Slovenia Business Week no. 30, July 25th, 2005
Table of Contents:
HEADLINES ............................................................................................................................. 3
List of Most Widely Read Periodicals Remains Unchanged ................................................. 3
Expensive Slovenian Yacht Sets Sail ..................................................................................... 3
Government Reform Committee to Tackle Taxes First ......................................................... 4
INTERNATIONAL COOPERATION ...................................................................................... 6
Speaker Debates Ways to Boost Ties with Austria Styria Province ...................................... 6
Rupel Urges Prompt Launch of Accession Talks with Croatia ............................................. 6
Slovenia Wants Trade Talks to Succeed in Hong Kong ........................................................ 7
Irish and Hungarian Ambassadors Pay Farewell Visit to Rupel ............................................ 7
President Drnovsek Receives Outgoing Luxembourg Ambassador ...................................... 7
Slovenia and Botswana Establish Diplomatic Relations........................................................ 8
First Meeting of Group for Trieste-Divaca Rail Section Successful ..................................... 8
Koprol Tells Ukraine EU Door Is Open ................................................................................. 9
Slovenian, Croatian FMs Hold Working Meeting ................................................................. 9
Koprol Urges Ukraine to Undertake Reform ....................................................................... 10
EUROPEAN UNION ............................................................................................................... 11
Slovenian Sugar-Beet Growers Join Protest in Brussels ...................................................... 11
Slovenia Successful in Implementing EU Law .................................................................... 11
Ministers Says Slovenia against Proposed Sugar Reform ................................................... 11
Parliamentarians Want EU Treaty Ratification to Continue ................................................ 12
Loyola de Palacio Put in Charge of Slovenian Transport Projects ...................................... 12
Slovenia to Remain One Cohesion Region until the End of 2005 ....................................... 13
Loyola de Palacio Promises to Talk to All Parties Involved ................................................ 14
LEGISLATION ........................................................................................................................ 15
Government Adopts Positions for Social Agreement .......................................................... 15
Government Moves to Ease Catering Regulations and Fight Abuse ................................... 15
National Council Vetoes Act on Drivers' Working Time .................................................... 16
STATISTICS/FORECASTS .................................................................................................... 17
May Unemployment at 9.9% ............................................................................................... 17
Slovenians Most Avid Supporters of EU Enlargement, Survey Shows ............................... 17
Foreign Debt Tops EUR 16.53bn in April ........................................................................... 18
Inflation Curbing Has Lost Steam, Analysts Warn .............................................................. 18
Central Bank Analysts Say Oil Prices Main Generator of Inflation .................................... 18
FINANCE................................................................................................................................. 20
Prices of Oil Derivatives Go Up........................................................................................... 20
NKBM Shareholders Meeting Approves Dividend of EUR 1.35 ........................................ 20
Government Report Suggests Gradual Increase in State Aid .............................................. 20
Finance Minister Disagrees with Mrkaic's View of Government ........................................ 21
Health Insurance Institute Posts Surplus for First Six Months ............................................ 21
Pension Purse Stability Not Jeopardised, Says ZPIZ Head ................................................. 22
Ljubljana Stock Exchange .................................................................................................... 22
Foreign Exchange ................................................................................................................. 23
BRANCH INFORMATION .................................................................................................... 24
Inflation Target Not Jeopardised by Oil Prices .................................................................... 24
Power Consumption up 2.7% in the First Half of 2005 ....................................................... 24
Finance Ministry Ready to Consider Farmers' Arguments on Taxes................................... 24
Official: Slovenian Tourism Will Grow Faster than Economy............................................ 25
COMPANIES ........................................................................................................................... 27
Government Endorses Creation of New Business Promotion Agency ................................ 27
Petrol CEO Sells almost All of His Shares .......................................................................... 27
Port Operator Gets European Excellence Award ................................................................. 27
Adria Airways Boosts Passenger Numbers .......................................................................... 28
Mercator Supervisors Endorse Capital Injection ................................................................. 28
Slovenian-Owned Spa in Croatia Opens New Water Planet ................................................ 29
Austria's Heraklith Offers EUR 33 per Termo Share ........................................................... 29
Merkur Offloads Stake in Sava ............................................................................................ 30
Slovenian Steel Group Gets New Supervisory Board .......................................................... 30
Business Promotion Agency to Improve Coordination........................................................ 31
Adria to Take Immediate Measures to Counter Negative Trends ........................................ 31
Takeover Bid for Autocommerce Successful ....................................................................... 31
Pristop-Digitel Share Swap Creates Regional PR Giant ...................................................... 32
SLOVENIA IN BRIEF ............................................................................................................ 33
Drama Alamut to Premiere at Salzburg Festival .................................................................. 33
Referendum on Public Broadcaster Bill to be Held in September ....................................... 33
Government Endorses Signing of Convention against Nuclear Terrorism .......................... 33
Balearics Collecting Money for ITF .................................................................................... 33
Drnovsek Offers Condolences to Mubarak .......................................................................... 33
2
HEADLINES
List of Most Widely Read Periodicals Remains Unchanged
TV guide Vikend, which comes out as a supplement of broadsheet Delo and tabloid Slovenske
novice, remains the most widely read Slovenian periodical, a survey has shown
TV guide Vikend, which comes out as a supplement of broadsheet Delo and tabloid
Slovenske novice, remains the most widely read Slovenian periodical, a survey has shown.
The national readership survey, commissioned by the Advertising Chamber, also showed that
Slovenske novice is the most popular daily, while Nedeljski dnevnik, the Sunday edition of
Dnevnik, tops the list of weeklies.
