Slovenia Business Week no. 06, February 5, 2007
Table of Contents:
HEADLINES ............................................................................................................................. 2
Chamber of Commerce and Industry of Slovenia Revises 2006 GDP Estimate Upwards .... 2
EU Report Finds No Overarching Price Hikes in Slovenia ................................................... 2
Government to Encourage FDI That Creates New Jobs ........................................................ 3
INTERNATIONAL COOPERATION ...................................................................................... 4
World Needs Global Leadership, Drnovsek and Indian PM Agree ....................................... 4
Rupel and Illy Agree 5th Transport Corridor Should Be Priority .......................................... 4
EUROPEAN UNION ................................................................................................................. 6
Parliament Moves to Speed up Construction of Border Crossings ........................................ 6
Slovenia Yet to Implement 17 Internal Market Directives .................................................... 6
Slovenia Sides with European Commission on Fruit, Vegetable Reform ............................. 6
Eurogroup Not to Take Decision over Slovenia's Labour Force ........................................... 7
LEGISLATION .......................................................................................................................... 8
Parliament Abolishes Some, Introduces Some Administrative Taxes ................................... 8
STATISTICS/FORECASTS ...................................................................................................... 9
Number of Unemployed in Pomurje Drops by a Fifth in 2006 .............................................. 9
FINANCE................................................................................................................................. 10
Petrol Prices Drop ................................................................................................................ 10
Dezelna Banka Increases Total Assets by a Fifth in 2006 ................................................... 10
REGIONAL INFORMATION ................................................................................................ 11
PM Says Provinces Will Promote Development .................................................................. 11
BRANCH INFORMATION .................................................................................................... 12
Vizjak Pessimistic About Slovenia Reaching EU Energy Goals ......................................... 12
Ski Lift Operators Unfazed by Climate Experts' Warnings ................................................. 12
TV Guide Pilot Becomes Slovenians' Favourite Periodical ................................................. 13
COMPANIES ........................................................................................................................... 14
Zlata Moneta 2 Buys Croatian Casino ................................................................................. 14
Vipa Moves to Acquire Mlinotest ........................................................................................ 14
First Vegetarian Hotel Opens in Slovenia ............................................................................ 14
Intereuropa Pushes Further East ........................................................................................... 15
State Stake in Publisher Dnevnik Sold to Delo Prodaja....................................................... 15
Leading Mobile Operator Appoints CEO ............................................................................ 15
Gorenje Says Assembly of APCs will Provide New Jobs ................................................... 16
Best Web Project Award Goes to www.planet-tus.com ...................................................... 16
Logistics Company Sells Most of Its Stake in Banka Koper ............................................... 17
Motorway Company Signs EUR 6.1m Deal For 0.5 Km Section ........................................ 17
SLOVENIA IN BRIEF ............................................................................................................ 18
Kosovo Tops Rupel-De Gucht Talks ................................................................................... 18
Slovenia Passes NATO Contact Point Embassy Role to Canada ........................................ 18
PM Wants Iztok Jarc as New Agriculture Minister ............................................................. 18
Parliament Amendments Act on Pesticides ......................................................................... 18
Gaspari Three Votes Short of Winning Second Term ......................................................... 18
Parliament Passes Act on State Property.............................................................................. 18
HEADLINES
Chamber of Commerce and Industry of Slovenia Revises 2006 GDP Estimate Upwards
The Chamber of Commerce and Industry of Slovenia estimates that Slovenia's economy
expanded by 5.1% in 2006, up from its original forecast of 4.5%, on the back of strong
investment and growth
The Chamber of Commerce and Industry of Slovenia (CCIS) estimates that Slovenia's
economy expanded by 5.1% in 2006, up from its original forecast of 4.5%, on the back of
strong investment and growth.
This year GDP growth is projected to amount to a mode moderate 4.2% or 4.3% in line with
expectations for the eurozone, Irena Rostan, the head of the CCIS's economic outlook and
policy services department, told the press on Monday, 29 January.
Favourable factors last year included a mild winter, which provided an extra boost to
construction. Although exports remain the main engine of growth overall, investment
accounted for the bulk of growth last year, having expanded by 11%, Rostan said.
Growth was also fuelled by the elimination of tax breaks on investment in equipment as of
this year, as many companies decided to invest towards the end of 2006 to take advantage of
the favourable tax treatment.
According to Rostan, investment will continue to buoy growth this year with an estimated
growth of 7% to 8% in real terms. Exports are projected to increase by 9.5% this year and
7.5% in 2008.
The CCIS expects inflation to hover around 2.6% this year and next, while the Labour Force
Survey-based unemployment rate is to be at 6.5% over the coming two-year period.
Wages are estimated to have increased by 2.4% in real terms last year, with the figure
expected to amount to 2.2% for 2007 and 2008.
According to Rostan, this means that wages will continue to outpace inflation in real terms,
however they will still lag behind productivity gains.
Joze Smole, the head of the CCIS's task force for social dialogue, said it was crucial that
wages should be adapted to the actual economic environment on an ongoing basis.
Employers and trade unions agree that wages need to grow in line with inflation and
productivity, but it is crucial that they lag behind productivity growth, which facilitates
investment in new technologies, know-how and markets, he said.
