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CONTENTS

2 ALEKSANDAR GROS & FRITZ KALTENEGGER 30 VLASTIMIR GOLUBOVIC SEEBDN – a young, successful, and Montenegro – “Home“ for over 120 growing organization business ideas

4 KARIN KNEISSL 32 MLADENKA GRGIC A New Narrative for South-East Europe Key role for long term business – meeting the needs of the customers 8 Showcasing Regions JOHANNA MIKL-LEITNER 34 Showcasing Cities Linking with EU and beyond is essential ZORAN RADOJICIC for business My vision is a smart, green and children’s city 12 Showcasing Regions IGOR MIROVIC 40 ZORAN JANKOVIC Take initiative, don’t just wait! Ljubljana Vision 2025 for a Sustainable Development 16 PAVLE PETROVIC Economic growth is now a key issue for 45 MILAN BANDIC Serbia We want to push the boundaries in all important areas 18 DUBRAVKA NEGRE EIB - reliable partner for development of 50 MIHAILO JOVANOVIC Western Balkans Digital transformation for more efficient society 20 ALEKSANDAR VLAHOVIC Economic policy should focus on 52 MICHAEL SCHERZ investment growth "Eyes and ears" for Austrian companies in the world 22 GLIGOR BISHEV North Macedonia: Commitment to 54 MIHA JURGEC Long-Term Growth and Prosperity Ahead of the curve – and how LANCom intends to stay there MULTINATIONAL 24 HRVOJE KRESIC Davos 2019: A Look Inside 56 DARKO BUDEC Protecting what matters. Innovation and high technology as a business model We see diversity as one of our strengths. With around 50 Group 26 Destinations On the Rise – ALEKSANDRA POPOVIC companies in 25 countries, we Montenegro 2019 58 Lovcen Bank Vision for the future share our experience and exper- MILUTIN SIMOVIC tise with each other. We build on Vision of Montenegro as a modern, 59 Welcome to the Hotel group innovative ideas and influences open and democratic society from various cultures for the ben- "Budvanska rivijera" at the Adriatic cost efit of our customers, partners, of Montenegro shareholders and employees. Di- versity is part of everything we do. To find out what also matters to us, visit www.vig.com PUBLISHER: SEEBDN, A- 1190 WIEN, Krottenbachstr 151/3 Coordinator to the Publisher: Mag. Aleksandar Gros, General Secretary SEEBDN EDITORIAL STAFF Editor: ZORAN MIRKOVIC | Design & Technical Editor: ANA DJORDJEVIC Translation & Proofreading: BILJANA MAJSTOROVIC | Print: DMD Beograd

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VIG_AZ_210x280_Multinational_English.indd 1 15.02.19 11:02 BUSINESS LINK BUSINESS LINK

SEEBDN – We are using this opportunity to invite, one more time, A YOUNG, SUCCESSFUL, AND all companies that share our values or find interest in taking part in our activities to join us and become part GROWING ORGANIZATION of a wider picture, part of the SEEBDN family. Let’s make positive changes together!

outheast Europe Business of economy, finance, politics and business people and diplomats. Development Network diplomacy. Hence, the number of The first SEE Business Circle will (SEEBDN) shares a vi- SEEBDN members is growing rap- be held in Vienna on 18 March sion that private sector in idly, along with a proportionate 2019, and during this year more S gatherings of this kind will ensue. Southeast Europe (SEE), through growth of support we are getting the process of networking and from both policy makers and eco- The conference "Destinations on joining forces, can give a boost to nomic decision makers from coun- the Rise" is also a new format of economic growth in that region. tries of Southeast Europe, Austria events aimed at showcasing one Cooperation with the private sec- and Germany. country from the SEE region each tor is one of important factors for In order to present what we do in year, which will have an opportu- stability and prosperity in this part SEEBDN, we have launched the nity to present its economy, com- of Europe. This is where we see a Business Link magazine. The mag- panies and investment projects. role of SEEBDN. azine features up-to-date topics The partner of SEEBDN at these SEEBDN‘s mission is to contribute ALEKSANDAR GROS and authors from the spheres of conferences is the famous Austrian with its activities in Southeast Eu- General Secretary of the SEEBDN economy, politics, innovation and media company "Die Presse". rope to faster development of the Executive Director at Grimex digitization. We plan to distribute Montenegro is the first country region, to provide full support to Consult the magazine at least twice a year to be presented in this format, at Dr Wolfgang Petritsch at the SEEBDN Launch Event in Vienna its members, and to back up EU directly to companies, government the conference "DESTINATIONS candidate countries in Southeast institutions and non-governmental ON THE RISE 2019 - MONTE- Europe on their path to the Euro- organisations from the countries NEGRO", which will be held in pean Union. in which we are active. Vienna on 15 May 2019. We plan Although we are a very young or- Speaking of our next steps, for to organise these conferences once ganization, we can proudly say sure we will continue to work on a year, always with the support that we have already achieved re- connecting and directly network- of the government of the country markable results, while our plans ing our members with new poten- concerned. for the next period are even more tial business partners, as well as on We are using this opportunity to ambitious. providing them with opportunities invite, one more time, all compa- Let’s start from the beginning. Last to expand their businesses in the nies that share our values or find year we established SEEBDN and new SEE and German-speaking interest in taking part in our activi- successfully marked the occasion markets. ties to join us and become part of a at a conference held on 22 Novem- We also plan to organise impor- wider picture, part of the SEEBDN ber 2018 at the Diplomatic Acad- tant meetings in a new format. For family. Let’s make positive changes FRITZ KALTENEGGER emy of Vienna. We are honored example, we are currently active in together! Chairman of the Board of the by the fact that the importance of organising the SEE Business Cir- SEEBDN our organization has already been cle - an exclusive event which will Fritz Kalteneger at the SEEBDN Launch Event in Vienna recognized by some of the most CEO at café+co International gather members of our Managing prominent figures in the world Holding GmbH Board and Advisory Committee,

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A NEW NARRATIVE FOR Austria is bridge builder for EU partners who are geographically further SOUTH-EAST EUROPE away from the region

KARIN KNEISSL Austrian Minister for Europe, Integration & Foreign Affairs

uring the 2018 Austrian Presiden- cy of the Council of the European Union, we quite naturally built on Dthe EU-“Western Balkans” focus, which had taken shape under the preceding Bulgarian EU Presidency. In fact, by 2018 the region had fully moved back towards the cen- tre of EU attention. Since taking office, I visited every single coun- try of the region. SEE is very familiar to me, hence I prefer to replace the term “Western Bal- kans”, whenever appropriate, by using “South- east Europe” instead: “Western Balkans” was effectively coined at an EU-forum in 1999 and has come to be established. However, it blurs the geographic picture and stresses the term Balkans, which carries a somewhat derogato- ry connotation. I received many positive reac- tions: language is powerful; words reflect re- alities – but they also help to shape them. Let me therefore use “Southeast Europe” - and feel free to emulate this exercise! Of course, I can understand the scepticism con- cerning the current developments in SEE, as voiced in some EU capitals. Nevertheless, the EU cannot be complete without the integration of all the countries in Southeast Europe. My conviction is not derived from lofty principles or romantic dreams, and neither does it stem from Austria’s geographic vicinity and histor- ical links to the region. In SEE, the EU is chal- lenged by various threats and influences, from

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illegal migration to third actors opening of accession negotia- who turn our neighbourhood into tions. In June 2018, the Council a geopolitical theatre. acknowledged this progress and paved the way for opening negoti- Austria is bridge builder for EU ations in 2019. The breakthrough partners who are geographically in the name-issue between Athens further away from the region. We and Skopje highlights how joint try to complement their picture of diplomatic and political efforts the region with the realities, prob- can lead to peaceful solutions and lems, but also opportunities and neighbourhood. advantages, which we know SEE has. The region has been a reliable Concerning the Belgrade-Pristina partner during the migration crisis, Dialogue, one important point essential in fighting illegal migra- needs to be clarified: it is a myth tion. to think that bilateral issues can- The EU cannot be not be resolved and should best Geography is a constant fact of be placed under quarantine: all it complete without the history: when geography and his- takes is political will, courage and integration of all the tory meet, geopolitical analysis a spirit of compromise. kicks in. When adding the geogra- countries in Southeast phy of the EU MS and SEE as well Today we are discussing EU en- Europe as our common history, it becomes largement with renewed acumen. obvious, that the future of South- This is a positive sign, and yet, east Europe must be inside the EU. breakthroughs are overdue. People in the region deserve a better future Over the last years, the countries - they should be able to profit from of the region have improved their and contribute to it, not only by mutual contacts, connected some emigrating to EU member states, of their infrastructure and eased but by staying in their regions and some of their exchanges. Yet, pro- contributing to the endeavours for gress is too slow: with each passing prosperity. year, the stream of migrants to the EU from every single SEE country I can only repeat that the EU - and is increasing substantially. At the Austria - stand ready to support same time, the leading regions of the countries of South-East Eu- this world, Asia first, are taking rope on their way towards the Eu- strides in technological break- ropean Union, because it is in our throughs, challenging Europe. shared interest.

Let me cast a brief glance into the Viribus unitis, with unified forces rear mirror - we are looking back and determination, the EU and its on several years of slow progress members, together with the SEE- in reforms in the region and on its 6, can put into action a new and path towards the EU, but also on a positive narrative for South-East recent significant positive change: Europe, strengthening our entire Regarding both Skopje and Tira- continent in the age of global com- na, genuine reforms have led the petitiveness. Commission to recommend the

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SHOWCASING REGIONS LINKING WITH EU AND BEYOND IS ESSENTIAL FOR BUSINESS

INTERVIEW: JOHANNA MIKL-LEITNER, The governor of Lower Austria

Economic collaboration with other countries is essential, particularly for a region with the target to position itself strongly as a modern economy and science focused in the European Union. Since joining the EU in 1995, we have succeeded in doubling our economic processes and in drastically increasing our export business. Every second work place is linked to export – this is how Johanna Mikl-Leitner, acting governor of Lower Austria replied to the Business Link Mag- azine, answering question - what is the significance of linking not just countries, but regions as well.

“We do not only focus on export to EU countries, but also on other continents. And in order to do so we have an internationalisation strategy“, she said.

SEEBDN: What is the economic strategy of the Research, Development and Market Imple- Lower Austrian region and what are your for- mentation: fostering research and develop- eign trade priorities? ment with the particular focus on marketing, development and the backing of cooperative Mikl-Leitner: Today, Lower Austria is already R&D&I projects and providing the a leading economic performer among the re- sponsorship of cooperative innovation pro- gions of Europe, which has been confirmed by jects. numerous EU awards we have received. Besides our reputation as a high-tech location, our re- Start-ups with Growth Potential: promoting gion is export- and innovation-driven and has and funding business start-ups with growth an excellent research infrastructure. In order to potential, offering innovative financing forms stay competitive we have developed our Lower such as participation interests and venture cap- Austrian economic strategy 2020, which focus- ital with an emphasis on innovative business es on four core strategies: ideas and improving the business start-up en- vironment. Lower Austria’s location in the heart of Sustainable Business Success and International- isation: supporting companies in their sustain- Attractive Business Sites: developing and man- Europe makes it a hub between the west and the able growth and in their internationalisation aging technology and research centres, as well east. As we earn €22 billion through exports, we activities, as well as with appropriate financing as business parks and business site co-opera- generate more than 50% of our gross regional mechanism and our assistance with site estab- tions and promoting regional flagship projects lishment and expansion projects. as well as identifying and supporting top busi- product outside Austria ness establishment and expansion projects.

