Slovenia Business Week no. 12, March 20th, 2006
Table of Contents:
HEADLINES ............................................................................................................................. 3
Slovenia's Top CEOs Call for Greater Expansion ................................................................. 3
Wages Slightly Down in January ........................................................................................... 3
Istrabenz Holding Publishes Takeover Bid for Droga Kolinska ............................................ 4
INTERNATIONAL COOPERATION ...................................................................................... 5
Minister Sees Slovenia as Sweden's Entry Point to Balkans ................................................. 5
Iceland's Ambassador Presents Credentials to Drnovsek ....................................................... 5
Rupel Receives South Korean Ambassador ........................................................................... 5
EUROPEAN UNION ................................................................................................................. 7
Slovenia to Get Euro Convergence Report in Mid-May ........................................................ 7
EU Chair Trio to Shortly Draft 18-Month Programme .......................................................... 7
Merkel and Jansa Call for Stronger and Dynamic Europe ..................................................... 8
Rupel and Steinmeier Discuss EU Presidency and the Constitution ..................................... 8
Slovenia Spent Only 39% of Transition Facility Funds so Far .............................................. 9
Damijan Sets Slovenia as Reform Role Model in the EU ...................................................... 9
Commissioner Verheugen Pleased with Slovenia's Reform Programme............................. 10
Euro Conference: PM Says Euro Has United All in the Country ........................................ 10
Euro Has Benefits but also Responsibilities, Almunia Tells Slovenia ................................ 11
Almunia Warns about Long-Term Public Finance Sustainability ....................................... 12
Euro Conference: Stable Prices Will Be Priority of Eurozone ............................................ 13
Euro Conference: Gaspari Labels Euro Switch a Step Forward .......................................... 13
Drobnic: Italy to Sign Labour Agreement with Slovenia .................................................... 14
LEGISLATION ........................................................................................................................ 15
Government Amends Bank of Slovenia Act ........................................................................ 15
Based on the 2 Jansa and Almunia on Euro Changeover and Reforms ............................... 15
Euro Conference: Potocnik Says Slovenia on Track for Euro Switch ................................. 15
STATISTICS/FORECASTS .................................................................................................... 17
Ljubljana Had 50% More Tourists in 2005 than Three Years Ago ..................................... 17
Unemployment Rate at 10.5% in January ............................................................................ 17
Every Ninth Slovenian Eats Less Poultry Due to Bird Flu .................................................. 17
FINANCE................................................................................................................................. 19
Social Partners Scrutinise Tax Reform Proposal ................................................................. 19
Petrol Prices Down, Diesel Up ............................................................................................. 19
Bajuk Welcomes Proposed Euro Timetable ......................................................................... 20
Toplak Appointed Head of State-Run Pension Fund Management ..................................... 20
State to Dish Out EUR 5.43m for Employment of Researchers .......................................... 21
Abanka Takes out EUR 180m Loan .................................................................................... 21
PM Claims Views of KBC and Government Converging ................................................... 21
Gorenjska banka Increases Stake in Merkur ........................................................................ 22
Ljubljana Stock Exchange .................................................................................................... 22
Foreign Exchange ................................................................................................................. 23
BRANCH INFORMATION .................................................................................................... 24
Laptops Close Gap to Desktops in 2005 .............................................................................. 24
Innovators Complain State Doesn't Promote Innovation ..................................................... 24
Working Group Stresses Need for User-Friendly Public Transport .................................... 25
COMPANIES ........................................................................................................................... 26
Major Trimo Owners Say Trimo Takeover Bid Successful ................................................. 26
State Enters Spa Renovation Project .................................................................................... 26
Ministry, DARS Set Up Central Road Information Service Center..................................... 27
Dremelj Gets the Top Job at Telekom Slovenije ................................................................. 27
Petrol Gets Two New Supervisors ....................................................................................... 27
Profitable Telekom to Cut Costs, Buy Macedonian ISP ...................................................... 28
Simobil Increases Revenues by 14.8% in 2005 ................................................................... 29
Sava Holding Acquires 20% in Hardware Retailer Merkur ................................................. 29
Footwear Maker Alpina Posts Lower Sales, Increases Profit .............................................. 29
Intereuropa Continues Push South ....................................................................................... 30
State-Run KAD and SOD Accept Maos Bid ....................................................................... 30
SLOVENIA IN BRIEF ............................................................................................................ 32
Bojan Krizaj Replaces Legendary Tone Vogrinec ............................................................... 32
Podobnik Promises Tough Stance on Trieste Gas Terminal ................................................ 32
Slovenia and Columbia Sign Culture Agreement ................................................................ 32
Slovenian Bid to Run IAEA Presented to El Baradei .......................................................... 32
Government Names Arbiter for N-plant Arbitration............................................................ 32
Slovenia Interested in EU Qualification Recognition Programme ...................................... 32
Luxembourg Minister: Court Backlog Common Problem in EU ........................................ 32
2
HEADLINES
Slovenia's Top CEOs Call for Greater Expansion
Slovenian companies will have to further expand to foreign markets, with former Yugoslav
and former Soviet Union countries their prime targets, CEOs of four Slovenian blue-chip
companies told a panel
Slovenian companies will have to further expand to foreign markets, with former Yugoslav
and former Soviet Union countries their prime targets, CEOs of four Slovenian blue-chip
companies told a panel on Tuesday, 14 March.
Chief execs of grocer Mercator, fuel trader Petrol, food company Droga Kolinska and port
operator Luka Koper, speaking at the 13th Stock Market Focus, were unanimous in their call
for greater internationalisation of Slovenian corporations.
CEO of the country's largest grocer Ziga Debeljak said that Mercator will increase its
presence in the markets of the former Yugoslavia by allocating between EUR 130m and EUR
150m a year for investment.
The company will thus secure a 5% annual growth in euros, excluding possible acquisitions or
strategic partnerships, Debeljak added.
Petrol's chief Exec Marko Kryzanowski also announced a drive south, adding that the
company is interesting for foreign investors, especially because of its network of gas stations
in Croatia and Bosnia-Herzegovina.
He added that Petrol will generate SIT 430bn (EUR 1.79bn) in revenues in 2006, adding if
Petrol could charge an average EU margin, its net profit in 2006 would amount to SIT 20bn
(EUR 83.47m), instead of SIT 7bn (EUR 29.21m).
CEOs of Droga Kolinska (Robert Ferko) and Luka Koper (Marjan Babic) also believe in
expansion, in case of Ferko to the countries of the former Yugoslavia and the former Soviet
Union, while Babic sees Luka Koper as one of the most successful Adriatic seaports also in
the future.
The 13th Stock Market focus was put on by the Ljubljana Stock Exchange (LJSE) and the
Finance business daily.
It was opened with a lecture from Bine Kordez, CEO of hardware retailer Merkur, who
presented Merkur's business plans through 2010, announcing that the group's revenues would
grow by 13% a year in the period.
He also believes that the company's 2010 target revenues of EUR 1.5bn and a net profit of
SIT 6bn (EUR 25.04m) could only be achieved through expansion to the markets of the
former Yugoslavia.
Meanwhile, the participants of a round table on hidden economic opportunities agreed that the
Hong Kong presents the largest amount of investment options. The US market is also on the
rise, while the options in the developing countries are somewhat overrated, they believed.
Wages Slightly Down in January
The average net wage in Slovenia amounted to SIT 180,193 (EUR 752) in January
The average net wage in Slovenia amounted to SIT 180,193 (EUR 752) in January, 2.2% less
than in December 2005 but up 5.1% over the same month last year, according to the Statistics
Office.
Meanwhile, the average gross earnings stood at SIT 281,593 (EUR 1,175), down 3.1% over
December and up 5.3% year-on-year.
In real terms, January gross wages dropped 2.6% over the month before and increased by
2.8% compared to January 2005.
3
Istrabenz Holding Publishes Takeover Bid for Droga Kolinska
Istrabenz, which already holds a 55.63% stake in Droga Kolinska, will offer SIT 2,450 (EUR
10.23) per share for the remaining shares
Istrabenz holding published a takeover bid for the food company Droga Kolinska after its
supervisory board approved the move at its session on Wednesday, 15 March.
Istrabenz, which already holds a 55.63% stake in Droga Kolinska, will offer SIT 2,450 (EUR
10.23) per share for the remaining shares.
Istrabenz CEO Igor Bavcar told the press that the takeover is a logical step, after the
successful purchase of Kolinska and its merger with Droga last year.
The company moreover notified the securities market watchdog and the Competition
Protection Office of its bid.
The Ljubljana Stock Exchange (LJSE) halted trade in food company Droga Kolinska and
Istrabenz on Tuesday, 14 March, following media reports on the acquisition.
The head of Istrabenz's supervisory board Janko Kosmina believes that a takeover would
result in greater profitability of one of Istrabenz's key companies.
Droga Kolinska employs some 1,900 workers. It plans to end 2006 with SIT 50bn (EUR
208.68m) in revenues and a profit of over SIT 2bn (EUR 8.34m).
The company posted a net loss of SIT 196.53m (EUR 820,300) in the period between May
2005 and the end of the last year.
Bavcar moreover rebutted media reports that a deal was about to be concluded on the
establishment of a joint holding between Slovenian retailer Mercator and Serbia's grocers
Delta and Konzum.
Istrabenz, as one of Mercator's larger owners supports the grocer's management in looking for
strategic partners, he added.
