Slovenia Business Week no. 03, January 15th 2007
Table of Contents:
HEADLINES ................................................................................................................. 3
Exports, Imports Soar in November ........................................................................... 3
EU Labels Slovenia's EU Changeover as Successful ................................................. 3
The Tolar Goes into Retirement ................................................................................. 4
INTERNATIONAL COOPERATION .......................................................................... 5
D'Alema: Italy Sees Slovenia as Partner .................................................................... 5
Italian, Slovenian FM Agree to Reinforce Cooperation ............................................. 5
D'Alema Hands Drnovsek Initiative for Reconciliation Meeting .............................. 7
Rupel Visits Serbia, Backs Pro-European Forces ...................................................... 7
Drnovsek Appoints Three New Ambassadors............................................................ 8
EUROPEAN UNION .................................................................................................... 9
German Ambassador Presents EU Presidency Programme ....................................... 9
Minister Says Drastic Emission Cuts Could Harm Competitiveness ......................... 9
LEGISLATION ........................................................................................................... 11
New Labour Minister Reiterates Need for Social Security ...................................... 11
STATISTICS/FORECASTS........................................................................................ 12
Industrial Output Up 8.3% Y/Y in November .......................................................... 12
Factory-Gate Prices Up 0.6% in December.............................................................. 12
Euro Leads to Unusual Price Hikes in Bars and Restaurants ................................... 12
Rate of Registered Employment Down by 6.6% in 2006......................................... 13
Number of Newly Registered Cars Drops in 2006 ................................................... 13
Eurostat: Slovenia's R&D Budget Decreasing ......................................................... 13
FINANCE .................................................................................................................... 15
Supervisors Leave Decision on LJSE Sale to Stakeholders ..................................... 15
NLB Bank Makes Changes to Management Board.................................................. 15
Stock Market Exceedingly Bullish in 2006 .............................................................. 16
KBC Determined to Remain a Purely Financial Shareholder in NLB ..................... 16
Gaspari: More Work Facing Slovenia After Euro .................................................... 17
Ljubljana Stock Exchange ........................................................................................ 17
BRANCH INFORMATION ........................................................................................ 19
Oil Row: Supply to Slovenia Not Hit, Retailer Fears Price Rise ............................. 19
Ski Slope Operators Desperate for Snow ................................................................. 19
Slovenia Lags Behind EU in Energy Efficiency ...................................................... 20
Entrepreneurship Increasingly Popular, But Remains Male Domain ....................... 20
COMPANIES .............................................................................................................. 22
Tusmobil Launches Web Hosting ............................................................................ 22
Two Bidders Remain in the Game for Steel Group.................................................. 22
Airport Operator Shareholders Replace Supervisory Board Member ...................... 22
Prevent Global to Increase Profit Despite Lower Revenues .................................... 23
Logistics Group Increases Revenues by 30% in 2006 ............................................. 24
Infond Holding Becomes Majority Owner of Vecer ................................................ 24
Najdi.si Remains the Most Popular Slovenian Website ........................................... 24
Telco Regulator Selects Mpeg-4 for Digital TV ...................................................... 25
SLOVENIA IN BRIEF ................................................................................................ 26
New Labour Minister Promises Review of Labour Legislation ............................... 26
Social Partners Agree Controversial Health Insurance Changes .............................. 26
Agriculture Minister Steps Down ............................................................................. 26
Casino Portoroz Management Steps Down .............................................................. 26
Virant Discusses Cutting Red Tape with Italian Counterpart .................................. 26
Minister Rupel Congratulates New Austrian FM ..................................................... 26
Hauliers Form Own Chamber................................................................................... 26
Slovenia Spent EUR 50m on Employment Programmes in Jan-Nov 2006 ............. 26
HEADLINES
Exports, Imports Soar in November
Slovenia's exports soared 12% in November 2006 to EUR 1.52bn, with exports
jumping by 14.5% to EUR 1.79bn
Slovenia's exports soared 12% in November 2006 to EUR 1.52bn, with exports
jumping by 14.5% to EUR 1.79bn. This more than doubled the trade gap over the
month before to EUR 267.54m. The coverage of imports with exports stood at 85.1%,
the National Statistics Office said on Tuesday, 9 January.
In the first eleven months of 2006 exports were up 16% year-on-year to EUR
15.35bn, while imports increased by 16.3% to EUR 16.65bn. The export-import
coverage was at 92.2%.
Exports to EU member states increased by 16.9% year-on-year in this period, to EUR
10.53bn, while exports to the rest of the world expanded by 14.1% to EUR 4.82bn.
Over EUR 13.3bn-worth of goods and services were imported from the EU, an
increase of 15% over the year before. Imports from non-EU countries meanwhile
soared by 21.8% to EUR 3.31bn.
EU Labels Slovenia's EU Changeover as Successful
Slovenia's first two weeks with the euro have gone smoothly with no major problems
encountered in the cash changeover
The European Commission on Friday, 12 January labelled Slovenia's changeover to
the euro as successful: as the period of dual circulation of euros and tolars draws to a
close, virtually all cash payments in Slovenia are being made in euros. Consumers and
shops have been coping well and everything is back to normal.
Slovenia's first two weeks with the euro have gone smoothly with no major problems
encountered in the cash changeover. The use of euros for cash payments has risen
rapidly and now virtually all cash transactions are being carried out in euros, the
Commission's press release reads.
This is confirmed by the results of a survey carried out among the Slovenian
population for the Commission on Wednesday, 10 January evening, showing that
94% of Slovenians had 'only' or 'mostly' euro banknotes in their wallets, of which
82% had 'only' euro banknotes. The corresponding figures for euro coins were 95 and
81% respectively.
By the end of 10 January 2007, almost 80%-worth of tolars in circulation had been
returned to banks and withdrawn from circulation. By all indications the backflow of
legacy cash is proceeding very quickly.
The Commission says the successful changeover can be attributed to the "thorough
preparations by the various actors involved, in both the public and the private sector."
The rapid conversion of the banks' automated teller machines (ATMs) on 1 January
played a major role in the smooth cash changeover, as did the commercial banks'
flexible opening hours for cash exchanges on the bank holidays 1 and 2 January.
Finally, the positive spirit in which the Slovenian citizens have participated in the
changeover has also contributed to its success, the report says.
The Tolar Goes into Retirement
People will still be able to change tolars for euros at banks and post offices
commission-free until 1 March, whereupon banks will be allowed to start charging
commission
Sunday, 14 January marked the final day of the two-week period of dual circulation
that started when Slovenia introduced the euro as legal tender on 1 January. As of
Monday, 15 January, all transactions will have to be carried out in euros and the tolar
will bid farewell after a brief but eventful 15 years as the national currency.
People will still be able to change tolars for euros at banks and post offices
commission-free until 1 March, whereupon banks will be allowed to start charging
commission.
Care has also been taken for those who chance upon stashed tolars in the years to
come: coins will be accepted by the central bank, Banka Slovenije, for ten years and
bills changed at face value indefinitely.
The withdrawal of tolars from circulation was quite fast and 40% of all cash in
circulation had been in bank safes at the end of the first working day of the year. By
the end of 10 January the figure rose to 80%, according to the European Commission.
