Slovenia Business Week no. 20, May 16th, 2005 Table of Contents:
Slovenia Business Week no. 20, May 16th, 2005
Table of Contents:
Government Confident Fund-Phasing Measures Will Bring Results .................................... 9
New NKBM Chief Exec Says Development Vision Aligned with Government ................. 17
Slovenia Willing to Earmark 0.17% of GNP for Development Aid .................................... 20
Gorenje CEO Adamant the Company Will Grow Independently ........................................ 32
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HEADLINES
D&B Expects Further Drop in Inflation
International rating firm Dun&Bradstreet (D&B) has pointed to an unusually high growth in the deficit in the trade of goods in the first quarter of 2005 and persistent inflation in its monthly report for Slovenia
International rating firm Dun&Bradstreet (D&B) has pointed to an unusually high growth in the deficit in the trade of goods in the first quarter of 2005 and persistent inflation in its monthly report for Slovenia.
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Although the report says Slovenia's inflation continues to "remain stubbornly high", it credits monetary authorities with "achieving notable successes in recent years" in lowering inflation from 8.9% in 2000 to 3.3% in March of this year. <BR><BR>
The main reason for the fall in inflation is Slovenia's aim to adopt the euro by 2007, meaning that further drops can be expected in the run-up to the changeover. D&B predicts that, by the end of 2006, the rate is to drop to 2.7%. <BR><BR>
According to the report, the stabilisation of the exchange rate has been a key factor in bringing down inflation, as have government efforts to keep administered prices in check.
Serbia and Slovenia Companies to Join Forces in SE Europe, Russia
Unlike Slovenia, Serbia-Montenegro has free trade agreements with seven SE European countries and as the only country outside of the Commonwealth of Independent States also with Russia
A business conference on Monday, 9 May has suggested Slovenian and Serbian companies should consider entering the markets of South-Eastern Europe and Russia jointly. Unlike
Slovenia, Serbia-Montenegro has free trade agreements with seven SE European countries and as the only country outside of the Commonwealth of Independent States also with Russia.
<BR><BR>
The conference, organised by the chambers of commerce from Slovenia and Serbia in
Ljubljana on Monday, 9 May, pointed out that Serbia-Montenegro is Slovenia's 12th most important foreign trade partner, with trade totalling EUR 567.6m last year. <BR><BR>
Milivoje Miletic of the Serbian Chamber of Commerce and Industry said that cooperation should be upgraded with joint penetration of third markets. According to him, the chamber compiled a list of concrete cooperation programmes and the funds needed. <BR><BR>
The values of programmes differ, the highest in the field of infrastructure, Miletic said at the conference. According to him, the main problem of Serbian companies is the lack of strategic partners. <BR><BR>
Last year, Serbia generated 15.8% of its overall foreign trade in SE European countries, while trade with Russia represented 10.5% in the total of trade posted by Serbia-Montenegro, according to Miletic. <BR><BR>
Under the free trade agreement between Serbia-Montenegro and Russia, 90% of products are tax-free, according to Dragana Jaukovic of Serbia-Monetengro's Ministry for International
Economic Relations. <BR><BR>
The agreement has not been enforced yet, since the Russian Duma has not ratified it yet, but it has been implemented since it was signed in August 2000, Jaukovic explained. <BR><BR>
Tax duties in export from Serbia-Montenegro to Russia remain in force for cigarettes as products such as fresh meat, soap, white goods, some medicines, beer, cars and apple juice, but Jaukovic was hopeful that by the end of the year 98% of trade would be tax-free.
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With EU entry, Slovenia lost the benefit of free trade regime with former Yugoslav republics.
The country generates 12% of its foreign trade with SE European countries. Exports to these countries, mostly the former Yugoslavia, represent 20% of all Slovenian exports or substantially more than EUR 2bn. <BR><BR>
Trade between Slovenia and Russia is expected to top one million US dollars this year, according to Matej Rogelj, head of the international cooperation department at the Chamber of Commerce and Industry of Slovenia (CCIS).
International Boat Show in Portoroz
The show, held at Portoroz Marina, saw six boats given their debut, while a total of over 200 vessels, ranging from rubber dinghies to super-yachts, were showcased
The 10th Internautica, the biggest boat show in Slovenia, opened at the Portoroz Marina on
Tuesday, 10 May.
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Launching the show, Transport Minister Janez Bozic said the fair promoted Slovenia as a whole given the increasing popularity of nautical tourism. <BR><BR>
The biggest boat show in Slovenia came to an end on Sunday, 15 May after drawing nearly
40,000 visitors.
<BR><BR>
The organisers of the 10th Internautica put the total turnout for the six days at between 35,000 and 38,000 visitors, with most of them visiting at the weekend. <BR><BR>
The show, held at Portoroz Marina, saw six boats given their debut, while a total of over 200 vessels, ranging from rubber dinghies to super-yachts, were showcased. <BR><BR>
As part of the event, more than 250 exhibitors put their products on display on 20,000 sq. metres of fair space.
4
INTERNATIONAL COOPERATION
Ministers Discuss Boosting Trade between Slovenian and Finland
Economics Minister Andrej Vizjak met Finnish Minister of Trade and European Affairs Paula
Lehtomaki, to discuss ways of boosting bilateral trade and upgrading cooperation in high technology and innovation
Economics Minister Andrej Vizjak met on Monday, 9 May Finnish Minister of Trade and
European Affairs Paula Lehtomaki, to discuss ways of boosting bilateral trade and upgrading cooperation in high technology and innovation.
<BR><BR>
Slovenia is in want of quality capital therefore it should increase cooperation with countries such as Finland, Vizjak told a news conference after the talks. <BR><BR>
He added that Slovenia could learn a lot from Finland in its bid to raise its competitive strength and improve its transfer of knowhow from scientific sphere into business.
<BR><BR>
Topping the agenda of the talks were ways of attracting Finnish investors to Slovenia, promotion of Slovenian companies in Finland, and privatisation of the Slovenian business sector. <BR><BR>
The two ministers agreed that there were a lot of opportunities, also very concrete ones, for boosting business cooperation. <BR><BR>
Slovenia notably wishes to upgrade bilateral cooperation in the telecoms sector, with the
Kranj-based Iskraemeco already being a major exporter of electricity meters to Finland, according to Vizjak. <BR><BR>
Lehtomaki meanwhile said that that Finnish companies were interested in privatising
Slovenian companies in a number of sectors, including the telecoms, the energy sector and the chemical industry. <BR><BR>
The two countries post modest trade at the moment and have no investments. Slovenian exports to Finland amounted to EUR 28m last year, accounting for 0.3% of the total
Slovenian export. Imports from Finland meanwhile stood at EUR 50m, which is 0.6% of all
Slovenian imports.
Slovenia Looking to Bolster Ties With Finland, Rupel Says
Foreign Minister Dimitrij Rupel met Finnish Minister for Trade and European Affairs Paula
Lehtomaki
Foreign Minister Dimitrij Rupel has said Slovenia was looking to bolster ties with Finland, particularly in trade and in science, as he met Finnish Minister for Trade and European
Affairs Paula Lehtomaki.
<BR><BR>
In talks with the Finnish official in Ljubljana on Tuesday, 10 May, Rupel pointed to the lack of trade between the countries. <BR><BR>
According to a press release from the Foreign Ministry, Rupel said Slovenia would like to attract more Finnish tourists. <BR><BR>
Meanwhile, options for advancing business ties between Finland and Slovenia were examined at a business conference as part of Lehtomaki's visit to Slovenia. <BR><BR>
Finnish business officials, who were accompanying the minister on her two-day visit to
Slovenia, used the conference to speak to Slovenian counterparts. <BR><BR>
Rupel and Lehtomaki also examined bilateral cooperation in EU affairs. The pair underscored the importance of the speedy adoption of the EU's financial arrangements for 2007-2013.
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Rupel also outlined Slovenia's views on the situation in the Western Balkans to the Finnish official. He reiterated that the prospect of EU membership is an important stabilising influence in the region. <BR><BR>
Moreover, he acquainted the Finnish minister with Slovenia's stint as chair of the OSCE.
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Lehtomaki also met State Secretary for European Affairs Marcel Koprol before wrapping up her visit.
New British Ambassador Meets FM Rupel
The new British ambassador to Slovenia has said he hopes to continue advancing the strong and rich relations between Slovenia and Great Britain
The new British ambassador to Slovenia has said he hopes to continue advancing the strong and rich relations between Slovenia and Great Britain.
<BR><BR>
Presenting a copy of his credentials to Foreign Minister Dimitrij Rupel in Ljubljana on
Tuesday, 10 May, Tim Simmons said the British stint as EU president later this year would be an opportunity to promote common interests. <BR><BR>
According to the British Embassy in Ljubljana, Rupel and Simmons also examined the role of the OSCE and the situation in the Western Balkans. <BR><BR>
Moreover, talks between the pair touched on an exchange of experience in presiding over the
EU. Slovenia is scheduled to hold the presidency in the first half of 2008. <BR><BR>
The 45-year-old Simmons, who has taken over from Hugh Mortimer, is a career diplomat who has been working for the Foreign Office since 1982. <BR><BR>
Simmons was previously the deputy to the ambassador in Warsaw. He speaks French and
Polish and is learning Slovenian, the embassy added.
Incident-Avoidance Statement Largely Finalised, Say PMs
Slovenia and Croatia will finalise a statement on avoidance of incidents, which has been largely harmonised, within ten days, the Slovenian and Croatian prime ministers, Janez Jansa and Ivo Sanader, told the press
Slovenia and Croatia will finalise a statement on avoidance of incidents, which has been largely harmonised, within ten days, the Slovenian and Croatian prime ministers, Janez Jansa and Ivo Sanader, told the press on Saturday, 14 May.
