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Croatian Bureau of Statistics assessment Average Croatian household annual food costs 32%, housing 14.9% and clothing 7.9%

Marin Bosotina, owner of Chrono As in the case of trading centres conglomerating, the same thing will happen with medical services

Euro-Milk dairy In the midst of crisis a small dairy registered sales growth and ventured into new investment

HOUSEHOLD EXPENDITURE

INTERVIEW

AGRICULTURE

PAGES 2-3

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PAGE 5 2010

Croatian Business & Finance Weekly Established in 1953 Monday / 31st January / 2011 Year IV / No 0138 www.privredni.hr

S U P P O R T E D

B Y

T H E

pvinternational pv international C R O A T I A N

C H A M B E R

O F

E C O N O M Y

NEGOTIATIONS CALENDAR: MEMBERSHIP IN 2014

Push and pull for six years The European Parliament could ratify the agreement on Croatian EU accession in October, after concluding negotiations in the summer, yet realistic expectations of an end to the ratification process with all 27 member states show a longer period will be necessary Lada Stipić-Niseteo agreb has a plan: negotiations’ conclusion on the 21st June, so that the leaders are able to announce it formally at the final summit of the Hungarian presidency. In addition, the entry date will be known by then. The plan is feasible and if it really becomes a reality, the mathematics of the marathon negotiations process would read 2,286 days, or almost six years in total. The opening of negotiations on 3rd October 2005 was not fortunate

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When negotiations conclude in the summer, the European Parliament could ratify the agreement on EU accession as early as October. for two countries unwillingly included in the process. Croatia overcame all possible obstacles and it is certain that the param-

eters for Turkey were tested first on Croatia. Moreover, the Croatian leadership relied on lobbying for too long. The situation started developing only when Slovenian blocking manoeuvres reached excessive proportions and when discrete interior sanctions came into force. The episode confirmed that the Eurosceptics were wrong to complain of a superstate; each of the 27 member states has the possibility to express its views, rather than common goals in

the enlargement process, whilst such a possibility does not exist in a superstate. The key importance of the 11th March However, the main challenge on the way towards finalising negotiations will take place on 11th March, when the European Commission will give a preliminary report on progress towards judicial reform. The date set is a definite advantage as it will make the Commission work

rather than meditate upon the results. It will all depend upon the mark given by the Commission. However, other prerequisites will also have to be satisfied. This would be the best and the most favourable scenario. After six years of torment, this scenario looks more like an unrealised dream than a real option which is, nevertheless, in everyone’s interest. When negotiations conclude in the summer, the European Parliament could ratify the agreement on EU accession as early as October. Hannes Swoboda, the rapporteur for Croatia, hoping to have given the Parliament its final report, claims that it would imply the ratification commencement in 2012, after the referendum in Croatia. He fears, however, that the procedure will ingloriously enter the Guinness Book Of World Records by the time it takes to finalise the negotiations. It is almost impossible to finalise everything by the end of the year, thus completion on 1st January 2014 or, a bleaker version, on 1st June 2014, is a more realistic option according to Swoboda.


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Privredni vjesnik Year IV No 0138

MILAN BUŠIĆ, FORMING OWNER AND DIRECTOR

Energy performance certificate an imperative More attention will be focused on the energy rating of a residential building, both upon purchase and residential-commercial building rent

ince last year, residential building owners have had to submit an energy performance certificate providing the energy efficiency rating for the building upon receiving the operating licence. The energy performance assessment of a building is a fully-documented procedure. It is performed to define the energy efficiency of a building and the level of efficiency in relation to recommended values. The certificate consists of economically justified proposed measures for a building’s energy efficiency improvement and is produced by accredited assessors. Energy performance assessment is a document covering the energy efficiency of a building with a prescribed content and can be issued solely by accredited individuals. Little attention has been devoted to this issue in Croatia, yet this is certainly going to alter in the

