Slovenia Business Week no 12, March 26th 2007
Table of Contents:
HEADLINES ............................................................................................................................. 3
Investment Agency Gets EUR 34m for 2007......................................................................... 3
IMAD: Slovenia Needs to Shore Up Competitiveness .......................................................... 3
Futura DDB Bags 4th Best Advertising Agency of the Year Award ..................................... 4
INTERNATIONAL COOPERATION ...................................................................................... 5
Environment Minister, IAEA Boss Discuss Topical Issues ................................................... 5
MPs Discuss Kosovo, Euro in Bratislava............................................................................... 5
New Dragonja Border Crossing Opened ................................................................................ 5
Transport Minister Upbeat About Construction of Rail Links............................................... 6
Ljubljana, Skopje Sign Twin-City Agreement ....................................................................... 6
Rupel Points to Good Cooperation in Meeting Korean Delegation ....................................... 6
EUROPEAN UNION ................................................................................................................. 8
Potocnik: Future Lies in Knowledge-Based Society.............................................................. 8
Commission Takes Slovenia to Court over Rail Legislation ................................................. 8
Slovenia Earns EU's Rap on the Knuckles over Waste Disposal ........................................... 9
Government Confirms Request for Extension of Housing VAT Cut .................................... 9
EU Warns Slovenia Over Financial Transparency Directive ............................................... 10
Jansa: Berlin Statement Ups Chances for Constitution Compromise .................................. 10
LEGISLATION ........................................................................................................................ 12
Government Tweaks Private Security Act ........................................................................... 12
Cabinet Adopts Bill on Unfair Business Practices ............................................................... 12
FINANCE................................................................................................................................. 13
Austrian Central Bank Honours Slovenian Adoption of Euro ............................................. 13
Zavarovalnica Maribor Increases Premiums by 11% in 2006 ............................................. 13
Stock Market Operator Ends 2006 with EUR 0.82m in Gross Profit .................................. 13
Gaspari Appoints Rant Deputy Central Bank Governor ...................................................... 14
Government to Establish Bank Holding, Minister Says ...................................................... 14
KAD Continues to Streamline Portfolio .............................................................................. 15
Ljubljana Stock Exchange .................................................................................................... 15
REGIONAL INFORMATION ................................................................................................ 17
Postojna Gets Free Wireless Internet Access ....................................................................... 17
Jansa: Obalno-Krasko On Track to Becoming Successful Region ...................................... 17
BRANCH INFORMATION .................................................................................................... 19
Slovenia to Increase Share of Renewable Energy, Experts Say .......................................... 19
Agriculture Ministers Agree on Voluntary Modulation ....................................................... 19
Bozic: EU-US Open Skies Agreement Opportunity for Adria Airways .............................. 20
Government Approves Electricity Price Increase ................................................................ 20
COMPANIES ........................................................................................................................... 21
German Factory to Start Producing Motorhomes in Slovenia ............................................. 21
Iskraemeco Supervisors Accept Bid for Laminates Division .............................................. 21
Telekom Enters Next Stage of Privatisation ........................................................................ 21
Sava Looking to Orchestrate Merger of Abanka and Gorenjska Banka .............................. 22
Government Hires Adria, Gio for Air Transport Services ................................................... 23
Culture Ministry Okays Acquisition of Vecer ..................................................................... 23
FAIRS, CONGRESSES ........................................................................................................... 24
Slovenia Makes Splash at Leipzig Book Fair ...................................................................... 24
SLOVENIA IN BRIEF ............................................................................................................ 25
Jansa and Italian Minority Speak About Provinces ............................................................. 25
Letter of Intent Signed for Mediterranean University .......................................................... 25
Drnovsek and Ban Discuss Kosovo, Iran and Darfur .......................................................... 25
Slovenia, Macedonia Sign Deal on Defence Cooperation ................................................... 25
Slovenia, Commission Sign Communication Partnership Deal ........................................... 25
Clocks Turned Forward to Summertime .............................................................................. 25
2
HEADLINES
Investment Agency Gets EUR 34m for 2007
The Public Agency for Entrepreneurship and Foreign Investment (JAPTI) will get EUR 34.1m
in budget funds in 2007 in accordance with the programme and financial plan adopted by the
government
The Public Agency for Entrepreneurship and Foreign Investment (JAPTI) will get EUR
34.1m in budget funds in 2007 in accordance with the programme and financial plan adopted
by the government, JAPTI chairman Franc Hoffman told the press in Ljubljana on Tuesday,
20 March.
Out of the EUR 31.6m available for programmes, the JAPTI will earmark roughly EUR 22m
for entrepreneurship.
The remaining EUR 7m will be set aside for attracting foreign investments and for Slovenian
companies' ventures abroad, while EUR 2.4m are allocated for operating costs, explained
Hoffmann.
According to the programme, the JAPTI will issue a public tender in April aimed at attracting
foreign investment. The tender will be worth EUR 5.8m, roughly EUR 1m more than in 2006.
It is planning to launch four new offices in Asia and America, in addition to those opened in
January in Milan, Duesseldorf, Bucharest and Istanbul, JAPTI assistant manager Alenka Hren
explained.
The agency is also planning to start a centre for competitiveness and innovation in order to
promote and develop innovation, Hren added.
IMAD: Slovenia Needs to Shore Up Competitiveness
The government's economic think-tank says in its annual development report that while
important steps have been taken in implementing the Development Strategy, further measures
are needed to shore up Slovenia's competitiveness, foremost in promoting innovation
The government's economic think-tank says in its annual development report that while
important steps have been taken in implementing the Development Strategy, further measures
are needed to shore up Slovenia's competitiveness, foremost in promoting innovation.
The Institute for Macroeconomic Analysis and Development (IMAD) says that the country's
priority should be to bolster activities that will make Slovenia more competitive in knowledge
and innovation, whilst retaining positive welfare trends and reducing the burden on the
environment.
In its report IMAD says that the increase in economic growth seen over the last three years is
in line with plans. An important contributing factor has been the successful economic
stabilisation of the economy and a number of structural reforms, especially a reduction in the
tax burden and the cutting of red tape faced by business.
In order to keep the positive trends, Slovenia must retain the achieved stability of its
economy, says the report that the cabinet will debate at one of its upcoming sessions.
However, the think-tank sees a key challenge in fiscal sustainability. While Slovenia has
managed to cut its general government deficit in recent years, the main task in the future will
be increasing the adaptability of fiscal policies to the changing macroeconomic environment.
Moreover, a key challenge for quicker economic growth will be bolstering factors
contributing to competitiveness in innovation and know-how. According to IMAD, Slovenia
needs to improve institutional and financial measures aimed at promoting investment in this
area, also through public-private partnership.
3
While Slovenia's economy is becoming more international, this has mainly been achieved
through trade and Slovenian investment abroad. All the meanwhile foreign direct investment
in Slovenia remains paltry.
As far as building a knowledge-based society goes, the situation is fairly good, although there
has been a lack of progress in increasing the quality and efficiency of higher education and
research and development institutions, says the report.
According to the document, Slovenia has achieved progress in increasing the efficiency of the
state and the judicial system, while more work needs to be done in privatisation and ensuring
development-minded public spending.
