Slovenia Business Week no. 18, May 3rd 2005
Table of Contents:
HEADLINES ............................................................................................................................. 2
Holding Company Sava Entering Croatian Market ............................................................... 2
PM Jansa: Slovenia Has Proved to Be Up to EU Membership Tasks ................................... 2
Cheaper Food Brings Down Inflation .................................................................................... 3
INTERNATIONAL COOPERATION ...................................................................................... 4
EU, US Ambassadors Stress Commonalities, Acknowledge Differences ............................. 4
FM Rupel Meets French Counterpart..................................................................................... 4
Parliament Speaker France Cukjati Visits Macedonia ........................................................... 5
Slovenia Establishes Diplomatic Relations with Iraq ............................................................ 6
EUROPEAN UNION ................................................................................................................. 7
Slovenia Has Been an EU Member for a Year ....................................................................... 7
Verheugen Happy with First Year of EU Enlargement ......................................................... 8
The Commission Employs 83 Slovenians .............................................................................. 9
Almunia Warns about Inflation, Urges Pension Reform ....................................................... 9
FM Pleased with Slovenia's Experience as EU Member ..................................................... 10
Drnovsek: EU Won't Bring Us Everything on Silver Platter ............................................... 11
No Big Changes in First Year of Membership, Survey Shows ............................................ 12
STATISTICS/FORECASTS .................................................................................................... 13
Social Protection Accounts for 38% of Government Expenditure ...................................... 13
Slovenians Well Informed about the Environment, Less on GM Food ............................... 13
FINANCE................................................................................................................................. 14
Government Tweaks Pension Act, More Money Needed for Pensions ............................... 14
Almunia Unhappy with Government’s Latest Pension Tweak ............................................ 14
Government Will Not Allow Partial Changes to Income Tax Law, Bajuk Says ................. 15
NKMB Chairman Steps Down ............................................................................................. 15
Ljubljana Stock Exchange .................................................................................................... 16
Foreign Exchange ................................................................................................................. 16
BRANCH INFORMATION .................................................................................................... 17
New Slovenian Tunnels Get High Safety Ratings ............................................................... 17
COMPANIES ........................................................................................................................... 18
Telekom Slovenije Gets New Supervisory Board................................................................ 18
Government Rejects Vega's Request as Unsubstantiated .................................................... 18
Company Ownership Structure Consolidating Rapidly ....................................................... 19
SLOVENIA IN BRIEF ............................................................................................................ 20
Thirty Years of Slovenian Studies in Nottingham ............................................................... 20
Slovenian Media Rated as Free by US NGO ....................................................................... 20
Rupel and Ahern on the UN Reform Package ..................................................................... 20
PM Jansa Treats for Hernia .................................................................................................. 20
HEADLINES
Holding Company Sava Entering Croatian Market
Slovenian chemical and tourism group Sava, based in Kranj, is entering the Croatian tourism
market
Slovenian chemical and tourism group Sava, based in Kranj, is entering the Croatian tourism
market, chairman of Sava holding company Janez Bohoric told the daily Vecer on Friday, 29
April. Sava is one of the biggest investment companies, buying properties, and then building
and selling facilities. <BR><BR>
"We will start off in Zagreb and Istria. However, we have not yet decided on purchasing
tourism facilities in other parts of Croatia, Serbia-Montenegro and Macedonia," Bohoric said
in an interview for the daily Vecer. <BR><BR>
The holding company is also preparing to make extensive investments into the production of
biodiesel, the goal being 50,000 tonnes of biodiesel per year, explained Bohoric. Beside oil
rape and palm-tree oil, they intend to use waste oils and animal fat, of which 4,000 tonnes is
collected in Slovenia. <BR><BR>
One of the businesses the company abolished last year was the production of tyres, which was
sold for SIT 180m (EUR 751,000). <BR><BR>
Sava's ambition was to unite the domestic chemical industry, and therefore purchased paints
producer Color and started negotiations with the Domzale-based chemical group Helios.
According to Bohoric, the companies could not agree on the price, and Sava thus sold Color
to Helios last year. <BR><BR>
The company now wants to bolster its operations in tourism. Bohoric stressed they are making
efforts for a high quality tourism business, because Slovenia is too small for mass tourism and
it would be a shame for the country to allow it. <BR><BR>
A third of Sava's capital will always be intended for financial investments, which they expect
will account for at least a third of company's profit, Bohoric also said in the interview under
the title "Nothing Happens on Its Own".
PM Jansa: Slovenia Has Proved to Be Up to EU Membership Tasks
According to the PM, Slovenia has not experienced EU entry as a drastic change, but as a
normal follow-up to its positive direction, as a return to an environment to which the
Slovenians have belonged for ever historically, culturally and geographically
Prime Minister Janez Jansa believes Slovenia has proved in the first year of EU membership
to be able to cope with tasks emerging from full membership. This is how he assessed
Slovenia's first year in the EU at a special news conference in Ljubljana. <BR><BR>
While before 1 May 2004 we were concerned over our ability to cope with full-membership
tasks, Slovenia has turned out to be well up to the new situation, and has taken part in EU
institutions and policy-making as an efficient member, Jansa stressed on Friday, 29 April.
<BR><BR>
According to the PM, Slovenia has not experienced EU entry as a drastic change, but as a
normal follow-up to its positive direction, as a return to an environment to which the
Slovenians have belonged for ever historically, culturally and geographically. <BR><BR>
Jansa reiterated the government's oft repeated positions on the 2007-2013 budget and the
Lisbon Strategy, and noted how the division of Slovenia into statistical regions will be crucial
for the phasing of cohesion funds if budget talks do not wrap up in the first half of this year.
<BR><BR>
2
According to Jansa, Slovenia contributes to the EU budget but is nevertheless a net recipient
of EU funds. It got less money than planned, which Jansa said was due to the fact that preaccession aid has been insufficiently phased and that cohesion and structural funds have not
been phased at all yet. <BR><BR>
While other newcomers are having trouble with spending EU money too, one reason is
specific to Slovenia: complicated procedures and the inappropriate relationship of those who
participated in the approval procedure, the prime minister said. The government has already
taken measures to simplify the procedures. <BR><BR>
Jansa furthermore emphasised that one year into membership, Slovenia remains an advocate
of the Union's open-door policy: it backs enlargement onto the Western Balkans and believes
membership talks should start with Croatia and Turkey. <BR><BR>
Enlargement is part of a positive European processes which brings into the Euro-Atlantic area
greater stability and peace, as well as the prospects of progress, the prime minister said.