The Commission, which has been keeping a close eye on the changeover, also found
that on 10 January some 94% of Slovenians had only or mostly euro notes in their
wallets, of which 82% had only euro banknotes. The corresponding figures for euro
coins were 95 and 81%.
According to the central bank, whereas banknotes are quickly piling up at banks,
coins are trickling in only slowly. Slovenia's largest bank, NLB, was expected to
collect some 500 tonnes of coins, but it has indeed collected only 300 tonnes so far.
Surveys suggest that many people will keep small collections of coins for posterity.
Additionally, many charities have taken advantage of the changeover to collect coins
in plastic bottles at stores and banks, which they will probably take to the banks in the
coming days.
Although the tolar has consistently shown up in surveys as the most trustworthy
Slovenian institution, it seems it will not be sorely missed. In an Eurobarometer
survey in November showed that 72% were satisfied of exceptionally satisfied with
the changeover to the euro.
Even though it will not be around in tangible form, the tolar will stick around until
June. That is how long all prices must be indicated in euros as well as tolars in order
to get people used to how much euros are actually worth, considering that the
exchange rate of 239.64 tolars to the euro is not exactly round or convenient.
INTERNATIONAL COOPERATION
D'Alema: Italy Sees Slovenia as Partner
Slovenia's recent past being a major success story, Italy has come to see its eastern
neighbour as a partner with whom it shares the interest for EU and NATO
enlargement to the Western Balkans
Slovenia's recent past being a major success story, Italy has come to see its eastern
neighbour as a partner with whom it shares the interest for EU and NATO
enlargement to the Western Balkans, Italian Foreign Minister Massimo D'Alema said
as he began a two-day official visit to Slovenia on Tuesday, 9 January.
D'Alema noted that Slovenia was facing an important task with its stint as EU
president in the first half of 2008 and offered Italy's support in this regard, after
symbolically crossing on foot the square dividing Italy's Gorizia and Slovenia's Nova
Gorica.
D'Alema moreover pointed out that relations between the two countries had
"intensified" in the first months following the shift in power in Italy last year.
He thanked his Slovenian opposite number Dimitrij Rupel and the Slovenian
government for their support in "the search for truth concerning historical events".
According to D'Alema, the border between the two countries was one of the bloodiest
battlegrounds in both world wars. Gorizia was also a symbol of the Cold War, "which
makes the search for truth the basis for a common future", added D'Alema, who also
met representatives of the Italian minority in Nova Gorica.
Rupel, who received D'Alema in Nova Gorica, meanwhile took the opportunity to
stress that the Slovenian minority in Italy and the Italian minority in Slovenia "enrich
our lives".
"What presented part of the problem in the past, has become part of the solution,"
Rupel said in reference to the role played by the minorities and the border today.
He assured that Slovenia would try to "make it clear to Italy that after several years of
waiting it is urgent to hurry up" with the implementation of the minority protection
act.
The Italian government is expected to shortly name the remaining four new members
of the Parity Board, a body overseeing the long overdue implementation the act in
Italy. "From your lips to god's ears," Rupel said responding to a journalist question
whether this could be expected soon.
Rupel, who also met representatives of the Slovenian minority in Italy, said that the
minority organisations expected a lot from D'Alema's visit.
The head of the Council of Slovenian Organisations (SSO) said that "D'Alema's visit
was well timed and that it gave a lot of hope". Rudi Pavsic of the Slovenian Cultural
and Economic Association (SKGZ) meanwhile believes that Romano Prodi's
government "is opening a new chapter in the relations with the Slovenian minority".
Italian, Slovenian FM Agree to Reinforce Cooperation
Italian Foreign Minister Massimo D'Alema and his Slovenian opposite number
Dimtrij Rupel agreed that the two countries would set up a working group for
common energy, transport and environmental issues
Italian Foreign Minister Massimo D'Alema and his Slovenian opposite number
Dimtrij Rupel agreed on Wednesday, 10 January that the two countries would set up a
working group for common energy, transport and environmental issues.
The pair also discussed minority issues, with D'Alema assuring Rupel that Italy would
enforce its minority protection act as soon as possible and that minority issues should
no longer pose a problem.
Rupel told the press that the talks had touched on some sensitive issues, which are
viewed by him and his counterpart as challenges rather than problems.
He said they were united in the view that Italy needed to implement its minority
protection act.
The members of the joint Parity Board must be appointed and the board needs to
compile the list of the Italian municipalities for which the act is to be enforced, Rupel
said.
D'Alema explained that he was a proponent of the act during the reign of Prime
Minister Giuliano Amato's government, which went on to adopt the law in 2001 - just
prior to Silvio Berlusconi's ascent to power.
"We regret that it has not been enforced fully," the Italian minister said while
announcing that the Italian side would "cooperate with the Slovenian community in
order to achieve this as soon as possible".
D'Alema meanwhile voiced concern over certain problems that the Italian minority
has been facing in Slovenia, notably concerning TV shows in the Italian language.
Rupel on the other hand feels that the minority is well taken care of in Slovenia.
The ministers said they devoted a lot of attention to enhancing cooperation in the
fields of energy, transport and environment. One of the first measures will be the
formation of a working group tasked with drawing up a joint strategy in the area.
D'Alema assured that the two governments would also cooperate transparently in
debates about Italy's plans to build two gas terminals in the Gulf of Trieste.
Noting that in the EU it was not possible for countries to behave at home as they
pleased, D'Alema compared Slovenian concerns about Italy's gas terminal with Italy's
views on the Krsko Nuclear Power Plant, Slovenia's lone N-plant.
"I am convinced that the two countries will focus on the future," D'Alema added.
The pair also touched on historical issues, including the "optanti" - Italians who left
former Yugoslav territories following WWII.
According to D'Alema, who assured the press that Italy had no intention of erasing the
role of Fascism, the events preceding and following the Second World War had a
profound impact on life in this part of Europe.
Whereas Rupel said Slovenia viewed the issue of optanti as resolved, D'Alema
suggested a new angle should be taken on an issue "that we intend to solve".
Noting that the basic guidelines for resolving the issue go back to 1983, D'Alema
added that Croatia should also be included in the process.
The pair moreover discussed European issues, foremost the EU constitution. Rupel
pointed to the fact that both Slovenia and Italy had ratified the document and that it
was in their interest that the effort put into the treaty would not be time wasted. "We
both want stronger European institutions," Rupel said.
Rupel and D'Alema are also in favour of an EU that would include the Western
Balkans. Speaking about the future of Kosovo, they noted that things could get more
complicated after the upcoming elections in Serbia, but added that these were tasks
and challenges that the countries were ready to help resolve.
Rupel expressed great satisfaction with D'Alema's visit, the first visit by an Italian
foreign minister in five years, whereas D'Alema said that the meeting presented "the
beginning of a more intense cooperation".
D'Alema began his visit on Tuesday, 9 January by symbolically crossing on foot the
square dividing Italy's Gorizia and Slovenia's Nova Gorica to later meet with
representatives of minorities from both sides of the border.
The first to receive him on 10 January was Parliament Speaker France Cukjati, with
whom he focused on the need to include the Western Balkans into the EU.
He also met with the members of the parliamentary Foreign Policy Committee, who
handed to D'Alema an initiative calling on Italy to return works of art that were
confiscated in Slovenia at the beginning of World War II.