4
INTERNATIONAL COOPERATION
Minister Sees Slovenia as Sweden's Entry Point to Balkans
Economics Minister Andrej Vizjak held talks with Swedish Industry Minister Thomas Ostros
in Stockholm
Economics Minister Andrej Vizjak told STA that he wants Slovenia to become an entry point
for Swedish companies in their expansion to the Balkans, after holding talks with Swedish
Industry Minister Thomas Ostros in Stockholm on Tuesday, 14 March.
Vizjak sees trade possibilities for Slovenian companies in the car industry, home appliances
and pharmacy sectors, as well as in cooperation between biotech and telecommunication
companies.
The pair also discussed the services directive and the World Trade Organisation, with both
ministers expressing their preference for an open economy, free of protectionist measures,
Vizjak revealed.
Vizjak, who was accompanied by a business delegation, moreover wants Slovenia to increase
its cooperation with this Scandinavian country in the field of tourism.
Even though trade with Sweden presents 1% of Slovenia's total foreign trade, it grew by over
22% in 2004, reaching EUR 270.2m.
In 2004 Slovenian exports increased 19% to EUR 124.4m, while imports grew by just under
26% to EUR 145.8m.
Iceland's Ambassador Presents Credentials to Drnovsek
In the first ten months of 2005, Slovenia's exports to this island state amounted to EUR 1.75m,
whereas mutual investment remain modest
The new Icelandic Ambassador to Slovenia Kristinn F. Arnason presented his credentials to
President Janez Drnovsek in Ljubljana on Tuesday, 14 March, according to a press release
from the president's office.
Arnason, who is based in Switzerland, was particularly interested, according to the president's
office, in Drnovsek's efforts for peaceful solutions to the situation in Kosovo, the Middle East
and Darfur.
Drnovsek highlighted that his efforts have been inspired by a desire to speed up the resolution
of these problems, which the international community and the regions involved have been
dealing with for quite some time.
The president also said that relations between Slovenia and Iceland were excellent, and
stressed that contacts between Slovenian and Icelandic top officials went back to the period
before Slovenia's independence.
Arnason also met Anita Pipan of the Slovenian Foreign Ministry. The pair shared a view that
Slovenian-Icelandic relations were traditionally very good, but nevertheless called for more
economic cooperation.
In the first ten months of 2005, Slovenia's exports to this island state amounted to EUR
1.75m, whereas mutual investment remain modest, according to the ministry.
The head of the ministry's directorate for policy planning and multilateral affairs also
expressed Slovenia's interest in cooperating with Iceland during Slovenia's stint as EU chair in
2008.
Rupel Receives South Korean Ambassador
FM Dimitrij Rupel held farewell talks with the outgoing non-resident South Korean
Ambassador to Slovenia Cho Chang
5
FM Dimitrij Rupel held farewell talks with the outgoing non-resident South Korean
Ambassador to Slovenia Cho Chang on Friday, 17 March, expressing thanks for good
cooperation and hope for a continuation of good relations between the two countries,
according to the Foreign Ministry.
Rupel and Cho Chang found the relations between Slovenia and South Korea to be friendly
and without open issues. Rupel credited his guest with contributing substantially to the
intensified cooperation between the two countries in recent years.
The Slovenian FM also wished Cho, who was based in Vienna, much success in the future,
the press release from the ministry states.
6
EUROPEAN UNION
Slovenia to Get Euro Convergence Report in Mid-May
European Commissioner for Economic and Financial Affairs Joaquin Almunia has
announced that the European Commission will publish the euro convergence report for
Slovenia on 16 May, which would give the country enough time to carry out all the
preparations for eurozone entry on 1 January 2007
European Commissioner for Economic and Financial Affairs Joaquin Almunia has announced
that the European Commission will publish the euro convergence report for Slovenia on 16
May, which would give the country enough time to carry out all the preparations for eurozone
entry on 1 January 2007.
"That way, the EU summit in June can say whether the country is meeting the euro criteria. I
hope the assessment will be positive and we can welcome a new member to the eurozone,"
Almunia said after the meeting of the eurozone finance ministers.
Slovenia requested an early report two weeks ago, as a joint convergence report for all euro
candidates is to be drafted in October, which would be late for Slovenia's planned 1 January
2007 switchover.
Almunia stressed that the Commission's report would not deal with Slovenia's political
readiness to adopt the euro, but only provide an assessment of whether it is meeting the
convergence criteria for the introduction of the single European currency.
Meanwhile, Almunia stressed on Tuesday, 14 March that economic indicators showed
Slovenia was on track for eurozone membership.
The commissioner, speaking on the sidelines of a meeting of EU finance ministers, would not
speculate on whether anything could still endanger the country's efforts to adopt the euro.
Among the three countries than want to introduce the euro on 1 January 2007, only Slovenia
is currently in compliance with all the Maastricht criteria; Lithuania and Estonia are having
trouble with inflation.
The criteria are: inflation within 1.5 percentage points of the average rate of the three
eurozone countries with the lowest inflation, deficit below 3% of GDP and public debt below
60% of GDP.
EU Chair Trio to Shortly Draft 18-Month Programme
According to a recent agreement reached by EU nations, the three EU members to chair the
bloc successively beginning with 2007, among them Slovenia, are to present a joint 18-month
plan by December at the latest to have it finally approved by EU foreign ministers
According to a recent agreement reached by EU nations, the three EU members to chair the
bloc successively beginning with 2007, among them Slovenia, are to present a joint 18-month
plan by December at the latest to have it finally approved by EU foreign ministers.
The trio - consisting of Germany, Portugal and Slovenia - to chair the Union in this order will draft their programme in close cooperation with the European Commission.
After being approved by member states represented by their foreign ministers, the EU Council
will become the formal "owner" of the programme.
The EU introduced the 18-month programme as part of an expected European constitution,
which would abolish independent presiding with 2007 and usher in a joint 18-month three
countries chairing of the EU Council.
With the constitution frozen due to rejections by France and Netherlands, the EU has
nevertheless decided to uphold a tight cooperation on a trio level, reasoning that such a format
is more effective in ensuring a fluent implementation of the EU's common priorities.
7
Merkel and Jansa Call for Stronger and Dynamic Europe
Prime Minister Janez Jansa and his host and counterpart Angela Merkel made a joint call in
Berlin for the implementation of the Lisbon Strategy which is to enhance the development of
Europe
Prime Minister Janez Jansa and his host and counterpart Angela Merkel made a joint call in
Berlin on Wednesday, 15 March for the implementation of the Lisbon Strategy which is to
enhance the development of Europe.
Jansa, who paid a one-day official visit to Germany, stressed that Slovenia was already trying
"to implement a key part of the Lisbon Strategy" with the government-sponsored economic
and social reforms.
The prime minister, who was accompanied by Foreign Minister Dimitrij Rupel on the trip,
added that there are several similarities between the reforms being prepared in Slovenia and
Germany. Merkel meanwhile believes the development of Slovenia's economy improved to
the point when changes are no longer an easy task.
The implementation of the Lisbon Strategy will be the main topic at the upcoming EU summit
on 23 and 24 March, with a special focus on the EU services directive, which has been met
with mixed feelings in Slovenia.
"The directive is a compromise between what is needed for the development of the EU
services market and its affects on the employees in the EU countries," Merkel endorsed the
compromise proposal that was passed by the European Parliament in first reading in February.
The pair also focused on Slovenia's and Germany's respective stints at the helm of the EU in
2007 and 2008, the European constitution, EU prospects for the Balkans, as well as the EU
peacekeeping mission in DR Congo.
"Germany generally supports the European prospects for the Balkans," Merkel said, adding
that the region could be offered privileged partnership. However, the region cannot reach
political stability without being given European prospects, she believes.
"Without European prospects there are no positive alternatives for the Balkans," Jansa said.
"The EU should play a positive and decisive role for the future of this region, otherwise war
and destruction could return to these countries," he added.
The pair moreover shared a view that for Europe to open its doors to the Balkans, the EU
needs an institutional upgrade. "Without institutional intervention in the structure of the EU it
will be difficult to imagine future EU expansions," Merkel explained.
Jansa and Merkel also discussed economic cooperation between the two countries, as
Germany is the most important economic partner for Slovenia, with 22% of Slovenia's trade
conducted with Germany.
With Germany being Slovenia's fifth biggest investor, Jansa believes the cooperation will
even be strengthened after the two countries sign a convention on the avoidance of double
taxation.
Rupel and Steinmeier Discuss EU Presidency and the Constitution
Slovenian Foreign Minister Rupel accompanied Prime Minister Janez Jansa on an official
visit to Germany
Foreign Minister Dimitrij Rupel and his German counterpart Frank-Walter Steinmeier met in
Berlin on Wednesday, 15 March, discussing Germany's and Slovenia's respective EU
presidencies in 2007 and 2008 and the future of the European constitution.
As Rupel explained after the talks, Germany would like to see the EU putting greater
emphasis on preserving the constitution in its entirety, as otherwise "the story of the
constitution" could come to an end.
8
Rupel moreover stressed that Germany was one of Slovenia's most important political and
economic partners. He would like both countries to cooperate during the two countries'
respective EU stints at the helm of the EU.
The two ministers also exchanged views on the situation in the Balkans, especially the
referendum on Montenegro's independence, the conditions in Serbia following the death of
former President Slobodan Milosevic, and talks on the future status of Kosovo.
"The future and the stabilisation of Serbia depends on its cooperation with the Hague
tribunal," Rupel and Steinmeier agreed.
Steinmeier furthermore labelled Slovenia as an EU member which could make a significant
contribution to the stabilisation of the Balkan region.
Rupel accompanied Prime Minister Janez Jansa on an official visit to Germany. Jansa
previously held talks with German Chancellor Angela Merkel.