EU Report Finds No Overarching Price Hikes in Slovenia
A report by the European Commission shows that there was no overall rise in prices in
Slovenia due to the adoption of the euro, however bars, restaurants and small service
providers did hike up their prices
A report by the European Commission shows that there was no overall rise in prices in
Slovenia due to the adoption of the euro, however bars, restaurants and small service
providers did hike up their prices.
The report, which was presented to the EU's Economic and Financial Council on Tuesday, 30
January, finds that price increases in bars and restaurants in December cannot be attributed to
seasonal factors or higher input costs.
Prices were also jacked up by small service providers such as hairdressers, cleaners and repair
shops, especially in sectors where there is little competition but also in recreation, culture and
sport.
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However, the report points out that price monitoring has been quite successful: consumers
have had the chance to report any unwarranted price hikes to the Consumer Association,
which is publishing a name-and-shame list of the most exorbitant cases.
European Economic and Monetary Affairs Commissioner Joaquin Almunia and European
Central Bank president Jean-Claude Trichet noted that people had the impression prices rose
more than they actually did.
It is too bad that the impression is opposite to the actual situation, as inflation in the eurozone
is the lowest in history, they said in a statement.
Slovenian Finance Minister Andrej Bajuk said he was glad that none of the negative scenarios
had come true. The smooth transition to the euro shows that Slovenians have adopted the euro
as their new currency, he said.
Government to Encourage FDI That Creates New Jobs
The government adopted a new decree on financial incentives for foreign direct investment
The government adopted a new decree on financial incentives for foreign direct investment on
Thursday, 1 February in what Economy Minister Andrej Vizjak said was an attempt to attract
investment that would bring new jobs. According to him, EUR 8m is allocated in the budget
for that purpose for the next two years.
Vizjak told the press that the new directive would provide a basis to award incentives for FDI
following the European Commission's guidelines on regional state aid for the 2007-2013
period.
"Above all, we want investment in high value added industries," Vizjak said at the press
conference following the cabinet's session. According to him, investment should encourage
the transfer of expertise and technology as well as contribute to a more even regional
development.
New FDI are also expected to increase the synergies gained from partnership between foreign
investors and Slovenian companies and institutions, mainly with regard to the exchange of
new technologies and know-how.
While admitting that FDI in Slovenia had been modest, Vizjak pointed out that the country
competed against the broader European area, new EU members and third countries in the
neighbourhood. "This means that we must accustom subsides to the competitive environment
so as to attract high-quality FDI."
The decree envisages incentives for investment in manufacturing, services targeting the
international market and research and development. Financial incentives cannot be awarded
for investment projects exceeding EUR 50m because European Commission guidelines call
for a special state aid scheme in such cases.
Incentives can furthermore not be given out for investment in industries that are governed by
special rules of the European Commission: agriculture, fisheries, mining, steel industry,
transport, ship building, synthetic fiber industry and the arms industry.
Requests for incentives need to be submitted by foreign investors, while funds are granted to
domestic companies with at least 10% foreign ownership. The condition is that the investor or
the beneficiary are not under receivership or bankruptcy protection or in liquidation.
The lowest value of investment in manufacturing that is eligible for incentive is one million
euros, while threshold in the services and R&D sectors is EUR 500,000. The limit may be
raised considering the development level in a statistical region, a provision that is to
contribute to a balanced economic development of statistical regions.
The incentive award procedure will be run by the Public Agency for Entrepreneurship and
Foreign Investment, as a rule on the basis of a public call for tenders. According to Vizjak,
foreigners are interested mainly in investment in logistics and car parts industries.
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INTERNATIONAL COOPERATION
World Needs Global Leadership, Drnovsek and Indian PM Agree
The pair met at the sidelines of a two-day international conference entitled "Peace, NonViolence and Empowerment: Gandhian Philosophy in the 21st Century"
President Janez Drnovsek and Indian Prime Minister Manmohan Singh agreed in New Delhi
on Monday, 29 January that the world is unbalanced and lacks global leadership, the
president's office has said. In their opinion this is increasing the tensions between the rich and
the poor.
The pair, who met at the sidelines of a two-day international conference entitled "Peace, NonViolence and Empowerment: Gandhian Philosophy in the 21st Century", said that the world
lacks coordinated activities that would stop threats to the environment.
Principles of Gandhi's policy are increasingly important in today's world, for it is obvious that
big problems and crises cannot be solved with violence but only with talking and increasing
awareness, Drnovsek said.
The pair moreover stressed the urgency of UN reforms and pointed to the need to balance the
composition of the Security Council.
Drnovsek and Singh also agreed that the cooperation between the two countries should be
strengthened and that the Indian government's decision to open an embassy in Ljubljana in the
near future would contribute to this.
Singh said that Slovenia as an EU member and the EU president in the first half of 2008 is an
important partner for India.
Drnovsek also met Indian Minister of External Affairs Pranab Mukherjee, Nobel Peace Prize
winner Muhammad Yunus and the leader of the ruling Congress Party Sonia Gandhi.
