Slovenia Business Week no. 23, June 18th, 2007 Table of Contents:
Slovenia Business Week no. 23, June 18th, 2007
Table of Contents:
Eurozone Members Should Sync Their Reforms, IMF Expert Says ..................................... 4
Ambassador: Slovenian Companies Invested EUR 900m in Serbia ...................................... 6
PM Visits Carmaker on Eve of Government Stopover in Dolenjsko .................................. 17
EBRD Official Says Slovenian Companies Lack Competitive Edge .................................. 21
PM Opens Pharma Company Krka's New Active Ingredients Plant ................................... 23
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HEADLINES
Telekom Buys Top Search Engine
Telekom said the acquisition was in line with its strategy of strengthening its position in internet services
Telco Telekom Slovenije has acquired a 75% share in the company behind Slovenia's leading internet search engine, Najdi.si. The company paid EUR 8.55m for the majority stake in
Interseek, the company announced in its press release on Wednesday, 13 June.
Telekom signed the deal with Interseek, which also operates search engines in Croatia, Serbia,
Macedonia and Bosnia-Herzegovina, in Ljubljana on Wednesday, 13 June. Telekom said the acquisition was in line with its strategy of strengthening its position in internet services.
Najdi.si tops the list of Slovenia's most popular internet sites, as it is used by 800,000
Slovenians or 85% of all internet users, Telekom added.
According to Telekom, the acquisition is a continuation of the restructuring of operations and integration of content. The company also wants to provide fresh content to its recent acquisitions on the markets of the former Yugoslavia, including internet service providers in
Kosovo and the Republic of Srpska.
Telekom chairman Bojan Dremelj said at the signing ceremony that the takeover was a logical development given Telekom's development strategy and goal to offer the best services in one place.
Telekom will register the acquisition with the Competition Protection Office, which must give its approval to confirm the deal.
Meanwhile, the director of the company operating the Slowwwenia.com portal believes
Telekom is too late with the purchase. According to Aljosa Domijan, Google is well on the way to blowing out the local competition, including in Slovenia, in search engines.
"Experience in other European countries shows that Google has won everywhere, which is why I expect the same thing will happen here," Domijan told STA. He added that Google was reportedly looking to open a branch office in Slovenia, while the future for the local competition was in niche searches.
Domijan nevertheless believes that Telekom got a very good price for Interseek. "Compared to abroad...this is a very good price for the buyer. I think the company was sold too cheaply."
Professor at the Ljubljana Faculty of Social Sciences and the head of a national survey on internet use Vasja Vehovar praised the acquisition. "The first impression...is that this is positive, as it increases the chances of retaining a Slovenian brand in the region," he said.
According to Vehovar, the acquisition increases Telekom's chances of becoming a strong player in the region. "It is a fact that Najdi.si is one of leading local search engines in terms of market shares. But on the other hand the expansion of Google's services makes it much more difficult to form a strategy for the future," he said.
The takeover of Interseek is the latest in a string of mergers and acquisitions involving
Telekom of late. Last week the telco bought the internet unit of Slovenian telecommunications company Perftech and at the end of April it signed a deal with US company Verizon International on the acquisition of 50% of Gibraltar telco Gibtelecom.
Meanwhile, Najdi.si, which finished 2006 with revenues of around EUR 3.5m and a profit of
EUR 558,000, was reportedly being eyed recently by Austrian publishing group Styria.
Interseek said that the change of ownership would not lead to lay-offs at the company that employs 65 people.
The 25% share not bought by Telekom remains in the hands of the company Noviforum and its partners.
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Eurozone Members Should Sync Their Reforms, IMF Expert Says
Members of the eurozone could eliminate transitional costs of national reforms aimed at achieving the goals of the Lisbon Strategy if they synchronised them, Luc Everaert of the
International Monetary Fund (IMF) said in Kranjska Gora
Members of the eurozone could eliminate transitional costs of national reforms aimed at achieving the goals of the Lisbon Strategy if they synchronised them, Luc Everaert of the
International Monetary Fund (IMF) said in Kranjska Gora on Thursday, 14 June.
Everaert, speaking at an international conference on national reforms for the implementation of the Lisbon Strategy, said that some results of national reforms were already bringing results. However, he added that these reforms were long-term and could even cause transitional costs for the labour and services markets in the short run.
Simulations have shown that reforms of the labour and the service sectors could result in significant transitional costs if the monetary policy cannot react efficiently, be it because of the monetary union or the fixed exchange rate. Synchronisation of reforms could eliminate those costs, he added.
The participants of the two-day conference, organised by the Institute for Macroeconomic
Analyses and Development (IMAD), a government think-tank, were addressed by Gert Jan
Koopman, director of the European Commission's Enterprise and Industry Directorate.
According to Koopman, the Lisbon Strategy has begun bearing fruit. While the progress is not as ambitious as the Commission wants, economic results are consistent with the reforms that the countries undertook, he added.
He believes that the central challenge for the EU is increasing investment in research and development, reducing the administrative load and improving the effectiveness of labour. If the EU states manage to cut red tape by a quarter, they can increase the speed of economic growth by 1.3% by 2025, he said.
The 10th IMAD conference that took part alongside the 38th Conference on Medium-Term
Economic Assessment (CMTEA), was attended by over 100 experts from 23 EU countries, as well as representatives of the European Commission and the IMF.
Wages Dip Slightly in April
The average gross wage in Slovenia dropped 1.2% in April over March, to EUR 1,237.42
The average gross wage in Slovenia dropped 1.2% in April over March, to EUR 1,237.42, but was up 5.9% over the year before, the Statistics Office said on Friday, 15 June.
Figures suggest the average net wage was 0.9% lower on a monthly comparison, at EUR
807.86. Compared to April of last year, the average net wage grew by 8.3%.
In real terms the monthly drop in gross wages was even higher, at 2.3%, as Slovenia posted inflation in April, the Statistics Office said. The real annual growth of gross wages was at
3.2%.
According to the office, the drop in wages can be attributed to a smaller number of working days in April.
The average gross wage in Slovenia for the first four months of the year stood at EUR
1,234.18, which is 5.5% more than in the same period last year.
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INTERNATIONAL COOPERATION
EU Presidency Tops First Day of FM's Visit to US
Beside discussing European issues and trying to get ready for the EU presidency as well as we can, we are discussing relations between the countries, which are very good," Rupel told
STA
Slovenia's EU presidency in the first half of 2008 and topical international issues including
Kosovo and the Middle East topped talks between Foreign Minister Dimitrij Rupel and US congressmen Robert Wexler and James Oberstar on Wednesday, 13 June. "Beside discussing
European issues and trying to get ready for the EU presidency as well as we can, we are discussing relations between the countries, which are very good," Rupel told STA.
He also pointed out that the State Department recently listed Slovenia among the countries that are successfully fighting human trafficking.
Rupel and Wexler, Democratic Congressman from Florida and chairman of the Europe
Subcommittee at the Foreign Affairs Committee, focused on the Slovenian EU presidency.
Wexler promised that he would visit Slovenia.
Rupel said that many important issues were awaiting the EU and US in the coming year and expressed his hope that the countries would remain united on the issues of Kosovo, the
Middle East and intercultural dialogue.
