MONTENEGRO Michael Schmidt German & Montenegrin...

German & Montenegrin Economic Cooperation

Challenging Business Opportunity

August 2013

www.cordmagazine.com

M O N T E N E G R O

FDIForeign Direct

Investment

Dirk Niebel German Minister of Economic Cooperation and Development ■ Vladimir Kavarić Montenegrin Economy Minister ■ Branimir Gvozdenović Montenegrin Tourism and Sustainable Development Minister ■ H.E. Mr. Pius Fischer Ambassador of Germany to Montenegro ■ Velimir Mijušković President of the Montenegrin Chamber of Commerce ■ Duško Knežević President of Atlas Group ■ Rüdiger Schulz CEO of crnogorski Telekom and President of Montenegrin Foreign Investors Council (MFIC) ■ Michael Schmidt Director of the Delegation of the German Economy in Serbia

2 | Germany and monteneGro: ChallenGinG Business opportunity

Germany and monteneGro: ChallenGinG Business opportunity | 3

EDITORJovana Gligorijević, [email protected]

DESIGNBranislav Ninković

PHOTOSZoran Petrović

TRANSLATORSSnežana Bjelotomić

LEcTuREChristen Bradley Farmer, [email protected]

PROJEcT MANAGERSBiljana Dević, [email protected] Okanović, [email protected] Bandović, [email protected] Lalić, [email protected]

EXEcuTIVE DIREcTORRuža Ristanović, [email protected]

GENERAL MANAGERIvan Novčić, [email protected]

FINANcIAL DIREcTORAna Besedić, [email protected]

EDITORIAL MANAGER Tanja Banković, [email protected]

OFFIcE MANAGERNataša Nešić, [email protected]

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

German & Montenegrin Economic Cooperation Challenging Business Opportunity published by: alliance international media

Makenzijeva 67,11000 Belgrade, SerbiaPhone: +(381 11) 2450 508Fascimile: +(381 11) 2450 122E-mail: [email protected] no: 1451-7833All rights reservedalliance international media 2013

8 CoMMENt: GREat PotENtial FoR MEDiuM-SizED BuSiNESSES Jovana GliGoriJević, Editor

10 FRuitFul DEvEloPMENt CooPERatioN Dirk niebel, German Minister of Economic Cooperation and Development

14 DyNaMiC PRoGRESS towaRDS tHE Eu vlaDimir kavarić, Montenegrin Economy Minister

18 CoNStRuCtivE aND SuPPoRtivE H.e. mr. Pius FiscHer, Ambassador of Germany to Montenegro

21 DaiMlER to REStRuCtuRE BuSiNESS iN SERBia aND MoNtENEGRo

Emil Frey Group to become General Distributor for Daimler in Serbia and Montenegro

22 GREat CHallENGES liE aHEaD oF uS BrAnIMIr GvozDenović, Montenegrin Tourism and Sustainable Development Minister

26 RESPoNSiBlE iNvEStMENt rüDiGer scHulz, CEO of crnogorski Telekom and President of Montenegrin Foreign Investors Council (MFIC)

29 CREatiNG tHE FutuRE snežana ivanović, CEO of Siemens Montenegro

30 MoNtENEGRo: SMall But

DyNaMiC micHael scHmiDt, Director of the Delegation of the German Economy in Serbi

32 ECoNoMiC aDvaNtaGES oF a SMall CouNtRy Duško knežević, President of Atlas Group

34 PaRtNERS woRtHy oF attENtioN velimir miJušković, President of the Montenegrin Chamber of Commerce

40 GREat PotENtial Economic Cooperation between Montenegro and Germany

42 CoNStaNtly aDvaNCiNG CooPERatioN Bilateral economic cooperation, by milan Vuckovic

44 wHERE GoD SHowERS GiFtS Tourism in Montenegro

COnTEnTS

2013

German & Montenegrin Economic Cooperation

Challenging Business Opportunity


Montenegro was ruled by its bishops until 1696, and then by the house of petrović-njegoš until 1918. froM 1918, it was a part of yugoslavia. on the basis of an independence referenduM held on 21 May 2006, Montenegro declared independence on 3 june of that year.

Montenegro has privatized its large aluMinuM coMplex - the doMinant industry - as well as Most of its financial sector, and has begun to attract foreign direct investMent in the tourisM sector


the constitution of Montenegro describes the state as a "civic, deMocratic, ecological state of social justice, based on the reign of law." Montenegro is an independent and sovereign republic that proclaiMed its new constitution on 22 october 2007.

the first literary works written in the region are ten centuries old, and the first Montenegrin book was printed five hundred years ago. the first state-owned printing press was located in cetinje in 1494, where the first south slavic book, oktoih, was printed the saMe year

brandy “loza” is the best aMbassador of Montenegrin vineyards. strenght of this brandy is 50 degrees. it is best to drink with prshuta, sMoked Meat and cheeseonly 6000 up to 8000 liters per year are produced!

the european council (ec) granted candidate country status to Montenegro at the deceMber 2010 session. Montenegro began negotiations to join the ec in june, 2012.

the Montenegrin adriatic coast is 295 kM long, with 72 kM of beaches, and with Many well-preserved ancient old towns. national geographic traveler (edited once in decade) features Montenegro aMong the "50 places of a lifetiMe"


comment

Thanks to its economic might and development,

Germany was in a position to help all of Europe and

“extinguish hotspots” in economies engulfed by the

global economic downturn. Therefore, it was only natural

for Germany to become the main partner and anchor for

all EU-hopefuls – the countries that are waiting to become

members. If we look at the former Yugoslav republics,

which are anticipating becoming EU members, Montenegro

is definitely the closest to that goal. If we consider the posi-

tions of both countries, Germany is not unexpectedly an im-

portant partner to Montenegro, particularly in bilateral co-

operation and assistance. In the period between 2000 and

2009, the German development aid, allocated for the im-

plementation of structural reforms, reconstruction of infra-

structure, economic development (primarily of SMEs) and

tourism, amounted to €250 million, making Germany the

third biggest bilateral donor to Montenegro.

In terms of the economic cooperation, both

countries have the good will to develop it, but

this potential is still not being fully utilized. In the

past ten years, German investors invested a to-

tal of €179.2 million in Montenegro. The most im-

portant German investment was Deutsche Telekom’s ac-

quiring Telekom Montenegro via the Hungarian compa-

ny Matáv. The global electronics leader Siemens AG has

opened a branch in Montenegro, thus increasing its mar-

ket share in Montenegro. Another German company,

WTE from Essen and Budva municipality concluded the

Agreement on the construction of a waste water treat-

ment facility on the Budva Riviera worth €58 million in

2009. This will be the biggest environmental project ev-

er implemented on the Montenegrin coast. Also, Sachsen

Wasser GmbH has been officially operating in Tivat since

September 2009 after having being chosen through a ten-

der to develop the capacities of Vodakom and the local

public enterprises Vodovod and Kanalizacija that operate

under Vodakom.

This overview of the most important German invest-

ments clearly shows a good incentive for further economic

cooperation which ought to develop in four segments – ener-

gy and energy efficiency, infrastructural development, tour-

ism and finance. The Montenegrin market could be especial-

ly interesting for German medium-sized companies following

the accession negotiations with the EU which could provide

fresh incentives for reform. The first German-Montenegrin

Business Forum, which took place last year, clearly set the

most important directions of the economic cooperation: en-

ergy, transport and utility infrastructure and services. The

German Chamber of Foreign Trade has announced that it

would assist Montenegrin companies in breaking into the

German market via the Chamber's regional structures.

We should also mention the clear determination of the

Montenegrin authorities to join the European Union. These

efforts haven't gone unnoticed, and this has been validat-

ed in the European Commission's report on Montenegro's

readiness to join the EU. The report states that the coun-

try's continuous progress in implementing reforms in key

areas qualify Montenegro for negotiations. The roles of the

national parliament and judiciary have been increased while

policies on anti-corruption, human rights and the protection

of national minorities have been reinforced. The authorities

have continued with the constitutional and public adminis-

tration reforms, so, now Montenegro plays a constructive

role in the region, as it fulfils its international obligations. ■

Great Potential forMediuM-Sized BuSineSSeS

The Montenegrin market could be especially interesting for German medium-sized companies. The first German-Montenegrin Business

Forum, which took place last year, clearly set the most important directions of the economic cooperation: energy, transport and utility

infrastructure and services. Jovana GliGoriJević Editor

In terms of the economic cooperation, both countries have the good will to develop it, but this potential is still not being fully utilized


Jovana GliGoriJević Editor

auction seeauction south east europe

Belgrade OfficeMakenzijeva 67, 11000 Belgrade, Serbia

Tel: +381 11 2450 508; Fax: +381 11 2450 [email protected]

Podgorica OfficeBul. Sv. Petra Cetinjskog 1A, 81000 Podgorica Tel. +382 20 246 166; Fax. +382 20 246 167

Mobile: [email protected]

Fast & Fair Sale!

www.auction-see.com


Fruitful Development Cooperation

During the fourteen years that Germany and Montene-gro have been working together on development issues many joint successes have been achieved, and the port-folio of ongoing projects continues to be impressive.

Germany is still Montenegro's second biggest donor, coming after the EU but before the US and Turkey.

■ Mr. Niebel, you will be coming on an official visit to Montenegro in August. What are the priorities of your visit's agenda?- The agenda for my visit to Montenegro is, on the one hand, to find out how the current projects are progressing, and, on the other, I am also keen to learn more about the progress that has been made with regard to the process of moving closer to the EU.

■ In the last ten years, Germany has invested over €250 million in Montenegro through various channels. Are you satisfied with the efficiency of these investments?- For our side – by which I mean, development cooperation – I can answer that question with a clear “yes”. I think that it has

obviously paid off that we Germans led the way in 1999 – imme-diately after Yugoslavia broke apart – and got involved in build-ing up the country, particularly its infrastructure. Just think, for example, of how the water supply and sanitation system has been rebuilt all along the Adriatic coast or how the hydropower stations at Piva and Perucia have been restored to working or-der. Together these two plants provide for about three quarters of Montenegro's energy needs. However, successful cooperation always needs a reliable and

committed partner – and Montenegro has shown itself to be a fit-ting partner right from the start. It also helped that both Monte-negro's politics and its economy are clearly pro-European – that has made a lot of things easier. I think that, through our cooperation, we have been able to make a not insignificant contribution towards stabilising both Monte-negro and the region as a whole. That in turn has been the basis

The ties between Montenegro and Germany are reflected in many different areas, this includes very fruitful development cooperation

Until about 2016 we will continue to be actively engaged in projects in Montenegro. Our ongoing and planned projects add up to a total of over €300 million

dirk nieBel, German minister of eConomiC Cooperation and developmentInTErVIEw

exClusive


Fruitful Development Cooperation for Montenegro's success in moving closer to the EU. And Germa-

ny has also benefited from this cooperation – it has opened and is still opening doors for many German businesses. And although Montenegro still has a good way to go, I think the country can be very proud of what has been achieved so far!

■ Following Croatia joining the EU, Montenegro is now the number one candidate among West Balkan countries in terms of opening of the accession negotiations. From your perspective, what are the priorities that Montenegro needs to adhere to in order to expedite its accession to the EU?- Here we are talking about precisely that part of the journey which still lies ahead for Montenegro: It is not just by chance that the pri-orities of the accession negotiations are basic rights and justice, and fighting organised crime and corruption. In our view Montenegro's flanks are still open in that regard and there is still a great deal of work to be done. However, if Montenegro is serious about wanting to become a member of the EU, then it will have to meet EU-defined standards with regard to the rule of law, establish stable democratic and free-market structures, observe wide-ranging human rights and minority rights, and bring its legislation and government ad-ministration into line with EU standards. I see huge challenges still ahead that Montenegro needs to be aware of. Nevertheless, we will do everything we can to help Montenegro realise its am-bitions to become an EU member and I am convinced that Montenegro will address these problems with the same determination that we have come to know from our past years of cooperation.

■ In the last two years, Germany and Montene-gro have noticeably increased their contacts. What have been the results of the contacts be-tween the two countries so far?- One result, if you take me personally, is that, although this is admittedly my first time in Montenegro, I am on my third visit to this region since taking office as development minister. The whole south-eastern region of Europe is very important to us. We are convinced that we must do everything we can to pro-mote the integration of this region – so that, in the best case sce-nario, instead of just being next to one another, the individual countries will start working with one another. That is the best strategy for reconciliation and lasting peace – and I am sure that the countries of south-eastern Europe share that same interest. For Montenegro in particular, we want, for the future, to stop being development cooperation partners. That is not meant in a negative way, quite the opposite! Montenegro has made good progress, so that we have decided to withdraw to an extensive degree, but not yet completely. Until about 2016 we will contin-

ue to be actively engaged in projects in Montenegro. Our ongo-ing and planned projects add up to a total of over €300 million. And it will still be possible for us to offer Montenegro support beyond 2016, on a case-by-case basis, within the framework of regional programmes. We have already done that in the case of regional projects in the field of energy efficiency and water sup-ply. We are not planning to just drop everything, we will con-tinue to be present in Montenegro.

■ How has Germany helped, and will help, Montenegro on its way to the EU membership?- I think that, through our early involvement in Montenegro right from the start, we have shown that we want Montene-gro to be part of the European family. That has been a recipro-cal process: Montenegro also indicated its intentions early on, embarking on a course that led towards the EU – and we have supported that course, not only politically. Our cooperation has helped to stabilise Montenegro and advance the country's de-velopment. The goal is now within reach: a good year ago the European Union began accession negotiations with Montene-gro. However, our basic way of doing things is also that we do not break off projects in the middle – all our committed projects will be carried out properly right to the end as agreed. That is another aspect of a partnership based on trust, such as we have with Montenegro.

PARTNERsSuccessful cooperation always needs a reliable and committed partner – and Montenegro has shown itself to be a fitting partner right from the start

EUThrough our early involvement in Montenegro right from the start, we have shown that we want Montenegro to be part of the European family

ENviRONMENTThe more stable the overall environment is, the more attractive the location becomes for foreign companies – including German ones

Thanks to its location on the Adriatic and its largely unspoilt countryside, Montenegro therefore has excellent potential for developing tourism as the mainstay of its economy. i could imagine that, sooner or later, many more German tourists will discover your beautiful country for themselves


■ Which economy segments have the biggest potential for more trading between the two countries?- You don't need to be an economist or an analyst, all you need is two good eyes to see what potential and what riches your country has to offer. Some of the region’s finest sandy beaches are in Montenegro, with the bathing season lasting from May to November and with spectacular nature parks offering diverse op-portunities for sports and nature tourism. Thanks to its location on the Adriatic and its largely unspoilt countryside, Montenegro therefore has excellent poten-tial for developing tourism as the mainstay of its economy. I could imagine that, sooner or later, many more German tour-ists will discover your beauti-ful country for themselves. However, I do see areas where some catching-up is needed: if this potential is to be fully har-nessed, further improvements will need to be made in the in-frastructure, especially in coast-al areas, to bring it up to inter-national standards. An unin-terrupted electricity supply and modern water and sanitation systems are certainly a must. It is also true for other areas of the economy that, the more stable the overall environment is, the more attractive the location be-comes for foreign companies – including German ones!