D'Alema Hands Drnovsek Initiative for Reconciliation Meeting
Italian Foreign Minister Massimo D'Alema handed over to President Janez Drnovsek
Italy's initiative for a reconciliation meeting that would bring together the heads of
state of Slovenia, Croatia and Italy in an attempt "to symbolically overcome historical
differences between these nations
Italian Foreign Minister Massimo D'Alema handed over to President Janez Drnovsek
in Ljubljana on Wednesday, 10 January Italy's initiative for a reconciliation meeting
that would bring together the heads of state of Slovenia, Croatia and Italy in an
attempt "to symbolically overcome historical differences between these nations".
As Drnovsek's office further said in a press release, the Slovenian president welcomed
the idea put forward by Italian President Giorgio Napolitano, but noted that such an
event would need "thorough preparations in order to avoid new antagonisms and
confrontation".
Drnovsek and D'Alema meanwhile agreed that the two-day official visit of the Italian
FM was very important. According to Drnovsek's office, it "ended the several-yearslong break in high-level political contacts and paves the way for meaningful future
cooperation between the two neighbouring countries.
While D'Alema reiterated Italy's position regarding open issues with Slovenia and its
views concerning the EU and the Western Balkans, Drnovsek expressed support to
Italy's initiative to abolish capital punishment throughout the world.
Rupel Visits Serbia, Backs Pro-European Forces
Foreign Minister Dimitrij Rupel told officials in Belgrade that the aim of his official
visit was for him, as a representative of the EU, to express support to pro-European
forces in Serbia ahead of the upcoming general election in the country
Foreign Minister Dimitrij Rupel told officials in Belgrade on Friday, 12 January that
the aim of his official visit was for him, as a representative of the EU, to express
support to pro-European forces in Serbia ahead of the upcoming general election in
the country.
As regards the future status of Kosovo, Rupel said that Slovenia would not act on its
own but exclusively in line with the position of the EU. "We will strive for a
consensus within the EU framework and for a fair solution for Kosovo based on
consensus."
Speaking to the press alongside his Serbian opposite number Vuk Draskovic, Rupel
pointed out that the issue EU enlargement and thereby also the Western Balkans
would be one of the focal points of Slovenia's EU presidency in the first part of 2008.
Draskovic thanked Slovenia for its support in the inclusion of Serbia in NATO's
Partnership for Peace programme as well as for its role in Serbia's endeavours to
resume negotiations on the Stabilisation and Association Agreement with the EU.
Draskovic assured Rupel of Serbia's pro-European orientation, adding that Serbia
would turn to Slovenia's experience on its road towards European associations.
Prior to holding official talks, Rupel and Draskovic made a stop at the Belgrade
Faculty for Political Sciences, where they held a lecture on Serbia, Slovenia and the
EU.
Speaking to a packed auditorium, Rupel expressed his conviction that the future status
of Kosovo, whatever it may be, should not represent Serbia's defeat, not in a cultural,
ethnic, emotional, historical or symbolical sense.
He moreover said that Slovenia supported the basic position of the Kosovo Contact
Group, which says that the return of the region to the state prior to 1999 is not an
option. Also not conceivable, according to the group, is a partition of Kosovo or its
unification with one of the neighbouring countries.
During his one-day visit Rupel also met Serbian Prime Minister Vojislav Kostunica,
who, according to his office, said the solution for Kosovo could only be sought
through dialogue and a compromise on both sides.
Kostunica reiterated Belgrade's official position that the solution of the future status
of Kosovo laid in a broad autonomy for Kosovo, though within Serbia's borders.
Rupel and Kostunica meanwhile assessed relations between Slovenia and Serbia as
positive, especially in economy, and called for easing up the visa system between the
two countries.
Drnovsek Appoints Three New Ambassadors
President Janez Drnovsek has appointed Sanja Stiglic Slovenia's new ambassador to
the UN, Franc But was named ambassador to the Czech Republic, while Avgustin
Vivod became a non-residential ambassador to Brazil
President Janez Drnovsek has appointed Sanja Stiglic Slovenia's new ambassador to
the UN, a decision that took effect with the publication in the Official Gazette on
Friday, 12 January. Meanwhile, Franc But was named ambassador to the Czech
Republic, while Avgustin Vivod became a non-residential ambassador to Brazil.
Stiglic will replace the third Slovenian ambassador to the UN, Roman Kirn. Stiglic is
a career diplomat who had previously worked in the team of former Slovenian
ambassador to the UN Danilo Tuerk.
Until recently, Stiglic worked for the Foreign Ministry, where she was in charge of
the department for relations with the countries of North, West and Central Europe.
Franc But, a former agriculture minister, was a state secretary at the Agriculture
Ministry until August 2006. He was also a state secretary at the Agriculture Ministry
during Slovenia's accession to the EU. Between 2001 and 2003 he headed the People's
Party (SLS).
Vivod, who was named Slovenian Ambassador to Argentina in May 2006, will act
from Buenos Aires.
Also published in the Official Gazette is Prime Minister Janez Jansa's decree under
which Slovenia shall open a consulate in Mission Hills, Kansas, to cover the US states
of Kansas and Mississippi. Barbara Koval Nelson, a journalist and media expert, was
appointed the honorary consul there.
EUROPEAN UNION
German Ambassador Presents EU Presidency Programme
Goetz told the press that the task of the German presidency would be to take the EU
out of crisis and get it ready for new challenges
The programme of Germany's EU presidency topped the agenda of German
Ambassador to Slovenia Hanz-Joachim Goetz on Monday, 8 January, as he unveiled
the priorities to Foreign Minister Dimitrij Rupel and the press before he presents them
to the parliament and ambassadors accredited to Slovenia.
Goetz told the press that the task of the German presidency would be to take the EU
out of crisis and get it ready for new challenges.
He said the bloc has quite a few problems, including the crisis of constitutional treaty,
crisis of trust and coping with threats such as terrorism and international crime.
In its six-month stint Germany would focus on the constitution, social, economic and
ecological future, home affairs and justice as well as foreign policy and security.
Goetz said Germany would try to relaunch the constitution and "make sure the wheels
keep on moving" in other issues.
Minister Rupel told Goetz that Slovenia would like to be actively involved in
consultations on the future of the EU, including the conclusions of the EU summit in
June, according to a Foreign Ministry press release.
Slovenia is part of the presiding troika with Germany and Portugal. It takes over as
the new president in the first half of 2008.
Minister Says Drastic Emission Cuts Could Harm Competitiveness
Economy Minister Andrej Vizjak believes that if EU countries made an obligation to
cut CO2 emission by 20% until 2020, this might put the European economy in a
"somewhat less competitive situation" in the transitional period
Economy Minister Andrej Vizjak believes that if EU countries made an obligation to
cut CO2 emission by 20% until 2020, this might put the European economy in a
"somewhat less competitive situation" in the transitional period.
Nevertheless cutting emissions will bring long-term benefits and is necessary, Vizjak
said in a press release on Thursday, 11 January, commenting on the energy policy
strategy that the European Commission unveiled on Wednesday, 10 January.
On the other hand, Vizjak is satisfied with the "quite open messages" on the use of the
nuclear energy.
"Slovenian measures are fully in line with the Commission's assessments," Vizjak
commented on the Commission's calls for use of energy sources that do not increase
CO2 emissions.
