Slovenia Business Week no. 14, April 4th 2005
Table of Contents:
HEADLINES ............................................................................................................................. 3
March Inflation Rate Highest This Year ................................................................................ 3
External Relations Directorate to Promote FDI, Exports ....................................................... 3
Logistics Company Signs Cooperation Deal with Zastava .................................................... 4
INTERNATIONAL COOPERATION ...................................................................................... 5
Rupel Meets New Croatian Foreign Minister ........................................................................ 5
Foreign Ministry: Slovenia Might be Shortlisted for OECD Membership ............................ 5
Great Potential for Slovenian-Serbian Cooperation in Tourism ............................................ 5
UNIDO Head Seeks Slovenian Participation in UNIDO Operations .................................... 6
EUROPEAN UNION ................................................................................................................. 8
Slovenia Looking to be Split into Regions for EU Aid.......................................................... 8
Jansa Stresses Need for Coordinated Activities in EU in Parliament .................................... 8
Parliament Backs Government EU Plan ................................................................................ 9
Straub Advises Slovenia to Split into Three Regions .......................................................... 10
Slovenia's Division into Regions Tops Zagar's Agenda in Brussels .................................... 10
Drnovsek Receives Officials of the Committee of the Regions ........................................... 11
Straub Hails Slovenia's Regionalisation Efforts................................................................... 11
Government Approves Funds for New Premises of EU Embassy in Brussels .................... 12
MPs Says Slovenia Should Focus on Drawing of Funds, Not Regions ............................... 12
Busy First Year of EU Membership, but No Major Shocks ................................................ 13
LEGISLATION ........................................................................................................................ 15
Vizjak: Legislation Passed, But Not Implemented .............................................................. 15
STATISTICS/FORECASTS .................................................................................................... 16
Ski Resorts See Rise in Number of Guests This Year ......................................................... 16
Tax Revenue up 20% in 2004 .............................................................................................. 16
Economist Klein Receives Honorary Doctorate of University of Ljubljana ....................... 16
Agriculture Accounts for 1.7% of GDP in 2004 .................................................................. 17
ILO-Measured Unemployment 6.3% in 2004 ...................................................................... 18
FINANCE................................................................................................................................. 19
Abanka Boosts Assets by 11.7% .......................................................................................... 19
Slovenian Investors Launch Brokerage in Bulgaria ............................................................. 19
Price of Diesel Hits New Record High ................................................................................ 19
Infond Holding Raises Its Stake in Delo to over 15% ......................................................... 20
Bajuk Says Fixes Needed for Tax System and EU Fund Phasing ....................................... 20
Triglav Profit Surges 121 Percent ........................................................................................ 20
Economist Maintains Flat Tax Best Option After Slovakia Visit ........................................ 21
Ljubljana Stock Exchange .................................................................................................... 22
Foreign Exchange ................................................................................................................. 22
BRANCH INFORMATION .................................................................................................... 23
Environment Ministry and CCIS Sign IPPC Agreement ..................................................... 23
Farmers to Receive Subsidies of EUR 233m This Year ...................................................... 23
Lotric: More Awareness of Energy Needed ......................................................................... 23
Lila Prap Winner of Best Picture Book Award .................................................................... 24
Internet Domain Registration Partially Liberalised as of 4 April ........................................ 25
COMPANIES ........................................................................................................................... 26
Aluminium Producer Talum Ups Revenues Slightly ........................................................... 26
Daily Primorske Novice Posts Expected Loss ..................................................................... 26
Sava Wants to Bolster Operations in Tourism, Environment .............................................. 26
Supervisors Say Elan Needs Restructuring .......................................................................... 27
DARS Reports Profit Jump Due to Changed Status ............................................................ 27
Krka Group Reports 39% Jump in Profit ............................................................................. 27
Cetis Increases Sales and Profit ........................................................................................... 28
Dwindling Sales Hit Lasko Profit ........................................................................................ 28
Autocommerce Enjoys Bumper Year .................................................................................. 28
Proposed Bill on RTV Slovenija Brings Major Management Changes ............................... 29
Sugar Plant Blames Write-offs for 2004 Loss ..................................................................... 29
SLOVENIA IN BRIEF ............................................................................................................ 31
Zoellick Underscores Importance of Slovenia's OSCE Chairmanship ................................ 31
Coalition Agrees on Bringing Pensions into Line with Wages ............................................ 31
PM Says NATO Membership Provides Decision-Making Opportunities ........................... 31
Lenic Resigns as Chairman of Insurer Triglav ..................................................................... 31
Commission Fails to Make Headway in Hauliers Row ....................................................... 31
Papez Gets Government Green Light to Head Pension Institute ......................................... 31
Rupel Travels to Kyrgyzstan, Caucasus ............................................................................... 31
Warner Lambert and Pfizer File Patent Lawsuit against Krka ............................................. 32
PM Says Slovenia Will Always Remember the Pope with Gratitude .................................. 32
2
HEADLINES
March Inflation Rate Highest This Year
Consumer prices increased by 1.1% in March over February, bringing annual inflation to
3.1%
Consumer prices increased by 1.1% in March over February, bringing annual inflation to
3.1%. The highest monthly increase in inflation this year was mainly due to a hike in clothes
and footwear prices, the national Statistics Office said on Thursday, 31 March.
The average annual inflation rate, measured with adjusted consumer price index, which is
used for price growth comparison in the EU, stood at 3.3% in March. The monthly rate based
on the index was 1%.
According to the Statistics Office, clothes and footwear prices increased by 7.5% with the
closure of sales and the arrival of new collections in March. The month before prices in this
group pushed inflation down 0.6%.
Higher prices of clothes (6.6%) and footwear (10.9%) contributed 0.6 percentage point to
inflation. Dearer food added 0.3 percentage point, while higher oil prices contributed 0.2
percentage point to the monthly increase in consumer prices.
Retail prices increased by 1.1 percent in March over February, while they were up 4.8 percent
year-on-year.
External Relations Directorate to Promote FDI, Exports
Apart from the promotion of foreign direct investment (FDI), the need for Slovenian
companies to go international is set as one of the priorities in Slovenia's key strategic
documents
The Economics Ministry External Relations Directorate is drawing up a programme aimed at
the promotion of the Slovenian economy abroad and furthering economic cooperation on key
markets.
Apart from the promotion of foreign direct investment (FDI), the need for Slovenian
companies to go international is set as one of the priorities in Slovenia's key strategic
documents.
According to the acting director general of the directorate, Slovenia has never had a
comprehensive programme that would identify key markets for the Slovenian economy, or set
down a strategy of entering those markets and a system of financial incentives.
Moreover, cooperation between the institutions responsible for this area has not been
coordinated, in particular between the Foreign Ministry as the department in charge of
business diplomacy and the Chamber of Commerce and Industry of Slovenia (CCIS).
Outlining the priorities of her directorate on Wednesday, 30 March, Mojca Jazbinsek Volk
highlighted the role of business diplomacy in promoting Slovenian companies abroad. "We
believe the efficiency of the existing network of economic offices abroad can be essentially
improved."
Another important step in the efforts to make Slovenian companies international will be to set
up a system of support infrastructure. Jazbinsek Volk referred to a group of experts abroad
who provide Slovenian companies with information, advice and other support services.
Both the support infrastructure system and the programme encouraging Slovenian companies
to go international are expected to be ready by the middle of this year.
Speaking about FDI, Jazbinsek Volk said this area had not been treated systematically so far,
but that the directorate was currently working on an "active policy to make Slovenia more
attractive to foreign investors".
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The directorate is currently drawing up a decree on financial incentives for foreign investment
and a programme aimed at encouraging FDI, which is to be debated by the government by the
end of April.
Among other things, the directorate is also working on economic cooperation with NATO.
The target is to get Slovenian companies more NATO contracts by means of various
measures, such as informing companies on NATO tenders and on changes related to security
clearance for companies.
Logistics Company Signs Cooperation Deal with Zastava
Slovenian logistics group Viator&Vektor and Serbian automotive group Zastava will
cooperate in logistics and in the maintenance and production of trucks, buses and military
vehicles
Slovenian logistics group Viator&Vektor has signed a deal on business cooperation with
Serbian automotive group Zastava. The two companies will cooperate in logistics and in the
maintenance and production of trucks, buses and military vehicles, Viator&Vektor chairman
Zdenko Pavcek said on Thursday, 31 March.
The signing comes only weeks after the Slovenian group acquired shipping company Zastava
Sped from Zastava in what was its second acquisition of a Serbian company this year.
The cooperation deal opens the door to a stronger logistics presence on the Serbian market,
Pavcek said. "I am pleased that we have also found a business opportunity in the production
and maintenance of vehicles," he added.
Viator&Vektor, which has offices at all border crossings of Serbia-Montenegro, has the
ambition to become a leading firm offering comprehensive logistics services in SE Europe.
The group, which entered the defence contracting market in 2003 by acquiring defence
company Sistemska tehnika, also said recently it believes it could produce Valuk armoured
personnel carrier for the Serbian army.
4
INTERNATIONAL COOPERATION
Rupel Meets New Croatian Foreign Minister
Foreign Minister Dimitrij Rupel held his first meeting with the new Croatian Minister of
Foreign Affairs and European Integration Kolinda Grabar Kitarovic at the Slovenian coast
Foreign Minister Dimitrij Rupel held his first meeting with the new Croatian Minister of
Foreign Affairs and European Integration Kolinda Grabar Kitarovic at the Slovenian coast on
Tuesday, 29 March, the Foreign Ministry said in a press release.
The two ministers discussed agreements that the two governments are expected to draft in the
coming weeks, the ministry said.
Meeting for a working dinner, the pair assessed that the relations between Ljubljana and
Zagreb are good and diverse, which is particularly demonstrated in recent top-level meetings,
according to the press release.
Rupel and Grabar Kitarovic also welcomed the announced establishment of a SlovenianCroatian commission of historians to examine bilateral relations from a historical point of
view.