<BR><BR>
The statement should be confirmed at the joint session of the two governments, due to take place in Zagreb no later than the end of June, the prime ministers said after holding an informal working meeting. <BR><BR>
Sanader underlined, however, that the statement on avoiding incidents would not represent a final agreement on the border between the two countries. NO solution will prejudge the final border line, he said. <BR><BR>
According to Jansa, the agreement would only help create a conflict-free environment until such time as a final decision on the border is agreed. <BR><BR>
Sanader thought the two countries had made a great stride forward, as a "good climate" has been created. <BR><BR>
He said the idea about joint government sessions could be the start of a good practice, where
"we will be able to discuss in an open, friendly and neighbourly atmosphere not only the resolution of open issues but also joint projects." <BR><BR>
One such project is the idea to build together a bridge across the river Mura, the Croatian prime minister said. <BR><BR>
As to the latest border incidents (the last one took place on the Mura), Jansa said the governments are tackling them on a case-by-case basis considering their gravity, so that the bulk of efforts is directed into more general solutions. <BR><BR>
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"We are thus creating an environment that would preclude such situations and which will make it possible to resolve them to mutual satisfaction should they occur nevertheless," he stressed. <BR><BR>
According to Jansa, talks with Sanader also touched on Croatia's bid to join the EU and preparations for a bilateral agreement on the avoidance of double taxation. <BR><BR>
Sanader thanked the government for supporting Croatia's EU bid, saying that "Slovenia is today an advocate of Croatia”. <BR><BR>
It was furthermore agreed that a commission of historians looking into the history of bilateral relations would be inaugurated at the joint government session. Jansa said he expects results before the term of both governments expires. <BR><BR>
Once the commission is done, the governments will try to find solutions for the border. In the extreme eventuality, there is still international arbitration, Sanader added. <BR><BR>
Jansa and Sanader met on the sidelines of the electoral congress of the ruling Slovenian
Democrats (SDS), where Sanader addressed delegates as the guest of honour.
7
EUROPEAN UNION
Slovenia Deposits EU Constitution Ratification Documents
Since 1957, when the European Economic Community was established in the Italian capital,
Italy has been the depository of all EU treaties
Slovenian Ambassador to Italy Vojko Volk has handed over to the Italian Foreign Ministry a document confirming that Slovenia ratified the European constitutional treaty on 1 February
2005.
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Since 1957, when the European Economic Community was established in the Italian capital,
Italy has been the depository of all EU treaties. <BR><BR>
The ratification document was handed to Ivo Maria Braguglia, the head of the Italian Foreign
Ministry's legal department on Monday, 9 May. <BR><BR>
Alongside Slovenia, Hungary, Lithuania, Italy and Greece have also ratified the EU constitution so far. Moreover, Spanish voters have confirmed it in a referendum.
Vizjak Attends Meeting of EU Competition Ministers
Economics Minister Andrej Vizjak said after a meeting of EU ministers responsible for competition that a probe by the European Commission will show whether the EU should introduce protectionist measures after the increased imports of Chinese textile products
Economics Minister Andrej Vizjak said after a meeting of EU ministers responsible for competition on Tuesday, 10 May, that a probe by the European Commission will show whether the EU should introduce protectionist measures after the increased imports of
Chinese textile products.
<BR><BR>
The problem of mounting textile imports from China was highlighted at the meeting by
France, Spain and Italy, which would like to see the Commission to immediately launch measure without prior inquiry. <BR><BR>
However all member states, among them Sweden and Germany, are not in favour of immediate action, so no measures are to be taken for the time being. "If violations are taking place, measures will follow," Vizjak told the press after the meeting. <BR><BR>
The ministers also discussed the guidelines for the growth and jobs initiative for the period
2005-2008. The member states have been tasked to draft national programmes and send them to Brussels by 15 October. <BR><BR>
Vizjak estimated that the proposed guidelines are solid and was pleased that the Commission left the member states a lot of freedom in keeping their national particularities in the programme. <BR><BR>
The minister was also optimistic that Slovenia would draft the programme in time since it has experience with drafting similar strategic programmes. <BR><BR>
He expects the programme to include structural reforms related to the tax system and labour market, aimed at reducing the red-tape and securing entrepreneur friendly environment.
Finnish Official Says Small EU Members Must Stick Together
Tuija Brax, the head of the Finland-Slovenia friendship group in the Finish parliament, who visited Slovenia, has said it is important for small EU members to get to know each other, stick together, cooperate and make a joint effort to preserve their identity, culture and language
Tuija Brax, the head of the Finland-Slovenia friendship group in the Finish parliament, who visited Slovenia, has said it is important for small EU members to get to know each other,
8
stick together, cooperate and make a joint effort to preserve their identity, culture and language.
<BR><BR>
Addressing the press after meeting the Slovenia-Finland group in Ljubljana on Wednesday,
11 May, Brax said her country was keen to cooperate with Slovenia and other new members of the EU. <BR><BR>
According to her, Slovenia is a leading new entrant, in particular in terms of economy, which makes Finland's interest the greater. As a member of the Green Party Brax also hailed
Slovenia's environmental efforts. <BR><BR>
Brax's Slovenian counterpart Ljubo Germic explained that the purpose of the visit by the
Finnish delegation was to boost bilateral relations, which he said were highly developed even now. <BR><BR>
According to the MP, Slovenia is primarily interested in the way the Finnish parliament deals with EU issues, in particular how to involve the public and make the adoption of decisions in the EU more democratic. Slovenia has already used some Finnish experiences, but would like to apply even more, Germic said.
Government Takes Measures to Improve Phasing of EU Funds
The government decided to take several measures to improve the phasing of EU cohesion and structural funds, Minister of Local Government and Regional Policy Ivan Zagar said after a visit to the northeastern region of Podravje
The government on Wednesday, 11 May decided to take several measures to improve the phasing of EU cohesion and structural funds, Minister of Local Government and Regional
Policy Ivan Zagar said after a visit to the northeastern region of Podravje.
<BR><BR>
According to Zagar, one of the measures to be taken is to tweak the public procurement act, since it can potentially block individual public contracts altogether. <BR><BR>
Improving the situation in this field is crucial in particular for regional development which the money is primarily intended for, Zagar said. <BR><BR>
The government reviewed 30 measures in this field that it took two months ago and established that certain progress had been made. <BR><BR>
"Forecasts of individual ministries responsible for the drawing of particular funds are more upbeat that they were a few months ago," Zagar said about the planning for the 2005 supplementary budget which is to be adopted by the government tomorrow. <BR><BR>
However, Zagar pointed out that there are still many shortcomings in the system, as evident from reports for the first quarter and requests sent to the European Commission. <BR><BR>
According to Zagar, red tape needs to be cut, although it has been concluded that far-reaching measures would make things worse. <BR><BR>
Zagar also met in Maribor with end-users of EU funds. He said they warned him about similar problems that the government was encountering. <BR><BR>
The country's capacity to phase EU money was also discussed as PM Janez Jansa met about
250 top businessmen and politicians from the region in the last act of the cabinet's visit to the region. <BR><BR>
Jansa underlined that state and local bodies need to work hand in hand in the phasing of funds, while the country also needs backup programmes in addition to current development programmes. <BR><BR>
He said that if Slovenia is not able to draw Brussels funds in a certain period, the money might be lost forever.
Government Confident Fund-Phasing Measures Will Bring Results
The government reviewed the implementation of 34 measures it adopted in early March to promote the drawing of EU funds
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The government reviewed on Thursday, 12 May the implementation of 34 measures it adopted in early March to promote the drawing of EU funds. According to Local Government and Regional Policy Minister Ivan Zagar, the government is confident the measures will bring results.
<BR><BR>
Zagar told the press that the measures have been implemented for the most part. A step forward has been made in fund phasing, he claimed. <BR><BR>
"This is not seen in the financial structure for the first quarter...but we expect to see an improvement in the next period," Zagar said. <BR><BR>
He added, however, that there are still some problems that Slovenia must fix if it wants to become efficient in drawing EU funds, including a shortage of staff and programmes and excess red tape. <BR><BR>
A key measure to bolster fund phasing will be a change in the public procurement act. Some of the current provisions in the law are hindering public procurement and consequently investment, he said. <BR><BR>
He also said that an expected improvement in fund phasing was reflected in the supplementary budget for this year, with some of the funds envisaged for next year being moved up into this year by ministries. <BR><BR>
The government also reviewed the report on the participation of Slovenian institutions in EU twinning programmes. <BR><BR>
Since the report points to a number of problems that have been encountered by institutions, the government tasked the Office for European Affairs (SVEZ) to prepare a system for carrying out twinning programmes in the future. <BR><BR>
The report notes that Slovenia is taking part in or has expressed an interest in 13 twinning projects. Two projects have already been completed and five are running. The country has also been cleared to start another five, while the selection process is still underway for one.
<BR><BR>
In line with its foreign policy priorities, Slovenia is focusing on projects involving the
Western Balkans. <BR><BR>
Due to the problems that some institutions have had in taking part in twinning projects, SVEZ has decided to create a special task force that will offer support to institutions taking part or bidding for such projects.
Slovenia Expects to Remain Net Recipient of EU Funds
Slovenia expects to retain its position as a net recipient of EU budget funds in the 2007-2013 period, Finance Minister Andrej Bajuk said on the sidelines of an informal meeting of EU finance ministers
Slovenia expects to retain its position as a net recipient of EU budget funds in the 2007-2013 period, Finance Minister Andrej Bajuk said on the sidelines of an informal meeting of EU finance ministers, where the six largest budget contributors insisted that budget spending be lower.
<BR><BR>
"In no way may Slovenia it become a net contributor," he said, adding that the member states' distinct needs have to be taken into account in budget negotiations. "Slovenia has its distinct characteristics too," he stressed. <BR><BR>
According to Bajuk, the meeting on Sunday, 15 May was the first time that the ministers discussed the revenue side of the budget. "Most agreed this issue must be resolved before agreement is reached on common spending. This is the way to a solution," he added.
<BR><BR>
Bajuk is still confident the budget talks could wrap up at the Brussels summit of 16 and 17
June. He has often said an early agreement, reached in the first half of the year, would secure
Slovenia's net budget position. <BR><BR>
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"I believe and hope that agreement will be reached," he said. Yet he did not indicate what sort of solution might still be acceptable for Slovenia. "It is too early to talk about that".
<BR><BR>
Bajuk's statement came after the six biggest contributors to the common budget repeated their insistence to cap budget spending at 1% of GNP, as opposed to the European Commission's proposal of a 1.14% cap.
11
LEGISLATION
Government Adopts Amendments to Local Election Act
The amendments have already been sent to parliament to be discussed in a fast-track procedure
The government adopted on Thursday, 12 May the amendments to the act on local elections which allow EU citizens to run at the local elections and introduce women quota.