The Commission said yesterday that giving up nuclear energy would increase CO2
emissions, since around 30% of the electricity in the EU is produced by nuclear power
plants.
Vizjak also said that the modernisation of the Sostanj coal-fired power plant and
aluminium producer Talum should increase energy efficiency.
He was commenting on the Commission's finding that Slovenia's energy efficiency is
well below the EU average.
According to Vizjak, Slovenia is also investing in the development of renewable
energy sources.
Data shows that Slovenia's energy consumption is growing, but energy efficiency is
well below the EU average. Slovenia used 301 tonnes of crude oil equivalent per unit
of GDP (one million euros) in 2004, whereas the EU average was 185 tonnes.
LEGISLATION
New Labour Minister Reiterates Need for Social Security
Marjeta Cotman, the recently appointed minister of labour, the family and social
affairs, wants to keep lunch break, bonus for years of service and holiday allowance
as workers rights
Marjeta Cotman, the recently appointed minister of labour, the family and social
affairs, wants to keep lunch break, bonus for years of service and holiday allowance
as workers rights. Speaking after a meeting with representatives of employers on
Wednesday, 10 January, Cotman reiterated that Slovenia is a welfare state.
The talks that focused on the employment relationship act also saw the two sides
agree that the employers would present their position on these issues in writing,
whereupon the ministry would begin drafting a new proposal for amending the act,
Cotman said.
Cotman made a similar statement on Tuesday, 9 January, after meeting
representatives of trade unions for the first time since she was appointed minister on
18 December.
Borut Meh, the head of the Employers' Association of Slovenia, said after the meeting
that the minister wants to take the negotiations towards reaching a compromise
between the social partners. He believes that the amendments should result in a
legislation that would facilitate the creation of jobs.
"The labour relationship act is currently not conductive to the promotion of job
creation," said Samo Hribar Milic, the provisional head of the Chamber of Commerce
and Industry (CCIS).
According to Hribar Milic, the minister said that while talks on lunch breaks would
continue, she does not believe that eliminating them would make the labour market in
Slovenia more flexible.
Hribar Milic also believes that the Slovenian labour market is too rigid in comparison
with the EU and hopes that the new proposal would be drafted by May. He hopes the
amendments will be based on the government economic reform package.
STATISTICS/FORECASTS
Industrial Output Up 8.3% Y/Y in November
In the first eleven months of 2006, Slovenian companies produced 7.2% more in
comparison with the same period the year before
Slovenia's industrial output increased by 8.3% year-on-year in November 2006, while
it rose by 3.1% over the previous month, the latest report by the National Statistics
Office shows.
In the first eleven months of 2006, Slovenian companies produced 7.2% more in
comparison with the same period the year before.
The index adjusted to the number of working days also shows an 8.3% increase yearon-year, while the seasonally adjusted index showed a 1.4% increase in comparison to
October.
Compared to November 2005, the production rose in mining (by 16.1%) and
manufacturing (by 9%).
The output in electricity, gas and water supply dropped by 4,3%.
Year-on-year, November also saw a 11.5% increase in the output of capital goods, a
9.6% increase in the output of intermediate goods and a 5% growth in production of
consumer goods.
Compared to November 2005, the stocks of industrial products increased by 3.4%,
while they were up by 1.4% over the previous month.
Factory-Gate Prices Up 0.6% in December
Factory-gate prices rose by 0.6% in December 2006 compared to November, adding
2.8% year-on-year
Factory-gate prices rose by 0.6% in December 2006 compared to November, adding
2.8% year-on-year, according to data by the National Statistics Office.
In December an increase was recorded in the prices of durable consumer goods
(2.1%), energy (0.9%) and raw materials (0.7%).
The prices of capital goods and non-durable consumer goods were up by 0.1%, while
the price of electricity rose by 0.8%.
Euro Leads to Unusual Price Hikes in Bars and Restaurants
The National Statistics Office has found "unusual" price increases in bars and
restaurants, where prices typically increase by fractions of a percent in the last month
of the year, but in December 2006 the increase was 3.2%
What consumers have been seeing in bars and restaurants for a while in the run-up to
the adoption of the euro has been borne out by hard facts: the National Statistics
Office has found "unusual" price increases in bars and restaurants, where prices
typically increase by fractions of a percent in the last month of the year, but in
December 2006 the increase was 3.2%.
The Statistics Office has been keeping a close eye on prices since April. "Until
December 2006 we had not noticed many fluctuations and unexpected price rises.
Most of the rises were namely the result of objective reasons. However, this cannot be
said about December's rise in prices of services in restaurants and bars," a press
release on Wednesday, 10 January read.
"The rises were not sporadic but general phenomena," the Statistics Office says.
"According to information given by restaurant owners, some of them raised prices
because they had not raised them for some time, while for some restaurants and bars
one could notice that their prices increased due to the euro changeover."
Prices of hors d'oeuvres grew by 4.8%, desserts by 4.5%, non-alcoholic beverages by
4.1%, trimmings by 3.3% and alcoholic beverages by 3.2%.
What is more, "unusual" individual price increases and upward rounding of prices
were registered in many other price groups (personal services, furniture and
furnishings, out-patient services, services in canteens, toilet articles and cosmetic
products, household textiles, firewood, computer equipment).
"Their individual impact was almost negligible but in total they contributed as much
to the December 2006 inflation rate as higher prices of services in restaurants and bars
- 0.12 percentage points."
Rate of Registered Employment Down by 6.6% in 2006
An average of 85,836 persons were registered as unemployed in 2006
An average of 85,836 persons were registered as unemployed in 2006, 6.6% less than
in 2005, according to a report by the Employment Service of Slovenia. The number of
registered unemployed persons dropped by 14,272 (15.4%) to 78,303 in 2006.
By the end of 2006 the number is expected to fall by another 7% to 72,700, the
service's acting director Anka Rode said at Wednesday, 10 January's press conference.
In 2006, employers filed a total of 227,934 vacancies, 12.3% more than in 2005,
while 155,893 persons were employed, a 13.8% rise compared to the previous year.
The Employment Service carried out 30 different employment programmes last year,
11 of which were fully or partially funded by the European Social Fund. The service
spent around EUR 50m on active employment policy, EUR 17m of which came from
the fund.
The largest number of unemployed in Slovenia reside in its northeastern part, with the
town of Murska Sobota recording an average such rate of 15.9%, while the rate in
Maribor, Slovenia's second largest city, stands at 13.6%.
On the other hand, the lowest average unemployment rates are recorded in the
northern city of Kranj (6.6%), the capital of Ljubljana (7.2%) and the sea port of
Koper (7.4%).
In October 2006 registered unemployment rate stood at 8.9%, 1.4 of a percentage
point down over the previous year. The labour force totalled 915,023, out of whom
833,721 were in paid employment, a 2% rise compared to October 2005.
Number of Newly Registered Cars Drops in 2006
Slovenians registered 64,628 vehicles in 2006
Slovenians registered 64,628 vehicles in 2006, 1,091 less than in 2005, of which
58,462 were cars, 2,290 less than in 2005, the Chamber of Commerce and Industry
(CCIS) said in a press release on Wednesday, 10 January.
Renault's sub compact model Clio remained the most popular car in Slovenia last
year. It was bought by 6,289 Slovenians, 3% less than the year before.