The quality of life in Slovenia and prosperity of its citizens is generally good, while certain
groups are exposed to heightened social risks (foremost young and old people and those with
a lower education). Improving the situation in this respect should be the goal of balanced
economic and welfare policies, the report adds.
In its annual development report IMAD checks the progress in implementing the
Development Strategy, whose main goal includes Slovenia bridging the development gap
with the most developed EU countries by 2013.
Futura DDB Bags 4th Best Advertising Agency of the Year Award
The advertising agency Futura DDB bagged the "Best Agency" award for the fourth year in a
row, as the 16th Festival of Slovenian Advertising (SOF) closed in Portoroz on 23 March
The advertising agency Futura DDB bagged the "Best Agency" award for the fourth year in a
row, as the 16th Festival of Slovenian Advertising (SOF) closed in Portoroz on Friday, 23
March.
The star of the evening was also the production house Propeler, which won "Best TV Ad
Production House" award, while "Best Radio Ad Production House" award went to Radio
City, a Maribor-based private radio station.
Meanwhile, advertising agency Luna TBWA won the Audience Award for an ad for wireless
operator Simobil "Nas svet je napet" (Our World is Exciting).
Futura DDB also won the best TV ad prize for the ad "Maratonec" (Marathon Runner), while
advertising agency Original received the best printed ad award for "Smrekica" (Pine Sapling).
Radio City was meanwhile given best radio ad award for the series of ads "Infond volitve"
(Infond Elections).
The Arih agency won the best internet ad award for its ads "Betmen" and "Superzoki", while
Publicis won the best ad campaign for its ad "Itak" (You Bet!), created for Slovenia's largest
wireless operator Mobitel.
Best advertising photo award went to agency Pristop for its "Stopar" (Hitchhiker). Best
illustration prize went to agency Mayer McCann for their ad "Joski" (Hooters).
According to SOF president Mark Vrtovec, this year's festival saw over 580 ads competing
for awards. Last year, however, the number of competing ads exceeded 800.
Designed to promote Slovenian production, SOF originates in the Yugoslav advertising film
festival from the 1970s. It is seen as an opportunity to look back at the past year and as an
incentive to improve the quality of advertising.
4
INTERNATIONAL COOPERATION
Environment Minister, IAEA Boss Discuss Topical Issues
According to Nuclear Safety Administration director Andrej Stritar, the Slovenian delegation
told Elbaradei about the search for a site for a nuclear waste repository and plans for the
construction of a second block at the Krsko Nuclear Power Plant (NEK)
Environment and Spatial Minister Janez Podobnik discussed topical issues as he met on
Monday, 19 March Mohamed Elbaradei, director general of the International Atomic Energy
Agency (IAEA). Podobnik acquainted Elbaradei with developments related to nuclear energy
in Slovenia, while the IAEA boss focused on Iran and North Korea.
According to Nuclear Safety Administration director Andrej Stritar, the Slovenian delegation
told Elbaradei about the search for a site for a nuclear waste repository and plans for the
construction of a second block at the Krsko Nuclear Power Plant (NEK).
The delegation told Elbaradei that the new block at Slovenia's lone nuclear power plant is an
option and could be necessitated by the demand for electrical power, Stritar told STA.
Elbaradei meanwhile said that it seemed North Korea would finally seal off its main military
plat at Yongbyon and allow IAEA inspectors in the country.
Elbaradei was also concerned that the international community could impose too strict
sanctions on Iran, with counterproductive results, Stritar added.
The Nuclear Safety Administration is a body within the Environment and Spatial Planning
Ministry.
MPs Discuss Kosovo, Euro in Bratislava
The delegation held talks with the committees for European affairs and foreign policy, as well
as the committee on finance, budget and currency and officials of the Foreign Ministry
The adoption of the euro and the status of Kosovo were at the forefront of talks that a
delegation of the Slovenian Foreign Policy Committee held with members of the Slovakian
parliament during a visit on Tuesday, 20 March and Wednesday, 21 March that was designed
to bolster bilateral ties.
Committee chair Jozef Jerovsek told STA on Wednesday, 21 March that a debate was
currently under way in the Slovakian parliament on the proposal of special UN envoy for the
status of Kosovo, Martti Ahtisaari.
He said the Slovenian deputies presented the country's support for Ahtisaari's plan, and voiced
the position that the current situation was a result of Serbia's misguided policy under
Slobodan Milosevic, which made a return to the state of 30 years ago impossible.
According to Jerovsek, the two sides agreed that countries in the region, in particular Serbia,
would suffer if there was no headway on the Kosovo status, as the processes of EU accession,
economic reforms and democratisation would slow down.
Another major topic of talks was Slovenia's adoption of the euro, as Slovakia is gearing up for
eurozone entry in 2009. Jerovsek said that Slovakian officials had shown great interest in
Slovenia's experience.
The delegation held talks with the committees for European affairs and foreign policy, as well
as the committee on finance, budget and currency and officials of the Foreign Ministry.
New Dragonja Border Crossing Opened
The renovated Dragonja international border crossing in SW Slovenia was opened on 21
March as a part of the government's visit to Istria and the Karst
The renovated Dragonja international border crossing in SW Slovenia was opened on
Wednesday, 21 March as a part of the government's visit to Istria and the Karst.
5
Interior Minister Dragutin Mate said at the opening that the new border crossing would
contribute to the quality of border service and at least partially alleviate the lives of people
who live in its proximity.
Finance Minister Andrej Bajuk meanwhile said that the crossing would improve safety and
added that Slovenia earmarked 0.4% of its GDP for setting up the Schengen-compliant border
system in 2007.
Public Administration Minister Gregor Virant, whose ministry carried out the project, said
that Slovenia, which is expected to become a member of the Schengen no-border zone by the
end of the year, had made all necessary preparations for meeting Schengen standards.
The Dragonja border crossing was built between 26 September and 9 February. The project
cost EUR 5m, with EUR 1m received from the Phare pre-accession aid programme.
Transport Minister Upbeat About Construction of Rail Links
Transport Minister Janez Bozic met his Italian counterpart Alessandro Bianchi
Transport Minister Janez Bozic met on Thursday, 22 March his Italian counterpart Alessandro
Bianchi. The pair discussed delays in the construction of transport links on the 5th panEuropean transport corridor, with Bozic coming out of the talks convinced that the meeting
would speed-up matters.
So far the Italian side was not responsive enough in implementing cross-border projects.
While Slovenia drafted all the necessary technical documents, Italy failed to respond to its
calls, the minister said after meeting Bianchi at the sidelines of a meeting of the EU Transport
Council in Brussels.
"The problem is the interlocutor on the other side who is non-existent" Bozic described the
cooperation between Slovenia and Italy in the construction of the Slovenian part of the route
stretches from France's Lyon to the Hungarian-Ukrainian border.
Bozic also discussed the issue with Paolo Costa, chair of the European Parliament Committee
on Regional Policy, Transport and Tourism, telling him that agreements should be honoured.
Costa said in late February at a meeting in Trieste that the construction of the 5th corridor
needs to begin in 2010 and wrap up by 2020.
Almost all countries on the route have already concluded bilateral agreements, only Slovenia
and Italy failed to do so despite the strategic importance of the section between Italy's Trieste
and Ljubljana, Costa said then.
