Slovenia Business Week no. 04, January 22, 2007 Table of Contents:
Slovenia Business Week no. 04, January 22, 2007
Table of Contents:
Jansa and Hungarian PM Agree on Working Meeting of Governments ................................ 7
Drnovsek Receives New Romanian and Lithuanian Ambassadors ....................................... 7
Drnovsek Receives New Ambassadors from Ghana and Moldova ....................................... 9
New Methodology Means Slovenia Steady on Economic Freedom Index .......................... 18
Electric Energy Expert Rejects Necessity of Nuclear Energy in Slovenia .......................... 26
DARS Spent EUR 477.8M on Motorway Construction in 2006 ......................................... 29
Government Stepping Up Construction of Schengen Border Checkpoints ......................... 34
2
HEADLINES
Euro Conference Stresses Benefits, Challenges of Euro
A conference held as part of official euro celebrations was told that Slovenia stands to enjoy extensive benefits from adopting the euro, although it must also be mindful of the challenges ahead
A conference held as part of official euro celebrations in Ljubljana on Monday, 15 January was told that Slovenia stands to enjoy extensive benefits from adopting the euro, although it must also be mindful of the challenges ahead.
Slovenian central bank Governor Mitja Gaspari said in his keynote address that the euro was an opportunity for the country to build a stable economic and financial environment.
European Central Bank (ECB) President Jean-Claude Trichet said the benefits of the euro included no exchange rate risks with respect to its main trade partners, price transparency, protection against financial disturbances and the benefit of stability-oriented policy from the
ECB.
While the officials were full of praise for Slovenia's speedy adoption of the single currency, warnings could be heard about the challenges that face Slovenia in the future.
Gaspari said that "whether and how we will succeed in further developing all that we have achieved in the past years does not depend on the euro, but on ourselves."
European Commissioner for Economic and Monetary Affairs Joaquin Almunia expanded on this by stressing the need for low inflation and long-term sustainability of public finances.
He said Slovenia must continue to pursue anti-inflationary macro-economic policies and
"make use of the currently favourable economic climate to accelerate the ongoing fiscal consolidation process."
The officials made a point of the risk posed by the ageing population in Slovenia, with
Almunia saying that demographic trends in the country placed "the long-term sustainability of public finances in the high-risk category".
The ageing population was also the main issue debated at the first of two panels held at the conference.
Servaas Deroose, the head of the directorate for the macroeconomy of the eurozone and the
EU at the Economic and Financial Affairs Directorate, told the panel that Slovenia faces fiscal policy challenges in order to tackle pressures on the budget related to ageing.
Finance Ministry State Secretary Ziga Lavric was sanguine, saying that Slovenia was aware of these issues and preparing appropriate solutions, whereby it was looking to achieve
"national and social consensus".
This was echoed by Finance Minister Andrej Bajuk at a press conference with Almunia held at Cankarjev dom conference centre, the venue of this evening's large ceremony welcoming the euro to Slovenia.
"It is high time that Slovenia becomes involved in the debate on where we stand, what our future looks like and what can be done in order to provide our children with a future similar to the situation today," Bajuk said.
Meanwhile, Almunia hailed Slovenia's successful bid to join the eurozone as extremely important for the EU given that Slovenia was the first country to take this leap following the beginning of the single currency's circulation in 2002.
A similar view was made by Jean-Claude Juncker, prime minister of Luxembourg and the head of the eurogroup, in his address to the conference earlier in the day.
For Juncker, Slovenia's adoption of the euro is also an opportunity for the other members of the eurozone to recall the benefits as well as added responsibilities of membership.
3
He also called for enhanced surveillance and coordination of economic policies in the eurogroup. This is crucial in order to ensure "the cohesion of the eurozone".
Meanwhile, at a separate press conference, Trichet was reluctant to speculate on when other countries might join the 13-member euro club.
"They are welcome," he said, adding that the eurozone was not a closed club provided that criteria are met. The fulfilment of convergence criteria is in the interest of member states as well as the eurozone as a whole, he said.
He also issued a renewed call for the abolition of restrictions on Slovenian workers in the EU in the light of Slovenia's membership of the eurozone.
The free movement of labour is a "natural feature" of the single market and the single
European currency. There is "very strong economic underpinning" for this, Trichet said.
Meanwhile, the second panel at the conference examined the role of the public in the adoption of the euro, with participants concluding that the cooperation from the public was the key to the successful switch.
Jose Manuel Gonzalez-Paramo, member of the Executive Board of the European Central
Bank, noted that the truly successful operation may be attributed to a large extent to the borrowing of best practices from the 2002 cash changeover.
Also crucial, according to Breda Kutin, the head of the Slovenian Consumers' Association, was the fact that the consumer organisation took part in the preparations from their earliest phase, including in the drafting of laws.
Meanwhile, Banka Slovenije officials told the press that following the fortnightly period of dual euro-tolar circulation, almost all tolars have already been delivered to banks.
Central bank Governor Mitja Gaspari explained on the margins of the conference that 90% of tolars in circulation had been collected by the banks, while only some SIT 10bn-worth (EUR
41.7m) remain in the pockets of consumers.
Euro Welcomed to Slovenia with Fanfare
Slovenia ushered in the euro with a high-profile ceremony befitting of the keynote speakers' words about a historic event for the country as well as the whole of the EU
Slovenia ushered in the euro with a high-profile ceremony befitting of the keynote speakers' words about a historic event for the country as well as the whole of the EU. Dozens of senior
European officials were on hand for the event in Ljubljana on Monday, 15 January, which took place as Slovenia bid a final farewell to the tolar, its currency of 15 years.
The ceremony was held after a two week period of dual circulation of the tolar and euro came to an end, and the single European currency became the sole legal tender in Slovenia. A host of special guests from around Europe congratulated Slovenia on the achievement.
German Chancellor Angela Merkel, whose country holds the rotating EU presidency, said
Slovenia's adoption of the euro was a "moving moment", especially considering that she personally saw two changes of currency - first when Germany was reunified and then in 2002, when the euro was introduced.
Apart from Merkel, the ceremony at the Cankarjev dom conference centre was also addressed by European Commission President Jose Manuel Barroso, European Central Bank President
Jean-Claude Trichet, Italian Prime Minister Romano Prodi and Luxembourg Prime Minister
Jean-Claude Juncker, among others.
Barroso labelled the adoption of the euro an "important historic step for Slovenia". But it is also an important step for the EU, as it proves that the eurozone is not a "private restricted club; the euro is truly a currency of the EU."
Meanwhile, Juncker praised the courage that Slovenians displayed starting with independence in 1991 and all the way to the euro adoption this year.
4
Other heads of government speaking at the event were Belgium's Guy Verhofstadt, Greece's
Kostas Karamanlis, Hungary's Ferenc Gyurcsany and Slovakia's Robert Fico.
The latter two also had paid a working visit to Slovenia, meeting with their host, Slovenian
PM Janez Jansa, as well as other Slovenian officials.
The event "A Welcome to the Euro", organised by the Slovenian government and central bank, was billed as an opportunity for EU member states to celebrate the expansion of the eurozone to 13 members and stress the symbolic commitment to further expansion.
According to Merkel, the euro is a visible sign of Europe's growing international clout as well as a symbol of EU integration.
In memory of the historical event, Merkel gave Prime Minister Janez Jansa a German euro coin with the Brandenburg Gate on the national side, which she said was a symbol of what
Europe has achieved - unity.
Juncker said that despite the many tangible benefits of the euro, citizens may still revel in nostalgia about their former currencies. It is therefore "crucial that we intensify our collective effort to explain to the citizens what the euro can do for them, and to caution them against asking the euro to perform where it simply cannot deliver".
The addressed were wrapped up by Slovenian Prime Minister Janez Jansa, who said the adoption of the euro was a big step for Slovenia, a small step for the European Monetary
Union, and a step in the right direction at the right moment for the EU.
Jansa believes the adoption of the euro is "a timely response to the challenges of the future".
"Since the disintegration of Yugoslavia, Slovenia has walked a successful path of development and transition. Today marks the landmark in another successful step," he said.
The ceremony was the final part of a day of celebrations of the arrival of the euro in Slovenia.
Earlier in the day a conference was held on the euro in the nearby Grand Hotel Union, featuring finance ministers and central bankers from around Europe.
At that event, participants stressed that Slovenia stood to enjoy extensive benefits from adopting the euro, although it must also be mindful of the challenges ahead.
Meanwhile, Trichet, Barroso and Juncker reiterated calls for a lifting of restrictions on the movement of Slovenian workers in the EU.
"I can only recommend, once again, to member states to lift as early as possible the restrictions to the free movement of workers inside the EU or at least in the eurozone,"
Barroso told the press after the ceremony.
One of the biggest high-level events Slovenia has ever hosted passed smoothly, a good sign for Slovenia as the country prepares for the presidency of the EU in the first half of 2008.
Slovenia adopted the euro on 1 January, after two years of preparations in the ERM II mechanism, a waiting room for the euro.
The switch has been viewed as a major success, as confirmed by the latest report from the
European Commission, which said that Slovenia's first two weeks with the euro have gone smoothly and no major problems had been encountered in the cash changeover.
Slovenian central bank Governor Mitja Gaspari explained on the margins of the conference that 90% of tolars in circulation had been collected by the banks, while only some SIT 10bnworth (EUR 41.7m) remain in the pockets of consumers.
Potocnik Invites Companies to Take Part in Technology Platforms
The European paradox is that "we are strong in creating knowledge, but weak in using it",
European Science and Research Commissioner Janez Potocnik told the panel of leading
Slovenian managers that took place in the Chamber of Commerce and Industry of Slovenia
The European paradox is that "we are strong in creating knowledge, but weak in using it",
European Science and Research Commissioner Janez Potocnik told the panel of leading
5
Slovenian managers that took place in the Chamber of Commerce and Industry of Slovenia
(CCIS) on Friday, 19 January.
According to Potocnik, European and national technology platforms and establishing cooperation between knowledge and industry, are the key elements in putting European knowledge into use, which is clearly shown in the EUR 55bn budget of the 7th Framework
Programme.
Of the four basic blocks of the research programme, Potocnik highlighted Co-operation as presenting the best opportunities for Slovenian companies. He explained that Co-operation represented 60% of all funds allocated for the programme and that it supported research and applicative use.
