12 WE WANT A MORE 28 WE’LL CONTINUE 44 HARD WON RESULTS 56 WE EXPECT THE SUCCESSFUL, EFFICIENT LEADING A RESPONSIBLE SHOULD BE CAREFULLY GOVERNMENT TO AND WEALTHIER SERBIA MONETARY POLICY DEFENDED CONTINUE REFORMS

JORGOVANKA TABAKOVIĆ, SEBASTIAN SOSA, DIMITRIJE KNJEGINJIĆ, ANA BRNABIĆ, Prime Minister Governor of the National Bank of IMF Resident Representative Vice President of the Foreign EDITOR Of The Republic Of Serbia Serbia, NBS for Serbia Investors Council and Lafarge Tanja Jakobi Serbia CEO 16 FAITHFUL TO ITS 32 WE WANT TO SEE 50 WE ARE ART DIRECTOR PRINCIPLES AND SERBIA IN THE EU COMMITTED TO THE 58 RESULTS CONFIRM Branislav Ninković MISSION SERBIAN MARKET BUSINESS MODEL’S QUALITY PHOTOGRAPHY Zoran Petrović

COPY EDITING Mark R. Pullen

TRANSLATIONS Halifax Translation Services [email protected]

PUBLICATION MANAGER Neda Lukić, [email protected] GENOVEVA RUIZ CALAVERA, YANA MIKHAILOVA, Director for the Western Balkans WITH SPECIAL THANKS TO President of the Foreign at the Directorate-General for IGOR SEMENYCHEV, MARIJANA VASILESCU, Ana Firtel, Executive Director of the Foreign Investors Council and Regional European Neighbourhood Policy General Manager of LUKOIL President of the Executive Board Investors Council Director of Nestlé Adriatic and Enlargement Negotiations of SERBIA AD, Head of the Balkan of Sberbank Srbija Milica Ðorđević, Communication Officer of the Foreign Investors Council the European Commission Regional LUKOIL Organisation Bogdan Terzić, Office Assistant of the Foreign 20 WE'VE MADE MAJOR 60 SERBIA HAS YET Investors Council STEPS IN BUILDING 36 SERBIA MUST 52 A UNITY IS OUR TO REALISE ITS INFRASTRUCTURE ADDRESS STRENGTH POTENTIAL PROJECT MANAGERS “TRANSITIONAL GAPS” Biljana Dević, [email protected] Nevena Đurković, [email protected] Vesna Vukajlović, [email protected] Nataša Trifunović, [email protected]

BUSINESS SECRETARY Svetlana Petrović, [email protected]

FINANCIAL MANAGER Dragana Skrobonja, [email protected]

EXECUTIVE DIRECTOR Maja Vidaković, [email protected] ZORANA MIHAJLOVIĆ PHD, Deputy Prime Minister and DANIEL BERG, ERNST BODE, GENERAL MANAGER Minister for Construction, EBRD Director for Serbia INGEBORG ØFSTHUS, Executive Director Messer Ivan Novčić, [email protected] Transport and Infrastructure Vice President of the Foreign Tehnogas AD 40 WE SUPPORT THE Investors Council and Telenor PRINTING 24 WE’LL CONTINUE GOVERNMENT IN KEY Srbija CEO 61 WE WANT TO BE AMONG Rotografika d.o.o. Segedinski put 72, Subotica ALONG THE ROAD OF REFORMS THE REGION'S KEY REFORM 54 BALL CONTINUES PLAYERS FOREIGN INVESTORS COUNCIL OF SERBIA INVESTING IN SERBIA - FIRST 15 YEARS

PUBLISHER alliance international media in collaboration with the Foreign Investors Council of Serbia

Makenzijeva 67, 11000 Beograd, Srbija Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: [email protected] www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2016. THOMAS LUBECK, GORAN KNEŽEVIĆ, IFC Regional Manager for the BRANISLAV SAVIĆ, Economy Minister of the Western Balkans and Central Plant Manager, Ball Packaging JELENA GALIĆ, Republic of Serbia Europe Europe CEO at AIK Bank

6 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS

62 WE’VE PRESERVED 71 SIGNIFICANT PROGRESS 81 EDUCATION IS 84 HOW TO ACHIEVE A 88 IMPROVEMENT OF UNITY AND ACHIEVED KEY TO AN ATTRACTIVE CLEAN, SAFE AND LAWS AND PRACTISES INDEPENDENCE WORKFORCE HEALTHY ENVIRONMENT REQUIRED IN SERBIA

MILICA STEFANOVIĆ, President of the FIC Food & IVAN GAZDIĆ, ANA FIRTEL, Agriculture Committee (The DEJAN JEČMENICA, IVAN LAZAREVIĆ, President of the FIC Real-Estate Executive Director of the Foreign Coca-Cola Company-Barlan President of the FIC Human Company Manager at Ecolab, Committee (Bojović & Partners Investors Council S&M d.o.o.) Resources Committee (Wiener District Manager Food and a.o.d. Beograd) Städtische osiguranje Beverage Industry at Ecolab 64 FOCUS 72 EASE INVESTORS’ (Insurance) a.d. Belgrade) 89 THROUGH DIALOGUE TO ACCESS TO THE 86 NEW LEGAL SOLUTIONS BETTER TAX POLICIES 68 JOINT ENGAGEMENTS TO DOMESTIC MARKE TO BETTER REGULATING EVEN BETTER RESULTS 82 BETTER APPLYING OF OF THE MARKET LAW REQUIRED

DR NEMANJA ALEKSIĆ I DRAGAN DRAČA, IVANA MARAŠ, Predsednik Poreskog Lawyer, Aleksić and Associates odbora President of the GORAN PEKEZ, Joint Law Office, Novi Sad VLATKO SEKULOVIĆ, FIC Taxation Committee President of the FIC Anti-Illicit Sekulović Law Office DUŠAN LALIĆ, (PricewaterhouseCoopers d.o.o) Trade Committee 74 PROMOTING A President of the FIC Leasing and (JT International a.d. Senta) SUSTAINABLE BUSINESS Insurance Committee (Generali 90 POTENTIAL OF INDUSTRY ENVIRONMENT FOR 83 AMBITIOUS GOALS OF Osiguranje Srbija a.d.o.) YET TO BE EXPLOITED 70 NEW TECHNOLOGIES 15 YEARS NEW COMMITTEE WILL CREATE NEW The Foreign Investors 87 WE FIGHT FOR OUR VIEWS BUSINESS MODELS IN Council WITH THE POWER OF SERBIA ARGUMENT 80 WE‘RE GROWING TOGETHER WITH THE ECONOMY

MARKO JOVIĆ, President of the FIC ĐORĐE POPOVIĆ, Telecommunications and IT President of the FIC Committee (Vip Mobile d.o.o.) Infrastructure and JASMINA VIGNJEVIĆ, Industrialisation Committee MIHAJLO ŽIVKOVIĆ, 91 OFFICE WITH DOORS President of the FIC Digital and DEJAN VUKOTIĆ, (Petrikić and Partneri a.o.d., in President of the FIC Legal Visiting the Executive Office E-Commerce Committee CEO of the Serbian Export Credit cooperation with CMS Reich- Committee (Societe Generale of the Foreign Investors (Telenor d.o.o.) and Insurance Agency - AOFI Rohrwig Hainz) Banka Srbija) Council

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8 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 9 COMMENT Values Of Public-Private Dialogue At a juncture when the Serbian Government is launching short-term measures to accelerate economic growth, sight shouldn’t be lost of two important lessons learned from the last three years. One is that patient work on reforms yields tangible economic results, while the other is that constructive dialogue between the government and the business community has made Serbia a better place for investing and doing business.

erbia has recorded a significant slowdown in the growth investors that have brought export-orientated production to Ser- of social product in the first two quarters of this year. After bia and contributed to the improvement of the business climate, several years in which GDP grew above expectations, such which, judging by the results achieved, has favoured all compa- a turnaround leads to consideration of whether this is an nies, both domestic and foreign. Sunfortunate combining of numerous independent factors – a bad Solid progress in this field is largely the result of a differ- year for the power industry, a long strike in the leading exporter ent relationship between the government and the private sec- and drying company – or whether bad results point to Serbia’s eco- tor. Even though it still happens today that some regulations are nomic growth facing serious systemic obstacles. amended without consultation with the sector of the economy, The government's attention is currently focused on short-term there are considerably fewer such cases than before. Open and measures to incentivise GDP growth, primarily to accelerate capital constructive dialogue with the business sector, based on reliance investments, as potentially the strongest and highest quality engine on the expert capacities brought by companies that operate here of economic activity. In the long run, economic growth must primar- and the organising of high-quality discussions and argument- ily rely on the growth and development based debate, have contributed to re- of the private sector of the economy. The export performance of the Serbian moving some enduring obstacles. The reasons for the slowdown in One of the pioneers in creating space GDP growth highlight the important economy has improved primarily thanks for this dialogue between the public and characteristics of the Serbian economy to a proactive relationship with foreign private sector is the Foreign Investors that can only be addressed through ded- investors that have brought export- Council, which this year marks 15 years icated work. One of these characteristics of its existence and 14 years of publish- is the unfinished reform process in pub- orientated production to Serbia and ing the annual White Book, which is a lic companies, the second is an export contributed to the improvement of the kind of testimony to the transition path structure in which a few large compa- business climate of the Serbian economy. nies still determine total export perfor- At the start of the year, based on mance, while the third is the high vulnerability of the economy to the initiative of the government, or rather its then prime minister, atmospheric conditions and its low resistance to external shocks. a working group was formed between the Government of Serbia Various Serbian governments from the beginning of the transi- and the Foreign Investors Council, which, through six sub-groups, tion process to this day have tried with greater or lesser success thematically addresses identified problems precisely targeted in to respond to the economy’s observed structural weaknesses. The the domain of tax policy, labour legislation, inspections and food last three years have seen encouraging shifts made in regulating safety, real estate and construction, e-business, bankruptcy and the situation in public companies, among other things also because foreign exchange operations. the government decided to rely on professional and financial as- The objective that has been set is to annually adopt 50% of sistance from numerous international financial institutions. The recommendation contained within the White Book. Even if this job, however, is not done and undoubtedly needs to be addressed objective is not met in the first year of work, the willingness to regardless of whether or not Serbia decides to conclude a new ar- work on these issues provides hope that the problems slowing rangement with the International Monetary Fund. down the growth of the Serbian economy will be addressed even The export performance of the Serbian economy has im- on the broadest reform front and on the ground where the de- proved primarily thanks to a proactive relationship with foreign sired GDP growth is actually realised. ■

10 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS

INTERVIEW We Want A More Successful, Efficient And Wealthier Serbia

ANA BRNABIĆ Prime Minister of the Republic of Serbia

This government is continuing to build on the foundations set by its predecessor and opening new doors for economic growth through the digitisation process. This is a key condition that will enable faster growth in the competitiveness of the economy and more innovations, and a different relationship between the state and its citizens

Serbia’s credit rating also improved. At the end of June, we had a surplus of 44.1 billion dinars at the general government level, despite a projected deficit of 36 billion. Likewise, public debt is falling faster than expected and was at the level of 65.7% at the end of June. In the period ahead we will focus on better execution of capital investments and, considering the positive state of the budget, we will also consider which capital projects we can start this year, although they were not planned. During the term of this Government we will strive to further reduce unemployment, which is already down, to the level of the European Union. All this testifies to us today having healthy public finances, and a stable and predictable macroeconomic environment. What is espe- cially important for us and for investors is that these positive trends are sustainable and that this government is continuing to build on the foundations set by its predecessor, as well as starting to seek next steps of the government, and specifically regarding growth in some non-traditional areas, in order to create some new digitisation,e spoke with dialogue Prime with Minister the business Ana Brnabić community about and the perspectives for Serbia and all of its citizens. Weducation reform. ► What do you consider as the biggest systemic obstacles to ► How would you assess the overall macroeconomic environ- further strengthening economic activity, domestic and foreign ment in the country? Which measures does the Government in- investments, and exports, and how will the government address tend to use to help accelerate economic growth? them in the period ahead? – Thanks to reforms and fiscal consolidation measures that were – We are led by the principle that the state should be a partner of implemented during the previous government’s term, Serbia has, the economy and we are aware that unclear, often complicated and for the first time after 10 years, received a prime minister whose slow procedures deter numerous investors, whether domestic or mandate begins with the state coffers in good order. Macroeconomic foreign, and cause difficulties for people with excellent business and fiscal stability have been achieved, conditions for doing business ideas to start doing business. have improved significantly, as evidenced by Serbia's advancement An efficient state administration and simplified procedures are on the World Bank’s Doing Business list by as many as 32 places, crucial to removing the barriers faced by the economy when com- which we achieved last year. Also contributing to the improvement municating with the public administration, and in this process dig- of the investment climate was inflation remaining within the envis- itisation must play an important role. It will enable businesspeople aged boundaries and the dinar maintaining a stable exchange rate. to complete many jobs with the state swiftly and efficiently, using the

12 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS CONTINUITY DIGITISATION DIALOGUE What is especially important for us and for Digitisation will enable A dialogue with investors and the business investors is that these positive trends are businesspeople to complete many community will remain among the priorities sustainable and that this government is jobs with the state swiftly and of the Government I lead, to more easily continuing to build on the foundations set efficiently, using electronic services achieve our common objective – a successful, by its predecessor. we’re developing. efficient and wealthier Serbia.

electronic services that we are developing. For example, many pro- strengthening the entrepreneurial culture, which is why the Gov- jects related to improving conditions for doing business have already ernment will consider incentives for newly founded enterprises, been launched, the E-Taxes system has started operating, we will soon innovative companies, and a set of benefits for IT companies that finalise e-health booklets, the Government adopted the draft Law on invest directly in education. E-Commerce and forwarded it to the Assembly. This is the basis for When it comes to foreign investments, we are already working on finally introducing electronic archives, assimilating paper and elec- the development of road and rail infrastructure, creating efficient tronic documents, and many other things that will greatly ease the state administration by simplifying procedures, which, along with the work of the administration and reduce the costs of doing business. very good and highly qualified workforce that we already possess, are One thing that we need to promote more quickly and that we all the main preconditions for attracting new investments and encourag- have to work on together is strengthening the rule of law and a more ing existing investors to invest additionally in our country. efficient judiciary. This is essential for us to ensure greater legal se- We have also embarked on reforming the education system, in or- curity for business operations in Serbia. This is certainly also some- der to make education that is adequate for the 21st century. We are thing that’s an important factor in our European integration, and the introducing dual education, IT as a compulsory subject in primary Government will continue working on it with dedication. schools and raising the capacities of colleges. I see this as an essen- tial point that will provide our country with long-term, dynamic, ► How do you now, with the insights gained as state admin- sustainable development. istration minister and in the position of prime minister, view the possibilities for the state to be able to meet the economy’s demands for reduced tax burdens, fewer administrative proce- dures, and a reduction in the level of corruption? – The good fiscal results we achieved last year and this, which have improved our economic ambience, have created space for us to be able to consider reducing the tax burden for the economy. Serbia is still in an arrangement with the IMF and maintaining fiscal stability and reducing public debt is our priority, but at the same time we are also focused on those things that could generate stronger economic growth next year and in 2019. We are working on analyses of how we can reduce taxes on earn- ings and some other taxes, how to improve and stimulate non-cash payments, while it is important for the Finance Ministry to complete work on the Law on Charges. These things will contribute to the struggle against the grey economy, as well as fewer general imposi- tions on the economy. As I have already said, digitisation, within which I always also mean the introduction of e-government, is a key lever for the continuation of economic growth, and that's why we’ve already started simplify- ing procedures and reducing administrative barriers, and making it One thing that we need to promote more easier for businesses to fulfil their obligations towards the state. quickly and that we all have to work on

► What can Serbia do, and what does it intend to do, to improve together is strengthening the rule of law the business environment and attract investments with higher and a more efficient judiciary added value? – In the previous period, the Serbian government has seriously ap- proached analysis of measures aimed at creating a better business ► You’ve stated that digitisation in all economic segments is environment, taking into consideration best practices from the re- one of the new government’s priorities. In which sectors do you gion and worldwide. Even despite the shift on the "Doing Business" see room for the fastest growth of digitisation? list, we are aware that there is still room for improvement, because – Digitisation must be a continuous and comprehensive process our goal is for Serbia to be recognised as an attractive country for that will encompass different spheres of society. It will change our investment. lives fundamentally. My goal is for citizens and businesses to be at A stimulating tax policy is a very important factor in support- the centre of electronic administration, to no longer be couriers of ing an innovative ecosystem, through tax incentives for innovation, the state, but for them to become their service. This is a key condi- development, export, the development of entrepreneurship and tion that will enable faster growth of the competitiveness of our

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 13 economy and more innovations, a different relationship between government, which, besides myself, as prime minister, would include the state and its citizens. the director of the Office for IT, the directors of the IT sectors of all With this in mind, the Government of Serbia has established the state bodies, representatives of universities, the economy and non- Office for Information Technologies and Electronic Administration; governmental organisations. So, we will include all segments of soci- we are strengthening IT programmes and capacities in schools with ety, because digitisation is an inclusive and comprehensive process. which we prepare the youngest generation for the future, while As of the beginning of this year, 6.7 million documents became we’ve extended quotas for IT studies by more than 700 places. available in electronic form, which will save citizens six million hours We provide support for the development of the digital economy, of waiting at counters and require them to pay as much as 245 mil- create conditions for the digitisation of the entire society, and we also lion dinars less per year for various charges. We are investing in IT plan to invest tens of millions of euros in infrastructure. education and working on legal regulations that will ease the launch- In this way, we will change the way of thinking that inhibits crea- ing of private IT business; we are also working to improve the system tivity, and we will teach young people not to give up when they en- for linking institutions and information exchange, as well as on estab- counter obstacles, rather to believe in themselves and go out of their lishing a cyber security centre. way to realise their ambitions. To fight Through the digitisation process, the and seek solutions, instead of seeing only state administration becomes a true ser- obstacles. That’s a long journey and I am vice for citizens and businesses, and by determined for us to make it together. investing in IT we want to show that this sector has great importance and a huge ► Are the existing education system role to play in the country’s development. and the level of digital literacy of those We can’t be competitive in the 21st cen- already employed ready to respond to tury with counters and stamps. the challenges of e- and m-government? In your opinion, how is the quality of – Creating new experts is one of the pri- public-private dialogue? In this context, orities of this Government, and the key how would you assess the contribution for that high-quality education that en- of the Foreign Investors Council to this courages innovation and critical thinking, dialogue over the last 15 years? and provides young people with skills Conditions for doing business in Ser- they can apply easily. bia have improved considerably over Teachers have already passed the appli- the last three years. Public finances are cable internet training for the preparation under control, and the macroeconomic of IT classes, which become mandatory in environment is stable and predictable, the fifth year. This training will continue which is important for businesspeople into next year for teachers who teach in and for increasing investments. primary school, while by September all The dialogue between the business schools will be connected through the community and the Serbian government academic broadband network of Serbia. is very important and such invitations It’s important we restore confidence in should always be answered positively, the education system and that’s why we as this is one way of continuing to solve offer it support in every way, in order for the problems faced by businesses in their personnel employed there to be ready for everyday operations. For me, dialogue is new “e-challenges”. The good fiscal results we crucial, because even when we don’t agree, I would like to use this opportunity to achieved last year and this have we still need to talk. I believe that con- thank all companies and civil society or- structive dialogue and conflicting stances ganisations that helped the Government created space for us to be able to always yield the best solutions. and the Ministry of Education to complete consider reducing the tax burden The Foreign Investors Council has been this important work. Without the partner- a significant partner of the Serbian Govern- ship with the economy and the civil sector, for the economy ment all these years, capable of recognis- many of the novelties being launched in ed- ing and supporting economic policy, while ucation in Serbia in terms of digitisation would not have been possible. at the same time helping us, with its opinions and research results, to face everything hindering the business world and how we can work ► What tangible steps does the Government intend to take in together to improve the business environment. the field of digitisation aimed at providing a favourable environ- A dialogue with investors and the business community will remain ment for the efficient development of digitisation in Serbia? among the priorities of the Government that I lead, in order for us – As a society, we must step up to meet changes that will accelerate to more easily achieve our common objective – a successful, efficient our accession to the group of developed economies, and great poten- and wealthier Serbia. tial for faster development lies in digitisation. The government has I would like to thank all members of the Foreign Investors Council already taken certain steps, namely by raising the level of the Ministe- for understanding that reforms often go slowly, but also for recognis- rial Council for Innovative Entrepreneurship and Information Tech- ing that the Government has sincere intentions and is working with nology to a higher level, the level of the prime minister. devotion every day on implementing them and changing Serbia for The Office for Information Technology and Electronic Administra- the better. Thanks for criticism that’s always constructive and helped tion has been established, as the centre of functioning in the Govern- us to advance faster and change all segments of our society. Only to- ment, and we also intend to set up a Coordination Body for IT and e- gether can we be successful. ■

14 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 15 INTERVIEW Faithful To Its Principles And Mission

YANA MIKHAILOVA President of the Foreign Investors Council and Regional Director of Nestlé Adriatic

Since its establishment in 2002, the Foreign Investors Council has remained faithful to its principles - transparency, equality and predictability. Today, as in the past, the FIC promotes a predictable and clear business environment that provides equal opportunities for all, as well as sound business ethics

exports. If we know how important it is for Serbia to be competi- tive and resilient, this export share is very important. FIC member companies account for 18% of Serbian state revenue from corpo- rate income tax and directly employ more than 94,000 people. And if you ask me why the FIC is still growing and developing succe- ssfully, I would say it is because it has strong founding principles e spoke with Yana Mikhailova, President of the - transparency, equality, predictability and a clear purpose. Foreign Investors Council and Regional Director Let me cite some more data about the FIC’s development. In- of Nestlé Adriatic, on the occasion of the FIC’s 15th vestments grew by €5.2 billion in the past year, while the direct anniversary. share of GDP increased by 3.7% in the last two-year period, based W on further growth and the inflow of new members. This growth ► The Foreign Investors Council celebrates its 15th anniver- highlights the FIC’s capacity. It also corroborates the FIC message sary this year. How did it look at the beginning, and how does that foreign investors, FIC members, which are developing opera- it look today? tions in Serbia, have long-term interests in the country. The con- – The 15th anniversary is a remarkable milestone for the Foreign sistency and long-term development programmes of FIC member Investors Council. The FIC was founded with an important purpo- companies help the Serbian economy to evolve and increase its se of improving the business environment in Serbia and helping competitiveness. its member companies and its organisation to grow, and becoming Serbia’s partner for growth. The Council was founded in 2002 by ► What has marked the FIC’s work in the previous period? 14 major foreign investors that were then present in Serbia, with – We have many ongoing activities, but it is worth mentioning the support of the OECD Investment Compact SEE. It today com- that a joint FIC-GoV Task Force was established on 31st January. prises over 130 companies, accounting for investments exceeding This initiative was launched after the presentation of the White €28.7 billion. Our share of GDP is 21.7%, and 22.2% in Serbian Book, during discussions with government officials and the then

16 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS PRINCIPLES STRENGTH GROWTH The main principles of the Foreign Firstly, the FIC is an independent association The continuation of growth, both within Investors Council are transparency, that has solid expertise and solely promotes a our companies and within the FIC as a equality and predictability. Our unified voice of more than 100 entities, whose whole, is our key objective. We believe this power resides in being faithful to operations depend on the development and will benefit the Serbian economy and its these principles. growth of the entire Serbian market. citizens and society.

companies. I also want to emphasise that the FIC is one of few or- is to define concrete measures and implement recommendations ganisations whose opinions and proposals are public and easily fromPM, Aleksandar the White Book,Vučić, asnow well president. as following The the goal implementation of this task force of accessible to all, notably via the White Book project. those measures. More concretely, the task force’s goal is to impro- ve the implementation of FIC White Book recommendations and achieve 50% progress on an annual basis, instead of the previous average of 35-45%.

► How does this working group function operationally? – The Task Force is led on the governmental side by Deputy

relevant ministries, FIC members, the FIC Board and the FIC executivePrime Minister director. Zorana The Mihajlović task force and has includes six expert members sub-groups, of six comprising FIC committee chairs and representatives of the state administration, and deals with FIC priorities like taxes, la- bour, inspections and food safety, real estate, e-commerce and e-government, bankruptcy and Forex. The outcome of this work has to have a positive impact on the business environment, by making it either clearer or more compact.

► What targets has the Task force set for itself in the first year of operations and how measurable will they be? – The FIC prepared a work plan proposal concentrating on six key areas and predominantly suggesting activities that can be execu- ted swiftly, mainly by changing the opinions of ministries or go- vernment decisions. The next edition of our White Book, due in November this year, will track the success rate of this joint endea- FIC members’ investments grew by €5.2 vour. In the case that it works, it makes sense to continue somet- hing that yields good results. billion in the past year, while the direct share of GDP increased by 3.7% in the last ► What are the key principles that the FIC’s activities initia- two-year period, based on further growth lly relied on and rely on today? – The main principles of the Foreign Investors Council are tran- and the inflow of new members sparency, equality and predictability. The power and credibility of the FIC lies in it being faithful to these principles. The FIC promo- ► Has the FIC changed internally in accordance with changes tes a predictable and clear business environment, which provides in the economic milieu of Serbia and, if so, how? equal opportunities for all and abides by these principles in its – Throughout these 15 years, the capacity and capability of the work. It promotes the principles of sound business ethics, setting FIC has grown consistently. The number of committees even the example of solid governance both via FIC operations directly grew significantly during 2016, with the FIC deciding to expand and members' operations indirectly. the number of working committees from 8 to 10 and increa- se the number of employees to six. This direction immediately ► How does the FIC differ from other investor associations? gave results, with the number of committee growing by 32% to – First, the FIC is an independent association that has solid exper- 111 activities, compared to 84 in 2015. tise and solely promotes the unified voice of more than 100 enti- ties, whose operations depend on the development and growth of ► What has been the FIC’s key contribution to reform efforts the entire Serbian market. This is the united view of all member in Serbia?

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 17 – The FIC has been supporting Serbia's transition by providing for legal certainty that will benefit not only big investors, but also the Government with concrete suggestions, based on the joint medium-sized and small investors too. experiences of member companies. Judging from the feedback of members and stakeholders, the FIC has been one of the key ► How do you see the future of public-private dialogue, given reference points in creating a better business environment. The the experience gained to date? FIC owns a success barometer – the White Book shows that many – More than a decade after its establishment, we can say that all of the initial FIC recommendations (from 2003/4) have been ful- Serbian governments have been receptive and open to hearing filled. It is important to mention that similar reforms have been the positions of foreign investors on the business climate. The FIC promoted by other stakeholders, so the FIC cannot take full credit welcomes all opportunities provided to date to be part of consul- for their implementation. We respect all efforts of all stakeholders, tations about drafting important laws and changes to regulations. both public and private, who wish to contribute to the same pur- This is a big deal, because the capability of having this dialogue pose, making Serbia a better place to do business. demands competence and maturity from both sides, public insti- The key difference with the FIC is that general statements are tutions and the private sector, both business and the government. followed up by tangible and joint proposals of FIC members on The level of our dialogue has grown substantially. So, we can talk, how to overcome concrete business climate issues. we can be heard, we can agree or disagree – but the willingness to have a dialogue is very, very good. It is important ► What do you see as the key challen- to be persistent in changing, and to ensure that ges of the Serbian economy today that these changes are well guided and executed. But the FIC can contribute to significantly this part of the changes is usually more compli- with its expertise? cated. This may not necessarily be due to a lack – The FIC has three main expectations. of will, but rather due to the complexity of tran- First, that important structural reforms sition and the challenge of building the institu- – especially the privatisation and corpo- tional capacity to apply a new legal framework. ratisation of state-owned enterprises – will be accelerated. As we always state, it ► In this context, how do you see the future is important to make a more level busi- of the FIC and its involvement in the reform ness environment. Another expectation process? is law enforcement. We expect missing – We will continue to promote a sustainable institutions to be created, and clear pro- business environment through an open dia- cedures and guidelines to be establis- logue with the authorities and other relevant hed. Cutting unnecessary bureaucracy is stakeholders. Moreover, the FIC will continue also important. I think the government to be a private sector focal point in the EU ne- already has a great interest in moving gotiation process, as we have a unique capabi- in that direction through e-government lity to support the process of EU integration, and m-government. This will certainly The goal of the FIC-GoV Task Force with over 75% of FIC members coming from cut the massive bureaucracy, modernise is to improve implementation of the the EU and other members having a footprint institutions and create new competen- on the EU market. Whatever we do, we will ces. People working in the administra- FIC White Book recommendations do it to make the Serbian economy more resi- tion will be more efficient when they and achieve 50% progress on lient, more competitive and more investment receive sufficient training to deal with friendly, for the benefit of companies opera- the changing context. The focus should an annual basis, instead of the ting here, but above all for the benefit of all the be on those responsible for market sur- previous average of 35-45% people who live in this country and for Serbian veillance, such as the Tax Administrati- society as a whole. on and inspections. We also expect Serbia to continue the efficient harmonisation of domestic laws with the EU Acquis. ► What kinds of tasks lie ahead for the FIC leadership and your members? ► Will the changes you advocate for also benefit domestic – The FIC’s priorities and agenda need to remain relevant at all ti- investors and the local business community? mes. We target having more members who are not only willing to – There are not that many difference between foreign and dome- join the FIC, but are also interested in contributing – through their stic investors, except the origin of their capital. All companies here active participation in FIC committees - to making Serbia a better operate as Serbian legal entities. The FIC advocated for years for place to do business. The continuation of growth, both within our a level playing field, and that means for equal business conditions companies and within the FIC as a whole, is our key objective. We for all investors, regardless of whether they are domestic or fore- believe this will benefit the Serbian economy and its citizens and ign. We want an investment-friendly environment. I think this is society. We are ready to continue contributing to the growth of the relevant to any investor – whoever that might be. We also advoca- Serbian economy, as we have already done to a great extent – the te for the predictability of the business climate as a precondition aforementioned figures about the FIC speak for themselves. ■

18 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS

INTERVIEW We've Made Major Steps In Building Infrastructure ZORANA MIHAJLOVIĆ PHD Deputy Prime Minister and Minister for Construction, Transport and Infrastructure

We have shown that we are ready to tackle the most challenging issues such as the reform of public enterprises, building roads and improving railway services. Cooperation with the private sector allows us to test our decisions in practice

Prime Minister and Minister for Construction, Transporte spoke with and Infrastructure Zorana Mihajlović about PhD, the Govern Deputy- Wment's and the ministry's current reform tasks. ► Will the new government be strong enough to carry out the most challenging part of the reforms, the part that will not be completed before the arrangement with the IMF has expired, primarily the restructuring of public enterprises? –The reform of public enterprises, or rather the profession- alization of public enterprises, is We have unbundled Serbian the most important part of the The question is not whether we have the Railways into a holding company comprehensive economic reforms with three subsidiaries: Railway launched in 2014 when Aleksandar strength to reform public enterprises but Infrastructure, responsible for how long it will take us rail track maintenance, and Serbia The question is not whether we Cargo and Serbia Train, responsi- haveVučić the was strength elected Primeto reform Minister. public enterprises because we ble for goods and passenger transport respectively. Contribu- have to do the job. The question is how long it will take us to tions from the state budget have been reduced dramatically. reform them. The Government will continue to work hard. The decades of debts on electricity bills have been resolved, the railway market has been opened for the first time and we ► How much progress has been made in this regard in now have a private operator. your sector? According to the IMF, Serbia can be an example for other – If I were to list everything we’ve done, I'm afraid it wouldn't fit countries in terms of speed and quality of railway reform. in your magazine. But I will mention the most important work. We are investing a great deal in connecting Serbia with the We have started a comprehensive reform of the Serbian rail- region and Europe. We are finishing Corridor 10 towards Bul- garia and Macedonia, we are heavily involved in the construc-

ways ‒ an unthinkable task for previous governments. 20 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS CHALLENGE PRIORITY ENDEAVOUR We have started a comprehensive Cadastral reform is an absolute I am expecting to start work on the “motorway of peace” reform of the Serbian railways - priority and is crucial for Serbia’s from Niš to Priština. After many years of conflict, this will an unthinkable task for previous further progress on the World Bank’s be the first project where Serbs and Albanians will be governments. Doing Business List. working side by side.

tion of the Corridor 11 motorway to Montenegro with Chinese This year, in cooperation with our Chinese partners, we are starting modernisation of the Belgrade-Budapest rail track, Sad, the new bridge over the Drina near Bratunac, the Ypsilon the track to the border with Hungary. We also want to start armcompanies, of Corridor we are 10 finishingnear Subotica, work onand the we Žeželj have yetBridge to start in Novi the work on the Belgrade-Sarajevo motorway. modernisation of the Belgrade-Budapest railway, which will be running trains at 200 km/h. ► Why is the Government so hesitant to find the right But I have to mention something unrelated to infrastructure concessionaire for Nikola Tesla Airport? that I am very proud of. The Coordination Body for Gender Equality, which I chair, is about to adopt a draft law on gen- der equality, after more than two years of work. This is an ex- tremely important law that affects every citizen and it should guarantee greater gender equality than we have now.

