Slovenian Ambassador to Serbia, H. E. Vladimir Gasparič
A green oasis between the Alps and the Adriatic Sea
Relations between Slovenia and Serbia have been traditionally strong, and therefore cooperation between the Serbian and Slovenian economies has been excellent. More than 1,500 Slovenian companies operate on the Serbian market, with their total capital investment amounting to around EUR 3 billion, which has positioned Serbia as a priority for Slovenian foreign trade. In general, the relations between the two countries are friendly and intensive; cooperation proceeds at numerous levels, and political contact between all ministries is frequent and regular. The states hold regular bilateral joint government sessions, along with regular visits paid by ministers, parliament members, business people, organisations, etc. Slovenia supports Serbia in its efforts regarding EU membership and is a consistent advocate of EU expansion in the Western Balkans, also assisting Serbia by sharing its experience acquired through accession to the EU. At the time of Slovenia’s presidency of the EU Council, Serbia signed the Stabilisation and Association Agreement with the EU. Furthermore, Slovenia significantly contributed to the introduction of a visa-free regime to Serbia, and was also one of the greatest supporters of assigning a starting date for Serbian negotiations with the EU. In addition, cultural collaboration between Slovenia and Serbia is highly intensive in every area of artistic creativity – from the exchange of theatre performances, art and other types of exhibitions, to publishing, concerts and films.
Situated between the Alps and the Adriatic Sea, Slovenia is famous for its ample natural resources, and its potential for tourism is quite well-developed. Last year, the number of overnight stays there exceeded its record of 10 million, and Serbia is among the top 10 countries visiting Slovenia most frequently. Tourism accounts for more than 12.7% of Slovenia’s gross domestic product, which represents 8 percent of its total exports and almost 40 percent of its export of services. At the same time, this is a sector which contributes considerably to the country’s recognition. This is also proven by the index of ten greenest, i.e. most sustainable, countries, among which Slovenia ranked in fifth place out of 180 countries in January this year.
1. Your Excellency, how do you feel about being in Belgrade? Can you tell us your impressions of Serbia? What was the course of your career in diplomacy before you came to Serbia? What are the priorities you have set for yourself at the beginning of your mandate in Belgrade?
At the beginning of my mandate in Belgrade, I feel pleasant. It would be even more agreeable if I didn’t have so much work to do and if I had time to experience and feel the atmosphere of Belgrade and Serbia to a greater extent. My feelings are certainly different from those I have had for all my destinations so far (Beijing, Singapore, Bangkok, Manila, Tokyo, Podgorica).
In accordance with my country’s interests, the priorities I have set include further extension of economic cooperation, progress in the agreement on the succession of the SFRY successor states, assistance to Serbia on the path of reforms leading to EU membership, continued collaboration in the domain of culture, etc.
One priority, perhaps a slightly personal one, is better understanding of the circumstances in the Western Balkans, which has been traditionally regarded as a turbulent region.
2. What are current diplomatic relations between Serbia and Slovenia like, and what were they like in the past?
The relations between these two countries are, one can say, traditionally excellent and versatile, particularly over the past three years, which have been marked by progress in a number of bilateral areas. Had there not been an economic crisis, they could now be even more developed.
3. Serbia is today a candidate country, and the negotiations started in January, 2014. In your opinion, how far along is Serbia on the path to the EU, and what will be crucial for Serbia to become a member state? Is it possible at all to draw parallels between the Slovenian experience and the requirements which our country as a candidate should meet?
As I’ve mentioned, one of my priorities is to assist Serbia in the implementation of reforms, throughout social, political and economic life. This road is not easy, nor was it in our experience, and I would even say that some chapters are extremely complicated, but, at the end of the day, the whole project pays off. My personal opinion is that it is not so important when Serbia joins the EU, but it is more significant that Serbia uses this time for reforms in the best possible way. I’m glad that, in these terms, Slovenia is a close and honest partner, based on, among other things, the number of Slovenian experts cooperating with you on a series of projects within the EU negotiation process.
4. How do you see Serbia’s EU integration in the future, and do you think that, upon joining the EU, Serbia will become more appealing to investors, not just from Slovenia, but from other countries, as well?
Investors’ interest depends not only on EU membership, but also on a set of factors which attract foreign capital. A good example for this could be China, which holds a record in foreign investments precisely for this reason. Independently from this, I have to congratulate you on the fact that you have become a magnet for foreign investors lately with a very large scope.
6. What is the level of economic cooperation between Serbia and Slovenia, what can our two countries offer to each other, and under which conditions could they use their potential in order to achieve good economic cooperation?