The Croatian minister thanked Rupel for Slovenia's support for Croatia's EU integration
efforts.
Also on the agenda were the latest developments regarding the EU and Croatia, according to
the press release.
Foreign Ministry: Slovenia Might be Shortlisted for OECD Membership
The OECD currently comprises 30 member states
According to the Foreign Ministry, Slovenia has a good chance of being shortlisted among
states for which the Organisation for Economic Cooperation and Development (OECD)
would launch accession strategies.
This estimation is a result of past cooperation between Slovenia and the OECD as well as the
wide support among the member states. The selection will, however, be a matter of political
judgment, the ministry said in a press release on Tuesday, 29 March.
As the ministry explained, the enlargement of OECD is frozen right now, given that some
members, especially non-European ones (Canada, US, Australia, New Zealand and Japan),
oppose the integration of other European states because of regional stability.
In this period, Slovenia is determined to take advantage of the cooperation opportunities that
the OECD offers to non-members, said the ministry. It added that Slovenia's strategy of
cooperation is thus directed towards reinforcing professional cooperation.
Slovenia, which has observer status in 24 OECD working bodies, participant status in one and
full participant status in two bodies, is also one of the most active non-member states of the
OECD, added the ministry.
The OECD currently comprises 30 member states. Last year, the OECD committee
considered the possibilities of the organisation's enlargement and suggested the number of
organisation's members finally settles at around 40 to 45 states.
Great Potential for Slovenian-Serbian Cooperation in Tourism
Tourists from Serbia-Montenegro are certainly part of our target audience, especially since
Slovenia is already recognisable on this market, director of the Slovenian Tourist Board
(STO) Bojan Meden told STA on the margins of the meeting of Slovenian and Serbian
businessmen from tourism and the hotel industry
5
Tourists from Serbia-Montenegro are certainly part of our target audience, especially since
Slovenia is already recognisable on this market, director of the Slovenian Tourist Board
(STO) Bojan Meden told STA on the margins of the meeting of Slovenian and Serbian
businessmen from tourism and the hotel industry.
The potential is big, Meden said, highlighting that the obstacles for bigger inflow of tourists
from Serbia-Montenegro mostly concern the visa regime. According to him, the STO is
working towards facilitating the acquisition of visas, given that the regime is not likely to
change.
Serbian tourist workers agree that there are great opportunities for cooperation in the field.
They are mostly interested in Slovenian experience in the development of tourism and ways
of attracting foreign visitors.
Representatives of the Serbian tourist board and the Serbian chamber of commerce
encouraged Slovenian companies towards joint investments and urged them to take part in the
privatisation of Serbian tourist agencies and accommodation facilities.
There were 65 Serbian tourist companies privatised in 2004, while the privatisation of major
Serbian hotels, mostly Belgrade-based, is to begin this year.
Serbian tourist agents complained about the visa regime and the way visas are issued at the
Slovenian embassy in Belgrade, saying the procedure often lasts too long and takes too much
red tape.
Serbia is a very attractive destination for Slovenians. Last year, Belgrade alone recorded
28,840 overnight stays by Slovenian guests in hotels, without counting in the New Year
holidays. Slovenians thus come in second among the foreign guests, after those from Bosnia
and Herzegovina.
Slovenia is, meanwhile, also a major market for the Croatian tourism. As Niko Bulic, the head
of the Croatian tourist board, said at a press conference in Ljubljana on Wednesday, 30 March
Croatia expects this year the number of visits by Slovenians to hit record figures from 2003,
when 918,462 visits were recorded.
Slovenian tourists represent 12% of all visits to Croatia, and place behind German visitors
(25%). Slovenian visitors stay in Croatia for five to six days on average.
UNIDO Head Seeks Slovenian Participation in UNIDO Operations
He discussed the issue with Economics Minister Andrej Vizjak, President Janez Drnovsek and
Prime Minister Janez Jansa, who backed the idea
Director General of the United Nations Industrial Development Organisation (UNIDO) Carlos
A. Magarinos arrived for a visit to Slovenia on Thursday, 31 March to encourage the
participation of Slovenian businesses in UNIDO operations.
He discussed the issue with Economics Minister Andrej Vizjak, President Janez Drnovsek and
Prime Minister Janez Jansa, who backed the idea.
The goal of my visit to Slovenia is to design the best mechanisms on political stability and
economic restructuring based on Slovenian experience and discuss ways to spread the
knowledge acquired by Slovenia in this process to other regions of the world, Magarinos said.
Magarinos said that UNIDO had been selected as a major EU partner in market integration,
private sector development and the transfer of environmentally friendly technologies.
The Economics Ministry said in a press release that an initiative to sign an agreement between
the government and UNIDO would be forwarded to the government shortly. The agreement
would provide the legal grounds for cooperation with UNIDO services.
In line with the agreement, Slovenia would contribute money to the industrial development
fund to finance certain projects, according to the press release.
An agreement with UNIDO would increase Slovenia's access to new technologies, industrial
processes, technological management training and production methods.
6
Slovenia last year allocated SIT 5.92bn (EUR 25m) or 0.11% of GDP for development and
humanitarian aid, an amount that is to increase to 0.35% of GDP according to EU guidelines.
The funding of development projects in line with a UNIDO agreement would be in line with
these commitments, the press release said.
Magarinos also met President Drnovsek, who presented him Slovenian positions on SE
Europe, underlining the need to achieve a harmony between political stabilisation, the
introduction of democratic values and economic development, the president's office said.
7
EUROPEAN UNION
Slovenia Looking to be Split into Regions for EU Aid
The country is currently classified as a single region
Slovenia is stepping up its calls to be split into three regions when it comes to being
considered for EU regional aid. The country is currently classified as a single region,
something that could hurt its possibilities for staying entitled to cohesion funds in the future.
Slovenian officials have been calling for Slovenia to be classified as three regions ever since
the country was an EU candidate. However, these appeals have not materialised so far.
Recently, these calls have been stepped up, as the country faces the possibility of being
rendered illegible for regional funds in the next EU budget period because its average
development exceeds 75 percent of the EU average.
In turn, it would like to be treated as three regions in line with the NUTS 2 classification the
EU uses for statistical regions. Such a move would allow the less developed regions of
Slovenia to remain entitled to EU funds in the future.
For now the EU maintains that Slovenia could be divided into two regions. Meanwhile,
Slovenian officials are looking for support in the EU for the three regions proposal.
According to Local Government and Regional Policies Minister Ivan Zagar, there is still a
possibility that Slovenia will end up winning with its case.
The European Commission recently expressed willingness to change the country's
classification at any time. As a result, Slovenia may be treated as more than one region for the
next EU budget period, between 2007 and 2013.
Slovenia meets the criteria for two EU regions according to NUTS 2 classification, which sets
the population of a region between 800,000 and 3 million people, although it allows for
exceptions.
"Political agreements on this issue with the European Commission and the member states will
be the important thing in Slovenia's case," Zagar said.
According to him, Slovenia would like to be treated as three regions - eastern, central and
western Slovenia.
Although talks on the next EU budget framework have not reached full steam, Zagar believes
there are many possible outcomes to the issue.
Consequently, Slovenia should have ready a number of proposals in a bid to secure the best
position it can in obtaining EU regional aid, he said.
"After all, there is always the possibility that, at the end of talks on the next budget framework
and cohesion policy, we come to the conclusion that dividing Slovenia into regions doesn't
bring benefits."
He admits that it is impossible to say what the division of Slovenia into two regions - as the
European Commission is proposing - would mean for the country, given that nothing has been
decided about the EU
Jansa Stresses Need for Coordinated Activities in EU in Parliament
Slovenia's profile in the EU will depend mainly on its activities, abilities, initiatives and
ingeniousness
The main objective of the declaration on the guidelines for Slovenia's EU activities in 2005 is
to coordinate the country's activities in the EU and provide a more efficient representation of
its interests. The parliament's approval of the document will increase the legitimacy of our
priorities, PM Janez Jansa said in parliament, which is discussing the document on Tuesday,
29 March.
8
Slovenia's profile in the EU will depend mainly on its activities, abilities, initiatives and
ingeniousness, Jansa said, adding that the country's influence in the EU can be much bigger
than the actual size of the country, its GDP or formal political influence, the PM is confident.
Slovenia will try to increase it also through strategic alliances, depending on concrete
interests, the PM announced.
Jansa highlighted the implementation of the Lisbon Agenda, talks on the EU's financial
arrangements between 2007 and 2013, and efficient use of EU funds as key tasks defined in
the declaration.
These also include preparations for the adoption of the euro and the establishment of the
external EU border, as well as stronger cooperation with potential candidate countries and
with strategic foreign policy partners, said Jansa. Another such key task is the preparations for
Slovenia's EU presidency in 2008.
Jansa said a long-term strategy of Slovenia's development that is to be passed by the
government shortly would boost the implementation of the Lisbon Agenda. In this context he
also said that Slovenia backs the disputed services directive, which Jansa believes will be a
test for the EU, which is greatly divided on the issue.
The PM also highlighted that Slovenia had secured itself an option to change its classification
at the level of NUTS 2, which serves as a basis for drawing funds from the EU structural
funds. Currently classified as a single region under NUTS 2, Slovenia has been making efforts
to change this so that its poorer regions would be eligible to European funds. Jansa said the
move gave Slovenia more space for manoeuvring, also in negotiations on the next EU budget.
Addressing further EU enlargement, Jansa said that Slovenia would continue to make efforts
that the EU door remains open for the Western Balkans. The region must remain high on the
agenda of the entire international community, which is why transatlantic cooperation is
important as well, said Jansa.
Slovenia also advocates strong cooperation with Russia, the EU's strategic partner, he said.
Moreover, as the presiding country of the OSCE and an active EU member state, Slovenia
will make efforts for more coordinated activities of the EU and the OSCE, according to Jansa.