Clio is followed by another Renault model, Megane, with 2,158 buyers, 311 less than
in 2005, opting for Renault's representative in the small car segment.
Volkswagen's Golf holds the third spot, with 2,044 units of one of the world's most
popular cars sold last year, a 16% drop year-on-year.
Eurostat: Slovenia's R&D Budget Decreasing
Slovenia spent EUR 338m on research and development in 2005, which represents
1.22% of its GDP
Slovenia spent EUR 338m on research and development in 2005, which represents
1.22% of its GDP, according to data released by Eurostat on Friday, 12 January. This
is down 2.3% compared to 2001, and runs contrary to the Lisbon Strategy goal of
increasing the budget for R&D to at least 3% of GDP by 2010.
Eurostat data shows Slovenia's budget for R&D dropped from 1.55% in 2001 to
1.45% in 2004, and finally to 1.22% in 2005.
The EU average stood at 1.84% both in 2004 and 2005, which shows that the bloc is
also behind the target put forward by the strategy drawn up in 2000.
Most of the funds for research and development come from the business sector. In
2004 the sector financed 55% of research and development in the EU, while
companies funded 58.5% of research projects in Slovenia.
"The data revealed today shows that investment in research in the EU is stagnating. If
we want to achieve progress, we need to move forward," Science and Research
Commissioner Janez Potocnik said as the data was presented in Brussels.
In one of the first comments following the release of the data, the head of the
Brussels-based Slovenian Business and Research Association said most EU countries
failed to increase R&D funds, "which means we are not implementing Barcelona
goals".
Boric Cizelj referred to the target under which the public sector is to contribute 1% of
GDP to for R&D, while the private sector is to provide the remaining 2% of GDP for
this purpose by 2010.
"Slovenia can meet the 1% target from public resources, while it is hard to imagine
the corporate sector reaching 2% of GDP by 2010," Cizelj said.
"There is no doubt that in this way we are giving up knowledge-based competitive
advantage, which means we will have to work increasingly more to keep up the
current standard in the increasingly competitive international environment."
The official believes a step forward would require a "shift to the strategy of
knowledge-based society, something that calls for more investment in research and
development".
"The research sphere can contribute to more effective investment in R&D itself by
intensifying cooperation with the economy, something that is lacking in Slovenia,"
Cizelj said and called on the government to encourage private investment in R&D
with taxes and other measures.
FINANCE
Supervisors Leave Decision on LJSE Sale to Stakeholders
The LJSE management and supervisors will meanwhile strive to keep all of its
shareholders equally informed on the business operation of the LJSE as well as
inform potential takeover bidders on the operator's business and legal situation
The supervisory board of the Ljubljana Stock Exchange (LJSE) decided on Tuesday,
9 January to leave its stakeholders to decide whether they want to sell their stakes in
the LJSE to Sweden's OMX group, which recently published a takeover bid for the
Ljubljana stock market operator.
The LJSE management and supervisors will meanwhile strive to keep all of its
shareholders equally informed on the business operation of the LJSE as well as
inform potential takeover bidders on the operator's business and legal situation.
The supervisors also welcomed the intention of the 31 shareholders of Ljubljanska
borza (banks and stock brokerages) to take into account the takeover price as well as
other criteria in their decision on selling their stakes in the LJSE.
LJSE supervisors and the management also said in Ljubljana that they supported in
principle all strategic capital partnerships that would facilitate the implementation of
the LJSE development strategy between 2005 and 2009.
The supervisors also discussed the preliminary financial report for 2006, which saw
the stock market increase its gross profit to EUR 851,000 in comparison with EUR
237,500 in 2005.
OMX was created by the merger of the Stockholm, Helsinki and Copenhagen stock
markets. It also owns the stock exchanges in Riga, Tallinn and Vilnius.
A total of 742 companies are listed on OMX, which controls around 80% of securities
trading in the Scandinavian and Baltic states.
The LJSE meanwhile lists 201 companies and has a market capitalisation of EUR
19bn.
NLB Bank Makes Changes to Management Board
The supervisory board of NLB, Slovenia's largest bank, decided to keep Matej Narat
on the management board, while dismissing Borut Stanic and Andrej Hazabent, NLB
chief supervisor Ziga Lavric told the press after the session
The supervisory board of NLB, Slovenia's largest bank, decided on Wednesday, 10
January to keep Matej Narat on the management board, while dismissing Borut Stanic
and Andrej Hazabent, NLB chief supervisor Ziga Lavric told the press after the
session.
The terms of all three management board members run out on 16 July. The
supervisors did not discuss the fate of NLB chief exec Marjan Kramar, whose term
runs out on 1 February 2009.
The supervisors moreover decided to expand the number of management board
members from the current four to six, Lavric revealed. The board was reduced to four
after the members of the Belgian banking and insurance group KBC, Erik Lutz and
Pierre van Kiersbilck, left it in mid-2006.
KBC's management board members resigned from the bank after KBC, unhappy with
its inability to become a majority shareholder in NLB, decided in May last year to
limit its responsibility to that of a pure financial investor. KBC owns 34% of NLB,
while the state is the majority stakeholder.
The four additional management board members will be selected in a public call for
bids, with KBC having the right to appoint one member. The rest would be appointed
by the Slovenian stakeholders, Lavric added. He hopes the call will be published as
soon as possible.
Lavric also said that he does not yet know what area KBC management board
member would be responsible for. "We will discuss that when it becomes clear whom
KBC will nominate and who will apply," he explained.
Stock Market Exceedingly Bullish in 2006
The Ljubljana Stock Exchange (LJSE) was exceptionally bullish in 2006: the main
indices posted double digit returns, the biggest blue chips counted their returns in
dozens of percent and the turnover increased nearly three-quarters over the year
before to almost one billion euros
The Ljubljana Stock Exchange (LJSE) was exceptionally bullish in 2006: the main
indices posted double digit returns, the biggest blue chips counted their returns in
dozens of percent and the turnover increased nearly three-quarters over the year
before to almost one billion euros.
Last year's turnover was EUR 996.48m, an increase of 72% over the year before.
Shares accounted for 80%, followed by investment funds (11.5%) and bonds (8.1%),
according to the LJSE's annual statistical report.
Among the main indices, the benchmark SBI 20 was up 37.86% year-on-year on 31
December 2006, the blue chip SBI TOP index soared 56.57% and the investment fund
PIX index added 28.31%.
The biggest winners on among the blue chips were drug maker Krka (+83.75%),
energy company Petrol (+67.32%) and port operator Luka Koper (+59.44%).
Krka is also the biggest listed company in Slovenia, its market capitalisation topping
EUR 2.78bn at the end of 2006. It was also the busiest share, with deals worth EUR
305m.
The market capitalisation of all securities bar investment funds topped EUR 11.5bn,
an increase of over 72%.
This was due to bullish blue chips as well as the floatation of telco Telekom
Slovenije, whose market capitalisation was EUR 2bn at the end of the year.
At current 2005 prices, the market capitalisation on the securities listed on the LJSE
corresponded to 42.1% of Slovenia's GDP.