Democrat Oberstar, Minessota Congressman of Slovenian descent and US House transport committee chair, told Rupel that he and all citizens of Minnesota of Slovenian descent were proud of Slovenia's achievements.
He told STA that he remembered times during Bill Clinton's administration when he and
Rupel, then Slovenian ambassador to the US, could only get as far as the deputy secretary of state. "Today the minister tells me he is meeting the Secretary of State Rice," said Oberstar, who sees Slovenia as the bridge between Eastern and Western Europe.
Rupel meanwhile thanked Oberstar for the US support to the Slovenian-run International
Trust Fund for Demining (ITF).
Slovenia and Cyprus Share Interests in EU, Speaker Says
The Speaker of the Cypriot House of Representatives Demetris Christofias stressed the similarities among the interests and wishes regarding EU issues between Slovenia and
Cyprus at the outset of his visit to Ljubljana
The Speaker of the Cypriot House of Representatives Demetris Christofias stressed the similarities among the interests and wishes regarding EU issues between Slovenia and Cyprus at the outset of his visit to Ljubljana on Thursday, 14 June.
Following a meeting with Speaker of the Slovenian Parliament France Cukjati, Christofias stressed that Slovenia and Cyprus were both small Mediterranean countries who had common interests and hopes in the resolution of open issues in the EU.
According to him, Cyprus stands to learn a lot from Slovenia in terms of the adoption of the euro and the EU presidency.
The Cypriot official praised Slovenia's switch to the euro earlier this year. He stressed that
Cyprus was planning to join the eurozone at the beginning of next year and said he hoped his country would be just as successful.
Christofias believes that being the first EU newcomer from 2004 to be given that task will not stop Slovenia from being a successful president of the EU.
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One of the issues broached at the meeting was the situation in the Western Balkans, with the pair agreeing that the stability of the region requires giving the countries in it a European future.
Cukjati stressed that the EU should keep the doors open for these countries, but under the condition that they meet strict membership criteria.
Discussing the Cyprus issue, Christofias said Turkey's excuse that the occupation of a share of the island was for the purpose of protecting the Turkish Cypriots was not true.
He added that the Greek part of the island was looking for a UN-sponsored solution to the dispute with Turkey, but would not settle for an outcome that would protect the rights of
Turkish Cypriots on account of the Greek Cypriots.
According to Christofias, the solution to end the nearly 35 years of division on the island should be sought as part of Turkey's talks on EU membership.
Moreover, the pair stressed that their countries shared similar views on the EU constitution, as demostrated by the fact that they had both ratified the original document. They said the aim of both countries would be to retain as much of the original text in the compromise version.
The pair also reiterated that relations between the countries were good and said there was a great desire to advance cooperation.
Ambassador: Slovenian Companies Invested EUR 900m in Serbia
According to Luci, Slovenian companies mainly launched greenfield investments in this country with financial stability, low inflation and budding competition
Slovenian companies have invested EUR 900m in Serbia so far, Slovenian Ambassador to
Serbia Miroslav Luci said in Belgrade on Thursday, 14 June. Slovenian companies want to continue investing in Serbia but also expect Serbian companies to invest in Slovenia, he said at a meeting of small- and medium-sized companies from the two countries.
According to Luci, Slovenian companies mainly launched greenfield investments in this country with financial stability, low inflation and budding competition.
The ambassador also welcomed Serbia's signing of the Central European Free Trade
Agreement (CEFTA) and the new Serbian national investment plan, which offers many opportunities for foreign investors.
Moreover, Luci welcomed the recent announcement that the EU would restart talks with
Serbia on a stabilisation and association agreement.
The meeting was attended by representatives of 14 Slovenian and 30 Serbian companies.
Rupel and Rice Discuss EU Presidency and Kosovo
The pair discussed Slovenia's preparations for its EU presidency and other international topics such as the status of Kosovo, energy security and environmental protection
Foreign Minister Dimitrij Rupel met US Secretary of State Condoleezza Rice in Washington on Thursday, 14 June. The pair discussed Slovenia's preparations for its EU presidency and other international topics such as the status of Kosovo, energy security and environmental protection.
Rupel, who is on a three-day working visit to the US, told the press that the meeting happened at an interesting time.
"I am here to discuss the Slovenian EU presidency and in this context we discussed transatlantic relations and also relations between the US and Slovenia," he said.
Rupel added he invited the secretary of state to visit Slovenia during the EU-US summit, which is to take place in April or June 2008.
Turning to the topic of Kosovo, Rupel said he learned a lot of new things and suggested patience in deciding about the province's future status.
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"To my understanding, the US government is very positively inclined towards a swift implementation of Ahtisaari's plan, even though we would not consider it a tragedy if maybe some more time would be taken for reflection, an exchange of opinions and another attempt at persuasion," he explained, pointing to the example of Slovenia, who gained independence in
1991 by waiting patiently.
It is important not to cause new instability in the region. The issue needs to be solved quickly enough, "however without unnecessarily complicating things with those who are having reservations", Rupel said. He added that there was meanwhile no doubt that UN envoy Martti
Ahtisaari's plan enjoyed the support of both the EU and the US.
Talking about energy security and climate change, Rupel and Rice discussed the importance certain gas pipelines for the EU and Slovenia and the necessity of a connection to Azerbaijan and Turkmenistan. Rupel also congratulated Rice for the position the US took with respect to global warming at the G-8 meeting, labelling it a step forward.
Rupel also met Assistant to the President For National Security Affairs Stephen Hadley and
US senators with Slovenian roots, Republican George Voinovich from Ohio and Democrats
Tom Harkin from Iowa and Amy Klobuchar from Minnesota.
Rupel Meets US National Security Adviser
After meeting Secretary of State Condoleezza Rice, Foreign Minister Dimitrij Rupel met
National Security Adviser Stephen Hadley to discuss the EU-US summit in Slovenia next year and Prime Minister Janez Jansa's visit in Washington ahead or during Slovenia's presidency of the EU
After meeting Secretary of State Condoleezza Rice in the White House on Thursday, 14 June,
Foreign Minister Dimitrij Rupel met National Security Adviser Stephen Hadley to discuss the
EU-US summit in Slovenia next year and Prime Minister Janez Jansa's visit in Washington ahead or during Slovenia's presidency of the EU.
While he invited Rice to visit Slovenia during Slovenia's spell as EU president in the first half of 2008, Rupel announced in the meeting with Hadley an official invitation to US President
George W. Bush.
The date of the EU-US summit has not been fixed yet, as it is too early for this. The sides are also conferring about a visit by Prime Minister Jansa as part of Slovenia's presidency. Rupel and Hadley also discussed topical international issues, including the status of Kosovo.
Following his talks with the US secretary of state, Rupel said both the US and the EU supported the UN plan for Kosovo in which special envoy Martti Ahtisaari proposed supervised independence for the province.
At the same time Rupel thought it would not do any harm to take more time to consider, quoting the example of Slovenia, for which he said it proved successful to wait for its independence a short while in 1991.
While he believes new instability must be prevented by determining the status soon enough, he also cautions against complicating the issue with those who have reservations about this.
After the meeting with Hadley, Rupel had lunch with Senator George Voinovich, a
Republican from Ohio, and Democrat Senator Tom Harkin of Iowa, both of whom have
Slovenian ancestors.