Ljubljana, Skopje Sign Twin-City Agreement
The mayors of Ljubljana and the Macedonian capital of Skopje, Zoran Jankovic and Trifun
Kostovski, signed a twin-city agreement which covers arts and culture as well as
administration and economic cooperation
The mayors of Ljubljana and the Macedonian capital of Skopje, Zoran Jankovic and Trifun
Kostovski, signed on Friday, 23 March a twin-city agreement which covers arts and culture as
well as administration and economic cooperation.
Jankovic expressed his satisfaction that he signed the document with a colleague and friend
from business and sport, with whom he had successfully cooperated in the past.
Jankovic also invited Kostovski to attend a meeting of mayors of capitals of EU members and
candidates for accession, which will take place in Ljubljana during Slovenia's EU presidency
in the first half of 2008.
Rupel Points to Good Cooperation in Meeting Korean Delegation
Foreign Minister Dimitrij Rupel received a delegation of the Republic of Korea
Foreign Minister Dimitrij Rupel received on Friday, 23 March a delegation of the Republic of
Korea. In talks with the delegation, Rupel pointed to good cooperation between the two
6
countries, strengthened after the 2005 visit of former South Korean foreign minister Ban Kimoon, who is now the UN Secretary General, the foreign ministry said.
During the discussions, headed by the vice-chair of the parliamentary friendship group with
Slovenia Yoon-Keun Woo, Rupel pointed to the upcoming opening of the Slovenian
consulate in Seoul, which he believes will additionally improve relations.
Trade between the two countries is also on the rise as South Korean companies are
increasingly using the sole Slovenian seaport of Koper as their gateway to the markets of
Central Europe, the ministry added.
Rupel moreover pointed the improved cooperation in science and technology, a result of the
visit by a delegation of the South Korean science and technology ministry to Slovenia in
2006.
The visiting delegation also met Deputy Parliament Speaker Saso Pece and the Slovenian
parliamentary friendship group with the Republic of Korea.
7
EUROPEAN UNION
Potocnik: Future Lies in Knowledge-Based Society
Knowledge-based society is not an abstract idea, it is a concept that connects people and
supports science and invention, and it is definitely the right way, he explained
Addressing parliamentary EU affairs committee in Ljubljana on Monday, 19 March,
European Science and Research Commissioner Janez Potocnik said the European
Commission would continue in 2008 the path it has set last year. The future lies in
competitiveness supported by a knowledge-based society, Potocnik said.
Knowledge-based society is not an abstract idea, it is a concept that connects people and
supports science and invention, and it is definitely the right way, he explained at the
presentation of the European Commission's annual policy strategy. "The commission will
strive to follow the path we have set," Potocnik stressed.
He pointed to two types of tasks, horizontal tasks and strategic goals. The former include
environmental protection, energy policies, Lisbon Strategy and migration issues in the EU,
while the latter comprise welfare, solidarity, security, freedom and strengthening Europe's
stature in the world.
According to Potocnik, the overhauled Lisbon Strategy is heading in the right direction and
has already brought positive results. However, it must also result in the necessary reforms.
"The key step is to make energy use more efficient," he explained.
Talking about science and research, Potocnik pointed to the importance of earmarking 3% of
GDP for research and development. Moreover, he said that the 7th Research Framework
Programme was one of the chief aims of the Commission's activities.
Commission Takes Slovenia to Court over Rail Legislation
The European Commission has decided to pursue infringement proceedings against ten
member states, including Slovenia, over their failure to implement two key directives from the
so-called "second railway package"
The European Commission has decided to pursue infringement proceedings against ten
member states, including Slovenia, over their failure to implement two key directives from the
so-called "second railway package".
The two directives - one aims at strengthening rail safety and the other updates legislation on
technical interoperability - should have been transposed to national legislation by 30 April
2006.
The Commission said on Wednesday, 21 March that Slovenia submitted no remarks to the
qualified opinion of October 2006, so the matter would be referred to the Court of the
European Communities.
The rail package includes another directive which has already brought Slovenia to court: after
two warnings the Commission launched proceedings over the market opening directive in
December.
Slovenia finally notified the Commission of the implementation in February.
The Commission said that national legislation implementing the second railway package will
separately be subject to further examination as to whether it conforms to European rules and
fully transposes them.
Jacques Barrot, vice-president of the Commission in charge of transport, said in a press
release that "a certain level of harmonisation in technical and safety requirements is essential
to ensure the level playing field necessary for the good and fair functioning of the rail internal
market."
8
Slovenia Earns EU's Rap on the Knuckles over Waste Disposal
Slovenia is one of 14 EU member states that earned a written warning from the European
Commission over their failure to adequately transpose into their national law the EU's
legislation on the landfilling of waste
Slovenia is one of 14 EU member states that earned on Thursday, 22 March a written warning
from the European Commission over their failure to adequately transpose into their national
law the EU's legislation on the landfilling of waste.
The action follows a comprehensive evaluation of the degree of compliance with the landfill
directive by all the EU-25 member states, the Commission said in a press release on
Thursday, 22 March.
The Commission took the same action last December against Austria, Belgium, France,
Germany, Luxembourg, the Netherlands and Portugal.
This time Cyprus, the Czech Republic, Denmark, Estonia, Finland, Ireland, Lithuania, Malta,
Poland, Slovakia, Slovenia, Spain, Sweden and the UK are in the dock.
The formal written warning is the first step the Commission takes if it suspects violation of
EU law that warrants the opening of an infringement procedure.
In the absence of action, the written warning is followed up by a qualified opinion, whereupon
the case is referred to the Court of the European Communities.
The landfill directive, adopted in 1999, establishes a set of detailed rules with which waste
landfills must comply in order to prevent or minimise potential negative effects such as
pollution of water, soil and air, and emissions of methane, a powerful greenhouse gas.
Government Confirms Request for Extension of Housing VAT Cut
The cabinet confirmed Slovenia would lodge a request with the European Commission for an
extension of the reduced VAT rate on construction, renovation and maintenance work for
residential housing and food preparation
The cabinet confirmed on Thursday, 22 March Slovenia would lodge a request with the
European Commission for an extension of the reduced VAT rate on construction, renovation
and maintenance work for residential housing and food preparation.
Slovenia hopes to have extended its transitional period that it obtained for VAT on housing
and food preparation as part of its EU accession negotiations, which is scheduled to end this
year, the Government Communication Office said.
A successful bid by Slovenia will require a change to the EU directive governing VAT, which
also includes transitional periods.
If Slovenia's initiative fails, new dwellings and prepared food would have to be sold in 2008
at a VAT rate of 20% and no longer at the reduced rate of 8.5%.
In line with the relevant EU directive, the reduced rate can only be used for welfare housing.
According to the Communication Office, the government believes that ending the transitional
period could have a serious impact on inflation and would worsen additionally the social
status of people who do not yet own a dwelling.
The government uses similar arguments in defending an extension of the reduced VAT rate
for food preparation, claiming that it would increase inflation in Slovenia and most endanger
poor people.
When Slovenia was first granted a transitional period, the European Commission assessed that
granting such an exception would not have an important impact on the operations of the
internal EU market nor that it would be discriminatory.
Slovenia argues that this is also true for an extension to the transitional period.
Slovenia requires the consent of all EU member states to be approved the extension.
