Slovenia Business Week no 21, June 4th, 2007
Table of Contents:
HEADLINES ................................................................................................................. 3
Luka Koper and Korean Partners Establish Logistics Company ............................... 3
Logistics Group Charmain Elected CCIS President ................................................... 3
Work Permit Quota for Foreign Workers in 2007 Reached ....................................... 4
INTERNATIONAL COOPERATION .......................................................................... 5
Slovenian, Croatian Commerce Chambers Mull Boosting Cooperation .................... 5
FM Stresses Intercultural Dialogue at EU-Asia Meeting ........................................... 5
FM: Commission Wants to Improve Political, Economic Situation .......................... 5
PMs Praise Slovenian-Slovakian Relations ................................................................ 6
EUROPEAN UNION .................................................................................................... 8
Minister Promises EU Tenders Before Summer ........................................................ 8
Huebner Says Slovenia Cannot Afford Mediocrity .................................................... 8
Majority of Slovenians Satisfied With Euro Switch .................................................. 9
Slovenian, Czech FMs Say Constitution Needs to Be Tackled Quickly .................. 10
Sava Basin Countries Boosting Cooperation............................................................ 10
LEGISLATION ........................................................................................................... 12
Deal Reached on Labour Legislation ....................................................................... 12
New Pension Law to Bring Bigger Bonuses and Disincentives ............................... 12
MPs Pass Changes to Audit of Public Procurement Procedures Act ....................... 13
STATISTICS/FORECASTS........................................................................................ 13
ILO-Unemployment at 5.7% in Q1 of 2007 ............................................................. 13
Dearer Petrol Pushes Annual Inflation to 2.9% ........................................................ 14
FINANCE .................................................................................................................... 15
Abanka Vipa Reports Nearly EUR 10M in Q1 Net Profit ....................................... 15
Triglav Reports 31% Jump in Net Profit for 2006 ................................................... 15
Former Governor Warns against Excessive Wage Growth ...................................... 15
Analysis: Slovenian Insurance Sector Below Eurozone Average ............................ 16
Ljubljana Stock Exchange ........................................................................................ 16
BRANCH INFORMATION ........................................................................................ 18
Power Utilities Debate Grid Stability, Renewables .................................................. 18
Water Quality in Slovenian Bathing Areas Improved in 2006 ................................. 18
Small Businesses Happy with Government, but Want More ................................... 19
Laptops Boost Q1 Computer Sales ........................................................................... 19
COMPANIES .............................................................................................................. 21
Istrabenz Halves Q1 Profit ....................................................................................... 21
First Claimants Receive Telephone Network Reimbursements ............................... 21
Outgoing State Secretary Appointed Chief Delo Supervisor ................................... 22
Car Components Makers Call for Greater Synergy.................................................. 23
E-Banking Provider Halcom Upped Revenues, Profits in 2006 .............................. 23
E.Leclerc Opening Supermarket in Maribor ............................................................ 23
MIP Establishes Foothold in Serbia ......................................................................... 24
Adria Gets Two New Regional Planes ..................................................................... 24
Three Companies Form Construction Holding ........................................................ 25
Food Producer's Revenues Up, Profit Down in Q1 .................................................. 25
Alenka Paulin Takes over at STA Helm .................................................................. 25
SLOVENIA IN BRIEF ................................................................................................ 27
FM, US Senator Focus on Kosovo Issue .................................................................. 27
Drnovsek Puts Forward Ex-Vice Governor for Central Bank Boss Governor......... 27
Forum Says Public-Private Partnership Important for R&D .................................... 27
Irish, Slovenian Courts of Audits Exchange Experience ......................................... 27
Government Office for Communication Gets New Director ................................... 27
Starina Kosem Dismissed from KAD Supervisory Board ....................................... 27
Former Banka Slovenije Governor to Dispense Euro Advice .................................. 27
HEADLINES
Luka Koper and Korean Partners Establish Logistics Company
Luka Koper, the company managing the only Slovenian port, and three Korean
companies have set up a logistics company to distribute iron products to countries of
Central and Eastern Europe
Luka Koper, the company managing the only Slovenian port, and three Korean
companies have set up a logistics company to distribute iron products to countries of
Central and Eastern Europe, Luka Koper said on Tuesday, 29 May.
The newly-established Posco Europe Steel Distribution Center (POS-ESDC) was set
up by Luka Koper, which holds a 10% stake, and Korean companies Posco, Daewoo
Logistics in Daewoo International. It will build distribution centres in Koper and
Sezana.
According to a press release posted on the website of the Ljubljana Stock Exchange,
the recent EU entry of Slovakia and the Czech Republic spurred some Korean
companies to build new vehicle manufacturing plants in these countries. These plants
require the same materials as factories in Korea so they plan to use the Koper centre
to distribute the intermediate products.
POS-ESDC rented space in a new multi-purpose warehouse with 10,800 square
metres.
Posco is the third largest steelworks in the world. It manufactures 30 million tonnes of
steel in Korea and is constructing a new factory in India with a capacity of 10 million
tonnes. Daewoo International is one of Korea's largest corporations.
Logistics Group Charmain Elected CCIS President
Zdenko Pavcek, chairman of logistics group Viator&Vektor, was elected the president
of the Chamber of Commerce and Industry of Slovenia (CCIS)
Zdenko Pavcek, chairman of logistics group Viator&Vektor, was elected on Tuesday,
29 May the president of the Chamber of Commerce and Industry (CCIS). Pavcek in
turn nominated Samo Hribar Milic, his predecessor in what has been transformed into
a largely ceremonial post, as the CCIS's director general, the new executive post at the
chamber.
Pavcek, who got 45 votes of the 84 delegates who came to the maiden session of the
CCIS assembly, said he would fight to give the CCIS the position it deserved in a
statement for the press after the vote.
He said he would try to boost links between Slovenian companies, bring forth good
ideas by small, medium and large companies and to present Slovenian business
abroad.
Pavcek, who supports the decentralisation of the CCIS, plans to convene shortly a
session of the new management board at which he will put forward Hribar Milic for
the post of director general.
Pavcek was born in 1954 and graduated from economics. He became the head of
marketing at Vektor, rising to the post of Vektor general director. He went on to
become director general at Viator in 1999 whereupon he carried out a merger of the
two companies to become the chairman of Viator&Vektor in 2000.
Pavcek recently carried out an MBO of Viator&Vektor, which posted revenues to the
tune of EUR 250m in 2006 and employed over 3,000 people in 32 companies located
in Slovenia, Germany, Austria, Poland, the Czech Republic, Hungary, Russia,
Romania, Croatia, Serbia and Bosnia.
Work Permit Quota for Foreign Workers in 2007 Reached
The work permit quota for non-EU workers was exceeded for the first time in a
decade
The work permit quota for non-EU workers was exceeded for the first time in a
decade, since many citizens of former Yugoslavian republics are looking for work in
Slovenia, a senior Slovenian official said after a meeting of the Employment, Social
Policy, Health and Consumer Affairs Council in Brussels.
Marko Strovs, state secretary at the Ministry of Labour, Family and Social Affairs,
said on Wednesday, 30 May that the quota amounted to approximately 54,000 work
permits.
It is time to discuss whether Slovenia should raise the number of work permits issued
per year, which is what employers strive for, said Strovs, adding that the quotas
should remain the domain of the member states.
According to Strovs, to few work permits present a problem for Slovenia, since the
domestic workforce does not cover all of the less paid jobs due to a well developed
education system.
He added Slovenia did not face the problem of overflow of workers from EU member
states.