Andraz Zorko of company Cati, which conducted the survey, said the results showed no
significant changes, with readership numbers stabilising after a turbulent transition period.
The figures for the top 25 most read periodicals in the first half of this year remain unchanged
compared to the period before.
However, the first ten periodicals in this period contain free weekly Zurnal and Delo's
Saturday's supplement Sobotna priloga, while financial monthly Druzinski delnicar fell from
9th to 13th place and yellow weekly Lady went down from 10th to 11th. Zurnal has also
marked the highest increase in readership during the last two half-year periods.
There are three new arrivals on the list of most widely read periodicals: monthly health
magazine Zdravje, children's magazine Ciciban and women's magazine Nika, which is also
the periodical that made most progress on the scale, moving up eleven places.
The survey also examined the popularity of radio broadcasters, showing the growing
popularity of the channels based in Eastern Slovenia. However, the most popular remain Val
202 and the A1 channel of the national radio Radio Slovenija.
Expensive Slovenian Yacht Sets Sail
Shipman 63, which has been nominated for European Boat of the Year 2005, is an upgraded
version of the prestigious Shipman 50, the first serial production boat made of carbon fibres
The Slovenian company Seaway, owner of the Scandinavian boat trade mark Shipman,
launched its sailing yacht Shipman 63 in the Portoroz marina on Tuesday, 19 July. "This is
one of the greatest technological achievements for Slovenia," Science and Technology
Minister Jure Zupan commented for STA.
Shipman 63, which has been nominated for European Boat of the Year 2005, is an upgraded
version of the prestigious Shipman 50, the first serial production boat made of carbon fibres.
Shipman 50 became European Boat of the Year in 2003.
The boat development company Seaway, yacht designer Japec Jakopin and his team of
internationally acclaimed experts have invested some 12,000 hours into the construction of
Shipman 63. They are very proud of their product, the daily Dnevnik reported on Wednesday,
20 July.
The most expensive yacht (EUR 1.3m) with the label "made in Slovenia" is not designed for
regattas, but for fast cruises, the daily said. It is suitable for demanding yachtpersons who
want to have both style and comfort.
Among other features, the boat's sailing and navigability potential for shore cruising as well as
cross-ocean voyages have been perfected, according to Dnevnik. In addition to carbon fibre
technology and epoxide pitch, the almost 20-metre boat's novelty is that it can be steered by a
single person.
3
Jakopin, one of the Seaway owners, told Dnevnik the company expected to sell five Shipmans
63 per year. The first one has already been sold to Hong Kong, he told the daily, and added it
was little known that most yachts in the world were designed by Slovenian engineers.
The boat was christened by track athlete Marlene Ottey, who at first had difficulties breaking
the champagne bottle. "There's something wrong with this bottle," Ottey complained,
admitting she has never done anything like this before, according to Dnevnik.
While Ottey was honoured to become the "godmother" of the new yacht, the first person to
test it will be the French legend of trans-ocean solo sailing and distinguished yacht expert
Michel Desjoyeaux.
Desjoyeaux was also on the development team, mostly in charge of sailing manoeuvres and
intuitive navigation of the boat, according to Seaway.
Minister Zupan, who was the speaker of honour at the yacht launch, stressed that Shipman 63
was a Slovenian product, the price and quality of which place it among world top-level
yachts.
Government Reform Committee to Tackle Taxes First
The first project of the newly formed government committee for reforms will be to simplify the
tax code
The first project of the newly formed government committee for reforms will be to simplify
the tax code, Joze P. Damijan, the economist who was put in charge of the reform committee,
told the daily Dnevnik on Saturday. 23 July.
According to him, the time frame for reforms is clear: most of them must be implemented on
1 January 2007, so legislation must be drawn up by the first half of next year to be signed into
law by the end of 2006.
In addition to taxes, Damijan wants the reform package to include social transfers, health,
pension and higher education. These too would be implemented in 2007.
Moreover, he would like to set a few major projects. "I believe it would be good if about 80%
of the EUR 3.5bn in European funds that we are to get until 2013 is earmarked for five to
eight major projects."
Damijan believes investments should be made in the gaming industry, while a major car
maker should be brought to Maribor or Prekmurje in the east of the country.
The third key project would be support for technologically intensive companies through a
technology agency and support for spin-off incubators at universities.
The reform committee will also draft privatisation programmes for companies such as the
national telco Telekom Slovenije, insurer Zavarovalnica Triglav and the banks NLB and
NKBM. Some energy firms must also be privatised, he said.
While some, such as NKBM, need a strong strategic partner, others only need portfolio
investors or fresh capital. Zavarovalnica Triglav, for example, can survive without a strategic
partner, he argued.
Damijan is also adamant that the state-run Restitution Fund (SOD) and Pension Fund
Management (KAD) should become portfolio investors without the ability to install their own
people to supervisory boards.
"The state has to decide which investments it considers as strategic and stay there as a
transparent owner, and withdraw from all others," according to him.
Asked whether in September he will be named minister of a newly established ministry of
development, Damijan said that talks are under way, but nothing is certain yet.
"Although I do not wish to become a minister, I know that strategies cannot be carried out if
there is no minister to explicitly coordinate implementation."
4
Yet "if they don't let us work, I will resign," said Damijan. "I have no problem with that. I
don't want to be a minister; I just want to carry out a project so that Slovenia remains a social
yet more competitive country."
Asked to comment on the resignation of Mico Mrkaic, the chair of the government's strategic
council for economic development, Damijan, who is also a member of the council, said that
Mrkaic left too soon.
