Representing a good neighbor

This summer, Croatia joins the European Union as the 28th member of the organization. The Croatian Ambassador to Hungary, Gordan Grliæ-Radman talked to an earlier issue of Diplomacy & Trade in an extensive interview covering various aspects of bilateral relations

“I’m really happy to be Ambassador to Hungary. Croatia and Hungary have excellent neighborly relations without open issues. I can’t say I’m not working but I am enjoying this post,” Ambassador Gordan Grliæ-Radman says.

He presented his credentials to the Hungarian President on October 26, 2012, and is no stranger to Hungary. He has previously worked at the Croatian Embassy and he has been, for many years, the permanent representative of Croatia to the Danube Commission in Budapest.

“I was here 17 years ago. I was deputy Ambassador then, spending six months here doing very intensive work. My first impression of Hungary was very emotional, being aware of our common history of over 800 years. I saw that we, Croats and Hungarians, are so close to each other. even the smell in Budapest reminded me of the smell in our capital, Zagreb,” he recalls. “My predecessors did a very good job enhancing bilateral relations. You have to be professional and you also have to be emotional to do this job as ambassador,” he adds.

He quotes the words of the famous Croatian writer Miroslav Krle¾a, who once very precisely characterized the relations between the two countries: “All disputes between the Hungarians and Croats can fit into one book, though no library would be sufficient for our positive communication and mutual understanding.”

One of the most important elements in these relations is the Croatian minority in Hungary that creates a strong bond – along with the Hungarian minority in Croatia – between the two countries. There was a bilateral agreement on minority issues signed in 1995, guaranteeing minority rights in both countries. “It can be an example for other states in Europe as regards the regulation of the status of minorities on both sides,” says the Ambassador, adding that the size of the Croatian minority in Hungary is very hard to estimate, “we speculate it is between 20,000 and 80,000. It is hard to find two neighboring countries in Europe that have such well-maintained relations with minorities as Hungary and Croatia.”

Room to grow in trade and investment

When talking about economic relations, Ambassador Grliæ-Radman is of the view that “there are much unutilized potential. From 1993 to the third quarter of 2012, Hungarian companies invested EUR 2.37 billion in Croatia, which is just over 9% of the total foreign investment, making Hungary the 4th largest investor in my country.” The biggest Hungarian investors are OTP Bank, MOL Co. Ltd., Dunapack, Fornetti bakeries, Duna-Dráva Cement and Dalmácia Holiday Ltd. (yachts, ports and hotels). Croatian companies invested in Hungary EUR 8.3 million, which is 0.22% of the total Croatian investments abroad.

As regards Croatian businesses in Hungary, the Ambassador points out the food and beverages producer Podravka as well as Agrokor, Croatia’s largest firm, the producer and distributor of food and drinks. “In order to enhance bilateral economic cooperation, the two sides will continue to encourage further mutual investments as well as other forms of cooperation between businesses of the two countries. The competition is too big with most of the Western European companies already established here. Still, there are interested firms like the Konèar Group, an electrical, transport and energy company. Smaller investors are also appearing along the common border,” he adds.

“Despite the impact of the global economic crisis, bilateral trade between our countries saw exceptional development in 2010 and 2011,” he stresses. The overall trade in 2012 amounted to EUR 735.6 million, 0.7% more than in 2011. Exports grew by 0.9% and amounted to EUR 242.9 million, while imports increased by 0.6% to EUR 492.8 million. Croatia traditionally has a large trade deficit with Hungary, which last year amounted to EUR 249.9 million.

As for Croatian exports, they include sugar, molasses and honey oil, mineral oil, fertilizers, paper and paper products, footwear, wood products, leather and artificial leather, lime, cement and other building materials. Regarding Hungarian exports to Croatia, it is mainly oil and mineral oil, natural gas, electricity, sugar and honey, medicinal and pharmaceutical products, animal feed, petroleum products, iron and steel products, televisions, video monitors and projectors, paper and cardboard, and more.

Energy security

Ambassador Grliæ-Radman believes that energy cooperation should be strengthened in the interest of increasing the security of supply and diversification. He points to the MOL-INA cooperation as the flagship in this field. The two states signed an agreement in February 2011 to strengthen the security of energy supply. Hungary supports Croatia's efforts to construct an LNG terminal on the island of Krk, a project worth about EUR 600 million, thereby making energy supply more secure not only in Croatia, but in the entire region, as well. An interconnection pipeline between Croatia and Hungary was put into operation in December 2010.