► How prepared is the railway sector for major changes primarily in terms of track modernisation and the intro- duction of competition in freight transport? – The railways are ready in terms of staff, organisation and opera- tion, and we will provide funds for modernising the tracks. We are working in cooperation with the Russian Railways and have obtained funds from “the Russian loan”. More importantly, every- thing is done to European standards because as a future EU mem- ber state Serbia is part of the European transport network. So far we have rebuilt 127 km of track, work on 85 km is underway and work on an additional 155 km should start by the end of the year. There is one thing I’m very proud of that has The reliability and safety of trains has been improved and their speed increased to an average 100-120 km/h on the nothing to do with infrastructure. After over renovated tracks. two years of hard work we are about to adopt a

► What can we realistically expect in 2017 and 2018 in draft of the Law on Gender Equality terms of large infrastructure projects? – Definitely the completion of the most important road in Serbia, – There is neither hurry nor hesitation when it comes to find- Corridor 10, in both directions, towards Macedonia and towards ing the best concessionaire. Our airport is one of the fastest growing in the region – I expect it to serve a record 5.5 million passengers in 2017. Substantial funds are required for it to de- anotherBulgaria. 30 There km of is motorway still a section from to Pirot be done to Dimitrovgrad. through Grdelička Corri- velop its potential further, which will be the concessionaire’s Klisurador 10 isand important Sićevačka both Klisura to us canyons,and to Europe and we as willthis yearsoon itopen will obligation. I believe that the airport will have found a new con- have carried 13 million vehicles more than three years ago. cessionaire and the state new revenues from the concession The Obrenovac to Ljig section of the motorway to Montene- by the end of the year.

section already open, we will have over 100 km of motorway ► Some of the major reform achievements are the simplifica- throughgro is nearing Šumadija. completion. The ring With road the around Ljig to Belgrade Preljine connecting and Čačak tion of issuing building permits and the introduction of elec- Corridors 10 and 11 should also be finished soon. In coopera- tronic building permits. How are they faring today? tion with the EU we will find the best mode of financing and – The US Ambassador Kyle Scott told me that our building start building the “motorway of peace” from Niš to Merdar to permit system is better than the USA’s, which really means - something. The Ambassador’s kind words aside, it’s a fact that trict. After many years of conflict, this will be the first project Serbia has advanced on the Doing Business List by 150 posi- wherePriština, Serbs connecting and Albanians more than will 100,000 be working people side in by Toplički side. Dis tions thanks to its electronic building permits. Nowadays, a

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 21 building permit can be obtained in five working days on aver- – In addition to cadastral reform, we will initiate the abolish- age, and in some Serbian municipalities even faster. In the first ment of business stamps and move to full electronic business quarter of 2017, the number of electronic permits issued went administration. We will provide better protection for small up by 120 per cent compared with last year. shareholders through greater transparency of information on securities transactions. We will also provide transparent and ► Progress has been made in land conversion, but there accessible information on the managing bodies of joint-stock have been some issues concerning res- companies. Additional reliefs in electron- titution. What is the ministry doing to ic tax payment have been agreed and the resolve these issues? rulebooks issued by the Ministry of Fi- – During the drafting stage of the law, nance have been amended. strict care was taken not to lessen the rights of former owners. Article 1 of the ► As a minister you are known for your Law on the Conversion of the Right of excellent cooperation with the private Use into Proprietary Right on Building sector. How much can the expertise Land for a Fee prescribes that the rights of the private sector help improve the guaranteed under that law do not limit business climate in Serbia? the rights guaranteed under the Law on – Business associations gather together the Restitution of Property to Churches companies and the companies feel the ef- and Religious Communities. The law also fects of the reforms first-hand, on day-to- prescribes that upon receiving a restitu- day basis. This is why it’s very important tion claim, the authorities must obtain a to us to get their feedback. certificate from the Restitution Agency That’s why we formed a working group proving that the land in question is not for improving Serbia’s ranking on the under restitution. If it is, they have to stop Doing Business List. This working group conversion until restitution of the confis- should also prevent the adoption of any cated property has been completed. regulation that might negatively affect However, problems have occurred as a businesses in Serbia. The Serbian Gov- large number of cases started to emerge ernment has formed another working where only financial compensation was group with the Foreign Investors Council, possible, rather than restitution, and the responsible for implementing the recom- conversion couldn’t be completed until com- mendations provided by the Foreign In- pensation was paid. To allow the conversion vestors Council in the White Book. to continue, the ministry and the Restitution Agency agreed that it would be enough to ► What do you expect from this new submit the Agency’s decision on the right to mode of cooperation between the Govern- compensation even though the compensa- ment and the Foreign Investors Council? tion had not been paid. This and other out- FIC and the Government have – The Foreign Investors Council and the Ser- standing issues will be covered in the guide- common goals: to attract as bian Government have common goals: to at- lines that are currently being drafted. many foreign companies to tract as many foreign companies to Serbia as possible, for them to work as smoothly and ► One of the ministry’s major tasks Serbia as possible, for all of effectively and generate as much profit as is cadastral reform. How are you sat- them to work as smoothly possible, and for the state to use tax revenue isfied with progress since there are and effectively as possible to create a modern and successful country. I many unresolved cases? have every reason to believe that the Serbi- – Cadastral reform is an absolute priority to generate maximum profit, an Government will accept all the Council’s and is crucial for Serbia’s further progress and for the state to use recommendations aimed at these goals. on the World Bank’s Doing Business List. We have prepared a draft law on cadastre the tax revenue to create a ► In your opinion, how has the Foreign which will shorten the registration time modern country Investors Council contributed to this dia- to three to five days, and introduce elec- logue over the past 15 years? tronic registration of property as of 2020. The draft law is now – There is no doubt that the Foreign Investors Council contrib- out for public consultation. Our goal is for cadastral reform to uted a lot to establishing a dialogue between business and the be as successful as the building permit reform has been. government in the first place. Later on, its recommendations were organised in the White Book, helping improve the business ► What other areas could help Serbia improve its ranking on environment. I hope that the dialogue and cooperation continue, the Doing Business List? and our joint working group is a guarantee that they will. ■

22 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 23 INTERVIEW We’ll Continue Along The Road Of Reform GORAN KNEŽEVIĆ Economy Minister of the Republic of Serbia

The Government of Serbia and the Ministry of Economy will continue to work on improving the business environment and the climate for doing business, with the aim of creating a more efficient, more prospective, attractive and competitive economy, and equal treatment on the European Union market

mitment to the domestic sector of the economy, primarily to small and medium-sized enterprises, for which support lasting ten years has been secured.

current topics in the field of his ministry’s work, such as new legislativeWe spoke proposals, with Minister the continuation Knežević about of investments some of the in mostlocal governments in which investors have the greatest interest in investing, as well as the financial and non-financial support of the government in creating a reliable network of suppliers that large companies will be able to rely on. We also spoke he Serbian government has proved successful at about the continuation of reform processes, primarily in the promoting investment. Alongside subsidies, this area of privatisation and improving management in public also implies the improvement of the business cli- enterprises. mate and the environment for doing business, while investmentT in infrastructure is essential for the start of any ► How would you estimate the economy’s functioning to date and what are your expectations until the end of 2017? twoserious billion investment, euros to saysbe invested Goran Knežević, in Serbia Economy by the end Minister of the – Our economy is showing signs of recovery. In the first six year,of the but Republic he emphasises of Serbia. that Minister it is much Knežević more expectsimportant around than months of this year, compared to the same period last year, this financial indicator that Serbia has attracted important growth in total industrial production was recorded at 2.1%, world brands in this way, that it succeeds in gaining access with growth of 6.3% in the processing industry, while unem- to modern technologies and modern ways of doing business, ployment also declined and the number of enterprises in- and that more jobs than originally estimated have been cre- creased. All this points to better conditions for doing business ated. Our interlocutor also highlights the government’s com- and a better business climate.

24 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS SUPPORT COMPETITION CERTAINTY We also support the sector of small and Modern technologies and We additionally advance the business environment medium-sized enterprises, without which no digitisation are crucial to the in such a way that it is certain and safe for large company would be able to function. competitiveness of our economy. operations, which is also the obligation of the state.

► What level of investment do you expect in 2017, in which infrastructure, roads and other things that are important sectors, and with the creation of how many new jobs? What to investors when they are considering investing. For this further investment incentives are you planning? purpose, we invested about 2.5 billion dinars last year, es- – Our goal is to reach two billion euros of foreign direct pecially considering the interest of investors in individual investments this year. The investment incentives we of- zones. This year we are also continuing to co-finance works fer both domestic and foreign investors have proven to be efficient, because not only have these measures brought world-famous brands to this country, they have also brought Last year we invested 2.5 billion dinars with them the latest technologies and knowledge, but also in industrial zones, utilities, energy hired far more workers than we agreed contractually. If you look only at the 72 companies that came out of control of infrastructure, roads and other things that the Ministry of Economy, i.e. those which fulfilled all their are important to investors when they are obligations towards the state, there is sufficient proof of the success of the incentive policy. They were supposed to considering investing hire around 12,400 workers, but today they employ almost 40,000 people, which is 27,500 more than agreed! on the construction and renovation of roads, utilities, energy But new investments are not only secured by incentives. and other infrastructure, as well as works that ensure the We strive to make Serbia more attractive for investments in availability of business zones and their connection with the other ways. We invest in industrial zones, utilities, energy environment in 26 cities and municipalities.

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 25 We also support the sector of small and medium-sized en- ► Has EPS really become a big problem for the Serbian terprises, without which no large company would be able to economy; what are the solutions? function. We want to create a reliable network of suppliers – Although we are awaited by the most important steps in the and that’s why the state strongly supports this sector with reform of public companies with the introduction of corporate concrete financial and non-financial support. I believe that governance, we have to be realistic and say that, views as a our SMEs have never been stronger, and I am confident they whole, it operates better. Compared to the period two and a half will be even stronger, as we have ensured continuity in this years ago, when they had losses of more than 65 million dinars, support over the next ten years. preliminary results from the end of 2016 show that they were operating with profits exceeding eight billion dinars. I’m sure ► How will the losses of companies under bankruptcy that public companies can operate well, and that is also proven and liquidation procedures be dealt with? by their business results, because there is political will and de- – In Serbia, as elsewhere in the world, there is a system, and termination in the Government of Serbia to reform it. this is the bankruptcy procedure, through which a company that has fallen into difficulties can settle obligations towards ► At what stage are the privatisation processes of large its creditors and repay its debts. We have further enhanced enterprises? – When it comes to companies that are in the process of pri- vatisation, regardless of how much it is a recurrence of the past or a major problem that nobody has dealt with seriously in the past and whose solution has been permanently post- poned for the purposes of political gains and social peace, and no matter how resolved we are to bring this story to an end, because that is in the interest of our economy, we must bear in mind that our citizens work in them. That’s why we fight for each of them. We are looking for buyers and partners who will secure the future of these companies, such as Hestil (Hi- bis) did for the Smederevo steelworks. Perhaps some of these stories will not have a happy ending, and we must tell people that openly, but that’s why we are also strengthening the pri- vate sector, in order for it to be able to accept people who are left jobless in these processes.

► What does the government’s focus on digitisation mean The incentives we offer investors have when it comes to the sector of the economy and the Minis- proven efficient, because we gained world- try of Economy? – Modern technologies and digitisation are crucial to the famous brands, the latest technologies and competitiveness of our economy. The Prime Minister is com- knowhow, but also far more workers were pletely right when she places an emphasis on digitisation, because in conditions when science changes the world every hired than we agreed contractually day, we must primarily keep pace technologically with the modern world, and then maintain that tempo. this system, which is otherwise assessed as good, and recent- ly the Government adopted the Draft Law on Amendments ► What is envisaged by amendments to the Law on to the Bankruptcy Law, which further improves mechanisms Companies and in relation to the protection of small that contribute to the discontinuation of the “vicious circle shareholders? of debt” between companies and enable their more liquid – By amending the Law on Companies we create condi- operations. We protect the position and protection of credi- tions for doing business that will ensure companies have tors – workers, other companies, the state. In addition to this, complete legal security, easier operations, a shortening of preventative mechanisms have also been established, such as the registration procedure, increasing the efficiency of the consensual financial restructuring, which is completely volun- administration, strengthening financial discipline and sig- tary, the out-of-court model for resolving debt issues through nificantly increasing the transparency of operations, which the redefining of debt-trust relations between companies in all together will result in a more efficient, more prospective, financial difficulties and its creditors (banks, suppliers etc.). more attractive and more competitive economy, and ensure With this we additionally advance the business environment equal treatment on the market of the European Union. Se- in such a way that it is certain and safe for operations, which curing all of this is especially important for joining the EU, is also the obligation of the state, and not to interfere in opera- and I would add that it is important to us because of our- tions and repay the debts of failed companies. selves, because a regulated state is our ultimate goal. ■

26 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS CORPORATE Investing In Employees Improves The High Quality Of Our Work

SWAROVSKI SUBOTICA Swarovski Subotica is an important part of Swarovski's global production network. Some 670 employees operate in a working environment that motivates and encourages the development of skills

wo years ago, in 2015, Swarovski’s modern production facility in Subotica was established and put into operati- on. Since then, Swarovski Subotica has chain, providing evidence of responsible busi- and to maintaining its place at the forefront of grownT to become an important part of Swa- ness practices. Swarovski’s certification con- design, creativity and technological innovation. rovski’s global production network, settled in firms that it is compliant with the industry’s What started in 1895 as a small crystal ma- an attractive location with highly skilled and highest standards of sustainability, including nufacturing business in Wattens, Austria, has motivated workforce surroundings. the areas of business ethics, human rights, so- grown to become a leading global group of com- Since 2015, operations have been constan- cial and environmental performance. panies that for generations has recognized that tly increased at the 15,000-square-metre site, This certification reinforces the company’s the long-term success of the company is insepa- where part of the crystal component processing commitment to high-quality craftsmanship and rable from the well-being of its customers, em- and finishing tasks, such as the production of mastery of precision cutting, while at the same ployees, the environment and society as a whole. forward-integrated elements, is concentrated, time embracing sustainable methods. By agree- The Swarovski Crystal Business has a glo- in addition to Swarovski’s main facility at the ing to uphold the Responsible Jewellery Coun- bal reach, with approximately 2,800 stores company’s headquarters in Wattens, Austria. Today about 670 employees work in the state The application of ethical standards strengthens the company's of the art facility, with working conditions that are in accordance with international standards. commitment to high-quality craft techniques and precision cutting This has not only been proved by a SME- skills, while at the same time adopting sustainable methods TA audit* that was conducted in 2016 by In- tertek, but also by the Responsible Jewellery cil’s standards, Swarovski demonstrates a clear in around 170 countries, more than 27,000 Council (RJC), after it achieved the RJC’s Code and proactive ethical commitment to maintain employees, and annual revenue of about 2.6 of Practices Certification. and reinforce responsible business practises billion euros in 2016. “We are very proud that the Intertek audit across Swarovski Professional’s supply chain. The Swarovski Group comprises Swarovski report for the Swarovski Subotica plant conta- Optik, which produces precision optical instru- ins excellent marks and good examples. Particu- A SPARKLING WORLD ments like telescopes and binoculars; Tyrolit, a larly when it comes to complying with standar- Swarovski designs, manufactures and sells leading producer of grinding, sawing, drilling ds and working conditions, Swarovski Subotica the highest quality crystal, genuine gemstones, and dressing tools, as well as a provider of tools created stones, and finished products, such as and machines; and the Swarovski Crystal Busi- Managing Director of Swarovski Subotica. jewellery, accessories and lighting solutions. ness. In 2016 the Group generated revenue of adheresThe RJC’s to all Codestandards,“ of Practices says Dejan Certification Jovanović, is With a rich history and a culture of technological about 3.36 billion euros and employed more a landmark standard for the jewellery supply leadership, Swarovski is committed to growth than 32,000 people. ■

*SMETA is an audit procedure that is a compilation of good practise in ethical audit technique. Using SMETA, a supplier can have one audit conducted and share it with multiple custo- mers, rather than having a different audit conducted for each customer. The SMETA documents are designed to be used by experienced auditors in line with current established practises.

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 27 INTERVIEW We’ll Continue Leading A Responsible Monetary Policy

JORGOVANKA TABAKOVIĆ Governor of the National Bank of Serbia, NBS

The preservation of price and financial stability is the lasting priority of the National Bank of Serbia. By achieving these objectives we also support the implementation of the Government’s economic policy by contributing to the creation of an environment conducive to sustainable economic growth

is that the period of low interest rates could last for some time yet, due to the impact of structural factors in developed countries. In the case of Serbia, the fact is that macroeconomic conditions have im- proved significantly in the past few years. We reduced inflation from 12.9% in October 2012 to 2.2% in October 2013, and since then it has been at a low and stable level. The current account deficit has fallen significantly, down to 4% in 2016, thanks to significantly more dynamic growth of exports than of imports of goods and services. All this indicates that the resilience of our economy to developments in the international environment has now increased.

he National Bank of Serbia (NBS), in accordance with the ► In the recent period we have for the first time seen inflation mandate entrusted to it, contributes to the creation and expectations of the corporate sector equalling 3.5%, which is improvement of an environment for achieving sustainable slightly higher than in the previous period, though still within economic development, the growth of employment and the the target range. What is the reason for this? T – If we look at movements from the beginning of the year to May, in- - flation expectations have recorded growth in the financial and corpo- etaryliving policystandard, and saysinflation NBS inGovernor the wake Jorgovanka of changes Tabaković.on the global We market spoke rate sectors, while declining in the household sector. This indicates andwith other Governor current Tabaković issues in about the work the ofchallenges Serbia’s central in the bank.area ofWe mon also that their perception is partly a result of differences in interpreting specifically addressed the legislative activity of the NBS and its par- the importance of certain factors that can influence inflation in the ticipation in the digitisation process. period ahead. The perception of corporates is to a certain extent related to the movement of prices of basic inputs, primarily energy ► In your opinion, will the recovery of the Eurozone bring an end products, which was confirmed in the past few months, when their to the era of low interest rates and, if so, what would that mean for expectations were influenced by an increase in prices of crude oil on monetary policy and Serbia’s overall macroeconomic stability? the world market. Through assessments in terms of economic policy – Movements in the international environment have long been char- in general, corporates emphasise the belief that the NBS will use its acterised by uncertainty with regard to the pace of global economic measures to impact on inflation moving within the boundaries of recovery, which is also reflected in the pace of normalisation of the the targeted corridor and remaining low. They also expect further monetary policies of leading central banks. The IMF’s latest estimate growth in economic activity and the growth of the living standard.

28 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS PRIORITIES RESISTENCE DIGITISATION The priorities of the National Bank of Low and stable inflation, and a reduced The NBS is an active stakeholder in Serbia are clear and defined by law - current balance of payments deficit, almost all state projects for encouraging price and financial stability, and with that indicate that our economy’s resilience e-business, and we will be a reliable also support for the implementation of to developments in the international partner to the Government in the the Government's economic policy. environment has now increased. digitisation process.

► Serbia will complete its three-year arrangement with the ► Could a decision of the Serbian government to forgo a new IMF soon. Has the NBS fulfilled all the tasks set as part of this arrangement with the IMF have consequences on the modifica- arrangement? tion of monetary policy goals? – Early next year Serbia will complete the arrangement with the IMF, which can already be assessed as highly successful. Since the conclusion of the arrangement with the IMF, After each review of the arrangement, IMF representatives as- sessed the implementation of the activities agreed and stressed we have endeavoured to be a reliable and responsible that the NBS did its job well and achieved excellent results. During partner, adhering to the principles to assume those the programme itself, we kept inflation at a low and stable level, obligations that are in the function of further progress while foreign exchange reserves were at a higher than agreed level, and we also carried out all agreed activities in the financial – Our main goal is to achieve and maintain the stability of prices, sector. The share of NPLs in total loans decreased by 6.1 p.p. to which means that in the future we remain committed to maintaining 16.1% as at end-May 2017, which is its lowest share in the last the achieved low and stable inflation. In addition to this, maintain- seven years. From the conclusion of the arrangement, we have en- ing financial stability also remains in our focus, and without bringing deavoured to be a reliable and responsible partner, adhering to the into question the achievement of these goals, we will also continue principle of taking on those obligations that are in the function of to support the implementation of the Government’s economic policy, further progress. which encourages sustainable economic growth. Since the objectives

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 29 are clear and defined by the Law on the NBS, there is no room or rea- liberalisation of depositing activities which will, in accordance with son to modify them. I believe IMF representatives would agree that the the National Programme for Adoption of the Acquis, be implemented most important thing is for the NBS to continue working as it has in at the latest by the date of joining the Union, while the further lib- previous years – responsibly and with dedication, adopting adequate eralisation of cross-border intercompany invoicing operations will and timely measures with the aim of preserving the stability of prices be considered in cooperation with the Ministry of Finance, which is and the financial system, which is in the interest of all Serbian citizens. responsible for proposing regulations that govern intra-corporate settlements under foreign trade operations. ► Although the level of non-performing loans has fallen in rela- tive terms, it remains high on the whole. Why has Serbia been ► Is the NBS considering legislative amendments that would unable to do more to reduce it? completely equalise leasing with other forms of financing? – The adoption of the national Strategy for Resolution of Non-Per- – The NBS cannot influence amendments to laws under the jurisdiction forming Loans in August 2015 showed the readiness of the competent of other state bodies, which relate to VAT or personal income tax, but it institutions to approach this issue systematically and in a coordinated will, as has been the case to date, take measures to develop the financial way. Since the adoption of the Strategy, the level of non-performing market based on fair competition among market participants and sup- loans has been reduced in both relative and absolute amounts, which port initiatives to amend laws to that end. Considering the identified demonstrates the correctness of the model and envisaged steps, and need to amend the Law on Financial Leasing, the NBS has prepared the working Draft Amendments to the Law, also accepting the proposals that broaden the activity of financial lessors, as well as proposals that relate to a single capital threshold regardless of the lease asset, by re- defining the scope of operations and the responsibilities of the man- agement and executive board, conditions for contract termination due to material shortcomings of the lease asset, civil and misdemeanour liability linked to the use of the lease asset during contract validity...

► Is the NBS considering further regulation in this sector, for example in the form of an Insurance Supervisory Law, Insurance Contract Law and Insurance Brokers and Agents Law? – The NBS supervision of insurance companies, reinsurance compa- nies, brokerage and agent firms agents and individuals who perform insurance agency activities as an additional activity, is regulated by the Law on Insurance. Considering the degree of development of the domestic market, we believe it is appropriate at this moment for a The further liberalisation of cross-border, inter- single law to regulate both the status issues of participants in the company invoicing operations will be considered insurance market and the supervision of those participants. The is- sue of insurance contracts is regulated by the applicable Law on Con- in cooperation with the Ministry of Finance tracts and Torts, and will also be subject to the new Civil Code that is being drafted. Thus we believe it would be inappropriate to regulate the NBS has implemented all activities envisaged by its Action Plan. this matter additionally with a special law on insurance contracts. Further steps towards reducing non-performing loans can certainly be expected both from the aspect of relevant institutions and from the ► One of the most important priorities of the new Serbian govern- aspect of banks. Relevant institutions undertake activities planned by ment is digitisation. What kind of tasks does this set for the NBS? the Strategy, the effects of which have not yet been fully exhausted, – Digitisation is a topic that we have placed high on the list of priorities. while banks aim to resolve this issue through established instruments We have created prerequisites for the issuance of electronic money, and mechanisms for overseeing their operations. the establishment of payment institutions and electronic money insti- tutions, and, in cooperation with the Government, we have resolved ► What is your view on FIC proposals for improving the Law on dilemmas that arose over years in relation to the implementation of Foreign Exchange Operations, such as cash-pooling and cross- regulations in the field of international payment operations. In order border inter-company invoicing etc.? for us to further encourage the use of non-cash payment methods, we – When considering the development or introduction of instruments have prepared the Draft Law on Interchange Fees and Special Operat- and methods of international payments, the NBS approach is cau- ing Rules for Card-Based Payment Transactions and we will soon an- tious and bears in mind potential negative impacts from the external nounce another legal solution that should introduce faster and easier environment on macroeconomic movements within our country. As changes of banks and greater transparency of commissions. We are our economy is small and open, we established together with the also working intensively on the introduction of an instant payment Ministry of Finance phased liberalisation of the movements of capi- system. The NBS is an active stakeholder in almost all government tal, which ensures macroeconomic and financial stability. Further lib- projects for encouraging e-business, and we will be a reliable partner eralisation of cash-pooling activities will progress in parallel with the to the Government in the digitisation process. ■

30 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 31 INTERVJU We Want To See Serbia In The EU

GENOVEVA RUIZ CALAVERA Director for the Western Balkans at the Directorate- General for European Neighbourhood Policy and Enlargement Negotiations of the European Commission

My priority is to provide all our help, advice and support to Serbia on its path towards European Union membership. The European Commission is the guardian of the integrity of the accession process and a friend of Serbia

e spoke with Ms Genoveva Ruiz Calavera, Direc- cent summit in Trieste proved that the willingness to move tor for the Western Balkans at the Directorate- forward together is stronger than nationalist sentiments and General for European Neighbourhood Policy extremism. I hope this is the trend that will prevail in the long and Enlargement Negotiations of the European WCommission. We need to see a judiciary free of political ► The Western Balkan countries have, in the recent past, influence, and overall functioning justice, shown the willingness to both reconnect and further con- nect with the EU, but they have also been very much in the accessible to all news due to neighbourhood quarrels. What do you see as the prevailing trend? term, but all sides need to make conscious and continuous ef- – Indeed, the outbursts of nationalist rhetoric that we witness forts in order for this to happen. every now and then in the region are always a source of se- rious concern. It's natural for neighbours to have different or ► The future of the EU is widely discussed in the Western even conflicting views on certain issues, but you need to ad- Balkan countries, with both hope and doubt. What can dress those through constructive dialogue and reconciliation. the WB countries expect in the next five to ten years, in So far I remain a cautious optimist – people and countries in terms of their chances of becoming EU member states? the region have so much more to gain if they act together, and – I don't want to speculate about dates. The enlargement pro- so much to lose if they remain stuck in past conflicts. The re- cess does not have a timeframe; it's not a race. It is driven by

32 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS ENLARGEMENT TRUST EXPERTISE The perspective of accession for I am confident of Serbia's We count on the Foreign Investors Council to the Western Balkans is real and capacity to move forward on contribute, through its expertise, to a better regulatory within reach. important reforms. environment for trade and investment in the region.

results based on clearly defined benchmarks and criteria. The ► How much has Serbia moved forward in fulfilling po- focus for the countries concerned should be on meeting these litical criteria, such as reforming the judiciary, fighting criteria, implementing the necessary reforms and making organised crime, furthering freedom of expression, fight- sure they produce solid and sustainable effects. Hypothesis- ing corruption and reforming public administration? ing about dates in this context would only create confusion – We have seen progress. For instance, Serbia has adopted ac- and dilute the focus. Having said that, let me emphasise that the perspective of accession for the Western Balkans is real and within reach. Let’s just recall Croatia, a country from the region that joined the EU in 2013. The EU leaders who gath- ered in Rome earlier this year to celebrate the 60th anniver- sary of the Rome treaty made it crystal clear on that occasion that the EU door remains open for new member states.

