Republic of Serbia: daily survey

- DAILY SURVEY

No. 01/76 - Belgrade, 2/27/2014 - Prepared by: Marija Vrečer

SERBIA - AUSTRIA

MRKIC, KURZ DISCUSS STRENGTHENING OF BILATERAL RELATIONS

BELGRADE, Feb. 26 (Tanjug) - Serbian Foreign Minister Ivan Mrkic and his Austrian counterpart Sebastian Kurz conferred in Belgrade on Wednesday over the strengthening of the two countries’ political dialogue and economic cooperation. The ministers agreed that the improvement of the political dialogue and overall bilateral relations serves mutual interests. Mrkic and Kurz discussed Serbia’s European integration, cooperation within the EU Strategy for the Danube Region, Belgrade-Pristina dialogue and the situation in the Western Balkan region. Austria will continue supporting Serbia in the EU accession talks and it is willing to offer advisory, technical, educative and other modes of assistance, especially concerning twinning projects, Kurz said. Mrkic expressed gratitude over the increase of the Austrian contingent in Kosovo-Metohija and noted that Serbia is interested in developing economic ties and increase of Austrian investments in Serbia. On Wednesday, Kurz also conferred with Serbian President Tomislav Nikolic and Serbian First Deputy Prime Minister Aleksandar Vucic and he also participated in the conference entitled ’Business bridge Serbia-Austria-Europe’ organised in the Serbian Chamber of Commerce to mark the constitution of the Serbian Economic Senate. From Belgrade, Kurz will travel to Pristina where he will confer with Hasim Taci and Enver Hodzaj on Thursday.

KURZ, SLAVKA DRASKOVIC DISCUSS SERBS IN AUSTRIA

BELGRADE, Feb. 26 (Tanjug) - Director of the Serbian government Office for Cooperation with the Diaspora and Serbs in the Region Slavka Draskovic conferred with Austrian Minister of Foreign Affairs Sebastian Kurz concerning the Serb community in Austria. During the meeting, the high officials concluded that Serbia and Austria need to cooperate on the education of Serbian organisations in drafting projects which would be filed with applications in calls for EU funds. Austria is home to between 180,000 and 250,000 Serbs who make up the most numerous group of foreigners in Austria. Draskovic said that they can set up even closer ties between the two countries which already maintain a rather good cooperation. She stated that the Serb diaspora in Austria is integrated well but since it is so numerous, its participation in Austria’s political life is not on a satisfactory level, the Serbian government Office for Cooperation with the Diaspora released. Draskovic announced that the office for integration in the Austrian Embassy in Belgrade would be set up in a month which will serve as the information centre in the areas of education and employment in Austria

KURZ: SERBIA DICTATES PACE OF EU PATH, REFORMS IMPORTANT

BELGRADE, Feb. 26 (Tanjug) - Austrian Minister of Foreign Affairs Sebastian Kurz stated on Wednesday that Austria is interested in reforms in Serbia so that the country could become a member of the EU as soon as possible. After the talks with officials in Belgrade, Kurz told Tanjug that Serbia’s EU accession will depend on the pace of the reforms. The better the fight against corruption and the faster the progress of rule of law, granted favourable economic progress as well, the easier it would be to close negotiating chapters one by one, which would help Serbia become a member of the EU sooner, Kurz said. He noted that during the talks with several Serbian officials and with Serbian First Deputy Prime Minister Aleksandar Vucic in particular, he received assurances that Serbia wishes a clear reform course and concluded that he believes this to be the right path.