KBC Determined to Remain a Purely Financial Shareholder in NLB
Belgian banking group KBC, which owns 34% of Slovenia's largest bank, NLB,
welcomed the decision of the NLB supervisory board to expand the management
board and give KBC one seat
Belgian banking group KBC, which owns 34% of Slovenia's largest bank, NLB,
welcomed on Thursday, 11 January the decision of the NLB supervisory board to
expand the management board and give KBC one seat. However, "this will not in any
way alter the standpoint KBC has taken since 10 May 2006, which is to remain a
purely financial shareholder in NLB."
The KBC's statement comes after the NLB supervisors decided to keep Matej Narat
on the management board, while dismissing Borut Stanic and Andrej Hazabent when
their term expires in July. The supervisors did not discuss the fate of chief executive
Marjan Kramar, whose term runs out in 2009.
The supervisors moreover decided to expand the number of management board
members from the current four to six. The four missing management board members
will be selected in a public call for bids, with KBC having the right to appoint one.
KBC said that this will give it "the opportunity to manage its investment of more than
400 million euros in NLB efficiently and to remain closely involved in the bank's
further development." But it would not affect its plans to expand its other home
market in Central and Eastern Europe.
Gaspari: More Work Facing Slovenia After Euro
Mitja Gaspari, the governor of Slovenia's central bank, Banka Slovenije, has noted
that the adoption of the euro does not signal the journey's end for Slovenia, pointing
above all to the need for a prudent debate among social partners and for a flexible
fiscal policy
Mitja Gaspari, the governor of Slovenia's central bank, Banka Slovenije, has noted
that the adoption of the euro does not signal the journey's end for Slovenia, pointing
above all to the need for a prudent debate among social partners and for a flexible
fiscal policy.
Speaking at the launch of a book by economist Vladimir Lavrac on "Slovenia's Road
Towards the Euro" on Friday, 12 January, Gaspari said that even though Slovenia's
monetary policy had become part of the EU framework, it was unjustified to use the
fact that its scope for decisions was severely limited as an excuse.
"Looking at the 12 member states, we can discover a wide array of scenarios of how
individual states developed after their accession to the eurozone, with some
performing poorly despite having a good starting point," he said.
"It is not only about challenges concerning the market or competition, but also those
concerning certain institutions, as Slovenia still has many areas that are not regulated
by the market, which means that...prices or wages are still liable to anomalies,"
Gaspari assessed.
He pointed out that the social partners bore a great share of the responsibility as
Slovenia was no longer in the position to adapt its monetary policy to its own needs.
"We need to remain adaptable and flexible and this can only be achieved with an
adaptable fiscal policy as opposed to merely a sustainable one," he said.
Gaspari labelled euro-related price hikes as "irresponsible" and pointed to the danger
of the trend being echoed also by employers and workers in the form of "some kind of
unbalanced agreements".
Ljubljana Stock Exchange
The main market SBI 20 index gained 103.88 points (1.55%) to close at 6,806.59
Indices on the Ljubljana Stock Exchange (LJSE) reached new all-time highs last week
as the majority of blue chips continued an upward run that was started in the last days
of 2006 and intensified after Slovenia adopted the euro at the beginning of this year.
The main market SBI 20 index gained 103.88 points (1.55%) to close at 6,806.59.
The tempo was dictated by the biggest names, as reflected in the fact that the SBI
TOP index of the six biggest shares outperformed the SBI 20 - it gained 43.89 points
(2.84%) to end the week at 1,586.59.
Energy company Petrol and pharma company Krka contributed the most to the surge
last week, as they gained 5.09% to EUR 547.63 and 3.98% to EUR 856.74,
respectively, in vibrant trading.
Krka generated nearly EUR 30m in turnover, including EUR 12.6m in block deals,
and Petrol was involved in EUR 6.8m deals. Together they accounted for nearly half
of all the week's volumes on the LJSE, which stood at EUR 78m.
While the big names continued to surge, some of the other blue chips ran out of steam
following extensive gains last week. Shares of technical goods retail chain Merkur
lost 1.75% to EUR 231.29, while the Sava conglomerate slumped 4.68% to EUR
230.60 to top the list of losing issues last week.
Although late to join in on the bonanza, popular investment funds exploded last week
to push the PIX investment fund index 299.89 points (5.71%) to 5,553.07.
Meanwhile, the BIO bond index was up 1.12 points (0.94%) to 119.71.
BRANCH INFORMATION
Oil Row: Supply to Slovenia Not Hit, Retailer Fears Price Rise
According to Aleksander Salkic of Petrol, the supply cuts that have hit Poland,
Germany and the Ukraine cannot directly affect Slovenia, which gets its petrol from
the Mediterranean and Black Sea networks
The trade row between Russia and Belarus that has affected Russian oil supplies to
parts of Europe has not hit Slovenia, the country's leading fuel retailer, Petrol, told
STA on Monday, 8 January. However, the row could lead to higher oil prices, which
would translate into higher petrol prices in Slovenia.
According to Aleksander Salkic of Petrol, the supply cuts that have hit Poland,
Germany and the Ukraine cannot directly affect Slovenia, which gets its petrol from
the Mediterranean and Black Sea networks.
Petrol is not dependent on the affected pipeline, Salkic told STA. However, he added
that the supply disruption could result in higher prices of petrol in Slovenia, as the
price of crude oil rises because of the instability.
The price at which Petrol buys its fuel is set on the derivatives market in London,
Salkic explained and added that the price is likely to be affected by the latest
developments.
The European Commission confirmed that supplies over the Druzhba pipeline had
been severed as the row between Russia and Belarus intensified.
"I have contacted Russian and Belarus authorities calling on them to provide an
urgent and detailed explanation of the causes of this disruption," said European
Energy Commissioner Andris Piebalgs in Brussels.
The development comes after Belarus imposed an oil shipment tax on Russia in a titfor-tat measure after Russia more than doubled the price of gas for Belarus.
Ski Slope Operators Desperate for Snow
The hardest hit are ski slopes at low altitudes because the weather is too warm even
for artificial snow
Slovenian ski lift operators are in despair over this year's season. A report in of the
business daily Finance on Wednesday, 10 January says the operators of Slovenia's
best known ski slopes in Kranjska gora report a 60% decline in revenues due to
unusually warm weather.
The hardest hit are ski slopes at low altitudes because the weather is too warm even
for artificial snow. The Rudno ski slope on the Pokljuka plateau, an area which has
seen some of the harshest winters in the past, has seen its revenues annihilated to 5%
of the figure recorded last year.
Peter Demsar, who heads the slope, is pessimistic, saying the resort can offer no
alternative to skiing. "Our only option is skiing. Development of tourism is not an
option at the moment as the area is hard to access," Demsar was quoted as saying by
Finance.
The situation is even worse on the slopes at the nearby lakeside resort of Bled. Mirko
Ulcar, who is responsible for the Straza Bled slope, told Finance that the season there
would finish even before it had started. The slopes however offer summer sledging.
According to Klavdija Gomboc of RTC Kranjska gora, the centre has suffered
heaviest losses on account of turnout during the week. It is now seeking reorientation
into summer tourism and new projects. "One of them is a cable car to the top of
Vitranc, where a new slope would open."
Peter Znidar, the direct of the slopes on Kobla, another resort in northern Slovenia,
does not even dare to calculate the loss, according to Finance.
