CERCLE DIPLOMATIQUE - issue 03/2023

L’AUTRICHE BALKAN BUSINESS
Im Kosovo, wie hier in der Stadt Prizren, leben sehr junge, IT- und
Fremdsprachen-affine Menschen.
In Kosovo, many young people who are very well-versed in IT and
foreign languages live in places such as in the city of Prizren.
EU role model student: Croatia
Among the EU member states, Croatia
has demonstrated a particularly adept understanding
of leveraging the benefits of
the common internal market and its programmes,
including the recent NextGenerationEU
package, according to the RBI
chief analyst. “Croatia, since its adoption
of the euro and Schengen membership on
1 January 2023, has begun to actively engage
with the European Union,” he explains.
The process of adopting the euro
involved making administrative adjustments.
Through budget discipline, Croatia
managed to reduce its government
debt to around 70% of GDP. Credit rating
agencies swiftly upgraded Croatia’s creditworthiness.
The seamless introduction of
the euro has had a positive impact on price
stability, with inflation projected to return
to three percent by 2024. Over the
past decade, Croatia has increased its per
capita GDP from 55% to 70% of the Eurozone
average.
Regarding Croatia’s Schengen membership,
the positive effects are likely to be
seen in the medium to long term, influencing
both the business climate and tourism.
In total, despite its small size with a
population of just 3.9 million, Croatia
ranks among the five most important CEE
markets for Austrian and Italian banks.
Big business in the Balkans
It’s not just Croatia; most of the remaining
Balkan states are outpacing Central
and Western Europe in terms of economic
development. “The economy in Kosovo
grew by 3.5% in 2022. This year, it is expected
to be between four and five percent, and
in 2024, around four percent again,” projects
Gunter Deuber. Austria’s banks also
have a significant presence in Kosovo. This
can be attributed to Austrians being among
the first to establish themselves in the heart
of the Balkans, according to Anita Kovacic,
CEO of Raiffeisen Bank Kosovo. In 2002,
Raiffeisen Bank acquired a substantial portion
of the American Bank of Kosovo’s shares.
Today, Raiffeisen Bank Kosovo holds a
leading market share of around 20% in loans
and deposits in the banking sector, says
RBKO-CEO Anita Kovacic. “Austrian companies
are among the largest investors in
Kosovo,” she adds. They excel in banking
and insurance (Uniqa, Wiener Städtische,
Raiffeisen Insurance Broker) as well as in
the renewable energy sector.
Kosovo boasts a simple tax system,
with corporate and income taxes set at
only ten percent. “Kosovo has the youngest
population with excellent IT and
English skills. Labour costs are competitive.
However, as a developing country, Kosovo
still grapples with political instability,
weak rule of law and corruption.
Nevertheless, opportunities prevail, and
foreign direct investments increase every
year,” Anita Kovacic emphasises.
The ecological transformation of the
economy is of paramount importance for
Kosovo, which still generates electricity
from fossil fuels. Therefore, the EU Investment
Fund for the Western Balkans is crucial,
aiming to secure private capital for infrastructure
projects. However, investors
are also closely monitoring Kosovo and
Serbia’s geopolitical positioning. In this
context, Anita Kovacic, CEO of Raiffeisen
Bank Kosovo, notes, “In 2015, Kosovo signed
the Stabilisation and Association Agreement
with the EU and submitted its application
for EU membership in 2022. We
support its integration efforts by implementing
EU standards in the banking sector.”
Local Raiffeisen banks, along with
Austrian embassies and business associations,
collaborate to connect RBI clients in
Austria and the CEE region. Additionally,
RBI operates a lobbying office in Brussels,
which particularly assists the Western Balkans
in initiatives such as EU neighbourhood
expansion, anti-money laundering
efforts, and digitalisation.
PHOTOS: UNSPLASH/BESART ADEMI
Foto © Carolin Thiersch
· Ruhige und
einzigartige Naturlage
· 450m 2 Seminar- & Tagungsfläche
· Outdoor Teambuilding
mit eigener Hochseilanlage
· Resort-Exklusivbuchung
auf Anfrage
Der Gipfel des Erfolgs.
Incentives · Firmenfeiern · Seminare · Meetings · Events
ECHTER TAGUNGSGENUSS
in der Urlaubsregion Villach - Faaker See - Ossiacher See
Über 50 Event-Locations (Kapazitäten: 5 - 2500 Personen)
Insgesamt 150 Unterkünfte in der gesamten Region
Mehr als 7000 Betten und 3000 Zimmer
Zahlreiche außergewöhnliche Incentive- & Teambuildingmöglichkeiten
Unbürokratische Kongressförderung
Naturel Hotels & Resorts
Kärnten · Faaker See · Gerlitzen Alpe
seminar@naturelhotels.com · +43 (0) 50 2384 210
www.seminar.naturelhotels.com
WWW.VISITVILLACH.AT
74 Cercle Diplomatique 3/2023