Drnovsek and Gandhi agreed that the world needs new leaders like Mahatma Gandhi.
The conference, marking the centenary of the establishment of the Satyagraha, a movement
set up by Mahatma Gandhi (1869-1948) to peacefully fight discrimination and injustice,
focuses on non-violent ways of conflict resolution and peace-building, Gandhian philosophy
for the eradication of poverty, intercultural dialogue and efforts for a world without nuclear
weapons.
Some 400 participants, including statesmen, Nobel Prize winners and others, were addressed
by Sonia Gandhi and Nobel Peace laureate Mohammad Yunus, among others.
Rupel and Illy Agree 5th Transport Corridor Should Be Priority
Foreign Minister Dimitrij Rupel and Italy's Friuli-Venezia Giulia Premier Riccardo Illy
agreed that the 5th pan-European transport corridor should be completed as soon as possible
Foreign Minister Dimitrij Rupel and Italy's Friuli-Venezia Giulia Premier Riccardo Illy
agreed in Trieste on Tuesday, 30 January that the 5th pan-European transport corridor should
be completed as soon as possible. This would require speeding up the preparations, Rupel
said.
The minister added he had quizzed Illy about his Monday, 29 January statement that the
Friuli-Venezia Giulia region would support a diversion of the fifth corridor through Austria
instead of Slovenia, since he was pessimistic about Slovenia's ability to fulfil its obligations in
constructing high-speed rail infrastructure in time.
Rupel had said that he had received a satisfactory explanation about Illy's statement on
diverting the route that links the French city of Lyon with the Ukrainian border, crossing
Slovenia on the way.
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He also announced that the countries would establish a special committee for dealing with
economic issues. The committee would join environment, transport, energy and foreign
ministers from both countries.
Meanwhile, Illy explained that in 2008 Italy would build a motorway to the Skofije border
crossing and said that he expected Slovenia would finish the motorway to the Hungarian
border in roughly the same time.
Illy also called on Slovenske Zeleznice railways operator to acquire a concession for
transporting goods through the region.
Rupel also met representatives of the Slovenian minority in Italy, who expressed their concern
over the delay in the implementation of the minority protection act.
The delay was caused by Italy's failure to nominate four members of the parity board, which
is tasked with compiling the list of the Italian municipalities where the act is to be enforced.
Rupel said that he would do everything in his power to ensure promises were kept. He added
he would write to his Italian counterpart Massimo D'Alema and ask for his help in untying
this knot.
During his recent visit to Slovenia D'Alema said that Italy would enforce its minority
protection act soon and that minority issues should no longer pose a problem.
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EUROPEAN UNION
Parliament Moves to Speed up Construction of Border Crossings
Parliament passed a regulation aimed at speeding up the construction of 16 border crossings
with Croatia on what will become the Schengen border once Slovenia joins the EU's noborder zone
Parliament on Thursday, 1 February passed a regulation aimed at speeding up the construction
of 16 border crossings with Croatia on what will become the Schengen border once Slovenia
joins the EU's no-border zone.
The regulation, which was passed in emergency procedure, will facilitate procedures for
acquiring land and obtaining building permits.
This is crucial because Slovenia needs to finish all 16 border posts this year if it is to make
full use of the funds allocated by the Schengen Facility, which it secured when it joined the
EU in 2004.
The border posts to be completed this year include Bistrica ob Sotli, Zavrc, Socerga,
Petisovci, Dobovec, Rigonce, Babno polje, Petrina, Vinica, Oresje, Imeno, Ormoz, Gibina,
Razkrizje, Podplanina and Zgornji Leskovec.
Slovenia Yet to Implement 17 Internal Market Directives
There are 17 directives dealing with the EU's internal market that Slovenia still needs to
transpose
There are 17 directives dealing with the EU's internal market that Slovenia still needs to
transpose, the equivalent of 1% of all directives that should have been implemented in
national legislation by the end of 2006, according to a report by the European Commission.
This puts Slovenia well within the interim target of 1.5% that EU heads of state and
government agreed in 2001, suggests the Internal Market Scoreboard, which was released on
Thursday, 1 February. The EU average was 1.2%.
Slovenia is in a favourable position compared to other member states: Denmark and Lithuania
are at the top with only five directives left to transpose, whereas Portugal and Greece are the
biggest laggards, their backlog totalling 49 and 45 respectively.
Slovenia managed to transpose all directives older than two years, whereas 12 infringement
proceedings related to the failure to implement EU law were still open in November 2006, the
third-lowest number among the member states.
To be on track in meeting the interim goal, member states need to transpose a further 44
directives until April. By 10 November 2006 Slovenia implemented only five, to reach the
goal it needs to manage at least 31 more.
Slovenia Sides with European Commission on Fruit, Vegetable Reform
Slovenia supports a reform of the fruit and vegetable sector in the EU
Slovenia supports a reform of the fruit and vegetable sector in the EU, but the member states
are split on the European Commission's proposal that is aimed at improving the
competitiveness and market orientation of the sector.
"Old member states want to keep the existing measures in place because they are used to
them, but some of the old measures have not been producing any results," Agriculture
Ministry State Secretary Gvido Mravljak said after a debate at the EU's Agriculture and
Fisheries Council on Monday, 29 January.