Slovenia Lags Behind EU in Energy Efficiency
A survey by the European Commission shows that Slovenia's energy consumption is
growing, but energy efficiency is well below the EU average
A survey by the European Commission shows that Slovenia's energy consumption is
growing, but energy efficiency is well below the EU average. Slovenia used 301
tonnes of crude oil equivalent per unit of GDP (one million euros) in 2004, whereas
the EU average was 185 tonnes.
Industry is the biggest user of electricity, but consumption is growing across other
sectors as well, according to data by the European Commission, which makes part of
the energy package unveiled on Wednesday, 10 January.
The energy package includes a report on the state of the internal market, which
suggests that electricity in Slovenia is 19% cheaper for households and 14% cheaper
for industry than the EU average.
Slovenia opened up the electricity and gas markets for non-household consumers in
July 2004 and full liberalisation for all consumers is to follow in July 2007.
According to EU data, some 4,700 users have changed electricity providers, less than
5% of all non-household users. Nobody has changed gas suppliers, as there is still
only one player on the market.
The energy package places heavy emphasis on reducing the dependence on energy
imports from Russia. Slovenia imports 57% of its gas from Russia, followed by
Algeria (34%).
Entrepreneurship Increasingly Popular, But Remains Male Domain
The survey, which was released in London on 10 January, shows 4.6% of Slovenians
started a business or had been running one for less than three years and a half in
2006
Slovenian entrepreneurship is picking up, press reports say on Thursday, 11 January,
quoting results of the yearly Global Entrepreneurship Monitor. The survey, which was
released in London on Wednesday, 10 January, shows 4.6% of Slovenians started a
business or had been running one for less than three years and a half in 2006.
This ranks Slovenia 15th on the list of 21 European countries headed by Iceland
(11.26%) and with Belgium (2.73%) trailing at the bottom, a report in daily Delo says.
The paper quotes Miroslav Rebernik, the head of the entrepreneurship research group
at the Maribor-based Faculty of Business and Economy, who says that 62,000
Slovenians got involved in entrepreneurship last year. The figure does not represent
the number of registered companies.
Considering the estimated failure rate, Rebernik believes around 100,000 people in
Slovenia are involved in entrepreneurship, or 8% of the adult population.
While abroad, in particular in less developed countries, individuals as a rule start a
business because they cannot find a job, an increasing number of Slovenians decide to
launch their own company because they see this as a good business opportunity. This
in turn means higher ambitions about growth and new jobs, Rebernik says.
On the downside, Slovenia trails the list of world countries when it comes to the
number of women entrepreneurs (24.7%), the share of men being higher only in
Belgium (80.8%) and the United Arab Emirates (95.3%).
According to a report in business daily Finance, male entrepreneurs are the most
dominant in the age group 18-24, where the ratio is 13.8 against one, while the most
balanced group are those aged between 35 and 44, where the ratio is 1.7 to one.
COMPANIES
Tusmobil Launches Web Hosting
The company's director Marko Fujs says the market for server hosting is underserved
and demand has already exceeded all expectations
Tusmobil, the telecommunications arm of retailer Engrotus, has launched its first
service - server hosting. Internet access and mobile telephony are to follow in the first
half of 2007, the company said in a press release on Monday, 8 January.
The company's director Marko Fujs says the market for server hosting is underserved
and demand has already exceeded all expectations.
Tusmobil is expected to launch mobile telephony in the first half of the year after it
acquired the frequencies last year from Vega, a subsidiary of US Western Wireless
International, which decided to call it quits in Slovenia.
Fujs told STA that the company would try to achieve good coverage before it
launches mobile services. Parts of the country which will be beyond reach of
Tusmobil signal will be covered through the network of market leader Mobitel.
Mobitel and Simobil, the biggest operators, are currently the only mobile providers
with their own infrastructure. There are several smaller mobile virtual network
operators (MVNOs).
Two Bidders Remain in the Game for Steel Group
Two out of three original bidders remained in the game for the acquisition of the
55.35% stake that the state is selling in the Steel group Slovenska industrija jekla
(SIJ)
Two out of three original bidders remained in the game for the acquisition of the
55.35% stake that the state is selling in the Steel group Slovenska industrija jekla
(SIJ), the SIJ privatisation commission said on Monday, 8 January.
According to the commission, which still did not disclose the names of the bidders,
the rejected bidder failed to amend its bid, even after an additional request by the
commission.
The commission is expected to send its proposal on the selected bidder to the
government by the end of January.
According to unofficial information, the initial bids were submitted by two German
and one Russian company.
According to the sales plan, the state would keep a 25% plus a golden share in the
group for an unspecified period of time.
The group posted EUR 15.5m in net profits in the first nine months of 2006, down a
third over the same period last year.
Airport Operator Shareholders Replace Supervisory Board Member
The extraordinary annual general meeting (AGM) of Aerodrom Ljubljana replaced
supervisory board member Janez Potocnik, undersecretary at the Transport Ministry,
with Franc Zeljko Zupanic, the head of the Civil Aviation Directorate at the ministry
The extraordinary annual general meeting (AGM) of Aerodrom Ljubljana, the
company managing the Ljubljana Airport, replaced on Wednesday, 10 January
supervisory board member Janez Potocnik, undersecretary at the Transport Ministry,
with Franc Zeljko Zupanic, the head of the Civil Aviation Directorate at the ministry.
Potocnik's dismissal was demanded by the operator's majority owner, the government,
which holds a 50.67% stake. The replacement was necessary because of internal
organisational changes and to bring the operation of the company in line with EU
regulations.
However, media reports quote sources saying that Potocnik was replaced because he
was not obedient enough.
The company expects a total of 1,448,868 passengers in 2007, a 7% rise in
comparison with 2006. It also expects 45,774 arrivals and departures, a 14% increase,
and plans to transport 16,829 tonnes of cargo, up 16% over 2006.
Its projected profit for 2007 stands at EUR 9.6m, 9% above its plans for 2006.
Prevent Global to Increase Profit Despite Lower Revenues
According to the company's chief exec Joze Kozmus, the company is pleased with the
results achieved in the face of demanding market circumstances and streamlining in
the company
Prevent Global, the Slovenj Gradec-based maker of car seat covers, projects EUR
3.2m of net profit in 2006, some 25% more than last year, despite a drop in sales
revenues to EUR 253m, some 20% less than in 2005, the company's chief exec Joze
Kozmus told the press on Thursday, 11 January.
According to Kozmus, the company is pleased with the results achieved in the face of
demanding market circumstances and streamlining in the company.
However, "extensive endeavours will have to be made in order for the company to
remain competitive", he said in reference to current trends in the industry that see
manufacture being moved into Eastern Europe, North Africa and Russia. Prevent
Global currently holds a 16% share of the market.
The company's chief exec also revealed that they would continue to produce roughly
the same amount of car seat covers at their current locations. He added that while layoffs could not be ruled out, the company planed to make 6% of its workforce
redundant, instead of the anticipated 15%.
This means that between 150 and 200 workers would be fired in Slovenia, he added.
The company sacked 329 workers from its factories in Slovenia.
At the same time the number of employees in Prevent's factories in Slovenia and
Croatia dropped by some 10%, the company employed new workers in Morocco and
Bosnia-Herzegovina.
The company currently employs 6,990 workers, with 2,750 of those in Slovenia. The
entire group employs 7,632 people.