INTERNATIONAL COOPERATION
Slovenian, Croatian Commerce Chambers Mull Boosting Cooperation
The two chambers could greatly contribute towards boosting cooperation between
companies in the two neighbouring countries
Samo Hribar Milic of the Slovenian Chamber of Commerce and Industry, and his
Croatian counterpart Nadan Vidosevic agreed on Monday, 28 May that the two
chambers could greatly contribute towards boosting cooperation between companies
in the two neighbouring countries.
"We can surpass the disagreements that appear in politics between Slovenia and
Croatia. We have many reasons to increase cooperation because Croatia is on the path
to Europe," Vidosevic said after the meeting, organised by Slovenia's largest poultry
producer Perutnina Ptuj.
According to a press release by Perutnina Ptuj, which operates food company Pipo
Cakovec, Hribar Milic pointed to Slovenia's experience, which could aid Croatia on
its EU path.
Moreover, companies from both countries have already shown that cooperation does
not only go one way, Hribar Milic added.
FM Stresses Intercultural Dialogue at EU-Asia Meeting
Foreign Minister Dimitrij Rupel attended a meeting of EU and Asian foreign
ministers in Hamburg
Foreign Minister Dimitrij Rupel pointed to the importance if intercultural dialogue
and highlighted Slovenia's activities in the area in the country's upcoming stint as EU
president at a meeting of EU and Asian foreign ministers in Hamburg on Tuesday, 29
May.
Intercultural dialogue will be one of Slovenia's priorities during the first six months of
2008, when the country holds the rotating EU presidency, Rupel told STA after the
close of a two-day Asia-Europe Meeting (ASEM).
Speaking at the meeting of 43 foreign ministers from the EU and Asia, Rupel stressed
the importance of intercultural dialogue and said the topic was important for
improving relations within Europe as well as between the EU and other countries.
The ministers also called on Iran to stop uranium enrichment and actively cooperate
with inspectors of the International Atomic Energy agency (IAEA). They moreover
called for a relaunch of talks on the North Korean nuclear programme and stressed the
need for a comprehensive approach in rebuilding Iraq.
At the sidelines of the meeting, Rupel also held talks with his Chinese, Indian,
Pakistani and South Korean counterparts.
FM: Commission Wants to Improve Political, Economic Situation
Foreign Minister Dimitrij Rupel, the chair of the Caucasus-Caspian Commission,
said that the commission wanted to contribute towards improving the economic and
political situation in the resource-rich region
Foreign Minister Dimitrij Rupel, the chair of the Caucasus-Caspian Commission, said
on Friday, 1 June that the commission wanted to contribute towards improving the
economic and political situation in the resource-rich region.
Rupel, speaking after the commission ended its two-day plenary at Jable Castle near
Ljubljana, said that the meeting discussed new ideas that would surpass the existing
frame of solving problems and conflicts in the region.
"The region presents and alternative for EU's energy sources, however the conflicts
and political disputes there prevent it from fully utilising its potential," Rupel told the
press in reference to the conflicts between Armenia and Azerbaijan, South Ossetia
and Abkhazia.
The debate mainly discussed ways to launch new ideas that would supersede the
existing and conventional ideas on solving problems in the area.
Rupel and Mustafa Aydin, the vice chair of the commission, said it was important that
all countries from the region sit on the commission. The pair added that talks should
also be held with the neighbouring countries in the region, such as Russia, Iran and
Turkey.
According to Rupel, the commission deals with politics, economy, energy and the
environment. He said that two commission members would depart to Turkmenistan as
talks are held on how to link gas fields in Turkmenistan and Azerbaijan.
The plenary moreover discussed the final report that will be put together at the end of
the year. According to Ayding, the report will outline the goings-on in the region and
include ideas and advice to others active there.
The 17-member commission held its first plenary in Brussels in February, while its
third meeting is to take place in London in November. It is composed of
representatives from the EU, US, Russia and countries in the region.
PMs Praise Slovenian-Slovakian Relations
Talks held by the two as part of Jansa's two-day official visit to Slovakia focused on
Slovenia's experience in adopting the euro and international issues
The prime ministers of Slovenia and Slovakia, Janez Jansa and Robert Fico, praised
relations between the countries as they met in Bratislava on Sunday, 3 June. Talks
held by the two as part of Jansa's two-day official visit to Slovakia focused on
Slovenia's experience in adopting the euro and international issues.
Slovakia is planning to adopt the euro in 2009 and Slovenia's experience with the new
currency will be useful for it as it gets ready for the switch. Moreover, talks also
examined bilateral cooperation, viewed by the pair as being "very successful" on all
fronts.
The countries have similar views on a wide range of important international issues,
Jansa and Fico said after their meeting. The biggest difference is over the future of
Kosovo, where, according to Jansa, Slovenia supports UN Special Envoy Martti
Ahtisaari's plan on the conditional independence of the province.
"This is the proposal that is the most feasible in practice," Jansa said and added that it
must be coupled with efforts to present Serbia with a clear European future. "It is
important that the EU adopts a united stance on this issue," the Slovenian PM said.
"There is no practical or theoretical solution that would satisfy both sides. A balanced
decision of the international community is needed here," said Jansa, adding that
consensus must be achieved in the UN Security Council.
The Slovenian PM went on to say that Kosovo was in effect not a part of Serbia. "So
if Kosovo gained independent tomorrow, nothing would change on the ground."
Fico, who would not answer directly whether Slovakia supported Ahtisaari's proposal,
pointed out Slovakia was a non-permanent member of the UN Security Council at the
moment, which would give it a chance to contribute to the final resolution on Kosovo.
He said that Slovakia endorsed the common EU stance, but added that if a resolution
failed to be adopted, it could lead to some countries taking unilateral action that could
destabilise the region.
The PMs agreed that the countries have very similar stances on EU topics. Both
countries support the European future of the Western Balkans and the timely
expansion of the Schengen zone. Regarding the EU constitution, Jansa said the key
was to "take a stop forward as soon as possible".
Fico said that the constitution was a trauma holding back the EU project. According
to him, Slovakia supports the German presidency's proposal, although not changes
that would give certain advantages to one or two countries at the expense of the bloc
as a whole.
Slovenia, also, supports the German presidency's efforts in respect to the constitution,
Jansa said, adding that it was important to see what the limits of compromise were.
"The desired outcome is not a compromise at all cost, but a compromise for the
European constitutional treaty that would facilitate progress in Europe," he said.
Jansa added that it was pleasing to see economic cooperation between the countries
grow by a quarter last year, with trade now worth EUR 500m.
Meanwhile, Fico said Slovakia was interested in Slovenian experiences with adopting
the euro, which is why Jansa will on Monday be taking part in an international
conference on Slovakia's efforts to adopt the single currency. Jansa said Slovakia was
well positioned to adopt the euro.
Slovenia was well-prepared for the switch because other eurozone members were
ready to share their experience. "Also because of this, Slovenia stands ready to share
its experience," said Jansa.
"The adoption of the European currency in Slovenia was followed by a rise in public
support for it. You too should approach it without fear," he added.
Meanwhile, Fico congratulated Slovenia on the recently obtained invitation to join the
Organisation for Economic Cooperation and Development (OECD). He added that
Slovakia would support Slovenia's efforts to finalise its membership.
Jansa also touched on the issue of US plans for a missile shield in East Europe, saying
he was certain that the system was intended for defensive purposes. "Nevertheless, it
would be better if this matter was tackled within the framework of NATO."