► What did the Trieste summit bring to the EU perspec- tive of the Western Balkans? – Trieste was important for two reasons. Firstly, if we look at the official statements made at the summit, it clearly re- confirmed the EU’s commitment to the EU perspective of the Western Balkans, sending a strong political signal of contin- ued EU engagement towards this goal. And, even more im- portantly, we heard a very clear message from the leaders in the region that they are committed to seriously preparing their countries for accession and working together to make Europe stronger. Secondly, important tangible, practical steps were agreed, so it wasn't only about abstract statements. Let me just men- tion the signing of the Transport Community Treaty, sup- Serbia needs to focus on reforms fostering ported by the Commission’s 'connectivity package', totalling healthy economic development - and €194 million in grants, and leveraging investments of €500 million, for seven new regional projects to improve transport these reforms cover a number of accession and energy links within the Western Balkans and with the EU. negotiation chapters In this context, let me express my hope that Bosnia-Herzego- vina will sign the Transport Community Treaty soon. tions plans for chapters 23 and 24. The EU is monitoring their implementation closely. We do need, however, to understand ► How would you assess Serbia’s efforts on the path to- the process. Serbia initially adopts action plans; then, on the wards the European Union? basis of these plans, it introduces legislation and builds up its – We have seen good progress in a number of areas. This institutions; finally, in all these areas, Serbia will need to pro- has led to the opening of negotiations on ten chapters and duce track records, i.e. tangible results. For instance, we need the provisional closing of two. Among the open chapters to see a consistent fight against corruption that will result in are those covering the rule of law and the dialogue between court verdicts, a more transparent and independent system Belgrade and Pristina (chapters 23, 24 and 35). The pace of for appointing judges, a judiciary free of political influence, progress on these chapters determines the pace of overall ac- and overall functioning justice, accessible to all. cession negotiations. Progress in these areas will enable the opening of more chapters, preparations for which are already ► What do you see as the most important priorities of well advanced. I strongly believe that this will bring tangible the Serbian government in that respect? benefits for the Serbian people and economic operators alike. – Further progress in strengthening the rule of law in all

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 33 areas, as well as enhancing rights, freedoms and dedication ment and neighbourhood countries, through new efforts to in fighting corruption, are undoubtedly among the top priori- increase economic and trade opportunities. How do you see ties. Furthermore, the dialogue with Pristina needs to resume, the role of the Western Balkans and Serbia in that respect? and agreements reached to date need to be implemented for – The 'Western Balkans Six' agreed at the Trieste Summit of the benefit of people in both Serbia and Kosovo. Economic re- July 2017 to deepen regional economic integration, includ- forms need to continue and be strengthened. Further legal and ing in the areas of trade in goods, investments, services, institutional reforms that are necessary for opening new chap- workers’ movements and a digital market – a decision that ters in the accession negotiations should also be prioritised. we welcome and support. It is expected that all six Western Balkan economies will undertake measures at the national ► What are your priorities in working with Serbian level that will contribute to regional harmonisation, coor- stakeholders in the future? dination and the transparency of countries' economic poli- – I do believe that we sing from the same cies. In this sense, the region will send hymn sheet with Serbia and that we share a powerful signal to the outside world the aforementioned priorities. For my about its determination to create a more part, my priority is to provide all our help, integrated market of some 20 million advice and support to Serbia on its path consumers, with enormous untapped towards European Union membership. potential. It is very positive that the re- The European Commission is the guard- gion's leaders are committed to working ian of the integrity of the accession pro- together with the support of the EU and cess and a friend of Serbia. We want to see International Financial Institutions. Serbia in the European Union. ► When it comes to economic require- ► How do you see Serbia’s progress in ments, how do you see the role of the terms of readiness indicators on fun- Foreign Investors Council in the en- damental areas of Economic criteria, largement process? such as a functioning market economy – Meeting the economic criteria for EU and competitiveness in the EU? accession requires the existence of a – Serbia has made significant progress functioning market economy, as well when it comes to macroeconomic stabil- as the ability to withstand the competi- ity. It has demonstrated impressive results tive pressures of the EU single market. in terms of fiscal consolidation, with a Foreign investors have good knowledge major reduction of the budget deficit and about the operational conditions of other a reversal of the negative trend of grow- economies in which they do business, ing public debt. This was accompanied We value the FIC's views on and so may help identify the remaining by higher than expected growth in 2016, Serbia's annual economic distorting factors to the good function- and expectations are similar for the years reform programmes, in ing of local economies in the Western ahead. Combined with low inflation, this Balkans, as well as possible measures gives room for optimism. Reforms do particular the measures to improve their competitiveness. They need to continue, however – there is no to boost competitiveness have a unique ability to offer advice and room for complacency. and the development of the recommendations to local authorities. Further efforts are needed on structural This is why we all count on the Foreign reforms. Excessive state influence in the private sector Investors Council to contribute, through economy and a lack of private sector dy- its expertise, to a better regulatory envi- namism are obstacles to further economic growth. The process ronment for trade and investment in the region. of restructuring state-owned enterprises needs to be finalised. The private sector continues to be troubled by a costly, unpre- ► What does continuous communication between the dictable and non-transparent system of para-fiscal charges, FIC and the European Commission regarding Serbia’s EU while there is difficulty accessing finance, excessive red tape accession bring to the process as an additional value? and a large informal economy. The level of state aid continues – The Commission values the continuous exchange with the to be relatively high, while the process of granting state aid is FIC, as a unique source of information about foreign inves- non-transparent. A substantial share of the working age popula- tors’ views on the strengths and weaknesses of the Serbian tion remains inactive. Jobs are hard to find and this leads, in par- economy, which then feeds into the policy dialogue between ticular, to a large scale brain drain among the young population. the Commission and the Serbian authorities. We also value the FIC’s views on Serbia's annual economic reform programmes, ► One of major areas of work of the DG NEAR is to contrib- in particular the measures to boost competitiveness and the ute to increasing prosperity in the EU and in the enlarge- development of the private sector. ■

34 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS

INTERVIEW Serbia Must Address “Transitional Gaps”

DANIEL BERG EBRD Director for Serbia

EBRD activities in Serbia continue to be focused on improving the governance of state- owned and private companies, supporting investments that help increase innovation and productivity, strengthening the resilience of the economy and promoting green initiatives, such as investments in renewable energy

e spoke with Daniel Berg, EBRD Director for Ser- bia, about the Bank’s engagement in the future, the role of foreign investors in transitional econo- The EBRD assessment of the magnitude of so- mies and EBRD support to domestic companies. W called “transition gaps” shows that Serbia is ► The EBRD’s new transition concept, introduced this in the middle range, with relatively large gaps year, claims that a good market economy is one that is competitive, inclusive, well-managed, environmentally in nearly every category, the largest being friendly, elastic and integrated. What does that mean in the categories – “competitive”, “well- in practical terms for the EBRD’s activities in transition governed” and “resilient” economies like Serbia’s? – The EBRD assesses the magnitude of so-called “transition gaps”, which denotes the relative performance of a coun- This “transition gap” assessment is the basis for develop- try in each category compared to what we would describe ing EBRD’s Country Strategy and that strategy then defines as the “best-performing” countries. Serbia is in the middle areas and actions that can best target and respond to the range, with relatively large gaps in nearly every category. gaps. In Serbia’s case, EBRD activities – both lending and The largest gaps are in the categories – “competitive”, “well- policy advice – continue to be focused on improving the gov- governed” and “resilient”. ernance of state-owned and private companies, supporting

36 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS SUPPORT EXPECTATIONS GOAL The EBRD will continue to support Serbia's We expect the new Serbian Prime Minister Serbia should target around four to five per integration with the Western Balkan to maintain the reform initiatives and work cent annual growth in the medium term, in region and Europe, through infrastructure on convergence with the EU and integration order to achieve meaningful convergence investments and policy support. within the Western Balkans. towards developed countries.

investments that help increase innovation and productivity, ► Although the EBRD is constantly present in Serbia, strengthening the resilience of the economy and promoting the scope of this engagement is less than it was five green initiatives, such as investments in renewable energy. years ago, when these investments reached around We will also continue supporting Serbia's integration with 500 million euros. What are the key reasons why Ser- the Western Balkan region and Europe, through infrastruc- bia is now oscillating between 300 and 400 million eu- ture investments and policy support. ros of EBRD support? – The EBRD does not set a certain target for its annual ► What do you consider as being the most important business volume, but is rather more concerned about the priorities of the government in the period ahead? – Our forecast from May was 2.9 per cent in 2017 and 3.0 per cent in 2018, with domestic demand driving growth. However, growth can be negatively impacted by first half developments, including in the energy and agricultural sec- tor. Government is seeking ways to counteract these nega- tive developments, but in the medium to long term, growth can be supported primarily through an improved busi- ness climate. This includes successful fiscal consolidation, macro stabilisation and, more importantly, implementing structural reforms. Economic programmes under the IMF’s three-year pre- cautionary Stand-By Agreement are yielding results. The fiscal indicators are ahead of programme targets (fiscal deficit fell from 6.6 per cent of GDP in 2014 to 1.4 per cent in 2016, while public debt is stabilising). However, public debt remains high, at around 73 per cent of GDP. The re- structuring of large public companies needs to be acceler- ated, as they distort markets and their performance can We try to make sure our investments remain impact on government spending requirements. both additional and make an impact on the Accelerating growth is important to support both eco- nomic convergence and the reduction of public debt. Serbia country's continuing transition to a fully should target around four to five per cent annual growth in functioning market economy the medium term, in order to achieve meaningful conver- gence towards developed countries. This requires further quality of its investment and policy inputs. To some de- reforms in support of investment and economic resilience. gree, a lower volume of EBRD investment is a sign of suc- Our studies show that, along with macroeconomic stabil- cess, as the State and many companies and banks can now ity, better governance, economic inclusion (encouraging access financing on their own. We try to make sure our the employment of the young, women, older people and investments remain both additional and make an impact disadvantaged groups), infrastructure quality, energy ef- on the country's continuing transition to a fully function- ficiency and NPLs/corporate over-indebtedness are the ing market economy. As such, our investments are often most important factors to address in support of productiv- linked to policy measures -- like we see in state and mu- ity and growth. nicipal companies, such as EPS and GSP. Our private sector We expect the new Serbian Prime Minister to maintain investments are also tied to new technologies or govern- the reform initiatives and work on convergence with the ance measures. This year, for example, we have devoted EU and integration within the Western Balkans. The EBRD significant attention to investments in renewable ener- has an effective relationship with numerous government gies. These projects may not be easy to finance without ministries and we expect to maintain our good work, as an EBRD involvement, given the long tenor and depend- with the government to date. ence on regulatory/policy measures. Besides our contin-

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 37 ued investment activities, we have actually increased our tion is that something doesn’t function properly in that policy advisory activities. This includes SME advisory pro- company. What exactly are your principles when you grammes and high-level policy interventions with the state choose to be a shareholder in an enterprise or to sell your and state entities. We expect to continue such policy work stake, as happened with Agri Evropa? in the coming years. – I do not agree with the presumptions behind this question. If companies and countries did not need EBRD support, either ► How important do you think the entry of foreign inves- financial or policy support, we likely would not be involved tors was for economic sector reforms? whatsoever. Although we cannot invest in companies that are – Our Transition Report (and for that matter, an array of do- beyond hope and the companies we support may be relatively mestic and international observers) have noted that the Ser- strong performers, they still require EBRD support to fulfil bian economy can benefit greatly from greater innovation their objectives (often hoping to become world class competi- and entrepreneurialism. We have found tors). EBRD support helps them achieve that foreign investment is likely to bring this, and there are many examples of our exactly these attributes -- modern tech- equity investments leading to great suc- nologies, raising productivity and export cesses. Ultimately, however, the EBRD capacity. Foreign investors bring new is not the lead shareholder and cannot ways of doing business, linkages to in- force a company and shareholder to do ternational value chains, training in new something if they are not themselves technologies etc. They also encourage committed to reforms and improve- other investors, suppliers or clients to ments. come and invest, so in this way they help We aim to support private investment build productive clusters and increase and in so doing we can temporarily be- the domestic value added. They are also come co-owners in order to encourage usually leaders in pushing for a better certain investments or help make them business environment and combatting more efficient. We usually exit when the the shadow economy (e.g. as through company does not need us any longer the Foreign Investor Council). These or when there are other private inves- steps also help domestic entrepreneurs. tors ready to invest. Finally, foreign investors usually pro- vide better pay, training and working ► You recently encouraged the for- conditions compared to many domestic mation of a national mark of “Ser- companies, thus creating healthy com- bian quality”. How much can such petition for labour. Of course, not every instruments help preserve the place foreign investor behaves perfectly -- and of local products on the domestic they should be held to the same stand- market, where very strong foreign ards – but, on balance, FDI has definitely Foreign investors, such as competition is present? been a plus for the economy. those in the FIC, are usually – Since Serbia has liberalised most of the sector, agribusiness companies are ► You have financed mainly large leaders in pushing for a exposed to tough competition. Partly trade players and their entry into better business environment due to the country’s isolation in the the Serbian market. Why did such and combating the shadow 1990s and limited investments, Serbian financially strong companies require companies lost their historic export EBRD support? economy. These steps also help markets. Recently, being outside the EU, – We have supported both large for- domestic entrepreneurs there has been little direct EU support to eign investors and small local compa- agriculture compared to neighbouring nies. Investors work with the EBRD EU members. In this tough environment, for a host of reasons – be it our experience in the sector, only niche players or large vertically-integrated businesses country and region, our ability to provide creative financial can survive. However, Serbia is still known for its tradition of products, or our ability to syndicate large loans. The EBRD agricultural quality. Therefore, the EBRD, together with the provides more than money – it provides local knowledge FAO, has worked with the Ministry of Agriculture and relevant and long-term partnership, which can support investors associations to develop a Serbian Quality Mark, to help dif- throughout the life of their investments. ferentiate its quality products. Since Serbia is not likely to be a high-volume producer, we believe it is appropriate to focus ► Every time the EBRD “enters” some Serbian company, on this quality. This is an important first step; much more is it is considered high quality, but when it “exits” or “with- needed to make such initiatives sustainable, and we intend to draws” from a company, the public’s prejudicial percep- continue to work with our partners on these initiatives. ■

38 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 39 INTERVIEW We Support the Government In Key Reforms

THOMAS LUBECK IFC Regional Manager for the Western Balkans and Central Europe

The IFC is actively engaged in helping Serbia improve its business and investment climate, the insolvency framework and debt resolution, and to attract private investments in infrastructure through public-private partnerships and concessions

when we look at the overall FDI stock. FDI in Serbia exhibited a downward trend prior to the financial crisis, but has since per- formed better than some comparators in the Western Balkans, when taken as a percentage of GDP. What is also interesting e spoke with Mr Thomas about Serbia is that the source country of Lubeck, IFC Regional Man- its FDI has diversified, in particular from ager for the Western Balkans Serbia and other Western the UAE and China. The Russian Federa- and Central Europe, about Balkan countries need more tion has been the source of some impor- theW current status of Serbian reforms and tant historical investments in energy, IFC’s scope of work in the country. export-orientated FDI, though FDI from EU countries still makes especially in higher domestic up a strong majority, at 60 per cent. ► From the end of the crisis to this value added production In terms of the sector-based composi- day, the Western Balkan region has tion of FDI, around three quarters of total attracted a noticeably lower level of FDI has been to “non-tradable” sectors, foreign investment (FDI) than the countries of central primarily telecoms, banking and retail, while only one quar- Europe. In your opinion, what is the main reason for the ter to “tradable” sectors, most of this to manufacturing. This region’s failure to be attractive to investors? skew has an impact, as non-tradable sectors largely target the – The Western Balkan region is lagging behind the countries domestic market and thus have limited growth potential and of Central Europe in terms of FDI. The stock of FDI in manu- a limited effect on competitiveness. What Serbia and other facturing on a per capita basis in Serbia is two to three times Western Balkan countries need is more export-orientated FDI, behind most countries in Central Europe. The same is true especially in higher domestic value added production. FDI of

40 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS IMPROVEMENT SUPPORT GUIDANCE Serbia still has a lot of scope for The IFC can support the Government in The FIC White Book, alongside the Doing improvement, but the clear signals privatising state-owned enterprises, either Business Report, provides essential from the Serbian President and in an advisory capacity or by financing the guidance for the development of the Prime Minister are encouraging. acquisition by the investor. private sector in Serbia.

this nature is difficult to attract and is heavily dependent on a lot of scope for improvement, but the clear signals from the favourable and predictable business environment. Serbian President and Prime Minister are also encouraging.

► What direction should the region's countries take to ► In this context how do you see the influence of the For- get out of the trap of a constant race to the bottom in la- eign Investors Council? bour costs and increasing subsidies for foreign investors? – As being indispensable. Since it was established in 2002, – The countries of the Western Balkans need to continue im- the Foreign Investors Council in Serbia has been a strong proving their investment climate. The outlook for the region’s promoter of FDI in the country and an important channel for growth is improving, but it remains far below its potential. communicating necessary reforms for improving the overall From our perspective, structural issues need to be acceler- ated. The challenges are remarkably similar across the coun- tries: bloated state budgets, state-owned enterprises (SOEs) competing with or replacing the private sector, ineffective ad- ministration and bureaucracy. These lead to suboptimal pri- vate investment, high formal unemployment and low labour market participation. I see most of the constraints as being in the space of the invest- ment climate and the low efficiency of the public sector, to the extent that countries are not finding ways to bring capital and improved efficiency to the public sectors. We often talk about infrastructure, because without strong and efficient infrastruc- ture it is hard to build a basis for other sectors of the economy. We can also talk about the need for improved connectivity, for physical and institutional linkages, among the countries them- selves and towards the EU and the rest of the world.

► How much do you think foreign investors, in coopera- tion with international institutions, have contributed to improving the business environment? – For several years now, the highest levels of the Serbian Gov- ernment have signalled that they would like to try and imple- ment a wide range of reforms in the business environment. Lower levels of Government and SOEs This effort is driven to increase employment and economic prosperity for the citizens of Serbia, and is also intertwined often oppose reforms. Important political with the country’s goal of EU membership. The response decisions need to be made about how to from a wide range of international institutions has been to en- support those segments of society gage and provide as much support as possible. International institutions are working with the Serbian Government and business in numerous areas, such as fiscal consolidation, tax business environment to the Government of Serbia. The FIC’s administration, e-Government, judicial reform, financial re- activities complement the IFC’s activities to encourage sus- porting standards etc. tainable development through the private sector. I’m a big fan Several years ago, Serbia set up a task force intended to im- of the FIC White Book, which, alongside our Doing Business prove the business environment and the Doing Business Rank- Report, provides essential guidance for development of the private sector in Serbia. high-level commitment has definitely yielded some results, withings, headedSerbia ranking by Deputy among Prime the Minister global top Zorana 10 improvers Mihajlović. in This this ► What structural reforms should give Serbia an advan- year’s edition of the Doing Business Report. Serbia still has a tage and where can they rely on the expertise of the IFC?

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 41 – There are three critical areas of structural reform where the – The IFC can support the Government in privatising state- IFC is actively engaging to help Serbia improve efficiency. owned enterprises, either in an advisory capacity or by financ- First is the business and investment climate. We can help ing the acquisition by the investor. We would like to see any the Government of Serbia to reduce the burden businesses privatisation happen through a competitive and transparent face through streamlining licenses and permits, reducing tender. Progress in privatising SOEs has sometimes been dif- costs, and helping to increase transparency through the online ficult, because this is a sensitive political topic in Serbia. SOEs issuance of licenses and permits. We have been the source of large amounts are particularly excited about the Prime of employment to politically influential, Minister’s efforts to establish systems unionised employees. The most diffi- to offer a wide range of business related cult cases are those SOEs that require permits and services online. large subsidies from the budget in or- Another important area is improv- der to continue operating. This is no ing the insolvency framework and debt longer financially sustainable. resolution. Serbia still suffers from high NPL rates, which take up banks’ man- ► The IFC is especially active in the agement time and effort. banking sector, where it has made Finally, the IFC has a specialised trans- certain progress in reducing prob- action advisory service that helps gov- lematic loans, though their level ernments attract private investment into remains high. Do you see the key to infrastructure through public-private this problem in insufficient banking partnerships (PPPs) and concessions. expertise, or in the generally weak condition of local business? ► In that light, how do you see your – At the end of June 2017, NPLs ac- cooperation with the City of Belgrade? counted for 16.8% of total loans, rep- – The City of Belgrade is one of the IFC’s resenting the lowest level since January strongest partners. Since the start of 2011, and a sharp decrease from 23% the new administration three years in mid-2015, when the Government’s ago, the IFC has been working closely NPL Resolution Strategy was adopted. with the City to realise its vision for im- A relatively recent asset quality review proving services and quality of life for of 14 banks in Serbia revealed that none Belgrade’s inhabitants. The IFC has sev- of the banks participating in the review eral advisory mandates and is consider- had a capital adequacy ratio below the ing direct financing of several projects. regulatory minimum of 12%, but there The IFC is advising the City on how to was a need for further re-classification structure and implement PPPs for large and adjustment. Banks would like to do infrastructure projects in water and more lending, but they are often unable sanitation. PPPs are an agreement be- Since the start of the new to find suitable creditworthy borrow- tween the City and a specialised private administration three years ago, ers. At the same time, borrowers are company, where the City pays the pri- the IFC has been working closely apparently also reluctant to take loans vate company to deliver municipal ser- when the economy and their businesses vices. The private company is selected with the City of Belgrade to realise are not growing. through a competitive tender on the ba- its vision for improving services In general, the framework for the reso- sis of its expertise, experience and cost lution of NPLs and preventing new NPLs efficiency. This arrangement enables and quality of life for Belgrade’s from happening needs to be improved. the City to tap into world-class know- inhabitants There is a lack of judicial and admin- how at a competitive price, resulting in istrative practise in restructuring and improved services for citizens, and to mobilise private sector bankruptcy. I would also say that there is a cultural bias on the financing, thus reducing the direct impact on the City’s budget. part of borrowers not to communicate with banks and restruc- The City chose this arrangement to develop a modern waste- ture to address cash-flow problems early enough. The banks would much prefer to restructure and keep the company as a of €300 million. The IFC will continue advising the City of Bel- going concern rather than go through bankruptcy. The IFC has gradeto-energy on water project and in sanitation Vinča, with PPPs an estimated until completion. investment size been trying to improve the overall framework and related issues through our Western Balkans Debt Resolution Project. This pro- ► You recently announced the IFC's specific willingness ject has supported the strengthening of the bankruptcy regula- to help privatise largest state-owned enterprises. Why tory framework via drafting amendments to the current Law on has so little changed? Bankruptcy, aligned with IMF requirements. ■

42 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 43 INTERVIEW Hard Won Results Should Be Carefully Defended

SEBASTIAN SOSA IMF Resident Representative for Serbia

It is crucial that the structural reform agenda is fully and expeditiously carried out, to transform Serbia into a modern, private-sector led economy with higher and sustainable growth

e spoke with Mr Sebastian Sosa, IMF Resident Representative for Serbia, about the current economic situation in Serbia, the achieve- ments of the arrangement between Serbia Wand the IMF, and the challenges that lie ahead for the Ser- bian government. Mr Sosa warns than in many cases, after achieving the initial good results of reforms, countries’ au- thorities became complacent and started to relax fiscal dis- cipline, quickly eroding hard-won achievements, and sug- gests what Serbia could do to avoid such mistakes.

► The existing arrangement between Serbia and the IMF is considered as being one of, lic debt on an unsustainable path; if not the, most successful ar- and banking risks were signifi- rangements in the history of If the Serbian authorities request a cant. But in less than three years the state. What made it so wor- follow-up IMF programme, the focus the macroeconomic situation has thy of praise: previous failures should be on the reforms needed changed dramatically. Growth is or current successes? projected at three per cent this – The current programme’s re- to reach higher, more inclusive and year and the fiscal deficit is pro- sults have certainly exceeded all sustainable long-term growth jected to narrow to about one expectations in terms of reduc- per cent of GDP—the lowest level ing macroeconomic imbalances since 2005—while public debt is and reinvigorating economic growth. The achievements have clearly declining. Moreover, unemployment is falling rapidly, been impressive, considering the dire economic situation Ser- while inflation has remained low and banks’ non-performing bia was in back in early 2015. Growth had been stagnant; the loans are being reduced sharply. This is, no doubt, a huge turn- fiscal deficit had approached seven per cent of GDP, with pub- around in macroeconomic performance.

44 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS SUCCESS BURDEN COMMITMENT The results of the existing arrangement The economy remains overburdened A clear commitment to macro stability and between Serbia and the IMF brought by a large and inefficient public sector, reforms will help to ensure foreign and a huge turnaround in macroeconomic with too little reliance on the productive local investors remain confident about performance. private sector. Serbia’s economic prospects

► Fiscal stabilisation seems to be the most successful the presence of the IMF in a country? part of the arrangement, but it was noted during the last – To maintain strong investor and business confidence, with IMF visit that a lot remains to be done. Which of those or without an IMF arrangement, Serbia needs to continue unfinished tasks were meant to be carried out under implementing policies consistent with macroeconomic this arrangement but for some reason failed, and why? and financial stability and the ambitious structural reform – Under their programme, the authorities have also pursued a comprehensive and ambitious structural reform agenda, including public administration, public utilities and SOEs, the financial sector and the business climate. Although good pro- gress has been made in some of these areas, in others there have been significant delays and the economy remains over- burdened by a large and inefficient public sector, with too lit- tle reliance on the productive private sector. An area where delays have been substantial is in the re- form of public utilities and SOEs. But even though we would have liked to have seen faster improvement, it is fair to say that few could have foreseen the progress made so far, given the long history of unsuccessful restructuring and resolu- tion efforts. Since the start of the programme, progress has been achieved in improving the efficiency and financial strength of large public utilities, disposing of failed state- owned enterprises and privatising viable ones. That said, the permanent resolution of some long-term troubled en- terprises, mostly in energy and mining, such as RTB Bor, Ga- lenika, Petrohemija, Azotara and MSK, is still pending. And further efforts are needed to restructure Srbijagas, EPS and the national railways. It is crucial that the structural reform agenda is fully and An area where delays have been substantial is expeditiously carried out, to transform Serbia into a mod- ern, private-sector led economy with higher and sustain- the reform of public utilities and SOEs, but it able growth. is fair to say that few could have foreseen the

► If Serbia decides to enter into a new arrangement, progress made so far what should be in the focus of that new phase? – If the Serbian authorities request a follow-up IMF pro- agenda envisaged in the current economic programme. gramme, the focus should be on the reforms needed to reach A clear commitment to macro stability and reforms will higher, more inclusive and sustainable long-term growth. Of help to ensure foreign and local investors remain confident course, maintaining fiscal discipline and consolidating recent about Serbia’s economic prospects. Regarding the relation- macroeconomic achievements would be necessary, but at ship between investor confidence and IMF arrangements, it this point there is no need for additional fiscal adjustment. So, is very difficult to measure that empirically. This is because the main purpose of such an arrangement should be to boost even though an IMF-supported programme may help sta- employment, competitiveness and potential growth. bilise the economy and boost confidence in countries with large macroeconomic imbalances, countries seeking an IMF ► In contrast, some Serbian economists believe that, arrangement are usually countries facing substantial eco- without the IMF, Serbia might lose some of the trust of nomic and financial difficulties, and typically weak investor investors. Do you think that might be the case? Is there confidence in the first place. Therefore, it is very difficult to a measurable relationship between investor trust and observe a clear, simple correlation.

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 45 ► How can the new government reassure investors, centrated in the energy sector in the first quarter—largely both domestic and foreign, that it intends to proceed due to the disruptions of EPS’s electricity production—and with reforms, with or without the IMF? in agriculture in the second quarter—partly due to a severe – It is first very important to consolidate recent macroeco- drought. Despite these specific sectoral problems, underly- nomic achievements by maintaining sound policies—espe- ing economic growth trends remain relatively robust, and we cially fiscal discipline. This does not mean, as I said earlier, are maintaining our baseline growth projection for 2017 at that additional fiscal adjustment is needed. But it is critical to three per cent. However, downside risks for annual growth maintain tight control over current expenditures, to ensure this year have clearly increased, because of weaker-than- that public debt—which is still high— expected growth figures in the first two remains on a firm downward trajec- quarters. tory. Strengthening institutions would help to cement recent macroeconomic ► Several prominent Serbian econo- gains. For instance, enhancing Serbia’s mists believe that in the next phase, fiscal rules would help to establish a higher pensions and wages would be credible anchor for fiscal policy and en- beneficial for GDP growth, albeit not sure public debt sustainability over the at the percentage mentioned by Ser- medium term, with or without an IMF bian officials. Why have you decided arrangement. Advancing the dinarisa- to remove that topic from the table tion strategy would enhance the ef- for a while? fectiveness of monetary policy and the – Serbia has an annual budget, so the resilience of the financial system. discussion about public wages and pen- At the same time, it is crucial to con- sion increases should take place in the tinue with the reform efforts in order context of the preparation of the 2018 to address the remaining vulnerabili- budget. Therefore, this issue will prob- ties and structural weaknesses of the ably be on the table in our next missions Serbian economy. Although some of later this year. the reforms are complex and cannot be implemented overnight, it is crucial to ► Do you believe that, with the show strong commitment and determi- first optimistic results about the nation by making steady progress. EU economies, we will soon experi- ence a sea change in terms of inter- ► What does the IMF’s experience est rates? Is Serbia today in a better say about why countries that were position than previously when it good pupils sometimes fail after comes to sustaining such a change concluding an arrangement? Despite specific sectoral in ECB policy? – One common problem is compla- – After a period of protracted weak cency. After implementing difficult problems, underlying economic growth, several economies in the euro adjustments and stabilising the econ- growth trends in Serbia remain area have shown upside momentum omy, in some cases the authorities in the first half of 2017, and their eco- became complacent and started to relatively robust, and we nomic outlook has also improved. How- relax fiscal discipline, quickly erod- are maintaining our baseline ever, stubbornly weak price and wage ing hard-won achievements. There inflation suggests that economic slack are also countries—including Serbia growth projection for 2017 at is still quite sizeable. Core inflation has in the past—that succeeded in restor- three per cent remained at very low levels of about ing macro and financial stability in the 1.1 per cent since March, and headline short term, but failed to decisively address the underlying inflation is expected to converge to the ECB target slowly in weaknesses and structural rigidities of the economy. These the next few years. In this context, monetary policy should structural weaknesses eventually undermined the short- remain accommodative in the near term, while any policy term improvement, causing growth to falter and fiscal and normalisation and rate increases should be very gradual. other macro problems to re-emerge. Even if we don’t expect a sharp increase in interest rates in the euro area soon, Serbia is in a much better position to face ► Does the observed slowdown in GDP growth, as well the gradual increase in interest rates expected over the me- as Serbia’s widening trade deficit, concern you? dium term in the euro area. Its fiscal position has strength- – We believe the slowdown in GDP growth in the first half of ened markedly, reflected in much lower sovereign yields, the year, as well as the deterioration of the trade balance, are while inflation has been kept at moderate levels, providing mainly driven by temporary factors. The slowdown was con- more space to the NBS. ■

46 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 47 48 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 49 CORPORATE We Are Committed To The Serbian Market

IGOR SEMENYCHEV General Manager of LUKOIL SERBIA AD, Head of the Balkan Regional LUKOIL Organisation

Since its arrival on the Serbian market in 2003, LUKOIL has invested 343 million dollars. Our strategy centres around establishing an efficient retail network and strengthening our presence on the Serbian market

Compared with 2015, retail and wholesale on the Serbian market. There are several went up by three and seven per cent respec- ongoing strategic projects, especially in en- UKOIL SERBIA AD is the second tively. The sales growth of ECTO fuels outside ergy and infrastructure. It is important to largest company by investment vol- Russia was 10 per cent. The operating profit us that relations between the two countries ume in the Serbian energy complex of foreign companies dealing in oil deriva- are stable and constantly developing and im- and one of the biggest exporters of tives increased by five per cent. As regards proving, because this allows for the smooth LEuro-5 diesel. LUKOIL’s tasks for 2017, we want to achieve development of business and benefits our our key performance indicators, realise the company, Serbia and its citizens. ► Mr Semenychev, your company has investment programme, maintain our mar- been active on the Serbian market for 14 ket shares, actively develop our offer of sec- ► You are the General Manager of LU- years now. As its General Manager, are you ondary goods and services, and continue KOIL SERBIA and the Head of the Bal- satisfied with the investment efficiency in promoting ECTO fuels. kan Regional LUKOIL Organisation. How Serbia? much is business affected by re- – With its 114 petrol stations, LU- gional relations? KOIL SERBIA is the second largest In the past 14 years the company has – Wherever it does business, LUKOIL company on the Serbian market. won public trust, which is invaluable. We not only adheres to the local legis- We have invested 34 million dollars constantly strive to justify this trust with lation and develops good relations in the building of 12 new petrol sta- with the local community and gov- tions. Only in 2014-2016 we invested the quality of our products and services ernment bodies, but also conforms 7 million dollars in the modernisa- in our retail network to corporate standards that apply tion of 101 petrol stations. In 2016, to all businesses. Being the centre of the company invested 2.9 million dollars. The Group’s foreign retail asset optimisa- the Balkan Regional Organisation, gathering We strive to be Serbia’s reliable partner. tion plan is completed and does not envisage together LUKOIL companies in Macedonia, Our revenue in 2016 was 261.5 million dol- any vital structural changes to the company Montenegro and Croatia, we aim to maintain lars. The same year, we paid 102 million dol- in this business sector. a functional and harmonious system. Bearing lars in taxes in Serbia. in mind that LUKOIL companies in all four In July and August 2017, we renewed our ► To what extent do the amicable rela- countries deal in oil derivatives, an efficient energy licenses for retail, wholesale and stor- tions between Serbia and Russia impact retail network is the first precondition for age of oil derivatives for the next 10 years. on LUKOIL’s position in Serbia? successful business operations. We strive Globally speaking, LUKOIL’s retail opera- – Ties between Russia and Serbia have exist- to maintain a high quality of service for our tions in 17 European countries and in the ed for centuries. They are brotherly, cultural, clients, expand our assortment of consumer U.S. have had positive results – there was an economic. As a commercial and economic goods and boost client loyalty. In addition to increase in basic indicators relative to 2015. partner, the Russian Federation ranks third retail, we also have wholesale oil derivatives

50 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS and offer a wide range of LUKOIL motor oils. (UK), to name but one. Its technical properties tions, we have made donations to various Conquering European corridors and all the have been confirmed in Serbia too, in the re- children’s institutions. Equally important is main highways in these countries is one of search centre of the Mechanical Engineering our support for the strengthening of cultural our key directions of development. School of Belgrade University. and traditional ties between Russia and Ser- bia. In this regard, we are actively involved ► The company has evidently invested a ► Corporate social responsibility is one lot in its business operations in Serbia. Con- of the priorities of LUKOIL’s business sidering the 21st century energy require- strategy. Which campaigns stand out? ments, how much importance does LUKOIL – I am proud to say that we follow the strat- attach to the fuels of new generations? egy of our parent company. Social policy – We follow modern trends and offer our cus- is very important to LUKOIL SERBIA. As a tomers new generation fuels, such as ECTO socially-orientated company, we have been Diesel, ECTO Plus and ECTO Sport. ECTO is a supporting individuals, children’s homes, ed- product line of innovative fuels with improved ucational and medical institutions ever since exploitation and environmental properties, we arrived on the Serbian market. Our key created with the use of cutting-edge technolo- projects focus on helping local governments gies. ECTO fuels increase the power of car foster cultural and spiritual family heritage. engines while reducing the consumption of Cooperation with local governments is cru- fuel. They are also environmentally friendly, cial for the realisation of these projects. For because they contain a lower level of sulphur. the second year in a row, under the Memo- ECTO is a LUKOIL global premium brand. randum of Cooperation with the City of Bel- These fuels have found their consumers in grade, we are carrying out various projects many countries worldwide. We started selling supporting the community's development them in Russia in 2006, while now they are in the fields of culture, sport, preservation of sold in 15 European countries. the Serbian tradition and language. Humani- The properties of ECTO fuels have been re- tarian projects in Novi Sad and Niš have re- affirmed by various international independ- cently been finalised. With the support of the in the realisation of numerous events whose ent research centres, both in Russia and in local governments of the two cities, and great aim is to bring the Russian spirit and art clos- Europe, such as Tickford Power Train Test Ltd. public interest, including their own sugges- er to the Serbian public of all ages. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 51 INTERVIEW A Unity Is Our Strength

INGEBORG ØFSTHUS Vice President of the Foreign Investors Council and Telenor Srbija CEO

The FIC’s biggest strength is in the promotion of views and suggestions that are the unified voice of more than 100 entities, whose operations depend on the development and growth of the entire Serbian market

e spoke to Ingeborg Øfsthus, Vice President of the FIC and Telenor Srbija CEO, about the legacy of this business association over the last 15 years.

