Croatians worry about their investments in Serbia

20/03/2008

Recent business co-operation between Croatia and Serbia has become a success story in the Western Balkans, but members of the business community in both countries worry about Serbian reactions to Croatia's official recognition of Kosovo.

By Natasa Radic for Southeast European Times in Zagreb –20/03/08

Members of Croatia’s business community are concerned with the decline in business co-operation and protection of their investments in Serbia. [Getty Images]

Kosovo's declaration of independence and the subsequent protests in Belgrade have adversely affected the Croatian economy because more than 200 Croatian companies have investments in Serbia.

Economic co-operation between the two countries has been steadily on the rise. The Croatian Chamber of Commerce says Croatian firms have invested more than 390m euros in Serbia, though they have kept a low profile. But now Croatian firms worry their businesses and investments in Serbia will suffer a setback now that Croatia has officially recognised Kosovo.

On Wednesday (March 19th), the Croatian government – together with Bulgaria and Hungary -- announced it is recognising Kosovo's independence.

During last month's Belgrade riots, the Croatian embassy was attacked and the windows of a Croatian-owned shop in Uzice were broken. Members of the business community, who spoke with the Croatian press off the record, said they hoped political leaders in Croatia would consider the position of Croatian investors in Serbia when deciding how to handle the Kosovo issue.

They worry that because of recognising Kosovo, not only will Croatian investments in Serbia suffer in the short term, but long-term business co-operation between the countries may be affected.

"We think the government chose the right position by not rushing into being among the first countries to recognise Kosovo," Croatian Entrepreneurs' Association director Djuro Popijac told the weekly Globus. "Our government should be aware that we cannot compare ourselves to Germany or the United States."

"Our business co-operation with Serbia has been on the rise, our trade exchange is solid and we export more than 400m euros annually on the Serbian market," he added. For now, Croatian firms hope that the situation will quiet soon and Serbian consumers will not boycott Croatian products or companies.