EUROPEAN UNION
Minister Promises EU Tenders Before Summer
Local Government and Regional Development Minister Ivan Zagar said Slovenia was
expected to publish the first calls to projects for EU funds before the summer
Local Government and Regional Development Minister Ivan Zagar said Slovenia was
expected to publish the first calls to projects for EU funds before the summer after
meeting European Regional Policy Commissioner Danuta Huebner in Brussels on
Tuesday, 29 May.
Huebner and Zagar's talks focused on cohesion programmes that form the basis for
the drawing of EU cohesion funds. "We expect that the programmes will be
concluded by the summer, with the first calls for projects to be published then as
well," said Zagar.
According to Zagar, awareness about fund phasing had improved in Slovenia. As a
result, he expects there to be "fewer problems" with the phasing of EU funds.
According to him, the Government Office for Local Government and Regional Policy
has invested a lot of energy in raising awareness among municipalities on the
possibilities of obtaining EU regional development funds.
"The first such tender has been drawn up and should be published this or the next
week," said Zagar following the meeting with Huebner.
According to the minister, Slovenia is expected to set aside more than 60% of its
cohesion funds for the promotion of development. "We're pursuing the goals that are
important from the point of the economy," he said.
He said that the projects would respect the priorities set down in the resolution on
National Development Projects through 2023, as well as "bottom-up projects" that
will be prepared by the regions.
Moreover, Zagar promised that Slovenia would not lose the funds it is entitled to in
the framework of the previous EU budget, which lasted until 2006. "All the contracts
have been signed and we will not lose the funds," he said.
Zagar and Huebner also discussed Slovenia's plans for the EU presidency in the first
half of 2008 in the field of regional policy. The Slovenian minister promised Slovenia
would work closely with the Committee of the Regions.
Huebner Says Slovenia Cannot Afford Mediocrity
European Regional Policy Commissioner Danuta Huebner says Slovenia has been
very successful in drawing money from EU structural funds, leading the field among
the newcomers
European Regional Policy Commissioner Danuta Huebner says Slovenia has been
very successful in drawing money from EU structural funds, leading the field among
the newcomers, while she also thinks the country "cannot afford being just mediocre".
"Slovenia has an excellent foundation for sustainable growth", given that in the 20072013 period it will get about ten times as much funds as in the first years of
membership, Huebner said in an interview for STA on Tuesday, 29 May.
According to her, Slovenia is not just the most successful among the newcomers, but
has also left behind Greece, Luxembourg and the Netherlands in acquiring funds from
the EU budget.
What is more, Slovenia ranks third among the EU-25, after Ireland and Sweden, in the
absorption of funds from the European Regional Development Fund, the biggest
among the EU's funds. The situation is not as good in the case of the European Social
Fund and in agriculture, where quite some new members have been more successful.
While the Slovenian system of fund drawing is "very specific", the most important
thing is that it works, believes Huebner. "You should judge how the system functions
on the results... There is a need to invest permanently in administrative capacity."
The challenge for Slovenia now is that the system keeps working when there is much
more money than now, which means it is vital to have a sufficient number of
development projects ready by then, the commissioner said in the interview.
The official is optimistic in this respect. She approves of Slovenia's decision to
allocate most of its cohesion funds directly for the projects that contribute most to
attaining the Lisbon goals. The European Commission estimates the country is to
earmark as much as 65% of cohesion funds for such projects.
Huebner also underscored the need for cooperation with local authorities. A small
country, which cannot afford an expansive administration, must invest in local and
regional authorities, says Huebner, who believes the real challenge is development
strategies at the national, regional and local levels.
She attributes great importance to cooperation with the neighbours, in particular
Croatia as a candidate for membership of the EU. Slovenia's geographical position
makes it compelled to cooperate with others, Huebner said and added that Slovenia
should use its experience to assist Croatia.
"Everybody is watching Slovenia and everybody expects Slovenia to be active in the
years to come," the commissioner said in light of Slovenia's upcoming stint as EU
president.
During Slovenia's presidency, the Commission will release its first report on the
contribution of cohesion to Lisbon goals, which Huebner sees as a key priority in
regional policy during Slovenia's spell.
Majority of Slovenians Satisfied With Euro Switch
Two-thirds of Slovenians are satisfied with the switch to the euro, but the majority
believe that the changeover caused price hikes
Two-thirds of Slovenians are satisfied with the switch to the euro, but the majority
believes that the changeover caused price hikes, according to a Eurobarometer survey
on the euro changeover in Slovenia, which was published in Brussels on Thursday, 31
May.
The majority of Slovenians are convinced that the euro strengthens Slovenia's position
in the international community, while paying with euros makes them more European.
More than four-fifths believe that the changeover was simple, while only 2% say that
the change of prices from tolars to euro presented a problem.
According to the survey, 81% assessed dual price tags as useful and 89% believe that
dual pricing is carried out correctly.
Moreover, 51% would like the period of double pricing to be extended beyond 30
June, while 47% are against.
The survey also shows that 91% of Slovenians no longer hold tolars which they would
like to exchange into euros.
While 81% of the respondents say that the euro changeover caused price hikes, 39%
of Slovenians think that the euro will cause higher inflation in the long run.
The survey also shows that almost a half of the people count and calculate in euros in
their day-to-day shopping, while they still calculate in tolars for exceptional
purchases.
The overwhelming majority, 91%, said they were well informed about the euro, 7%
said they were not.
The survey was carried out between 23 and 27 April among 1,006 respondents.
Slovenian, Czech FMs Say Constitution Needs to Be Tackled Quickly
Slovenian Foreign Minister Dimitrij Rupel came out of a meeting with his Czech
counterpart Karel Schwarzenberg saying that the two countries shared the view that
the issue of the EU's constitutional treaty needed to be resolved as quickly as possible
Slovenian Foreign Minister Dimitrij Rupel came out of a meeting with his Czech
counterpart Karel Schwarzenberg on Thursday, 31 May saying that the two countries
shared the view that the issue of the EU's constitutional treaty needed to be resolved
as quickly as possible.
"Our views on the 'European story' are quite similar," Rupel said after the talks,
adding that the constitutional treaty was increasingly becoming "merely the European
treaty."
Rupel was hopeful that the German EU presidency would make a good proposal for
the treaty and that the matter would be resolved during Portugal's presidency in the
second half of this year.
Rupel and Schwarzenberg also discussed the situation in Serbia and Kosovo. They
voiced the hope that the international community would continue to be unified on the
issue.
Sava Basin Countries Boosting Cooperation
Talks are under way between investors and the power grid operators in Slovenia and
Croatia on the construction of a chain of hydroelectric power stations on the lower
Sava
Talks are under way between investors and the power grid operators in Slovenia and
Croatia on the construction of a chain of hydroelectric power stations on the lower
Sava, Economy Minister Andrej Vizjak confirmed in Zagreb Friday, 1 June,
following the first session of the signatories of the Sava Basin Framework Agreement.
According to Vizjak, cooperation on the construction of plants HE Brezice, HE
Mokrice in Slovenia and HE Podsused in Croatia enjoys political support in Slovenia,
so the minister also expects full support from the Croatian side.
On a different note, the minister said that Croatia responded positively to Slovenia's
plans to make the Sava river navigable all the way to Brezice, near the Croatian
border.
"This is an ambitious project for the future, which costs a lot of money. I'd like
participants in the Sava Basin meeting to be held in Slovenia in 2011 or 2013 to come
to Catez by boat on the Sava river."
At the meeting, Vizjak signed a joint declaration on the Sava, which will serve as a
basis to implement the plan of making the river navigable 600 kilometres up from its
mouth in Belgrade, as well as enable regional cooperation, economic development
and environmental protection of the basin.
