Elections that (couldn't) stop the war in the Balkans - Milan Panić against Slobodan Milošević

The candidate for the first prime minister of the new state appeared until then unknown Milan Panić, the founder and owner of the multi-million ICN pharmaceutical company.

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Photo: Getty Images
Photo: Getty Images
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

A man in a dark blue suit, white shirt and red striped tie stands up decisively from his seat in the General Assembly of the United Nations (UN) in front of which is written - Yugoslavia.

There is a commotion in the hall as he slowly walks towards the lectern, and then one you p, when he drops the papers from which he will read in front of the microphone.

"The problem before this convocation is more peace or more war," warned Milan Panić, the first prime minister of the Federal Republic of Yugoslavia (FRY), in English with a strong American accent.

He came to the post of prime minister only a month earlier, at the invitation of Serbian President Slobodan Milosevic, at a time when war was already raging in the Balkans.

Although a newcomer to politics, the American businessman of Serbian origin speaks calmly and calmly in front of world officials, only occasionally looking at his papers.

"There is too much talk about politics, when we should be talking about peace, and my only goal is to restore peace and stability in the Balkans," he says.

Just a few months later, in the first general elections in the FRY, held exactly 30 years ago, Panić was the main opponent of Milošević in the race for president of Serbia.

"He was quite an unusual political phenomenon in Serbia," diplomat Nebojša Vujović, at the time charge d'affaires of the FRY embassy in Washington, told the BBC.

In 19992, the flames of war in Croatia and Bosnia and Herzegovina flared up more and more, the situation in Kosovo became more complicated, and Panić kept talking about peace.

And in not very fluent Serbian, also with a strong accent and American soft "r" by which he was recognizable.

"It was a real tragedy brekyap (breakup) of Yugoslavia, because it was an economically strong country. Everyone unites, we break apart." he said in 2014 in an interview for Hepi television.

British journalist Tim Jude in the book Kosovo: War and Revenge writes that the first prime minister of the FRY "truly believed that work, money and the economy could solve the problems in the Balkans."

"He was not interested in ethnic conflicts and sincerely wanted peace," writes Jude.

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In the presidential elections, Panić was supported by the opposition coalition Depos, but Milošević won in the end, as did his Socialist Party of Serbia in the parliamentary elections.

"But it should be kept in mind that he collected more than a million votes without almost any campaign, which lasted only three weeks," says Ivan Protić, editor of the Beta agency, who often followed Panić's rallies and activities in the early 1990s.

"It's the biggest result until Vojislav Koštunica and October 5," when Slobodan Milošević's regime was overthrown, adds Protić for the BBC.

How Panić entered politics

The American businessman appeared almost out of nowhere in Serbian politics.

It all started with the collapse of the Socialist Federal Republic of Yugoslavia (SFRJ).

Slovenia first seceded from SFRY, followed by Croatia, where the war began in 1991. The conflict then spread to the multinational Bosnia and Herzegovina, which also declared independence.

In April 1992, Serbia and Montenegro proclaimed the Federal Republic of Yugoslavia, a new state that was soon under severe United Nations sanctions due to the war.

And as a candidate for the first prime minister of the new country, the previously unknown Milan Panić, the founder and owner of the multimillion-dollar ICN pharmaceutical company, appeared.

His name, as stated in Adam Lebor's book Milošević: Biography the first was proposed by Dušan Mitević, former director of the public service and Milošević's advisor.

Lebor states that Mitević met Milošević and Panić.

"It was love at first sight - Panić is an open man with a good heart, and Milošević is a banker who understands business and told Panić how important privatization is," writes Lebor.

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But that was not the only reason why Panić was the choice of Milošević and his associates.

"Panić, as a successful American businessman, is probably seen by the power structures in Belgrade as a much-needed link with the Western world, while the country sinks ever deeper into economic chaos and a bad international reputation." writes the Los Angeles Times in an article from July 2, 1992.

However, the American daily prophetically estimates that the new prime minister will probably "not have much power".

"Serbian President Slobodan Milošević is believed to be in control of the federal army, monetary system, security and foreign policy." writes the LA Times.

Tim Žuda assesses that "Milošević wanted someone who would do what he was told".

"He believed that Panić, because of his wealth and because he is an American citizen, had a direct line with the White House."

Panić assumed the office of Prime Minister on July 14, 1992, and was also the Minister of Defense.

"I want to bring American-style democracy and a market economy to the country of my birth and youth," he said then.

He immediately asked Milosevic to resign, move to America and become a banker.

"He accepted the job of prime minister believing that he could succeed in the incredible task of ending the war," Laura Silber and Alan Little write in the book. Death of Yugoslavia.

The journalist duo calls Panić "a breath of fresh air in the political market full of gloomy authoritarian politicians of Serbia".

"Surrounded by a team of American advisers, Panić tried to run Yugoslavia like he ran a pharmaceutical company."

However, when asked who understood him when he came from America, Panić says "very few of them".

"I sincerely wanted to make peace," he stated in an interview for Happy.

"And when I first came, the president of the Socialist Party was (Borisav) Jović, who told me, 'Panic, your stories show that you arrived from Mars.'