The third member of the Senate with Slovenian roots, Amy Klobuchar of Minnesota, had other engagements, but she attended a formal dinner at the embassy to mark the 15th anniversary of Slovenia's recognition by the US.
Before the dinner, Rupel took part in a debate on the priorities of Slovenia's presidency over the EU at the Center for Strategic and International Studies, along with representatives of the
US administration and several think-tanks.
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Accompanied by his delegation, Rupel headed for New York on Friday, 15 June for a meeting with UN Secretary General Ban Ki-moon.
Transport Corridors Conference Calls for Boosting Effectiveness
Transport Minister Janez Bozic took part in a Eurasian conference on road transport, which focused on cutting costs and increasing the effectiveness and profitability of Eurasian transport corridor
Transport Minister Janez Bozic took part on Friday, 15 June in a Eurasian conference on road transport, which focused on cutting costs and increasing the effectiveness and profitability of
Eurasian transport corridors.
Bozic told STA that the conference in Warsaw closed with a joint statement, which saw the participants committing themselves to observing WTO rules on free transit, to cut red tape and rationalise costs and taxes.
The statement also promotes the development and support for new approaches in road transport. According to Bozic, the initiative focuses on the development of effective information and communication networks.
Earlier in the day, Bozic also met his Polish counterpart Jerzy Polaczek, with whom he discussed Slovenia's priorities during its EU presidency and the Galileo satellite-navigation system project.
Bozic told Polaczek that Slovenia was in favour of the project being continued as the EU had already invested EUR 1bn in it. The ministers were united in the view that the issue should be resolved during Portugal's EU presidency.
Bozic also highlighted the unification of air traffic rules, the management of road infrastructure and the interoperability of the railway network as Slovenia's priorities during its stint in the first half of 2008.
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EUROPEAN UNION
Potocnik: EU Stagnating in R&D Investment
European Science and Research Commissioner Janez Potocnik said that the investment in research and development in the EU was stagnant, while the bloc's share in global R&D had dropped in recent years from 29% to 25%
European Science and Research Commissioner Janez Potocnik said on Monday, 11 June in
Brussels that the investment in research and development in the EU was stagnant, while the bloc's share in global R&D had dropped in recent years from 29% to 25%.
The average investment in research and development on the EU level is at 1.84% of the GDP, while the EU has set an objective of reaching 3% by 2010, Potocnik said as he presented key data on science and innovation in the EU for 2007.
It is obvious that the EU will not reach that objective, as certain member states set aside less than 0.5% of their GDP for research and development, said Potocnik.
"I will be the happiest man in the world if we reach the figure of 2.6% of GDP by 2010,"
Potocnik commented on the implementation of the goals set down in the Lisbon Strategy.
According to the report, Slovenia is somewhere in the mean as it invests 1.22% of its GDP in research and development. He added that preliminary data from Eurostat was not in line with the Slovenian Statistics Office, which reported a 1.5% share.
According to Potocnik, both public and private investments are important as "they complement each other". Public investment in research and development is important as it promotes private investment, said Potocnik, who believes that companies do not invest enough in this area.
Slovenia is in fifth place in the EU in terms of private investment, coming in behind only
Luxembourg, Switzerland, Finland and Germany, said Potocnik. Almost two thirds (65.23%) of all investment in Slovenia comes from companies, 27.2% from the government, while
6.8% comes from abroad, he added.
EU Ministers Adopt Reform of Fruit&Vegetable Sector
The reform is aimed at boosting the competitiveness of the sector and encouraging growers to join producer organisations
Slovenia welcomed the reform of the fruit and vegetable sector that the EU agriculture ministers agreed on in Luxembourg on Tuesday, 12 June. The reform is aimed at boosting the competitiveness of the sector and encouraging growers to join producer organisations.
Agriculture Ministry State Secretary Branka Tome told STA that in Slovenia groups of producers and producer organisations would be established.
The reform, which is to enter into force next year, also envisages groups of growers especially because of special needs of the EU newcomers, Tome explained.
In line with the reform, organisations will become more flexible and their operations will be simplified. The reform says that to encourage the establishment of producer organisations, areas where less than 20% of production is marketed via organisations and the new members will receive additional support of 60% rather than 50%.
Slovenia also supported French efforts to ensure that crisis prevention and management measures will also be available for non-members of producer organisations, who will receive
75% of the aid that members of organisations will get.
Slovenia managed to include in the decree the proposal that involvement in agrienvironmental measures and rural development programmes counted as obligatory environmental activities for the organisations.
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Water and soil conservation, transport, collecting, packaging, storage and marketing activities will also count as environmental activities, Tome said.
The organisations will have to set aside at least 10% of expenditure on environmental measures. The EU will also fund organic production with a 60% rate.
According to the reform, crisis management will be carried out through producer organisations and 50% of it will be funded by the EU. Withdrawals for free distribution to schools, hospitals, charity, old people's homes etc will be fully subsidised by the EU.
The fruit and vegetable sector will be included in the subsidies scheme and the farmers will not receive funds on the basis of the production.
The reform also aims to promote the consumption of fruits and vegetables.
The fruit and vegetables sector generates only some 5% of the income of the whole Slovenian agriculture sector.
EU Warns Slovenia Again over Finance Sustainability
In an annual report on the finances of the eurozone countries, the Commission says the structure of Slovenia's finances is expected to weaken in the future
The European Commission has issued another warning to Slovenia over the sustainability of its public finances. In an annual report on the finances of the eurozone countries, the
Commission says the structure of Slovenia's finances is expected to weaken in the future.
Slovenia is not among the ten countries in the report that the Commission expects to achieve their mid-term goals in the field in 2008.
The Commission says in the report that the eurozone members are not doing enough to utilise the current favourable economic situation to undertake structural changes and to shore up the public purse.
The public finances of the eurozone countries have improved in recent times not on account of government measures but because of higher-than-expected tax revenues, a result of the current economic upswing, the report suggests.
However, most of the money earned in taxes has been spent by the countries for unplanned programmes or has been lost because of ensuing tax cuts, says the Commission.
Slovenia is one of the countries that reformed its tax system recently, the report points out, adding that the "final impact of the reforms is uncertain".
Brussels expects Slovenia's "primary structural balance" to worsen to -0.3% of GDP this year, down from the break-even point achieved in 2006.
According to the Commission, the worsening of the primary structural balance is more important than Slovenia's nominal government deficit, which is to stand at 1.5% of GDP this year and the next.
The Commission wants to improve the efficiency of the prevention part of the Stability and
Growth Pact, meant to supervise the budgetary situation of member states and coordinate their economic policies. Another goal is to avoid too high budgetary deficits through mid-term planning and execution of budgets.
It also calls for broadening the scope of fiscal control in the EU, "for instance by focusing more attention on internal and external imbalances that may pose a risk to fiscal and economic stability".
It also proposes "strengthening the link between national budgets and the targets presented at the EU level" as well as to strengthen "the reliability and credibility of the medium-term budgetary targets". If these targets continue to be unfulfilled, they could pose a serious threat to the credibility, the Commission warns.