9
Like in other EU members, the renovation, repairs and maintenance of residential housing
will meanwhile continue to be subject to a reduced VAT rate, this being the result of an
agreement reached by all EU member states after prolonged negotiations in 2006.
EU Warns Slovenia Over Financial Transparency Directive
The Commission's second warning on the matter means that the country has two months to
take action or face referral to the European Court of Justice
The European Commission issued on Friday, 23 March a formal request to Slovenia to fully
implement the directive on the transparency of financial relations. The Commission's second
warning on the matter means that the country has two months to take action or face referral to
the European Court of Justice.
Competition Commissioner Neelie Kroes said that "it is in the taxpayers' interest to ensure
that public money is used to pay for providing public services, rather than being illicitly
diverted to subsidise commercial activities".
This is why "all member states have to implement the transparency directives to allow the
Commission to scrutinise the accounts of undertakings...and so guard against abuses," the
Commission's press release reads.
The directive should have been implemented by the new EU member states by 1 May 2004.
The old member states should have transposed it by 31 July 2001, which is why Spain earned
a warning as well.
The Commission already issued two warnings to Slovenia this week. The first came on
Wednesday when the Commission decided to pursue infringement proceedings against
Slovenia over its failure to implement two key railroad directives and the second on Thursday
over the transposing of the EU's legislation on the landfilling of waste.
Jansa: Berlin Statement Ups Chances for Constitution Compromise
Speaking to the press after the ceremony on 25 March in Berlin, Jansa said the celebrations
have had a positive impact on the search for a compromise also in the countries that have
failed to ratify the constitution so far
Prime Minister Janez Jansa believes that the upbeat mood prevailing at the ceremony to mark
the 50th anniversary of the EU will make the search for a compromise on the EU constitution
easier.
Speaking to the press after the ceremony on Sunday, 25 March in Berlin, Jansa said the
celebrations have had a positive impact on the search for a compromise also in the countries
that have failed to ratify the constitution so far.
"There is a large majority in the European Council that is inclined not only to the adoption of
a (constitutional) timetable at June's summit, but also to a decision on a compromise," Jansa
said.
A look back at the 50 years of the EU shows that most of the key dilemmas were solved with
the strongest weapon, compromise. The need for a compromise to set new foundations for
Europe was also at the forefront of talks at the special EU summit in Berlin, Jansa added.
The call for the formation of a "new common foundations" is also included in the Berlin
Declaration was signed as part of celebrations of the 50th anniversary of the Treaty of Rome.
"This was the most difficult sentence," the Slovenian PM said. "It required much dexterity
and effort to put this sentence on paper" and there "are great expectation in carrying what is
written through - giving the EU new foundations before the elections to the European
Parliament in 2009".
Without its institutional foundations there can be no progress "in a very important EU policy enlargement", a key area as far as Slovenia is concerned, Jansa said.
10
Jansa believes that the importance of enlargement has been incorporated into the statement although not explicitly mentioned - which also contains other facets important for Slovenia,
including the mention of the euro and the social model. The declaration is "perfect, good", he
said.
According to Jansa, Germany's tactic of wanting to achieve a symbolic breakthrough with an
informal declaration and then shift the focus on formal efforts for dealing with institutional
matters has proven a good one.
"Before additional steps can be taken, the mood has to be changed, and a step was taken in
this direction today," he added.
A shift in the right direction has been seen with countries that have not ratified the EU
constitution, foremost the Netherlands, although France's stance remains an enigma that may
be answered after the country holds presidential elections, Jansa added.
The French and Dutch rejection of the EU constitution in referendums in 2005 had sparked
the institutional crisis in the EU that the bloc has so far failed to overcome.
Meanwhile, Jansa also pointed out that 50 years after six countries - France, Italy, West
Germany, Luxembourg, the Netherlands and Belgium - established an organisation that has
transformed into the modern-day EU, the bloc has expanded to 27 members.
Fifteen of those 27 countries either did not exist or were under a dictatorship when the EU
first emerged, Jansa stressed.
The summit in Berlin was also the last time that French President Jacques Chirac took part in
a meeting of EU leaders, as his term runs out following April's presidential elections and he
has already announced he will not be standing for the post again.
Chirac's counterparts honoured the French president with a "symbolic historic gift" and a
"thank you for his contribution to the European story", said Jansa.
The symbolic historic gift the Slovenian prime minister was speaking about is a beer keg from
the 18th century.
11
LEGISLATION
Government Tweaks Private Security Act
The government adopted amendments to the private security act, which provide more detailed
criteria for obtaining a private security licence and standards that security staff need to meet
in order to obtain registration
The government on Thursday, 22 March adopted amendments to the private security act,
which provide more detailed criteria for obtaining a private security licence and standards that
security staff need to meet in order to obtain registration.
Moreover, the training of private security staff will no longer be in the domain of the Private
Security Chamber; it will be taken over by the Interior Ministry.
Interior Ministry State Secretary Zvonko Zinrajh told the press that the amendment is
designed to introduce uniform training for all entities providing private security services.
The amendments also specify the inspection authority (the Interior Ministry Inspectorate)
which will carry out oversight of private security companies.
Cabinet Adopts Bill on Unfair Business Practices
The bill, which has been sent to parliament for confirmation, transposes EU regulations in the
area
The Slovenian cabinet moved to stamp out unfair business practices, including deceptive and
aggressive sales behaviour, by confirming a bill on unfair business practices on Thursday, 22
March.
The bill, which has been sent to parliament for confirmation, transposes EU regulations in the
area.
The document defines two types of unfair business practices - deceptive practices and
aggressive practices, Economy Minister Andrej Vizjak told the press on Thursday, 22 March.
The main goal of the bill is to strengthen the protection of consumers by banning practices
that distort their economic instinct.
According to Vizjak, the Market Inspectorate is to be in charge of overseeing the
implementation of the law.
The bill sets down 22 examples of deceptive business practices, including the display of a
quality sign that has not been obtained officially, Vizjak said.
Among aggressive business practices, the bill foresees repetitive unwanted harassment of a
prospective customers with telephone calls, electronic messages and other means of
communication, said Vizjak.
12
FINANCE
Austrian Central Bank Honours Slovenian Adoption of Euro
The Austrian Central Bank organised a special event in Graz on 19 March to honour
Slovenia's adoption of euro
The Austrian Central Bank organised a special event in Graz on Monday, 19 March to honour
Slovenia's adoption of euro. The event was attended by Austrian Central Bank Governor
Klaus Liebscher and Slovenian Central Bank Governor Mitja Gaspari.
Gaspari presented Slovenia's path to adopting the euro to the participants, stressing that
Slovenia's entering the euro zone is not only a recognition of past achievements, but also an
obligation for the future.
"Future challenges are connected to sustainable growth, improved competitiveness and the
preservation of financial stability," he was quoted as saying by the central bank.
According to him, banks are facing risks originating from the integration of European
financial markets. "These are calls for both Slovenian and Austrian central banks to take their
successful cooperation even further," he concluded.
Zavarovalnica Maribor Increases Premiums by 11% in 2006
The management of Zavarovalnica Maribor is satisfied with the results for 2006
The management of Zavarovalnica Maribor is satisfied with the results for 2006, as the
insurer recorded an 11.6% increase in premiums year-on-year. The company plans to collect
EUR 229m-worth of premiums in 2007, which would be 8.3% more than last year, said a
press release on Tuesday, 20 March.