"I am confident that the members would be able to convince him in a joint conversation how
it is worth to stay on and influence the course of reform, more so than ever before," he
explained.
5
INTERNATIONAL COOPERATION
Speaker Debates Ways to Boost Ties with Austria Styria Province
Speaker of Parliament France Cukjati has highlighted entrepreneurship and technology as
areas offering considerable potential to boost ties between Slovenia and the Austrian
province of Styria
Speaker of Parliament France Cukjati has highlighted entrepreneurship and technology as
areas offering considerable potential to boost ties between Slovenia and the Austrian province
of Styria.
Cukjati said this as he visited the provincial assembly in Graz on Monday, 18 July at the
invitation of its head Reinhold Purr in what was the first such visit to Styria.
Following the talks with local officials in Graz, Cukjati said cross-border cooperation between
Slovenia and this province was "exemplary", in particular in science.
Quoted by a source in his delegation, Cukjati also hailed cooperation between the universities
in Maribor and Graz, which lie just some 60 kilometres apart.
STA was also told that the issue of the Slovenian ethnic minority in this province was also
brought up during the talks.
The minority provides a further opportunity to improve cooperation between Styria and
Slovenia, Cukjati was quoted as saying. He underscored, however, the need to build trust on
both sides.
Officials from both sides noted that not all conditions for better economic cooperation had
been met. Austrian officials said one of the impediments was that Slovenia did not have a
regional level between the state and municipality yet.
Rupel Urges Prompt Launch of Accession Talks with Croatia
"Croatia is our most favourite candidate, and we hope that negotiations with it start as soon
as possible," Rupel said, mentioning September or early October as suitable date for the
launch of talks
Slovenian FM Dimitrij Rupel, who attended a session of the EU General Affairs and External
Relations Council in Brussels on Monday, 18 July, has urged a prompt start of accession
negotiations with Croatia.
"Croatia is our most favourite candidate, and we hope that negotiations with it start as soon as
possible," Rupel said, mentioning September or early October as suitable date for the launch
of talks.
"Just like the representatives of Austria, Slovakia and Hungary, I stressed a commitment to
further enlargement. Enlargement is an element of stability, particularly in the Western
Balkans," Rupel told the press.
The Slovenian foreign minister added that Croatia, which he said was the best prepared EU
candidate, should be "the first stop on the road of enlargement" leading towards the Western
Balkans.
"It will be easier for Slovenia to discuss the current issues with Croatia within the EU. This
has always been our policy and belief," the minister stressed.
Asked whether Turkey, which is set to begin accession talks on 3 October, can start
negotiations before Croatia, Rupel replied that "it depends on several technical and political
issues."
"One of them is a negotiating framework - Croatia has it while Turkey does not. On the other
hand, Turkey has a date while Croatia does not. We are in a paradox situation," Rupel
believes.
6
A the session the minister also backed a more thorough discussion on the EU enlargement
process to be conducted at an informal session of foreign ministers in Britain on 1 and 2
September.
The EU should be talking about its main problem - enlargement, Rupel believes, for this is of
great importance to the EU's future and fate. Especially after the French and Dutch said "no"
to the EU constitution, he added.
"This is not only about Croatia, there is a whole series of issues we have to face," Rupel is
convinced. He also stressed prompt integration of SE Europe, otherwise, instability could
settle in the region.
Slovenia Wants Trade Talks to Succeed in Hong Kong
The WTO conference in Hong Kong in December will try to reach agreement on the
liberalisation of trade in services and agriculture products, and access to non-agriculture
markets, which would pave the way for talks on customs duties
Slovenia wants the latest round of talks on the liberalisation of world trade to wrap up
successfully, with an agreement at the World Trade Organisation (WTO) ministerial in Hong
Kong, Economics Minister Andrej Vizjak said as he came out of an informal dinner on
Monday, 18 July with EU ministers in charge of trade.
According to him, a balanced approach is needed in all three areas - agriculture, industry and
services - although Slovenia's greatest interests lie with industry and services.
Vizjak said that European Trade Commissioner Peter Mandelson was upbeat about the
outcome, especially if one considers the complexity of the Doha round of trade talks.
The WTO conference in Hong Kong in December will try to reach agreement on the
liberalisation of trade in services and agriculture products, and access to non-agriculture
markets, which would pave the way for talks on customs duties.
The latest round of trade talks started in Doha in 2001.
Irish and Hungarian Ambassadors Pay Farewell Visit to Rupel
Topical EU-related issues and the situation of the Slovenian minority in Hungary topped the
agenda
Foreign Minister Dimitrij Rupel received Gary Ansbro and Gabor Bagi, the outgoing
ambassadors of Ireland and Hungary, on Tuesday, 19 July. Topical EU-related issues and the
situation of the Slovenian minority in Hungary topped the agenda, the Foreign Ministry said.
FM Rupel labelled the relations between Slovenia and Ireland good and dynamic in different
areas, which Ansbro's work has also contributed to, according to Rupel.
Slovenia is following the example of Ireland in preparing to preside over the EU in 2008, and
in using EU structural and cohesion funds, FM Rupel explained. Ansbro and Rupel also
discussed the future of the EU and further enlargement, focusing on the Western Balkans.
Ansbro expressed his regret that he was leaving Slovenia, saying that he is interested in future
development of the Slovenian economy, the Foreign Ministry also said.
FM Rupel and ambassador Bagi agreed that the two countries are good neighbours. However,
they believe there is room for improvement, in particular in tackling the problems regarding
the protection of the Slovenian minority in Hungary.