<BR><BR>
In line with the amendments, all EU citizens will be given the right to stand for seats in municipal councils, while they can now only cast a vote at the polls. They will however not be allowed to run for mayors. <BR><BR>
The rules would remain unchanged for other foreigners with permanent residence in Slovenia, as they will only have the right to vote and not stand in elections. <BR><BR>
In order to secure equal opportunities for women, the proposed amendments suggest that at least 40% of candidates at the local elections should be women. <BR><BR>
This stipulation is due to be introduced gradually though, with a 25% women quota to be observed at the local elections next year. <BR><BR>
The amendments have already been sent to parliament to be discussed in a fast-track procedure.
Government to Start Drafting New Social Agreement
The government plans to examine the guidelines for the agreement in the first half of June and then send them to the social partners for a debate
The government adopted a decision on Thursday, 12 May to propose its social partners, i.e. the employers and the trade unions, to adopt a new social agreement for the 2006-2008 period.
<BR><BR>
The government plans to examine the guidelines for the agreement in the first half of June and then send them to the social partners for a debate. <BR><BR>
Minister of Labour, Family and Social Affairs Janez Drobnic was appointed to prepare the guidelines. <BR><BR>
According to the government proposal, the new agreement would include the chapters featured in the existing one, while new chapters would be added related to the country's project of the euro adoption. <BR><BR>
The cabinet also adopted the amendments to the act on employment of the disabled and sent it to parliament for a fast-track procedure. <BR><BR>
According to Cveto Ursic of the Ministry for Labour, Family and Social Affairs, the proposed amendments will make the existing act more transparent and, most importantly, more financially viable. <BR><BR>
The government promises among other things that the amendments will introduce more transparent criteria for acquiring the status of a disabled person.
12
STATISTICS/FORECASTS
Factory-Gate Prices Up 3.6% Y/Y
Factory-gate prices increased by 0.3% in April on March
Factory-gate prices increased by 0.3% in April on March, and went up by 3.6% year-on-year, the Statistics Office said Tuesday, 10 May. The prices increased by 1% from the beginning of the year.
<BR><BR>
Prices in manufacturing increased most at the annual level, i.e. by 4.5%, while mining and quarrying generated a 0.9% increase. Prices in forestry stayed level with those in April 2004, while they dropped by 0.5% in the gas and electricity supply. <BR><BR>
In a monthly comparison, mining and quarrying generated a 2.1% increase in prices, manufacturing 0.3%, while forestry, and electricity and water supply did not report an increase in prices on March levels. <BR><BR>
Year-on-year, capital goods were dearer by 6.2%, intermediate goods (energy products and raw material) by 4% and consumer goods by 2.3%. The prices of capital goods increased most also at the monthly level, i.e. by 0.7%.
March Trade Gap at EUR 76.8M
Slovenia's exports in March increased by 7.6% year-on-year to EUR 1.23bn, while imports rose by 4.2% to EUR 1.3bn
Slovenia's exports in March increased by 7.6% year-on-year to EUR 1.23bn, while imports rose by 4.2% to EUR 1.3bn. Trade gap stood at EUR 76.8m, with exports covering 94.1% of imports.
<BR><BR>
According to provisional data released by the national Statistics Office on Tuesday, 10 May, exports in the first quarter were up by 10.5% y/y to EUR 3.28bn, while imports increased by
9% to EUR 3.45bn. At that time trade gap was at EUR 176.2m, while export-import ration stood at 94.9%. <BR><BR>
Slovenia exported EUR 831.5m worth of goods to the EU in March, while importing EUR
1.04bn worth of goods from there. Exports to non-EU members totalled EUR 396.4m, while imports from those markets amounted to EUR 267.6m.
Slovenia Slides in Competition Rankings
Among 60 countries included in the survey, it places 52nd
Slovenia plummeted on the 2005 competitiveness rankings of the International Institute for
Management Development (IMD). Among 60 countries included in the survey, it places 52nd,
7 down from 2004.
<BR><BR>
Like last year, Slovenia was rated poorly in taxation, the work of supervisory boards, the closely-knit business culture, investment incentives, creation of new companies and business legislation. <BR><BR>
The index of competitiveness comprises four broad fields: economic performance, government efficiency, business efficiency and infrastructure. Slovenia did not improve in any of them this year. <BR><BR>
The country recorded the biggest drop, six spots, in economic performance due to a decrease in international investments. The poor performance was seen also in economic activity, where it lost 11 places. <BR><BR>
Slovenia also lost 2 places in government efficiency. Compared to the last IMD survey, productivity and efficiency turned for the worse; Slovenia fell from 28th to 53rd place. The only area where it maintained its rankings was infrastructure. <BR><BR>
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The overall ranking places Slovenia among the worst performing EU members: only Poland in 57th was ranked worse among EU member states. <BR><BR>
Among EU newcomers, Estonia ranks highest at 26th, followed by the Czech Republic in
36th, Hungary in 37th and Slovakia in 40th. <BR><BR>
The US remains the most competitive economy, followed by Hong Kong, Singapore, Iceland and Canada. The top ten also includes Finland, Denmark and Switzerland, which jumped 6 places from last year to 8th. <BR><BR>
The IMD has also examined tax rates in the different countries and reached an interesting conclusion: although the overall belief is that lower taxes contribute to competitiveness, the institute assesses their effect as minor. <BR><BR>
Indeed, the report lists science, technology, entrepreneurship, finance, logistics and education as the main motors of competitiveness.
Government Adopts IMAD Spring Report
As the government institute establishes in its report, the EU entry last year did not have a major impact on Slovenia since a big part of the trade sector geared up for new competition before the entry
The government adopted on Thursday, 12 May a spring report of the Institute for
Macroeconomic Analysis and Development (IMAD), which forecasts the country's inflation to stand at 2.5% and economic growth at 3.8% this year.
<BR><BR>
As the government institute establishes in its report, the EU entry last year did not have a major impact on Slovenia since a big part of the trade sector geared up for new competition before the entry. <BR><BR>
As for the future, the report reiterates that the key goal of the macroeconomic policy is the adoption of the euro at the beginning of 2007, which calls for complying with the Maastricht criteria beforehand. <BR><BR>
The top task is to curb inflation to meet the inflation criteria by the middle of 2006, which the fiscal policy should ensure by providing for a stable tolar exchange rate, according to the report. <BR><BR>
This should be accompanied by other macroeconomic policies, including a restrictive policy in prices supervision and counter-cyclical adjustments to excise duties on liquid fuels.
<BR><BR>
In addition, the Bank of Slovenia should harmonise the level of country's interest rates with interest rates in the euro zone, the IMAD spring report states.
14
FINANCE
KBC Keen to Raise Its Stake in Slovenia's Top Bank
A senior official of the Belgian financial group KBC, which owns a 34% stake in Slovenia's largest bank, has said that KBC will increase its share in Nova Ljubljanska banka (NLB), if this turns out to be desired
A senior official of the Belgian financial group KBC, which owns a 34% stake in Slovenia's largest bank, has said that KBC will increase its share in Nova Ljubljanska banka (NLB), if this turns out to be desired.
<BR><BR>
We would like to be the only owners of NLB, but I do not know whether we will be, Andre
Bergen, the chairman of KBC Bank and a member of the NLB supervisory board, said in a meeting with Slovenian reporters at the KBC headquarters in Brussels on Monday, 9 May.
<BR><BR>
According to him, the Belgian group does not want to be unpopular with the whole of
Slovenia. KBC plans to stay a long-term investor in NLB provided that the bank's operations and its cooperation with the Belgian bank run well, he said. <BR><BR>
The official also assured the reporters that KBC was not interested in acquiring a stake in
Nova Kreditna banka Maribor, Slovenia's second largest bank. He meanwhile said that the question of joining the insurer Zavarovalnica Triglav was hard to answer at this moment.
<BR><BR>
"The offer is currently not on the table, when it is, we'll have to decide," Bergen said about the chances of KBC entering Slovenia's largest insurer. KBC believes in the concept of bank insurance, so it does not want to enter the insurer directly. If it did, it would have to set up a holding with NLB to market banking and insurance products, KBC group chairman Willy
Duron added. <BR><BR>
According to Bergen, KBC does not have plans to enter new markets at the moment, but wants to consolidate its position in the countries of the former Yugoslavia, except Croatia, exclusively through NLB. <BR><BR>
KBC also supports NLB's decision to increase its stake in Banka Celje bank to up to 50%.
"What is good for NLB, is also good for KBC." This is regardless of the Bank of Slovenia having set the condition for NLB to cut its share in Banka Celje to below 10% for KBC to raise its stake in NLB beyond 2006.
Pensioners' Holiday Allowance up 3.2% This Year
The allowance will be paid in full along with May pensions
Pensioners' annual holiday allowance will increase 3.2% this year compared to the year before, the assembly of the Institute for Pension and Disability Insurance (ZPIZ) decided on
Tuesday, 10 May.
<BR><BR>
Those with pensions lower than SIT 84,845 (EUR 354) will get holiday allowance of SIT
73,420 (EUR 306.4), with others getting SIT 41,260 (EUR 172.2). <BR><BR>
The allowance will be paid in full along with May pensions. <BR><BR>
This was the last session for the current assembly, as well as the ZPIZ management board which also held a meeting on 10 May. <BR><BR>
The new management bodies will hold maiden sessions next week.
15
Bajuk Says NKBM to Be Privatised on Stock Market
Finance Minister Andrej Bajuk has said the privatisation of Nova Kreditna banka Maribor
(NKBM), Slovenia's second-largest bank, will be tied to its listing on the stock market
Finance Minister Andrej Bajuk has said the privatisation of Nova Kreditna banka Maribor
(NKBM), Slovenia's second-largest bank, will be tied to its listing on the stock market.
<BR><BR>
Bajuk's comments came after he held a meeting with the management of the Maribor-based bank as part of the government's visit to the Podravje region on Wednesday, 11 May.
<BR><BR>
The privatisation of the NKBM will be gradual and transparent, which can be achieved only on the stock market, Bajuk said. <BR><BR>
Bajuk told the press that the promotion of enterprise is a fundamental goal of the government.