Slovenian companies will also be able to draw funds from other sources, one of them being the newly established Risk scheme, a financial instrument drawn up by the European
Commission and the European Investment Bank, said Potocnik.
This financial instrument will enable the drawing of funds for programmes involving greater risks, with EUR 10bn allocated in the form of favourable loans, Potocnik said. He moreover mentioned the opportunities coming from the recently adopted energy bundle.
There are currently 31 European technology platforms, which are expected to start cooperating, said Potocnik, stressing that the future of such forums lay foremost in better structured national and European funding sources and in the implementation of the European innovation strategy.
There are currently 22 technology platforms in Slovenia and they are a mirror image of the
European platforms, Potocnik said. According to the European Commission, Slovenia has been successful in exploiting the concept of the platforms, which would not have been possible without political will and sufficient funds.
6
INTERNATIONAL COOPERATION
Jansa and Hungarian PM Agree on Working Meeting of Governments
The talks are expected to take place in October, probably somewhere close to the border of the two countries
Prime Minister Janez Jansa and Hungarian counterpart Ferenc Gyurcsany, who met on the margins of the euro celebrations in Ljubljana on Monday, 15 January, agreed to stage a meeting of their cabinets this year. The talks are expected to take place in October, probably somewhere close to the border of the two countries.
Jansa and Gyurcsany talked about the state of respective minorities on both sides of the border, taking a stand for future steps in the promotion of their rights.
The pair agreed that the traditionally neighbourly relations can be strengthened further in several areas.
They pointed to energy security and transport, highlighting the role of the port of Koper,
Jansa's office said in a press release.
Gyurcsany confirmed for STA that energy issues were an important feature of the talks, whereas members of the two delegations also discussed how to help minorities preserve their identity.
The Hungarian prime minister also met the Speaker of the National Assembly France Cukjati, representatives of the Hungarian minority in Slovenia and Social Democrats (SD) president
Borut Pahor.
Cukjati expressed his hope that Hungary would respect the 1992 bilateral agreement on guaranteeing special rights to the Slovenian minority in Hungary.
According to Cukjati's office, the Slovenian official pointed out that the Slovenian minority was worse off than the Hungarian minority in Slovenia.
Gyurcsany stressed that Hungary's current economic situation did not allow his country to allocate the amount of money for the Slovenian minority that would be proportional to the funds allocated by Slovenia to the Hungarian minority.
Cukjati also said that the two countries cooperate well in efforts related to the expansion of the Schengen border-free zone.
Pahor told STA that the meeting with Gyurcsany, the president of the Hungarian socialists
(MSZP), was aimed at getting to know each other better and establishing friendly relations.
As part of these efforts Pahor is to visit Hungary in the near future.
Drnovsek Receives New Romanian and Lithuanian Ambassadors
President Janez Drnovsek received credentials from the new Romanian Ambassador to
Slovenia, Dana-Manuela Constantinescu, and the new Lithuanian Ambassador to Slovenia,
Giedrius Poudziunas
President Janez Drnovsek received on Tuesday, 16 January credentials from the new
Romanian Ambassador to Slovenia, Dana-Manuela Constantinescu, and the new Lithuanian
Ambassador to Slovenia, Giedrius Poudziunas, the president's office said in a press release.
Constantinescu thanked Drnovsek for Slovenian support to Romania in its accession to the
EU, and said that Romania could learn a lot from Slovenia in terms of the euro changeover procedure.
Drnovsek expressed his satisfaction with Romania becoming an EU member state, and said he always believed in its abilities and energy, which he witnessed during his visit to Romania last year.
7
While saying that Slovenia is ready to share its experience with Romania in the future, he also pointed out to the fact that there were no direct flights between the countries, which hampers bilateral relations in all areas.
The new Lithuanian Ambassador Poudziunas, who is based in Vienna, assessed the relations between Lithuania and Slovenia as very good. He said he wanted to strengthen the cooperation in economy, because the trade between the two countries was poor.
He congratulated Slovenia on being the first EU newcomer to adopt the euro, adding that
Lithuania planned to open an office in Ljubljana, which would eventually become an embassy.
Drnovsek assessed the relations between the two countries as friendly, and said that they pursued similar interests and goals, so the cooperation could be enhanced.
We have to ensure stability, which is the only guarantee that Europe would be safe and peaceful, Drnovsek said, adding that the EU expansion made the cooperation among EU states more difficult. We have to cooperate nevertheless, because there is no alternative, he added.
According to Drnovsek, the EU could improve the cooperation in environmental protection and social justice by taking the lead in the areas and by proposing solutions.
Rupel Assures Macedonia to Get Date for EU Talks by Mid-2008
Foreign Minister Dimitrij Rupel assured officials that Slovenia had made it one of the priorities of its EU presidency in the first half of 2008 to launch negotiations with Macedonia
Foreign Minister Dimitrij Rupel assured officials in Skopje on Friday, 19 January that
Slovenia had made it one of the priorities of its EU presidency in the first half of 2008 to launch negotiations with Macedonia. This means Macedonia has a lot of work ahead, Rupel said.
Addressing a press conference following their talks, Rupel and his Macedonian counterpart
Antonio Milososki labelled the visit as a harbinger of more good cooperation between the two countries; Prime Minister Janez Jansa is due in Skopje in a month along with a strong business delegation.
"Prime Minister Jansa mentioned the possibility in Strasbourg on Wednesday, 17 January that as EU president Slovenia would encourage the start of talks between Macedonia and the EU, which does not mean Macedonia will wait for Slovenia's presidency, but it has a lot of work ahead," Rupel said.
Milosovski thanked for the statement made by the Slovenian prime minister, saying it was not just an expression of support, but an encouragement to Macedonia to carry out reforms.
Macedonia was given the status of a candidate for EU membership in December 2005, but it has not been given the exact date for the launch of accession talks. At the presentation of the successive 18-month presidencies in Strasbourg on Wednesday, 17 January, Jansa said
Macedonia would get a date during Slovenia's presidency at the latest.
Minister Rupel reiterated Slovenia's readiness to share its experience with Macedonia and in this way to continue to assist the country in its progress towards the EU and NATO. Rupel also underscored that Macedonia should continue its reform process.
Milososki said Rupel's visit was important in what was a vital time for Macedonia's bid to join the EU and NATO. He highlighted that the Slovenian embassy in Skopje took over as the
NATO contact embassy in the country on 1 January.
The Slovenian and Macedonian ministers signed an agreement on consular assistance, which
Milososki described as a "symbol of strategic partnership between the countries".
Under the agreement, Slovenian diplomatic missions in Tokyo, New Delhi, Tel Aviv and
Buenos Aires will provide certain forms of consular assistance to Macedonian citizens.
8
The two ministers also discussed the wider situation in the region, including the parliamentary election in Serbia and the status of the province of Kosovo. Asked by a reporter whether the pair also touched on the demarcation line between Macedonia and Kosovo, Rupel said the issue was not brought up specifically, but that it was a serious problem which needed to be tackled.
Milososki said this was a technical issue, which was being worked upon. According to him,
Macedonia expects the final proposal for the status of Kosovo to be presented by UN special envoy for Kosovo status Martti Ahtisaari would determine the players, the manner and the deadline for the demarcation.
Minister Rupel also met Macedonian President Branko Crvenkovski, Prime Minister Nikola
Gruevski and Speaker of Parliament Ljubisa Georgievski.
Drnovsek Receives New Ambassadors from Ghana and Moldova
President Janez Drnovsek received credentials from the new Moldovan Ambassador to
Slovenia, Valeriu Bubutac, and the new Ghanaian Ambassador to Slovenia, Charles Agyei-
Amoam
President Janez Drnovsek received credentials from the new Moldovan Ambassador to
Slovenia, Valeriu Bubutac, and the new Ghanaian Ambassador to Slovenia, Charles Agyei-
Amoam, the president's office said in a press release on Friday, 19 January.
The Moldovan ambassador, who is based in Budapest, said that his priority would be to further the relatively modest cooperation between Slovenian and Moldovan economies as there is interest for that on both sides.
Drnovsek in turn pointed to Slovenia's interests in the development of bilateral relations and international cooperation, given that both countries frequently share opinions.
The president and the new Ghanaian ambassador, who is based in Rome, talked about the conditions in Ghana. Agyei-Amoam said his country was strengthening democracy and the rule of law, and setting up an efficient administration.
Drnovsek expressed satisfaction over the situation in Ghana, however he noted that there was too much poverty, violence and suffering in Africa, adding that the developed world should do more to help this continent.
Agyei-Amoam invited Drnovsek to attend an upcoming ceremony that will mark the 50th anniversary of Ghana's independence.
9
EUROPEAN UNION
Trichet Calls for Abolition of Labour Restrictions on Slovenia
Jean-Claude Trichet, the president of the European Central Bank (ECB), made a renewed call for the abolition of restrictions on Slovenian workers in the EU in the light of the fact that
Slovenia has joined the eurozone
Jean-Claude Trichet, the president of the European Central Bank (ECB), made a renewed call for the abolition of restrictions on Slovenian workers in the EU in the light of the fact that
Slovenia has joined the eurozone. "Free movement of labour is of the essence," he told the press in Ljubljana on Monday, 15 January.
The free movement of labour is a "natural feature" of the single market and the single
European currency. There is "very strong economic underpinning" for this, Trichet said.
Speaking to the press on the margins of a high-profile euro conference, Trichet was reluctant to comment on inflationary pressure in the eurozone in the face of falling oil prices. Nor did he wish to speculate on when other countries might join the 13-member euro club.
"They are welcome," he said, adding that the eurozone was not a closed club provided that criteria are met. The fulfilment of convergence criteria is in the interest of member states as well as the eurozone as a whole, he said.
Before the conference at which he was one of the keynote speakers, Trichet held talks with
Slovenian Prime Minister Janez Jansa. He congratulated Slovenia on the successful adoption of the euro, saying that it has done a great job with good management of economic policies.
Trichet was quoted as saying by the PM's office that the euro was a strong currency and the countries that adopted it have since created four times more jobs than in the same period before the euro.
Jansa was convinced that as a part of the eurozone, Slovenia would progress even more rapidly, as companies could plan their activities in the long term.
Trichet also extended his congratulations for a job well done regarding the euro switch to
President Janez Drnovsek.
In a meeting held in the afternoon, the pair exchanged views on the future of the eurozone.
Drnovsek said he was convinced Slovenia would be a constructive member of the monetary union.