Also addressing MPs were State Secretary in charge of EU issues Marcel Koprol and Foreign
Minister Dimitrij Rupel.
Koprol said preparations were underway for the Slovenian EU presidency in cooperation with
Germany and Portugal. These three countries will make up the first troika to preside over the
EU if the European constitution comes into force. Moreover, preparations were also underway
with the European Parliament and other member states.
Parliament Backs Government EU Plan
The main priorities as set by the government include the revival of the Lisbon Strategy, 20072013 budget negotiations, EU enlargement and preparations for EU presidency in the first
half of 2008
Parliament has backed the government guidelines for Slovenia's activities in the EU in 2005.
All parties with the exception of the opposition National Party (SNS) voiced their support for
the document, which was passed in a 44-to-3 vote on Tuesday, 29 March.
The main priorities as set by the government include the revival of the Lisbon Strategy, 20072013 budget negotiations, EU enlargement and preparations for EU presidency in the first half
of 2008.
Designed to reinforce the promotion of Slovenia's national interests in the EU, the 85-page
document will be used mainly for the government's participation in the EU Council.
9
Straub Advises Slovenia to Split into Three Regions
To Slovenia, Straub recommended regionalisation through the association of municipalities
and cities
President of the EU's Committee of the Regions, Peter Straub, has recommended Slovenia to
work towards dividing the country into three regions. Only in this way would the country be
eligible to get more funds from the EU, which would secure its future even regional
development, Straub told the press in Ljubljana on Wednesday, 30 March.
Straub, who paid a two-day visit to Slovenia, has on the same day met members of the
Slovenian delegation to the Committee of the Regions and talked to representatives of
parliament and the Foreign Ministry.
At the press conference following the talks, Straub called for decentralisation, regionalisation
and democratisation. Yet he also underscored the need to consider differences between
individual EU members in these processes.
To Slovenia, Straub recommended regionalisation through the association of municipalities
and cities, and later the development of future plans. From the aspect of funds provided to
regions by the EU, Straub believes the best solution for Slovenia would be to get divided into
three regions.
According to him, the economic standards reached by Slovenia are so high that the country
would only get a small amount of funds as a single region. When split into three regions, at
least two of them would remain eligible to EU funds.
Straub admitted that Slovenia had always been treated as a single region by the EU. The
former European regional policy commissioner, Michel Barnier, too thought that Slovenia
should not undergo any thorough regionalisation, he said.
I believe it will be hard to function as a single region in the future, as it will be impossible to
level different standards in different areas of the country, Straub said. He said he would
advocate the country's division into three regions himself.
According to Straub, the EU's constitutional treaty introduces the verification of the
subsidiarity principle at the level of national parliaments as well as the Committee of the
Regions. He said close cooperation in this issue was the main topic of his talks with
representatives of the National Assembly.
There, Straub met Speaker France Cukjati and the chair of the EU affairs committee Anton
Kokalj. At the Foreign Ministry, the EU official held separate talks with State Secretary Bozo
Cerar and Deputy Director of the Government Office for European Affairs Rado Genorio.
Slovenia's Division into Regions Tops Zagar's Agenda in Brussels
Minister of Local Self-Government and Regional Policy Ivan Zagar discussed Slovenia's
division into regions as he met European Commissioner for Regional Policy Danuta Huebner
Minister of Local Self-Government and Regional Policy Ivan Zagar discussed Slovenia's
division into regions as he met European Commissioner for Regional Policy Danuta Huebner
in Brussels on Wednesday, 30 March.
The commissioner pledged to study once again Slovenia's request to be split into three units in
line with the NUTS 2 classification, which serves as a basis for drawing funds from EU
structural funds, Zagar told STA.
The two officials agreed that the decision of the European Commission to reconsider the
country's classification at the level of NUTS 2 was an important step forward for Slovenia, as
it opens the door for new talks on regionalisation. Regionalisation is very important for
Slovenia in terms of development, Zagar told STA.
The country is currently classified as a single region, but would like to be treated as three
regions in line with the NUTS 2 classification. Such a move would allow the less developed
regions of Slovenia to remain entitled to EU funds in the future.
10
Zagar said that Slovenia has three unequally developed regions. He said that additional
arguments will have to be presented supporting that claim as the talks with the European
Commission continue.
The minister also briefed Huebner on a bill on balanced regional development, which is to be
filed into parliamentary procedure shortly.
The pair also touched on the talks on the EU's budget framework between 2007 and 2013. He
said Slovenia would like to see talks wrap up as soon as possible and would also like to see
the cohesion policy be given the proper stress in the budget.
The minister said that the Slovenian government was making efforts to improve the efficiency
in implementing the structural and cohesion policy in the 2004-2006 period.
Zagar said he told the commissioner that the new government wanted to make a concrete step
forward in regional development and the state's decentralisation.
The minister invited Commissioner Huebner to pay a visit to Slovenia.
Zagar also met European Commission representatives to discuss strategic EU guidelines. The
minister was to wrap up the visit by meeting the European Commissioner of Science and
Research, Slovenia's Janez Potocnik.
Drnovsek Receives Officials of the Committee of the Regions
He said on the occasion that Slovenia ascribed great importance to regional integration in
the EU
President Janez Drnovsek on Wednesday, 30 March received the visiting delegation of the
EU's Committee of the Regions, headed by President Peter Straub. He said on the occasion
that Slovenia ascribed great importance to regional integration in the EU, according to a press
release.
Drnovsek stressed that he advocated the concept of development regions in the state, the
president's office said in a press release.
Upon the wish of the delegation, Drnovsek presented Slovenia's position on the EU prospects
of the countries of the Western Balkans.
The delegation was accompanied by Mayor of Maribor Boris Sovic, who is the national
coordinator at the Committee of the Regions, according to the press release.
Straub Hails Slovenia's Regionalisation Efforts
The president of the EU's Committee of the Regions, Peter Straub, has encouraged Slovenia
in the effort to introduce regionalisation and decentralisation
The president of the EU's Committee of the Regions, Peter Straub, has encouraged Slovenia
in the effort to introduce regionalisation and decentralisation, saying the two processes
consolidate democracy.
There is strong will to introduce regionalisation and decentralisation in Slovenia, Straub said
after meeting Minister of Local Self-Government and Regional Policy Ivan Zagar in
Slovenska Bistrica on Thursday, 31 March.
According to him, the two processes are sensible as they ensure that citizens are more in touch
with politics and the running of the state. They also contribute to bringing the EU closer to its
citizens.
Straub said the Committee of the Regions supported the proposed EU financial perspective
which is to lay out the EU's common spending for the 2007-2013 period. "The Committee of
the Regions calls for showing solidarity with the new members. Only through solidarity can
we encourage economic development."
The EU official also expressed the confidence that the EU's financial arrangements would be
passed this year, something that he believes would give member states enough time to prepare
for it.
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The committee is also interested in the ratification of the EU constitutional treaty. According
to Straub, the constitution gives new powers to regional and local authorities, as well as to the
Committee of the Regions.
Minister Zagar briefed his guest on the state of local self-government and regional
development in Slovenia. "Slovenia has not done much when it comes to regionalisation.
Moreover, it will have to improve municipalities' financial status and enhance their
autonomy."
Zagar also said he had briefed Straub on the government programme of decentralisation and
the government's position on Slovenia's divisions into regions at NUTS 2 level, which
provides the basis for the allocation of EU funds.
Straub and Zagar also called for boosting cooperation between the Slovenian government and
the Committee of the Regions. Straub praised the fast development Slovenia posted over the
last few years. According to him, Slovenia can serve as an example to other new entrants.
Government Approves Funds for New Premises of EU Embassy in Brussels
Slovenia is scheduled to preside over the EU together with Germany and Portugal from 2007
to mid 2008
The government has approved additional funds for the purchase on new premises of the
Slovenian embassy at the EU in Brussels worth up to EUR 8m. The cabinet has assessed that
the matter was urgent in the light of Slovenia's upcoming EU presidency in 2008.
The purchase of the premises in Brussels has been placed among priority investments.
Slovenia is scheduled to preside over the EU together with Germany and Portugal from 2007
to mid 2008, provided that the European constitution takes effect. Otherwise, Slovenia will be
at the helm of the EU in the first half of 2008.
Meanwhile, an initiative has also been raised for the Slovenian permanent representation
office at the EU to be seated in the Slovenian House, a project put forward by the Chamber of
Commerce and Industry of Slovenia (CCIS).
The building, which is to house the Slovenian economy and diplomacy representatives, is to
be constructed by the beginning of 2008, according to the chamber's expectations.
MPs Says Slovenia Should Focus on Drawing of Funds, Not Regions
The committee also backed the proposal to create a Slovenia House in Brussels
Slovenia should for now focus on the drawing of EU funds, not the division of the country
into cohesion regions, the parliament's EU affairs committee decided on Friday, 1 April as it
debated the upcoming meeting of the European Parliament with national parliaments
regarding the EU's budget in the 2007-2013 period.
According to the committee's chair Anton Kokalj, Slovenia's GDP was at 74.4% of the EU's
average in the 2000-2002 period (a region loses eligibility for cohesion funds if it exceeds
75% of the EU's GDP), which is a good starting point.
He said there would be no trouble if negotiations on the next budget period wrapped up under
Luxembourg's EU presidency in the first half of this year, as Slovenia would retain eligibility
for Objective 1 funds as one region.
However, should the closure of negotiations be delayed, which would change the calculation
period, Slovenia would exceed the eligibility threshold. This, Kokalj said, would prompt
Slovenia to consider a division into regions.
Since EU budget talks follow the principle "nothing is decided until everything is decided",
Kokalj said the government should focus on efficient drawing of EU money, which was
relatively poor in 2004.
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The committee also backed the proposal to create a Slovenia House in Brussels, which would
house the permanent mission, the economic office and possible other services. Yet the
committee said that the government should first make a firm commitment.