According to him, this requires many measures, including those related to the financial system. <BR><BR>
In his view, the NKBM can turn into an indispensable factor of development of Slovenian enterprise. <BR><BR>
"The synergies that are yet to be fully utilised from the merger of the NKBM and Postna banka Slovenije (the postal bank) and from integration with local insurance companies could create a financial institution...that would serve this purpose." <BR><BR>
In order to achieve the set goals, the bank will need a capital injection, Bajuk said, adding that the government has already launched talks with the European Bank for Reconstruction and
Development (EBRD) on this. <BR><BR>
The long-term goal of the government is that the NKBM will have a role fitting of its proud history as the second financial pillar in the country, Bajuk said. <BR><BR>
Moreover, he said the privatisation of the bank would be such that the state would continue to have a crucial say in matters related to the plans of the bank. <BR><BR>
"Talks with the other owners will begin in the near future so that we could put an end to the debates on these pillars that were supposed have been created already but haven't," Bajuk added. <BR><BR>
Asked when the NKBM would be listed, Bajuk said he could not give an exact date. The government will do everything to make this as soon as possible, he added. <BR><BR>
Moreover, he said the government would like to implement a model that would allow domestic investors to play a part in the privatisation, although the government has no restraints towards foreign investors.
Budget Deficit for This Year at EUR 383.5M
The government has adopted a supplementary budget bill for 2005 which sets the budget deficit at SIT 91.9bn (EUR 383.49m) or 1.4% of GDP
The government has adopted a supplementary budget bill for 2005 which sets the budget deficit at SIT 91.9bn (EUR 383.49m) or 1.4% of GDP. The original 2005 budget, passed by parliament in December 2003, anticipated budget deficit of SIT 112bn (EUR 467.37m) or
1.7% of GDP.
<BR><BR>
Under the proposal presented by Finance Minister Andrej Bajuk on Thursday, 12 May, budget revenues will amount to SIT 1683.045bn (EUR 7.023bn), or SIT 63.9bn (EUR 266.65m) more than in the original budget, while budget expenditures are to increase by SIT 41.7bn
(EUR 174.01m) to SIT 1774.985bn (EUR 7.407bn). <BR><BR>
The framework supplementary budget bill adopted by the government in mid-April envisaged that the budget was to be cut to SIT 92.7bn (EUR 386.83m). However in the subsequent negotiations, the government managed to reduce the budget to SIT 91.9bn (EUR 383.49m).
<BR><BR>
16
"The reduction of the deficit is a good guarantee that we can introduce the euro according to the timetable," Bajuk said following the government session at which the proposal was adopted. <BR><BR>
The government hopes to secure an additional SIT 20.6bn (EUR 85.96m) in tax revenues, SIT
28.8bn (EUR 120.2m) more in non-tax revenues, SIT 1.8bn (EUR 7.51m) in capital revenues and donations and SIT 12.7bn (EUR 53m) more in EU funds than anticipated in the original budget. Slovenia thus expects to receive a total of SIT 115.9bn (EUR 483.64m) in EU funds.
Expenditures are to be SIT 41.7bn (EUR 174m) higher than originally planned, with contributions to the EU budget increasing by SIT 17.5bn (EUR 73m) to SIT 90.3bn (EUR
376.8m), Bajuk said. <BR><BR>
According to him, the government secured additional funds for various purposes at the total amount of SIT 70bn (EUR 292.1m). The total for investments is anticipated to increase by
SIT 32bn (EUR 133.5m), 23% up over what was invested in 2004. <BR><BR>
Additional funds were secured for those items where the originally planned funds were too low or not planned at all. An additional SIT 9.4bn (EUR 39.2m) is thus anticipated for wages and social insurance contributions of state administration employees. <BR><BR>
Bajuk said the sum envisaged in the original budget was too low because the number of employees in the state administration was expected to be cut by 1%, while it in fact increased by 0.3%. <BR><BR>
As part of those additional funds, a missing SIT 2bn (EUR 8.35m) was secured to cover the state's contractual obligations to car maker Revoz. The supplementary budget bill also anticipates an additional SIT 1.5bn (EUR 6.26m) for the construction of south border. These funds were originally not planned, according to Bajuk. <BR><BR>
The bill also allows for the financial consequences of the proposed amendments to the pension and disability insurance act. Due to changes in the adjustment of pensions with wage growth and a higher pension allowance, the pension budget is to increase by SIT 5.9bn (EUR
24.62m).
New NKBM Chief Exec Says Development Vision Aligned with Government
According to Finance Minister Bajuk, NKBM privatisation is one step towards the formation of a second major financial group in Slovenia
The visions of the management and the owners regarding the development of Nova Kreditna banka Maribor (NKBM) are synchronised, according to new NKBM chief executive Matjaz
Kovacic, who was referring to the government's announcement that privatisation would be gradual and partial.
<BR><BR>
Speaking after a meeting with PM Janez Jansa and Finance Minister Andrej Bajuk, Kovacic said the management board would make its proposals regarding implementation, but it ultimately depends on the supervisory board and the owners (the state) of whether they will be accepted. <BR><BR>
Under the current privatisation model, the bank would first receive a supply of fresh capital from the European Bank for Reconstruction and Development (EBRD) and then undergo privatisation. <BR><BR>
The state would retain control, while a quarter of the shares would be offered on the stock market to domestic investors. Bajuk said after the meeting that the state wants domestic companies to play a role in privatisation, although it has no reservations about foreign investors. <BR><BR>
"We will try to attract domestic investors, but the big question is what sort of stake anyone is capable of buying," Kovacic added, happy with what he said was a "Clear vision of development, for it is designed for the long term and includes institutional investors such as the EBRD." <BR><BR>
17
According to Bajuk, NKBM privatisation is one step towards the formation of a second major financial group in Slovenia, to act as a counterweight to NLB, Slovenia's largest bank, and the largest insurer, Zavarovalnica Triglav. <BR><BR>
The group would consist of NKBM, the Postal Bank (which became part of the NKBM group last year), insurer Zavarovalnica Maribor or reinsurance company Pozavarovalnica Sava. Yet
Bajuk did not rule out the possibility of integration with other private companies.
Ljubljana Stock Exchange
The benchmark SBI 20 index shed 46.44 points and closed at 4,657.59
Although listed companies have started publishing Q1 results that are largely upbeat, investors on the Ljubljana Stock Exchange remain tight-pursed. The benchmark SBI 20 index shed 46.44 points last week and closed at 4,657.59.
<BR><BR>
Reflecting the sour mood among the investors, turnover was a lacklustre SIT 7.7bn (EUR
32.1m), with block deals, mostly in bonds, taking up over 70% of the week's trading.
<BR><BR>
Surprisingly, the normally quiet trade company Kompas MTS was the biggest winner on the official market among the well-traded shares. It closed 3.6% higher at SIT 1,398 (EUR 5.83) on turnover of almost three million euros. <BR><BR>
Pharma company Krka, on the other hand, was one of the biggest losers of the week as it shed
2.3% to SIT 77,986 (EUR 325.44). The drug maker is yet to publish Q1 results. <BR><BR>
Household appliance maker Gorenje slipped 0.31% to SIT 5,810 (EUR 24.25) despite a good
Q1 performance and an increase in sales of 13% as well as profits that were up 4% year-onyear. <BR><BR>
The official market was dominated by bonds, most notably the 59th issue of the treasury bonds which posted a turnover of SIT 1.6bn (EUR 6.7m). <BR><BR>
Investment company Triglav Steber 1 was the busiest share on the free market, with deals worth almost SIT 300m (EUR 1.25m). It was up 1.6% on the week to SIT 3764.9 (EUR
15.71). <BR><BR>
The growth is probably a result of announcements that the company will finally transform into a mutual fund and, possibly, hand out hefty dividends. <BR><BR>
The investment fund PIX index gained 15.27 points last week to 4,451.05, while the bond
BIO index shed 0.54% to 121.34.
18
REGIONAL INFORMATION
Situation in Podravje Improving, Jansa Claims
"Both statistical data and what we saw during our visit indicate that economic growth is picking up in Podravje," Jansa said at the end of the government's visit to the NE Slovenian region
The situation in the Podravje region of Slovenia has taken a turn for the better after the economic shock caused by the bankruptcy of a number of industrial giants in the 1990s, Prime
Minister Janez Jansa has said.
<BR><BR>
"Both statistical data and what we saw during our visit indicate that economic growth is picking up in Podravje," Jansa said in Maribor on Wednesday, 11 May, at the end of the government's visit to the NE Slovenian region. <BR><BR>
According to him, new micro and small companies are springing up and what were once small companies have grown to become medium-sized corporations. <BR><BR>
The region has also been creating jobs faster that the country overall, but Jansa noted that the unemployment rate is still 4 percentage points higher that the average in Slovenia.
<BR><BR>
The PM claimed the region has three key development engines: the University of Maribor,
Maribor airport and the NKBM bank. <BR><BR>
He sees the Maribor airport as development potential for the entire region. "The government will try to resolve shortly certain status-related issues regarding the airport," Jansa promised.
<BR><BR>
NKBM, the country's second-largest bank, is also an institution with great development potential, according to the PM, who said talks with the bank's management have proved that the new management board shares the government's perspective on the bank's development.
<BR><BR>
The prime minister was accompanied in Podravje by the entire cabinet, with ministers holding over 60 working meetings with local politicians, businessmen and university officials.
<BR><BR>
Stretching over 2,170 square metres, the erstwhile industrial powerhouse covers more than
10% of Slovenia's territory. Its 34 municipalities - the only cities being Maribor and Ptuj - are home to 16.1% of Slovenia's population. <BR><BR>
Only 11.4% of all Slovenian companies operate in this region or 0.04 per capita, which is quite below Slovenia's average, according to a publication issued by the Maribor Faculty of
Business and Economics. <BR><BR>
With more than 15% people out of job, Podravje deviates from Slovenia's average in terms of unemployment too (11%), structural development being the most serious problem.
<BR><BR>
The data on GDP per capita is no more encouraging: according to the Statistics Office, the figure for 2002 stands at EUR 9,876, compared to the average for Slovenia of EUR 11,775.