The final proposal in the measures is meanwhile aimed at "achieving sustainable fiscal positions in the medium term", which is to be reached through labour, pension and health care reforms.
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The Finance Ministry responded by saying that Slovenia would face one-off expenditures in
2008 due to the final stages of the Schengen border project, modernisation of railroads and the presidency over the EU in the first half of 2008.
Janez Sustersic, the director of the government Institute for Macroeconomic Analyses and
Development (IMAD), said that the report mainly listed facts that were already known.
He added that it had been known since December last year that the country would not meet its mid-term goal regarding the deficit as it would have to upgrade its railways.
EU Must Boost R&D Spending, Commissioner Says
Europe must increase investment into research and development (R&D) as well as facilitate creativity if it wants to remain competitive in the global world, EU Science and Research
Commissioner Janez Potocnik and Slovenian Development Minister Ziga Turk agreed
Europe must increase investment into research and development (R&D) as well as facilitate creativity if it wants to remain competitive in the global world, EU Science and Research
Commissioner Janez Potocnik and Slovenian Development Minister Ziga Turk agreed in
Kranjska gora on Thursday, 14 June.
The pair was addressing the participants of a conference on the impact of national reforms on the implementation of the Lisbon Strategy with Potocnik saying that the EU had no other chance but to advance united in the direction of a more creative and productive society.
The essence of the Lisbon Strategy lies in retaining the quality of our lives and remaining competitive at the same time, Potocnik said at the close of the first day of the two-day conference, organised by the Institute for Macroeconomic Analyses and Development
(IMAD), a government think-tank.
According to Potocnik, Europe is investing much less into R&D than the US or Japan while trends in some countries are quite frightening. Unless Europe does not start upping its investment China will catch up in two years, the commissioner warned.
Turk meanwhile said that the society today was buying things it did not need and exchanging items that still work, so the key question for the manufacturers was how to create a desire for the purchase.
The minister believes that a society of plenty is ready to pay more for things which are not only useful but also carry a value added, linked to the emotions of individuals.
"Development was based on people who were able to come out with improved products and the future belongs to creators," Turk said and added that the era of concepts was approaching which will bring creativity to the forefront of productivity.
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LEGISLATION
EU Regulation Lowers Customs Declaration Cap for Cash
Individuals entering the EU, including Slovenia, have to declare cash or securities in excess of EUR 10,000 under a new EU regulation
Individuals entering the EU, including Slovenia, have to declare cash or securities in excess of
EUR 10,000 as of Friday, 15 June under a new EU regulation.
The new rule lowers the cap from EUR 12,519 to EUR 10,000. The declaration can be made in writing, while it needs to specify the recipient of the money, its origin and the means of transportation.
If passengers are found to have failed to declare sum in excess of that cap, customs authorities will retain or confiscate their money and start procedure against them.
Slovenia's national legislation regulates the limit for money allowed to be brought into the country without declaration in a bid to prevent money laundering, terrorism and crime.
Government To Review New Labour Legislation After a Year
Prime Minister Janez Jansa and representatives of employers agreed the government would review the effects of the recently agreed changes to the employment relationship act one year after they entered into force
Prime Minister Janez Jansa and representatives of employers agreed on Friday, 15 June the government would review the effects of the recently agreed changes to the employment relationship act one year after they entered into force.
In line with the agreement, which implies that the issue will not be closed with the passing of the changes in parliament, employers and trade unions will also be invited to participate in the debate.
"A compromise has been reached. However, time will show how effective this step is," Jansa said after the meeting, initiated by the employers.
"The text of the amendments has been agreed on at working level. It is a compromise and includes ten welcome improvements towards greater flexibility of the labour market," Jansa stressed.
He added, however, that it was already clear that additional measures would have to follow, especially in the areas of part-time employment and work at home, which see Slovenia trailing most developed countries.
The government will also try to increase flexibility with tax measures, if possible with the introduction of various tax cuts in segments which enable greater flexibility, the prime minister explained.
Returning to the deal on the changes reached at the end of May, Jansa congratulated the employers and workers as well as Labour, the Family and Social Affairs Minister Marjeta
Cotman who brought fresh impetus to the social dialogue, according to Jansa.
While the employers still have not given their approval to the changes, Samo Hribar Milic, the head of the Slovenian Chamber of Commerce and Industry (CCIS), said that the CCIS would probably agree. "Right now there is not enough time nor political will to achieve more," he explained.
"We were given the assurance that this (the amendments) was the first step and that we will establish after a year whether the changes have brought a more flexible labour market," Hribar
Milic said. He added that the employers meanwhile did not get guarantees that the bill would not see additional changes in parliament.
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STATISTICS/FORECASTS
Think Tank Not Worried by Inflation Yet
The Economic Institute of the Ljubljana Law Faculty finds in May's Economic Trends report that price increases hit a wide share of products in April and May, while price drops were far and few between
A respected economic think tank believes it is too early to say that prices have taken a lasting upward turn in response to three consecutive months of strong inflation in Slovenia.
The Economic Institute of the Ljubljana Law Faculty finds in May's Economic Trends report that price increases hit a wide share of products in April and May, while price drops were far and few between.
The official inflation rate, according to preliminary data from the Statistics Office, was 2.9% in May, up from 2.1% in February and the highest rate since August of 2006.
However, the institute believes it will take at least another month before it is clear whether this is a lasting trend or only a seasonal upturn.
The think tank says in its report that inflation is picking up around the eurozone, where the prices of services are growing faster than those of goods. The report also points to a global surge of prices of primary agricultural products.
Finance Minister: Growth is Based on Healthy Foundations
According to him, the record 7.2% Q1 growth can be attributed to increased exports and foreign investment
Finance Minister Andrej Bajuk said on Friday, 15 June that Slovenia's economic growth was based on healthy foundations and was not a consequence of artificially created demand.
According to him, the record 7.2% Q1 growth can be attributed to increased exports and foreign investment.
Bajuk, who is the leader of the junior coalition New Slovenia (NSi), said the growth of 5.2% for 2006 was preliminary and that the final figure would likely be somewhat higher. There is no sign that the growth is slowing down this year nor that the economy is overheating, he said.
According to Bajuk, the Q1 growth figure is likely to be downgraded somewhat after the 2006 figure is amended.
Responding to the latest warning from the European Commission about Slovenia's public finances, Bajuk said the government deficit was by no means tragic. The budget deficit was not cut last year because of a drop in some taxes, but the total government debt did fall somewhat to stand at 27.8% of GDP at the end of 2006, he added.
Tourism Board Happy with Number of Tourists in First Quarter
The number of overnight stays and of visitors to Slovenia exceeded all expectations in the first quarter of 2007
The number of overnight stays and of visitors to Slovenia exceeded all expectations in the first quarter of 2007, Slovenian Tourist Board (STO) chairman Dimitrij Piciga told the press in Portoroz on Friday, 15 June on the first day of the Slovenian Incoming Workshop 2007.
According to Piciga, numbers were upbeat for domestic and foreign tourists alike. The number of former rose by 9% in the first quarter, while their overnight stays have increased by 5%, and the number of latter was up by 12%, and the number of overnight stays by 11%,
Piciga added.
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The STO is satisfied with the inflow of tourists from Slovenia's traditional markets: Italy,
Austria and even Germany, after the economic situation had improved in Europe's largest economy.