Croatian Transport Minister Bozidar Kalmeta announced that by 2011 the Sava would
be navigable from Belgrade to Sisak for the whole year, rather than just 250 days a
year as now.
The Croatian government plans setting up a waterway to Zagreb as well as
constructing a channel connecting the Danube and the Sava, a motion which Kalmeta
expects to be passed in parliament before this year's general election.
The Sava Basin Framework Agreement brings together Slovenia, Croatia, Serbia and
Bosnia-Herzegovina in a bid to enhance cooperation in the use of water resources,
make the river navigable and to pave the way for sustainable development of the
basin.
The implementation of the agreement is the responsibility of a joint body called the
Sava Commission and its Standing Secretariat as the executive body. The commission
is to meet every second year, next time in 2009 in Belgrade.
LEGISLATION
Deal Reached on Labour Legislation
The government, employers and trade unions have reached a deal on changes to the
labour relationships act
The government, employers and trade unions have reached a deal on changes to the
labour relationships act. Agreement has been reached on all chapters, said Labour
Minister Marjeta Cotman, who is confident the document will lead to new jobs and
greater labour flexibility while also retaining the current extent of social security.
The surprise deal comes a year after the social partners began talks that saw the trade
unions and employers argue over workers' rights, such as lunch breaks, holiday
allowance, severance pay and bonuses for years of service.
Both the employers and unions have expressed initial satisfaction with the deal, which
will now be put to the Economic and Social Council, the body uniting the social
partners.
President of the Pergam trade union Dusan Rebolj voiced satisfaction with the fact
that the negotiators reached a compromise on periods of notice, severance pay and
overtime work.
The current period of notice of 150 days will stay for workers with less than 15 years
of service, while slightly shorter periods of notice are envisaged for workers with over
15 years of service.
This solution is coupled with a provision that would see workers of above 50 years of
age or with more than 25 years of service be entitled to an additional month of
unemployment benefits or a full wage in the first month of benefits. "This agreement
takes care of the oldest workers," Rebolj said.
A deal was also reached on the ceiling for overtime work, with the mark being set at
230 hours in a given year, which is closer to the 240 demanded by the employers (the
unions wanted 210).
The compromise reached on severance pay will mean that people fired for business
reasons and for whom the employer or the Employment Service find an alternative
job during the period of notice would not be entitled to severance pay.
France Kokalj of the Employers' Association of Slovenia said all the sides came out
of the talks winners. He believes the document hammered out by the three sides
allows for greater flexibility of labour.
Kokalj was also happy with the provision by which people deciding to quit will no
longer be bound by the period of notice.
New Pension Law to Bring Bigger Bonuses and Disincentives
People will not have to work beyond the current full retirement age, according to the
blueprint of a new pension bill, but they will be penalised for retiring early and
awarded for working beyond the mandatory retirement age
People will not have to work beyond the current full retirement age, according to the
blueprint of a new pension bill, but they will be penalised for retiring early and
awarded for working beyond the mandatory retirement age.
The changes will "gently convince people to opt for later retirement," Labour
Ministry State Secretary Marko Strovs said on Friday, 1 June as he unveiled proposed
changes to the pension and disability insurance act.
People working beyond full retirement age will get bonuses of 0.3% for each
additional month of employment, without limitations. So far progressively lower
bonuses have been confined to the first three years of extra service.
Disincentives will become stricter: in the current system the disincentive decreases as
the employee nears retirement age. Under the new system, employees will be
penalised by 0.3% a month regardless of how close to retirement they are.
Moreover, disincentives for women, which were originally expected to kick in after
2030, will become effective in 2008, according to Strovs.
According to calculations by the daily Dnevnik, the new provisions will be harshest
for those who start working young.
The paper says that the pension of a man retiring at 58 with 40 years of service (the
current minimum) would be 18% lower than under the current system.
According to Strovs, the proposed changes also include measures to cut red tape.
The proposal has been met with criticism by the Association of Free Trade Unions of
Slovenia (ZSSS), the biggest union group in the country.
It is unkind to all women and all who started working when they were young. For
most workers, it leads to greater poverty, ZSSS president Dusan Semolic told the
press.
Semolic said the bonuses were useless for workers in industry, who "barely reach the
minimum retirement criteria" in the first place.
What is more, many people who would wish to continue working are too old for the
employers. For most workers, the bonuses are actually penalties, he said.
The union will seek to change the proposal when it is put to the Economic and Social
Council, the industrial relations forum, on Monday, 28 May.
MPs Pass Changes to Audit of Public Procurement Procedures Act
The parliament passed changes to the act on the audit of public procurement
procedures to allow the contracting authority to proceed with a procurement even if a
rejected bidder has requested a review
The parliament passed on Friday, 1 June changes to the act on the audit of public
procurement procedures to allow the contracting authority to proceed with a
procurement even if a rejected bidder has requested a review.
However, according to the changes, which were passed in a 42:8 vote, the contract
can only be concluded after the National Review Commission decides on the request.
The amendments also say that the Review Commission can decide that a contract can
be concluded even if the review procedure is not completed, taking into consideration
harmful effects of a delay and public interest for the tender.
Bidders requesting a review will have to pay the costs of requests that are deemed
unfounded. In order to reduce the number of requests for revision only intended to
delay the procedures, the amendments also raise the stamp duty.
The legislation has been passed in the wake of several high-profile cases of drawn-out
public tenders, including for much-needed operating tables for several Slovenian
hospitals.
STATISTICS/FORECASTS
ILO-Unemployment at 5.7% in Q1 of 2007
Labour Force Survey data shows that unemployment rate in Slovenia stood at 5.7% in
the first quarter of 2007, up 0.1 of a percentage point compared to the previous
quarter
Labour Force Survey data shows that unemployment rate in Slovenia stood at 5.7% in
the first quarter of 2007, up 0.1 of a percentage point compared to the previous
quarter, the National Statistics Office said on Thursday, 31 May.
In comparison with the last three months of 2006, unemployment among men was up
0.3 percentage points to 4.8%, but it dropped by 0.1 of a point among women to 6.8%.
In the first quarter of 2007, there were 958,000 persons in employment in Slovenia,
2,000 more than in the previous quarter.
The highest share among persons in employment, almost 84%, represented persons in
paid employment. Some 11% of persons in employment were self-employed, while
about 5% of them were unpaid family workers.
Unemployment remains highest in the 15-24 age group (11.6%). The lowest
unemployment rate was registered among babyboomers (55-64 age group): it was at
3.0% and significant for men since there were almost no unemployed women in the
this age group.
In the first three months of 2007 the number of unemployed persons increased in
comparison with the fourth quarter of 2006 by slightly more than 1,000.
The data is taken from the Labour Force Survey, which is based on internationally
adjusted definitions of the International Labour Organisation (ILO) and the EU's
Eurostat.
Dearer Petrol Pushes Annual Inflation to 2.9%
A spike in petrol prices pushed Slovenia's annual inflation 0.3 percentage points
higher to 2.9% in May, the highest rate since August last year
A spike in petrol prices pushed Slovenia's annual inflation 0.3 percentage points
higher to 2.9% in May, the highest rate since August last year. Prices rose by 1.2% on
average in May, the third consecutive month of strong price growth, the Statistics
Office said on Thursday, 31 May.
Prices of petrol and lubricants rose by 5.1% on average and were among the biggest
contributors to overall price growth. Transport prices in general rose by 1.3%, shows
data from the Statistics Office.