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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription

future due to anticipated energy price increases. Considerable attention will be focused on the energy ranking of a building, both upon purchase and renting residential-commercial buildings. Forming is accredited for energy assessment and energy performance certification of residential and commercial buildings, both with simple and complex technical systems. Accreditation encompasses an energy inspection of buildings with a complex technical system in their architecture and the construction-related segment. According to the regulations covering the energy performance certificate of buildings, every building is to hold an energy performance certificate prior to use or before its opening; every building for sale, rent or lease must hold the certificate by the Croatian EU accession date at the latest and all public use buildings must produce and publicly display the certificate by 10th June 2012. Green projects are a trend and several parameters and green standards are becoming increasingly important in the construction of a building. All parameters starting from its distance from important public facilities, position and location, to the building method and building materials used, their energy efficiency, its integration into the environment, the quality of living and traffic connection are gaining significant focus.

FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr

IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr

EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr

TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com

EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr

INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr

( 32%

average expenditure on food and soft drinks

CROATIAN BUREAU OF STATISTICS ASSESSMENT

Household inco of €10,436

Average Croatian household total annual food costs amoun Igor Vukić he average Croatian household had an available annual nett income of €11,896, with average outgoings of €10,436 in 2009, as stated in the Croatian Bureau of Statistics (DZS) research study. The highest percentage (32%) related to food and soft drinks (€3,346). Housing and energy costs amounted to €1,502, some 14.9% of total outgoings. Transport totalled €1,145 on average or 11%. Outgoings on other goods and services totalled €881 (8.45%) and personal care services, insurance premiums, jewellery and watches accounted for an insignificant €7 annually. Average Croatian household annual expenditure on clothing and footwear stood at €761 or 7.9%. Recreation and culture spending amounted to €625 or 5.99%. Within this figure, recreation and culture spending totalled €240, the highest amount spent, followed by newspapers and books (€179). Home furnishings and household maintenance expenses averaged €545 (5.22%) with slightly lower expenditure on communications with €537 or 5.14%.

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Continuous growth in expenditure Croatian Bureau of Statistics researchers suggest that average family annual outgoings on alcoholic drinks and tobacco totalled €375 (3.59%), restaurants and hotels €325 (3.11%) and €289 (2.77%) for health services. Education expenses amounted to a meagre 1% or €104 of average family expenditure.

Total average household outgoings were higher in crisis-ridden 2009 than in 2008. This continuous growth began in 2005, soaring by almost €685 in 2007 compared with 2006. In 2005,

According to the survey, the top decile of households had an annual income of €28,855, whilst that for the lowest decile stood at €2,242 outgoings stood at €9,545 and over the following years, changed as follows: 2006 - €9,514; 2007 - €10,137; 2008 - €10,208 and 2009 €10,436. A survey conducted on a representative sample of 3,000


www.privredni.hr Business & Finance Weekly

3

( €1,502

annual expenditure on housing and energy

ome of €11,896 and outgoings t to 32% , housing 14.9% and clothing and footwear 7.9%

Average food consumption per family member, 2009. Bread

74,2 kg

Ham, sausages etc.

15,7 kg

Milk

76,9 l

Apples

14,6 kg

Flour

23,5 kg

Fish

7,1 kg

Oil

13,1 l

Bananas

10,1 kg

Pasta

9,2 kg

Potatoes

40,3 kg

Mineral water

29 l

Pears

1,8 kg

Rice

4,4 kg

Cheese

7,9 kg

Sparkling drinks

12,3 l

Green vegetables

10,7 kg

Pork

15,8 kg

Milk products

17,3 kg

Voćni sokovi

16 l

Legumes

19,1 kg

Beef

9,2 kg

Sugar

11,9 kg

Alcoholic drinks

0,8 l

Root vegetables

14,8 kg

Veal

1,9 kg

Coffee

3,4 kg

Wine

9,2 l

Chocolate

1,8 kg

Chicken

18,2 kg

Eggs

148

Beer

18,2 l

Ice cream

1,9 l

Source: DZS

households recorded a housing and energy cost growth (from €1,295 to €1,502), transport (from €1,037 to €1,145), as well as other goods and services (from €723 to €881). Food and soft

drinks purchases increased from €3,170 in 2005 to €3,346 in 2009. Average household income originated from company employment (54.5%), from retirement allowances (17.6%),

individual activity (15%) and transfers and other revenue (12%). Only 0.88% of average household income (€104) came from property income. Unemployment benefit was virtually

unchanged, at 0.78% or €93. According to the survey, the top decile of households had an annual income of €28,855, whilst that for the lowest decile stood at €2,242.