Rupel also thanked the ambassadors for their merits in strengthening relations between their
countries and Slovenia. He also expressed hope for the cooperation with their successors to be
equally successful, the ministry's press release also reads.
President Drnovsek Receives Outgoing Luxembourg Ambassador
The pair stressed that the relations between Slovenia and Luxembourg are excellent, and that
there are no open issues between the two countries
7
President Janez Drnovsek received the outgoing Luxembourg Ambassador Paul Faber. The
pair stressed that the relations between Slovenia and Luxembourg are excellent, and that there
are no open issues between the two countries, president's office said on Tuesday, 19 July.
President Drnovsek said he was pleased with the Luxembourg "yes" to the EU constitution.
Although this has stopped the series of negative referendum outcomes, there is still much to
be done to endorse the document, he added.
The president believes Luxembourg presided over the EU at a time when the Union was
facing numerous challenges. He also pointed out the important role of Luxembourg Prime
Minister Jean-Claude Juncker during the country's EU presidency in the first half of 2005.
Furthermore, President Drnovsek was convinced that Slovenia gained important experiences
from the Luxembourg EU presidency.
He also thanked the ambassador for his contribution to strengthening bilateral relations
between the two countries, and wished him success in the future, the president's office also
said.
Slovenia and Botswana Establish Diplomatic Relations
Slovenian diplomats will be meeting their counterparts from Botswana mainly in New York,
as is the case with the majority of other African countries
Slovenian Ambassador at the UN Roman Kirn and his Botswana counterpart Alfred Uyapo
Majaye Dube exchanged the declarations on the establishment of diplomatic relations
between the two countries on Wednesday, 20 July in New York.
Slovenian diplomats will be meeting their counterparts from Botswana mainly in New York,
as is the case with the majority of other African countries.
The Slovenian and Botswana ambassadors also took this opportunity to ask UN Secretary
General Kofi Annan to notify all UN members that Slovenia and Botswana had established
diplomatic relations.
First Meeting of Group for Trieste-Divaca Rail Section Successful
The Slovenian-Italian working group for the construction of a rail section between VeniceRonchi south-Trieste-Divaca held the first meeting
The Slovenian-Italian working group for the construction of a rail section between VeniceRonchi south-Trieste-Divaca held the first meeting on Thursday, 21 July. Talks were
successful, according to Jelka Sinkovec Funduk of the Transport Ministry.
"We agreed that in principle Slovenia agrees to participation in the Interreg IIIA project...but
only if there is a uniform methodology on the feasibility study for the Trieste-Divaca section
and the scope of the structure," Funduk, the acting head of the ministry's rail directorate, told
STA.
The Interreg project is worth EUR 1.9m, with Interreg funding worth EUR 1.3m, according to
Funduk, who added that "the question of parity was highlighted here as well."
The Italian side presented a draft agreement, which defines participation in the feasibility
studies, the commitments of both governments regarding EU money and other issues.
"Having quickly reviewed it, I can say that it seems fine," she explained.
"The ministry's position is that we should start on new, healthy foundations. We will defend
our interests in a different way that we had at previous talks. We want to carry out geological
and ecological surveys ourselves on our territory, and show what our interest is," she said.
The Trieste-Divaca section makes part of Corridor V of the trans-European transport network
(TEN-T), which runs from Lyon through Trieste, Slovenia and on to Budapest and the
Ukrainian border.
Italy and Slovenia have long been at odds about the course of the rail section.
8
Koprol Tells Ukraine EU Door Is Open
For every country that wants to join the EU, it is paramount that it meets all membership
criteria, State Secretary Marcel Koprol told a conference on Ukraine's steps towards the EU
For every country that wants to join the EU, it is paramount that it meets all membership
criteria, State Secretary Marcel Koprol told a conference on Ukraine's steps towards the EU.
"The door to the EU is open for Ukraine, but the whole country has to decide for itself
whether the EU really is its future," he told STA.
"Despite some occasional hold-ups, the idea of further European integration is becoming a
reality," Koprol, the head of the Government European Affairs Office (SVEZ) said in his
address to the conference in Odesa.
According to Koprol, European nations are aware that each round of enlargement increases
stability, peace and prosperity among its members and neighbouring countries.
A Europe of integration is therefore a driving force that has beneficial effects on the thinking
of its leading politicians and helps change the political systems of countries which have been
deprived of many privileges otherwise accessible to nations of Western Europe.
Koprol argued that "further enlargement will prevent the creation of relations in Europe that
might be based on a two-tier Europe, not differentiated on ideological grounds but on
economic differences, restrictions in relation to the movement of people, capital, technology."
An enlarged Europe should become a community in which its creators realise historical,
economic and political integrations, he said, noting that "the remnants of a two-tier Europe
could thus be erased and the enlarged Europe of our century will actually unify the
population, nations and countries of our continent."
Koprol was one of the keynote speakers at the two-day conference, which opened on Friday,
22 July alongside members of the European Parliament Michel Rocard and Elmar Brok. The
participants asked several questions about concrete dates, which Koprol said were impossible
to determine.
Slovenian, Croatian FMs Hold Working Meeting
They discussed the implementation of the statement on avoiding incidents, the agreement on
border transport and cooperation (SOPS) and Croatia's EU accession
Foreign Minister Dimitrij Rupel and his Croatian counterpart Kolinda Grabar-Kitarovic held a
working meeting on Saturday, 23 July. They discussed the implementation of the statement on
avoiding incidents, the agreement on border transport and cooperation (SOPS) and Croatia's
EU accession, the Foreign Ministry said.
They stressed, according to the ministry's press release, that incidents will continue to be
resolved in mutual agreement, while efforts to prevent incident situations will be coordinated.