Price growth in May was almost evenly distributed among goods and services - the
former rose by 1.2% and the later by 1.1%, director of the Statistics Office Irena
Krizman told the press on Thursday, 31 May.
In an annual comparison, services were 4.1% dearer and prices of goods rose 4.3%.
Apart from petrol, the main monthly price rises among goods involved clothes and
footwear (3.3%) and food (1.7%). The price of food has grown by 6.3% in the last 12
months, the figures show.
Among the services, the statisticians noted an 8% monthly rise in the price of holiday
packages, Krizman pointed out.
Also standing out in May were price increases in child-care services, which were
6.3% dearer, and fruit, which rose 11.7% dearer.
The Statistics Office registered only one price drop among the monitored groups in
May, as health services were 0.2% cheaper.
Prices rose across all groups of goods and services compared to last May. The biggest
price hikes were in the hospitality group (6.8%), while the housing group (0.4%)
stood at the other end of the scale.
FINANCE
Abanka Vipa Reports Nearly EUR 10M in Q1 Net Profit
Abanka Vipa, the third largest Slovenian bank reported EUR 9.84m in net profit for
the first quarter of this year, which is up 48% over the same period last year
Abanka Vipa, the third largest Slovenian bank, on Wednesday, 30 May reported EUR
9.84m in net profit for the first quarter of this year, which is up 48% over the same
period last year.
In a press release on the website of the Ljubljana Stock Exchange, the bank also
reports a 1% increase in total assets to EUR 2.88bn. At the end of March it
commanded a market share of 8.3%.
The bulk of assets was in loans. These increased by 0.8% from the end of 2006 to
EUR 2.04bn in the first quarter. The bank's financial liabilities amounted to EUR
2.60bn, down 0.2% compared to the end of 2006.
Triglav Reports 31% Jump in Net Profit for 2006
Slovenia's largest insurer, Zavarovalnica Triglav, has reported a net profit of EUR
36.3m for 2006
Slovenia's largest insurer, Zavarovalnica Triglav, has reported a net profit of EUR
36.3m for 2006, a 31% rise over the year before. Total premiums for last year stood at
EUR 817m, up 15% over 2005, the company said in a press release on Thursday, 31
May.
The company's main money-maker was property insurance, making a profit of EUR
34.2m. Its life insurance department ended the year with a profit of EUR 9.2m, while
the health insurance sector made a loss of EUR 8.34m.
Payouts grew at the same speed as premiums, amounting to EUR 449.7m. The total
operating costs of the group, which commands a 43.5% market share in Slovenia,
stood at EUR 191.5m, the company added.
According to the press release, the total assets of the group rose 38% to EUR 375.4 in
2006. The management has expressed satisfaction with the results. It said in the press
release that the goal of the group was to become the biggest insurer in SE Europe by
2008.
Former Governor Warns against Excessive Wage Growth
Former central bank governor Mitja Gaspari has sounded a note of caution against
excessive wage growth in Slovenia
Former central bank governor Mitja Gaspari has sounded a note of caution against
excessive wage growth in Slovenia. "We could have problems if we subscribe to the
idea that it is not necessary for wage growth to lag behind productivity gains," he said
at the Brussels Economy Forum on Friday, 1 June.
Gaspari said he was not trying to make life difficult for the government, but when
economic growth slows down problems will be bigger than they would be if
adjustments start now.
"Adjustment is the basic rule of the euro zone. Countries which are more adjustable
and flexible can survive external shocks more easily," he said.
Gaspari noted that in the eurozone, interest rates and foreign exchange policies are no
longer in the hands of the individual member states.
This "supranational policy" in which phase of the development cycle an individual
member state is, so "it is important to be prepared".
He noted that individual countries still had fiscal and wage policies, they can adjust
the structure of spending and they control health and pension systems.
"Considering the ageing of our population and the rising health costs, these are
problems that cannot be deferred."
For Gaspari, the key aspect is the adjustability of budget spending. "If we have a 1%
deficit with (GDP) growth of 5%, we need to ask ourselves what the deficit would be
if growth was 2%."
"It is necessary to proceed gradually, which is certainly cheaper than doing it in one
go and too late," he said, adding that this was the right time to act on the side of public
spending.
Gaspari delivered his speech "From EU accession to euro adoption" as part of the
"Fostering catching-up and cohesion in the EU" section at the forum.
Analysis: Slovenian Insurance Sector Below Eurozone Average
The insurance business in Slovenia is lagging behind the richest European Monetary
Union members and often behind the eurozone average
The insurance business in Slovenia is lagging behind the richest European Monetary
Union members and often behind the eurozone average. However, some member
states are lagging behind even more, shows an analysis presented at the Days of
Slovenian Insurance in Portoroz on Friday, 1 June.
In order to catch up, premiums need to grow 26% faster than the average growth in
the eurozone, which was already achieved in 2005 and 2006, Franjo Stiblar of the
Economics Institute at the Ljubljana Law Faculty and Filip Sramel of reinsurance
company Pozavarovalnica Sava explained.
While Slovenia contributed 0.34% of the eurozone GDP in 2005, insurance premiums
in Slovenia only amounted to 0.25% of gross premiums in the thirteen members.
The authors of the analysis said that the non-life insurance market in Slovenia was
above the eurozone average, while the sector of life insurances was less developed.
The analysis reveals that compared to the average of the surveyed countries,
Slovenian insurance companies were overcapitalised, Sramel said. Stiblar added that
because of the capital power of the insurance companies he was in favour of
integration within the insurance sector and as part of the finance sector.
According to Stiblar, productivity and economy are the weak points of Slovenian
insurance companies, which is partly the consequence of the fact that they are small.
He thinks that Slovenian insurers should enter foreign markets.
Stiblar finds the number of insurance companies in Slovenia too high for the small
market, while their average size is considerably below the eurozone average. The
number of employees in insurance companies is above-average, with the number of
clients per office below the average.
Lojze Socan of the Ljubljana Faculty of Social Sciences meanwhile said that the
insurance business in Slovenia lacked inventiveness. In his opinion, Slovenia will
never catch up with the highly developed countries without innovation.
Ljubljana Stock Exchange
Stock market index ended week just below 9,500 points
Ljubljana, 2 June (STA) - A see-saw week on the Ljubljana Stock Exchange took the
main market SBI 20 index to 9,478.99 points, up 96.18 (1.03%) on the week. The SBI
TOP index of the ten biggest blue chips added 17.58 points (0.87%) to 2,044.99.
Trading was moderate this week, as brokers concluded EUR 32.7m in regular deals
and an additional EUR 20m in block trade.
Pharma company Krka was the most popular item, accounting for EUR 4.92m in
regular deals. The share added 0.96% to EUR 911.45.
Telco Telekom Slovenije was the second most coveted item, accounting for EUR
3.57m worth of regular deals. The item lost 2.68% to EUR 440.02, the biggest drop
among the blue chips.
Energy trader Petrol had a more upbeat week, gaining 1.29% to EUR 654.50 on
regular deals worth EUR 3.07m. Petrol also generated EUR 2.91m in block deals.
Chemical-through-tourism conglomerate Sava was meanwhile the winner of the
week, soaring 7.23% to EUR 467.76. On the other side of the board, port operator
Luka Koper shed 1.37% to EUR 90.08.
Investment funds had an upbeat week, pushing the PIX investment funds index 63.93
points (1.02%) higher to 6,346.48 points, while the BIO bond index rose by 0.24
points (0.21%) to 117.23.
