foreign investors council in serbia 2014

2014/15 FOREIGN INVESTORS COUNCIL IN SERBIA 1

2014/15

FOREIGN INVESTORS

COUNCIL in Serbia

GUIDE TO

2 FOREIGN INVESTORS COUNCIL IN SERBIA 2014/15


EDITORTanja Jakobi

ART DIRECTORIlija Petrović, [email protected]

PUBLICATION MANAGER Tanja Banković, [email protected]

SALES DIRECTORMelita Andrejević, [email protected]

PROJECT MANAGERSBiljana Dević, [email protected] Novaković, [email protected] Krsmanović, [email protected]

BUSINESS SECRETARYNataša Nešić, [email protected]

WITH SPECIAL THANKS TOAna Firtel, FIC Executive DirectorMilica Ðorđević, FIC Communications Officer Koviljka Mladenović, FIC Office Assistant

PHOTOGRAPHYZoran Petrović, Časlav Vukojičić

TRANSLATIONSMark R. Pullen Snežana Bjelotomić

PROOFREADINGMark R. Pullen

EXECUTIVE DIRECTORRuža Ristanović, [email protected]

GENERAL MANAGERIvan Novčić, [email protected]

FINANCIAL DIRECTORAna Besedić, [email protected]

PRINTINGRotografika d.o.o.Segedinski put 72, Subotica

FOREIGN INVESTOR COUNCIL IN SERBIA 2014/15

PUBLISHERalliance international media in collaboration with the Foreign Investors Council of Serbia

Makenzijeva 67, 11000 Belgrade, SerbiaTel: +(381 11) 2450 508Fax: +(381 11) 2450 122E-mail: [email protected] no: 1451-7833All rights reservedalliance international media 2014.

6 THAT WHICH IS TOUGH, DON’T PUT OFF FOR TOMORROW DR MIHAILO CRNOBRNJA Professor at the Faculty of Economics, Finance and Administration

8 IMPROVING CONFIDENCE IN THE FUTURE

FREDERIC COIN FIC President and Executive Board President at Societe Generale Bank Serbia

14 PERMITS WILL NO LONGER BE A PROBLEM

PROF. DR ZORANA MIHAJLOVIĆ Deputy Prime Minister and Minister of Construction, Transport and Infrastructure

18 LEVELLING THE PLAYING FIELD

OVE FREDHEIM FIC Vice President and CEO of Telenor Serbia

22 OPEN TO THE SUGGESTIONS OF EMPLOYERS

ALEKSANDAR VULIN, Serbian Minister of Labour, Employment, Veterans and Social Affairs

26 NO GOOD LAW WITHOUT PROPER IMPLEMENTATION

SRĐAN LAZOVIĆ Vice President of the Foreign Investors Council, Corporate and Regulatory Affairs Director for the CEFTA region and Bulgaria at British American Tobacco SEE d.o.o.

30 WE’RE AWARE OF THE CHALLENGES

JORGOVANKA TABAKOVIĆ Governor of the National Bank of Serbia

34 FFISCAL CONSOLIDATION IS MORE IMPORTANT THAN EVER TONY VERHEIJEN World Bank Country Manager for Serbia

38 BETTER LEGISLATION, MORE INVESTORS MIKE FALKE Head of GIZ Legal and Judicial Reform Programme in Serbia

40 TOO LONG WAITING FOR PERMITS MAKES INVESTMENT POINTLESS DEJAN JEREMIĆ Executive Vice President of Operations at Delta Holding

42 ACCOUNTABLE TO NATURE AND SELF VUJADIN ŠĆEKIĆ General director of Jugo-Impex

48 BANKING IS FIELD WORK SVETLANA TOLMAČEVA DINGARAC President of the Executive Board of ProCredit Bank

50 HEALTH IS OUR MISSION ANA GOVEDARICA CEO of Roche d.o.o. Serbia

52 WE SUPPORT THE GOVERNMENT IN FIGHTING THE GREY EECONOMY

GORAN PEKEZ, President of the Anti-Illicit Trade Committee of the Foreign Investors Council (Japan Tobacco International)

53 INVESTING IN FUTURE PROGRESS KAROLY ECKER, Managing director Tebodin Hungary Kft. & Tebodin d.o.o. (Serbia)

54 NO COMPETITIVENESS WITHOUT MORE PREDICTABLE ENVIRONMENT MILICA STEFANOVIĆ President of the Food and Agriculture Committee of the Foreign Investors Council (Coca-Cola Company-Barlan S & M Ltd.)

56 NEW LABOUR LAW WILL OPEN THE POSSIBILITY FOR BETTER EMPLOYMENT DEJAN JEČMENICA President of the Human Resources Committee of the Foreign Investors Council (Wiener Städtische osiguranje a.d.o. Belgrade)

57 LAWS SHOULD NOT CONTRADICT EACH OTHER DARKO SPASIĆ, Managing Partner, Partnership law society Spasic & Partners

58 LEASING COULD FUEL AGRICULTURE GROWTH CHRISTOPH LEITNER President of the Leasing and Insurance Committee of the Foreign Investors Council (VB Leasing d.o.o. Beograd)

59 IN CRISIS QUALITY IS RECOGNISED

NEBOJŠA JANIĆIJEVIĆ CEO and President of the Executive Board of Intesa Leasing Belgrade Beograd

60 LAWS SHOULD BE ACCOMPANIED BY HIGH-QUALITY BYLAWS RASTKO MALIŠIĆ, President of the Legal Committee of the Foreign Investors Council (Marić, Malisić & Dostanić o.a.d.)

61 RELIABLE PARTNER TO EXPORTERS DEJAN VUKOTIĆ, Director of the Agency for the Insuring and Financing of Exports (AOFI)

62 BETTER A TESTED SOLUTION THAN A HASTY ONE NEBOJŠA NEŠOVANOVIĆ, President of the Real Estate Committee of the Foreign Investors Council (Jones Lang LaSalle d.o.o. Belgrade)

63 WE NEED TRUE COOPERATIVES RONAN CONROY General Director BPI d.o.o., Agri Business Partner d.o.o

64 ENSURING THE PREDICTABILITY OF THE BUSINESS ENVIRONMENT IS NECESSARY BILJANA BUJIĆ Vice President and Acting President of the Taxation Committee of the Foreign Investors Council (KPMG d.o.o.)

65 SUCCESSFUL, DESPITE EVERYTHING

RITA LOZINSKY CEO and director general of ALUMIL YU INDUSTRY AD

66 E-GOVERNMENT KEY TO REFORMING SERBIA'S STATE ADMINISTRATION ZDRAVKO DRČELIĆ President of the Telecommunications and IT Committee of the Foreign Investors Council (Hewlett Packard d.o.o.)

68 BETTER QUALITY DIALOGUE MEANS BETTER LEGAL SOLUTIONS ANA FIRTEL Executive Director of the Foreign Investors Council

2014/15

FOREIGN INVESTORS

COUNCIL in Serbia

GUIDE TO


hing projects are good indications. Furthermore, the process of harmonising legislation with that of the EU will certainly bring some better solutions, especially for business leaders.

Also on the list is reducing the expenditure side of the budget. That will be a crucial battle. Not only because of the announced reductions in pensions and wages, but rather also because of the denial of support to enterprises that will have to be shut down, and there are many. Apart from a few exceptions, in a market economy enterprises must be left to the whims of the market and not the state budget. Social policy is not led by artificially propped up companies.

On the side of curbing expenditure, it would be good to introduce more social justice in tax abstraction and reducing salaries and pensions. This measure would probably make the bitter pill a little easier to swallow. On the side of stimulating production and employment, sectors and activities where we

have, or could have, a comparative advantage should be encouraged. It makes no sense to encourage employment among the "econo-mically disabled" companies that have been losers for decades and "feed" off the budget.

In addition to repairing the business and investment climate, which will encourage both foreign and domestic investment, there will have to be a con-tinuation of the search for potential investors in Serbia and the promotion of comparative advantages. And that should be done on all sides the world. BRIKS, for example, is taking all places on that global scale and our "breakthrough" in this group is rela-tively symbolic.

Serbia’s strongest current political party won the last elections with the slogan "Our strength...". In order to achieve their pre-ele-ction promises, they will really have to act decisively, quickly and with all their strength. Otherwise the agony will continue. ■

The next two years will be difficult, extremely difficult. The problems faced by the Serbian economy and the Serbian state are complex and multiple. The big pro-blem is that for the two main ills - unemployment on

the one hand and fiscal debt and deficit on the other – the me-dicines are diametrically opposed! The recommended remedy for addressing the fiscal deficit and external debt is savings and spending cuts. The remedy for increasing employment is increasing spending, especially investment. An example of the connectedness between desired and undesired effects: the pro-posed reduction in salaries and pensions, as part of fiscal con-solidation, reduces purchasing power, thus demand for goods which, if there is no export as compensation, reduces producti-on and leads to redundancies. In addition to this, it also reduces the revenue side of the budget due to lower taxes, particularly VAT. Another example: the interest rate is among the highest in Europe. This encourages savings, but discourages the investments necessary for growth, develop-ment and employment.

In order for the list of challen-ges to be complete, mention must be made of the stagnation of the European economy, which more than half of Serbian exports head, and in the CEFTA countries, where an important segment of our exports also go. There is also a very tenuous situation in Ukraine and the possibility of imposing sanctions on Serbian export or import, by either one side or the other.

Obviously, it is not and will not be easy for economic policy makers. That carried out to date suggests the possibility that the mentioned problems will be solved in due course. This star-ted with serious work to create a better business environment. The new labour law, bankruptcy law, revised law on privatisa-tion, reducing the procedure for opening companies and launc-

That Which is Tough,Don’t Put off for Tomorrow

COMMENT VIEW TO 2014/15

DR MIHAILO CRNOBRNJA

Professor at the Faculty of Economics, Finance and Administration

Ahead of the government is a difficult task of combining the incompatible – introducing tough austerity measures and stimulating economic growth and employment. This first part will be a crucial test in an area which the government has not yet ventured in to, while on the latter positive steps have already been made in the regulation of the business environment

Serbia’s strongest current political party won the last elections with the slogan "Our strength...". And that is the only way to realise the results it promised


Foreign Investors Council President Frederic Coin says the FIC fully supports these measures. However, the council is keen to stress that the su-ccess of any new reforms is dependent on how the government secures their implementation from top to bottom.

► How would you rate the investment environ-ment in Serbia today?

- If you look at the situation as of today, it is obvious that there is a lot to do to improve the overall economic environment. We at the FIC are not the only ones to say it: if you look at World Bank Doing Business report, Serbia’s ranking

is still far from the level we should be expecting. This stems from the long-term situation in Serbia and there is much to do to improve the overall le-

With the new Serbian government ha-ving secured strong political backing in parliament, investor expectations – not to mention those of citizens – are

equal to the support enjoyed by the leading coali-tion party at the election. Prime Minister Aleksandar Vučić and his cabinet have announced bold reforms in line with FIC recom-mendations. Among the measu-res proposed are plans to cut the budget deficit and public debt, with the aim of bringing about macroeconomic sta-bility and predictability, and a package of laws desi-gned to secure a level playing field for businesses.

For years the FIC has been advocating a number of reforms to push Serbia

in a more business-friendly direction. With an unprecedented parliamentary

majority, the new government has the opportunity to make good on its

earlier promises to current and would-be investors. But above everything,

consistency of implementation is vital

Improving Confidence in the Future

INTERVIEW

FREDERIC COIN

FIC President and Executive Board President at Societe Generale Bank Serbia

For businesses and people, the day-to-day reality of the implementation

of laws is what counts


► How much progress has been made in harmo-nising Serbian legislation with that of the EU?- In terms of EU harmonisation work done, for a certain period of time we have already been mo-ving towards convergence. Of course, there are a certain amount of things to do, but the key here is

not only harmonisation, but more the reality of implementation. We often see cases in which laws are largely harmonised but ultimately their real implementation is far from the spirit of the law. For busi-nesses and people, the day-to-day reality of the implementation of these laws is what counts.

► The FIC has underlined macro-economic stability as one of its priorities. What are the prospe-cts for maintaining such stabili-ty in the current environment?- Macroeconomic stability is im-portant for investors because it leads to predictability – and this is a magic word in the world of busi-ness because any kind of private business aims to plan its activities, revenues etc. ahead of new inves-tments, which requires predicta-

bility. Predictability is knowing where to go, and knowing where to go means you can anticipate and plan correctly. So macroeconomic stability is vital.

To help ensure long-term macro stability, the FIC has been pointing to a certain number of re-forms for a while. Education, health, pensions, and I would add a judicial system that is not working properly – these are key reforms.

Of course in the short term the rising public de-ficit and public debt is not sustainable. Unfortuna-tely in recent years we have seen what can happen to countries that are unsustainable on that level. The situation in terms of debt is not so dangerous today, but the trend is an issue – and for a country that is relatively small, and with Serbia’s standard of living, and let’s say the level of development, the markets will not accept the same levels of indebted-ness as they will in big countries.

We cannot go to that level; we need to show

gal framework, but the implementation is really the key. Better implementation of laws means bylaws according to the spirit of the main laws; it means in-terpretation of all laws and bylaws being consistent and, once again, according to the spirit of the laws; and it means public administration that is efficient and managed properly.

In Serbia the public sector’s share of the economy is extremely high compared with the rest of the region, and this is a key point also. For a long time now we have been advocating a level playing field, me-aning the same rules for everybody, both public and private companies.

There are many other things the FIC is advocating, but these two are the main ones.

► It’s been four months since the formation of the government. What do you think of the work the government has done so far and the results accomplished?- Four months is both a long and short period when it comes to a new government. In between we have had the floods, which were a terri-ble issue, of course. That said, there is a strong political majority in the parliament, so of course people’s and investors’ expectations are equal to the size of that political majority – we expect a lot.

The new government and prime minister have commented a lot on their desire for reform. Since the election things have been going in a direction the FIC has been advocating for. We already have the first reform package adopted by the National Assembly and that is a big step forward. The amen-ded Labour Law endorses 65% of FIC White Book recommendations and we expect it will lead to better protection of rights for both employers and employees, as well as bringing the Serbian labour market closer to modern global standards and pra-ctices. It is also very important that the government has continued in that direction and adopted new laws on bankruptcy and privatisation. Now, of cour-se, we will be vigilant about the implementation, because for us this really is key.

The FIC is advocating consistent implementation of laws and bylaws and the same rules for both public

and private companies.

We already have the first reform package adopted by the National

Assembly and that is a big step forward.

Macroeconomic stability is important for investors because it leads to

predictability, meaning businesses can plan ahead of new investments.

CONSISTENCY LAWS STABILITY

The debt situation is not so dangerous today, but what represents a problem is its

growth tendency


► How does the FIC view the progress made in creating a responsible and efficient public ad-ministration?- The fact the deputy prime minister is working on that is a good sign of the new government’s willin-gness to address this important issue. Making these changes is a difficult task, and the public admini-stration, like all institutions, is trying to protect its power. So you need to have the political willingness and courage to address this. There are some appro-aches used in private companies that can be applied to public administration. To have objective targets that are assessed and followed up are natural for me, but difficult to apply in the public sector – and not just in Serbia.

► Are the proposed measures to curb the grey economy enough of a step in the right direction and what are your recommendations to the go-vernment in this regard?- I think this problem is easier to address compared to previous mentioned. The measures the govern-ment is starting to take by redirecting some of the Ministry of Finance workforce from one sector and put in controls is definitely a good move. Of course, control is not enough, because in order to have good control, you need to apply clear rules. These two things should work in parallel, but I think enforcing control is a good move.

It is important for the government to work on rules that are transparent, clear and without too

much space in terms of admini-strative interpretation. Only then can you have efficient controls.

► Last year the FIC praised the progress made regarding chan-ges to the tax laws. How do you view these changes from to-day’s perspective?

- In terms of the legal aspect, tax laws have been more or less harmonised with European laws. From our point of view it is not so much the laws them-selves or the framework itself that is an issue, but again the way it is interpreted and implemented. It is not always consistent, it is not systematic and it again opens the door to free space for the admini-stration to interpret things, which creates uncerta-inty for investors.

Here we are again discussing how clear things are, how they are implemented and my second key point: predictability. What is an issue for us is when new rules are created and implemented immedia-tely. What happened last year was abolishment of tax credit for investments in fixed assets 15 days before the end of the year and made applicable im-

that the curve will be curbed immediately. In order to achieve that, the public deficit needs to be cut. The government looks committed to that, including both the prime minister and the finance minister, so hopefully some measures will be taken there. It is not easy but it is necessary.

► How much would resolving the issue of com-panies undergoing restructuring and the priva-tisation of some of the larger state-owned com-panies contribute to creating a better economic environment?

- By working to solve these issues and reducing the size of the public sector you will equalise the level of competition in the market. For me and the FIC, that is the target. It is more efficient to have equal rules for everybody because then companies can fight to improve their ways of working, and with no distortions of the rules, bring value to consumers and society.

Also important is the usage of the government’s scarce resources. If they can solve the issue of public companies in restructuring – and restructuring is a nice word for companies that are almost dead and just kept alive by giving them subsidies – they could use those subsidies for better investments, which at the end of the day is good for all of society. Of course there will be some short-term impact, and of course the government will have to address the question of how to help those who are currently working in the-se companies during the transitional period in which they will unfortunately lose their jobs; to help them to survive that period and improve their skills in or-der to find a new job. Obviously, though, it is not easy.

For a long time now we have been advocating a level playing

field, meaning the same rules for everybody, both public and

private companies


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and certainly in the longer term. Sometimes certain reforms, and addressing the public deficit is one of them, will have a negative short-term impact regar-ding effective economic activity.

We‘ve seen this in my business at Societe Ge-nerale Bank Serbia: when you have public compa-nies firing people, or giving them smaller salaries, it has a negative impact on our activities in the short term. It’s the same for retailers and elsew-here. But once again, as long as we are convinced that these are good mid- and long-term measures to finally improve the country’s competitiveness

and performance, we know that at the end of the day the stan-dard of living in so-ciety will see the be-nefit in the long term.

I don’t think any investor here, who de-cided sometime ago to invest in this coun-try, will think after six months, one year, a year and a half to leave the country because of the short-term impa-ct on their business. It might unfortuna-tely delay a few new investments in new fields because people will wait a bit, but it is

certain that if the reforms go in a good direction, are understood and investors believe they will be implemented properly, it will cre-ate a positive environment and a positive opinion about the coun-try’s future, which will bring addi-

tional investment. And those investors that are here already will see the light at the end of the tunnel and, of course, will continue with their business.

► What are your main expectations for the co-ming period?- We think there is a need for reforms in certain fields and to improve the business environment. The main keywords are sustainability and predicta-bility. But of course, as I’ve said several times alre-ady, to be sure that will happen, implementation and the ability of the government to demonstrate it can implement bylaws according to the spirit of the laws, as well as having an administration that applies them properly, is vital. Implementation is the keyword from my point of view. ■

mediately. It is unacceptable because it alters your business plans, and you are affected.

► How much would a more flexible labour market, which you have been advocating, increase em-ployment, and, in this regard, what do you think of the amendments made to the Labour Law?- Changes to the Labour Law are something the FIC has been advocating for around 10 years. So of course when we see that this difficult, sensitive re-form happened, we are happy to see a willingness to tackle the issue and even happier to see a large majority of prior FIC re-commendations present in the new Labour Law, inclu-ding the key ones. Of cour-se, there are still a few that haven’t been taken up, but generally speaking it really is going in right direction.

With an official unem-ployment figure of 21%, things are not working well as they stand. For companies to hire more people, they need to be confident about the near future in terms of their activities. As I’ve said, this is one area in which re-form should all contribute with the goal to improve confidence in the future.

It shouldn’t be a jungle, but ha-ving rules that allow companies to recruit and also allow them to fire people in those unfortuna-te moments when they need to, all without paying for the who-le working history of somebody who has already taken several severance payments, looks logical to me and a step in the right direction. It is not to have a system in which people are slaves. Nobody wants that; companies only want to have a staff that is well-trained, happy to work and able to deliver good performance.

► If the government were to adhere to tough au-sterity measures, it would entail a drop in the population’s purchasing power, at least in the short term. Which have a greater effect on fore-ign investors – the short-term or long-term effe-cts of austerity?- We are advocating for reforms that will improve the overall business environment. These reforms will hopefully bring results in the medium term,

Education, health, pensions, and I would add a judicial system that is not working properly – these are

key reforms


many cases generate losses and have a surplus of employees in administration, as well as a lack of production."

The government has made a decision on the merger of Ko-ridora Srbije (Corridors of Serbia) and public enterprise Putevi Srbije (Roads of Serbia), while Serbian Railways expects the

further separation of cargo and pas-senger traffic.

► What are the most important in-novations in the Law on Planning and Construction, when it comes to encouraging investment in the con-struction industry?

- Serbia currently occupies 182nd place on the World Bank's Doing Business list in terms of the speed of issuance of building permits, which is unacceptable for a country where investment needed and which wants to develop faster. I believe that we

Zorana Mihajlović Deputy Prime Minister and Mini-ster of Construction, Transport and Infrastructure, is tackling three key issues that have hindered econo-mic growth in the previous. First is the adoption of

a functional law on planning and construction, with which the procedure for obtaining building permits will be a simplified - which also envisages the adoption of a whole set of bylaws and the reform of competent services, which will reduce the proce-ss of acquiring permits from two to four years down to 28 days.

The second is accelerating work on key road transport secti-ons in Serbia: Corridor 10, the completion of which will see the transport system of the Republic of Serbia become compatible with the transport system of the Eu-ropean Union; and Corridor 11, which represents the link between Serbia and Montenegro, or Belgrade and the Southern Adriatic, and in the broader context links Romania, Serbia, Monte-negro, and Italy. And the third is the reform of public enterprises. "As Mini-ster of Energy I insisted on the reform of public enterprises and I'll do that now as Deputy Prime Minister and Minister of Con-struction, Transport and Infrastructure", says Mihajlović. "Pu-blic companies manage huge state resources and money, and in

With the adoption of the new Law on Planning and Construction, Serbia should eliminate one of the biggest complaints

of foreign investors - long waits and complicated procedures for obtaining

building permits - and gain a much improved position on the World Bank's "Doing

Business" list, as well as encouraging investment in the construction industry

Permits Will No Longer be a Problem

INTERVIEW

ZORANA MIHAJLOVIĆ

Deputy Prime Minister and Minister of Construction, Transport and Infrastructure

I believe that building permits will no longer be one of the first observations mentioned in every

conversation with foreign investors


over urban construction land, this has not been removed from the new version of the law. What are the reasons for its retention? - In the past Serbia did the opposite of what was needed and that was done by our neighbours in terms of conversion. In Croatia they first addressed conversion, and only then entered privatisation. With us it is the opposite. Now we are trying to do what is correct and to do so in the best spirit of European practices, but we still have certain doubts, because in the draft law we predicted conversion with and without fees. I believe, however, that other innovations brought by the law are more important than conversion rights.

► Adoption of this important law followed a relatively brief public debate. What is the main reason for this and do you think the public debate yielded a high enough quality ran-

ge of suggestions and criticisms? - I personally insisted that the draft law be subjected to a public debate and not adopted according to emer-gency procedure. Experience has shown that in this way you always get

some suggestions that can improve the bill, which is our goal. In addition, for key reform broad support is also essential, and for that you need to give a chance to the public and interested organizations to make their own judgement. After completion of the public hearing, the draft was sent to all ministries for review, and after obtaining those opinions, all objections and suggestions will be merged and the final text will be sent to the government for consideration and adoption.