Cheaper Food Brings Down Inflation
Slovenia's inflation fell 0.4 percentage points to an annual rate of 2.7% in April due to a fall
in the prices of food
Slovenia's inflation fell 0.4 percentage points to an annual rate of 2.7% in April due to a fall in
the prices of food. <BR><BR>
Despite price increases in most groups of goods and services, the 2.3% drop in food and nonalcoholic beverages was enough to keep the consumer price index flat for the month,
Slovenia's Statistics Office said. <BR><BR>
Prices of fuels (4.2%), education (+3.5%) and clothing and footwear (+1.7%) rose the most
this month. <BR><BR>
According to preliminary data from the office, the cumulative inflation rate for the first four
months of this year stood at 1.1%, down 0.5 percentage points from the same period last year.
<BR><BR>
The office's EMU convergence price index, created to track Slovenia's average 12-month
inflation rate, shows that Slovenia still lags 1.2 percentage points behind the euro-compatible
rate of 2.2% as of March. <BR><BR>
In order to meet euro zone price stability criteria, Slovenia's inflation must not exceed the
average inflation rate in the three member states with the lowest inflation by more than 1.5
percentage points.
3
INTERNATIONAL COOPERATION
EU, US Ambassadors Stress Commonalities, Acknowledge Differences
US Ambassador Thomas Robertson and head of the EU Representation Office Erwan Fouere
emphasised commonalities and cooperation, but also acknowledged differences between the
EU and the US at debate entitled "EU and USA - Global Competitors or Collaborators"
US Ambassador Thomas Robertson and head of the EU Representation Office Erwan Fouere
emphasised commonalities and cooperation, but also acknowledged differences between the
EU and the US at debate entitled "EU and USA - Global Competitors or Collaborators" on
Monday, 25 April. <BR><BR>
If we are to achieve our goals in the world, the EU and US must work together, stressed
Fouere, who analysed relations using the concept of German FM Joschka Fischer; he
describes transatlantic relations in historical, practical and security terms. <BR><BR>
European countries and the US have cooperated often in history, most notably during WWII,
while practical (economic) cooperation is very comprehensive. Yet we cannot deny that the
EU and US are both partners and competitors on the global market, Fouere added.
<BR><BR>
In security terms, Fouere underlined the importance of addressing global issues with the help
of multi-lateral means such as the International Criminal Court (ICC) and the Kyoto Protocol.
<BR><BR>
We are united in the resolution of many global problems. Just like the US is an indispensable
country, the EU is an irreplaceable partner, Fouere stressed. <BR><BR>
If Fouere had not mentioned the ICC and Kyoto, I could have repeated his speech word by
word, said US Ambassador Robertson, who emphasised the historical component of EuroAmerican relations. <BR><BR>
According to him, the US and EU share the same goals of democracy and freedom. "The
Kyoto Protocol, the ICC, the Airbus-Boeing dispute are merely drops in the sea of rich
American-European relations," he said. <BR><BR>
The debate was also attended by Bojko Bucar, a professor of international relations at the
Faculty of Social Sciences, who noted that the differences between the two are not as
unimportant as they are sometimes depicted. <BR><BR>
Bucar noted Europe's greater acceptance of international law and its multilateral approach to
international relations, as well as its promotion of welfare state and the diverging EU-US
views on the capital punishment. <BR><BR>
He said the US represents "hard power" and the EU "soft power". "I am not a pessimist, but
both sides of the Atlantic have several diverging views that can turn healthy competition into
an unhealthy one," he stressed. <BR><BR>
The US ambassador denied that his country was not acting multilaterally, and stressed its
cooperation with the United Nations. He said, however, that it is sometimes simply better to
bypass the UN, as has been the case with Rwanda, Srebrenica and Iraq. <BR><BR>
The US was under threat from activities in Iraq and had to react, Robertson said.
FM Rupel Meets French Counterpart
France's upcoming referendum on the proposed EU constitution topped the agenda as
Foreign Minister Dimitrij Rupel met French officials at the sidelines of an OSCE conference
in Paris
4
France's upcoming referendum on the proposed EU constitution topped the agenda as Foreign
Minister Dimitrij Rupel met French officials at the sidelines of an OSCE conference in Paris
on Thursday, 28 April. <BR><BR>
After attending the opening of the OSCE conference on preventing violence against women,
Rupel held separate meetings with French Foreign Minister Michel Barnier and Minister for
European Affairs Claudie Haignere. <BR><BR>
According to a press release by the Slovenian Foreign Ministry, the officials agreed that the
French yes to the constitution would be of major importance for the future development and
enlargement of the EU. <BR><BR>
Highlighting the need for further enlargement, Rupel said that it is essential for the countries
of the Western Balkans as they have little chances of making progress otherwise. <BR><BR>
Rupel also stressed the need for prompt launch of accession negotiations with Croatia, while
the French officials voiced expectations that Croatia would take into account the EU demand
for its full cooperation with The Hague Tribunal. <BR><BR>
As to bilateral cooperation, Rupel and Barnier estimated that relations between Slovenia and
France are very good. France is Slovenia's third largest trade partner, and Slovenia would like
to see business cooperation increase further, according to Rupel. <BR><BR>
As Slovenia is presiding over the OSCE this year, Rupel briefed his French counterpart about
the open questions concerning the organisation, notably its financing troubles and its search
for new secretary general. <BR><BR>
The OSCE chairman also informed Barnier about his recent tour of Central Asia, during
which he also visited Kyrgystan, and the latest developments concerning the yet to be
resolved status of Kosovo.
