AUSTRIAN BUSINESS NEWS
ADVANTAGE AUSTRIA BELGRADE | ISSUE 3 - SEPTEMBER 2015
m Austria ›Opportuns anHelpful Links ›››
SUR
PRIS
INGLY
INGE
NIOUS
NEWS BULLETIN >>
MYTHS UNVEILED >>
COMPANY SHOWCASE >>
ON A DIFFERENT NOTE >>
YOU ASK, WE ANSWER >>
PREVIEW >>
SPOTLIGHT ON…>>
PUBLICATIONS & VIDEOS >>
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ADVANTAGE AUSTRIA BELGRADE
EDITORIAL
Dear Reader,
Early September is often called “back-to-school-time”, as
our young ones readjust to the daily routine of school life,
with homework to do and tests to be written. Business life
on the other hand seldom gets a real break, but I do hope
that you all found ways to enjoy a summer which deserved
the notion very much.
For me personally, this September is in every way a bit special: After seven years in Serbia, my term
as Head of Advantage Austria Belgrade has reached its end and I will leave the country to return to
head office in Vienna. As a result, during the past weeks my family and I have been trying hard not to
get too emotional about leaving Serbia, especially our daughter, who came to Belgrade as a 1-year
old toddler and leaves as an 8-year old school-child and “mala Srpkinja i mala Beogradjanka”, as she
calls herself.
Times like these are also an opportunity to reflect on things, and Serbia did see quite a lot of change
during the previous years: Back in 2008, Serbia was not a candidate-country to EU and Serbs needed
visas to travel to other European countries. Back then, there was no double taxation treaty with
Austria, in contrast to now. During these years, we have all witnessed some challenging economic
times, with a worldwide recession with inevitable effects also on this region.
On the other hand, some things did not change, and this in a positive way: Serbia is more committed
to its European future than ever, and Austria is still biggest foreign investor in Serbia, with 2,2 billion
EUR investment volume back in 2008 and more than 2,8 billion EUR investment volume today. In 2008,
we counted around 250 Austrian subsidiaries in Serbia, today we are approaching the 500-mark. Only
last week we could celebrate the grand opening of Swarovski in Subotica, a project where our office
can claim to have played a certain role.
Farewell-speeches and -letters usually tend to be quite long, as there is a lot to tell and many people
to thank – too many people actually to name and thank them all individually, as this would
undoubtedly fill this issue completely. Let me just say that I am deeply grateful for the support,
friendship and trust that my family and myself encountered in our time here in Serbia. We will keep
Serbia in our hearts and I do hope that our paths will cross again in the future. Please do accord to my
successor, Dr. Erika Teoman-Brenner, the same level of support as I was privileged to enjoy in the
past seven years.
All that is left for me to say is that I do hope to be seeing all of you at the handover-Austrian Business
Circle on Septemer 10th at 19:00 at Radisson Stari Mlin Hotel (if you are not registered yet, you can do
so by sending us a message HERE).
Hvala mnogo!
Andreas Haidenthaler
The Austrian Commercial Counsellor
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2/14
ADVANTAGE AUSTRIA BELGRADE
NEWS BULLETIN
 OFFICIAL OPENING OF SWAROVSKI PLANT IN SUBOTICA
The Austrian company Swarovski officially opened its production plant in Subotica last week and
announced that by the middle of next year to hire another 170 workers. Swarovski is in Serbia since
the end of 2013 and employs 383 workers. The construction of the building the manufacturing plant
began in early 2014. So far, the company in Serbia invested around EUR 22 million.
Swarovski is known for its production of
decorative crystals, in 120 countries, employs
approximately 25,000 people, and decided to open
a plant in Serbia after the closure of factories in
the Czech Republic and China. Swarovski is
divided into two industrial areas, "Swarovski
Crystal", which is engaged in the production of
luxury elements and "Tyrolit Schlefmittel", which
produces tools and equipment necessary for
processing and operation.