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SEEBDN: Lower Austrian exports SEEBDN: To what extent can as- have shown that our initiative has SEEBDN: Do immigrants contrib- are growing year on year. How do sociations such as SEEBDN con- been a success. In fact, organisa- ute to the economy of Lower Aus- you support exporters? tribute to the enhancement of tions such as SEEBDN, help re- tria and if so - how? business relationships? gions to position themselves inter- Mikl-Leitner: Lower Austria’s nationally - and this benefits both Mikl-Leitner: In view of the de- location in the heart of Europe Mikl-Leitner: At regional level, the economy and society. mographic development and the makes it a hub between the west people are closer to the citizens ageing of our society associated as and the east. The fall of the “Iron and it is easier to develop tai- SEEBDN: As the former Austrian a result, there is no alternative to Curtain”, the expansion of the EU lor-made solutions. That is why Minister of the Interior, how im- controlled and qualified immigra- and the resulting opening of bor- we - in Lower Austria - maintain portant do you consider the Bal- tion. To my understanding, it facil- ders made it even easier for SMEs our international contacts by our- kan countries as regards the fight itates integration when immigrant to expand internationally. As we selves. In April we are going to vis- against illegal migration? people go to work. In addition, the earn €22 billion through exports, it our Chinese partner province in economy also benefits from qual- we generate more than 50% of Zhejiang with an economic delega- Mikl-Leitner: I think the Balkans ified immigration, as we have a our gross regional product out- tion in order to keep our economic is a key region on this issue. In my shortage of skilled workers despite side Austria. Traditionally, Low- contacts and to conclude cooper- previous role, I was always look- the good economic times. The er Austria´s key markets are our ation agreements in the fields of ing for dialogue with the coun- challenge is to manage and direct neighbouring countries as well as technology, science and tertiary tries and worked to combat illegal immigration in a way that benefits migration together with the local the EU member states. It is not education. In Europe, we are in both migrants and the local econ- partners on site. As the current surprising, that Germany is by far close and regular contact with nu- omy and society. I am happy to government with Federal Chan- the most important export mar- merous regions both within and cellor Sebastian Kurz continues to live in a country where people are ket for us. This is followed by the Regional diversification is important for outside the EU. This is why we are pursue this path, we seem to have trying to meet this challenge with Czech Republic, Italy, Hungary leading an initiative to ensure that been on the right track. This is, in both their brains and their hearts. and the United States. In fact, five our export economy – we also have the all regions keep getting sufficient fact, a great example of how major out of our ten most important ex- US market and Asian countries “on our funding from the EU in the future, challenges can only be solved by port markets are located in CEE/ too. The first drafts of the EU’s working together across national SEE countries, underlining the radar”. Multiannual Financial Framework borders. importance of these markets for our companies. Over 75% of all our exports of goods go to the EU. important Lower Austrian export uation in the case of countries such LOWER AUSTRIAN EXPORT Regional diversification is impor- destinations, while Croatia was in as Slovakia and Hungary, there TO WESTERN BALKANS tant for our export economy – we the 21st place (€200 million). Both is undoubtedly potential for im- countries are members of the EU provement here. Political stability, also have the US market and Asian SLOVENIA €570 MILLION countries “on our radar”. In April which, of course, both considera- the rule of law, minimal bureau- bly facilitates and promotes trade. cracy and a good infrastructure In fact, organisations such as SEEBDN, this year I will have the privilege CROATIA €200 MILLION of leading a high-level Lower Aus- Serbia was in the 23rd place (€160 are essential prerequisites, while a help regions to position themselves million) and Bosnia and Herzego- dynamic economy, willingness to trian business delegation to China. SERBIA €160 MILLION internationally - and this benefits both the vina in the 35th place (€67 mil- invest and spend are fundamen- lion), whereby Bosnia and Herze- tal factors that determine wheth- economy and society. SEEBDN: What other areas of the B&H €67 MILLION Western Balkans have potential govina seems to be in the process er an export market is of interest. for economic cooperation? What of establishing itself as a hub with Macedonia, Albania, Kosovo and are the preconditions? a focus on contract production. Montenegro are not among the Since 2016, there has been a sig- top 60 of Lower Austria’s export Mikl-Leitner: In 2017, Slovenia – nificantly positive upward trend markets. These countries are not to which we exported goods to a in exports from Lower Austria yet fully on the radar of businesses value of €570 million – was in the to Croatia and Serbia – however, based in Lower Austria. 10th place in the league of most when we compare this with the sit-

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SHOWCASING REGIONS SEEBDN: What are your specific advantages for attracting inves- TAKE INITIATIVE, tors? Mirovic: Our people have excellent education and professional skills DON’T JUST WAIT! required for all production levels, including high-tech. Therefore, it’s INTERVIEW: IGOR MIROVIC, President of the Government of the Autonomous no wonder that the city of Novi Province of Vojvodina Sad, the administrative capital of Vojvodina, is an IT hub, not only in Serbia, but also beyond. All of this is thanks to the excellent qual- The Provincial ity of education, primarily that Government that I am provided at the Novi Sad Univer- sity, which has more than 50,000 leading established last students, as well as that provided year the Vojvodina by other educational and scientific institutions. Another advantage is Development Agency the fact that Serbia has free trade to directly stimulate agreements with many countries, i.e. large markets, which provide Igor Mirovic visiting Austria the opening of new for financial facilities and tax relief gions of other countries, including Mirovic: The importance we at- factories and creating at both state and provincial levels. Austria, of course; we are deepen- tach to this type of connectivity It is for this very purpose that the new jobs, and this has ing the existing regional coopera- is best illustrated by the fact that Provincial Government that I am tion agreements and signing new since the current Provincial Gov- already yielded leading established last year the ones. In line with our strategic ernment was formed to-date, i.e. Vojvodina Development Agency tangible results commitments, we have been pres- in the period of about two and a to directly stimulate the opening ent on regular basis at prestigious half years, we have signed 11 new of new factories and creating new international trade fairs all over inter-regional agreements with jobs, and this has already yielded the world, like the ones in Frank- our partners from Europe and tangible results. furt, Berlin or Beijing, and attend- Asia. Among them are agreements ing expert conferences aimed at with Italy's Lombardy region, the SEEBDN: What methods of pro- “Vojvodina has considerable potential, mostly in agriculture, but also enhancing economic cooperation French department of Val D'Oise, 1.7 MILLION moting the Autonomous Province in all other areas. Thus, it is only natural that we have the largest num- and all other types of cooperation. Chinese provinces of Fujian and HECTARES of Vojvodina have you used and ber of foreign companies that have decided to invest in Vojvodina”, One such conference was "Serbia Hainan, Nizhegorod Oblast and which one appears to be the most Igor Mirovic, President of the Government of the Autonomous Prov- meets Austria – Explore Serbia’s Arkhangelsk Oblast of the Russian efficient? ince of Vojvodina, told the Business Link Magazine in an interview. Industrial Hub Vojvodina", a Federation, etc. As a rule, decen- “As for agriculture, we have more than 1.7 million hectares of arable business conference organized in tralized cooperation is much easier Mirovic: One of the key commit- land, with the potential to irrigate as many as 1.2 million hectares of 2017, which I personally attended and more efficient and, in all cas- ments of my government since it land thanks to our rivers and our canal network. We boast a long and and which brought together more es, we seek to focus on enhancing was formed in mid 2016 has been rich tradition in modern agricultural practices; we use pesticides con- than 70 companies from Austria trade relations and economic rela- to take initiatives rather than just siderably less than other countries do and our people are very skilled and Serbia. tions as a whole, which, in turn, OF ARABLE LAND wait for things to happen, and our and committed to their work”, Mirovic said. facilitates and accelerates the en- initial experience shows that this SEEBDN: How important to you hancement of cooperation in cul- is an effective formula. Hence, we is regional connectivity, i.e. in- ture, education, science and other have continuous communication ter-provincial connectivity, and areas, as well. In the world that with potential investors from re- why? we are living in today the flow of

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capital, goods, people, ideas and everything else that our develop- ment depends upon often acceler- ates incredibly, which impacts our everyday life. All of this increas- We have agreed with our partners from Lower ingly steps up the importance of Austria to expand and strengthen our coopera- regional connectivity and sharing tion primarily in the processing industry, agri- of all kinds of experiences. culture, environmental protection and culture SEEBDN: Have you used any of EU’s regional connectivity projects and programmes that are available and what are your plans and capa- bilities to that effect? Mirovic: The province of Styria constantly on the rise, having in- has been Vojvodina's long-stand- creased from about 280 million in Mirovic: This type of connectivity ing partner and we have estab- 2015 to nearly 409 million euros also implies involvement of non- lished multiple ties, from econom- in 2018, which is the largest scope EU member states. To that effect, ic ones to those in education. In of cooperation we have achieved the Republic of Serbia is currently the field of education, thanks to so far. However, we want this participating in 23 cross-border the Memorandum of Understand- scope of trade to be even larger and trans-national programmes. ing signed between the University and we believe that there is a lot The Interreg-IPA programmes of Graz and the University of Novi of room for further increasing our of cross-border cooperation are Sad, i.e. the cooperation agree- cooperation in a wide range of ar- mostly implemented with Hunga- ment between the Law Schools of eas – from manufacture of motor ry, Romania and Croatia and, of the two universities, a significant vehicles and electrical equipment, course, our province is involved in number of young people from Vo- agriculture and food processing in- them. Under those programmes, jvodina are studying in Graz. As dustry to the production of com- we have implemented a project of for our cooperation with Lower puters and electronic and optical construction of the Serbian Cul- Austria, mainly there is coopera- equipment. tural Centre in Hungary's Móra- tion between the provincial assem- halom tourist resort. Last year, we blies, but during the previous visit also laid a foundation stone for the to Vojvodina by our partners from Hungarian Cultural Centre at Pal- Lower Austria, we have agreed to MUTUAL TRADE ic, Vojvodina. A strategic project expand and strengthen our coop- INCREASED FROM on revitalization of the Begej river eration primarily in the processing canal navigation infrastructure is industry, agriculture, environmen- 280 MILLION currently being implemented with tal protection and culture. our Romanian partners. Our goal is to keep expanding and develop- SEEBDN: Where do you perceive ing this kind of cooperation in the room for enhancement of cooper- time to come. ation with Austria?