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The Commission has called on producers to organise in order to boost efficiency and
competitiveness. According to Mravljak, producers have not followed the cue from retailers,
who joined forces and can now influence prices on the market.
Mravljak said there was not a single association of producers in Slovenia at the moment.
Therefore Slovenia must create all the conditions for the creation of an association of
producers, or else they will find it difficult to succeed on the EU market.
Talks also touched on interventions in the maize market, which the Commission is seeking to
eliminate altogether. According to Mravljak, Slovenia is opposed to the proposal as the
measure could be useful in case of oversupply of maize, especially following the EU
accession of Bulgaria and Romania.
Mravljak furthermore downplayed the importance of the recent outbreak of the deadly H5N1
strain of bird flu virus in neighbouring Hungary. "We are monitoring the situation on an
ongoing basis. Hungary has taken all the required measures so there are no reasons for alarm,"
he said.
Eurogroup Not to Take Decision over Slovenia's Labour Force
The head of the Eurogroup does not think the group could take any decision regarding a
lifting of restrictions on the movement of Slovenian workers in the EU now that the country
has joined the group of euro nations
The head of the Eurogroup does not think the group could take any decision regarding a
lifting of restrictions on the movement of Slovenian workers in the EU now that the country
has joined the group of euro nations.
Labour force mobility was highlighted as one of the measures that could boost the economy
of the eurozone at a meeting of the Eurogroup on Monday, 29 January, which was also
attended by Slovenia's Finance Minister Andrej Bajuk, for the first time after the country
adopted the single currency.
I fully agree that there are some good and sound arguments regarding the possibility of
opening up eurozone labour markets to Slovenian labour force, but I cannot see the Eurogroup
taking any decision in that respect, the head of the group, Luxembourg Prime Minister JeanClaude Juncker, said on Monday, 29 January.
The Eurogroup also discussed the economic situation in the eurozone, with Joaquin Almunia,
Commissioner responsible for Economic and Monetary Affairs, assessing it as distinctly
positive. According to him, growth is expected to exceed the European Commission's autumn
forecast.
Almunia also said that eurozone members generated two million new jobs last year. The
unemployment rate was reduced to 7.6% in November, which the commissioner said was the
best figure on Eurostat record.
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LEGISLATION
Parliament Abolishes Some, Introduces Some Administrative Taxes
The MPs also passed the amendments to the economic zones act and the closing balance of
the 2005 budget as the parliament continued its January session
Lawmakers endorsed on Tuesday, 30 January in a 46:22 vote the amendments to the
administrative fees act, which eliminate some and introduce new administrative fees. The
MPs also passed the amendments to the economic zones act (71:0) and the closing balance of
the 2005 budget (46:18) as the parliament continued its January session.
Finance Ministry State Secretary Andrej Sircelj said that the amendments to the
administrative fees act eliminate several such fees in tax procedures and raise the visa fee, due
to the introduction of information technology and biometrics.
Amendments to the economic zones act meanwhile change the upper limit of state aid to 30%
of eligible costs of companies, Sircelj added.
One economic zone is currently operating in Slovenia. Located in the port city of Koper, the
zone includes 55 companies.
The closing balance of the 2005 budget has meanwhile shown that the country collected
revenues worth EUR 6.8bn, 96.9% of planned revenues.
The inflation stood at the projected 2.5%, while budgetary deficit amounted to EUR 379.31m,
lower than planned, Sircelj revealed.
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STATISTICS/FORECASTS
Number of Unemployed in Pomurje Drops by a Fifth in 2006
The number of unemployed persons in the Pomurje region decreased to 8,023 by the end of
2006, a 19% drop year-on-year
The number of unemployed persons in the Pomurje region decreased to 8,023 by the end of
2006, a 19% drop year-on-year, the head of the Pomurje regional office of the Employment
Service of Slovenia Cvetka Sres told the press on Tuesday, 30 January.
In 2006, employers reported 10,506 vacancies to the Employment Service of Slovenia, which
was almost 10% more than in 2005. A total of 5,397 people found jobs in 2006, up 1.8%.
The regional office in Murska Sobota saw 7,678 newly registered unemployed persons in
2006, down 9.5% year-on-year, while 9,517 unemployed persons signed out from the register,
a 10.6% rise over 2005.
According to Sres, 1,255 persons were erased from the records in 2006 due to violations,
which is 21.7% more than in 2005.
The Employment Service spent EUR 7.4m in 2006 for active employment programmes, with
7,954 unemployed people taking part compared to 5,211 in 2005.
Pomurje still has a job shortage and an unfavourable structure of unemployed persons, since
the number of long-term unemployed and the unemployed without education remains the
highest in Slovenia, added Sres.
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FINANCE
Petrol Prices Drop
Petrol prices are adjusted every two weeks to oil prices and the exchange rate of the US
dollar
Petrol is cheaper in Slovenia as of Tuesday, 30 January. Regular unleaded went down by EUR
0.015 to EUR 0.925, with premium selling for EUR 0.934, EUR 0.018 cheaper.