BRANCH INFORMATION
Power Utilities Debate Grid Stability, Renewables
Some 450 Slovenian energy experts were debating the stability of the Slovenian power
system and the use of renewables at a five-day conference
Some 450 Slovenian energy experts were debating the stability of the Slovenian
power system and the use of renewables at a five-day conference which started on
Monday, 28 May and features the biggest players on the Slovenian electricity market.
"We are focusing on how to build and upgrade the Slovenian electricity system in an
optimal way," said Maks Babuder of the technical committee at the International
Council on Large Electric Systems (CIGRE).
The Slovenian system will have to be upgraded more intensively - when it was being
built the equipment that was installed was not of the highest quality, Babuder told the
press ahead of the conference.
"The system was not growing in line with the needs, and it does not have spare
capacity," he added.
Output will increase over the coming years as hydro plants on the lower Sava are
gradually constructed and brought online.
Power companies see additional opportunities in biogas, solar and wind power.
After 2013, when the Krsko Nuclear Power Plant (NEK) is due for the periodical
safety inspection, there are plans to extend the life of the power plant.
NEK director Stane Rozman said that the facility would be ready for an extension of
the life span from 40 to 60 years without major fresh investment.
Water Quality in Slovenian Bathing Areas Improved in 2006
An overview of the situation of bathing water in EU member states shows that the
quality of water in coastal bathing areas in Slovenia was high in 2006
An overview of the situation of bathing water in EU member states shows that the
quality of water in coastal bathing areas in Slovenia was high in 2006. Apart from
three freshwater bathing areas, all complied with mandatory minimum imperative
values, said a press release from the European Commission on Thursday, 31 May.
The three bathing areas that did not comply with the mandatory values were
Zuzemberk and Straza on the river Krka, and Ucakovci-Vinica on the river Kolpa.
However, bathing has not been prohibited in any of Slovenia's 37 bathing areas, and
Slovenia did not remove any bathing areas from its national list.
Compliance with mandatory values in coastal bathing areas in Slovenia increased by
5.3% to reach 100%, and compliance with the stricter guide values remained at
84.2%.
In freshwater areas compliance with mandatory values increased from 50% in 2005 to
83.3% in 2006. Only eight out of 18 bathing areas (44.4%) complied with the
unbinding guide values, an increase of 5.5 percentage points compared to 2005.
Member States are required to monitor the water quality in their designated bathing
areas through regular sampling during the bathing season and to report the results to
the European Commission.
Small Businesses Happy with Government, but Want More
The entrepreneurs, meeting at the 11th Days of Slovenian Crafts in Portoroz, called
for a more flexible labour market, a reinstitution of tax breaks for investments and
less red tape
Slovenian small businesses and entrepreneurs expressed pleasure on Thursday, 31
May with the government's economic policies. Even though the number of demands
voiced each year by the Chamber of Crafts Industries (OZS) is decreasing, the
chamber addressed 60 new demands on the government.
The entrepreneurs, meeting at the 11th Days of Slovenian Crafts in Portoroz, called
for a more flexible labour market, a reinstitution of tax breaks for investments and
less red tape.
The 400 craftsmen in attendance at this year's conference were addressed by OZS
chairman Miroslav Klun, who said that the demands do not stem from unhappiness
but merely reflect the problems and needs of the chamber's members.
According to Klun, the government met 40% of their demands from 2005 and 50% of
the 120 demands from 2006. This resulted in faster economic growth, employment
and modernisation, he added.
The entrepreneurs moreover called for a better business environment, transparent tax
system, more efficient vocational education and better environment protection.
Labour, the Family and Social Affairs Minister Marjeta Cotman said that labour
flexibility was in part guaranteed by the amendments to the employment relationships
act, which were recently agreed by the social partners.
The legislation brings flexibility of working hours, shortens periods of notice and
brings more opportunities for fixed-term contracts, the minister said.
Public Administration Minister Gregor Virant, praised for his measures by the
participants, said that the OZS was one of the organisations that contributed the
largest share of proposals to cut red tape.
Andrej Sircelj, state secretary for taxes at the prime minister's office, meanwhile said
that tax legislation would be amended if it does not bring about the desired results.
However, no major changes to the tax system are planned for the next two years, he
said after being quizzed whether the government was thinking about restoring tax
breaks for investments.
The event was also attended by Economy Minister Andrej Vizjak and Education and
Sports Minister Milan Zver.
Laptops Boost Q1 Computer Sales
The sales of personal computers in Slovenia grew by 10.5% in the first quarter of
2007 over the same period last year, boosted by the increasing popularity of laptops
The sales of personal computers in Slovenia grew by 10.5% in the first quarter of
2007 over the same period last year, boosted by the increasing popularity of laptops.
Their sales rose 23.8% while desktops edged up 3.4% in a trend that can be seen
throughout Central and Eastern Europe, analytical firm IDC said on Monday, 28 May.
HP remains the leading brand. In the first quarter it controlled 20.2% of the Slovenian
market, followed by Lenovo and Toshiba, according to the IDC report.
According to IDC, laptops are becoming the most popular products on the market,
thanks to favourable prices. In Western Europe, they hold a 50% share.
The biggest buyers of computers in Slovenia are small and medium-sized companies,
followed by home users and small offices. Together, both segments account for
81.5% of all personal computers sold.
Among chip makers, Intel commands a healthy lead over its only rival, AMD, with
77.9% of computers sold in Slovenia using its processors. AMD's share dropped by
1.9% percentage points year-on-year to 22.1%.
IDC analysts predict that the demand for laptops will continue to rise.
COMPANIES
Istrabenz Halves Q1 Profit
While revenues were down 21% year-on-year to EUR 153.4m, net profit shrunk by
55% to EUR 0.7m
Istrabenz, the Koper-based food, tourism and energy conglomerate, recorded a slump
in operating revenues and profit in the first quarter of this year. While revenues were
down 21% year-on-year to EUR 153.4m, net profit shrunk by 55% to EUR 0.7m, the
company said on Wednesday, 30 May.
According to the company's press release, the main reason behind the slump is the
offload of a 49.95% stake in power distributor Istrabenz Gorenje, a joint venture with
the household appliance manufacturer. Operating revenues were 1% above the target.
The companies making up the tourism arm posted 80,560 overnight stays in the first
quarter, which is up 18% over the same period last year. This was reflected in higher
operating revenues, which totalled EUR 6.6m in the period.
Major investments were the renovation of the landmark Portoroz hotel Palace and the
construction of a new wellness centre in Grand Hotel Adriatic in the Croatian seaside
resort of Opatija.
The food division posted better-than-expected results, generating EUR 80.7m in
operating revenues, mainly on the account of successful operations in the coffee and
sweets programmes.
Operations in the gas division were considerably affected by the mild winter and
lower demand for heating gas.
The group expects to generate EUR 26.3m in net profit this year, Istrabenz also said
in its press release.
The company held an AGM at which the shareholders endorsed the resolution to
spend EUR 3.37m on dividends totalling EUR 0.65 gross per share.
The management board will get a performance bonus of EUR 400,000 and the
supervisory board EUR 200,000 and the remaining EUR 5.1m of distributable profit
will go into reserves.
The resolutions go against the will of the state-run funds KAD and SOD, which
wanted to give the management board only EUR 92,000 and award no bonus to the
supervisors.
The management board received the go-ahead to buy back shares in the total amount
of 10% of the share capital. The shares would be used for management bonuses.
Istrabenz chairman Igor Bavcar rejected the notion that this was a prelude to a
management buyout.
However, he said that the managers would start mulling this option when the state
funds (which own nearly a third of the company) offload their holdings.
