato Ivanuš, Ivan Bučan and Josip Ašik

Jovana Tomic, Vojislav Milutinovic, Alan Sumina, Kristina Jankovic and Bosko Dordevic

29

CULTURE NEWS

by Svetlana Nenadovic Glusac

Photos: Diplomacy and Commerce Austria

Exhibition opening: Modigliani – Revolution of Primitivism

fter a long wait, this great day for art lovers and admirers of the works of Amedeo Modigliani has finally come and a milestone for the Albertina and for all of Austria!

On September 17th, the ALBERTINA Museum opens Modigliani – The Revolution of Primitivism, an exhibition of the century by the artist genius. For the first time, Modigliani admirers can experience works by the Italian artist on this scale in Austria.

On the day before the opening, a press conference was held

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in the Albertina on the occasion of the opening of the exhibition.

Prof. Dr. Klaus Albrecht Schröder, director general of the Albertina, who was also the main initiator of the idea for this exhibition, and Marc Restellini, author of the catalog raisonné by Amedeo Modigliani and curator of the exhibition, spoke to media representatives.

The exhibition is as fascinating as the life and works of Amedeo Modigliani himself and can be seen in the Albertina from September 17, 2021 to January 9, 2022.

ON SEPTEMBER 17TH, THE ALBERTINA MUSEUM OPENS MODIGLIANI – THE REVOLUTION OF PRIMITIVISM

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CORPORATE

Best of TV Industry at One Place NEM Dubrovnik 2021, a TV market with a spectacular view on the Adriatic, has for the eighth time gathered world renowned players of the TV industry ore than 500 visitors, panelists and prominent speakers gathered at Dubrovnik Palace Hotel at the beginning of September and discussed about new trends and media evolution after a year that greatly influenced the media. Besides successful companies and industry leaders, NEM Dubrovnik 2021 was supported by the Ministry of Culture and Media of the Republic of Croatia and minister Nina Obuljen Koržinek.

Apart from the organizer of the event, Croatian TV and marketing agency Mediavision, the visitors were also welcomed by the veteran of the TV industry Pavel Stanchev (TV2 Media Group) who reminded on the viewers’ satisfaction as an ultimate goal for all the participants: representatives of Pay-TV channels, FTA channels, streaming services, telecom operators and other TV services providers, as well as producers, directors, writers and other members of the audiovisual industry.

Except for numerous panels and presentations, and contact, experience, and knowledge exchange, NEM Dubrovnik 2021 also served as an ideal platform for premieres and exclusive presentations of new TV content. For example, the world premiere of “Silence”, the series which was developed in the coproduction between HRT, Croatian production company Drugi Plan, German Beta Film GmbH, international movie company Star Media and Ukrainian streaming service Oll.tv.

On the much-anticipated pan-

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NEM DUBROVNIK 2021 SERVED AS AN IDEAL PLATFORM FOR PREMIERES AND EXCLUSIVE PRESENTATIONS OF NEW TV CONTENT el Why We Love TV Industry?, speakers were TV industry veterans – writer and producer of the popular show “The X-Files” Frank Spotnitz (CEO, Big Light Productions), Louise Pedersen (CEO, All3Media International) and Vlad Riashyn (President, Star Media) who explained how local content can, with the help of streaming services, become a world hit. Pan-

elists also commented on the virtual reality as a potential future of the industry and on the responsibility for the production of quality content and stories that can change the world.

How will the future of sporting events broadcasts look and is watching games on linear television a thing of the past? DAZN, a leading world sport streaming ser-

vice claims just that as they presented their plans and visions on NEM Dubrovnik 2021, and the discussion continued on the panel Is Streaming the Future of Sports?

On the set of presentation named TV Tech Showcase, technology experts from several global companies shared their knowledge and experience and explained key strategies which they apply to their customers. British company Synamedia with offices around the world, American WhipMedia and BitMovin, and Polish SeaChange answered one of the key questions: how to monetize content in an environment that is constantly changing?

Nina Obuljen Koržinek

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