SERBIA

MRKIC, KUROKI SIGN AGREEMENT ON JAPANESE GOVERNMENT DONATION

BELGRADE, Feb. 26 (Tanjug) - Serbian Foreign Minister Ivan Mrkic and Japanese Ambassador to Serbia Masafumi Kuroki signed and exchanged notes on a EUR 1.43 million worth non-refundable donation from the Japanese government to Serbia, expressing the hope that the donation will further improve the friendly relations between the two countries. Recalling Serbia’s and Japan’s establishing contact way back in 1882, Mrkic pointed out that Japan has given Serbia about EUR 460 million of assistance since 1999. “I wish to extend my most sincere gratitude to the government and people of Japan for helping our country and our people,” Mrkic said, adding that he would like to see the two countries visiting each other more often in the future and in that way further strengthen cooperation. The Japanese ambassador is confident that the donation will bring Japanese technology closer to the Serbian people and that it will serve as an opportunity to further improve economic relations between Japan and Serbia, especially when it comes to Japan investing in Serbia. The donation is aimed at improving efficiency in various sectors in Serbia, ranging from healthcare, natural disasters management, environmental protection to professional development.

NIKOLIC POINTS TO IMPORTANCE OF COOPERATION WITH CHINA

BELGRADE, Feb. 26 (Tanjug) - Serbian President Tomislav Nikolic talked on Wednesday with Wang Hongwei, deputy general manager of the Export-Import Bank of China, who said that Serbia has a special place in China’s program for South-East Europe (SEE). Underscoring that he highly values the friendship with Serbia and the Serbian people, Wang noted that the funds from the program had been allocated for investment in infrastructure projects and those in the energy sector. We are very interested in investing the first tranche of the funds earmarked for SEE countries, amounting to USD 500 million, in building roads, bridges, energy facilities and renewables, the deputy general manager of the Exim Bank said. Nikolic underlined the importance of cooperation with China, noting that it is almost impossible to invest in major projects without cooperation with Chinese partners. "So far, the Chinese investments have been realized quite successfully and I expect that they will be intensified even further," he said. The cooperation with China will be improved even further after a new government is formed following the elections, the president’s press service quoted Nikolic as saying. Nikolic stressed that investments in projects constitute investments in the future of Serbia, and noted that, for over 10 years, loans had been taken to fill the state’s budget deficit, instead of investing in economic growth. Today, we are all paying dearly for the economic policy pursued by previous governments. That has to change, the Serbian president stressed. Serbia is ready to propose its projects, as it is aware that China will go to some other SEE country, if it does not find an environment conducive to its investments here, Nikolic said. The Serbian president said that Chinese companies should consider foreign direct investments in Serbia, as in that way they could reduce transportation costs, while at the same time benefiting from free trade agreements that Serbia has with many countries.

DACIC: SPIRITUAL WEALTH MUST NOT BE NEGLECTED

HILANDAR, Feb. 27 (Tanjug) - Serbian Prime Minister Ivica Dacic underscored during his visit to the Hilandar Monastery at Mount Athos that the spiritual edifice is one of the most important treasures of the Serb people and it must not be neglected. Dacic expressed satisfaction with his visit to Hilandar on the Day of Saint Simeon the Myrrh-streaming, Grand Prince Stefan Nemanja of the Serbian Grand Principality Raska (1113-1199) and the founder of the Nemanjic dynasty. Dacic said that the aim of his visit to the Hilandar Monastery is to establish what has been done in terms of repairs of the consequences of the catastrophic fire which caused extensive damage to the monastery in 2004. Dacic recalled that the Serbian government invested around EUR 10 million in the reconstruction of Hilandar, which is enough to complete 50 percent of planned works. He underscored that the government will continue providing assistance to the monastery as one of the biggest treasures of the Serb people. I underscored on several occasions that Serbia needs to preserve its cultural and historic heritage and other Serbian holy sites such as the monuments in Kosovo-Metohija, Corfu and Vido (Greece), Dacic said. He pointed out that the cultural heritage of the Serb people is one of the most important monuments for world culture as confirmed by the fact that the Mount Athos where the Hilandar Monastery is situated is included in the list of UNESCO world heritage as of 1988. The Mount Athos management expressed gratitude to the Serbian Ministry of Interior Affairs for its assistance in extinguishing the fire which broke out two years ago in which 50 members of fire-fighting units were engaged. Dacic attended the liturgy in the Hilandar Monastery and then visited the monastery premises and conferred with the clerical management.