SEEBDN: Vojvodina has been co- Mirovic: Cooperation with Aus- operating with Styria and since tria is of great importance to us, last year with Lower Austria as primarily economic cooperation, TO well. Are you satisfied with this as well as cooperation in all other cooperation? What are its benefits areas. What we find encouraging 409 MILLION for Vojvodina? is the fact that our mutual trade is

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GROWTH IS NOW A The Government can directly contribute to KEY ISSUE FOR SERBIA the increase of total investment as well, PAVLE PETROVIC by increasing its own President of the Fiscal Council, Republic of Serbia investment in basic infrastructure (roads, erbia successfully imple- oped EU countries. To start catch- railroads, municipal mented a sizeable fiscal ad- ing up with CEE countries, Serbia infrastructure) and justment in the 2015-2017 needs to have a lasting economic investment of public Speriod and avoided a poten- growth that is substantially higher tial crisis – from an enormous fis- than theirs - but this is not hap- enterprises cal deficit in 2014 of 6.4% of GDP, pening. From 2010 to 2018, the a structurally balanced budget was Serbian cumulative growth was achieved in just three years and about 15% and, on average, CEE public debt is now firmly put on countries had doubled this growth a downward path. While restor- (30%), which means that the liv- ing macroeconomic stability was ing standard in Serbia actually an excellent result, many issues lags further and further behind that Serbian economy is facing comparable countries. This very have remained unresolved because same conclusion, with minor dif- the majority of planned reforms ferences, can be generalized to the (including loss-making public en- Western Balkan region as a whole. terprises and SOEs, local govern- It is important to understand that ments, education and healthcare low growth in Serbia (and most CUMULATIVE quality – especially the rule of law can directly contribute to the in- systems, increase in public invest- probably in the region) is not GROWTH and corruption – have deteriorated crease of total investment as well, ments, etc.) have mostly failed. caused by transient factors limit- in the previous four to five years. by increasing its own investment Due to a lack of crucial reforms ed to individual sectors, but by the FROM 2010 TO 2018 While restoring Going forward, it is absolutely in basic infrastructure (roads, rail- in the public sector, fiscal policy fundamental economic and social necessary to lock-in good results roads, municipal infrastructure) is still not fully sustainable, nor is issues: pervasive corruption, gap macroeconomic of the fiscal consolidation of 2015- and investment of public enterpris- it appropriate for boosting insuf- in the rule of law, low level of state stability was an 2017. Maintaining the macroeco- es. Furthermore, it can stimulate ficient economic growth – which and private investments and poor nomic stability is the crucial pre- private investments by improving has been the main structural prob- quality of education. These fac- excellent result, many condition for stronger growth of the currently very poor business lem for almost a decade. tors alone – deficient institutions issues that Serbian the Serbian economy in the future climate in Serbia, specifically con- Serbia ranks at the very bottom and low investment – can explain and, in addition, keeping the low trol of corruption and the rule of with respect to economic devel- why Serbia is currently growing economy is facing have fiscal deficit and a further decrease law, which seems to be the most opment and living standard, when almost 2 percentage points below remained unresolved of still elevated public debt can significant factor that hampers the compared to EU countries. Its its potential: above 3% instead of facilitate raising its current low economic growth at the moment. GDP per capita (in PPP) is half around 5% annually. What is of credit rating. The Government that of Central and Eastern Eu- particular concern is the fact that 15% 30% rope and a mere third of the devel- these indicators of institutional SERBIA CEE

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We are also increasing our financ- through local commercial banks, EIB - RELIABLE PARTNER ing in the region by combining sustaining over 500,000 jobs EU grants with our loans not only across the region. The EIB Group FOR DEVELOPMENT OF WESTERN BALKANS for project financing but also for also supports riskier, innovative much needed project preparation companies. In particular, the EIF and implementation. EUR 4.4 bil- specialises in providing risk finance lion of EIB financing is blended for the benefit of SMEs. In the last with EU grants under the Western two years, the EIF has entered into Alongside Balkan Investment Framework 19 guarantee agreements stimulat- connectivity and (WBIF) to support 74 projects. ing more than EUR 900 million of Alongside connectivity and infra- new SME lending in the Western infrastructure, support structure, support to Small and Balkans. to Small and Medium Medium Size Enterprises (SMEs) As we look ahead, the EIB will is a key part of our business. By further intensify its support to the Size Enterprises (SMEs) providing funding and guarantees region through its Economic Resil- is a key part of our to the local commercial banks, we ience Initiative (ERI), with the ob- business are contributing to local enterpris- jective of addressing in particular es accessing funding under more social and environmental challeng- favourable conditions and com- es. Over the four year period that petitive interest rates with longer started in 2016, ERI will bring the maturities. total mobilisation of investments Since 2009, the EIB provided EUR in the Western Balkans to around 3.3 billion credit lines to SMEs EUR 6 billion. DUBRAVKA NEGRE Head of the Western Balkan Regional Office of the EIB

he EIB Group, consisting improvements in the living stand- of the European Invest- ards. ment bank (EIB) and the Lending is by far our principal TEuropean Investment activity and in the last 10 years, Fund (EIF), is the financing arm of the Bank has financed projects in Lending is by far the European Union. Our exten- the Western Balkans worth EUR our principal activity sive lending, blending and adviso- 8 billion, supporting all major in- ry capacities are at the service of frastructure, as well as small and and in the last 10 years, all EU citizens, as well as citizens medium sized enterprises, indus- the Bank has financed of over 160 countries worldwide try, education, health care services in which we operate. and local authorities. projects in the Western The EIB has been active in the With EUR 2.6 billion of financing Balkans worth EUR 8 Western Balkans since 1977, and provided since 2007 to transport today is one of the largest interna- sector, the EIB is supporting the billion tional financiers in the region. As reconstruction and upgrade of key the EU Bank, we support the West- infrastructure and in particular the ern Balkans in its integration pro- Priority Corridors under the Con- cess with the EU. This is reflected nectivity Agenda (Corridors X in our operations that promote in Serbia and North Macedonia, economic development, transport, Corridor Vc in Bosnia and Herze- energy and digital connectivity, govina). climate change adaptation and

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are becoming a crucial factor that ECONOMIC POLICY SHOULD FOCUS will affect the realization of the projected levels. At the same time, ON INVESTMENT GROWTH ensuring fiscal sustainability and macroeconomic stability remains the main priority. It implies fur- ther reduction of the share of pub- INVESTMENTS lic debt to GDP, maintenance of Serbia, as the largest fiscal deficits at the level up to the average 1.5% of GDP, reduction economy in the Western of external deficits, and more in- Balkans, has a prevailing tensive implementation of struc- tural reforms. influence on the overall Serbia, as the largest economy in performance of the re- the Western Balkans, has a prevail- ing influence on the overall perfor- gion mance of the region. Fiscal sta- bility has been preserved, budget surplus has been recorded for the second consecutive year, and pub- lic debt has been reduced by 8 pp. However, the growth is still slow, unstable and insufficient to reach the average EU standard quickly. ALEKSANDAR VLAHOVIC Hence, the current economic pol- President of the Serbian Association of Economists icy should focus on investment growth. Current total investments ince the outbreak of the ing a structural reform program. account for only 19% of GDP. economic crisis in 2009, In the Western Balkans region the The investment growth should be the major problem for the growth reached the projected level twice as fast, at the rate of 12% SWestern Balkan countries of 3.5% last year, mainly due to and more per year. In other words, It is vital to encourage has been a significant decrease in the acceleration in economic ac- it is vital to encourage domestic FDI and financial capital inflows. tivities in Serbia. The employ- private investments, as well as to domestic private invest- Almost all countries in the region ment rate reached the pre-crisis increase capital budgeting invest- ments, as well as to in- were unprepared to manage the level. Unemployment, especially ments in order for the level of to- economic crisis, burdened by their youth unemployment, along with tal investments to reach 25% of crease capital budgeting own inherent structural problems. unfavorable demographic devel- GDP by 2022. Only then will it be investments in order for In the years of high foreign capi- opment and migration of popu- feasible to achieve the economic tal inflow, these problems were not lation, still pose the biggest prob- growth at the rate of 5% or more the level of total invest- so obvious. Increasing internal and lem, with some significant differ- per year. ments to reach 25% of external deficits were managed ences between the Western Balkan GDP by 2022 with accelerated loans. The shift in countries. Generally speaking, the the economic policy of most coun- mid-term projection of the de- The level of total investments to reach tries in the region occurred only velopment of economic activity 25% of GDP by 2022 after 2014. Nowadays, they are is positive and therefore, its in- basing fiscal consolidation, more crease is expected to be 3.5% and or less successfully, on savings, 3.4% this year and next year, re- while simultaneously implement- spectively. However, external risks

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Integration with the EU is edonia is well capitalized (capital adequacy ra- NORTH MACEDONIA: COMMITMENT TO tio of 16 percent on average), profitable (RoE perceived as the main tool to of 14 percent, Cost to Income of 54 percent), LONG-TERM GROWTH AND PROSPERITY accelerate institutional and struc- and has excess funds (loans to deposit ratio of tural reforms 82 percent), with NPLs at historically the low- est level, 5.1 percent, and among the lowest in the region (only Kosovo has a lower NPL rate: GLIGOR BISHEV PhD 2.5 percent; Serbia 7.8 percent and Albania 9 University Professor and CEO of Sparkasse Bank Macedonia percent). The banking industry has an appro- priate risk appetite, which enabled credit to grow during all periods after the great finan- cial crisis. In 2018 credit growth was 8 percent. erlin Process opened a same goes for FDIs. Net export However, the credit growth was mainly driven new chapter of challenges (a 19-percent increase in 2018) is by loan growth to households, where credit and opportunities for a main driving force of economic risk measured by NPLs is three times lower Western Balkan Coun- growth, which in 2018 was mod- than in the corporate sector. B Supporting economic growth and restructuring tries (Albania, Bosnia and Herze- est, around 2.2 percent. Integra- govina, Kosovo, FYR Macedonia, tion with the EU is perceived as of the economy will require shifting the credit Montenegro and Serbia). Instead the main tool to accelerate institu- growth from household consumption to corpo- of producing history, the region tional and structural reforms. This rate investments. This will require better man- made a choice to produce peace, should enable currently assessed agement of credit risk and better macropruden- growth and prosperity. long-term potential for growth of tial standards prescribed by the Central Bank. After years of strong political ten- around 3.5 percent to increase to In the period of swift convergence towards the sions: 2016-2017, FYR Macedo- around 5 percent. Projections are EU it is highly likely that some sort of risk shar- nia entered into swift and com- that when North Macedonia joins ing between banks and the state or with some prehensive reforms, political sta- EU around 2025-2028, GDP per multilateral institutions like the EBRD will bility and rebound of growth. In capita will be between 45-48 per- be needed. In addition, the economic growth 2018 and beginning of 2019, the cent of the EU average. should rely not only on credit growth, but also disputes with Greece regarding the This will require efficient alloca- on the increase of shareholders’ capital, as well. name issue were solved. In Janu- tion and increase of investments: This will require a transformation of the cur- ary 2019 the Constitution was private and public; foreign and rent big partnership companies into sharehold- amended, and since February 2019 domestic, in order to change the ing companies and subscribing additional cap- the name of the country has be- structure of the economy, make ital. come Republic North Macedonia. it more competitive and boost Better management of credit risk will be sup- In the same month, North Mac- growth. ported by the consolidation process within the edonia, became the 30th NATO Financial sector, especially banks, industry, which is underway. In the period af- country and a process of ratifica- which account for 93 percent of ter the global crisis the number of banks was tion of membership per particular the total financial sector, will play reduced by one third, from 21 to 14 banks. It countries started. There is a high a crucial role in efficient interme- is expected that consolidation will continue in probability that from June 2019, diation and allocation of funds. the future and that the number of banks will be North Macedonia will start acces- Growth will require significant additionally reduced by 20 percent. The cur- sion negotiation with the EU. credit support to the private sector. rent presence of EU-owned banks is also ex- Integration with the EU is opening As Schumpeter noted, credit is not pected to increase further, which will enable big great challenges and opportunities. an explanatory variable in growth companies and big projects to be financed on a The EU has already been the main equation, but without credit you bank group level, where better know-how ex- trading partner for North Mace- cannot buy equipment and be- ists and then the risk will be diversified within donia, accounting for more than come entrepreneur. the Group. 60 percent of foreign trade. The The banking sector in North Mac-

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“We have changed the world so much that scientists say we DAVOS 2019: are in a new geological age: the Anthropocene, the age of humans. What we do now, and in the next few years, will A LOOK INSIDE profoundly affect the next few thousand years.”