WLast year saw investments at the FIC membership level in- ► crease by €5.2 billion, while the share of members’ contribu- tion to GDP increased by 3.7% in the last two years. To what do we primarily owe this impressive progress? – We owe it to two main factors: first of all, a few very large investors joined the FIC and, secondly, some FIC members continued with their investments in this market. The Foreign – The most important task for us, which, in fact, is not that new, Investors Council, as a voluntary association, continues to ex- is to continue growing and representing a unified voice of inves- pand its membership and each year brings progress in terms tors for acquiring better business conditions. We are dedicated of new members that accept terms and conditions for coopera- to this mission and, as a result, are happy to see that there is tion, to their mutual benefit. steady interest in joining among The FIC is one of few organisations investors who are not yet part of ► You have said that the increase our community. And not just com- in the share of GDP has been in- whose opinions and proposals are panies, but also senior representa- fluenced by the further develop- public and easily accessible to all, tives from the stakeholder com- ment and growth of individual munity, which is in a way a step FIC member companies. To what particularly via the White Book project further in the process of the FIC’s extent is this a result of their good development and growth. operations; and to what extent is it a result of the effects of the work of the FIC as an association dedicated to improving the ► What are the key attributes that attract new members to business climate in Serbia? the FIC and what makes the FIC unique compared to other – I would say that both elements enabled further growth and investor associations? development. To what extent, it is a difficult to say. Those two – The FIC’s greatest strength is the promotion of views and sugges- conditions are connected, since you cannot have a performance tions that are the common denominator of a majority of its mem- on a good level without an appropriate business climate, which bers. It is not the voice of one company or a group of companies, needs to support investors in their daily business operations. but the unified voice of more than 100 entities, whose operations depend on the development and growth of the entire Serbian mar- ► After 15 years of operations, what new tasks have you ket. Moreover, the FIC is one of few organisations whose opinions set for the FIC? and proposals are public and easily accessible to all, particularly via

52 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS TASK COOPERATION DIGITISATION The most important task for us is to keep on Each year brings new FIC members Digitisation and telecommunications growing and representing a unified voice of that accept terms and conditions for are fundamental to increasing the investors for acquiring better business conditions. cooperation, to their mutual benefit. competitiveness of Serbia and its economy.

the White Book project. We believe that our key principles are our the OECD, World Bank, IMF, other business associations etc. main attributes that attract new members: transparency, equality ► Among the important themes of the first Dialogue for and predictability. We also promote the principles of sound busi- Change were digitisation and e-government. How impor- ness ethics, setting the example of solid governance, both via FIC tant are these topics for accelerating economic growth and operations directly and members' operations indirectly. the operations of companies themselves, in the field of tel- ecommunications and in other areas? ► Which FIC recommendations from the past year have – Very important, as the Government needs to introduce E/M- had the greatest impact on positive changes in the busi- Government in order to build up its own efficiency and provide ness environment? a better service to the private sector and citizens. Digitisation – The main conclusions and messages from the White Book and telecommunication are fundamental to increasing the com- published last year are that significant improvements have been petitiveness of Serbia and its economy. made in the business climate through fiscal consolidation and changes in real estate and part of the gen- ► Did the first Dialogue for Change eral legal framework. achieve some tangible results? – The first Dialogue for Change event, with ► Where are your expectations not - being met? – Here we can talk about the FIC’s main successthen Minister with tangible Ana Brnabić results. and Our state propos sec- expectations going forward, of which there alretary to include Tatjana m-Government Matić, proved toin be the a greatdraft are three: 1) Accelerating important struc- Action Plan for Implementation of the tural reforms, especially the privatisation Strategy for e-Government was accepted and corporatisation of state-owned enter- and we expect its adoption and implemen- prises; 2) Better implementing laws, en- tation. In addition, good discussion on re- suring their consistent and efficient imple- solving the direct carrier billing issue was mentation. The way to do that is to create initiated and we hope that in the very near missing institutions, introduce clear pro- future we will move forward with ena- cedures and guidelines, cut unnecessary bling our citizens to pay for digital content bureaucracy and train people and, finally, The purpose of the Dialogue for via their monthly bills for telco services. 3) continue the efficient harmonisation of Change is to enable more direct Serbian laws with the EU Acquis. ► What is “m-government”, which you exchanges of views and ideas are advocating? ► How is the previously formed work- about business climate issues – m-Government is part of a wider e-gov- ing group comprising members of the ernment platform and means availability Government and the FIC addressing some of these issues? of public e-services on mobile devices. With high penetration of – This Task Force has been established to cover all priority is- mobile phones between citizens (129%) and increasing trends, sues dealt with by the FIC. It is concentrated around activities along with all the advantages of this platform, such as flexibility which can be swiftly executed, mainly by the changing of minis- and integration with all payment options, I believe strongly that tries opinions or GoV decisions. m-government can be a significant driver for digitisation. m- Government would bring higher reach and greater possibilities ► Another new FIC initiative is the Dialogue for Change. Who for completely new electronic services in public administration. can participate in this dialogue and how? – The purpose of this event is to bring public dialogue on business ► How good are the new legislative solutions being prepared climate issues to a new level, enabling more direct interactions in the field of digitisation and e-government; and how can the and exchanges of views and ideas. The main goal is to reach joint new FIC Committee for Electronic Commerce contribute to conclusions and agree on actions resulting in concrete improve- quality solutions in this area? ments of the business climate in Serbia. We gather FIC members – The new FIC Committee can contribute a lot in removing legisla- and teams from the relevant ministries, depending on the topic, as tive and other barriers for the further development of E-Commerce well as representatives of stakeholders, such as the Office of the and digital services. There have been some improvements of rel- Prime Minister of Serbia, the EU Commission and EU Delegation, evant laws, but further steps are expected in the period ahead. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 53 CORPORATE Ball Continues Investing In Serbia

BRANISLAV SAVIĆ Plant Manager, Ball Packaging Europe

A greenfield investment in Serbia may have seemed unreasonable at the time when Ball Packaging Europe launched its operations here, but each year it beats expectations. Today the company continues to invest in the country, and with the opening of the Global Business Service Centre it is building a headquarters for Europe and the AMEA region that will engage many people from Belgrade and Serbia

he Ball Serbia plant is one of the fit into all of that? becoming one of the leading plants. As of largest greenfield investments – Technology today makes it easy to over- last year, along with our special products, in Serbia, and one which is con- come seemingly impossible differences. we have also been producing for and ex- stantly growing and expanding The key to success is that you provide it port to markets around the world. Our ad- itsT operations in the country. As plant to people through a proper and sophis- vantage is found in our people, their dedi- ticated approach. Even when there is no cation and the passion they show, as well success is the result of the right combi- experience at all, with smart training, in- as the constant engagement and profes- managernation of the Branislav “talent Savićpool” explains,and the right this spiring and connecting – you will achieve sionalism with which they approach every employer, with strong innovative capaci- the desired goal and gain even more: dedi- task. When this "talent pool" is combined ties, who happened to understand the cated, thorough, paced and innovative em- with the right employer, one can really get broader market and its potential. engaged in these kinds of planetary In 2016 Ball Serbia sold around 1.5 activities you’ve mentioned. In ad- billion units, a record number since Our advantage is found in our people, dition, Ball continues to invest in the launch of its operations in the their dedication and the passion Serbia, and, with the opening of the Serbian capital. Since June last year, they show, as well as the constant Global Business Service Centre, we two new innovative Ball Packag- are building a headquarters for Eu- ing products have been produced engagement and professionalism with rope and AMEA region (Africa, Mid- in Belgrade: a can with a straw and which they approach every task dle East, Asia) that will engage many a BRE lid, enabling consumers to people from Belgrade and Serbia in temporarily reclose the can and continue ployees! Greenfield investment in Serbia various processes, such as finance, IT, etc. using it later, which is considered a seri- may have seemed unreasonable to some ous innovation in the packaging industry. initially, but the results achieved by our ► Year-on-year you invest more in inno- This move allowed the company to em- people quickly after the Belgrade plant be- vation, development and the expansion ploy new workers and engineers. came operational, and which have grown of capacity. What are the trends today constantly year-on-year, indicate that we like on the European and regional mar- ► When talk turns to Ball Packaging, did the right thing. Ball last year became kets for the production and use of cans? this is a story of huge numbers, world the world leader in the production of alu- – Innovation is very important, and we markets, and even planetary activi- minium packaging, and the Belgrade plant are currently focusing on everyday im- ties. Where does Ball Packaging Serbia has been very successful for over a decade, provements in technology and the way of

54 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS thinking that leads to waste elimination.. targets for recycling which helped to en- the can. In Serbia from 2005, from the Although strong in the region, the factory force the recycling, determined the roles very beginning of the Ball’s production in Serbia, with its special products, and in this sector and at the end resulted that we started Recan Foundation with an the GBS centre are important to the cor- packaging waste is one of the best organ- aim to help recycling activities as well to poration. ised sectors as a part of the EU Chapter educate public on recyclability of the alu- As the most sustainable, convenient and innovative beverage packaging, the drinks can has a constant positive trend on the European market, with an annual growth rate of two to three per cent. Twelve years ago, most markets in our region were young and emerging in terms of the per capita consumption of cans. Ball Belgrade has been creating and strongly support- ing the development of beverage cans on these markets, with a proactive and in- novative approach throughout the years. We export cans to various different mar- kets, aiming to provide an excellent level of service and support to our clients, both major international companies and entre- preneurial start-ups. Being close to the customers is our absolute priority, and to- gether we will, without any doubt, contin- ue to further grow the drinks can markets in the region and across the world.

► Adhering to the highest interna- tional standards, Ball Packaging plac- es special emphasis on CSR activities, Ball last year became the world leader in the production of both in its immediate surroundings, as aluminium packaging, while the Belgrade plant has become well as in improving the recycling in- dustry. How much support do you have one of the leading plants from the state in these activities? – Ball Packaging Europe from the very be- 27 negotiation process. At the moment minum can. Now our activities in Serbia ginning of the operations in Serbia had an we are aware that commercial packag- and Montenegro are part of the European open dialog with government on different ing waste sector is much better organised program Every Can Counts which is im- topics, including packaging waste man- compared to the household packaging, plemented in 12 countries across the Eu- agement where we had an opportunity and we are trying to provide solutions rope. We would also like to point out that to share knowledge and experience from and recommendation together with all with the support of newly established different countries where we have op- partners to continue this improvement Ministry of Environmental protection, big erations. This dialog is facilitated through together with the government. As a com- steps forward can be made towards im- different organisations, Serbian Chamber pany we will continue to be open to pro- provements in environmental protection. of Commerce, Environmental Committee vide the best experience related to the Our efforts are recognized and awarded of AmCham, NALED, SEPEN Association, sustainability and what our company several times, but recent award received Sekopak etc. The state created in 2009 is trying to achieve in introducing new from the Serbian Chamber of Commerce the legal base for the packaging waste technologies, innovations with an aim as a CSR Company is helping us to be management with introducing national to minimize environmental footprint of more ambitious in setting new goals. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 55 KORPORATIVNO: INTERVJU We Expect The Government To Continue Reforms DIMITRIJE KNJEGINJIĆ Vice President of the Foreign Investors Council and Lafarge Serbia CEO

The FIC expects the new Government to accelerate important structural reforms, particularly the privatisation and corporatisation of public enterprises, ensure the better implementation of laws and enable the efficient harmonisation of Serbian legislation with the EU acquis

progress. We are aware that this is not an easy task and that it and Lafarge Serbia CEO, about the reform process in requires great efforts and agreement among all stakeholders in Serbiae spoke and with Eurointegration. Dimitrije Knjeginjić, FIC vice president the process, but such reforms are essential for a better future for Serbia and its citizens. When it comes to new challenges, I would W like to use this opportunity to emphasise the negative practise of ► What are your expectations of today’s Government, when the three-year stand-by agreement with the IMF is being some laws (especially in the area of taxation) being adopted un- concluded? der urgent procedure and without public debate, and with short – In the previous two years the Government has significantly deadlines given for companies to adjust to the new regulations. advanced the business climate through fiscal consolidation and amendments to laws in the real estate domain, and partly the ge- ► With 15 years of experience in Serbia, the FIC has witne- neral legal framework. We welcome ssed all reform efforts to date, but the results achieved in fiscal consoli- also the abandoning of some im- dation and good economic indicators We are aware that conducting reforms portant goals. What is your me- (increased export, GDP growth), whi- ssage to the present reformers? ch have also been recognised by the requires great efforts and agreement – Our key message is that they should IMF and the World Bank, and which among all stakeholders in the process, not give up and that they need to en- provide the basis for great expectati- dure on the road of reforms aimed at ons regarding the future. The Coun- but they are essential for a better increasing Serbia’s competitiveness cil has three main expectations: the future for Serbia and its citizens compared to neighbouring countries. acceleration of important structural To increase the number of new inve- reforms, particularly the privatisation stors, Serbia needs to improve the in- and corporatisation of public enterprises; better application of vestment climate, reduce unnecessary bureaucracy and become laws and; further effective harmonisation of Serbian legislation more attractive to SMEs. with the EU acquis. ► If we view Serbia's progress through effective changes in ► What are the incomplete reform processes that should be the EU integration process, what kind of evaluation should finalised as soon as possible, and what new challenges sho- the Government receive? uld be given attention? – Generally speaking, we can say that the process of harmonising – We’ve been arguing for many years that it is essential to carry laws with the regulations of the EU is solid, but it is not only ne- out structural reforms, and here we primarily mean healthcare cessary to adapt laws, rather also to improve their level of imple- and education reforms, as well as the process of privatising and mentation. That is precisely where we have expectations, parti- corporatising social enterprises, for the country to make further cularly considering that more attention in accession negotiations

56 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS EUROINTEGRATION EQUAL TREATMENT EXPERTISE The Council has a unique capacity to support Our message is simple: Serbia Every investor can contribute significantly to Serbia’s European integration process, considering needs clear rules of the game the betterment of Serbia by disseminating that more than 70% of FIC members come from the that are the same for everyone in expert knowhow and best practises through EU, while others have a foothold in the EU market. order to attract more investment. the provision of tangible examples.

is paid to the issue of the way laws are implemented, and as such recommendations to 50 per cent, which is no mean feat. negotiations should help solve current problems related to the in- consistent and inefficient enforcement of laws. ► You simultaneously launched the Dialogue for Change initiative, which deals, amongst other things, with taxes and ► In the meantime, several chapters have been opened or their implementation. In your opinion, why are changes slow are to be opened dealing with the business sector, such as in this segment, which is extremely important for business? Chapter 20, on entrepreneurship and industrial policy, Chap- – Each company considers the quality of tax regulations when cho- ter 29, relating to the Customs Union, and Chapter 7, which osing where to invest, on the Serbian market or elsewhere. That is addresses intellectual property rights. How can the FIC con- why taxes are the ultimate theme. At the Council, we do not deal tribute to Serbia's progress in these areas? with tax rates, but rather regulations and their application, and our – The Council has a unique capacity to support the European message is simple: Serbia needs clear rules of the game that are the integration process, considering that more than 70 per cent of same for everyone in order to attract more investment. Changes are FIC members come from the EU, while others have a foothold slow because they are extremely complex. We see the improving in the EU market. In some areas, which are also primarily dealt of cooperation in this area through continuous dialogue, which we with in detail by our White Book, such as intellectual property conveyed at our event, with the goal of the state presenting its plans and customs, we can provide a greater contribution, because and draft new legal solutions in a timely manner, which the eco- we analyse the laws that apply to them in detail and provide nomy will then respond to by stating whether these solutions are specific recommendations for improvement that are available implementable under the suggested deadlines and how they will to the public in this publication of ours. impact on operations and, ultimately, the country’s GDP.

► One important issue being ► What are your expectations debated in Serbia is the extent Inconsistent implementation of the same of Tax Administration reforms? to which foreign investors can tax regulations by different organisational – Inconsistent implementation contribute to Serbia’s economic of the same tax regulations by growth and reindustrialisation. units of the Tax Administration and the different organisational units of What is your opinion? the Tax Administration and the – We think that all investors are lack of coordination between the Tax lack of coordination between equally important for the eco- Administration and the Ministry of Finance the Tax Administration and the nomic growth and development Ministry of Finance are key pro- of this country, because they are are key problems that should be overcome blems that should be overcome. ultimately all registered here and Furthermore, it is also necessary operate according to the laws of Serbia. Every investor can con- to reform the Tax Administration, particularly by separating tribute significantly to the betterment of Serbia by dissemina- all secondary activities and increasing capacities, as well as by ting expert knowhow and best practises through the provision introducing precise guidelines that will be made available to of tangible examples. the public.

► The FIC has formed a working group with the Serbian Go- ► Among the ten committees that function under the auspi- vernment to advance the White Book’s recommendations. ces of the FIC, the latest one deals with topics that are close to How does the formation of this group differ from FIC mem- you: Infrastructure & Industrialisation. What is in its focus? bers’ participation in numerous other working groups of the – This Committee also deals primarily with advancing legislation government? in relevant areas like construction, transport and the like. – We established this Working Group with the Government of Ser- bia in January this year with the idea of increasing the level of imple- ► Why did you opt for this combination of topics and which mentation of White Book recommendations from the current 35-45 companies does this committee bring together? per cent up to 50 per cent annually. The key objective is to improve – Our members opted to establish this Committee as the tenth in a the Serbian market’s competitiveness through the implementation row, and it currently gathers companies that deal with real estate of White Book recommendations and thus encourage the expan- and construction, as well as legal and consultancy firms etc. sion of existing investors and attract new ones, contributing to economic growth and the reducing of unemployment. This differs ► What are this Committee’s priorities in the fields of in- from the FIC’s participation in other Working Groups in terms of the frastructure and industrialisation? Council’s role, which is much more significant because this is a joint – In a sentence, the priority is to adopt laws that will enable the venture with the Government of Serbia that has a fairly ambitious further development of infrastructure and the industrialisation goal – to increase the overall level of implementation of White Book of Serbia. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 57 CORPORATE Results Confirm Business Model’s Quality

MARIJANA VASILESCU President of the Executive Board of Sberbank Srbija

The exceptional operational results achieved by Sberbank in the first half of this year, as well as in the previous period, confirm that the bank has gained the trust of citizens and business clients

e spoke with Marijana Va- el. Namely, growth of 11 per cent in de- the year is 35 per cent higher than in the silescu, President of the Ex- posits of the population, but also growth same period last year, and we expect that ecutive Board of Sberbank of 8.7% in deposits in the segment of by the end of the year it will be two and Srbija, about banking opera- large and medium-sized enterprises in a half times higher compared to last year. Wtions, digitisation and consolidation in the first half of the year, are a clear signal This kind of good result is based on an in- the banking sector. of the trust we have gained. crease in the number of clients, improve- ments in efficiency and the optimi- ► How satisfied are you with We expect the future to bring us new sation of operating costs. the bank’s operations this year? – We are extremely satisfied with growth, and our corporate policy ► What makes the Serbian operations, this year and in gen- is such that we are always ready banking market attractive for eral since Sberbank Srbija started to provide our customers with an your bank? operating on the Serbian market. –I would say that we are mutually We ended last year with a signifi- even better offer and to nurture attractive – the Serbian market for cant increase in the number of partnership relations the bank, but also that the offer of clients of as much as 62 per cent, the bank is attractive and recog- and during this year we are continuing to Placements with retail clients in the first nised as such by the market. record great results. half of the year grew by 23 per cent, while When we view the parameters deter- Deposits and placements with both re- the credit portfolio of medium-sized and mined by the size of a bank, we can state tail clients and businesses are growing large enterprises increased by 17 per cent freely that we are a medium-sized bank. and they are precisely the ones who best compared to the previous year. That fact itself represents our compara- confirm the quality of our business mod- The profit realised in the first half of tive advantage and gives us the opportu-

58 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS nity to be quick in making changes dictated by the market and trends, and to offer above-average service quality. In that context, I would mention numerous initiatives and projects, and among them I would highlight the unique partner- ship programme on the Serbian Super Card market, of which we are co-owners, and with which we have satisfied a special market niche. The development of digital banking is one of the key aspects of our business plan. I will note that we are very proud that we are the first bank in Serbia to enable customers to pay their bills via mobile phones - by scanning the 2D bar code. This service eases the payment of bills significantly, with maximum precision.

In the corporate business segment, we are positioned as a bridge between Serbian and Russian companies, while our share in foreign trade with Russia currently totals 20 per cent, with a tendency of continuous growth.

► In your opinion, what has been brought by the current wave of banking sector consolidation? – We believe that consolidation will be a wind in the sails of banks that will stimulate us to invest even more in our own development and growth. Generally, this year has seen signifi- cant changes in the ownership structures of banks, and we are awaited by even greater activity in the domain of digitisation, increasing the efficiency of operations and unavoidably inten- sive cooperation with FinTech companies. The strong support that Sberbank Srbija has, thanks to finan- cial giant Sberbank Russia and the members of the Sberbank Eu- rope Group, both in terms of expertise and specialisation, and in terms of virtually unlimited funds that we can lend to the Serbian economy, definitely represents our comparative advantage. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 59 CORPORATE: INTERVIEW Serbia Has Yet To Realise Its Potential ERNST BODE Executive Director Messer Tehnogas AD

Serbia has enormous growth potential, but many obstacles have yet to be removed. Reasonable legislation, a trim and efficient public administration and a professional, reliable and functional court system are among the most sought-after conditions for businesses to flourish

– Yes, I guess we were all bigger optimists ► As an investor, what are your strongest e spoke with Ernst Bode about in 2000. In the meantime, we all became re- reasons for remaining faithful to Serbia? Messer’s experience as a long- alists. Undoubtedly a lot has been done and –My company operates successfully and we term investor in Serbia, un- many things have been achieved, but this are satisfied with our financial performance. finished reform tasks, and the is a process that sometimes, unfortunately, I wish for Serbia’s enormous growth poten- Wrole of the Foreign Investors Council in the goes from one extreme to the other. After tial, which is in reach, to be raised. As I see Serbian economy’s transition process. all, many things have changed for the bet- it, we are realistically not talking about a few ter. However, let's not deceive ourselves: 5th percentage points of growth, but rather con- ► From today’s perspective, how impor- October 2000 was 17 years ago! A lot more tinuous high single-digit and low double- tant was the establishment of the Foreign could have been done and remains to be digit growth rates that could at least double Investors Council for the improvement of done. I believe the biggest issue for the fu- the GDP in a very reasonable timeframe. the investment environment and And I believe it wouldn’t need too the development of a constructive much to kick-start that process. dialogue between the business The FIC has been very successful community and state institutions? in being the voice of the real ► In your opinion, what should be – I believe the FIC has really been very sector, benefitting both foreign and the priorities of the Serbian Gov- successful in being a corrective factor ernment when it comes to remov- and providing some reality checks, so domestically-owned companies. ing obstacles to investing? it became the voice not only of for- I hope it will play an even more – We need reasonable legislation, a eign investors, but of the real sector important role in the future as a trim and efficient public administra- as a whole, benefitting both foreign tion and a professional, reliable and and domestically-owned companies. voice of reason for the economy functional court system. All in all, I The annual FIC White Book provides guess building efficient and reliable evidence of all that has been done, and its ture is to tackle the court system and ensure institutions is the challenge of the time. concept has been copied several times by it functions reliably for everyone again. others in Serbia. ► How do you see the future of the For- ► In which areas of reform is the FIC’s eign Investors Council? ► When it comes to the pace of reforms, work most important for Serbia today? – I hope the FIC will play an even more im- were you a bigger optimist back in the – It is important in almost all areas dealt portant role in the future as a voice of reason early 2000s; and how close do you think with by the FIC. Maybe I would see a prior- for the economy, both of Serbian companies Serbia is now to its goal of constructing a ity as being legal issues and issues regarding with foreign capital and Serbian companies functional market economy? property and land registers. with domestic capital. ■

60 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS COROPRATE We Want To Be Among The Region's Key Players

JELENA GALIĆ CEO at AIK Bank

The strategic goal of AIK Bank over the next few years is to become one of the leading banks on the domestic market and one of the most significant players in the region

IK Bank's purchase of Alpha Bank ambitions when it comes to expansion and deepening regional cooperation. is just one in a series of expected on the local market, but also, as you say, changes on the domestic bank- on the regional markets? ► AIK Bank is among the leaders in ing market. The consolidation of – The strategic goal of AIK Bank over the the segment of innovative and modern Athe market is a natural process dictated by next few years is to become one of the lead- banking services. Do you think digitisa- market conditions, and which should lead ing banks on the domestic market and one tion is sufficiently present in the domes- to greater efficiency of banking processes, of the most significant players in the region. tic banking system? We plan to achieve this by continuously im- – Digitisation is unavoidable if you plan to proving our client-focused services, by de- stay in the market game. It is very impor- says Jelena Galić, CEO at AIK Bank. ► What are your predictions for the veloping new products in the investment tant to set a digitisation strategy optimally banking sector in the period ahead? banking domain, but also by assuming an against market absorption opportunities – Considering that a large number of banks active and responsible role in the process and user preferences. I consider that, in operate on the relatively tight Serbian that sense, the domestic banking sec- market, the consolidation of the mar- The recently realised partnership with tor is competitive with trends in Eu- ket was expected. Increased competi- rope. AIK Bank, as one of its strategic tion in the financial services sector, Slovenia's Gorenjska Banka opened directions, especially in the segment coupled with technological innova- our route towards the EU market of providing services to the retail tion, will lead to more efficient and so- segment and SMEs, is focused on de- called client-centric processes, which will of consolidating the banking sector. When veloping digital services. In an era of an ultimately result in reducing the costs of it comes to the region, it is indisputable increasingly stronger presence of virtual banking services. We see AIK Bank as being that our recently realised partnership with communications and a shortage of time, one of the key players in the market con- Slovenia's Gorenjska Banka opened our clients increasingly value services that solidation process, as well as in the process route towards the EU market. We closely imply savings in terms of time, as well as of introducing technological innovations, monitor developments not only in Slovenia, 24/7 availability. The client will use a ser- which will strive, actively and responsibly, but also in other neighbouring countries of vice that is easily accessible to them, can to strengthen its position on the local and the region and in markets able to contrib- be carried out quickly and allows them to regional markets, as well as in opening up ute to our growth and the achieving of our manage their funds in a simple way. This towards the EU market. strategic goal. It is important to note that, is unavoidable for the further development alongside cooperation in terms of banking of banking services, and we are striving to ► After purchasing Alpha Bank, which services, we endeavour to contribute to im- be among the leading banks in Serbia in now operates under the name Jubanka, proving of relations in other areas of eco- terms of implementing online services that what are your specific further plans and nomic activity, with the aim of developing enable this. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 61 COMMENT We’ve Preserved Unity And Independence ANA FIRTEL Executive Director of the Foreign Investors Council

The two most important lessons we’ve learned from 15 years of successful activities are that we have preserved our unity and independence by insisting on firm rules, and that, with openness to dialogue and constructive criticism, we have shown readiness to constantly change in accordance with the challenges of each juncture

advocating for. The fourth principle is inclusiveness. All activities e spoke with Ana Firtel, Executive Director of the Fore- start from the bottom up, thus we are led by the interests and activi- ign Investors Council, about the principles of the Coun- sm of our member companies. cil’s work and its new activities. ► In such a large association, with members that don’t have W equal economic strength or the same interests, how do you en- ► It was in July 2002 that 14 major foreign companies esta- blished the FIC. Now, 15 years on, the association has almost sure equal participation and respect for the opinions of every ten times as many members. What does the FIC ID card look member? like today? – Primarily through clear rules and thanks to communication in – The Council today brings together 134 member-companies that which nobody has a privileged position. Our Statute stipulates operate in more than 30 different sectors, and that means a great that all member companies have equal rights and the same obli- wealth of experience and knowledge. Two thirds of them come from gations. However, in order for those statutory norms to have an the European Union, while the remainder hail from the U.S., Russia, effect they need to be implemented consistently on a daily basis. China, Israel, Australia and other countries. FIC members are an en- Trust is strengthened in this way, not through empty words, but gine for the development of Serbia, as con- through deeds, so that all members, both firmed by the fact that until last year they We primarily advocate for the small and large, feel free to share within had invested over $28 billion and that the association a certain problem they they account for more than 21 per cent economic integration of Serbia into face and to devise systematic solutions of GDP. FIC members account for about the EU, because we believe that jointly, together with other members. 18 per cent of Serbia’s total exports and It is also important to ensure commu- employ over 94,000 people. FIC members harmonisation with the regulations nication in which none are privileged. respect high ethical and corporate gover- of the EU can bring better doing Timely information is crucial in the 21st nance standards, which they demonstrate century, so within an association that in working with suppliers, in their relati- business conditions for all contains many competitors it is vitally onships with employees and in environ- important for everyone to receive infor- mental protection. mation simultaneously, without privilege.