Parliament Speaker France Cukjati Visits Macedonia
Parliament Speaker France Cukjati met his Macedonian counterpart Ljupce Jordanovski for
talks that focused on Macedonia's efforts to join the EU and NATO, and the current political
situation in the country
Parliament Speaker France Cukjati met his Macedonian counterpart Ljupce Jordanovski on
Thursday, 28 April for talks that focused on Macedonia's efforts to join the EU and NATO,
and the current political situation in the country. <BR><BR>
According to the Slovenian delegation, Cukjati expressed the satisfaction that Macedonia
started implementing the Ohrid agreement. "This is a good model for other open issues in the
Balkans", he thought. <BR><BR>
Moreover, he expressed the wish that the entire Balkans was part of the EU. This is important
for Slovenia and the Union as a whole, according to Cukjati. <BR><BR>
Cukjati also met Mihajl Georgievski, the chair of the Macedonian parliamentary group for
cooperation with Slovenia. <BR><BR>
While Georgievski thanked Slovenia for backing Macedonia in its bid to join the EU, Cukjati
said Slovenia also backs Macedonia's efforts to be recognised internationally as Republic of
Macedonia. <BR><BR>
On the second day of his visit to Skopje, Speaker of Parliament France Cukjati met
Macedonian President Branko Crvenkovski and PM Vlado Buckovski, to discuss bilateral
business cooperation and the Macedonian-Greek dispute over the official name for
Macedonia. <BR><BR>
According to a source in the Slovenian delegation, Cukjati highlighted in the talks that
Macedonia finds itself in an important period when it is establishing political stability and
consequently opening the way for an economic development. <BR><BR>
5
He was convinced that the business cooperation between Macedonia and Slovenia could be
boosted much further. While the imbalance in trade lowered last year over 2003, Slovenia
would like to see trade to intensify further, according to Cukjati.
Slovenia Establishes Diplomatic Relations with Iraq
Slovenian and Iraqi ambassadors to the UN, Roman Kirn and Samir Sumaidaie, signed an
agreement on 29 April at UN headquarters in New York establishing diplomatic relations
between the two countries
Slovenian and Iraqi ambassadors to the UN, Roman Kirn and Samir Sumaidaie, signed an
agreement on Friday, 29 April at UN headquarters in New York establishing diplomatic
relations between the two countries. <BR><BR>
Slovenia is the first country to establish diplomatic relations with Iraq following the
appointment of a new Iraqi government. <BR><BR>
In a statement following the meeting, Sumaidaie told STA that Iraq was grateful for
Slovenia's support and readiness to assist in the stabilisation and reconstruction of Iraq.
<BR><BR>
The signing of this agreement lays the groundwork for a long period of cooperation, the Iraqi
official said. <BR><BR>
Claiming that the reconstruction of Iraq was only in its infant stages, Sumaidaie stressed that
there would be extensive possibilities for economic and other types of cooperation once the
security situation was settled. <BR><BR>
Despite the current troubles, we are optimistic that Iraq will get through the tough times and I
believe there is great potential for cooperation, said Sumaidaie. <BR><BR>
Speaking prior to the signing, Kirn underscored that Slovenia was already assisting Iraq
through NATO and other international organisations. Bilateral assistance is set to increase as
a result of the agreement, he added. <BR><BR>
The Slovenian government decided on Thursday, 28 April to establish diplomatic relations
with Iraq. <BR><BR>
In a press release posted on the Foreign Ministry's website, Foreign Minister Dimitrij Rupel
said Slovenia did not make efforts to establish diplomatic relations during the reign of
Saddam Hussein. <BR><BR>
"The establishment of diplomatic ties with Iraq will enable the establishment of political
cooperation and facilitate joint efforts in other fields...We are hoping for a speedy
improvement in the situation in Iraqi and consequently an improvement in bilateral economic
ties," the Foreign Ministry said.
6
EUROPEAN UNION
Slovenia Has Been an EU Member for a Year
According to the latest semi-annual Eurobarometer survey, over 52 percent of Slovenians
support EU membership
May 1 marked one year since Slovenia joined the European Union. It is too early to draw a
line and sum up the advantages and disadvantages, but the overall estimate is that Slovenia
positioned itself well in the European family of nations, and that the benefits far outweigh the
shortcomings. It seems, however, that EU membership has not yet translated into changes in
everyday life for the people. <BR><BR>
The first year of membership was by no means a period of rest, as the country had to start
participating in many crucial processes (EU constitution, elections to the European
Parliament), Lisbon Strategy reform). Moreover, preparations were launched for three
watershed projects: euro changeover and entry in the Schengen no-border zone in 2007, and
EU presidency in 2008. <BR><BR>
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. <BR><BR>
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 others also got jobs as senior officials, administrators and translators. <BR><BR>
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.
<BR><BR>
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. <BR><BR>
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. <BR><BR>
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. <BR><BR>
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.
<BR><BR>
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. <BR><BR>
Slovenia had also been making efforts to win the seat of the forthcoming EU border agency,
but lost out to Poland. However, the government has been pushing for an equal distribution of
7
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. <BR><BR>
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. <BR><BR>
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. <BR><BR>
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. <BR><BR>
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. <BR><BR>
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.
<BR><BR>
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. <BR><BR>
The lives of ordinary people changed little, and there was no exodus to wealthier member
states as some in the old EU members had feared. The fears that Slovenia would be
overflooded by cheap labour from the East proved equally unfounded. <BR><BR>
Slovenians also feared a massive sell-off of real estate to foreigners. The number of real estate
purchases by foreigners has increased, but the authorities see no reason for concern. The
country can apply safety mechanisms at any time if it feels the real estate market is disrupted.
<BR><BR>
Companies felt the impact of EU entry much more so than people, in particular the food
industry which relied heavily on markets of the former Yugoslavia but saw free-trade deals
vanish overnight. However, their problems are augmented by globalisation, which forces
companies to move production to countries with cheaper labour. <BR><BR>
Other sectors adjusted in time, having had to compete with their EU peers in the years before.
Indeed, they share the same challenges as other EU companies: investment in technology and
creating new jobs, which is also in line with the Lisbon Strategy objectives. <BR><BR>
A year after buckets of champagne and wild fireworks celebrated a major event in the
country's history, the hard facts of EU membership still feature very low on the public radar.
There is little euroskepticism, but nor is there much excitement. <BR><BR>
According to the latest semi-annual Eurobarometer survey, over 52 percent of Slovenians
support EU membership. This is a far cry from the nearly 90% who voted in favour of EU
entry at the 2003 referendum.