Drnovsek also thanked Trichet for the assistance given by the ECB to Slovenia throughout the country's preparations for the new currency, the president's office said.
Trichet said the euro was a successful project. According to him, all doubts about the strength of the euro have been dispelled.
According to Drnovsek's office, Trichet added that structural reforms in Europe and efforts to overcome the technological divide between Europe and the US were guarantees for further strengthening of the euro's position.
Slovakian PM in Slovenia to Get Euro Experience
According to Fico, talks with Jansa focused mainly on Slovenia's experience in adopting the euro
Slovakian Prime Minister Robert Fico paid a working visit to Slovenia on Monday, 15
January as part of which he has met his Slovenian counterpart Janez Jansa. According to Fico, talks with Jansa focused mainly on Slovenia's experience in adopting the euro.
Speaking to the press after meeting Jansa, Fico said that the euro dominated the talks. He said he was interested mainly in Slovenia's strategy of adopting the euro, given that Slovakia intended to take the same step in 2009.
10
He also congratulated Slovenia for managing to adopt the new currency in such a short period.
Fico explained he wanted to be acquainted of Slovenia's plan in meeting Maastricht criteria for eurozone membership, particularly in inflation.
He pointed out that one of the measures that helped Slovenia succeed in lowering inflation included regulating the price of fuel. Slovakia will have to do the same if it wants to reign in inflation, he added.
The Slovakian official told the press that he asked his Slovenian counterpart for assistance from experts who guided Slovenia through its transition to the euro.
Quizzed by journalists about whether the pair discussed euro-related price hikes in Slovenia,
Fico said that this was not the topic of discussion, although Jansa outlined efforts of nongovernmental institutions in monitoring prices.
Fico expressed surprise at the fact that Slovenia allowed the conversion of tolar cash into euros without a limit on the amount exchanged. "You did not have the kind of privatisation that took place in Slovakia," he said.
Meanwhile, the two officials also touched on bilateral issues, establishing that there were no open issues between the countries.
Jansa's office said in a press release that Fico assured the Slovenian PM of Slovakia's full cooperation with Slovenia during its stint as EU president in the first half of 2008.
Other items on the agenda of the Fico-Jansa talks included international affairs, foremost the future of Kosovo.
However, the talks did not touch on the situation in Iraq in spite of Slovakia's plans to withdraw the 100 soldiers it has in Iraq.
Fico's working visit coincides with the massive euro ceremony in Ljubljana that was being attended by a host of European leaders.
Apart from taking part in the ceremony, Fico also met Speaker of the National Assembly
France Cukjati, President of the National Council Janez Susnik and Ljubljana Mayor Zoran
Jankovic.
A press release from the parliament's PR office said Fico and Cukjati examined EU issues, concluding that the countries share many views, including on the EU constitution and the expansion of the Schengen border free zone.
Austrian FM Labels Slovenia Respected EU Member
Plassnik congratulated Slovenia on adopting the euro, saying that "both sides of the
Karawanken (Karavanke mountain chain) will from now on share the same currency, too"
Austrian Foreign Minister Ursula Plassnik labelled Slovenia a respected EU member after meeting her Slovenian counterpart Dimitrij Rupel at Brdo pri Kranju on Monday, 15 January.
Plassnik congratulated Slovenia on adopting the euro, saying that "both sides of the
Karawanken (Karavanke mountain chain) will from now on share the same currency, too".
Rupel meanwhile thanked his Austrian opposite number for the role Austria played in efforts for the international acknowledgment of Slovenia by the EU.
The two ministers also touched on the situation of the Slovenian minority in the Austrian province of Carinthia.
The new Austrian government is relieved of the burden of certain issues faced in the past,
Rupel suggested.
The Austrian FM, who also served in the previous Austrian government, stated that the new cabinet was determined to solve the issue of Slovenian-German city limit signs by the summer.
Meanwhile, Rupel held a separate meeting with his Greek counterpart Theodora Bakoyianni, who congratulated Slovenia on adopting the euro.
11
Bakoyianni also praised Slovenia on 15 years of independence and pointed to the excellent political ties between the two countries.
There is room for improvement in economic cooperation, the Greek official said and added that the two countries would work on this in the future.
Barroso and Juncker Say Labour Market Barriers Should Be Lifted
European Commission President Jose Manuel Barroso and Luxembourg Prime Minister Jean
Claude Juncker joined the appeal by the President of the European Central Bank, Jean
Claude Trichet, for a lifting of restrictions on the movement of Slovenian workers in the EU
European Commission President Jose Manuel Barroso and Luxembourg Prime Minister Jean
Claude Juncker on Monday, 15 January joined the appeal by the President of the European
Central Bank, Jean Claude Trichet, for a lifting of restrictions on the movement of Slovenian workers in the EU.
"I can only recommend, once again, to member states to lift as early as possible the restrictions to the free movement of workers inside the EU or at least in the eurozone,"
Barroso told the press at the end of a ceremony marking Slovenia's adoption of the euro.
He noted that member states were entitled to impose transitional periods from the legal perspective as these were agreed on during the negotiation process, but added that he needed to reiterate the recommendation of the European Commission on lifting the restrictions, as all empirical data showed that this would be beneficial.
Juncker meanwhile pointed to the fact that the freedom of movement was one the four basic freedoms of the EU. But he did recall that transitional periods were traditionally introduced every time a new country joined the bloc.
While arguing that an increasing number of countries, including Luxembourg, are easing restrictions, he pointed out that the process would be much easier if "within the EU we had a form of social dimension, if more basic social rules would be in place".
Trichet made the call on Monday, 15 January in the light of the fact that Slovenia has become a full-fledged member of the eurozone.
"Free movement of labour is of the essence," he said, adding that the free movement of labour was a "natural feature" of the single market and the single European currency, with a "very strong economic underpinning".
Most old member states imposed temporary restrictions on workers from newcomers in 2004.
Most have lifted the restrictions, but barriers are still in place in Austria and Germany, while
Belgium, Denmark, France, Luxembourg and the Netherlands have limited restrictions.
Greek PM: Slovenia a Success Story
Prime Minister Janez Jansa hosted his Greek counterpart Kostas Karamanlis for a tete-a-tete on the margins of the ceremony welcoming Slovenia to the eurozone
Prime Minister Janez Jansa hosted his Greek counterpart Kostas Karamanlis for a tete-a-tete on the margins of the ceremony welcoming Slovenia to the eurozone. Karamanlis labelled
Slovenia a success story, Jansa's office said in a press release.
The two officials agreed that the excellent relations between the countries can be bolstered additionally.
Although trade between the countries doubled in 2006, all of the potential in economic ties has not been utilised, especially in agriculture, tourism and the environment, the press release added.
The adoption of the euro in Slovenia represents an additional incentive for fortifying cooperation, Jansa and Karamanlis agreed, adding that much also depended on improving transport connections.
12
The pair confirmed a common interest in making sure that the "euroatlantic gap in the area between Slovenia and Greece is filled as soon as possible".
Discussing the situation in the Western Balkans, the two prime ministers agreed that one of the strongest instruments for bringing stability to the region was giving the countries in it a
European outlook.
According to the PM's office, the pair agreed that this was important also for shoring up the pro-democracy and pro-European forces in the region.
Jansa and Karamanlis furthermore concluded that Greece and Slovenia, who have both ratified the European constitution, share very similar views on the future of the EU.
Slovenian Appointed to European Parliament President's Cabinet
Ciril Stokelj, former head of Slovenia's permanent representation to the EU, was appointed deputy director of the cabinet of the new President of the European Parliament, Hans-Gert
Poettering
Ciril Stokelj, former head of Slovenia's permanent representation to the EU, was appointed on
Tuesday, 16 January deputy director of the cabinet of the new President of the European
Parliament, Hans-Gert Poettering.
He will be responsible for coordination in foreign policy and the coordination of inter-cultural and inter-religious dialogue. Among Stokelj's priority tasks will be the Middle Eastern peace process and the Western Balkans.
These are three large areas that will be among the priority tasks of the president of the
European Parliament as well as the parliament itself, Stokelj said on the sidelines of the
European Parliament plenary session.
Stokelj said he was pleased that he had been invited to the cabinet, and noted that he would invest all the energy and experience in doing the job well.
He said he had often worked with the new president in the last couple of months and also presented him his programme of work.
Stokelj was the head of Slovenia's permanent representation to the EU between July 2002 and
July 2005 and has worked as director responsible for inter-institutional cooperation and foreign policy at the European Parliament's General Secretariat since December 2005.
EU Troika Says Presidency Programme Ambitious Yet Realistic
The troika of countries that will successively chair the EU in six month stints in 2007 and the first half of 2008 - Germany, Portugal and Slovenia unveiled a joint presidency programme which the three heads of government labelled as ambitious yet realistic
The troika of countries that will successively chair the EU in six month stints in 2007 and the first half of 2008 - Germany, Portugal and Slovenia - on Wednesday, 17 January unveiled a joint presidency programme which the three heads of government labelled as ambitious yet realistic.
"This approach will definitely contribute to greater efficiency and better continuity,"
Slovenian Prime Minister Janez Jansa told the press, satisfied with the new practice of drawing up the presidency programme for 18 months.
The programme is ambitious, it includes answers to all the challenges the EU will face over the coming 18 months, Jansa said at a press conference which also featured German
Chancellor Angela Merkel and Portuguese PM Jose Socrates.
"Slovenia will be the last country to implement the programme and we are counting on very successful presidencies of Germany and Portugal, which means that the most crucial, toughest issues will be resolved before our turn," he said.
13
According to him, the issues that Slovenia will have to tackle during its six-month stint include the expansion of the Schengen no-border area, a review of the reformed Lisbon
Strategy and the commitment to the continuation of EU enlargement.
Jansa ventured to say that if not before, Macedonia would get a date for the start of accession talks during Slovenia's presidency in the first half of 2008.
Merkel named as the priority the revival of the EU constitution, saying Germany would draft a revival plan during its stint. Other topics that will occupy all three presidencies include energy, climate change and improvements to legislation.
She said that Germany would help Portugal and Slovenia. "We will gladly help Slovenia with our experience; wherever the country blazes its own trail we will watch with interest to see whether we will get new incentives," according to Merkel.
The Portuguese prime minister also said that the programme was feasible, the ambitiousness being a result of the fact that the three countries want to strengthen Europe. He said the programme included "what Europeans expect from Europe."