Premiums are to increase through intensive marketing of property and life insurance,
chairman Drago Cotar said in the press release.
Zavarovalnica Maribor is planning to make EUR 136.5m of payouts, which presents a 2.4%
increase compared to 2006. Moreover, the plan for 2007 envisages EUR 9m of net profit, up
24% year-on-year.
The company also expressed surprise over rumours on Cotar's replacement. "There were
rumours on my replacement in the previous years, but I cannot see any personal or business
reasons to resign," said Cotar.
Daily Dnevnik reports on Tuesday, 20 March that the major stakeholders of Zavarovalnica
Maribor - Nova Kreditna banka Maribor (NKBM), Slovenia's second largest bank, and the
Pozavarovalnica Sava reinsurance company - are considering Cotar's replacement, as they are
not satisfied with his work.
The president of the Zavarovalnica Triglav supervisory board Zvonko Ivanusic confirmed for
the daily that personnel changes were being considered, adding that it would happen during
the consolidation of the insurance sector, which would require the "optimisation of
personnel".
Stock Market Operator Ends 2006 with EUR 0.82m in Gross Profit
The supervisors will propose that the distributable profit of EUR 621,500 as well as the
reserves from profit of EUR 114,500 be allocated for dividends
Ljubljanska borza, the operator of the Ljubljana Stock Exchange, posted a gross profit of
EUR 0.82m for 2006, over three times as much as in 2005, the company said on Tuesday, 20
March.
13
The supervisory board, which looked into the results on Tuesday, 20 March, said that the
turnover and the business results of the company were above plans. Net return on equity stood
at 19.12%.
The supervisors will propose that the distributable profit of EUR 621,500 as well as the
reserves from profit of EUR 114,500 be allocated for dividends.
Gaspari Appoints Rant Deputy Central Bank Governor
Banka Slovenije Governor Mitja Gaspari on Wednesday, 21 March appointed vice-governor
Andrej Rant his deputy
Banka Slovenije Governor Mitja Gaspari on Wednesday, 21 March appointed vice-governor
Andrej Rant his deputy, in a move that comes just hours after European Central Bank (ECB)
president Jean-Claude Trichet said that he expected the central bank to name a stand-in to
represent it at ECB meetings in the absence of a new governor.
Gaspari's term runs out on 31 March and Slovenia will not get a new central bank chief until
then, as President Janez Drnovsek has said he would not put forward a new nominee before
April.
This means that Slovenia will be without a central bank governor for nearly a month, as
parliament is expected to start April's session on 23 April.
Gaspari was quoted as saying by Banka Slovenije that he acquainted President Drnovsek and
Parliament Speaker France Cukjati about the move in a letter sent on Wednesday, 21 March.
According to Gaspari, Rant has accompanied him at sessions of the ECB, which expects to be
notified by Banka Slovenije on who will attend after 1 April.
Gaspari had been nominated for a second term, yet failed to secure the necessary majority in
parliament on 2 February.
Drnovsek then nominated Rant, but the long-serving vice-governor also failed to get the 46
votes he needed in the National Assembly.
Law expert Miro Cerar has recently told STA that the governor's duties could be performed
by Gaspari or one of the vice-governors until a new governor is approved in parliament.
Cerar added that appointing a deputy would be a better solution as the act on Banka Slovenije
already provides for such a solution.
However, the legislation does not specify what to do if an incumbent governor's term in office
runs out and a new governor is not yet appointed, Cerar added.
Cerar explained that Banka Slovenije would have to solve the issue by itself in a way that
would follow the purpose of the legislation.
Government to Establish Bank Holding, Minister Says
Finance Minister Andrej Bajuk has announced the establishing of a holding of Slovenian
owners of Nova Ljubljanska banka (NLB), Slovenia's largest bank
Finance Minister Andrej Bajuk has announced the establishing of a holding of Slovenian
owners of Nova Ljubljanska banka (NLB), Slovenia's largest bank. "The state owns just over
50% of NLB, and our mid-term plan is to sell the stake within the holding", Bajuk said in an
interview for the latest issue of weekly Demokracija.
"Since the investment in NLB is of strategic importance for the state, we will keep 25%," said
Bajuk. The point is to create an ownership structure that will see half of the capital remaining
in Slovenian hands, with the state owning 25% plus one share.
"By no means will we allow foreign investors to hold the majority stake of our largest bank,"
said Bajuk, referring to a European Commission directive which says that the bank oversight
body of the main shareholder has the final word in oversight issues.
14
"As long as the state is responsible for ensuring stability of banking and the whole financial
system, it is normal that it wants to keep the main elements of control in its hands," added
Bajuk.
Turning to the privatisation of insurer Zavarovalnica Triglav, the minister said that there was
agreement in the coalition to propose amendments to the part of the act on the ownership
transformation of insurance companies which gives eligibility to persons that have proved to
be untraceable.
It turned out that this part was impossible to implement. Instead of looking for entities who
would be entitled to Zavarovalnica Triglav shares, these stakes would be redirected to the
state-owned pension fund KAD, which would contribute to the long-term stability of the
pension system, said Bajuk.
Asked if Zavarovalnica Triglav would remain in the majority ownership of the state in the
long run, Bajuk said that the insurance company was strategically important. KAD taking
over the mentioned stake would also mean meeting the objective of the state owning at least a
25% stake in the company, he added.
Bajuk also touched the issue of the property tax, saying that it makes no sense going into
details until as long as the property census, which will provide the necessary data, is still
underway.
KAD Continues to Streamline Portfolio
In 2006, KAD sold shares in 54 companies
The state-run Pension Fund Management (KAD) increased assets under management by 26%
to EUR 1.57bn in 2006 compared to 2005, however the number of holdings has nearly halved
since 2003, to 121 companies, KAD chairman Tomaz Toplak said on Thursday, 22 March.
Speaking at the Stock Market Focus, an annual business conference, Toplak said KAD would
continue to reduce the number of holdings as it transforms into a portfolio investor.
Whereas this will make asset management easier, it does not mean that KAD will offload its
portfolio quickly; if KAD does not find buyers willing to pay an appropriate price, it will not
sell, he stressed.
Just the previous week KAD and the state-run Restitution Fund (SOD) published a call for
bids for stakes in nearly 100 companies, including graphic company Cetis, Slovenia's largest
dairy Ljubljanske mlekarne and chemical company Cinkarna Celje.
In 2006, KAD sold shares in 54 companies. Ten were shareholdings in public companies in
the total value of EUR 24m and 44 were shares in privately-held companies worth a total of
EUR 34m.
It posted a net profit of just under EUR 13m for 2006, after transferring the bulk of its
earnings (EUR 39m) to the Pension and Disability Insurance Institute.
Ljubljana Stock Exchange
SBI 20 index ended the week at 7,352.33
Slovenian blue chips have all but forgotten the recent correction, as the buzz surrounding the
impending privatisation of Telekom Slovenije propelled prices higher, taking the main market
SBI 20 index to a new record of 7,352.33, up 3.52% on the week before. The blue chip SBI
TOP index added 2.4% to 1,647.85.
Telekom was growing at break-neck pace in the first weeks of March as investors were
awaiting the government's final decision on privatisation, many of them speculating that the
majority stake would be put up for sale.