RODIC: MILITARY COOPERATION IN SERBIA’S, GREECE’S INTEREST

ATHENS, Feb. 27 (Tanjug) – Serbian Defense Minister Nebojsa Rodic attended a demonstration exercise performed by the Hellenic Army’s 13th Special Operations Command in Greece on Wednesday. The hosts of the visit were Chief of the Hellenic Army General Staff, Lieutenant General Christos Manolas, and Commander of the 13th Special Operations Command, Brigadier General Konstantinos Floros, the Serbian Ministry of Defense said in a release. The officials agreed during a meeting yesterday that a continuation of joint training of members of special units of Serbia’s and Greece’s armed forces is of mutual interest to both countries. Rodic was informed about the capacities of the Hellenic National Defense College, and both sides have expressed willingness to improve it in the future.

CEC CONFIRMS RAKIC’S VICTORY IN NORTHERN MITROVICA ELECTIONS

KOSOVSKA MITROVICA, Feb. 27 (Tanjug) - The Kosovo Central Electoral Commission (CEC) confirmed that leader of the Citizens’ Initiative Srpska Goran Rakic won in the elections for northern Mitrovica mayor. According to the final results of the elections, Rakic won 2,778 votes which is 52.48 percent of the total turnout, stated Nenad Rikalo late on Wednesday as the only Serb member of CEC. In a statement for Tanjug, Rikalo said that the complaint submission deadline for participants in the February 23 elections expires on Thursday afternoon. “In case no such complaint is filed, the final results will be validated and Rakic will be able to assume office as the mayor next week already,” he said. Other candidates for the northern Mitrovica mayor comprised Oliver Ivanovic of the Citizens’ Initiative ’Freedom, Democracy, Justice’, Fljorent Azemi of the Democratic Party of Kosovo and Musa Miftari of the League of Democrats of Kosovo. Rakic’s victory in the elections brought victory in nine out of ten Serb majority municipalities to the Citizens’ Initiative Srpska which was backed by the Serbian government.

WB: LOANS TO HEALTH CARE SYSTEM, DEPOSIT INSURANCE FUND

WASHINGTON, Feb. 26 (Tanjug) - The World Bank (WB) has granted Serbia USD 40 million for a second project in the health care sector and USD 200 million for a project aimed at strengthening the financial and institutional capacity of the Deposit Insurance Agency. The Second Serbia Health Project will support the improvement of health care financing and efficient purchasing of pharmaceuticals and medical products, said WB Country Manager for Serbia Tony Verheijen. Total health spending in Serbia accounts for about 10.4 percent of GDP, so it is critical for Serbia to increase the productivity of its health spending, particularly given an environment of fiscal constraints and increasing demands for health care from an ageing population, reads a release issued by the WB. Centralized procurement was piloted during the preparation of the project for one-third of the drugs used in the public health care system, and it reduced the cost by EUR 25 million for 2014. "Lower-income groups will benefit from this efficiency as they cannot opt out of the public health care system," Tony Verheijen said. Malignant diseases are a growing problem in Serbia. New equipment financed by the project will improve radio therapy for those patients, said Timothy Johnston, Sector Leader for Health and Nutrition in the World Bank’s Europe and Central Asia region. The Deposit Insurance Fund of Serbia was depleted by several recent bank failures, so USD 200 million will be allocated to replenish the Fund, Verheijen added. The Deposit Insurance Fund covers depositors in Serbia of up to EUR 50,000 in the event of a bank failure. Significant support is also provided to strengthen the institutional and technical capacity of the Deposit Insurance Agency, reads the WB release.