Verheugen Happy with First Year of EU Enlargement
The newcomers have proved they had prepared well for EU membership
"The team of new members has done well in the first year of membership, and there is no
threat of their elimination," a former European enlargement commissioner commented, using
language from the playing field, ahead of the 1st anniversary of the May 2004 round of
enlargement. <BR><BR>
8
The newcomers have proved they had prepared well for EU membership, said Guenter
Verheugen, who is currently the commissioner for enterprise and industry, as he spoke for
Slovenia's public broadcaster on Monday, 25 April. <BR><BR>
"The EU has written many safety mechanisms in the accession treaties with the new
members, and I'm proud that no safety mechanism has been used for any of the new
members," Verheugen stressed. <BR><BR>
Admitting the atmosphere in the EU has changed after 1 May 2004, Verheugen said he
expected "a post-enlargement fatigue" to settle in, but was surprised by a rising fear on the
part of some old EU members. <BR><BR>
At the same time, Verheugen denied a link between last year's enlargement and the economic
problems faced by EU members, stressing the latter were chiefly a result of globalisation, he
told TV Slovenija. <BR><BR>
"We can prove that the EU enlargement has been beneficial to all EU members. Yet people
perceive things differently, and one should explain to them that it has brought a lot and has
made Europe politically stronger." <BR><BR>
Asked if the weak support for the EU constitution in France had to do with increasing fears,
Verheugen answered affirmatively, but did not wish to speculate on what would happen if
France says "no" to the constitution in the 29 May referendum. <BR><BR>
As for the EU's map in 20 years' time, the former enlargement commissioner believes the EU
will have taken in all Balkan countries as well as Turkey, whereas cooperation with Russia
and other non-EU members will take a more formal form. <BR><BR>
An optimistic scenario would see, according to Verheugen, Europe preserve and further
develop the European way of life. Pessimisticaly, however, Europe's population will have
shrunk and gotten old, with the EU failing to keep up its economic and political power.
The Commission Employs 83 Slovenians
Out of 83 Slovenians, 62 were recruited as administrators in the top category A, while 21 are
employed in the categories B and C, which include assistants' posts and secretarial jobs
respectively
A total of 83 Slovenians were recruited by the European Commission during the first year of
Slovenia's membership in the EU, suggest the figures released by the Commission on
Wednesday, 27 April. <BR><BR>
The highest-ranking Slovenian official in the Commission's administration is Zoran Stancic,
who has been appointed deputy director-general of the Research DG. <BR><BR>
With Stancic, Slovenia places among only four new member states that have their nationals
occupying the post of deputy director-general, while none of the newcomers can boast the
office of director-general. <BR><BR>
Out of 83 Slovenians, 62 were recruited as administrators in the top category A, while 21 are
employed in the categories B and C, which include assistants' posts and secretarial jobs
respectively. <BR><BR>
A total of 1,081 citizens from the new members got the job with the Commission over the
past year, which is well below the target of 1,529, set for 2004 and 2005. <BR><BR>
Almunia Warns about Inflation, Urges Pension Reform
EU Commissioner for Economic and Monetary Affairs Joaquin Almunia praised Slovenia's
overall macroeconomic situation during visit, but warned about the risk of inflation and
urged continued pension reforms to preserve the stability of public finances in the run-up to
euro changeover
EU Commissioner for Economic and Monetary Affairs Joaquin Almunia praised Slovenia's
overall macroeconomic situation during visit on Thursday, 28 April, but warned about the risk
9
of inflation and urged continued pension reforms to preserve the stability of public finances in
the run-up to euro changeover. <BR><BR>
According to Almunia, the Slovenian economy is quite well prepared for eurozone entry, the
macroeconomic situation is good, and public debt is well within the framework determined by
the Maastricht criteria. However, he is concerned about inflation. <BR><BR>
The European commissioner told the press he had asked the authorities to keep an eye on the
evolution of inflation, as it could be the biggest problem in the assessment next year of the
country's readiness to adopt the euro. <BR><BR>
Speaking to the press alongside Almunia, Finance Minister Andrej Bajuk said the government
and the central bank have been checking inflation on an almost daily basis. "Things are going
well and we are convinced we can handle it," he said. <BR><BR>
Bajuk noted that the government and social partners reached an agreement on wages in the
public sector as part of the efforts to rein in inflation, while the government hopes a similar
deal will be struck with the unions in the private sector. <BR><BR>
According to Bajuk, the Union is furthermore concerned about the long-term stability of
public finances. "We know that we have certain problems in this field and that we have to
carry out structural reforms seriously," he added. <BR><BR>
Almunia was also interested in the pension system, Bajuk said, and noted that the decision
taken by the government to align pensions with wages will have financial consequences of up
to SIT 12.5bn (EUR 52.1m) in 2006. <BR><BR>
However, Bajuk explained that this measure, which he acknowledged could worsen the
stability of public finances in the long term, is only part of the whole. "Before the end of the
year we will draft a law where these long-term issues will be dealt with to ensure stability in
every possible way," Bajuk stressed. <BR><BR>
Voicing concern over Slovenia's long-term and medium-term public finance outlook, Almunia
thought that Slovenia could have been more ambitious in its measures considering the
favourable economic trends. <BR><BR>
He said he recommended that the government "use the additional budget revenues to reduce
the deficit and deepen the pension system reform to improve medium-term and long-term
sustainability". According to Almunia, the EU will keep a close eye on pension system
reform. <BR><BR>
Almunia also met Bank of Slovenia Governor Mitja Gaspari, who presented the country's
activities in the run-up to the euro changeover and the bank's latest economic monetary
forecasts. Gaspari said that barring major deviations from the set objectives, Slovenia will be
able to enter the eurozone as of 2007 as planned. <BR><BR>
In a speech at Center Evropa, Almunia emphasised that meeting all convergence criteria is
crucial not just for formal reasons. It is in the interest of the country adopting the euro to be
thoroughly prepared for this move, so it makes no sense to rush, he stressed. <BR><BR>
He said three lessons must be learned if the euro changeover is to be successful: thorough
preparations, the fact that the transition must be short and flexible, and that the country must
realise that the psychological impact on the citizens is the hardest part. <BR><BR>
According to Almunia, the psychological transition is made easier with effective double price
tags, which need to be in place for as short a time as possible and eliminated very soon after
the euro is introduced. Effective double pricing makes it easier to avoid abuse and excessive
price increases, he thought.