Diesel is EUR 0.005 cheaper at EUR 0.887, whereas heating oil went down by EUR 0.007 to
EUR 0.524.
Petrol prices are adjusted every two weeks to oil prices and the exchange rate of the US
dollar.
Dezelna Banka Increases Total Assets by a Fifth in 2006
Dezelna banka Slovenije (DBS), a small Slovenian bank, increased its total assets by 20% to
EUR 610m
Dezelna banka Slovenije (DBS), a small Slovenian bank, increased its total assets by 20% to
EUR 610m, according to preliminary data, and reported a gross profit of EUR 3.55m for
2006, DBS chairman Drasko Veselinovic told the press on Wednesday, 31 January.
The bank is aware that the majority of indicators show the bank did not reach the industry
average in Slovenia, said Veselinovic.
Closing of gaps and surpassing the industry average are our medium-term goals, he said,
adding that the bank planned to double total assets in the next two or three years.
The profit in 2006 was considerably higher than in previous years, and the bank is
successfully keeping pace with other Slovenian banks, said Veselinovic.
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REGIONAL INFORMATION
PM Says Provinces Will Promote Development
The establishment of provinces would secure faster and more equal development, Prime
Minister Janez Jansa told local representatives gathered for a briefing on a proposed
package of legislation dealing with the formation of provinces
The establishment of provinces would secure faster and more equal development, Prime
Minister Janez Jansa told on Wednesday, 31 January local representatives gathered for a
briefing on a proposed package of legislation dealing with the formation of provinces.
The formation of provinces might raise doubts that this will be just another institution, an
intermediate level that this will only complicate things more, Jansa told mayors and other
local officials from across Slovenia.
According to him, however, solutions which will guarantee that public expenditure will not
increase, bring decision-making closer to those who the decisions affect, and contribute to
faster and more equal development, will be the answer to these doubts.
The purpose of the reform is not to hinder those who are ahead so that they wait for those who
are lagging behind. The aim is that everyone moves on faster and that those who are lagging
behind develop even faster, Jansa explained.
Provinces cannot be established only by the National Assembly or by solutions put forward
by the government. Jansa believes that cooperation of towns and municipalities is equally
important.
Jansa also explained that the establishment of provinces can contribute to full and efficient
acquiring of the European funds from the new 2007-2013 financial perspective.
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BRANCH INFORMATION
Vizjak Pessimistic About Slovenia Reaching EU Energy Goals
Slovenia will face problems in increasing the share of renewable energy in its power
consumption to 20% by 2020 as outlined by the recent EU energy strategy
Slovenia will face problems in increasing the share of renewable energy in its power
consumption to 20% by 2020 as outlined by the recent EU energy strategy, Economy Minister
Andrej Vizjak said at the sidelines of a conference on European Renewable Energy Policy in
Brussels on Monday, 29 January.
"In 2006, the share of renewable energy amounted to 14%, far from the 20% we aim for," said
Vizjak. However, he said that "we should not be too pessimistic" as "Slovenia will do
everything to achieve this goal".
In his opinion, increasing the share of renewable energy is one of Slovenia's main priorities.
He pointed to various projects in the field, including a biodiesel plant, a bioethanol project,
and investments into the use of biomass, which is to replace imported coal.
Slovenia is aware of the importance of renewable energy sources and the feed-in project, a
system for promoting the use of green energy, Vizjak added.
The feed-in system aims to promote electricity from renewable sources by tasking energy
users to buy electricity at pre-determined prices.
Vizjak labelled the system as highly suitable for promoting renewable energy sources as the
price of green electricity is between 20% and 50% higher than the price of electricity from
conventional sources.
That is why governments need to subsidize and invest in a transparent and prudent manner
into such electricity, he said.
Vizjak moreover signed an initiative on promoting green electricity with his Spanish and
German counterparts. The document is to be put on the agenda of a next EU Competitiveness
Council session.
However, Vizjak warned that "it will be hard to achieve the goals set by the EU without
utilising nuclear power", and added that nuclear energy provides a long-term answer to excess
CO2 emissions.
Ski Lift Operators Unfazed by Climate Experts' Warnings
Slovenia's ski lift operators are not concerned about the findings of an OECD study which
suggest it is highly inadvisable to invest in slopes lying beneath 1,200 metres due to the
impact of climate change on the Alps
Slovenia's ski lift operators are not concerned about the findings of an OECD study which
suggest it is highly inadvisable to invest in slopes lying beneath 1,200 metres due to the
impact of climate change on the Alps.
While several of Slovenia's ski resorts lie below that altitude, the ski lift operators remain
calm, according to a report in the daily Dnevnik on Thursday, 1 February.
"We are not afraid of these forecasts, because we believe them to be premature," the director
of the skiing centres Rogla (1050 - 1570 metres) and Krvavec (1450 - 1970 metres) was
quoted as saying by Dnevnik.
"Before far-reaching consequences set in, we do not intend to pay much attention to them. We
have to live, which means we must also invest," Srecko Retuznik added.
Goraz Bedrac of the Branik Ski Club, based at Mariborsko Pohorje (325 - 1327 metres),
prefers to base his expectations on the experience of the past 50 years, "which have brought
cold as well as warm winters".