► One of our greatest shortcomings is a lack of appropriate bylaws and procedures that accompany laws. What will

will, with the adoption of amendments to the law on planning and construction, succeed in changing that and that building permits will no longer be one of the first observations mentio-ned in every conversation with foreign investors.

With amendments to the law, the field of construction will be reformed, with simplified procedures for obtaining building permits and fees for urban construction land abolished. Proce-dures will be shortened from the current two to four years of waiting to 28 days, a one-stop-shop will be introduced for per-mitting, and from next year an electronic publication process will begin. In the amended law location permits will no longer be an administrative act and, of particular importance, state au-thorities will be required to obtain documentation, instead of investors doing that themselves.

► You have announced that building permits will be recei-ved in 28 days. What changes in the work of state and local government institutions does this envisage? - The unified procedure for issuing permits envisages different internal organization of all all organs that apply that law. Bearing in mind that the role of individual or-gans has been changed significantly, some services, especially inspections, will be strengthened significantly, and this will be possible to do through the reallocation of existing staff. Moreo-ver, the introduction and implementation of an electronic trac-king system entails the introduction of new programmes and the provision of technical support.

► Although one of the most significant demands of both domestic and foreign investors was the removal of the pro-vision of the conversion of usage rights for property rights

For key reform legislation broad support is essential, and that's why an opportunity must be given to the public and interested organizations

to voice their opinion.

As Minister of Energy I insisted on the reform of public enterprises and I'll

do that now as Deputy Prime Minister and Minister of Construction, Transport and Infrastructure.

We are trying to do what is correct and to do so in the best spirit of European

practices, but we still have certain doubts, because in the draft law we predicted

conversion with and without fees.

PUBLIC DEBATE REFORMS CONVERSION

All bylaws that accompany the Law on Planning and Construction will

be adopted by March 2015


your ministry undertake in its department in order to overcome these problems and what sort of legislative activity are you planning for the ministry?- In the previous Ministry of Energy we insi-sted that regulations be prepared together with the laws, and that's also how we will work in the Ministry of Construction. This shortcoming exists in other countries, not only ours, but we will try to be faster than ot-hers. All bylaws that accompany the Law on Planning and Construction will be adopted by March 2015, and those related to the issuan-ce of building permits will be completed no longer than a month after adoption of the law, which should happen by the end of September.

► Your ministry is also responsible for the construction of road infrastru-cture, the lack of which has represen-ted one of the biggest obstacles to in-vestment. What kind of dynamics can you announce in this regard?- Viewed strategically, the most impor-tant task is completion of Corridor 10, which must be built by 2016. Work on Corridor 11 has been accelerated on the Ub-Lajkovac section and construction has begun on the section that links that, from Obrenovac to Ub and from Lajkovac to Ljig. State-owned enterprises in the transport sector are working on projects worth about three billion euros, and it is in our interest that these projects are implemented faster and more efficiently, because otherwise we will pay penalties as a state, which was also the case in pre-vious years. We found a situation where, of all the projects started, practically only one is likely to be completed on time, and that's the Zemun-Borča bridge.

Because of that we introduced mentors for all major projects, while ministerial te-ams tour the works every seven to ten days. We are also compiling "black and white" lists of sub-contractors, in order for us to prevent firms that fail to meet deadlines on existing projects and don't respect contracts from acquiring new jobs with the state. That's how work was done to date and the result of that kind of practice is that not one project was fully completed. This has now stopped.

► What goals do you intend to achieve with the licensing of construction companies? - The system of licensing construction com-

panies is not new. It should ensure that the highest quality firms gain work, according to the classification and purpose of a facility, or according to the type of planning document that is produced.

► How much GDP growth could Serbia ac-hieve in the following period from the con-struction industry? - It is estimated that, thanks to changes in the law, the share of the construction industry in GDP could increase from four to six per cent. We must not forget that the construction in-dustry has suffered extensive damage due to abuse in the privatisation process, after which came the economic crisis, with its consequen-

ces. The recovery of the construction indu-stry will be neither easy nor quick, but it is possible, because there are still professional staff, knowledge and resources, and today the state regularly meets its obligations towards road-building companies. We will support the formation of a consortium of road-building and construction companies, which would perform together on tenders for works in Ser-bia, because not all companies can provide the guarantees that are sought. ► When could the introduction of electronic building permits reasonably be expected? - The deadline set by the law is by 2016, but

we believe that job can be completed earlier, during the course of 2015. Immediately after the adoption of amendments to the law we will commence with the establishment of the system of electronic issuance of construction permits, because the new law will create con-ditions for that.

► When do you think it will be possible to expect the beginning of the corporatisati-on of public enterprises and the appoin-tment of professional management? - As Minister of Energy I insisted on the re-form of public enterprises and I'll do that now as Deputy Prime Minister and Minister of Construction, Transport and Infrastructu-

re. Public companies manage huge state resources and money, and in many cases generate losses and have a surplus of employees in administration, as well as a lack of production. In the energy sector some companies have already comple-ted that process, such as Transnafta and EMS. EPS has started that process, but not fast enough, while Srbijagas is late in launching any kind of reforms.

And in the Transport Department there will also be major changes in sta-te-owned enterprises. At the end of May Serbian Railways completed the first pha-se of restructuring and we are now awa-iting further separation of cargo freight and passenger traffic. The Government has also decided on the merger of Korido-ra Srbije (Corridors of Serbia) and public enterprise Putevi Srbije (Roads of Serbia). In this way we will get a single enterpri-se that will be better organized and more efficient, and we will no longer have a si-tuation where one company provides the terms of reference, the other appears as

an investor, and mistakes in the management of a project means we lose a lot of money as a country. We started to introduce order to pro-ject design and have initiated the introduction of project oversight. Due to poor project design, just on jobs carried out by Corridors of Serbia, the state spent at least €70 million paying for additional works and compensation claims. As a comparison, that is the same as the cost of bu-ilding an entire section on Corridor 11, specifi-cally the Ub-Lajkovac section. In the world it is possible for the price of a project to deviate by five per cent, but not by 20 or 30 per cent. That shows either a lack of expertise, or the comple-te absence of responsibility and conscience. ■

Thanks to changes in the law, the share of the construction

industry in GDP could increase from four to six per cent


generali.rs


mentation of laws is lacking. And when we talk about implementation, we divide it into five specific areas we want to focus on. Number one is the creation of a level playing field. In this area we are, among other things, pointing to privatisation and activities involving sta-te-owned enterprises.

From a private investor’s perspective, the level of state ownership and how things are conducted in Ser-bia when it comes to governance models and potential

privatizations of state owned com-panies should be more transparent. Therefore the government should strive to establish European-class, perhaps world-class ownership poli-cies for entities the state chooses to retain, and conduct sale processes in other companies that should not re-

main under state ownership. Secondly, when we talk about implementation, we

talk about reforming the public sector, namely: pensi-ons, healthcare and the education system. Generally

The Foreign Investors Council shares Serbian Prime Minister Aleksandar Vučić’s impa-tience regarding the implementation of new laws, but understands the government's

view that it isn’t an easy task and that there are no qu-ick fixes. However, it is important that the state moves more quickly, given the need for a level playing field for businesses, with clear procedures from top to bottom in public administration.

► Which areas over the previous period have re-corded progress when it comes to applying the rule of law and creating a favourable business environment? And whe-re should the government invest more effort to better comply with European business standards?- The new government is good at establishing a new legal framework, but the legal framework alone is not enough. When it comes to implementation there are significant shortcomings. At this year’s Reality Check Conference you perhaps heard stronger language than we’ve been using before, and that is because the imple-

The FIC Vice President is confident that more needs to be done to allow

Serbia’s business environment to flourish. He is calling for a level

playing field, reform of the public sector and the making of a durable

and transparent business framework

Levelling the Playing Field

INTERVIEW

OVE FREDHEIM

FIC Vice President and CEO of Telenor Serbia

The government is good at establishing a legal framework, but that alone is not enough, the implementation of laws is lacking


- I think we tend to forget that the White Book is well re-cognised by all Serbian public servants whose thoughts are key to improving how we do business in Serbia and the interplay between the public sector and business. It is looked upon as a manual in which the best efforts of regu-lators, the public sector and companies come together to point out what kind of progress has been made and what steps should be taken next. A massive amount of know-how and resources go into that effort that ends and conc-

ludes with the book. It is a valuable piece of work summarised in one document.

It is a huge responsibility for the Fore-ign Investors Council to keep the quality level up, and I think how we work to put it together does just that. It is a concerted process in which we talk with public sector representatives, regulators, everybody in-volved, and they recognise that their feed-

back has been embraced and included in the book. The White Book has become a strong brand in Serbia and the government and state administration appreciate what the Foreign Investors Council puts into the entire process.

► How can the state strike a balance between subsidy provisions for new investors and advancing economic environment overall?- Subsidies are the opposite of a level playing field and that is how we should look at them. However, they can play an important role for a period of time as a means of kick-starting an initiative to develop a certain sector or geographic region of Serbia. But what we need to look at is whether a level playing field is created by following

access to labour and work resources is on a high level, but when it comes to having the right skills profile, we need a reformed education system. In short, every modern so-ciety needs those three institutions to properly work, and there we have an issue.

The third specific area is to create a durable and tran-sparent framework. Again, it is a broad term and revolves around legal aspects, regulation and similar issues. Ser-bia is now following its EU accession path and has a great opportunity to use that process, with all the money and funding that goes with it, to absorb knowhow from the EU system and implement significant reforms.

Fourth is to increase predictability. Again, it is to do with laws the government and parliament are now deciding upon and adopting, and having joint alignment with the state bureaucracy. But adopting one law is never enough – it is about implementation and then expert monitoring of how the entire bureaucracy is wor-king to follow the line. Here we have a long way to go.

At the Foreign Investors Council we understand that the government does not have an easy task. It is abo-ut putting these monitoring systems in place, to have a dashboard that highlights progress. We share Mr. Vučić and the government’s impatience on this one. Fifth and finally, we have daily examples of things that are overcomplicated with unnecessary bureaucracy – it shouldn’t be that way.

► What makes the White Book a reference point when it comes to assessing the progress made in implemen-ting market reforms in Serbia?

Subsidies can play an important role but are the opposite of a level playing field, and should be looked

upon as such.

Collecting needed information for permits of all kinds is an issue, and the same goes for the consistency of

the taxation system at both local and state levels.

The penetration of modern telecommunication services mirrors GDP growth and this is the message

the FIC is trying to convey. The telecom sector contributed 4.85% to the GDP in 2013, which shows

how significant a contributor to the economy it is.

SUBSIDIES ISSUES TELECOMMUNICATIONS

We need to establish government ownership

based on modern policies and good governance for

conducting state ownership


cess because they won’t be coming with their machinery and money if there is no clear picture – and we have couple of examples from the news in which this was the case. If there is any uncertainty, it isn’t good. So there shouldn’t be any hidden agendas, just clear straightforward procedures. ► Last year the FIC praised the adoption of the new Law on Public Procurement. How would you rate its imple-mentation from today’s perspective?- We were positive about that law and now we are going to give a formal assessment on how it has progressed in the next White Book. Again, the law only gives directions, and though there are some positive signs regarding its imple-mentation, there is still a way to go.

► The Ministry of Telecommunications and Trade has recently underlined that, apart from digitalisation, its key priority is to create a state telecommunications network as a precursor to the privatisation of Telekom

Serbia. What recommendations would you make to the govern-ment in terms of regulating the te-lecommunications market?- The penetration of modern tele-communication services mirrors GDP, and this is the message we are trying to convey. Telecom sector con-tributed with 4.85% to the GDP in 2013 which shows how significant contributor to the economy it is. Be modern, be forward-thinking and, in a way, be a little bit brave in regards to how you regulate this sector. And in that, today in Serbia we are lagging behind when we compare ourselves with other countries in the region.

Here at the Foreign Investors Council we are offering concrete recom-mendations on what should be done with a goal to facilitate growth of telco industry as one of pre-conditions for ra-ising competitiveness of the country as a whole. So our message is ‘get going, get started’, and we’ll be sure to support

forward-thinking regulation from our side.

► How much has the implementation of e-government processes contributed to a reduction in red tape and moved Serbia closer to the processes investors expe-rience in other countries?- Here we have positive signs, and this process is actually progressing well. Again, there is a huge agenda and we must go forward with ambition in order to really utili-se the technology to its maximum. But e-government is prospering and was well utilised by the national tax au-thorities, having a positive effect on both governments and private individuals. ■

that subsidy framework. In general, we would say that we want to avoid subsidies. Instead, we want the government to establish a general economic framework in which com-panies and business investors can engage on equal terms.

► Chapter 32, the first EU accession chapter up for ne-gotiation, relates indirectly to supervising the work done by public enterprises. How much will Chapter 32-related reforms help when it comes to setting equ-al rules for all market players?- I think it is a very important chapter and relevant to Ser-bia because it has a long list of state-owned companies that are now on the for-sale list. That list includes assets that are difficult to exclude, running with negative financial per-formances and representing sectors that work in old-fas-hioned ways. The public sector is putting huge amounts of money into keeping their activities going. We need to esta-blish government ownership based on modern policies and good governance for conducting state ownership. There is nothing wrong with state-owned companies as long as it is done in a proper way.

► How easy is it today for investors to recognise the government’s economic policy and collect the information required to make bu-siness decisions?- This is different from one sector to the other, but in general we still have a way to go. The bigger organisati-ons have capacities to deal with this issue, but for smaller foreign compa-nies it remains difficult to recognise the government’s economic policy and collect the information required to make business decisions.

If Serbia wants to progress, we need those smaller and medium-sized compa-nies to come here and invest. Collecting needed information on permits of all kinds is an issue, and the same goes for the consistency of the taxation system at both local and state level.

► What recommendations would you make to the go-vernment in terms of managing large-scale infrastru-cture projects?- Unfortunately, Serbia was hit by flooding recently, but in a way this is a reminder that we need a good framework for managing infrastructure projects, because rebuilding the areas damaged by the flooding is ongoing.

The first thing we need here is transparency. If we are to engage both domestic and foreign – either European or global – entrepreneurs and investors in building bigger in-frastructure projects, it needs to be a very transparent pro-

If we are to engage investors in building infrastructure

projects, it needs to be a very transparent process


message we send is that it is better to work with the state, rather than against it. We in the Ministry and em-ployers are on the same mission and we want to help each other. Anyone who hires a man in me an ally.

► You said that employers, if you obey the law, you have the allies and interlocutors. What does it mean? - All employers who regularly pay their contributions, sala-

ries and tax liabilities invite you to contact me and tell me how we can assist them, simplify procedures, in-troduce special officers for dealing with urgent reque-sts. A few times I've instructed employers this appeal but did not receive adequate answers.

After the Labour Law, which introduced or-der to the sphere of labour relations, the Ministry of Labour, Employment, Veterans and Social Affairs has announced the conti-

nuation of live legislative activities that directly rein-force the labour legislation. "This ministry is open to all suggestions from employers that would make their work easier and speed up employment," says Minister Aleksandar Vulin.

► What would your opinion of amendments to the Labour Law enacted in terms of regulation of labor relations? - They have already done! Since July recorded a significant in-crease in official employment. It is of course the people who are already working, and now the employers because of the work and incentives for reporting workers saw them worth report .. Labor Act showed that employers had better have registered and satisfied workers. Of course, our inspection work is very up to date, and is constantly on the field. The

In the next year the Ministry of Labour, Employment, Veterans and Social Affairs

intends to adopt the codex of labour legislation – a series of laws though which all areas that do not belong to the sphere of work will be governed by special laws

and consider the establishment of special courts functioning according to the

German model

Open to the Suggestions of Employers

INTERVIEW

ALEKSANDAR VULIN

Serbian Minister of Labour, Employment, Veterans and Social Affairs

The Law on Civil Servants and the Law on Salary Scales will be adopted quickly and

will follow the spirit of the Labuor Law


all the employers who offered us support and gave us suggestions on how to better regulate this area.

In the next year we will adopt the codex of labour legislation. The current Labour Law has over 200 ar-ticles and only 60 or so relate to the regulation of rela-tions in the workplace, while the other articles relate to the work of trade unions, socio-economic council, mobbing. In the the next year we want to adopt a codex of labour legislation where all those areas that do not directly belong to the sphere of work will be regula-ted by a special law: on trade unions, on strike acti-

on, trade union representativenes, the socio-economic council, social entrepreneurship etc., all of which should be taken from the Labour Law. Then everyone will be able to apply the labour law and if they want to take care of new mothers there will be a special law to deal with that.

► How, in your opinion, can fo-reign investors contribute to strengthening the rights of em-ployees? - Foreign investors bring experien-ces gained in the countries they came from. As a rule, they have better organized unions and prote-ct workers' rights better than we do here. I spoke with the unions abo-ut that and their experience is like this: the foreign investor is typically a tougher negotiator in concluding a collective agreement, but when it is concluded they respect it, and on that side I am very satisfied. There are countries where unions do not

exist, then here you have a problem to organize a uni-on, which is our constitutional category and our mini-stry is working on it. Serious employers always seek to respect a union, while less serious ones bypass them. A union is useful because it allows the employer to en-sure the terms of an agreement with it are respected and that they have predictability in their work.

► What can your ministry do in its capacity to simpli-fy the law on foreigners in the area of facilitating the-ir employment (residence permit, work permit)?

► What the Government intends to take to equalize the position of private and state-owned enterpri-ses, and public administration in the field of labor relations? - The Law on Civil Servants and the Law on the salary scale will be very quickly bring, certainly before the end of the year. But they could not be changed befo-re the enactment of the Labour Law, which is a fra-mework law, and these two regulations will follow its spirit. Of course, workers in the private and public se-ctor can not be completely equal because the collective agreements will be governed by the specificity of certain tasks, but the basis of the minimum are now cle-arly established.

► What further actions can be expected with regard to the har-monization of labor legislation Serbia and the EU? - I think all serious business re-presentatives extremely pleased to changes in the employment law and there will be more. We need to coordinate our activities with the European directives and it is a li-ving process.

In this regard, I have to say this: my mistake was that I allowed my-self to listen to the unions and not to speak about rental agency wor-kers at all. But that must be done because 60,000 people work thro-ugh these agencies and it is not logical for that to be unregulated. And now there are some legal pro-visions that deal with these issues in part, but they have been tram-pled by time, and in essence that is deleted space that allows the fact that now, when you get to a petrol sta-tion, one employee is working for 20,000 dinars, while another, employed through an agency, earns 15,000 di-nars. They must be equal and that’s why we will alter this regulation at the first opportunity.

The ministry addresses very serious companies that have grown accustomed to serious legislation in their own countries and cannot find their way here, where anything goes and nothing can be done. We have changed that with the Labour Law and I want to thank

We are completely open to all initiatives of employers that would ease their work, and we invite them to send us their suggestions.

Amendments to the Labour Law have introduced predictability in the domain of labour relations,

which is good for both employers and trade unions.

Trade unions and employers need to bolster their organisations for them to be really representative.

INICIATIVE PREDICTABILITY REPRESENTATION

The cumulative effect of government incentives, new labour legislation and labour inspections has already

yielded results in reducing the number of illegal workers


dialogue. I think it is necessary to reduce the work of socio-economic councils to the regions and broaden the dialogue. As you know, there was a lot of dissatisfa-ction among trade unions with regard to the extended application of collective agreements. In the end, we adopted the German model, which is 50 plus 1 per cent of the branch of industry, which is very logical. Foreign employers immediately recognised the positive side of that decision. And for this and any other law the most important factor is predictability, for people to know on 1st January what will happen on 31st December.

► In which ways is the Ministry collaborating with other relevant agencies on the retraining of em-ployees and preparing them for the demands of the market? - The ministry carries out short-term measures to encourage employment through a variety of programmes in cooperation with the National Employment Service. Moreover, we cooperate with the Ministry of Edu-cation on the European project FRA-ME and attempt to predict what will be required on our market in five or ten years, and consequently adapt the curriculum of our higher and se-condary education.

We have completely killed the third level of education and now we don’t have people for many jobs. Give me a hunred bakers and I will employ them, give me a tho-usand potters and I'll employ them, and not only in Serbia, but also in the Emirates and Russia. The UAE is seeking 10,000 workers from us with third level vocational educa-tion and we do not have them, and we have allowed every third gra-duate in Serbia to be a manager of some sort. These are people with

no occupation and no address. The market is now seeking engineers of all specialities, IT professionals, pharmacists, but we don’t have enough of them.

If we predict well what we will need in the coming period, we will no longer have these problems.

► Which instruments will the Ministry use to redu-ce unemployment? - A competition was recently announced for the jail in Subotica. They sought a general practitioner and no one responded. And do you know how many doctors are waiting for national service in Subotica? Dozens. Perhaps in cases where the state funded someone's

- We're working on that right now and by the end of the year appropriate regulations will be adopted and I can say that we have adopted a number of suggestions we received regarding this.

► What measures does your ministry have availa-ble concerning the accelerating of the settlement of labour disputes? - None at all, but my idea that has been forwarded to the Ministry of Justice is to establish a court for labour relations. In the previous law we had a measure whe-reby all labour disputes had to be completed within six months, but none one dispute was resolved during that period. We abolished it from this new law. It would be meaningful to me if em-ployers' associations supported the establishment of labour courts, ac-cording to the German model.

► What measures from your doma-in do you intend to take in the field of combating undeclared work?- We estimate that about 30% of workers are working illegally and we are aware that this is a huge fi-gure. A company that does not regi-ster its workers is much more com-petitive than those that regularly meet their obligations and that is an anomaly we must correct. The Serbian government has adopted very supportive measures for the registration of workers and as a ministry we will work on both san-ctioning and preventative policies. My instructions to the labour in-spectorate was not to immediately sanction enterprises with workers employed on the black, but rather to give them a deadline to correct that. We will not close down businesses. We will not leave people without jobs, but workers must be registered. In addition to existing measures, we will introduce some very logi-cal measures to combat unregistered employment, for example blocking the lease of state land to those who do not have registered employees. We will not permit that.

► In your opinion, how can the dialogue between employers and trade unions be strengthened? - To date we’ve had hundreds of workers who were not represented in the socio economic council through their unions and that will no longer happen. The same is true for employers. When they really are represen-tative, then we will be able to lead much better quality

Among the 14 laws to be adopted by year’s end is also the Law on Compensation for harm in the

workplace, solutions for which we will discuss with employers


► What are your expectations regarding the effects of the reform of the pension system and what furt-her steps do you intend to take? - Solutions in the area of pension reform have been completed. This will bring significant cost reductions – in 10 years we will save 5.35% of GDP on pensions, which are serious savings and no one will lose any ri-ghts. We have significantly reduced the number of pri-vileged jobs, equalised the status of women and men, as is the case in all European countries, and with that we have left the mechanism whereby women have certain

privileges based on each child. We also corrected the anomalies - in Serbia one in three workers take early retirement. That is not nor-mal and we had to respond to that.

► Where do you see the role of your ministry in the compre-hensive reform programme announced by the Government?

- By the end of the year we will enter into the procedure with some 14 laws, the most important of which for em-ployers is the Law on Compensation for harm in the wor-kplace, and there I will certainly seek their opinion. This area has not been regulated to date and it is extremely important for the normal operations of a company. ■

education we should consider introducing a require-ment that such students should spend a year, two or three working where there is a need for their knowled-ge, regardless of where they live.

You also have this kind of example: the labour in-spectorate recently warned that employers complain that workers do not want to be registered because they are receiving unemployment benefits. These are workers whose occupations are scarce and employers have no choice but to agree to their terms.