Busy First Year of EU Membership, but No Major Shocks
Elections to the European Parliament, the EU constitution and the formation of a new
European Commission were the biggest events of the soon-to-be-celebrated first year of
Slovenia's EU membership
Elections to the European Parliament, the EU constitution and the formation of a new
European Commission were the biggest events of the soon-to-be-celebrated first year of
Slovenia's EU membership, and commanded a lot of public attention. Yet is seems as if the
keenly anticipated EU entry did not change the daily life of the people much. The turning
point will arguably be the introduction of the euro, which has been made a top priority by the
government.
The European Parliament elections came just one month into membership, and were marked
like elsewhere with low turnout (28%). They also foreshadowed the general election four
months later, as the then opposition New Slovenia (NSi) and Slovenian Democrats (SDS)
posted a surprising victory and sent two MEPs to the parliament each.
By joining the EU, Slovenia became entitled to nominating one European commissioner. The
government appointed Janez Potocnik, the former Europe minister and head of the group
negotiating the terms of EU entry. He is in charge of the department for science and research.
Many other Slovenians got jobs as administrators, officials and translators, while some got
more senior jobs. The second-highest ranking official after Potocnik is Ivan Bizjak, a former
justice and interior minister, who is now director general for justice and home affairs at the
EU Council.
The most important event for the EU in 2004 (aside from the landmark enlargement) was the
constitutional treaty whose wording was finalised by EU leaders on 29 October. Slovenia
ratified the document on 1 February this year as one of the first EU members to do so.
The political parties were near unanimous that a referendum is unnecessary, as the people had
already voiced their position at the EU entry referendum of two years ago, when membership
was confirmed in landslide majority.
By joining the Union on 1 May, Slovenia became neither a member of the Schengen area, nor
of the eurozone: the tolar thus remains the national currency and police control is still in place
on borders with Austria, Italy and Croatia.
Adopting the euro, if possible in 2007, has been made one of the top priorities by the
government. Slovenia meets most of the criteria for eurozone entry, apart from inflation,
which is still beyond the eurozone threshold, and the fact that it must spend two years in the
ERM II exchange rate mechanism which it joined in June 2004.
As of 1 May, there is no customs control on Slovenia's borders with EU members. Police
control remains in place, though, presumably by the end of 2007 when Slovenia is expected to
meet Schengen criteria and the EU's next generation border control system is finished.
Yet Slovenia has already started enforcing Schengen-compatible control on the border with
Croatia. This means that goods can be imported only at certain properly outfitted border posts.
There have been some delays: the road crossing Gruskovje has not been certified yet and
Slovenia has failed to get nearly four million euros from the Phare pre-accession fund due to
disputes over the tender procedure.
Slovenia has also been making efforts to win the seat of the forthcoming EU border agency.
Five countries are vying to host the new institution and the outcome is still unclear, yet reports
suggest Hungary and Poland are the frontrunners.
13
In addition, the government has been pushing for an equal distribution of expenses for border
control to all member states, so that all countries, not just the ones on the Union's eternal
border, would chip in for border control.
One of the hottest current issues in the EU is the Union's budget between 2007 and 2013.
Slovenia joined a group of smaller and medium-sized countries pushing for a contribution cap
of 1.14% of GNP, yet the six biggest budget contributors insist spending should be curbed at
1% of GNP.
The main priority for Slovenia is to remain a net recipient of budget money at least until 2013,
but it has another interest: retaining eligibility for Objective 1 structural funds awarded to
regions with less then 75% of the average GDP in the EU.
Slovenia could lose eligibility with the entry of new and poorer countries. One of the
solutions would be to divide the country into three statistical regions, whereby two would still
be entitled to Objective 1 money.
What has also transpired in one year of membership is that the authorities will have to do
much more to phase money efficiently from the structural and cohesion funds. Slovenia has so
far spent less EU money than it is entitled to until 2006, and the government has already taken
measures to improve the phasing capability.
Slovenia will furthermore be the first newcomer to preside over the EU, in a troika with
Germany and Portugal between beginning of 2007 and mid-2008. Yet if the constitution is not
passed in all 25 member states, Slovenia will have to do it alone in the first half of 2008.
The new government of PM Janez Jansa launched preparations for presidency as soon as it
was inaugurated last year. A special working group headed by the prime minister has been set
up and put in charge of the appropriate preparations.
14
LEGISLATION
Vizjak: Legislation Passed, But Not Implemented
Minister Vizjak identified an upturn in the competitiveness index as the key task for his
ministry in this mandate
Slovenia has passed many laws and harmonised them, but little has been done to put them into
practice, Economics Minister Andrej Vizjak said as he assessed the state of affairs at the
ministry he took over at the end of last year.
"I believe a lot still needs to be done. A lot has been written, but little of that has been
implemented," Vizjak told the press on Friday, 1 April. As a result, he said, the national
competitiveness index has fallen for the second year in a row.
Vizjak identified an upturn in the competitiveness index as the key task for his ministry in this
mandate. To achieve this goal, major steps to improve the business environment will be taken
together with other ministries.
According to Vizjak, electronic communications and energy are two of the areas that have
adequate legislation, which however is not being implemented adequately. A lack of
competition is a problem on both markets, he stressed.
Voicing more criticism of the previous LDS government, Vizjak said "practically nothing has
been done in a number of areas". He criticised it for its failure to encourage companies to
enter foreign markets, and for what he dubbed "reservation to privatisation and FDI".
Here Vizjak mentioned a state aid of SIT 10bn (EUR 41,7m) the LDS government made a
commitment to give to the car manufacturer Revoz for a special project; this year's national
budget should contain around SIT 3bn (EUR 12.5m) for this purpose, but it does not.
Since the Revoz project is good for Slovenia, the ministry will do all in its power, said Vizjak,
to make sure the sum finds its place in the supplemented budget for 2005, which is due in the
near future.
Another thing the new economics minister also finds inappropriate is a rather strong presence
of the state in companies, which ensures the state huge political influence in the economic
sector.
Vizjak said there used to be strong ties between politics and big interest groups in practically
all areas of economy, which he believes was a drawback to economic and technological
development of Slovenia.
On the other hand, the state does not have a majority in supervisory boards of many
companies in which it has a majority stake, which makes it impossible for it to have a say in
decision-making, according to Vizjak.
15
STATISTICS/FORECASTS
Ski Resorts See Rise in Number of Guests This Year
According to forecasts from the Association of Slovenian Ski Lift Operators, more than 1.4
million skiers will have hit the slopes in Slovenia by the time the season is over
The good weather in the second half of the winter season should help Slovenian ski resorts
beat the turnout figures from the previous season. According to forecasts from the Association
of Slovenian Ski Lift Operators, more than 1.4 million skiers will have hit the slopes in
Slovenia by the time the season is over.
Dusan Bozicnik, the head of the association, said the good weather in the second half of the
season has helped ski lift operators overcome the lack of snow in December.
However, Bozicnik pointed out that not all went according to plan for the ski lift operators, as
the turnout during the school holiday period in late February was well below plans.
Ski lifts on some slopes have stopped operating for the year, while it is still possible to ski at
most major ski resorts, including Vogel, Kanin, Rogla and Krvavec.
The highest turnout this season was posted by Pohorje above Maribor, which attracted
250,000 skiers, which is slightly more than in 2004. Despite the rise in visitor numbers, the
season was assessed as average by head of the Pohorje ski lift operator, Srecko Jesensek.
Also registering near 250,000 visitors this skiing season was Rogla, which is not far from
Maribor. This is on a par with last year's season.
Krvavec, just outside the Slovenian capital, will wrap up the season on 2 May as it still has
copious amounts of snow. This year the ski resort saw nearly 200,000 skiers, well above last
year's turnout.
Vogel, above the town of Bohinj in the northwest of the country, reported better results than
last year, as it attracted over 80,000 skiers.
Slovenia's highest altitude ski slopes on Kanin posted a drop in the number of skiers, but the
manager Ales Ursic did not wish to specify the number of visitors. The skiing season will last
until 2 May and Ursic hopes this will be enough time to salvage the season.
Tax Revenue up 20% in 2004
The Tax Administration (DURS) collected SIT 1,948.1bn (EUR 8.12bn) in taxes last year
The Tax Administration (DURS) collected SIT 1,948.1bn (EUR 8.12bn) in taxes last year, a
rise of near 20 percent over the year before. The tax debt stood at SIT 100.4bn (EUR 419m), a
drop in real terms over the year before.
According to DURS, the tax debt figures show that the agency has been successful in
collecting taxes. Taxes owed to DURS amounted to 1.6 percent of GDP in 2004, a fall of 0.3
percentage points over 2003.
In nominal terms, the tax debt fell SIT 7.6bn (EUR 31.7m) or 7.1 percent last year. According
to figures from DURS, the administration managed to collect SIT 71.1bn (EUR 296.55m) in
old tax debt last year.
From the total funds collected, DURS channelled SIT 793.5bn (EUR 3.3bn) into the state
budget, SIT 177.4bn (EUR 740m) into local budgets, SIT 584.3bn (EUR 2.44bn) into the
pension purse and SIT 387.7bn (EUR 1.62bn) into the health purse.
Economist Klein Receives Honorary Doctorate of University of Ljubljana
Touching on the economic situation in Slovenia, Klein noted that the country recorded a GDP
growth of over 4% last year, which will drop to 3.8% this year
16
Lawrence R. Klein, a Nobel Prize laureate in economics, received the honorary doctorate by
the University of Ljubljana on Tuesday, 29 March for his contribution to science and the
education of professors of the University of Ljubljana. Klein was also received by President
Janez Drnovsek and held a lecture at the Faculty of Law about current trends in the world
economy.
Touching on the economic situation in Slovenia, Klein noted that the country recorded a GDP
growth of over 4% last year, which will drop to 3.8% this year. The unemployment rate is
lower than the EU average, inflation is under control, and indices about the quality of life are
very good, Klein said in the lecture.