f the world was ever a truly unipolar place, that world has ceased to be. If there was a Ipolitical system with absolute sovereignty - at least within the last few decades - its sovereignty no longer exists. As pretentious as it may sound, the world is pro- foundly changing. The technological, political, eco- nomic and societal changes that are underway are not limited to a particular country, industry or is- HRVOJE KRESIC sue. The engagement of all stake- Reporter / Producer holders in sustained dialogue is of N1 Television crucial, as is the imagination to think systemically and beyond short-term institutional and na- tional considerations. These were the organizing princi- ples of the World Economic Fo- Sustainable peace, rum’s Annual Meeting 2019 in reasons: the unprecedented com- the Anthropocene, the age of hu- ations, Johannes Hahn, added in economic and social Davos-Klosters, which convened plexity of the global system; the mans. What we do now, and in the an interview. Sustainable peace, over 3000 participants under the accelerating speed of change next few years, will profoundly af- economic and social progress and progress and theme “Globalization 4.0: Shaping caused by the ongoing Fourth In- fect the next few thousand years.” reconciliation are only possible The debate in Davos reconciliation are only a New Architecture in the Age of dustrial Revolution; the insuffi- The Forum continued diploma- when all six Balkan countries that confirmed once again possible when all six the Fourth Industrial Revolution”. ciency of the steering mechanism cy dialogues aimed at advancing are still not member states have Among them were, however, only for global governance to deal with peace and prosperity efforts on a European perspective, he said, that closer global Balkan countries that three leaders of the Group of Sev- current challenges; and populist other key global fault lines, includ- adding that both those countries collaboration is needed uprisings around the world driv- ing the Western Balkans. NATO and the EU profit from that. are still not member en most industrialized countries: for many Japanese Prime Minister Shinzo en by a broad-based urge to take Secretary General Jens Stolten- But despite many optimistic mes- states have a European Abe, German Chancellor Angela back control of society. berg said that the security situa- sages, the general atmosphere reasons perspective, said Merkel and Italian Premier Gi- Above all, however, is the need tion in the Balkans was a “mixed of this year’s WEF was rather useppe Conte. Donald Trump, to tackle climate change. Or in picture,” as some problems are gloomy: with the global growth Johannes Hahn Theresa May and Emmanuel Ma- the words of Sir David Attenbor- becoming more serious, while pro- slowing down, many CEOs worry cron cancelled their visits not long ough, whose presence dominated gress can be seen regarding other that the political issues - US-China before the kick-off. this year’s Forum: “The Garden of issues. “Either the EU will stabilize trade war and no-deal Brexit being The debate in Davos confirmed Eden is no more. We have changed the Balkans or the Balkans will the biggest of many - have the po- once again that closer global col- the world so much that scientists destabilize the EU”, the Union’s tential to launch the global econo- laboration is needed for many say we are in a new geological age: Commissioner for Neighborhood my towards another crisis. Policy and Enlargement Negoti-

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of the World Trade Organization ments on mutual promotion and DESTINATIONS ON THE RISE – MONTENEGRO 2019 since 2012. Without a doubt, the protection of investments with 23 biggest step forward on our path countries, as well as double taxa- VISION OF MONTENEGRO AS A to obtaining membership in the tion treaties regarding income and associations of the most devel- property with 43 countries. MODERN, OPEN AND DEMOCRATIC SOCIETY oped countries of the world was From 2006 to 2016, which was achieved in June 2017 when we the period largely under the bur- became a NATO member state. den of the global economic crisis MILUTIN SIMOVIC This year we also expect to open and its consequences, Montenegro Deputy Prime Minister for Economic Policy and Financial System of Montenegro the last remaining chapter in the had an average annual growth of EU accession negotiations and to 3.2% and attracted more than 5.5 begin an accelerated process of billion euros of FDIs in the ener- We are actively partici- closing the chapters, in order to gy, tourism, telecommunications, pating and strongly con- create all the prerequisites on our manufacturing industry and finan- tributing to the processes part for becoming the next EU cial sectors. member state. Global economic crisis was inevi- of regional integration, We are actively participating tably reflected on Montenegro as cooperation, stabili- and strongly contributing to the an open economy and investment processes of regional integra- destination, but with a wise state sation, peace-building tion, cooperation, stabilisation, Today, policy and rational approach, and particularly to the peace-building and particular- which, on the one hand, took into ly to the economic development Montenegro is a account the reality at the global economic development processes, improvement of living democratic, level in the post-crisis period, and processes, improvement standards and creation of an at- economically stable through the fiscal consolidation of living standards and tractive investment environment policy, on the other, we have en- in the region of Western Balkans. country and a sured economic and financial sta- creation of an attractive In this regard, we highly value and respected partner in bility, but not to the detriment of investment environment place a special emphasis on the development and quality of life of Western Balkans Initiative, which the international our citizens or to the detriment of in the region of Western has offered a practical and efficient community. those who have invested or plan Balkans model of cooperation between the to invest in Montenegro. On the ince the renewal of its inde- ups and direct foreign investment. countries in our region for the ben- contrary. This is proved by the fact pendence on 21 May 2006, Thanks to our dedicated work, efit of each country individually, that in the last three years we have until today, Montenegro, persistence and unwavering com- for the benefit of all our citizens stepped up the implementation of Sonce the least-developed mitment, especially in the times and of course for the benefit of the capital projects in the field of road Republic of the former Yugosla- and circumstances that were not overall European perspective of infrastructure, tourism and energy, via, has become, according to often favourable for us at the the region. Today, Montenegro is and yet consolidated our financ- all parameters, the most devel- global, regional and local levels, a democratic, economically stable es. Implementation of investment oped Western Balkan economy, a we have made great, let me say country and a respected partner projects in tourism, based on pri- NATO member state and a leader even historic breakthroughs and in the international community. vate capital, such as Porto Mon- in the process of European integra- visible, undeniable results. All rel- Thanks to the Free Trade Agree- tenegro, Luštica Bay, Portonovi, tion in our part of Europe. evant international stakeholders ments with the EU, CEFTA and have continued with a full swing, We have a clear vision of the de- have recognised these results in all EFTA countries, Russia, Ukraine while the state, on its part, acting velopment of our country and areas, from political to economic and Turkey, we have access to together with its partners, intensi- its European perspective. We are and financial. In 2007 we became markets with a total of about 800 fied the construction of the high- committed to creating a modern, a member of the International million consumers. We have signed way from the Port of Bar to the open, democratic and civil soci- Monetary Fund and the World agreements on economic coop- northern border of our country, ety, attractive for business start- Bank. We have been a member eration with 20 countries, agree- with Serbia.

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Implementation of the energy con- er. We are constantly committed eign direct investments and further for a Regional Economic Area of ers, the countries of the Western nectivity project of Montenegro to launching projects that imply economic development we have the six countries of the Western Balkans will be more motivated with Italy has been carried out From 2006 to 2016, opening of new jobs, creating add- adopted another important and Balkans within the CEFTA legal and supported to resolve mutual very successfully by laying a sub- ed value and improving the quality justified decision - on the criteria, framework. misunderstandings and that they marine energy cable, in the total which was the period of life of our citizens. This is also method and procedure of selection Economic stability, progress and will individually make true and big length of 455 kilometres. Testing largely under the burden supported by figures - in 2018, the of persons who may acquire Mon- development are impossible with- breakthrough towards fulfilment of this project of energy intercon- number of employees increased by tenegrin citizenship by admission out political stability of the region. of the European agenda in the nection, which is the first connec- of the global econom- 25,000 in comparison to 2011, for the implementation of a special Therefore, the overcoming of the years to come. Montenegro can tion of such kind in our region ic crisis and its conse- and by 11,000 compared to 2016. investment program of particular decade-long misunderstanding be an example and a motive. We with the European Union began at quences, Montenegro From February 2017 to February importance for the business and between Greece and North Mac- are not those who give praise to the end of last year. This project 2019, the unemployment rate de- economic interest of Montenegro. edonia is an extremely large and Montenegro, we just convey what makes Montenegro one of the key had an average annual clined from 22.46% to 16.61%. We have recognised the global firmly embedded stone that will is constantly being confirmed at all energy hubs. Courage, wisdom, growth of 3.2% and As the Minister of Agriculture and trends, analysed in detail the com- underpin a steadier political and levels and structures in Brussels – determination, knowledge and Rural Development, I will under- parative practice and created a economic architecture of the West- that we are a positive example and hard work always bring benefits. attracted more than 5.5 line results and plans in this field, framework that best suits Monte- ern Balkans. leader in the region. We are willing From the second half of this dec- billion euros of FDIs in which is one of the key pillars for negro and our development needs Montenegro especially welcomes to share our experience and help ade, we have been noticing more the overall economic development and overall goals of economic pol- the accelerated process of integra- our neighbours, because the EU intensified growth, which is one of the energy, tourism, tel- of Montenegro, and the field with icy. The emphasis is placed on two tion of the North Macedonia into membership is a common interest. the largest in Europe at the annu- ecommunications, man- significant opportunities for for- key fields - tourism and agricul- NATO, given the fact that after On the other hand, it is a quite re- al level. Recently, the Government ufacturing industry and eign direct investments. In 2017, ture. Through these two “frames” just over a year and a half since alistic expectation that EU should of Montenegro has adopted a new the European Commission decid- in this programme, we want to value properly and fairly the re- Economic Reform Programme financial sectors ed to assign EU export numbers to contribute to the diversification sults each country individually for the period 2019-2021, as the Montenegrin food producers. Is of our economy. It is important to Economic stability, pro- makes. Montenegro is not ask- most important document in the Montenegro was convinced that there a better confirmation that in point out that the programme is ing for an award or a gift for its economic dialogue with the Eu- the result of wise and hard work this field we have met the demand- created in a way that not a single gress and development achievements, it does not want to ropean Union. This Program is must be noticed. Thus, for exam- ing standards of quality and food part thereof endangers our Euro- are impossible without have a “sale and purchase” rela- also a strategic document for me- ple, the Montenegrin economy in safety, as well as the new technolo- pean path and a quite certain Eu- political stability of the tionship with the EU. The prima- dium-term macroeconomic and 2017 achieved a real GDP growth gies and new knowledge, self-con- ropean perspective. ry purpose of our reform break- fiscal programming, containing a of 4.7%. The result has not lulled trol systems, to the level of full In the previously mentioned Eco- region through, efforts in the aim of structural reform agenda impor- us, but only motivated us to compliance with EU standards? In nomic Reform Programme it is further democratisation, strength- tant for reducing or eliminating achieve more. The growth contin- addition to allowing our products also noted that Montenegro has ening the rule of law, creating po- obstacles to economic growth and ued, and according to preliminary to be exported to the EU market, a very active role in strengthening our accession, we have already litical and economic system based strengthening competitiveness. data, it amounted to 4.5% in the we have significantly increased the regional cooperation, reflected in witnessed the immense benefits of on the respect for the law, creation This document implies that the first quarter, 4.9% in the second competitiveness of our products in the Berlin Process, as an important membership in this security alli- of a free society with equal op- acceleration of economic activity quarter and 5.0% in the third the domestic and regional markets. enhancement of the negotiation ance. I am deeply convinced that, portunities for all, or “European- under the strong influence of the quarter of the 2018. The Government of Montenegro process for the EU membership. It after the elections for the European isation” of our country, is in our investment impetus, which began The fact that Montenegro is cur- recently adopted the “Agri Budget is pointed out that the new man- Parliament, in May this year, our own internal interest. Everything in 2017, led to a stronger growth rently at the level of 46% of the for 2019” with the total amount of ner of communication between European partners will pay even that we do and therefore achieve than expected. average EU quality of life, al- 52.4 million euros, which is 12.4 the region’s leaders has been pro- more attention to the Western Bal- is for the purpose of satisfaction of I should emphasise that such a though, having in mind that some million euros or 31% higher than moted through intensive dialogue kans and be the wind in our sails our citizens and stability and de- growth was “unexpected” for of the current EU members had the previous budget. Our aim is at the highest level, taking place on the path to full-fledged Europe- velopment of our country, and we often overly cautious econom- a much lower rate at the time of to achieve an even more dynamic not only in Brussels and European an Union membership in the near expect from our European friends ic analysts, financial institutions accession, it could make us indo- development of agriculture, which capitals, but also in the countries future. The alternative does not a relationship of partnership and and organisations disinclined and lent, and from our point of view, will be fostered through this year’s of the region. The final, practical exist. The activities in the enlarge- a recognition of our achievements, unprepared to perceive and ac- this is not a satisfactory indicator. stronger investment momentum goal is strengthening regional eco- ment process cannot be reduced with the hope that it will result in knowledge factors that inevitably Nevertheless, this should not de- both in the processing sector and nomic cooperation and implemen- only to rhetoric, on both sides. I the common goal – a full-fledged influence more positive forecasts. motivate us, but rather encourage in the primary production. tation of the Connectivity Agenda believe that through the support of membership of the EU. However, the Government of us to work more and even hard- For the purpose of attracting for- and the Multi-Annual Action Plan relevant international stakehold-