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"This will not change much in the future. A decade usually brings five strong winters, two or
three average ones and two or three poor ones," Bedrac believes. He added that this called
only for adequate organisation and technical equipment.
Ales Bedrac, the head of Ski Lift Operators' Association, meanwhile believes the only reason
for the commotion about the lack of snow in Europe this year is that the winter set in a month
later than usual.
"While this has indeed caused a major loss of income, it is too early to speak of a disaster or
start thinking about shutting down the lifts." Bedrac added it was premature and unacceptable
to claim that in 20 years this-year's extreme January temperatures would become a standard.
TV Guide Pilot Becomes Slovenians' Favourite Periodical
According to the National Circulation Survey, TV guide Pilot was the most popular periodical
in 2006
After the long reign of the weekly Nedeljski Dnevnik and TV guide Vikend, a new name
emerged at the top of the list of the most widely read Slovenian periodicals. According to the
National Circulation Survey, TV guide Pilot was the most popular periodical in 2006.
Andraz Zorko of the company Cati, which conducted the survey, said on Thursday, 1
February that the result was not actually "such a big deal", since Vikend narrowly missed the
first place.
The first ten periodicals in 2006 contain six supplements, the tabloid Slovenske Novice, the
gossip weekly Lady and the free weekly Dobro jutro.
The highest-ranking monthly magazine on the list, Catholic publication Ognjisce, placed 12th.
The most popular new edition is the magazine National Geographic, which is read by 10% of
the population and placed 16th on the list.
The most widely read dailies are Slovenske novice (21%, 359,000 readers), Delo (11.9%,
203,000), Dnevnik (9.5%, 162,000), and Vecer (8.2%, 141,000).
The list of supplements is led by Pilot (25.6%, 437,000 readers), which is followed by Vikend
(24.8%, 424,000), Ona (21.7%, 370.000), and Delo in dom (20.3%, 347,000).
The most popular weekly is Lady (16.2%, 277,000 readers), the most popular monthly is
Ognjisce (13.4%, 229,000), while the most widely read free weekly is Dobro jutro (16.6%,
284,000).
The survey was commissioned by the Slovenian Advertising Chamber and included 150
editions read by at least 1.3% of the population, said Zorko.
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COMPANIES
Zlata Moneta 2 Buys Croatian Casino
The casino is located in the Hotel Parentium in the coastal resort of Porec
Zlata Moneta 2, the Maribor-based investment firm, said on Monday, 29 January it had
acquired Croatian casino operator Casino Parentium for 1.3 million euros.
The casino is located in the Hotel Parentium in the coastal resort of Porec. Zlata Moneta 2
acquired it from Italian owners.
The company said in a press release that the investment was interesting as the gaming tax in
Croatia is lower than in Slovenia.
What is more, the acquisition of an existing casino automatically brings a gaming licence for
the entire country.
According to Zlata Moneta 2, this opens the prospect of an expansion of gaming and raises
the potential proceeds if it decided to offload the investment.
Vipa Moves to Acquire Mlinotest
Financial firm Vipa published a takeover bid for Mlinotest, the Ajdovscina-based bread and
pasta maker, offering EUR 7.51 euros per share
Financial firm Vipa published on Monday, 29 January a takeover bid for Mlinotest, the
Ajdovscina-based bread and pasta maker, offering EUR 7.51 euros per share. The bid values
the outstanding shares at 5.8m.
Vipa directly holds 42.67% of Mlinotest, but the stake is actually 67.76% taking into account
the shares held by Vipa Holding, which it is in the process of acquiring.
The financial firm provided an unexpected twist in the battle for Mlinotest, which was
targeted by fellow bread and pasta maker Zito and the family-owned bakery Pekarna Blatnik.
It outbid both to acquire the 22% stake held in Mlinotest by the state-run KAD and SOD
funds on 5 December, in effect preventing a takeover by either Zito or Pekarna Blatnik.
Vipa followed up the acquisition by successfully purchasing some 55% in Vipa Holding,
which already owns 25% of Mlinotest.
With the acquisition of Vipa Holding, Vipa exceeded the 50% threshold and, according to
law, was forced to publish a takeover bid.
First Vegetarian Hotel Opens in Slovenia
Hotel Manzato in Rogaska Slatina will offer its visitors vegetarian food as well as
complementary medicine and spirituality services
The first vegetarian hotel in Slovenia opened the previous week in Rogaska Slatina, a town in
northeastern Slovenia known for hot springs. Hotel Manzato will offer its visitors vegetarian
food as well as complementary medicine and spirituality services, according to the hotel's
website.
The management of the hotel says the establishment will offer a variety of vegetarian food,
including organic products from local farms.
Janko Kac, director of the company Izvir, which runs the hotel, also promises visitors
treatment with sunlight, called heliopathy. Various healers are expected to start providing
their services at the hotel on February.
The hotel with 50 beds in double and triple bedrooms will be open throughout the year.
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Intereuropa Pushes Further East
The supervisory board of logistics group Intereuropa approved two investments in logistic
capacities in Russia and Ukraine
The supervisory board of logistics group Intereuropa approved two investments in logistic
capacities in Russia and Ukraine. The projects, worth over EUR 60m, are to be carried out
this year, the company said on Tuesday, 30 January.