The pair furthermore underlined the responsibility of local authorities in the enactment of the
incident-avoidance statement that the governments signed on 10 June at Brijuni.
It was moreover agreed that honouring the SOPS is one of the chief components of the
statement of avoiding incidents, the press release reads.
Croatia said it would submit remarks to European Commission regulations regarding fishing
under the SOPS, in order to speed up their enactment. The two sides are also considering
setting up a joint fisheries inspection.
Rupel and Grabar-Kitarovic are said to have talked about "connecting projects" at Hotiza in
the northeast of Slovenia, where a bridge over the Mura is to be built soon.
They welcomed the work of both transport ministers and said the bridge should be a
"comprehensive and European solution" that will satisfy the needs of local communities on
both sides of the border.
9
Rupel informed his counterpart about Slovenia's efforts to keep EU enlargement high on the
EU agenda. Slovenia wants Croatia to start membership negotiations soon, but this requires
the consensus of all member states, he was quoted as saying.
The state secretaries at both ministries, Slovenia's Bozo Cerar and Croatia's Hido Biscevic,
were also present at the meeting at Otocec, along with both ambassadors.
Koprol Urges Ukraine to Undertake Reform
Marcel Koprol, the head of the Government Office for European Affairs attended a
conference which examined Ukraine's steps towards the Union
Ukraine must get down to reform as soon as possible if it wants to forge closer ties with the
EU, the head of the Government Office for European Affairs (SVEZ) said at the end of a
conference which examined Ukraine's steps towards the Union.
According to Marcel Koprol, the participants of the conference urged authorities in Ukraine to
liberalise the capital market and adopt laws on the sale of land to foreigners, as these are the
underlying conditions for an increase in investments.
Koprol moreover said the participants agreed that Ukraine should be more avid in honouring
the commitments of the cooperation agreement with the EU. Ukraine must implement reforms
for its own sake, not merely to get EU funding, he thought.
Speaking about the possibility of Ukraine joining the EU, Koprol said that things have
changed fundamentally lately, so the participants of the conference did not give the country
and false hopes about impending membership. According to Koprol, Ukraine cannot hope to
join the Union in the next 15 or 20 years.
10
EUROPEAN UNION
Slovenian Sugar-Beet Growers Join Protest in Brussels
According to Franc Orban of the Association of Slovenian Sugar-Beet Producers, Slovenian
producers have already been affected by the EU allowing sugar imports from Balkan
countries
Slovenian sugar-beet growers have joined their peers from the other 20 sugar-producing EU
countries for a protest rally in Brussels to voice their opposition to the EU sugar reform.
"We are absolutely against it as the reform would destroy sugar-beet production in Slovenia,"
Franc Orban of the Association of Slovenian Sugar-Beet Producers quoted the reason why he
turned up at the protest on Monday, 18 July.
"Sugar beet is grown in north-eastern Slovenia, the under-developed region. Calculations
show that the region would lose SIT 7bn (EUR 29.22m) if sugar beet was no longer grown.
This would affect transport, farmers, workers, and the pesticide industry."
"If sugar beet is no longer sown, we can see no alternative," Orban said. According to him, as
many as 2,300 farmers have contracts to produce sugar beet alone. He also believes that
measures anticipated to cushion the effects of the reform are insufficient.
"The reform will benefit multinationals most; calculations show they will earn as much as 2.9
billion dollars. It is in their interests to destroy the European sugar industry so that they can
import sugar," Orban said.
According to him, Slovenian producers have already been affected by the EU allowing sugar
imports from Balkan countries. "Slovenia is the first neighbour of Croatia, from where sugar
is transported, which is why the price of sugar has fallen substantially."
Orban headed a six-member delegation taking part in the protest. Organisers estimate the rally
attracted between 5,000 and 6,000 sugar-beet producers.
Slovenia Successful in Implementing EU Law
Slovenia is one of the most successful member states in terms of speedy implementation of EU
regulations, according to the European Commission's annual report on the transposition of
EU law into domestic bodies of law
Slovenia is one of the most successful member states in terms of speedy implementation of
EU regulations, according to the European Commission's annual report on the transposition of
EU law into domestic bodies of law.
With a backlog of only 0.7%, Slovenia emerged on top along with Lithuania and Hungary,
says the report, which was published on Monday, 18 July
Of the 1,604 directives on the internal market, Slovenia has failed to transpose 12. Yet the
backlog on financial directives is bigger, 11%, which places the country in the middle of the
rankings.
Until 1 May this year, four procedures were launched against Slovenia for its failure to
implement its commitments, the report says.
The average backlog across the 25 members is 1.9%, which is a significant improvement over
the year before when it stood at 7.1%. New member states have on average been more
successful than the old ones.
Ministers Says Slovenia against Proposed Sugar Reform
Agriculture Minister Marija Lukacic said Slovenia was against the reform as put forward by
the European Commission as it would probably mean an end to sugar-beet production in the
country and the shutdown of its only sugar plant in Ormoz
11
Arriving in Brussels for EU sugar reform talks, Agriculture Minister Marija Lukacic said
Slovenia was against the reform as put forward by the European Commission as it would
probably mean an end to sugar-beet production in the country and the shutdown of its only
sugar plant in Ormoz.
"Slovenia would support a more moderate and gradual reform that would be implemented by
the 2014/2015 season, until when sugar-beet producers could be getting as normal income as
possible," Lukacic said prior to talks on Monday, 18 July.
She conceded that the reform was required, but added that it would have to include
mechanisms that would guarantee producers long-term conditions for work by means of direct
payments that would cover the loss of income due to lower prices.