► What are the key principles that have held the membership ► What are the main lessons of the 15 years of the FIC’s work together for a decade and a half? when it comes to securing internal democratic dialogue? – The first is predictability, because the rules that form the basis – First is to strictly respect the rules. We are rigid in that, but we con- of our operations are very clearly known. The second reason why sider that as being very important for us, because when you have members have stayed together is equity. The existing rules apply to firm rules it is actually through them that you preserve your inde- all equally, no matter which company is in question. The third key pendence and nurture the trust of members that their voice will principle of the FIC is consistency, because over the course of the carry the same weight as the voice of some other member. Second is past 15 years we have remained consistent in terms of what we are the need to be constantly open to dialogue, which implies openness

62 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS PRINCIPLES ENGINE TRUST

Predictability, equity, consistency FIC members are an engine for the development of Building trust among the Council’s and inclusiveness are the key Serbia, as confirmed by the fact that until last year members is vitally important, because principles that define us, and which they had invested over $28 billion and that they it is only in that way that we can reach we promote and respect in our work. account for more than 21 per cent of GDP solutions that will be acceptable to all.

to constructive criticism and a readiness to constantly change. One king committees, which define priorities in specific areas with a time thing is certain - the Council has changed throughout the years, in component. We are represented in the Working Group by individuals order to strengthen its internal democratic dialogue. And there is no selected by the membership, who carry predefined stances within doubt that it will continue in this direction. the working committees and the Board of Directors.

► The FIC’s most famous product is the annual White Book, ► Two new FIC committees have formed in the last year, one which measures the progress of the Serbian economy in for digitisation and e-commerce, and the other, the latest, for terms of improving the business climate. How is this kind of industrialisation and infrastructure. How did you decide on index recognised as a measure of progress in economic re- these specific committees? forms in Serbia? – This is an interesting question, because it shows how we are moti- – Year after year we record an ever-increasing number of referen- vated by members. They were actually the ones who first proposed ces to the “White Book” as a source of proposals to solve problems new committees, and then voted and decided which two commi- in the economy. We also have ever more inquiries for copies of ttees would be formed. the book from world-class libraries, such as the Library of Con- Of the six solicited proposals, two received the most votes. Thus, gress in Washington DC or the Leibniz Institutes. What we bring first, in September last year, the Digitalisation& E-Commerce Com- is the view of expert practitioners who mittee started working, and then, this work in companies and deal with year, the Committee for industrialisati- Serbia’s economic system on a daily The working group that we have formed on and infrastructure also started. basis. Alongside that, the fact that we with the Government of Serbia very are bring together companies from ► What challenges arise in the the EU and other parts of the world nicely fits into, complements and is operational management of such a allows us to compare the situation in reinforced by our existing activities. It large and complex organisation on Serbia with the broader environment. a daily basis? represents an upgrade of everything – The first and key challenge is to do ► The FIC and the Government of we’ve done so far and that we do multiple jobs simultaneously, and to Serbia formed a joint working gro- do them to a high level of quality. The up in late January to implement the second challenge is to be financially in- recommendations of the White Book. How does that working dependent, in other wordsor to remain faithful to your principle group function operationally? of financing activities solely from membership fees. This finan- – The idea for the formation of the working group came from for- cial independence of ours has its own cost, because our budget is lower compared to similar organisations. When you have a this idea gladly, because we saw the formation of the working group lower budget, then you have fewer resources, but the quality of asmer a mechanismSerbian PM that and would now President, enable us toAleksandar discuss the Vučić. recommendati We accept- the product must not be lacking. These are the main operational ons of the White Book with the State on a more regular basis and in challenges of our work. a better structured way. The working group brings together members of the Government ► The FIC decided late last year not to join the Mixed Cham- and the FIC Board of Directors, while operational tasks are condu- bers Council of the Chamber of Commerce & Industry of Ser- cted through subgroups comprising representatives of state admi- bia. What does this decision mean for future cooperation nistration and the chairs of the Council’s working committees. The- between the FIC and the CCIS, and other foreign investors se subgroups are focused on seven key areas: taxes, labour rights, gathered within the Council? real estate and construction, inspection and food safety, e-commer- – With the State’s decision to make CCIS membership compul- ce and e-government, bankruptcy and foreign exchange operations. sory, it gained a privileged position among business associations. For each area there is a defined working plan, a set of priority White This is the reality with which we were all confronted. Last year Book recommendations to be fulfilled. there was an invitation to for membership in the Mixed Chambers Council. In accordance with the Statute of the FIC, we considered ► How does this new activity fit into the existing functioning this invitation at the Assembly and brought the decision not to of the FIC committees and the participation of the FIC in other join the council. I think the result of members’ voting was signifi- government working groups and initiatives? cantly influenced by the rule of overriding votes within the Mixed – It fits in completely and complements everything we've done to Chambers Council. This does not mean, however, that we will not date and will continue to do. For example, the proposed plan of the cooperate with the CCIS and all other associations. We are stra- Working Group isn’t some new, revolutionary plan, but rather is ba- tegically always open to cooperation with everyone on a project sed on the White Book, but also on the two-year plans of the wor- basis, on topics of mutual interest. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 63 FOCUS Digitisation Can Be Our Winning Ticket

GORAN PITIĆ hairman of the Management Board of Societe Generale Bank Srbija

ficiency, reduce costs and ensure adequate returns on capital (for several years already the return on capital in Serbia is among the lowest in the region). The first requirement for attractiveness are sustainable, com- paratively high GDP growth rates, with the raising of the invest- ment potential of Serbia. This means raising competitive abilities, the level of attractiveness for investments, as well as the living standards of the population. An important precondition is perseverance and commitment to European integration, because that defines the quality of future operations and social arrangements, and in some way, provides a

Serbia can and must offer investors the most competitive topic today – the digital transformation of society

► What can Serbia do to remain attractive to major players “guarantee” for operations in the future. in the banking sector, at a juncture when it is difficult to ex- Likewise, it is also necessary to raise the administrative efficiency pect high returns in the short term? of the state: from the tax administration to courts, efficient imple- – As in other sectors, in the banking sector Serbia is leading a com- mentation of the law, with which the predictability and transparency petitive game both with countries of the region and with the more of operations is increased, and the scope for corruption reduced. developed countries of Europe. The moment at which that’s un- In a world of new technological revolutions, the strong devel- folding is unique and not at all simple. On the one hand, for many opment of banking and financial innovations, and the orientation years now Europe has been marked by a trend of low rates of eco- of banks towards digital operations, Serbia can and must offer in- nomic growth and interest rates, high levels of problematic loans vestors the most competitive topic today – the digital transforma- in a higher number of countries, strict regulatory requirements, tion of society. With this it would enter modern global trends of but also “imposes” a redefining of the business models of banks, integration and significantly raise the level of attractiveness of its with the constant demand of shareholders to raise operational ef- market. ■

64 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FOCUS People – The Most Valuable Investment

NENAD MIŠČEVIĆ

Commercial Director at Pepsico Western Balkans

► With almost a decade of experience on this market behind you, what would you say to a new investor in Ser- bia today? – From the perspective of a multinational company that has been operating in the Western Balkans since 2008, the best advice I can share is our experience and the PepsiCo business philosophy Performance with Purpose. With the acquisition of Marbo Product, PepsiCo added Serbia and Bosnia-Herzegovina to the list of 200 countries in which it operates, with which it also added to its rich portfolio local brands Chipsy, Clipsy, Par- don and Gud, which had then already built their own market positions. Over time, with the strength and expertise of the multinational PepsiCo company, our brands solidified their po- sitions among the leaders in their categories. Observed from the perspective of our Also becoming part of this multinational company were the - experience, Serbia has definitely long since vac, and in Laktaši in Bosnia-Herzegovina. Again thanks to the been an attractive investment destination strength,production expertise units in andMaglić, support in the ofmunicipality this global ofcompany, Bački Petro our production facilities were additionally modernised, and today on the territory of the Western Balkans we set high standards in the production of snacks. By applying these standards, our their work, which contributes to our company achieving signi- production facilities can now be compared to any PepsiCo pro- ficantglić. We performance constantly emphasiseresults on ahow daily proud basis. we They are are of themour most and duction facility anywhere in the world. valuable investment and every investment in their education, Another very important element of our operations are our motivation and advancement has had manifold impacts on the suppliers, local collaborators capable of responding to our company's successes. demands regarding the production of three exclusive PepsiCo I believe that the quality of the workforce, good local su- varieties of potato, but also in amount of up to 35,000 tonnes, ppliers, as well as the existing infrastructure, but also even which is how much we buy annually. attractive local companies or brands, represent additional re- And lastly, but perhaps most importantly, are people. Today asons for Serbia to be recognised as an attractive investment our company employs 1,300 hardworking and dedicated peo- destination. And observed from the perspective of our expe- ple, more than 500 of whom are employed at the factory in Ma- rience, Serbia has definitely long since already been that. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 65 FOCUS Belgrade - Regional Business Centre

VLADISLAV LALIĆ

regional director for development, IKEA Southeast Europe (Croatia, Romania, Serbia and Slovenia)

connection with other countries in the SEE region. It was established in 2008 to support expansion in Serbia, Slovenia and Croatia, and from 2010 we also added Romania to our portfolio. Belgrade is ideally positioned to enable easy mobility for our colleagues who have regional responsibilities. It is connected via a highway to Croatia and Slovenia, with a maxi- mum drive time of four and five hours respectively. Driving

An improving business climate and growing economy makes Belgrade an attractive regional centre for business development

► What compelled you to choose Belgrade as IKEA’s he- distance to Romania varies, depending on the city and road adquarters for Southeast Europe? quality, due to the fact that Romania does not have a deve- – IKEA SEE recently opened its third store in the region and loped highway network. More importantly, Belgrade airport the first in Serbia (Belgrade East). This will be the first step in is a major aviation hub for the entire area of Southern and our two-stage Establishment Plan for Belgrade, which inclu- Eastern Europe. Belgrade is the only capital from which it is des two stores over the long term. The IKEA SEE Regional Of- possible to fly directly to the other capitals of the region. fice is located in Belgrade in order to support our expansion In previous years, Serbia has also seen significant impro- in the region, as well as the operational and commercial suc- vements in moving towards a more favourable business ena- cess of our growing number of existing stores and networks bling environment. Such an improving business climate and of other sales points, such as so-called pick up points. growing economy makes Belgrade an even more important For practical, logistical and operational reasons, the Ser- regional business centre and, as such, an even more attracti- vice Office is located in Belgrade due to its advantages in ve location for all future business development. ■

66 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 67 COMMENT Joint Engagements To Even Better Results

GORAN PEKEZ president of the FIC Anti-Illicit Trade Committee (JT International a.d. Senta)

Remarkable results have been achieved in combatting the grey economy. However, in order for this process to be addressed comprehensively, it is necessary to fully implement the Law on Inspection Oversight, harmonise sectoral laws with the umbrella law and ensure good inter-agency cooperation

llicit trade, i.e. the grey economy, is still other hand, there has been an increase in Law on Inspection Oversight should fol- among the more significant problems in the tax base, which is in line with the fact low, i.e., the harmonisation of sectoral laws Serbia. That is precisely why combatting that 2016 saw 3,656 unregistered entities with the umbrella law. Given that this activ- this problem has been marked as one of discovered that were mostly subsequently ity implies inter-sectoral cooperation, the theI state’s strategic priorities and why the registered. Contributing to this in particu- importance of the role of the Coordination Serbian Government declared this year the lar was the implementation of the new Law Body in this process is clear. A similar situ- Year of Combatting the Grey Economy. on Inspection Oversight, which introduced ation exists in the field of combatting the A series of measures has been taken the measure of controlling the operations illegal tobacco trade, where there is a pro- to date, with the new Law on Inspection of unregistered entities. posal of the Working Group to amend the Oversight adopted and amendments law and, given that this initiative has adopted to the Law on Tax Proce- been waiting since October, the pos- dure and Tax Administration, and a We hope that coordinating sibilities of the competent authorities coordinating body has been formed inspections under the leadership of on the ground in fighting this illegal to direct activities aimed at combat- the Tax Administration will be even trade are limited, as they cannot use ting the grey economy, led by Finance all necessary legal authority. - more efficient When it comes to operational sults are not lacking. measures, we hope that coordinat- MinisterSpecifically, Dušan total Vujović. tax Ofrevenues course, repaid to Thus, this is a systematic approach to the ing inspections under the leadership of the state in 2016 increased by 6.5% com- fight against illicit trade, which is part of the the Tax Administration will be even more pared to 2015, and that trend is continu- National Programme for Combatting the efficient. ing this year. Budget revenues increased Grey Economy. In this process it is crucial Why is the fight against the grey econ- by 73 million euros in the first quarter of to insist on applying the programme and all omy important? In addition to protecting 2017 alone. There are several reasons for measures that it envisages. Conditions exist budget revenues, reducing this phenom- these kinds of results. First and foremost, for this, particularly given that we have good enon makes the market more stable and the efficiency of VAT collection and excise initial indicators, but also a concrete action contributes to creating even more favour- has increased, which is the best indicator plan that envisages activities until year’s end able conditions for doing business. That of reduced trade volumes in illicit flows. 2018. We also have the support of the Gov- is a basic precondition for maintaining This increase stems from the fact that the ernment in implementing activities. the existing level, but also for the growth growth of economic activity was still lower When it comes to future regulatory of investments in the economy and at- in relation to increased collection. On the measures, the full implementation of the tracting new foreign investors. ■

68 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 69 COMMENT New Technologies Will Create New Business Models In Serbia

JASMINA VIGNJEVIĆ president of the FIC Digital and E-Commerce Committee (Telenor d.o.o.)

The extent to which Serbia will be a place where innovations and innovative business models develop depends greatly on an adequate legal framework

he Digital and E-commerce Com- the importance of the transaction, with the use tronic signatures, documents and services of mittee was founded with the idea of devices we already possess (e.g., a mobile trust in a unique way, and the expectation is of responding to some of the chal- phone or bank card). With this we would en- that its adoption will result in advancements lenges brought by digitisation, or able everyone to conclude contracts electroni- in the domain of archiving and maintaining Tthe so-called fourth industrial revolution. cally simply and without high costs. We also business records. However, the focus of the Topping the list of the world's most valuable advocate for improving and developing new draft is still on the qualified electronic signa- companies are ever more of those who oper- electronic administration services. Consider- ture, while defining the electronic identifica- ate exclusively in the digital environment and ing the high penetration of mobile phones, of tion scheme as a more flexible mechanism is don’t possess physical products. On the other 129%, and the trend of dominant use of the left to the bylaws. At the moment of writing hand, it is enough for one site or application, internet on mobile devices, we have recom- this article, the Government has adopted this such as Booking or Uber, to change some in- mended that public administration approach law and its adoption in the National Assem- dustry at a global level. All this indicates that citizens in the form of m-administration, a bly is expected. It is extremely important for this process is well underway, and the extent platform that would be tailored to the needs bylaws to regulate electronic identification to which Serbia will be a place where schemes in a more flexible and simpli- innovations and innovative business Our key recommendation is for fied way that will enable the wider use models develop depends greatly on an of electronic signatures. adequate legal framework. public institutions to enable the The second document comprehen- The committee, whose members payment of all taxes electronically, sively envisages concrete measures for come from various sectors – banking, so that an individual is not required the establishment of electronic admin- telecommunications, insurance, law istration. We see the networking of state and other areas – has identified several to provide paper proof of payment authorities, the establishment of basic key areas that need to be improved. The registries, the improvement of payments simplifying and wider application of electronic of users and integrated with m-banking and and the adjustment of electronic services to all signatures by citizens is the main prerequisite other payment methods, which would enable devices as the most important factors. Our pro- for the development of e-business. The current services to be fully realised with one device. posal to include m-administration in the Draft concept is adapted to businesspeople who pos- On the regulatory front, the last year has Action Plan has been accepted and we expect sess technical knowledge and conclude impor- seen the publishing of the Draft Law regulat- its adoption and implementation. tant transactions. Thus we suggested the intro- ing electronic operations and the draft Action Members of the Committee will also be duction of multi-step authentication, where the Plan for the development of eGovernment. dedicated to improving legislation in this identification mechanism would be adapted to The new law will regulate the area of elec- field in the period ahead. ■

70 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS COMMENT Significant Progress Achieved

MILICA STEFANOVIĆ president of the FIC Food & Agriculture Committee (The Coca-Cola Company-Barlan S&M d.o.o.)

Major breakthroughs have been made in the previous period on complex issues, such as amending the Law on Inspection Oversight and understanding the need for amendments to the Food Safety Act

industry via dialogue that was established for is the payment of laboratory analysis costs, ood safety is a fundamental issue of mutual benefit. Together we overview the ob- for which we now know the Ministry is work- our industry, as well as of all play- stacles that confront manufacturers in their ing on a solution that should eliminate this ers in the field of legislation, super- work and seek the best solutions. disparity between regulation and practise. vision and production. We live in Another long-awaited advancement was Considering that this issue impacts directly timesF when trust in institutions is at a very achieved with the complete application of on the costs of doing business, we hope that low level globally, while we are surrounded the Plant Protection Act, which removed a as manufacturers we will have the opportuni- by information and disinformation related large previously grey zone when it comes ty to participate in the dialogue before adop- to food safety, principles of proper nutrition, to safety and the proper use of plant protec- tion, in order for us to immediately come up ideas about what is healthy and what isn’t. tion products. with an optimal solution for all parties. All of these circumstances ensure this issue is This is a sector where the legislation is Managing food safety on the basis of risk extremely complex, even more so given that most often in place – harmonised with Eu- analysis (which is currently applied only these issues concern everyone; we all depend ropean law, defined by regulations and other in the veterinary field) certainly remains a on the availability of food and want only the bylaws. However, most problems occur in ap- huge area that producers gathered in the FIC best and healthiest food for ourselves Food & Agriculture Committee expect and our families. Thanks to dialogue between the the Ministry to succeed in establishing We are fortunate in our country that in the coming period. This, along with we have an abundance of high-quality Ministry of Agriculture and industry, essential amendments to the Law on and affordable foods, and major break- we today jointly view obstacles that Food Safety and accompanying bylaws throughs have been made in the previ- producers encounter in their work that would harmonise the whole area ous period on complex issues such as with European regulations, is part of a amending the Law on Inspection Over- and seek the best solutions continuous process of improving pro- sight, understanding the need to amend cedures, creating a predictable busi- the Law on Food Safety and, no less impor- plication. Whether that comes down to differ- ness environment for responsible producers tantly, establishing a dialogue between the ent interpretations of legislation by different and freeing up the state capacity to deal with state and producers. All this benefits all of us, implementation bodies or long-term incon- oversight of risky producers. And all of this as food consumers who need to trust that the sistent application of certain parts of acts, all should lead to all of our consumers having food around us is safe, properly declared and of which creates unnecessary space for po- full confidence in the whole chain that brings responsibly advertised. tential problems and misunderstandings, but food to their table, foods of controlled quality, A very important step was made in open- also unpredictability in terms of the working with accurate declarations and other related ing the Ministry of Agriculture up towards conditions of manufacturers. One such issue information important when choosing food. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 71 CORPORATE Ease Investors’ Access To The Domestic Market Serbia should improve the legal framework and practises, in areas such as the freedom of movement of goods, workers and capital, the right of business settlement and the freedom to provide services, and other areas where it is essential to ease access to the domestic market for investors from the EU and the whole world DR NEMANJA ALEKSIĆ IVANA MARAŠ Lawyer, Aleksić and Associates Joint Law Office, Novi Sad Lawyer, Aleksić and Associates Joint Law Office, Novi Sad

lthough Serbia is marked by a constant inflow of for- nications rights, copyright and related rights, accounting, pub- eign investment, a lot still needs to be done to further lic informing, as well as advertising and media, all of which are improve and modernise the work of domestic institu- tions, in order to make the investment environment The European Union opened two more negotiating chapters A withdealt Serbiawith by on the 20 Aleksićth June 2017:and Associates Chapter 7,Joint on Lawintellectual Office. prop- erty rights, and Chapter 29, on the Customs Union. Customs Novimore Sad. attractive, says Dr Nemanja Aleksić, considers lawyer procedures have already been acceler- Nemanja Aleksić, of the Aleksić and Associates Joint Law Office, An example of where domestic ated considerably. Both areas are, on the ► How much has Serbia progressed in whole, harmonised with European rules. harmonising its legal framework and legislation and practise deviate practise with European legislation? from European and world practise ► Has that also impacted on a change – The harmonising of Serbia’s legal in the requests you receive from cli- framework and practise with European are the legal constraints on ents? legislation, in the sector of the economy, obtaining property rights for – Yes, the harmonisation of the Serbian is primarily carried out through the legal framework and practise with Eu- process of European integration, in immovable property prescribed ropean legislation also affected a change which Serbia has achieved significant for foreign nationals in the structure of our clients’ demands. progress. Serbia has signed the Stabi- There are increasing demands related to lisation and Association Agreement, which came into force on foreign investment, then media rights and similar. 1st September 2013. Serbia has opened six of the 35 EU acces- sion negotiation chapters, with the greatest emphasis placed ► Considering your experience with clients, could you on chapters 23 and 24. By the end of 2016, amendments to please cite a few examples of where domestic legislation laws had achieved significant harmonisation of the laws of the and practise deviate from European and world practise, Republic of Serbia with the laws of the European Union in the and where it would be good to improve the domestic legal areas of company law, intellectual property rights, telecommu- framework?

72 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS – An example of where domestic legislation and practise deviate and the removal of administrative barriers to investment. For- from European and world practise are the legal constraints on eign investors are not yet fully equal with domestic investors obtaining property rights for immovable property prescribed in some areas, which creates problems. Testifying to positive for foreign nationals. Likewise, in the practise of local courts, changes in the business environment is the news that foreign deviation from European and world practise sometimes occurs, companies will soon be able to participate in the Serbian de- in favour of debtors and at the expense of creditors, in the form fence industry by up to 49 per cent, thanks to amendments to of unjustifiably drawn out proceedings or in interpretation of the law prepared by the Ministry of Defence. the norms of material rights. We primarily see a need to further improve both the do- ► How much could the organising of the environment for mestic legal framework and practise in the continuation and digital communication, primarily through e-government, intensifying of the harmonisation of the laws of the Republic contribute to simplifying procedures and obtaining docu- of Serbia with the laws of the European Union, through the ments for your clients? opening of new chapters in areas such as the free movement of – Extensive activities have been carried out in Serbia on the goods, workers and capital, the right of business residence and environment for digital communication, primarily through e- freedom to provide services, public procurement, competition government, which has contributed significantly to simplifying policy, financial services, energy, taxes and financial control. In procedures and accelerating the acquiring of documents for our the noted areas it is essential to ease access for investors from clients, especially when it comes to obtaining “electronic” build- the EU and the whole world to the domestic market and the in- ing permits, submitting tax applications and similar. Serbia had vestment of capital, including the acquisition of property rights the highest e-government development index in Europe in the on immovable property, primarily on 2014-2015 period, according to the UN’s agricultural land and built structures, 2016 electronic administration survey. along with the guaranteeing of the legal An advantage of domestic law From 2020, the process of registering security of their investments and the firms in representing foreign cadastral property will be fully electron- provision of fast and effective legal pro- ic. The inclusion of the e-cadastre and e- tection in proceedings before domestic companies is reflected in their space means that the whole process of courts, administrative organs and other better familiarisation with the construction, from the creation of plan- state bodies. ning documents, via the issuance of per- regulations of the Republic of mits, to the registration of what is being ► To what extent can it be said today Serbia, particularly the practise constructed, is done simply, quickly and that creditors are well protected in of domestic courts and other in an electronic procedure. our system? – With amendments to procedural laws, state bodies ► In your opinion, what are the ad- particularly the Law on Bankruptcy, vantages of domestic law firms in rep- which significantly restrict the rights of persons affiliated with resenting foreign companies, compared to international the bankrupt debtor (owners, founders and their dependents), law firms that also operate here? with which the practise of various “friendly creditors” blocking – Foreign lawyers, or “international law firms”, are able to op- the flow of proceedings and the settling of debts to other credi- erate in Serbia in accordance with the conditions prescribed tors has been prevented, and the adopting of the new Law on by the domestic Law on Advocacy, after having previously Execution and Provision, which extends the competence of pub- been entered in the registry of attorneys. An attorney of a lic executors, the protection of creditors in our system has been foreign citizen, enrolled in register A of the registry of attor- significantly increased. neys, is limited to providing verbal and written legal advice and opinions that relate to the application of the laws of his ► To what extent does the arrival of large foreign compa- country of origin and international law. An attorney of a for- nies and their business practises impact on improving and eign citizen registered in register B of the registry of attorneys modernising the work of domestic institutions? is equal to the service of a domestic lawyer, provided that in a – Of course, the arrival of large foreign companies and their three-year period from the date of registration they can only business practises has had a positive impact on improving and operate in the Republic of Serbia with a domestic lawyer. In modernising the work of domestic institutions. Last year saw addition to these noted administrative constraints, an addi- around two billion euros of foreign investments invested in Ser- tional major advantage of domestic law firms in representing bia. However, a lot more still needs to be done in this field to foreign companies is reflected in their better familiarisation attract foreign investors, through the further improvement and with the regulations of the Republic of Serbia, particularly the modernisation of the work of domestic institutions, and that practise of domestic courts and other state bodies, with con- means a more efficient judiciary, the prevention of corruption siderably lower costs of representation. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 73 THE FOREIGN INVESTORS COUNCIL Promoting A Sustainable Business Environment For 15 Years Since its establishment, the Foreign Investors Council has been guided by the same set of principles – consistency, transparency, equality and predictability. Today, as in the past, the FIC is an agile promoter of a predictable and clear business environment, a level playing field and sound business ethics

White Book Launch event - 2012

he Foreign Investors Council (FIC) was founded in 2002, tries all around the globe. Two thirds originate from the Europe- with the idea of helping its member companies and the an Union, while others come from the U.S., Russia, China, Israel, entire economy to grow, by assisting Serbia in develop- Australia and elsewhere. They actively support Serbia’s econom- ing a fully functional market economy. Fifteen years later, ic integration into the EU and have proved to have a unique ca- thereT are many statistics that testify to the achievements of the FIC. pability of being a private sector focal point in the EU integration The association initially consisted of 14 major foreign inves- process, given that over 75 per cent of members come from the tors then operating in Serbia. The establishment of the organisa- EU, while the rest have the footprint on EU market. tion was supported by the OECD Investment Compact SEE. The Since the inception of the association, FIC members have in- FIC today brings together over 130 companies operating in 30 vested more than €28.7 billion in the Serbian economy. This fig- different business sectors and originating from numerous coun- ure alone testifies to the fact that FIC members have a long-term

74 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS interest in Serbia and a desire to help the country flourish and and six cross-sectoral. Among the four sectoral committees are increase its competitiveness. Member companies today account the Food & Agriculture Committee, Leasing & Insurance Com- for 21.7% of GDP, 22.2% of Serbian exports and 18% of Serbian mittee, Real-Estate Committee and Telecommunications & IT corporate income tax state revenue, based on 2015 data. The Committee. Among the six cross-sectoral committees are the Council’s members directly employ more than 94,000 people. Anti-Illicit Trade Committee, Digital & E-Commerce Commit- The FIC grows and expands continuously. Only in the period tee, Human Resources Committee, Infrastructure & Industrial- September 2015/ 2016 members’ investments grew by €5.2 isation Committee, Legal Committee and Taxation Committee. billion, while their direct share of GDP increased by 3.7% over The work of the committees is indispensable, as they continu- the two-year period (2013-2015), based on further growth ously conduct analysis of the current business climate and assess and the influx of new members. These numbers clearly express existing legislation and its implementation. Committee mem- the FIC’s desire to be Serbia’s long-term partner for growth. bers participate actively in the preparation of new legislation by The FIC prides itself on being a strict guardian of the busi- providing comments and proposals, as well as participating in ness community’s interests, while at the same time being a re- working groups for the drafting of laws and regulations. Based liable partner of the Government of Serbia and other relevant stakeholders. As such, it promotes solid business ethics and high corporate governance principles within the organisation and towards local companies, the Serbian Government and other external stakeholders. In its everyday activities, as well as in its communication with the community, the FIC is faithful to several principles – the most important of which include consistency, transparency, equality and predictability. The FIC has a clear and transparent operational approach and prides itself on never standing be- hind the interests of a specific company or business group, with every initiative having to be agreed by members within rele- vant committees and endorsed by the Board of Directors. This means that all decisions are made from the bottom upwards. This decision-making process has to ensure that the organisa- tion speaks with a unified voice and promotes values accept- EU, Privrednik, FIC, AmCham Conference, 07.08.2013 able to all members. All member companies have equal rights and the same obligations. This equality means that existing Since the inception of the association, FIC rules apply to all equally, regardless of the size of the company. members have invested over €28.7 billion in the Another important principle is consistency. Over the past 15 years the FIC has remained consistent in what it is advocating. domestic economy. This figure alone testifies The FIC is governed by the Assembly of the Council, the that FIC members have a long-term interest in Board of Directors, the President and the Executive Director. Serbia and a desire to help the country flourish The Assembly gathers together all members to decide on issues of strategic relevance and determines the broad con- and increase its competitiveness cept of the FIC’s future involvement. It elects members of the Board of Directors with a two-year mandate. The Board pro- on their expertise, the FIC is able to provide concrete reform poses long-terms plans, programmes and specific targets for proposals, to advocate for further liberalisation and the removal FIC activities, which are approved by the Assembly. The Board of excessive bureaucracy and other barriers to doing business. additionally determines mid-term programmes and develop- Thanks to such an operational structure, members companies ment plans, decides on the FIC’s organisation of, and partici- can share best practices of FIC companies among themselves, pation in, public events, decides on the Council’s membership but also with the broader business community. in other organisations, and approves the basic principles of The FIC presents its members’ views in a systematic man- the structure and operations of the Council’s committees. The ner. The FIC’s best-known product is the White Book. Pub- Chair of the Board of Directors acts as FIC President, which lished on an annual basis since 2003, the White Book analyses means that he/she provides general leadership of the Council the business climate in Serbia and offers concrete recommen- and are entitled to represent it legally. dations for the improvement of the business environment. The The Executive Director is appointed by the Board of Direc- book tracks regulatory developments year-on-year and covers tors and is responsible for organising the day-to-day work of all important segments of the regulatory framework: from the the Council, its bodies, committees and documentation. overall legal framework, corporate law, competition protec- FIC expertise is the result of the work of its members, who tion, taxes and the environment, to specific sectoral presenta- are actively engaged in one or several of the association’s com- tions. The publication is written by FIC members and includes mittees. The FIC has 10 committees at present: four sectoral the great involvement of the entire membership, to ensure it