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MONTENEGRO – “HOME“ FOR OVER 120 BUSINESS IDEAS

Investors from over 120 countries have realized their business ideas in Montenegro, which resulted in investments worth over €9 billion since the restoration of the country’s independence

n the last decade, Montenegro has record- the largest volume of foreign trade exchange ed a dynamic growth, which amounted to is realized with the EU and the CEFTA Agree- 4.7% in 2017. In 2018, GDP per capita ment signatories. In the next ten years Iwas estimated at around €7,397, while Tourism is a strategic economic branch, which the revenues generated according to the purchasing power parity it is in recent years has been generating record re- currently at the EU average level of 46%. The sults measured by the number of tourists, over- in tourism are expected growth of the economy is also expected in the night stays and revenues. Montenegro is be- to increase at a rate of medium term, enhanced by the implementa- coming a more attractive destination even for tion of the capital investment projects in the tourists from Western Europe - France, Great 3.9% per year. infrastructure, transport, tourism and energy Britain, Germany and Scandinavia – which is sectors. demonstrated by high growth rates of arrivals Investors from over 120 countries have realized from these countries. According to the esti- their business ideas in Montenegro, which have mates of the World Travel and Tourism Coun- resulted in investments worth over €9 billion cil (WTTC), in the next ten years the revenues since the restoration of the country’s indepen- generated in tourism are expected to increase at dence. The high potential for the FDI inflow, a rate of 3.9% per year. especially in the sectors of tourism, agricul- Within the reform and EU integration pro- ture, energy and manufacturing, is the basis cesses, efforts are being made continually to VLASTIMIR GOLUBOVIC for optimistic expectations even in the upcom- create a more attractive business environment President of the Chamber of Economy ing period. The Montenegrin economy needs through partnership between the state admin- of Montenegro renowned companies, which will valorize its istration and the economy. The NATO mem- potentials and as such represent a generator bership confirmed Montenegro’s aspiration to of economic growth, competitiveness and the share the system of values which is cherished overall progress of the country. by developed European countries such as the 3.9% Montenegro is a member of the World Trade market economy, rule of law, preservation and Organization, while the Free Trade Agree- promotion of human rights and the develop- PER YEAR. ments, signed with the EU, EFTA, CEFTA, ment of democracy. the Russian Federation, Turkey and Ukraine, enable Montenegrin companies to access the market of over 800 million inhabitants. Today,

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KEY ROLE FOR LONG TERM BUSINESS – MEETING THE NEEDS OF THE CUSTOMERS

uroherc Insurance was founded in the year 1992 as the first privately owned Croatian insurance company. The ECompany’s headquarter is located in Zagreb. Its main business operations are con- ducted in the Republic of Croatia and the Re- public of Austria. The Company vision since its beginnings has been to adapt to an ever-changing business environment, outcompete its business compet- itors and to be the leader in innovations, all the while guided by the principles of business excellence and fairness. Consequently, in the year 2017 Euroherc Insur- ance made a historic entrance into the Austrian insurance market as the first, and until today the only, Croatian insurance company present in the Republic of Austria. Since its early years, the Company has been growing rapidly and continuously. In 2018, as well as skilled and professional staff are the the total insurance premium amounted to 170 core of the Company’s business success provid- million EUR. Its market share in the segment ing a stable foundation for continuing business of non-life insurance in the Republic of Croatia growth. reached 16.4%. The Company is at the same The distinctive feature of the Company is in- time the market leader in third-party vehicle Since its early years, the vestment in its own business infrastructure insurance in the Republic of Croatia with the recognizable in numerous prestigious business market share of 27%. Company has been growing premises in the Republic of Croatia as well as As mentioned before, the Company is privately rapidly and continuously. In in the Republic of Austria. The Company thus dr.sc. MLADENKA GRGIC owned with the unique feature of the Compa- 2018, the total insurance declares its intention to permanently provide President of Supervisory Board of ny’s managers actively participating not only insurance services and to continuously offer Euroherc Insurance in its business operations, but also in its share- premium amounted to quality insurance products for its business holder structure. Their number is growing year 170 million EUR partners as well as to present and future pol- by year. This lays foundations for stability and icyholders. growth, bringing long-term business goals of The Company’s customers and meeting their the Company to the forefront of its business needs have always been and will continue to strategy. be the main focus of the Company. Its ramified Today the Company employs more than one sales network, therefore, is not only a prerequi- thousand employees. Its business operations site of the business success of the Company, but are spread across 14 branches in the Republic also an indispensable help to all of its clients of Croatia and 5 main branches in the Repub- in meeting their existential and professional lic of Austria. The well-established organiza- needs. tional structure, the well-known market brand

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MY VISION IS A SMART, GREEN AND CHILDREN’S CITY

SHOWCASING CITIES

BELGRADE MAYOR ZORAN RADOJICIC, LJUBLJANA MAYOR ZORAN JANKOVIC AND ZAGREB MAYOR MILAN BANDIC SHOWCASE THEIR RESPECTIVE CITIES IN THE INTERVIEWS WITH THE BUSINESS LINK MAGAZINE

INTERVIEW: Zoran Radojicic, Mayor of Belgrade, the capital of Serbia

I see Belgrade as a smart city, a green city, a college city. My wish is for Belgrade to also be a children's city, a city of promenades, bicycle paths, a city with green areas”, Zoran Radojicic, the Mayor of Serbian capital Belgrade, told the Business Link Magazine in an interview. “It is not difficult to conclude that my vision of Belgrade is to continue with large infrastructure projects and accelerated development of the city, but with a greater emphasis on green and smart solutions in our capital”, he said.

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SEEBDN: What are your main It is important that we entered Z. Radojicic: Of course they are Vienna and Berlin genuine treasuries of good practic- construction and infrastructure. projects? How do you see the cap- 2019 with a budget which al- an important part of my plans. es in a wide variety of segments. I Berlin is a smart and green city, ital in the three years, and how do locates 40% more funds for in- The transition from the Informa- represent genuine am particularly interested in their which is in line with my vision of you see it in five years? vestments than in 2018. Belgrade tion Age to the Digital Age brings treasuries of good experiences in the areas that I have Belgrade's development, and we is now a city of cranes. We will great changes, with which we have practices in a wide defined as priorities for the devel- are open to cooperation in numer- Z. Radojicic: We work a lot in the build a subway (Belgrade metro), to keep pace. We use high-end opment of Belgrade. Thus, we are ous segments, such as infrastruc- field of ecology, social policy, large the new Sava Bridge, and we will technology and smart solutions variety of segments. I learning from them, and are look- ture projects, environmental and infrastructure projects, and also on reconstruct some of the busiest in various areas, from improving am particularly ing up to them in terms of green social policies. Considering that reducing the emissions of harmful roads. My goal and top priority the communication between the and smart solutions, healthcare more than 50 German companies gases. Preparing our candidacy is to make Belgrade an even better administration and citizens, solv- interested in their system, commitment to academ- operate in Belgrade, we have also for the European Green Capital place to live, and for all its citizens ing municipal problems, reducing experiences in the areas ics and children, and high level learned a lot from Berlin about is a big step towards my vision to feel such improvement. traffic jams... In accordance with of quality of life for all citizens. work, quality, efficiency, and of making Belgrade a healthier my vision of Belgrade as a smart that I have defined as I think that, in order to advance speed. and greener city. As a socially re- and green city, the solutions we priorities for the and preserve the uniqueness of sponsible capital, we think about strive for are ecological in nature. development of Belgrade Belgrade, it is important that we SEEBDN: What is the essence of vulnerable categories, thus we One of the priorities is to perceive do not copy good examples from cooperation with colleagues from have opened the doors of the new waste as a resource, and to use the other cities, but that we fit them Western Balkan countries and Children's Shelter. There are also technology in this direction. We into the framework of our city. where do you see the potential investments in the economy and also plan the placement of dump- Vienna presents a real role model for deepening cooperation? What tourism. We are entering the final sters for primary waste selection, in terms of the quality of life of its needs to happen in order for this stage of preparation for the con- which will be connected with an citizens, the healthcare system, as potential to become a practice? struction of the Belgrade gondola, operator via the software system, well as in terms of clearly defined Who needs to make the first step from the Kalemegdan fortress to which, in this case, is a public util- postulates of smart development and in which direction? Usce, which will be a new tour- ity company "Gradska cistoca". in the field of energy, mobility, ist attraction in the region. As for I would also like to stress that I Z. Radojicic: I see the core of co- projects like Tirsova 2 children’s have signed an agreement with the operation with my counterparts hospital, this is the main reason company "Boos Lighting Group" from Western Balkans countries why I have decided to venture into in January, on the basis of which not only in the fact that our cities politics - I believed that we could we will work on a new concept of are geographically close and that do great things. This project was environmentally-friendly public they face similar challenges, but motivating me personally as a doc- lighting in the Serbian capital in also in that our citizens are of a tor, and it was also an opportunity Preparing our candidacy the future period. similar mentality. I think that the to do something for the common for the European Green first steps have already been made, good, as it shall be the most mod- SEEBDN: How much does the de- because I have established good ern children's hospital in this part Capital is a big step velopment strategy build on expe- and open relations with my coun- of the world. Tiršova 2 is a project towards my vision of riences of Vienna and Berlin, and terparts in the region with whom for many generations of children of other developed European cap- I have met so far. We have agreed and doctors who will succeed us. making Belgrade a ital cities? that it is important to cooperate Belgrade also joins the global fight healthier and greener in the fields of culture, tourism, against diabetes with the "Cities city Z. Radojicic: As much as expert and education, to connect young Changing Diabetes" project in meetings and exchange of opin- people from our countries through alliance with world cities such as ions with my colleagues meant for student exchanges, and to develop Copenhagen, Rome, and Mexico my professional development as a joint projects. At a trilateral meet- City. I will insist on the urban de- SEEBDN: Are the fourth industri- physician, so are the experiences of ing with the Mayor of Zagreb, Mr. velopment of Belgrade, on raising al revolution, i.e. Industry 4.0 and European metropolises important Bandic, and the Mayor of Saraje- the awareness of our population the concept of smart cities a part of to me now as a mayor in terms of vo, Mr. Skaka, we have considered about the problem of diabetes and your plans? Which tangible steps the development of Belgrade. Both connecting our cities through a how to prevent it. have you taken in this direction? cities, Vienna and Berlin represent unique tourist route, so that tour-