Ljubljana to Get New Budget Air Links
The Ljubljana tourism authorities have entered negotiations on opening new low-fare flights that would link Ljubljana with Barcelona, Rome and Malmoe, in Sweden
Happy with a surge in visitor numbers that may be largely attributed to the arrival of budget carriers in Slovenia, the Ljubljana tourism authorities have entered negotiations on opening new low-fare flights that would link Ljubljana with Barcelona, Rome and Malmoe, in
Sweden.
<BR><BR>
19
According to Ljubljana Mayor Danica Simsic, Ljubljana attracted by 22% more visitors in the first four months of this year than in the same period last year. The lion's share in this increase represent foreign visitors, Simsic told the press on Thursday, 12 May. <BR><BR>
Addressing a press conference at the conclusion of a campaign for a "More Beautiful
Ljubljana", the head of the Ljubljana Tourism Institute, Barbara Vajda, said negotiations with a budget carrier she declined to name were still under way, but that it was likely to start operating flights in July. <BR><BR>
Asked by STA whether the number of foreign visitors increased as a result of budget flights to the Ljubljana airport, Vajda said the Institute was involved in attracting low-fare carriers as part of the Slovenian Power of Tourism project. This is an association of large companies set up with the intention of "attracting", she said.
Slovenia Willing to Earmark 0.17% of GNP for Development Aid
Slovenia is willing to increase development aid to the poorest countries to 0.17% of GNP by
2010, as proposed by the European Commission, according to Finance Minister Andrej Bajuk
Slovenia is willing to increase development aid to the poorest countries to 0.17% of GNP by
2010, as proposed by the European Commission, according to Finance Minister Andrej Bajuk.
<BR><BR>
"Although Slovenia has only recently joined aid providers, it is aware of its responsibility and it willing to increase its share gradually and in line with its capabilities," Bajuk said on the margins of an informal meeting of EU finance ministers on Saturday, 14 May. <BR><BR>
According to available date, Slovenia currently spends less than 0.17% of GNP for development aid. <BR><BR>
Yet Bajuk also stressed that increasing development aid is not the ultimate solution for the elimination of poverty. This can only be done at the World Trade Organisation with the liberalisation of global trade, he thought. <BR><BR>
The European Commission addressed an appeal for more aid to all EU members, to reach its objective of increasing aid collectively to 0.7% of GNP by 2015. <BR><BR>
The mid-term objective is boosting aid to 0.56% of GNP by 2010, whereby the target for old
EU members is 0.51% and for newcomers 0.17%.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.63 (-0.03) <BR>
U.S. dollar (USD) - SIT 189.76 (+4.81) <BR>
Swiss franc (CHF) - SIT 155.10 (+0.29) <BR>
British pound (GBP) - SIT 352.03 (+0.94)
20
BRANCH INFORMATION
Slovenian Oil Reserves at 75-Days and Rising
According to data from the ministry, around two-thirds of all of Slovenia's oil reserves are stored outside the country, predominantly in Germany
Slovenia has 75 days' worth of oil reserves, the Economics Ministry has told STA, adding that the reserves are rising in line with the country's international commitment to have reserves of
90-days by the end of the year.
<BR><BR>
According to data from the ministry, around two-thirds of all of Slovenia's oil reserves are stored outside the country, predominantly in Germany. The rest is stored in Slovenia.
<BR><BR>
There is a likeliness that by the end of this year, the percentage of domestically-stored reserves will increase, Anton Grabeljsek of the Institute for Compulsory Stocks of Crude Oil and Petroleum Products told the STA. <BR><BR>
The Economics Ministry explained that the rise in domestically-stored stockpiles would depend on how many new storage facilities are built in the country. Currently, Slovenia lacks the necessary capacity to store all of its oil reserves. <BR><BR>
The ministry also said that suitable legislation is in place in Slovenia to deal with an oil crisis.
In line with the legislation, the government is the ultimate authority in deciding whether to release oil reserves.
Textile Sector Officials Call for Curbing of Chinese Imports
Representatives of the struggling Slovenian textile and clothing sector have said they support the introduction of EU protectionist measures aimed at curbing Chinese import
Representatives of the struggling Slovenian textile and clothing sector have said they support the introduction of EU protectionist measures aimed at curbing Chinese imports.
<BR><BR>
In a meeting with an Economics Ministry official in Ljubljana on Tuesday, 10 May, textile sector representatives said that measures to reduce Chinese imports would buy them more time to restructure. <BR><BR>
The representatives told Mojca Jazbinsek Volk that they have no chance of competing against cheap Chinese textile and clothing products as the cost of production in China is significantly lower than in Slovenia. <BR><BR>
Volk, the acting head of the Directorate for External Economic Relations, met with the representatives to hear their view on the introduction of protectionist measures by the EU, the
Economics Ministry said. <BR><BR>
Moreover, the managers of Slovenian textile companies also said the competition from China was unfair as companies there do not have to respect such stringent standards on environmental protection and workplace safety. <BR><BR>
Volk told the participants that Slovenia would support all EU activities related to the formation of common rules concerning standards that exporters to the EU must meet, the ministry said. <BR><BR>
Moreover, she called on the representatives to compile all data showing the effects of Chinese imports on the Slovenian textile and apparel sector. <BR><BR>
The meeting was held after the EU decided in late April to launch a formal investigation into
Chinese textile imports that could result in the adoption of protectionist measures by the bloc.
<BR><BR>
Recent figures from the Economics Ministry showed that the growth of Chinese textile imports is somewhat less intense in Slovenia than in the rest of the EU. For example, shirt
21
imports in Slovenia are up 50% in the first quarter of 2004, compared to a 64% rise in the EU.
<BR><BR>
More worrying than the actual import figures is the fact that the Economics Ministry had issued permits for the import of 2.2 million pieces of Chinese clothing products by the end of
April. This is double the number of permits issued in the eight months between May and the end of last year.
Slovenia Reiterates Opposition to Radical Sugar Reform
Slovenia is not in favour of drastic lowering of sugar prices and quotas, or the exchange quotas between EU member states
Slovenia opposes a radical reform of the sugar industry in the EU, Agriculture Minister
Marija Lukacic reiterated the country's position after an informal meeting of EU agriculture ministers on Tuesday, 10 May.
<BR><BR>
As Lukacic told STA after the meeting, Slovenia is not in favour of drastic lowering of sugar prices and quotas, or the exchange quotas between EU member states. "Our position remains unchanged," she said. <BR><BR>
The European Commission published its proposal for the sugar industry reform last July, envisaging radical cuts in exports subsidies, production volume and prices.
<BR><BR>
The proposal divided the member states, with Slovenia joining a group of countries fervently opposing it. The Commission is due to draft a renewed proposal in June in a bid for an agreement to be reached by November. <BR><BR>
The reform is needed after the EU sugar sector came under fire in the WTO due to its high subsidies. <BR><BR>
In addition to the sugar reform, the ministers discussed on how to encourage young people to take up farming since the average age of farmers in the Union is sharply increasing.
<BR><BR>
The Slovenian minister explained that the situation is especially drastic in Slovenia where the average age of farmers is 55. She proposed that the EU start funding the training of young farmers.
Magdalena 2005 to Feature More Entries than Last Year
This year's Magdalena features a record number of entries, as many as 645 works by authors from Slovenia, Croatia, Bosnia-Herzegovina, Serbia-Montenegro, Austria, Poland, Italy,
Macedonia, Romania, Hungary, Ukraine, France, Bulgaria, Slovakia and the US
Between 12 and 14 May, the 7th international festival of creative communication will take place in Maribor, where young authors from different countries will be vying for the major award, Magdalena 2005.
<BR><BR>
This year's Magdalena features a record number of entries, as many as 645 works by authors from Slovenia, Croatia, Bosnia-Herzegovina, Serbia-Montenegro, Austria, Poland, Italy,
Macedonia, Romania, Hungary, Ukraine, France, Bulgaria, Slovakia and the US. <BR><BR>
Authors under 30 will be able to compete in three main groups - printed, motion and interactive media, and in a separate group - other media. Apart from the Golden Bras award, young designers will be competing for EUR 1,000, twice as much as last year. <BR><BR>
Works will be assessed by an international jury chaired by Bogdan Naumovici, creative director of Leo Burnett Agency from Romania. <BR><BR>
The festival has been organised "by young people for young people" since 1999 in a bid to award the most creative ideas in public communication created by young authors. It is organised by the Magdalena association for visual communication. <BR><BR>
The festival will also feature a number of shows, workshops and lectures which will also be held, among others, by three members of the jury. <BR><BR>
22
Latvia's Eriks Stenzenekis, creative director of Zoom! and graphic designer Felipe Taborda of
Brazil will present Latvian production and the legendary Brazilian design. Marc Brummund, a film director from Germany, will compare TV adds with other forms of film art. <BR><BR>
Creative directors of MTV Networks International Cam Levin and Peter Moller will speak about the relation between MTV and art, while Benetton's internet designer Enrique Grullon will discuss "United People", a video-messaging system in Benetton stores worldwide.
<BR><BR>
A number of concerts will be given as well, including Markus Keinzl of the Austrian electronic dub collective "Sofa Surfers" and a Slovenian brass band from Cerkno "Kar ces brass band", inspired by New Orleans jazz and evergreens from the former Yugoslavia.
Slovenia's Largest Advertising Festival Has New Vision
The 12th international advertising festival "Golden Drum" will be taking place between 2 and
7 October in Portoroz
The 12th international advertising festival "Golden Drum" will be taking place between 2 and
7 October in Portoroz. The slogan of this year's festival, organised by the Slovenian
Advertising Chamber, is "New Vision".
<BR><BR>
Today, advertising faces great challenges due to new media, globalisation and a new attitude toward consumers, Jure Apih, the director of the Golden Drum, said at a presentation of the festival on Wednesday, 11 May. <BR><BR>
The organisers believe the festival has already achieved renown in Europe, but needs to develop more, as the slogan implies. The question is whether it will remain the festival of
Eastern Europe or expand, according to Apih. <BR><BR>
For now, it would be difficult to organise a proper event with more than 2,000 guests in
Portoroz, said Apih. Therefore, instead of expanding geographically, the organisers decided to introduce another competitive category. <BR><BR>
Together with the categories "Advertising Campaigns", "Web Sites" and "TV Promo", the new category "Art Direction" will be open to advertisers from around the world. It has been designed for graphic design, direct marketing and packaging. <BR><BR>
This year's novelties also feature a competition for the best promo poster for the Slovenian coastal town of Piran, south-west, which will be sponsored by Europe's greatest image agency
Masterfile and the municipality of Piran.
