An industrial town north of the Yugo-slav capital, Belgrade, Pancevo used to take pride in its cultural heritage. Nestling between the Danube and the river Tamis, its citizens also enjoyed some of the highest incomes in the Yugoslav republic of Serbia. Today, however, Pancevo's once-elegant Austro-Hungarian facades are in need of a lick of paint. Its three main factories, each hit by nato bombs last year, are running at a fraction of their original capacity. Salaries have plummeted, and unemployment has almost doubled over the past year.
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