In the future, STO wants to attract tourists from other, less traditional markets, such as
Belgium, the Netherlands, and even Japan. While, according to Piciga, five new air routes to
Ljubljana and Maribor airports are to be introduced next year.
He however expressed disappointment over the recently cancelled air link that would connect
Serbia's capital of Belgrade with the Italian capital of Rome via the Slovenian seaside resort of Portoroz.
The link was cancelled by the Serbian flag carrier JAT, which quoted lack of available planes.
Piciga said STO would request that JAT pay it back over EUR 50,000, the expenses the STO had in concluding the deal.
This year, 125 Slovenian tourist companies and 197 companies from abroad took part in the
Slovenian Incoming Workshop in Portoroz.
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FINANCE
Consumer Association: Goods Lead Over Services in Price Hikes
Breda Kutin told the press that 22.7% of basic goods and 11.6% of services became dearer between February and May
The Slovenian Consumers' Association (ZPS) has published on Wednesday, 13 June its second report on price hikes after the euro changeover on 1 January. In contrast to the
February report when the ZPS recorded hikes in the prices of services, it was the suppliers of goods who upped their prices this time around, ZPS president has said.
Breda Kutin told the press on Wednesday, 13 June that 22.7% of basic goods and 11.6% of services became dearer between February and May. Among basic goods fish, fruit juices, meat, dairy products and eggs topped the list.
Prices were also jacked up by small service providers such as hairdressers, driving schools, catering companies and in recreation and sport, Kutin said.
So far, prices have increased for 40% of the basic goods, said Kutin, adding that price hikes in goods have started gaining on hikes in services which were recorded in the beginning of the year.
The ZPS also pointed to the rise in the prices of bank services. Most price hikes can be found in internet banking, followed by fees for withdrawals on automated teller machines (ATM), which have risen by about 50% in the case of SKB and NLB banks.
The association also called on providers of goods and services to maintain voluntary double pricing in order to avoid businesses from upping their prices after the period of obligatory double pricing runs out on 30 June.
The association's next price hikes report is scheduled for autumn.
Ljubljana Stock Exchange
SBI 20 continued to soar
The main market SBI 20 index of the Ljubljana Stock Exchange continued its ascent to the
10,000 points mark last week, closing on Friday, 15 June at 9,809.14, up 120.87 points
(1.25%) on the week. The SBI TOP index of the 10 biggest blue added 32.21 points (1.5%) to
2,114.60.
The week brought yet another all-time high for the SBI 20, which reached 9,832.26 on
Thursday and saw brokers concluding a brisk EUR 63m worth of deals with EUR 20m of the amount coming in block trade.
Beverage group Pivovarna Lasko was the most coveted item, accounting for EUR 13.90m of deals. The company was also the most successful climber, putting on 11% to close at EUR
75.51 amidst rumours of ownership consolidation.
Energy holding Istrabenz followed with a 8.16% increase to EUR 84.86, however on a moderate turnover of EUR 1.44m.
Pharma company Krka was the second most active share, with deals worth EUR 11.61m pushing it up 3.23% to EUR 931.12.
Also among the livelier items was port operator Luka Koper, which added 7.06% to EUR
100.88 on volumes of EUR 5.57m.
The losers of the week included chemical-through-tourism conglomerate Sava (down 3.95% to EUR 477.10), airport manager Aerodrom Ljubljana (down 2.77% to EUR 96.77) and retailer Mercator (down 2.67% to EUR 318.99).
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The news of the week meanwhile came with telco Telekom acquiring a 75% share in the company behind Slovenia's leading internet search engine, Najdi.si. The company paid EUR
8.55m for the majority stake in Interseek.
Trading on the free market also remained upbeat, pushing the PIX investment fund index
66.19 points (1.04%) higher to 6,441.07.
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REGIONAL INFORMATION
Ski Resort Kanin Opens Summer Season
The ski resort is expecting between 10 and 15% more visitors than last summer, when it attracted 13,000 mountaineers
Kanin, Slovenia's highest-lying ski resort, kicked-off last weekend its summer season by starting its cable car to transport mountaineers and other nature enthusiasts.
The ski resort is expecting between 10 and 15% more visitors than last summer, when it attracted 13,000 mountaineers, the director of the company operating the ski resort has told
STA.
According to Ursic, the summer season opened a month after the close of the winter season, which attracted more than 50,000 skiers to the ski resort, the largest number in the past 15 years.
Indeed, summers bring about a fifth of all visitors to the mountain in NE Slovenia which peaks at nearly 2,600 metres, Ursic said.
The 6-km-long cable car, which was completely renovated in 2003, will at first operate only during weekends, while it is to run every day at the peak of the season in July and August, he added.
During the summer months, visitors are primarily mountaineers, who use the ski centre as a starting point for trips to the surrounding peaks. Day-trippers and mountain bikers also visit the slopes in the summer and some 40% of them come from abroad, said Ursic.
The ski resort of Cerkno (western Slovenia) will meanwhile open the summer season on 24
June, with ski lifts operating on weekends until the end of September.
According to Miran Ciglic, the director of hotel and ski resort operator Cerkno Hotel, Cerkno is expecting between 400 and 600 mountaineers daily during the summer season.
PM Visits Carmaker on Eve of Government Stopover in Dolenjsko
Jansa hailed the new generation Twingo model produced at the plant, saying the small city car would surely go on to be a big success
Prime Minister Janez Jansa paid a visit to the plant of Slovenian carmaker Revoz in the southeastern Dolenjsko region on Tuesday, 12 June, ahead of the cabinet's visit to the region on Wednesday, 13 June, 13 June. Jansa hailed the new generation Twingo model produced at the plant, saying the small city car would surely go on to be a big success.
Jansa, who was accompanied on the visit to Revoz by a number of ministers, took the opportunity to take the new car, which is scheduled to go on sale in Slovenia on Friday, 15
June, for a test drive.
According to the prime minister, an important facet of the new generation of the popular city car is the three-fold increase in the share of Slovenian components used in its manufacture.
"It is of course the wish of all of us that the new project continues the successful sales path blazed by its predecessor and that it keeps Revoz atop the list of Slovenian companies and exporters," Jansa said as carried by public broadcaster Radio Slovenija.
Jansa's view was echoed by Economy Minister Andrej Vizjak, who said he was convinced that the EUR 40m cash injection from the state for the EUR 400m project would end up paying dividends.
Meanwhile, Vizjak also visited camper and caravan maker Adria Mobil, offering the company assistance in its efforts to break on to the Russian markets.
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Transport Minister Janez Bozic was in the region on Tuesday, 12 June to discuss transport links, foremost the construction of the motorway linking Ljubljana to the regional capital of
Novo mesto.
He said the Slovenian Motorway Company (DARS) was doing everything in its power to have the motorway finished by the set deadline of 2008, although its efforts were being stifled by land ownership issues.
Chairman of Novo mesto-based pharma company Krka Joze Colaric said the motorway should be a priority, as the company needed professionals from around Slovenia to be willing to travel from other parts of the country to work at its plant.