- DAILY SURVEY

No. 01/78 - Belgrade, 2/28/2014 - Prepared by: Marija Vrečer

SERBIA

DACIC: POLLS WILL BE CONDUCTED IN DEMOCRATIC,FAIR ATMOSPHERE

BELGRADE, Feb. 27 (Tanjug) - Serbian Prime Minister Ivica Dacic expressed the expectation on Thursday, in the talks with Head of the OSCE Limited Election Observation Mission Boris Frlec, that the forthcoming parliamentary elections would be carried out in a democratic and fair atmosphere. The elections will not slow down the European integration process and the implementation of the Brussels agreement because key political factors in Serbia are committed to the EU path and the search for a solution to the Kosovo-Metohija issue through a dialogue, Dacic said. He expressed the belief that the Serbian parliamentary elections would be organised well in Kosovo-Metohija and that OSCE would make sure that the electoral process in the southern Serbian province is carried out without problems, the Serbian government Office for Cooperation with the Media released.

SELAKOVIC, KAMSVAG ON TRANSFER OF SENTENCED PERSONS

BELGRADE, Feb. 27 (Tanjug) - Serbian Minister of Justice and Public Administration Nikola Selakovic conferred on Thursday with the Norwegian Ambassador in Belgrade Nils Ragnar Kamsvag on a new agreement between Serbia and Norway regulating the mutual transfer of sentenced persons. Serbia and Norway are signatories to the European Convention on the Transfer of Sentenced Persons, and Selakovic and Kamsvag agreed that this matter should also be regulated by a bilateral agreement, Ministry of Justice stated in a release. The two officials agreed that the expert groups tasked with drafting the agreement would be formed as soon as possible. Minister Selakovic thanked the Norwegian ambassador for his country’s valuable and lasting contribution to the strengthening of Serbian judicial system. Ambassador Kamsvag underlined that Norway will continue to provide support to building up the rule of law in Serbia through various projects.

RUSSIA THANKS SERBIA FOR PARTICIPATION IN SOCHI OLYMPICS

BELGRADE, Feb. 28 (Tanjug) - The Russian national holiday, the Defender of the Fatherland Day, was marked with a reception in Belgrade on Thursday evening, in the presence of Serbia’s top state and military officials, politicians, diplomats, church dignitaries and sportspeople. Addressing the present, Russian Ambassador Alexander Chepurin thanked Serbian President Tomislav Nikolic and his wife Dragica for coming and attending the opening ceremony of the Sochi Olympics "at the peak of the anti-Russian hysteria". This has been appreciated in Russia very much, the Russian ambassador said. Chepurin also thanked Serbian Prime Minister Ivica Dacic, who was not at the reception, for coming to the closing ceremony of the Games, as well as the present Chairman of the Serbian Olympic Committee Vlade Divac for Serbia’s dignified participation in the spirit of the sport. Chepurin also greeted Serbian Patriarch Irinej. Speaking about the holiday, the Russian ambassador noted that the situation in Ukraine best illustrates "how peace is fragile", and that small moves can have major and dramatic consequences, and that Ukraine as a European country should not be constantly provoked with either Western Europe or Russia. That is like separating conjoined twins. We need to try and build a joint future for Europe from Lisbon to Vladivostok, Chepurin said. He also noted that the Olympics in Sochi showed that Russia is a modern and open country which no one should be afraid of. Chepurin stressed that this year Serbia and Russia will proudly mark the centenary of the beginning of World War I and the liberation of Belgrade in World War II. The reception brought together Defense Minister Nebojsa Rodic, Head of the Serbian Armed Forces General Staff Ljubisa Dikovic, Minister of Mining Milan Bacevic and Minister of Sport Vanja Udovicic, Head of the Office for Kosovo-Metohija Aleksandar Vulin, MP Vuk Jeremic and others.