 ECONOMIC SUMMIT OF WESTERN BALKAN COUNTRIES IN VIENNA
During the Economic summit of Western Balkan countries, which took place during the Western
Balkans Conference 27 August 2015 in the Austrian Federal Economic Chamber in Vienna,
Commissioner Johannes Hahn and President of the Chamber, Christoph Leitl, stressed the
importance of deepened cooperation between Western Balkan Countries and the EU for economic
and political stability.
The summit was attended by the ministers of economy of the region,
as well as representatives of the EBRD, EIB, World Bank and
numerous Austrian company representatives. President Leitl
highlighted the role of economy to build bridges and fill up ditches.
Exemplarily for that is the good cooperation between the Chambers
of Commerce of Serbia and Kosovo.
Commissioner Hahn stressed the good progress, which has been made over the last couple of years
regarding economic and political reforms, which could not be possible without the political will of the
invidiual actors.
However, high rates of (youth) unemployment and the strong exodus of young and qualified people
from their respective home countries remain two of the big challenges ahead. All countries in the
region need in this respect a re-amplified influx of foreign investment (FDI) to boost the regional
economy. An important step could also be the implementation of dual education. For more on dual
education, take a look at our current initiatives in Serbia on page 11.
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3/14
ADVANTAGE AUSTRIA BELGRADE
 BEWARE OF BUSINESS CONTACTS WITH DAMAS INTERNATIONAL
Over the last weeks and months, ADVANTAGE AUSTRIA Belgrade was confronted numerous times by
Austrian companies, asking about the sincerity of business deals with Damas International Limited,
allegedly a company from Dubai.
The scheme: they contact Austrian trade comissions and companies with orders for food and
equipment for hotels Ambasador and Nais in Nis, and recently as well regarding the Belgrade
Waterfront project.
The names of the acting persons vary, but the company name remains the same:
Damas International Limited
Jumeirah Lake Towers
DMCC, Damas Building Block # 3
UAE DUBAI
Email: abdul-investment@@outlook.com, Karim investment@@outlook.com
Homepage: www.damasjewellery.com
IP: 192,252,214,132. Georgia, Atlanta-USA 30303
Abdulrahman
Karim Mousa
Annan Khalil Fakhreddin
"Did you know…"
that Serbia boasts a long
heritage of winemaking.
The first vinyards were
planted by the Romans and
during the times of the
Former
Yugoslavia,
it
belonged to the top ten wine
producing countries in the
world .
After consultation with the hotel manager we can confirm that there are, however, no connections
between Damas International Limited and the projects, so we deem it appropriate to refrain from
deepening business relationships with them.
If you have further questions, please contact us at [email protected].
2 DAYS, 500 PARTICIPANTS, 50 SPEAKERS | 1 & 2 OCTOBER 2015 |
VIENNA, AUSTRIA
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4/14
ADVANTAGE AUSTRIA BELGRADE
MYTHS UNVEILED
CE MARKING
Although a product has CE marking and therefore is in compliance with EU
legislation, giving the Certificate to the authorities, when importing goods to
Serbia, is not enough.
Problem: Although Serbia has recognized all EU Standards and Certificates it holds the rights to
check how the Certificates were issued. The CE marking has to be checked in local institutes
approved by the state. For this purpose it is required to present the EMC Test Report to the local
institutes – this report has been issued to the producer of the electronic goods when the product was
tested for the CE Marking. If the company can´t acquire the EMC Test Report, then the certification
can be done locally, which of course costs time and money. If the Product Number differs by one digit
or letter from the other the institute’s don´t accept the previous Certificate.
Our recommendation: Ask the producer of the electronic goods, if he can issue you the EMC Test
Report in advance, otherwise additional costs have to be taken in account.
EXPORT TO RUSSIA
Sanctions imposed from EU to Russia and vice versa have hit
companies hard. Because it is not an EU-Member state Serbia
was not obliged to impose sanctions towards Russia, and also
enjoys a free-trade-regime with Russia.
In order to overcome these barriers companies from the EU
want to export their products to Russia via Serbia.
Problem: In order to export goods to Russia, these have to be of Serbian origin. In order to have
Serbian origin, it is not enough to package, clean, store etc. the goods in Serbia. These methods are
not accepted by authorities of both countries in order to have the Serbian added value of 51%
necessary for the product to be recognized as one of Serbian origin.