First Claimants Receive Telephone Network Reimbursements
Under the 2007 amendments, however, the state transferred 10% of the Telekom
shares to SOD so that disbursement could start immediately
People who between 1974 and 1995 invested their own money in what is now the
fixed network of Telekom Slovenije started getting some of it back on Monday, 28
May under the act on the return of investments in the public telecommunications
network.
The state-run Restitution Fund (SOD), which is in charge of the payments, paid out
nearly EUR 5.7m, reimbursing over 5,300 people, or about a third of all claimants.
Economy Minister Andrej Vizjak told the press that subsequent payments would be
carried out every fortnight. All claimants are expected to be reimbursed by the end of
the year.
Although SOD is using its own money to pay the claims, the state will give it 10% of
the stock of Telekom Slovenije, which is worth some EUR 290m on the stock
exchange.
SOD director Marko Pogacnik said that his fund could use the shares as it wished,
which includes selling them on the stock exchange or joining the privatisation of the
remaining state share.
According to him, any excess money from the sale of the stake would be refunded to
the state.
The compensations are being paid out based on the 2002 act that stipulates that
thousands of claimants would get their money when Telekom Slovenije is privatised.
Under the 2007 amendments, however, the state transferred 10% of the Telekom
shares to SOD so that disbursement could start immediately.
Outgoing State Secretary Appointed Chief Delo Supervisor
Starina Kosem was appointed supervisor at the shareholders' meeting along with
lawyer Stojan Zdolsek and Rebeka Lah, the head of the Maribor branch of the
Austrian bank Sparkasse
Andrijana Starina Kosem, outgoing state secretary at the Economy Ministry, was
appointed on Monday, 28 May the chair of the supervisory board at Delo, the
company publishing Slovenia's leading broadsheet.
Starina Kosem was appointed supervisor at the shareholders' meeting along with
lawyer Stojan Zdolsek and Rebeka Lah, the head of the Maribor branch of the
Austrian bank Sparkasse.
The three new supervisors, who replace four representatives of shareholders on the
supervisory board, already met and elected Starina Kosem president.
The AGM came after beverage group Pivovarna Lasko recently upped its stake in
Delo to 94%.
Delo chairman Danilo Slivnik told the press that the management would continue its
activities in line with plans to make Delo "a successful company in all aspects".
Starina Kosem said that the supervisors supported the management in all of its plans.
"We agree with the management's assessment that several changes will be necessary
at editorial posts," she added.
Slivnik also announced there would be certain changes in personnel, but would not
disclose further details, as "changes will first be discussed within the company".
Within a month, the management will also decide on the fate of Delo's editor-in-chief,
Peter Jancic. The opinion of the newspaper's collective will not be disregarded,
Slivnik said.
"The important thing is how the journalists and the management see the role of the
editor-in-chief. We want a solution where the editor-in-chief will have adequate
support," Slivnik explained.
Meanwhile, the leading broadsheet has many plans for the future. These include
production of a new daily in compact format and a free weekly Total tedna, which
will be sent to two thirds of Slovenian households, Slivnik said. The weekly will have
a print run of 350,000, the largest in Slovenia, Slivnik explained.
Car Components Makers Call for Greater Synergy
Companies that form the Automotive Cluster of Slovenia (ACS) agreed that
innovation was the main competitive advantage of successful companies
Companies that form the Automotive Cluster of Slovenia (ACS) agreed on Tuesday,
29 May that innovation was the main competitive advantage of successful companies.
However, being innovative requires a lot of know-how and cooperation, which is why
the companies called for more cooperation at Brdo pri Kranju.
Dusan Busen, the head of the ACS, told the press after the meeting that the cluster had
been aware for some time that its largest potential lay in associating several suppliers
from different areas into a chain of suppliers of integrated systems.
The automotive industry is furthermore trying to reduce the number of suppliers and
is turning to companies that can provide a large number of integrated systems.
"We are facing new challenges in the new EU budget," Busen said and added that the
cluster has 30 development projects worth EUR 80m lined up for support from EU
funds. It expects support from the country and the EU in fulfilling them.
Higher Education, Science and Technology Minister Jure Zupan and Economy
Minister Andrej Vizjak pledged Slovenia's support in their addresses at the event.
The ACS combines over 50 companies and higher education institutions with the
most prominent being Iskra Avtoelektrika, a maker of electric components; Prevent, a
seat covers maker; and Vesna, the maker of car batteries.
E-Banking Provider Halcom Upped Revenues, Profits in 2006
Halcom, a provider of e-banking and other IT services, generated revenues to the
tune of EUR 5.5m in 2006, up 28% over 2005
Halcom, a provider of e-banking and other IT services, generated revenues to the tune
of EUR 5.5m in 2006, up 28% over 2005. The company's profit meanwhile rose by
14% to EUR 1.3m, Halcom director Matjaz Cadez told the press on Wednesday, 30
May.
According to Cadez, Halcom generated nearly half of its profit abroad. The company
operates in seven countries and its solutions are used by 56 banks, meaning a total of
105,000 users.
Halcom employs 98 people and has offices in Ljubljana, Belgrade and Sarajevo. Its
plans include an expansion to the Middle East, while it still does not have a foothold
on the Croatian market, something that Cadez believes will eventually change.
E.Leclerc Opening Supermarket in Maribor
E.Leclerc, a leading European retailer, will open its second outlet in Slovenia in
Maribor on 7 November in an investment worth EUR 26m
E.Leclerc, a leading European retailer, will open its second outlet in Slovenia in
Maribor on 7 November in an investment worth EUR 26m. The shopping centre will
create 200 new jobs and is expected to attract two million shoppers and turn over
EUR 50m a year, its owner, Alain Gomez, told reporters in Maribor on Wednesday,
30 May.
The centre will spread over an indoor area of nearly 20,000 square metres, the
supermarket covering a quarter of this, while the remaining area will accommodate 31
shops. The car park will have the capacity for 1,000 vehicles.
According to Gomez, the supermarket will offer 70,000 goods, one fifth of them
French-made, while all major Slovenian brand names will also be available. Shoppers
are expected to come from as far as Croatia, Austria and Hungary.
By 2009 at the latest, E.Lecrerc also intends to build in a service station in Slovenia's
second largest city, while it plans to open one in Ljubljana this September.
E.Leclerc Slovenia chairman Jean-Francois Higonet said that the shopping centre in
Ljubljana, which opened eight years ago, generated EUR 72.054m in sales in 2006.
According to Higonet, the French retailer has a 1.7% market share in Slovenia. "By
opening the Maribor store we want to exceed the level of 2%, while we plan a 5%
market share for the future."
Higonet explained that the E.Leclerc group numbered 574 shopping centres, 67 of
them outside France. The centres in France generated more than EUR 29bn in sales
last year, followed by those in Poland (EUR 389m).
MIP Establishes Foothold in Serbia
Slovenian food company MIP has acquired a majority stake in Kolbis
Slovenian food company MIP has acquired a majority stake in Kolbis, a meat
processing company from Serbia, in what it says is a strategic move designed to take
advantage of the new customs union forming in South-eastern Europe.
The new customs union will include Croatia, Serbia, Bosnia and Herzegovina,
Montenegro, Macedonia, and Moldova.
The majority stake in Kolbis is only the first step for MIP towards establishing a
foothold on the markets of these countries, where MIP will launch its own and
Kolbis's trade mark, the company said on Wednesday, 30 May.
A part of MIP's products destined for these countries will be produced in Kolbis. MIP
said the production programme of Kolbis was compatible with that of MIP, and added
Kolbis was one of five Serbian meat companies permitted to export to the EU.