For Socrates, the main challenges of the troika will be the constitutional treaty and the Lisbon
Strategy. He also highlighted the dialogue between the bloc and Africa, especially in the light of migration and development issues.
European Commission President Jose Manuel Barroso said the troika was a good combination. "These are three generations and I'm counting on solidarity between them," he said, recalling the motto of the German presidency - "Europe - Succeeding Together".
Minister Calls for Flexibility of Employers, Employees
Labour, the Family and Social Affairs Minister Marjeta Cotman stressed the importance of flexibility of employers and employees while adding that basic work conditions should also be respected as she met her EU counterparts in Berlin
Labour, the Family and Social Affairs Minister Marjeta Cotman stressed the importance of flexibility of employers and employees while adding that basic work conditions should also be respected as she met her EU counterparts in Berlin on Friday, 19 January.
The informal meeting stressed the concept of good work - just wages, protection from risks at jobs, workers' rights, family-friendly employment practices and adequate number of job vacancies - the minister told STA just prior to signing an agreement on the development of
EU social policy with her German and Portuguese counterparts.
The agreement, signed by Cotman, Germany's Franz Muentefering and Portugal's Jose Viera da Silva, takes into account all of the aspects of good work and ways to consider them in the time of globalisation, the minister added.
Cotman added that family-friendly employment, jobs for the young, lifelong learning and demographic policy challenges will form the core of her ministry during Slovenia's stint as
EU president in the first half of 2008. Slovenia will be preceded by Germany and Portugal.
No Major Influx of Romanian and Bulgarian Workers Expected
Slovenia does not expect Bulgarian and Romanian nationals to flood the country in search for jobs after it opened its labour market to the pair of new EU entrants on 1 January
Slovenia does not expect Bulgarian and Romanian nationals to flood the country in search for jobs after it opened its labour market to the pair of new EU entrants on 1 January. Slovenia has so far attracted only a few Bulgarian and Romanian workers; last year their numbers stood at 109 and 466, respectively.
The national Employment Service data shows that while only 80 Bulgarian nationals and 116
Romanian citizens worked in Slovenia in 2002, their numbers increased to 109 and 466, respectively, in 2006.
14
In the meantime, their numbers fluctuated. While 142 Bulgarian and 112 Romanian workers were registered in Slovenia in 2003, their number dropped to 74 and 104, respectively in
2004, but rose to 91 and 143, respectively, in 2005.
Most of Bulgarian and Romanian workers stay in Slovenia for less then a year, working mainly in construction, metal industry and farming, according to officials at the Employment
Service.
The Ministry of Labour, the Family and Social Affairs does not think the liberalisation of the labour market for Bulgarian and Romanian workers will cause any major disturbance on the market, but it has nevertheless agreed with trade unions and employers to step up control and to regularly monitor their employment.
Data show foreign workers had a total of 50,700 different work permits last year. Slovenian employers still seek mainly workers from the countries of the former Yugoslavia.
These held a total of nearly 47,000 work permits last year. The majority of them, 26,000, were from Bosnia-Herzegovina, followed by citizens of Montenegro (about 8,000 permits), Croatia
(about 7,200) and Macedonia (around 4,700).
15
STATISTICS/FORECASTS
Industrial Revenues Up 6.6% Y/Y in November
The turnover was up 2.3% compared to October 2006
The Slovenian industry posted a 6.6% increase in total revenues in November 2006 over the same month in 2005, according to the National Statistics Office. The turnover was up 2.3% compared to October 2006.
While revenues generated on the domestic market increased by 3% on the month, revenues from abroad were up 1.9%. The total of new orders was down 6.7% in November over
October, but up 6.9% year-on-year.
Revenues increased in both main sectors: while manufacturing posted a 2.1% increase on the month and a 6.6% annual increase, mining generated an increase of 13.4% and 5.5% respectively.
An increase was recorded in all three groupings in terms of the products: while sales revenues in the output of intermediate goods was up 11.7% year-on-year, the respective increase for capital goods was 4.2% and 2.5% for intermediate goods.
Christmas Bonuses Push Wages Up
The average net salary for November amounted to EUR 868.78, which is 11.8% more than a month before and 6.2% more than a year ago
The average net salary for November amounted to EUR 868.78, which is 11.8% more than a month before and 6.2% more than a year ago, according to the National Statistics Office. The increase was due to Christmas bonuses.
The average gross wage salary totalled EUR 1,392.92, up 13.9% over the previous month and up 6.3% year-on-year.
The average salary increased due to the extra bonus paid out towards the end of the year, which equalled 10% of the average gross salary for November 2006. The bonus excluded, the average gross salary for November amounted to EUR 1,253.61.
According to the Statistics Office, the bonus was paid out together with the November salary to 18.8% of employees, each getting an average of EUR 740.01.
The majority of those who received the bonus work in financial services (66.8%). By contrast, only 6.2% of those employed in catering received the bonus, while employees in public administration, education and health did not receive the extra at all.
In real terms, the average gross salary for November was 13.6% higher than that for October and 3.9% higher than what was paid out for November 2005.
In the first eleven months of 2006, the average gross salary was EUR 1,208.36, an increase of
4.9% compared to the same period last year.
Statistics Office Counters Eurostat Claims on Lower R&D Funds
According to the Eurostat data, Slovenia spent 1.22% (EUR 338m) of its GDP on R&D in
2005, while the Slovenian office said the share was 1.49% of GDP
Eurostat has undervalued its assessment of the funds that Slovenia spent on Research and
Development in 2005, the Statistics Office told STA on Monday, 15 January. According to the Eurostat data, Slovenia spent 1.22% (EUR 338m) of its GDP on R&D in 2005, while the
Slovenian office said the share was 1.49% of GDP.
According to the office, the share of R&D spending actually increased from 1.45% in 2004.
Indeed, Eurostat's assessment was based on preliminary data that did not include the entire population, the office added.
16
The office already sent the amended data to the Eurostat, which has promised to publish it soon.
EU member states decided in 2000 in Lisbon to increase the budget for R&D to at least 3% of
GDP by 2010.
Survey: Slovenian Children Smoke Less, Drink Less Alcohol
The share of children in Slovenia who have tried smoking or drinking alcohol has fallen in
2006 in comparison with 2002
The share of children in Slovenia who have tried smoking or drinking alcohol has fallen in
2006 in comparison with 2002, Health Minister Andrej Brucan said as he presented on
Monday, 15 January the results for Slovenia of an international study Health Behaviour in
School-aged Children.
Data also shows that the share of 15-year olds who smoke every day fell from 23% in 2002 to
13% in 2006, Brucan said.
The share of children who drink alcohol regularly has also decreased, except among 13-year old girls, Brucan added.
According to the study, which was carried out for the second time in Slovenia, children ate fruit and vegetables more often, while consuming less sweets and sugared drinks.
Almost 90% of children are generally satisfied with their lives. The number of children suffering from psychosomatic symptoms, such as headaches, stomach aches or insomnia, has decreased, Brucan said.
Around 44% of boys and 42% of girls eat breakfast regularly, said Mojca Gabrijelcic Blenkus of the Public Health Institute. Meanwhile, 57% of boys and 43% of girls believe that their weight is normal, while 29% of boys and 47% of girls think they are slightly overweight.
The share of girls who think they are overweight has fallen. Also lower is the share of girls who were on a diet in 2006 compared to 2002, Gabrijelcic Blenkus revealed.
Helena Jericek of the Public Health Institute, who coordinated the study in Slovenia, said that the amount of time spent watching television on weekdays had fallen compared to 2002, however the amount of time children spend in front of the computer had risen, especially among girls.
Jericek finds it worrying that children are less active physically. Also worrying is the increase in violent behaviour, especially among 11- and 13-year olds.
The study, carried out every four years among children aged 11, 13 and 15, is commissioned by the World Health Organisation. It was carried out by the Public Health Institute and financed by the Health Ministry.
November Unemployment Rate at 8.6%
As many as 78,842 people were registered as jobless in November
Slovenia's registered unemployment rate for November 2006 was 8.6%, down 0.3 percentage point on October, according to a report from the National Statistics Office on Monday, 15
January.
The unemployment rate based on the International Labour Organisation's (ILO) labour force survey, which the Statistics Office publishes quarterly, was 5.6% for the third quarter of 2006.
As many as 78,842 people were registered as jobless in November, which is 3% less than in
October and a 16.1% decrease year-on-year. The unemployment rate among men was 7%, while it reached 10.6% among women.
The country's labour force in the month totalled 915,516, out of whom 836,674 were in paid employment, which is 0.4% more than in October and 2.2% more than in November 2005.
17
Slovenia Loses 20 Spots on Economic Freedom Index
The overall score of 63.6% gives it a combined rating of "moderately free"
Slovenia has slid 20 places on the Index of Economic Freedom for 2007 and ranks 58th out of
157 countries surveyed by the Heritage Foundation, a Washington think tank, and the Wall
Street Journal. The overall score of 63.6% gives it a combined rating of "moderately free".
The score, gathered by combining ten economic freedoms, places Slovenia 27th in Europe and gives it a score below the regional average of 67.5%. However, this is still better than the world average, which stands at 60.6%.
According to the report, which was released on Tuesday, 16 January, "Slovenia enjoys high levels of business freedom, investment freedom, trade freedom, and freedom from corruption". However, the country "is weak in freedom from government, labour freedom, and property rights."
The report further states that the country's labour market is "highly rigid", while the judiciary
"suffers from understaffing, long delays in case resolution, and traces of corruption".
Leading the world regarding economic freedoms is Hong Kong with a rating of 89.3%, while
North Korea is placed at the bottom with 56.5%.
Compared to last year when Slovenia was ahead of such European economic giants as France and Italy and EU newcomers Poland, Hungary and Latvia, Slovenia did somewhat worse this year.
While Estonia (ranked 12th) remains the best of the 2004 EU newcomers, Slovenia also finished behind Latvia (41st) and Hungary (44th), while remaining ahead of Poland, which took 87th.
The countries of the former Yugoslavia all fared worse than Slovenia, with Macedonia taking
71st place, Croatia was 109th and Bosnia-Herzegovina came in as 115th.