■ Several dozen German companies have been oper-ating in Montenegro with Montenegro expecting FDIs to be made in the production sector. Do you think that that is a realistic expectation considering the Montenegrin economic potential that is on offer to direct investors, and do you think that Monte-negro is ‘visible’ enough to the German economy and Ger-man businesses?- I am pleased to have a group of business people with me as part of the delegation on my visit. You can believe me when I say that my fellow travelers have a genuine interest in Montenegro. How-ever, your question does of course touch on an aspect that we do need to address: we need to make Montenegro and the region as a whole with all its possibilities more well known. Montenegro is an interesting location for international businesses by reason of its position on some important transit routes. The representatives of companies and business associations accompanying me on my visit will certainly use this opportunity to make valuable contacts and to network. I will also be meeting with the young graduates from the Scholarship Programme of German Industry, which

my Ministry supports. They are all multipliers and will gradually help enhance the links between our two countries so that, in ad-dition to the political relationships, economic and also personal relationships are built up. I also know that Montenegrins are very interested in Germany, both the country and its people. I would be pleased and supportive if, in return, the people in Germany were to develop an even greater interest in Montenegro.

■ Montenegro is certainly one of the most attractive tourist destinations in the region, with a huge untapped tour-ist potential. To what extent is Germany going to support this important economic segment in Montenegro?- Within the framework of our cooperation we have already made a start in many areas – for example, our experts have provided tailored advice to sup-port the development of “hike and bike” tourist activities in the mountains. We were also involved in the further devel-opment of the government's tourism master plan, which is a kind of blueprint for the whole tourism industry. During my visit I will also be going to Lake Skadar. Here we have begun a transbound-ary project to protect the bio-diversity of a unique natural landscape on the border be-tween the two neighbouring countries. This project is not only creating jobs – it is also

developing the hinterland for tourism, far away from the areas typically visited by people interested in beach and bathing holi-days. With regard to the coastal region, I would like to repeat that, without improvements in the infrastructure, it will be hard to attract more tourists.

■ During your earlier visits to the West Balkans, you have underlined regional stability on many occasions as being important for economic growth in this region. What is your view of today’s business climate for investors willing to in-vest in Montenegro and the region?- I think that Montenegro – like its neighbours – is a very suit-able location for major trading chains or suppliers of car parts, for example. The economic environment and the geographic loca-tion are good. Montenegro is one of the countries in the region that is on the right track. Particularly when it comes to stabil-ity, the country has made great progress. That is also reflected in the World Bank's Doing Business Report: here Montenegro has

i would like to repeat that, without improvements in the infrastructure, it will be hard to attract more tourists


moved up 6 places compared with the previous year from 57th to 51st place out of a total of 185 countries.

■ Which economic segments do you think have a potential for cooperation between the West Balkan countries on projects that could involve German investors too?- All in all – as we have talked about already – tourism is a sector with great potential. Sus-tainable, gentle tourism in par-ticular is an area that is gaining in popularity, in Germany and elsewhere. I see good opportu-nities here for cooperation, in-cluding cooperation with Ger-man businesses and investors. I could imagine that the tourist sector can offer opportunities – particularly in Montenegro – to spur urgently needed structural

change. Montenegro is not the only country facing such chal-lenges. Many parts of Germany have either already made the difficult and painful journey away from heavy industry to-wards a more service-based economy, or they are in the middle of this transition. Shar-ing and exchanging experience in this area could certainly prove fruitful. All in all, I am convinced that it will be small and medium-sized enterprises in particular that have the greatest influence on the job situation and on further economic de-velopment both in Montenegro and throughout the whole re-gion. I think Montenegro would be well advised to continue on this path. I am eager to see what other impressions I will have to take home with me from my visit to Montenegro. ■

Montenegro is an interesting location for international businesses by reason of its position on some important transit routes. The representatives of companies and business associations accompanying me on my visit will certainly use this opportunity to make valuable contacts and to network.


Dynamic Progress Towards the eu

Relations between the Federal Republic of Ger-many and Montenegro are mainly character-

ized by German support for eco-nomic reforms in the framework of the European and Euro-Atlantic integrations of Montenegro. Ger-man development aid has been used towards the implementation of structural reforms, rehabilita-tion and advancement of financial sector, construction of infrastruc-ture, and the development of the economy (SMEs) and tourism. Germany is the fourth largest bi-lateral donor in Montenegro. “The financial assistance for Montene-gro is mainly realized via the Ger-

man International Cooperation Society (GIZ) and German devel-opment bank KfW,” says Monte-negrin Economy Minister Vladimir Kavarić, and adds: “Through the GIZ, the German government has launched a project called Advi-sory Services to Energy Efficiency (ASE). In the meantime, the Ger-man Federal Ministry for Econom-ic Cooperation and Development has provided additional funding

for the project. The German Re-construction and Development Bank (KfW) has been operating in Montenegro since 2001 and has been a partner to the Montenegrin government in funding and imple-menting a number of projects, par-ticularly in utility infrastructure, energy and banking sectors.”

■ In which economic sectors do these two countries share com-mon interests? How can you fur-ther bolster the economic coop-eration with Germany?- With support from the GIZ, the Embassy of the Federal Republic of Germany in Montenegro and the Delegation of German Economy in Montenegro and Serbia (AHK), the Montenegrin Chamber of Commerce and the German Com-mittee on Eastern European Eco-nomic Relations (OA) held a Mon-tenegrin-German Business Forum in Budva in May 2012. Over 200 business people from both coun-tries participated in the Forum.

The global crisis has disrupted Montenegro's economic progress. However, the Montenegrin government has recognized the protection of investments and the development of a competitive business environment as strategic priorities.

Each step closer to the EU translates into improving living standards and living conditions in our country, as well as creating more stable conditions for further development

Vladimir KaVarić, montenegrin economy ministerInTErVIEw

foto

da

rk

o J

ova

no

viC


The main conclusion of this event was that energy, energy efficiency, utility infrastructure and tourism were the priority segments in the economic cooperation between the two countries.

■ Regarding foreign invest-ments, are you happy with what Montenegro has been offering to investors in terms of quality of the business envi-ronment, that is to say, reduc-ing the red tape, corruption and increasing predictability for doing business?- In the last few years, Montene-gro has been focusing on having an open market and fostering the private sector as the driving force behind economic growth and de-velopment. The measures that we have been implementing are geared toward reducing tax rates and customs duties, proportional taxation, the free flow of goods and capital (there are no restrictions on capital transactions), and the free repatriation of profit. We also have the euro as the national cur-rency, and foreigners are given the same treatment as nationals. Con-sidering that we are a small and open economy, we are very sus-ceptible to global economic chang-es. As a result, the global crisis has disrupted Montenegro's economic progress, and reduced the overall foreign aggregate demand in the country. Consequently, all the de-ficiencies of our economic system have been revealed. In order to overcome these shortcomings, the Montenegrin government has rec-ognized the protection of invest-ments and the development of a competitive business environment as strategic priorities. Bolstering

business environment has been widely recognized as an effective tool for further improvement of free market institution.

■ Montenegro is on its way to becoming an EU member. In that context, what are the priorities of the Montenegrin

government when it comes to investors, and how advanta-geous is to invest in Montene-gro compared to other region-al countries?- Montenegro has been progress-ing dynamically toward EU mem-bership. Each step closer to the EU translates into improving living standards and living conditions in our country, as well as creating more stable conditions for further development. At the same time, this progress will result in higher employment and improving other aspects that are crucial for bettering the lives of our population. In order to improve our long-term competi-

tiveness, we need to continue de-veloping our business environment and implement structural and reg-ulatory reforms. An advanced and stable business environment is the key priority and the key prerequisite for economic growth. Apart from implementing structural reform policies and improving our invest-ment and business environment, we have been continuously work-ing on development programmes too. These programmes are devised for SMEs, for attracting fresh capital and creating conditions for realiza-tion of new investments. Our aim is to use all economic resources ef-ficiently and increase the competi-tiveness of our economy.

■ Out of all foreign investments made in Montenegro, how many of them are German and which

economic segments have re-ceived German investments?- In 2012, direct investments from the Federal Republic of Ger-many amounted to €14.6 million, while, in 2011, they stood at €8.1 million. The most important Ger-man investment in Montenegro is Deutsche Telekom acquiring Montenegro Telekom via Hungar-ian Matáv. The global electronics conglomerate Siemens AG has opened a branch in Montenegro. Another German company WTE Wassertechnik from Essen and the Budva municipality have conclud-ed an Agreement on Construction of a Waste Water Treatment Fa-

Considering that we are a small and open economy, we are very susceptible to global economic changes. As a result, the global crisis has disrupted Montenegro's economic progress, and reduced the overall foreign aggregate demand in the country

dEvElOPMENTIn the last few years, Montenegro has been focusing on having an open market and fostering the private sector as the driving force behind economic growth and development

iNvEsTORsWe expect investors to provide their support in sustainable utilization of our coal reserves and hydro-potential, particularly in new clean energy resources.

NATOConsidering the collective security concept in NATO, Montenegro would become a safer and more secure place for foreign investments.


cility on the Budva Riviera worth €58 million. Also, Sachsen Was-ser GmbH has been officially op-erating in Tivat as a consultant in developing capacities of Vodakom and local public enterprises.

■ The Montenegrin government has been doing a lot on advanc-ing the energy sector. What has been done so far and what are the future plans in this respect?- In terms of the energy sector, Montenegro is known for its posi-tive reforms, advancing business environment and investments. Our legislative framework, namely our energy and energy efficiency leg-islation, as well as our regulatory framework, predictability and relia-bility of the entire business environ-ment, are the main strategic direc-tions of our energy sector. I would like to remind you that Montenegro is a member of the Energy Commu-nity and therefore shares the same goals with the Energy Community, namely increasing the safety of energy supplies, attracting invest-ments in construction of new en-ergy production and transmission facilities, better utilization of renew-able energy resources, advancing energy efficiency, bolstering market competition and improving envi-ronmental situation. Considering that EU regulation pro-vides a legal framework for the Ener-gy Community Treaty, Montenegro, as a member of the Energy Commu-nity, must harmonize its legislation with EU energy and environmental protection directives. The imple-mentation of obligations stemming from the Energy Community Treaty is hugely important not only for the success of our energy reforms, but also for the overall European inte-gration process and economic devel-opment of our country. In line with our commitments, Montenegro has been implementing energy sector reforms in legislative and regulatory aspects, in addition to institutional and organizational aspects.

■ How large is the investment capacity of these projects, and where do you expect foreign in-vestors to step in?- The investment capacity of these energy projects has been estimated

at close to €2 billion, not counting oil and gas whose financial ‘weight’ will be known once we launch an oil and gas research tender, now in its final stage. We have already been noti-fied of the interest shown by globally renowned energy companies. We have 20 companies expressing their interest (for participating in the ten-der) with five of these companies be-ing among the top ten global energy companies. We expect investors to provide their support in the sustaina-ble utilization of our coal reserves and hydro-potential, particularly in new clean energy resources. Through joint efforts, we will create a valuable export product and, apart from creat-ing overall energy supply stability in the country thanks to a transmission infrastructure which we have been implementing together with Italy, we shall have a valuable valorisation on the European market.

■ How much does the progress in the Euro-Atlantic integration process affect international economic cooperation, particu-larly in view of investments?- If Montenegro were a NATO member, this would just validate its reputation as a stable and safe (risk-free) investment destination which, in turn, would bring the country many economic benefits that would contribute to increas-ing and sustaining its dynamic eco-nomic development.The countries that have joined NATO have recorded higher in-vestments due to heightened in-terest by investors for investing in progressive and politically stable economies. All NATO members be-long to a group of the most prosper-ous countries in the last 60 years. The experiences of these countries show that, considering the col-lective security concept in NATO, Montenegro would become a safer and more secure place for foreign investments. Also, we should men-tion the long-term economic ben-efits that would lead to a higher credit rating, investment stability, higher aggregate demand, higher GDP and general development of Montenegrin economy.

■ Unbalanced regional devel-opment is certainly one of the weak spots of Montenegrin economy. Do you have strate-gies and plans for improving the current situation?- Yes, we do have strategies and plans whose goal is to reduce re-gional development differences. Essentially, there is the Regional Development Strategy for Monte-negro 2010-2014 and an action plan for the Strategy’s implemen-tation, apart from strategic plans at the local level. Spatial plans are also very important for achieving more balanced regional develop-ment, as are national sector strate-gies, especially those that apply to development of SMEs, energy (the

Considering that EU regulation provides a legal framework for the Energy Community Treaty, Montenegro, as a member of the Energy Community, must harmonize its legislation with EU energy and environmental protection directives


energy strategy covering the period until 2030 is currently being drafted), agriculture and tourism. The government has also started to work on drafting the 2014-2020 Regional De-velopment Strategy.

■ As the Montenegrin Economy Minister, are you sat-isfied with the amount of foreign investments made in Montenegro?- In 2012, the net FDI influx in Montenegro was €461.6 mil-lion which is 18.6% growth compared to 2011. The gross FDI influx was €633.7 million, a 28% hike compared to 2011. The higher FDI influx is a result of higher investments in compa-nies and banks (34.9%), in real estate (22.7%) and of settling of intercompany debts (22.5%). Immediately after declaring its independence, Montenegro was the number one country in terms of FDI influx in the region. Of course, recent global events have negatively affected FDI flows, but the implemen-tation of strategic projects like building a motorway and the second unit in the Pljevlja thermal power plant will certainly substantially contribute to a higher FDI in Montenegro even during this time of cautious investing.

■ The biggest Montenegrin exporter – the Podgorica Aluminium Plant (KAP) – has been struggling for some time now. Is there an end to the troubles in the KAP, and what has the government been doing in this respect?- The efforts that the Montenegrin government has been investing in the last few years, especially since the onset of the global economic downturn which has been very hard on the aluminium industry, were geared toward helping the biggest Montenegrin exporter to recover. However, these ef-forts were not sufficient and, on top of all existing problems with the company’s management, especially when it comes to the problem with power supply and various political prob-lems, we were unfortunately unable to reach a unified stand about the solution for the company’s problems. All of this has lead to KAP’s now being bankrupt and having to deal with the risks that come with bankruptcy. Unlike KAP, the Nikšić Ironworks (Željezara Nikišić) is a good example of a company that, although undergoing bankruptcy procedures, has man-aged to attract interest from a renowned investor. We think that this company now has a realistic chance of becoming successful. Although the situation in the Aluminium Plant is very different compared to other such companies, we still hope for a good outcome, namely for the bankruptcy to lead to the company’s recovery instead of extinction. ■

The efforts that the Montenegrin government has been investing in the last few years, especially since the onset of the global economic downturn, were geared toward helping the biggest Montenegrin exporter to recover


Constructive and supportive

The German government has long supported and continues to support the development of Monte-

negro in many senses. Germany has sponsored and funded many improvement projects, contrib-uted know-how and expertise, and lends its help to bolstering pub-lic institutions and their proper administration. All in all, coop-eration between the two countries – as described by H.E. Mr. Pius Fischer, Ambassador of Germany to Montenegro – has been char-acterized as excellent. In this ex-

clusive interview, Mr. Fischer talks about some of the most prominent areas of this cooperation and points out some of the potential which lies ahead. “We might be critical,” the ambassador notes, “but always in a constructive and supportive man-ner. Germany wants to see Monte-negro in the European Union – as

a democratically consolidated and economically healthy country.”

■ The region of the Western Bal-kans underwent significant tur-bulence over the past 20 years, and we hope this will end with en-trance of these countries in the EU. How do you see this process when it comes to Montenegro?- Montenegro stands out in the Western Balkans as a multi-ethnical and multi-religious country with considerably internal stability and good neighbourly relations with all of its five neighbours. It is leading by example and thus contributes significantly to regional stability. Measured by its per capita income it ranks third after Slovenia and Croa-tia amongst the successor republics of the former Yugoslavia. Following the reforms in 2011 and 2012, the EU has decided to open membership negotiations in June 2012. The chal-

The rule of law is the single most important condition for German business to invest in Montenegro. It will contribute to more business activities of German companies in Montenegro, the potential of which is surely not sufficiently exploited today.

h.e. mr. pius fisCher, amBassador of Germany to monteneGroInTErVIEw

Germany is a key partner of Montenegro on its path towards the European Union. if necessary, we might be critical, but always in a constructive and supportive manner


lenges now are to maintain the reform momentum and to strengthen the rule of law in Montenegro sustainably. This includes a drive to fight corruption and organized crime effectively. There is no doubt that the pace of Montenegro’s accession to the EU will first and fore-most depend on the progress achieved in these crucial areas.