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The exchange of experiences with Z. Radojicic: At the moment, Bel- existing open public spaces and cities from the region is very valu- grade sets the foundation for de- ambient units of importance for able, as was shown by the recent veloping its own smart city strate- the identity of the city. talks I have had with the officials gy, which is in line with the current In this sense, exchange with col- of Zagreb, Sarajevo and Podgorica City of Belgrade Development leagues from all the cities of the re- at the Third Forum of Mayors of Strategy by 2021. We are aware of gion is precious to me, especially in Capital Cities of Central and East- this great challenge, and are mak- those segments where other com- ern Europe and China ("16+1" ing important steps towards mak- munities have already pioneered Summit) held a few months ago in ing Belgrade a smart/digital city. some technologically advanced Belgrade. We have also demonstrated this solutions and have achieved signif- In order to achieve the vision of by our active participation at the icant results for their communities. Belgrade as a healthier and green- Smart City Expo World Congress er city, the experiences of both Za- in Barcelona, where we have dis- SEEBDN: How does politics im- greb and Ljubljana, which in 2016 cussed possible solutions to traffic pede or otherwise influence busi- achieved the prestigious title of problems in Belgrade with repre- ness? Which are the political pre- the European Green Capital, have sentatives of other world cities. conditions for closer cooperation? been of great help. The afforesta- There are numerous challenges tion of the area of Belgrade, the in regard to improving the public Z. Radojicic: The main precondi- greening of open public spaces, the transport and traffic and transport tions for any form of cooperation closure of the central city zone for in Belgrade in general. We have are peace and stability. I agreed motor traffic (with achieving com- recently defined several scenarios on this with the mayors of Zagreb promises with residents) are the for the development of the traffic and Sarajevo at a trilateral meeting topics that are ranked very high system, and are actively working held last year, when we reached an on our agenda. Being in the com- on smart solutions in order to re- agreement to continue to direct pany of the award-winning Lju- duce traffic jams that almost every our efforts towards finding solu- bljana, as well as in the company ists who come to one of the capi- Z. Radojicic: From my perspec- citizen is experiencing in the capi- tions that would enable everyone of Stockholm, Hamburg, Copen- tals could extend their stay in oth- tive, a smart city and a digital city tal. Simultaneously with the intro- to live in prosperity in the long run. hagen, Oslo and other green capi- From my perspective, ers as well. It is also important to are inseparable concepts that lead duction of sensors for optimizing With regular meetings and joint tals, would contribute to recogniz- exchange experiences of our cities to the essential goal of our admin- traffic flows, we shall increase the projects, we can intensify and ex- a smart city and a digi- ing Belgrade as a sustainable city, and to learn from the best exam- istration, which is to improve the number of electric buses, build pand our cooperation. Politics run building its own, strong "green" tal city are inseparable ples from the region. In that con- quality of life of our citizens, i.e. new bike paths, promote cycling, by the cities goes beyond the bur- identity. text, I would like to stress my co- to achieve the vision of a healthi- and contribute to the reduction of den of national divisions and intol- concepts that lead to Zagreb and Belgrade have a com- operation with colleague Jankovic, er and greener city. While a smart jams in traffic of motor vehicles erance from a bygone era hauled the essential goal of our mon aspiration to finally achieve with whom I have met several city is addressing the needs of its and pollution. by our peoples, which is often not a dream spanning decades of un- administration, which is times. The experiences of Ljublja- residents by applying increasing- We have also demonstrated our the case with international coop- hindered construction by the river na as the European Green Capital ly innovative solutions to urban commitment by fostering coopera- eration. This gives us more space to improve the quality or rivers, and to implement sig- are significant for Belgrade, which problems, a digital city is focused tion with the City of Vienna, which to focus on tourism, culture, and nificant strategic projects on the of life of our citizens, i.e. now strives to achieve this title in on new technologies by which it has enjoyed the top ranking in the economy. I also consider business shoreline ("Zagreb on the Sava", the forthcoming period. consults, integrates and provides world for many years in terms of as a positive driver of cooperation to achieve the vision of "Belgrade Waterfront") which will services to its citizens. I will try my quality of life, with which we want among the cities, all for the better activate numerous urban, econom- a healthier and greener SEEBDN: Digital cities and digital best to make both of these con- to talk about the innovative con- life of citizens, their economic em- ic and other potentials. city interconnection of cities are top- cepts an integral part of our aspi- cepts that they have applied. Our powerment, and higher incomes. ics that have very often been dis- rations in the field of social policy, current projects and initiatives SEEBDN: What do you expect cussed recently. Which experiences ecology, as well as of large infra- from your colleagues and what are aim towards the development of can you use when we talk about structure projects with which we you doing in this segment? a "green network" to connect the connecting with the capital cities shall solve huge problems of Bel- of ex-Yugoslavia? grade that have lasted for decades.

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SEEBDN: What are your main IMPROVING ENERGY I am convinced that in future Lju- LJUBLJANA VISION 2025 projects? How do you see the cap- EFFICIENCY IN bljana will still be a city following ital in the three years, and how do sustainable development guide- FOR A SUSTAINABLE DEVELOPMENT you see it in five years? lines and that it will remain a safe city, friendly towards everyone, Z. Jankovic: In the past 12 years where diverse people live together we have carried out over 2,000 in harmony and mutual respect. projects in all areas aimed at im- proving the quality of life, and 48 SEEBDN: Are the fourth industri- in this mandate we are continu- MUNICIPAL al revolution, i.e. Industry 4.0 and ing our work with 500 new ones. BUILDINGS the concept of smart cities a part of Currently we are implementing your plans? Which tangible steps the largest environmental project have you taken in this direction? in the country consisting of three parts: the construction of a C0 Z. Jankovic: In this area, as well, connecting canal through Ljublja- we have achieved many ambitious na and two neighbouring munici- goals in Ljubljana, namely, we palities, the upgrade of the central are introducing numerous smart wastewater treatment plant and PRESERVING solutions tailored to the needs and the expansion of the sewage sys- 172,000 capacities of our city. According tem. to the survey titled “Smart cit- TREES When I was first elected mayor the ies – ranking of European medi- connectivity to the sewage system um-sized cities” conducted by the was 68% and at the conclusion of Centre of Regional Science at the the project it is going to be 98%. Vienna University of Technology In addition, we are going to build we were placed at the high 15th 1,500 non-profit apartments, in place among 77 cities compared. the field of culture we are reno- Within the largest public-private vating the former sugar factory SAVING partnership project aimed at im- Cukrarna which is going to be the 1 MILLION proving energy efficiency of build- INTERVIEW: largest exhibition space in this part EUROS PER YEAR ings we have renovated, in coop- Zoran Jankovic, Mayor of Ljubljana, the capital of Slovenia of Europe, we are also going to set eration with the companies Petrol up the new creative centre Center and Resalta, as many as 48 munic- Rog, build a new miniplex as the I am convinced that in ipal buildings and by doing so en- present city cinema is in need of sured energy savings, increased the “We have set out the development of Ljubljana at the beginning of my first future Ljubljana will new premises because of a great share of renewable resources and mandate, in 2007, when we adopted the ambitious Ljubljana Vision 2025. number of visitors. In the area of still be a city following decreased greenhouse gas emis- Serving as proof we have been successful in its implementation are over sports we are going to construct a sustainable develop- sions while preserving as many 60 global awards putting Ljubljana at the very top, with the title European track and field stadium, renovate as 172,000 trees and saving one Green Capital playing a key role”, said Zoran Jankovic, Mayor of Slovenian the Ilirija swimming pool com- ment guidelines and million euros per year; in Octo- capital Ljubljana. He said that the European Commission underlined that plex and build a new indoor pool, that it will remain a safe ber we have signed a contract for a curling hall and a tennis centre. the renovation of additional 11 Ljubljana made the highest number of changes in the right direction in the New construction and renova- city, friendly towards buildings. With Acquis software shortest period of time and that they had been following the sustainable tion works in Ljubljana are also everyone, where diverse we are developing a smart water oriented Ljubljana Vision 2025 which was formed when that title had not planned in the field of healthcare, people live together in management system, and with the yet existed. and we intend to carry on with the renovation and upgrade of the city construction of day centres for the harmony and mutual lighting system we have decreased elderly and the comprehensive ren- respect light pollution and energy usage ovation of the main market.

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by three times. As many as 96 In the Regional Waste Manage- city parking houses, take the fu- opinion is the most beautiful city crossroads with traffic lights and ment Centre Ljubljana - RCERO nicular up to the Ljubljana Castle, in the world, we often host dele- pedestrian crossings in the city are we are processing waste for as visit the city tourist sites and use gations wanting to learn from us. equipped with sensors enabling much as one third of Slovenia, When I was elected If political cooperation the services of the Ljubljana City Experiences of other cities are wel- the operation of light control pro- and Ljubljana is the first and so Library. come but they have to be tailored grammes reactive to traffic, citizens far the only European city in the mayor 12 years ago I between countries is fair, to the needs of our own cities and and visitors can use the PROMin- Zero Waste Europe network. The wished Ljubljana could than business manage- SEEBDN: How much does the de- our citizens. Mere copying will not fo traffic portal providing them National Geographic has recently be a combination of ment in the economic velopment strategy build on expe- bear fruit. A good team, a clear vi- with current traffic information so featured us as one of 25 cities in riences of Vienna and Berlin, and sion as well as perseverance and they can plan their route, they can the world committed to the ze- Vienna’s orderliness and sense is also easier. In of other developed European cap- courage play a key role in imple- take a free ride with 6 Kavalir elec- ro-waste society. Barcelona’s way of life. my opinion, people are ital cities? menting what has been planned. tric vehicles and the Urban electric We have also started develop- train operating in the city centre, ing the RuNE project providing Today I proudly ascer- fed up with political Z. Jankovic: When I was elected SEEBDN: What is the essence of the bicycle rental system BicikeLJ broadband internet access in all tain that Ljubljana is games and strive mayor 12 years ago I wished Lju- cooperation with colleagues from is highly popular, there are over parts of Ljubljana, and citizens bljana could be a combination of Western Balkan countries and 100 charging stations for electric and visitors can use the Urbana unique and that it can towards good relations Vienna’s orderliness and Barcelo- where do you see the potential vehicles on public surfaces avail- smart city card, which has received serve as an example to na’s way of life. Today I proudly for deepening cooperation? What able to users free of charge, and numerous national and interna- many other cities ascertain that Ljubljana is unique needs to happen in order for this in the city administration, public tional awards, to ride the public and that it can serve as an exam- potential to become a practice? institutions and companies we are transport buses operated by LPP, ple to many other cities. Sharing of Who needs to make the first step using over 200 vehicles powered rent bikes in the BicikeLJ system, good practices between cities is de- and in which direction? by compressed natural gas. park on public parking lots and in sired – in Ljubljana, which in my

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Z. Jankovic: We do not have to make any first SEEBDN: How does politics impede or other- steps, namely, during all of my time as mayor wise influence business? Which are the political WE WANT TO PUSH THE BOUNDARIES our cooperation with capital cities of former preconditions for closer cooperation? republics of the common state has been very IN ALL IMPORTANT AREAS good and we have been exchanging experiences Z. Jankovic: If political cooperation between and good practices. Among them with Zagreb, countries is fair, then business management in Belgrade, Sarajevo, Skopje and Podgorica, just the economic sense is also easier. In my opin- to name a few. For example, we are cooper- ion, people are fed up with political games and ating with Zagreb in the cultural field and in strive towards good relations. It happens that the framework of the Eurocities network, and politicians complicate matters too often, while most recently we have been sharing experiences business people only want good cooperation. with Belgrade in the field of providing efficient The economic openness between countries also public transport, waste management, electric effects the development of a country as foreign vehicle rental system and the title European investors arrive, new jobs are created and thus Green Capital. On the topic of digitalisation, the quality of life is improving. For instance, which was in the focus of the Ljubljana Forum last year Mr Miškovic opened the first five star held last year, for instance, we were also hap- hotel in Ljubljana, which is very successful in py to share our experiences and listen to other its operation, and there are plans to open Ikea, cities, as we are all facing more or less the same three new hotels, a commercial centre and a challenges; the aim of any advancement, also new development centre in the Technology technical, is to improve the quality of life of our Park Ljubljana, just to mention a few exam- citizens, and here we are using innovations and ples. following trends.