► However, unemployment in Ser-bia is still very high?- Very high. However, in the last five months we can praise ourselves for having a continuous decline in the unemployment level. In July and Au-gust, which we did not expect, we have seen increasing registration of employees as a concrete result of the Labour Law, the government's incentive measures and the engagement of the labour inspectorate.

Howeverm even all those measures for retraining and the like, which I have already mentioned, cannot solve unemployment. It can only be solved by new in-vestments and we are primarily fighting for them.

By the end of the year we will simplify the procedure of the Law on Foreigners, which will ease the

engagement of foreign labour

Always fresh. Always close. Always MAXI.


open to cooperation and ready to listen to the views of foreign investors regarding the business climate in the country. However, when it comes to the implementation of things agreed upon, success has been moderate. Not necessarily because of a lack of will, but rather primarily because of a failure to consider in due time the complexity of the transition process.

Here is a specific example in practice of what mo-derate success means. In October 2013, regulations go-

verning the labelling of non-alcoholic be-verages were harmonised with the EU's rules and this regulation envisages, among other things, an 18-month transition pe-riod. However, the Ministry of Agriculture issued its opinion that the labels on the existing products must be changed within a deadline of seven days, while the transi-

tion period applies only to new products. This proved to be problematic, due to contractual obligations and signi-ficant costs. This kind of practice automatically brought into question the initial positive normative change in the

The level of satisfaction of foreign investors who are already in the country is the best recom-mendation for the arrival of new investors. All previous Serbian governments were aware of

that, as witnessed by the increasing quality of dialogue between the government and the business community. However, progress has been modest when it comes to the practical im-plementation of recommendations to im-prove the business environment, says FIC Vice President Srđan Lazović.

► The FIC exists a full 12 years. To what extent has the atmosphere changed throughout this period? Are the FIC's original recommendations still relevant today? - All previous governments of the Republic of Serbia were

The harmonisation of legislation with EU regulations is often not

accompanied by proper enforcement. The reason for this is an insufficiently

trained administration, a lack of supporting regulations or their

non-compliance with adopted laws. Therefore, progress evident in the

legislative field is negated in practice

No Good Law Without Proper Implementation

INTERVIEW

SRĐAN LAZOVIĆ

Vice President of the Foreign Investors Council, Corporate and Regulatory Affairs Director

for the CEFTA region and Bulgaria at British American Tobacco SEE d.o.o.

The FIC has advocated for years for the introduction of

a transparent and sustainable system of public finances


issue is also the increasing of predictability, by which we imply the implementation of laws that have been adopted and the monito-ring of their implementation. Furthermore, it is necessary to con-tinue to reduce red tape in order for the state administration to be more efficient and accountable. The Council advocates for the economic integration of Serbia with the European Union, because that brings predictability and transparency in the business envi-ronment and raises the competitiveness of the Serbian market.

► How do you rate the government's intention to reform pu-blic finances, the pension system and education; do you see concrete progress and, if so, where? - Addressing key issues of Serbia's public finances, such as

managing a growing budget deficit and public debt, are crucial to ensuring the country's macroeconomic stability. Tax policy should be transparent, without the introduction of para-fiscal levies in certain areas. When we talk about reforms and the implementation of systemic reforms in the areas of heal-thcare, pensions, education and public

administration, these certainly represent the most complex and most important steps in creating a functional and sustai-nable business framework.

► In your opinion, will the new bankruptcy law provide greater protection to creditors and enable acceleration of the process of bankruptcy for companies that have been unable to service payments for a long time? - The FIC conducted comprehensive analysis of the Law on Bankruptcy after its adoption by the Assembly and we plan to present those results in the latest edition of the White

law itself, in terms of harmonisation with EU regulations.As far as the relevance of the recommendations is con-

cerned, we are fully aware that the harmonising of legislation with the regulations applicable in the EU is a long-term proce-ss, so their repeated appearance in several editions of the Whi-te Book is a result of our desire to help solve specific problems in the long run and, more importantly, in a sustainable way.

► To what extent can we say today that the overall le-gal framework in Serbia is coherent, and supported by appropriate regulations? - The creating of a legal framework that will be coherent, as well as supported by applicable regulations and in compliance with the EU Acquis, is one of five identified key priorities of the Council, and one of the basic preconditions for legal cer-tainty in Serbia. There is currently a di-fference between the formal framework, which has largely been harmonised with the EU, and reality, in terms of the ways in which laws are enforced. The reason this occurs is that laws are sometimes vague, the public administration has a limited capacity to im-plement them, as well as bureaucracy and sudden regulatory changes. The judicial system is also too slow and cumbersome to cater to the needs of a modern economy.

► Which segments of harmonisation with the EU would you specifically point out to the government on the eve of ope-ning negotiations on the chapters? - We believe the goal should primarily be the creation of a lasting, sustainable and transparent framework – to adopt and implement regulations that comply with the EU Acquis. Closely related to this

Systemic reforms in the areas of healthcare, pensions, education and public administration are the most

important for the creation of functional and sustainable business framework.

Serbia has great potential in agriculture and the food processing

industry, but the essential precondition for its use is a better structured and a

predictable framework.

The government should make efforts to improve the transparency of regulations,

strengthen institutional capacities and reduce the administrative burden, in order to provide

effective protection for investors.

REFORMS PREDICTABILITY REGULATIONS

We expect greater appreciation of our recommendations, because the FIC plays an

important role in generating Serbia's GDP


tion has once again emerged. The remaining problems in the agri-food industry include full lack of transparency in the im-plementation of border inspection procedures, in terms of cost, timeframes and mechanisms, including sampling and labora-tory analysis. The quality standards of milk are not ensured and the National Reference Laboratory is still not operating. It is essential to establish a transparent policy of subsidies to support long-term agricultural development, furthermore the registration of products for plant protection has not yet been agreed with the European Union and does not guarantee food safety. We have inconsistent application of the rules relating to livestock and so on.

► Can we say that the level of acceptance of the recommen-dations and advice given by FIC members, along with their

experience, is proportional to their share in the Serbian GDP? - We think there is progress, but we cer-tainly expect a significantly higher per-centage of our recommendations to be accepted because, as you noticed nicely, the Council has an important role in ge-nerating the GDP of Serbia. It is also an indisputable fact that the Council conti-nues to strengthen, thanks to continued growth and an influx of new members, currently bringing together 130 compa-nies that have invested a combined total of more than $20 billion, accounting for 17.5% of GDP, and its member compa-nies are among the country’s biggest taxpayers and exporters, directly em-ploying over 95,000 people in Serbia. The main objective of the Council is to use specific recommendations articula-ted in the White Book to draw attention to areas that need to be advanced with the aim of further improving the inves-tment climate in Serbia.

► You just mentioned the White Book. To what extent is the White Book required reading for investors who are just arriving in Serbia? - The White Book is a unique brand in its own right and the key publication of the Council, which provides a picture of the business climate in Serbia and offers tangible suggestions for improving the business environment. The purpose of the White Book is to serve as a platform for an active dialogue between the Council and the Government, and we believe that it serves this purpose. Moreover, key players in Serbia and beyond recognise the White Book as a sort of manual or set of recommendations for creating simpler and better conditi-ons for doing business. Not infrequently, especially in recent times, we have witnessed our publication being quoted in public and we have seen it cited by government officials and ambassadors of foreign countries. ■

Book this autumn. At this point I can convey that the latest amendments to the Law on Bankruptcy adopted in August of this year introduced numerous positive changes. Namely, the proposed amendments seem to contribute to the transparen-cy and efficiency of bankruptcy proceedings, and we express hope that a significant amount of problems observed in pra-ctice should hopefully be resolved by the adoption of the la-test amendments of the Law. However, the actual effects of the amendments could only be evaluated after a certain period of their implementation in practice.

► Can you give us some FIC comments regarding the new Law on Foreign Currency Operations? - The position of the Council is that it is necessary to make amen-dments in order to avoid different interpretations of existing rules on foreign currency operations, all with the aim of further liberalisation of financial instruments and regulations on foreign exchange transactions. In this regard, the Council considers it nece-ssary to secure the implementation of the following recommendations, which are not included in the proposed amen-dments to the law: enable the issuing of guarantees on non-resident accounts in transactions between two non-residents in all non-credit transactions; bylaws and practices of the National Bank of Serbia regarding subordinated loans also need to be changed and the providing of subor-dinated loans should be considered as a direct investment, as is regulated by the Law on Foreign Currency Operations, etc. These are just some of the specific recom-mendations we have given to the compe-tent institutions through official channels.

► How do you assess progress in agricul-ture and the food industry, where there was little progress in previous years? - Serbia has great potential in agriculture and the food proce-ssing industry, but a key prerequisite for the utilization of this potential is a better structured and predictable framework. The-re are two contradictory elements within the food industry and agriculture in Serbia. On the one hand, important laws, such as the Food Safety Law, are to a large extent harmonised with EU regulations. However, in practice, many important legal decisi-ons do not apply. For example, the functioning of the reference laboratory was regulated back in 2009, but it still isn’t functi-oning. In addition, sometimes the bylaws are in direct conflict with the positions written in the law itself. For example, the Regulation on labelling contradicted the Law on Food Safety for four years, until it was changed last year.

Some positive changes have been noticed in the past eight months, such as harmonisation of the regulations on labelling with European Union rules, but the problem of implementa-

A satisfied foreign investor is the best recommendation for the arrival of new foreign investors


Jorgovanka Tabaković, Governor of the National Bank of Serbia, believes the government will be committed in the implementation of fiscal con-

solidation and structural reforms and that these efforts will result in the concluding of a precautionary arrangement with the In-ternational Monetary Fund. The NBS is re-ady to contribute to creating conditions for improving the market environment through the ensuring of the stability of prices and the financial system.

► How would you assess the macroeco-nomic situation in Serbia and the probability of entering into a pre-cautionary arrangement with the IMF this year?- The year-on-year inflation rate in June totalled 1.3 per cent, with which it reached a new historic, 50-year low. Inflationary pressures have been very low in the last year and a half, which is a result of monetary policy measures that also contri-bute to the stability of the exchange rate and inflation expectations, as well as the result of low aggregate demand and falling prices of primary agricultural products. We expect that in the second half of the year inflation

will return within the limits of the target, or four plus/minus 1.5 per cent.

On the other hand, following the floods that primarily impacted on energy, mining and agriculture, the growth prospects for GDP have deteriorated. Flood damage will almost certainly have a negative impact on the budget, which will demand additional fiscal policy efforts in the coming period in order to ensure the sustainability of public finances, while to a certain extent the trade balance will also worsen, due to the expe-cted higher imports of energy, as well as ma-terials and equipment for repairing damage.

We estimate, however, that the effects of the flooding are one-off and limited, and that the outlook for 2015 is more favourable, prima-rily due to the expected increase in inves-tments to repair the damage.

We expect that the new round of negotia-tions with the IMF will follow in the autumn and that afterwards a precautionary arrange-

ment will be signed that will be an additional guarantee to investors that Serbia is leading a responsible and sustainable economic policy.

► Where do you see the NBS’s role in su-pporting the government’s implementati-on of comprehensive reforms? - The Government and the NBS have a sha-red task of ensuring policies enable the advancement of the business environment in the country and, as a consequence, hig-her economic growth and employment. An essential condition for conducting reforms is macroeconomic stability, and in order to

achieve that it is necessary for the Go-vernment to ensure the stability and sustainability of public finances, while for its part the NBS ensures the stabi-lity of prices and the financial system.

► How much room is there for the NBS to maintain low inflation and the stable value of the dinar in the face of challenges coming from the fiscal sector? - It is correct that there are challenges in the fiscal sphere, but the NBS believes in the deci-siveness of the Government to deal with them, which would contribute to reducing internal and external imbalances, and thereby also la-

It is correct that there are challenges in the fiscal sphere, but the National Bank of Serbia believes

in the decisiveness of the Government to deal with them, which would contribute to reducing internal and external imbalances, and thereby also lasting

stability of the foreign exchange market

We’re Aware of the Challenges

INTERVIEW

JORGOVANKA TABAKOVIĆ

Governor of the National Bank of Serbia

The course represents one of the most important factors influencing price and overall financial stability


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sting stability of the foreign exchange market.As you know, Serbia’s regime of mana-

ging-fluctuating the exchange rate and the NBS does not have the aim of maintaining the exchange rate of the dinar towards the euro at a predetermined level. Howe-ver, the fact is that – as in other small, exposed economies – The course re-presents one of the most important factors influencing price and overall financial stability.

In addition to that, given the de-gree of Euroization of the domestic economy, movements in the exchan-ge rate are also important from the standpoint of financial stability, the mainte-nance of which represents the second task of the National Bank. If the NBS allowed the fo-reign exchange market, which is very shallow

and has low traffic, to fluctuate as a result of short-term external shocks, we would be irresponsible with regard to the population and the economy.

► Which solutions from the domain of the NBS are being considered when it comes to non-performing loans? - There are no quick fixes in the resolving of

issues that have accumulated over the years, and the same also applies to the issue of non-perfor-ming loans (NPL).

In the previous period the NBS brought a number of regulatory changes in an effort to solve this problem, which were aimed at relaxing provisions relating to the transfer of receiva-bles sought from banks by other le-gal entities, in order to allow banks to thereby clean their portfolios, and the NBS is still working actively on finding additional regulatory soluti-ons to this problem.

One of the possible measures for resolving the problem of NPLs is also the cre-ation of a separate company in the form of an investment fund that that would buy up tro-ubled loans from banks. This would allow

A precautionary arrangement with the IMF would be an additional guarantee to

investors that Serbia is leading a responsible and sustainable economic policy.

Lasting results in resolving the issue of non-performing loans are not

possible without stronger economic recovery and structural reforms.

The legal framework must no longer be a limiting factor in the

development of innovations on the payment services market.

RESPONSIBLE REFORMS LAWS

The measures that the Government intends to implement are

essential and urgent because the environment that citizens and businesses should live and do business in depends on them


banks to use the sale of troubled receivables to other entities in order to relieve their ba-lance sheets and utilise the resulting funds for new lending to support healthy projects.

However, the lasting results in solving the problem of NPLs are not possible wi-thout a stronger economic recovery and structural reforms, while central banks can provide their biggest contribution by su-pporting macroeconomic stability, in which the NBS has visible results.

► At the beginning of this year you announ-ced interest in a strategic investment and a number of investors interested in in-dividual banks in Serbia. What could realistically be achieved from these investments by the end of this year?- In mid-August the Executive Board of the National Bank of Serbia gavepreliminary approval to the establishing of a bank to be part of the international conglomerate known as the Royal Group, which has its headquarters and founder in Abu Dhabi (UAE). The bank will operate under the name "Mirabank, joint stock company, Beograd". With this, the first stage in the establishment of this bank has been com-pleted. It is the first greenfield investment in the banking sector in Serbia since 2008. The next stage is the licensing of the bank.

The NBS, in accordance with its res-ponsibilities and on the basis of the sub-mitted applications of potential investors for the acquisition of direct ownership that would enable more than 50 per cent of the voting rights of Čačanska Bank, passed an appropriate act that has been forwarded to the Deposit Insurance Agen-cy, which is in charge of the process of le-ading and finalising the sale of this bank.

Individual companies from China and Turkey have also expressed interest in in-vesting in the financial sector in Serbia, but to date they have not submitted official requests.

► The NBS has prepared a draft law on insurance, payment services and amen-dment and additions to the Foreign Exc-hange Act. What will these laws mean in terms of regulating the economic envi-ronment?- The draft law on insurance should establi-sh a regulatory framework that will enable the further development and improvement of the insurance business and a higher level of

protection for the users of insurance services. The NBS, as the proponent of this law, sought to use the introduction of a number of novel-ties to increase the quality of dealing with insurance and enable the further harmonisa-tion of insurance services with the standards of developed market economies and with the EU acquis in the field of insurance.

The draft law on payment services will, for the first time and in a comprehensive and detailed manner, bring order to the payment services market in our country. Its adoption will improve the business en-vironment by creating legal requirements

for new, contemporary forms of payment, as well as for the establishing of institutions that have not previously existed on the mar-ket – institutions for electronic money and payment institutions.

There are three basic principles that we were led by during its compilation. First is that the legal framework must no longer be a limi-ting factor in the development of innovations on the payment services market. Second, we want to secure conditions for the shortest po-ssible deadline for the execution of payment transactions, alongside the highest possible share of electronic payments. The third princi-

ple we followed is ensuring the safety and relia-bility of payment transactions.

The NBS has also prepared a Draft law on amendments and additions to the Foreign Ex-change Act with the aim of complying with the provisions of the new Law on Payment Services, as well as in order to eliminate confusion in the application of certain provisions of the applica-ble Law on Foreign Exchange Operations.

► What does the NBS intend to do in its do-main in terms of promoting e-commerce? - One of the main goals of the new law on payment services is to promote e-commerce,

and to do so primarily through the legal introduction of institutes of electronic money and enabling electronic money payments in dinars and foreign curren-cy, both in the country and abroad, as well as creating a legal framework for the establishment and operations of do-mestic institutions for electronic money.

We expect them to be a more favo-urable alternative than banks when it comes to the cost of companies wanting to sell their products and services online to customers in the country or to engage in the global internet trading system.

► In which areas should the Law on the Protection of Financial Services improve this domain? - The basic goals of this law are for it to be harmonised with the new law on payment services, improving the ways of realising the rights and in-terests of users of financial services, additionally protecting those users, as well as resolving specific practical problems and dilemmas that arise in its implementation.

► In your opinion, how much will the measures taken by the Government and the NBS impact on the creation of a more equitable business environment for all participants? - This government is determined to im-plement essential reforms, and to remove obstacles hindering the establishment of a favourable business environment. Those me-asures are not always the easiest to apply but, as they have been delayed for years, they are now essential and urgent because the envi-ronment that citizens and businesses should live and do business in depends on them. ■

We estimate that the outlook for 2015 is more favourable, primarily due to the expected

increase in investments to repair the flood damage


se manner because, other than notional outlines, we do not currently know the government’s exact reform course. The indications given by Minister Vujović in the interview he gave to Bloomberg on 14th July are of a gradual approach to fiscal con-solidation, and the problem of the companies in

the process of restructuring. Whether this is a consequen-ce of the floods, and an effort to cushion the double blow to Serbia’s citizens, or the refle-ction of an approach that was present all along, is hard to establish without a counterfa-

ctual. Unfortunately, the experience of other mi-ddle income countries globally shows that gradu-al fiscal consolidation rarely delivers the needed effect, and this is a lesson we hope the govern-ment will take to heart as it takes critical decisi-ons in the coming months.

The floods that occurred at the time when the government was just being formed, took the prime minister and his cabinet a lot of time, first on the immediate post-flo-

od efforts, and then on the Recovery Needs Asse-ssment, at the time when implementation of the fiscal consolidation measures are urgently needed. However, fiscal consolidation is probably even more important than be-fore, in order to free up fiscal space to support the flood reco-very efforts, says Tony Verhei-jen, World Bank Country Mana-ger for Serbia.

► You've warned the Serbian government that the flood relief issue should not distract them from the reform course. Was your advice heeded?- It is difficult to answer your question in a preci-

Gradual fiscal consolidation rarely delivers the needed effect, and this is a lesson we hope the government will take to heart as it takes critical

decisions in the coming months

Fiscal Consolidation is More Important than Ever

INTERVIEW

TONY VERHEIJEN

World Bank Country Manager for Serbia

We believe that the Labour Law changes are a step in the right

direction that hopefully will pay off in an improved investment climate


whether Serbia can meet its targeted deficit stabilization and reduction objectives.

► Economy Minister has announced that the privatisati-on of state-owned and socially-owned companies will be completed by December 2016. Do you think this is a new

delay tactic or a realistic plan? Is this a step towards levelling the playing field?- We haven’t seen the full plan for resolving the 161 enterpri-ses in restructuring, nor for the other remaining enterprises in the portfolio of the Privatisati-

on Agency. We expressed some concerns over the approach that Minister Vujović outlined at the FIC Forum in june, as to us it raises the risk of strong political pressures on behalf of the (mostly defunct) SOEs, further delaying the process. We have provided comments to this effect and the Mi-

► The Government has announced a revised budget for this autumn, to be followed by negotiations with the IMF. Is the timing and sequence of steps right to ensure macro-economic stability in the coming period?- The supplemental budget comes very late in the year, whi-ch means that whatever measures are included will carry an effect mostly for the 4th quarter. Considering the pattern we’ve witnessed since the beginning of the year (of an expanding fiscal deficit), it will be hard for the government to remain even wi-thin the not very ambitious defi-cit target originally set for 2014. This means that basically Serbia will have lost another year that it will need to make up for in the 2015-2017 period if macro-fiscal fundamentals are to improve. In this respect, the preparation of the 2015 budget and the 2015-2017 fiscal strategy will become a pivotal process that will determine

We are concerned that several new projects that were approved by the Bank in the last 18 months have yet to see the start of implementation

Preparation of the 2015 budget and the 2015-2017 fiscal strategy will become a

pivotal process that will determine whether Serbia can meet its targeted deficit

stabilisation and reduction objectives.

A lot remains to be done, especially regarding the consistent and predictable implementation of laws and regulations, the creation of a level playing field and

ending unfair advantages enjoyed by SOEs.

The new Law on privatisation itself will not change things much if there is no determined implementation and a strong political commitment to finally

resolve the companies in restructuring.

BUDGET PREDICTABILITY DETERMINATION


of implementation. This is damaging, in parti-cular for the Deposit Insurance Agency (DIA) support project, which was meant to rapidly provide resources to the government, but was approved only in August, and the Road Reha-bilitation project, which took 16 months to be ratified. Frequent changes in the govern-

ment and the need for cumber-some re-approval processes are mostly to blame for this… The most serious problem we are facing remains the Bor Regional Development Project, where the Government signed a contract for the construction of the Ve-liki Krivelj collector (which is critical to prevent a serious en-vironmental incident in the Bor area) in January 2013, but for reasons unclear to us no works have started so far.

► Has the environment for doing business in Serbia improved?

- Judging from the tone of the FIC president’s address to the FIC conference in june, a lot remains to be done, especially regarding the consistent and predictable implementation of laws and re-gulations, the creation of a level

playing field and ending unfair advantages enjoyed by SOEs. There are some positive de-velopments – for example, we believe that the Labour Law changes are a step in the right direction that hopefully will pay off in an improved investment climate. Resolving the SOEs in restructuring and the remaining SOEs in the portfolio of the Pri-vatisation Agency should also help, along with the continuing process of tax administration reform. We also note the efforts to harmonise and streamline in-spections, initiated by Deputy Prime Minister Udovicki. The

government undertook a number of moves in the right direction, but achieving a real effect on the economy will require adopting a coor-dinated approach to accelerating reforms that has so far been lagging or implemented in pie-cemeal manner, and establishing clear accoun-tability for delivering results. ■

nistry of Economy is considering these… The adoption of the new Privatisation Law could be a good opportunity to regain momentum that was lost over the previous 18 months. Howe-ver, a new law itself will not change things much if there is no determined implementati-on and a strong political commitment to finally resolve these companies.

► You've said that "the core of the state administration - heal-th, education and social welfare - is too large." Do you see reform progress in these areas?- We have been working close-ly with the team established by Deputy Prime Minister Udovički to find ways of achieving some early fiscal gains from the public administration reform process, while at the same time focusing on improving system performan-ce. It is clear that expenditure on wages and salaries in the Serbian public sector is large, that perfor-mance in service delivery is poor, and that expenditure on wages has increased rather than declined du-ring the last five years, contrary to the trend across EU member states. I believe the phased approach being developed by the Government is credible and the only realistic way forward, as it combines some upfront savings with a clear pro-cess of fundamental revision of public sector employment num-bers, while focusing on the quali-ty and performance of the system along with its cost.