■ How would you rate the overall bilateral cooperation of the two countries?- Our bilateral relations are excellent and have gained momentum. Both our political dialogue and the practi-cal cooperation between Germany and Montenegro are substantial. The increasing frequency of high ranking bilateral visits that have been recent-ly taken place amply illustrates this fact. Both Deputy Prime Minister and Foreign Minister Luksic and Deputy Prime Minister and Minister of Justice Markovic have already visited Berlin this year, meeting with their respec-tive counterparts and, inter alia, mem-bers of the German Bundestag. Now the German Minister for Economic Cooperation and Development, Dirk Niebel, is paying a visit to Montene-gro, underlining our commitment to Montenegro. Germany is a key part-ner of Montenegro on its path towards the European Union. If necessary, we might be critical, but always in a constructive and supportive manner. Germany wants to see Montenegro in the European Union – as a democrati-cally consolidated and economically healthy country.

■ What are the key sectors in which cooperation between Ger-many and Montenegro is domi-nant? - Development cooperation focuses on some of the key areas for the eco-nomic development of Montenegro:

energy, waste water management and tourism. The German Develop-ment Bank KfW, for example, financ-es the sewage systems around the Bay of Kotor and the construction of several waste water treatment plants between Herceg Novi and Ulcinj. In

the energy sector, the German KfW provides low interest loans for the modernisation of Montenegro’s ag-ing power plants and the transmis-sion lines necessary for the intercon-nectivity of the power grid of Monte-negro. KfW also facilitates the ener-gy-efficient rehabilitation of some 30 schools in Montenegro, whereas the GIZ has contributed significantly to develop tourism in the Montenegrin hinterland (hiking and biking). In support of the EU accession process, Germany makes also substantial contributions to Montenegro’s ef-forts to strengthen the rule of law. In addition to two German-led EU Twinning projects in the area of cor-

ruption prevention and the reform of the penitentiary system, the German government will second a renowned judicial advisor to the Minstry of Jus-tice in order to help comprehensively implement the judicial reform agen-da in the years to come.

■ How does this affect the busi-ness environment?- The rule of law is the single most important condition for German busi-ness to invest in Montenegro. It will contribute to more business activities of German companies in Montene-gro, the potential of which is surely not sufficiently exploited today. At a German-Montenegrin Business forum organised in May last year, some 200 Germany companies have shown an increasing interest in Montenegro, provided that a favourable investment environment will take root here.

■ Germany supports Montenegro also in respect to establishment of democratic, free and transparent market and economic structures. How do you rate the progress in this segment of cooperation?- Transparent procurement pro-cedures and a reliable legal frame-work are important issues regularly

Following the opening of the membership negotiations in June 2012, too little progress has been made on the substance of chapters 23 and 24

COOPERATiONBoth our political dialogue and the practical cooperation between Germany and Montenegro are substantial

CONdiTiONThe rule of law is the single most important condition for German business to invest in Montenegro

ECONOMyBesides tourism, the energy sector is the most promising area for economic development in Montenegro


raised by German companies. The tax climate is generally favourable to foreign investment in Montenegro, but retroactive taxation in the tel-ecommunications sector has raised doubts in the past, to give you one example. Administrative procedures, for example for construction permits or public tenders, are sometimes not entirely transparent or too cumber-some, and can be further improved. All in all, I am confident because I see the commitment on the side of the Prime Minister and the government to improve the overall business envi-ronment, which is especially needed if Montenegro wants to attract more investors from the EU member states.

■ Like with its neighbours, the core of the accession negotia-tions of the EU and Montenegro are in chapters 23 and 24: the rule of law, judiciary sector, hu-man rights and the fight against corruption and organized crime. What do you think of the pro-gress in these sectors?- Following the opening of the mem-bership negotiations in June 2012, too little progress has been made on the substance of chapters 23 and 24. This might be partially due to the fact that Montenegro was going through a dou-ble election year – with parliamentary elections in October and the presiden-tials in April. A period of political cam-paigning is rarely conducive to difficult political decisions. However, we are now encouraged by attempts to rectify certain deficiencies in the electoral pro-cess and investigate the “Snimak” af-fair. It still has to be seen what will hap-pen with some court verdicts that have been quashed by the appeals court. These were verdicts which had been previously presented as successes in the fight against corruption and organ-ized crime. I can see that Montenegro has now redoubled its efforts to make progress in the areas of chapters 23 and 24. An agreement on the consti-tutional reforms, needed to strengthen the independence of the judiciary, is within reach and would be a major step

ahead. Both the ruling parties and the opposition parties involved in finding a compromise here deserve our recogni-tion. Furthermore the chief negotiator for EU accession has submitted substan-tial actions plans on chapters 23 and 24 with very concrete objectives and clear benchmarks. These steps lead the way in the right direction.

■ In May this year, a contract was signed concerning the loan between the German Bank for Development (KfW) and the Mon-tenegrin Electric Transfer System (CGES) with a value of €25 million for the construction of a transmis-sion line between Montenegro and Italy. How important is this project for the development of Montenegro and of the region?- Besides tourism, the energy sector is the most promising area for economic development in Montenegro. This

country clearly has the potential of becoming a regional energy hub and even a net exporter of energy if it takes the necessary decisions. If Montene-gro further exploits the potential for renewable energies, if it resolutely cuts energy subsidies for unprofitable com-panies and if it improves the connec-tivity of energy transmission networks within the region, the energy sector can be a true driver for economic de-velopment in Montenegro. The Trans-Adriatic pipeline (TAP) offers another perspective for Montenegro to serve as and profit from its position a potential transit country for energy.

■ The German government is supporting different projects of infrastructural and security im-portance in Montenegro, such as ammunition storage and the like. What are the criteria based on which the German government is making such donations?- When considering the funding of a concrete project, three conditions must be met. First, the project must serve the aims and objectives of German foreign policy, for instance those of the Stabil-ity Pact for South East Europe. Second, the project should yield a tangible re-sult within a reasonable time span and, third, efficient and financially sound management by the Montenegrin partners is required. The rehabilitation of the ammunition storage in Brezovik, which you have just mentioned, fulfils all these requirements, and it is there-fore a small but significant success story of our cooperation.

■ When it comes to cultural and educational exchange, what is the level of development? - In the field of education we par-ticularly support the promotion of German language courses at higher secondary schools and the foreign language department of the Univer-sity in Niksic. German is the mother tongue of approximately 100 mil-lion Europeans, it is without doubt one of the most important languag-es in the EU. ■

An agreement on the constitutional reforms, needed to strengthen the independence of the judiciary, is within reach and would be a major step ahead.


Daimler to restructure business in serbia and Montenegro

In Serbia, Daimler has been selling and servicing Mercedes-Benz pas-senger cars, vans, trucks and bus-ses together with smart, Fuso and

Setra since 1996. Serbia and Montene-gro are the only markets in the region where wholesale functions for Daim-ler vehicles are handled by a Daimler subsidiary, however, the restructuring will have the Emil Frey Group step in and take over these functions.By winning Emil Frey Group as a part-ner in these markets Daimler conse-quently pursues its business strategy and successfully implements its antici-pated set-up.At the signing ceremony Mr. Peter Alexander Trettin, President and CEO Daimler for Central and Eastern Eu-rope, Africa and Asia, said: “Today marks the beginning of a new chapter for Mercedes-Benz business in Ser-bia and Montenegro: The Emil Frey Group as one of the leading groups in the automotive business in Europe will become a part of our distribution net-work. We are very glad that we could win such a professional and experi-enced partner to further advance our business in these markets. We elabo-rated this new setup very diligently,

striving to optimize the business struc-ture on both wholesale and retail level. Our clear objectives thereby have always been: to anticipate and meet our customers’ needs to the maximum extent and to efficiently exploit avail-able market potentials. We are con-vinced that the new setup with Emil Frey Group as a partner is a further step forward in the development of this market. Together, we will improve the leading position of our brands in Serbia and Montenegro.”According to Mr. Walter Frey, the President and Chairman of the Emil Frey Group: “Our company has recog-nized the potential of the automotive business in Serbia and Montenegro. Managing business for Daimler in these markets is a great opportunity for the Emil Frey Group and we are very proud to enter into a long-term partnership with Daimler. We will tap the full potential of the premium market to maintain the position of Mercedes-Benz as the brand of the first choice and to strengthen the sales and service activities in these countries in order to maximize the performance of Mercedes-Benz.”This restructuring will not affect business operations in the country, the most important automobile mar-ket in the region. The current distri-bution structures will remain as they are, so that continuity in contact

with all Mercedes-Benz clients will be ensured. The same applies for vehicle prices. The company will carry on training of its own staff as well as per-sonnel of the authorized Mercedes-Benz dealer network using state-of-the-art teaching tools, equipment and methodology in the most ad-vanced training center in the region. As the General Distributor, the Emil Frey Group has a customer-oriented and market-driven approach and a first class customer and dealer care.In order to ensure continuity of Daim-ler’s commitment to this market Mr. Rolf-Juergen Seyerle, current CEO, will remain in his position. The Emil Frey Group is a family-owned Swiss company, founded in 1924 by the mechanic Emil Frey, with headquarters in Zurich, Switzerland. The company is mainly focussed on the automotive business (car wholesale, car retail, car finance, and car and part logistics) and operates in Switzerland, France, Ger-many, Hungary, Czech Republic and Poland. The Emil Frey Group also owns various import companies, numerous retail outlets and finance companies in these countries. ■

Daimler AG and Emil Frey Group, one of Europe’s leading groups in the automotive business signed General Distributor Agreements for Serbia and Montenegro. These agreements will become effective upon approval of the restructuring of Daimler's operations in Serbia by the relevant authorities.

emil frey Group to BeCome General distriButor for daimler in serBia and monteneGroCOrPOrATE

in order to ensure continuity of daimler’s commitment to this market Mr. Rolf-Juergen seyerle, current CEO, will remain in his position

Further information from Daimler is available at: www.media.daimler.com www.daimler.com

Mr. Peter Alexander trettin, President and CEO Daimler for Central and Eastern europe, africa and asia (left), mr. rolf-Juergen seyerle, ceo mercedes-benz Srbija i Crna Gora and mr. Walter Frey, the President and Chairman of the Emil Frey Group


Great Challenges lie Ahead of us

During the recent meeting of the Montenegrin Tourism and Sus-tainable Development Minister Branimir Gvozdevnoić and Ex-

ecutive Director of the Netherlands Constitu-ency in the World Bank Frank Heemskerk, the two officials concluded that Montene-gro's priorities are having tourism of the highest quality and forming tourism links between the country's north and south. In order for these priorities to be implemented, several other measures need to be applied – modernizing infrastructure, conforming to high environmental standards, legalizing il-legally built facilities and providing adequate waste treatment. All of the aforementioned measures come under the jurisdiction of the Ministry of Tourism and Sustainable

Development. We are talking to Minister Gvozdenović about the way in which these measures are going to be implementing and the challenges that lie ahead.

■ How do you plan to implement these priorities?- We have prepared an Action Plan for Tour-ist Season Preparation – the Tourism Reform Agenda. The challenge that we have to face is to devise a set of measures that would facilitate the construction of new tourist accommoda-tion and improving the quality of existing fa-cilities. Increasing hotel capacity is one of the key prerequisites for extending the tourist sea-son and, this year alone, 11 new hotels with over 630 beds have been opened. We have also started to harmonize our legislation with

the best practice cases in the world. We have also recently adopted the Law on Amend-ments and Supplements to the Law on Spatial Planning which will expedite the implementa-tion of investment projects. We expect large-scale investment projects to become a major driving force behind Monte-negro’s tourism development. One of these is a €500-million project in Kumbor with one of the biggest and most reputable travel agen-cies, One & Only, expected to arrive here. Also, there is the Porto Montenegro project which entails opening a new hotel called the Regent by 2014. Aman Resorts, also one of the big-gest global travel agencies, has completed its investment on the St. Stefan Island. On May 18, the foundation was laid for construction of tourist facilities in Luštica Bay, which is one of the biggest projects in the whole Mediterra-nean area. The works are progressing nicely, and I am confident that, in the following pe-riod, progress will be even more pronounced. The tourism projects are worth around €3 bil-lion so it comes as no surprise that the WTTC has ranked Montenegro as having the biggest total contribution in travel and tourism to GDP in the next ten years.

The tourism projects are worth around €3 billion so it comes as no surprise that the WTTC has ranked Montenegro as having the biggest total contribution in travel and tourism to GDP in the next ten years.

Branimir gVozdenoVić, montenegrin tourism and sustainaBle deVelopment ministerInTErVIEw

By uroš andijašević


■ In what segments does the Ministry col-laborate with the World Bank?- The Spatial Planning Management Sector (LAMP) and the Housing Development Sector have been cooperating with the World Bank on preparing the Project on Development of the Soft-ware for Recording and Categorizing Informal Settlements. After the project is implemented, we are going to have a database that will contain spatial information and information on informal settlements, their owners and the process of legal-izing these facilities. Together with the World Bank, the Environ-mental Sector and the Utility Sector have been implementing a priority project called ‘Industrial

Waste Management and Cleaning’ in five envi-ronmental hotspots in Montenegro which are also industrial waste dumpsites. The project will nominate a location that would be best suited for construction of a national hazardous waste land-fill. The project’s preliminary phase (worth US $1 million) is nearly completed.The World Bank’s Board of Directors is expected to make a decision soon as to whether to loan US $60 million to the Montenegrin government which would be spent on the further implemen-tation of the five environmental hotspots and na-

tional hazardous waste landfill project. Realizing this project is one of the major prerequisites for Montenegro joining the EU.

■ Does creating tourism links between the country’s north and south areas entail achieving a more balanced regional devel-opment in Montenegro and what needs to be done in that respect?- In order to have more balanced social and eco-nomic development in the country and create the prerequisites for increasing competitiveness of all areas, we have adopted the Regional Develop-ment Strategy and the Law on Regional Develop-ment. Primarily, more balanced regional develop-

ment is achieved by develop-ing infrastructural facilities, advancing the local economic development, facilitating pub-lic-private partnerships, aiding SME development and adopt-ing and implementing spatial planning documents. With the construction of the Risan-Žabljak road we have made a big leap forward in connecting the north and south areas in Montenegro and thus have fulfilled a key precondition for a better tour-istic valorisation of these areas.Our ministry’s goal is to cre-ate a tourist offer that will combine the uniqueness of diversity of the coastal and the northern part of our country.

Of course, we must not forget the hinterland of the coastal region, since some coastal municipali-ties are already developing rural tourism in the coastal hinterland of the main tourist centres.

■ How much have German investors been investing in tourism and sustainable devel-opment?- In June 2013, HTP Budvanska Rivijera and PEMI BAU AG GmBH, Berlin signed a contract stipulating PEMI BAU’s acquiring the Rivijera Hotel in Petrovac. At a later stage, PEMI BAU

AGENdAOn my meeting with Mr. Niebel we expect to discuss cooperation on implementing tourism and infrastructure development projects

GERMAN TOURisTsAccording to indicators, the number of German tourists who visited Montenegro this year has grown by 30%.

sTRATEGiC MARkETGermany, as the biggest outgoing tourist market, is one of the most important strategic markets for Montenegro.