Slovenia Spent Only 39% of Transition Facility Funds so Far
The majority of the EUR 4.5m has been used for 25 twinning projects in agriculture,
economy, finance, environment, internal market, transport, justice and other capacitybuilding projects
A report of the Government Office for European Affairs (SVEZ) suggests that Slovenia has
contracted only 38.82% of the EUR 11.6m available under the Post-accession Transition
Facility.
The document, which was discussed by the government on Thursday, 16 March, also reveals
that the majority of the EUR 4.5m has been used for 25 twinning projects in agriculture,
economy, finance, environment, internal market, transport, justice and other capacity-building
projects.
The final date for concluding contracts on the remainder of the funds runs out on 31
December 2006, while all planned activities and goals as well as payments under the contracts
must be carried out by 30 November 2007.
Slovenia was awarded the accreditation for the Extended Decentralised Implementation
System (EDIS) in September 2004, enabling the country to draw Phare funds as well as the
Transition and Schengen facilities.
The Transition Facility (the SVEZ acts as the national coordinator) is aimed at developing and
strengthening the administrative capacity of new member states.
Damijan Sets Slovenia as Reform Role Model in the EU
Slovenia is one of the EU members which has shown the most pluck in carrying out the Lisbon
Strategy by drafting the government-sponsored economic and social reforms
Slovenia is one of the EU members which has shown the most pluck in carrying out the
Lisbon Strategy by drafting the government-sponsored economic and social reforms,
Development Minister Joze P. Damijan said in Brussels on Thursday, 16 March.
Indeed, "there are very few EU countries which have approached the matter in such a way,
and the EU appreciates Slovenia's contribution. Slovenia could be a role model regarding its
ambitious reforms project," Damijan added.
"The reforms lead towards the implementation of Lisbon goals, by easing the burden on the
economy and promoting entrepreneurship and technological development," Damijan
explained before meeting the Vice-President of the European Commission Guenter
Verheugen.
Slovenia is one of the most ambitious European states in its pursuit of the Lisbon Strategy,
Damijan said. It wants to become one of the EU's most developed members in the next 10
years, Damijan said prior to the talks with the commissioner responsible for enterprise and
industry.
9
He also does not believe that the EU's development strategy is destined to fail despite
endeavours by states like Slovenia like some claim. "It is too early now to talk about
failure...countries have to focus on several basic goals," he believes.
"Some countries, such as the Nordic and Anglo-Saxon states, have more ambitious
development models, others like Germany, France and the Mediterranean countries are less
ambitious...if the latter focus on knowledge and technological development they also might
succeed in the long term," he pointed out.
Damijan moreover said that the main purpose of the visit is to acquaint Verheugen with
Slovenia's reforms. Other topics, such as privatisation of the NLB bank or the national telco
Telekom Slovenije, will not figure prominently in the talks, he added.
Commissioner Verheugen Pleased with Slovenia's Reform Programme
Guenter Verheugen, the European commissioner for enterprise and industry, has expressed
satisfaction with Slovenia's reform programme after talks with Development Minister Joze P.
Damijan
Guenter Verheugen, the European commissioner for enterprise and industry, has expressed
satisfaction with Slovenia's reform programme after talks with Development Minister Joze P.
Damijan. "I am very pleased with the information I got, the country is on track," he said in
Brussels on Thursday, 16 March.
"Even though we have not been ranking the member states by their success, Slovenia is as
always very high on my personal rankings," said Verheugen, who did not wish to comment on
the individual reform measures.
He therefore refrained from commenting on the proposed flat tax, saying that this was a
decision Slovenia has to take by itself. "The Commission does not have jurisdiction over tax
rates," he added.
However, he advised Slovenia to conduct an in-depth study of what other member states have
done, what their experience is and how they could be implemented in Slovenia. "Yet, every
country is free to choose its tax system."
Verheugen said Damijan also presented the government's privatisation plans, but said it was
not his duty to comment on it. "It is my understanding that Slovenia has an ambitions
privatisation plan and it would be of no use if I either criticised it or gave advice."
Minister Damijan meanwhile explained that he presented to Verheugen all plans associated
with the economic and social reforms, which are aimed at increasing employment,
competitiveness and economic growth.
According to him, Verheugen "praised the ambitious plans and said that the climate regarding
Lisbon objectives is changing, the member states becoming more ambitious."
The pair discussed other topical issues in the light of the upcoming economic summit of the
EU. "I have asked Slovenia to back the Commission's positions, we talked about the services
directive, competition and protectionism, R&D, education issues," Verheugen said.
Touching on education, Damijan said the Slovenian government was making efforts to
deregulate universities to allow the establishment of new higher-education institutions that
would be region-specific with respect to the needs of the local economy.
He said efforts were also being made to improve the accessibility of university studies,
whereby increasing the number of higher-education institutions would improve quality and
make students more employable. "Knowledge is the only factor enabling long-term economic
growth," he said.
Euro Conference: PM Says Euro Has United All in the Country
"The adoption of the euro is a project which has united practically everybody in Slovenia,"
PM Janez Jansa said as he opened a conference on Slovenia's euro adoption
10
"The adoption of the euro is a project which has united practically everybody in Slovenia,"
PM Janez Jansa said as he opened a conference on Slovenia's euro adoption on Friday, 17
March, sitting next to European Finance Commissioner Joaquin Almunia and Finance
Minister Andrej Bajuk.
The conference - "Entering EMU and adopting the euro: Slovenia on its way to introducing
the euro" - came at a time when Slovenia is well on its way to shortly introduce the euro as its
own currency, he stressed.
"I'm convinced that the euro will enable the Slovenian economy to have a more stable
macroeconomic environment, and that the government will use such an environment to more
easily carry out the necessary economic and social reforms," he stressed.
Slovenia would like to surpass the average level of EU development, increase employment
and prosperity as well as accelerate progress, which is why the adoption of the euro is so
important, he said numbering some of the reasons for the move.
Jansa also reminded participants of the conference of Slovenia's successful development over
the past 15 years, and used this opportunity to thank "European friends who have helped us on
the way".
Slovenia has thus proved to be a serious partner: "But of course this would not have happened
without a nation-wide consensus and the support of the social partners," stressed the prime
minister.
Euro Has Benefits but also Responsibilities, Almunia Tells Slovenia
European Commissioner for Economic and Monetary Affairs Joaquin Almunia has said that
Slovenia's work in monetary policy will far from have been completed once the country joins
the eurozone, expectedly at the beginning of 2007
European Commissioner for Economic and Monetary Affairs Joaquin Almunia has said that
Slovenia's work in monetary policy will far from have been completed once the country joins
the eurozone, expectedly at the beginning of 2007.
Eurozone membership brings with it many benefits but also responsibilities related to
sustainable public finance, and Slovenia will have to keep working hard after it adopts the
euro, Almunia told a news conference in Ljubljana on Friday, 17 March
Ensuring the sustainability of its pension system will be one of Slovenia's key priorities in the
future, he repeated what he said earlier in the day at the opening of a conference on Slovenia's
euro adoption in Ljubljana.
Although its short-term public finance outlook may be good, Slovenia's ageing population
necessitates reforms of the pension system that would allow long-term public finance
sustainability, the commissioner said.
He added that the measures related to the pension purse in the reform package drawn up by
the Slovenian government's reform team go in the right direction.
Speaking at the same press conference, held on the margins of a one-day conference on
Slovenia's eurozone entry, Slovenian Finance Minister Andrej Bajuk said Slovenia was aware
of the responsibilities that come with being a member of the eurozone.
According to Bajuk, Slovenia stands to benefit greatly from the euro both politically and
economically and is by no means thinking of shunning the obligations that come with having
the single currency. "The euro will be a major advantage for an economy like Slovenia's,
which is trade-oriented," Bajuk said.
Meanwhile, the two officials agreed Slovenia was well on track to meeting its target of
adopting the euro on 1 January 2007.
"There are no signals coming from the economy suggesting that Slovenia would not continue
to meet the necessary criteria," Bajuk said.
11
Almunia added it was clear that if a final report on Slovenia's readiness for eurozone
membership would be released today, Slovenia would get a positive assessment.
"However, there are still two months to go (16 May) before the report is out...and the
government must keep up its good work in preparing for the changeover until then," he added.
He urged Slovenian authorities to focus on technical preparations of the changeover as well as
getting the public ready for life with the new currency.
Almunia Warns about Long-Term Public Finance Sustainability
The well-known effect of the aging population makes it clear that the Slovenian public finance
system needs reforms to face that challenge, Almunia said in an interview for the STA
European Economic and Monetary Affairs Commissioner Joaquin Almunia has repeated
European Commission's recent assessment that Slovenia will face problems regarding longterm sustainability of the country's public expenditure.
The well-known effect of the aging population makes it clear that the Slovenian public
finance system needs reforms to face that challenge, Almunia said in an interview for the STA
on Friday, 17 March.
In its February assessment, the European Commission stated that the country has to take
concrete measures to reduce public expenditure.
Almunia moreover commented on the sale of the state's stake in the country's largest bank
Nova Ljubljanska banka (NLB) to the Belgian banking and insurance group KBC, by saying
that the EU does not differentiate between private- and state-owned companies.
"All companies, regardless of their owners, must respect the rules of the free market, the
principle of free flow of capital and the rules of competition," he pointed out.
He moreover said that the Commission deals with "companies and markets", when being
asked whether the European Commission prefers private or publicly-owned companies.
Almunia attended the conference "Entering EMU and adopting the euro: Slovenia on its way
to introducing the euro", and met PM Janez Jansa before wrapping-up his visit to the country.
The commissioner also claims that the budgetary situation in the EU and the eurozone is
getting better, caused by the 2005-amended Stability and Growth Pact and a surge of
economic activity in the eurozone.