Developed economies will grow by 2.5% this year compared to last year's 3.4%, and
economies in transition will see a 6% growth, down from last year's 7.1%. The biggest growth
among the latter will be recorded by China (8.75%) and India (6.5%).
The countries of the former Soviet Union will see a 6% growth and Russia that of 5.25%,
while the growth of economies of Africa and Latin America will be more sluggish, i.e. 4.75%
and 4% respectively, Klein estimated.
China and India are witnessing an economic boom because of reforms. China, which has been
recording high economic growth for over 20 years, will see that trend continue at least until
2010. However, it is a question whether the Chinese economy will growth at a 9% growth and
more after that, according to Klein.
The Nobel Prize laureate called in his lecture for more foreign direct investment, particularly
into poor countries, and a more equal geographical distribution. A higher volume of foreign
direct investment will increase trade.
Global exports were up 10.9% last year and the increase is to stand at 8.5% this year. Imports,
on the other hand, saw a 10.2% rise. This year, it is expected at 7.5%, according to Klein.
China will witness the highest export growth among countries in transition this year, i.e. that
of 18%, which will be lower than last year's 29%, Klein predicts. Countries of Central and
Eastern Europe, meanwhile, will see a growth of 11.5% and countries of the former Soviet
Union that of 7%.
Highest import growth is to be noted by China (21.7%), countries of the former Soviet Union
(14.5%) and those of Central and Easter Europe (11.25%), Klein also estimated in his lecture.
Agriculture Accounts for 1.7% of GDP in 2004
The share of agriculture in Slovenia's GDP increased by 1 percentage point to 1.7 percent in
2004, while its value added increased by 17.4 percent year-on-year
The share of agriculture in Slovenia's GDP increased by 1 percentage point to 1.7 percent in
2004, while its value added increased by 17.4 percent year-on-year, the national Statistics
Office said on Thursday, 31 March.
After the volume of agriculture production hit a ten-year low in 2003, it increased by 11.7
percent in 2004, in what was a favourable time for farming, Irena Zaucer of the Statistics
Office told a news conference.
Harvest in all spheres of crop production increased by 26.5 percent: potato by 59.4 percent,
cereals by 40.2 percent, fruit by 24.5 percent, industrial crops by 24 percent and wine by 14.8
percent.
Prices of agricultural products were down by 8.5 percent in real terms. The sharpest drop was
seen in prices of potato (44.8 percent), vegetables (24.7 percent), fruits (by 21.2 percent) and
forage plants (15.6 percent).
In the field of the crop production, only prices of industrial crops increased by 4.3 percent.
Prices of animals meanwhile decreased by 0.1 percent overall, with an increase of 4.9 percent
registered for poultry.
17
The number of people employed in agriculture dropped by 5.7 percent last year, while the
share of the seasonable labour was on the increase.
ILO-Measured Unemployment 6.3% in 2004
The number represents a fall of 0.4 percentage points over 2003
Slovenia had an unemployment rate of 6.3 percent on average in 2004, according to the
results of the labour force survey based on ILO and Eurostat standards. The number
represents a fall of 0.4 percentage points over 2003.
According to the National Statistics Office, the country's labour force totalled a touch over 1
million people, 943,000 of whom were in paid employment and 64,000 of whom were out of
a job.
The unemployment rate among men stood at 5.9 percent; among women it stood at 6.9
percent. According to the survey, the participation rate was 59 percent and the employmentto-population rate was 55.3 percent.
According to the latest figures on registered unemployment - the standard method used by the
Statistics Office to measure unemployment - 10.4 percent of Slovenia's working population
were out of job in January of this year.
18
FINANCE
Abanka Boosts Assets by 11.7%
Net profit was up 8.6% to SIT 4.2bn (EUR 17.6m)
Abanka Vipa saw total assets increase by 11.7% in 2004 to SIT 488.7 (EUR 2.04bn). Net
profit was up 8.6% to SIT 4.2bn (EUR 17.6m), the bank said in a press release on Tuesday, 29
March.
Loans to non-banking customers was the fastest growing segment, expanding by 15%, said
Abanka, the third-largest Slovenian bank by assets.
The steep rise in loans to companies, especially loans denominated in foreign currency, is due
to great demand from the corporate sector, the Ljubljana-based bank added.
Loans to banks were up 52.4% while investments in securities were reduced by 1.5%,
according to the bank's non-audited financial statements.
Abanka said it plans a capital injection this year, to increase share capital by SIT 6.3bn (EUR
26.28m)
Moreover, the bank plans to start drawing this month a syndicated loan of EUR 115m that it
obtained from a group of foreign banks.
Slovenian Investors Launch Brokerage in Bulgaria
A group of private investors from Slovenia have launched CEE Securities, the first Slovenianowned brokerage in Bulgaria
A group of private investors from Slovenia have launched CEE Securities, the first Slovenianowned brokerage in Bulgaria. This is Slovenia's third largest foreign investment to date in
Bulgaria, the company's chairman Vojko Odlazek told STA on Tuesday, 29 March.
A member of the Bulgarian Stock Exchange, CEE Securities trades in Bulgarian securities
and manages individual portfolios in Romania, Ukraine, Russia, Turkey and Poland.
The company says it trades on behalf of individuals as well as major corporate investors.
Turnover is rising rapidly and should top EUR 2.5m in March, Odlazek said.
Price of Diesel Hits New Record High
The price of diesel hit a new record of SIT 216.4 (EUR 0.90) on 30 March despite the curb in
excise duties that the government enacted on 29 March to mitigate the price increase
The price of diesel hit a new record of SIT 216.4 (EUR 0.90) on Wednesday, 30 March
despite the curb in excise duties that the government enacted on Tuesday, 29 March to
mitigate the price increase.
Diesel is SIT 4.9 (EUR 0.02) dearer, regular petrol went up SIT 2.3 (EUR 0.01) to SIT 208.5
(EUR 0.87), and premium petrol costs SIT 212.8 (EUR 0.89), an increase of SIT 2.2 (EUR
0.01).
The price of heating oil will, meanwhile, remained level at SIT 127.10 (EUR 0.53).
The price of diesel fuel increased by 10.63% since 1 January, and the price of regular petrol
was up 6% in that period. Heating oil is 7.53 percent more expensive than at the beginning of
the year.
According to a government regulation, the petrol retailers adjust prices every fortnight based
on the dollar exchange rate and the price of oil derivatives.
The price increase comes despite the government's effort to curb retail fuel prices by reducing
excise duties for all fuels.
19
Analysts of Petrol, the leading petrol retailer, have calculated that regular petrol on the
Mediterranean exchanges was 6.24% more expensive in the past 14-day period than in the
two weeks before that. Diesel was up 7.25% and heating oil 10.32%.
Meanwhile, the US dollar lost 1.02% compared to the tolar in the same period.
Infond Holding Raises Its Stake in Delo to over 15%
Delo generated SIT 12.7bn (EUR 53m) in revenues form its core business last year
Financial firm Infond Holding has acquired 23,000 shares of Delo, the leading Slovenian
newspaper publisher, raising its stake to 15.65%, Delo said on Wednesday, 30 March.
The firm is also the biggest owner of Vecer, another newspaper publisher, holding a 36.4
percent stake in the company.
On the last day of 2004, the largest owners of Delo were brewer Pivovarna Lasko (24.99%),
Infond Holding (12.11%), the state-run Restitution Fund (SOD, 11.72%), investment
company Maksima ID (11.10%), investment company Infond ID (9.17%) and the state-run
Pension Fund Management (KAD, 6.73%).
Delo generated SIT 12.7bn (EUR 53m) in revenues form its core business last year, which is a
rise of 8% over 2003. The company wrapped the year with SIT 729m (EUR 3m) in net profit,
down 22% over the year before.
Bajuk Says Fixes Needed for Tax System and EU Fund Phasing
Finance Minister Andrej Bajuk has said fixing the complicated tax system and improving
Slovenia's ability to draw EU funds are the major challenges facing his ministry
Finance Minister Andrej Bajuk has said fixing the complicated tax system and improving
Slovenia's ability to draw EU funds are the major challenges facing his ministry.
Presenting the state of affairs at the Finance Ministry, Bajuk said the ministry had its hands
full with the drafting of changes to the tax code.
According to him, the inappropriate and complicated system implemented with last year's tax
reform needs to be changed.
Although he did not wish to go into detail about the envisioned changes, Bajuk said the
amended tax code would simplify tax procedures.
Moreover, the finance minister said his ministry would have a budget supplement ready by
the second half of April. According to him, the supplement would see the envisioned budget
deficit cut by SIT 22bn (EUR 95.75m) to SIT 90bn (EUR 375.4m).
Bajuk said the ministry will also work to restructure the budget in the future years, as too
much of the spending is fixed at the moment. Additionally, previous budgets did not follow
the principle of thriftiness, something that must be corrected.
He also told the press on Wednesday, 30 March that he was concerned by Slovenia's inability
to draw EU funds last year. Out of the SIT 80.3bn (EUR 334.93m) Slovenia could have
received last year, it secured only SIT 44bn (EUR 183.5m). Additionally, the country failed to
get any money from cohesion and structural funds.
The only reason Slovenia remained a net recipient of funds from the EU last year was
December's advance of funds from the EU.
The problem, Bajuk said, is that Slovenia's lacks the administrative capacity to phase EU
funds fully. The new government has already taken measures to fix this problem, he added.
Triglav Profit Surges 121 Percent
Slovenia's largest insurance company, Zavarovalnica Triglav, collected SIT 137.2bn (EUR
572m) in insurance premiums last year and posted profits of SIT 2.75bn (EUR 11.5m)
20
Slovenia's largest insurance company, Zavarovalnica Triglav, collected SIT 137.2bn (EUR
572m) in insurance premiums last year and posted profits of SIT 2.75bn (EUR 11.5m), its
outgoing chairman told the press on Thursday, 31 March.