FM Pleased with Slovenia's Experience as EU Member
Foreign Minister Dimitrij Rupel has estimated that Slovenia has had a very positive
experience with its first year of EU membership, as it has managed to strengthen its position
and has become a "herald of European interests
10
Foreign Minister Dimitrij Rupel has estimated that Slovenia has had a very positive
experience with its first year of EU membership, as it has managed to strengthen its position
and has become a "herald of European interests".<BR><BR>
As Rupel told the press on Friday, 29 April, Slovenian representatives in the EU not only
defend the national interests but always try to act in favour of European interests and the
common foreign and defence policy. <BR><BR>
The foreign minister is convinced that the past year has been exceptionally good for Slovenia.
Although Slovenian companies had to face competition with EU entry, the enlargement has
had positive effects on the Slovenian economy. <BR><BR>
As to the country's future plans concerning the EU, Rupel said that Slovenia would work in
the coming months for Croatia's membership of the EU. He was convinced that Croatia will
solve its problems shortly and start accession negotiations. <BR><BR>
Slovenia also wishes, according to Rupel, that the EU border would not stop at Croatia's
borders, but would move further to the east. <BR><BR>
Irish Foreign Minister Dermot Ahern, who visited Ljubljana as the UN Secretary General
Kofi Annan's special envoy for Europe, also voiced satisfaction over Slovenia's first year of
EU membership. <BR><BR>
He told a joint news conference with Rupel that the 2004 enlargement has given the Union
fresh impetus. Ahern is also convinced that the 25-member Union is functioning better than
when it had 15 members.
Drnovsek: EU Won't Bring Us Everything on Silver Platter
Convinced that a year is too short a period for a thorough assessment of membership,
Drnovsek said that effects of EU entry for Slovenia would be "more tangible" in 2007, when
the country introduces the euro and joins the Schengen area
"The EU will not serve us everything on a silver platter, but it gives us an opportunity to use
funds that would enhance our development and raise the quality of life in Slovenia," is what
President Janez Drnovsek said at a news conference on Friday, 29 April. <BR><BR>
Drnovsek also used this occasion to call for an improvement of the country's ability to draw
EU funds, and stressed that Slovenia should negotiate to be a net receiver in the EU's next
financial perspective, form 2007 to 2013. <BR><BR>
Convinced that a year is too short a period for a thorough assessment of membership,
Drnovsek said that effects of EU entry for Slovenia would be "more tangible" in 2007, when
the country introduces the euro and joins the Schengen area. <BR><BR>
"However, in establishing that the first year in the EU has not yet brought many concrete
results, we should make sure that our activity in the EU ensures such results for the years to
come," Drnovsek told the press in Ljubljana. <BR><BR>
According to him, the country must step up efforts to prepare projects that will qualify for EU
funds. If Slovenia fails to draw EU funds effectively, it will rue the missed opportunity later
on, Drnovsek added. <BR><BR>
The president also underscored that Slovenia must pull out all the negotiating stops in trying
to ensure that it remains a net recipient of EU funds in the 2007-2013 budget period.
<BR><BR>
"Given that Slovenia has not reached the EU average yet, it would be unacceptable if the
country were to allow itself to become a net contributor to the EU budget," he said.
<BR><BR>
Slovenia's GDP, he said, currently equals to 77% of the EU average and it would not be fair if
the country were forced to pay more to the EU than it receives in return at a time when it has
the best chance to catch up. <BR><BR>
11
Drnovsek stressed that Slovenia must maintain that it be treated as three developmental
regions by the EU in order to secure itself a better position for EU regional aid in the future.
<BR><BR>
Moreover, Drnovsek claimed that the EU's goal of coexistence of European nations had not
lost on importance. Instead, this goal must be promoted better to the public, since the people
sometime forget about history and why the EU was created in the first place, he added.
<BR><BR>
"Slovenia must persist in its efforts to see the EU strengthened. This requires patience even if
things don't work out right all the time. There is no way back. History has shown us what
going back would mean," Drnovsek said. <BR><BR>
The Slovenia president said he was hopeful France's politicians would be able to convince
French people to vote for the EU constitution.
No Big Changes in First Year of Membership, Survey Shows
The first year of EU membership has not had a profound impact on people's lives, according
to a survey released by TV Slovenija
The first year of EU membership has not had a profound impact on people's lives, according
to a survey released by TV Slovenija. Some 60% of respondents said their standard of living
is the same as it was a year ago, with 33% saying that their lives have turned for the worse
and 7% noticing an improvement. <BR><BR>
The positive changes that people do feel are associated with hassle-free border crossing
(52%), and an improvement in the country's profile and image abroad (16%). <BR><BR>
Prices (34%), the living standard (24%) and job seeking (18%) are the most often quoted
negative changes, according to the survey released by the public broadcaster Saturday
evening. <BR><BR>
Most people also feel Slovenia's standing in the international arena has remained unchanged
(41%), while 34% think it has improved and 24% of the opinion that it is worse. <BR><BR>
Quizzed about further rounds of EU enlargement, 62% said they support expansion to
Romania, Bulgaria, Croatia and Turkey. While 18% would like to see just some of these
countries join the Union, 17% do not support any enlargement at all. <BR><BR>
The survey included 306 respondents and was carried out by polling firm Cati between 25 and
28 April.
12
STATISTICS/FORECASTS
Social Protection Accounts for 38% of Government Expenditure
Overall, government expenditure accounted for 41.1% of GDP in 2002 and 41.2% in 2003
Social protection accounted for 38% of government expenditure in 2002 and 2003, or 18% of
GDP, according to the Statistics Office. Pensions accounted for the bulk of the spending, or
11% of GDP, Marjana Klinar of the department of national accounts told the press on Friday,
29 April. <BR><BR>
The second biggest group of government expenditures is public administration, which took in
9% of GDP in 2002 and 2003. The state spends less than that on health (7% of GDP),
according to Klinar. <BR><BR>
This is followed by education (6% of GDP), economic activities (3%) public order and safety
(2%), defence (over 1%). The remaining funds (2% of GDP) were used for culture,
environment protection, housing and spatial development. <BR><BR>
Overall, government expenditure accounted for 41.1% of GDP in 2002 and 41.2% in 2003.