The management of the company also does not oppose a move by a group of its major
shareholders, which published on 8 December an offer for the acquisition of the
22.38% of Prevent Global. The group offered EUR 125.6 per share, while the nominal
value of the company's share stands at EUR 70.94.
The bidders - chairman Kozmus, entrepreneur Nijaz Hastor and the companies TBP,
Prevent Halog, Sajoma and Eurocity - already own 77.62% of the stock of the nonlisted company.
According to an announcement by the management board in the Finance business
daily on Thursday, 11 January, such ownership consolidation would "contribute to a
successful implementation of the strategic plans and improve the company's business
results". The bid runs out on 5 February.
Logistics Group Increases Revenues by 30% in 2006
Preliminary data shows that logistics group Viator&Vektor generated EUR 250m in
sales revenues last year
Preliminary data shows that logistics group Viator&Vektor generated EUR 250m in
sales revenues last year, a 30% increase year-on-year. The company expects a similar
growth in revenues for 2007, chairman Zdenko Pavcek told the press in Ljubljana on
Thursday, 11 January.
We achieved good results in all three business segments - logistics, vehicle
maintenance and production, Pavcek said and added that the introduction of a uniform
trademark in 2006 helped the company in gaining recognition on the European
market.
According to Pavcek, Viator&Vektor will focus on vehicle maintenance. The
company will transform the site of its failed wholesale market project on the outskirts
of Ljubljana into a vehicle maintenance centre.
In production, 2006 was the turning point for vehicle producer Tovarna vozil Maribor
(TVM), where Viator&Vektor holds a 98% stake, he said.
TVM is expected to post EUR 20.9m in revenues in 2006, also due to a successful
airport bus project concluded with German bus giant Neoplan Bus.
On the other hand, Pavcek said that the restructuring of defence contractor Sistemska
tehnika will be finalised within the next two weeks.
While saying that Sistemska tehnika is expected to finish 2006 with a loss, Pavcek
hopes that the tide will turn already in 2007.
Sistemska tehnika failed in its bid to produce armoured personnel carriers for the
Defence Ministry. The EUR 278m project was awarded to the company Rotis,
representing Finnish defence contractor Patria.
"We have been investing our money for four years into a project we eventually lost,
and the consequences are serious", Pavcek said.
Indeed, the failed bid would also result in layoffs at Sistemska tehnika, although
Pavcek did not want to specify the number of workers that would be sacked.
He added that Sistemska tehnika would begin developing civilian programmes instead
of military ones.
Infond Holding Becomes Majority Owner of Vecer
Asset management firm Infond Holding has become the majority owner of the
Maribor-based newspaper publisher Vecer after buying a 15% stake from asset
management firm KBM Infond
Asset management firm Infond Holding has become the majority owner of the
Maribor-based newspaper publisher Vecer after buying a 15% stake from asset
management firm KBM Infond, Infond Holding told STA on Thursday, 11 January.
Infond Holding, which already had a 36.5% stake in Vecer, will now hold 51.5%
pending approval by the Culture Ministry.
The Maribor-based KBM Infond offered its stakes in 19 Slovenian companies,
including Vecer, up for sale in October 2006.
The company decided to sell shares by non-quoted companies in order to bring its
portfolios in line with the requirements of legislation on investment funds and asset
management companies.
Najdi.si Remains the Most Popular Slovenian Website
A survey has shown that search engine najdi.si is the most frequently visited
Slovenian website, with 710,106 hits between 2 and 29 October 2006
A survey has shown that search engine najdi.si is the most frequently visited
Slovenian website, with 710,106 hits between 2 and 29 October 2006, some 5,000
less than it recorded in the April survey.
The results, presented in Ljubljana on Thursday, 11 January, see Najdi.si followed by
24ur.com, a news portal, with 487,202 hits (405,124 in the spring); Siol.net, the
homepage of Slovenia's leading internet service provider; Bolha.com, an auction site;
and avto.net, a car auction site.
The survey, commissioned by the Advertising Chamber, financed by internet portals
and carried out by research company Aragon, also revealed that 60% of Slovenians
aged 10-75 surfed the Internet in October.
Moreover, 59% of people use the Internet monthly, while 75% of all Slovenians aged
between 10 and 44 use it on a regular basis.
Telco Regulator Selects Mpeg-4 for Digital TV
The Agency for Post and Electronic Communications (APEK) has decided to select
the mpeg-4 standard for digital terrestrial TV broadcasts as it started handing out the
first digital TV radio frequencies
The Agency for Post and Electronic Communications (APEK) has decided to select
the mpeg-4 standard for digital terrestrial TV broadcasts as it started handing out the
first digital TV radio frequencies.
Most European countries that have already started introducing digital terrestrial TV
have opted for the older mpeg-2 standard, but APEK said on Friday, 12 January that
mpeg-4 is a more efficient way of using the available radio frequency spectrum.
Unlike mpeg-2, mpeg-4 allows for the broadcasting of multiple TV programmes in a
single channel. Considering the present as well as future needs, the choice of mpeg-4
is economically and strategically justified, the regulator said.
SLOVENIA IN BRIEF
New Labour Minister Promises Review of Labour Legislation
Labour, the Family and Social Affairs Minister Marjeta Cotman said that she would
conduct a thorough review of the amendments to the employment relationship act,
after meeting on Tuesday, 9 January the representatives of the trade unions for the
first time since she was appointed minister in December.
Social Partners Agree Controversial Health Insurance Changes
Trade unions, employers and the government on Tuesday, 9 January reached
agreement on amendments to health insurance legislation, completing more than a
year-long negotiations in which opinions clashed mainly on severed conditions for
sickness benefits and the composition of the assembly of the Health Insurance
Institute.
Agriculture Minister Steps Down
Agriculture Minister Marija Lukacic tendered her resignation on Wednesday, 10
January, citing health reasons, the prime minister's office said.
Casino Portoroz Management Steps Down
The two-man management board of casino operator Casino Portoroz stepped down on
Wednesday, 10 January. Chairman Marino Mohoric and member Zaljko Ugrin cited
personal reasons. The supervisory board is expected to discuss their resignation on 17
February, supervisory board chairman Boris Zupancic told STA.
Virant Discusses Cutting Red Tape with Italian Counterpart
Public Administration Minister Gregor Virant held talks in Rome on Wednesday, 10
January with Italian minister without portfolio for public administration reform and
innovation, Luigi Nicolais, on ways to cut red tape for citizens and companies.
Minister Rupel Congratulates New Austrian FM
Foreign Minister Dimitrij Rupel sent a letter to his Austrian counterpart Ursula
Plassnik, congratulating her on her cabinet reappointment, the ministry said on
Thursday, 11 January.
Hauliers Form Own Chamber
Slovenian hauliers held on Saturday, 13 January the founding assembly for the
Hauliers' Chamber, one of the new chambers to be established in Slovenia after the
act on chambers entered into force in 2006, replacing the Chamber of Commerce act.
The chamber currently has 123 registered members.
Slovenia Spent EUR 50m on Employment Programmes in Jan-Nov 2006
The Employment Service of Slovenia spent EUR 50m on active employment policy
between January and November 2006. The state allocated around EUR 33.4m for the
programmes, while EUR 16.7m of the money came from the European Social Fund.
According to the service, 83,935 people participated in 30 different employment
programmes. Of that number, 18,667 took part in the programmes of the European
Social Fund.