Economic growth will speed up, regardless of the recent rise of interest rates for the eurozone,
he said, adding that several eurozone members are expecting an even larger than the
anticipated 1.9% growth.
Almunia sees structural problems as the biggest threat to the economy's growth. To increase
our capacity to grow, we must speed up our structural reforms, as the fiscal policy in the
eurozone is no more restrictive as in other places in the world, Almunia claimed.
He cited the United Kingdom, which has managed to outpace the average growth rate in the
eurozone, besides having higher interest rates and a budgetary deficit, similar to that of the
eurozone.
He believes the reason for that lies in the country's more flexible and robust economy, a
consequence of important reforms in the past.
After speaking to the STA, Almunia met representatives of the parliamentary finance and
monetary policy committee, parliamentary economics committee, and the EU affairs
committee.
He said that the Commission has placed individual EU countries into three brackets regarding
their long-term sustainability of public expenditures, with Slovenia falling into the highestrisk category.
He also called for simplifications to be made to Slovenia's tax system. The country must also
continue to strive for a consensus on the necessary economic and social reforms, he told the
MPs.
12
Euro Conference: Stable Prices Will Be Priority of Eurozone
The priority of the eurozone will have to be the stability of prices, the director of the economic
analysis and research sector at the Austrian central bank told the conference on Slovenia's
euro adoption
The priority of the eurozone will have to be the stability of prices, the director of the
economic analysis and research sector at the Austrian central bank told the conference on
Slovenia's euro adoption, which took place in Ljubljana on Friday, 17 March.
Peter Mooslechner stressed that eurozone member countries will have to make an effort to
implement their reforms and consolidate their public finances, as this will contribute to
decreasing inflation pressures.
By ensuring stable prices, the European Central Bank (ECB) has created an environment
which attracts more investments and enhances trade within the eurozone.
In Mooslechner's view, this is a result of ECB's efficient monetary policy, which is reflected
in low inflation, minimising long-term interest rates and removing exchange risks.
He moreover pointed to the reforms of the pension system and labour market as necessary
structural reforms which should enable sustainability of public finances, increase employment
rate and flexibility of wages.
Meanwhile, Maja Bednas of Slovenia's Institute of Macroeconomic Analysis and
Development (IMAD) said that Slovenia still has to face a few challenges before the expected
euro adoption, yet, she believes nothing can endanger the euro changeover anymore.
Servaas Deroose of the European Commission's Economic and Financial Affairs General
Directorate agreed with Bednas in that Slovenia has reached most of its macroeconomic goals
in the past ten years with sustainable development and by meeting Maastricht criteria.
Both Bednas and Deroose stressed the need for changes in the field of fiscal policy, adding
that public spending will have to be reduced with respect to GDP even before the euro is
adopted on 1 January 2007.
Deroose highlighted the expansion of trade as one of the benefits of the eurozone
membership, with the euro adoption also attracting FDI, and improving financial discipline
and economic flexibility.
Euro Conference: Gaspari Labels Euro Switch a Step Forward
Gaspari, speaking at the conference on Slovenian eurozone entry, hosted by the government
and the European Commission, added that in this way Slovenia even improve its current
position
The loss of Slovenia's financial independence that will coincide with the planned 1 January
2007 euro changeover was labelled a step forward by the governor of the country's central
bank Mitja Gaspari on Friday, 17 March.
Gaspari, speaking at the conference on Slovenian eurozone entry, hosted by the government
and the European Commission, added that in this way Slovenia even improve its current
position.
However, the rest of the policies will have to be adjusted in such a way to allow the economy
to continue growing, he added.
Today's top-level conference presents a milestone in Slovenia's 15-year history as an
independent state and proves that the many important decisions taken in the period were the
right ones, he said.
When the state decides to vie for entry into the eurozone, the decision should be taken by
experts and independent institutions. Slovenia's central bank Banka Slovenia has played an
important role in the process, he explained.
13
According to Gaspari, the switch will be a relatively simple affair, free from economic, social
or other consequences.
People accept the euro as an upgrade of the Slovenian tolar and believe the common European
currency will facilitate development, he revealed.
In order to catch up with the current eurozone members, the country's economy will to grow
by 4% to 5% annually.
However, the country cannot achieve such growth without reforms, he said, adding that he
hopes that the measures will be implemented with wide consensus.
Drobnic: Italy to Sign Labour Agreement with Slovenia
A meeting of labour and social affairs ministers from Italy, Slovenia, Hungary and Croatia
yielded an announcement by Italian Labour Minister Roberto Maroni that he is to sign
bilateral agreements with Slovenia and Hungary on free flow of labour
A meeting of labour and social affairs ministers from Italy, Slovenia, Hungary and Croatia on
Friday, 17 March, yielded an announcement by Italian Labour Minister Roberto Maroni that
he is to sign bilateral agreements with Slovenia and Hungary on free flow of labour.
Slovenian Labour Minister Janez Drobnic told STA that he presented Slovenia's position on
tearing down restrictions on employment of workers from new EU members, arguing that
Slovenian workers do not present a threat.
According to Drobnic, Italy pointed out this was a sensitive issue, with Roberto Maroni
nevertheless announcing he would sign a special agreements with Slovenia and Hungary that
would in fact guarantee free flow of labour.
Meanwhile, the ministers attending the meeting of the quadrilateral, a regional initiative
bringing together the four countries mentioned, also stressed the need to create appropriate
conditions for small and medium-sized businesses.
They were also united in the view that the falling birthrate presented a major challenges for
Europe and also that solutions had to be found for the social groups most vulnerable to
unemployment.
14
LEGISLATION
Government Amends Bank of Slovenia Act
The government has adopted amendments to the central bank act, whose implementation is
one of the preconditions for the adoption of the euro alongside the compliance with the
Maastricht convergence criteria
The government has adopted amendments to the central bank act, whose implementation is
one of the preconditions for the adoption of the euro alongside the compliance with the
Maastricht convergence criteria.
The main purpose of the amendments is harmonisation with the provision of the Treaty of the
European Communities, and the statutes of the European System of Central Banks and the
European Central Bank, Finance Ministry State Secretary Ziga Lavric explained on Thursday,
16 March.
Based on the 2 Jansa and Almunia on Euro Changeover and Reforms
Jansa expressed appreciation for the readiness of the European Commission to grant
Slovenia an early report on its readiness to join the eurozone
PM Janez Jansa met European Commissioner for Economic and Monetary Affairs Joaquin
Almunia on Friday, 17 March, with talks focusing on Slovenia's euro adoption and reform
process but also touched on EU's energy policy and the Balkans.
Jansa expressed appreciation for the readiness of the European Commission to grant Slovenia
an early report on its readiness to join the eurozone, a press release by the PM's office says.
He also acquainted the commissioner with preparations for economic and social reforms in
the country, especially with regard to the gradual privatisation of state-owned companies.
Almunia praised Slovenia's success in preparing for the euro changeover, its current economic
situation and history of development.
The pair was united in the view that solving the issue of energy supply in the EU presented a
complex challenge.
They also turned to the Western Balkans, establishing that continuing to support stability and
development in the region was of vital importance, with the EU being a potential key player
in the process.
Euro Conference: Potocnik Says Slovenia on Track for Euro Switch
European Science and Research Commissioner Janez Potocnik said that Slovenia is on track
for the planned 2007 euro changeover, but should pay attention to the long-term
sustainability of public finances
European Science and Research Commissioner Janez Potocnik said on Friday, 17 March that
Slovenia is on track for the planned 2007 euro changeover, but should pay attention to the
long-term sustainability of public finances.
"Today's conference has shown the large importance of practical preparations, including a
well-planned and integral public awareness campaign," Potocnik explained.
Slovenia's commissioner, speaking at the top-level conference on the euro changeover, hosted
by the government and the European Commission, added that the country must increase the
pace of the preparations.
The "big-bang" changeover is extremely demanding and the state must prevent price hikes
and at the same time adopt measures to strengthen the consumer confidence, Potocnik pointed
out.
15
"The Commission will encourage Slovenia to draft an effective euro changeover strategy,"
Potocnik added.
004 EU convergence report on Slovenia, the amendments abolish certain unclarities regarding
the central bank's independence to legally integrate it into the European System of Central
Banks.
In addition, it clearly defines the relationship between the central bank's primary objective
(price stability) and the secondary objectives of support for economic policy and stewardship
of the stability of the financial system.
The amendments take into account the demand for greater financial independence in the
management of foreign exchange reserves, and delineate the powers of the central bank and
the European System of Central Banks after the euro changeover.
According to the amendments, the spelling euro will be required in the nominative in all
national legal acts instead of the Slovenian version "evro", a position that Lavric said the ECB
reiterated on Monday, 13 March.
If we ignored this position, we would not be able to introduce either the euro or the evro, but
keep the tolar, Lavric explained.
This is in line with a compromise that Slovenia reached with the EU in late 2004, according to
which the name of single European currency is spelt as "euro" but it is still subject to
Slovenian declination rules.
According to Lavric, the amendments have to be passed this month, so the parliament will be
asked to pass them in emergency procedure.
16
STATISTICS/FORECASTS
Ljubljana Had 50% More Tourists in 2005 than Three Years Ago
The number of tourists visiting Ljubljana last year was 313,493
The number of tourists visiting Ljubljana last year was 313,493, which is an increase of 50%
over the last three years. The number of overnight stays was 565,649 an increase of 38% over
the same period.
"No European capital can boast such results," said Mayor of Ljubljana Danica Simsic at a
press conference in the capital on Tuesday, 14 March.