7.9% of families with housing loans

Communication, communication

Reduced potato and milk purchases

In 2009, a survey recorded 80.8% of Croatian families living in flats or family houses in private ownership without housing loans, whilst 7.9% families had a housing loan. 4.5% of families lived in rented accommodation, primarily in family houses (73.1%) and flats (26.9%). The majority of residential units, 48%, were built between 1961 and 1980. An average residential unit consisted of two rooms (45.5%) or three rooms (20.7%).

The top decile of households (€19,754) spent 25% of income on food. Their spending was predominantly on clothing and footwear, transport and restaurants, whereas in the lowest decile of households’ food expenditure amounted to 47%. However, at both ends of the spectrum, expenditure on communication (telephony services and device purchase) showed an almost similar level: 4.24% among the poorest and 5.18% among the wealthiest.

Whilst average family expenditure increased from 2005 to 2009, due to a rise in prices fewer goods were purchased. Annual potato purchases dropped from 45 kg to 40 kg per family member in 2009. In 2005, milk purchases totalled 85 litres, whilst five years later it had decreased to 77 litres. Less was also spent on flour (down from 26kg to 23.5 kg), on bread (from 83kg to 74 kg) and on pork (from 18 kg to 15 kg). Wine consumption fell from 10.8 to 9.2 litres and beer from 20.8 to 18.2 litres. However, there was a slight increase in spirits consumed by each family member from 0.6 to 0.8 litres year-on-year.


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Privredni vjesnik Year IV No 0138

(

35 million for Analiza

( 120 rooms with 240 nursing beds

MARIN BOSOTINA, OWNER OF CHRONO

Everything in one place in one day As in the case of trading centres, where small individual stores congregated in one place, the same will happen with medical services Jozo Vrdoljak arin Bosotina is the owner of the company Chrono, which owns one of the most modern and biggest medical facilities in Croatia and the region, the medical centre Analiza in Dugopolje. Bosotina is also the director of this institution, which is currently only partly operational.

M

How did you venture into the construction of the medical centre Analiza? Analiza is owned by Chrono, which is owned by two of my companies, with central offices in Switzerland and Spain. The project for the centre’s construction was initiated six years before, when we started to search for its possible location. We opted for Dugopolje for its excellent position, since I am aware that a sea view is not necessary for a medical centre, but rather its accessibility, ease of communication and coverage. Our centre covers the area of Dalmatia and part of Bosnia and Herzegovina. It provides us with the potential for developing medical tourism in Dalmatia, with great accommodation capacity. What is the value of the Analiza project? The medical centre is located over 11,400 m2 and when the building is completely equipped, we will have 240 nursing beds in 120 rooms, 7 operating rooms, laboratories, surgeries, complete

radiology diagnostics and various other services, including restaurants and parking space. What is currently operational? We finished the building with seven flours, a diagnostics area and a department of polyclinics. It will be completed by the end of the year. We are in the final phase of arranging the incoming of a strategic foreign partner. For now I am able to say it is a partner from Austria and the owner of 120 hospitals in 20 countries. In addition to funding, the partner will also bring part of its know-how. The investment should amount to roughly â‚Ź35 million. The medical centre Analiza has been and will continue to be equipped with state-ofthe-art equipment. Moreover, we have invested greatly in our staff and we are still interested in top medical experts. Our partner is of great value to us, since it will provide us with much better health services and it could also open the market of private health insurance. You started your work in October 2010. Are you satisfied with results? I must say the results exceed our expectations. Our advantage is that a patient can receive complete service in one