“The road infrastructure is well developed but it is necessary to modernize the railway line on Corridor 5b (the state borders between Hungary and Croatia). The goal is to build a double-track railway that would meet EU standards and have a satisfactory speed. The competitiveness of the Port of Rijeka, to be reached through the motorway Corridor 5c, is very important for the countries of the Visegrád Group, as well,” the Ambassador says.

He recalls that traveling between the two capitals once took a long time, more than five hours because only part of the route was covered by motorways. “Now, not only do we diplomats who benefit from travel on motorway all the way, but it is also important for Hungarians to get to the Adriatic Sea in the summer for holiday. More than 300,000 of them visit Croatia every summer.”

The new EU state

Croatia’s accession to the European Union on July 1 this year opens new perspectives in trade that until now, have been limited due to customs. Agricultural products will be freely exchanged, and the conditions of free movement of labor will be improved. “As a result, we expect more capital investment since the single market guarantees better legal security. The abolition of customs barriers will also facilitate border trade, which is important for our relations with Hungary as well, since local producers will be free to sell their products. It is expected that in the years after Croatia’s accession, the mutual trade turnover will substantially increase,” the Ambassador notes.

Common Hungarian-Croatian projects have already been funded through the cross border cooperation program, for which the European Commission allocated more than EUR 52.5 million for seven years. The Program offered a wide range of opportunities. Through three calls for proposals, 140 projects worth EUR 47 million were approved. Most funds were allocated for projects related to environmental and rural protection, research and development, and training and education. Projects from the last round were predominantly from the touristic sector: construction and designation of new cycling routes, development of infrastructural facilities for eco tourism and designation of thematic routes related to the cultural heritage.

Ambassador Grliæ-Radman stresses that Croatia has worked hard for more than a decade to reach EU membership and that Hungary has been one of the biggest friends of his country in this process (accession talks were wrapped up during the Hungarian EU Presidency), and also one of the first countries to recognize the independence of Croatia as Yugoslavia was falling apart. “The European Union is a club that has achieved, over the past decades, great success in bringing stability to this continent. After the Cold War, it gave an opportunity to the countries of Eastern Europe to be part of this club with its economic order and free market. We should be responsible members in this club and we should take advantage of its benefits. Its principles oblige us, although, we are aware of its heterogeneity and the challenges it is going through.”

Cultural relations

There is a framework of cultural cooperation between the two countries. The Ambassador points out that “it is a structure that we are trying to fill with our initiatives. We are very satisfied with the cultural events presented here in Hungary. We met recently  to discuss a list of common projects for 2013-14.” One fine example is an exhibition by the Croat sculptor Ivan Me¹troviæ. He adds that “cultural events will be held in Hungary on the occasion of Croatia’s accession to the EU and the Croatian national holiday (Statehood Day, June 25) aimed at my country expressing its gratitude to Hungary for all its support.” The Palace of Arts in Budapest will host the Zagreb Philharmonic with a hundred musicians, playing together with the Hungarian National Philharmonic Orchestra in a concert on June 26 in the Palace of Arts in Budapest to express the spirit of comradeship between the two countries. The program, with the two President, János Áder and Ivan Josipoviæ as chief patrons, will feature the works of Croatian and Hungarian composers and will end with Beethoven’s 9th Symphony, the quasi anthem of the European Union.

Also on the cultural front, the Ambassador proudly quotes from a letter received from the southern Hungarian city of Pécs whose cultural Grand Prize was awarded this year to the Croatian dance ensemble ‘Tanac’ and its accompanying band, ‘Vizin’ “for their precious and successful activity in preserving Croatian cultural heritage and traditions”. The Prize was handed over on March 15 in the presence of the Croatian Ambassador.

Learn, learn, learn!

Gordan Grliæ-Radman is also a lecturer at the University College of International Relations and Diplomacy and at the Diplomatic Academy in Zagreb. He says his philosophy as a diplomat that he tells the students about is learning for life to keep up with the changing world. “My mottos are ‘Panta rhei’ and ‘Carpe diem’, and in accordance with these, I suggest to my audience that they continue learning as much as they can, be proactive and well-organized! You have to set goals and dedicate yourself to the job you’re doing.”