Telco Regulator Head Promises Measures to Boost Competition
The acting director of the Agency for Post and Electronic Communications has promised a series of measures to boost competition on the telecommunications market
The acting director of the Agency for Post and Electronic Communications has promised a series of measures to boost competition on the telecommunications market.
<BR><BR>
Tomaz Simonic told the daily Delo on Friday, 13 May that the agency's priority would be to analyse the relevant markets, a task which is to be completed by the end of the summer.
<BR><BR>
"The results will tell us where we stand and what the markets are like. Analyses may be followed by measures that in time will affect the market conditions," he told the daily.
<BR><BR>
According to him, one of the first steps will be an appeal to national telco Telekom Slovenije to no longer require users to sign up for ISDN if they want ADSL broadband access.
<BR><BR>
"There are no technical of business reasons for that," he stressed, noting that uncoupling the two services will speed up certain processes and make them cheaper. <BR><BR>
23
Moreover, he said, the agency has been making efforts to "bring order to prices of leased lines. The prices are often lower than the officially published prices, which clouds the market situation and makes comparisons with Europe more difficult." <BR><BR>
Simonic further underlined the lack of competition on the fixed telephony market. "There are a few potentially good operators which I sincerely hope will be able to prepare good offers."
<BR><BR>
"The agency must improve conditions for the entry of new players, notably by regulating the prices of wholesale services for access to infrastructure, for example by unbounding the local loop," he told the daily. <BR><BR>
According to Simonic, the market conditions regarding the local loops have improved, since
"it is easier to talk to the companies from the Telekom group, which other operators agree with." <BR><BR>
In the mobile telephony market, Simonic underlined the success of asymmetrical prices of inter-network calls. "These measures have already led to improved ration between retail prices, or the equalisation of prices for pre-paid packages." <BR><BR>
Simonic also hopes that the second license for 3G mobile services (UMTS) will be awarded soon. However, he said it would make sense to share networks, as it does not make sense to have two separate networks that would not be utilised to full capacity. <BR><BR>
While the telecommunications market conditions are improving, Simonic says the situation in the broadcasting market is much worse. <BR><BR>
"After three months of work, I became convinced that I will have to invest a lot of effort into changing legislation, especially the acts on electronic communications and media," said
Simonic, who has headed the agency since January.
Most Shops Closed on Sundays as of 2006
The Constitutional Court decided that Article 17 of the trade act, which restricts opening hours, is not in violation of the constitution
Most shops will have to close on Sundays as of 2006 under a ruling of the Constitutional
Court published on Friday, 13 May. The court decided that Article 17 of the trade act, which restricts opening hours, is not in violation of the constitution.
<BR><BR>
The court has thus upheld the result of the May 2003 referendum on the opening hours of shops and the subsequent legislative changes that will allow unlimited opening hours only for petrol stations and shops at hospitals, hotels, airports, border crossings and train/bus stations.
All other outlets will only be allowed to open ten Sundays a year. <BR><BR>
While the appeal of retailers Mercator, Era and Kompas MTS, as well as oil company Petrol, was rejected, the court did mitigate the impact of the referendum by throwing out a provision of the trade act that restricted the size of shops that would be allowed to operate without restrictions to 80 sq. metres. <BR><BR>
The complainants claimed that restrictions on opening hours infringe on the constitutionally guaranteed freedom of enterprise, but the court rebuffed such an interpretation in saying that the Constitution does not safeguard extremely liberal definitions of freedom of enterprise.
<BR><BR>
According to the court, the legislator must provide for normative conditions for the performance of economic activity if so required by the public interest. Omission of such duty would constitute an unconstitutional legal void, but the legislator's freedom in setting conditions is nevertheless not absolute and unlimited. <BR><BR>
The court furthermore reasoned that the interests of consumers, businesses and employees need to be weighed against each other in the evaluation of opening hours. Since voters/consumers apparently agree with restrictions and expressed them at the referendum, their interests are taken care of sufficiently. <BR><BR>
24
As for the interests of businesses and employees, the court said the businesses are restricted in that they will be able to open every working day as well as ten Sundays a year. The court thinks this does not interfere too much with free enterprise. Meanwhile, employees will have to work Sundays only as an exception, which takes care of their needs as well. <BR><BR>
Three of the nine judges had a dissenting opinion. Dragica Wedam Lukic, joined by Milojka
Modrijan, for example noted that this is the third time the court has had to deal with the opening hours of stores. It should therefore finally voice a firm position on whether this constitutes infringement on freedom of enterprise or merely prescribes how the right may be exercised. <BR><BR>
She also thought that the court should not ignore the retailers' claims that they will have to lay off a considerable number of employees. This, Wedam Lukic emphasised, was why after all the court last year decided to freeze the disputed provisions until a final verdict.
IMAD Head for Boosting Research
Head of the Institute for Macroeconomic Analysis and Development (IMAD) voiced the expectation at a round table that the government would earmark more funds for research since Slovenia lacks companies producing innovations
Head of the Institute for Macroeconomic Analysis and Development (IMAD) voiced the expectation at a round table on Thursday, 12 May that the government would earmark more funds for research since Slovenia lacks companies producing innovations.
<BR><BR>
Attending the debate on Slovenia's development breakthrough in the EU, organised by the
Zlatorog business club, Janez Sustersic said that the main criteria in the research programme the government is drafting should be prudence. <BR><BR>
Sustersic is convinced that one of Slovenia's key development priorities is an efficient usage of knowhow, therefore efforts should be made to upgrade the organisation of the research and academic sphere. <BR><BR>
The head of the government institute added, however, that Slovenia is not investing into knowhow that little since recent analyses show that 1.3% of GDP go for it, which is comparable to other EU countries. <BR><BR>
Slovenia though still needs to find money for co-funding EU funds, which will be difficult since the existing tax burdens are extremely high already, Sustersic said. <BR><BR>
Other development priorities include a more efficient and less expensive state, and a modern welfare state that would secure high level of employment, Sustersic told the round table.
25
COMPANIES
CPO Clears Brewery Takeover
The approval comes three months after Lasko upped its stake in Union to over 95% by buying a 41% share from Belgian brewer Interbrew
The Competition Protection Office (CPO) has cleared brewer Pivovarna Lasko's takeover of rival Slovenian brewer Pivovarna Union.
<BR><BR>
The approval comes three months after Lasko upped its stake in Union to over 95% by buying a 41% share from Belgian brewer Interbrew. <BR><BR>
This marked the official end of a three-year battle between Interbrew and Lasko for control of
Union. <BR><BR>
Lasko thereby gained control of around 90% of the Slovenian beer market. <BR><BR>
The competition watchdog said it had considered the documentation provided by Lasko,
Union and Interbrew as well as independent market studies in making its decision.
<BR><BR>
The CPO also surveyed consumers, the competition and other companies. <BR><BR>
According to the office, the main factor in the decision was the effect of the takeover on consumers. <BR><BR>
In the end, the CPO upheld Lasko's claim that the synergies of the takeover would translate in better and cheaper products for consumers. <BR><BR>
This is the second time that the competition watchdog has issued a ruling in the Lasko-Union takeover. In July 2003, when Lasko officially held less than 50% in Union, the office said
Lasko could complete the takeover only if it promised to sell some of Union's brand names.
<BR><BR>
That ruling was challenged by both Lasko and Interbrew and the Administrative Court sent the case back to the CPO for a new decision.
Decision on Mercator Capital Increase Postponed
The capital injection will be examined at the next supervisory board session, Mercator said in a press release
A capital increase at Mercator, Slovenia's largest retailer, was not on the agenda of the supervisory board session on Tuesday, 10 May, as some experts expected. The capital injection will be examined at the next supervisory board session, Mercator said in a press release.
<BR><BR>
The supervisors reviewed the company's performance in the first three months of the year and assessed it as satisfactory and in line with the plan for this year, the press release reads.
Mercator Boosts Quarterly Results by Quarter
Retailer Mercator generated net sales revenues of SIT 60.7bn (EUR 253.2m) in the first quarter, an increase of 24.3% over the same period last year
Retailer Mercator generated net sales revenues of SIT 60.7bn (EUR 253.2m) in the first quarter, an increase of 24.3% over the same period last year. The net profit meanwhile amounted to SIT 2.1bn (EUR 8.76m), up 23.4% year-on-year.
<BR><BR>
The country's number one grocer said in a press release published by the Ljubljana Stock
Exchange on Wednesday, 11 May that the company's results account for almost one half of the figures planned for the entire year. <BR><BR>
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The company said that a major boost was notably reported in the revenues of Mercator's shopping centres, departments selling technical goods, and retail chains Intersport, Beautique and Hura!. <BR><BR>
Mercator Group, which includes 16 subsidiaries in Slovenia, Croatia, Bosnia-Herzegovina and Serbia-Montenegro, posted sales revenues of SIT 91.7bn (EUR 382.6m) in the first three months of 2005, a rise of 6.9% year-on-year. <BR><BR>
At their meeting on Tuesday, 10 May, Mercator supervisors assessed the company's performance in the January-to-March period as satisfactory and in line with plans.
Steel Industry Holding Pleased with 2004 Performance
The Slovenian Steel Industry holding met all business goals last year, as it restructured its subsidiary Metal, drafted a development strategy and reported positive operations in all subsidiaries
The Slovenian Steel Industry holding met all business goals last year, as it restructured its subsidiary Metal, drafted a development strategy and reported positive operations in all subsidiaries, the holding's chief executive Tibor Simonka said Wednesday, 11 May.
<BR><BR>
The holding reported sales revenues of SIT 91.4bn (EUR 381.3m) in 2004, an increase of
30% over the previous year, while the profit amounted to SIT 2.59bn (EUR 10.8m). It generated exports of EUR 267m last year, to rank Slovenia's sixth biggest exporter.
<BR><BR>
"The holding has been successful in transforming itself from the so-called heavy industry into one of the top Slovenian high technology companies", Simonka told a news conference.