Our recommendation: If you find local producers which could produce the goods locally, check first
with the Serbian customs and Serbian economic chamber if the product has the necessary 51% added
value. Methods of calculating the added value differ from one product to the other.
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5/14
ADVANTAGE AUSTRIA BELGRADE
COMPANY SHOWCASE
SIE HOLDING:
STRATEGIC INVESTMENT IN TAGOR ELECTRONIC
TAGOR Electronic doo of Nis, Serbia, has received a strategic investment from System Industrie
Electronic Holding AG (SIE Holding). Together, the partners intend to continue the success story
Tagor and accelerate the company’s growth. The company will keep its core focus while investing in
its capabilities to further increase the value it adds for its existing and future customers.
Udo Filzmaier, CEO of SIE Holding explains, “TAGOR is the leading privately owned provider of
electronics components distribution and printed circuit board assembly (PCBA) in Serbia and is
currently focusing on the Balkans as its core market.”
Goran Joanovic, Co-Founder and General Manager of TAGOR ads, “We are excited to take this next
evolutionary step of Tagor together with SIE Holding. Together we see a large market demand for our
services and will be expanding deeper into the European markets.”
The company’s location in Nis, Serbia offers unique benefits, ranging from a highly competitive labor
force to the ability of custom-tariff free exporting into the EU, Russia and Turkey, due to free trade
agreements with these three markets.”
SIE-Holding, founded in 1994, is an Austrian holding company that owns, manages and develops
several entities in the electronics markets focusing medical, security and industrial customers in
Europe, the USA and Asia.
TAGOR Electronic doo was established in 1996 and focuses on Electronic Manufacturing Services
(EMS), specifically Printed Circuit Board Assembly (PCBA) as well as Electronic Components
Distribution. Tagor currently employs more then 80 people.
For further information, please contact:
Mr Sascha Österle
System Industrie Electronic Holding AG
T +43557789900
E [email protected]
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6/14
ADVANTAGE AUSTRIA BELGRADE
ON A DIFFERENT NOTE…
After coming back from your well-deserved vacation, the masses of refugees, who are using the
balkan route to find their way to Western European countries and use Belgrade as a rest stop, might
not have gone unnoticed. It is estimated that since the beginning of 2015, 115,000 people have passed
through Serbia, and since August, about 3,000 persons are entering the country every day, among
whom children without parents and mothers with babies.
Whether matresses and blankets, baby kits, bottled water and durable food products, medicine and
hygiene products, clothes and footwear – your help is in high demand. If you feel the need to support
the thousands of unsheltered men, women and children, and look for opportunities to give, we can
recommend the two following initiatives:

Chamber of Commerce and Industry of Serbia
For any additional information on the current needs of individual reception centres in the territory of
Serbia, and the procedure of aid delivery please contact the Chamber of Commerce and Industry of
Serbia, at e-mail: [email protected] or by phone: +381 11 33 00 910.

Info Centar za Azil
Info Centar za Azil was founded by regional NGOs (ADRA Srbija and Belgrade Centre for Human
Rights) and are operating under the umbrella of the UNHCR. Besides legal, psychological and social
support, they are function as collection point for contributions in kind. If you wish to bring any of the
above mentioned items, you can find the information center close to the main train station.
Adress:
Info Centar za Azil
Nemanjina 3
11000 Belgrad
EXCLUSIVE OPPORTUNITY FOR FOOD AND DRINK BUYERS! GET A TASTE
OF AUSTRIA | 15 OCTOBER 2015 | VIENNA, AUSTRIA
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7/14
ADVANTAGE AUSTRIA BELGRADE
YOU ASK, WE ANSWER
LEGAL CORNER | CMS REICH-ROHRWIG HASCHE SIGLE
IMPORTANT DEVELOPMENTS IN AREA OF COMPETITION PROTECTION
In spite of being a relatively novel discipline, Serbian competition law and practice are getting rapidly developed.
The regulator – Commission for Protection of Competition ("Commission") – equipped with extensive
authorities, is becoming increasingly active. Considering the far reaching consequences potential competition
law infringements may have for companies in Serbia (such as fines ranging up to 10% of the group turnover in
Serbia, nullity, criminal liability and damages claims) it is important to take closer look at several recent
developments in this area.