New Methodology Means Slovenia Steady on Economic Freedom Index
A methodological revision means Slovenia's ranking as 58th on the Index of Economic
Freedom for 2007 is in fact the same as its ranking from 2006, a Washington think tank has told STA
A methodological revision means Slovenia's ranking as 58th on the Index of Economic
Freedom for 2007 is in fact the same as its ranking from 2006, a Washington think tank has told STA.
Although the country's original 2006 rating (under the old methodology) was 38th, this cannot be a basis for a direct comparison to this year, which is why the data for last year was revised.
Applying the new standards to the 2006 survey, Slovenia was 58th, the Heritage Foundation explained for STA on Wednesday, 17 January.
This means that Slovenia's position was steady in the two years and that the country did not lose 20 places, Anthony Kim of the Heritage Foundation told STA.
According to Kim, the main novelty is the inclusion of labour market freedom, a subindex based on World Bank data.
As labour market freedom is one of Slovenia's weak points, Slovenia's revised ranking was lower than its initial rating.
The new methodology resulted in numerous countries losing their places for 2006. Poland dropped by 28 spots, Italy by 21 and Croatia by 50 places.
Some countries meanwhile gained: New Zealand for example finished six places higher at number three.
Slovenia's overall score of 63.6% gives it a combined rating of "moderately free". The score, gathered by combining ten economic freedoms, places Slovenia 27th of 41 European countries and gives it a score below the regional average of 67.5%. The world average stands at 60.6%.
18
According to the report, which was released on Tuesday, 16 January, "Slovenia enjoys high levels of business freedom, investment freedom, trade freedom, and freedom from corruption". However, the country "is weak in freedom from government, labour freedom, and property rights."
The report further states that the country's labour market is "highly rigid", while the judiciary
"suffers from understaffing, long delays in case resolution, and traces of corruption".
Leading the world regarding economic freedoms is Hong Kong with a rating of 89.3%, while
North Korea is placed at the bottom with 46.5%.
While Slovenia finished behind Latvia (41st) and Hungary (44th), it remained ahead of
Poland, which took 87th spot.
The countries of the former Yugoslavia all fared worse than Slovenia, with Macedonia taking
71st place, Croatia 109th and Bosnia-Herzegovina coming 115th.
The report is published by the Heritage Foundation and the Wall Street Journal.
19
FINANCE
Almunia, Bajuk Optimistic About Slovenia's Euro Future
European Commissioner for Economic and Monetary Affairs Joaquin Almunia told the press in Ljubljana that Slovenia could now reap the rewards of the euro, but would also have to address the main challenges that lie ahead
European Commissioner for Economic and Monetary Affairs Joaquin Almunia told the press in Ljubljana on Monday, 15 January that Slovenia could now reap the rewards of the euro, but would also have to address the main challenges that lie ahead. Finance Minister Andrej Bajuk meanwhile highlighted the pension system as the toughest challenge facing Slovenia.
Almunia thanked Slovenia for its successful bid to join the eurozone, labelling the achievement extremely important for the EU, given that Slovenia was the first country to take this leap following the beginning of the single currency's circulation in 2002.
He was speaking during a visit to Slovenia as part of which he will be taking part in this afternoon's ceremony to usher in the euro.
Reiterating the advantages of eurozone membership, Almunia said that upholding these also required future efforts, especially with regard to improving the functioning of all the markets.
While saying that labour costs across the eurozone needed to be brought under control, he stressed that this did not mean reducing nominal wages. "Not at all, we cannot compete with other countries by reducing nominal wages..., but rather by improving productivity," he said.
Touching on the need for long-term sustainability of public finances, Almunia pointed out that Slovenia would in the long run have to face serious challenges because of its ageing population. Additional measures and a sustained strategy are called for in this respect, he said.
Bajuk said that the main challenge was clear - the demographic situation in Slovenia, which required an open public debate. "This cannot be solved overnight...but I believe that we are on the right path."
"It is high time that Slovenia becomes involved in the debate on where we stand, what our future looks like and what can be done in order to provide our children with a future similar to the situation today," Bajuk said.
Bajuk added that Slovenia also had reasons to feel confident, pointing to projections putting
Slovenia's economic growth in 2006 above 5%. According to him, economic growth will have a substantial role in helping to reduce future public finance deficits.
Slovenia Told to Tackle Population Ageing
Slovenia deserves praise for the adoption of the euro, but it needs to be mindful of the challenges ahead such as the ageing of population and the long-term sustainability of public finances
Slovenia deserves praise for the adoption of the euro, but it needs to be mindful of the challenges ahead such as the ageing of population and the long-term sustainability of public finances, the participants of a panel at the Euro Conference Slovenia 2007 agreed on Monday,
15 January.
Servaas Deroose, the head of the directorate for the macroeconomy of the eurozone and the
EU at the Economic and Financial Affairs Directorate, said the euro is improving Slovenia's reputation but it also entails challenges for fiscal policy.
Slovenia faces fiscal policy challenges in order to tackle pressures on the budget that are related to the ageing of the population, he told the panel on the economic outlook for the enlarged European Monetary Union (EMU).
20
Finance Ministry State Secretary Ziga Lavric was sanguine, saying that Slovenia was aware of these issues and preparing appropriate solutions, whereby it was looking to achieve
"national and social consensus".
The EMU represents additional pressure to accelerate the necessary structural reforms. The tax reform will reduce budget revenues, but the government will save and reduce its spending,
Lavric said.
Andrej Rant, deputy governor of the Slovenian central bank, said that inflation and the sustainability of public finances remained the main challenge. "Poor judgment today can jeopardise Slovenia's competitiveness tomorrow," he said.
Economist Mojmir Mrak meanwhile thought that macroeconomic stability alone was not enough for economic growth. What is needed is the fulfilment of Lisbon Strategy commitments and the realisation that fiscal policy has become more important with eurozone entry.
As Deroose put it, eurozone entry is a great achievement and cause for optimism, but it is not the answer to good living standard. It should just be one of the instruments for further fiscal and structural reforms, he said.
Public Key to Successful Euro Adoption, Says Panel
The key to the success of the adoption of the euro in Slovenia in addition to the technical preparations has been cooperation of the public
The key to the success of the adoption of the euro in Slovenia in addition to the technical preparations has been cooperation of the public, a panel on initial reactions to the euro in
Slovenia concluded on Monday, 15 January.
Jose Manuel Gonzalez-Paramo, member of the Executive Board of the European Central
Bank, noted that the truly successful operation may be attributed to a large extent to the borrowing of best practices from the 2002 cash changeover.
Slovenia opted for long and early dual pricing, it embarked on an early and extensive communication campaign, it put in place price monitoring teams and it had a short period of dual circulation (which ended on Sunday, 14 January), he told the final panel of the Euro
Conference Slovenia 2007 in Ljubljana.
Gonzales-Paramo praised the communication activities, in which the ECB played a
"supporting role". The EBC carefully prepared the material, which was later distributed in
Slovenia, mindful of the "local touch" and the fact that "less information can be better", he said.
Also crucial, according to Breda Kutin, the head of the Slovenian Consumers' Association, was the fact that the consumer organisation took part in the preparations from their earliest phase, including in the drafting of laws.
Kutin said that the euro changeover has had an unexpected impact in Slovenia: her organisation, which blacklists unwarranted price hikes as part of the Pricewatch project, received 750 notifications of price hikes. This is a big step for Slovenians, who are used to keeping their discontent to themselves, she explained.
Marjan Kramar, the chairman of Slovenia's largest bank, NLB, said the adoption of the euro had become a reference project for the country as well as the bank, considering the number of queries NLB gets from abroad.
Kramar said it was hard to evaluate the financial impact of the changeover on the bank, but a fact is that the bank will lose revenues from transactions and foreign exchange. The only way it can plug this gap will be through increasing the scope of operations, he said.
He noted that it was currently hard to see the benefits the bank will have with eurozone entry.
However, the state promised to be mindful of fiscal discipline and inflation, which alone makes life in the eurozone more positive.
21
Moreover, the euro will boost people's confidence, which is good for retail banking, one of the biggest business segments for NLB.
Darko Bohnec, vice-governor of the central bank, Banka Slovenije, presented technical preparations concerning the frontloading and sub-frontloading of cash to banks and businesses, where the central bank encountered an interesting phenomenon.
The central bank has put only EUR 200m into circulation, about one quarter of the value in tolars that was in circulation before the changeover. People bought some EUR 100m at exchange offices before the changeover but they already had about EUR 500m at home, probably money left over from trips abroad.
On the day the fortnightly period of dual circulation ended, almost all tolars have already been delivered to banks.
As central bank Governor Mitja Gaspari explained to the press on the margins of the conference, 90% of tolars in circulation has been collected by banks by the end of the period of dual circulation, while only some SIT 10bn-worth (EUR 41.7m) remain in the pockets of consumers.
Petrol Prices Drop
Regular unleaded went down by EUR 0.034 to EUR 0.940, with premium selling for EUR
0.952, EUR 0.035 cheaper
As oil prices on the world markets continue to drop, petrol is cheaper in Slovenia as of
Tuesday, 16 January. Regular unleaded went down by EUR 0.034 to EUR 0.940, with premium selling for EUR 0.952, EUR 0.035 cheaper.
Diesel is EUR 0.032 cheaper at EUR 0.892, whereas heating oil went down by EUR 0.032 to
EUR 0.531.
Petrol prices are adjusted every two weeks to oil prices and the exchange rate of the US dollar.
Slovenians Biggest Investors at Banja Luka Stock Exchange
Slovenian companies and individuals were the biggest investors at the Banja Luka Stock
Exchange (BLSE) in 2006, investing EUR 36.9m in securities
Slovenian companies and individuals were the biggest investors at the Banja Luka Stock
Exchange (BLSE) in 2006, investing EUR 36.9m in securities. They were followed by
Croatian investors, who bought EUR 16.4m worth of securities on the BLSE last year,
Croatian web portal Banka Magazine reports citing the BLSE central registry.
In 2006, 844 new foreign investors from 23 countries entered the capital market of the
Republic of Srpska, the Serbian entity in Bosnia-Herzegovina, increasing the number of foreign investors at the BLSE to 2,965.
Slovenian investors accounted for almost half of all foreign purchases of securities listed on the BLSE, which amounted to EUR 74m, 38% of all turnover on the bourse.
Besides Slovenian and Croatian investors, investors from Serbia and Montenegro also featured highly on the BLSE, buying securities worth EUR 7.4m.