► Is this government faster than the previous administration when it comes to withdrawing credits from the World Bank?- We have seen improvements in project implementation over the last 12 months, in particular on Corridor X, which is our largest investment in Serbia. We have also successfully closed the Irrigation and Drainage project, which achieved most of its objectives, as well as the Energy Efficiency project, which also had good results. However, we are concerned that several new projects that were approved in the last 18 months have yet to see the start

It is clear that expenditure on wages and salaries in the Serbian public sector is large

and that performance in service delivery is poor


part in specific training programmes, focusing on major elements and skills of law drafting.

But even if you have good laws, they might not always be implemented by the public administration or judiciary. One of the reasons for that is simply a lack of knowled-ge and skills. This programme helps in overcoming the so-called implementation gap. Furthermore, the introdu-

ction of “private” Enforcement Agents and Public Notaries has already increased predictability in those areas today.

Our focus in the upcoming period will be on the negotiati-ons of chapters 23 and 24 of the acquis communautaire, building

the capacities of the Serbian public administration, stren-gthening and consolidating already initiated reforms and ensuring efficiency in the work of newly established legal professions, such as public notaries, enforcement agents and insolvency administrators.

Only a sound and predictable legal and in-stitutional framework will provide the right environment to attract foreign inve-stments: investments which are greatly

needed in Serbia. It is crucial that investors claim that from the Serbian authorities, but also help them define that system. The Legal and Judicial Reform Program-me of GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH), has contributed inten-sively to improving the legislative process in Serbia, says Mike Falke, Head of GIZ Legal and Judicial Reform Programme in Serbia.

► What major achievements in terms of the busine-ss environment’s legal predictability has the Ser-bian Government made in the previous year with the help of GIZ, and what are the most urgent tasks in the pe-riod ahead?- The Legal and Judicial Reform Programme of GIZ has contri-buted intensively to improving the legislative process in Serbia. For example, public consultations are now mandatory for every new law – even though many laws have been adopted recently under urgent procedures without sufficient stakehol-der participation. A great number of civil servants took

Even though GIZ and the FIC have very different mandates, both share similar goals and aspire to increase transparency and the efficiency of,

and stakeholder participation in, the law making process

Better Legislation, More Investors

INTERVIEW

MIKE FALKE

Head of GIZ Legal and Judicial Reform Programme in Serbia

Urgent procedures without public hearings should be the absolute

exception. Unfortunately, that has not been the case in the last few months


mentation of laws. Unfortunately, this practice has still not improved sufficiently.

► What does the introduction of the institution of public notaries mean for overall progress on judicial system reform and will it bring shorter procedures to business dealings?- Just a few days ago we have witnessed the establish-ment of the Serbian Chamber of Notaries. Public notaries are judicial professionals who will certainly contribute to

increasing the predictability of the Serbian legal system. That will be also important for foreign investors: notarial certified business transactions will make risk calculation easier.

One of the expected advantages of pu-blic notaries is that the judiciary will be un-burdened of tasks that public notaries will take over. That will increase the efficiency of the work of courts. On the other hand, public notaries’ deeds present enforcement certificates, thereby enabling direct enfor-cement without requiring civil proceedings for its enforcement.

► GIZ is also helping the government ra-ise the quality of private enforcement agents and bankruptcy trustees, as well as the training of judges who deal with bankruptcy proceedings. How would you assess progress to date in this area?- We have been providing a lot of capacity de-velopment training for Serbian insolvency ad-

ministrators and judges dealing with insolvency matters. One could say that the system of insolvency admi-nistrators is functioning rather well, based on a modern insolvency law.

The reform of the system of en-forcing civil claims in Serbia is also something that our programme has been dedicated to for many years.

From September 2013 GIZ was also entrusted with the im-plementation of the Rule of Law and Enforcement Project, funded by the EU under IPA 2012. Through the valuable support of our partner, the EU Delegation to Serbia, we will continue supporting the development of an efficient, reliable enforcement system. The enforcement of civil cla-ims in Serbia is crucial not only for a sustainable Serbian economy and improved quality of public services provided to citizens, but also because it will be an important guaran-tee for investors who can engage a legal professional, i.e. enforcement agent, to enforce their dues or, vice versa, an enforcement agent to enforce the rights of employees, for example. In that respect, our programme will work inten-sively on the improvement of legislation, i.e. the drafting of new provisions of the Law on Enforcement and Security. ■

► Which aspects of regulatory reform do GIZ and the Foreign Investors Council cooperate on the most?- Even though our Programme and the FIC have very di-fferent mandates, both share similar goals and aspire to increase transparency and the efficiency of, and stakehol-der participation in, the law making process. The insight of the FIC and its members, especially when it comes to specific and practical questions, means it is again impor-tant for us to engage in reform policy. I would consider this symbiosis as the basis of our cooperation.

► What are your main messages to the Serbian Government when it comes to the quality of public debate on legislation and incorporating suggestions into the fi-nal texts of laws?- It is very important that all respective sta-keholders are involved and informed in the very early stages of the legislative process. Urgent procedures without public hearings should be the absolute exception. Unfortu-nately, that has not been the case in the last few months. Inputs, concerns and proposals from stakeholders should be evaluated and processed in a transparent manner. The rea-soning for provisions in the final text should be comprehensible and documented. The intensity, and also the technical solutions to support public consultations, should be adju-sted to the specific type of legislation. Where there is great interest from a wider audien-ce, more accessible public consultation sho-uld be offered. Finally, competences and insights of professional asso-ciations, such as the FIC, should be used to increase the efficiency and quality of law making.

Our programme came out with these and other recommendations in June 2012, when we published a comprehensive Survey on the Improvement of the Legislative Process in the Republic of Serbia. The Survey can be accessed via our web page www.legalreform.rs (www.pravnareforma.rs).

► How would you rate activities undertaken by the new government in terms of adopting appropriate bylaws that were previously either missing or not co-herent with the spirit of the laws, thereby hindering the enforcement of those laws?- It is recognised as a negative practice in Serbia to have a law prepared, drafted and adopted while the adoption of relevant bylaws legs behind, sometimes for several ye-ars. We strongly recommend simultaneous preparation of bylaws and laws (pre-draft), which would overcome many inconsistencies and later enable the feasible imple-

Public notaries are judicial officials who will be important for foreign

investors: notarial certified business transactions will make risk

calculation easier


doing business to change. Just look at the treatment that business people receive, and that certainly isn’t stimulating for investment. Changing the climate in public does not cost anything, and contributes signi-ficantly to the development of business. An investor is an investor and the rules should be the same for all.

► The Government of Serbia has vowed to improve the business environment and make it more attra-ctive for companies. Where do you see progress, and in which areas do obstacles to doing business remain high? - Progress can be seen in the level of cooperation of pu-blic administrations and local governments with inve-stors. Likewise, the new Labour Law is stimulating for

employers, including for the hiring of new workers.

However, bureaucracy still makes it difficult to surmount obstacles to investment, while a special problem is the inadequate credit policy. It is led as though the Serbian economy is

"overheated" and should be slowed, while the reality is actually the opposite: economic activity is almost nonexistent and launching the economy, especially ma-nufacturing, is practically the first and most important economic measure required for the recovery of Serbia.

Delta will almost certainly be the leading investor in the Serbian economy again this year, despite the lack of government measures to increase economic activity

and the complicated administrative procedures that this company, like many other investors in Serbia, faces every day.

► How important is macroeconomic stability to the planning of Delta Holding, and in that context how would you evaluate the overall eco-nomic environment? - Without stable parameters there is no planning in business. In that sense, a stable exchange rate for the dinar is that which is being sought by a large part of the economy.

However, there are other things in our environ-ment that are not conducive to the development of business and many of them are not issues of major investments or European integration, but rather only good will and an honest desire for the conditions for

The business world’s expectations of the public administration are not great and are very simple - it has to be as effective and cheap as possible, and enable all investors to operate under the same conditions

Too Long Waiting for Permits Makes Investment Pointless

INTERVIEW

DEJAN JEREMIĆ

Executive Vice President of Operations at Delta Holding

An investor is an investor and the rules should be the same for all


Of course, if we're talking about recent graduates, it is clear that their education does not include enough practical experience and that they only learn the real job by joining a company or some other institution. Pri-marily, closer cooperation between educational institu-tions and the economy would be beneficial for all, be-cause it is true that universities educate the youth, but it is the economy that has to employ them in the end.

► As a businessman, what are your expectations of the public administration reforms? - The expectations of the business world when it comes to public ad-ministration are not great and are very simple. Public administration should be as efficient and cheap as possible, and should be dimen-sioned such that the economy can finance it, and that the economy and citizens can realsie their needs through it. I will leave all other de-tails of public administration re-

form to the experts in that field.

► If you had a day to decide which legal provisions should be subje-cted to the regulatory guillotine, what would your priorities be? - The provisions on the conversion of the usage rights in property over land are in themsevles opposed. The State and bud-gets have not brought any benefit, and have completely halted several branc-hes of business. It’s been a long time sin-

ce legislative solutions have caused as much damage, not only to the economy, but also the whole of Serbia.

► This year Delta Holding is expecting better re-sults compared to the previous year. What are the factors contributing to that? - This year we expect results similar to those we had in 2013. Given the state of the Serbian economy and citi-zens’ living standards, and even the natural disasters that hit our country, we consider that would be a very good result. We are particularly pleased to be continuing the cycle of investment, and that also means the creation of new jobs. We are currently building a cold storage facility on a farm in the Podunavlje region, a logistics centre for the Delta transport system in Stara Pazova, and at the end of the year we expect to start investments in the real esta-te sector, so this year Delta will almost certainly defend its position as the biggest investors in our economy.

We believe that 2015 will be marked by the growth of the Serbian economy, so our plans will be even more ambitious. ■

► As a major real estate investor, what do you see as the main problems in this area? - The problems in the real estate sector have been the same for years, and that explains the fact that the real estate sector, and along with it the construction industry, have virtually frozen. When it comes to ob-sacles, in the first place is complicated bureaucracy, with enormous discretion on the part of the state and local governments. The efficiency of issuing the necessary permits is often such that some projects are rendered senseless. It is unaccep-table to wait years for permits for projects whose value is not only in the hundreds of millions of eu-ros, but which will also create tho-usands of jobs, such as, for exam-ple, the case with our Delta Planet shopping centre.

► With its approach to the EU, Serbia will have to improve the competitiveness of the food production and processing se-ctor. What are the most important elements in terms of establishing an institutional framework to en-sure that? - I am afraid that we have not taken this issue seriously enough and be-gan addressing it on time. We say that agriculture and food production are our opportunity and our strategic branch for development, but we do for it to actually become that. Such as it is today, agriculture is in a far worse state than industry.

The first strategic prerequisite for raising compe-titiveness is increasing the area of irrigated land. Ser-bia is, to our misfortune, ranked as the last country in Europe in terms of area of irrigated land and without irrigation yield per unit area cannot be increased.

The second element we need to improve are subsi-dies. If we know that 40% of the EU budget goes to agricultural subsidies, then the question is how our manufacturers can compete with European ones? We cannot expect to solve the issue of subsidies overnight, but we can create conditions to reach production con-ditions enjoyed by other countries in the region in three to five years.

► In your opinion, how easy is it for companies to find skilled workers and what are your recommen-dations for improving the education system? - I believe that good companies, with a clear business strategy and human resources policy, can still find high quality workers in Serbia.

SUBSIDIES

In order for Serbian agriculture to be competitive,

we would have to harmonise our

conditions for production with those of other

countries in the region in the next three to five years.

The provisions on the conversion of the usage rights in property

over land are in themsevles opposed... It’s been a long time since legislative solutions have

caused as much damage, not only to the economy, but also the

whole of Serbia


EU membership is one of Serbia’s na-tional objectives and this process includes harmonisation with Chap-ter 27, relating to the environment,

which is one of the most difficult and deman-ding chapters, especially since it requires in-vestment in the amount of ten billion euros in the next decade. Jugo-Impex, a leading com-pany in the field of managing hazardous and non-hazardous waste, sees an opportunity for continued growth in this area, says company director Vujadin Šćekić.

► What kind of potential for de-velopment does the recycling industry in Serbia have and where do you see room for your company in this sector? - The national strategy and corresponding EU regulations stipulate that it is necessary to collect 4kg of electronic waste per capita per year, and that figure should be reached by 2018 at the latest. Today's result is at a level of 1.5 kg per capita, which clearly indicates that there is huge potential for the development of this industry.

Jugo-Impex EER is the leading company in the management of hazardous and non-ha-zardous waste, with an over 50% market sha-re in electronic waste. In 2013 it processed 10,000 tonnes of hazardous waste and this figure is expected to increase every year. Ju-go-Impex directly and indirectly employs a large number of people – over 2,500, thanks to which this work has a secure existence

► In 2009 you successfully developed the expanded copper granule, a product with a wide range of applications in the chemical industry. Where are your most important

markets for this product? - We now expect the launch of the Župa chemi-cal industry, where our product will be the base raw material for products copper salts of the finest quality and thereby facilitate the com-pany’s sales on the European market. In the meantime, we have registered our copper pro-duct according to the EU’s REACH regulation. In that way we also became a supplier of a large manufacturer in England, for which we created a product defined according to their standards and reactor furnaces for the production of salt.

► Your recycling plant for electronic and electrical waste is the only one of its kind and the largest in the Balkans. How much is the importance of recycling this type of waste recognised in the region? - We have a facility that combines the recyc-ling of cooling appliances and other electro-nic waste in a way that is presented in this industry by BAT (best available technology)

at this point in the whole world and is unique in Southeast Europe. Unfortunately, here awa-reness of the importance of these types of ha-zardous waste is low, but our goal is to raise it and quickly approach neighbouring countries

that are several steps ahead of us and then other European coun-tries, which are considered far more advanced in this sense.

► In June the European Society for Quality Research (ESQR), an organi-sation based in Geneva, presented you and another company from Serbia with the award for best practice and quality of work. How important are innovation and the introduction of best practices for the competitiveness of local companies that wish to do business on the global market? - Innovations are probably one of the most important elements for the competitiveness of domestic enterprises on the global market. Systems that can be taken and copied from Europe, from ordered companies, cannot be implemented fully in our country. You must always be creative and adjust all processes in the company towards your aim. The award we've received brings us great satisfaction and recognition that we are not making mista-kes in the processes we use and that gives us strength to go on. It is also confirmation that our work in the field of environmental prote-ction is recognised at the European level. ■

Accountable to Nature and Self

INTERVIEW

Here awareness of the importance of these types of hazardous waste is still at

a low level, but our goal is to raise it

Jugo-Impex continually invests in equipment and innovation, which allows it to hold a sovereign position as the leading company in

the management of hazardous and non-hazardous waste

VUJADIN ŠĆEKIĆ

general director of Jugo-Impex


GDP in 2012 and have invested over €20 billion, crea-ting over 95,000 new jobs. The latest data will be pu-blished in the 2014 White Book.

Most FIC members hail from the European Union, with the remainder coming from ot-her countries - ranging from the U.S. and the Russian Federation, to the Pe-ople's Republic of China.

FIC members also include dome-stic companies with majority foreign ownership. National consultancies and companies representing foreign

interests can also join, regardless of their form of esta-blishment.

FIC formulates its position through an active de-bate between its members and promotes only those

The Foreign Investors Council (FIC) is an inde-pendent platform which, through a dialogue with the authorities and the provision of con-crete reform proposals, improves the busine-

ss climate in Serbia. FIC promotes the principles of sound business ethics and modern corporate governance, both within the organization itself and in the wider environment.

The Council was founded with the help of the Organization for Eco-nomic Cooperation and Development (OECD) - the Investment Compact for SEE.

According to the latest data, the number of FIC members grew from its original 14 founding members to 130 companies, which generated 17.5% of Serbia’s

The Foreign Investors Council (FIC) was founded in 2002 with a mission to “actively promote sustainable business environment through open dialogue with the authorities and other relevant stakeholders”, which it has been continuously fostered and documented in the annual White Book

True to its MissionFOREIGN INVESTORS COUNCIL

Recently adopted amendments to the Labour Law included 65% of the recommendations presented

in last year's White Book


business in three specific areas:"Pillars of Development" – comprising the infra-

structure, labour, real estate & construction sectors, where reforms could lead to multiple positive effects on the business environment.

Legal framework – consisting of a critical review of company law, competition and consumer protection, commerce, tax policy, etc.

Specifically related to individu-al sectors – presenting the legal fra-mework for each individual industry.

Regulatory issues are presented in separate chapters with a unique fourfold structure, namely: current situation, improvements, outstan-ding problems and the Council’s recommendations. They are accom-panied by an easy-to-understand review of the progress made in the implementation of the recommen-dations stated in the White Book.

The White Book defines a joint platform for representation of the association and a constructive tool for dialogue with the government and other stakeholders in promo-ting the FIC agenda.

ACTIVITIESThe FIC enables structured

communication between its mem-bers, with the aim of formulating common positions and proposals which are actively presented to important stakeholders. FIC insists on dialogue between high officials and experts, with the goal of ac-hieving greater and more efficient progress in improving the business climate in Serbia.

Six months after the public pre-sentation of the White Book, the Council has a regular annual con-ference entitled “Reality Check”, which took place for the fourth consecutive time this year. The

conference sees Serbian Government officials and FIC members discuss key issues relating to further advan-cement of the business environment in Serbia and the progress achieved since the White Book’s release.

Other regular FIC activities can be divided into three segments:

The first relates to analyzing existing regulation and its implementation. For instance, recently adopted amendments to the Labour Law included 65% of the

reforms which benefit the wider business communi-ty and not just certain companies or business groups. The Council advocates a stable and predictable busine-ss environment and a level playing field for everybody, as well as believing that the European integration process can aid these goals. It supports systemic re-forms which have the main goal of building an efficient public sector and state ownership, which would secure long-term macroeconomic stability. On the micro-level, FIC strongly advocates better and more consistent implementation of laws and the reducing of unnecessary administrative burdens.

GOALSFIC's goals are as follows: im-

proving the business development climate in Serbia, representing and promoting the shared opinions of its members in order to advance mutual interests and stimulate fo-reign direct investments, improving permanent dialogue with the Ser-bian administration and advancing the interests of the international business community in Serbia.

FIC is an active participant in the process of driving reforms and economic development, as well as being one of the crucial stakehol-ders and reliable partners of the Serbian government and internati-onal organizations.

WHITE BOOK The White Book is the crowning

achievement of the consultation processes that is published each year and through which FIC mem-bers compile a comprehensive review of the business climate in Serbia and provide recommenda-tions for its further improvement. The White Book contains a review of tangible and applicable soluti-ons for overcoming administrative hurdles, which are publicly presented each year and are the subject of an open dialogue between FIC members and the go-vernment, in the presence of esteemed public figures, representatives of the business community and civil society.

The White Book offers a set of economic policy priorities, as identified by the foreign investors, but additionally reveals suggestions for the ease of doing

FIC strongly advocates better and more consistent implementation of legislation and the reducing of

unnecessary administrative burdens


27a Neznanog junaka Str.11040 Belgrade, SerbiaT +381 11 3679 230F +381 11 3679 231E [email protected] www.interallis.com

Petrikić & Partneri AODin cooperation with CMS Reich-Rohrwig Hainz

Cincar Jankova 3 | 11000 Belgrade | SerbiaT +381 11 3208900 | F +381 11 3208930 E [email protected] | www.cms-rrh.com

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Petrikić & partneri AODu saradnji sa CMS Reich-Rohrwig Hainz

Cincar Jankova 3 | 11000 Beograd | SrbijaT +381 11 3208900 | F +381 11 3208930 E [email protected] | www.cms-rrh.com

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culture Committee, Leasing & Insurance Committee, and Telecommunications & IT Committee.

Considering that liquidity is one of the burning issues in Serbia at the moment, FIC has formed a working group on the implementation of the Law on Payment Deadlines, with the aim of providing support to formulating and im-plementing this law.

Committees are established based on the interest of the members and in line with changes to the business environment. Active involvement in committee work is carried out on a voluntary basis, reserved exclusively to FIC members, while the establishment of sector-based

committee is based on de-mand from the represen-tatives of the specific in-dustry. These committees develop a direct dialogue with relevant government authorities and stake-holders, while providing their contribution to the introduction of European norms and standards in the domestic legislative framework.

By engaging actively in FIC committees, mem-ber companies have the

opportunity to propose solutions for overcoming existing obstacles to doing business, discuss regulatory issues relevant to the industry they represent, thus creating a common platform to be advocated for, and contribute to drafting the White Book.

Each FIC member can choose between the status of an active committee member or observer member status, depending on their involvement in a certain issue.

In order to ensure transparency and the more substantial involvement of FIC members in committees, their work is regulated in detail. The Board of Directors supervises the work of committees, as well as approving the decisions adopted by them and their stances on legi-slative issues. ■

recommendations presented in last year's White Book. The second pertains to active participation in prepa-

ring new laws and launching individual advocacy initiati-ves. Since the publishing of the 2013 White Book, a total of 13 draft laws have been analyzed and 22 individual advocacy initiatives have been forwarded to various mi-nistries.

The third segment relates to systemic and regular communication with all important stakeholders, through roundtable discussions, presentations and participation in relevant initiatives and forums.

In line with its mission, the FIC operates through re-levant sector-based and cross functional commi-ttees, reserved only for FIC members, spelling out specific positions on respective areas of expertise with the aim of jointly analyzing the legal framework and providing proposals for overcoming relevant legal obstacles.

FIC committees usu-ally provide commenta-ries on new draft laws and propose amendments to existing laws, as well as formulating specific proposals and materials. The FIC executive team provides regular administrative support to the committees and coordinates their work.

FIC committees initiate and develop a direct dialogue with relevant government authorities and important sta-keholders (like the Delegation of the European Union), while promoting their stances and giving proposals for advancement of the business environment. Each FIC com-mittee has a president and vice-president, who are elected by committee members and given a two-year mandate.

FIC currently has eight active committees – cross-se-ctor committees like the Legal Committee, Tax Commi-ttee, Human Resources Committee and Anti-Illicit Trade Committee, as well as sector-based ones – Food & Agri-


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Uz usluge revizije, poreskog i finansijskog savetovanja koje pruža KPMG, brže se stiže do realizacije vaših poslovnih planova. Najvišim svetskim standardima u struci već godinama održavamo reputaciju pouzdanog poslovnog partnera brojnih domaćih i svetskih kompanija, finansijskih institucija, ali i vladinih agencija i javnih institucija.

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Guided by the principles of res-ponsible banking and utmost care for clients, ProCredit Bank has endeavoured to give its full

support to the further development of Ser-bian entrepreneurs, businessmen and far-mers since its very inception in Serbia. “Our advisory approach to each individual client and deep understanding of their busines-ses and the challenges they face has made it possible for us to support them. One of the best examples of our business practice lies in providing quality assessments of a client’s credit worthine-ss, which entails the bank first getting to know that client’s bu-siness, business model and mar-ket position, followed by careful analysis of all financial indicators and an assessment of the risks associated with their businesses. Based on that, the bank can ascer-tain an adequate level of credit, present the client with the risks associated with the-ir business and suggest what needs to be done in that respect. I often say that there is no support without understanding, whi-ch is why our approach is different. We visit our clients in their surroundings and get to know them as entrepreneurs and human beings, because their vision, drive and abili-ty cannot be discerned from balance sheets alone. This is not your typical run-of-the-mill cushy banking, but rather entails an in-

depth approach which enables us to look at business ideas from every possible angle. By analysing our clients’ businesses, we are able to ascertain a possibility of error in their decision making process and business operations, and hence advise them on how to increase their market competitiveness – especially considering the fact that the le-vel of competitiveness will grow once the EU market is fully opened,” says Svetlana Tolmačeva Dingarac, President of the Exe-cutive Board of ProCredit Bank.