Yet they came out disappointed, as the privatisation programme envisages the sale of 39% to
a strategic investor in the next step of privatisation, with the government keeping a controlling
stake.
15
After briefly breaking the 400 euro-mark, Telekom cooled off by the end of the week, but it
still gained 2.51% on the weekly comparison to EUR 387.37 on deals worth EUR 5.3m.
Sava, the tourism and chemical conglomerate, put itself at the forefront by announcing that it
had raised its stake in the bank Abanka to over 23% and would seek to merge it with
Gorenjska banka, of which it is the biggest owner.
Sava soared 15.27% to EUR 264.04, adding nearly 6% on Friday, 23 March alone.
Energy company Petrol, which was also busy, with regular deals at nearly EUR 5m,
meanwhile added 3.56% to EUR 540.86. Yet this follows a major slump, so Petrol barely
managed to make up for the losses it suffered the week before.
Despite volumes in excess of EUR 8.5m, drug maker Krka was ion the background this week.
It shed 0.54% to EUR 808.08.
The free market was quiet in the absence of major stories. The major investment funds had a
relatively good week and the PIX investment fund index was up 1.15% to 5,552.57.
Brokers concluded deals to the tune of EUR 47.2m, of which EUR 13m came in block trade.
16
REGIONAL INFORMATION
Postojna Gets Free Wireless Internet Access
People in the city and 16 surrounding villages can enter the world wide web through 23
public hotspots
More than a half of the inhabitants of the municipality Postojna, some 50 km SW of
Ljubljana, can now access the internet free of charge. People in the city and 16 surrounding
villages can enter the world wide web through 23 public hotspots, daily Dnevnik said on
Wednesday, 21 March.
Dolores Dolenc Bajc of the municipality told the daily that every e-spot also had a computer,
on which people could surf the net at least eight hours a day.
The idea to offer free wireless internet access came from city councillor and information and
computer sciences teacher Janko Simcic, and on his initiative the service was first available in
the centre of Postojna last year.
Simcic said that the municipality would try to cover all its territory with the wireless internet
signal. He said Postojna was far ahead of other municipalities in offering free wireless internet
access.
He also explained that people in villages on the outskirts of Postojna often had problems
accessing the internet due to low transfer speeds owing to bad connections.
The municipality got EUR 23,000 for the project from the Economy Ministry.
Jansa: Obalno-Krasko On Track to Becoming Successful Region
The Obalno-krasko region (SW), placing second among Slovenian regions in terms of
development, has been undergoing intensive development in the last two years and meets all
the criteria for soon becoming a successful region
The Obalno-Krasko region, the second richest Slovenian region, has been undergoing
intensive development in the last two years and meets all the criteria for soon becoming a
successful province, Primer Minister Janez Jansa said on Wednesday, 21 March as part of the
government's visit to Slovenian Istria and Karst.
Since the last visit by the government two years ago, the region has experienced growth in the
services sector, which accounts for as much as three quarters of its income. This is even above
the European average, Jansa said, calling this the "most promising indicator".
The number of companies in the region increased by 5%, whereas unemployment has dropped
by almost 6% compared to 2005.
Speaking to the press in Stanjel along with Education Minister Milan Zver and Transport
Minister Janez Bozic, Jansa also highlighted the importance that the establishment of a
Mediterranean University would have for the region.
The prime minister pointed to the cultural and natural capacities of the Karst as presenting
major opportunities for the region. He also mentioned the plan for building a man-made off
the coast of Izola and the opportunities arising from EU funds.
The region has already drawn up projects worth EUR 510m for the EU's 2007-2013 budget,
he said.
Cabinet members also met mayors, deputies and state councillors as they wrapped-up their
visit to the region. The mayors were pleased with the new act on municipality financing as it
would bring more money to the municipal coffers, but expressed concern over any VAT
hikes.
Karst and Istria make up for 5.2% (1,044 square kilometres) of Slovenia's total land area,
making it one of the country's smaller regions.
17
A total of 105,000 people live in the region which had a per capita gross domestic product of
EUR 13,573, 3% above the Slovenian average and second only to central Slovenia.
A total of 6.3 percent of all Slovenian companies are located there. They employ 4.5% of all
Slovenian workers.
The seven municipalities that make up the region also have lower than average unemployment
rate. This stood 5.8% at the end of 2006, while the national average was at 8.6%.
18
BRANCH INFORMATION
Slovenia to Increase Share of Renewable Energy, Experts Say
Slovenia will considerably increase the share of renewable energy sources by 2020 in
accordance with the recently adopted EU Directive for Renewable Energy Sources
Slovenia will considerably increase the share of renewable energy sources by 2020 in
accordance with the recently adopted EU Directive for Renewable Energy Sources, Hinko
Suhinc of the Environment Ministry said on Monday, 19 March at the opening of a three-day
conference on district energy in Portoroz.
According to him, the share of renewables in Slovenia stands at 11%, while the EU average is
6%. The difference among EU countries will require long negotiations in order to reach the
EU-wide target of 20% by 2020.
Considering that Slovenia the share is quite high, it can be expected that it would have to
increase to 25%, said Suhinc, adding that the agreement on the increase would be legally
binding.
According to Suhnic, Slovenia will soon amend legislation on the energy performance of
buildings, because it lacks certain provisions, such as heating insulation standards. Besides the
systems of district heating, the systems of district cooling will also be considered, he added.
In the case of mild winters and given good insulation, the providers of district heating cannot
expect high profits, said Suhnic.
Meanwhile, the head of the Slovenian District Heating Association, Alojz Poredos, said that
the directive was an opportunity to deliberate on the future of energy in Europe. Energy will
be one of the main topics of Slovenia's EU presidency in the first half of 2008, he said.
Energy must not remain a subject of political discussions and trading, it has to be perceived as
a life necessity, added Poredos.
Agriculture Ministers Agree on Voluntary Modulation
Agriculture Minister Iztok Jarc said Slovenia welcomed the agreement
EU agriculture ministers struck on Monday, 19 March a compromise on voluntary
modulation, a scheme which had been rejected by the European Parliament last year,
effectively blocking 20% of the EU's rural development aid. Agriculture Minister Iztok Jarc
said Slovenia welcomed the agreement.
Last year's proposal for a voluntary modulation scheme would allow 20% of direct payments
to be diverted to rural development projects, at the discretion of each member state.
The European Parliament rejects the proposal, saying such a transfer could distort competition
between farmers from various member states and potentially lead to a "re-nationalisation" of
agriculture policies.
The new compromise, designed by Germany, which currently presides the EU, limits
voluntary modulation to the UK and Portugal only, pleasing both the EP and the member
states.
Slovenia is not directly affected by the voluntary modulation, however it is looking forward to
the EU funds that are being made available with the blockade being lifted, Jarc said.
In the next seven years, Slovenia expects to draw close to EUR 1bn from the EU's rural
development fund.
According to Jarc, the ministers also agreed on rural employment policies, stressing the need
to increase competitiveness in the agricultural sector and to maintain the existing cultural
settings.
19
The Agriculture and Fisheries Council was expected to be in session for two days, but the
proceedings have been cancelled as all items on the agenda had been discussed.
On the margins of the meeting, Minister Jarc held talks with European Commissioner for
Agriculture and Rural Development Mariann Fischer Boel.