State-Run Fund Gets EUR 32m from Sale of 8 Stakes
The state-run Restitution Fund (SOD) decided to sell eight out of the 30 investments it offered at a tender in October 2006
The state-run Restitution Fund (SOD) decided to sell eight out of the 30 investments it offered at a tender in October 2006. The fund, which pays out state compensation to war victims and in denationalisation cases, got EUR 31.9m through the sale, SOD said on Tuesday, 16
January.
22
The lion's share of the funds (EUR 27.6m) was raised through the sale of the fund's 7.1% stake in technical goods trader Merkur.
Other notable sales included a 21.38% stake in hotel management company HTP Simonov
Zaliv (EUR 1.54m), a 8.82% stake in poultry producer Jata Emona (EUR 1.18m) and a 20% stake in printer and publisher Grafika Soca (EUR 904,000).
The money will be used to reimburse denationalisation claimants, with the amount of funds for such claims expected to stand at EUR 196m in 2007.
SOD director Marko Pogacnik expressed great pleasure with the money raised, as well as with the transparency and the equal treatment of bidders.
This is the way that SOD will continue withdrawing from the economy in the future,
Pogacnik stated in a press release.
But the state-run fund has another ace up its sleeve, as it will continue investing its liquid assets. Such a strategy has proven as extremely successful in 2006, as the fund managed to reduce its deficit for reimbursing claims by EUR 309m to EUR 150m in the year alone.
SOD now manages investments in 95 companies.
Slovenia's No 3. Bank Gets EUR 120M from Investors
Abanka Vipa, Slovenia's third largest bank by assets, made a successful international roadshow which netted it EUR 120m from various European investors
Abanka Vipa, Slovenia's third largest bank by assets, made a successful international roadshow which netted it EUR 120m from various European investors, the bank said in
Ljubljana on Wednesday, 17 January.
The money, invested mainly by British (39%), Italian (15%) and Swiss (10%) investors, will enable Abanka to issue bonds for the financing of a loan, the bank said. The transaction is to be completed in January.
This is the first international issue of bonds for the bank and the first Slovenian international bonds issue following the 1 January euro changeover, the press release also reads.
Abanka Vipa posted profit after tax of EUR 20m for 2005, an increase of 17% year-on-year.
KAD Earns EUR 66.7m with Sale of Stakes in Five Companies
Most of the money (EUR 64.7m) came from the sale of the 16% stake in technical goods retailer Merkur
The state-run Pension Management Fund (KAD) earned EUR 66.7m with the sale of stakes in five of the 30 companies that it decided to offload in October. Most of the money (EUR
64.7m) came from the sale of the 16% stake in technical goods retailer Merkur, KAD said on
Tuesday, 16 January.
Apart from Merkur, KAD successfully offloaded stakes in transport company Avrigo, poultry producer Jata Emona, packaging manufacturer Embalaza and construction company
Gradbeno podjetje Bohinj.
The fund will invest the money in line with the investment policy and in order to secure additional funds for the pension purse.
The procedures were carried out in a transparent way and all bidders were treated in an equal fashion, KAD chairman Tomaz Toplak wrote in a press release.
The fund will continue its withdrawal from the economy by maximising prices, the press release reads.
Ljubljana Stock Exchange
The main indices closed in the black: the benchmark SBI 20 was up 19.49 points to 6,826.08, with the blue chip SBI TOP up 9.52 points to 1,596.11
23
After a bullish start to the year and the boost stocks received from a fresh inflow of euros, the stock market cooled off last week, although growth shows no signs of abating. The main indices closed in the black: the benchmark SBI 20 was up 19.49 points to 6,826.08, with the blue chip SBI TOP up 9.52 points to 1,596.11.
Drug maker Krka set the pace for the other big names on the Ljubljana Stock Exchange.
Having made hefty gains on Monday, 15 January and Tuesday, 16 January, it cooled off in the second half of the week to close at EUR 872.15, 1.8% higher. Krka saw deals worth EUR
15.25m.
With a turnover of EUR 4.77m, Telekom Slovenije added 1.97% to EUR 330.29, whereas energy company Petrol gained 1.58% to EUR 539.51 on deals worth EUR 4.5m.
Some of the smaller items were less successful: chemical and tourism conglomerate Sava shed 2.44% to EUR 224.97, tourism and food holding Istrabenz was down 3.33% to EUR
47.74 and spa operator closed 7.69% lower at EUR 180.
The market was envigorated on Friday, 19 January by the revelation that Emona Obala, the cash strapped retailer and wholesaler which has lately earned the reputation of a penny share, was acquired by the company Orbico.
The acquisition of over 50% in the cash-strapped company prompted the LJSE management to suspend trading in the share on Friday, 19 January.
Orbico paid EUR 7.5 per share at an auction, putting the value of the acquired stake at EUR
6.6m, while the share is valued at EUR 2.97 on the LJSE.
The free market was not as liquid and most of the major investment funds took a hit, which sent the PIX investment fund 43.82 points to 5,509.24. The bond BIO index shed 0.58 points to 119.13.
Brokers wrapped up deals worth EUR 59.77m, with block deals accounting for 32% of the total turnover.
24
REGIONAL INFORMATION
Slovenian Municipalities Lagging Behind in E-Administration
Only around a fifth of municipalities in Slovenia use state e-services and there is no unified systematic approach to the issue, participants of a panel organised by the Association of
Slovenian Municipalities said
Only around a fifth of municipalities in Slovenia use state e-services and there is no unified systematic approach to the issue, participants of a panel organised by the Association of
Slovenian Municipalities said in Velenje on Tuesday, 16 January.
Marjan Turk of the department for the information society at the Higher Education, Science and Technology Ministry said that one of the reasons that state e-services were so rarely used was the protection of personal data.
Smaller municipalities are yet to adopt regulations on the protection of personal data, and are thus unable to electronically access information from the central population registry, Turk explained.
Because the state has not tackled the issue systematically, municipal IT systems are very diverse, Turk said. He said municipalities should cooperate more closely with the Public
Administration Ministry and the government Office for Local Government and Regional
Development.
Municipalities already use the state's e-services. The panel was acquainted with the free application for e-kindergartens and access to statistical and surveying data as well as central population registry.
Velenje city administration director Andreja Kadic explained that municipalities do not have access to all the databases they need. Therefore they wish that the state edit the registries so that the municipalities are able to use them.
She also called for cooperation between municipalities and the ministries in creating the databases.
In her opinion the Velenje municipality deserves the name e-municipality since it offers numerous free e-services.
25
BRANCH INFORMATION
Ministry Says Energy Efficiency in Slovenia Could Be Improved
Slovenia's poor energy efficiency, highlighted in the 10 January report by the European
Commission, is the consequence of the structure of manufacturing in Slovenia
Slovenia's poor energy efficiency, highlighted in the 10 January report by the European
Commission, is the consequence of the structure of manufacturing in Slovenia. The country also has a lot of reserves for increasing efficiency, the Environment and Spatial Planning
Ministry told STA on Tuesday, 16 January.
Energy efficiency could moreover be improved through measures which to a large extent do not present a financial burden as the investment pays off in a short time.
The ministry also says it carries out numerous programmes for increasing energy efficiency.
These include the 2007-2013 Sustainable Energy Programme, which will be co-funded by the
European Cohesion Fund.
The programme deals with energy efficient renovation and construction of low-energy buildings, improving the efficiency of the use of electricity across all sectors and with modern distributed energy supply systems.
Asked whether the EU's plan to reduce CO2 emissions by 20% by 2020 seems ambitious enough, the ministry said that while the targets are promising, they could quickly get diluted in the process of adoption due to different economic interests by various countries.
The ministry additionally stressed the need to uncouple GDP growth from the increase in the use of energy and stressed that the key to reducing CO2 emissions lies in reducing transportrelated emissions.
The Commission's report reveals that Slovenia used 301 tonnes of crude oil equivalent per unit of GDP (one million euros) in 2004, whereas the EU average was 185 tonnes.
The ministry responded that, apart from the 15 old EU members, only Cyprus and Malta have better energy efficiency than Slovenia among the 10 countries that joined the EU in 2004.
Electric Energy Expert Rejects Necessity of Nuclear Energy in Slovenia
Amidst debates on energy dependency and plans to build a second reactor at the Krsko
Nuclear Power Plant, an energy expert has come out with the claim that Slovenia does not need nuclear energy but rather better electricity supplies
Amidst debates on energy dependency and plans to build a second reactor at the Krsko
Nuclear Power Plant, an energy expert has come out with the claim that Slovenia does not need nuclear energy but rather better electricity supplies. "Nuclear energy is an option, but the claim that it is necessary is inappropriate," Mihael Tomsic told Mladina.
Tomsic, who works at the Centre for Energy Efficiency at the research institute Jozef Stefan
Institute, told the weekly that the 2004 National Energy Programme did not envisage any nuclear activities until 2020. This programme was drafted based on in-depth research and the nuclear option did not come up as a necessity.
Slovenia also needs to tackle nuclear waste and reach agreement with Croatia, which owns half of the Krsko N-plant. A new power plant should not be in exclusive Slovenian ownership, what is more, it should not be state owned, as it needs to be competitive, he said.
According to Tomsic, Slovenia (which gets 40% of its electricity from nuclear energy) could refrain from building a second reactor if it improved the use of water and biomass for energy generation. Wood could replace heating oil and gas for heat generation, and the saved fossil fuels could be used for power generation.
26
Tomsic also finds absurd the idea that Slovenia could become an exporter of energy, considering the limited resources. "We could build a few nuclear plants and produce enormous amounts of energy, but why? There is nothing wrong if Slovenia permanently imports 10, 20 or even 30% of electricity...we can get it from all sides."
Tomsic was also critical of the privatisation of the energy sector, wondering how two stateowned companies would compete in the market. He believes the division has to do with the coal lobby from Velenje, which is backed by the utility HSE, and the lobby of Economy
Minister Andrej Vizjak, who wants to develop the Posavje region around the Krsko N-plant.
It is problematic, he said, that the authorities are taking great investment decisions such as the construction of a sixth block of the Sostanj coal-fired plant. "This will cement the coal option for the next 40 years."
Electricity Privatisation Plan Comes Under Fire at a Panel
The government model for privatising the electrical energy sector, presented by Economy
Minister Andrej Vizjak, came under fire from participants in a panel on the issue
The government model for privatising the electrical energy sector, presented on Thursday, 18
January by Economy Minister Andrej Vizjak, came under fire from participants in a panel on the issue. The critics believe the plan could make Slovenian economy dependent on decisions by foreign owners.