Intereuropa will aim both investments at the transport link Moscow-Kiev. The first EUR
44.7m complex is to be build in the city of Chehov, 42 kilometres south of Moscow, while the
other, worth EUR 15.6m, will be located in the suburbs of Kiev in Ukraine.
Meanwhile, the logistics group announced further investments in the Russian market to meet
the increasing demands of companies trading with the Russian Federation.
State Stake in Publisher Dnevnik Sold to Delo Prodaja
The state-run Pension Management Fund (KAD) its 10.11% stake in newspaper publisher
Dnevnik to newspaper distributor Delo Prodaja
The state-run Pension Management Fund (KAD) sold on Wednesday, 31 January its 10.11%
stake in newspaper publisher Dnevnik to newspaper distributor Delo Prodaja. The deal netted
KAD EUR 5.4m as the stake was sold at EUR 160 per share, up from the initial EUR 110.
Delo Prodaja managed to outbid Austrian media company Styria Media International at the
sale. Styria Media International already owns 26% of the daily.
KAD chairman Tomaz Toplak said that the deal was carried out in a professional and
transparent manner and that all bidders were treated on an equal basis.
Other major owners of Dnevnik include a joint venture between the Slovenian publishing
house DZS and German media conglomerate WAZ, which holds a 51% stake, and newspaper
publisher Vecer (6.5%).
According to a survey on Slovenia's largest dailies, commissioned by broadsheet Delo in late
November, tabloid Slovenske novice leads with 90,200 copies sold, followed by Delo with
66,000 copies, Dnevnik with 47,000 and Vecer with 43,700 copies.
Leading Mobile Operator Appoints CEO
The board of directors of Mobitel elected Bojan Dremelj chairman of Slovenia's leading
mobile services provider
The board of directors of Mobitel elected on Wednesday, 31 January Bojan Dremelj chairman
of Slovenia's leading mobile services provider. Dremelj is also the CEO of telco Telekom
Slovenije.
Meeting at its first session after being appointed by Mobitel shareholders in December, the
board of directors appointed Telekom management board member Filip Ogris-Martic as
Dremelj's deputy.
The board moreover appointed Klavdij Godnic chief executive officer. Godnic formerly
served as the chairman of IT provider S & T Hermes Plus. The board also decided that the
company's executive officer would be Igor Marinsek, who was previously the director of
Mobitel's legal and human resources department.
The remaining four members are Telekom management board member Zeljko Puljic; Metod
Zaplotnik, the CFO of telecommunications company Iskratel; and two works council
representatives, Tjasa Skrilec and Brane Miklavcic.
The 8-member board operates under a single-tier management structure, a solution introduced
in Slovenia by last year's companies act. The new management is scheduled to take over in
February.
Mobitel is by far the largest wireless operator in Slovenia with a 72% market share. It is in
100% ownership of Telekom Slovenije.
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Gorenje Says Assembly of APCs will Provide New Jobs
Gorenje CEO Franjo Bobinac told the press that talks were currently underway on the
distribution of work among all the three partners in the deal: Patria, its Slovenian distributor
Rotis, and Gorenje
Representatives of home appliance maker Gorenje said on Wednesday, 31 January that the
armoured personnel carriers (APCs) purchased by the Defence Ministry from Finnish
company Patria were to be assembled in the Gorenje plant in Sostanj (N) and that the deal was
to bring in some new jobs.
Gorenje CEO Franjo Bobinac told the press that talks were currently underway on the
distribution of work among all the three partners in the deal: Patria, its Slovenian distributor
Rotis, and Gorenje.
He explained that Gorenje and Patria agreed last week that the factory in Sostanj would take
over the production of some of parts for the APCs and be responsible for the assembly, testing
and maintenance of the 135 carriers.
Slovenia's largest industrial company does not exclude the possibility of cooperation with
other Slovenian manufacturers, including defence contractor Sistemska tehnika, which had
lost out in last-year's bid for the EUR 263m deal against Patria.
According to Bobinac, there is also a chance for Slovenian companies to take over the
production of certain parts for Patria's APCs and help meet the demand in other markets.
In a related development, Defence Minister Karl Erjavec visited the chemical company Sava
and telecoms equipment manufacturer Iskratel, with which he discussed their potential
partaking in the EUR 161m worth of counter supplies from Slovenia that were agreed with
Patria as part of the APCs deal.
Meanwhile Gorenje also said that it had acquired a 51% stake in the Maribor-based waste
recycling company Surovina.
According to Gorenje, the EUR 5.79m deal is part of its environmentally-oriented strategy
related to a relevant EU directive and to the growth opportunities arising in the area of
environment and energy.
What is more, Gorenje's subsidiary Gorenje Kemis Zagreb bought 100% of Zagreb-based
Termoclean.
Best Web Project Award Goes to www.planet-tus.com
Website of trade group Engrotus's entertainment division www.planet-tus.com received this
year's Izidor award for the most innovative web project
Website of trade group Engrotus's entertainment division www.planet-tus.com received this
year's Izidor award for the most innovative web project. The award was conferred at a Net
conference in Ljubljana on Wednesday, 31 January.