"Our objective is to preserve sugar-beet production and the Ormoz plant," the minister said
before joining her counterparts from the EU for a meeting at which sugar reform talks are to
be launched.
Parliamentarians Want EU Treaty Ratification to Continue
Representatives of parliamentary EU affairs bodies, among them Slovenia's, have urged for
the endorsement of the EU constitution to resume after the document was rejected in
referenda in France and the Netherlands
Representatives of parliamentary EU affairs bodies, among them Slovenia's, have urged for
the endorsement of the EU constitution to resume after the document was rejected in
referenda in France and the Netherlands.
"There was no objection to further ratification," Tomaz Stebe, a member of the EU affairs
committee of the Slovenian parliament, told STA at the sidelines of the meeting in London on
Monday, 18 July.
The Conference of Community and European Affairs Committees of Parliaments of the
European Union (COSAC) also agreed that following the double "no" the EU would have to
adopt measures to bring its institutions closer to European citizens.
In his address, Stebe said the reasons prompting European integration in the first place had
been forgotten, such as security, peace and economic progress. He noted that the Union's
excessive bureaucratization was one of the reasons for people's aversion to the constitution.
The opposition against the ratification of the EU treaty is also related to the failed EU budget
talks at the June summit. Stebe said Slovenia therefore expected the British presidency to
make the conclusion of talks one of its priorities.
The debate of the parliamentarian aspects of the EU constitution was set to resume in the
afternoon, when deputies were to be joined by European Commissioner Margot Wallstroem,
who is in charge of institutional relations and communication strategy.
COSAC also discussed the status of special guests to the conference, i.e. countries who want
close ties with this forum but are not EU members.
"We believe COSAC, or Europe, should not oppose anyone wanting to take part as an
observer, regardless of their status in relations with the EU," Stebe said.
COSAC is a consultative body of parliamentary EU affairs bodies from 25 EU member states
and representatives of the European Parliament. It was set up in Paris on 16 November 1989.
Loyola de Palacio Put in Charge of Slovenian Transport Projects
The European Commission appointed six European coordinators for the trans-European
transport network (TEN-T)
The European Commission on Wednesday, 20 July appointed six European coordinators for
the trans-European transport network (TEN-T). Projects on Corridor V, which crosses
Slovenia, will be coordinated by Loyola de Palacio, the former transport commissioner.
12
The Spanish official will be focussing on seven railway sections on the route connecting
Lyon-Trieste-Divaca/Koper-Divaca-Ljubljana-Budapest-Ukraininan border.
Three of these concern Slovenia, i.e. Venezia-Ronchi south-Trieste-Divaca; Koper-DivacaLjubljana and Ljubljana-Budapest. The target date for the completion of the three sections is
2015, according to the Commission's documents.
The coordinators were appointed as part of measures aimed at closer political and technical
coordination in a bid to speed up the completion of the TEN-T.
The total of 30 priority projects are worth EUR 600bn, with the EU planning to invest EUR
225bn. They are to be completed by 2020.
The Commission quoted Jacques Barrot, the commissioner responsible for transport, as saying
that "the coordinators will facilitate the dialogue between the member states concerned so that
work and financing plans are better synchronised".
The six coordinators were nominated after consultation with the European Parliament and
with the agreement of the member states concerned for an initial (renewable) period of four
years.
The coordinators will draw up annual reports on progress in the implementation of the
projects, developments which might affect the characteristics of the projects and any obstacles
which could result in significant delays regarding project completion dates.
Slovenia to Remain One Cohesion Region until the End of 2005
The parliament will not fast-track the bill on promotion of balanced regional development
Slovenia should remain one cohesion region until this represents a better option in
negotiations on the 2007-2013 budget framework, agreed top party officials at a meeting with
PM Janez Jansa on Wednesday, 20 July.
As a result, the parliament will not fast-track the bill on promotion of balanced regional
development (which envisages the division into two regions). Instead, the bill will be put
forward to parliament in September, Jansa explained after the meeting.
This decision was made because statistical data which will push Slovenia above the eligibility
threshold for the top-level cohesion funds, which lies at 75% of the average GDP in the 25member bloc, will not be used for budget allocation calculations before the end of the year.
Jansa explained that under the current statistical data, Slovenia will not exceed the 75% limit
until the end of the year. It is therefore wise not to divide the country at the NUTS 2 level,
since having one region under these circumstances would mean more budget funds.
"We'll see what comes later, when new data comes and we have more information about the
dynamics of negotiations on the next financial perspective," Jansa stressed. In any case, the
division to multiple cohesion regions is still an option, but in the best case scenario that would
not be necessary before 2014.
"The participants at the meeting sincerely hope to have enough time to carry out an internal
political division before that...and on that basis form cohesion regions," Jansa said, hopeful
that the current budget talks would wrap up as soon as possible.
Ivan Zagar, the minister of local government and regional policy, agreed with Jansa. "The
facts remain the same, only the time pressure has eased. Slovenia meets the criteria for a
division to two regions, but if we wanted to create three we would have to establish provinces
first," he said.
The government is carrying out procedures for an internal political division into provinces. He
said a package of relevant laws will be drawn up by the end of the year, which might involve
changes to the constitution.
13
Loyola de Palacio Promises to Talk to All Parties Involved
The former Spanish transport commissioner was named coordinator as one of the six
coordinators tasked with speeding up railway projects on the trans-European transport
network
Loyola de Palacio, the newly appointed EU coordinator for Corridor V of the trans-European
transport network (TEN-T) which runs through Slovenia, has said she will tackle the task of
coordination by "talking to everyone first".