According to Joze Lenic, who tendered in his resignation, premiums rose by 13 percent last
year, while the company's profit was up a whopping 121 percent.
Payouts, on the other hand, grew by a modest 8% to SIT 80.8bn (EUR 337m) despite July's
earthquake in NW Slovenia.
Lenic said the company's 2004 results were good. In the future, more needs to be done in
raising efficiency and productivity, as well as improving the information system at Triglav, he
added.
Triglav posted the biggest growth in life insurance, where premiums grew by 26% to SIT
38bn (EUR 158.5m). Property insurance premiums were up 8 percent to SIT 99.2bn (EUR
414m).
Lenic said Triglav was extremely pleased with its results in the life insurance sector.
Moreover, he said he was happy the company managed to retain its market share on the
property insurance sector, where competition has been extremely fierce.
Plans for this year envisages a 20% growth in life insurance premiums and around 5% growth
in property insurance premiums. The group hopes to increase its profit by about percent in
2005, Lenic told the press.
Operating costs at the company rose by 8 percent to SIT 29.7bn (EUR 124m) last year. The
operating costs-to-pay out percentage stood at 21.7 percent. In Lenic's opinion, the company
has a lot of room for improvement in this area.
Triglav managed to up its market share by 0.6 percentage points to 43.1 percent last year. The
company controlled more than half of the Slovenian life insurance market.
Economist Maintains Flat Tax Best Option After Slovakia Visit
According to Joze P. Damijan, the government will have to convince social partners that this
is the best investment for Slovenia and that social security will not be diminished as a result
The economist tipped to become Slovenia's minister overseeing the implementation of the
Lisbon Strategy said a recent visit to Slovakia had only reaffirmed his belief that a flat tax rate
was the best option for Slovenia.
According to Joze P. Damijan, the government will have to convince social partners that this
is the best investment for Slovenia and that social security will not be diminished as a result.
Damijan, a member of the Strategic Council for Economic Development, a body advising the
government on economic matters, claimed in an appearance on a public television news show
that the flat tax rate would make Slovenia more competitive in the long-term.
Damijan has said on a number of occasions that Slovenia should look to Slovakia when
deciding on economic reforms. One reason for this is Slovakia's flat tax rate. He recently
visited Slovakia to acquaint himself with the country's economic reforms.
In his opinion, making sure the reform is designed correctly can dispel fears that the flat tax
rate would widen the gap between the rich and the poor, like it has in Slovakia.
Slovakia could have been more cautious in certain aspects of the reform; Slovenia should not
make the same mistakes, he told TV Slovenija's late-night news show, Odmevi, on Friday, 1
April.
The main aim should be to ensure that net wages do not change, so that the gap between the
rich and the poor does not increase, he said.
"This tax reform would mean that highly-skilled workers would be cheaper to employ,
meaning that it would be easier for Slovenian companies to employ such workers and
undertake technological restructuring," Damijan said.
21
Ljubljana Stock Exchange
Major blue chips all registered gains, pushing the SBI 20 benchmark index 84.77 points
(1.77%) higher to 4,865.12 points
Strong results from companies traded on the free market helped inject some confidence on the
Ljubljana Stock Exchange last week. Major blue chips all registered gains last week, pushing
the SBI 20 benchmark index 84.77 points (1.77%) higher to 4,865.12 points.
Volumes lagged behind the one-year moving average, with a total of SIT 4.7 (EUR 19.6m)
worth of stocks changing hands, which is only half of the turnover registered a week earlier.
The week's action was largely dominated by a large appetite after three gloomy trading weeks
in which Slovenia blue chips lost 4.5 percent to hit multi-month lows.
Petrol, the fuel retailer, led the recovery on the official market, gaining 3.1 percent to SIT
66,596 (EUR 277.77).
Among the other big names, drug maker Krka rebounded from five-month lows as it added
1.6 percent to end the week at SIT 80,028 (EUR 333.80).
The biggest winner last week was hardware retailer Merkur, which soared 3.7 percent to SIT
41,543 (EUR 173.28).
Losing stocks were hard to come by last week. One of the worst performers was port operator
Luka Koper, which shed 0.19 percent to SIT 7,936 (EUR 33.10).
The positive mood stemmed from the free market, as several companies traded there reported
strong business results. Chemical company Belinka (+6.94% to SIT 6,398/EUR 26.69) and
transformer maker Etra (+6.16% to SIT 103,999/EUR 433.78) both surged after reporting
their results for last year.
Moreover, the announcement of a large dividend payout by investment company KD ID
(+6.97% to SIT 233.88/EUR 0.98) drove the PIX investment fund index 120.14 points
(2.77%) higher to 4462.86.
The BIO bond index ended the week at 122.12 points, down 0.11 points (0.09%).
The Ljubljana Stock Exchange last week abolished the IPT free market index and a number of
branch indices as it looks to overhaul trading at the bourse.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.73 (+0.01)
U.S. dollar (USD) - SIT 185.02 (+0.31)
Swiss franc (CHF) - SIT 154.47 (+0.18)
British pound (GBP) - SIT 349.10 (+3.73)
22
BRANCH INFORMATION
Environment Ministry and CCIS Sign IPPC Agreement
Ministry of the Environment and Spatial Planning signed an agreement with the Chamber of
Commerce and Industry of Slovenia (CCIS), setting out joint activities for the issuing of
Integrated Pollution Prevention and Control (IPPC) certificates
Ministry of the Environment and Spatial Planning signed an agreement on Tuesday, 29 March
with the Chamber of Commerce and Industry of Slovenia (CCIS), setting out joint activities
for the issuing of Integrated Pollution Prevention and Control (IPPC) certificates.
The 173 companies that have to obtain the certificates must do so by October 2007. However,
the ministry has recently said that as many as 5 percent of the companies could go bust due to
stringent, and costly, environmental protection criteria that they might be unable to meet.
Environment Minister Janez Podobnik said that metal companies and enterprises in the
chemistry, municipal services and in the food sector would have the most problems in
obtaining the IPPC certificates. He also warned that obtaining the certificates entails
significant investment.
The signed agreement is designed to create good conditions for the issuing of certificates and
raise awareness of the need to meet environmental standards. It includes provisions to ensure
that all companies required to get the certificate are adequately informed about all criteria and
procedures.
The CCIS has meanwhile made a commitment to promote the use of best available techniques
as companies make efforts to meet the environmental protection criteria.
Farmers to Receive Subsidies of EUR 233m This Year
As the agency's head Sonja Bukovec explained at a news conference, farmers have to submit
applications for the subventions by 15 May
The Agency for Agricultural Markets and Rural Development said on Tuesday, 29 March that
a total of SIT 56bn (EUR 233m) will be earmarked for Slovenian farmers this year for the
implementation of the agricultural policy.
Out of the total sum, SIT 24bn (EUR 100m) are planned to go for direct investments, of
which 25 percent or SIT 6bn (EUR 25m) are to be drawn from the EU budget.
SIT 28bn (EUR 116.8m) are planned to be distributed within the rural development
programme, with 80 percent or SIT 22.4bn (EUR 93.4m) to come from the European treasury.
As the agency's head Sonja Bukovec explained at a news conference, farmers have to submit
applications for the subventions by 15 May. They are due to start receiving funds after 1
December.
Bukovec promised that, since the agency acquired this year a new electronic system of
processing applications, the entire process will be speeded up and will do away with mistakes.
As for the 2004 direct payments, envisaged to go to a total of 70,000 farmers, Bukovec said
that the agency has paid out EUR 26.5bn (SIT 110m) so far, while the sum is to top SIT 39bn
(EUR 162.6m) by the end of June.
Lotric: More Awareness of Energy Needed
CEO of Slovenia's leading petrol company Petrol addressed an economic forum at the
Faculty of Law in Ljubljana
There is not enough awareness of the importance of energy in Slovenia yet, said the CEO of
Slovenia's leading petrol company. However, Janez Lotric of Petrol was quick to add that no
European country except France has found a long-term solution to its energy supply.
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Lotric, who addressed an economic forum at the Faculty of Law in Ljubljana on Wednesday,
30 March, also said that cost-cutting and productivity growth in the power industry could only
be expected if the sector is privatised.
A good-quality cooperation between the state and a private electricity sector is what is needed
here, said Lotric, and stressed that the state needs to have a say in the energy sector because of
big risks.
Lotric explained his company has entered the gas market and embarked on environmentfriendly projects because it would like to offer its customers a comprehensive supply of
energy.
However, in order to undertake oil exploration, which is a high-risk business, Petrol lacks
human and financial resources, Lotric stressed. "The exploration of potential oil fields in
Slovenia's Lendava, where we took part, gave no positive result," he told the forum yesterday.
Lotric in fact spoke about oil, a cheap fuel, as the motor of the world economy at the Faculty
of Law economic forum, which is designed to bring together students and business
executives.
Lila Prap Winner of Best Picture Book Award
"Animals' International Dictionary" by author and illustrator Lilijana Praprotnik Zupancic,
known as Lila Prap, was selected the best Slovenian original picture book of 2005
"Animals' International Dictionary" by author and illustrator Lilijana Praprotnik Zupancic,
known as Lila Prap, was selected the best Slovenian original picture book of 2005. The book
was chosen among four other shortlisted works by the Publishing, Printing and Media
Association at the Chamber of Commerce and Industry of Slovenia.
"Mednarodni zivalski slovar" ("Animals' International Dictionary"), published by Mladinska
knjiga, was integrally created by Lila Prap, who came up with the idea and the illustrations.
The book presents children with the ways different languages verbalise animal noises.
Animal noises are integrated into the illustrations in the form of a comic book, and equipped
with the flags of the countries where the language is spoken. The picture book includes an
extensive list of languages and flags of those countries.