day and one place, starting from arrival, admission, radiology and laboratory processing by specialists. There are certain surgical procedures

which can be performed in the same day. In operating procedures we use endoscopy in orthopaedics, gynaecology, surgery and urology. Analiza has a team of top experts in addition to state of the art equipment. The centre currently employs 50 staff, aiming at a total of 240 medical workers when the project is completed. What is your view on the level of health services in Croatia? We have a solid health system considering the amount of money we pay for it. We owe this mostly to the majority of health workers in health institutions. Regarding private health services, it is basically developed, at least the surgeries are. However, the health system must be consolidated. A patient cannot visit five different locations in order to solve his problem. As in the case of trading centres where small individual stores congregated in one place, I am sure the same will happen with medical services.


www.privredni.hr Business & Finance Weekly

5

EURO-MILK DAIRY

Exclusively local Through its brand and in the midst of crisis a small dairy registered sales growth and ventured into new investment Božidar Kuzmić, investing €50,000 in the construction of their business facility. They took out a loan for another €250,000 for equipment. Six years later, after having decided to produce their trade mark, they researched the market and found the name for their brand - Dragec cheese.

Krešimir Sočković orty kilometres north of Zagreb and with a population of over 1500 people lies the municipality of Bedenica, which can be proud of its zero unemployment rate. There are three private companies, employing in the region of 250 workers, and this small municipality produces two food brands from the Zagreb County – Grof ham and Dragec cheese. In its second biggest village of Beloslavec, there is one of the two remaining small dairies in the County of Zagreb – Euro Milk dairy. During its 12 years existence, the dairy increased to 27 employees, with an an-

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nual income in 2009 exceeding €2.19 million. In addition to fresh milk and cheese, they expanded their production to cottage and cream cheeses, butter, fermented products, spreads and the crowning jewel of their range - local Dragec cheeses. The company was founded in 1998 by Ivica Kudelić and

PROCESSING INDUSTRY DURING FIRST NINE MONTHS OF 2010

Numerous awards Their increasing customer base proves the quality of this product, and the increasing demand as well as numerous awards in Croatia and the region turned it into original Croatian product. Last year they produced some 25 tonnes of cheese (60,000 individual pieces), and currently they purchase around 15,000

litres of milk from 250 subcontractors. “This year, we are planning to obtain equipment to automate production. Therefore, we will apply for the tender for IPARD projects. I hope we will successfully conclude this investment by the end of the year, as we estimate its value to be €0.41 to €0.48 million. We want to build waste water filters, a line for the automatic washing of products and an automatic filler,” adds Kuzmić. “We wish to preserve the identity of our products and we find it quite important we are able to say this product derives from Croatian farms. Our products and Dragec cheeses must be produced from local milk,” concludes Kuzmić.

COUNTY DEVELOPMENT

Gross profit of €0.48 billion Zagreb dominance Under the most difficult of conditions, the Croatian processing industry has reduced both total income and expenditure during the first nine months of 2010. This has led to a reduction in overall gross profits. According to data from the Financial Agency, during that period a total of €12.62 billion in income and €12.15 billion in expenditure were recorded. Therefore, gross profit totalled €0.48 billion. Total income decreased by 4.4% over 2009, and total expenditure by 3.6%, with gross profits slumping by 20.4%. Employment has decreased by 5.1% (on the basis of working hours), as well as average monthly nett salaries (-0.5%). Employees of entrepreneurs, who are tax payers, received an average nett salary of €602.20. Not all entrepreneurs operated with positive financial results. On average, every third company has been operating at a loss during the past ten months. Even though final financial results have not been established for the first nine

months of 2010, it can be said that all those whose income exceeded expenditure, operated with gross profits. Of 10,924 entrepreneurs in the processing industry, 6,362 or 58% operated with gross profits, and 4,562 or 42% registered gross losses. Gross profits achieved by the industry during the first nine months of 2010 were also the highest compared with all other activities. In the past, the highest level of gross profit was achieved by traders. However, the economic crisis in 2010 effectively reduced gross profits from trade compared with the first nine months of 2009, decreasing 44.8% and achieving only €0.44 billion in gross profit. (V.A.)