Spending on social protection, health, public order and defence remained the same in relative
terms in both years. <BR><BR>
Klinar noted that comparison with other EU members is possible only for 2002 due to a lack
of data for 2003. She said government expenditure varies from 58% of GDP in Sweden to
33% in Ireland, while Denmark and Sweden spend most on social protection (over 25% of
GDP). <BR><BR>
Compared to the EU15, Slovenia spends 0.7 percentage points less on social protection, 0.3
points more on health, 0.6 points more on education and 0.6 point less on economic activities.
<BR><BR>
The biggest difference in spending is in expenditure for public administration: Slovenia
spends 2 percentage points more than the average in the EU. Klinar noted, however, that this
category includes all expenditure that might not indicate the appropriate spending purpose.
<BR><BR>
This is the first time that the Statistics Office calculated general government expenditure by
function.
Slovenians Well Informed about the Environment, Less on GM Food
About 71% of Slovenians believe they are well informed about environmental issues
About 71% of Slovenians believe they are well informed about environmental issues, yet this
is not true of genetically modified organisms: 56% say they want more information about
GMOs, according to the latest Politbarometer survey. <BR><BR>
Moreover, 55% want more information on the effect of chemicals on products for daily use,
while only 11 percent miss information on urban environment such as traffic congestions,
pollution and lack of green areas. <BR><BR>
Interestingly, Slovenians have not placed problems of urban living on the list of top 5
environmental problems, the survey has shown. For them the worst problem is water
pollution, and the least of the problems is noise pollution. <BR><BR>
That the state of the environment affects the quality of life is an opinion shared by 72% of
Europeans and as much as 81% of Slovenians. However, both also acknowledge that
economic actors are more important (78% in the EU and 87% in Slovenia). <BR><BR>
Environmental organisations enjoy the greatest public trust when it comes to ecological
issues, as 42% trust them in the EU and 46% in Slovenia. Moreover, 45% of Slovenians trust
consumer organisations, and 41% the TV.
13
FINANCE
Government Tweaks Pension Act, More Money Needed for Pensions
The government has drafted changes to the pension and disability insurance act, stipulating
that pension growth will be synchronised with wage growth more consistently, twice a year
The government has drafted changes to the pension and disability insurance act, stipulating
that pension growth will be synchronised with wage growth more consistently, twice a year.
Moreover, the Pension and Disability Insurance Institute (ZPIZ) will have only one governing
body, a 27-member board. <BR><BR>
According to the amendments, pensions would be aligned with wage growth in November
and February. <BR><BR>
In November, pensions would increase by the equivalent of the January-September wage
increase as compared to the average of the whole of previous year. <BR><BR>
The change in January would align pensions to average wage growth in the previous year as
compared to the year before. <BR><BR>
According to Minister of Labour, Family and Social Affairs Janez Drobnic, the new pension
increase system will have financial consequences. <BR><BR>
About SIT 2bn (EUR 8.3m) more will be needed this year, and an extra SIT 8bn (EUR
33.4m) next year. <BR><BR>
The amendments also increase the pensioners' annual holiday bonus. It will increase by SIT
10,000 (EUR 41.72), or proportionately less if GDP growth this year is lower than 4.6% as
last year. <BR><BR>
According to the proposal, the bonus may be gradually increased until it reaches 75% of the
annual holiday allowance of employees in the public sector. <BR><BR>
Under the new amendments, the ZPIZ will be governed by a 27-member board made up of
representatives of the government (10), trade unions (6), employers (4) and pensioners (5).
One member would be named by the disabled and one by ZPIZ employees. <BR><BR>
The board will replace the current 30-member ZPIZ assembly and the 13-member
management board.
Almunia Unhappy with Government’s Latest Pension Tweak
"The indexation that the government passed on 28 April in my opinion isn't a direction that
public spending should focus on in the future," Almunia told MPs
Joaquin Almunia, the European commissioner for economic and monetary affairs, is not
happy with the government's move to let pensions rise more in sync with wages. "The
indexation that the government passed on Thursday, 28 April in my opinion isn't a direction
that public spending should focus on in the future," Almunia told MPs on Friday, 29 April.
<BR><BR>
The stability of public finances needs to be ensured in the long term. The deficit and public
debt are within the Stability and Growth Pact limits, yet they are not balanced and population
ageing in particular could represent a problem, Almunia said. <BR><BR>
The European Commission will express its opinion on pension reform and its consequences
when Slovenia submits its convergence report in December, Almunia told lawmakers on the
committees for the economy and finance and monetary affairs. <BR><BR>
Almunia also voiced concern about inflation, the only convergence criterion that Slovenia is
not in compliance with, and stressed that indexation is not a good way to address inflation.
<BR><BR>
"If inflation is very high, indexation is essential, but if inflation is at 2%, we have to realise
that indexation is a means of preserving purchasing power, which is bad. The purchasing
14
power of the poorest can be preserved and protected with other instruments, not indexation,"
he explained. <BR><BR>
Almunia concluded his two-day visit to Slovenia by meeting with Minister of Local
Government and Regional Policy Ivan Zagar. On the first day of the visit, he held talks with
Finance Minister Andrej Bajuk, Bank of Slovenia Governor Mitja Gaspari and PM Janez
Jansa.
Government Will Not Allow Partial Changes to Income Tax Law, Bajuk Says
Finance Minister Andrej Bajuk has said the government opposes any attempts to change parts
of income tax legislation as this could lead to the collapse of the whole system
Finance Minister Andrej Bajuk has said the government opposes any attempts to change parts
of income tax legislation as this could lead to the collapse of the whole system. His comments
came a day after the government called on parliament to throw out student-sponsored
amendments to the income tax law. <BR><BR>
According to Bajuk, attempts to partially change "complex legislation such as the income tax
law could lead to the collapse of the whole system". <BR><BR>
The government cannot agree with changes that could endanger the stability of public
finances in a period crucial for Slovenia's bid to join the eurozone, Bajuk added. <BR><BR>
The government said it opposed changes put forward by the Student Organisation of Slovenia
(SOS), which call for the exemption of withholding tax for student workers for sums below
113,583 (EUR 474) per invoice. <BR><BR>
Bajuk said the government was willing to make payments up to SIT 74,000 (EUR 309)
exempt from withholding tax since the system could cope with such a change. Anything more
would pose a danger to the system, he claimed. <BR><BR>
In response, SOS announced it would stage a massive student demonstration as a result of the
government's unwillingness to back its changes. The organisation had previously collected
more than 5,000 signatures in support of its proposal. <BR><BR>
Bajuk has pledged in the past that the highly unpopular tax reform adopted by the previous
government in 2004 will be written anew. A special task force has already been appointed at
the Finance Ministry for this purpose. <BR><BR>
However, it is unlikely the government will make changes to the tax legislation before 2007
due to current efforts to adopt the euro by then. <BR><BR>
Apart from students, last year's tax reform has particularly angered farmers, athletes,
journalists and cultural workers. <BR><BR>
Moreover, its high rates of income tax and complexity have prompted the new government to
begin considering new proposals that would allow Slovenia to be more competitive in terms
of employment of high-skilled workers. <BR><BR>
Recently, economists advising the government have stepped up calls for a flat tax rate similar
to that in place in Slovakia.