Planet Tus is a rare actual social network project in Slovenia, allowing young people to create
simple profiles on the internet and connect through them, jury member Vuk Cosic explained
the decision, according to the organiser of Net conference.
The jury was also convinced by the harmony between the nature of the dialogue on the
website and Tus's operations.
Meanwhile, more than 5,000 internet users voted for their favourite and chose the website of
motorcyclist and adventurer Benka Pulko (www.BenkaPulko.com), who circumnavigated the
world on her motorcycle between 1998 and 2003.
A total of 31 projects arrived at this year's competition for the Izidor award, according to
Planet GV, a company for business and legal training.
The theme of the 6th Net conference and 3rd competition was social networking. At the
conference internet experts talked about opportunities and traps of this trend.
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Logistics Company Sells Most of Its Stake in Banka Koper
Logistics company Intereuropa sold the major part of its 10% stake in Banka Koper
Logistics company Intereuropa sold on Thursday, 1 February the major part of its 10% stake
in Banka Koper. The 8.3% stake was sold to the bank's majority owner, Italian banking group
Intessa Sanpaolo, for just under EUR 25m, Intereuropa said on Thursday, 1 February.
Intesa Sanpaolo already held a 66.21% stake in one of Slovenia's larger banks before
acquiring the 44,269 shares at EUR 563.35 per share.
According to Intereuropa, the money will be invested in the expansion of the company's
logistics network in Russia, Ukraine, Serbia and Croatia.
Intereuropa decided to sell the stake because of the favourable acquisition price. It retained a
1.66% stake in Banka Koper.
Banka Koper chairman Vojko Cok welcomed on 18 January the plans by three Slovenian
companies that hold a 10% stake each - Intereuropa, food and tourism conglomerate Istrabenz
and port operator Luka Koper - to sell their stakes in the bank.
"The (announced) withdrawal of these companies does not come as surprise, as the move was
made possible by an agreement signed five years ago", Cok said.
Motorway Company Signs EUR 6.1m Deal For 0.5 Km Section
DARS also signed a EUR 33m deal on the construction of the final section of the motorway
between the SE town of Novo mesto and the Croatian border
The Motorway Company DARS signed on Friday, 2 February a EUR 6.1m deal for the
construction of a 560-metre motorway section between the Slovenia-Croatia border crossing
of Gruskovje and the Croatian border. DARS also signed a EUR 33m deal on the construction
of the final section of the motorway between the SE town of Novo mesto and the Croatian
border.
The deal was signed in the NE town of Ptuj with Slovenian construction company SCT
Ljubljana and Austrian Strabag.
While SCT chairman Ivan Zidar and Strabag representative Dragisa Lazarevic could not name
the exact date for the launch of construction, they did say that it should be completed within
six months from that date.
The section is a part of the Slivnica-Gruskovje motorway section in NE Slovenia. The entire
section is to be completed by 2013, with the first part between Slivnica and Drazenci, worth
EUR 297m, to be finished by 2009.
DARS also signed a separate contract of the final section between the Karavanke border
crossing with Austria and the Obrezje border crossing with Croatia.
The 5.5-kilometre section near Novo mesto should be completed by mid-2008, DARS wrote
in a press release.
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SLOVENIA IN BRIEF
Kosovo Tops Rupel-De Gucht Talks
The status of Kosovo was at the forefront of talks on Wednesday, 31 January between
Slovenian Foreign Minister Dimitrij Rupel and Belgian counterpart Karl de Gucht, with both
officials praising the efforts of Martti Ahtisaari, the special UN envoy for Kosovo status talks.
Slovenia Passes NATO Contact Point Embassy Role to Canada
The Slovenian Embassy in Vienna passed on Tuesday, 30 January the role of the NATO
contact point embassy in Austria to the Canadian Embassy, the Ministry of Foreign Affairs
said. The Slovenian Embassy was the NATO contact point embassy from September 2004.
PM Wants Iztok Jarc as New Agriculture Minister
Prime Minister Janez Jansa revealed on Wednesday, 31 January that he wanted Slovenian
ambassador to Israel and seasoned diplomat Iztok Jarc to succeed Marija Lukacic as the
minister of agriculture, forestry and food. Lukacic stepped down on 10 January, citing health
reasons.
Parliament Amendments Act on Pesticides
Parliament on Wednesday, 31 January passed amendments to the plant protection products
act, which has been severely criticised by environmentalists as well as the opposition for
making highly toxic pesticides more widely available in shops.
Gaspari Three Votes Short of Winning Second Term
Central bank Governor Mitja Gaspari did not secure a second term at the helm of Banka
Slovenije in parliament on Friday, 2 February, as he failed to win the endorsement of the two
biggest coalition parties and the opposition National Party (SNS). The 43:41 vote, with three
invalid ballots, means he was three votes short of the required majority.
Parliament Passes Act on State Property
The National Assembly on Friday, 2 February passed the act on state property, which is
implementing common rules for the management of all state, municipal and regional property.
The act is expected to improve transparency and efficiency of the management of state
property across the public sector.
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