PM Detects Development Progress in SE Slovenia
Prime Minister Janez Jansa established that the southeastern region of Dolenjsko and Bela krajina had developed since the government's last visit there in January 2006, quoting statistical data which show an increase in employment and the number of newly-founded companies
Prime Minister Janez Jansa established on Wednesday, 13 June that the southeastern region of
Dolenjsko and Bela krajina had developed since the government's last visit there in January
2006, quoting statistical data which show an increase in employment and the number of newly-founded companies.
One of the main development problems of what is the fourth Slovenian region in terms of
GDP per capita is a lack of labour force, Jansa said in Metlika as part of the government visit there.
According to him, the number of newly-established companies went up by 10% in Dolenjsko and by 11% in Bela krajina. "As elsewhere, we have noticed a shortage of work force. The region would require mainly construction and metal workers, employees in the hospitality sector, shop assistants, drivers, chemists and carpenters."
As one of the key development projects Jansa identified the creation of a regional business hub worth more than EUR 100m. In the 2007-2013 financial period the region is to get more than EUR 50m in direct subsides, said Jansa, who praised the local economy for its good development projects in the past.
The prime minister used the opportunity of the government visit to encourage business executives to prepare as many more such projects as possible in the future, saying it would be a "waste for the money available for direct incentives to be left unused".
On a different note, Jansa highlighted the issue of infrastructure. According to him, procedures for the construction of the southern leg of the Dolenjsko motorway to the Croatian border have been speed up so that it could be completed by the end of 2008.
Economy Minister Andrej Vizjak, who addressed a joint press conference with Jansa, also highlighted the problem of structural unemployment, and underscored speedy economic growth and a raise in salaries, something that he attributed to innovation and help from the state.
Vizjak said the structure of the regional economy was drawing nearer to the average at the state level, while he pointed to considerable potential that was still open in the services sector.
Speaking about state subsidies, the minister mentioned investment in tourism infrastructure and incentives for direct investment, while he said the state would support mainly development-oriented projects.
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BRANCH INFORMATION
Energy Market Liberalisation not to Bring Price Hikes for Now
The opening of the EU's energy market on 1 July is not to bring price hikes for now, Irena
Pracek of the Slovenian Energy Agency has told STA
The opening of the EU's energy market on 1 July is not to bring price hikes for now, Irena
Pracek of the Slovenian Energy Agency has told STA. However, the agency's director believes that price hikes will appear in the future.
According to Pracek, the liberalisation will give Slovenian households the chance to select their own providers of gas and electricity. If they do not select new providers, the existing ones will continue to supply gas and electricity, she added.
Choosing a new provider is a right and not an obligation for the 774,000 households which need electricity and 114,000 houses that require gas Pracek explained and added that the agency did not anticipate any major difficulties from the liberalisation.
Pracek said that the procedure to change the supplier was quite straightforward and free of charge. A household can authorise the new provider to carry out the switch and can select providers from among all of the companies that supply electricity in Slovenia.
One of the biggest changes of the liberalisation is that providers will be the ones to set the price of electricity instead of the state. As Slovenian power companies have been for years warning that the price of electricity was set below the market price, worries about a price hike seem to be justified.
According to Stanislav Vojsk, chairman of power supplier Elektro Maribor, the end price of electricity in Slovenia was below the purchase price as well as below the average EU price.
Andrej Sustersic, management board member of power company Elektro Gorenjska, meanwhile said that the price for households should be increased by 15% to allow companies in the sector to break even.
However, both companies said they would not increase their prices as of yet and would continue to monitor the market price. According to Pracek, the companies do not want to lose their market shares.
The agency further expects that the number of households that will opt for switch will remain low at the beginning. According to experience from those EU countries where the market has already been liberalised, only up to 5% of end clients opt for the switch in the first year following the opening of the market.
The number of switches depends on many factors, especially by the arrival of new suppliers with intriguing offers, Pracek said. They are not expected to arrive on the Slovenian market until the consumer price reaches the market price, she added.
Slovenian power plants generated a total of 13,643 gigawatt hours (GWh) of electricity in
2006, however, as half of the output of the Krsko nuclear power plant goes to Croatia, the total output stood at 11,003 GWh.
Slovenian customers meanwhile used a total of 12,825 GWh of electricity in 2006, up 3.5% over 2005, while the output of the power plants decreased by 1.2% in the period. Slovenia had to import about 20% of its electricity in 2006.
Households account for about a quarter of all electricity demands and some 10% of gas.
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COMPANIES
Minister, Execs Disagree about Business Framework
Finance Minister Andrej Bajuk addressed the participants of the "Measuring the Impact of
Reforms on Business" conference organised by The Economist
While Finance Minister Andrej Bajuk pointed at Bled on Monday, 11 June to a favourable state of the Slovenian economy, business executives pointed to several issues that could present problems for the country's future growth.
Addressing the participants of the "Measuring the Impact of Reforms on Business" conference organised by The Economist, Bajuk highlighted the recently passed tax reform which brought with it a lowering of taxes.
He added that Slovenia's economic growth in 2006 and the first quarter of 2007 had been high and that the effect of reforms on companies had been positive. The remarkable economic growth - the Statistics Office reported on Friday, 15 June growth of 7.2% for Q1 - coincided with the tax reform and the euro changeover.
Both changes simplify the business framework, bring stability which the Slovenian economy had lacked for decades, and promote its competitive ability, Bajuk added.
The executives were not as upbeat in their assessments. They said the country's progress in reforms aimed at boosting development was relatively slow and expressed their dissatisfaction with the business framework in the country.
Matthew Shinkman, an analyst at The Economist Intelligence Unit, agreed that economic growth was very good, however was concerned about the rather slow pace of reforms and the business climate.
Slovenia is healthy but in a relatively bad physical shape, Microsoft Eastern and Central
Europe General Manager Jaka Stele explained, adding that it was best to invest when times were good. He hopes that Slovenia will not miss this opportunity.
Dejan Turk, chairman of the Austrian-owned wireless provider Simobil, said high taxes, the rigid labour legislation and the state of mind were especially problematic for business and attracting foreign direct investment.
Marko Kryzanowski, the head of energy group Petrol, meanwhile said that companies moved to countries where profits were high, which did not depend only on taxes but required a whole package of incentives.
He added that he fretted about the future of the country which attracted companies solely with low taxes. A country should also have a well-educated workforce, political and economic stability and a sound tax system. Changing the tax system every couple of years makes it is hard to draw up strategic plans, he said.
Small Shareholders Protest Steel Group Privatisation
Druzba pooblascenka Ravne (DPR), a firm representing 5,844 small shareholders of steel group Slovenska Industrija Jekla (SIJ), organised a peaceful protest in Ljubljana to draw attention to SIJ's privatisation and the government's attitude towards SIJ's small shareholders
Druzba pooblascenka Ravne (DPR), a firm representing 5,844 small shareholders of steel group Slovenska Industrija Jekla (SIJ), organised on Monday, 11 June a peaceful protest in
Ljubljana to draw attention to SIJ's privatisation and the government's attitude towards SIJ's small shareholders.
"We demand from the government to reimburse us for what we invested 15 years ago in a successful recovery of the Slovenian steel industry," DPR chief supervisor Janez Klancnik said to a group of over 300 protesters who gathered in front of the government building.