KOSOVO AND METOHIJA

IVANOVIC’S DETENTION EXTENDED, DEFENSE TO LODGE COMPLAINT

KOSOVSKA MITROVICA, Feb. 27 (Tanjug) - The pre-trial judge of the Basic Court in Kosovska Mitrovica ordered on Thursday extension of detention on remand for the leader of the Citizens’ Initiative ’Freedom, Democracy, Justice’ (GI SDP) Oliver Ivanovic, EULEX released. Ivanovic’s detention has been extended by two months and, as stated, the decision was made at the application of the Kosovo Special Prosecution Office. EULEX spokesperson Irina Gudeljevic told Tanjug that the reasoning behind the court’s decision cites the risk of flight and the risk that the defendant might influence witnesses. Ivanovic’s defense attorney Nebojsa Vlajic told Tanjug that the reasons for the extension of detention on remand are “non-existent and fictitious", just as they were when the one-month custody was originally ordered. Vlajic added that he will lodge a complaint against the decision to extend detention for Ivanovic on Friday. Ivanovic has been held at the detention center in Pristina, and the request for his transfer to the detention facility in northern Kosovska Mitrovica, with the majority Serb population, was denied earlier. The GI SDP leader and candidate for mayor of northern Kosovska Mitrovica in the February 23 elections has been in detention since January 27. He was arrested on suspicion of involvement in an alleged war crime in 1999 and post-war incidents in 2000, including an aggravated murder, and for inciting to ethnically motivated murder. Serbian Prime Minister Ivica Dacic protested Ivanovic’s arrest in the strongest of terms before the UN Security Council on February 10. On the same day, the Serbian government provided guarantees that Ivanovic and three other Serbs will be available to the EULEX mission throughout their trials.

ANTI-SERB GRAFFITI ON ORTHODOX CHURCH IN DJAKOVICA

BELGRADE, Feb. 27 (Tanjug) - The Serbian government’s Office for Kosovo-Metohija (KiM) has noted that anti-Serb graffiti appeared on the Orthodox church in Djakovica in the south-western part of the province on Thursday morning. The Office calls on the international community to react so as to finally put an end to animosity against Serbs in Kosovo-Metohija, where ethnic Albanians constitute a majority. The Office also warns that any crime that goes unpunished leads to new crimes, and underlines that "the spreading of national and religious hatred is just a continuation of attacks on the Serbs that took place on January 7, Orthodox Christmas Day". In the release, the Office notes that the buses carrying the Serbs displaced from that town (during and after the armed conflict) were then stoned in Djakovica and they were banned from visiting graveyards belonging to their families. There has been no public condemnation of that incident and no one was charged with or convicted of it, as no one has been convicted of other crimes committed against Serbs in the province, reads the release. "This led to such ominous messages that have been written today on the church in Djakovica," the release underlines. The government office urged relevant bodies and the international community in KiM to take the messages of hatred seriously and make decisive steps in order to find perpetrators, as that is the only way to put an end to religious and national intolerance. ECONOMY

SERBIA-GERMANY BILATERAL TRADE HITS RECORD HIGH

BELGRADE, Feb. 27 (Tanjug) - The value of bilateral trade between Serbia and Germany reached a total of EUR 2.78 billion in 2013, which is its highest level in history, announced the Delegation of the German Economy in Serbia, citing the data of the German Federal Ministry of Economic Affairs and Energy. Serbian exports also reached a record value of EUR 1.2 billion, due to an increase of 23.8 percent, while imports from Germany amounted to EUR 1.58 billion. This has largely balanced the current trade deficit of Serbia, bringing it to EUR 381.83 million last year. In comparison, the trade deficit in 2008 totaled EUR 968.29 million. The Delegation of the German Economy in Serbia, which has been present in our country since 2001, notes that Serbian exports to Germany are growing significantly. One of the reasons for this lies in numerous German enterprises operating in Serbia, which export their locally-manufactured products to buyers and partners in the markets of Germany and the EU. Considering that a number of German-based companies in Serbia are currently expanding their production facilities across the country and will reach their production peak in the years to come, Germany will undoubtedly remain one of the most important trade partners of Serbia in the future, underlined the Delegation of the German Economy in Serbia.