INTERVIEW: Milan Bandic, Mayor of Zagreb, the capital of Croatia

Milan Bandic, Mayor of the City of Zagreb, says that today, Zagreb is a modern, safe European city, pleasant to live in, a recognisable tourist destination, a city which lives multiethnicity, multi- culturality and multiconfessionality. In an interview with the Business Link Magazine, he says that the vision of the City of Zagreb is the vision of a smart, sustainable and inclusive city and, by their development strategy, they have defined Zagreb as an urban incubator of sustainable concepts, entrepreneurship and new values. “We want to push the boundaries in all important areas of activity through the implementation of an entrepreneurial approach which aims to look for new ideas and create new values”, Bandic said.

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SEEBDN: What are your main projects? How do you see the capital in the three years, and how do you see it in five years?

M. Bandic: In line with the EU policies which promote further strengthening of the roles of cities as drivers of economic development, 2016 saw the creation of the Zagreb Urban Agglomeration. In 2017, the Development Strategy of the Zagreb Urban Agglomeration by 2020, which, among other things, created preconditions for the use of special EU funds through the Integrated Territorial Investments mechanism in the amount of almost 1 billion kuna. Currently, we are focused on the realisation of the Sljeme funicular, which will enable better use of the Medvednica mountain potentials, on We also want to transform the big reconstruction of Novi Zagreb rounda- bout, which for many years has been a bottle- old industrial and SEEBDN: How much does the de- tive to city infrastructure and sus- neck on the way to the broader city centre, and We do not hesitate to commercial buildings and velopment strategy build on expe- tainable development. on projects which should, after remediation of riences of Vienna and Berlin, and Therefore, we continuously ap- take over good the disposal facility used during the construc- areas, and, by attracting new of other developed European cap- ply experiences of our neighbours tion of the latest wastewater purification plant, activities and investments, solutions and good ital cities? and cities from EU member states result in the realisation of the third component guidelines from our create new values while via joint projects within EU pro- of waste management – system of separation M. Bandic: We do not hesitate to grammes, transnational coopera- sister cities which have and recycling in line with European standards. respecting the existing ones take over good solutions and good tion programmes and cross-border We work on the tram connection between Za- gone through some guidelines from our sister cities cooperation programmes. We are greb and Dr Franjo Tudjman Airport, new which have gone through some also happy when other cities learn processes and bridges across the Sava river. processes and experiences before from us as well. When we talk We also want to transform old industrial and experiences before us or us or have moved further. Cities about intercity and international commercial buildings and areas, and, by at- find themselves in front of ever so cooperation and exchange of ex- have moved further. tracting new activities and investments, create complex requirements in the area periences, it has to be mentioned new values while respecting the existing ones of urban planning, traffic infra- that the City of Zagreb takes part Those projects are: Badel block in Kvaternik structure, public transport, water in a series of European and inter- Square, Zagrepcanka, Gredelj and Paromlin and energy supply, sustainable national projects and initiatives. complex, complex of the ex-factory Sljeme in waste management and goods de- We would especially like to point Sesvete, military hospital Vlaška, and a call for livery. This has brought about the out the participation in the crea- expression of interest addressed to the inves- need to develop smart solutions tion of the Urban Agenda which tors in relation to the participation in the de- for the City of Zagreb. We are is a new and innovative working velopment and realisation of the "City within developing our smart concept by method which promotes the co- the City" project has just been issued. The lat- analysing and using the examples operation between member states, ter includes an extraordinarily attractive area of advanced European cities, first cities, the European Commission surrounding the Zagreb Fair of the surface of and foremost Vienna, Berlin, Am- and other participants in order to around one million square metres. These pro- sterdam, Copenhagen etc., whose overcome challenges and encour- jects will further reshape the city. strength and success are based on age growth, innovation and quali- quality long-term decisions rela- ty of life in cities.

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SEEBDN: What is the essence of SEEBDN: Digital cities and dig- We have recognised this as an op- The City of Zagreb has already cooperation with colleagues from ital interconnection of cities are portunity to be better and quicker established a series of e-services. Western Balkan countries and topics that have very often been in our work. During the last six These include registry, cadastre, where do you see the potential discussed recently. Which experi- years, the City of Zagreb has been physical planning and construc- for deepening cooperation? What ences can you use when we talk working on the establishment of tion, City of Zagreb registry office, needs to happen in order for this about connecting with the capital a business process management Moj Zagreb ("My Zagreb") por- potential to become a practice? cities of ex-Yugoslavia? What do system by which the modelling of tal, City of Zagreb Geoportal and Who needs to make the first step you expect from your colleagues business processes as a continu- other services. and in which direction? and what are you doing in this ous activity has been implemented We have also launched a compre- segment? into City administration. By shap- hensive e-Zagreb project whose M. Bandic: Generally, there is no ing services according to users' final objective is to digitalise all alternative to cooperation and M. Bandic: Today, digital inter- requirements and their intercon- City of Zagreb processes. For ex- cooperation with colleagues from connection of cities has become a nection with business processes of ample, last year the process of fil- Western Balkan countries is only reality. This type of transforma- the City administration, the City ing applications for the financing natural. The role of cities, especial- tion of cities transcends geopoliti- of Zagreb has formed a basis for of programmes and projects of as- ly capitals, cannot be replaced and cal boundaries and obstacles in the the digitalisation of processes and sociations was digitalised and the by recognising their importance as exchange of information, technol- creation of quality, transparent, process of digitalisation of a whole primary drivers of development, ogies and knowledge. In today's citizen-oriented, rational, profes- series of services provided by the Politics should create a the European Union, after years globalised world, it is impossible sional, economic and efficient City City was also initiated. Current- of pushing forward development to solve any challenges and make administration. ly, we are focused on the complex favourable framework for based on regions, has finally be- progress by keeping yourself with- process of introducing e-invoicing economic prosperity and sustain- gun to invest into cities and urban in your own borders. into the City of Zagreb due to the development. In the spirit of good application of the directive and able development within and friendly relations with a num- legal framework on electronic in- countries, as well as ber of cities in neighbouring coun- voicing in public procurement, tries, Zagreb will for sure support which have introduced provisions internationally. our neighbours on their way to EU on the obligation of issue and re- accession. ceipt of electronic invoices in pub- SEEBDN: How does politics im- and identify additional potentials. We are happy to share the knowl- lic procurement. pede or otherwise influence busi- Otherwise, politics impedes busi- edge and experiences we have ac- The digitalisation of public admin- ness? Which are the political pre- ness and in the globalised world, quired, we are open to joint pro- istration, which is inevitable and conditions for closer cooperation? business moves to places with bet- jects in all areas and with time, I necessary, will facilitate the digital ter conditions, simpler procedures expect effects to be more and more connection between cities. One M. Bandic: These influences work and more security. We certainly concrete. And yes, in my opinion, can surely recognise the benefits both ways. Politics should create do have room for progress in that thinking about who has made or which such interconnection can a favourable framework for eco- regard, and this has to be under- should make the first step is totally bring, first and foremost through nomic prosperity and sustainable stood both as an opportunity and irrelevant. Every good idea and ini- the exchange of experiences and development within countries, as a challenge. tiative which can bring benefits for good solutions, i.e. examples of well as internationally. If there We need even more initiative, trust, all parties involved, for concrete good practices. is understanding of this complex courage and concrete projects be- people in concrete countries and Experience teaches us that cities relationship, if there is awareness cause, when you have a common cities will be welcomed in every can always learn from one anoth- of the strategic interest for build- goal, a common interest, potential community. It's on us to deepen er, regardless of their size and level ing good neighbourly relations on obstacles are easier to overcome. dialogue, understanding and tol- In today's globalised world, it is impossible of development. Someone is al- a sound basis, for interconnection As far as cities are concerned, I erance and therefore promote val- to solve any challenges and make progress by ways better in some segments and and cooperation which can have think we can help here and pro- ues which push us forward, at the keeping yourself within your own borders. this has to be recognised as an op- synergistic effects, then we have mote cooperation in this region. I cultural, economic and every other portunity for learning and easier politics or policies which, by tak- know that my colleagues, mayors, level. solution of challenges faced by all ing account of the general econom- also share these positions. of us, which are often very similar. ic interest, broaden possibilities

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By establishing an efficient and Last year, the export of ICT ser- EXPORT OF modern E-Government system, vices exceeded €1.1 billion, with a ICT SERVICES which is to be implemented profes- large surplus of over €600 million, IN 2018. DIGITAL sionally by the newly established which makes up more than a half Office, the Government of Serbia of the total surplus Serbia achieved TRANSFORMATION presented its strong commitment in the export of services. to educational reforms. Informa- With digitization set as one of the FOR MORE tion Technologies (IT) became priorities of the Government of the a mandatory subject in primary Republic of Serbia, digital trans- EFFICIENT SOCIETY schools, as of the fifth grade. At the formation has begun to penetrate same time, a pilot project for the all pores of our society, leading to introduction of digital educational fundamental changes reflected in materials into 2,000 "digital class- the emergence of an efficient, eco- EXCEEDED rooms" was implemented, with nomical and transparent public €1.1 BILLION investments in full digitization of administration. igitization of the state administra- textbooks and the introduction of tion and the improved provision a 30Mbps broadband internet in of services to citizens, positioned the first 500 schools will contin- Dthemselves as some of the key pri- ue this year. The number of spe- The office launched several complex orities of the Government of Serbia and Prime cialized IT departments in high information systems that have, already in Minister Ana Brnabic. Therefore, the Office schools increased this school year for Information Technologies and E-Govern- by almost five times compared to the first year of their implementation, ment was established, with the main task of 2017, to a total of 44 in 36 high enabled tens of millions of electronic consolidating state IT resources, ensuring the schools throughout Serbia. The connection of various information systems, capacities of technical faculties services and providing strong support and foundation have been increased to allow 20% MIHAILO JOVANOVIC for the development of Serbia's E-Government more students to enroll than two Director at Office for Information Tech- services. years ago. The third round of IT nologies and E-Government The Office deals with the development and im- reskilling program is in progress, plementation of standards in the introduction Government of the Republic of Serbia enabling those who are not in the of information and communication technolo- IT profession to become IT junior gies in state administration bodies and govern- developers, in a maximum of one ment services, while providing support in the year, through intensive education. application of information and communication Digital transformation brings a The Serbian government technologies in state administration bodies fundamental change in all spheres recognized the potential of the IT and government services, through the design, of human society, prompted by development, construction, maintenance and the use of information technolo- industry and took concrete steps improvement of the computer network of Re- gies. The Serbian government rec- to ensure its additional growth public authorities. The office launched several ognized the potential of the IT in- complex information systems that have, al- dustry and took concrete steps to ready in the first year of their implementation, ensure its additional growth and enabled tens of millions of electronic services provide a new vision of Serbia's in- and saved citizens millions of hours of go- novation-based development. The ing from counter to counter: E-ZUP, E-Baby, Serbian government has set aside E-Kindergarten, E-Participation, vehicle regis- around €100 million for invest- tration, traffic examination, Local Tax Admin- ments in infrastructure in order to istration, etc., while many new projects have provide a better environment for been planned and prepared for launch. startups, innovative companies and research and development.