<BR><BR>
For the first time in the holding's fifteen years, all subsidiaries reported positive results last year, also due to favourable market trends and retail prices, and good demand, according to
Simonka.
As for this year's forecasts, Simonka said that the conditions on the global market have deteriorated. He nevertheless hopes the holding will see favourable conditions until the end of the third quarter and to end the year successfully. <BR><BR>
The holding expects to post revenues of some SIT 110bn (EUR 459m) at the end of the year, while the profit is expected to double compared to 2004. <BR><BR>
As to the holding's privatisation, Simonka was hopeful that the privatisation process would start as soon as possible. He said the holding would like to see this process to proceed on two levels. <BR><BR>
The holding's first aim is that its strategic partners would become its majority owners in the privatisation. Secondly, these strategic partners would carry out the holding's key investment and development projects, according to Simonka.
Privatisation of TDR to be Sped Up, Vizjak Says
Economics Minister Andrej Vizjak has said the government intends to speed up the privatisation of TDR Metalurgija, the leading Slovenian producer of calcium carbide and ferro-alloys
Economics Minister Andrej Vizjak has said the government intends to speed up the privatisation of TDR Metalurgija, the leading Slovenian producer of calcium carbide and ferro-alloys.
<BR><BR>
Vizjak made his comments after visiting the plant in Ruse as part of the government's tour of the NE Slovenian region of Podravje on Wednesday, 11 May. He also met business officials from the region and visited Maribor airport. <BR><BR>
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According to him, TDR has been successful in adapting to the changing market conditions.
However, privatisation efforts have ground to a halt over the price of electricity. <BR><BR>
He pledged that steps would be taken to speed up the privatisation of the company would be sped up. Currently the state-owned power producer Holding slovenske elektrarne owns almost
90% of the company. <BR><BR>
"A privatisation model involving a supply of fresh capital...should be considered in privatising TDR," Vizjak said. <BR><BR>
Vizjak also underscored the importance of the nearby Maribor airport for the development of the region, especially for boosting tourism.
Voljatel Hopes to Become Biggest Competitor to Telco
According to Mariano Pireddu, Voljatel is scheduled to launch fixed-line voice services,
ADSL broadband services and Internet telephony this year, all in a bid to become the biggest alternate provider of telecommunications in the country
Telecommunications company Voljatel has plans to become the biggest competitor to the national telco, Telekom Slovenije, Voljatel's chairman told the press on Thursday, 12 May.
<BR><BR>
According to Mariano Pireddu, Voljatel is scheduled to launch fixed-line voice services,
ADSL broadband services and Internet telephony this year, all in a bid to become the biggest alternate provider of telecommunications in the country. <BR><BR>
However, he said the company faces some major challenges, not so much because of the competition from other alternate telecommunications companies but because of Telekom's domineering position on the market. <BR><BR>
Pireddu told the press in Ljubljana that being an alternate telecommunications provider is more a threat than an opportunity in Slovenia. <BR><BR>
"The situation on the market has forced us to fight with one hand tied behind our back,"
Pireddu said. <BR><BR>
He said he hoped things would change and that alternate providers would be given a real chance to compete in the future. <BR><BR>
According to him, one of the major obstacles to boosting competition is the needless tying of
ADSL services to ISDN lines. <BR><BR>
The head of Voljatel's supervisory board echoed Pireddu's concerns about competition.
According to Jank Jenko, the telecommunications market was the last to be liberalised in
Slovenia. <BR><BR>
He added that Telekom should learn to live with the competition because there is always a chance that a large foreign provider may choose to enter Slovenia. <BR><BR>
The company owned by private shareholders from Italy, Austria, the US and Slovenia generated revenues of SIT 1.39bn (EUR 5.8m) last year and reported an operating profit of
SIT 84m (EUR 350,000).
Goodyear Subsidiary Reports Profit of EUR 27m
Sava Tires, the Slovenian subsidiary of US tyre manufacturer Goodyear, said its sales revenues grew by 4.3% to SIT 67.2bn (EUR 280.41m) in 2004
Sava Tires, the Slovenian subsidiary of US tyre manufacturer Goodyear, said its sales revenues grew by 4.3% to SIT 67.2bn (EUR 280.41m) in 2004. The company's net profit rose by 3.1% to SIT 6.55bn (EUR 27.33m).
<BR><BR>
According to the company's management, 2004 was another year in which Sava Tires succeeded in raising both sales revenue and profit. The company sold 8.65 million tyres last year. <BR><BR>
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General manager Andreas Niegsch said at a press conference in Kranj on Thursday, 12 May that Sava Tires again managed to exceed its expectations. <BR><BR>
For now it seems that there is enough room for expansion in Slovenia, Niegsch said, adding that Sava Tires was one of the best performing units of Goodyear. <BR><BR>
However, he added that Slovenian policy threatens to turn into a stumbling block for the company in the future. <BR><BR>
Niegsch said that further growth in Slovenia could be endangered by the government's attitude to foreign investment, a bad tax code and labour legislation and shortages in qualified labour.
<BR><BR>
Sava Tires raised the number of its staff from 1,588 to 1,637 during the course of last year.
Moreover, new equipment helped raise production by 5.5% to 7.2 million tyres in 2004, he said. <BR><BR>
The company will focus on becoming more cost-efficient this year and bolstering its marketing, Niegsch said. <BR><BR>
According to him, the company is staying competitive by developing new products and services. This has reflected positively in 1Q operations, he added.
Gorenje Group Reports Solid Q1 Results
The group associated around the home appliance manufacturer Gorenje increased operating net revenue by 13% to SIT 53.8bn (EUR 224.5m) in the first quarter, compared with a year before, while net profit went up by 4% to SIT 903m (EUR 3.77m)
The group associated around the home appliance manufacturer Gorenje increased operating net revenue by 13% to SIT 53.8bn (EUR 224.5m) in the first quarter, compared with a year before, while net profit went up by 4% to SIT 903m (EUR 3.77m). Gorenje chairman Franjo
Bobinac assessed these results as good on Thursday, 12 May.
<BR><BR>
The revenue generated in the first quarter represents 23% of the total net revenue planned for this year, while the profit made so far represents 20% of the target figure. <BR><BR>
The parent company, Gorenje, generated SIT 35.6bn (EUR 148.5m) in net sales revenues in the first quarter, up 3% over the same period last year. Net profit increased by more than 5% to SIT 804m (EUR 3.36m). <BR><BR>
According to Bobinac, European markets continue to be characterised by slow economic activity, low consumer confidence and competitive edge reduced over the weak dollar compared to the euro. All these factors contribute to lower demand for durables, among them household appliances, while also increasing competition and price pressures. <BR><BR>
Gorenje continues to feel the consequences of Slovenia's entry into the ERM II exchange rate mechanism and the related fixation of the tolar-euro exchange rate coupled by a relatively high inflation rate, Bobinac explained at a press conference. <BR><BR>
He expects high prices of strategic and raw materials will continue to pose challenge for the company. The prices of most raw materials have stabilised at all-time high levels, with the exception of petrochemical products, whose prices continue to grow on the wings of increasing oil prices. <BR><BR>
"We'll neutralise these negative impacts by optimising and seeking for cheaper alternatives in supply sources, by selectively marking up our products and by streamlining costs in all domains." <BR><BR>
Gorenje chairman said that the production of fridges and freezers at the Valjevo plant in
Serbia would be launched by 2006. He also announced that Gorenje would probably open its office in Turkey. <BR><BR>
Bobinac expects 40% growth in revenues on the Russian market, while he is less optimistic about sales on EU markets. <BR><BR>
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Management board member Ziga Debeljak meanwhile highlighted that the company would have to secure some 4 million euros this year for recycling under the new directive on waste electric and electronic equipment. <BR><BR>
According to Debeljak, the company will try to shift as much of the costs on the consumers.
He also announced the construction of a new recycling centre.
Banka Koper to Sell Its Stake in Cimos
The Cimos group, which employs around 6,800 people, plans to set up a new development strategy to be based on four divisions: automotive production, energy, farming machines and machine construction
Banka Koper would like to sell its 14.5% stake in Cimos, the Koper-based supplier of the automotive industry, since the bank does not function as a strategic partner in the company, while its stake cannot be considered a portfolio investment either.
<BR><BR>
According to a report in the daily Delo on Friday, 13 May, the bank is preparing a due diligence and a valuation of Cimos. The results are to be available within three weeks, according to the paper. <BR><BR>
Cimos chairman Franc Krasovec estimates the company is worth between EUR 300m and
450m. "The question is who and how can acquire its shares. I don't see a suitable owner in
Slovenia. I also believe that Banka Koper will not allow a hostile takeover that would in any way undermine our operations," Krasovec told Delo. <BR><BR>
According to the paper, Cimos has become a major global production centre and a strategic supplier for leading European car manufacturers. While its total revenue amounted to some
EUR 20m in 1996, the company generated EUR 205m in revenues and some EUR 6m in net profit in 2004 with the same number of employees - 1,000. <BR><BR>
The company invests some 3% in development, which is quite above the average for
Slovenia. Its biggest customer is the French group PSA, representing 38% in the company's sales, while almost 25% of spare parts are sold to German companies (BMW, Audi,
Volkswagen), and the rest to Ford, Honeywell, Meritor, Kuester, Walterscheid and others.
<BR><BR>
"We have become a well-known development supplier, ranking in the world's first league of producers," Krasovec was quoted as saying by Delo. <BR><BR>
Until 2011, Cimos still needs to cover liabilities to creditors from bankruptcy protection, yet things are on the up. It had initially EUR 67m in liabilities, while it now needs to pay off EUR
28m. <BR><BR>
Its biggest owners are the state-run Pension Management Fund (KAD) with a 21% stake, followed by Banka Koper (14.5%), metal and plastic products manufacturer Kovinoplastika
Loz (12%), financial company NFD (8%) and hardware retailer Merkur (5%). Twenty-three investment companies have a 1% stake each. <BR><BR>
The Cimos group, which employs around 6,800 people, plans to set up a new development strategy to be based on four divisions: automotive production, energy, farming machines and machine construction. The group is expected to generate EUR 2bn in yearly revenues within ten years.