► Since ProCredit Bank is the only Ger-man bank operating in Serbia, could you shed some light on how German inve-stors view Serbian companies?- German investors certainly see big inve-stment potential in Serbia. The positive features of Serbian companies are quality workforce (professional staff), work ent-husiasm and willingness to work hard. In comparison to other countries in the re-gion, Serbian businesses set themselves apart thanks to their high level of good, qu-

ality management. What needs to be addre-ssed additionally is the culture of long-term planning. Also, considering the European integration process, Serbian legislation needs to start complying with European laws, which will result in a better environ-ment for investors and facilitate doing bu-siness. One of the most important challen-ges the Serbian economy will have to deal with once it joins the EU market is the modernisation of business operations in terms of their environmental impact. Pro-

Credit Bank is especially eager to support investments in so-called 'green financing' and, by so doi-ng, support the competitiveness of the Serbian economy.

► What do you think the future of the Serbian economy is goi-ng to be like?- Small and medium-sized en-

terprises are undoubtedly the future and the backbone of the Serbian economy, as well as the creators of new jobs. In order for that to happen, you need to moderni-se, cut back on unit production costs and be mindful of energy efficiency and busi-ness standardisation. That's why having financial support that won't be too much of a burden, but would rather positively contribute to their responsible business behaviour and quality growth, is so im-portant to them. ■

We do not do armchair banking, but rather we strive to get to know our client as an entrepreneur and as a person, because someone's vision, enthusiasm and ability cannot only be seen through a balance sheet

Banking is Field Work

INTERVIEW

SVETLANA TOLMAČEVA DINGARAC

President of the Executive Board of ProCredit Bank

Small and medium-sized enterprises are the undeniable future and backbone of the Serbian economy. Through loans for energy efficiency we support their

investments in more productive, and thus more competitive, production


in Serbia. As a leader in the field of oncology, we are particularly focused on issues related to the quality of hospital care, from the organising of hospitals themse-lves, to the quality of treatment. In addition to this, we strive to contribute to strategic planning and impro-ving healthcare strategies. Healthcare is a very com-plex area and each country has its specific problems and limitations. We are guided by the belief that the nation's health should be the top priority and with such a mission we work committedly with all the co-untries in which we operate, taking into account all the specificities and challenges we face.

► What are the key elements of effective healthca-re and what are the ways it is advanced? - There are no universal solutions or unique and sim-ple ways to achieve an optimally effective healthcare

system, because each country is

Roche is the global industry leader in inno-vation and the largest biotech company in the world. As one of the leading pharmace-utical companies in Serbia, Roche seeks to

use its global leadership to demonstrate the effecti-veness of the registration process of modern therapy and continuously contribute to the improvement and development of the health system. For many years Ro-che has provided patients in Serbia with cutting-edge therapies in oncology, virology, rheumatology and ne-urology under the shortest possible deadlines. At the same time, the company is working to improve the he-althcare system and find the best long-term solutions through the transfer of knowledge and experience.

► How do you assess your cooperation with health institutions in Serbia and how is this cooperation realised? - We have very correct cooperation with all key factors in Serbian healthcare and we strive to ensure our pre-sence is useful for patients and healthcare workers

As one of the leading pharmaceutical companies in Serbia, Roche strives to provide patients with the most

advanced therapies, and participating with its knowledge and experience to

the continuous improvement of the local health system

Health is Our MissionINTERVIEW

ANA GOVEDARICA

CEO of Roche d.o.o. Serbia

Swiss pharmaceutical company Roche is a leading pharmaceutical company with joint strengths in diagnosis and therapy. Roche is the global industry leader in innovation and the largest biotech company in the world that offers an innovative therapeutic option in oncology, immunology, infectious diseases, ophthalmology and neurology. According to data from 2013, the Roche Group employs more than 85,000 people and annually invests 8.7 billion Swiss francs in the research of new therapeutic options, achieving a turnover of 46.8 billion Swiss francs. American company Genentech is a wholly-owned subsidiary of the Roche Group and Roche is also the majority owner of Chugai Pharmaceuticals in Japan.

GLOBAL LEADER IN INNOVATION


a specific case. However, there are models of well or-ganised healthcare, quality management of resources, long-term planning and nurturing the necessary level of transparency in decision-making, which can ser-ve as experience of confirmed good practices. When a decisi-on-making system is organised to serve the long-term health of the nation and encourages the promotion and sustainable development of health, rational and planned use of resources and training of health workers, then that task includes all rele-vant structures and places the profession in a position to make the maximum contribution.

► What are the key factors for the efficient functioning of the healthcare system when it comes to the profession? - A high level of expertise, knowledge and dedication is not enough if the profession does not have an impact on decision-making. In countries that have healthca-re at a high level and a health system that thinks and plans ahead, the profession is fully res-pected and has transparent and dyna-mic dialogue with all decision making structures. There is no other way to properly manage time, which is a key factor in the successful treatment of se-rious diseases, and identify in advance the problems that will occur and to en-sure timely preparation for them.

► How does Roche contribute when it comes to the overall improvement of the pharmaceutical indu-stry in Serbia? - When it comes to the pharmaceutical industry, for pharmaceutical companies it has not been enough for a long time just to have effective medicines. Although

the global trend is that health is under significant fi-nancial pressure and that there is also a need for better treatment of the outcomes on the rise, it is the local en-vironment that determines the business philosophy in

each particular country. There-fore, in recent years Roche has become a very active member of the business community in Ser-bia. Starting from the associati-on of innovative manufacturers of medicines, INOVIA, in which Roche made a significant contri-bution to better understanding the importance of this industry for better treatment of patients, as well as improving the general standards of treatment, and to membership in the Foreign In-vestors Council in Serbia. Roche seeks to identify key issues in the health and pharmaceutical indu-

stry, with the aim of efficiently overcoming and making a greater contribution to overall economic recovery.

► To this end, Roche also became one of the foun-ders of the Swiss-Serbian Chamber of Commerce.

- Establishing this chamber is an expre-ssion of confidence in the future of Serbia. We, as representatives of Swiss business in Serbia, together with local businesses, expect further expansion of economic cooperation between the two countries to contribute to increasing investment and creating new jobs in Serbia. Swiss companies are well acqu-ainted with the Serbian market, as Swi-

tzerland is among the top ten investors in Serbia and economic relations between the two countries have huge potential for further development. I am convinced that the Swiss-Serbian Chamber of Commerce will help ensure this potential is utilised as much as possible, for the betterment and future prosperity of both sides. ■

We have very good cooperation with all key factors in Serbian

healthcare and we strive to make our presence useful

for patients and healthcare workers in Serbia

Roche's concept of personalised medicine is focused on providing treatment and diagnostic procedures that provide significant improvements in the health, quality of life and survival of patients. It is a concept that is based on providing treatment "tailored" to specifically defined groups of patients. In certain diseases Roche’s diagnostic tests can identify those patients who best respond to a particular therapy. This means that doctors can accurately determine where, when and how to administer a certain drug. All new medicines that Roche develops are in correlation with diagnostic tests, which contributes significantly to the effectiveness of treatment.

Roche has contributed significantly to global health in the last 100 years. On the list of essential drugs recommended by the World Health Organisation, which includes antibiotics, antimalarial and cytostatic agents, there are 24 drugs that were developed by Roche. Roche in Serbia is working with Galenika in the area of licensed production of several of its products. Cooperation between the two companies in other forms is almost half a century long and drugs made by Roche have been available to patients in Serbia for almost 80 years.

PERSONALISED MEDICINE PARTNER TO THE HEALTH SYSTEM


Responding to the burning issue of illicit trade, in 2014 the FIC formed its Anti-illicit Trade (AIT) Com-mittee, with the goal of supporting and assisting the government in establishing, maintaining and coordi-

nating an efficient system of adequate decisions and measures to fight illicit trade and the grey economy in Serbia.

The grey economy has a severe impact on the entire so-ciety, the economy in general, as well as the state budget. Annual losses to the Serbian budget are estimated at arou-nd €3 billion. That is why we are convinced that this pro-blem should be tackled with full attention and that redu-cing the grey economy would contribute to creating a more favourable business climate, which would attract further foreign investments but also provide domestic companies in Serbia with a chance for sustainable growth. We wel-come the announcement of the Serbian Government to fight against illicit trade by all means and by doing so to “return” €100 million of revenue back to the state budget only this year, and by 2017 between 500 and 700 million. The FIC is ready to help in this process by sharing experiences and offering proposals from its An-ti-Illicit Trade Committee.

The grey economy survives as a result of the overlapping competencies of different inspections, unclear regulations

and loopholes that enable the transferring of responsibility from one institution to another, a lack of proper supervisi-on and accountability of public servants. We believe that a long-term solution to this problem is putting in place a bu-siness-friendly regulatory framework and supervising its implementation strictly. On the other hand, we see the esta-blishment of an efficient market surveillance system, with the improved work of inspections, as an immediate measu-

re to be conducted in the fight against the grey economy. The focus should be on ensuring better coordination between different inspections, with the purpose of responding swiftly and more efficiently tackling the problems faced by busine-sses. In that regard, we welco-me the announced reform of the inspections as part of the regulatory reform for 2014, as well as the proposed Law.

Recent changes to the Law on Tax Procedure and Tax Ad-ministration provide additional opportunities to suppress illicit

trade, but they need to prove their effectiveness in practice through strict and continuous implementation. Since the illi-cit trade in cut tobacco has caused budget losses of over €200 million since October 2012, the government’s determination to fight this specific issue is understandable and we fully su-pport it. The next step, in our opinion, is the more consistent application of tax regulations. ■

Curbing the grey economy would be a step forward in improving the business climate and enticing new investments, and the FIC and its Anti-Illicit Trade Committee would be ready to help the Government by sharing experiences and offering proposals

We Support the Government in Fighting the Grey Eeconomy

COMMENT

GORAN PEKEZ

President of the Anti-Illicit Trade Committee of the Foreign Investors Council(Japan Tobacco International)

The overlapping competencies of different inspections, unclear regulations and a lack of proper supervision and accountability

of public servants, are “feeding” the grey economy. The long-term

solution to this problem is putting in place a business-friendly regulatory

framework and supervising its implementation strictly


Tebodin is here to stay says Karoly Ecker, managing director at Tebo-din Hungary Kft. & Tebodin d.o.o. (Serbia), who believes that there

are many areas in which the company may grow its business in the region, either ba-sed on its own expertise or joining forces with its sister companies from the Bilfin-ger Group.

► Which segments of the consulting and construction markets is Tebodin focu-sed on in Serbia?- Industrial developments are currently our main focus. However, our involvement in real estate (especially in complex – residential and office) projects is growing. In line with Tebodin's core services in other countries, our aim is also to gain a market share in oil & gas and energy related projects.

► Are your partners exclusively foreign companies that operate in Serbia or do domestic investors reco-gnise the importance of highly professi-onal project management and constru-ction management?- Our main clients are private foreign dire-ct investors (FDI) from various industries, who value both the international quality of our services and our local knowledge. Besides this, we are engaged by major do-mestic investors as well, who are interested in receiving engineering and consultancy

services of the same level as similar foreign investments. We have recently made a very significant shift into the real estate market, proving our reliability and engineering ex-cellence as project managers on a very pro-minent commercial development in Bel-grade: A Blok Development (Blok 67a, New Belgrade). Through our Client-focused orientation and dedication, as well as the expertise of local staff, we have been able to go above and beyond the call of duty and our results really do speak for themselves.

► How much are administrative proce-dures in Serbia in line with the needs of companies like yours?

- We mainly establish direct contact with the administration when we help our Clients in their investment projects. We see the signs – at least the intent – of improve-ment, but the actual result may significan-tly differ between authorities, within regi-ons and local municipalities. We (hence our clients) have very good and quite negative experiences as well, fortunately more on the positive side. Implementing the recent improvements in legislation may still take

a lot of time and effort before they become smooth working practice.

► Could you conclude from the dynami-cs of your work that Southeast Europe is slowly emerging from the crisis?- The crisis is still there in many countries of Europe. Southeast Europe in particular is suffering a lot. However, the potential to grow remains in the mid-term. It is hard to predict the political and economic effects of the recently developing conflict in Eastern Europe, not just to the SEE region but for the entire EU. Tebodin continues to con-sider Serbia (and the whole SEE region) a promising place for our engineering and

consultancy business, considering that economic recovery and EU accession is only a matter of time. This is not just Tebodin's idea, but also the extract of several discus-sions with our global clients who represent more than 200 of the lea-ding companies all over the world.

► Does your commitment to focus on projects related to oil, gas and energy also relate to the regional market?- The oil, gas and petrochemicals market is at the core business of Tebodin worldwide. The same as in the field of power genera-tion, we even have the possibility to join our competences with specialised sister companies from the Bilfinger Group. We aim to expand Tebodin’s activities to these business segments in the region as well. ■

Although the crisis is still present, Southeast Europe has potential and Tebodin values Serbia and the region as promising markets in which it currently works with foreign direct investors, as well as domestic clients who value its top notch engineering and consultancy services

Investing in Future Progress

INTERVIEW

KAROLY ECKER

Managing director Tebodin Hungary Kft. & Tebodin d.o.o. (Serbia)

We have recently made a very significant shift into the real estate market, proving our reliability and

engineering excellence


Serbia is recognised as a country with great potential when it comes to food and agriculture, but to realise this predisposition the country lacks a predictable and stable legal environment. A good illustration of this problem is

the Food Safety Law, which is largely harmonised with the rele-vant EU legislation, but its consistent application, as well as the development of by laws that should regulate its particular fields, is still in its early stages. We hope that in making the announced amendments to the Law, the Ministry will consider the remarks presented by industry on several occasions to date, including pro-posals that were formulated in the work of our committee. This would create a predictable, transparent environment that would bring certainty to the players operating in these areas.

Another very important issue in this domain is that of applying quality standards and market controls. The whole industry talks openly about this problem, but unfortunately very little mo-vement has been seen in a po-sitive direction since we began monitoring this issue as a com-mittee. We hope that the esta-blishment of a national reference laboratory in Batajnica, which would initially deal with the control of milk quality, will contri-bute to regulation of the market for this important food product. At the same time, it would be good for that to serve as guidance for the executive authorities to establish this same system for other important food groups without delay, which would contribute to improving consumer protection, but also establish order on the market and among manufacturers.

For years the FIC Food and Agriculture Committee has also

been highlighting the importance of creating a predictable medi-um-term plan of subsidies in agriculture.

When it comes to the area of subsidies, which most directly in-fluence the decisions of manufacturers, the Food and Agriculture Committee is primarily of the standpoint that we should establish a permanent and transparent solution that will enable manufactu-rers to plan their activities, through four-year strategies for large agricultural production sectors. We also consider that constant changes to the system – from a regime of direct distribution to crop farmers per unit of product per hectare, to the model of granting subsidies per hectare of registered surface area – represents an example of creating confusion among the beneficiaries of subsi-

dies, but also a lack of predictabi-lity, which represents a key factor in the planning and implementati-on of activities in the agricultural sector. And finally, such a system does not encourage productivity, which will be essential to us at a time when our country becomes a member of the World Trade Or-ganisation, when subsidies will be phased out. Therefore, without hesitation, right now we have to

work on preparing the market for that modified mode of working, in order to maximise all of the advantages provided for us in the country by our nature and tradition of agricultural production.

It is clear that these are a major and important moves, but we believe that together, through close cooperation between working bodies like the FIC Food and Agriculture Committee and relevant decision-makers in the country, we can accelerate the reform of this important sector and restore the role it deserves in the eco-nomy of our country. ■

Although there is significant potential in agriculture and food production, Serbia lacks a predictable environment and high quality, applicable regulations. A good example of this is the Law on Food Safety, which is largely harmonised with EU standards, but its implementation is still in the early stages due to a lack of bylaws

No Competitiveness Without More Predictable Environment

COMMENT

MILICA STEFANOVIĆ

President of the Food and Agriculture Committee of the Foreign Investors Council (Coca-Cola Company-Barlan S & M Ltd.)

If the national reference laboratory in Batajnica finally starts to, initially,

deal with quality control of milk, that should serve as guidance for the executive authorities to establish this same system for other important food

groups without delay

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The Foreign Investors Council welcomes the adoption of amendments to the Labour Law and is pleased to note that this legislation includes 65 per cent of recommenda-tions from last year's FIC White Book. This relates to key

recommendations, amongst which are extending the duration of fixed-term employment contracts, calculating severance payment only for the period spent with the last employer and limited exten-sion of the application of industry-wide collective agreements.

Amendments to the Labour Law will enable the better and more effective management of human resources, easier engage-ment and planning for the hiring of new employees. The FIC be-lieves that these changes will improve the general environment for doing business significantly and make Serbia more compe-titive for new investments. However, adoption of this new, mo-dernised Labour Law should be accompanied by its consistent application. Only in this way can the state secure equal conditions for all market participants.

The modern Labour Law is just one step towards adapting Serbia to the increasingly com-plex and rapid changes on the global labour market.

Changing the role and method of functioning of today's business systems, as the fundamental subjects of economic activity, is conditioned, among other things, by radical chan-ges in the role and importance of those employed within those systems. This brings with it a need to provide contemporary and high-quality human resources that are able to participate in achieving the goals of business and development policies, and to do so under conditions of great economic uncertain-ty, rapid technological change, dynamic transformations and

changes in property relations. Instead of the current dominance of natural and financial

resources, the developed countries of the world are now dire-cting their development objectives and strategies towards the dominance of human resources, which consequently requires changes to the current education system and the creation of a functional curriculum appropriate to the changing economic conditions. This kind approach is also beginning to be evident in our country, although we are still at the very beginning when it comes to its application. However, it is good that we have recognised new trends and want to accept them.

It is a fact that in the past 20 years we have done little on the expansion of new knowledge, skills and competencies at all levels of society. Such an approach results in overall incom-

petence when it comes to the new demands of the market. The education system in Serbia is adapting very slowly to the needs of companies that do bu-siness here, whether that be do-mestic or foreign employers.

This problem is particularly evident when it comes to the qu-ality of local managerial staff, of

which there are very few. That’s why foreign companies, and increasingly local companies too, are forced to seek professio-nals from abroad with new knowledge, experience and appro-aches, in order to be as competitive as possible and maximise the likelihood of achieving good results.

In order to overcome the problem of a lack of human re-sources for strategic leadership positions, Serbia must addre-ss the issue of the brain drain and modernise the education system to bring it into line with the needs of the market. ■

We believe that amendments to the Labour Law, which incorporate a large part of the recommendations of the Foreign Investors Council, will make Serbia more competitive for new investments. In order for good legal solutions to yield results in practice, care must be taken to ensure its consistent application

New Labour Law Will Open the Possibility for Better Employment

COMMENT

DEJAN JEČMENICA

President of the Human Resources Committee of the Foreign Investors Council(Wiener Städtische osiguranje a.d.o. Belgrade)

In order to overcome the problem of a lack of human resources for strategic

leadership positions, Serbia must address the issue of the brain drain

and modernise the education system


An incoherent legal system, whi-ch provides space for different interpretations, leaves investors uncomfortable and keeps them

insecure, says Darko Spasić, managing par-tner at Partnership law society Spasic & Partners.

► What major challenges do foreign in-vestors face in Serbia, in terms of legi-slation? - Problems occur in the sense that the same regulations are interpreted and implemen-ted differently by different institutions; that, due to the personnel changes in ad-ministration, there is a slowdown in the work and an interruption in the implementation of obligations towar-ds foreign investors; that the inter-pretations of the administration most often to not provide a clear answer, but rather only quote the regulations; that interpretations are given that are often contradictory to others and really depart from the letter and spirit of the regulations.

This raises discomfort among investors with regard to the transparency and stabi-lity of conditions of operations.

► Where is the lack of bylaws and the adequate procedures most pronounced when it comes to business operations? - In the process of adjusting bylaws, one may notice delays, even solutions, that co-uld be treated as a consequence of insuf-ficient analyses and understanding of the

real economic and living conditions and problems may be observed. Legislative activity, primarily and secondary alike, may not be reduced to a simple transferring of the experiences and solutions of others.

The need for vigorous activity in the sense of secondary legislation is observed in the fields of civil engineering, environ-mental protection, protection of competi-tion, securities, property rights, sports etc.

It should particularly be considered that the secondary legislation must have as a goal facilitating simple and clear implementation of regulations without unnecessary compli-cations and multiplication of conditions.

► How important is reform of the judi-cial system for the creation of a better business environment in Serbia?- A completely independent, professional, efficient, morally clear and stable and well organized judicial system of the highest le-vel of quality is indispensable for the good quality of the business environment in any country.

The business environment must be such that no investor may objectively have doubts that his potential dispute with any person will be treated in the same and equal way as any other dispute between any other

two persons before the courts of law in Ser-bia; that the dispute will be reviewed and adjudicated by the highest professionals; that the dispute will be finalised and the jud-gment implemented in very short periods of time; that the process will be independent of any influence and transparent in every respect and that the organizational changes in the work of the courts will not result in any loss of time or trust in the process.

► To what extent are amendments to the Serbian Labour law in line with Europe-an standards? - The labour law must seek a good balance

between the legitimate needs of em-ployers for efficiency and respect of economic criteria with the social cir-cumstances. It must be kept in mind that a labour law that does not take into consideration the interests of de-veloping companies (employers) ine-

vitably leads to the decrease and absence of investments, which only increases unem-ployment and multiplies social problems long-term.

At the EU level, the commission adopts minimal standards below which the natio-nal standards may not go. The most recent amendments to the Labour Law are not contrary to the minimal standards. If com-pared with the national regulations of EU countries, those are not far from the stan-dards set under such legislations, but it also may be concluded that employers are pla-ced in better positions in some aspects. ■

In harmonising its legal system with that of Europe, Serbia should bear in mind that the chosen solutions need to be coherent and guarantee a stable and transparent business framework

Laws Should Not Contradict Each Other

INTERVIEW

DARKO SPASIĆ

Managing Partner, Partnership law society Spasic & Partners

Legislative activity cannot be reduced to a simple transfer of the

experiences and solutions of others


Natural disasters caused by increasingly volatile cli-mate changes are one of the biggest challenges to the insurance industry. It is an additional obligation to reconsider the existing regulatory environment on

the market, to set fair and level playing field conditions, but also to create some future products to respond to such accidents. During the recent floods in Serbia we witnessed human trage-dies with irrecoverable losses. Many people lost their property, while many entrepreneurs saw their fixed assets devastated. This more than ever demonstrates the necessity of higher insu-rance penetration of the Serbian market, in order to insure the property of private households, as well as the property of busi-ness and insurance for business interruption.

We believe that securing a level playing field would be an im-portant stimulant for market growth. The Government should undertake reform of insurance re-gulations via integration of the in-surance companies that practice life and non-life business separately, via transition to underwriting a model from the tariff system, via changes in MTLP (regulations related to motor vehicle insurance).

A positive change in the insurance domain in the last few mon-ths is liberalisation through the enabling of group private health insurance. On the other hand, no significant progress was achie-ved in the last year and the main reason behind that, according to our view, was the delay in publishing and adopting the new insu-rance law, which was finally presented to the public at the end of May this year.

Positive developments in leasing are clarification of the taxa-tion rules for financial and operational leasing, as well as more favourable VAT treatment in real estate leasing.