Huge divergences in both county and regional development are characteristic of the Croatian economy, as has been shown by entrepreneurs tax payers’ business results in the period January and October last year. According to the Financial agency FINA data, Zagreb plays a dominant role, followed by Split-Dalmatia, Primorje-Gorski Kotar, Zagreb surroundings, Istria and Osijek-Baranja with Virovitica-Podravina and PožegaSlavonia at the bottom of the list followed by Lika-Senj as the convincingly least-developed of all counties. Huge differences in development can be seen in the number of entrepreneurs, the numbers employed, total revenue and total gross profit within counties. Zagreb is dominant with a share of 33.6% of the total number of Croatian entrepreneurs (30,288), in numbers employed (39.1% or 334,935), in total revenue (51.9% and €30.76 billion), in total expenditure (51.6% and €28.99 billion) and its 59.6% share of total

gross profit of Croatian entrepreneurs (€1.29 billion). Lika-Senj county, the least developed county, has a meagre 0.6% of the number of entrepreneurs (530), a 0.5% share (4,401) in numbers employed and a paltry 0.3% (€0.15 billion) of total revenue, 0.2% (€0.15 billion) of total expenditure and a 0.8% share (€17.12 million) of total gross profits of Croatian entrepreneurs. ver the first nine months in 2009 the average monthly nett employee salary in Lika-Senj county was €462.60, some 25.7% lower than the average employee salary (€622.20). (V.A.)


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Privredni vjesnik Year IV No 0138

CROATIAN FOREIGN CURRENCY MARKET Currency

AUD CAD JPY CHF GBP USD EUR Source: HNB

Kuna exchange mid-rate

EUR

7.43

5,354734 5,421359 6,525020 5,709707 8,566211 5,393333 7,407203 WEEK JANUARY 29, 2011

USD

5.46

25.1.

26.1.

27.1.

28.1

4.74

7.42

5.44

4.72

7.41

5.40

4.70

7.40

5.38

4.68

7.39

5.36

4.66

7.38 24.1.

CHF

4.34 24.1.

25.1.

26.1.

27.1.

28.1

4.64 24.1.

25.1.

26.1.

27.1.

28.1

LABOUR MARKET

::: news

AVERAGE UNEMPLOYMENT RATE OF 18.5% IN 2011

Imex bank profit increase by 90% Imex bank profit for 2010 amounted to €1.40 million, whilst total assets increased by 18.12% to €0.22 billion. According to preliminary unaudited financial reports, total Imex bank loans amounted to €0.15 billion, an increase of 27.29% with respect to the end of 2009. Total revenue amounted to €18.63 million, an increase of 20.08% over the end of 2009.

t the end of 2010, numbers unemployed reached almost 320,000 and the unemployment rate climbed to 18.8% the highest since March 2005. Over the full year, unemployment stood at a higher level than in 2009. This is confirmed by the average unemployment rate, which stood at 17.6% in 2010 and 14.9% in 2009. The higher unemployment rate in 2010 was a consequence of the real sector still not having recovered. Considering the labour market responds one to two quarters later to activities in the real sector, the unemployment rate is certain to continue through the first quarter of 2011. More favourable movements and any halt in negative trends are not expected before the end of the second quarter. They will be influenced by the basis effect, seasonal growth of employment and slightly more intense economic activity. Yearon-year, we expect a higher average unemployment rate than in 2010. It will range around 18.5%, opine RBA analysts. As with Croatia, unemployment grew in most regional countries, affected mainly by seasonal activities. The fact that countries within the Central and Eastern European region which exited the recession, have still not recovered, points to a very sensitive labour market. Moreover, the recovery remains unstable on labour markets in developed countries (USA and Germany). We can thereby anticipate that unemployment in Croatia will remain the focal point during the entire year, conclude RBA analysts. (V.A.)