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SIJ's small shareholders are pointing out that they directly contributed to the recovery of
Slovenia's steelworks by not receiving wages in the past and investing their ownership vouchers that they got after Slovenia opted for a voucher privatisation model.
They moreover believe that the way SIJ is being privatised runs against their interest as the recent sale of a 55.35% stake in SIJ to Russian company Koks has more than halved the value of their investment in SIJ.
According to them, estimates are putting the value of a share of SIJ to at least EUR 546.90, which is way above the EUR 190.73 offered by Koks to the state and now to them.
DPR member Ivana Klancnik, who believes that the state owns the shareholders more than
EUR 110m, said that the firm is also ready to take their demands to Brussels.
"The law envisaged us getting a cut in the companies which are making huge profits today, but these profits are going somewhere else," Klancnik said.
The protesters also handed a letter of protest addressed to Prime Minister Janez Jansa to a government representative.
EBRD Official Says Slovenian Companies Lack Competitive Edge
Lecavalier believes Slovenian companies have to boost their efficiency in order to make more profit, which would help them to compete and invest in research, development and marketing
Director of the European Bank for Reconstruction and Development (EBRD) for the Czech
Republic, Hungary, Slovakia and Slovenia, Francois Lecavalier, told the daily Delo on
Tuesday, 12 June that Slovenian companies were less profitable in comparison to companies from other EU newcomers.
Lecavalier believes Slovenian companies have to boost their efficiency in order to make more profit, which would help them to compete and invest in research, development and marketing.
This would help them acquire companies instead of being acquired.
According to him, Slovenia should focus on making its companies competitive. "If companies want to remain competitive, they have to invest, and investment comes from profit," he said.
Asked about the reforms put forward by the government, Lecavalier said that the government had indeed made a few steps forward. One of the main government's objectives, which is supported by the EBRD, is decreasing the state's influence on the economy, he added.
The government is a major shareholder in Slovenian companies through the Pension Fund
Management (KAD) and the Restitution Fund (SOD), which makes managers constantly wonder if the government would be satisfied with their work, Lecavalier told Delo.
"The fact that they are constantly looking over their shoulders can affect the competitive edge of Slovenian companies," the EBRD official added.
Slovenian Companies Woo Investors in Croatia
Several big Slovenian companies announced their plans for expansion in Croatia and courted
Croatian investors as they a Day of Slovenian Capital Market in Zagreb
Several big Slovenian companies announced their plans for expansion in Croatia and courted
Croatian investors as they held on Tuesday, 12 June a Day of Slovenian Capital Market in
Zagreb.
The Croatian market is not only of interest to Slovenian companies but also affords investment capital which is desirable in Slovenia, Bostjan Tancer, a member of the management board of KD Asset Management, told STA.
The companies organising the event, KD Asset Management, a Croatian arm of KD Holding, and the company managing the Ljubljana Stock Exchange, also said the presentation was an opportunity for prospective Croatian investors to get information on development plans of
Slovenian companies in direct talks with their representatives.
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Logistics company Intereuropa, financial firm KD Holding, port operator Luka Koper, retailer
Mercator, energy company Petrol, telco Telekom Slovenija and spa operator Terme Catez also unveiled their plans to expand in Croatia.
Intereuropa plans to build a logistics terminal in Samobor near Zagreb, Mercator announced new shopping centres in Zagreb, Rijeka and Labin, while KD Holding wants to expand on the
Croatian insurance and banking market and Terme Catez would like to enter the market.
Krka Unveils EUR 80m Active Ingredients Plant
The Sinteza 4 plant will enable Slovenia's largest drug maker to produce most of active ingredients by itself, which its CEO Joze Colaric said would increase value added, cut costs and improve its competitive ability
Pharma company Krka presented on Tuesday, 12 June its EUR 80m plant for the manufacture of active ingredients. The Sinteza 4 plant will enable Slovenia's largest drug maker to produce most of active ingredients by itself, which its CEO Joze Colaric said would increase value added, cut costs and improve its competitive ability.
The plant in Novo mesto, which will be officially opened on Wednesday, 13 June by Prime
Minister Janez Jansa, will also allow Krka to mount a more efficient defence against lawsuits.
Quite some have been filed against Krka, said Colaric and added that the majority of them were related to the process of chemical synthesis.
In what the chairman termed as one of Krka's largest and most demanding investments,
Sinteza 4 will supply ingredients for the company's plants in Novo mesto, Croatia, Poland and
Russia. Sinteza 4 launched production in August last year.
Colaric also said the company was not mulling to list its shares on any foreign stock market after the Ljubljana Stock Exchange (LJSE) increased its liquidity.
Moreover, Slovenia's 2007 euro changeover allowed many foreign investors to buy Krka's shares on the LJSE. If a need arose, however, Krka could quickly be listed on a foreign stock market, Colaric said.
Australian Slovenian Buys Top Floors of Ljubljana Landmark
The buyer, company Terra Australis owned by Australian of Slovenian descent Anthony
Tomazin, paid EUR 2.12m for the top floors of the building
The state-run Pension Fund Management (KAD) sold in an auction on Tuesday, 12 June premises in one of Ljubljana's landmarks, Neboticnik (The Skyscraper). The buyer, company
Terra Australis owned by Australian of Slovenian descent Anthony Tomazin, paid EUR
2.12m for the top floors of the building.
The final price for the premises from the 9th to 13th floors that cover an area of 1,029 sq. metres exceeded the reserve price by 32%, KAD said.
KAD opted for the auction to assure an equal position to all parties that have submitted bids after a call was published in February. Terra Australis beat out Sky Net from Nova Gorica, the only other company to register in the auction.
KAD chairman Tomaz Toplak said that possibilities that the Neboticnik starts living again in a way that many inhabitants of Ljubljana remember were opening again.
Terra Australis already owns Opera bar, a coffeehouse outfitted in Australian motifs, in the centre of Ljubljana.
Neboticnik, conceived by architect Vladimir Subic (1894-1946), was inaugurated on 21
February 1933.
With a height of just over 70 metres, it was at the time the tallest building in the Balkans and the ninth tallest in Europe.
Neboticnik rests on 16 support pillars set 18 metres into solid ground. This design makes it one of the most earthquake-safe buildings in Ljubljana.
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The top floor used to house a coffeehouse and the roof terrace offering splendid views of the city.
Telco Upgrades Nation-Wide Backbone to 10 Gbps
A fast internet backbone is important for both business and home users as well as other operators and ISPs which use the telco's backbone to deliver their services to the customers
Telco Telekom Slovenije has upgraded its internet backbone to reach speeds of 10 Gbps between eight main Slovenian hubs. The investment is worth EUR 8.5m, the company said on
Wednesday, 13 June.
A fast internet backbone is important for both business and home users as well as other operators and ISPs which use the telco's backbone to deliver their services to the customers.
These services include high-definition television (HDTV), video on demand (VOD) and virtual private networks (VPNs), the company said in a press release.
The country-wide upgrade comes a year after Telekom Slovenije upgraded the first part of the backbone (Ljubljana-Maribor) and a link to Germany to speeds of 10 Gbps.
Telco's eight main hubs are located in Ljubljana, Maribor, Celje, Kranj, Nova Gorica, Novo mesto, Koper and Murska Sobota.