Simsic added that Ljubljana was becoming a prestigious tourist destination. This is because
Ljubljana is a tidy, charming and welcoming city that tourist numbers are on the rise, she
stressed.
She said that the amount of cultural and other events on offer to tourists in Ljubljana had risen
over the past three years and that new low-cost carrier connections had also helped the rise in
tourist numbers.
Over 1,550 groups of tourists went on a guided tour of the city last year, up 20% on the year
before. This means 47,429 tourists saw the capital in this way. The guided tour is available in
a total of 17 different foreign languages, according to the mayor.
"Ljubljana has taken pains over its image for over a decade now," explained Simsic. The city's
budget allocated over SIT 4bn (EUR 20m) for financing the renovation of the facades of 200
prominent buildings in Ljubljana.
Tourists spending on average less than two days in Ljubljana spent an average of EUR 128
per day. The total tourist expenditure in Ljubljana last year amounted to SIT 16bn (EUR
70m), Simsic said.
Although the city budget gained hardly anything from this, the city annually invested SIT
28m (EUR 120,000) for the development of tourism.
The director of the Ljubljana Institute for Tourism Barbara Vajda said: "We want to make
Ljubljana a city of art and culture as well as business and a city for discovering Slovenia".
Unemployment Rate at 10.5% in January
As many as 95,204 people were registered as unemployed, 2.8% more than the previous
month and 2% more than in January 2005
Registered unemployment rate in Slovenia stood at 10.5% in January, up 0.3 percentage
points over December, according to the latest data released by the Statistical Office.
As many as 95,204 people were registered as unemployed, 2.8% more than the previous
month and 2% more than in January 2005.
The data also shows that the unemployment rate among women was 12.4%, while it stood at
8.9% among men.
Slovenia's labour force numbered 907,690 in January, with 812,486 among these registered as
employed, which is a drop of 0.1% over December and an increase of 0.9% year-on-year.
Out of 812,486 people employed, 82,844 persons were self-employed in January, which is 1%
more than in December and 2.2% more than in January 2005.
The number of registered farmers increased by 2.8% over the year before, to 32,210.
Every Ninth Slovenian Eats Less Poultry Due to Bird Flu
Over a third of Slovenians are worried about the possible outbreak of a bird flu pandemic in
the country
17
The bird flu outbreak means every ninth inhabitant of Slovenia is eating less poultry meat,
according to a survey conducted by the polling firm CATI between 9 and 13 March.
Over a third of Slovenians are worried about the possible outbreak of a bird flu pandemic in
the country and 29% of the population believes the country is not well enough prepared for
such an outbreak.
The polling firm PRIZMA Istrazivanja carried out an identical survey in Croatia during the
same period and similarly Synovate covered 12 countries in the world in February.
A comparison of results shows that poultry meat consumption has dropped most in Turkey,
Indonesia, Taiwan and Hong Kong, which is understandable as these countries had more
cases of bird flu.
Croatia, Denmark and Sweden are countries where the consumption of poultry meat has
dropped the least (between 5% and 8%). They are followed by France, Norway and Slovenia
(10% to 12%), while Portuguese and Serbian poultry eaters curbed their habit to the greatest
extent (18%).
Scandinavians worry the least about a possible pandemic, while people in Indonesia, Hong
Kong and Turkey are the most concerned. Slovenians are less worried compared with other
nations as more than half the population (63%) is not anxious about the possible outbreak of a
pandemic, CATI reported.
The populations of Turkey, Portugal and the US have the least confidence in the readiness of
their own country in the face of a pandemic. 48% of Slovenians believe the country is well
prepared, which means that together with the Croats, Danes and Serbs, Slovenians have most
confidence in the readiness of their country to face a pandemic.
18
FINANCE
Social Partners Scrutinise Tax Reform Proposal
The government presented individual elements of the tax reform proposal and anticipated
effects of the measures as tripartite talks between social partners on a new social agreement
continued
The government presented individual elements of the tax reform proposal and anticipated
effects of the measures as tripartite talks between social partners on a new social agreement
continued on Monday, 13 March. However, the figures have not been made public.
The social partners went through three of the seven items in the government programme:
abolition of payroll tax, different options for income tax and the adjustment of gross wages at
the transition to the new system.
According to Janez Sustersic, the head of the government Institute for Macroeconomic
Analysis and Development (IMAD), the social partners had a "candid discussion about all
proposals made so far."
This includes the income tax proposal of economist Marko Kranjec, the proposal of Merkur
chief executive Bine Kordez and the trade union's proposal for more moderately progressive
income tax brackets.
According to Dusan Rebolj, the head of the Pergam trade union association, the talks were
useful, as it transpired that regardless of the final solution, the workers' financial status will
depend on the wage policy.
Therefore any serious changes to the tax system are impossible without an appropriate wage
policy, he said.
Meanwhile, the president of the Association of Free Trade Unions of Slovenia (ZSSS), Dusan
Semolic, said the unions insist on two VAT rates and progressive income tax rates.
The employees welcomed the presentation, but said they would comment on the proposals
when the effects of all changes are clear, in particular the effects on individual industries, said
Joze Smole, adviser to the president of the Chamber of Commerce and Industry of Slovenia
(CCIS).
Petrol Prices Down, Diesel Up
The price changes are in line with the petrol pricing model which the government introduced
in October 2005
While petrol prices went down on Tuesday, 14 March, with excise duties remaining
unchanged, the price of diesel rose.
Regular is down SIT 2.7 (EUR 0.01) to SIT 225.60 (EUR 0.94) per litre, premium costs SIT
227.10 (EUR 0.95), down SIT 3.90 (EUR 0.02), and diesel is up 1.80 SIT (EUR 0.01) to SIT
226.50 (EUR 0.95).
Also down is the price of heating oil, which costs SIT 144.50 (EUR 0.60) per litre, oil traders
Petrol and OMV Slovenija have said.
The price changes are in line with the petrol pricing model which the government introduced
in October 2005.
Prices are calculated over a period of 28 days, whereby the five highest and lowest quotations
over the four-week period are excluded.
The government introduced the model (which expires on 8 July 2006) in order to cushion the
impact of volatile global oil prices on domestic retail prices.
19
Bajuk Welcomes Proposed Euro Timetable
Finance Minister Andrej Bajuk has hailed the European Commission's timetable for
Slovenia's bid to join the eurozone on 1 January 2007
Finance Minister Andrej Bajuk has hailed the European Commission's timetable for
Slovenia's bid to join the eurozone on 1 January 2007.
Speaking on the sidelines of a meeting of EU finance ministers in Brussels on Tuesday, 14
March, Bajuk said that the schedule, as outlined by the Commission, would allow Slovenia to
adopt the euro as planned.
"The government and central bank asked the Commission and European Central Bank (ECB)
for an early convergence report...so as to allow Slovenia to take the necessary measures on
time," Bajuk said.
The Commission and ECB are expected to publish their euro convergence reports for
Slovenia in May, while the EU summit is expected to vote on admitting Slovenia to the
eurozone on 15 and 16 June.
Moreover, EU finance ministers are expected to take a final vote on the legal basis for
Slovenia's membership on 11 July.
All this would give the country enough time to carry out all the preparations for eurozone
entry on 1 January 2007, Bajuk said.
Moreover, Bajuk was confident Slovenia would continue to meet eurozone membership
criteria. "Slovenia is fulfilling the criteria and there are no signals that there should be reason
for concern," he said.
Toplak Appointed Head of State-Run Pension Fund Management
The assembly of the state-run Pension Fund Management (KAD) appointed its acting general
manager Tomaz Toplak KAD's head for a five-year term
The assembly of the state-run Pension Fund Management (KAD) appointed its acting general
manager Tomaz Toplak KAD's head for a five-year term, the assembly's chairman Gregor
Gomiscek told the press on Tuesday, 14 March.
The meeting also confirmed temporary board member Mateja Bozic as a full-time member,
alongside Helena Bester who was already a member of KAD's three-strong board, Gomiscek
said after the session.
He added that Toplak and Bozic did well in the past year and were also the only two to submit
am applications for the posts.
The newly-appointed board also presented its strategy for the state-run fund. According to
Gomiscek, the plan will transform the company into a financial group with the aim to enable
the complementarity of obligatory retirement and disability insurance with top-up retirement
insurance.
KAD's assembly will discuss the company's strategy after an expert group drafts a schedule
for a transparent and gradual transformation of state-run funds KAD and SOD's from active
into portfolio investors.
KAD plans to sell its stakes in 25 to 30 companies this year, about the same number as last
year, with maximum benefits for KAD and the owner being the main sale criteria, Toplak
revealed.
By transforming itself into a financial group, KAD will moreover be able to contribute
additional money to the Pension and Disability Insurance Institute (ZPIZ), pending future
talks. KAD has to pay out SIT 9.3bn (EUR 38.81m) to the ZPIZ in 2006. KAD currently
manages assets worth SIT 440bn (EUR 1.83bn).
Toplak was KAD's acting manager since late March 2005. He and Bozic replaced the head of
KAD Borut Jamnik and board member Tomaz Kuntaric. According to KAD's statute, the fund
can be run by an acting board for a maximum of one year.
20
State to Dish Out EUR 5.43m for Employment of Researchers
The director of the enterprise and competition directorate at the Economics Ministry, Andrej
Kitanovski, told the press that the state will co-fund the researchers' salaries to the tune of
75% over a two-year period
The Economics Ministry has published a call for applications to promote the employment of
researchers who are currently employed at institutes and universities, in companies. Over SIT
1.3bn (EUR 5.43m) has been allocated for such programmes in the 2006-2008 period.