The economic cooperation between our countries is good. More than 1,500 Slovenian companies are registered in Serbia, a lot more than all other investors in Serbia, and Slovenian companies employ around 25,000 – 30,000 people. The greatest number of Slovenian companies operating abroad is in Serbia, to which the highest level of Slovenian investment is directed; in terms of the total scope, Serbia is ranked second, immediately after Croatia.
7. What is the nature of the foreign trade cooperation between our countries and which industries in Serbia have the most potential? What does Serbia export to Slovenia, and what does it import from Slovenia?
Exchange of goods with the Western Balkans countries in 2015 amounted to EUR 2,590.3 million and was 7.1% higher than in 2014. Within this number, exchange of goods with Serbia equalled EUR 1,143.3 million. According to its volume of exports, Serbia ranks high, in 8th place, with EUR 743.5 million (EUR 658.3 million in 2014); in terms of import, it takes the 13th position with EUR 399.8 million (EUR 415.4 million in 2014). Last year, Slovenia’s most valuable exports were to Germany (EUR 346 million, or +7.5 %), and, in relative terms, also to Serbia (+12.9 %, or EUR 85.2 million).
Regarding Slovenian exports to Serbia, the dominant merchandise includes vehicles, along with their parts and accessories (16%), boilers, machines and mechanical devices (13%), pharmaceutical products (12%), electrical machines and equipment (11%), plastic masses and products made of plastic masses (5%). Regarding Slovenian imports from Serbia, the dominant merchandise includes aluminium and aluminium products (19%), boilers, machines and mechanical devices (18%), electrical machines and equipment, and their parts (10%), furniture (5%) and footwear (5%).
The exchange of services in 2014 amounted to EUR 290 million (a 7.6% increase compared to 2013), and export reached EUR 165 million, while import equalled EUR 125 million. The prevailing services in the service export structure were travel and other business services, while imports included telecommunication, computer and IT services, as well as other business services.
8. When it comes to investments, how do investors from Slovenia regard the Serbian market? What are the most influential companies that have made investments here? And what are the impressions of the Slovenian companies working in Serbia?
Investors from Slovenia perceive Serbia as a reliable partner, and, therefore, as a perspective market. In the period from 2003 (with the exception of 2008, when it ranked first) until the end of December 2014, Serbia was the second greatest recipient of Slovenian direct investment with a value of EUR 1,180.50 million. Investment is aimed at all economic sectors. The main motives for investing in Serbia are still related to its relatively favourable business environment (educated labour force, easier access to third markets, free trade agreements, proportionately favourable tax legislation, occasional investment support), and, recently, the economic regrowth of Serbia.
Our estimate is that opportunities for Slovenian companies in Serbia primarily lie in the following domains:
-Environmental protection (wastewater sanitation, assortment, waste management, reduction of industrial pollution, etc.),
-IT: data protection,
-Traffic infrastructure, energy infrastructure (projects for construction and modernisation in the area of road, rail and energy infrastructure),
-Energy efficiency, renewable energy resources and sustainable development,
-Tourism: the potential is great, predominantly in the area of health or wellness tourism,
-Financial sector: the Serbian banking market has a great potential and represents one of the most interesting potentials in the region. Due to the limited entry of insurance services, the insurance markets offer a large degree of possibilities for growth. Slovenian banks and insurance companies are present as a matter of fact, but with smaller market shares.
9. What can Slovenia offer to investors from Serbia, and, according to your knowledge, is there any interest of Serbian companies in investment in your country?
Above all, Slovenia can offer a stable, secure and predictable investment environment to Serbian investors. Increased interest shown by Serbian companies in investment in Slovenia has been visible lately. According to data provided by the Bank of Slovenia, at the end of 2014, Slovenia received EUR 47.50 million of net foreign investments from Serbia. The latest Serbian investments include construction of a hotel complex, Intercontinental, in Ljubljana, acquisition of shares in a bank – Gorenjska banka, and purchase of a bank - NKBM in Serbia.
11. How would you present your country as a tourist attraction? What aspects and landmarks would you highlight?
Slovenia is a specific tourist destination, which builds its attractiveness based on its clean environment, intact nature, hospitality, healthy nutrition and healthy way of living. We are appealing to the Serbs, as far as I understand, as a ski destination, and spa and wellness tourist offers. I also know that your tourists are enthusiastic about visiting our mountains, walking in our forests, and by the way, Slovenia holds the record for the percentage of greenery covering its territory, lake visits, etc.
13. How do you spend your free time and what is your favourite memory from Serbia?
I spend my free time, if there’s any left, on city walks and I look at the specific characteristics of Belgrade. Recently I bought a small dog in Pančevo and it keeps me company in these activities. I also visit theatres and get to know Belgrade cafés, especially those with live music. This scene is very different to Ljubljana, and is livelier.