NKMB Chairman Steps Down
The supervisors also asked management board member Matjaz Kovacic to draft a proposal
for a new management board by the time the supervisory board meets the next time
Crtomir Mesaric, the chairman of Nova Kreditna banka Maribor (NKBM), stepped down on
Monday, 25 April. "We reached an agreement on the termination, in the interest of the bank
and in my interest," Mesaric said after the session of the bank's supervisory board. The
supervisors also asked management board member Matjaz Kovacic to draft a proposal for a
new management board by the time the supervisory board meets the next time. <BR><BR>
According to Bogomir Spiletic, the supervisory board chairman and state secretary at the
Finance Ministry, there are no candidates lined up for the bank's new chief exec. Furthermore,
15
the supervisory board gave the green light for the bank to take out a syndicated loan worth
EUR 100m, with the option of increase to EUR 170m.
Ljubljana Stock Exchange
The four-day trading week saw only SIT 2bn (EUR 8.34m) worth of regular deals
Last week's action on the Ljubljana Stock Exchange was marked by exceptionally thin
volumes. The four-day trading week saw only SIT 2bn (EUR 8.34m) worth of regular deals.
Despite the lack of action, most of the blue chips managed to post gains, with the SBI 20
benchmark index gaining 0.88% to 4,734.72 points. <BR><BR>
Total volumes amounted to SIT 11.8bn (EUR 49.2m), but nearly 90% of that was in block
deals, with the bulk of those involving bonds. <BR><BR>
In the shortage of action, pressure mounted more on the buying side, helping most of the blue
chips register gains last week. <BR><BR>
Drug maker Krka was the only share to generate a respectable turnover last week. It gained
nearly 2% to finish at SIT 79,506 (EUR 331.62). <BR><BR>
Retailer Mercator snapped a long losing streak last week, picking up 2% to SIT 38,168 (EUR
159.20). <BR><BR>
The only big name blue chip to lose ground last week was home appliance maker Gorenje,
which shed 0.9% to SIT 5,878 (EUR 24.52). <BR><BR>
Shares of chemical and tourism group Sava were among the best performers last week on the
official market, gaining 3% to SIT 45,000 (EUR 187.70). <BR><BR>
Food company Zito surged 3.1% to SIT 31,216 (EUR 130.22) in the last two days of the week
on news that a former head of rival Ljubljana food company was named the chair of the
company on Thursday, 28 April. Zito had lost more that 15% of it value since March as
investors grew increasingly angry with its board. <BR><BR>
On the free market, the PIX investment fund index gained 0.67% to 4,419.03, pushed higher
by Triglav Steber 1, which gained 1.1% to SIT 3,675 (EUR 15.33). <BR><BR>
The BIO bond index ended the week at 122.33 points, up 0.13%.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.67 (-0.01) <BR>
U.S. dollar (USD) - SIT 184.99 (+1.54) <BR>
Swiss franc (CHF) - SIT 155.89 (+0.60) <BR>
British pound (GBP) - SIT 353.70 (+2.52)
16
BRANCH INFORMATION
New Slovenian Tunnels Get High Safety Ratings
The European Tunnel Assessment Programme (EuroTAP) rated the dual tube highway
tunnels Kastelec and Dekani, both on the new section of the Ljubljana-Koper motorway, as
very good, the highest possible grade
A safety test of road tunnels has found that two new Slovenian tunnels are among the safest in
Europe. <BR><BR>
The European Tunnel Assessment Programme (EuroTAP) rated the dual tube highway
tunnels Kastelec and Dekani, both on the new section of the Ljubljana-Koper motorway, as
very good, the highest possible grade. <BR><BR>
The two took fourth and fifth spot among the 49 tunnels from 14 countries that were
examined in the survey. <BR><BR>
Meanwhile, the Karavanke (Karawanken) tunnel linking Slovenia and Austria was rated as
satisfactory, the second-highest grade for single tube tunnels. <BR><BR>
According to the Slovenian Automobile Association, AMZS, Slovenian construction
companies should be praised for their work on the Kastelec and Dekani tunnels. <BR><BR>
The two tunnels scored the best safety ratings of any Slovenian tunnels so far. <BR><BR>
The only shortcomings of the two tunnels are their lack of limits for transport of dangerous
substances and poorly marked emergency exits. <BR><BR>
The Karavanke tunnel was marked down because of a lack of a PA system and emergency
exits. <BR><BR>
According to the AMZS, the operator of the Karavanke tunnel intends to fix the safety
shortcomings in the coming years. <BR><BR>
The top spot in the test was shared by the Austrian tunnel Ottsdorf on the highway between
Linz and Graz and the Luxembourg tunnel Markusberg on the highway between Petang and
Schengen. <BR><BR>
Italian tunnels fared the worse, with three of the four reviewed by EuroTAP given the lowest
possible grade - deficient.