After more than five years since the Competition Protection Law came into force and gave the Commission
broad authorities, the Commission finally made use of one of them: it carried first dawn-raids ever on 9 and 10
July 2015. The subject of the dawn-raids were two companies in e-cigarettes distribution business. The
Commission had reasons to believe that the companies fixed resale prices which is a hard-core competition
infringement. The Commission's officials entered unannounced the companies' premises, inspected
documents, interrogated employees and screened IT-systems. Considering that dawn-raids represent the most
efficient investigative instrument for collecting evidences on competition law infringements and that the
Commission has been thoroughly preparing for this move last couple of years (by obtaining forensic tools,
attending trainings and exchanging know-how with other competition authorities), companies should expect and
be ready for further dawn-raids by the Commission in the time to come.
The Commission became increasingly active on another front as well, which created much frustration among
business community in Serbia in the past. Namely, the Commission made finally clear that joint bids of several
companies in tender procedures must not necessarily restrict competition, contrary to what it was arguing in
the past. Hence, in majority of cases, companies, even competitors, wishing to submit joint bids must not any
more necessarily ask the Commission for prior approval (so called "individual exemption decision").
The things seem to be changing also in the area of merger control. Namely, the Commission proposed a new
draft of the decree which prescribes the content of the merger notifications. Namely, due to very low merger
filing thresholds and the Commission's reluctance to officially apply domestic effects doctrine, many
transactions, including transactions with no ties to Serbia, have to be notified to the Commission. The proposed
new rules should make the merger notification less complicated as they introduce the possibility of short-form
notification, already well known in majority of European jurisdictions. Such short-form notification requires less
data and fewer documents than it is the case now. As it seems, the short-form notification would be applicable
for the majority of transactions usually notified in Serbia. The enactment of new rules may be expected during
autumn.
Finally, in order to enable full harmonization with the EU legislation and make the procedure more efficient, the
Commission also announced new draft of the Competition Protection Law. No proposal of the new draft has still
been made, but this may be expected end of this or beginning of the next year.
CMS Reich-Rohrwig Hasche Sigle d.o.o.
Cincar Jankova 3
11000 Beograd
T+381 11 3208 900
F+381 11 3038 930
E [email protected]
W www.cms-rrh.net
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8/14
ADVANTAGE AUSTRIA BELGRADE
TAX CORNER | LEITNER LEITNER CONSULTING
PRACTICAL ASPECTS OF NEW ACCOUNTING RULES
Practical aspects of the implementation of the new accounting rules
In Serbia, there has been a change in legislation that regulates the accounting framework. The new
rules apply starting with the financial statements, which are prepared for the period ending on
31.12.2014. The key changes occurred in the field of accounting reporting for micro and small
businesses. The essence of these changes is that micro and small companies, starting from 2014 are
losing the possibility to apply International Financial Reporting Standards (IFRS). New accounting
framework allows a choice between: a) IFRS for SMEs or b) Rulebook on the method of recognition,
valuation and disclosures of items in the financial statements of micro and other legal entities (this is
not an option for small legal entities).
Practically, these changes do not take into consideration accounting and in some cases even tax
implications on micro and small legal entities. For example, capitalization of interest related to the
investment property under construction is not allowed. It is only allowed to recognize interest as
expense over the relevant period. Amount of interest that has been capitalized in past years would
need to be adjusted and disclosed as a loss of prior years. However, the increase of accumulated loss
position in prior years will not be deductible for tax purposes. The Law on Tax Procedure and Tax
Administration does not provide for the possibility of filing amended tax returns for previous years in
case of change in accounting framework and accounting policies, even though the changes in
the accounting framework can significantly impact reporting entity’s tax position.
Start of electronic submission of corporate income tax returns
According to the Law on Tax Procedure and Tax Administration as of April 1st, 2015 all legal entities*
are obliged to submit corporate income tax (CIT) returns electronically. Some difficulties for
taxpayers have arisen in practice, as the system has not foreseen the possibility of submitting
amended tax returns for years before 2014 electronically. On the other hand, Tax Administration has
no legal grounds to receive CIT returns in hard copy due to very strict provision of the Law on Tax
Procedure and Tax Administration..