"My response was 'no, no, you're wrong - this is Mars'."

Who is Milan Panic?

Born on December 20, 1929 in Belgrade, in the then Kingdom of Yugoslavia.

His father died early, so he grew up with his mother, and during the Second World War he was a member of the National Liberation Movement of Josip Broz Tito.

Later, he studied medicine and biochemistry, and also took up cycling.

In fact, he reached America by bicycle, in a way - during an international race in the Netherlands in 1955, he defected with his wife to Austria, then to Germany.

He arrives in America, as he claims, with 25 dollars in his pocket and soon starts the company ICN, which becomes a global pharmaceutical giant.

Panić calls himself "a little Serbian emigrant in America" ​​in most interviews, although photos of him with some of the most powerful people of the 20th century can be found on the Internet.

And with most of the American presidents of that era, from Ronald Reagan to George Bush and Bill Clinton.

Due to his financial success, the media at that time often wrote about him as a person who "achieved the American dream".

"When I think of him, the first thing that comes to mind is his rather bad Serbian-Croatian, Croatian-Serbian or Serbian, whatever you want to call it, as well as thinking that many things can be easily solved," says Protić.

"He came up with that idea and probably wanted good, but he didn't know the structure of the government here, what kind of forest everything should be pushed through and who should be broken."

Panić also talked about one of these situations. recalling the peace negotiations with the Croatian side and arguments over a pass on the border.

"That isthmus is worth nothing, there's nothing on it, no houses, not even trees, just rocks and I told them I don't understand why they're fighting for it and we'll give it to them, and they laughed."

As prime minister of the FRY, Panić signed the transfer of the disputed pass, known today as Prevlaka, to Croatia.

"And then Stipe Mesić (the last president of the Presidency of the SFRY and the first prime minister of Croatia after independence) tells me that he sent one of his own to the Serbian delegation and that the Serbs are also laughing... Both the Serbs and the Croats were laughing at me."

Panić always carried a can of Coca-Cola and tic-tac candies, and journalists remember him as the first official who took them everywhere with him, due to his constant availability to the media and unusual statements.

"We once visited Tirana, Sofia, Skopje with him in the same day," says Protić, adding that Panić often "didn't fit in" in Serbia because of his attitudes and statements.

"At first, people didn't know what to think of him, but a bunch of them said 'oh, he's a Serb, but he doesn't know Serbian well' - so what can you expect from someone who left 30 years ago, he remembered well what he remembered ".


"everyone is the same"

Part of the interview that took place on October 4, 1992. Panić gave to the Los Angeles Times

  • There is a great distance between your waterfront home in Newport Beach i massacres in Yugoslavia. Were you shocked by the level of violence and hatred there?

And cit goes nego shocked. It's amazing that people can still do these things. But I have news for you - there is no deep hatred between people.

I think this is the product of cheap, intellectually dishonest, crippled politicians, who have nothing else to offer.

Mthe rye is a very powerful weapon.

  • Politicians on both sides?

Politicians on all sides. To everyone. You will discover very quickly that I do not separate them. They are all the same.

  • But when you say all leaders, do you include Serbia as well?

Of course. They are all the same.


Conflict with Milosevic

The premonitions that the LA Times wrote about just before Panić assumed the prime ministership soon came true.

In practice, Panić had no power, but he said and did what he thought.

"If Milosevic believed that a newcomer to the world of politics would simply follow his orders, he was mistaken," write Silber and Little.

In his inaugural speech, Panić already talked about the recognition of Croatia and BiH, as well as the withdrawal of the Yugoslav army, which he later repeated to the media.

He soon fired Mihalj Kertes, former director of the Federal Customs Administration of the FRY, but also Milošević's confidant, from the position of Deputy Minister of Police.

"For Milošević, the episode with Panić was a real disaster and he had to get rid of him as soon as possible," says Džuda.

One of the biggest conflicts between the two took place during the peace conference in London in August 1992.

When they arrived in London, Silber and Little write, Milošević "was more interested in resolving political disputes with the newly appointed prime minister than in the conference."

"They argued publicly and behind the scenes, and Milošević even threatened to hit him," they state.

"At one point, Milošević asked for a word, Panić scribbled something on a piece of paper and showed it to the President of Serbia.

"It said shut up (shut up) in English, and then he said in front of everyone that Milosevic was not authorized to speak."

Lebor writes about that moment as "Panic's declaration of war against Milošević".

The next day, one of the proposals for a peace solution for the situation in Bosnia and Herzegovina was before the Serbian delegation, when the delegation withdrew to consider that document.

"There was a big fight," Silber and Little write.

"Milošević insisted that they leave. Panić wanted them to stay. In the end, Milošević agreed that the delegation could stay, but only if Panić promised to remain silent."

At the conference, Panić also presented his 12-point peace plan, which included mutual recognition of the former Yugoslav republics according to their original borders, as well as the opening of negotiations with Albanian leaders.

Milosevic did not like that at all.

"Panic's plan was to offer the West the removal of Milošević, in exchange for the lifting of sanctions," Lebor writes in Milošević's biography.

"He saw it as a business agreement between two partners where both have something to trade."