The director of the enterprise and competition directorate at the Economics Ministry, Andrej
Kitanovski, told the press on Wednesday, 15 March that the state will co-fund the researchers'
salaries to the tune of 75% over a two-year period.
According to Kitanovski, the ministry wants to see 50 scientists employed at companies in
2006, with the number increasing to 100 in the following years.
"The researchers will not be employed to do photocopying...They will have to work in the
field of their expertise and transfer their knowledge to the economy," he pointed out.
Kitanovski also presented some of the ministry's other activities in the field, such as a recent
SIT 5bn (EUR 20.86m) tender for subsidies for new technologies, machinery and equipment
of SMEs, published by the Slovene Enterprise Fund.
The ministry is moreover drafting a bill on venture capital funds. Kitanovski hopes that the
first-ever such fund in the country will be established in 2006.
Abanka Takes out EUR 180m Loan
Abanka Vipa, Slovenia's third-largest bank, signed a contract on a EUR 180m syndicated
loan with a consortium of nine foreign banks
Abanka Vipa, Slovenia's third-largest bank, signed a contract on a EUR 180m syndicated loan
with a consortium of nine foreign banks, Abanka said on Wednesday, 15 March.
According to the bank, the interest rate for the credit line, due in five years, is the most
favourable up to now, standing at EURIBOR plus 22 basis points.
The bank is convinced that the largest syndicated loan the bank has ever taken out on the
international capital market shows a high level of trust in Abanka Vipa on foreign markets.
The funds are to be used for financing the bank's general needs, mainly for financing its
consumer operations and repaying less favourable loans, the bank added.
PM Claims Views of KBC and Government Converging
Slovenian PM Janez Jansa has said that the views of the Belgian banking and insurance
group KBC and the government on the privatisation of Slovenia's largest bank, NLB, are
gradually converging
Slovenian PM Janez Jansa has said that the views of the Belgian banking and insurance group
KBC and the government on the privatisation of Slovenia's largest bank, NLB, are gradually
converging.
After the talks are finished, the privatisation model for Nova Ljubljanska banka (NLB),
drafted by a special task force, would be amended and adopted by the government, Jansa
explained on Wednesday, 15 March, but offered no specific date.
"The state and the KBC hold an almost identical share in the NLB. Therefore we want to align
our moves with those of our partner...The talks are still going on, but I can optimistically say
that we are beginning to agree," Jansa revealed at the end of his one-day official visit to
Germany.
KBC bought a 34% stake in NLB in 2002. Together with state-run funds, the state holds a
45% stake, while the European Bank for Reconstruction and Development holds 5%.
The talks between Slovenia and KBC did not figure in Jansa's visit. He and his host,
Germany's Chancellor Angela Merkel, however did discuss economic cooperation between
21
the two countries. "Our economic cooperation is already very strong, but there are other
options," Jansa said.
"No concept exists yet for the privatisation of (Slovenia's national telco) Telekom Slovenije,
but the government plans to adopt a plan soon. Foreign partners will have their chance then,
but it is currently unclear how big these chances will be," Jansa explained.
He moreover hinted that Germany, which has decided to keep its restriction on free labour
movements from EU's ten newcomers, might opt for a less restrictive solution for Slovenia.
"Foreign ministers discussed a proposal to lift these restrictions for eurozone countries.
Slovenia will change over to the euro in 2007," the PM said.
Gorenjska banka Increases Stake in Merkur
Gorenjska banka, a small regional bank, has bought a 2.9% stake in hardware retailer
Merkur to up its stake in the company to 6. 5%
Gorenjska banka, a small regional bank, has bought a 2.9% stake in hardware retailer Merkur
to up its stake in the company to 6.5%.
The bank bought 37,500 shares on Friday, 17 March.
The exact details of the acquisition, including the seller and the price, are not known. The
stake would be worth around SIT 1.25bn (EUR 5.1m) on the stock market.
The purchase of Merkur shares by Gorenjska banka comes only days after the Sava holding, a
major owner of the bank, bought nearly 20% of Merkur.
Sava and Gorenjska banka now control over a quarter of Merkur, while their share together
with the NFD 1 investment fund, supposedly an ally of the two, is around 40%.
Meanwhile, the stake held by the state-run SOD and KAD funds dropped below 25%
following the capital injection, with which Sava acquired 7% in Merkur on Tuesday, 14
March.
The two funds had in December blocked Merkur management's proposal for a SIT 10.3bn
(EUR 43m) capital injection.
In spite of the setback, the management of Slovenia's largest hardware store chain said at the
time it would not backtrack on plans to expand its sales network in Slovenia and the former
Yugoslavia.
Ljubljana Stock Exchange
The SBI 20 benchmark index fell 16.18 points (0.36%) to 4,498.79
The SBI 20 benchmark index fell 16.18 points (0.36%) to 4,498.79 last week as the big names
saw gains but the majority of the other blue chips lost ground on a lack of new directional
leads. Not even a new record by pharmaceutical company Krka could inject positive energy
on the official market.
The action was moderate, with SIT 3.4bn (EUR 14.19m) worth of stocks changing hands in
regular deals. In addition, there was a whopping SIT 12.3bn (EUR 51.33m) in turnover
generated in block deals.
Racking up block deals worth SIT 8bn (EUR 33.38m) owing to a purchase of a 20% stake by
the Sava holding, hardware retailer Merkur was the busiest issue last week. Despite the
ownership changes, the share remained virtually unchanged at SIT 35,500 (EUR 148.14).
Fuel retailer Petrol added 0.74% to SIT 69,997 (EUR 292.09) in a week that saw SIT 2.77bn
(EUR 11.56m) worth of its shares change hands, including SIT 2.43bn (EUR 10.14m) in
block trading.
Krka was also among the busy items last week, seeing turnover of SIT 1.34bn (EUR 5.59m).
The share picked up 0.62% to finish at an all-time high of 119,990 (EUR 500.71).
22
Meanwhile, shares of the Istrabenz holding gained 0.8% to SIT 7,472 (EUR 31.18) as the
company released a bid to become an outright owner of food company Droga Kolinska (it
currently holds 55.63%).
The action was relatively slow on the free market, where the PIX investment fund index fell
47.99 points (1.25%) to 3,802.75.
Meanwhile, the BIO bond index dropped 0.22 points (0.18%) to 120.77.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.59 (unchanged)
U.S. dollar (USD) - SIT 196.74 (-4.25)
Swiss franc (CHF) - SIT 152.46 (-0.47)
British pound (GBP) - SIT 345.34 (-3.72)
23
BRANCH INFORMATION
Laptops Close Gap to Desktops in 2005
Even though desktop PCs still account for the bulk of the Slovenian computer market (64.6%),
their sales dropped by 11.3 percentage points in 2005
Even though desktop PCs still account for the bulk of the Slovenian computer market
(64.6%), their sales dropped by 11.3 percentage points in 2005. In comparison, the share of
laptops increased by 62.3% to 32%, data from the analytical firm IDC has shown.
According to IDC, a total of 159,173 personal computers were purchased in Slovenia in 2005,
a 7.1% increase over 2004. The sales grew in all but the office desktop segment, with 21.6%
more x86 servers sold in 2005, bringing their total market share to 3.4%.
HP retained its position as the leading computer brand in Slovenia, followed by another US
company, Dell, and China's Lenovo. Comtron took the first place among the domestic
retailers, as well as 2nd place overall with a 12.2% market share. It was followed by Avtera
and Acord-92.
The head of IDC Slovenija's Bostjan Klajnscak believes that "the desktop segment has
reached its saturation point in Slovenia, so the fight for customers has moved to the laptop
sector, where global leaders enjoy the benefits of the economy of scale and excellent aftersale services. The trends of 2005 are likely to continue in 2006".
Meanwhile the sales of printers fell by 0.1% to 92,046 in 2005, however their combined value
increased by 3% in comparison with 2004.
In 2005 black-and-white laser printers outsold their inkjet counterparts for the first time in
Slovenia, grabbing 46.8% of the market, in comparison with 45.7% for inkjets. The top seller
of printers in 2005 was HP, followed by Lexmark and Canon.
Innovators Complain State Doesn't Promote Innovation
An survey carried out by the Union of Active Slovenian Innovators (ASI) has shown that the
greatest difficulties faced by Slovenian innovators include an inappropriate attitude of the
government, politics and its institutions regarding innovation
A survey carried out by the Union of Active Slovenian Innovators (ASI) has shown that the
greatest difficulties faced by Slovenian innovators include an inappropriate attitude of the
government, politics and its institutions regarding innovation.
The ASI, which functions in the framework of the union for the promotion of small
businesses, also complains of the ineffective functioning of state agencies in this field, lack of
state financial assistance and the inexpert programmes of state officials.
ASI president Marijan Stele told a press conference on Wednesday, 15 March that the survey
which focused on 300 Slovenian innovators showed that more and more of them were seeking
financial help abroad and taking their inventions with them.
There are only four forms of state aid available to innovators in Slovenia, while Germany
boasts 24, Austria 18 and Japan as many as 36. The EU average is 12 and even Croatia has
10.
Slovenian innovators also wish to achieve their aims via the EU, but are limited as the EU
does not finance innovations on a national level, but it is member states which are responsible
for this.
Nevertheless Slovenian innovators are very active when it comes to bringing together
innovators from across the EU. They are setting up a pilot project called the innovation
exchange. The project is meant for innovators from the ten new EU members, and should be
financed mainly by the EU.
24
Joachim Bader, president of the European Union of Innovators (AEI), said that Slovenia is
economically the most successful of the ten new EU member states. But for this trend to
continue there will be a need for innovations, which however require a suitable climate.