PM Opens Pharma Company Krka's New Active Ingredients Plant
Prime Minister Janez Jansa and pharma company Krka CEO Joze Colaric officially opened the Sinteza 4 plant, which will enable Slovenia's largest drug maker to produce most of active ingredients by itself
Prime Minister Janez Jansa and pharma company Krka CEO Joze Colaric officially opened on
Wednesday, 13 June the Sinteza 4 plant, which will enable Slovenia's largest drug maker to produce most of active ingredients by itself.
Jansa said that Krka did not produce only drugs but also workers and knowledge. The company that has grown from a small pharmaceutical laboratory established in 1954 into an international pharma group is proof that Slovenian companies can be competitive.
For years Krka has been a top Slovenian company in revenues, profit and exports and has become a synonym for success in the country, Jansa added.
Despite its achievements, Krka did not stop and kept investing in research and development.
Jansa said that it continued to introduce reforms which were the only right answer to the challenges of the 21st century.
Jansa also said that despite favourable economic indices the government was striving to establish an even more attractive business framework in Slovenia, also by modernising and simplifying the tax system.
Colaric meanwhile said that new products were of key importance for successful sales. Krka invests some 8% of its revenues (over EUR 60m yearly) in the development of over 100 new products which are to enter the market this year or in the future.
He stressed his pride in the fact that almost 50% of Krka's sales revenues were generated by drugs that have entered the market in the last five years, a very good result for the generics market.
Sinteza 4 began producing active ingredients in August last year
Postal Company Posts Best Results Ever
The national postal company generated EUR 20.88m in net profit in 2006, or some EUR 5.8m more than a year before
The boss of Posta Slovenije told the press on Thursday, 14 June that the national postal company generated EUR 20.88m in net profit in 2006, or some EUR 5.8m more than a year before. Operating revenues increased nearly 10% to EUR 229.78m.
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The results have never been better, Ales Hauc told the press in Ljubljana, upbeat about the future of the company that employed 6,723 people at the end of 2006.
The general manager said the figures were particularly good considering that 75% of revenues were generated in sectors that were not under state control. According to him, Posta Slovenije has long ceased to be a monopoly.
Good operating results are attributed to 12% growth in services, productivity, efficient cost management and streamlined operations.
The bulk of revenues was made in standard mail services (42%), direct mail delivery (16%) and cash transactions (23%), followed by retail (6%) and parcel delivery (8%).
The projection for this year is an 8% increase in revenues and 5% growth in expenditures and a drop in profit as growth is expected to slow down compared to trends over the past few years. According to Hauc, the postal company has always been conservative in its operating plans.
Investment totalled EUR 12.8m last year, and was spent mainly on new buildings and furnishings, means of transport, capital investments and IT. This year the company is to invest a total of EUR 37.69m.
Hauc also commented on the liberalisation of the postal services in Europe. "We welcome liberalisation, even as early as 2009. We believe competition is good." Nevertheless, caution is needed, which is why he urged the government to see to it that the same rules apply to all players on the market.
Posta would like to become a modern European logistics company, placing considerable attention on development of e-services, while also expanding the range of services on offer at the counter. The sale of advertising area in postal offices is also planned for this year, according to Vinko Filipic of the management.
The post also plans to issue for the first time this year a stamp that is glowing in the dark, and mark the beginning of Slovenia's stint as EU president on 1 January 2008 with a stamp with a hologram.
Immorent Held 10% of Slovenian Leasing Market in 2006
Immorent Ljubljana, belonging to the Austrian-based Immorent leasing group, recorded EUR
52.84m worth of real estate deals on the Slovenian market in 2006
Immorent Ljubljana, belonging to the Austrian-based Immorent leasing group, recorded EUR
52.84m worth of real estate deals on the Slovenian market in 2006, the company told the press on Thursday, 14 June. The total volume of the Slovenian leasing real estate market reached
EUR 550m last year.
Immorent Ljubljana's total assets exceed EUR 200m, which puts it in second spot among leasing companies in Slovenia, the company's director Andreja Triller Tonin said.
The company representatives highlighted among future plans a multi-storey building in the centre in Ljubljana. The office tower with an indoor car park is to be build near Ljubljana's
Bavarski dvor by 2009. The investment value of the project is estimated at between EUR 25m and EUR 30m.
Immorent Ljubljana is a subsidiary of Immorent, one of the biggest leasing group on the
Austrian market, and a part of the Erste Bank group. The group also financed the construction of the Europark shopping centre in Maribor.
Government Grants Energy Licence to Distribution Company
The company, set up in mid-March can now manage the network of the current five power distributors, in line with the provisions of the energy act, the Economy Ministry said
The cabinet decided on Thursday, 14 June to award a licence to the national power distribution company (SODO). The company, set up in mid-March can now manage the
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network of the current five power distributors, in line with the provisions of the energy act, the Economy Ministry said.
Provisions of the energy act, as required by the EU rules for regulating the common electricity market, demand that power production and distribution may not be carried out by the same company. The rules also call for complete liberalisation of the electricity market by 1 July.
The cabinet also authorised the licensing contract and tasked Economy Minister Andrej
Vizjak to sign it, the ministry added.
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SLOVENIA IN BRIEF
Slovenian and Portuguese Education Officials Talk EU Presidency
Education and Sports Minister Milan Zver and Jorge Pedreira, state secretary at the
Portuguese Education Ministry, discussed on Monday, 11 June cooperation between the two countries during their succeeding turns at the helm of the EU.
Minister Stresses Meaning of Industrial Relations at ILO Meet
Minister of Labour, the Family and Social Affairs Marjeta Cotman attended the annual conference of the International Labour Organisation (ILO), where she underscored the importance of industrial relations.
Slovenia's Tax Authority Elected to Head IOTA
The Intra-European Organisation of Tax Administrations (IOTA) elected the Slovenian Tax
Administration (DURS) its president on Tuesday, 12 June as part of the 11th General
Assembly of the organisation in Varna, Bulgaria, according to a press release from DURS.
Minister Points to Problems in Strict Visa Checks
Interior Minister Dragutin Mate and his EU colleagues backed in Luxembourg on Tuesday,
12 June plans for the launch of the Visa Information System (VIS) that will allow data exchange between EU members on short stay visas. While backing the idea in principle, Mate said that the system was too rigid under current plans, which could present problems during the tourism season.
Government Adopts Changes to Education Laws
The cabinet adopted on Thursday, 14 June the changes to the organisation and financing of education act and the elementary school act, Education and Sport Minister Milan Zver told the press.
Rupel and Ban Ki-moon Discuss EU Presidency and Kosovo
Foreign Minister Dimitrij Rupel met UN Secretary General Ban Ki-moon in New York on
Friday, 15 June, with the pair discussing Slovenia's EU presidency in the first half of 2008 and also devoting a lot of time to Kosovo.
Mladinska Knjiga Confers Awards For Children Literature
This year's Levstik Awards for children's literature, conferred by publisher Mladinska knjiga, will go to Anja Stefan for her book of fairy tales "Koticek na koncu sveta" (Corner at the End of the World), Alenka Sottler for her illustrations in "Cinderella", and poet Niko Grafenauer and illustrator Marjan Mancek for lifetime achievements.
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