MIP, which is best known in Slovenia for prsut, the traditional Slovenian air-cured
ham, acquired the stake for an undisclosed sum.
Adria Gets Two New Regional Planes
The two 86-seat Canadair Regional Jet CRJ 900 planes round off Adria's fleet
The Slovenian flag carried on Thursday, 31 May took delivery of two new regional
aircraft that will be used on its European routes. The two 86-seat Canadair Regional
Jet CRJ 900 planes round off Adria's fleet, the company said.
The carrier has until now lacked mid-sized regional aircraft, operating the smaller 48seat CRJ 200 planes and the larger Airbus 320 models. At the ceremony to accept the
delivery of the two planes at Ljubljana's Brnik airport, the Adria chairman said the
new planes also met the company's high environmental standards.
According to Adria, the CRJ 900 is considered to be the most economical plane in the
regional class of passenger jets. "Emission and noise level are well below what is
permitted by international standards, while fuel economy is very high," Tadej Tufek
said.
The new planes, which have a range of 3,660 km, will be used to service Adria routes
connecting Ljubljana with Brussels, Moscow, Vienna, Paris, Frankfurt and Munich,
as well as for other regular and charter flights, the company said.
The new plane has an 80% greater capacity than the existing CRJ 200 jets, while its
operating costs are only 30% higher. What is more, the CRJ 900 can be operated by
the same crews as the CRJ 200 and will be maintained by the carrier's own CRJ
service centre, Adria added.
Three Companies Form Construction Holding
The GH Holding was set up by Konstruktor VGR, Kraski zidar and SGP Pomgrad,
which hold equal stakes in the new company
Three mid-sized Slovenian construction companies have established a holding in a bid
to compete with bigger rivals. The GH Holding was set up by Konstruktor VGR,
Kraski zidar and SGP Pomgrad, which hold equal stakes in the new company.
The new holding unites more than 1,300 employees and revenues in excess of EUR
250m. Its chairman Blaz Miklavcic told the press on Thursday, 31 May that he
expected revenues to double in the next three years through ambitious projects.
The main segment for the new company will be high-end real estate development, the
construction of environmentally-friendly buildings and civil engineering projects, said
Miklavcic.
The three companies that have joined forces will each contribute their specialty
services into the new holding, which will operate both at home and abroad. The main
foreign markets being eyed by the company are Serbia, Montenegro, Macedonia and
Albania, said Miklavcic.
GH Holding is already beginning work or is expected to begin work in the near future
on three projects with a total value of EUR 270m.
The main project is a tourist centre in the lakeside resort of Bled, which Miklavcic
said could become one of the most beautiful tourist centres in Europe.
The centre, which will be set in a sprawling estate of 12 hectares, will include a highend hotel and wellness centre, shopping and entertainment facilities, and apartments.
The holding is also expected to start work on two mid-sized towers in the BTC trade
hub in Ljubljana and a biogas production facility in Motvarjevci in NE Slovenia.
Food Producer's Revenues Up, Profit Down in Q1
Food producer Droga Kolinska generated net revenues to the tune of EUR 76.9m in
the first quarter of 2007
Food producer Droga Kolinska generated net revenues to the tune of EUR 76.9m in
the first quarter of 2007, up 3% year-on-year. The group's net profit dropped by 20%
to EUR 1.4m, the company said on Thursday, 31 May.
Warm drinks accounted for the bulk of revenues (35%), followed by confectionery
(18%) and soft drinks (11%), Droga Kolinska said in a press release.
The group wants to become the leading producer of foods in the region in 2007, and
take its main brands among the top three on the market by 2010.
Droga Kolinska, which is almost wholly owned by conglomerate Istrabenz following
a successful takeover earlier this year, plans revenues of EUR 358m in 2007, 3%
more than in 2006.
Alenka Paulin Takes over at STA Helm
Alenka Paulin took over as the acting director of the Slovenian Press Agency (STA)
on 1 June
Alenka Paulin took over as the acting director of the Slovenian Press Agency (STA)
on Friday, 1 June, replacing Lidija Pavlovcic, who was dismissed by the government
last week.
Paulin, so far a spokeswoman at the prime minister's office, was appointed by the
government last week for a maximum term of one year. During this time Paulin is
expected to publish a call for applications to fill the post of STA director.
Born in Nova Gorica on 11 December 1966, Alenka Katarina Paulin graduated in
international relations from the Ljubljana Faculty of Social Sciences in 1991 and
received her Master's degree in communicology from the same faculty five years
later.
Paulin began her career in public relations and marketing. She has also worked as a
journalist and entered politics in the early 1990s, when Slovenia was gaining its
independence.
In 2000, Paulin joined the Slovenian Democratic Party (SDS) and became adviser to
what was then an opposition deputy faction.
During the spell of the caretaker government of Andrej Bajuk in the second half of
2000, she served as the head of the Government PR and Media Office and in the 2004
Euro elections stood for a seat in the European Parliament as the first candidate on the
list the Youth Party and the Greens of Slovenia.
SLOVENIA IN BRIEF
FM, US Senator Focus on Kosovo Issue
Foreign Minister Dimitrij Rupel and George V. Voinovich, Ohio's senator of
Slovenian descent, discussed on Monday, 28 May the issue of Kosovo, Slovenian EU
presidency in the first half of 2008 and bilateral relations. Addressing the press after
the meeting, Rupel said the pair focused on Kosovo and the UN Security Council's
activities relating to the issue. It is important that the EU and US remain united
concerning the future status of the province, Rupel said.
Drnovsek Puts Forward Ex-Vice Governor for Central Bank Boss Governor
President Janez Drnovsek began consultations with parliamentary factions on
Wednesday, 30 May by presenting his new pick for the central bank boss to the senior
coalition Slovenian Democrats (SDS). Joze Tanko, the head of the SDS deputy group,
said that Drnovsek put forward Marko Kranjec, a former vice governor of Banka
Slovenije.
Forum Says Public-Private Partnership Important for R&D
Participants in the fourth European Regional Economic Forum heard in Nova Gorica
on Thursday, 31 May that partnership between the public and private sectors in
investing into research and development was important in forming a knowledge-based
society. European Regional Policy Commissioner Danuta Huebner, who addressed
the conference via videolink, said that since 2000 the EU had allocated EUR 15bn for
research and development, 70% of which went to less developed countries, including
Slovenia. She added that in future the funds would increase.
Irish, Slovenian Courts of Audits Exchange Experience
John Purcell, Ireland's comptroller and auditor general, and Igor Soltes, the head of
the Slovenian Court of Audits, exchanged experience on EU funds and public-private
partnerships as they met in Ljubljana on Thursday, 31 May.
Government Office for Communication Gets New Director
The government on Thursday, 31 May relieved the director of the Government
Communication Office, Gregor Krajc, of his duties. Anze Logar, spokesman at the
Government Office for European Affairs (SVEZ), was appointed acting director.
Starina Kosem Dismissed from KAD Supervisory Board
The government has dismissed Andrijana Starina Kosem from the supervisory board
of the state-run Pension Management Fund (KAD), a move that a corporate lawyer
has labelled retaliation for her ascent to the helm the supervisory board of newspaper
publisher Delo.
Former Banka Slovenije Governor to Dispense Euro Advice
Former governor of Slovenia's central bank Mitja Gaspari has told STA that life after
Banka Slovenije for him will entail advising "interested countries" on the euro.
Gaspari also commented President Janez Drnovsek's latest pick for central bank
governor, saying he viewed positively the choice of economist Marko Kranjec.