However, American officials were not interested in that, Lebor adds.

"They didn't give him strong support even at the beginning, they let him go and said 'if it works, it works - if not, what will we do,'" says Vujović.

Three days after the London conference, the National Assembly scheduled a vote on the withdrawal of support for the Panić government.

However, Panić managed to remain in office thanks to the votes of Montenegrin representatives in the federal parliament.

And so, only six months after he was appointed to the position of prime minister - and just like Milošević's man - he became one of the leaders of the opposition.

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About the elections

Soon, elections at all levels were announced for December 20, 1992 in Yugoslavia.

Immediately before the elections, Tim Džuda writes, "Milošević's most important weapon", Television Belgrade, which would later become RTS, started with propaganda against Panić and the opposition.

It was said about Panić that he was an agent of the American CIA, that he was working to strengthen sanctions against Yugoslavia and to sell Kosovo.

"In one of the few television interviews, Milošević said that Panić's principals were in Washington," writes Džuda.

Before the 1992 elections, there was the first real media campaign in the history of Serbia, with election advertising blocks and rallies across the country.

"They keep telling us about some of the problems we have in the country, which they are solving - if it weren't for them, there wouldn't be any problems." shouted Panić from the square in Kruševac.

"This is not a battle between two men, this is a battle between two systems, the old and the new."

Milosevic is at the rally in Trstenik, he said that "he will do everything to preserve peace", but also "freedom, independence for our people".

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Milošević won 57 percent of the vote, and Panić 34. Even after the election, he often accused the authorities of irregularities.

"The bottom line is that Panić stood as an opponent of Milošević, that he was not afraid and that he won more than a million votes despite a short campaign and attacks," says Protić.

"Against that kind of Milosevic in that constellation, that's a very good result."

The outcome could have been different if two circumstances had been different, writes Jude.

At the end of September 1992, Panić asked the United Nations in New York, in the midst of sanctions, to allow Yugoslavia to import heating energy.

His request was denied.

"If he had been accepted, many in Serbia believe, Panić would have been seen as a miracle worker and would have received many more votes in the elections in December," believes Džuda.

"And he would have received several hundred thousand more votes if the Albanian leaders had stopped the boycott of the elections and invited people to vote for him, in an attempt to get rid of Milosevic."

At that time, all communication between the Serbian and Albanian communities had been interrupted for years, which boycotted not only the elections, but also all institutions.

However, on October 15, 1992, Panić visited Pristina, where he met with Ibrahim Rugova, the then leader of the Kosovo Albanians.

In front of the journalists, he suddenly hugged Rugova, saying that the two of them would "democratize the Yugoslav system", but that did not happen.

"'We are ready Panic, and you are ready, but the Serbs are not ready,' Rugova told me then," Panic said later.


'Panic's debt' - The story of Galenica

Panić's ICN later takes over Galenika, once the largest Yugoslav drug producer.

The contract between Milan Panić and Slobodan Milošević on the conversion of the state-owned factory into mixed ownership was signed in 1990, he writes. Time.

But here too, as in the field of politics, problems soon arose.

When is it between Milošević and Panić "love stopped", the American-Serbian businessman claimed millions of dollars from the state in the name of unpaid medicines.

At that time, the Government of Serbia reduced ICN's share in Galenica from 75 to 35 percent by decree, took over the factory and appointed new management.

In February 1999, ICN sued Yugoslavia in a court in Washington for unjust confiscation of property.

After October 5, when Milosevic was overthrown from power, Panić's men entered the factory again, not easily, but by force. it says Vreme.

The dispute was resolved at the International Arbitration in Paris five years later, so that the state of Serbia had to pay the American company 50 million dollars, which Panic's management had previously invested in Galenik. writes the portal Ekapija.

This debt of Serbia was remembered by its name Panic's debt.

Galenika is 2017. sold to a Luxembourg company.


Panic after the war

Panić ended his short political career in Serbia in 1993, when the government of Radoje Kontić, a member of the Montenegrin Democratic Party of Socialists, was formed.

Panić then retired from politics, but still not completely.

"I was no longer Prime Minister, but I was working on the other side," he said in an interview.

Already in December 1993, he began correspondence with the then US President Bill Clinton, with the idea of ​​a peace summit on Yugoslavia.

According to Panić, they met a year later in California to discuss this idea.

The following year, in 1995, the war in the former Yugoslavia ended with the signing of the peace agreement in Dayton.

Panić is 92 years old today, and in the meantime he has published his autobiography Peace Mission: Dayton is my ideaa.

In interviews, he still talks about peace and is unforgiving whenever he mentions Milosevic.

He calls him an "intelligent but corrupt man", a "demagogue" and a "liar".

"Everything I did during the day to help Yugoslavia, he destroyed at night - but I told him it would end up in The Hague, and that's how it was."

In 2006, Milošević died in the custody of the Hague Tribunal, during the trial for war crimes committed in the former Yugoslavia.

"Dayton seemed to me then and now like a great victory for peace," he said Panić in 2015 in an interview for Novi magazin.

"The bloody war in Bosnia has stopped, the killings and destruction have stopped.

"That was the most important thing - to stop the war."


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