Asked by STA how she would coordinate the construction of two main railway sections,
Venezia-Ronchi south-Trieste-Divaca and Koper-Divaca-Ljubljana, which must be finished
by 2015, she said she would meet government representatives from both Italy and Slovenia,
whereby the discussion will also touch on the Trieste and Koper ports.
The former Spanish transport commissioner was named coordinator on Wednesday, 20 July
as one of the six coordinators tasked with speeding up railway projects on the trans-European
transport network.
In line with the Commission's decision, the task of the coordinators will be consulting and
promoting dialogue among the member states, so as to synchronise the work and financial
plans. Moreover, they are to establish contacts with the local authorities and transport system
managers.
The coordinators will draw up annual progress reports including developments which might
affect the projects and any obstacles which could result in significant delays regarding
completion dates.
14
LEGISLATION
Government Adopts Positions for Social Agreement
The government has adopted draft standpoints for negotiations on the 2006-2009 social
agreement and a resolution on the 2006-2010 national consumer protection programme
The government has adopted draft standpoints for negotiations on the 2006-2009 social
agreement and a resolution on the 2006-2010 national consumer protection programme.
The social agreement is aimed at securing stable economic conditions, greater competitive
edge of the Slovenian economy, balanced social development and social security, according
to a press release issued after the cabinet session on Thursday, 21 July.
The government will sent the standpoints to social partners, i.e. trade unions and employers,
and invite them to submit their proposals. Negotiations are expected to start in the second half
of September.
According to the press release, the positions were drafted on the basis of the currently valid
social agreement, coalition agreement and the country's development strategy. The current
social agreement is effective until the end of the year.
The resolution on consumer protection was designed with a view to ensuring consumers'
health, safety, rights and economic interests.
Based on the consumer protection act, the document seeks to integrate consumer protection
into government policies affecting consumers' interests and position on the market.
"This is the project of the government as a whole, which is why these policies must be
integrated in all government institutions in charge," Economics Minister Andrej Vizjak told
the press after the government session.
According to him, the resolution anticipates gradual institutionalisation of consumer
organisations, effective implementation of consumer legislation, effective inspection of safety
of products on the market and protection of consumer's economic interests.
The document also envisages greater cooperation with NGOs, alternative settlement of
consumer disputes and a European consumer centre. It prioritises the safety of products and
services, food, health care, standardisation, financial services, sustainable consumption and
housing.
Government Moves to Ease Catering Regulations and Fight Abuse
The provisions of the act will be extended to catering operations undertaken by not-for-profit
clubs and associations, which have so far been excluded, Economics Minister Andrej Vizjak
told the press after the government session
The government has amended the act on catering in a move designed to ease certain
employment restrictions and fight abuse by non-profit clubs and associations which operate
catering facilities.
The provisions of the act will be extended to catering operations undertaken by not-for-profit
clubs and associations, which have so far been excluded, Economics Minister Andrej Vizjak
told the press after the government session on Thursday, 21 July.
According to him, the associations have often abused the current system to avoid having to
meet the standards that regular catering establishments have to.
In line with the amendments, clubs and associations will be allowed to have catering
operations but only under the same conditions as other catering establishments.
Vizjak pointed out, however, that the amendments in no way affect mountain hostels that are
also operated by associations; they are dealt with in a special provision of the law.
15
The second major novelty is that people working in catering will no longer have to meet
minimum education criteria.
According to the ministry, this will liberate free enterprise: individuals who are willing to take
business risks and invest their own money should not be restricted by the state with
unnecessary conditions.
Vizjak believes that this provision will eliminate conditions that have obstructed employment
in catering and provided fertile ground for moonlighting. In addition, he said, the regulation of
professions by the state is in stark opposition with guidelines for the free movement of labour.
National Council Vetoes Act on Drivers' Working Time
The employers were adamant that Slovenian drivers will be worse off than their EU peers,
Jozko Cuk, the president of the Chamber of Commerce and Industry of Slovenia (CCIS),
explained on behalf of the proponents
The upper chamber of parliament on Friday, 22 July vetoed the act on working time of mobile
workers. The National Assembly, which passed it on 15 July, will have to take a re-vote.
The veto was proposed by the interest group of employers at the National Council, convinced
that the conditions contained in the law are stricter than those set out in the relevant EU
legislation.
The employers were adamant that Slovenian drivers will be worse off than their EU peers,
Jozko Cuk, the president of the Chamber of Commerce and Industry of Slovenia (CCIS),
explained on behalf of the proponents.
According to him, drivers would be allowed to clock in a maximum of 1,040 hours in six
months, while the EU directive sets the maximum at 1,248 hours.
The employers also point to several instances of conflict with the employment act.
The government's explanation that the new act is a "lex specialis" for the drivers, so it is not in
conflict with the employment act, failed to persuade the councillors.
Due to the veto the National Assembly must take a re-vote and confirm the act with an
absolute majority of 46 votes; the act was passed the first time in a 57:0 vote.
16
STATISTICS/FORECASTS
May Unemployment at 9.9%
8.4% of men and 11.8% of women were registered as jobless
Slovenia's registered unemployment rate in May stood at 9.9%, down 0.2 percentage points
on April, while the ILO standards-based unemployment rate was at 6.9% in the first quarter of
2005, according to the latest available data released by the Statistics Office.
As many as 89,835 unemployed persons were registered in May. This is 1.9% less than in
April and 1.8% less than in May 2004.
The Statistics Office data also shows that 8.4% of men and 11.8% of women were registered
as jobless. The rate for the first five months of this year averaged 10.2%.