The challenge that we have to face is to devise a set of measures that would facilitate the construction of new tourist accommodation and improving the quality of existing facilities


GmbH Berlin transferred the acquisition rights to Euromix Tours Company from Budva. This company has begun constructing a luxury 30,000 square metre hotel called the Rivijera Crystal, worth close to €32.5 million.Cooperation with Air Berlin began in 2011 when the Montengrin government adopted the Proposal for Introduction of Charter Flights of Air Berlin and the draft contact. In 2013, the contract on continuation of the cooperation with Air Berlin was signed. From November 15 to 17, 2012, Mon-tenegro was the host of the most impor-tant and the biggest gathering of Ger-man tourism businesses – the annual conference of the German Travel As-sociation (DRV – Deutscher ReiseVer-band). The conference has significantly improved the image of Montenegro, as well as promoted the Montenegrin tourist offer on the German market. However, its promotional benefits ex-tend even further. According to indi-cators, the number of German tourists who visited Montenegro this year has grown by 30%.Montenegrin authorities have been successfully cooperating with the GIZ on defining strategic tourism develop-ment guidelines in Montenegro, ana-lyzing the Montenegrin market and its potential, advancing human resources, developing climbing and cycling tour-ism and creating links between agricul-ture and tourism.

■ Is there any room for improve-ment in the cooperation between German and Montenegrin sus-tainable development and tour-ism sectors?- The Ministry of Sustainable Development and Tourism has been successfully collaborat-ing with the German Society for International Cooperation on implementing a number of projects – from setting up tourism develop-ment guidelines and drafting the Tourism Master Plan and several strategically impor-tant documents to implementing a number of smaller, but equally important, initiatives per-taining to developing and marketing our tour-ist offer, with an emphasis on national parks and the northern part of Montenegro.Germany, as the biggest outgoing tourist

market, is one of the most important strate-gic markets for Montenegro. I was very glad to see that the partners of our travel agents who cover the German market have reported on increase in number of German tourists in Montenegro in the first half of this year.

■ In terms of waste water management projects, it seems that German assis-tance is of crucial importance. Could you elaborate on these projects?- Several water supply and waste water man-agement projects have been implemented in coastal municipalities thanks to German as-sistance for Montenegro realized via the KfW Bank (Kreditanstalt für Wiederaufbau). So far, this financial assistance has been realized in four stages including a €10 million dona-tion. KfW has also provided a €68 million loan. This money was used to improve the

water supply through detecting and repair-ing locations where significant water loss had been detected.Also, KfW has provided a loan for construc-tion of 110 km of sewage lines, while the con-struction of a waste water treatment facility

in Herceg Novi has begun. Early next year, we expect the construction of two more such facilities to start – one in Bar and one that will cover the area of the municipalities of Kotor and Tivat.

■ What has the Ministry of Sus-tainable Development and Tour-ism been doing to attract more investments?- The Ministry of Sustainable Develop-ment and Tourism has a group of very complex jurisdictions, but, basically, the ministry logically integrates reli-ance on the space as a limited and non-renewable state resource. This endeav-our to treat the development policy in a complex and homogenous manner is the main motive behind functional cen-tralization of only seemingly diversified activities under the roof of one ministry, including tourism as one of the most important economic segments in Mon-tenegro. We should underline that, in the current atmosphere of limited eco-nomic resources, the ministry has im-plemented a new format of promotional communications with its surroundings. This format combines the promotion of the Montenegrin tourism offer with the promotion of the country’s investment environment and potential. As it turns out, such an integrated approach to promotion is only appropriate and eco-nomically prudent.

■ Montenegro has undertaken to resolve the problem with illegally built settle-ments in accordance with the Vienna Declaration on Informal Settlements in South East Europe. What progress has the country made in dealing with this problem and what have been the biggest challenges so far? - One of the priorities that the Montenegrin government has, on its way to full-fledged membership in the EU, concerns improving the work done by the public administration which also entails setting up a land registry

The spatial Planning Management sector (lAMP) and the Housing development sector have been cooperating with the World Bank on preparing the Project on development of the software for Recording and Categorizing informal settlements


through legalizing informal settlements. This le-galization is one of the most important projects for the Montenegrin government and is of crucial significance for the further development of the real estate market in Montenegro.The efforts that the Montenegrin government is going to make in legalizing informal settlements will depend on the date of the beginning of the le-galization process. The parliamentary procedure for adopting the draft law has entered its final stage and we expect the implementation of this complex and socially very sensitive project to commence soon.I can confidently say that the biggest challenge that we are facing now is motivating the build-ers of informal settlements to start regularizing their facilities while being mindful of the current economic reality. Apart from being instructed so

by the law, illegal builders need to be informed of and be able to enjoy the benefits of this process. The results of the regularization process have to be visible through improving living conditions in the specific area, improving the utility infrastruc-ture, and constructing required facilities. Also, we are currently negotiating with KfW about the Energy Efficiency Project in Legaliza-tion which entails providing illegal builders with an opportunity to conform to energy efficiency standards during the legalization process.

■ What are the biggest challenges that Mon-tenegro has been facing in implementing the EU’s environmental agenda?

- Chapter 27, which covers environmental poli-cies, is one of the biggest chapters since it entails close to 700 pieces of regulation (or one third of the Acquis Communautaire) which are sup-posed to become an integral part of the Monte-negrin legislation. The good thing is that most of this regulation (close to 60%) has already been incorporated into our legislation, while we are working hard on incorporating the remain-ing 40%. It is worth mentioning that almost all EU directives have been incorporated into the Montenegrin legislation. In terms of environment, apart from the legis-lative aspect, we will have to face both imple-mentation and financial challenges. Apply-ing relevant regulation and constructing the required environmental infrastructure are of

critical importance for the success of the entire process.

■ In early March, you met with the German Economic Coopera-tion and Development Minister Mr. Dirk Niebel. On the occasion, you both said that you were satis-fied with the implementation of tourism, energy and sustainable development projects. Mr. Niebel is coming to Montenegro again in early August. Are you going to meet again and, if you are, what will be the meeting agenda?- We have been successfully cooperating with Germany on implementing tour-ism, energy and utility infrastructure development projects. Considering the readiness and the receptiveness of both sides in terms of advancing existing co-operation, the agenda of my meeting with Mr. Niebel will be discussing the

continuation of the cooperation on implementing tourism and infrastructure development projects, namely cooperation with German travel agen-cies and airline companies, as well as promoting Montenegro in Germany as a unique travel des-tination. We are also going to discuss the con-struction of utility infrastructure (building waste water collection and treatment facilities in smaller coastal towns, the management of sewage sludge, providing expert assistance to the ministry in those segments and others), supporting the European integration process in the Montenegrin environ-mental sector, cooperating on facilitating foreign investments and implementing future invest-ments by German investors in Montenegro. ■

several water supply and waste water management projects have been implemented in coastal municipalities thanks to German assistance for Montenegro realized via the kfW Bank


Responsible investment

There are still a lot of ob-stacles, and there is of-ten a long way between the announcement of a

minister and the result as change of law or directive. In companies, we call it the “blockade of middle management,” said Mr. Schulz. "You can see something like this also quite often in the govern-ment. All in all, cooperation be-tween German companies and the government is driven by a constructive exchange of opinions with the mutual aim of solving is-sues and helping each other. Eve-ry good business means also well paid tax," said Rüdiger Schulz

■ The problems that foreign in-vestors in the region are most frequently facing are concerning bureaucracy, legislation and cor-

ruption. How much has the Mon-tenegrin government done when it comes to improving the business climate for foreign investors?- The response to this question de-mands certain introductory notes.

Namely, as you may know, in October 2012 I was appointed President of the Montenegrin Foreign Investors’ Coun-cil (MFIC), an association of the leading foreign investors in the country, estab-lished in 2009 as a non-governmental and non-profit organization aimed at improving the investment climate and supporting business developments in Montenegro, stimulating direct for-eign investments and promoting inter-ests of the international business com-munity in Montenegro. The Council's key document is the White Book, an annual publication informing the general public and all stakeholders about the Montenegrin business environment and obstacles experienced by foreign investors in Montenegro, and, more importantly, it provides recommendations for re-moving the barriers identified, aimed at increasing the attractiveness and competitiveness of the Montenegrin economy.

"The Montenegrin government knows how important foreign investments are. The ministries concerned are all involved in a lot activities aiming on improvement of the investment climate in Montenegro, and we can see quite some progress," said Rüdiger Schulz, CEO of Crnogorski Telekom and President of Montenegrin Foreign Investors Council (MFIC)

rüdiger schulz, ceo of crnogorsKi teleKom and president of montenegrin foreign inVestors council (mfic) InTErVIEw

Cooperation between German companies and the government is driven by a constructive exchange of opinions with the mutual aim of solving issues and helping each other. Every good business means also well paid tax


We have pointed out quite a few areas in which the improvements have been achieved through the ef-forts invested by the state and mu-nicipalities. For example, in the area of tourism, our members reported that certain issues referred to in the previous White Book have been resolved: e.g. the business environ-ment in tourism has been stable when it comes to the ad-hoc intro-duction of new taxes and that the work of inspections was mainly pos-itive (although improvement is still necessary) and the total smoking ban was revoked after eight months in force, while the compromise solu-tion introduced afterwards has been

assessed as satisfactory. Also in the other areas of the trade/retail area we can see that many of the issues underlined in last year’s White Book (such as unnecessarily complicated and long import procedures, import-

ers being charged for all the manda-tory procedures and analyses, pro-cedures for issuing sanitary permits for importing goods, protection of

local retail chains in comparison to those owned by foreign investors and many other such) are no longer problematic.

■ Where do you see room for fur-ther improvement of business con-ditions in Montenegro?- In the new edition of the White Book, our members identified the Labour Market and Employment, Property Development, Taxation, Corporate Governance and Rule of Law as focus areas for improve-ments, and most of the recommen-dations referred to in the White Book go precisely to them. On top of this, I think it is also important that

COMMUNiCATiONIt is important that we work on communications to all citizens, because sometimes there is still a lack of public understanding how important foreign investments for Montenegro are

TECHNOlOGyThe availability of state of the art telecommunication technology is one of the main decision criteria with regard to selection of locations for new businesses

ENERGyAll companies in the Deutsche Telekom Group are working on gradually reducing the energy consumption involved in their business processes.

The Council's key document is the White Book. it provides recommendations for removing the barriers identified, aimed at increasing the attractiveness and competitiveness of the Montenegrin economy


we work on communications to all citizens, because I think sometimes there is still a lack of public under-standing how important foreign in-vestments for Montenegro are and that companies with foreign own-ership have to make a reasonable profit, and only by this they can of-fer to Montenegrins interesting and well-paid jobs, good education and intellectual development.

■ To what extent can Crnogorski Telekom and other foreign inves-tors help improve the overall busi-ness climate in Montenegro?- First, of course, every company has to contribute itself. Crnogorski Tele-kom, as leading telecommunication provider stands for state of the art, reliable, affordable telecommunica-tion infrastructure which is avail-able practically everywhere where business takes place in Montenegro. The availability of state of the art tel-ecommunication technology is one of the main decision criteria with re-gard to selection of locations for new businesses. And very importantly, CT stands for transparent and reli-able corporate governance, shown by following the highest standards of compliance rigorously. As part of the investor community, as MFIC we appointed a council rep-resentative in the Working Group for preparing for negotiations on ac-cession of Montenegro to the Euro-pean Union for Chapter 4: Freedom of Movement of Capital and express-ing willingness to contribute to oth-er processes going on in parallel in all other working groups.

■ Crnogorski Telekom is paying a great deal of attention to the devel-opment of an IT society. What steps are you taking in this respect?- In general, infrastructure is the key resource for providing all commu-nication and IT services. CT is suc-cessfully implementing new access networks through projects Fibre to the home (FTTH) and new high-speed mobile technology HSPA+/

LTE in order to provide higher ac-cess speeds and further expansion of fixed and mobile broadband ser-vices which results in internet pen-etration growth. All IP platform consolidation, the next generation of IT systems, smart access devices and constant education of custom-ers will provide further development of IT society as base for advanced electronic services. CT as leading tel-ecommunication provider in Monte-negro sees itself as main contributor in the development of our IT soci-ety and also recognizes its relevance within society.As one example Crnogorski Tel-ekom, is making free ADSL inter-net access possible for elementary and high schools in Montenegro. The aim here is to enhance com-puter literacy, increase the level of knowledge and internet usage, raise the general level of awareness of the importance of the Internet, and

promote an information culture in Montenegro. A total of 150 schools have participated in this project, and the memorandum of agreement with the Montenegrin Ministry of Education and Science has been re-newed. Crnogorski Telekom also of-fers a special discount for disadvan-taged people. Over 300 customers made use of the discount so far.

■ Your company is applying differ-ent measures that refer to the low-ering of energy consumption, and different forms of CSR activities. What are your priorities in this seg-ment of doing business?- All companies in the Deutsche Tele-kom Group are working on gradually reducing the energy consumption involved in their business processes. We all strive to use energy-efficient information and telecommunications technology and optimize our opera-tional processes and network infra-structure. We are implementing a range of measures to save energy and make our operations more energy-efficient. Through the years, we have demonstrated that we care for the so-ciety we operate in by being involved in all areas that are of importance for Montenegrin society. Besides striving to offer the most advanced telecom-munication services to our custom-ers, we wish to actively contribute to the development of the community in which we do business and of which we are an integral part. By acknowledg-ing the principles of sustainability, and considering the social, ecological, and economic consequences of our ac-tivities, corporate social responsibility has been part of our corporate culture for many years. This is why corporate giving (donations and sponsorships) is one of the most visible aspects of our corporate responsibility. Our strategic activities are recognized by the public and the state. We are very proud that earlier this year, in April, the Monte-negrin Chamber of Economy award-ed Crnogorski Telekom with the An-nual Award for Social Responsibility in 2012. ■

Our members identified the labour Market and Employment, Property development, Taxation, Corporate Governance and Rule of law as focus areas for improvements


Creating the Future

Siemens has been implement-

ing projects in Montenegro for

decades. By opening a repre-

sentative office in 2000, the

company has validated the importance

of this dynamic market. In 2005, the

representative office became a limited li-

ability company Siemens d.o.o. Podgor-

ica. Snežana Ivanović, CEO of Siemens

Montenegro, has spoken to us about the

company’s operation.

■ Could you give us an overview of the development of Siemens in Monte-negro from the company’s arrival in 2000 until today?- Through implementing the company’s

mission – namely applying the latest and

the most technology solutions that fa-

cilitate elevating the overall standard to

a higher level – Siemens in Montenegro

has been present in the country’s indus-

try, energy, infrastructure and cities, and

healthcare.

■ Could you describe for us the activi-ties of Siemens Montenegro in the en-ergy sector?- The most important projects that Sie-

mens has been implemented in Montene-

gro in the past few years are modernizing

the control equipment in the Pljevlja ther-

mal power plant, constructing a high-

voltage 110/10 kV substation, Podgorica

5, and the Ribarevine 400/110/35 kV

substation. We have also delivered and

installed protection equipment in the

Montenegrin power system, including

the switching equipment. We are cur-

rently building a 110/35 kV substation

in Kotor, with the first 110 kV gas insu-

lated system in Montenegro.

■ The company is also delivering prod-ucts and services for Montenegrin cities, infrastructure and electricity distribution network. What are the major projects in these segments? - Comprehensive solutions for luxury hotels

and business premises range from deliver-

ing a substation to the latest security and

communications systems which are excel-

lent references for the company’s participa-

tion in large-scale projects in Montenegro.

Siemens has been the only supplier of

equipment to a luxury hotel, the Splendid

Hotel in Budva, which had the required

expertise to meet the set deadlines and en-

sure a level of integration that would facili-

tate smooth operations. We have installed

a complete hotel management system,

including a room-automation system for

ultimate climate comfort, access control

systems, and service and reception man-

agement systems.