The jury said the picture book could be used as a textbook of foreign language learning for
children and an international dictionary of animal noises at the same time. As such, it
encourages children to explore the world, countries and flags, as well as the diversity of
languages and cultures.
According to the jury, the author adapted her expression to children's cognitive processes.
Lovable, but thoroughly stylized animal characters that are closest to children, represent
Praps's modern approach to illustration with a distinctly original note, established the jury.
Prap, born in 1955, studied architecture and is a free-lance artist working as a graphic
designer, interior decorator, writer and successful illustrator of children's books. Last month,
she was nominated for a German children's literature award (Deutscher Jugendliteraturpreis
2005) for her picture book "Zakaj?" ("Why?").
A total of 18 picture books published by ten publishing houses entered the best picture book
competition, organised for the second year in a row. Because of a modest financial
contribution by the Culture Ministry, this year's award will be a symbolic recognition without
financial value.
Among the other four shortlisted picture books were two books published by Mladinska
knjiga: Rdeca hisa ("Red House"), written by Cvetka Sokolov, and Slavica Remskar's
"Medvedek, kaj delas?" ("Teddy-bear, What Are You Up to?"), both illustrated by Peter
Skerl.
The other two picture books were "Kako sta Bibi in Gusti preganjala cas" ("How Bibi and
Gusti Were Killing Time"), written by Ida Mlakar, illustrated by Kristina Krhin and published
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by Didakta, and "Zvezdica Zaspanka" ("Twinkle Sleepyhead"), written by Fran Milscinski Jezek, illustrated by Zvonko Coh and published by Sanje.
Internet Domain Registration Partially Liberalised as of 4 April
So far only Slovenian companies and organisations were able to register company or brand
names, now they will be allowed to register up to 20 different domain names each
Registration of .si Internet domains will be partially liberalised on Monday, 4 April: so far
only Slovenian companies and organisations were able to register company or brand names,
now they will be allowed to register up to 20 different domain names each. Individuals will
not be allowed to register domains until September, and foreigners not before next year.
The registration is handled by ARNES, the Research and Academic Network of Slovenia. It
mandated 99 registrars to submit domain requests on behalf of their customers under the "first
come, first serve" principle.
ARNES will charge SIT 4,000 (EUR 16.7) per domain, while the registrators are free to
charge whatever price they deem appropriate.
The registrars have one-year contracts with ARNES and will be able to extend them if they
register at least 100 domain names.
Domains register at ARNES before 4 April will expire on 6 June. They will remain
"quarantined" for 30 more days after that, during which time their owners can extend validity.
Barbara Povse Golob, who is in charge of the registration at ARNES, believes than 5,000 to
10,000 new domains will be registered on Monday alone.
"We do not know how many of the existing 24,300 domains will be extended until 6 June,"
she noted.
ARNES has also organised an alternative procedure for resolving domain disputes in
cooperation with the Faculty of Law.
A company will be able to file a complaint, yet it must show that it is entitled to a domain;
that whoever registered it does not have that right; and that the domain was registered or is not
used in good faith.
The new domain registration procedure is only the first step towards full liberalisation:
foreigners will not be allowed to buy domain names before next year.
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COMPANIES
Aluminium Producer Talum Ups Revenues Slightly
Aluminium maker Talum produced 158,000 tonnes of the raw material and aluminium
products in 2004, generating revenues of SIT 54bn (EUR 225.3m)
Aluminium maker Talum produced 158,000 tonnes of the raw material and aluminium
products in 2004, generating revenues of SIT 54bn (EUR 225.3m). While sales increased
marginally over 2003, profit, which topped SIT 365m (EUR 1.5m), fell somewhat short of
that in 2003.
The company expects output to remain roughly level this year, while revenues are to go up by
5 percent, Talum chairman Danilo Toplek told STA on Tuesday, 29 March.
Toplek explained that Talum is launching a waste-aluminium recycling project worth EUR
25m, which should be completed in about a year and a half.
The project, which the company will fund from own sources and with loans, will make Talum
one of the biggest waste aluminium processors in this region, he said.
The state-owned company was put up for sale in 2003, but the government rejected two bids
and postponed the privatisation of the 85.78% state-owned stake indefinitely.
Toplek said there is nothing new about the sale. However, this does not affect the company's
business operations, he emphasised.
Daily Primorske Novice Posts Expected Loss
Since the number of the paper's subscribers has not dropped, the publisher expects to
generate a loss of SIT 70m (EUR 0.92m) this year and operate in the black next year
Paper Primorske novice, which became a daily last autumn after being published three times a
week initially, posted losses of SIT 43m (EUR 0.17m) in 2004.
The publisher said on Wednesday, 30 March it anticipated the loss last year as the mid-term
restructuring project, to be concluded in 2008, envisaged a loss of SIT 90m (EUR 0.37m).
Since the number of the paper's subscribers has not dropped, the publisher expects to generate
a loss of SIT 70m (EUR 0.92m) this year and operate in the black next year.
As the publisher's director Barbara Verdnik explained at a news conference, the loss has been
prompted by higher costs of distribution and promotion, and the recruitment and training of
new staff.
While the paper expected to sell 16,000 copies daily, it is currently boasting 19,000 copies
and plans to increase the number to 21,000 by 2008, according to Verdnik.
Sava Wants to Bolster Operations in Tourism, Environment
Sava's biggest acquisition last year was that of health spa group Terme 3000, an important
addition to its tourism business, which is thriving
Chemical and tourism group Sava wants to bolster its operations in tourism and
environmental protection, as these are two very promising sectors, the chairman of Sava
holding company Janez Bohoric said on Wednesday, 30 March.
According to Bohoric, Sava is stepping up efforts to pull out of unprofitable businesses and
bolster its activities in those that promise strong returns in the future.
One of the businesses abolished last year was the production of tyre tubes. Moreover, Sava
last year sold paints producer Color to Helios, the Domzale-based chemical group.
Sava's biggest acquisition last year was that of health spa group Terme 3000, an important
addition to its tourism business, which is thriving.
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Tourism made up for 22 percent of all revenues in the Sava group last year, Bohoric said. This
year the company intends to make investments into several of its tourism facilities
The holding company, meanwhile, intends to make extensive investments into a project for
the production of biodiesel as well as the construction of a production facility for
environmentally-friendly products.
According to Bohoric, Sava is hoping to increase the share of revenues from its subsidiaries in
relation to revenues made from investments. However, Bohoric does not expect that
investments will account for less than a third of Sava's profit in the future.
Sava has SIT 10bn (EUR 41.7m) set aside for investments this year, although that could
increase if lucrative opportunities, such as the recent purchase of a share in brewer Pivovarna
Lasko, come up.
The group saw its net profit triple last year to SIT 4.9bn (EUR 20m).
Supervisors Say Elan Needs Restructuring
Elan, the world-renowned manufacturer of skis and yachts, posted revenues of SIT 26bn
(EUR 108.4m) and generated a loss of SIT 1.47bn (EUR 6.13m) in 2004
Elan, the world-renowned manufacturer of skis and yachts, posted revenues of SIT 26bn
(EUR 108.4m) and generated a loss of SIT 1.47bn (EUR 6.13m) in 2004.
The supervisors of Elan's holding company Skimar though concluded that the situation was
not critical since the loss was prompted by revaluation of investments.
The chair of the supervisory board Tomaz Kuntaric commented for the press after the session
on Wednesday, 30 March that the group's new management "took important steps into
positive direction last year".
He said it was most important to ensure good performance of the group's skis and boats
manufacturing divisions, Elan Ski and Ski Marina, respectively, while he labelled other
subsidiaries as "ballast".
Elan Ski generated a profit of SIT 18m (EUR 75,000) last year, while Elan Marina posted a
loss of SIT 330m (EUR 1.37m).
Skimar chief executive Tevz Tavcar agreed that only Elan Ski and Elan Mariana have a
future, while other subsidiaries, namely A Sport, Elan Inventa, Elan Commerce Zagreb and
Elan Bikes, need restructuring.
DARS Reports Profit Jump Due to Changed Status
On 1 January 2004, DARS ceased to be a public enterprise to become a joint-stock company
The Slovenian Motorways' Company (DARS) reported a major jump in revenues and profits
last year after it changed its status and acquired a company dealing with motorway
maintenance, DARS said on Thursday, 31 March.
According to the company press release, sales revenues topped SIT 34.59bn (EUR 144.2m)
last year, up from SIT 9.69bn (EUR 40.4m) in 2003, while the net profit jumped from SIT
57.6m (EUR 0.24m) in 2003 to SIT 1.05bn (EUR 4.37m) in 2004.
On 1 January 2004, DARS ceased to be a public enterprise to become a joint-stock company.
On the same day it also acquired the Motorways' Maintenance Company.
Krka Group Reports 39% Jump in Profit
Pharmaceutical group Krka has reported a 39 percent jump in profits for last year, which
amounted to SIT 14.7bn (EUR 61.31m)
Pharmaceutical group Krka has reported a 39 percent jump in profits for last year, which
amounted to SIT 14.7bn (EUR 61.31m). The group said its sales revenues in 2004 grew by 17
percent to SIT 113bn (EUR 471m).
In a press release, the group said it generated 78 percent of its revenues on foreign markets.
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Moreover, Krka said the results are in line with forecasts and the strategic plan of the group.
The Novo mesto-based group spent SIT 20.9bn (EUR 87.17m) on investments last year,
thereby continuing a trend of heavy investment into production and other aspects of its core
operations.
The group plans to see revenues rise by 14 percent to SIT 129bn (EUR 538m) this year. The
fastest growth is expected to be registered on markets of south-east and eastern Europe. As
much as 80 percent of revenues are expected to be generated on foreign markets.
One of the main priorities for this year for the group is the completion of a plant in Croatia,
which will allow Krka to obtain the classification of a domestic producer there, thus avoiding
duties on its products.