He said it was agreed in principle that the commissioner would visit Slovenia by the end of
the first half of the year to discuss the preparations of Slovenia for the EU presidency.
Bozic: EU-US Open Skies Agreement Opportunity for Adria Airways
The agreement brings liberalisation of air traffic between the EU and US, allowing EU
airlines to fly from any airport in the EU to any airport in the US and vice versa
The EU-US open skies agreement confirmed by the EU Transport Council agreed on
Thursday, 22 March is a big opportunity also for the Slovenian flag carrier Adria Airways in
the market of transatlantic flights, Transport Minister Janez Bozic said on the sidelines of the
meeting in Brussels.
However, this cannot be achieved easily because of strong competition, he said, adding that
he hoped Adria Airways would take the opportunity.
The agreement brings liberalisation of air traffic between the EU and US, allowing EU
airlines to fly from any airport in the EU to any airport in the US and vice versa.
Until now airlines were only allowed to fly from their country of origin to selected US
airports.
The open skies agreement would replace bilateral agreements between EU members and the
US, which six countries, including Slovenia, did not have. It still needs a nod from the US and
is expected to be signed on 30 April at the EU-US summit in Washington.
The transport ministers also agreed on a plan to prevent further delays in completing the EU
Galileo satellite navigation system.
Bozic explained that by 10 May the consortium of eight companies tasked with constructing
and managing the project has to set up a single operating structure and name a director which
would speak on their behalf.
The main message to the consortium is that negotiations should be carried out fast so that the
main points of the Galileo agreement would be agreed by September 2007, Bozic said.
The EU also has to select the location for the seat of the Galileo supervisory authority, also
sought by Slovenia. With Galileo, which should start operating in 2011, the EU would gain
independence from the US Global Positioning System.
Government Approves Electricity Price Increase
The cabinet cleared on 22 March the way for Slovenian electricity distributors to increase
retail electricity prices for households by up to 5.1% as of 1 April
The cabinet cleared on Thursday, 22 March the way for Slovenian electricity distributors to
increase retail electricity prices for households by up to 5.1% as of 1 April.
Under the cabinet's decision, households will have to pay between 4% and 5.1% more for
their electricity bills as of next month.
The Economy Ministry explained that electricity distributors currently make a loss in
supplying electricity to households, as they buy electricity at prices that exceed what they are
allowed to charge households for it.
The aim of the decision, said the ministry, is to take a step closer to market prices and bridge
the gap between wholesale and retail prices.
According to European Commission data for January, Slovenian households get their
electricity 25% cheaper than the EU average.
In previous years, the government kept a lid on electricity prices in order to keep inflation in
check as Slovenia sought to join the EU.
20
COMPANIES
German Factory to Start Producing Motorhomes in Slovenia
The factory, which will produce top-end motorhomes, is to be built by April 2008
Carthago, the German manufacturer of motorhomes, is to open a factory in Odranci in
northeastern Slovenia, the company's owner, Karl-Heinz Schuler, said on Tuesday, 20 March.
The factory, which will produce top-end motorhomes, is to be built by April 2008.
Schuler said that while choosing a location for the factory Carthago was looking for a country
with a positive image, nice people, hard workers and good infrastructure. He added that
labour costs were also an important factor.
The investment is worth EUR 5m, with around EUR 1m coming from the state for
employment subsidies, and the factory is to employ 150 workers.
In the first year the factory is to produce 250 vehicles, while in 2009 output is to rise to 500
vehicles.
Schuler believes that the factory will not compete with Slovenian motorhomes manufacturer
Adria Mobil, it might only complement it.
Carthago produces high-class motorhomes that cost between EUR 75,000 and 200,000. The
company, which now employs 260 people, produced around 1,000 motorhomes last year.
Iskraemeco Supervisors Accept Bid for Laminates Division
The supervisory board of Iskraemeco, the troubled Kranj-based maker of electric metres, has
accepted an EUR 3m bid by Hidria for its lamination division in a deal that follows months of
negotiations
The supervisory board of Iskraemeco, the troubled Kranj-based maker of electric metres, has
accepted an EUR 3m bid by Hidria for its lamination division in a deal that follows months of
negotiations.
The Idrija-based industrial group will acquire the facilities, equipment, inventories and 87
employees of the division, said Marko Pogacnik, the chair of the Iskraemeco supervisory
board.
Pogacnik was pleased with the sale, which was also envisaged in Iskraemeco's restructuring
plan.
"Hidria offered a good price, substantially better than that initially offered," said Pogacnik, the
chairman of the state-run Restitution Fund (SOD).
The first half of the price will be paid by September this year and the remaining EUR 1.5m by
September 2008, he said.
The inventories are assessed at between EUR 500,000 and EUR 800,000 and will be paid for
by May 2008.
The deal means that Hidria will become Iskraemeco's supplier of laminates, an essential part
of induction and electric metres.
Iskraemeco is likely to post a loss of EUR 18m in 2006. CEO Janko Steharnik however told
the press in late January the future was bright for the company.
Telekom Enters Next Stage of Privatisation
The government adopted a plan for the second stage of privatisation of Telekom Slovenije
which determines that up to 39% of the telco would be sold to a strategic investor in a public
tender to be published in July
21
The government on Thursday, 22 March adopted a plan for the second stage of privatisation
of Telekom Slovenije which determines that up to 39% of the telco would be sold to a
strategic investor in a public tender to be published in July.
The state, which owns 74% of Telekom along with the state funds KAD and SOD, intends to
keep a controlling stake of 25% plus one share at this stage, Economy Minister Andrej Vizjak
told the press.
A stake of up to 10% will be earmarked for compensation to people who invested in the
public telephone network in accordance with the act on the return of investments in the public
telecommunications network.
The 39% holding will either be sold in its entirety, or the government may decide to sell one
part of the stake first and the second part three years later.
Bidders who will let Telekom enter their ownership structure will take precedence, Vizjak
explained, adding that this was a new element compared to the previous strategic guidelines
on Telekom privatisation.
The government wants more than just money, it wants the company to develop successfully
and expand to regional markets, he added.
The decision to favour bidders who let Telekom enter their ownership structure is crucial if
Telekom is to get a partner who will develop the company and upgrade its know-how,
products and services, Vizjak said.
Telekom has been seeing a bonanza on the Ljubljana Stock Exchange (LJSE) in the past two
weeks, adding over 10% in less than two weeks on speculations that the state might sell a
51% stake.
The stock market floatation in October 2006 was the first stage of privatisation.
Sava Looking to Orchestrate Merger of Abanka and Gorenjska Banka
Sava, the Kranj-based chemical and tourism conglomerate, confirmed long-running rumours
that it had bought nearly a quarter of Abanka Vipa, Slovenia's third-largest bank by assets,
setting the stage for a merger with another major banking player, Gorenjska banka
Sava, the Kranj-based chemical and tourism conglomerate, on Thursday, 22 March confirmed
long-running rumours that it had bought nearly a quarter of Abanka Vipa, Slovenia's thirdlargest bank by assets, setting the stage for a merger with another major banking player,
Gorenjska banka.
Sava said in a press release it had obtained approval from Banka Slovenije, the central bank,
for the acquisition of a stake of up to 33% of Abanka.