Following the implementation of a complex

project which entailed installing the Sie-

mens One Solution, the company is about

to complete work on the Atlas Capital Cen-

tre, the most luxurious business, commer-

cial and residential facility in Montenegro.

Siemens has been involved in developing

the Montenegrin electricity distribution

network for a number of years through its

latest innovative solutions. Nine medium-

voltage power distribution substations

in Montenegro use Siemens equipment,

which is over a half of the new substations

in the primary electricity distribution grid.

■ Siemens Montenegro has been real-izing large-scale healthcare projects in Montenegro since 2007. Could you tell us something about these projects?- Siemens delivered its first RS CT Sensa-

tion scanner in Montenegro in 2007. Af-

ter that, we implemented two more major

projects – the installation of oncology

equipment in the Oncology and Radio-

Therapy Clinic in 2008 and diagnostic

equipment in 2009. Following this, Sie-

mens became a strategic partner to the

Montenegrin healthcare system.

■ Is Siemens Montenegro viewed as a socially responsible company?- A company which has been creating the

future with its innovative technology and

solutions, as Siemens has been doing for

the past 165 years, is obliged to contribute

towards the common good of the society of

which it is an integral part.

We were sponsor of the International

Conference of Electrical Engineering Stu-

dents, as well as of the Iskra philanthropy

award. We have also been successfully

cooperating with Red Cross of Montene-

gro by getting involved in useful projects

and campaigns which facilitate the reviv-

al and development of values like solidar-

ity and humanity. ■

Through implementing the company’s mission – namely applying the latest and comprehensive technology solutions that facilitate elevating the overall standard to a higher level – Siemens in Montenegro has been present in the Country's industry, energy, infrastructure and cities and healthcare.

A company which has been creating the future with its innovative technology and solutions, as siemens has been doing for the past 165 years, is obliged to contribute towards the common good of the society

snežana iVanoVić, ceo of siemens montenegroInTErVIEw


Montenegro: small but Dynamic

■ You have been at the head of DSW for years already, and this has been one of the most dynamic organizations that gathered foreign investors in Montenegro, as well as in Ser-bia, during this period. From that perspective, how do you see the development of the business environment in Mon-tenegro over the past years? - As a relatively young state, and thanks to the long common his-tory with neighbouring countries, and especially Serbia, Montene-gro is an increasingly interesting part of the economic space of the Western Balkans. With an attrac-tive coastline and interesting hin-

terland, Montenegro offers oppor-tunities for German companies in the area of tourism and real estate development. German in-vestors are notoriously shy to in-vest in major projects in new and rather uncertain markets such as Montenegro. It is important to note, however, that German equipment, building materials, and know-how are widely used in projects that are conducted by investors from other countries, such as the Porto Montenegro or the Lustica project. As all coun-tries in Southeast Europe, Monte-negro’s economic transition has

not been completed yet. This also relates to the improvement of the transport, energy and municipal infrastructure. German compa-nies, of which some are present in Montenegro, can offer interesting technological solutions, products and know-how in all of these ar-eas. The direct and indirect pres-ence of German companies in Montenegro is continually grow-

ing, as international financial institutions (WB, EBRD, EIB) and the German development bank KfW increase their commitments in Montenegro.

■ A significant part of the DSW’s membership in Ser-bia has businesses in Monte-negro and in other regional countries. How much is the consolidation of markets with similar market conditions, similar language and business environment favourable for current and future German investors? - German companies based in the region, mostly in Serbia, but also in countries such as Croatia, Hun-gary or Austria, closely follow market opportunities in Montene-gro. The most significant German investment was done by German Telecom through their Hungar-ian subsidiary Magyar Telekom. Due to the relatively small size of the Montenegrin market, few companies and also our organi-sation – the Association of Ger-man Chambers of Commerce and Industry (DIHK) – do not have offices or even headquarters in Montenegro. It is therefore even more important for Montene-

The direct and indirect presence of German companies in Montenegro is continually growing, as international financial institutions (WB, EBRD, EIB) and the German development bank KfW increase their commitments in Montenegro.

German companies based in the region, mostly in serbia, but also in countries such as Croatia, Hungary or Austria, closely follow market opportunities in Montenegro

micHael scHmiDt, Director oF tHe DeleGation oF tHe German economy in serbiaInTErVIEw


gro to promote itself a stable, well-regulated and growing market within the economic region of Southeast Europe. All countries in the region aspire to become members of the EU, and the process of EU integration and regional ar-

rangements such as CEFTA or the Energy Community are ideal mechanisms to regulate and harmonise the conditions for doing business here. Small countries such as Montenegro should spearhead these devel-opments, as they are to benefit most from uniform, transpar-ent legal conditions and good neighbourly relations.

■ In which business sectors in Montenegro are German investors most interested, and what do they demand when it comes to business conditions?- I already mentioned that German Telekom is active in Montenegro. Other compa-

nies focus on infrastructure projects, for example in the energy sector, the construc-tion of waste-water plants, municipal infrastructure. More recently, there has also been more interest in projects to promote renewable ener-gies, most notably in wind parks. Here implementation is still relatively slow, as an effec-tive and transparent legal and administrative framework has not been fully established yet. Unfortunately there are rela-

tively few production compa-nies in Montenegro. At this stage, it is important that local companies, especially SMEs, develop in Montenegro and open up new export markets in the region, Europe and the world. Cooperation with Ger-

man companies in the form of joint investments, know-how transfer and marketing activi-ties abroad could be particu-larly fruitful. As official representatives for important trade fairs such as Cologne and Munich in Mon-tenegro, we actively promote and support visitors and ex-hibitors from Montenegro to find such partners on trade shows in Germany. It is en-couraging to see that bilateral trade between our countries is slowly recovering after the deep slump in in 2009 and 2010. Exports to Germany in the first four months of 2013 have increased by 50% compared to the same period

last year. It is important to develop further this export potential through joint pro-jects. New initiatives, such as the opening of a Montenegrin consulate in Munich to pro-mote German-Montenegrin bilateral economic relations or the active participation of the municipality of Ulcinj in the most important European trade show for investments, and real estate in Munich in October, are steps in the right direction. ■

As all countries in southeast Europe, Montenegro’s economic transition has not been completed yet

it is important for Montenegro to promote itself a stable, well-regulated and growing market within the economic region of southeast Europe


economic Advantages of a small Country

Atlas Group employs close to 1,200 people in Montenegro alone, which makes this company one of the biggest em-ployers and tax payers in the country. Additionally, the company has founded the first privately-owned university

in an effort to raise the quality of the Montenegrin educational system. It has also opened the first water plant in Kolašin as its contribution to the development of the northern part of Montenegro.

“These are just some of our initiatives. We also give Atlas scholarships to 160 of the best university students in Montenegro,” says President of Atlas Group, Dr Duško Knežević. “Also, there is the Summit of 100 Busi-ness Leaders of the South East Europe which we organize annually to-gether with the Montenegrin government in Montenegro. We are also partners with the Clinton Foundation and we had Bill Clinton attending the Balkan Networking Conference. Some of the investors that we have brought here are Capital Investment from the UAE, Mace and Turner International from the US, and Future Capital Partners from the UK.”

■ In what economic branches has Atlas Group been active?- At the moment, Atlas Group is comprised of close to forty financial, banking, real estate, investment, manufacturing, tourism, healthcare, media and educational companies, while our Atlas Foundation is en-gaged in humanitarian and socially responsible work. The Group oper-ates in Montenegro, Serbia, Russia and Cyprus.

■ What is your view of the economic climate in Montenegro and how can it be further improved?- Undoubtedly, there is a real strategy in place with priorities like cre-ating a better quality investment environment and investing in infra-structure, energy and tourism. The main challenge for this strategy is raising the operability of the system, namely the institutions and the state apparatus, as well as improving human resources. The economic environment can be improved if we find the right balance between fis-cal conservatism and a socially progressive policy. Montenegro's ad-vantage lies in the fact that the country is a small system that can be amended easier, changed faster and adapted whenever the need arises.

I have been often underlining that Montenegro, as a small economic system, has to have a comparative advantage over other investment destinations. Reducing red tape, shortening the length of the per-mit issuing procedures, and creating an efficient legal and economic framework which is going to reassure investors, are just some of the

prerequisites for faster development. Conforming to EU regulation and its implementation, prior to formally joining the Union, is also one of the ways to attract investments from Asia, Russia and the Middle East.

■ What are the most important investments and projects you are currently working on?- We have been implementing the Atlas Capital Centre project, which is financially and in terms of design one of the biggest investments in the West Balkans, together with the Al Nahyan royal family from Abu Dhabi. This is absolutely one of the most significant investment projects that Atlas Group has ever realized. We have other large-scale real es-tate projects pending like the spacious Expo Centre which we have been working on together with Future Capital Partners from the UK, as well as luxury tourist facilities Mogren Garden, Mogren Hill, Kamenovo and Meljine Bolnica which are going to be built.

Conforming to the EU regulation and its implementation, prior to formally joining the Union, is also one of the ways to attract investments from Asia, Russia and the Middle East.

Montenegro's advantage lies in the fact that the country is a small system that can be amended easier, changed faster and adapted whenever the need arises

dušKo KnežeVić, president of atlas groupInTErVIEw


Apart from substantial investments in the real estate segment, the fi-nancial arm of Atlas Group has been developing rapidly too. We are currently involved in the process of further integrating the Montenegro Stock Exchange with regional and European stock exchanges, as well as increasing our presence on the Russian market thanks to ever-im-proving results of Atlas Bank in Moscow.

As founder of the first privately-owned university in Montenegro, Atlas Group is going to continue investing in education primarily with the view of bridging the gap between labour market demands and the professions produced by our educational system, and, fur-ther on, bolstering informal and lifelong learning which will help our citizens in becoming more competitive in the European and global economy alike.

■ Companies Atlas Invest and Atlas Centre currently occupy an important place in your agenda. Why is that so?- Owing to its quality, highly professional staff and implemented projects, Atlas Invest has already become prominent in the relevant business segments both in Montenegro and among foreign inves-tors. The company’s advantage over other Montenegrin engineer-ing companies lies in its exceptional staff, financial stability, and an extensive network of foreign consultants covering almost all areas of the business. In terms of its advantage over foreign companies, Atlas Invest has a much deeper knowledge of the local conditions and markets and competitive prices.

We are currently talking to several global companies which are en-gaged in generating energy from the sun, wind and similar resourc-es and I am confident that we are going to do a lot in this area in the near future. One of our partners, with whom we have been writing a feasibility study - Qsolar Ltd. from the Netherlands - is one of those companies which closely specializes in developing solar energy in-dustry and has made substantial investments in the solar industry mostly in the Benelux countries and Germany.

■ Could you tell us more about the Atlas Capital Centre project?- Atlas Capital Centre is the symbol of standing up to the global eco-nomic downturn in Montenegro and the first joint venture of Atlas Group and the companies from the United Arab Emirates. This is the biggest and, technically, best real estate facility in Southeast Europe. Its location, the quality of construction, the reputation of its developers/investors, and the contemporary architectural lines have lead to some of the biggest names in the business and diplo-macy wanting to take up premises in the Centre, while its residen-tial area is utterly luxurious and comfortable, without lagging be-hind its European counterparts and is able to satisfy even the most demanding of clients.

■ What sets this facility apart from other similar facilities? - Primarily, its dimensions – it spans across 100,000 square metres. It has business and commercial premises, apartments, a hotel, parking garages etc. Most of the technical solutions applied in its construction have been devised at the HQs of the biggest European companies (like Siemens, STO, Schuco, Philips, Intra, Clivet) exclusively for Atlas Capi-

tal Centre. An outstanding energy system and insulation provide un-parallel energy efficiency, never seen before in this type of facility. Inte-rior furbishing is supplied by the top manufacturers; there are terraces that can span across 20 square metres, advanced security solutions, and the fastest Internet connection with almost unlimited optical cable bandwidth. All of this provides maximum comfort at minimal cost.

■ Is German Embassy going to take up premises at Atlas Capital Centre? How did that come about?- Atlas Capital Centre is envisaged as a diplomatic and business centre, and has been designed and implemented to fully meet the needs of such clients in a contemporary, design effective and efficient and technologi-cally advanced manner. The United Arab Emirates Embassy has already taken up quite a lot of the exclusive premises here. We are currently negotiating with other embassies today, and our negotiations with the German Embassy are nearly completed. Considering that the biggest German companies (Siemens, Schucco Lindner, Aco, Geberit, Hansgrohe) were material suppliers or contractors on the project, it is only natural that the Ger-man Embassy and German companies trust us and have expressed in-terest in occupying the premises at Atlas Capital Centre. ■

Atlas Capital Centre is the symbol of standing up to the global economic downturn in Montenegro

ENviRONMENTThe economic environment can be improved if we find the right balance between fiscal conservatism and a socially progressive policy

iNvEsTMENTTogether with the Al Nahyan royal family from Abu Dhabi, we have been implementing the Atlas Capital Centre project, which is one of the biggest investments in the West Balkans


Partners Worthy of Attention

“Although the Montenegrin and German economies are incomparable in size, I am con-fident that we can have better

economic cooperation, showing that Montenegro and its products and services are worthy of the attention of German businesses and consum-ers,” says President of the Montene-grin Chamber of Commerce Velimir Mijušković at the beginning of this interview. He then adds: “I think that our country needs to focus more on winning the trust of German tourists, as well as encourage German compa-nies to come to Montenegro by setting up joint ventures through various forms of cooperation.”

■ How would you rate the overall economic cooperation between Germany and Montenegro, and what kind of projections and pro-jects are you planning for this co-operation to develop further?- Over the last few years, trade be-tween the two countries has been far

below realistic possibilities and, going forward, we should use the existing opportunities to increase it. Let me remind you that following the disintegration of the former Yugosla-via, the Montenegrin tourist offer was highly valued by German tourists. They were very welcome here while cooperation with large German travel agencies has been exceptional. Some of these connections are being reacti-vated thanks to Montenegrin compa-nies and our National Tourist Board that participate in tourism fairs, par-ticularly in the Berlin Tourism Ex-change. They have been also working on winning back the trust of German tourists, and this is something that needs to be stepped up. I believe that the last year’s conference of German travel agencies in Montenegro will have positively affected the Montene-grin tourism in the current season. I also think that there is plenty of room for cooperation in the Monte-negrin renewable energy segment. This is an area where Germany is far

ahead of other developed European countries, both in know-how and project implementation. The fact that Montenegro has normatively regu-lated this segment certainly helps us, the Chamber, to promote this poten-tial, as it also helps potential investors to decide to invest in this area. Apart from that, metal processing SMEs in Montenegro could be devel-oped with the help of German compa-nies to mutual satisfaction. I believe that a stimulating business environ-ment, quality workforce and other advantages will sway many foreign partners towards cooperating with Montenegro in the future.

■ How much did Germany invest in Montenegro, value wise, and what place does Germany take on the list of foreign investors in Montenegro?- Over the last ten years, German in-vestors have invested €179.2 million. Deutsche Telekom acquired Monte-negro Telekom via Hungarian Ma-

By converging the interests of the Montenegrin economy, the Montenegrin Chamber of Commerce serves as a bridge between the government, the embassies and international organizations. Our cooperation and bilateral relations with the German Chamber of Commerce are very good.

There is plenty of room for cooperation in the Montenegrin renewable energy segment

Velimir mijušKoVić, president of the montenegrin chamBer of commerceInTErVIEw


táv. The global electronics conglom-erate Siemens AG opened a branch in Montenegro, thus increasing its pres-ence here, just as did another German company – Messer. In 2009, German WTE from Essen and the Budva municipality conclud-ed an Agreement on Construction of a Waste Water Treatment Facility on the Budva Riviera worth €58 million, the biggest environmental project im-plemented on the Montenegrin coast. The waste water treatment facility is supposed to become operational in mid-July next year.As of September 2009, Sachsen Was-ser GmbH has been officially operat-ing in Tivat. The company won at a tender and subsequently became a consultant in developing capacities of Vodakom and the local public water supply and sewage enterprises which are operate under Vodakom.In terms of the ranking, Germany takes 11th place among the largest foreign investors in Montenegro.