* The electronic submission of CIT returns for entrepreneurs shall start on January 1, 2016.
For any further questions of how these topics might affect your business, please contact:
LeitnerLeitner Consulting d.o.o.
Kneza Mihaila 1-3, 11000 Belgrade
T +381 11 6555105
www.leitnerleitner.com
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9/14
ADVANTAGE AUSTRIA BELGRADE
PREVIEW
PREVIEW
OFFICIAL HANDOVER COCKTAIL
10.09.2015 | Location Radisson Blu Stari Mlin | Belgrade, Serbia
ADVANTAGE AUSTRIA CONFERENCE SOUTH-EAST EUROPE
21.-22.09.2015 | Chamber of Commerce Upper Austria | Linz, Austria
ADVANTAGE AUSTRIA CONFERENCE SOUTH-EAST EUROPE
23.09.2015 | Chamber of Commerce Lower Austria | St. Pölten, Austria
ADVANTAGE AUSTRIA CONFERENCE SOUTH-EAST EUROPE
24.09.2015 | Chamber of Commerce Styria | Graz, Austria
ADVANTAGE AUSTRIA CONFERENCE SOUTH-EAST EUROPE
25.09.2015 | Chamber of Commerce Carinthia | Klagenfurt, Austria
DANUBE REGION BUSINESS FORUM
01 – 02.10.2015 | Austrian Federal Economic Chamber | Vienna, Austria
MARKETPLACE AUSTRIA FOOD 2015
07.10.2015 | Austrian Federal Economic Chamber | Vienna, Austria
AUSTRIAN BUSINESS CIRCLE ECONOMY MEETS SPORT
09.10.2015 | Podgorica, Montenegro
INCOMING MISSION IT CARINTHIA
14. – 15.10.2015 | Fair Carinthia | Klagenfurt, Austria
TRADE MISSION CONTRACT MANUFACTURING IN TEXTILE SECTOR
17.11.2015 | Belgrade, Serbia
… EVENT IN AUSTRIA
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10/14
ADVANTAGE AUSTRIA BELGRADE
SPOTLIGHT ON… DUAL EDUCATION
One of the distinctive features of the Austrian educational system is the extensive co-operation
prevailing between the business community and educational institutions. The dual education system,
which combines theoretical and practical teaching, is applied in preparing for careers requiring
apprentice training as well as in higher vocational schools.
PRACTICE-ORIENTED EDUCATION
The dual education system, which combines theoretical and practical teaching, is applied in preparing
for careers requiring apprentice training as well as in higher vocational schools. Curriculum and
training courses are tailored to the requirements of the business world. Apprentices are
professionally trained in companies or gain on-the-job experience. The bottom line results of
research and development activities are exploited in a practice-oriented manner within the
framework of joint projects carried out by schools working together with the business community,
e.g. in theses, dissertations or student enterprises.
This two-pronged approach is considered to be exemplary throughout Europe. Foreign investors
highly value the specialized skills and the sound, fundamental know-how of Austrian employees.
Austria boasts a comprehensive network of tertiary
educational institutions. This includes a total of 21
universities of applied sciences, 22 public universities and
13 private universities. The universities of applied
sciences, which offer 393 different courses of study, are
particularly oriented to the requirements of the business
community and maintain intensive contacts with the
industrial sector. More than 47% of the study programs
offered by universities of applied sciences comprise extraoccupational studies.
CAREER-ORIENTED NATURE OF THE EDUCATIONAL SYSTEM
In addition to its practice-oriented approach, the Austrian educational system considers specialization
to be a top priority. Students continually have the opportunity to gain a high level of specialized knowhow, whether in commercial or technical secondary schools or colleges. For example, the College for
Mechanical Engineering offers more than ten different specialized study programs.
More information required? Click on the link HERE and HERE.
DID WE CATCH YOUR ATTENTION?
ADVANTAGE AUSTRIA Belgrade currently holds a survey
among its Austrian companies about the interest to
establish vocational trainings.