The group expects to have around 5,200 employees by the end of this year, a third of them
will be employed outside of Slovenia.
Cetis Increases Sales and Profit
Profit increased by 8% year-on-year to SIT 303.5m (EUR 1.27m)
Cetis, the Celje-based graphic and printing company, increased revenues marginally in 2004
to SIT 7.04bn (EUR 29.37). Profit increased by 8% year-on-year to SIT 303.5m (EUR
1.27m), the company said on Thursday, 31 March.
The results were confirmed on Tuesday, 29 March, when the supervisory board also decided
that conditions have been met for the payment of dividends.
Cetis, which is best known for printing Slovenian passports and personal IDs, will thus pay
SIT 770 (EUR 3.21) per share, which means that over half the net profit will be allocated for
dividends.
The company said it would upgrade production by utilising cutting-edge digital technologies,
and start shifting production to markets where it is already present in order to get the status of
domestic company.
Cetis remained level on the Ljubljana Stock Exchange at SIT 38,010 (EUR 158.55).
Dwindling Sales Hit Lasko Profit
The group finished the year with a net profit of SIT 1.1bn (EUR 4.6m)
Dwindling sales have hit the profits of Slovenia's largest brewer Pivovarna Lasko. The group
finished the year with a net profit of SIT 1.1bn (EUR 4.6m), which is 52 percent less than in
2003.
The group, which includes the parent company and the mineral water producer Radenska,
among others, blamed the harsh operating conditions on former Yugoslav markets following
Slovenia's EU entry for its worse-than-expected operations.
Net sales revenues for the group were down 15.5 percent at SIT 31bn (EUR 129.3m) in 2004
on account of an 18-percent drop in sales. The company said sales slowed down most on
former Yugoslav markets, foremost in Bosnia-Herzegovina and Serbia-Montenegro.
According to a press release from the group, all of its product lines - beer, mineral water,
drinking water and fruit juices - were hit by slumping sales.
The group, which recently became a near outright owner of rival Ljubljana-based brewer
Pivovarna Union, hopes to up its sales by 11 percent and raise its gross profit by around 50
percent this year.
Autocommerce Enjoys Bumper Year
The Autocommerce group enjoyed a bumper year in 2004 as its profit grew by 50 percent to
SIT 2bn (EUR 8.34m)
The Autocommerce group enjoyed a bumper year in 2004 as its profit grew by 50 percent to
SIT 2bn (EUR 8.34m). The group associating 39 companies dealing in the retail of motor
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vehicles and other goods, tourism, finance and IT, generated revenues of SIT 94bn (EUR
392m) last year, a jump of 12 percent on the year before.
The non-audited results for the group took into account the performance of Adria Mobil, the
Novo mesto-based camper and caravan maker that Autocommerce acquired late last year, for
the last two months of the year.
According to Autocommerce, the results show that the group continues to register growth and
is strengthening its position both at home and on foreign markets.
Autocommerce shares are not quoted on the Ljubljana Stock Exchange, although recent
rumours indicated that the group may go public soon.
Proposed Bill on RTV Slovenija Brings Major Management Changes
The Ministry of Culture has released the draft version of a new bill on RTV Slovenija
The Ministry of Culture has released the draft version of a new bill on RTV Slovenija, which
would make far-reaching changes to the broadcaster's management structure, give the general
manager greater powers and change the collection of license fees. The Association of
Journalists has already said it had not been consulted about the bill.
According to the bill, the general manager would retain the powers for business decisions but
also take over the programming part. The posts of directors for TV and radio programmes
would thus be eliminated, and new radio and TV managers named to deal mostly with
organisational and staff issues.
Additionally, the broadcaster's council and the supervisory board would be eliminated. The
bill envisages the creation of a programme council, which would take decisions regarding
content, and a new supervisory board with powers limited to organisational and business
decisions. The government would have a greater role in the supervisory board than under the
current system.
The bill also provides for the creation of a dedicated programme informing the public about
the work of the parliament. This issue was hotly contested last year when the parliament
insisted at the proposal of the opposition that all sessions should be broadcast live.
According to the proposal the current licence fee system would also be abolished. The
government has called it "utterly un-European" as licence fees are tied to electricity bills in
order to prevent people from dodging payment.
The Association of Journalists said it expects the government will not steer away from the EU
practice of consulting experts and the broader public on changes to media legislation.
Sugar Plant Blames Write-offs for 2004 Loss
Slovenia's lone sugar producer, Tovarna sladkorja Ormoz, generated revenues of SIT 10.5bn
(EUR 43.8m) last year, an increase of over 25 percent on 2003
Slovenia's lone sugar producer, Tovarna sladkorja Ormoz, generated revenues of SIT 10.5bn
(EUR 43.8m) last year, an increase of over 25 percent on 2003. Despite the strong sales, the
company said large write-offs caused it to finish 2004 with a net loss of SIT 241.2m (EUR
1m).
The loss is in stark contrast to the profit of SIT 793.45m (EUR 3.1m) made in 2003.
According to the company, the company was forced to make write-offs of SIT 2.05bn (EUR
8.3m) due to the difficult operating conditions in 2004.
In a press release that accompanied the unaudited business results for last year, the sugar
producer said it was concerned by proposals for reform of the EU sugar market. The current
proposal envisions a drop in production and a reduction in the prices of sugar beet and sugar.
Moreover, the company said it was facing fierce competition from Croatian and SerbiaMontenegro producers because of EU regulations allowing these countries unrestricted access
to the EU sugar market.
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The Ormoz-based company is in the majority ownership of Dutch company Cosun, which
controls a 58-percent stake.
Tovarna sladkorja Ormoz produced around 60,000 tonnes of white sugar last year, all of
which was sold in Slovenia.
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SLOVENIA IN BRIEF
Zoellick Underscores Importance of Slovenia's OSCE Chairmanship
US Deputy Secretary of State Robert Zoellick underscored the importance of Slovenia's
chairmanship of the OSCE, as he held talks with top Slovenian officials upon his visit to
Slovenia on Tuesday, 29 March. Topping the agenda of Zoellick's talks with Foreign Minister
and OSCE Chairman-in-Office Dimitrij Rupel and Prime Minister Janez Jansa were transAtlantic cooperation, the Balkans and the situation in Kyrgyzstan.
Coalition Agrees on Bringing Pensions into Line with Wages
The coalition parties have agreed that the amendments to the pension and disability insurance
act would include the adjustment of pensions to wages. The Pensioners' Party (DeSUS),
which has pressed for the amendment to be included in the act, said on Tuesday, 29 March the
move was in line with the coalition agreement.
PM Says NATO Membership Provides Decision-Making Opportunities
Full NATO membership has brought Slovenia a firm assurance of safety, said the Prime
Minister Janez Jansa's office in a press release published on Tuesday, 29 March on the
occasion of the first anniversary of Slovenia's membership in the alliance. As one of the
twenty-six member states, Slovenia has an opportunity to independently participate in the
decision-making in key international safety matters of the trans-Atlantic dialogue, the PM's
office wrote. However, the membership in the North Atlantic alliance demands an increased
responsibility that Slovenia is accepting in solidarity towards other member states, according
to the press release.
Lenic Resigns as Chairman of Insurer Triglav
Joze Lenic, the chairman of Slovenia's top insurer, state-owned Zavarovalnica Triglav,
tendered in his resignation to the supervisory board on Thursday, 31 March. Lenic told the
press his move was to enable the new supervisory board, which will be appointed at an
emergency general meeting, to appoint a new chairman of their own choice.
Commission Fails to Make Headway in Hauliers Row
The Slovenian-Croatian commission on road transport failed to make any progress regarding
Croatia's counter-measures to Slovenia's implementation of an EU transport directive, dubbed
as the "hauliers row". Croatia's measures will remain in place and talks will continue at the
next session, the commission said after two days of talks on Thursday, 31 March.
Papez Gets Government Green Light to Head Pension Institute
The government gave its approval for Marijan Papez to become new director general of the
Pension and Disability Insurance Institute (ZPIZ) on Thursday, 31 March. Papez, who has
until now headed the Maribor division of the ZPIZ, has been appointed for a term of four
years in March, to succeed Janez Prijatelj, whose term runs out in April.
Rupel Travels to Kyrgyzstan, Caucasus
Foreign Minister Dimitrij Rupel, the OSCE Chairman-in-Office, visited Kyrgyzstan on
Thursday, 31 March as part of OSCE efforts to resolve the political crisis in the Central Asian
republic. Rupel visited Kyrgyzstan as part of a four-day tour of the Caucasus that included
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stopovers in Armenia, Georgia and Azerbaijan. The resolution of the simmering conflict in
Nagorno Karabakh and democracy building topped his talks.
Warner Lambert and Pfizer File Patent Lawsuit against Krka
US pharmaceutical companies Warner Lambert and Pfizer have filed a lawsuit against
Slovenian company Krka at the Ljubljana District Court, alleging that Krka violated their
patent rights for two forms of Atorvastatin, a cholesterol lowering medication. Krka, which
markets the drug under the brand name Atoris, claims that it has not infringed on the patent
rights of the two firms and deems the lawsuit ungrounded. Krka is to respond to the lawsuit
within 30 days, according to a press release the company posted on the web pages of the
Ljubljana Stock Exchange on Friday, 1 April.
PM Says Slovenia Will Always Remember the Pope with Gratitude
Slovenia will remember Pope John Paul II with great gratitude, Prime Minister Janez Jansa
said in a special statement on Sunday, 3 April. "We will never forget his support in the most
critical times for Slovenia, his early international recognition of the new Slovenian state, his
respect for the language and his two visits to our country that marked the transition to the new
millennium," Jansa said. "The Holy Father was the undisputed leader of the Roman Catholic
Church, but also a great statesman. He was a herald of freedom, solidarity, justice and peace,
and a great advocate of respect and cooperation between religions, which is why his work is
appreciated across the continents," Jansa said.
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