Furthermore, due to regulations in the CIT law, the acquisition of fixed assets under a financial lease contract was a less appealing

alternative than, for example, financing asset acquisition through a lending arrangement. For years leasing companies advocated for the elimination of this discrimination, proposing changes to the CIT Law in a way that would allow utilisation of tax credits, re-gardless of the method of financing. However, without any public discussion, the tax credit provided by article 48 of the CIT Law was abolished as of 1st January 2014. After the abolition of this tax credit, leasing companies can now offer their services on the same level playing field as other sources of financing, with regarding to the aforementioned topic, while a tax credit for all investments, regardless of the method of financing, would have been the pre-ferred solution for the leasing industry.

There is a significant difference between the development of the leasing industry in Europe and in Serbia. The data speak for itself: according to research conducted by the European Central

Bank (ECB), 32% of SMEs in Europe have used leasing, rental and facto-ring, as well as 59% of major com-panies, which is significantly more than any other form of financing. In Serbia, according to the data issued in a publication as part of a USAID project for better business conditi-

ons, only 1% of SMEs are using leasing as a financing option. In order to improve this situation, the legal and taxation framework for the regulation of operative leasing and the VAT treatment of interest have to be changed.

One positive example of the Serbian economy being supported through leasing is the field of agriculture. In 2013 the leasing in-dustry had growth of nearly 40% in agricultural vehicles and ma-chines, amounting to €25 million. In order to increase leasing in agriculture development, the FIC supports the adopting of amen-dments to the Law on the Stimulation of Investments in Agricul-ture and Rural Development, in order for financial leasing to be included within this stimulus package for agriculture. ■

In 2013 the leasing of agricultural vehicles and machines grew by 40%, to €25 million. The FIC is advocating for the initiation of amendments to the Law on the Stimulation of Investments in Agriculture and Rural Development, with the aim of including the financing of leasing within this stimulus package for agriculture

Leasing Could Fuel Agriculture Growth

COMMENT

CHRISTOPH LEITNER

President of the Leasing and Insurance Committee of the Foreign Investors Council(VB Leasing d.o.o. Beograd)

The recent floods showed the necessity for higher insurance

penetration on the Serbian market


Great dedication, hard work and a focus on continuously impro-ving offers, especially in the area of service quality, come to the

fore fully precisely during economic down-turns, when the volume of demand for le-asing services is narrowed, says Nebojsa Janićijević, CEO and President of the Exe-cutive Board of Intesa Leasing Belgrade, one of the country’s few leasing companies operating successfully.

► In your opinion, what factors determi-ned such results? - We supported many lessees in the earliest stages of their business, together sharing the burden of the altered economic environment, endeavo-uring to show understanding for the difficulties in servicing obliga-tions, seeking with them solutions to the problems. We were also the-re for them when they faced the consequences of the recent floods and offered them incentives to help overcome this difficult situation. I believe that it is precisely this kind of recent partnership model of cooperation with our clients, as well as great attention to every se-gment of the business, that were key factors that led us to the position we now hold.

► How, on the basis of examples from your own operations, would you assess the potential growth of leasing in the

traditional sectors of equipment lea-sing and commercial vehicles, and in the fast-growing sectors of agriculture and energy efficiency?- In the transport sector, which is deve-loping day by day, leasing is recognised as an important form of financing, which opens up space for the further growth in-vestments. In this segment Intesa Leasing is one of the most represented financiers of the procurement of new commercial ve-hicles, with around €12.8 million invested in the last year, and we are all increasingly present in providing support for the purc-hase of tourist and city transport buses. In this regard I also believe that the project to revive production at Ikarbus will impact on growth in demand and thus further incre-

ase the investments of Intesa Leasing. Our focus on small and medium-sized enter-prises, which make up 70% of our clients, has enabled us to be a leader for many ye-ars in the financing of manufacturing equ-ipment, primarily for family businesses focused on exports. When it comes to agri-culture and energy efficiency, investments are unfortunately below our expectations,

but I believe that the situation will change significantly in the years ahead.

► To what extent have our country’s law-makers and the market recognised the benefits of financing real estate through leasing, compared to traditional mort-gage loans? - The latest amendments to the law on VAT created all the conditions for real estate fi-nancing through leasing, which Intesa Lea-sing remains the only company to offer on the market. However, the difficult situation in the housing market prevents the expansion of leases in this segment and the achieving of indicators of developed markets, where the purchase of real estate via leasing comprises 50% of total investments in the sector. Nonet-

heless, in collaboration with the Bu-ilding Directorate of Serbia, we have managed to implement the financing of parking spaces in the Belgrade su-burb of Stepa Stepanović.

► In the EU leasing is an impor-tant driver of economic growth. How much is this possibility uti-lised in Serbia? - Statistics at the European level

show that up to 20% of all purchases of equipment in the SME segment are con-ducted through leasing, while in Serbia the proportion is only 2-3%, which clearly in-dicates the great potential for the develop-ment of the leasing market in the country. I expect that our continued approach to the EU will lead to more intensive following of European trends in this area. ■

In the transport sector, which is growing day by day, leasing has become an important form of financing, which opens up room for the further growth of placements

In Crisis Quality is Recognised

INTERVIEW

NEBOJŠA JANIĆIJEVIĆ

CEO and President of the Executive Board of Intesa Leasing Belgrade

Our focus on small and medium-sized enterprises, which make up 70% of our

clients, has enabled us to be a leader in the financing of manufacturing equipment, primarily for family businesses focused on exports


The role and influence of the Foreign Investors Council, and particularly its Legal Committee, continually grow and stren-gthen. This is the consequence of three parallel processes and influences: the first is reflected in the growing number

of new FIC members; the second is linked to the fact that legislative activity is increasing from year to year, in accordance with Serbia's EU and European integration; and the third relates to the attitude of the government and state authorities, which increasingly recognise the FIC as a reliable partner tasked not only with protecting the interests of foreign investors, but rather also highlighting the possibilities in di-fferent segments of improving the legal framework in Serbia for the benefit of all, including the public sector and the government, as well as the private sector.

During this year the FIC Le-gal Committee has taken an acti-ve role in commenting on draft laws and other regulations and in proposing new solutions related to regulations under the jurisdi-ction of the committee. However, despite the undisputed good will and intentions of the government to listen to our proposals and suggestions, in certain cases the deadlines by which the FIC was expected to present its views on systemic laws were too short, which prevented the formulation of an adequate stance. Although we fully understand the need for quick and effective reforms in a great number of areas, our position is that for all laws, and primarily systemic laws, enough time must be set aside for a public debate and the submission of quality comments and suggestions from all relevant stakeholders. Such an approach would contribute to laws being fully and efficiently implemented from the first day of the-ir adoption. Likewise, it is very important, during the adoption of new laws or significant amendments to existing regulations, that the susta-inability and urgency of deadlines provided for the adoption of bylaws

is taken into account, and that the work of all agencies and institutions that need to adopt these regulations is coordinated. This is particularly because in the previous period there were situations in which impor-tant laws were adopted that, practically could not be applied because accompanying bylaws were even non-existent or not adopted on time.

With most regulations that were adopted recently or are awaiting adoption soon, significant progress is evident in terms of the legislatu-re adopting the recommendations and opinions of the FIC Legal Com-mittee. On the other hand, we must also draw attention to the existen-ce of important pieces of legislation that have not changed or have changed only slightly, despite the fact that the Legal Committee has emphasised the necessity of changing them over an extended period of time. One such document is the Law on Foreign Exchange Operati-

ons, which is not only in the focus of the FIC and the Legal Commi-ttee, but also the entire private sector in Serbia, for many years. Despite some minor changes made to the law and some others planned for this year, we consi-der that it is necessary to exert further efforts and allow further liberalisation of foreign exchange operations for the mutual benefit of all market participants. More-over, problems have been identi-

fied in practice, related to different interpretations of the articles of this law by various government agencies, and thus it is also necessary to work on consistent and uniform application of this law at all levels of government. Finally, we would like to underline that the Legal Com-mittee plans to additionally step up its work in the following period and participate in proposing and commenting on the new regulations, as well as exercising a proactive approach in order to initiate regula-tory changes with the aim of providing comprehensive protection for all investors, and, thus, provide its contribution to establishing a good business climate for all market players in Serbia. ■

Although we fully understand the need for quick and effective reforms in a great number of areas, we consider that without a high quality debate and the possibility for all parties to give their suggestions and comments, we cannot reach lasting and applicable legal solutions.

Laws Should be Accompanied by High-quality Bylaws

COMMENT

RASTKO MALIŠIĆ

President of the Legal Committee of the Foreign Investors Council(Marić, Malisić & Dostanić o.a.d.)

The state authorities increasingly recognise the FIC as a reliable partner

tasked not only with protecting the interests of foreign investors, but

rather also highlighting possibilities in different segments of improving the legal framework in Serbia for the benefit of all


Since it was established in 2005, the Agency for Insuring and Fi-nancing Export (AOFI) has be-come a recognisable institution

among Serbian exporters as an institution that recognises the needs of exporters, res-ponding swiftly and operationally to their requests and proactively participating in solving the problems that exporters face in their operations, according to the model of similar institutions in the EU and the envi-ronment, says AOFI director Dejan Vukotić.

► How many clients does AOFI have to-day in the credit segment, insuran-ce and factoring, and how many Serbian companies today recognise the benefits of working with AOFI? - In the credit segment the agency cu-rrently has a portfolio of 156 clients with whom around €57 million have been invested. In the area of factoring services, the agency uses 50 clients who have purchased receivables in the amount of €31 million. According to the insurance of insuring exporters, the agency has 53 clients with secured turnover of €86 million. In the segment of guarantees, there are 10 active guarantees in total exports of €80 million.

Serbian exporters increasingly reco-gnise the role and importance of AOFI in fostering the growth and development of exports. Exporters have also recognised

the importance of insurance claims and therefore payments for losses per insured business. The agency diversifies its risk for insured claims through reinsurance with reputable reinsurance companies such as Atradius re and Nationale Borg.

► Do you intend to lower the threshold for the annual volume of exports, whi-ch prevented smaller companies from using the cheap loans you offer? - Recognising the importance of AOFI to growth and development, especially of exporting SMEs, the decision was bro-ught to reduce the threshold of exports

to €100,000, with exporters who had no exports in previous years able to apply pro-vided they have achieved corresponding proportionate amount in the current year by the date of the application.

► In what way does the AOFI provide new lines of credit and how much have they moved away from earlier announ-ced negotiations with international fi-nancial institutions on the collection of

additional capital? - The AOFI used credit lines previously, thus it is now negotiating with the relevant international financial institutions on the obtaining of lines of credit, which would allow an increase in the business activities of the agency, given the growing interest in our products. Contracting credit lines wo-uld allow the agency to follow the market conditions imposed on us by banking com-petition and respond to the needs of an in-creasingly dynamic market.

► You are one of the few organisations that is not a budget user, while you con-

tribute significantly to the budget. According to your estimate, how much will the AOFI contribute to the state budget this year? - Just on the basis of the obligation of companies founded by the Republic of Serbia to transfer at least 50% of profit to the budget of the Republic

of Serbia, up to 2014 the agency has paid the amount of RSD400 million. If we look only at 2014, for the first six months, on all bases, the agency paid into the budget the amount of RSD87 million and in the name of profit distribution an additional amount of RSD30 million will be paid. As the agency has achieved a net profit of around RSD214 million at just the six-month level, it is cle-ar that in 2014 the agency will contirubte a significant amount to the Serbian budget. ■

Serbian exporting companies are increasingly recognising the role and importance of AOFI in fostering the growth and development of export

Reliable Partner to Exporters

INTERVIEW

DEJAN VUKOTIĆ

Director of the Agency for the Insuring and Financing of Exports (AOFI)

Contracting new credit lines would allow the agency to follow market

conditions that are imposed on it by banking competition


The general recommendation of the FIC is that, when it comes to the conversion of rights to use into the right of ownership over construction land, the proposed solutions should take into account previous decisions of the Consti-

tutional Court and must be technically applicable. We have provided representatives of the Ministry with numerous concrete proposals on how to improve the existing draft and we are pleased to say that a good part of our recommendations have been accepted. I believe our constructive approach has been recognised and that, as a result, we have excellent communication with the relevant ministry.

However, it is with regret that I note that the government did not have the political courage to make a bigger step forward with proposed solutions in the Law on Planning and Construction. Here I am primarily referring to reta-ining the institute of conversion with fees, which in recent years has caused great damage to the construction industry and has caused considerable social tur-bulence. The FIC proposal, as well as other business associati-ons, is to withdraw from this in-stitute. The potential benefits to the state are too small compared to the complexity of the process and potential risks. On the other hand, the benefits of an easy and quick solution to this problem would be multiple.

It is often the case that laws are adopted through emergency pro-cedures. This approach carries the risk that some of the proposed solutions are not the best, or are not implementable. During the pu-blic hearing one could hear very dissonant tones about the proposed solution for the process of granting construction permits. With the regulating of complex areas, the focus should be on the quality of the solution, rather than the timing, regardless of the very real urgency.

Prior to adoption, simulations of the envisaged process should be carried and perceived deficiencies eliminated. If we do not do that now, we will be dealing with these issues indefinitely, which is preci-sely what's happening with the Law on Planning and Construction.

An implementable conversion process and efficient granting of construction permits are essential, but they are not sufficient con-ditions to launch progress on the real estate market and the overall construction industry in Serbia. A series of other laws should be pro-moted, such as the laws on mortgages, agricultural land and agricul-tural cooperatives, to name just a few. In addition to eliminating the existing problems and carrying out their normal functions, the state should adopt stimulating laws to help the real estate market, and thus the construction industry. Here I am primarily thinking of the

Law on Real Estate Funds (Real Estate Investment Trust - REIT). This law, along with the state’s additional activities, should reso-lve problems caused by an unde-veloped real estate market. In ad-dition to the Law on Real Estate Funds, which would regulate this field and eliminate the problem of double taxation, the state sho-uld implement further steps in order to bring real estate funds

to life in our country. The main goal of real estate funds is to increa-se the liquidity and transparency of the market, which would result in attracting new, institutional capital, overcoming the demanded rate of return, increasing construction activities, reducing the rates of rents and increasing the general level of economic activity. On be-half of the Foreign Investors Council, I would like to say that we will remain dedicated to advancing the business climate in Serbia, and add that the Serbian Government can count on the FIC as a reliable partner in this endeavour. ■

If the swift adoption of legislation becomes the norm rather than the exception, it may happen that we adopt proposals that are not only second best, but also not conductive. In the case of solving complex issues, it would be better to carry out the simulation process and avoid shortcomings before it is too late

Better a Tested Solution Than a Hasty One

COMMENT

NEBOJŠA NEŠOVANOVIĆ

President of the Real Estate Committee of the Foreign Investors Council (Jones Lang LaSalle d.o.o. Belgrade)

It is with regret that I must note that the government did not have the

political courage to abolish the institute of conversions with fees, which in

recent years has caused great damage to the construction industry and has

caused considerable social turbulence


UIn the sectors in which BPI is active, agriculture and real estate, we view Serbia’s com-petitive advantages to be geo-

graphical location, quality of labour-for-ce and quality of natural resources. These national competitive advantages we seek to be build-on in order to establish bu-siness specific competitive advantages, says Ronan Conroy, General Director BPI d.o.o., Agri Business Partner d.o.o.

► How can Serbia reconcile its objectives of liberalising the domestic mar-ket within the EU integration, whi-le simultaneously strengthening its local businesses?- Objectives regarding liberalising market places largely seek to en-sure competition of markets wi-thin a country, and specific to the EU within its boundaries which we all aspire to include Serbia. Liberalisations of markets bring benefits for both busi-nesses and consumers with the introdu-ction of opportunities for consumption and supply. Furthermore, this aspect of EU integration should be associated with awareness that EU integration affirms competence on Serbia itself for national economic policy. Such policy by the sta-te must seize opportunities arising from processes such as liberalization.

► In which aspects is Serbia competi-tive and what more should the state do in order to enable domestic com-panies to better compete in the region and beyond?- A welcome focus by all whom have an interest in the success of Serbian busine-ss, to include the state, would be to en-sure that national policy centres on the advancement and promotion of existing national competitive advantages and those of businesses; whereby we may then see new inimitable forms of com-

petitive advantage arising. Furthermore, the government and other interested bo-dies should continue to participate hea-vily in the creation of a viable, strong and credible brand for Serbia for promotion internationally.

► How would you evaluate changes to the legislation related to agriculture; how could the Serbian government help this sector be more competitive? - Specifically relevant for the agriculture

sector, we believe that the government must enact the legislation in relation to the Law on Cooperatives. As a Company with operations in other countries, and particularly relevant in Ireland, we have witnessed first-hand the benefits that a cooperative, in its true form, can offer. Such benefits are not alone for the agri-culture sector but also the local and na-tional economy. Present abuses of the existing legislation governing cooperati-ves represent fundamental abuses of the concept of cooperatives. Some present

operations which function under the guise of cooperatives represent opportunism by few instead of offering an opportunity for many. We believe the government throu-gh enactment of legislation and the development of national policy to encourage true cooperative ope-

rations and which is applied strictly at national, regional and local level; can act as a catalyst to support local agriculture. In doing-so and as we have witnessed in Ireland, many producers whom expe-rience the implicit volatilities of the agri-cultural sector can seek to develop their operations within the confines of a focu-sed group of like-minded producers and whom may then further pursue an ever present opportunity in Serbian agricul-ture, value added production. ■

We believe the government through enactment of legislation and the development of national policy to encourage true cooperative operations can act as a catalyst to support local agriculture

We Need True Cooperatives

INTERVIEW

RONAN CONROY

General Director BPI d.o.o., Agri Business Partner d.o.o

Present abuses of the existing legislation governing cooperatives represent fundamental abuses of

the concept of cooperatives


From 2012 until today Serbia has changed all tax regulati-ons. These major changes that followed several years of inactivity have in most cases be awaited eagerly by the economy and the general conclusion is that a positive step

has been taken in this domain.However, a shadow is cast over this work, which essentially re-

presents a step forward, by the fact that amendments to the laws were mostly passed without public consultation or the participa-tion of the economy. Moreover, the deadline for their application was inappropriately short, often only a day after publication in the Official Gazette. If we consider that the public could not know in which direction the law would be changed, or that they had very limited and often only unofficial information, such hasty implementation of the law led to companies not being able to adjust their operations in such a short time – particularly because adaptation entails a change in business processes in order for companies to operate in accordance with the new ru-les, but also adjusting business plans and budgets.

To give an example, the abolition of tax incentives for inves-tments in fixed assets without notice, and less than a month after the adoption of a fiscal strategy envisaging their abolition only in 2015, sent a negative signal to all investors.

The conclusion would be that the absence of a public debate, the failure to involve the economy in making amendments to the laws, as well as adopting changes in the short term, leads to le-gal uncertainty and unpredictability of the business environment, which undermines the beneficial side of the adopted amendments.

One example of a good regulation, for which it is now nece-ssary to provide good implementation, are the amendments to the Law on Corporate Income Tax in the part on transfer pricing,

where huge progress has been made. The best practice has been adopted based on OECD guidelines, while a number of inconsi-stencies have been eliminated. What now awaits is the training of taxpayers and, perhaps more importantly, the training of the tax administration in order to prevent inappropriate and inconsistent treatment in practice, which has an impact on legal security and the business environment.

Moreover, the Ministry of Finance should consider whether the prescribed mandatory submission of a study on transfer pricing to the tax administration is the optimal solution for taxpayers. Na-mely, this commitment represents a major burden for companies

who should prepare the study under a short deadline. Here the legislator should especially bear in mind that many companies do not have adequate internal resources for such a complex and voluminous task. Likewise, the adequacy of limits should be examined in terms of the value of transactions for

which preparation of a study is not required and where instead it is sufficient to submit a report in a condensed form.

When it comes to the application of the regulations, in practi-ce one observes a major discrepancy, because there is no unified interpretation of the Ministry of Finance and the Tax Admini-stration, as well as no unified interpretation of the regulations within the framework of the tax administration. It can be conc-luded that the level of coordination with respect to uniform and consistent application of regulation is low, both within the aus-pices of the tax administration and when one considers the Mini-stry and the Tax Administration. And cases based on complaints within the context of tax administration still last much longer than is required by law, often longer than a year, even though the legal deadline is 60 days. ■

In the recent past a step forward was taken in the formulation of tax laws, but the lack of public debate and the absence of participation of the economy in their formulation cast a shadow over the efforts of the legislator. In addition, some changes to the laws came into effect overnight, indicating a low level of predictability of the business environment

Ensuring the Predictability of the Business Environment is Necessary

COMMENT

BILJANA BUJIĆ

Vice President and Acting President of the Taxation Committee of the Foreign Investors Council (KPMG d.o.o.)

Abolishing tax incentives for investments in fixed assets

without notice sent a negative signal to all investors


INTERVIEW

We have never regretted that we invested in Serbia, says Rita Lozinsky, CEO of ALU-MIL YU INDUSTRY AD, part

of the multinational company ALUMIL MILONAS, which launched a greenfield investment in Stara Pazova in 2002 and has doubled its production in the midst of the economic crisis. Although the company had a good cooperation with the state, provincial and local au-thorities, Lozinsky says that in the last 12 years of operating in Serbia little has changed in practice when it co-mes to the work of the admini-stration and the tax system.

► What determined your de-cision to continually invest and expand your facilities in Serbia? - ALUMIL MILONAS is a com-pany that has its own subsi-diaries in nearly 30 countries worl-dwide and, in addition to Greece, it has complete production in Albania, Romania and Bosnia-Herzegovina. For us the Serbian market was interesting for several reasons, primarily because of the presence of our products on this market since the early ‘90s, but most importantly because of the serious eco-nomic environment and well-trained human resources. We also found the

trade agreements that Serbia has with certain countries very attractive.

► Do you think Serbia has progressed in building its business environment for foreign investors, compared to the time when you started the first green-field investment in 2002? - Frankly, I do not see serious improve-ments in practice. The biggest problems I see are in very extensive administra-tive procedures, primarily in obtaining construction and other permits, as well as the abolition of the tax benefits in the industry. At the same time, I have to say that in this framework we had good co-operation with the local authorities in

Stara Pazova, as well as the provincial and national administration.

► Which areas of the legislative field and the work of public administration should be improved when it comes to attracting foreign investment? - We highly value the commitment of the Government on reform steps so far, especially in the field of labour legisla-tion. We impatiently await the new law

on planning and construction, because the biggest problem for greenfield inve-stments is precisely in this area.

As for attracting foreign investors to Serbia, I think the benefits that were abo-lished a few years ago were very attracti-ve, such as the corporate gains tax rate of 10% and tax credit on the basis of in-vestments in certain industrial activities.

► Did you fulfil your ambitions to expand the number of markets to whi-ch ALUMIL YU INDUSTRY AD exports and how much do the specific trade agreements Serbia has with some co-untries help in that regard? - The fact that in the midst of the econo-

mic crisis ALUMIL doubled its production, investing an additi-onal six million euros in a new line, indicates that we are satis-fied with our results. ALUMIL expands its operations every day in Europe, Asia and Africa.

As for the trade agreements Serbia has with some countries, that is certainly a positive fact.

However, I must say that in the implemen-tation of these agreements there are some limitations and there are many practical difficulties. I hope that these problems will be overcome in the coming period.