Interested? You find the link to the survey HERE.
For further information, please contact us via [email protected]
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11/14
ADVANTAGE AUSTRIA BELGRADE
PUBLICATIONS AND VIDEOS
DID YOU KNOW…? AUSTRIA IS BUSINESS AT ITS BEST!
Our image video shows why Austria’s economy is
Surprisingly Ingenious.
Click here to see the video on Youtube.
FRESH VIEW ON ENVIRONMENTAL TECHNOLOGY
Austria, with its extremely high innovative potential,is one of the leading
countries in environmental technology. Thanks to the verysuccessful
“green technology”, Austrian companies enjoy an excellent reputation
worldwide.Both companies and research organisations can boast a high
level of specialised know-how in sustainable construction, waste
management, innovative energy solutions and resource efficiency.
Furthermore the number of environmental patents which have been
granted in Austria is particularly high.
Environmental technology made in Austria.
Surprisingly ingenious.
Today Austrian companies in the environmental technology branch generate an annual
turnover of more than EUR 8 billion. This does not include service companies. The figure has
increased more than fivefold since 1993, around three quarters of which was earned through exports,
which have quadrupled since 19971 . There is an immense amount of research and innovation going
on in the domestic environmental technology branch: 79% of the companies claim that their
innovation is completely new on the Austrian market, 66% that this is even internationally the case2 .
The country’s high environmental standards are certainly a significant factor for this progress in
innovation and technology
Find more information on Austrian know-how in the environmental technology sector as well as
exciting cooperation opportunities in the latest edition of 156_Environmental_Technology.pdf [pdf,
6,221.5 Kb]
Link to all Fresh View Publications.
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12/14
ADVANTAGE AUSTRIA BELGRADE
OTHER HELPFUL LINKS
ADVANTAGE AUSTRIA
OUR WEBSITE
For Austrian companies in German HERE
For international partner in Serbian HERE
INVESTING IN AUSTRIA
Informations about investment opportunities can be found HERE
IMPORTING FROM AUSTRIA
Informations about imports from Austria can be found HERE.
BEOBUILD.RS
The internet portal beobuild.rs is one of the most visited websites within Serbia, with its consistent
updates, a virtual database indicating the process of a specific construction project, market analyses
and a discussion forum.
SERBIA-LOCATIONS.RS
The Serbian Investment and Export Promotion Agency unified in the database locations, suppliers,
projects and municipalities, who are looking for international cooperation.
BELGRADE TALKING APP FOR IOS AND ANDROID
Visiting Belgrade? Discover one of the most popular destinations in Eastern Europe and its rich
history with this all-encompassing FREE „Augmented Reality“ app.
YOU HAVE QUESTIONS OR WANT TO SHOWCASE YOUR COMPANY WITHIN THE
NEWSLETTER?
WRITE US A SHORT E-MAIL WITH THE QUESTION OR POSSIBLE TOPIC OF INTEREST AT
[email protected]
WE ARE NOW ON LINKED
! FOR LATEST DISCUSSIONS, INFORMATION AND EVENT
DETAILS, FEEL FREE TO JOIN OUR NEW ADVANTAGE AUSTRIA IN BELGRADE GROUP!
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13/14
CONTACT & SERVICE
ADVANTAGE AUSTRIA BELGRADE
NBGP APARTMANI
VLADIMIRA POPOVICA 6
11070 NOVI BEOGRAD, SRBIJA
T +381 11 301 58 50
F +381 11 711 21 30
E [email protected]
W www.wko.at/aussenwirtschaft/rs
W www.advantageaustria.org/rs
We are now on
ADVANTAGE AUSTRIA, with its network of foreign
trade offices, is the Foreign Trade Promotion
Organisation of the Austrian economy. Under the
auspices of the Austrian Federal Economic
Chamber, ADVANTAGE AUSTRIA is Austria's largest
service provider and driver of all international
economic activities. ADVANTAGE AUSTRIA acts as an
official lobby, representing the interests of its
Austrian members both at home and abroad.
!
DISCLOSURE
You receive this newsletter because of your country-related parameters within our database. If you do
not wish to receive any further newsletters, please write us at [email protected].