Additional brief: The Adriatic releases its annual magazine

Charting a resilient path

Dear readers,

We're excited to share with you highlights from the Institute of Strategic Solution's recent event at the City Museum of Ljubljana. Marked by the launch of our annual publication The Adriatic: Strategic Foresight 2024, we focused on the pressing issues, such as climate change and shifting geopolitics, will have on the Western Balkans and how businesses can leverage their agility ahead of uncertain times.

We were joined by Foreign Minister Tanja Fajon, alongside notable business leaders. Touching on various topics, including Slovenia's role as a non-permanent member in the UN Security Council and EU enlargement, we explored the challenges ahead that businesses and governments must navigate in today's uncertain and increasingly fragmented geopolitical landscape.

I hope you enjoy the read.

Maja Dragovi?

Editor, The Adriatic

Regional snapshot

Back to basics

In a recent development, the Serbian Ministry of Defence has recommended the restoration of conscription, a policy that was suspended in 2011 amid a shift towards the professionalisation of the armed forces. The proposal suggests reinstating mandatory military service with a tenure of up to four months and emerges against the backdrop of a precarious security situation. Notably, the Banjska attacks in Northern Kosovo last year and amid threats of secession by Republika Srpska in Bosnia and Herzegovina.

The Military Union of Serbia, a veterans association, views the push for conscription as a tactic to divert public attention and score political points with the right.

The motivations are likely less sinister, however. A 2018 report disclosed that in the intervening period since suspension of mandatory service, under 10,000 Serbs joined the volunteer army, while the reserve force shrank to 180,000. Although a four-month training period may be inadequate for comprehensive preparation, the army, which has lost appeal among young Serbs, might be aiming to use this experience to encourage some recruits to continue serving.

"Waffels, hold the kajmak."

At the year's outset, Belgium assumed the presidency of the Council of the EU, adopting the slogan "Protect, strengthen, prepare". Its agenda centres on several key priorities: finalising the instrument for future crises management, concluding the ratification of migration policy reforms, and laying a robust framework for accession negotiations with Ukraine.

According to Adnan ?erimagi?, an analyst at the Initiative for European Stability, the EU's stance on enlargement towards the Western Balkans during Belgium's presidency is that most viable measures have been taken. With plans to allocate around 2 billion euros in grants over four years, the EU sees it as "a magic cure that will break the deadlock in reforms in the region in the past years". However, he anticipates no major EU decisions related to the Western Balkans in the next six months, beyond confirming financial aid and possibly starting membership talks with Bosnia and Herzegovina.

Primarily, Belgium's challenge will be to align Western and Eastern European states on synchronising EU enlargement with essential institutional reforms, preparing the bloc for new members.

Silicon dreams

In Croatia, the average net salary, inclusive of bonuses, witnessed a significant rise to 1,139 euros last year, marking a 14% increase from 2022. According to MojPosao's analysis, professionals like cloud solution engineers and ICT system planners were among the top earners. This surge in earnings is in tandem with the recent expansion of the AI industry in the Western Balkans, buoyed by an increasing talent pool.

As the region's largest economy, Serbia produces more than 5,000 IT graduates annually and had about 10,000 people working in the ICT industry in 2022, creating a strong base for its rapidly expanding AI sector. The showcasing of such expertise and human resources is poised to draw the crucial venture capital needed for the sector's growth.

The Western Balkans, grappling with the emigration of skilled talent, remains dependent on EU support. Fostering stronger collaborations, such as unified AI initiatives or all-encompassing regional AI strategies, is crucial for the development of the sector.

Fine wine from the Balkans

Over the next few months, we'll be publishing a series of riveting articles from our latest edition of The Adriatic. Don't want to wait for the next release? No problem. Drop us a line at [email protected] and we'll send you a copy.

Now, let's shift gears. We're kickstarting the series with a sneak peek into the world of vineyards across our region. Fancy a local tipple or an adventurous sip from the sun-kissed vineyards of Tikve? in North Macedonia, akin to California's famed Napa Valley? Read on.

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