SERBIAN, TURKISH EXHIBITORS AT TEXTILE TRADE FAIR

NOVI PAZAR, Feb. 27 (Tanjug) - Serbian Deputy Prime Minister and Minister of Foreign and Internal Trade and Telecommunications Rasim Ljajic opened on Thursday a textile fair in Novi Pazar, with 36 exhibitors from Turkey and Serbia. Addressing the participants of the Balkan Textile trade fair, Ljajic pointed that this event opens new prospects not only for the textile industry, but also for the economic relations between the two countries. “Serbia must increase its trade with Turkey to EUR 1 billion, and that is a realistic goal considering that Serbia and Turkey have not yet activated all their potentials to improve their cooperation,” he said. Ljajic noted that Novi Pazar (central Serbia) should reemerge as the center of textile industry in the country due to its top quality and highly skilled workforce and over twenty years of tradition in the sector. “We must invest in new technologies, and prevent illicit trade,” stressed the minister, emphasizing that Serbia wants a legal textile market. “We want Turkish companies participating in this fair to not only sell their products in Serbia, but also to set up their production facilities here, for which the state would provide incentives,” said Ljajic. The fair opening was attended by the Turkish ambassador to Serbia Mehmet Kemal Bozay, who said that his country wants Novi Pazar to be the bridge of economic cooperation not only with Sandzak (old name of the Serbian region of Raska during the Ottoman rule), but also a bridge of cooperation between the two countries. Director of the Turkish textile company ’Meridyen’ Oguz Yalcin noted that the textile fair is a good chance for textile companies from Turkey to present themselves, but also an opportunity to draw potential investors, and called upon Serbian manufacturers to cooperate with Turkish enterprises and help create new jobs in Serbia. At the third international fair dedicated to raw materials used in the textile and furniture industry, the exhibitors included local companies and 30 manufacturers based in Turkey.

INTERNATIONAL FAIR OF TOURISM OPENS IN BELGRADE

BELGRADE, Feb. 27 (Tanjug) - Acting Minister of Economy Igor Mirovic opened on Thursday the International Fair of Tourism, the Trade Fair of Hotel and Catering Equipment, a souvenir fair and wine fair which will take place at the Belgrade Fair until March 2. At the opening ceremony, Mirovic noted that in 2013 the number of foreign tourists increased by 14 percent, and according to the data of the National Bank of Serbia (NBS), a historic result was achieved - tourism-generated revenues exceeded USD 1 billion. He voiced expectation that the tourism fair will open up new investment opportunities, and that business contacts made during the fair will yield new contracts and deals. Serbian Parliament Speaker Nebojsa Stefanovic noted that the efforts that Serbia and Belgrade have been investing in making tourism a strong factor of economic growth have been recognized in the region and across the globe. Serbia is becoming a place with an improving living standard, but not all problems have been resolved, Stefanovic said, voicing confidence that the projects such as "Belgrade on Water" will help increase Serbia’s appeal among investors. This year’s International Fair of Tourism will bring together over 1,000 exhibitors from 54 countries across the world. The partner country of this year’s tourism fair is Indonesia and, besides the states that traditionally promote their destinations at the Belgrade Tourism Fair, this year travel buffs will have an opportunity to consider offers from Argentina, Algeria, Albania, the UAE - Abu Dhabi, Malaysia, Iran, India, Portugal and Romania. This year, the Tourism Organization of Serbia (TOS) wants to attract young tourists, so it will promote a campaign titled "Lifestyle Serbia", presenting young people and their vibrant lifestyle in Serbia. The Tourist Organization of Belgrade will present its offer in four program units - the marking of the centenary of the beginning of World War I, 60 years since the establishment of the Tourist Association of Belgrade, promotion of Savamala (urban neighborhood of Belgrade) and announcement of the Belgrade Boat Carnival. Simultaneously with the International Fair of Tourism, the Trade Fair of Hotel and Catering Equipment (HORECA), Souvenir Fair "Visit Serbia" and Beo Wine Fair will take place. The Belgrade Tourism Fair was established in 1978. Since 2003, it has been a member of the European Tourism Trade Fairs Association (ETTFA) and the International Tourism Trade Fairs Association (ITTFA).