■ What are the most important German investments in Monte-negro and why?- The largest German investment so far is Deutsche Telekom’s acquiring Montenegro Telekom. This invest-ment is important for our country in many ways – it has updated and ex-panded the offer of telecommunica-tions services and has brought a new dimension to consumer relations. In a year when the Montenegrin Cham-ber of Commerce is celebrating its 85th anniversary, we have decided to give Telekom the Social Responsibility Award as a testament to the fact that the com-pany’s management is very dedicated to caring about the local community, as well as contributing to its development (schools, hospitals, sports).

■ Which segment of cooperation between Germany and Monte-negro is the most developed?- The priority segments of the cooper-ation between our two countries are energy and energy efficiency, utility infrastructure and tourism.

In 2012, we had 32,648 tourists from Germany who spent 184,984 days in our country. To compare, in 1987, close to 145,000 German tourists visited Montenegro so having as many German tourists as possible coming here should be our priority. According to available information, the next season’s bookings of the Ger-man travel agency Rewe Group have

gone up by 30%. Two other German travel agencies – Olimar and Berge und Meer – have included Montene-gro in their offer. The outbound Ger-man tourist market is one of the most important in the world, with 60 mil-lion foreign trips annually. Cooperation with German airline Air Berlin started in 2011. The company offers charter flights and this has brought some really good results. In 2013, the airliner signed a Contract on Continuation of Cooperation add-ing Munich to the list of outbound flights, on top of Berlin, Hamburg, Dusseldorf and Hannover.

■ In which way do the Monte-negrin and German chambers of commerce serve as a link be-tween the business people from the two countries?- By converging the interests of the Montenegrin economy, the Montene-grin Chamber of Commerce serves as a bridge between the government, the embassies and international organi-zations. Our cooperation and bilateral

relations with the German Chamber of Commerce are very good. Together we participate in the activities of the Association of European Chambers of Commerce – EUROCHAMBERS.We have been organizing business meetings in cooperation with the lo-cal German chambers of commerce, which are members of an extensive DIHK system. The communication

between businessmen and finding business partners thanks to good cooperation between the respective chambers of commerce contribute to advancing and developing economic cooperation. Also, owing to the sup-port we get from the DIHK, we have been able to implement a number of projects which are of great help to the Balkan chambers of commerce and economies. Among other things, we have organ-ized visits to German fairs. For two consecutive years, we have been fa-cilitating visits to the famous Green Week in Berlin, an exhibition vehicle for the food industry, agriculture, for-estry and horticulture. Over 100,000 companies participated in the fair, providing a great opportunity to talk to exhibitors and make business deals. The cooperation between the Mon-tenegrin Chamber of Commerce and the German Committee on Eastern European Economic Relations (OA) offers great possibilities. The Commit-tee’s members of these two organiza-tions can obtain updated informa-

labour flexibility is very important for attracting foreign investors


tion about Montenegro, as well as participate in business gatherings like last year’s conference in Montenegro with over 200 Montenegrin and Ger-man businessmen participating. Via our two organizations, our compa-nies are given a chance to participate in conferences in Germany.

■ Which economy segments have been drawing in most in-terest from German investors?- The German Reconstruction and Development Bank (KfW) has been active in Montenegro since 2001 and has been a partner to Montenegrin government in funding and imple-menting a number of projects, with an emphasis on utility infrastructure, energy and banking projects. KfW has provided a donation for draft-ing the Master Plan for Water Supply in municipalities on the Montenegrin coast and the Cetinje municipality. We have created the conditions for cooperation in the framework of the water supply and wastewater disposal on the Montenegrin coast project, as well as cooperation on a number of energy and energy efficiency projects. These include the rehabilitation and modernization of HPP Piva, the filter replacement project in the Pljevlja Thermal Power Plant, the expansion of substation Ribarevine and Pod-gorica, and drafting studies on the environmental impact of hydro power plants on the Morača River. Imple-mentation of the Strategic Assessment of the Environmental Impact of the Draft Energy Development Strategy of Montenegro by 2030 is pending. A loan contract was signed with KfW stipulating laying 150-km long high-voltage 400 KW cable between Tivat and Pljevlje, as well as the construction of a substation in Lastva Grbaljska and the overhaul of a Pljevlje substation. Also, in cooperation with KfW, Mon-tenegro has been implementing an energy efficiency programme for public buildings covering the period from 2011 to 2014. Stuttgart-based consultancy Fichtner GmbH & Co. KG has been hired to work on the project.

The deadline for project implementa-tion is June 2014. During the pro-ject, a total of 30 educational facili-ties will be reconstructed to become energy efficient. Another project is being implemented in cooperation with the German In-ternational Cooperation Society (GIZ) called Advisory Services to Energy Ef-ficiency (ASE). There are also a num-ber of other pending projects.

■ What do German investors expect from a business environ-ment, and how has Montenegro accommodated these expecta-tions?- Montenegro is very dedicated to advancing its business environment, and we have garnered notable results in that respect. Foreign companies that operate in Montenegro partici-pate in the work of the Montenegrin Chamber of Commerce, in line with their business activity. They can give suggestions and proposals that will be considered in drafting various laws. These foreign companies say that if we want to attract more foreign inves-tors to Montenegro, we have to set up, in their words, “a nice playground.” Foreign investors also say that labour

flexibility is very important for attract-ing foreign investors. Our labour mar-ket is still very complex, with many obstacles to implementing business projects. Also, the issue of ownership is another problem in their eyes. They say that they get frustrated not know-ing whether a building or another in-vestment or theirs is actually owned by them and, in such situation, it is very difficult to draft a sustainable profitability analysis. In terms of taxation, corporate taxes in Montenegro are relatively low and this is something with which foreign investors are happy. They also want to have a more predictable business environment.

■ What are the most important trade treaties between the two countries?- In March 2011, our two countries exchanged notes which facilitated the continuation of the 31 bilateral treaties concluded between Yugosla-via and Germany, including the Eco-nomic Cooperation Treaty (signed in 1956) and the Investment Protection and Facilitation Treaty (from 1989).In 2004, the Serbia and Montenegro Council of Ministers and the Gov-ernment of the Federal Republic of Germany signed the Technical Coop-eration and Assistance in Agreement which is still valid.

■ To what extent have the Mon-tenegrin business been able to operate on the German market?- Among other things, being present on the German market means being a reliable partner in a demanding economy. Overhauling German ships in the Bijela Shipyard is one such ex-ample. Germany is the biggest busi-ness partner for this shipyard. Over the last five years, the shipyard has overhauled 78 German ships which have a very respectable position in the maritime world. The overhaul projects were worth €20 million.There is a great potential for coopera-tion, but we should make an effort to generate positive effects. ■

There is a great potential for cooperation with Germany, but we should make an effort to generate positive effects


Reliable for ups and Downs

In 1989, named after Mihajlo Pupin, a private company was launched, and in April

1992, its rapid growth paved the way for the establishment of Balkan Lift. The main activity of the company includes design, manufacture, import, delivery, installation, modernization, uti-lization, certification, launching and maintenance of elevators, escalators and moving walks for every vertical and horizontal transport system.BLC's primary markets include Serbia, Montenegro and the Re-public of Srpska.For almost 19 years, BLC has been working efficiently and developing, due to close cooperation with the Schindler Group, the largest sup-plier of escalators and the second largest manufacturer of elevators worldwide. It is also due to their high quality equip-ment that is made in European fac-tories, and a high level of HR quality: engineers, econo-mists and fitters. Today the com-pany works on a project, montage

and service ba-sis, which is ful-ly equipped and

trained to perform installations, ser-vicing and modernization of equip-ment for vertical, inclined and hori-zontal transport in a wide variety of possible buildings. We have a very good and solid working relation-ship with the Belgrade University, Faculty of Mechanical Engineering and the Institute of Chemistry and Technology. Balkan Lift employees are trained to assist investors in selecting op-timal solutions, which are always justified from an economic and technical point of view and in line with legislation. They are also trained to solve any problem easily, without pressure from investors, with confidence and teamwork, to enable investors to obtain a com-pleted facility as soon as possible, with as little cost and with superior quality for users. ■

The main activity of the company includes design, manufacture, import, delivery, installation, modernization, utilization, certification, launching and maintenance of elevators, escalators and moving walks for every vertical and horizontal transport system

BAlkAn lIFTCOrPOrATE

Balkan Lift

Apart from main company, Balkan Lift in Belgrade, Balkan Lift Podgorica was es-tablished in Montenegro. Here are the pro-jects in Montenegro of which the company is very proud.

TRADEUNIQUE BUDVAAssembly of six new electric machineroomless with frequency regu-lated gearless drives. Type Schindler 3300 and 5400. Year of instal-lation: 2010.ATLAS CAPITAL CENTER PODGORICAAssembly of 23 new electric machineroomless with frequency regu-lated gearless drives. Type Schindler 5400. Assembly of two new esca-lators. Type Schindler 9300 CU. Year of installation: 2011.POLICE DEPARTMENT AND PUBLIC ADMINISTRATION OF MONTENEGRO BUILDING, DUP NOVI GRAD 1 AND 2, POD-GORICAAssembly of four new electric machineroomless with frequency regu-lated gearless drive. Type Schindler 5400 and 3300. Year of installa-tion: 2009.DELTA CITY MONTENEGROAssembly nine new electric machineroomless with frequency regulat-ed gearless drives, in the Delta City Montenegro business centre. Type Schindler 5400 m Q=1000;1275;1600 kg.Assembly of four frequency regulated moving walks. Type Schindler 9300AE, Capacity 9000 persons/h, Hd=5980 mm, inclination angle α=30°, width1000 mm. Year of installation: 2008.NLB BANK, PODGORICAInstallation of one new electric machineroomless with frequency reg-ulated gearless drive. Q = 800 kg V = 1m/s. Type Schindler 5400. Year of installation: 2004.Besides the above companies and finished jobs, in period from April 1989 to this day, we have made projects, assembled or generally over-hauled several hundred lifts.


For over 40 years, PERI has been known as a reliable partner in producing and applying formwork and

scaffolding systems. This family-owned company was founded by Mr. Artur Schwörer in 1969, in the town of Weißenhorn, where the company has its headquarters and its main development and produc-tion facility. Today, PERI is one of the 50 most successful companies in Bavaria. The company's name is derived from the Greek preposition 'peri' meaning 'around'. Since 1974, PERI has been expand-ing strategically to new countries and markets. Apart from having 20 branch offices in Germany, and 52 daughter companies, the com-pany also has 110 efficient logistics sites with over 6,500 employees which cover construction sites in more than 95 countries worldwide thus ensuring market efficiency and

proximity to clients. Following PERI's arrival in Serbia in 2003, the company also brought new formwork and scaf-folding standards. PERI's innovative solutions have been drawing in a substantial number of clients from the con-struction industry.

intelliGently devised produCt in Best qualityPERI provides project-specific formwork and scaffold-

ing solutions for all construction facilities and all sorts of concrete works. We develop new products for applica-tions with which we see potential for rationalization with real future. In this way, efficient system equipment with convincing and practical details is developed which main-tain a strong position in the market over many years. The high quality of the PERI system guarantees a worthwhile investment. It is the basis for long product life cycles with high utilization. The equipment is made of steel, wood and aluminium and is constantly subjected to a strict quality control. It also complies with the all needed approvals and certificates issued by authorized institutions.

enGineerinG serviCes tailored to Client's needsPERI's success is not only derived from its immense in-

novative strength in product development, but also from early internationalization and achievements and com- avala tower

Bridge on the danube river at Beska dimitrovgrad Bypass

As versatile as theWorld of Construction

Owing to the experience and the know-how of over 900 engineers at PERI, residential, industrial and business facilities, skyscrapers, towers, bridges and tunnels are being constructed all over the world. PERI's engineers have been using their know-how, based on the best available solutions, to support construction companies in implementation of their projects.


petence of our employees. Owing to the experience and the know-how of over 900 engineers at PERI, resi-dential, industrial and business fa-cilities, skyscrapers, towers, bridges and tunnels are being constructed all over the world. PERI's engineers have been using their know-how, based on the best available solutions, to support construction companies in implementation of their projects.

eConomiC performanCePERI also rents out and sells

formwork and scaffolding. Especially the combination of both models al-lows cost-effective project comple-tion. Formwork and scaffolding solu-tions from a single source are one of the key benefits for our clients. Our experts and supervisors provide as-sistance to construction site person-

nel with the view of the most efficient utilization of PERI equipment. In so doing, they always keep a careful eye on the costs as well as safety for construction site personnel.

on-site assistancePERI carries out planning and delivery of required con-

struction materials – from small-sized plywood cut-to-size through to complex formwork units. Our clients can bene-fit from fast availability and on-schedule delivery regardless of the ordered quantity, including the delivery of elements of unusual component geometries. All of this ensures clear and transparent cost projection without having to resort to expensive on-site improvisations due to unavailability of adequate equipment or material. The result of this is a significant improvement in work performance.

fulfillinG speCial requirements reGardinG visiBle ConCrete surfaCesArchitectural concrete has become a very popular de-

sign element. We offer practical solutions for the construc-tion of facilities with highly demanding visible concrete surfaces which are optimally adjusted to architectural re-

quirements. PERI's experience is as versatile as the international world of construction. For buildings with complex shapes, for challenging bridge and tunnel structures, for the implementation of the highest archi-tectural concrete requirements as well as for ambitious scaffolding task – we promise to provide you with the fullest possible support and the best solutions also in the future. ■

PERI OPLATE D.O.O.Oplate Skele InženjeringFormwork Scaffolding EngineeringZmaja Ognjenog Vuka 222310 ŠimanovciSrbija | SerbiaTel.: +381 (0)22 40 82 00Fax : +381 (0)22 40 82 [email protected]

Commercial Complex peri oplate d.o.o.

stepa stepanović settlement residential building, Belgrade


Great Potential

In the last four years, the volume of trade between Montenegro and the Federal Republic of Germany has been around 6% of the total foreign trade of Montenegro. In 2012, the value of trade between Montenegro and Germany stood at €130 mil-lion, which is a 0.1% drop relative to 2011. The total export to was worth €14.4 million, or 3.9% of total Montenegrin exports, while the total import amounted to €115.6 million which was 6.3% of total Montene-grin imports, a 4.3% increase com-pared to 2011.

In 2011, Montenegro and Ger-many’s trade exchange was worth €131.3 million which is 9.2% more than in 2010. The same year, ex-ports amounted to €20.5 million which is 4.5% of total Montenegrin exports for that year, while Montene-gro imported €110.8 million worth of goods from Germany, a 6.1%

share of total imports in that pe-riod. The import to export ratio was 18.5%, and the trade deficit stood at €90.3 million.

In 2010, the value of trade be-tween Montenegro and Germany was €120.2 million. Montenegrin exports to Germany amounted to €3.1 million, or a 19.2% hike in com-

parison with 2009. Imports from Germany grew by 5.4% to €117.1 million – a 7.1% share of total Mon-tenegrin imports in 2010. The deficit stood at €114 million while import to export ratio was only 2.6%.

In 2009, the value of trading between Germany and Montenegro amounted to €113.7 million which

In the period between 2002 and 2012, Germany invested a total of €179.3 million in Montenegro. Most of the investments – €40 million– were made in 2007.

in 2012, the value of trade between Montenegro and Germany stood at €130 million

economic cooPeration betWeen monteneGro anD Germany


is 5.9% of the total foreign trade of Montenegro. In the same period, Montenegrin exports to Germany were worth €2.6 million, while the value of imports was €111.1 million. The deficit stood at €108.5 million.