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Slatinska bank profit decrease by 60% Slatinska bank achieved an after-tax profit of €0.32 million in 2010, some 60% lower than 2009, according to a preliminary unaudited financial report issued at the Zagreb Stock Exchange. Total bank assets increased to €0.17 billion, an increase of some 13%. Loans to financial institutions were more than halved from €7.19 million to €3.36 million, whilst other client loans increased from €82.85 million to €86.71million.

More favourable movements and any halt in negative trends are not expected before the end of the second quarter

Ingra redeem two tranches of commercial paper Ingra has announced the successful redemption of the 9th tranche of commercial paper with a nominal value of €7.06 million and the 10th tranche of commercial paper with a nominal value of €3.01 million. Both tranches matured on 28th January 2011 and have been redeemed in part through receivables conversion into core capital and in part by issuing new tranches. On 25th January the 13th tranche was issued totalling €3.676 million with a maturity date of 24th January 2012, and the 14th tranche amounting to €1.64 million with maturity date of 26th July 2011.


www.privredni.hr Business & Finance Weekly

WE PRESENT 7

OSKAR, CENTRE FOR DEVELOPMENT AND QUALITY, ZAGREB

KORONA, RIJEKA

Innovative waste water filters The production of filters for faecal waste water, fat-separators for restaurant kitchens and of food industry facilities

Quality an imperative The company promotes a broad range of training possibilities in business skills and specialist knowledge through teaching modules he Oskar Centre for Development and Quality is a Zagreb company organising Postgraduate Specialist Programme for quality managers, consulting and seminars in various business fields, mainly management quality promotion oriented and focused on management system building and

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leadership. The company has a subsidiary, the Ros-Kar Centre for Development and Quality in Sarajevo and co-operates with partner companies in Belgrade and Moscow. Programmes are organised according to the European Organisation for Quality (EOQ) harmonised scheme. “Oskar Edukos, an institution for staff certification, and EOQ have been business partners since 2005 when Oskar Edukos became a certified PRU (Prudential) agent for Croatia. Oskar Edukos’s mission is the regular

monitoring of current and future clients’ growing expectations and their satisfaction with the services provided. The work quality is guaranteed by The National Accreditation Service regular annual supervision (HAA) and EOQ supervision”, pointed out Anita Bešker, Head of Training and EOQ accredited agent for Croatia. In addition, Oskar has specialised in advanced higher education staff training in order to provide comprehensive support to private individuals and institutions in applying contemporary management methods and knowledge to training quality management. Optimal tuition impact Oskar offers a broad range of business skills and business knowledge advanced training possibilities through teaching modules consisting of a balanced combination of theoretical cognition and interactive sessions. “The training is adapted to participants’ background knowledge levels in the field of business training, whilst tuition groups are optimal tuition-cycle impact-oriented both by the work method and by their size. Lecturers are prominent professionals holding European quality organisation certificates in management in various professional fields”, added Anita Bešker. (J.V.)

aste water filters are an important element in the design of facilities, around which rain carries waste oil, detergent and other hazardous substances into the ground. Investors are interested in efficient and cost-effective filters. This market niche was discovered by the company Korona from Rijeka, which has been producing and designing filters for waste water from rainfall, technological and industrial origins, since 1992. They also produce filters for faecal waste water, fat-separators for restaurant kitchens and facilities of the food industry. Their equipment is suitable for the chemical treatment of waste water of laundrettes, concrete factories and similar facilities. In 2009, they were awarded the Zlatna kuna from the CCE from Rijeka for their innovative products, which are ISO 9001 certified. Separators of oily water from Korona ISU are used by many plants and parking spaces of shopping centres and car showrooms, petrol stations, carwashes and boats. Fat and oil separators can

W

be found in hotels, restaurants, slaughterhouses, fish processing plants, butcheries and dairies. Their Bio module, which represents a contemporary substitute for septic tanks are installed in many facilities along the coast which are unable to connect to a public sewage system. €0.62 million income Korona has so far delivered around 2,500 different filtering systems. These devices are characterised by low investment expense, easy fitting, low maintenance costs, whilst processed water is not hazardous to underground waterways. The company was established by engineer, Tomislav Knežević. It employs 10-12 workers, depending on market activities. During the past two years, their income has been around €0.62 million, with profit between 10% and 12%. They aim to compensate for reduced investment in construction through finding new customers in Croatia and abroad and with a new emphasis on their product quality. (I.V.)