Bader said problems faced by European innovators also included the high cost of registering
patents, which only large companies can afford. Besides a uniform European patent should
replace the national one.
Working Group Stresses Need for User-Friendly Public Transport
Peter Verlic of the Transport Ministry told a working group which is drafting a public
transport bill that it is necessary to set up a system which would include a uniform ticketing
system and reasonable prices for all forms of public transport
Peter Verlic of the Transport Ministry told on Wednesday, 15 March a working group which
is drafting a public transport bill that it is necessary to set up a system which would include a
uniform ticketing system and reasonable prices for all forms of public transport.
"The only real competition to public transport are cars, which however are becoming
increasingly expensive and harmful to the environment, therefore, an alternative uniform
system of public transport should be established," Verlic added.
The new system should include trains and buses as well as other forms of public transport,
Verlic also told the working group, which includes representatives of numerous ministries,
government offices and transport organisations.
The participants shared a view that timetables of public transport should first be adjusted in
order to set up a coordinated system and attract the public, and that a uniform ticketing should
be introduced to ensure user-friendly services.
Public transport is already environment-friendly and also safe for the public, however, the
main problem is still the lack of coordination between the timetables for trains and buses,
which will according to Verlic be coordinated by the ministry's directorate for transport
policy.
Verlic called on the working group to draft solutions in order to set up the new system as soon
as possible, and added that the issue will also be discussed with the local communities, which
are an important partner in ensuring quality public transport.
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COMPANIES
Major Trimo Owners Say Trimo Takeover Bid Successful
The bidders - the bank Probanka, its leasing arm Probanka Leasing, investment firms
Medaljon and Zlata moneta II, and Trimo Investments - announced in a press release that
they have acquired 425,262 shares from 347 shareholders
A group of five major owners of Trimo, the Trebnje-based maker of pre-fabricated
construction components, have succeeded in their bid to gain an additional 39% of shares of
the company.
The bidders - the bank Probanka, its leasing arm Probanka Leasing, investment firms
Medaljon and Zlata moneta II, and Trimo Investments - announced in a press release on
Monday, 13 March that they have acquired 425,262 shares from 347 shareholders.
Publishing their takeover bid at the end of January, the bidders managed to acquire the needed
shares only after raising the bidding price from SIT 7,300 (EUR 30.47) to SIT 8,020 (EUR
33.47) on 17 February.
The bidders together owned 42.2% of Trimo prior to the takeover bid, with the goal of
acquiring at least 51% of the company.
The bidders had announced their takeover intent in late November 2005. Yet, they backed
down in December, saying that it was impossible to harmonise their interests and carry out the
necessary procedures at the Securities Clearing Corporation (KDD).
In January, the bidders altered the allocation of shares they are acquiring, and consequently
the division of the money required to complete the acquisition.
Probanka will thus own 39.8% of the shares, Medaljon 32%, and Zlata moneta II 28%, with
Trimo Investment and Probanka Leasing each holding 0.1% of Trimo.
In 2005, Trimo Trebnje posted SIT 23.1bn (EUR 96.41m) in revenues. Its revenues increased
by 3.3% in the first six months of 2005 to SIT 12.2bn (EUR 50.92m).
In this period, the company posted the biggest rise in sales on markets of former Yugoslavia,
Russia and the Baltics. Nevertheless, Western Europe remains Trimo's key market, where it
sells 31% of all of its products.
State Enters Spa Renovation Project
By signing the agreement, the state has delivered on its last-year's promise to financially
support the lessee, the Medical and Rehabilitation Centre (MRC), a consortium bringing
together several investor companies, by making the spa infrastructure its material investment
in the project
A shareholder agreement for the dilapidated spa Rimske Toplice was signed by Local
Government and Regional Policy Minister Ivan Zagar and the spa's lessee representatives on
Monday, 13 March. The contract marks the first concrete step towards reviving the spa after
15 years.
By signing the agreement, the state has delivered on its last-year's promise to financially
support the lessee, the Medical and Rehabilitation Centre (MRC), a consortium bringing
together several investor companies, by making the spa infrastructure its material investment
in the project.
While Zagar said the projects was extremely important from the point of view of regional
development, Maksimiljan Brecko of Unior turizem Zrece, one of the partners in the project,
marked the renovation as an opportunity for the entire country.
According to Brecko, the renovation works could start as early as 10 April this year, with the
main phase scheduled completion by 2008.
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The state's participation will supposedly give it complete insight into the project and is also
expected to contribute to the confidence of other stakeholders and the local community, which
is expected to gain 200 new jobs.
The total cost of the investments has been estimated at slightly over SIT 4bn (EUR 16.7m).
The shareholder agreement enables the state to sell its stake or benefit from the expected
profit.
Besides minister Zagar and tool manufacturer Unior, the signatories include representatives of
leading Slovenian banks Nova Ljubljanska banka (NLB) and Nova Kreditna banka Maribor
(NKBM), mobile telephony provider Mobitel, Pension Fund Management (KAD) and
insurance company Zavarovalnica Triglav.
Ministry, DARS Set Up Central Road Information Service Center
The information are available on the http://www.promet.si web site as well as through the
fixed-line number 01 518 8 518
The national Directorate for Roads at the Transport Ministry and the Slovenian Motorway
Company (DARS) set up a joint information centre which will offer information on road and
traffic conditions on the entire road network.
The information are available on the http://www.promet.si web site as well as through the
fixed-line number 01 518 8 518, State Secretary at the Transport Ministry Peter Verlic told
the press.
According to Verlic, the current dual system, whereby the directorate and DARS were
publishing separate information for the roads under their respective management, has become
too expensive.
The website, operational from Wednesday, 15 March, contains a map of the road network
together with the delays and road works. It also lists the information on restrictions for lorries,
extraordinary detours and a route planner for Slovenia.
The directorate and the DARS will also coordinate their activities, thereby preventing
simultaneous road works from being carried out on the motorway and the adjoining regional
or main road.
Dremelj Gets the Top Job at Telekom Slovenije
Bojan Dremelj, a member of the Telekom Slovenije board and former CEO of mobile provider
Simobil, has been elected chairman of Slovenia's fixed-line telco after incumbent Libor
Voncina resigned
Bojan Dremelj, a member of the Telekom Slovenije board and former CEO of mobile
provider Simobil, has been elected chairman of Slovenia's fixed-line telco after incumbent
Libor Voncina resigned on Monday, 13 March, quoting personal reasons.
Dremelj was appointed at a session of the supervisory board, when the chief supervisor, Miro
Rozman, also tendered his resignation. He has been replaced by his deputy Ziga Turk,
Telekom Slovenije said in a press release.
According to the press release, Voncina has steered the company towards great success over
the past two years, so he will be nominated for a supervisory board post at the company's next
AGM.
Petrol Gets Two New Supervisors
The shareholders of oil company Petrol appointed Bojan Srot and Ales Marincek to the
supervisory board
The shareholders of oil company Petrol on Tuesday, 14 March appointed Bojan Srot and Ales
Marincek to the supervisory board, to fill the gap after the resignation last year of Mico
Mrkaic and Igor Irgolic.
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Bojan Srot, the mayor of Celje, and Marincek, who has been on the Petrol management board
since December, have been appointed for a three-year term.
The annual general meeting moreover changed the company's statute to allow the
management board to have between three and six members and one or more vice-presidents.
The shareholders also gave the company the go-ahead to use International Accounting
Standards only for all financial reporting as of this year.
Profitable Telekom to Cut Costs, Buy Macedonian ISP
The newly-appointed chairman of the telco group Telekom Slovenije has announced a
reorganisation of the group and a continuation of cost-cutting, as well as the acquisition of
Macedonian Internet service provider OnNet, the company's first venture abroad
The newly-appointed chairman of the telco group Telekom Slovenije has announced a
reorganisation of the group and a continuation of cost-cutting, as well as the acquisition of
Macedonian Internet service provider OnNet, the company's first venture abroad.
Bojan Dremelj, who was appointed chief executive on Monday, 13 March, told the press that
the group would be reorganised in line with a proposal drafted by a broad group of Telekom
executives.
"The purpose of the reorganisation is to improve efficiency and increase the focus on the
users," said Dremelj, adding that there would be no major layoffs, as the company has been
reducing staff through natural wastage through the years and will continue this policy.
Dremelj, who succeeds Libor Voncina, also revealed that the company got the go-ahead by
the supervisory board to acquire a 76% stake in the second largest ISP in Macedonia, OnNet.
"This first expansion outside Slovenia signals the onset of a new period for Telekom," he said.
According to Voncina, the Telekom group (which includes the fixed line operator, mobile
operator Mobitel and ISP Siol) posted a net profit of SIT 23.2bn (EUR 96.8m) for 2005, up
55% over the year before, on sales of SIT 170.3bn (EUR 710.8m), an increase of 7% over
2004.
The fixed-line business posted sales of SIT 94bn (EUR 392.3m), up 6% year-on-year, with
net profit soaring by 47% to SIT 12.5bn (EUR 52.2m), according to unaudited results.
Voncina, who was at the helm of Telekom for over two years, said the company has been
working hard to change the corporate culture and focus on the customer, and geared up for
market liberalisation.
"Over the past two years we have fully opened up our network, made our relations transparent
and won over even those operators which had built their business without strong cooperation
with Telekom," Voncina said about his achievements.
He said Telekom realised that liberalisation means it would lose part of its market share in
Slovenia, yet the company has markets where it can grow to ease the burden of liberalisation.
The telco also has a new chairman of the supervisory board, as Miro Rozman resigned due to
what he says was an overwhelming workload at power-meter maker Iskraemeco. His deputy
Ziga Turk was named to the post.