In 2012, Montenegro mostly exported to following goods to Ger-many: iron and steel (€6.9 million), natural or cultured pearls, precious or semi-precious stones (€2 million),

and copper and copper products (€1.4 million). In the same year, Montenegro mostly imported to fol-lowing from Germany: vehicles, parts and accessories (€40.8 mil-lion), machinery and mechanical appliances (€13.4 million), and meat and meat offal (€10 million).

direCtIn the period between 2002 and

2012, Germany invested a total of €179.3 million in Montenegro. Most of the investments – €40 million – were made in 2007. ■

in 2012, Montenegro mostly exported to following goods to Germany: iron and steel, natural or cultured pearls, precious or semi-precious stones, and copper and copper products

German Fdis in the period from 2002 to 2012- in mil. of euros

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Investment value 20.9 5.5 7.8 5.1 26.9 40.0 21.5 17.7 11.2 8.1 14.6 179.3Source: CBCG

Trade exchange between Montenegro and Germany between 2009 and 2012- in mil. of euros

Item 2009 % 2010 % 2011 % 2012 %

Total foreign trading of Montenegro 1,931.2 100 1,987.7 100 2,277.6 100 2,187.4 100

Total trading with Germany 113.7 5.9 120.2 6.0 131.3 5.8 130.0 5.9

Export to Germany 2.6 0.9 3.1 0.9 20.5 4.5 14.4 3.9

Import from Germany 111.1 6.7 117.1 7.1 110.8 6.1 115.6 6.3

Deficit / Surplus -108.5 -114.0 -90.3 - 101.2Source: MONSTAT

The list of products imported from Germany in 2012 per value

Custom Tariff no. Item Amount in €

87 Vehicles other than trains or trams, and parts and accessories thereof 40.818.991

84 Boilers, machinery and mechanical appliances and parts thereof 13.395.345

02 Meat and meat offal 9.971.768

85Electrical machinery and equipment and parts thereof; sound recorders and re-producers, television recording and reproduction of sound and images, parts and accessories thereof

8.281.126

04 Milk and milk products, bird and poultry eggs, natural honey, edible products of animal origin, not specified or included elsewhere 6.964.198

30 Pharmaceutical products 5.274.211

39 Plastic and plastic products 4.394.265

90 Optical, photographic, cinematographic, measuring, control, precision, medical or surgical instruments and apparatus; their parts and accessories 2.505.759

38 Miscellaneous chemical products 2.003.244

19 Cereal, flour, starch or milk based products; baked goods 1.832.773Source: MONSTAT

The list of product groups exported to Germany in 2012 per value

Custom Tariff no. Item Amount in €

72 Iron and steel 6.909.889

71 Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and products thereof; imitation jewelery; coins

2.000.122

74 Copper and copper products 1.397.023

87 Vehicles other than trains or trams, and parts and accessories thereof 893.598

22 Beverages, alcoholic beverages and vinegar 854.173

44 Wood and wood-based products; charcoal 829.225

08 Edible fruit and nuts; citrus fruit peel, melons 419.515

84 Boilers, machinery and mechanical appliances and parts thereof 248.631

07 Edible vegetables, roots and tubers 121.683

85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television recording and reproduction of sound and images, parts and accessories thereof

114.118

Source: MONSTAT


Constantly Advancing Cooperation

The political and bilat-eral economic relations between Montenegro and the Federal Repub-

lic of Germany have been constantly improving for the last several years. Considering the upcoming official visit of the Federal Economic Coopera-tion and Development Minister Mr. Dirk Niebel and the German business delegation to Montenegro on August 7 and 8, as well as future projects to be implemented by German business organizations by the year’s end, the cooperation between the two countries is really picking up pace. Apart from business people, who will be arriving to Montenegro in August, a number of German businessmen from the whole West Balkan region will be coming to Podgorica too. After this, Podgorica will play host to more meetings be-tween the business people from the two countries that are due to take place in September, October and November this year. Last year, on May 30, the first large-scale German-Montenegrin Economic Forum took place on the Adriatic coast, in the Montenegrin tourist resort of Pržno. Over 200 businessmen attended, as did 40 representatives of no-table German companies. The Forum was endorsed by many respectable German business institutions like the Federal Ministry of Economics and

Technology, the German Committee on Eastern European Economic Rela-tions (Ost-Ausschuss der Deutschen Wirtschaft) and the Delegation of the German Economy in Serbia which also covers Montenegro. On the Monte-negrin side, the gathering was supported by the Montenegrin government, while the Montenegrin Chamber of Commerce generously provided assis-tance in organizing the Forum. The Forum was officially opened by former Montenegrin Prime Minister Igor Lukšić, the State Secretary in the Federal Ministry of Economics and Technol-ogy, Mr. Stephan Kapferer, Director General of the German Committee on East-ern European Economic Relations Professor Dr Rainer Lindner, and the Head of the Delegation of the German Economy in Serbia Mr. Michael Schmidt. The main focus of the Forum was on economic segments that carry the big-gest potential in terms of economic cooperation between the two countries, namely: energy and energy efficiency, infrastructure development (includ-ing utility infrastructure), tourism and finances. This was the first ever visit by an extensive and important German economic delegation to Montenegro. Apart from this visit, the associates of the Delega-tion of the German Economy in Serbia have been frequenting Montenegro too in an effort to encourage as many German companies as possible to come to this small, but dynamic market. The popular website of the Delegation,

which operates under the German Chamber of Foreign Trade (AHK), contains a lot of information about Montenegro, both in the German and Serbian languages. Through Bonn-based Senior Expert Service (SES), for which we – the Delegation of the German Economy in Serbia – serve as the representative for regional coun-tries, many SMEs and Montenegrin institutions have used the ser-vices of German experts who stayed in Montenegro for months in order to provide concrete consultancy services. Although the representatives of the Delegation of the German Economy in Serbia already spent some time in Montenegro at the beginning of this year, their next visits will take place in Sep-tember, October and November. The reason for their stay, among other things, is two regional projects which are also going to be implemented in Montenegro. In cooperation with the German Federal Ministry for Econom-ics and Technology and German company em&s GmbH, the Delegation of the German Economy in Serbia is going to imple-

Apart from the fact that large German companies have been operating in Montenegro for quite some time now, this smallest Balkan country is hoping for German investors who are willing to invest in its production capacities. There are those who are interested.

Bilateral eConomiC CooperationCOMMEnT

By Milan Vuckovic


ment these projects in October and November. The first project pertains to transport and logistics and entails holding conferences for transport and logistics professionals from Germany. The conferences will be held in Pod-gorica, Belgrade and Skopje. The conference participants will visit the sites of the implementation of prestigious projects in Montenegro, Serbia and Macedonia, as well as cooperation exchange. They will also be able to talk to the transport and logistics professionals from the three countries. The second project is a water supply project that will be realized in Serbia, Montenegro and Albania. In late November, Podgorica will host a confer-ence with representatives of many water supply companies, institutions and experts from Montenegro, Germany and the region participating. Also, B2B meetings between Montenegrin and German companies will take place at the same time. Although quite a few big German companies like Stada, Mercedes Benz, Deutsche Telekom, Würth, DHL, Dekra, Porsche, Trenkwalder, Siemens, Berlin Chemie, Messer Group, ThyssenKrupp Elevators and others have been operating in Montenegro for some time, Montenegro is still hoping for German investors willing to invest in the country’s production ca-pacities. Although the competition among investment candidates in the region is stiff, Montenegro definitely has production opportunities that could be interesting to serious German investors. One such investor is the German company HGL which has recently expressed interest in acquiring Podgorica-based KAP (the Podgorica Aluminium Plant) which has been struggling financially (the company’s total debt equals 10% of Montene-gro’s GDP). This renowned aluminium producer used to be the driving force behind the Montenegrin economy, and it is absolutely vital for it to

recover. Prestigious investments like these could substantially improve the current perception of the attractiveness of this market among potential foreign direct investors. Aside from these, there is more potential for bigger and better trade and co-operation. For instance, the Delegation of German Companies from Serbia has found out that a number of Montenegrin companies have been indi-rectly, rather than directly, exporting their products to Germany, namely via their partners/mediators from neighbouring countries. These are mostly semi-finished products which their partners/mediators addition-ally process and subsequently export themselves to Germany. There are also the so-called ‘second plan’ investment opportunities in Montenegro like, for instance, investments in healthcare capacities (an initiative has already been launched to open small contemporary health resorts for foreigners), spas, health treatments and agriculture. Montene-grins living in Germany could also get more involved in investment pro-cesses, which has not been the case so far. There are definitely more interesting business ideas out there. However, you can expand your business creativity only when you see and experi-ence Montenegro and its population for yourself. So, don’t hesitate. Pack your bags and go. Preferably today! ■

(The author is an associate of the Delegation of the German Economy in Serbia)

Podgorica will play host to more meetings between the business people from the two countries that are due to take place in september, October and November this year

Reliable shipmentsGebrüder Weiss became operational in Montenegro in 2011. Thanks to the flexibility and advantages of the global GW network, as well as our continuous development, we can guarantee that we will be a reliable partner

nikola vasilJević, country manaGer FOr MOnTEnEGrO AT GEBrüDEr wEISSInTErVIEw

Gebrüder Weiss is the old-est transport and logistics company in Austria. The

company has been family-run since its foundation. It operates in 29 countries, from 162 locations and has a total of 5,250 employ-

ees in Europe, Asia and the US. “This worldwide network is sup-plemented with many strategic partners and related companies. Together, we offer a whole range of transport and logistics ser-

vices to our clients,” says Nikola Vasiljević, Country Manager for Montenegro at Gebrüder Weiss.

■ What services does the com-pany provide in Montenegro?- Gebrüder Weiss became opera-tional in Montenegro in 2011. Al-though, locally speaking, we are still a young company, thanks to the flexibility and advantages of the global GW network, as well as our continuous development, we can guarantee that we will be a reliable partner and collaborator, equipped to deal with every single challenge in modern transport. In Montenegro, Gebrüder Weiss ren-ders the following services: road transport, storage services, mari-time container transport, air trans-port, customs services, national distribution and additional goods insurance during transport.

■ How much development po-tential does the Montenegrin market have for your company?- Considering that the Montenegrin market is mainly import orientated, we see a great potential and a need to provide sustainable high quality transport and logistics services to our local, regional and global cli-ents regardless of what is the point of shipment – the region, the EU or anywhere else in the world – and regardless of the mode of transport – by truck, airplane, ship, directly or via the GW system transport. ■

Considering that the Montenegrin market is mainly import orientated, we see a great potential and a need to provide sustainable high quality transport and logistics


Where God showers Gifts

There is an old Monte-negrin legend which says that God's bag of gifts, containing

gifts of nature, tore right above Montenegro, which is the rea-son that this small country has so many of nature’s attractions – mountains, lakes, forests, pastures, bays, coves, hidden beaches, and, of course, the Adriatic Sea. White and gray limestone desert landscapes, also known as the "sea of stone," hang over the sea coast. In the middle region lie the fertile Zeta and Belopavlićka plains, as well as a bird sanctuary at Lake Skadar. Look further and you will see the over 2,000-metre high mountain ranges with glo-rious summits, forests, spacious pastures, over forty lakes, clean and mighty rivers, and deep and

mysterious canyons.Montenegro has five nature parks. The Durmitor Mountain and the Tara River Canyon are natural world heritage sites. The latter is also one of the biosphere reserves, while Lake Skadar has been inscribed into the Ramsar List of the Wetlands of Interna-tional Importance. Apart from the exciting and soothing nature, rugged and awe-inspiring at the same time, Montenegro has many other must-see destinations.

mausoleum on the mount loVćenEminent poet and philoso-

pher Petar II Petrović, known as Njegoš, chose this beautiful location to raise a chapel at the top of Jezerski Vrh (1,660 m al-titude). Following Njegoš’s pass-

ing, Prince Danilo and chosen Montenegrin dignitaries put Njegoš’s body to rest in the place that is known as ‘the kingdom of thunder’. Thunder was not the only occurrence that disturbed Njegoš’s final resting place. Jez-erski Vrh was first occupied by the Turks and later by the Aus-trians which destroyed the chap-

el in 1916. A new chapel was built in 1925 when the idea to build the monumental mauso-leum, designed by sculptor Ivan Meštrović, was born.

BilJardaBiljarda is a building where the

spiritual and secular leader, poet and philosopher Njegoš wrote his

Apart from the exciting and soothing nature, rugged and awe-inspiring at the same time, Montenegro has many other must-see destinations

TOurISM In MOnTEnEGrO

Boka

mausoleum on the mount lovćen


most important work. This is his former residence, built in 1838, and designed by Jakov Ozerecko-vski. It was named after the billiard table which Njegoš had brought from Vienna. At the time, it was the first and only billiard table in Mon-tenegro. The museum material is

still not organized into collections and most of the exhibited pieces be-long to other museums that operate under the National Museum in Ce-tinje. Njegoš’s personal items, man-uscripts, books, an extensive collec-tion of books, money and weapons are permanently exhibited here, as are original manuscripts and the fountain pen he used.

the ostroG monasteryThe Monastery of Ostrog is

placed against an almost verti-cal background, high up in the large rock of Ostroška Greda, at 900 metres in altitude, in a cave used as a hermitage by monk and the Metropolitan Bishop of Za-humlje and Herzegovina Vasilije Jovanović in the second half of the seventeenth century. The Monastery is the most famous Christian pilgrimage in Montene-gro, visited by pilgrims of all faiths from around the world.

the tara river CanyonThe Tara River, known as

‘the teardrop of Europe’, partly runs through the Durmitor Na-

tional Park. The river is 156 km long, and its source is in north-ern mountain range. It flows from south to north and con-verges with the Piva to form the Drina River, one of the longest and the water-richest rivers in the Balkans. The mighty Tara is

quite slow in certain segments, and the places where you can walk across it are few and far between. Near Bistrica, the Tara riverbed is so narrow that, back in the day, you could jump over it if the need arose.

ada BoJanaThe Ada Bojana river island

is located at the very end of Velika Plaža (The Great Beach), with the River Bojana running be-tween the island and the beach. Ada is the most beautiful at sun-set, when the amazing play of colours make the sea, the sand and the sky merge into a single image. This is a true paradise for windsurfing, sailing, water skiing, horseback riding on the beach, and favourite destination for naturists. Ada Bojana Island has both subtropical and Mediter-ranean vegetation, with one-of-a-kind plant and animal species.

BoKa – ‘the Bride of the adriatiC’Whether you approach it by

sea or mainland, Boka is equally

enchanting. It looks as if the mountains have cracked and let the sea in. This is the southern-most fjord in Europe. High moun-tains envelop the long coastline, protecting it from the harsh northern climate. This is why Boka is an oasis of Mediterranean

vegetation: agave, palm, mimosa, oleander, kiwi, pomegranate, and medicinal herbs grow here. While the mountain peaks around Boka are covered in snow, roses, came-lias and mimosas grow in the foothills. The bay is naturally di-vided into four smaller bays - Her-ceg Novi, Risan, Kotor and Tivat. Beautiful coastal towns, which are historical and artistic treas-ures, line the seaside like pearls.