This activated contracts for the acquisition of 22.99% of the share capital, increasing Sava's
stake to 23.33%.
Sava said this was a long-term strategic investment and the second most important item in its
portfolio besides Gorenjska banka, Slovenia's eighth largest banks by assets, of which it owns
over 40%.
For shareholders as well as the Slovenian banking system, it makes sense to merge the two
banks, which are complementary, the company said.
"In cooperation with the other shareholders of both banks, we intend to use our ownership
influence to promote a merger," Sava's press release reads.
Sava did not disclose the sellers, but business daily Finance wrote on Monday, 19 March that
the most likely sellers would be FMR (which owns the industrial group Kolektor), casino
operator Hit and several other smaller shareholders.
The biggest owner of Abanka is the state-owned insurance company Zavarovalnica Triglav
(21.27%), followed by the asset management firm Zvon ena holding (16.08%) and FMR
(9.84%).
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The ownership structure of Gorenjska banka, meanwhile, is dominated by Sava (41.2%),
followed by technical goods chain Merkur (12.3%) and Zavarovalnica Triglav (3.9%).
According to data provided by Finance, a merger would create a bank with 13.4% of the total
assets in the Slovenian banking sector, 12.5% of all loans to non-banking customers and
22.5% of net profits in the industry.
Government Hires Adria, Gio for Air Transport Services
Flag carrier Adria Airways and the company Gio have been selected in a public tender as the
providers of air transport services for the government and government agencies for 2007 and
2008, in a deal worth EUR 6.8m
Flag carrier Adria Airways and the company Gio have been selected in a public tender as the
providers of air transport services for the government and government agencies for 2007 and
2008, in a deal worth EUR 6.8m.
"We are convinced that we have selected a solution that's rational, modest and responsible to
the taxpayers," Public Administration Minister Gregor Virant, whose ministry carried out the
public tender, told the press on Thursday, 22 March.
According to Virant, the prime minister and cabinet members would use scheduled flights
when possible. Only when scheduled flights are incompatible with the itinerary will the
officials use leased jets.
However, Virant was quick to point out that such extraordinary situations would probably be
quite common during Slovenia's stint as EU president in the first half of 2008.
The public tender was issued in August 2006 and the selection became final in February.
Virant said the signing of the contract was a bit delayed as the government was seeking a
discount - but it managed to get the price down by nearly one million euros.
Culture Ministry Okays Acquisition of Vecer
Asset management firm Infond Holding said on Friday, 23 March it has formally become the
majority owner of Maribor-based newspaper publisher Vecer, as it received the go-ahead
from the Culture Ministry to raise its stake to up to 60%
Asset management firm Infond Holding said on Friday, 23 March it has formally become the
majority owner of Maribor-based newspaper publisher Vecer, as it received the go-ahead
from the Culture Ministry to raise its stake to up to 60%.
Infond Holding had had a 36.5% stake in Vecer before it acquired another 15% from asset
management firm KBM Infond in December, increasing its holding to 51.5%.
Infond Holding is also the biggest shareholder of beverage group Pivovarna Lasko (24.4%),
which has recently announced it would publish a takeover bid for Delo, Slovenia's leading
newspaper publisher, of which it already owns over 44%.
23
FAIRS, CONGRESSES
Slovenia Makes Splash at Leipzig Book Fair
Slovenia has left a resounding impression as the feature country at this year's Leipzig Book
Fair, the organisers of Slovenia's presentation are convinced
Slovenia has left a resounding impression as the feature country at this year's Leipzig Book
Fair, the organisers of Slovenia's presentation are convinced.
According to the organisers, the events featuring Slovenian literature attracted large turnouts,
while Slovenian books were in high demand.
In one of the final acts featuring Slovenian authors Suzana Tratnik and Tomaz Salamun along
with colleagues from Germany, Bulgaria, Austria and Hungary drew a massive audience to
the Leipzig commuter transport dome.
The panel was so popular that many could not get into the packed dome. Moreover, there was
a lot of demand for Tratnik's books at the Slovenian stall after the panel.
The programme of the Slovenian performance encompassed a wide array of events that were
related to the common theme of openness to difference.
Another hit for the Slovenian presentation was the evening of Slovenian philosophy and
literature, which featured Slovenian philosophy greats Slavoj Zizek and Mladen Dolar.
Although voice was the topic of the evening, Zizek took the opportunity to glide across a
number of topics, from the popularity of the Kelly Family in Central Europe to US President
George W. Bush.
Also leaving a strong impression on the fair was author Boris Pahor, a member of the
Slovenian minority in Italy, whose views on bilingualism and minority issues garnered a lot of
attention.
The Leipzig Book Fair, the oldest book fair in Europe, with roots dating back to the 15th
century, passed in line with expectations and the goals of presenting many different types of
literature and bringing them closer to the public.
The director of the fair, Oliver Zille, told STA that the Leipzig show differs from Frankfurt in
that the latter is much more commercial in its efforts to bring literature closer to the public.
Slovenia appeared as the feature country as part of the fair's programme to promote Central
and Eastern European literature.
Apart from the authors, the country was also represented by a host of gastronomic delights,
some of its best wines, as well as host a number of foreign guests.
Slovenia was represented by the slogan that could be translated as "Hospitable
Loquaciousness".
According to Urska Perne, who headed the Slovenian delegation along with Ales Steger, the
slogan aimed to convey that Slovenian literature was alive and kicking despite of its
"smallness".
24
SLOVENIA IN BRIEF
Jansa and Italian Minority Speak About Provinces
Visiting Istria and Karst on Tuesday, 20 March, Prime Minister Janez Jansa met
representatives of the Italian national community in Slovenia. Jansa concluded that a lot had
been achieved in the two years since the last meeting and added that one of the challenges
ahead came in the form of the legislation introducing provinces.
Letter of Intent Signed for Mediterranean University
A memorandum of understanding on the establishment of a Mediterranean University was
signed on Wednesday, 21 March by Piran Mayor Tomaz Gantar and Higher Education
Minister Jure Zupan, who said the government was fully backing the project.
Drnovsek and Ban Discuss Kosovo, Iran and Darfur
President Janez Drnovsek met UN Secretary General Ban Ki-moon in New York on
Wednesday, 21 March. The office of the secretary general as well as Drnovsek's office have
confirmed that the pair discussed Kosovo, Iran and Darfur, but failed to disclose any details of
the talks.
Slovenia, Macedonia Sign Deal on Defence Cooperation
Defence Minister Karl Erjavec and his Macedonian counterpart Lazar Elenovski signed on
Thursday, 22 March an agreement on cooperation in 2007. This year the countries are
planning 24 joint projects, including language education and cooperation in training.
Slovenia, Commission Sign Communication Partnership Deal
The Government Communication Office and the European Commission signed on Friday, 23
March a communication management partnership agreement with the aim to bring EU issues
closer to the public. The agreement was signed by the Government Communication Office
director Gregor Krajc and the head of the Commission's Directorate General for
Communication Claus Soerensen.
Clocks Turned Forward to Summertime
Slovenia is running on Daylight Savings Time (DST), as clocks were set ahead one hour at
2:00 AM Sunday, 25 March. The return to standard Central European Time (CET) will take
place on the last Sunday, 25 March of October. The original purpose of the shift to
summertime was to make better use of daylight, but the DST also helps save energy.
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