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Privredni vjesnik Year IV No 0138

CULTURE IN TOURISM

Zagreb as cultural and tourist Mecca At the exhibition Art Deco – Art in Croatia between two World Wars, open until the end of April visitors will be able to see over 600 exhibits Furthermore, exhibits include ball gowns, shoes and items from everyday use.

Sanja Plješa t is known that tourist trends have changed. Visitors now ask for higher added value when they travel. Even though Croatia is a popular tourist destination, people have recently become more aware of what should be offered to tourists. More attention is being paid to cultural events, and one such important event is the recently opened exhibition Art deco – Croatia be-

I

tween two World Wars in the Museum of Arts and Crafts (MUO) in Zagreb. The exhibition will be open until the end of April, and visitors will be able to see over 600 exhibits from the collection of MUO and several other museums. In their own specific way, the exhibits describe life in Croatia between two World Wars. Art Deco was a global phenomenon as an urban response to the syndrome of provincialism. A so called rich life developed in

cities at that time, but was unrealistic, since the world was shaken by enormous economic problems in wartime. Although this period was quite unfamiliar in Croatia, many experts agree that art deco is not a style, but a definition of a certain spirit of the times. During the next three months, visitors will also be able to see paintings by Marijan Trepše, Sergije Glumac and Sava Šumanović, with their original blends of differing styles into a single unification.

Promotion in neighbouring countries The “star” of the exhibition is drawing much visitor attention – the Peugeot 201 convertible, on loan from a French museum. Other exhibits have been loaned from museums, but also from private collectors from Dubrovnik, Klanjec, Koprivnica, Križevci, Opatija, Rijeka, Split and even Belgrade, from where caryatides by sculptor from Korčula, Frane Kršinić, arrived, according to Vesna Jurić Bulatović, head of marketing and PR in MUO. Within the context of a total cultural and tourist offer, this exhibition is tempting for local and foreign visitors, who are beginning to view Zagreb as a contemporary cultural and tourism Mecca. The Vienna Tourist Association recommends Austrians to visit the exhibition, and great interest has been shown in neighbouring countries. A special promotion of the Zagreb exhibition will soon be held throughout these countries.

First Croatian wind power plant Recently, Končar marked 90 years of operations by signing an agreement with the Bank for Reconstruction and Development and Zagrebačka banka. The agreement concerns the construction of a wind power plant near Dugopolje. The plant will have 15 power units of 1 megawatt and one of 2.5 megawatts. Total investment is valued at €34.50 million, with €10.96 million having already been invested.

Croatia an important partner for Japan Croatia is faced with two types of crises. In addition to the cyclic one, mostly caused by the global financial crisis, it is also faced with a deep structural crisis, a tougher one to fight, pointed out the Japanese ambassador in Croatia, Yoshio Tamura, at a lecture held in the Croatian Chamber of Economy. According to Tamura, it is of extreme importance for Croatia to solve these structural problems in order to

achieve sustainable growth, even with the help of drastic measures. However, in order for these measures to influence the stabilisation and development of the economy, their speedy implementation is of the utmost importance.

::: news Sea traffic surveillance in trial phase The Vessel Traffic Management Information System (VTMIS) was commissioned for its trial work. It should guarantee fewer accidents, improve search-andrescue and offer more efficient intervention in cases of pollution. The system is organised in three regional centres and its full operating application is scheduled for January 1, 2012. The system includes 10 radar stations, valued at roughly €5 million.

PV International 0138  

PV International - The first weekly newsletter covering the Croatian economy as well as that of the wider region, in English

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