Pivovarna Lasko Halves Q1 Loss
Brewer Pivovarna Lasko halved the net loss in the first quarter of the year to SIT 114.6m
(EUR 478,000)
Brewer Pivovarna Lasko halved the net loss in the first quarter of the year to SIT 114.6m
(EUR 478,000) despite sales of only SIT 3bn (EUR 12.5m), which s down 12.4% year-onyear.
<BR><BR>
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The loss is not the only thing that Lasko cut in half: shareholders will get dividends of 50 tolars (EUR 0.21) per share, only half as much as last year, the supervisory board decided on
Thursday, 12 May. <BR><BR>
Lasko said on Friday, 13 May that a net loss is typical for the beverage industry in the first quarter of the year. Moreover, volume sales are also typically lower than in the rest of the year. <BR><BR>
The brewery sold 188,151 hectolitres of beer and water in the first three months of 2005,
13.2% less than the year before. This is 15.8% of the total volume planned for the year.
<BR><BR>
The supervisory board has also decided that the annual general meeting would be held on 17
June. Shareholders are expected to back the distribution of distributable profit whereby dividends would be at 50 tolars per share while SIT 5.3bn (EUR 22.1m) would remain intact.
Mercator Regrets Constitutional Court Decision
Mercator, the country's top retailer, has voiced regret over the decision of the Constitutional
Court on the Sunday closure of stores as of 2006
Mercator, the country's top retailer, has voiced regret over the decision of the Constitutional
Court on the Sunday closure of stores as of 2006. However, Mercator said it would respect the ruling.
<BR><BR>
The company will start making preparations for Sunday closures and try to make the layoffs as painless as possible, Mercator said in a press release on Friday, 13 May. <BR><BR>
The proponents of the referendum on the opening hours of stores (the Trade Union of
Wholesale and Retail) did not consider their actions carefully enough as the enactment of the restrictions will hurt employees most of all, the company said. <BR><BR>
"As we have announced, there will be layoffs at Mercator and a drop in sales, as well as the consequent drop in sales in the Slovenian food industry," the press release reads. <BR><BR>
The company also wonders whether this means people will go back to shopping abroad, notably in neighbouring Italy. <BR><BR>
"The biggest success of Slovenian retail has been the reduce in the number of people who shop abroad from 55% in 1997 to only 5% last year," Mercator stressed.
New Post of Slovenia GM Appointed
The state-owned Post of Slovenia is one of the country's biggest companies, with a workforce of 6,200 and revenues of over SIT 45bn (EUR 188m)
The supervisory board of the Post of Slovenia appointed on Friday, 13 May Ales Hauc as the new general manager of the company. He is set to take over from Alfonz Podgorelec, whose term ends in early June.
<BR><BR>
The 40-year-old Hauc, who holds a masters degree in economics, was selected among eight candidates, chief supervisor Matjaz Jansa told the press in Maribor. <BR><BR>
The supervisors agreed Hauc was the most suitable person for the job, Jansa said. He added that the commission picking the candidates gave preference to a candidate with experience in finance and accounting, as well as a clear vision for the Post of Slovenia. <BR><BR>
Hauc is currently working as the head of the Maribor branch of Banka Koper, Slovenia's fifthlargest bank. <BR><BR>
The state-owned Post of Slovenia is one of the country's biggest companies, with a workforce of 6,200 and revenues of over SIT 45bn (EUR 188m).
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Gorenje CEO Adamant the Company Will Grow Independently
Gorenje is clearly focused on independent development, he stressed in an interview for the daily Vecer
The market value of household appliance maker Gorenje is about 350 million euros and constitutes the best defence against takeovers, Gorenje chief executive Franjo Bobinac told the daily Vecer. Gorenje is clearly focused on independent development, he stressed in an interview on Saturday, 14 May.
<BR><BR>
Noting that very big manufacturers are typically not interested in strategic partnership but instead want to buy and integrate the takeover target, Bobinac said Gorenje was "not particularly interested in strategic partnership." <BR><BR>
"We have ideas and ambitions, and the next steps in this direction might be clear this year," according to Bobinac, who mentioned possible new takeovers as a way to achieve growth.
<BR><BR>
One of the company's objectives is to produce white goods in Velenje (the company seat), the
Czech republic, Serbia and perhaps Russia and elsewhere. <BR><BR>
Bobinac thinks the company's performance last year was good, as they took timely and decisive measures to offset negative factors such as growing prices of sheet metal and oil, the reintroduction of customs duties for countries of the former Yugoslavia and the early tolareuro peg. <BR><BR>
Gorenje last year posted sales of SIT 213m (EUR 898m) and profits at almost SIT 5bn (EUR
20.9m), and saw record cash flow. The plan for this year, said Bobinac, is sales of one billion euros and the manufacture of 3.5m household appliances together with Czech company Mora
Moravia, which Gorenje acquired last year. <BR><BR>
The company currently had a 4% market share in Europe, but "taking into account that
Gorenje is not present in all product groups and that we don't do everything ourselves, the share would be about 5%." <BR><BR>
Germany is the biggest market accounting for 18% of the sales, while the EU takes in twothirds of Gorenje's output. <BR><BR>
Bobinac also underlined the need for tax reform, which he said is currently not developmentoriented. "We expect a reform of the tax system because we want simplicity, transparency and greater focus on development." <BR><BR>
He said businesses support the flat tax, provided it alleviates the burden on the economy. "The authors of tax reform who are considering how to alleviate labour and increase the burden on consumption, have a natural ally in the corporate sector," he said.
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SLOVENIA IN BRIEF
Rupel Says Slovenia Is in Community It Belongs To
Marking Europe Day, Slovenian Foreign Minister and the OSCE Chairman Dimitrij Rupel pointed out on Monday, 9 May that Slovenia became a member of a large political, economic and cultural family when it entered the EU.
With the EU entry, Slovenia became a member of a community to which it belongs in terms of its geographical position, its mission and its interests, Rupel said at a press conference in Ljubljana.
Parliament Speaker Cukjati Meets Macedonia's Former President
Speaker of Parliament France Cukjati met former Macedonian President Kiro Gligorov in
Ljubljana on Monday, 9 May. They discussed the Macedonian preparations to enter the EU
Slovenian, Croatian Police Agree to Cooperate in Tourist Season
Slovenian and Croatian police chiefs met in Zagreb on Tuesday, 10 May and agreed to work together in preventing potential problems in the upcoming tourist season, the general police directorate told STA. Slovenian acting police chief Bojan Potocnik and Croatia's Ivica Franic arranged a regular exchange of information on road conditions.
ITF Gets First Private Donation from Croatia
Maraska, the Croatian beverage company famed for its cherry liqueur, has donated 4.5m
Croatian kunas (EUR 614,754) to the Slovenian-run International Trust Fund for Demining and Mine Victims Assistance (ITF) in what is the first private contribution from Croatia.
According to the ITF, the agreement on the donation was signed on Wednesday, 11 May at the ITF headquarters at Ig near Ljubljana by the chairman of the Zadar-based company Josko
Zavoreo and ITF director Dorijan Marsic.
PM Says Maribor University Holds Key Development Potential
The government sees the University of Maribor as having a development potential crucial not only for the city and the region of Podravje, but for the entire country, PM Janez Jansa said after a visit to the university on Wednesday, 11 May.
Iron Route Launched in Slovenia, Italy, Austria
The development of iron mining and iron industry in Alpine countries will be traced in the next three years as part of "The Iron Route", an international project which includes two
Slovenian institutions.
Of ten partners from Italy, Austria and Slovenia, research in Slovenia will be carried out by the Gorenjsko Museum and the Podzemlje Pece tourism mine and museum in Mezica. The project was designed to acquire new funds for further research in the
Alps, which boast a rich mining history, the Gorenjsko Museum director Barbara Ravnik
Toman told a press conference on Wednesday, 11 May.
Rupel Says Agreement Reached on OSCE Budget
OSCE participating states reached agreement on the OSCE budget for this year in Vienna,
Slovenian Foreign Minister Dimitrij Rupel, the OSCE chairman, said in Ljubljana on
Thursday, 12 May.
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Slovenia Vying for Seat of EU's Gender Equality Institute
The government has given a green light for Slovenia's candidacy to host the seat of a new
European gender equality institute. The candidacy project will be coordinated by an interministerial working group set upon Thursday, 12 May. It will be headed by the Office for
Equal Opportunities.
Government Adopts Plan on Cutting Public Administration Staff
The government has adopted a yearly plan on personnel policy in the public administration that envisages reducing the number of the administration's jobs by 100 or 1% this year. As
Minister for Public Administration Gregor Virant told a news conference after the cabinet's weekly session, the plan was adopted in a bid to gradually reduce the number of employees in the public administration.
Government to Earmark Funds for RACVIAC
The government decided on Thursday, 12 May to earmark SIT 2.4m (EUR 10,000) this year for Regional Arms Control Verification and Implementation Assistance Centre (RACVIAC), which operates in the framework of the Stability Pact for Southeastern Europe.
Conference: Slovenia Has Proven Credible Partner in Lobbying
Slovenia has proven a credible, serious and sound partner of the EU in terms of the lobbying it has done in Brussels, participants of a round table on lobbying in the EU said on Thursday,
12 May in Ljubljana. According to Agriculture Ministry State Secretary Franci But, a former
Agriculture Minister, Slovenia has established a good image through lobbying. "It has demonstrated it is a stable, serious and truthful partner," he said.
Croatia, Slovenia Agree to Encourage Projects Connecting Them
FM Dimitrij Rupel and his Croatian counterpart Kolinda Grabar-Kitarovic discussed the latest border incidents as they met on the sidelines of a regional ministerial in Budapest on Friday,
13 May. Speaking to STA after the meeting, Rupel said they agreed on the need to encourage projects connecting the two countries.
Rupel and Grabar-Kitarovic attended a meeting of the
Quadrilateral, a four-nation partnership uniting Croatia, Italy, Hungary and Slovenia, in
Budapest.
Jansa Unanimously Elected SDS President
Janez Jansa has been unanimously elected president of the ruling Slovenian Democrats (SDS) for a fifth consecutive term. With no votes against, 368 delegates endorsed the incumbent, who was the only candidate for the post. The delegates also appointed a new 18-strong executive board on Saturday, 14 May.
34