However, despite all the difficulties, we have never regretted investing in Ser-bia. We expect that, in tandem with the stabilisation of the economy in Serbia, we will further advance our operations and investing in Serbia. ■

We highly value the commitment of the Government on reform steps so far. We expect that, in tandem with the stabilisation of the economy in Serbia, we further advance our operations and investing in Serbia

Successful, Despite EverythingRITA LOZINSKY

CEO and director general of ALUMIL YU INDUSTRY AD

I see the biggest problems in very extensive administrative procedures,

primarily in obtaining construction and other permits, as well as in the abolition

of the tax incentives for industry


With the introduction of number portability in fixed networks (FNP) as of 1st April, visible progress was achieved in the field of telecommunications, but the actual process of transferring a number could be fa-

ster and more efficient. In addition to this, the adoption of amen-dments to the Law on Electronic Communications represents a positive shift, introducing technological neutrality in existing frequency bands. Unfortunately, the law has not yet experienced its application in practice, which prevents the rapid development of the market, new investment and faster internet and better co-verage for users. We consider that only fast and effective imple-mentation would lead to new investments in the development of mobile broadband, which dire-ctly and indirectly contributes to the growth of GDP. Accordingly, we have three recommendati-ons. First, it is necessary to im-plement technological neutrality for the existing spectrum bands in accordance with EU recom-mendations, or allow licenses to expire at no extra cost. Secondly, the Government of Serbia should bring a decision on the allocation of the Army in the range of 900 MHZ. And, third, we believe that plans should be announced for the upcoming auction of spectrum, in order for operators to pre-pare relevant offers in a timely manner.

We also welcome the decision of the Constitutional Court of the Republic of Serbia to repeal, on the grounds of it being an un-constitutional act, the para-fiscal levy introduced by the Law on Cinematography, according to which RATEL was obliged to alloca-te 10% of annual revenues to the fund for cinematography.

When it comes to the field of ICT, as a generator 6% of the reve-nue budget of the Republic of Serbia it is one of the country’s most

vital industries. In recent years there have been several positive developments in the Serbian IT sector. Noteworthy examples are the adoption of the Strategy for the Development of Information Society in Serbia until 2020, followed by the introduction of e-go-vernment programmes in various state institutions, such as the courts, police and municipal administration, the introduction of the possibility of subscription and payment of VAT via the inter-net, and Serbia’s membership in the Open Government Partner-ship (which implies the fulfilling of numerous conditions, such as improving the transparency of public finances, providing adequate data protection, as well as free access to information, etc.). In addi-tion to that, IT regulations received significant new rules with the

goal of liberalisation and compe-titiveness within the sector.

As a result of these develop-ments, in the past year there has been an increase in the number of e-services available to end users. The E-Government Portal now includes a range of services, whi-le the Tax Administration has ta-

ken decisive steps in the implementation and expansion of their IT infrastructure, opening the possibility for electronic tax returns. As such, it can be concluded that there are many improvements. The key elements we need to work on are: networking state insti-tutions at the level of IT infrastructure, as well as considering the option of public-private partnerships in the field of IT services, for example in the provision of Cloud services.

Continuous dialogue between all relevant parties (the Mini-stry, RATEL, RRA, FIC etc.), will certainly help speed up the proce-ss of harmonising Serbian legislation with that of the EU, which is one of the most highly placed objectives of the Government of the Republic of Serbia. ■

Regulating technological neutrality at existing frequency bands is a step forward, but until these solutions are implemented in practice, the expected effects of the changes to the law – new investments in mobile broadband and GDP growth on that basis – will not be achieved

E-government Key to Reforming Serbia's State Administration

COMMENT

ZDRAVKO DRČELIĆ

President of the Telecommunications and IT Committee of the Foreign Investors Council (Hewlett Packard d.o.o.)

E-governance is the key to the reform of Serbia’s state administration. It will make the administration more efficient, which in turn will attract

more foreign investment


Today it is more of a practice than an exception that, at the initiative of the state, the Foreign Investors Council par-ticipates in the dialogue, relays experiences and offers suggestions on legal solutions in the early stages of their

development. "Experience shows that, when you have a substan-tial and lengthy public debate, which includes all relevant stake-holders, the quality of legislation is better and legal enforcement has greater effects, which is the goal of any regulation," says Ana Firtel, Executive Director of the Foreign Investors Council.

► How much does the growing economic power of members and their cumulative experien-ce impact on appreciation for the FIC’s recommendations to the co-untry’s political leadership? - Economic power of member com-panies, on the one hand, and their involvement in the FIC and cumula-tive experience, on the other, have a dominant influence on the weight of the opinions we represent and their acknowledgement.

The data is clear: when it was established, the Council had 14 founding members, while today there are 130. Their share in gene-rating gross domestic product for 2012 was 17.5%, while in 2013 it was even greater, the precise details of which we will publish in the latest White Book we are currently preparing. This gives strength and credibility of our association in talks with the government.

► What makes the analysis and recommendations of the FIC specific and relevant in relation to other organisations and in-stitutions that also analyse the investment climate in Serbia? - There are several things that are, in my opinion, crucial: first, these are recommendations coming from the private sector. Much of the analysis we have done helped, and continues to help, the government in taking steps forward during the formulating of po-licies. Secondly, we are a business association that brings together companies from all over the world. Blending experience gained here and on other markets helps us, in a situation where Serbia is aspiring to join the EU, to provide some practical suggestions

for overcoming the problems faced in the process.

Third, have worked a lot on stren-gthening the decision-making proce-dures to ensure that all the views we present reflect the majority view and are not in conflict with the position of any member of the Council. When you have 130 members from various

sectors, and competitors within sectors, it is a challenging process that requires you to have a transparent and inclusive decision-ma-king method within the organisation. When we formulate our re-commendations we take into account not only the interests of cer-tain companies, but rather the interests of the wider market and the overall economy, because how individual companies operate on the market depends on how the economy operates.

The quality of dialogue between the state and the FIC developed in parallel

with the increase in the number of members and their economic power, as well as their efforts to provide political

leaders with suggestions based on their years of experience of working in

Serbia and other parts of the world

Better Quality Dialogue Means Better Legal Solutions

INTERVIEW

ANA FIRTEL

Executive Director of the Foreign Investors Council

We think that an active dialogue between the state and the private sector should become not only the practice, which is the case today,

but also an obligation


► In what ways have the priorities and recommendations of the Council changed with regard to changes in Serbia’s overall economic environment and the EU accession process in the previous period? - When the Council was created in 2002, Serbia was the beginning of the transition and our proposals were focused on building the pillars of a market economy. From 2004 onwards, despite changes of government, a large number of laws were adopted in order to catch up with other countries in the region that were closer to the EU. That was good, but the flip side of that coin was a problem in the application of those laws. Since then we have spent years dealing with the fact that the main problem when it comes to the regulatory framework is law enforcement, lack of capacity and lack of clear procedures, all of which leads to unequal conditions for doing business. If you look at the first and last editions of the White Book, you will see that the most recent edition is twice as thick, because our recom-mendations have become much more specific and concrete, indicating cle-arly defined problems in some laws or the way they are applied.

► What are the most important changes in the quality of the dia-logue between the private sector and the state, and how do you as-sess the contribution of the FIC in this process? - Communication and dialogue always existed, but at first it was sporadic, and often initiated by the private sector in-dicating existing problems. In recent years there have been major changes and now, instead of post factum, when the laws are passed, we have a priori cooperation where the government also initiates the dialogue. We actively participate in the formulati-on of legislation and are often participants in the working groups established by the state for the formulation of specific legislation or have access to early drafts and give specific comments and sug-gestions. We hope that in the future that dialogue between the state and the private sector will be even more powerful because, unfor-tunately, even today some legal solutions change overnight without any consultation, which negatively impacts on the predictability of doing business. We think that an active dialogue between the state

and the private sector should become not only the practice, which is the case today, but also an obligation.

► In which ways have the internal organisational structure and functioning of the Council adapted to the needs of new members? - Internal adjustment of the Council was necessary because the membership expanded, but the principles we stand for as an asso-ciation – a predictable and sustainable business environment and level playing field for all – have not changed. Over time, in addition to the Assembly and Board of Directors, we gained a larger number of committees dealing with specific problems at an expert level. When I started working at the FIC in 2007 there were three active

committees, while today we have eight, plus an ad hoc working body that has already spent two years dealing with regularity of payments and we are constantly opening new themes.

In addition to the growing number of members, for years we have wor-ked on deepening the involvement of middle management of companies in the Council's work. The practical knowledge of people who work on specific problems, such as taxes, the application of labour regulations, solving problems of illicit trade and other issues we deal with as an asso-ciation, helps members to have mea-ningful dialogue and provide the state with the most concrete proposals.

► In your opinion, how much has the cooperation developed by the FIC with international organisati-ons and other business associations influenced the quality of public de-bate on improving the business en-

vironment in Serbia? - It has certainly had an influence because it has improved the flow of information. The mission of the Council is based on a dialogue with the authorities and all relevant stakeholders, thus it is extre-mely significant that we collaborate with the World Bank, the IMF, the diplomatic corps, the delegation of the European Union, deve-lopment agencies such as USAID and GIZ and other relevant factors. In addition, we speak with other business associations, with whom we organise joint initiatives when there is a mutual interest. ■

Blending experience gained here and on other markets helps us, in a situation where

Serbia is aspiring to join the EU, by providing practical suggestions for overcoming the

problems faced in the process.

When we formulate our recommendations we take into account not only the

interests of certain companies, but rather the interests of the wider market and the

overall economy.

We hope that in future dialogue between the state and the private sector will be stronger, because,

unfortunately, even today legal solutions sometimes change overnight, which negatively

affects the predictability of doing business.

EXPERIENCE INTEREST PREDICTABILITY

When you don’t have enough time and opportunity to

carefully analyse specific legal solutions and give

recommendations, that reduces the input you give, which would

be of benefit to lawmakers


FREDERIC COINPresident of the Foreign Investors Council

”The Foreign Investors Council fully supports the new measures of the go-vernment, but would also like to stress that success in any new reforms depends

on how successful the government will be in ensuring implementation from the highest to the lowest instances”.

OVE FREDHEIMVice President of the Foreign Investors Council

”From the standpoint of pri-vate investors, it is extremely important that the state takes care of the models of corpo-rate governance in state-ow-ned firms, and ensures tran-

sparency in the process of privatising public en-terprises. This would contribute to the creation of equal conditions for all market players”.

SRĐAN LAZOVIĆVice President of the Foreign Investors Council

”The adoption and imple-mentation of regulations that are harmonised with the EU acquis would be a step in the right direction in the creation of a lasting,

sustainable and transparent legal framework. Also closely related to this issue is the enfor-cement of laws that have been adopted and oversight of their implementation”.

GORAN PEKEZChairman of the FIC Committee for

Combating Illicit Trade”Reducing the grey economy would contribute to the crea-tion of a more favourable bu-siness climate, which would consequently attract more

foreign investment and give local companies the opportunity for sustainable growth”.

MILICA STEFANOVIĆChairwoman of the FIC Food and Agriculture

Committee„The Food and Agriculture Committee considers that, through the four-year stra-tegy of subsidies for larger sectors of agricultural pro-

duction, a permanent and transparent solu-tion should be established that will enable manufacturers to plan their activities”.

DEJAN JEČMENICAChairman of the FIC Human Resources Committee”The adoption of the new Labour Law should be followed by its consistent application. Only in that way

can the state provide a level playing field for all market participants. The FIC believes the changes to this law will make Serbia more competitive for new investments”.

CRISTOPH LEITNERChairman of the FIC Leasing and Insurance

Committee”In order to encourage the participation of leasing in the development of agricultural, the FIC supports the adoption of the amendment to the Law

on Incentives in Agriculture and Rural Develop-ment, in order for financial leasing to be inclu-ded in the system of incentives for agriculture”.

RASTKO MALIŠIĆChairman of the FIC Legal Committee

”It is very important when adopting new laws or ma-king major changes to existing regulations to con-sider the sustainability and urgency of deadlines fore-

seen for the adoption of bylaws and to coordi-nate the work of all agencies and institutions that should adopt these regulations”.

NEBOJŠA NEŠOVANOVIĆChairman of the FIC Real Estate and

Construction Committee”The Foreign Investors Co-uncil, as well as other busi-ness associations, remains adamant that they should abandon the retention of

the Institute of conversion fees, which caused serious damage to the construction industry in the previous period”.

BILJANA BUJIĆFIC Vice President and Acting Chair of the

FIC Tax Committee”An example of good regu-lations, which it is now ne-cessary to secure and apply well, are the amendments to the Law on Corporate Gains

in the area covering transfer pricing. What now lies ahead is the training of the tax administra-tion, in order to prevent any inappropriate and inconsistent approach in practice”.

ZDRAVKO DRČELIĆChairman of the FIC Telecommunications and Information Technology Committee

„The key elements that sho-uld be addressed in the field of e-services are: networ-king state institutions at the level of IT infrastructure, as well as considering pu-

blic-private partnership in the field of IT servi-ces, for example in providing Cloud services”.

ANA FIRTELExecutive director of the Foreign Investors Council”Experience shows that when you have a rich and lengthy public debate that includes various stakehol-

ders, the quality of legislation is better, while enforcement of the law also has greater effects, which is the goal of any regulation.”

KEY MESSAGES

ZORANA MIHAJLOVIĆPh.D., Deputy Prime Minister and Minister of Construction, Transport and Infrastructure”With the amendments to the Law on Planning and

Construction, the construction industry will be fundamentally reformed. I believe that building permits will no longer be among the first remarks mentioned in every conversation with foreign investors.”

ALEKSANDAR VULINMinister for Labour, Employment, Veterans and Social Issues„In order to seriously address unemployment we need new inves-

tments and we are primarily fighting for them. This ministry is open to all proposals of employers that would make their work easier and accelerate employment.”

JORGOVANKA TABAKOVIĆGovernor of the National Bank of Serbia„I believe the govern-ment will be decisive in the implementation of fiscal consolidation and

structural reforms. The NBS is ready to contribute to creating conditions for advancing the market environment by ensuring the stability of prices and the financial system.”

2014/15

FOREIGN INVESTORS

COUNCIL in Serbia

D I R E C T O R Y


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

President of the Board: FREDERIC COIN, Societe Generale Banka Srbija a.d.Vice President of the Board: OVE FREDHEIM, Telenor d.o.o.Vice President of the Board: SRĐAN LAZOVIĆ, British American Tobacco SEE d.o.o. BeogradMember of the Board: GABOR BEKEFI, Carlsberg Srbija d.o.o.Member of the Board: JOHN KYRITSIS, Delhaize Serbia d.o.o.Member of the Board: SILVIA VERNETTI-BLINA, Fiat automobili Srbija d.o.o.Member of the Board: DIMITRIJE KNJEGINJIĆ, Lafarge Srbija d.o.o.Member of the Board: ANSGAR BORNEMANN, Nestlé Adriatic S d.o.o.Member of the Board: MICHALIS ORFANOUDAKIS, PepsiCo West Balkans

Anti-Illicit Trade CommitteePresident: GORAN PEKEZ, JT International a.d. SentaVice President: IRENA SMILJANIĆ, Mondelez d.o.o. BeogradFood & Agriculture CommitteePresident: MILICA STEFANOVIĆ, The Coca-Cola Company (Barlan S&M d.o.o.) Vice President: DEJAN SIMIĆ, Mondelez d.o.o. BeogradHuman Resources CommitteePresident: DEJAN JEČMENICA, Wiener Staedtische osiguranje a.d.o. BeogradVice President: MIRKO KOVAČ, Karanović & NikolićLeasing & Insurance CommitteePresident: CHRISTOPH LEITNER, VB Leasing d.o.o. BeogradVice President: LJUBIŠA VELJKOVIĆ, Wiener Staedtische osiguranje a.d.o. Beograd

Legal CommitteePresident: RASTKO MALIŠIĆ, Marić, Mališić, Dostanić o.a.d. - correspondent law firm of Gide Loyrette NouelVice President: VLADISLAV MARJANOVIĆ, Baklaja & Igric Law OfficeReal-Estate CommitteePresident: NEBOJŠA NEŠOVANOVIĆ, Jones Lang LaSalle d.o.o.Vice President: IVAN PETROVIĆ, Janković, Popović & Mitić o.d.Taxation CommitteeVice President and ad interim President: BILJANA BUJIĆ, KPMG d.o.o.Telecommunications & IT CommitteePresident: ZDRAVKO DRČELIĆ, Hewlett Packard d.o.o.Vice President: JASMINA VIGNJEVIĆ, Telenor d.o.o.

ANA FIRTEL, Executive Director; [email protected] ĐORĐEVIĆ, Communication Officer; [email protected] LAZAREVIĆ, Regulatory Officer; [email protected]

BAKLAJA & IGRIC LAW OFFICETerazije 8, 11000 BeogradTel: 011 3038 822; 011 3812 140; Fax: 011 3038 309E-mail: [email protected]: www.baklaja-igric.com Enrolment date: 2004

l a w o f f i c e

Zaštitne boje logotipa

Pantone 491 C Crna 100%

AIRPORT CITY BELGRADEOmladinskih brigada 88, 11070 BeogradTel: 011 3189 516E-mail: [email protected]: www.airportcitybelgrade.com Enrolment date: 2005

AIR SERBIA A.D.Bulevar umetnosti 16a, 11070 BeogradTel: 011 2010 204; Fax: 011 2137 756E-mail: [email protected]: www.airserbia.com Enrolment date: 2014

ALCATEL LUCENT SERBIA - OGRANAK BEOGRADOmladinskih brigada 88A, 11070 BeogradTel: 011 2286 781; Fax: 011 2288 298E-mail: [email protected]: www.alcatel-lucent.com Enrolment date: 2010

ALPHA BANK SRBIJA A.D.Kralja Milana 11, 11000 BeogradTel: 0800 250 250; Fax: 011 3243 516E-mail: [email protected]: www.alphabankserbia.com Enrolment date: 2006

ATTORNEYS AT LAW SPASIC AND PARTNERS O.D. BELGRADEGospodar Jovanova 73, 11000 BeogradTel: 011 2633 872; Fax: 011 3283 677E-mail: [email protected]: www.spasicpartners.com Enrolment date: 2013

BALL PACKAGING EUROPE BELGRADE LTD.Batajnički drum 21A, 11080 Zemun - BeogradTel: 011 3770 600Fax: 011 3770 752Web: www.ball-europe.com Enrolment date: 2004

AXA OSIGURANJEBulevar Mihajla Pupina 6, 11070 BeogradTel: 011 2200 400; Fax: 011 2200 401E-mail: [email protected]: www.axa.rs Enrolment date: 2011

BOARD OF DIRECTORS

COMMITTEES

EXECUTIVE OFFICE


BANCA INTESA A.D. BEOGRADMilentija Popovića 7b, 11070 BeogradTel: 011 3108 888E-mail: [email protected]: www.bancaintesa.rs Enrolment date: 2004

BASF SRBIJA D.O.O.Omladinskih brigada 90B, 11070 BeogradTel: 011 3093 403Fax: 011 3093 423Web: www.basf.rsEnrolment date: 2009

COCA-COLA HBC - SRBIJA D.O.O.Batajnički drum 14-16, 11080 BeogradTel: 011 3073 100Fax: 011 3073 199Web: www.coca-colahellenic.com Enrolment date: 2002

DIRECT GROUP DOO BEOGRADAutoput za Novi Sad 96, 11080 BeogradTel: 011 3532 900; Fax: 011 3532 908E-mail: [email protected]: www.direct-group.com Enrolment date: 2013

DHL INTERNATIONAL BEOGRAD D.O.O.Jurija Gagarina 36 V, 11070 BeogradTel: 011 3105 500E-mail: [email protected]: www.dhl.rsEnrolment date: 2002

DELOITTE D.O.O.Terazije 8, 11000 BeogradTel: 011 3812 100; Fax : 011 3812 112E-mail: [email protected] Web: www.deloitte.com/rs Enrolment date: 2003

DELTA HOLDINGMilentija Popovića 7b, 11070 BeogradTel: 011 2011 144; Fax: 011 2011 111E-Mail: [email protected]: www.deltaholding.rsEnrolment date: 2014

DEUTSCH-SERBISCHE WIRTSCHAFTSVEREINIGUNG (DSW)Topličin venac 19-21, 11000 BeogradTel: 011 2028 010; Fax: 011 3034 780E-mail: [email protected]: www.serbien.ahk.de/rs; www.serbien.ahk.deEnrolment date: 2014

BAYER D.O.O.Omladinskih brigada 88b, 11070 BeogradTel: 011 2070 251Fax: 011 2070 261Web: www.bayer.rsEnrolment date: 2009

BDK ADVOKATI/ATTORNEYS AT LAWDobračina 38, 11000 BeogradTel.: 011 3284 212; Fax: 011 3284 213E-mail: [email protected]: www.bdklegal.com Enrolment date: 2011

BOJOVIC & PARTNERS A.O.D. BEOGRADČika Ljubina 16/II, 11000 BeogradTel: 011 7850 336; Fax: 011 7850 337E-mail: [email protected]: www.bojovicpartners.com Enrolment date: 2013

BPI D.O.O.Imotska 1, 11000 BeogradVenac Radomira Putnika 1, 25000 SomborTel: 025 451 800; Fax: 025 451 800Web: www.bpi-holding.com Enrolment date: 2010

BRITISH AMERICAN TOBACCO SOUTH-EAST EUROPE D.O.O. BEOGRADBulevar Mihajla Pupina 165g, 11070 BeogradTel: 011 3108 700Web: www.bat.com Enrolment date: 2002, Founder

CARLSBERG SRBIJA D.O.O.Proleterska 17, 21413 ČelarevoTel: 021 7550 600; Fax: 021 7550 658E-mail: [email protected]: www.carlsbergsrbija.rs Enrolment date: 2005

CREDIT AGRICOLE SRBIJA A.D. NOVI SADBraće Ribnikar 4-6, 21000 Novi SadTel: 021 4876 876; Fax: 021 4876 976E-mail: [email protected] Web: www.creditagricole.rs Enrolment date: 2006

DANUBE FOODS D.O.O.Batajnički drum 10 deo 1b, 11000 BeogradTel.: 011 2222 500Fax: 011 2222 533E-mail: [email protected] Enrolment date: 2011

CROWE HORWATH BDM DOOTerazije 5/4, 11000 BeogradTel: 011 6558 500; Fax: 011 6558 501E-mail: [email protected]: www.crowehorwath.rs Enrolment date: 2012

DUPONT SRB D.O.O.Omladinskih brigada 88, 11070 Beograd Tel: 011 2090 580 Fax: 011 2090 598 Web: www.rs.ag.dupont.com Enrolment date: 2009

ECOLAB HYGIENE D.O.O.Milana Tankosića 8, 11000 BeogradTel: 011 2076 800; Fax: 011 2076 802E-mail: [email protected]: www.ecolab.rs Enrolment date: 2008

EKO SERBIA A.D. Member of Hellenic Petroleum groupTošin bunar 274a, 11070 Novi BeogradTel: 011 2061 500; Fax: 011 2061 555E-mail: [email protected]: www.ekoserbia.com Enrolment date: 2004

DDOR NOVI SAD A.D.OBulevar Mihajla Pupina 8, 21000 Novi SadTel: 021 4886 141; Fax: 021 4720 675E-mail: [email protected]: www.ddor.co.rs Enrolment date: 2012

DELHAIZE SERBIA D.O.O.Jurija Gagarina 14, 11070 Novi BeogradTel: 011 7153 400; Fax: 011 7153 900E-mail: [email protected]: www.maxi.rs; www.delhaizegroup.com Enrolment date: 2011


ERSTE BANK A.D. NOVI SADBulevar oslobođenja 5, 21000 Novi SadTel: 0800 201 201; 060 7979 000; E-mail: [email protected] Poslovni centar - Milutina Milankovića 11b11000 Beograd, Tel: 0800 201 201; 060 7979 000Web: www.erstebank.rs; Enrolment date: 2005