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 75 truly presents the positions of the majority and is used as a Book recommendations and monitor the implementation of platform for an active dialogue between the FIC and the Ser- those measures. More specifically, the goal of the Task Force is bian Government. to improve the implementation of FIC White Book recommen- The release of the latest edition is promoted every year in dations and achieve 50% progress on an annual basis, from the fourth quarter, at a prestigious high-level event. the previous average of 35-45%. Another important event organised by the FIC is the Reality The Task Force is led on the government side by PM Ana Check Conference. Aimed at reviewing the implementation of - recommendations contained in the latest edition of the White - Book, the Reality Check Conference has been held annually ingBrnabić, of FIC while committee its work chairpersons is coordinated and by representatives the Office of the of Dep the since 2010, usually around six months after the release of the stateuty PM administration, Zorana Mihajlović. and is It dealing has six expertwith FIC sub-groups priorities consistlike tax- White Book, with such a timeframe enabling reviews of reform es, labour, inspections & food safety, real estate, e-commerce path trends. The event’s plenary session brings together the & e-government, bankruptcy and forex. The outcome of this highest officials of the Serbian Government and the top man- work must have a positive impact on the business environ- ment, either by making it clearer or more compact. The FIC prepared a proposal of the work plan, concentrating on six key areas and suggesting priority activities that can be swiftly executed, mainly by the changing of ministerial opinions or government decisions. The next White Book edition, due in November this year, will track the success rate of this joint effort. As of 2017, the Foreign Investors Council introduced the “Dialogue for Change”, a new format of dialogue between the Serbian Government and the FIC, which is intended to allow more direct interaction and exchanges of views and ideas among interlocutors. The first “Dialogue for Change”, held on 7th April, was dedi- cated to digitisation & telecommunications, while the second, on 27th June, focused on tax regulations and their implementa- tion. These dialogue events are intended to be held regularly FIC netvorking koktel 2014 throughout the year. At the inaugural event, then Minister of Public Administration The FIC prides itself on being a strict and State Secretary at the Ministry of Trade, Tourism, and Tel- guardian of the business community’s and Local Self-Government, now Prime Minister, Ana Brnabić, interests, while at the same time being a how to advance digitisation and maximise benefits in the tel- ecommunications, Tatjana Matić, discussed with FIC members reliable partner of the Government of Serbia ecommunications domain. The main topics debated were the regulatory framework and practical barriers to boosting digiti- and other relevant stakeholders sation and advancing the telecommunications sector. The FIC considers the First Dialogue for Change as being a suc- agement of FIC member companies. Several working sessions cess, given that an immediate positive reaction stemmed from held in parallel enable more detailed discussion of specific the event – in the form of the expansion of the Action Plan with business climate topics with competent representatives of the the aim of including the important segment of m-government. state administration. Due to elections, the Reality Check Con- The second FIC Dialogue for Change event, dedicated to tax ference hasn’t been organised during the past two years. regulations and their implementation, hosted Serbian Tax Ad- - NEW ACTIVITIES mission DG TAXUD Deputy Head of Unit Reinhard Biebel as This year has seen the FIC add two new activities. The first specialministration speakers. Director Discussion Dragana focused Marković on and specific European tax policyCom is the Task Force, a working group consisting of members of measures that can trigger economic growth and are funda- the Government and the FIC, established at the initiative of mentally linked to predictability, modernisation and the con- then prime minister and today President of Serbia, Aleksandar sistent application of tax regulations. - The event resulted in the joint conclusion that the FIC and troducing this new form of dialogue, the FIC aims to initiate the Government need to deepen cooperation through timely exchangesVučić; the secondof knowledge, is the FIC’sinspire “Dialogue change forand Change”.reach tangible By in expert dialogue in which the Government will convey its re- conclusions and results in joint actions taken by the Serbian form plans, while the private sector will state whether these Government and the FIC. solutions are feasible in the given timeframe and how they will The Task Force was established on 31st January this year and impact on the operations of businesses and, ultimately, the is tasked with defining concrete measures to implement White country's GDP. ■

76 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS THE SECOND FOREIGN INVESTORS COUNCIL "DIALOGUE FOR CHANGE", DEDICATED TO TAX REGULATIONS AND THEIR IMPLEMENTATION Belgrade, 27th June 2017 - The Foreign Investors Council held the second "Dialogue for Change" event, dedicated to tax regulations and their imple-

and the Representative of the European Commission, Reinhard Bibel, as spe- cialmentation, guest speakers. with the The Director discussion of the focused Tax Administration, on specific measures Dragana in Marković, taxation policy that can stimulate economic growth and are essentially related to pre- dictability, streamlining and consistent implementation of tax regulations.

th - The Foreign Investors Council and the Serbian Economy Ministry held a presentation of Negotiations on Chap- PRESENTATIONBelgrade, 25 April OF NEGOTIATIONS 2017 ON CHAPTER 6 - COMPANY LAW ter 6 – Company Law, in the Palace of Serbia. In addition to members of the Foreign Investors Council and the Economy Ministry, the presen- tation was also attended by the Head and members of the Serbian Negotiating Team for EU accession and representatives of several busi- ness associations - AmCham, NALED, SAM, CCIS and Privrednik – who learned more about the EU accession process and the foundations of the negotiating positions of the Republic of Serbia for Negotiations on Chapter 6 – Company Law and how it will impact on the environment in which companies operate. This occasion also saw the presenting of upcoming amendments to the Law on Companies.

THE FIRST FOREIGN INVESTORS COUNCIL "DIALOGUE FOR CHANGE", DEDICATED TO DIGITISATION & TELECOMMUNICATIONS Belgrade, 7th April 2017 - The Foreign Investors Council held the first "Dialogue for Change" event, dedicated to digitalisation and telecommunications issues, at Belgrade’s Hotel Metropol howPalace. to Togetherpromote withdigitisation Prime and Minister strengthen Ana Brnabić the area and of Statetele- Secretarycommunications. Tatjana Matić, the members of the Council discussed

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 77 th FICAn NETWORKINGFIC Networking COCKTAIL Cocktail Reception, FOR MEMBERS held on (FEBRUARY 26 February 2014) at Square Nine Hotel, attracted large numbers of representatives of member companies and potential members. The event brought together around 150 mostly top management representatives of FIC member com- panies and a selection of potential members who enjoyed a pleasant atmosphere that provided good networking opportunities.

RESPONSIBLY TOGETHER OUT OF THE CRISIS CONFERENCE: SERBIA TURNS TO ECONOMY – Belgrade, 8th July, 2013 – At the “Serbia Turns to Economy – Responsibly Together Out of the Cri- sis” conference, organised jointly by the EU Dele- gation to Serbia, the “Privrednik” Serbian Busine- ss Club, the Foreign Investors Council (FIC) and the American Chamber of Commerce in Serbia (AmCham), representatives of the Government of the Republic of Serbia, conference organisers and staff of the IMF and World Bank Offices in Serbia discussed specific steps necessary to overcome the economic crisis and improve the business cli- mate in the country.

FOREIGN INVESTORS COUNCIL MARKS 10TH ANNIVERSARY AND PRESENTS 2012 WHITE BOOK Belgrade, 16th October, 2012 – The Foreign Investors Council presented - tatives of the Government of Serbia. This year’s edition of the White Book, thepublished 2012 FIC in theWhite year Book in which to Prime the CouncilMinister marks Ivica Dačićits tenth and anniversary, top represen is the basis for the continuation of the dialogue between the representatives of foreign investors and the Government of Serbia on ways to improve the business climate in Serbia.

78 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS The Foreign Investors Council organised its "Reality Check Conference", FIC REALITY CHECK CONFERENCE (JULY 2012) - tatives Belgrade’s Hyatt Regency Hotel on 9th July 2012. The conference was hostingorganised Serbian with the Prime aim ofMinister contributing Mirko toCvetković raising Serbia’s and other competitiveness state represen as an investment location, through an open dialogue on key issues that hinder business conditions in Serbia

The FIC organised its Roundtable on Company Law on 18th April 2012 at Belgrade’s Sava Centre, with the intention of openly discussing issues FIC ROUNDTABLE ON COMPANY LAW (APRIL 2012) pertaining to the application of this law. Representatives of all relevant institutions involved in its implementation accepted the FIC’s invita- tion to participate, and the attendance of member companies was also high, with around 80 participants from 40 member companies. The intention of the FIC was to engage in an open discussion and to receive clarification on the most important issues implied by the new law itself.

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 79 CORPORATE: INTERVIEW We‘re Growing Together With The Economy

DEJAN VUKOTIĆ CEO of the Serbian Export Credit and Insurance Agency - AOFI

AOFI is growing and developing year on year, and export turnover in 2016 was 10 per cent higher than in the previous year

increasing number of “domestic” companies continuous support to entrepreneurs and are recognising the importance of insuring SMEs, with the aim of enabling them to exploit export claims and deferred payment terms as their full potential for economic development. one way of gaining a competitive edge. Among For export-orientated companies from this he Serbian Export Credit and Insur- other things, through its activities within the segment, the AOFI allocated support of 4.12 ance Agency (AOFI) is the only export framework of the ‘Year’ and now the “Decade billion dinars for 2017, in the form of loans, credit agency in the region that did of Entrepreneurship”, the AOFI is doing eve- guarantees and factoring for export opera- not experience a drop in insured traf- rything it can to bring its services – including tions. This project influenced a change in the Tfic with the entry of competition, but rather, on the insurance of export receivables – closer to structure of the portfolio of users of our ser- the contrary, actually grew. Here we discuss the Serbian economy, and particularly to small vices, because in 2016 the number of entre- and medium-sized enterprises, which can face preneurs and SMEs that used the Agency’s financing services increased by over 15 this agency‘s plans with its CEO, Dejan Vukotić. ► Serbia achieved a record in the per cent, and we plan to continue this placement of goods abroad in 2016 – Thanks to the government's “Decade trend in the future. up 11 per cent on the previous year. of Entrepreneurship” project, there How much does the insurance of ex- are ever more users of the AOFI’s ► Apart for export insurance and port keep pace with its growth? crediting services, how much do do- – The activities, and thus the results, services from the SME sector mestic companies take advantage of of the AOFI in 2016 followed the men- the AOFI’s other services, primarily the tioned export growth. The Agency, like the “serious” liquidity problems due to the failure purchase of receivables, which is a relative- Serbian economy in 2016, achieved a record of their foreign customers to pay. ly new innovation on the Serbian market? result, which is largely as a consequence of an – Although this financial instrument rep- increase in the activity of the insurance sector. ► The government declared both last year resents a relative novelty on the financial The AOFI is growing and developing year on and this as years of entrepreneurship. In market of the Republic of Serbia, there are year, and export turnover in 2016 was 10 per this context, how much have the AOFI’s ac- increasing numbers of financial institutions, cent higher than in the previous year. tivities increased and has the structure of be they banks or factoring companies, which the companies interested in the Agency's provide this service to their clients. Due to ► Are local business leaders aware that services changed and, if so, to what extent? its mission that is reflected in the support of it pays off much more for them to insure – The “Year of Entrepreneurship” project has exports, the AOFI has directed its business their export claims than to be paid in ad- grown into the “Decade of Entrepreneurship” towards international factoring, and in 2016, vance for goods and services abroad? And project in 2017, because the Government of despite increasing competition, it was Ser- how much is being done to familiarise the Republic of Serbia has recognised the im- bia’s leading financial institution in terms of them with this possibility? portance of this segment of the economy as international factoring. The share of SMEs in – The largest users of export insurance contin- an engine of growth and development and, our portfolio grew by more than 25 per cent ue to be multinationals, but it is evident that an as such, intends to use this project to provide year-on-year in 2016. ■

80 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS COMMENT We‘re Growing Together Education Is Key To An Attractive Workforce With The Economy DEJAN JEČMENICA president of the FIC Human Resources Committee (Wiener Städtische osiguranje (Insurance) a.d. Belgrade)

Employers in Serbia face a lack of skilled labour at the level of secondary education, which has a negative influence on the attracting of foreign investment. In our opinion, a special systemic law or other general act is required to regulate all aspects of the system of dual secondary vocational education

which expert people leave the country, we must It is necessary for higher education institu- say that wars, international isolation, economic tions to have the main role in the development crises and social tremors in Serbia over previ- of knowledge. Young people need to be trained upils in Serbia usually complete sec- ous years caused a great wave of outward mi- in order to be ready to enter the labour mar- ondary (vocational) schools with- gration among people with high qualifications ket, but also to create opportunities for them to out any kind of practical experience, and exceptional abilities. There is still a sig- educate themselves throughout their lifetime which leads to problems in their em- nificant percentage of highly skilled workers in and working life. It is only through personal Pployment. Regardless of the Serbian Govern- the total number of migrants, right at this time development that they can adapt to changing ment’s initiative to implement the dual educa- when those people with specific knowhow and professional circumstances and respond to all tion system in Serbia, numerous issues related skills are most needed by a society that’s going of their challenges. It is necessary to work on to the realisation of this education model still through a difficult period of transition. improving the quality of education in order to exist. The first Draft Law came up against sig- The arrival of foreign investors enabled ensure that young people acquire the appro- nificant criticism during the public debate in people with high qualifications and potential priate skills that will enable them to become June 2017, in particular regarding the large to recognise their place to work in Serbia. In well-informed, active and responsible citizens, number of pupils’ working hours dur- and to ensure their social inclusion and ing the day and week, the level of com- The arrival of foreign investors readiness for professional life. pensation paid to pupils for productive The quality of higher education insti- work, the lack of regulations that more enabled people with high tutions should satisfy the generally ac- precisely define the rights of pupils and qualifications and potential to cepted standards regulated by the Law similar. It only represents the first step in recognise their place to work in Serbia on Higher Education. One of the most the process of legally regulating the dual important issues relates to the available education system in Serbia, and in our potential of higher education institutions opinion a special systemic law or other general this way they are able to develop profession- for the development of competencies that are act is required to regulate all aspects of the sys- ally in our country. relevant to the needs of the labour market and tem of dual secondary vocational education. When it comes to the remaining issues to the inclusion of the workforce in work pro- The availability and quality of our workforce be addressed with regard to regulating the cesses. Bearing this in mind, higher education is extremely important for attracting foreign labour market, we emphasise the importance institutions should be aware of what is needed investment. Ensuring a high quality and ade- of education for acquiring knowledge that in terms of knowhow and skills for success- quate workforce is one of the major challenges would contribute to the development of the ful entry into the labour market and better today. Our market possesses a good quality workforce’s ability to participate actively in the employment of their graduates. In order to workforce and investors recognise that. When creation of social well-being. In that way, every have high quality personnel, this implies pay- we talk about the brain drain and the role young person gains the opportunity to utilise ing special attention to all levels of education foreign investors play in reducing the pace at their potential. - from primary school to university. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 81 CORPORATE: INTERVIEW Better Applying Of Law Required VLATKO SEKULOVIĆ Sekulović Law Office

A better credit rating of the surrounding countries and the delay in joining the World Trade Organisation represent obstacles to a more dynamic inflow of foreign investment in Serbia. The applying of laws and bylaws should be improved

Organisation. Our country’s inclusion in this – In terms of good legislative practice in the organisation would further enhance its legal economic domain, it is certainly worth high- credibility and security, and would also provide lighting the 2014 Law on Planning and Con- additional mechanisms to settle trade disputes. struction, as well as the Ordinance on the Alongside these general comments, it is es- implementation of unified procedures elec- aboute spoke changes with in Vlatko the legal Sekulović, frame- sential to do more to remove and harmonise tronically. The particular significance to the workfrom theand Sekulovićpractices Lawthat would Office, certain provisions of the Companies Act, such progress achieved with these acts is the fact contributeW to a better organising of the busi- as, for example, regulations relating to the re- that there is no common legal framework at ness environment in Serbia. duction of the capital of companies, extending the EU level that regulates this area, rather it the freedom to make contractual agreements is left entirely, with the exception of the part ► Which issues do foreign investors con- between parties in cases of special duties be- related to standards, down to the will of in- sider as particularly troublesome when dividual members. In this sense, the estab- they consider Serbia as an investment The 2014 Law on Planning and lished legal mechanism represents the best destination? practice of the Serbian legislature without – I believe that the main obstacle to higher Construction, as well as the the mechanistic applying of good, tried and foreign investment inflows is primarily the Ordinance on the implementation of tested, solutions in the EU, which is the country’s credit rating, i.e. the assessment unified procedures electronically, case in the greatest number of acts that are of risk related to investment in Serbia. We adopted, and thus represents a kind of “do- have witnessed the credit rating improving represent examples of the best mestic common sense” in the field of rights. year-on-year, and at the beginning of this practice of the Serbian legislature year Serbia moved from category 6 to cat- ► Today, when domestic legislation egory 5 according to OECD classification. How- tween company members or shareholders, or is largely formally harmonised with EU ever, as an investment destination, Serbia is in the introduction of new forms of organisation, standards, what are the key challenges in competition with countries like Bulgaria and such as economic interest groups. A special the functioning of the legal framework? Romania, which are in category 3 in terms of problem is represented by bylaws, many of – It is primarily necessary to point out that risk assessment, which handicaps Serbia in ad- which have not changed for decades, thus it is Serbia’s legal system is not yet fully harmo- vance as a destination compared with its main necessary to harmonise these documents with nised with the norms that apply within the competitors, without even mentioning Slovakia real life, and not just EU rules. framework of the European Union and that it or Hungary, which are beyond these categories. is essential to further harmonise in the process It is also essential to continue integrating ► Which moves of the legislature would of joining this community. However, the main into the international legal framework that reg- you single out as good examples and what problem is still the application of laws and by- ulates foreign trade, and the main goal of this, do they say about the ability of the domes- laws on the part of state bodies, both executive which has remained unrealised for more than tic legislative system to adapt to modern and judicial, along with bureaucracy that bur- 10 years already, is joining the World Trade working standards? dens companies’ operations. ■

82 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS COMMENT Ambitious Goals Of New Committee

ĐORĐE POPOVIĆ President of the FIC Infrastructure and Industrialisation Committee (Petrikić and Partneri a.o.d., in cooperation with CMS Reich-Rohrwig Hainz)

The committee will be focused on improving the legislative framework and practise in the field of cooperation between the public and private sectors, in construction, energy and transport, and enabling start-up entrepreneurship’s further development

sector, the energy sector (including, in par- issues (such as factual indexing of incentive t is exceptionally satisfying to me that the ticular, the area of renewable energy and en- prices and efforts to make the opinions of the need has been recognised, in the work of ergy efficiency, but also monitoring progress relevant ministry legally binding), and so on. the Foreign Investors Council, to establish in the area of conventional energy sources), The specific expertise and enormous ex- a new Committee for Infrastructure and the transport sector, and enabling the further perience of the Committee members them- Industrialisation.I This youngest committee development of start-up entrepreneurship, selves in these areas will be crucial for the started working in March 2017 and its mem- new business models, and their financing. success of achieving the adopted goals. In bers come from very different sectors of the In accordance with that, the Committee this regard, it is an encouraging fact that the economy, from companies whose primary identified specific priorities and an appro- members of the Committee come from very activity is producing the infrastructure and priate timeframe. For example, recognised different areas of the economy, and as such energy resources that are of great impor- as one of the most immediate goals in the I am sure that the defined issues will be ad- tance for the economy of Serbia, through equately analysed and solutions will be banks and international organisations, formulated in an equally comprehen- to a wide range of consulting companies The diversity of the members of sive and efficient way. The idea is cer- with the highest profile on the market. the Committee will contribute to tainly to divide specific tasks among Considering the importance of de- achieving its basic goal – and that the members themselves, according to veloping infrastructure and industri- the sectors they hail from, with the co- alisation for Serbia’s overall further is to give a tangible and measurable ordination of the Committee president development and, in particular, its contribution to further improving and vice president and the Foreign economy, the basic primary goals of Serbia’s infrastructure and Investors Council itself. Moreover, it is the Committee are certainly first to de- of great importance for the Committee termine the basic directions and areas industrialisation sector to cooperate with other committees of the work of the Committee and its within the FIC, which have related areas members, in order to ensure consistency and construction field is the need to further relax of work – for example, with the Tax Commit- the sufficiently comprehensive and concrete statutory requirements for acquiring con- tee and the Real-Estate Committee. direction of action. The basic goals and work- struction licenses and effective recognition I am confident that the Infrastructure and ing directions of the Committee recognise of foreign engineering licenses; in the field of Industrialisation Committee will soon achieve the need to further improve the legislative transport, the need for a more efficient reg- measurable results in these important areas. framework and the actual practise of ap- istration system for electric vehicles; in the Until then, we will be pleased for new mem- plying regulations in the field of public and field of renewable energy sources, the need bers to join our Committee and work together private sector cooperation, the construction to improve practises in relation to specific to achieve these important goals. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 83 CORPORATE: INTERVIEW How To Achieve A Clean, Safe And Healthy Environment In Serbia

IVAN LAZAREVIĆ Company Manager at Ecolab, District Manager Food and Beverage Industry at Ecolab

As a global company, Ecolab cooperates with most corporate names globally and in the region. But from the very beginning, Ecolab in Serbia has established and nurtured cooperation with domestic companies

COLAB emerged from a company development of the company and the introdu- office of the United Nations Industrial Deve- that was called “Economics Labora- ction of advanced concepts on the domestic lopment Organisation (UNIDO) and company tory”, which was established 123 ye- and regional markets. That’s why I honestly Knjaz Miloš, participated in two competitions ars ago in the United States, while it believe that the act of establishment was more with the global participation of very important Ehas been present in Europe for the last 60 ye- “an act of faith” in the Ecolab team that would names from modern industry, under the auspi- ars with its business philosophy. At its basis is work in Serbia and in the relationship that it ces of UNIDO. In both cases we received a prize the term “economical”, through helping par- would build with partners. (first and second respectively). We presented tners to reduce the time required, work levels Today we have a domestic company with projects that we implemented in Knjaz Miloš, and reducing production costs by applying its over 30 employees, which provide support and that are today carried out successfully in advanced concepts. and comprehensive expertise, not only for lo- the field of water management and the con- The volume of operations in Europe has cal and regional clients, but also for Ecolab’s cept of chemical leasing. expanded drastically, such that today producti- global operations. I’m sure no one expected us on takes place in 23 factories that produce over to achieve this level of success. ► How would you assess conditions for 6,000 products. ECOLAB today employs doing business in Serbia and do you around 10,000 associates in Europe As we see it – Ecolab is everywhere that see room for further institutional across 35 countries that relay Ecolab’s advancement? mission to make the world a cleaner, it matters; because what we do and the – The Serbian market has evolved safer and healthier place to live, prote- way we do it is important everywhere! considerably. Global trends are pre- cting people and vital resources. sent in the everyday business envi- Our products help partners in Europe – to I firmly believe that my colleagues, along ronment and in life, and the biggest challen- mention just a few: Heineken, Carlsberg and Ar- with our partners in the fields of food and be- ges are adopting them in a meaningful and celorMittal – to achieve very challenging sustai- verages, mining and energy, hotel and catering, beneficial way. On the other hand, we are nable goals and to fulfil the demands of Europe- the textiles industry, the healthcare and phar- witnessing the process of legal harmonisa- an consumers for products made in a safe way. maceutical industries, and water treatment, tion between Serbia and the EU, and we are will continue to promote concepts of “safe” pleased that we participated in this through ► How did Ecolab, which is a global leader food, ensuring a clean living environment, re- FIC activities (we have written chapters for in water treatment and professional hygie- ducing consumption of water and energy, and the “White Book” several times) and throu- ne, recognise the benefits of working on thus achieving the desired business results gh the KOZMODET Association. What we see this market? and a safe living environment for all of us. as a necessity for Serbia is to develop an ef- – When the Ecolab office was established in ficient way of storing and managing waste, Serbia as a full member of the Ecolab family 15 ► Who are your most important clients? for example, the construction of wastewater years ago, the legal and business environment – If you allow me two examples – the Ecolab plants in each town, for the benefit of envi- did not provide the opportunity for the rapid team from Serbia, along with the Belgrade ronment and nature. ■

84 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 85 COMMENT New Legal Solutions To Better Regulating Of The Market

DUŠAN LALIĆ president of the FIC Leasing and Insurance Committee (Generali Osiguranje Srbija a.d.o.)

We propose that the new Law on Leasing regulate operating leasing and that the matter of insurance contracts be separated from the regulations of the Civil Code and separately and comprehensively regulated by a special Law on Insurance Contracts, as has been done in many EU countries

n last year and the first half of this year we bylaws that regulate that matter for it to be the last 40 years and led to changes in regu- have noted a trend of growth in the value confirmed that incentives can be implement- lations around the world. of leasing contracts, which is a conse- ed with support via financing, which implies, With this in mind, many European countries quence of the growth of business activity apart from bank loans, other forms of financ- have adopted a special law on insurance con- inI Serbia and the fact that small and medium- ing such as financial leasing. tracts (such a law exists in Germany, France, sized enterprises have recognised leasing as Finally, we propose that the procedure for the UK, Spain, Portugal, Luxembourg, Swe- an adequate financing method for establish- registering a lease contract be promoted by den, Belgium and numerous other developed ing or developing operations. the Agency for Economic Registers, i.e. for the countries), and Serbia should follow these In the area of financial leasing, we consider whole process to be digitised. positive experiences and adhere to European it most important to adopt a new law on leas- When it comes to the main regulatory standards. In that way we would be the first ing that would regulate operating leasing, or challenges facing the insurance domain, we country in the region to follow the example of enable financial leasing providers to also offer are primarily referring to the issue of adopt- developed European countries in this area. operating leasing services. The expansion of ing a special law on insurance contracts. It is There is also room to improve market the jurisdiction of the National Bank of Serbia recommended that the matter of the insur- conditions in this sector. The new Law on to this type of lease would lead to the Insurance enabled investments in the inclusion of another part of financial investment units of investment funds, flows in the supervision and control We propose the digitising of the but the Decision on investing funds in of the NBS, which would lead to even entire process to improve the insurance stipulates that up to 25% greater security of the financial sys- procedure for registering leasing of technical reserves arising from this tem. The NBS has long considered the type of product may be invested in an emergence of operating lease as being contracts with the Agency for investment unit of a single fund. There a consequence of strict restrictions on Economic Registers are only a few investment funds on the financial leasing (primarily for private Serbian market, which further discour- individuals). Operating leasing should be de- ance contract be set apart from regulations ages this kind of investment. Furthermore, fined as leasing in which all risks and benefits of the Civil Code and be separately and com- the same Law stipulates that insurance funds are not transferred to the client. The new law prehensively regulated by a special law on invested abroad cannot exceed 25% of the would also regulate other legal uncertainties insurance contracts. We cite the following basic capital, which also limits investment and shortcomings that have arisen in practise. reasons for this: it is essential for the current opportunities on the basis of this potential Likewise, there is a need when forming regulation to be harmonised with altered development of new products. Improvement economic incentive programmes (for indus- living conditions and international practise. would come if the NBS considered the pos- try, agriculture etc.) and drafting a law and The insurance market has changed a lot in sibility of liberalising investments abroad. ■

86 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS COMMENT We Fight For Our Views With The Power Of Argument

MIHAJLO ŽIVKOVIĆ president of the FIC Legal Committee (Societe Generale Banka Srbija)

Pokrenuli smo niz inicijativa, a najveća očekivanja imamo kada su u pitanju propisi koji regulišu devizno poslovanje i stečaj. Nastojimo da snagom argumenata utičemo da predlozi SSI budu razmatrani i prihvaćeni

these laws. At the moment of writing this article, The key priorities of the Legal Committee the Government has adopted the Draft amend- in the coming period will be amendments to ments to the Bankruptcy Act and their adoption the Civil Procedure Act, the Law on Foreign in the National Assembly is expected. Exchange Operations, the Law on Investment he Legal Committee of the Foreign In- When it comes to strengthening the rule of Funds, the Law on Business Companies, the vestors Council has been active since law, a positive shift has certainly come in re- adoption of the Act on Alternative Invest- the FIC’s establishment in 2002 and cent years regarding the way laws are adopted. ment Funds and the adoption of the new Law brings together more than 50 per cent What used to be the rule of adopting laws with- on Personal Data Protection. Working groups ofT FIC members. It has great significance pre- out public debate, sometimes even without se- have been formed for many of these legisla- cisely because of the scope of topics it deals rious expert discussion, is now a rarity and an tive changes or novelties, and representatives with. First of all, it addresses virtually all impor- exception. All changes to more important laws of the Legal Committee have already had the tant issues that comrpise the legal framework are as a rule preceded by a broad public debate opportunity, or will have the opportunity, to for doing business in the Republic of Serbia. On in which the views of the business community, present and represent the FIC’s stances, at- the other hand, frequent changes to laws, and and in particular the Foreign Investors Council, tempting, as it is understood, to use the power in particular laws that many companies of arguments to impact on the Council’s consider as being systemic laws for their Organising broad public debates proposals finally being included in the operations, give the Legal Committee – law. Likewise, the Legal Committee initi- which is in charge of monitoring such prior to adopting or amending ated a proposal that the Council sent to changes and proposing amendments to regulations and consulting the the Serbian Ministry of Justice request- regulations in the interests of members business community represents the ing an authentic interpretation of Arti- – a specific character of being constantly cle 48 of the Law on Execution and En- current. Considering the wide range of greatest progress in the process of forcement, the interpretation of which legal issues that the Legal Committee strengthening legal security by courts causes significant problems deals with, the largest number of topics in for member companies in practise.At the the creation of the White Book actually come have a certain weight and significance, which moment of writing this article, the Ministry of under the jurisdiction of the Legal Committee. makes the process of adopting or amending Justice has submitted a request to the National The Legal Committee is involved in the work regulations more transparent, and the regula- Assembly that is in accordance with our pro- of subgroup 6 of the Working Group of the Gov- tion itself is a product of dialogue between the posals and we have high expectations regard- ernment and the Council, which relate to the legislator and the business community. It seems ing the positive outcome of this initiative. The area of bankruptcy and foreign exchange opera- that this the greatest progress in terms of the Legal Committee also initiated the adoption tions. To this end, the Law on Foreign Exchange process of strengthening legal security, and it is of the Position Paper of the Council regarding Operations and the Bankruptcy Act are topics subsequently also transposed onto the amend- loans indexed in Swiss francs, held a meeting that the Legal Committee has dealt with constant ment or adoption of specific regulations that with the Serbian Minister of Justice and ex- in previous years, providing proposals to amend regulate the operations of foreign investors. pects a positive resolving of this problem.■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 87 COMMENT Improvement Of Laws And Practises Required