Gospa od ŠkrpJelaGospa od Škrpjela (Our

Lady of Škrpjel) is a Baroque church built in 1630 on an ar-

tificial island in front of Perast. Up until the mid-15th century, there was a small chapel in the church’s place. Every year, on July 22, people on decorated boats bring rocks and throw them around the island. The church houses a museum col-

lection of great works of art by Italian painters. The church is also decorated with 68 paint-ings of Tripo Kokolja (1661-1713), a famous Baroque painter from Perast. Kokolja’s work spans a whole decade, while his most important work was a commission from the Archbishop of Bar, Andrija Zmajević.

st. stefanThe St. Stefan Island is right-

ly called the most beautiful site on the Montenegrin coast. Unu-sual in appearance, the island

Biljarda The Ostrog Monastery

The Tara river Canyon


is surrounded by high stone walls. This used to be a fisher-men village. Today, St. Stefan is a globally renowned hotel and town rolled into one that will never leave you indifferent. This unique island has 118 vil-las built in medieval style which are interconnected by narrow cobble paved streets, while the Mediterranean vegetation gives the island special charm. St. Stefan is over six centuries old and, in the beginning, it was the fortress of the Paštrović fam-ily who are native to this area. The island used to fend off many conquerors throughout history. You can still see old cannons on its stone walls.

BudVa – the old townBudva (the Roman name

Butua) is one of the oldest settle-ments on the Adriatic Sea coast. A legend recounts that the town was founded by Cadmus, the son of the Phoenician King Agenor,

who was exiled out of Thebes by Zeus, and Cadmus’ wife Harmo-nia. The Old Town of Budva is of typically medieval appearance, and makes a unique architec-tural and urban unit. The town is home to the biggest and most valuable necropolis in the Adri-atic. Budva was built on a pen-insula that used to be an island and was subsequently linked to the mainland by a sandbar. The town is surrounded by thick stone walls built in the 15th century which were modified several times, particularly after the earthquake in 1667.

BudVa – the red communeThe Memorial House is a

part of the Museum of the Revo-lution and contains archival materials (documents, photo-graphs, letters and printed mate-rials) from the time of formation of the first Communist munici-pality in Croatia, in 1920. The Memorial House has a gallery

named after Marko Gregović. It exhibits the classical artwork (paintings, sculptures, etch-ings), as well as new artistic me-dia (installations, performances, video art). The Memorial House building is built in a traditional early 20th century Mediterra-nean style.

Kanli-KulaTurkish fortress called Kanli-

Kula (in Turkish – “bloody for-

tress”) is located at the very north of Herceg Novi and is a segment in the town’s complex fortifica-tion system. For the most part, the tower was built on limestone 85 metres above the sea and, be-cause of its size and position, it dominates the town landscape.

Blue CaveThe Blue Cave (Plava Špilja)

is one of the most attractive caves on the Luštica peninsula, located between the Zlatna Luka

Cove and the Mokra Gora Cape. It is 5.7 km from Herceg Novi. The cave is of unusually blue colour due to sunrays reflecting off the sea surface on clear days. The cave has two entrances – the one that is very wide, but low-pitched, while the other is very narrow, but high. The Cave is appealing both to scuba divers and swimmers. It is also an excellent destination for a sa-fari photo tour, under and on the

Ada Bojana

St. Stefan

Gospa od Škrpjela The Old Town of Budva


water. You can reach the Blue Cave by a boat.

the monument to the heros of the Battle of moJkovaCThe monument is situated

on a stone elevation, on the right bank of the River Tara, near the bridge, in honour of the 50th anniversary of the Mojkovac Battle. The monument was un-veiled on October 30, 1966, and it bears the following inscription: “They have become immortal because they died for freedom and brotherhood – 1915-1916.” This grandiose monument was made by sculptor Drago Đurović and architect Mirko Đukić. The monument is also depicted on the municipality of Mojkova’s official coat of arms.

the old (emperor’s) mosqueThe Emperor’s Mosque, built

in 1471, lies at the centre of Plav, on the elevated plateau of

the former Grad, surrounded by stone walls. This is the first ever mosque built in Montenegro and its construction was funded by Sultan Abdul Hamid. Because of its original architecture, wood-engravings, arabesques, stone and wooden architectural orna-ments, galleries, soferluk (the entrance part) and slender mina-rets, the Mosque is a protected monument of culture.

GornJa lastvaGornja Lastva is situated in

the hinterland of Tivat, at an alti-tude of about 300 meters, on the slopes of the Vrmac Hill. This is a rural area, away from the coast, which sits in the silence of olive groves and has a beautiful view of the Bay of Tivat. The town dates back to the fourteenth century and is one of the few surviving rural areas that still attract many tourists and visitors. This little town with its Mediterranean at-mosphere is wonderfully appeal-ing and welcoming. ■

Blue Cave

Gornja lastva

First ever Mercedes Benz Designed Motor BoatOn 27th July 2013, The Silver Arrows of the Sea had its world-wide premiere at Porto Montenegro, its home port

POrTO MOnTEnEGrOCOrPOrATE

This will be the first ever Mercedes Benz designed Motor Boat, which will

be officially launched at the Monaco Yacht Show this September. In addition to the boat launch, Mercedes Benz launched their new S-Class Mercedes Car series. Mercedes Benz Style is an exclusive brand including Eurocopters, Furniture and Watches, and officials from Daimler Benz

were present to celebrate this historic event together with numerous guests from around the world. Porto Montenegro was chosen as the home port becomes of its newly acquired status as the exclusive yachting destination in the Mediterranean. In ad-

dition the Silver Arrows team announced that MRM was its official partner. Mark Harrison commented “After working on the Porto Montenegro project for the last 8 years, it is a great pleas-ure to add the Silver Arrows of the Sea, and Mercedes Benz Style to our project, and with the Regent Hotel opening next year, and a much expanded marina, and the arrival of the

world’s largest pleasure boat fleet, the Golden Fleet, Porto Montenegro has firmly posi-tioned itself as the yachting destination in the Mediterain. Our company, MRM is proud to be a member of the overall team,” said Harrison principal of MRM. ■

mark harrison, principal of mrm (left), ron gibbs, chairman of silver arrows marine and mladen miranovic, president of the Board of porto montenegro

Porto Montenegro was chosen as the home port becomes of its newly acquired status as the exclusive yachting destination in the Mediterranean


A Culture Older Than a Nation GErMAn CulTurE

From its roots, culture in Germany has been shaped by major intellectual and popular currents in Europe, both religious and secular. Historically Germany has been called Das Land der Dichter und Denker (the country of poets and thinkers)

German culture began long before the rise of Germany as a nation-state and spanned the entire German-speaking

world. From its roots, culture in Ger-many has been shaped by major intel-lectual and popular currents in Europe, both religious and secular. Historically Germany has been called Das Land der Dichter und Denker (the country of po-ets and thinkers).

The federated states are in charge of the cultural institutions. There are 240 subsidised theatres, hundreds of sym-phonic orchestras, thousands of muse-ums, and more than 25,000 libraries spread in Germany. These cultural op-portunities are enjoyed by many: there are over 91 million German museum visits every year; annually, 20 million go to theatres and operas; 3.6 million per year listen to the symphonic orchestras. The UNESCO inscribed 33 properties in Germany on the World Heritage List.

lanGuaGeGerman is the official and predomi-

nant spoken language in Germany. It is

one of 23 official languages in the Euro-pean Union, and one of the three work-ing languages of the European Commis-sion, along with English and French. Recognised native minority languages in Germany are Danish, Sorbian, and Frisian. They are officially protected by the ECRML. The most used immigrant languages are Turkish, Kurdish, Polish, the Balkan languages, and Russian.

Standard German is a West Ger-manic language and is closely related to and classified alongside English, Dutch, and the Frisian languages. To a lesser extent, it is also related to the East (ex-tinct) and North Germanic languages. Most German vocabulary is derived from the Germanic branch of the Indo-European language family. Significant minorities of words are derived from Latin and Greek, with a smaller amount from French and most recently English (known as Denglisch). German is writ-ten using the Latin alphabet. In addition to the 26 standard letters, German has three vowels with Umlaut, namely ä, ö, and ü, as well as the Eszett or scharfes S (sharp s) which is written "ß".

German dialects are distinguished from varieties of standard German. Ger-man dialects are traditional local varie-ties and are traced back to the different German tribes. Many of them are not easily understandable to a speaker of standard German, since they often differ in lexicon, phonology, and syntax.

Around the world, German has ap-proximately 100 million native speakers and also about 80 million non-native speakers. German is the main language of about 90 million people (18 %) in the EU. 67 % of German citizens claim to be able to communicate in at least one for-eign language, 27 % in at least two lan-guages other than their own.

literatureGerman literature can be traced

back to the Middle Ages, with the most notable authors of the period be-ing Walther von der Vogelweide and Wolfram von Eschenbach. The Ni-belungenlied, whose author remains unknown, is also an important work of the epoch, as is the Thidrekssaga. The fairy tales collections collected

Nine Germans have won the Nobel Prize in literature: Mommsen, von Heyse, Hauptmann, Mann, Nelly sachs, Hesse, Böll, Grass, and Herta Müller


knowledge and faith, reason and emo-tion, and scientific, ethical, and artistic ways of seeing the world.

German philosophers have helped shape western philosophy from as early as the Middle Ages (Albertus Magnus). Later, Leibniz (17th century) and most importantly Kant played central roles in the history of philoso-phy. Kantianism inspired the work of Schopenhauer and Nietzsche as well as German idealism defended by Fichte and Hegel. Marx and Engels developed communist theory in the second half of the 19th century while Heidegger and Gadamer pursued the tradition of Ger-man philosophy in the 20th century. A number of German intellectuals were also influential in sociology, most no-tably Adorno, Habermas, Horkheimer, Luhmann, Simmel, Tönnies, and We-ber. The University of Berlin founded in 1810 by linguist and philosopher Wilhelm von Humboldt served as an influential model for a number of mod-ern western universities.

In the 21st century Germany has been an important country for the development of contemporary ana-lytic philosophy in continental Europe, along with France, Austria, Switzer-land and the Scandinavian countries.

musiCIn the field of music, Germany

claims some of the most renowned classical composers of the world in-cluding Bach, Mozart and Beethoven, who marked the transition between the Classical and Romantic eras in Western classical music. Other com-posers of the Austro-German tradition who achieved international fame in-clude Brahms, Wagner, Haydn, Schu-bert, Händel, Schumann, Liszt, Men-delssohn Bartholdy, Johann Strauss II, Bruckner, Mahler, Telemann, Richard Strauss, Schoenberg, Orff, and most recently, Henze, Lachenmann, and Stockhausen.

As of 2006, Germany is the fifth largest music market in the world,[8] has exerted a strong influence on techno and rock music, and pioneered trance music. Artists such as Herbert

Grönemeyer, Scorpions, Blind Guard-ian, Rammstein, Nena, Xavier Nai-doo, Dieter Bohlen, Tokio Hotel and Modern Talking have enjoyed interna-tional fame. German musicians and, particularly, the pioneering bands Tangerine Dream and Kraftwerk have also contributed to the development of electronic music.[9]

Germany hosts many large rock music festivals annually. The Rock am Ring festival is the largest music festi-val in Germany, and among the larg-est in the world. German artists also make up a large percentage of Indus-trial music acts, which is called Neue Deutsche Härte. Germany hosts some of the largest Goth scenes and festivals in the entire world, with events like

Wave-Gotik-Treffen and M'era Luna Festival easily attracting up to 30,000 people. In addition, the country hosts Wacken Open Air, the biggest heavy metal open air festival in the world.

Since about 1970, Germany has once again had a thriving popular cul-ture, now increasingly being led by its new-old capital Berlin, and a self-con-fident music and art scene. Germany is also very well known for its many renowned opera houses, such as Sem-peroper, Komische Oper Berlin and Staatstheater am Gärtnerplatz. Rich-ard Wagner has built the Bayreuth Festspielhaus. One of the most famous composers in the film business is Ger-man Hans Zimmer. ■

in the 21st century Germany has been an important country for the development of contemporary analytic philosophy in continental Europe

Johann wolfgang von Goethe

Immanuel kant

wilhelm richard wagner

and published by Jacob and Wilhelm Grimm in the 19th century became famous throughout the world.

Theologian Luther, who trans-lated the Bible into German, is widely credited for having set the basis for the modern "High German" language. Among the most admired German poets and authors are Lessing, Goe-the, Schiller, Kleist, Hoffmann, Brecht, Heine and Schmidt. Nine Germans have won the Nobel Prize in literature: Theodor Mommsen, Paul von Heyse, Gerhart Hauptmann, Thomas Mann, Nelly Sachs, Hermann Hesse, Heinrich Böll, Günter Grass, and Herta Müller.

philosophyThe rise of the modern natural

sciences and the related decline of reli-gion raised a series of questions, which recur throughout German philosophy, concerning the relationships between


GErMAn BuSInESS ETIquETTE

When making a first contact via email, be sure to follow i n t e r n a t i o n a l

standards for netiquette by struc-turing your message well and keep-ing it short. If you are calling your German business partner, please do him/her the favor of identify-ing your company and yourself by name when you first greet him/her.

relationships & Commu-niCations

• Germans do not need a personal relationship in order to do business.

• They will be interested in your aca-demic credentials and the amount of time your company has been in business.

• Germans display great deference to people in authority, so it is imperative that they understand your level rela-

tive to their own.• Germans do not have an open-door policy.

People often work with their office door closed. Knock and wait to be in-vited in before entering.• German communication is formal.• Following the established protocol is

critical to building and maintaining business relationships.

• As a group, Germans are suspicious of hyperbole, promises that sound too good to be true, or displays of emotion.

• Germans will be direct to the point of bluntness.

• Expect a great deal of written com-munication, both to back up deci-sions and to maintain a record of decisions and discussions.

Business meetinG eti-quette

• Appointments are mandatory and should be made 1 to 2 weeks in advance.

• Letters should be addressed to the top person in the functional area, including the person's name as well as their proper business title.

• If you write to schedule an appoint-ment, the letter should be written in German.

• Punctuality is taken extremely seri-ously. If you expect to be delayed, telephone immediately and offer an explanation. It is extremely rude to cancel a meeting at the last minute and it could jeopardize your busi-ness relationship.

• Meetings are generally formal.• Initial meetings are used to get to

know each other. They allow your German colleagues to determine if you are trustworthy.

• Meetings adhere to strict agen-das, including starting and end-ing times.

• Maintain direct eye contact while speaking.

• Although English may be spoken, it is a good idea to hire an interpreter so as to avoid any misunderstandings.

• At the end of a meeting, some Ger-mans signal their approval by rap-ping their knuckles on the tabletop.

• There is a strict protocol to follow when entering a room:

• The eldest or highest ranking per-son enters the room first.

• Men enter before women, if their age and status are roughly equivalent.

Business neGotiation• Do not sit until invited and told

where to sit. There is a rigid protocol to be followed.

• Meetings adhere to strict agendas, including starting and ending times.

• Treat the process with the formality that it deserves.

• Germany is heavily regulated and extremely bureaucratic.

• Germans prefer to get down to busi-ness and only engage in the briefest of small talk. They will be interested in your credentials.

• Make sure your printed material is available in both English and German.

• Contracts are strictly followed.• You must be patient and not ap-

pear ruffled by the strict adherence to protocol. Germans are detail- oriented and want to understand every innuendo before coming to an agreement.

• Business is hierarchical. Decision-making is held at the top of the company.

• Final decisions are translated into rigorous, comprehensive action steps that you can expect will be car-ried out to the letter.

• Avoid confrontational behavior or high- pressure tactics. It can be counterproductive.

• Once a decision is made, it will not be changed.

dress etiquette

• Business dress is understated, formal and conservative.

• Men should wear dark colored, con-servative business suits.

• Women should wear either business suits or conservative dresses.

• Do not wear ostentatious jewellery or accessories. ■

Formal, Detail-Oriented and Direct

Knowing a few rules of etiquette can greatly ease the process of making business contacts in Germany

MONTENEGRO Michael Schmidt German & Montenegrin...

Documents

Transcript of MONTENEGRO Michael Schmidt German & Montenegrin...