Vizjak presented the plan that calls for reorganisation to be followed by privatisation at a meeting organised by the Slovenian association of electricity experts.
The minister said that the reorganisation would result in two energy groups, one headed by power producer HSE and the other by Gen energija.
Vizjak believes that such a division would result in better investment policies of both power producers and bring real competition to the electricity market.
The first phase of privatisation (to be carried out in 2008 and 2009) would include a sale of a
26% stake to a strategic investor. The state would by then still retain 51%, while domestic investors could get between 5% and 10% and the remaining 13% to 18% could be acquired by portfolio investors.
Three to five years later the state would keep a controlling 26% stake, the strategic investor would be entitled to between 46% to 49%, domestic investors up to 10% stake and portfolio investors to between 18% and 24% share.
The plan was criticised by economist Maks Tajnikar, who does not believe setting up two state-owned holdings can bring competition. Tajnikar also opposed the sale of state stakes in power producers.
He though believes in the need to privatise power distribution companies and is in favour of public-private partnerships in constructing new power plants.
Ferdinand Gubina of the Ljubljana Faculty of Electrical Engineering meanwhile does not believe that privatisation would deal with the challenges of the Slovenian electricity sector, such as reliable supply and efficient use of energy.
He wondered whether the sale of power producers would make the Slovenian economy dependent on decisions taken by foreign companies.
27
COMPANIES
Carmaker Revoz Exceeds Planned Production in 2006 by 19%
Slovenian carmaker Revoz produced a total of 153,103 Renault's sub compact Clio cars last year
Slovenian carmaker Revoz produced a total of 153,103 Renault's sub compact Clio cars last year, 19% more than planned, the company said in a press release on Monday, 15 January.
This was due to high demand on the market for the model, the company added.
The demand also resulted in the company introducing a night shift in late November 2006.
Revoz remained the only Renault factory making the second generation of Clios for the
European market after the French-based Flins plant started making third generation Clios in mid-2005.
The night shift, which employs about 400 workers, enabled the company to increase its daily output to a total of 750 cars by 22 December.
Revoz produced a record 177,103 Clios in 2005, while 2006 is the company's second-best year in terms of the number of produced cars.
Rogaska Glassworks Becomes Member of Elite Group
The Steklarna Rogaska glassworks has received an important boost to its image abroad by being accepted into the prestigious American Academy of Hospitality Sciences (AAHS)
The Steklarna Rogaska glassworks has received an important boost to its image abroad by being accepted into the prestigious American Academy of Hospitality Sciences (AAHS).
The company, which only recently emerged from bankruptcy protection, is expected to benefit from the honour since a large number of wealthy consumers buy services and products recommended by the AAHS.
AAHS member Vladimir Kraljevic handed the Five Star Diamond Award to company chairman Robert Licen at a ceremony on Sunday, 14 January, the company said in a press release on Monday, 15 January.
The company from Rogaska Slatina is the only company from Slovenia and the region in the
AAHS, which is headed by American billionaire Donald Trump, husband of the Slovenian model Melania Knauss.
Steklarna Rogaska is proud to present its trademark and glassworks to demanding clients, such as the members of the academy, the press release says.
It is clear that our company wants to position itself in the most demanding markets, and entrance to this elite club marks the beginning of our efforts in that direction, Licen told the ceremony.
He added that the next step in the promotion of the high-end "Rogaska 1665" trademark of crystal glass products was the opening of boutiques in Ljubljana and Maribor.
Vladimir Kraljevic is a longtime friend of Donald Trump, who as an authorised AAHS member can put forward a new member, which must meet strict criteria of the academy.
Simobil Increases Market Share to 24.9%
Simobil, the second largest wireless operator in Slovenia, had 420.900 customers at the end of 2006, which is a 17% increase year-on-year
Simobil, the second largest wireless operator in Slovenia, had 420.900 customers at the end of
2006, which is a 17% increase year-on-year, the company said in a press release on Tuesday,
16 January. Simobil held a 24.9% market share, up from 22.7% the year before.
28
The number of pre-paid customers decreased in the same period by 2.3% to 178,800, while the company increased the number of subscribers by 37% to 242,100.
The share of subscribers was 57.5%, compared to 49.1% the year before.
In the last quarter of 2006 Simobil acquired 15.000 new subscribers.
Simobil chairman Andreas Maierhofer told STA that the company was satisfied with the results especially with the fact that "the community of our subscribers is expanding".
"The growth is based on our strong presentation and considerable investments in the market", said Maierhofer, adding that the company had room for further improvement.
Simobil will publish the complete business results for 2006 in the beginning of March.
DARS Spent EUR 477.8M on Motorway Construction in 2006
The Motorway Company (DARS) constructed EUR 477.8m worth of motorways and other roads in Slovenia in 2006, meeting 99% of the national motorway programme for 2006
The Motorway Company (DARS) constructed EUR 477.8m worth of motorways and other roads in Slovenia in 2006, meeting 99% of the national motorway programme for 2006,
DARS chairman Rajko Sirocic told the press on Wednesday, 17 January.
Sirocic was pleased with the mild winter, as it enabled the company to make up for the delays in construction, caused by the harsh weather conditions last winter.
The company's construction plan for 2007 is currently mulled by ministries and is expected to amount to EUR 550m, EUR 50m less than the original plan, drafted in October, Sirocic added.
The plan calls for the construction of the Maribor-Lenart section, a part of the Prekmurje section in NE part of Slovenia.
DARS also wants to complete the sections between Hajdina and Ptuj (NE), the connecting road to the seaport of Koper (SW) and the Tabor-Barnice tunnel in western Slovenia.
It is moreover committed to completing the motorway section Sentvid-Koseze, in a bid to speed-up traffic at the northern thoroughfares to Ljubljana.
The EUR 263m section, which includes a one-kilometre tunnel, is the most demanding unfinished section in 2007, added DARS management member Abdon Peklaj.
Sugar Plant Reservoirs to Store Oil Stocks
The only Slovenian sugar plant will lease its free reservoirs to the Agency for Compulsory Oil
Stocks for the storage of heating and residual fuel oil
The only Slovenian sugar plant will lease its free reservoirs to the Agency for Compulsory Oil
Stocks for the storage of heating and residual fuel oil. The signing of the relevant document on Wednesday, 17 January is seen as the first step towards restructuring in Tovarna sladkorja
Ormoz, which is scrapping sugar production this year.
Under the letter of intent between the company and the agency, the bulk of the storage capacities available after the scrapping of sugar production will be leased out.
This is a total of 12,500 cubic metres of room in two reservoirs. One, which has a capacity of
5,000 cubic metres and currently stores residual fuel oil, needs only minor technical adjustments and could be rented out within a few months.
The other one, with a capacity of 7,500 cubic metres, is currently used for the storage of molasses, which means it would need to get a permit to store fuel. The plant could obtain such a permit within a year.
Apart from technical adaptations, the condition for the plan to be implemented is the financial consolidation of the company since the agency as a public institute cooperates only with companies that are financially stable.
29
The agency, ZORD, maintains 90-day oil stocks in agreement with the relevant EU directives.
For Slovenia, which is fully dependent on oil imports, this is a very important component in the policy of ensuring secure oil supply.
Out of the total of 547,165 tonnes of oil derivatives, 71% of stocks are stored in Slovenia and the remaining 29% abroad. ZORD is trying to ensure that as much of the oil stocks as possible are stored in Slovenia in case of a crisis.
Marjan Gams of ZORD pointed out at the signing that the Ormoz reservoirs are valuable foremost because of their location, as the agency is also seeking to disperse the reserves around the country.
Tovarna sladkorja Ormoz director Jurij Dogsa meanwhile said that this was only the first, although a very important step in the restructuring of the company.
He announced that more similar moves are to follow as the factory was considering the option of producing bioethanol. According to Dogsa, talks have also been launched with a German company on the possibility of the factory taking up the manufacture of car undercarriage.
Tech Company Celebrates Landmark
Slovenian tech company Instrumentation Technologies celebrated the sale of 1,000 Libera electron beam position processors, which makes it a leader in the market for particle accelerator instruments
Slovenian tech company Instrumentation Technologies on Wednesday, 17 January celebrated the sale of 1,000 Libera electron beam position processors, which makes it a leader in the market for particle accelerator instruments.
The Solkan-based company has recently supplied Liberas, which cost some EUR 10,000 apiece, for particle accelerators in France, Great Britain, Australia, Spain and China.
Director Rok Ursic told the press that the SSFR accelerator in Shanghai would be equipped with 195 Liberas and the ALBA in Barcelona with 165.
According to Ursic, five particle accelerators in Europe, the US and Asia were also mulling installing their products.
In conjunction with The Trieste-based Sinhrotron, the company is already developing the next generation of products to address the needs of hadron accelerators including CERN and GSI.
The company, which employs 20 people, posted a pre-tax profit of EUR 0.4m for last year on sales of EUR 2.34m.
"This company can be a role model, as it builds on know-how, innovation and cooperation,"
Economy Minister Andrej Vizjak said.
Vizjak said Instrumentation Technologies was evidence that Slovenia is in lockstep with global technological achievements even though applicative science is being neglected.
Slovenia's Top Dairy Dismisses Chairman
The move was made in agreement between the supervisors and Vehovec, who was serving his second term as the dairy's CEO
The supervisory board of Ljubljanske mlekarne, the country's largest dairy, dismissed the company's chairman Matjaz Vehovec on Wednesday, 17 January. The move was made in agreement between the supervisors and Vehovec, who was serving his second term as the dairy's CEO.
According to a press release issued by the supervisors, a new chief exec will be named by 1
February. The new CEO will continue to pursue the strategy confirmed by the supervisors.
The company added that during Vehovec's term in office, the dairy managed to thoroughly modernise its production line and retain market shares on the domestic market for a majority of products, and also began expansion to markets abroad.
30
The company's strategy now calls for investments into marketing and development, which should allow the dairy to get out of the red in the coming years, the press release also reads.
Vehovec will remain employed at Ljubljanske mlekarne for now.
The company said in late 2006 that it expects its loss for 2006 to stand at EUR 2.5m due to
EU accession and the liberalisation of Slovenia's food market.