IVAN GAZDIĆ president of the FIC Real-Estate Committee (Bojović & Partners a.o.d. Beograd)

The Real-Estate Committee will continue to deal with the reform of the cadastre and its digitisation, because in the application of the law there are still many open issues and uneven practises. A shift is also required in the area of conversions

which is still the disputed provisions of the The Draft law on cadastre registration, law regulating conversion for a fee, which which is being developed by the Ministry ccording to the statistics of the envisage that the conversion process must of Construction, Transportation and Infra- World Bank, Serbia has advanced be halted until the restitution procedure structure, was recently presented to the markedly on the ranking list for is- is completed with regard to the property expert public, and we also had the oppor- suing construction permits, such in question, even in cases where returning tunity to participate in the public debate thatA it has advanced from 152nd place to the property to its natural form is not le- and communicate directly with the minis- 36th, according to the report for 2017. gally possible. try. This law should introduce significant We are all very familiar with the fact that One of the most relevant topics in the novelties, primarily in the method of filing progress on this list is certainly down to sphere of interest of the Real-Estate Com- requests and submitting records to the the so-called unified procedure for obtain- mittee is the reform of the cadastre and its cadastre, the relationship between the ca- ing construction and usage permits, which digitisation. dastre and other state bodies and holders was introduced with the amendments of public authority, as well as in the to the Law on Planning and Construc- deadlines for treatment. The ideas tion, while last year also saw the start Between the Committee and of those tasked with drafting the law of the issuing of electronic building representatives of relevant state include the additional speeding up of permits via the introduction of a func- bodies, primarily the relevant ministry procedures before the cadastre, the tional system for issuing E-permits. introduction of obligatory notaries, Judging by official statistical data, and the Republic Geodetic Institute, courts, public enforcement officers an undisputed increase has been no- significant progress has been achieved and other state bodies to have the ticed in the number of issued build- in dialogue that should continue and official duty to electronically submit ing permits since the introduction their decisions to the cadastre within of the unified procedure. However, strengthen in the period ahead short deadlines, the gradual transi- investors still evaluate that communi- tion from written cadastre operations cation with the bodies responsible for is- Even after the most recent amendments to electronic (which is a very revolution- suing acts in the unified procedure should to the Law on State Survey and Cadastre, ary undertaking), as well as more detailed be improved. which came into force just over a year ago ordering of actual procedures before the When it comes to construction land, and which aimed at speeding up the pro- cadastre. problems related to the conversion of us- cess of registering property in the cadas- The Real-Estate Committee will contin- age rights to ownership rights have unfor- tre, there are unfortunately still many open ue to monitor the regulatory activities of tunately remained the same as last year. issues in the application of the Law and un- state bodies and provide proposals to im- A large number of conversion processes even practises in dealing with various real prove regulations in the fields of construc- have been halted, the main reason for estate cadastre services. tion and real estate. ■

88 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS COMMENT Through Dialogue To Better Tax Policies

DRAGAN DRAČA president of the FIC Taxation Committee (PricewaterhouseCoopers d.o.o)

The lack of transparency and public debate in the domain of changes to tax regulations marked both the current year and previous ones. More transparency and dialogue are needed in order to reach good solutions

n the area of tax, relatively modest progress nies due to the obligation to submit individual ingly represented in modern companies are was achieved in the previous period. The tax returns for each transaction. These kinds placed in, and the dynamics of the deprecia- two most significant positive changes are of situations and problems could be avoided tion of assets are often in contradiction of their the relocating of second instance procedures through timely and constructive dialogue be- economic longevity and usefulness (e.g. wind onI appeals to tax decisions in the Ministry of Fi- tween the Ministry of Finance and the busi- turbine pylons and equipment installed on nance and harmonisation of the Law on Value ness community. them - generators, rotors; oil wells, hotels) or Added Tax with EU regulations in the domain The business community still faces the the nature of business activities (concessions of rules on the place of service exchanges with problem of the uneven interpretation and ap- and public-private partnerships). the EU model and the registration of foreigners plication of regulations between the branches The large number of parafiscal charges in- for VAT. However, the majority of difficulties and of the Tax Administration, despite the intro- crease the effective burden on the economy problems that the business community under conditions that are often non- faces and which have been highlighted transparent and unjustified. An addition- for years in the White Book of the Foreign Taxes are among the most important al problem is also presented by the fact Investors Council remain unresolved. topics that will be addressed in the that this area is not regulated in a unified Tax regulations are usually changed period ahead by the newly formed way, but rather provisions are dispersed without the business community and through a large number of regulations the general public being able to have Working Group of the Government that regulate different legal areas. timely insight into the planned changes of the Republic of Serbia and the We believe that strengthening the and the opportunity to point out po- Foreign Investors Council Tax Administration and the Ministry of tential problems and provide construc- Finance in terms of numbers, the quali- tive suggestions. The application of the fication structure, professional training Guidelines on obligatory VAT records, pub- duction of obligations towards acts and the and the capabilities of employees, information lished in the second half of 2016 with the in- opinion of the Ministry of Finance regarding systems and other resources is of great im- tention of being applied as of 1st January 2017, the approach of the Tax Administration. portance to solving existing problems and im- was soon postponed for a year due to the fact Ever increasing importance is also given to proving the tax system and practises. It is also that it turned that it imposed significant de- the issue of reforming existing rules on the necessary to unburden the Tax Administration mands on the economy in terms of adapting calculation of tax depreciations that have not of other jurisdictions (exchange transactions, the information systems and the resources changed substantially since their introduction foreign exchange operations etc.), which do not needed for maintaining such records. Also, in 2004. Their application in contemporary fall under the category of its core activity. In this the tax on deductions on services, which has business conditions results in many difficul- sense, it is important to successfully realise the been applied since March 2016, has led to ad- ties and ambiguities. It is unclear which tax plan and complete the process of transforming ditional administrative costs for many compa- groups certain specific assets that are increas- the Tax Administration, which is underway. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 89 COMMENT Potential Of Industry Yet To Be Exploited MARKO JOVIĆ president of the FIC Telecommunications and IT Committee (Vip Mobile d.o.o.) Operators have invested significant resources to buy frequencies and further develop networks. In order to feel the full significance of these investments, it is also necessary for them to be followed by a regulatory framework

The Law on Electronic Operations is also an the 4G signal and has smart phones. They are essential step for the further development of a great platform on which a wide range of ac- he Law on Electronic Communica- digital services. At the moment of writing this tions and communication between citizens and tions (LEC) is the basic act upon article the Government has adopted the Draft administrations can be carried out. This is cer- which the sector’s work is based, Law and we welcome the earliest possible tainly a faster, more efficient and more conveni- but also the document that should adoption of this law and faster work on bylaws, ent way. Why wait in line when you can order Tenable the improvement of services and the and invite the Ministry to include us in the and pay for everything via a mobile phone? It is development of new ones. We have seen how work of compiling the necessary guidelines, essential for the country to invest further in the regulation can have a positive impact with the in order to gain functional and implementable development of portals and software, but also example of the digitisation of the TV spectrum regulations!As I highlighted, the current regu- in the education of the population. This is an im- and the allocation of digital dividends for the lation does not fully support the application of portant segment. We need to simplify the issue needs of mobile telephony. Operators have new services and does not support the general of user authentication and the payment of ser- invested significant resources to purchase fre- trend of digitisation. Many innovative services vices via mobile platforms. If the user submits quencies and further develop networks. a request electronically and then has to go In order to feel the full significance of Serbia has a great opportunity to skip to the bank, pay the bill, scan the payment these investments, it is also necessary receipt and send it, then we are still only for them to be followed by a regulatory a few steps and immediately stand halfway there and a long way from the ac- framework. That should be done by the shoulder-to-shoulder with the most tual goal – a digital society. LEC, ensuring the further advancement developed EU countries in the domain In order to be closer to EU standards, of the sector and the development of we still have a lot of work to do both on new services. The envisaged Draft LEC of e-government and m-government regulations and the application of regu- has positive tendencies, primarily in lations. Here the market economy still the fact that it recognises “cloud computing” are located on “the cloud” and their servers doesn’t rule in the field of electronic communi- and envisages the possibility of cross-border are located beyond the territory of Serbia. It is cations and the telecommunications sector. It is transfers of data that are treated as personal essential to clearly envisage the possibility of essential to work on strengthening competition data. However, there are solutions that we offering these services, which are enabled by and regulating this area, as well as strengthen- are not satisfied with. The LEC envisages the partners. It is not realistic to expect every ser- ing the capacity of the state administration that obligatory registration of a pre-paid user, but vice to be provided locally. should regulate the market. We need the further does not envisage acceptable and viable com- When it comes to e-government and m-gov- development of infrastructure and access to this prehensive solutions that will not jeopard- ernment, Serbia has a great opportunity to skip infrastructure, full implementation of electronic ise the operations of the operator. The Draft a few steps and immediately stand shoulder-to- operations, the digital signature, establishing a Law also envisages modified funding for the shoulder with the most developed EU countries. complete digital environment in practice too. I agency, which will further overburden opera- We already possess the most important infra- hope we will not miss this opportunity for Ser- tors, as the agency will not have resources for structure, primarily for m-government. A large bia to become the leader in the region and one financing projects or unforeseen costs. percentage of Serbia's population is covered by of Europe’s leading digital states. ■

90 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS VISITING THE EXECUTIVE OFFICE OF THE FOREIGN INVESTORS COUNCIL Office With Doors Always Open In the Executive Office of the Foreign Investors Council just six employees work vigilantly to ensure that the views of more than 130 companies are always harmonised and in the service of the association’s key mission – to advance the business climate in Serbia

Ana Firtel

hat is your first association with theMilica Foreign Đorđević In- care to ensure thatJelena the decision-makingLazarević process of business vestors Council? Perhaps, the White Book, whi- giants, who don’t always have easily reconcilable interests, is ch has been eagerly awaited once a year by go- transparent and efficient; they strive to ensure the work of vernments, institutions and the media for over the Council’s ten committees is well-organised and techni- aW decade. Perhaps membership that includes more than 130 cally supported; they coordinate work on the writing of the companies, employing almost 100,000 workers in Serbia? White Book; they are responsible for organising conferences, Managing conflicting stances of various industries and cocktail receptions and meetings, as well as many other thin- market competitors in a democratic and transparent atmosp- gs that give this organisation vitality and the capability to be here, writing the White Book and handling the public appe- relevant to both members and the wider community. arances of representatives of this large business association In a space filled with natural light and nurtured dracaena are the concerns of the Executive Office of the Foreign Inve- stors Council. Responsible for all of them is Ana Firtel, executive director. Located in Gospodar Jevremova Street, on the stretch houseThe firstplants, “sign” Milica, of the Jelena, team Srđan,spirit here Duška is theand doors Bogdan of all work. offi- between Francuska and Kapetan Mišina streets, in the very ces being wide open, such that the clatter and patter of fingers centre of Belgrade, six people represent the support team for on keyboards can be heard in every corner of the space. all activities of the Foreign Investors Council (FIC). They take The main task of the Executive Office of the Foreign Inve-

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 91 stors Council is to respond to member’s inquiries and orga- FIC on various issues,” says Firtel, who relies on all of her team nise a dialogue between members on a daily basis, which members in her work. implies scheduling meetings, working committees, compiling the minutes of meetings and forwarding them, preparing years. As a graduate of psychology at the Faculty of Philosop- the White Book, but also some other projects and initiatives, hy,Milica it is not Đorđević unusual has that been she communications is particularly proud officer of forthe nine fact explains Executive Director Firtel, who has been running the that the Council and its support Office “easily adapt to change, Executive Office for ten years. do so on the move and through constant analysis and decisi- The executive office is simultaneously the hub for the Fore- on-making on current topics, but also by improving the actual ign Investors Council to lead communications with external organisational structure.” actors, i.e. with the government, various public policy holders Milica also takes care of both external and internal commu- and other stakeholders with which the FIC exchanges stan- nication. It’s not easy to define what is more challenging, con- ces and cooperates. Moreover, the Office is also tasked with sidering, as she says, that the public in Serbia monitors with relaying to external stakeholders how FIC members see the undiminished attention what this business association, which local business climate, what they consider the greatest advan- has grown ever larger and more credible year on year, has to tages and challenges to doing business in Serbia, and how the say on some issues. Even “internally” it is no less simple, with Council thinks these challenges can be overcome. “Those are the base of members numbering more than 1,500 people. the two sides of our business,” says Firtel. “Our communication with the public is based on three Asked about the executive director’s role in relaying FIC principles: equity, transparency and predictability,” Milica policies to other actors in society, Firtel says that her role is explains. She particularly emphasises transparency in the primarily to relay what has been agreed upon by the Foreign office’s work. “It is very important for us to be open to both Investors Council through a clearly members and the public, especially elaborated and transparent deci- on occasions when we are commu- sion-making structure. “Decisions The task of the Office is to enable nicating stances, which are previo- are made by members at the level constant effective communication usly considered and analysed, on of working committees, and adop- between the members and the work topics that are of interest to both ted by the Board of Directors, so the Council and the public in Ser- with us the director really has the of the committees, and to relay to the bia, such as some legal solutions or role of executing decisions made public the FIC’s stances on the business decisions in the context of the busi- by the members. This is something climate, the advantages and challenges ness climate.” we are proud of, because we are an “We live in the digital age, and organisation in which decisions and of doing business in Serbia, and the the speed of communication can no appropriate attitudes really come Council's proposals for its improvement longer be measured by conventio- from the bottom up,” says Firtel. nal methods. That’s why within the The Executive Director and the Executive Office are respon- Council, and bear in mind that this is about people who take sible for organising dialogue with stakeholders, whether they care of tens of thousands of employees, for whom 24 hours are government representatives or other important decisi- in a day is not enough, we communicate very efficiently. Cle- on-makers. “In those meetings there is always someone from ar and transparent procedures and communication with so the executive office present. The reason for this is that no called pelcer mails, which is unique in both form and content member of the Foreign Investors Council talks with the state and makes us fast,” explains Milica. in order to present their own opinions,” says Firtel. “What is The Foreign Investors Council, among other things, analy- discussed is important for all members and should be relayed ses, harmonises stances and decides on the most varied topi- to other members. That’s why the executive office is always cs, through ten working committees. Their immediate work engaged, to ensure that this information is always transmi- - tted to all FIC members in a timely manner, and to ensure that whenever talks are held with someone, the same is always ofis thelegal concern affairs. of Their lawyers specific Jelena responsibilities, Lazarević and Srđanhowever, Popo go said, which we, as the FIC, guarantee.” farvić. beyond They are, the translated classical interpretation into everyday oflanguage, “legal affairs”. the bosses The Council strives to engage its members in dialogue with “Working committees deal with various areas, such as all relevant interlocutors, primarily the committee chairper- agriculture or telecommunications, for example, the Legal sons, who are extremely competent in the topic with which Committee is general, we deal with taxes, human resources, they are dealing. However, between this kind of commitment industrialisation and infrastructure.... This is actually about and the need not to overburden members with excessive obli- issues that are of interest to members of the Council, compa- gations, priorities are always carefully selected. Given that it nies from the most varied fields, often market competitors, is necessary to present the position of the Foreign Investors with the joint mission of improving the business climate in Council systematically and concisely at a large number of Serbia,” explains Jelena. meetings, that job is entrusted to the executive director. “My Office employees say that they are very satisfied that the task is to relay, in a condensed version, the key stances of the members of the Council - and it should be said that everyt-

92 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS hing is on a voluntary basis - are very acti- ges of texts, which a large number of pe- ve in the committees and are interested in ople work on, are coordinated and edited, initiatives and decisions. Testifying to this but ultimately always end up on the desk is the fact that the number of committees in the office, in Jevremova Street. increases every year, so from five commi- “While the expert, media and political ttees in 2007, it has now grown to 10. It is public can hardly wait to read it, we can also important to emphasise that the work is based on the principle of the equality a smile, because that is a job that goes of members, regardless of the size of the beyondhardly wait the workingto finish hours it,” notes of 9 Srđanto 5. with company or investor. “All opinions are equally relevant,” she makes sure that everything functions - smoothly,Duška Lalović and that is office includes manager. finance, In short, ad- ging to harmonise, in debates on commi- ministration and project support, but also ttees,adds Srđan, the various noting stancesthat it is ofmost companies challen written and verbal communication with all that have different interests or are mar- stakeholders, the membership, committee ket competitors. members. Duška provides support in the Asked how they achieve this, both Jelena organisation of events, promotions, recep- tions and meetings. transparent procedures on which debates “I have been in the office for over a year and dialogueSrđan cite are the based, very clear,and above precise all andthe and this job is a very valuable experience decision-making process. for me. I have the impression that I have “All companies know the rules of the learned a lot and, because of the specifici- game in advance, and they are also pre- ty of the job, that is something I wouldn’t sented to them before committee meetin- have had the chance of in another job. At gs. Decisions are made by the majority of the same time I’ve met a large number of votes, but we strive for a consensus and in professional and important people, which is certainly one of the privileges of this job,” Jelena emphasises that in this context says Duška. most cases we achieve one,” says Srđan. The team’s youngest member is Bogdan

We are proud of the fact that in FIC Executive Office practically “straight our organisation decisions and fromTerzić. university”. He’s an assistant This is howhis first arrived job. at the appropriate attitudes indeed come “I’m 25 and fully aware of how many of my peers don’t have a job, and that those from the bottom up, and that at each who do don’t have one like this,” says Bog- opportunity we represent the unified dan. He thinks that since December last position of the Council’s members, year, when he started the job, he has lear- ned a lot, especially about the way busine- and not individual companies ss operates, but also institutions. “It would be tough for me to find out and there are a large number of general topics see all of this in any other job.” that are in everyone’s interest, regardless When describing his work, Bogdan says of the domain in which they operate. that he is responsible “for everything” re- With the rule of law “we all want, for lated to the immediate functioning of the example, clean air, healthy food and a life in office and his colleagues. It was the most a favourable environment”, she illustrates. difficult for him at the beginning, when he - realised that he had to be fast, to quickly dinating the process of drafting the “White “shift from topic to topic, from one duty to Book”.Srđan It isand “written” Jelena areover in the charge course of ofcoor ne- another”, and to do so all day, every day. arly half a year, which is how long is nee- “I sometimes had to stay at work lon- ded from the decision to the event at whi- ger in order to finish everything. But my ch the White Book becomes available to colleagues helped me a lot in overcoming the public. This usually occurs in autumn, obstacles. I most love the atmosphere of te- and the presentation of recommendations amwork, but I'm still stunned at how much from the FIC White Book is traditionally a work is done on a daily basis by six compe- top-class public event. More than 200 pa- tent people,” says this 25 –year-old. ■

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 93 KEY MESSAGES

Ana Brnabić, Yana Mikhailova, President of the Foreign Investors Prime Minister of the Republic of Serbia Council and Regional Director of Nestlé Adriatic

We Want a More Faithful to its Principles Successful, Efficient and and Mission

Wealthier Serbia Since its establishment in 2002, the Foreign Investors Council has remai- This government is continuing to build ned faithful to its principles - transpa- on the foundations set by its predece- rency, equality and predictability. To- ssor and opening new doors for eco- day, as in the past, the FIC promotes nomic growth through the digitisation a predictable and clear business envi- process. This is a key condition that will enable faster growth ronment that provides equal opportunities for all, as well as in the competitiveness of the economy and more innovations, sound business ethics and a different relationship between the state and its citizens

Zorana Mihajlović PhD, Deputy Prime Minister and Goran Knežević, Minister for Construction, Transport and Infrastructure Economy Minister of the Republic of Serbia

We've Made Major Steps We’ll Continue Along the in Building Infrastructure Road of Reform

We have shown that we are ready to The Government of Serbia and the tackle the most challenging issues Ministry of Economy will continue to such as the reform of public enterpri- work on improving the business envi- ses, building roads and improving ra- ronment and the climate for doing bu- ilway services. Cooperation with the siness, with the aim of creating a more private sector allows us to test our efficient, more prospective, attractive decisions in practice and competitive economy, and equal treatment on the Eu- ropean Union market

Jorgovanka Tabaković, Genoveva Ruiz Calavera, Director for the Governor of the National Bank of Serbia, NBS Western Balkans at the Directorate-General for European Neighbourhood Policy and Enlargement Negotiations of the European Commission We’ll Continue Leading a Responsible Monetary We Want to See Serbia in Policy the EU Preserving the stability of prices and My priority is to provide all our help, the financial system is an ongoing pri- advice and support to Serbia on its ority of the National Bank of Serbia. path towards European Union mem- As long as the compliance with these bership. The European Commission is objectives allows it, the central bank is ready to support the the guardian of the integrity of the ac- implementation of the economic policy of the government cession process and a friend of Serbia that encourages sustainable economic growth

94 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS KEY MESSAGES

Daniel Berg, Thomas Lubeck, EBRD Director for Serbia IFC Regional Manager for the Western Balkans and Central Europe Serbia Must Address “Transitional Gaps” We Support the Government in Key EBRD activities in Serbia continue to be focused on improving the go- Reforms vernance of state-owned and private The IFC is actively engaged in hel- companies, supporting investments ping Serbia improve its business and that help increase innovation and investment climate, the insolvency productivity, strengthening the resi- framework and debt resolution, and lience of the economy and promoting green initiatives, such to attract private investments in infrastructure through pu- as investments in renewable energy blic-private partnerships and concessions

Sebastian Sosa, Ingeborg Øfsthus, Vice President of the Foreign IMF Resident Representative for Serbia Investors Council and Telenor Srbija CEO

Hard Won Results Should A Unified Voice is Our be Carefully Defended Strength

It is crucial that the structural reform The FIC’s biggest strength is in the agenda is fully and expeditiously promotion of views and suggestions carried out, to transform Serbia into a that are the unified voice of more modern, private-sector led economy than 100 entities, whose operati- with higher and sustainable growth ons depend on the development and growth of the entire Serbian market

Dimitrije Knjeginjić, Vice President of the Foreign Ernst Bode, Investors Council and Lafarge Serbia CEO Messer CEO

We Expect the Serbia Has Yet to Realise Government to Continue its Potential

Reforms Serbia has enormous growth poten- tial, but many obstacles have yet to The FIC expects the new Government be removed. Reasonable legislation, a to accelerate important structural re- trim and efficient public administra- forms, particularly the privatisation tion and a professional, reliable and and corporatisation of public enter- functional court system are among prises, ensure the better implementation of laws and ena- the most sought-after conditions for ble the efficient harmonisation of Serbian legislation with businesses to flourish the EU acquis

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 95 KEY MESSAGES

Ana Firtel, Goran Pekez, president of the FIC Anti-Illicit Trade Commi- Executive Director of the Foreign Investors Council ttee (JT International a.d. Senta)

We’ve Preserved Unity Joint Engagements to and Independence Even Better Results

The two most important lessons Remarkable results have been achie- we’ve learned from 15 years of succe- ved in combatting the grey economy. ssful activities are that we have pre- However, in order for this process to served our unity and independence be addressed comprehensively, it is by insisting on firm rules, and that, necessary to fully implement the Law with openness to dialogue and con- on Inspection Oversight, harmonise structive criticism, we have shown readiness to constantly sectoral laws with the umbrella law and ensure good in- change in accordance with the challenges of each juncture. ter-agency cooperation.

Jasmina Vignjević, president of the FIC E-Commerce Milica Stefanović, president of the FIC Food & Committee (Telenor d.o.o.) Agriculture Committee (The Coca-Cola Company-Barlan S&M d.o.o.) New Technologies Will Create New Business Significant Progress Models in Serbia Achieved Major breakthroughs have been made The extent to which Serbia will be a in the previous period on complex place where innovations and inno- issues, such as amending the Law on vative business models develop de- Inspection Oversight and understan- pends greatly on an adequate legal ding the need for amendments to the framework. Food Safety Act.

Dejan Ječmenica, president of the FIC Human Đorđe Popović, president of the FIC Infrastructure and Resources Committee (Wiener Städtische osiguranje (Insurance) a.d.o. Belgrade) cooperation with CMS Reich-Rohrwig Hainz) Industrialisation Committee (Petrikić and Partneri a.o.d., in Education is key to an Ambitious Goals of New Committee

attractive workforce The committee will be focused on im- proving the legislative framework and Employers in Serbia face a lack of skilled practise in the field of cooperation labour at the level of secondary educa- between the public and private sectors, tion, which has a negative influence on in construction, energy and transport, the attracting of foreign investment. In and enabling start-up entrepreneurs- our opinion, a special systemic law or hip’s further development other general act is required to regulate all aspects of the system of dual secon- dary vocational education.

96 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS KEY MESSAGES

Dušan Lalić, president of the FIC Leasing and Insurance Mihajlo Živković, president of the FIC Legal Committee (Generali Osiguranje Srbija a.d.o.) Committee (Societe Generale Banka Srbija)

New Legal Solutions to We Fight For Our Views Better Regulating of the with the Power of Market Argument

We propose that the new Law on Le- We have launched a series of ini- asing regulate operating leasing and tiatives and have the highest expe- that the matter of insurance contra- ctations when it comes to regulati- cts be separated from the regulations ons that regulate foreign exchange of the Civil Code and separately and comprehensively regu- operations and bankruptcy. We strive to use the stren- lated by a special Law on Insurance Contracts, as has been gth of arguments to impact on FIC proposals being con- done in many EU countries. sidered and accepted.

Ivan Gazdić, President of the FIC Real-Estate Committee Dragan Drača, president of the FIC Taxation Committee (PricewaterhouseCoopers d.o.o)

(Bojović & Partners a.o.d. Beograd) Improvement of Laws Through Dialogue to and Practises Required Better Tax Policies

The Real-Estate Committee will con- The lack of transparency and public tinue to deal with the reform of the debate in the domain of changes to cadastre and its digitisation, because tax regulations marked both the cu- in the application of the law there are rrent year and previous ones. More still many open issues and uneven transparency and dialogue are nee- practises. A shift is also required in the area of conversions. ded in order to reach good solutions.

Marko Jović, president of the FIC Telecommunications and IT Committee (Vip Mobile d.o.o.)

Potential of Industry Yet to be Exploited

Operators have invested significant resources to buy frequencies and further develop networks. In or- der to feel the full significance of these investments, it is also necessary for them to be followed by a regulatory framework.