Turk explained that the supervisory and management boards have to work hand in hand. But
this does not mean that they have to share the same opinions, only that they have to seek a
consensus, face the arguments and "let the best ones win."
The new chief supervisor also praised Voncina, saying he was chairman in the crucial period
for the company. "He has brought in some of the culture that is seen in leading global IT
multinationals," he said.
Voncina, who resigned due to personal reasons, will therefore be offered a post on the
supervisory board.
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Simobil Increases Revenues by 14.8% in 2005
Slovenia's second largest mobile operator, Simobil, owned by Austria's operator Mobilkom,
generated EUR 100.8m in revenues in 2005
Slovenia's second largest mobile operator, Simobil, owned by Austria's operator Mobilkom,
generated EUR 100.8m in revenues in 2005, a 14.8% increase year-on-year.
Simobil's operating profit in 2005 totalled EUR 3.5m, EUR 100,000 more than in 2004.
Its revenues in Q4 of 2005 meanwhile increased by 23.3% to EUR 27.6m in comparison with
the same period in 2004, while its operating losses in the same period increased by EUR
800,000 to EUR 3.5m.
The increase in income was caused by dearer telephone calls and larger revenues generated by
the Vodafone Live services.
Meanwhile, the number of the operator's users decreased by one percent to 359,600 in 2005.
The drop was caused by changes to the rules on counting the number of users by the
Slovenian telecommunications regulator APEK in July 2005.
In Q4, however, 10,600 new users signed up to Simobil, with the number of its subscribers
increasing by 13.5% to 176,700 in 2005.
The company's market share on the Slovenian mobile communications market reached 22.7%
at the end of 2005.
Simobil's results were published as part of results of Austrian telco Telekom Austria,
Mobilkom's owner on Tuesday, 14 March.
Sava Holding Acquires 20% in Hardware Retailer Merkur
Sava's acquisition entailed a capital injection in Merkur, which gave the Kranj-based
company around 7.5% of Merkur, and the acquisition of a 12.1% stake on the market
The Sava holding company has acquired around 20% in hardware retailer Merkur as part of
plans to restructure its retail division and become a key owner of one of SE Europe's biggest
hardware chains.
Sava's acquisition entailed a capital injection in Merkur, which gave the Kranj-based company
around 7.5% of Merkur, and the acquisition of a 12.1% stake on the market.
The capital injection was carried out at SIT 36,200 (EUR 151.09) per share and was worth
SIT 3.5bn (EUR 14.61m).
The capital injection, confirmed by both companies a month ago, consisted of Sava offloading
its retail arm, Sava Trade, to Merkur in return for 98,000 newly-issued Merkur shares and
around SIT 3.5bn (EUR 14.61m) in cash.
Sava's supervisory board approved on Tuesday, 14 March the company's acquisition of an
additional 126,334 shares on the market.
In a press release, Sava said the deal would allow the company to transform from an owner of
a small retail network to a part owner of a much bigger chain that has better chances for
successful development and profitability.
Sava's trade division consists of the Astrachemo chain of hardware stores. Merkur had said
the acquisition would raise its annual revenues by SIT 13bn (EUR 54.26m) or 8%.
Footwear Maker Alpina Posts Lower Sales, Increases Profit
Footwear maker Alpina generated a profit of SIT 211m (EUR 880,634) in 2005
Footwear maker Alpina generated a profit of SIT 211m (EUR 880,634) in 2005, up 2.4% over
the year before. The company's net sales revenues, however, dropped by 7% over 2004 to SIT
11bn (EUR 45.9m), Alpina has said.
The fall in revenues is a result of lower sales of sports footwear in Scandinavian countries due
to unfavourable winter weather there, and of fashion footwear in the US due to cutthroat
competition from Chinese companies.
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Meanwhile, the Ziri-based company increased its sales on the domestic market by 3.2% yearon-year. The sales also went up on all retail markets where Alpina manages a network of 116
shops.
Despite lower revenues, the company is pleased with last year's results, which according to
Alpina are in line with their strategy of expanding its retail network, modernising their stores,
improving their services and promoting the trademark.
The company is furthermore optimistic about this year, as the results in the first three months
signal an increase in sales revenues, especially in winter sports footwear which also includes a
new model of cross-country boots.
At the moment, the state-run Restitution Fund (SOD) and fellow Pension Fund Management
(KAD), the European Bank for Reconstruction and Development (EBRD) and asset
management company Maksima Invest are selling a 56.56% stake in Alpina.
According to the bid, SOD is putting up for sale 29,545 shares, KAD 22,718 shares, the
EBRD 32,000 shares and Maksima Invest 32,955 shares of the company.
Intereuropa Continues Push South
Logistics group Intereuropa is continuing its push south, announcing that it would launch a
subsidiary in Montenegro next month
Logistics group Intereuropa is continuing its push south, announcing that it would launch a
subsidiary in Montenegro next month.
The move is designed to bolster the company's operations in SE Europe, a key component of
its strategy, Intereuropa said in a press release on Thursday, 16 March.
The subsidiary of the Koper-based company will be based in the Montenegrin capital of
Podgorica, while branch offices would be set up at the port of Bar and the border crossing
with Croatia at Hercegnovi.
The company intends to offer all-around logistics services on the Montenegrin market,
including road, rail, air and maritime freight services, as well as forwarding and customs
services.
The announcement comes only days after the company said it would be launching a
subsidiary in the Serbian province of Kosovo.
The goal, said the company, is to tap into the strategic competitive advantages that
Intereuropa holds on markets of SE Europe.
Representatives of the company have recently met Montenegrin PM Milo Djukanovic, who
expressed his support for the activities and the entry of Intereuropa on the Montenegrin
market, the company added.
State-Run KAD and SOD Accept Maos Bid
The state-run Restitution Fund (SOD) and Pension Management Fund (KAD) have decided to
accept the final bid by Maos and sell their stakes in conglomerate Iskra for SIT 1,400 (EUR
5.84) a share
The state-run Restitution Fund (SOD) and Pension Management Fund (KAD) have decided to
accept the final bid by Maos and sell their stakes in conglomerate Iskra for SIT 1,400 (EUR
5.84) a share.
At a meeting on Friday, 17 March, the supervisory board of KAD agreed to sell its 27.9%
stake in Iskra, adding that such a decision is in line with their investment policy.
Meanwhile, SOD issued a press release on Friday, 17 March that also confirmed the sale of its
13.28% stake in Iskra. The fund will use the money from the sale for market investments in
line with its investment policy, SOD added.
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Maos was formed by Iskra managers who had opposed a hostile bid for Iskra by Iskra
Avtoelektrika, a maker of car electronics equipment, which offered SIT 1,044 (EUR 4.36) per
share in mid-December.
Maos and Iskra Avtoelektrika then waged a bidding war until Iskra Avtoelektrika announced
in early February that it was pulling out.
Still bent on Iskra takeover, Maos published its last bid of EUR 5.84 a share on 6 March after
the two funds said the previous bid was too low.
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SLOVENIA IN BRIEF
Bojan Krizaj Replaces Legendary Tone Vogrinec
Bojan Krizaj, one of Slovenia's most successful skiers of all time, is returning to professional
skiing, but not as a competitor: he has been named the director of the influential Slovenian
Alpine Skiing Fund.
Podobnik Promises Tough Stance on Trieste Gas Terminal
Environment Minister Janez Podobnik has announced that Slovenia will voice clear
opposition to the proposed liquefied natural gas terminal in the Gulf of Trieste if the
assessment of trans-border impacts confirms negative consequences for the environment.
Slovenia and Columbia Sign Culture Agreement
Slovenia and Columbia have signed an inter-governmental agreement on cooperation in
culture, education and sports, which is designed to boost bilateral relations in these fields and
fight illicit trade in works of art and historical artifacts. The agreement was signed in Vienna
on Wednesday, 15 March by Slovenian Ambassador to Austria Ernest Petric and the Viennabased Columbian Ambassador to Slovenia Rosso Jose Serrano Cadena.
Slovenian Bid to Run IAEA Presented to El Baradei
Slovenia's bid to hold the chairmanship of the Board of Governors of the International Atomic
Energy Agency (IAEA) topped the meeting between Slovenian diplomats and IAEA chief
Mohammed El Baradei in Vienna on Wednesday, 15 March. Ernest Petric, Slovenian
Ambassador to Austria and the country's permanent representative to international
organisations in Vienna, acquainted El Baradei with the Slovenian government's decision to
bid for the chairmanship for the 2006-2007 period.
Government Names Arbiter for N-plant Arbitration
The Slovenian government revealed on Thursday, 16 March it has named Jan Paulsson, a
lawyer at the Paris branch of Freshfields Bruckhaus Deringer, as its arbiter in the dispute with
the Croatian power utility HEP over undelivered electricity from the Krsko nuclear power
plant (NEK).
Slovenia Interested in EU Qualification Recognition Programme
Slovenia expressed its interest in the planned implementation of the EU's framework
qualification recognition programme, which would also include the Western Balkans and
other states in the region, Education Minister Milan Zver said in Vienna on Friday, 17 March.
Luxembourg Minister: Court Backlog Common Problem in EU
Meeting his Slovenian counterpart Lovro Sturm in Ljubljana on Friday, 17 March,
Luxembourg Justice Minister Luc Frieden said Slovenia's measures targeting the court
backlog were a step in the right direction. Frieden, who has responded to Sturm's invitation to
visit, also pointed out that Slovenia was not alone in the EU as regards drawn out legal cases
and that other member states were introducing similar measures.
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