ERSTE GROUP IMMORENT SERBIA D.O.O.Milutina Milankovića 11a, 11070 Beograd Tel: 011 2287 480; Fax: 011 2287 482E-mail: [email protected]: www.erstegroupimmorent.rs Enrolment date: 2008

EUROBANK A.D. BEOGRADVuka Karadžića 10, 11000 BeogradTel: 011 3082 860; Fax: 011 3376 807E-mail: [email protected]: www.eurobank.rs Enrolment date: 2003

ERNST & YOUNG D.O.O. BEOGRADŠpanskih boraca 3, "Blue Center", 11070 BeogradTel: 011 2095 800E-mail: [email protected]: www.ey.com/rs Enrolment date: 2004

HAUZMAJSTOR D.O.O.Dunavska 57a, 11000 BeogradTel: 011 3034 034; Fax: 011 2070 995E-mail: [email protected]: www.hauzmajstor.rs Enrolment date: 2008

HENKEL SRBIJA D.O.O.Bulevar oslobođenja 383, 11040 Beograd Tel: 011 2072 200 Fax: 011 2072 294Web: www.henkel.rs Enrolment date: 2004

HEMOFARM A.D.Beogradski put bb, 26300 VršacTel: 013 803 500; Fax: 013 831 503E-mail: [email protected]: www.hemofarm.rs Enrolment date: 2013

HINTTECH D.O.O.Mornarska 7, 21000 Novi SadTel: 021 6301 548; Fax: 021 6392 826E-mail: [email protected]: www.hinttech.com Enrolment date: 2010

HUAWEI TECHNOLOGIES D.O.O.Vladimira Popovića 38/V, 11070 BeogradTel: 011 2209 607; Fax: 011 2209 607E-mail: [email protected]: www.huawei.comEnrolment date: 2010

HYATT REGENCY BELGRADEMilentija Popovića 5, PO Box 07,11070 BeogradTel: 011 3011 234; Fax: 011 3112 330E-mail: [email protected]: www.belgrade.regency.hyatt.com Enrolment date: 2002, Founder

FIAT AUTOMOBILI SRBIJA D.O.O.Kosovska 4, 34000 KragujevacTel: 034 502 622; 011 3030 906Fax: 034 323 000; 011 3030 914Web: www.fiatsrbija.rs; www.fiat.com Enrolment date: 2011

FINDOMESTIC BNP PARIBAS GROUPBulevar Mihajla Pupina 115a, 11000 BeogradTel: 011 3331 733; Fax: 011 3331 766E-mail: [email protected]: www.findomestic.rs Enrolment date: 2012

HYPO ALPE-ADRIA-BANK A.D. BEOGRADBulevar Mihajla Pupina 6, 11070 BeogradTel: 011 2226 000; Fax: 011 2226 555E-mail: [email protected]: www.hypo-alpe-adria.rs Enrolment date: 2002

G4S SECURE SOLUTIONS D.O.O.Viline Vode 6, 11000 BeogradTel: 011 2097 900; Fax: 011 2097 914E-mail: [email protected]: www.g4s.rs Enrolment date: 2009

FRESENIUS MEDICAL CARE SRBIJA D.O.O.Beogradski put bb, 26300 VršacTel: 011 3951 000; Fax: 011 3951 090E-mail: [email protected]: www.fmc-ag.comEnrolment date: 2013

GRUNDFOS SRBIJA D.O.O.Obilazni put Sever 21, 22320 InđijaTel: 022 367 300Fax: 022 367 302 Web: www.grundfos.rs; www.grundfos.comEnrolment date: 2013

GTC INTERNATIONAL DEVELOPMENTS ILC BELGRADEBulevar Zorana Đinđića 64a, 11070 BeogradTel: 011 3130 751; Fax: 011 3130 752E-mail: [email protected]: www.gtcserbia.com; www.gtc.com.plEnrolment date: 2014

GRAND CASINO BEOGRADBulevar Nikole Tesle 3, 11080 BeogradTel: 011 2202 800; Fax: 011 2202 810E-mail: [email protected]: www.grandcasinobeograd.com Enrolment date: 2008

GEBRÜDER WEISS TRANSPORT AND LOGISTICS D.O.O.Beogradska bb, 11272 DobanovciTel: 011 3715 200; Fax: 011 3715 201E-mail: [email protected] Web: www.gw-world.rs; www.gw-world.comEnrolment date: 2014

HARRISONSBulevar Mihajla Pupina 6, PC Ušće, 11070 BeogradTel: 011 3129 825; Fax: 011 3129 823E-mail: [email protected]: www.harrison-solicitors.com Enrolment date: 2004

HEWLETT PACKARD D.O.O.Omladinskih brigada 90B, 11070 BeogradTel: 011 2055 800Fax: 011 2055 936Web: www.hp.rs Enrolment date: 2005

HEINEKEN SRBIJA DOOOmladinskih brigada 90b, 11070 BeogradTel: 011 3538 600; Fax: 011 3538 691E-mail: [email protected]: www.heinekeninternational.com Enrolment date: 2003


IKEA SRBIJA D.O.O.Autoput 2211070 BeogradTel: 011 2098 802Web: www.ikea.com Enrolment date: 2008

IB INTERBILANZ CONSULTING D.O.O.Bulevar Milutina Milankovića 136a, 11070 BeogradTel: 011 6557 043; Fax: 011 6693 999E-Mail: [email protected]: www.ibgroup.atEnrolment date: 2014

INTESA LEASING D.O.O. BEOGRADCara Uroša 54, 11000 BeogradTel: 011 2025 400; Fax: 011 2025 433E-mail: [email protected]: www.intesaleasing.rs Enrolment date: 2010

INTERALLIS CHEMICALSNeznanog junaka 27a, 11040 BeogradTel: 011 3679 230; Fax: 011 3679 231E-mail: [email protected]: www.interallis.com Enrolment date: 2005

JANKOVIĆ, POPOVIĆ & MITIĆ O.D.Vladimira Popovića 6, NBGP Apt. 11070 BeogradTel: 011 2076 850; Fax: 011 2076 899E-mail: [email protected] Web: www.jpm.rs Enrolment date: 2009

HYPO ALPE-ADRIA-LEASING D.O.O. BEOGRADBulevar Mihajla Pupina 115g 11070 Beograd; Tel: 011 2227 000; Fax: 011 2227 099E-mail: [email protected] Web: www.hypo-alpe-adria.rs Enrolment date: 2003

JT INTERNATIONAL A.D. SENTASubotički drum 17, 24400 SentaTel: 011 2050 300Fax: 011 2050 301Web: www.jti.com Enrolment date: 2003

KAPSCH D.O.O.Sava Business Center, Milentija Popovića 5B, 11070 BeogradTel: 060 0730 303; Fax: 011 2282 679E-mail: [email protected]: www.kapsch.net; www.kapsch.rsEnrolment date: 2009

KARANOVIC & NIKOLICResavska 23, 11000 BeogradTel: 011 3094 200; Fax: 011 3094 223 E-mail: [email protected]: www.karanovic-nikolic.com Enrolment date: 2003

KNAUF INSULATION D.O.O.Batajnički drum 16b, 11080 BeogradTel: 011 3310 800; Fax: 011 3310 801E-mail: [email protected]: www.knaufinsulation.rs; www.knaufinsulation.com Enrolment date: 2011

JONES LANG LASALLE D.O.O.Danube Business Center, Bulevar Mihajla Pupina 10 L 11070 Beograd; Tel: 011 7850 600; Fax: 011 7850 597E-mail: [email protected]: www.joneslanglasalle.rs Enrolment date: 2008

KOMERCIJALNA BANKA A.D.Svetog Save 14, 11000 BeogradTel: 011 3080 100; Fax: 011 3440 033E-mail: [email protected]: www.kombank.com Enrolment date: 2008

KPMG D.O.O.Kraljice Natalije 11, 11000 BeogradTel: 011 2050 500; Fax: 011 2050 550E-mail: [email protected]: www.kpmg.rs Enrolment date: 2002

LUKOIL SRBIJA ADBulevar Mihajla Pupina 165d, 11070 Beograd Tel: 011 2220 200Fax: 011 2220 294Web: www.lukoil.rs Enrolment date: 2009

L‘ORÉAL BALKAN D.O.O.Bulevar Zorana Đinđića 64a, 11070 BeogradTel: 011 2205 900Fax: 011 2205 901Web: www.loreal.com Enrolment date: 2004

LAFARGE BFC D.O.O.Trg BFC 1, 21300 BeočinTel: 021 874 102; 011 6556 120; Fax: 021 874 143E-mail: [email protected]: www.lafarge.rs; www.lafarge.com Enrolment date: 2002

LES LABORATOIRES SERVIERBulevar Mihajla Pupina 165v, 11070 BeogradTel: 011 2225 060; Fax: 011 2225 067E-mail: [email protected]: www.servier.rsEnrolment date: 2014

MACE D.O.O.Bulevar Mihajla Pupina 6, 11070 BeogradTel: 011 2200 250; Fax: 011 2200 265E-mail: [email protected] Web: www.mace.co.rs; www.macegroup.com Enrolment date: 2010

MERKUR OSIGURANJE A.D.OBulevar Mihajla Pupina 6/22, 11070 BeogradTel: 011 2201 250; Fax: 011 2201 251E-mail: [email protected]: www.merkur.rsEnrolment date: 2011

MERCK D.O.O.Omladinskih brigada 90v, 11070 BeogradTel: 011 2175 761; Fax: 011 2176 781E-mail: [email protected]: www.merck.rs; www.merck.deEnrolment date: 2014

MARIC, MALISIC & DOSTANIC O.A.D. CORRESPONDENT LAW FIRM OF GIDE LOYRETTE NOUELResavska 32/4, 11000 Beograd; Tel: 011 3024 900; Fax: 011 3024 910; E-mail: [email protected]: www.gide.com; www.mmd-associates.comEnrolment date: 2005

MARBO PRODUCT D.O.O, A COMPANY OF PEPSICOĐorđa Stanojevića 14, 11070 Beograd; Tel: 011 3637 000; Fax: 011 3637 069; E-mail: [email protected]: www.pepsico.comwww.facebook.com/PepsiCoSrbijaOfficial; twitter.com/PepsiCoSrbija Enrolment date: 2009


METRO CASH & CARRYAutoput za Novi Sad 120, 11080 BeogradTel: 011 3777 208; Fax: 011 3777 539E-mail: [email protected] Web: www.metro.rs Enrolment date: 2003

METROPOL PALACE D.O.O.Bulevar Kralja Aleksandra 69, 11000 BeogradTel: 011 3333 100; Fax: 011 3333 300E-mail: [email protected]: www.metropolpalace.com Enrolment date: 2012

MINI PANI D.O.O.Hipodromska bb, 24107 SuboticaTel: 024 621 521; Fax: 024 621 522 E-mail: [email protected]: www.minipani.com Enrolment date: 2012

MONDELEZ D.O.O. BEOGRADOmladinskih brigada 88b/III, 11070 BeogradTel: 011 3530 800Fax: 011 3133 788Web: www.mondelezinternational.com Enrolment date: 2010

NESTLÉ ADRIATIC S D.O.O.Železnička 131, 11271 Beograd-SurčinTel: 011 2019 301; Fax: 011 3132 022E-mail: [email protected]: www.nestle.rs Enrolment date: 2002, Founder

NIS A.D. NOVI SAD (NAFTNA INDUSTRIJA SRBIJE)Narodnog fronta 12, 21000 Novi SadTel.: 021 4811 111; Fax: 021 4813 037E-mail: [email protected]: www.nis.rs Enrolment date: 2011

NBG LEASING D.O.O.Airport City, Omladinskih brigada 88, 11070 BeogradTel: 011 2287 982; 2288 071; 2288 074; 2288 079; Fax: 011 2287 984; E-mail: [email protected]: www.nbgleasing.rs Enrolment date: 2004

NOKIA SOLUTIONS AND NETWORKS SERBIA D.O.O. BEOGRADĐorđa Stanojevića 14, 11070 BeogradBelgrade Office Park, Building II, Gallery Floor Tel: 011 3070 123; 3070 111; Fax: 011 3070 167Web: www.nsn.com; Enrolment date: 2009

RAUCH SERBIA D.O.O.Baja Pivljanina 13, 11000 BeogradTel: 011 2652 225; Fax: 011 2652 298E-mail: [email protected]: www.rauch.cc Enrolment date: 2011

PATRIMONS D.O.O.Sterijina 7, 11000 BeogradTel: 011 2772 729; Fax: 011 2781 829E-mail: [email protected]: www.patrimons.rs Enrolment date: 2008

PERNOD RICARD SERBIABulevar oslobođenja 211, 11000 BeogradTel: 011 3975 246Fax: 011 3974 380Web: www.pernodricard.com Enrolment date: 2003

PHILIP MORRIS SERVICES D.O.O. BEOGRADBulevar Zorana Đinđića 64a, 11070 BeogradTel: 011 2010 800Fax: 011 2010 824Web: www.philipmorrisinternational.com Enrolment date: 2004

PETRIKIĆ & PARTNERI AOD IN COOPERATION WITH CMS REICH-ROHRWIG HEINZCincar Jankova 3, 11000 BeogradTel: 011 3208 900; Fax: 011 3038 930E-mail: [email protected]; Web: www.cms-rrh.comEnrolment date: 2004

PIRAEUS BANK A.D. BEOGRADMilentija Popovića 5b, 11070 BeogradTel: 011 3024 000; Fax: 011 3024 400E-mail: [email protected]: www.piraeusbank.rs Enrolment date: 2006

PIRAEUS LEASING D.O.O.Milentija Popovića 5b, 11170 BeogradTel: 011 2228 600; Fax: 011 2228 601E-mail: [email protected] Web: www.piraeusleasing.rs Enrolment date: 2010

PRICEWATERHOUSECOOPERS D.O.O.Airport City Belgrade, Omladinskih brigada 88a11070 BeogradTel: 011 3302 100; Fax: 011 3302 101Web: www.pwc.rs Enrolment date: 2002, Founder

PRISTOPBulevar Milutina Milankovića 136, ulaz A / I 11070 BeogradTel: 011 7151 764; Fax: 011 7151 740E-mail: [email protected]; Web: www.pristop.rs Enrolment date: 2010

RAIFFEISEN BANKA A.D. BEOGRADĐorđa Stanojevića 16, 11070 BeogradTel: 011 3202 100E-mail: [email protected]: www.raiffeisenbank.rs Enrolment date: 2002

ORION TELEKOM D.O.O.Gandijeva 76a, 11070 BeogradTel: 011 2228 333; Fax: 011 2228 336E-mail: [email protected]: www.oriontelekom.rs Enrolment date: 2010

RAIFFEISEN LEASING D.O.O.Đorđa Stanojevića 16, 11070 BeogradTel: 011 2207 400; Fax: 011 2289 007E-mail: [email protected]: www.raiffeisen-leasing.rs Enrolment date: 2003

PROCREDIT BANKMilutina Milankovića 17, 11000 BeogradTel: 011 2077 906; Fax: 011 2077 905E-mail: [email protected]: www.procreditbank.rs Enrolment date: 2004

KRAFT FOODS D.O.O.Omladinskih brigada 88b/III, 11070 BeogradTel: +381 11 3530 800Fax: +381 11 3133 788Web: www.kraftfoodscompany.comEnrolment date: 2010

MESSER TEHNOGAS A.D.Banjički put 62, 11000 BeogradTel: 011 3537 200; Fax: 011 3537 291E-mail: [email protected]: www.messer.rs Enrolment date: 2002, Founder


RINGIER AXEL SPRINGER D.O.O.Žorža Klemansoa 19, 11000 BeogradTel: 011 3334 701; Fax: 011 3334 703E-mail: [email protected]: www.ringieraxelspringer.rswww.ringieraxelspringer.com; Enrolment date: 2014

RIO TINTORIO SAVA EXPLORATION D.O.O.Takovska 45/IV, 11000 BeogradTel: 011 2761 477; Fax: 011 2752 376Web: www.riotinto.com; www.riotintoserbia.com Enrolment date: 2004

ROBNE KUĆE BEOGRAD D.O.O.Makenzijeva 57, 11000 BeogradTel: 011 3206 540; Fax: 011 3206 550E-mail: [email protected]: www.rkbeograd.rs Enrolment date: 2010

S & T SERBIA D.O.O.Đorđa Stanojevića 14/III, 11070 BeogradTel: 011 3116 221; Fax: 011 3117 665E-mail: [email protected]: www.snt.rs Enrolment date: 2003

ROCHE D.O.O.Milutina Milankovića 11a, 11070 BeogradTel: 011 2022 803; Fax: 011 2022 808E-mail: [email protected]: www.rochesrbija.rs; www.roche.com Enrolment date: 2013

S-LEASING D.O.O.Bulevar Milutina Milankovića 11a/IV, 11070 BeogradTel: 011 2010 700; 2010 701; Fax: 011 2010 702E-mail: [email protected]: www.s-leasing.rs Enrolment date: 2003

SBB SERBIAN BROADBANDBulevar Zorana Đinđića 8a, 11000 BeogradTel: 011 3305 252E-mail: [email protected]: www.sbb.rs Enrolment date: 2004

SCHNEIDER ELECTRIC SRBIJA D.O.OVladimira Popovića 38-40, 11070 BeogradTel: 011 3773 100E-mail: [email protected]: www.schneider-electric.com Enrolment date: 2012

SBERBANK SRBIJA A.D. BEOGRADBulevar Mihajla Pupina 165g, 11070 BeogradTel: 0700 700 800; 011 2257 498; Fax: 011 2013 270E-mail: [email protected]: www.sberbank.rs Enrolment date: 2004

SIEMENS D.O.O. BEOGRADOmladinskih brigada 21, 11070 BeogradTel: 011 2096 305; Fax: 011 2096 061E-mail: [email protected]: www.siemens.rs Enrolment date: 2002, Founder

SLADARA MALTINEX D.O.O.Industrijska zona b.b., 21400 Bačka PalankaTel: 021 752 910Fax: 021 6042 399Web: www.soufflet.com Enrolment date: 2004

SYNGENTA AGRO D.O.O.Sava Business CenterMilentija Popovića 5a, 11070 BeogradTel: 011 3129 981; 3129 982; Fax: 011 3129 980Web: www.syngenta.rs; www.syngenta.com Enrolment date: 2009

TELEKOM SRBIJA A.D.Takovska 2, 11000 BeogradTel: 011 3337 171; Mob: 064 789E-mail: [email protected]: www.telekom.rs Enrolment date: 2007

TELENOR D.O.O.Omladinskih brigada 9011070 BeogradMob: 063 9000Web: www.telenor.rs Enrolment date: 2006

TETRA PAK PRODUCTIONMilutina Milankovića 11b, 11070 BeogradTel: 011 2017 361Fax: 011 2017 380Web: www.tetrapak.rsEnrolment date: 2002,Founder

THE COCA-COLA COMPANY (BARLAN S&M D.O.O.)Batajnički drum 14-16, 11080 Beograd Tel: 011 3081 100; Fax: 011 3081 166 E-mail: [email protected] Web: www.thecoca-colacompany.com Enrolment date: 2002

STRAUSS ADRIATIC D.O.O.Miloša Obilića 41, 22310 ŠimanovciTel: 022 408 000; Fax: 022 408 067E-mail: [email protected]: www.strauss-group.rs; www.strauss-group.com Enrolment date: 2013

STAR IMPORT D.O.O.Omladinskih brigada 33, 11070 Beograd Tel: 011 3019 001; Fax: 011 3019 036E-mail: [email protected]: www.mercedes-benz.rsEnrolment date: 2002, Founder

STMG CONSULTANCY D.O.O. BEOGRADBulevar Zorana Đinđića 144v, 11070 BeogradTel: 011 3535 400; Fax: 011 3535 401E-mail: [email protected]: www.stmgconsultancy.comEnrolment date: 2006

SOGELEASE SRBIJA D.O.O.Bulevar Zorana Đinđića 48B, 11070 BeogradTel: 011 2221 369; Fax: 011 2221 388E-mail: [email protected]: www.sogelease.rs Enrolment date: 2011

THE INTERNATIONAL SCHOOL OF BELGRADETemišvarska 19, 11000 BeogradTel: 011 2069 999; Fax: 011 2069 944E-Mail: [email protected]: www.isb.rsEnrolment date: 2014

SOCIETE GENERALE BANKA SRBIJA A.D. BEOGRAD, CLOSED JOINT STOCK COMPANY Bulevar Zorana Đinđića 50 a/b, 11070 Beograd; Tel: 011 3011 400; 011 2221 200; Fax: 011 3132 885; E-mail: Retail banking - [email protected]; Corporate clients - [email protected]; Web: www.societegenerale.rs; Enrolment date: 2002, Founder


UNIQA NEŽIVOTNO OSIGURANJE ADOMilutina Milankovića 134G, 11070 BeogradTel: 011 2024 100E-mail: [email protected]: www.uniqa.rs Enrolment date: 2006

VB LEASING D.O.O. BEOGRADĐorđa Stanojevića 12, 11070 BeogradTel: 011 2016 500; Fax: 011 2016 567E-mail: [email protected]: www.vbleasing.rs Enrolment date: 2011

VICTORIA GROUP A.D.Bulevar Mihajla Pupina 115b, 11070 BeogradTel: 011 3532 700; Fax: 011 3532 728E-mail: [email protected]: www.victoriagroup.rs Enrolment date: 2013

VIP MOBILE D.O.O.Omladinskih brigada 21, 11070 BeogradTel: 060 1234; Fax: 011 2253 334E-mail: [email protected]: www.vipmobile.rs Enrolment date: 2007

VOJVOĐANSKA BANKA A.D. NOVI SADMember of NBG GroupTrg Slobode 5-7, 21000 Novi SadTel: 021 4886 600; Fax: 021 6624 859E-mail: [email protected]: www.voban.co.rs; Enrolment date: 2003

UNICREDIT BANK SERBIA JSCRajićeva 27-29, 11000 BeogradTel: 011 3777 888; Fax: 011 3342 200E-mail: [email protected]: www.unicreditbank.rs Enrolment date: 2013

TIGAR TYRES D.O.O. PIROTPREDUZECE ZA PROIZVODNJU GUMANikola Pašić 213, 18300 PirotTel: 010 2157 000; Fax: 010 2157 010Web: www.michelin.rs Enrolment date: 2009

TITAN CEMENTARA KOSJERIĆ D.O.O.Živojina Mišića b.b., 31260 KosjerićTel: 031 590 300Fax: 031 590 398Web: www.titan.rs Enrolment date: 2004

WIENER STAEDTISCHE OSIGURANJE A.D.O. BEOGRADTrešnjinog cveta 1, 11070 BeogradTel: 011 2209 901;Fax: 011 2209 900E-mail: [email protected]; Web: www.wiener.co.rs Enrolment date: 2003

WIENER RE AKCIONARSKO DRUŠTVO ZA REOSIGURANJE BEOGRADTrešnjinog cveta 1, 11070 BeogradTel: 011 2209 960; Fax: 011 2251 711E-Mail: [email protected]; Web: www.wienerre.rs www.vig-re.com; Enrolment date: 2014

WOLF THEISS IN COOPERATION WITH LAW OFFICE MIROSLAV STOJANOVICPoslovni centar Ušće, Bulevar Mihajla Pupina 611070 Beograd; Tel: 011 3302 900; Fax: 011 3302 925E-mail: [email protected]: www.wolftheiss.com; Enrolment date: 2003

ZIVKOVIC SAMARDZIC A.O.D. BEOGRADMakedonska 30, 11000 BeogradTel: 011 2636 636; Fax: 011 2635 555E-mail: [email protected]: www.zslaw.rs Enrolment date: 2011

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