Marjan Bolka Appointed CEO of Troubled Casino Portoroz
The appointment comes after the company's two-member management board stepped down a week ago, citing personal reasons
The supervisory board of gaming chain Casino Portoroz appointed on Wednesday, 17 January
Marjan Bolka the company's new chairman. The appointment comes after the company's twomember management board stepped down a week ago, citing personal reasons.
The supervisory board also discussed the January-November 2006 business results and
December estimates and ascertained that they fall short of plans, according to a press release from the company.
To add to its troubles, the company is facing a lawsuit by 100 employees who are demanding
EUR 4.2m in back pay.
Casino Portoroz chief supervisor Boris Zupancic will meanwhile take over as a temporary member of the management board, the press release also reads.
Zupancic told STA that he would perform his duties for two months at the most, until a new permanent management board member is appointed.
The supervisors are looking for a financial expert, Zupancic added.
The new management board would study the current situation, look for causes for the current financial troubles and draft a strategy for the future within 100 days, Zupancic added.
Bolka has so far worked for rival Hit, Slovenia's largest casino operator.
Iskra Avtoelektrika Opens EUR 8.7M Lab and Plant
The EUR 8.7m investment consists of mechatronics, a new production programme, and a research and development laboratory
Iskra Avtoelektrika, the Sempeter pri Gorici-based maker of electronic components for the car industry, opened a new laboratory and production facility on Wednesday, 17 January. The
EUR 8.7m investment consists of mechatronics, a new production programme, and a research and development laboratory.
The facilities will allow the company to solidify its market position, said chairman Ales
Nemec. He added that the company improved its business results by 25% in 2006. According to preliminary data, the company's sales amounted to EUR 164m, while the group generated sales of EUR 190m last year.
The company plans the group's sales revenues to stand at EUR 220m this year, Nemec revealed.
The new facilities will increase the company's output while the new lab will strengthen its position as a supplier of drive mechanisms and electromechanical systems with a high added value, Nemec added.
The company moreover employed some 300 workers anew last year, out of which 100 got the job in the mechatronics programme.
It plans to produce 500,000 electric motors and 180,000 stators in 2007 with a combined value of EUR 15m. The amount is to rise to EUR 30m by 2010, giving the company a 15% market share in Europe, Nemec said.
The opening of the new facilities was also attended by Economy Minister Andrej Vizjak and
Higher Education, Science, and Technology Minister Jure Zupan.
31
While Vizjak labelled the investment a confirmation of good cooperation between Slovenian companies, the region and the country, Zupan highlighted the importance of investments into knowledge, innovation and quality of Iskra Avtoelektrika's products.
The company posted profits of EUR 1.9m for 2005, down 5% year-on-year and 41% below plans. Sales that topped EUR 132.7m, a 6% rise year-on-year but 4% below plans.
Firefox Making Strong Inroads in Slovenia Browsing Market
The Mozilla Foundation's web browser Firefox has captured nearly a third of the web browser market in Slovenia, according to measurements by Iprom, a Slovenian web advertising technology provider
The Mozilla Foundation's web browser Firefox has captured nearly a third of the web browser market in Slovenia, according to measurements by Iprom, a Slovenian web advertising technology provider. By mid December 2006 the browser's market share grew to 29.5%, up
64% over January 2006.
Microsoft's Internet Explorer is still the dominant browser with 67% of the market, while the minnows Opera, Safari and Netscape account for the remaining 4%, Iprom said in a press release on Thursday, 18 January.
Yet while Internet Explorer may still enjoy economies of scale, the survey suggests that
Firefox users browse through 37% more documents on average than Internet Explorer users.
The survey, carried out with Iprom's AD Server technology, included 521,388 visitors of
Slovenian websites over the second week of December.
Meanwhile, a survey by Xiti Monitor carried out in August and September 2006 showed
Slovenia topping the rankings of Firefox users in Europe, as the open source browser was shown to have a market share of 39%.
Lek Boasts 2006 Revenues of EUR 721m
Pharmaceutical company Lek, a subsidiary of Novartis's generic arm Sandoz, posted sales of
EUR 721m for 2006, an increase of 33% over the year before
Pharmaceutical company Lek, a subsidiary of Novartis's generic arm Sandoz, posted sales of
EUR 721m for 2006, an increase of 33% over the year before. Lek said profits grew significantly, but it did not disclose the figures in a press release on Friday, 19 January.
Prescription drugs accounted for the bulk of revenues (EUR 573m), with over-the-counter drugs adding EUR 80m, pharmaceutical ingredients EUR 46m and other products EUR 22m.
The company's main market is Central and Eastern Europe, which accounts for 28% of the sales, followed by the US and overseas markets (43%) and Slovenia (9%).
Sales expanded briskly in all markets bar Slovenia, where Lek says prices have been dropping.
The company earmarked EUR 68.3m for development last year, or 9.5% of total sales.
At the end of September construction started on a new biopharmacy centre, which Lek says will cement its leading position in biopharmacy in the Sandoz group.
The facility, which is estimated at EUR 6.7m, is being built at Lek headquarters in Ljubljana and is expected to open in the autumn.
Lek's parent company, the Swiss pharma giant Novartis, posted a net profit of US$ 7.2bn on sales of US$ 37bn.
Croatian Tycoon Buys Majority Stake in Emona Obala
Orbico bought 877,854 shares in the cash-strapped Emona Obala, which gives it a stake of over 50%
32
Koper-based wholesaler and retailer Emona Obala has been acquired by Orbico, a company owned by Croatian tycoon Branko Roglic. Orbico bought on Thursday, 18 January 877,854 shares in the cash-strapped Emona Obala, which gives it a stake of over 50%.
Orbico, a wholesaler located in Ljubljana, paid EUR 7.5 per share, putting the value of the acquired stake at EUR 6.6m, Emona Obala said in a press release.
A spokesperson for Orbico told STA that the company saw Emona Obala as having more pluses than minuses despite being in the red.
"The price we paid is our assessment of the difference between the pluses and the minuses considering the synergy effects in distribution, which is Orbico's primary activity."
Investment companies Modra linija, Primorski skladi and Interfin as well as the state-run
Restitution Fund (SOD) sold their stakes at an auction on Thursday, 18 January.
SOD said in a press release that it had organised the auction along with the other sellers and invited several potential buyers, but only Orbico turned up.
Press reports on the takeover of Emona Obala prompted the operator of the Ljubljana Stock
Exchange (LJSE) to suspend trading in the share on Friday, 19 January in a bid to ensure all investors are equally informed of the news.
In the trading on Thursday, 18 January, Emona Obala shares surged 10% to EUR 2.97, which is still well below the price paid by Orbico.
According to mergers and acquisitions law, Orbico must now publish a takeover offer, which it says it will do in accordance with the law.
Stock market analyst Matej Tomazin told STA that the acquisition of Emona Obala by a strategic partner was a positive step, as "a strategic partner with substance is buying into a loss-making company."
However, he noted that Emona's 10% rise on Thursday, 18 January might have to do with insider trading. "Whether insider trading actually happened is up to the stock market watchdog to decide."
Emona Obala is in the midst of restructuring aimed at getting the company out of the red. In the first three quarters of 2006, its losses stood at EUR 5.4m, while sales dropped 25% yearon-year to EUR 26m.
As part of the efforts, the company recently put its loss-making Noc in Dan chain of roundthe-clock convenience stores up for sale. It is also selling the warehousing subsidiary BTC
Terminal Sezana.
Orbico, located in Ljubljana but in Swiss-Croatian ownership, generated revenues of EUR
37.2m in 2005. It finished the year with a profit of over EUR 1m.
33
SLOVENIA IN BRIEF
Italian Minister Calls for Joint Eco-Assessment of Gas Terminals
The environmental impact assessment of two planned gas terminals in the Italian Gulf of
Trieste must be made together with Slovenia and Croatia, especially with Slovenia, Italian
Environment Minister Alfonso Pecoraro Scanio said in an interview for the daily Dnevnik on
Monday, 15 January.
Slovenia Supports Police Cooperation Between EU Members
The majority of EU interior ministers, including Slovenia's Dragutin Mate, agreed at an informal three-day meeting in Dresden on Monday, 15 January that police cooperation in the
EU should be strengthened and supported the German proposal that the Pruem Treaty on cross-border police cooperation should be transposed into the EU legal order.
Slovenia to Take Part in Preparing Follow-up to Hague Programme
Slovenia is to take part in a special taskforce to draw up a new plan to enhance the EU as an area of freedom, security and justice as a follow-up to the current Hague Programme, which ends in 2010.
The future of the area was discussed in Dresden on Monday, 15 January by EU ministers for home affairs, among them Slovenia's Dragutin Mate.
Government Stepping Up Construction of Schengen Border Checkpoints
The cabinet confirmed on Thursday, 18 January a measure with which it intends to speed up the construction of border checkpoints ahead of Slovenia's entry into the Schengen zone.
Under the changes to the act on the construction of border crossings procedures for obtaining land and building permits for border checkpoints will be intensified, the government said in a press release.
Government Closes Consulate in Saarbruecken
The government on Thursday, 18 January decided to close the consulate in Saarbruecken, a city in southwestern Germany, and to relieve Leon Brumen of his duties as the honorary consul there. According to a press release from the Government PR and Media Office,
German regulations allow up to six consulates headed by honorary consuls, while in terms of cooperation with German federal states and Slovenian communities there it is more reasonable to open new consulates in other cities.
Belgian Ambassador Becomes Guest Star of 2006
Belgian Ambassador Jean Louis Mignot was declared the foreign diplomat of the year on
Thursday, 18 January as the largest two Slovenian media outlets oriented at foreigners pronounced the winners of Guest Star 2006 awards. The winners were selected by the readership of The Slovenia Times and the listeners of Radio Slovenia International.
Intereuropa Shareholders Dismiss a Supervisor
The shareholders of logistics group Intereuropa on Friday, 19 January dismissed supervisory board member Anton Moze. The dismissal was put forward by the state-run Restitution Fund
(SOD), which also succeeded in convincing the shareholders to appoint Moze's successor
Emerik Erzen, a sales director at catering company Eurest.
34
Slovenians from Both Sides of Border Hold Traditional Meeting
Slovenians from both sides of the Slovenian-Italian border were reassured by a government official on Saturday, 20 January about the outlook for the border area in the face of Slovenia's upcoming membership of the Schengen zone.
35