50 BUSINESS LINK BUSINESS LINK 51 BUSINESS LINK BUSINESS LINK "EYES AND EARS" FOR AUSTRIAN COMPANIES IN THE WORLD

DVANTAGEAUSTRIA Dedicated innovation events, is the international In- such as learning journeys, con- novation Agency of the ferences and workshops with AAustrian Federal Eco- international researchers, allow nomic Chamber. Its mission is to Austrian companies to learn and identify trends and know-how all experience first hand the latest over the world and to bring this trends and technologies. knowlege to Austrian businesses as The Austrian Start Up communi- well as other institutions. Further- ty is of particular interest for AD- more, ADVANTAGEAUSTRIA VANTAGEAUSTRIA. Various supports Austrian companies to initiatives (such as GO Silicon market their innovations abroad. Valley, GO Tel Aviv, GO Hong- MICHAEL SCHERZ PhD kong) support Austrian Start Ups Head of Innovation One main pillar of the inno- searching for customers and in- vation activities of ADVAN- AUSSENWIRTSCHAFT AUSTRIA vestors all over the world. TAGEAUSTRIA are cooperations ADVANTAGEAUSTRIA also with world renowned universities, tracks international trends and such as Stanford, MIT, NTU Sin- technologies and provides im- gapore. The cooperation agree- pulses and ideas from all over the ments provide Austrian businesses world to Austrian companies in a with access to the international systematic way. networks and research of the part- ner institutions.

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AHEAD OF THE CURVE – AND HOW LANCOM INTENDS TO STAY THERE

ince 1989, LANCom has been one of the most prospective IT companies in the region of Central and Eastern Eu- rope - firstly in Yugoslavia, then in Slo- MIHA JURGEC S venia. Today, it employs 55 people and offers a Co-owner and CEO of LANCom diverse hardware and software portfolio. LANCom advises, plans, builds and maintains IT solutions for some of the biggest companies in Slovenia, among them the Post of Slovenia, the National Radio & TV and the Slovenian Railways. Since the IT industry is “fluid” and full of chal- cesses. LANCom would establish its regional lenges, constant development and progress are presence with real-time Passenger Information If your competition is too a must. For more than 20 years, LANCom has System software, which was initially present primarily been known only as a system inte- in the Slovenian Railways and then, through a similar to you, then you know grator, working with brands like HP, Lenovo, network of partners, it was expanded to Bosnia you have to take a turn IBM and Hitachi. In 1999, it decided to add and Herzegovina, FYR of Macedonia, Turkey, a software section to its portfolio, specifically Russia and Ethiopia. Now, they are trying their somewhere and offer the ERP (Enterprise Resource Planning), which hand in rolling stock management, having just something different was a good basis for what was to come. signed their first contract for the solution. I inherited LANCom in 2013, and I was not If your competition is too similar to you, then It is my dream that LANCom slowed down for a minute. When I came into you know you have to take a turn somewhere the company from a completely different me- and offer something different, and we hope to would become present globally. dia background, I was an outsider who knew have found that again with a niche system in Otherwise, what’s the point? little about IT. Therefore, I could be completely Rolling Stock Management. objective about where we were and what we It is my dream that LANCom would become could yet achieve. present globally. Otherwise, what’s the point? Our core hardware team has always been do- While we are happy with local impact, getting ing a fantastic work. But we also realized that to know different cultures, places and people, having our own software would have the big- combined with business, would be something gest added value and building an ambitious de- just perfect to me. But knowing we have a good velopment team was helpful, too. strategy makes the entire team stronger and What was to follow was a string of project suc- more agile.

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When you are curious, you like new technolo- gies, you have a passion for a good design and you are willing to take chances, it all comes to- INNOVATION gether perfectly. I had started with a team of enthusiasts and professionals, gathered around AND HIGH the same idea, driven by the same interest. This has resulted in hundreds of finished projects in the areas of business, medicine, pharmaceuti- TECHNOLOGY cals, sports, industry and public lighting. AS A BUSINESS MODEL I am particularly proud of twenty international awards we have won for industrial design, in- cluding graphic design, communication design, When you are curious, etc. We create and consume design, we use ar- chitecture for branding, but also provide tools you like new to architects for their work. This is a symbiosis technologies, you have of mutual understanding and teamwork. a passion for a good design and you are It is very exciting to witness the creation and launch of a new product, and even more excit- willing to take ing to experience a football match on a stadium chances, it all comes where the lighting design, adjustment, release together perfectly. and lighting equipment, software included, were done by your own company, and that this stadium is one of the first to feature LED light- ing with enormous energy savings! This is a highly motivating factor not only for me as the company owner, but it also for our employees, especially the ones who are football fans. DARKO BUDEC Founder and President of BUCK The company is strategically located on three e are introducing BUCK, an addresses, with production and R&D facilities award-winning lighting pro- in Belgrade, Serbia, an office in Frankfurt am ducer that boasts 27 years of Main, Germany, and a representative office in business experience. If you are a Moscow, Russia. W The market is global, so by having three offices, lighting professional and you work with office, industrial, medical, sport and public lighting, we are able to cover the EU, CIS region and you must have heard about us. Otherwise, we other markets. In essence, we are covering most are ‘just’ a company producing excellent light of the world. We have so far exported to 46 fixtures, keeping a low profile. different countries, which is almost one-third Regarding BUCK’s achievements, an interest- of the whole world. You can do that only by ing fact is that I was the first national winner having a great organization behind you: from of the EY Entrepreneur of the Year award in R&D, production, sale, to logistics and post- 2012. This is how I explain the philosophy be- sales services. And this is what we provide. hind our success story:

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LOVCEN BANK Welcome to the Hotel group VISION FOR THE FUTURE "BUDVANSKA RIVIJERA" AT THE ADRIATIC COST OF MONTENEGRO he local team, supported opportunities, our market is also by German DEG (KfW becoming more advanced and is Group) as a strategic making an increasing pressure on Tpartner, came up with traditional service providers to be- the idea of establishing Lovcen come more digitalized. For many Bank. We jointly brought in fresh banks, such transformation will capital, local and international mean a change in the existing busi- know-how and have already im- ALEKSANDRA POPOVIC ness partnership model and banks proved the lives of many Monte- will need to adapt to new reality. Chairperson of the Board of negrin companies and households. Lovcen Bank’s clients will remain Directors of Lovcen bank Development is the very sense of in the centre of our reality. The the existence of this team - fur- bank will continuously follow the ther development of the Bank and clients’ needs and will continue to Montenegro. accelerate its investments in inno- Today, after only four years of op- vation in order to keep up with eration, the Bank is facing many global trends. Recognized Mon- challenges of the future. Digita- tenegrin openness and profession- lization is here and everywhere Lovcen Bank’s clients alism with Lovcen Bank ready to around. The global banking sec- invest in the development of the will remain in the tor is becoming more strategically Montenegrin economy will create centre of our reality. focused and technologically ad- new opportunities for our clients vanced to respond to increasing – winning of new and stronger po- clients’ expectations. sitions in the European and world udvanska Rivijera Hotel Apart from the above, the hotel investing into the quality thereof We, in Lovcen Bank, think about markets and making it possible for Group, is the major tour- group also owns Hotel Sveti Ste- have resulted in numerous interna- the future, about digitalizing core Montenegrin brands and innova- ism company in Monte- fan and Hotel Milocer, subject to tional and national awards to Bud- business processes and internal tions to find their place in Vienna, Bnegro. It’s the long and thirty-year lease by the Adriatic vanska Rivijera Hotel Group and HR processes in order to be better Berlin, Frankfurt, Rome, Paris, rich history of providing hospital- Properties company and the glob- in the employees there of, having prepared for the future. While new London, etc. ity services what makes the image ally well known brand of Aman won numerous prizes at vocation- technological developments and of ’’ Budvanska Rivijera’’ Hotel Resorts. al skills competitions. big financial players bring great Group recognised in the tourism During the long period of its ex- Breathtaking nature, supreme ser- market of Europe. Budvanska istance, by holding the step with vice, rich and imaginative cuisine, Rivijera Hotel Group operates 5 global trends, the Hotel group friendly words by hosts and the hotels and over 3,800 beds: Slov- “Budvanska rivijera” constantly abundance of culture and enter- enska plaža Resort 3+ and 4*, the invests significant funds in order to tainment events make a long-term Aleksandar Hotel 4*, the Palas raise the quality of the hotel facili- basis for successful business oper- Hotel 4 plus*, Hotel Castellastva ties and services, which ultimately ations of the Hotel Group. 4*, and Hotel Mogren 3 plus *. produces outstanding operating Enjoy the comfort and various of- In addition to the supreme service, results, a good image and, above fer in our hotels. the exquisite location of these ho- all, satisfied customers and guests. tels – in the immediate vicinity of Decades of presence in the tour- www.hgbudvanskarivijera.com sandy beaches – makes the hotels ism market, a continuous work [email protected] especially attractive. on hotel category upgrades and 0038233402456

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WHO WE ARE AND WHAT WE DO?

The Southeast European Business Develop- We are offering advertising opportunities in ment Network (SEEBDN) is an independent the region, as well as in the EU and the inter- business association of prominent managers, national market, mainly through the Business enterpeneurs and diplomats from the countries Link magazine, and organization of occasional of Southeast Europe, Germany and Austria. We meetings for business people from the SEE and are a not-for-profit association (eingetragener the EU in order to connect them with compa- Verein) based in Vienna. nies interested in business partnerships.

The SEEBDN aims to enhance international Our organization would mainly focus on busi- business operations of SEE economies, particu- ness activities of small and medium-sized enter- larly with the EU market, focusing particular- prises, modern technology transfer, know-how, ly on developing new business networks and and would also stimulate the use of digitaliza- stimulating business operations of small and tion and enhanced activities towards develop- medium-sized enterprises (SMEs) on external ing a business network aimed at linking SEE markets, but we are not neglecting large com- countries with interested companies in the EU. panies either. The SEEBDN shall provide additional financial In this process, the SEEBDN will seek to sup- resources from EU funds, funds of EU member port inclusion of SEE economies in European states and other sources. Provision of regular Commission’s development projects, as well online access to programs of support to SMEs, as in national projects of EU members states, which are offered by the EU or state and busi- aimed at boosting foreign economic ties. ness agencies from the region and the EU (ten- ders, other calls for proposals). For the benefit of its members, the SEEBDN will use different resources. The SEEBDN shall If you wish to join our association and use all seek to link business people, scientists, politi- business opportunities that we can offer to our cians and other stakeholders in European and members, for more information please visit our regional processes of importance for the SEE official website: www.seebdn.eu. economies. We shall also strengthen the flow of reliable, topical, economic, financial, busi- ness and political information and analyses of importance for the SEE region.

CONTACT US WEBSITE: www.seebdn.eu ADDRESS: Krottenbachstraße 151/3 A-1190, Vienna TEL: +43 1 4780080 E-MAIL: [email protected]

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