17
COMPANIES
Telekom Slovenije Gets New Supervisory Board
Shareholders of Telekom Slovenije, the fixed-line telecoms operator, approved a new
supervisory board on 26 April and amended the company's articles of association to expand
the board to nine members
Shareholders of Telekom Slovenije, the fixed-line telecoms operator, approved a new
supervisory board on Tuesday, 26 April and amended the company's articles of association to
expand the board to nine members. <BR><BR>
The new supervisory board comprises Matjaz Jansa, the head of the directorate for electronic
communications at the Economics Ministry; Miro Rozman, a former state secretary for post
and telecommunications; and Joze Zrimsek, the head of the information society directorate at
the Ministry of Higher Education, Science and Technology. <BR><BR>
Karmen Ponikvar, a member of the Agency for Insurance Supervision; Ziga Turk, the head of
the department for construction informatics at the Faculty of Architecture; and Borut Stukelj,
the dean of the Faculty of Pharmacy, have also been named to the board. <BR><BR>
With 75 percent of the voting capital present, the shareholders named only six of the nine
supervisors; the remaining three are elected by the employees. <BR><BR>
The prospective reshuffle had led many commentators to wonder before the general meeting
how long the management board will remain in place. Indeed, the executive in charge of
business services, Matija Vojsk, offered his resignation last week. <BR><BR>
Libor Voncina, the chairman of Telekom since March 2004, explained that only time will tell
whether the management will be able to work hand in hand with the supervisory board.
<BR><BR>
"Only when the supervisory board is officially inaugurated will I be able to comment on what
our work relationship will be like," Voncina said. <BR><BR>
Voncina added he has no reason to doubt the competence of the new supervisors, but he also
said he has seen no reason why he should resign considering the company's good results.
<BR><BR>
The state is the biggest single shareholder of the national telco, with a stake of 62.53%.
Indirectly, it holds another 10% through the state-owned Pension Management Fund (KAD)
and Restitution Fund (SOD).
Government Rejects Vega's Request as Unsubstantiated
The government on 28 April rejected as unsubstantiated the request of mobile operator Vega
that the authorities create a normal competitive environment in telecommunications
The government on Thursday, 28 April rejected as unsubstantiated the request of mobile
operator Vega that the authorities create a normal competitive environment in
telecommunications. Vega had said it would sue the state for EUR 337m if nothing is done to
improve the market situation. <BR><BR>
The Economics Ministry, which was examining Vega's request, established that there are no
elements of wrongdoing in the actions of the state authorities, while Vega's request contains
imperfect and contradictory statements. <BR><BR>
According to Jernej Pavlin, the government spokesman, the government has thoroughly
studied the case and consulted Slovenian and foreign law and economics experts. <BR><BR>
It also examined an analysis of business decisions prior, during and after Vega entered the
Slovenian market, and concluded that its failure was a result of poor decisions based by
investors and Western Wireless International, Vega's owner. <BR><BR>
18
Interestingly, Matjaz Jansa, the head of the Economics Ministry's Telecommunications
Directorate, told the press on 22 that the government had not been informed that all
possibilities for an out-of-court settlement were exhausted. <BR><BR>
His comment came after a press report said Vega had ordered its lawyers to finalise the EUR
337m damages suit against the state for failure to ensure competition after talks between Vega
and state-owned Mobitel on the acquisition of Vega's assets had collapsed. <BR><BR>
However, Jansa admitted that there was little possibility that Vega's assets could be acquired
by another wireless provider. This was considered the most likely out-of-court solution to the
case. <BR><BR>
Moreover, Jansa said Vega had every right to file a lawsuit. He stressed that the government
had taken Vega's claim seriously, although it never discussed compensation with Vega since it
did not see a reason for this.
Company Ownership Structure Consolidating Rapidly
The ownership of companies is undergoing rapid consolidation: in the post-privatisation
period of 1999-2004, the average number of shareholders dropped steadily, with stakes now
mostly held by domestic non-financial holdings, according to a survey published by the
Economic Mirror
The ownership of companies is undergoing rapid consolidation: in the post-privatisation
period of 1999-2004, the average number of shareholders dropped steadily, with stakes now
mostly held by domestic non-financial holdings, according to a survey published by the
Economic Mirror. <BR><BR>
In the five-year period, the average number of shareholders dropped from 931 to 662, while
the average stake of the biggest shareholder was up 14 percentage points to 52%. <BR><BR>
Interestingly, the stakes of the second and third-largest shareholders had not changed
substantially in the observed period and now stand at 15.6% and 9.1% respectively.
<BR><BR>
The ownership of firms listed on the Ljubljana Stock Exchange is much more dispersed. At
the end of 2004 the largest shareholders of 94 non-financial companies had average voting
shares of 35.4%, while the figure in half of these companies was below 25%. <BR><BR>
The survey's conclusion is that the structure of listed companies is rapidly approaching the
continental European model of big ownership. <BR><BR>
Domestic non-financial enterprises were the biggest shareholders in almost half of the 708
companies included in the survey, holding an average of 60% of the voting capital.
<BR><BR>
The survey, carried out by associate professor at the Ljubljana Economics Faculty Aleksandra
Gregoric, was published in the latest issue of Economic Mirror, a publication of the
government Institute for Macroeconomic Analysis and Development (IMAD).
19
SLOVENIA IN BRIEF
Thirty Years of Slovenian Studies in Nottingham
Celebrations of the 30th anniversary of the study of the Slovenian language in Nottingham
took place at the University of Nottingham on Tuesday, 26 April. The events were organised
by the Department of Slovenian Studies at the university and the Slovenian Embassy in
London. The head of the Office of Slovenians Abroad Franc Puksic took this opportunity to
decorate the Department of Russian and Slavonic Studies for supporting the Slovenian
Department during these years.
Slovenian Media Rated as Free by US NGO
A leading US non-governmental organisation has ranked Slovenia's media as free, although it
found some shortcomings, including self-censorship owing to political pressure. Slovenia
ranked 35th out of 194 countries included in Freedom House's annual survey of global press
freedom for 2004, an improvement of six places on 2003.
Rupel and Ahern on the UN Reform Package
The planned UN reforms topped the agenda of talks between Foreign Minister Dimitrij Rupel
and his Irish counterpart Dermot Ahern, who visited Ljubljana on Friday, 29 April as the UN
Secretary General Kofi Annan's special envoy for Europe and an advocate of the
organisation's reforms. As Rupel told the press after the meeting, Slovenia is in favour of the
world body's reform since the UN were established in response to WWII and need reforming
after 60 years of existence.
PM Jansa Treats for Hernia
Slovenian Prime Minister Janez Jansa was admitted to Maribor Hospital for routine surgical
treatment for abdominal hernia on Friday, 29 May. Slovenian PM was released from hospital
on 2 May.
20