PRINT EDITION FOREIGN INVESTORS COUNCIL - FIRST 15 YEARS could be ordered on [email protected]

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 97 MEMBERS

BOARD OF DIRECTORS President of the Board: YANA MIKHAILOVA, Regional Director, Nestlé Adriatic Vice President of the Board: INGEBORG OFSTHUS, CEO, Telenor Vice President of the Board: DIMITRIJE KNJEGINJIĆ, CEO, Lafarge Serbia Member of the Board: THANOS TRIMIS, GM for Serbia & Montenegro at British American Tobacco Member of the Board: QUENTIN ROYER, COO, Delhaize Serbia Member of the Board: IVAN RAKIĆ, Country Managing Partner, Head of Tax, Ernst & Young Member of the Board: SILVIA VERNETTI-BLINA, Director, FCA Serbia Member of the Board: VLADISLAV LALIĆ, Regional Property & Expansion Manager, IKEA Srbija Member of the Board: NENAD MIŠČEVIĆ, West Balkans Commercial Director, PepsiCo Member of the Board: GORAN PITIĆ, President of the Board of Directors, Societe Generale Banka Srbija

COMMITTEES Anti-Illicit Trade Committee Vice President: JELENA MARKOVIĆ, Vice President: IGOR ŽIVKOVSKI, Živkovic Samardžić a.o.d. President: GORAN PEKEZ, JT International a.d. Senta G4S Secure Solutions d.o.o. Beograd Vice President: NENAD RADENKOVIĆ, NIS a.d. Novi Sad (Naftna industrija Srbije) Infrastructure&Industralisation Committe Real-Estate Committee President: ĐORĐE POPOVIĆ, President: IVAN GAZDIĆ, Digital & E-commerce Committee Petrikić and Partneri AOD Bojovic & Partners a.o.d. Beograd President: JASMINA VIGNJEVIĆ, Telenor d.o.o. in cooperation with Vice President: IVAN PETROVIĆ, Vice President: BRANKO PAVLOVIĆ, CMS Reich-Rohrwig Hainz Janković, Popović & Mitić o.d. Generali osiguranje Vice President: MARINKO UKROPINA, SGS Taxation Committee Food & Agriculture Committee Leasing & Insurance Committee President: DRAGAN DRAČA, Director, PricewaterhouseCoopers President: MILICA STEFANOVIĆ, President: DUŠAN LALIĆ, d.o.o. The Coca-Cola Company (Barlan S&M d.o.o.) Generali Osiguranje Srbija a.d.o. Vice President: VANJA KORAĆ, Vice President: OLIVER RADOSAVLJEVIĆ, Vice President: SLAVKO DUKIĆ, Philip Morris Services d.o.o. Beograd Marić, Mališić & Dostanić o.a.d. Intesa Leasing d.o.o. Beograd Telecommunications & IT Committee Human Resources Committee Legal Committee President: MARKO JOVIĆ, Vip Mobile d.o.o. President: DEJAN JEČMENICA, President: MIHAJLO ŽIVKOVIĆ, Vice President: JASMINA VIGNJEVIĆ, Wiener Städtische osiguranje a.d.o. Beograd Societe Generale Banka Srbija Telenor d.o.o. EXECUTIVE OFFICE ANA FIRTEL, FIC Executive Director; [email protected] MILICA ĐORĐEVIĆ, FIC Communication Officer; [email protected] SRĐAN POPOVIĆ, FIC Regulatory Officer; [email protected] JELENA LAZAREVIĆ, FIC Regulatory Officer; [email protected]

Foreign Investors Council, 47,Gospodar Jevremova Street, IV Floor, 11000 Belgrade, Serbia Phone: 011 3281 958/965, E-mail: [email protected], Web: www.fic.org.rs

ADDIKO BANK A.D. BELGRADE Web: www.airportcitybelgrade.com BALL PACKAGING EUROPE Fax: 011 3093 423 BOJOVIĆ & PARTNERS A.O.D. Bulevar Mihajla Pupina 6, Enrolment date: 2005 BELGRADE LTD. Web: www.basf.rs BELGRADE 11070 Beograd Batajnički drum 21A, Enrolment date: 2009 Francuska 27, 11000 Beograd Pho: 011 2226 000; APEX SOLUTION 11080 Zemun -Beograd Pho: 011 7850 336 Fax: 011 2226 555 TECHNOLOGY D.O.O. Pho: 011 3770 600 BAYER D.O.O. E-mail: [email protected] E-mail: [email protected] Makenzijeva 24, Fax: 011 3167 290 Omladinskih brigada 88b, Web: www.bojovicpartners.com Web: www.addiko.rs 11000 Beograd Web: www.ball.com 11070 Beograd Enrolment date: 2013 Enrolment date: 2002 Pho: 011 7155 171; Fax: 011 7155 171 Enrolment date: 2004 Pho: 011 2070 252 E-mail: [email protected] Fax: 011 2070 261 BPI D.O.O. SOMBOR ADIENT INTERIORS D.O.O. Web: www.apextechnology.rs; BANCA INTESA A.D. BEOGRAD Web: www.bayer.rs Venac Radomira Putnika 1, Kosovska 4. 34000 Kragujevac www.busplus.rs Milentija Popovića 7b, 11070 Beograd Enrolment date: 2009 25000 Sombor Pho: 034 308 222 Enrolment date: 2014 Pho: 011 3108 888 Pho: 025 451 800, 5150 161, 5150 162 E-mail: [email protected] E-mail: [email protected] BAYER D.O.O. Fax: 025 451 800, 025 5150 185 Web: www.johnsoncontrols AUNDE SRB D.O.O. Web: www.bancaintesa.rs Omladinskih brigada 88b, Web: www.bpi-holding.com Enrolment date: 2016 Italijanska BB, 35000 Jagodina Enrolment date: 2004 11070 Beograd Enrolment date: 2010 Pho: 035 740 910; Fax: 035 740 910 Pho: 011 2070 252 ADIENT SEATING D.O.O E-mail: [email protected] BANK OF CHINA A.D. BEOGRAD Fax: 011 2070 261 CARLSBERG SRBIJA D.O.O. Oktobarskih Žrtava bb, Web: www.aunde.com Bulevar Zorana Djindjica 2a, Web: www.bayer.rs Proleterska 17, 21413 Čelarevo 34202 Kragujevac Enrolment date: 2016 11070 Beograd Enrolment date: 2009 Pho: 021 7550 600; Fax: 021 7550 658 Pho: 034 503 200 Pho: 011 6351 000 E-mail: [email protected] Web: www.adient.com BAKLAJA IGRIĆ TINTOR Email: BDK ADVOKATI Web: www.carlsbergsrbija.rs Enrolment date: 2016 ADVOKATSKA KANCELARIJA [email protected] Majke Jevrosime 23, Enrolment date: 2005 Gospodar Jevremova 47/1, Web: www.bankofchina.com 11000 Beograd AIRPORT CITY BELGRADE 11000 Beograd Enrolment date: 2017 Pho: 011 3284 212; COCA-COLA HBC - SRBIJA D.O.O. Omladinskih brigada 88, Pho: 011 3284 110; Fax: 011 3284 213 Batajnički drum 14-16, 11080 Beograd 11070 BBeograd Fax: 011 3346 425 BASF SRBIJA D.O.O. E-mail: Pho: 011 3073 100 Pho: 011 2090 526 E-mail: [email protected] Omladinskih brigada 90B, 11070 [email protected] Fax: 011 3073 199 E-mail: Web: www.bit-law.com Beograd Web: www.bdkadvokati.com Web: www.coca-colahellenic.rs [email protected] Enrolment date: 2004 Pho: 011 3093 403 Enrolment date: 2011 Enrolment date: 2002

98 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS CREDIT AGRICOLE SRBIJA A.D. DEUTSCH-SERBISCHE EXLRT D.O.O. HAUZMAJSTOR D.O.O. JANKOVIĆ, POPOVIĆ & MITIĆ O.D. NOVI SAD WIRTSCHAFTSKAMMER Mornarska 7, 21000 Novi Sad Dunavska 57a, 11000 Beograd Vladimira Popovića 6, Braće Ribnikar 4-6, (AHK SERBIEN) Pho: 021 6301 548, 6392 826 Pho: 011 3034 034; NBGP Apt., 11070 Beograd 21000 Novi Sad Topličin venac 19-21,11000 Beograd E-mail: [email protected]; Fax: 011 2070 995 Pho: 011 2076 850; Pho: 021 4876 876; Pho: 011 2028 010; [email protected] E-mail: [email protected] Fax: 011 2076 899 Fax: 021 4876 976 Fax: 011 3034 780 Web: www.exlrt.com Web: www.hauzmajstor.rs E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Enrolment date: 2010 Enrolment date: 2008 Web: www.jpm.rs Web: www.creditagricole.rs Web: www.serbien.ahk.de/rs;www. Enrolment date: 2009 Enrolment date: 2006 serbien.ahk.de FCA SRBIJA D.O.O. KRAGUJEVAC HEINEKEN SRBIJA D.O.O. Enrolment date: 2014 Kosovska 4, 34000 Kragujevac Omladinskih brigada 90b, JELEN DO A.D. CARMEUSE SERBIA CRH (SRBIJA) D.O.O. Pho: 011 3030 906 11070 Beograd Jelen Do bb, 31215 Jelen Do, Požega Popovac bb, DXC TECHNOLOGY Fax: 011 3030 914 Pho: 011 3538 600; Pho: 031 590 599; 35254 Popovac Omladinskih brigada 90b Web: www.fiatsrbija.rs Fax: 011 3538 691 Fax: 031 590 570 Pho: 035 572 200; Fax: 035 572 207 11070 Beograd Enrolment date: 2011 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Web: www.dxc.technology Web: www.heinekensrbija.rs Web: www.carmeuse.com Web: www.crhserbia.com; Enrolment date: 2005 FRESENIUS MEDICAL CARE SRBIJA Enrolment date: 2003 Enrolment date: 2015 www.crh.com D.O.O. Enrolment date: 2016; Founder ECOLAB HYGIENE D.O.O. Beogradski put bb, 26300 Vršac JONES LANG LASALLE D.O.O. Tošin bunar 272/V, 11070 Beograd Pho: 011 3951 000; Fax: 011 3951 009 HEMOFARM A.D. Danube Business Centar, CROWE HORWATH BDM D.O.O. Pho: 011 2076 800; E-mail: [email protected] Beogradski put bb, 26300 Vrsac Bulevar Mihajla Pupina 10 L, 1 Terazije 5/4, 11000 Beograd Fax: 011 2076 802 Web: www.fmc-ag.com Pho: 013 803 500; 1070 Beograd Pho: 011 6558 500; E-mail: [email protected] Enrolment date: 2013 Fax: 013 831 503 Pho: 011 7850 600; Fax: 011 6558 501 Web: www.ecolab.rs E-mail: [email protected] Fax: 011 7850 597 E-mail: [email protected] Enrolment date: 2008 G4S SECURE SOLUTIONS D.O.O. Web: www.hemofarm.rs E-mail: [email protected]; Web: www.crowehorwath.rs Viline Vode 6, 11000 Beograd Enrolment date: 2013 Web: www.joneslanglasalle.rs Enrolment date: 2012 EKO SERBIA A.D. - Member of Pho: 011 2097 900; Enrolment date: 2008 Hellenic Petroleum group Fax: 011 2097 914 HENKEL SRBIJA D.O.O. DAD DRÄXLMAIER Tošin bunar 274a, E-mail: [email protected] Bulevar oslobođenja 383, JT INTERNATIONAL A.D. SENTA AUTOMOTIVE D.O.O. 11070 Novi Beograd Web: www.g4s.rs 11040 Beograd Suboticki drum 17, 24400 Senta Skladisna hala 1, Pho: 011 2061 500; Enrolment date: 2009 Pho: 011 2072 200 Pho: 011 2050 300 Zrenjaninski park, Fax: 011 2061 555 Fax: 011 2072 294 Fax: 011 2050 301 Lokacija Bagljas Aerodrom, E-mail: administracija@hellenic- GENERALI OSIGURANJE Web: www.henkel.rs Web: www.jti.com 23000 Zrenjanin petroleum.rs SRBIJA A.D.O. Enrolment date: 2004 Enrolment date: 2003 Pho: 023 519 010 Web: www.ekoserbia.com Vladimira Popovića 8, Web: www.draexlmaier.com Enrolment date: 2004 11070 Novi Beograd HEWLETT PACKARD D.O.O. Enrolment date: 2017 Pho: 011 2220 555 Omladinskih brigada 90b JUBANKA A.D. BEOGRAD ELMEG SERBIA Web: www.generali.rs 11070 Beograd Kralja Milana 11, 11000 Beograd DDOR NOVI SAD A.D.O. Ravni Gaj, B.B, 34240 Knic www.generali.com Web: www.hpe.com Pho: 0800 250 250; Bulevar Mihajla Pupina 8, Pho: 034 6170 384 Enrolment date: 2016 Enrolment date: 2017 Fax: 011 3243 516 21000 Novi Sad Web:www.elmeg.it E-mail: [email protected] Pho: 021 4886 000; Enrolment date: 2017 GRAND CASINO BEOGRAD HUAWEI TECHNOLOGIES D.O.O. Web: www.alphabankserbia.com Fax: 021 6624 831 Bulevar Nikole Tesle 3, Vladimira Popovića 38/V, 11070 Enrolment date: 2006 E-mail: [email protected] ERNST & YOUNG D.O.O. BEOGRAD 11080 Beograd Beograd Web: www.ddor.co.rs Španskih boraca 3, "Blue Center", Pho: 011 2202 800; Fax: 011 2202 810 Pho: 011 2209 607; Fax: 011 2209 607 KAPSCH D.O.O. Enrolment date: 2012 11070 Beograd E-mail: E-mail: [email protected] Sava Business Center, Milentija Pho: 011 2095 800 [email protected] Web: www.huawei.com Popovića 5B, 11070 Beograd DELHAIZE SERBIA D.O.O. E-mail: [email protected] Web: www.grandcasinobeograd.com Enrolment date: 2010 Pho: 060 0730 303; Jurija Gagarina 14, Web: www.ey.com/rs Enrolment date: 2008 Fax: 011 2282 679 11070 Novi Beograd Enrolment date: 2004 IC & PARTNERS D.O.O. E-mail: [email protected] Pho: 011 7153 400; GRUNDFOS SRBIJA D.O.O. Strahinjića Bana 65, 11000 Beograd Web: www.kapsch.net ; www.kapsch.rs Fax: 011 7153 900 ERSTE BANK A.D. NOVI SAD Obilazni put Sever 21, 22320 Inđija Pho: 011 3348 446, 3348 447/448 Enrolment date: 2009 E-mail: [email protected] Bulevar oslobođenja 5, Pho: 022 367 300 E-mail: Web: www.maxi.rs; www. 21000 Novi Sad Fax: 022 367 302 [email protected] KARANOVIĆ & NIKOLIĆ delhaizegroup.com Erste Poslovni centar-Milutina Web: www.grundfos.rs; Web: www.icpartnersgroup.net Resavska 23, 11000 Beograd Enrolment date: 2011 Milankovića 11b, 11000 Beograd www. grundfos.com Enrolment date: 2017 Pho: 011 3094 200; Fax: 011 3094 223 Pho: 0800 201 201, 066 8969 000 Enrolment date: 2013 E-mail: DELOITTE D.O.O. E-mail: [email protected]; Web: IKEA SRBIJA D.O.O. [email protected] Terazije 8,11000 Beograd www.erstebank.rs GTC INTERNATIONAL Bubanj potok bb Web: www.karanovic-nikolic.com Pho: 011 3812 100; Enrolment date: 2005 DEVELOPMENTS LLC BELGRADE 11070 Beograd Enrolment date: 2003 Fax: 011 3812 112 Milutina Milankovića 9ž, Web: www.ikea.com E-mail: EUROBANK A.D. BEOGRAD 11070 Beograd Enrolment date: 2008 KNAUF INSULATION D.O.O. [email protected] Vuka Karadžića 10, 11000 Beograd Pho: 011 3130 751; Fax: 011 3130 752 Batajnički drum 16b, 11080 Beograd Web: www.deloitte.com/rs Pho: 011 2065 880; Fax: 011 3027 536 E-mail: [email protected] INTERALLIS CHEMICALS Pho: 011 3310 800; Fax: 011 3310 801 Enrolment date: 2003 E-mail: [email protected] Web: www.gtcserbia.com; Neznanog junaka 27a, 11040 Beograd E-mail: Web: www.eurobank.rs www.gtc.com.pl Pho: 011 3679 230; Fax: 011 3679 231 [email protected] DELTA HOLDING Enrolment date: 2003 Enrolment date: 2014 E-mail: [email protected] Web: www.knaufinsulation.rs; Vladimira Popovica 6, Web: www.interallis.com www.knaufinsulation.com 11070 Beograd EVROPSKA BANKA ZA OBNOVU I HARRISONS Enrolment date: 2005 Enrolment date: 2011 Pho: 011 2011 164, 2011 921; RAZVOJ Bulevar Mihajla Pupina 6, Fax: 011 2011 111 Španskih boraca 3, 11070 Beograd PC Ušće, 11000 Beograd INTESA LEASING D.O.O. BEOGRAD KPMG D.O.O. BEOGRAD E-Mail: Pho: 011 2120 530; Fax: 011 2120 534 Pho: 011 3129 825; Fax: 011 3129 823 Milentija Popovića 7b, 11070 Beograd Kraljice Natalije 11, 11000 Beograd [email protected] E-mail: [email protected]; kilibara@ E-mail: Pho: 011 2025 400; Fax: 011 2025 433 Pho: 011 2050 500; Fax: 011 2050 550 Web: ebrd.com [email protected] E-mail: [email protected] E-mail: [email protected] www.deltaholding.rs Web: www.ebrd.com Web: www.harrison-solicitors.com Web: www.intesaleasing.rs Web: www.kpmg.rs Enrolment date: 2014 Enrolment date: 2016 Enrolment date: 2004 Enrolment date: 2010 Enrolment date: 2002

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 99 KP Advertajzing d.o.o. MERCK D.O.O. MONDELEZ D.O.O. PHILIP MORRIS RAIFFEISEN Sazonova 75/16, Omladinskih brigada 90v, BEOGRAD SERVICES D.O.O. BEOGRAD LEASING D.O.O. 11000 Beograd 11070 Beograd Omladinskih brigada 88b/III, Bulevar Zorana Đinđića 64a, Đorđa Stanojevića 16, Pho: 011 2836 958 Pho: 011 2175 761; 11070 Beograd 11070 Beograd 11070 Beograd E-mail: Fax: 011 2176 781 E-mail: [email protected] Pho: 011 2010 800 Pho: 011 2207 400; [email protected] E-mail: [email protected] Web: Fax: 011 2010 824 Fax: 011 2289 007 Web: www.kupujemprodajem.com Web: www.merck.rs; www.mondelezinternational.com Web: E-mail: Enrolment date: 2016 www.merck.de Enrolment date: 2010 www.philipmorrisinternational.com [email protected] Enrolment date: 2014 Enrolment date: 2004 Web: www.raiffeisen-leasing.rs LAFARGE BFC D.O.O. NBG LEASING D.O.O. Enrolment date: 2003 Trg BFC 1, 21300 Beočin MERKUR OSIGURANJE A.D.O. Airport City, PHOENIX Pharma d.o.o. BEoGRAD Pho: 021 874 102; Bulevar Mihaila Pupina 6/22, Omladinskih brigada 88, Bore Stankovića 2 (Čukarica - Makiš), RAUCH SERBIA D.O.O. Fax: 021 874 143 11070 Beograd 11070 Beograd 11030 Beograd Baja Pivljanina 13, E-mail: [email protected] Pho: 011 7852 727; Pho: 011 2287 982; 2288 071; Pho: 035 38 100, 11000 Beograd Web: www.lafarge.rs; Fax: 011 7852 728 2288 074; 2288 079 Fax: 035 38 200 Pho: 011 2652 225; www.lafargeholcim.com E-mail: [email protected] Fax: 011 2287 984 E-mail: [email protected] Fax: 011 2652 298 Enrolment date: 2002 Web: www.merkur.rs E-mail: [email protected]; website: www.phoenixgroup.rs E-mail: Enrolment date: 2011 Web: www.nbgleasing.rs Enrolment date: 2016 [email protected] LAFARGE BFC D.O.O. Enrolment date: 2004 Web: www.rauch.cc Trg BFC 1, 21300 Beočin MESSER TEHNOGAS A.D. PIRAEUS BANK A.D. Enrolment date: 2011 Pho: 021 874 102; Banjički put 62, NESTLÉ ADRIATIC S D.O.O. BEOGRAD Fax: 021 874 143 11000 Beograd Železnička 131, Milentija Popovića 5b, RINGIER AXEL E-mail: [email protected] Pho: 011 3537 200; 11271 Beograd-Surčin 11070 Beograd SPRINGER D.O.O. Web: Fax: 011 3537 291 Pho: 011 2019 301; Pho: 011 3024 000; Žorža Klemansoa 19, www.lafarge.rs; E-mail: Fax: 011 3132 022 Fax: 011 3024 400 11000 Beograd www.lafargeholcim.com [email protected]; E-mail: [email protected] E-mail: [email protected] Pho: 011 3334 701; Enrolment date: 2002 Web: www.messer.rs Web: www.nestle.rs Web: www.piraeusbank.rs Fax: 011 3334 703 Enrolment date: 2002 Enrolment date: 2005; Enrolment date: 2006 E-mail: komunikacije@ LUKOIL SRBIJA A.D. BEOGRAD Founder Founder ringieraxelspringer.rs Bulevar Mihaila Pupina 165d, PMC AUTOMOTIVE D.O.O. Web: 11070 Beograd METROPOL PALACE D.O.O. NIS A.D. NOVI SAD (NAFTNA KRAGUJEVAC www.ringieraxelspringer.rs; Pho: 011 2220 200 Bulevar Kralja Aleksandra 69, INDUSTRIJA SRBIJE) PMC Automotive d.o.o. Kragujevac www.ringieraxelspringer.com Fax: 011 2220 294 11000 Beograd Narodnog fronta 12, Bulevar oktobarskih zrtava bb Enrolment date: 2014 Web: www.lukoil.rs Pho: 011 3333 100 21000 Novi Sad 34000 Kragujevac Enrolment date: 2009 E-mail: Pho: 021 4811 111; Pho: 034 309 600; RIO TINTO - RIO SAVA [email protected] Fax: 021 6366 433 Enrolment date: 2016 EXPLORATION D.O.O. L’ORÉAL BALKAN D.O.O. Web: www.metropolpalace.com E-mail: [email protected] Resavska 23, 11000 Beograd Bulevar Zorana Đinđića 64a, Enrolment date: 2017 Web: www.nis.rs PRICEWATERHOUSECOOPERS Pho: 011 4041 430 11070 Beograd Enrolment date: 2011 D.O.O. Fax: 011 2752 376 Pho: 011 2205 900 MILENIJUM OSIGURANJE A.D.O. Airport City Belgrade, Omladinskih Web:www.riotinto.com; Fax: 011 2205 901 Bulevar Mihajla Pupina 10L, NOKIA SOLUTIONS AND NETWORKS brigada 88a www.riotintoserbia.com Web: www.loreal.com 11070 Novi Beograd SERBIA D.O.O. BEOGRAD 11070 Beograd Enrolment date: 2004 Enrolment date: 2004 Pho: 011 7152 300 Đorđa Stanojevića 14, Pho: 011 3302 100; Fax: 011 3302 101 Web: 11070 Beograd E-mail: [email protected]; Web: MAGNETI MARELLI D.O.O. www.milenijum-osiguranje.rs Belgrade Office www.pwc.rs ROBNE KUĆE BEOGRAD D.O.O. Kosovska 4 E-mail: Park, Building II, Gallery Floor Enrolment date: 2002; Founder Makenzijeva 57, 34000 Kragujevac [email protected] Pho: 011 3070 123; 3070 111; 11000 Beograd Pho: 034 502 748 Enrolment date: 2017 Fax: 011 3070 167 PRISTOP Pho: 011 3206 540; Web: www.magnetimarelli.com Web: www.nsn.com Bulevar Milutina Milankovića 136, Fax: 011 3206 550 Enrolment date: 2016 MINI PANI D.O.O. Enrolment date: 2009 ulaz A / I E-mail: [email protected] Hipodromska bb, 11070 Beograd Web: www.rkbeograd.rs MARBO PRODUCT D.O.O, A 24107 Subotica PATRIMONS D.O.O. Pho: 011 7151 764; Enrolment date: 2010 COMPANY OF PEPSICO Pho: 024 621 521; Sterijina 7, 11000 Beograd Fax: 011 7151 740 Đorđa Stanojevića 14, Fax: 024 621 522 Pho: 011 2772 729; Fax: 011 2781 829 E-mail: ROCHE D.O.O. 11070 Beograd E-mail: [email protected] E-mail: [email protected] [email protected]; Milutina Milankovića 11a, Pho:011 3637 000; Web: www.minipani.com Web: www.patrimons.com Web: www.pristop.rs 11070 Beograd E-mail: Enrolment date: 2012 Enrolment date: 2008 Enrolment date: 2010 Pho: 011 2022 803; [email protected] Fax: 011 2022 808 Web: www.pepsico.com, www. MOJI BRENDOVI D.O.O. BEOGRAD PERNOD RICARD SERBIA PROCREDIT BANK E-mail: facebook.com/PepsiCoSrbijaOfficial; Andre Nikolića 1-3, Bulevar oslobođenja 211, 11000 Milutina Milankovića 17, [email protected] twitter.com/PepsiCoSrbija 11000 Beograd Beograd 11000 Beograd Web: Enrolment date: 2009 Pho: 011 3817 017 Pho: 011 3091 500 Pho: 011 2077 906; www.rochesrbija.rs; E-mail: Fax: 011 3974 380 Fax: 011 2077 905 www.roche.com MARIĆ, [email protected] Web: www.pernodricard.com E-mail: [email protected] Enrolment date: 2013 MALIŠIĆ & DOSTANIĆ O.A.D. Web: www.mojibrendovi.com Enrolment date: 2003 Web: www.procreditbank.rs Resavska 32/4, Enrolment date: 2011 Enrolment date: 2004 S-LEASING D.O.O. 11000 Beograd PETRIKIĆ & PARTNERI AOD - IN Bulevar Milutina Milankovića 11a/IV, Pho: 011 3024 900; MOL SERBIA D.O.O. COOPERATION WITH RAIFFEISEN BANKA A.D. BEOGRAD 11070 Novi Beograd Fax: 011 3024 910 Đorđa Stanojevića 14, CMS REICH-ROHRWIG HEINZ Đorđa Stanojevića 16, Pho: 011 2010 700; E-mail: 11070 Beograd Cincar Jankova 3, 11000 Beograd 11070 Beograd 2010 701; [email protected] Pho: 011 2096 900 Pho: 011 3208 900; Fax: 011 3208 930 Pho: 011 3202 100 Fax: 011 2010 702 Web: Web: molserbia.rs E-mail: [email protected]; E-mail: [email protected] E-mail: [email protected] www.mmd-associates.com Mail: [email protected] Web: www.cms-rrh.com Web: www.raiffeisenbank.rs Web: www.s-leasing.rs Enrolment date: 2005 Enrolment date: 2017 Enrolment date: 2004 Enrolment date: 2002 Enrolment date: 2003

100 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS SANOFI-AVENTIS SLADARA Web: TIGAR TYRES D.O.O. Pho: 060 1234; D.O.O. MALTINEX D.O.O. www.swarovskigroup.com PIROT Fax: 011 2253 334 Španskih boraca 3, Industrijska zona b.b., Enrolment date: 2015 PREDUZECE E-mail: 11070 Beograd 21400 Bačka Palanka ZA PROIZVODNJU [email protected] Pho: 011 2225 900 Pho: 021 752 910 TECHNIC GUMA Web: Fax: 011 2225 924 Fax: 021 6042 399 DEVELOPMENT D.O.O. Nikola Pašić 213, www.vipmobile.rs Web: Web: www.soufflet.com Bunuševac bb 18300 Pirot Enrolment date: 2007 www.sanofi.com Enrolment date: 2004 Vranje 17500 Pho: 010 2157 000; Enrolment date: 2014 Web: www.geox.com Fax: 010 2157 010 VOJVOĐANSKA BANKA A.D. SOCIETE GENERALE Enrolment date: 2017 Web: www.michelin.rs NOVI SAD SAVA NEZIVOTNO BANKA SRBIJA A.D. Enrolment date: 2009 MEMBER OF OSIGURANJE BEOGRAD, TELEKOM NBG GROUP A.D.O. BEOGRAD CLOSED JOINT SRBIJA A.D. TITAN CEMENTARA Trg Slobode 5-7, Bulevar vojvode Mišića 51, STOCK COMPANY Takovska 2, KOSJERIĆ D.O.O 21000 Novi Sad 11000 Beograd Bulevar Zorana Đinđića 50 a/b, 11000 Beograd Živojina Mišića b.b., Pho: 0800 23 23 22; Pho: 011 3644 801; 11070 Beograd Pho: 011 2111 123 31260 Kosjerić Fax: 021 6624 859 Fax: 011 3644 889 Pho: 011 3011 400; 2221 200; E-mail: Pho: 031 590 300 E-mail: E-mail: Fax: 011 3132 885 [email protected] Fax: 031 590 398 [email protected] [email protected] E-mail: Web: www.telekom.rs Web: www.titan.rs Web: www.voban.co.rs; Web: Retail banking: stanovnistvo.sgs@ Enrolment date: 2007 Enrolment date: 2004 Enrolment date: 2003 www.sava-osiguranje.rs socgen.com Enrolment date: 2015 Corporate clients: privreda.sgs@ TELENOR BANKA A.D. TPA POREZI WIENER RE socgen.com BEOGRAD I RACUNOVODSTVO D.O.O. AKCIONARSKO DRUŠTVO SBERBANK Web: Omladinskih brigada 90v, Makedonska 30/3, ZA REOSIGURANJE SRBIJA www.societegenerale.rs; 11070 Beograd 11000 Beograd BEOGRAD A.D. BEOGRAD Enrolment date: 2002; Pho: 011 4409 670; Pho: 011 6558 800 Trešnjinog cveta 1, Bulevar Mihaila Pupina 165g, Founder Fax: 011 4409 650 Web: www.tpa-group.rs 11070 Beograd 11070 Beograd E-mail: Enrolment date: 2017 Pho: 011 2209 960; Pho: 0700 700 800, SOCIETE GENERALE [email protected]; Fax: 011 2251 711 19909, OSIGURANJE Web: UBCONNECT E-mail: 011 2257 498 A.D.O. BEOGRAD www.telenorbanka.rs INT DOO [email protected] Fax: 011 2013 270 Bulevar Zorana Đinđića 50 a/b, Enrolment date: 2015 Tosin bunar 272, Web: E-mail: 11070 Beograd 11070 Beograd www.wienerre.rs; [email protected]; Pho: 011 2608 662; TELENOR D.O.O. Pho: 011 4142 289 www.vig-re.com Web: www.sberbank.rs Fax: 011 2607 330 Omladinskih brigada 90 E-mail: Enrolment date: 2014 Enrolment date: 2004 E-mail: 11070 Beograd [email protected] [email protected] Pho: 063 9000 Web: www.ubq.no WIENER STÄDTISCHE SCHNEIDER Web: www.sogeosiguranje.rs; Web: www.telenor.rs Enrolment date: 2016 OSIGURANJE ELECTRIC www.societegenerale.com Enrolment date: 2006 A.D.O. BEOGRAD SRBIJA D.O.O. Enrolment date: 2014 UNICREDIT Trešnjinog cveta 1, Vladimira Popovića 38-40, TETRA PAK BANK SRBIJA JSC 11070 Beograd 11070 Beograd SOGELEASE S PRODUCTION Rajićeva 27-29, Pho: 011 2209 800; Pho: 011 3773 100 RBIJA D.O.O. Milutina Milankovića 9ž, 11000 Beograd Fax: 011 2209 900 E-mail: Bulevar Zorana Đinđića 50 a/b, 11070 Beograd Pho: 011 3777 888; E-mail: [email protected] podrska.klijentima@schneider- 11070 Beograd Pho: 011 2017 333; Fax: 011 3342 200 Web: www.wiener.co.rs electric.com Pho: 011 2221 369; Fax: 011 2017 380 E-mail: [email protected] Enrolment date: 2003 Web: Fax: 011 2221 388 Web: www.tetrapak.rs Web: www.unicreditbank.rs www.schneider-electric.com E-mail: Enrolment date: 2002 Enrolment date: 2013; Founder WOLF THEISS IN Enrolment date: 2012 [email protected] Founder COOPERATION Web: www.sogelease.rs UNIQA NEŽIVOTNO WITH LAW OFFICE SGS Enrolment date: 2011 THE COCA-COLA OSIGURANJE A.D.O. MIROSLAV S BEOGRAD D.O.O. COMPANY Milutina Milankovića 134G, TOJANOVIĆ Jurija Gagarina 7b, STMG (BARLAN S&M D.O.O.) 11070 Beograd PC Ušće, Bulevar 11070 Beograd CONSULTANCY Batajnički drum 14-16, Pho: 011 2024 100 Mihajla Pupina 6, Pho: 011 7155 277, D.O.O. BEOGRAD 11080 Beograd E-mail: [email protected] 11070 Beograd 011 7155 288; Bulevar Zorana Đinđića 144v, Pho: 011 3081 100; Web: www.uniqa.rs Pho: 011 3302 900; Fax: 011 2284 241 11070 Beograd Fax: 011 3081 166 Enrolment date: 2006 Fax: 011 3302 925 E-mail: Pho: 011 3535 400; E-mail: E-mail: [email protected] Fax: 011 3535 401 [email protected] VICTORIA [email protected]; Web: www.sgs.rs E-mail: Web: GROUP A.D. Web: Enrolment date: 2016 [email protected] www.thecoca-colacompany.com Bulevar Mihajla www.wolftheiss.com [email protected] Enrolment date: 2002 Pupina 115b, Enrolment date: 2003 SIEMENS D.O.O. Web: 11070 Beograd BEOGRAD www.stmgconsultancy.com THE INTERNATIONAL Pho: 011 3532 700; ŽIVKOVIĆ Omladinskih brigada 21, Enrolment date: 2006 SCHOOL Fax: 011 3532 728 SAMARDŽIĆ 11070 Beograd OF BELGRADE E-mail: A.O.D. Pho: 011 2096 305; SWAROVSKI Temišvarska 19, [email protected] BEOGRAD Fax: 011 2096 061 SUBOTICA D.O.O. 11000 Beograd Web: Makedonska 30, E-mail: Batinska 94, Pho: 011 2069 999; www.victoriagroup.rs 11000 Beograd [email protected] 24000 Subotica Fax: 011 2069 944 Enrolment date:2013 Pho: 011 2636 636; Web: Pho: 024 24 636 785; E-mail: [email protected] Fax: 011 2635 555 www.siemens.rs Fax: 024 636 904 Web: VIP MOBILE D.O.O. E-mail: [email protected] Enrolment date: 2002, E-mail: www.isb.rs Milutina Milankovića 1ž, Web: www.zslaw.rs Founder [email protected] Enrolment date: 2014 11070 Beograd Enrolment date: 2011

FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 101 102 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS FIRST 15 YEARS FOREIGN INVESTORS COUNCIL IN SERBIA 103 104 FOREIGN INVESTORS COUNCIL IN SERBIA FIRST 15 YEARS