Slovenia's labour force numbered 904,601 in May. As many as 814,766 among these were
employed, up 0.3% on April and up 0.7% on May 2004.
Slovenians Most Avid Supporters of EU Enlargement, Survey Shows
Slovenia is the biggest supporter of the EU enlargement among EU member states, with 79%
of the population backing enlargement
Slovenia is the biggest supporter of the EU enlargement among EU member states, with 79%
of the population backing enlargement according to the Eurobarometer survey. Further rounds
of enlargement are backed overall by 50% of EU citizens, while 38% oppose it.
New EU member states are in general more supportive of further EU enlargement, shows the
survey, which was released on Monday, 18 July. Eight new members ranked behind Slovenia,
while the old member states occupy the bottom of the scale.
France barely came in before Austria with 32%, lagging behind Luxembourg and Germany
with 33% each. In Finland and Netherlands, the support for enlargement is at 45%, while
Great Britain and Denmark gathered 48% support according to the survey conducted by the
European Commission.
In general, all member states are most sceptical towards Turkey's entry, with 35% citizens on
average supporting it and 52% opposing it. In the EU 15 support is lower, namely 32%, while
only 10% of the Austrian population backs Turkey's accession, compared to an average of
48% in new member states.
The entire EU is most supportive of Switzerland and Norway's entry with 78% backing it,
according to the survey. Croatia's entry is backed by 52%, which is more than Bulgaria and
Romania with 50% and 45% respectively. Following are Ukraine with 45%, Macedonia with
43%, Serbia Montenegro with 40%, and Albania with 36%.
The Eurobarometer survey, conducted among 29,328 respondents in the 25 EU member states
in May and June, also examined opinions on the EU constitution, the satisfaction of the
citizens with EU membership, their trust in EU institutions and their position on the Union's
budget.
On average, 61% of the population backs the EU constitution, and only 23% oppose it.
However, the position differs a lot in individual states. Slovenia came in second after
Hungary, with 76%.
According to Eurobarometer, 54% are still satisfied with their country's EU membership,
where Slovenians rank among the less satisfied with 49%.
The survey shows that the citizen's trust in the EU institutions has dwindled: only 46%
compared to last year's 52% still trust the European Commission, while the European
Parliament was backed by 52% compared to 57% last year.
17
The support for EU external policy went down to 67%, while the euro is now backed only by
59%. However, Slovenians still stand firmly behind it with 83%.
According to 31% of the respondents, most EU budget funds are used for administration,
while only 17% said agricultural policy was the focus of attention, even though almost half of
the money is spent on it.
Slovenians are among those sharing that opinion, with only 22% saying agricultural policy
was the biggest spender and 36% harbouring the same opinion about the administration,
according to the survey.
Foreign Debt Tops EUR 16.53bn in April
Slovenia's foreign exchange reserves totalled EUR 7.52bn at the end of April
Slovenia's foreign exchange reserves totalled EUR 7.52bn at the end of April, falling EUR
9bn short of the overall foreign debt. This amounted to EUR 16.53bn, according to the latest
issue of the Bank of Slovenia Bulletin.
The bulk of foreign exchange reserves in April belonged to the central bank (EUR 6.42bn),
while the rest were the reserves of commercial banks.
Most of the overall foreign debt was in long-term debt (EUR 12.16bn). Short-term debt
amounted to EUR 3.26bn and liabilities to affiliated enterprises to EUR 1.11bn.
While private debt totalled EUR 12.53bn, public and publicly-guaranteed debt was just shy of
EUR 4bn.
Inflation Curbing Has Lost Steam, Analysts Warn
The volume of wages soared in April and dropped by 1.7% in May
Economic analysts are warning that efforts to curb inflation are losing steam, while wages are
growing too fast, jeopardising economic growth and price stability.
The volume of wages soared in April and dropped by 1.7% in May, yet the decrease was
largely due to a 2.5% drop in the corporate sector, the Economic Institute at the Ljubljana
Law Faculty notes in its latest issue of Economic Trends.
Wage growth is expected to continue in the long-run, the analysts note, pointing to a 9.6%
year-on-year increase in the volume of wages in the first five months of the year alone.
If this trend continues along with rising prices and GDP growth rates falling short of 3%,
employment and/or growth are in danger, the institute's analysts point out.
On the other hand, consumer spending increased by 4.5% year-on-year in the first four
months of 2005, while export growth continues to outpace import growth, narrowing the trade
gap.
Central Bank Analysts Say Oil Prices Main Generator of Inflation
Prices of refined petroleum products have risen by some 15% in the past 12 months,
generating more than half or 1.1 percentage points to inflation growth (1.9%)
Oil prices have been the most important factor contributing to inflation in Slovenia in the past
year. Prices of refined petroleum products have risen by some 15% in the past 12 months,
generating more than half or 1.1 percentage points to inflation growth (1.9%).
Bank of Slovenia analysts see oil price shocks and the volatility of prices of seasonal products
in the second half of the year as the greatest risk that could lead to a temporary increase in
inflation.
The analysis, published in the latest issue of the Bank of Slovenia Bulletin, also shows that
the main generator of Slovenia's economic growth in the first quarter of this year was exports,
which accounted for one half of the growth (1.3 percentage points).
18
The other components of GDP grew more slowly than in the quarter before, the exception
being general government spending, which rose by 2.9% year-on-year. Gross investment in
fixed assets was down 0.5%, while there was a negative net contribution from stocks.
Household spending in the first quarter recorded solid growth of 2.7%, still down slightly
from last year's average of 3.5%. Slower household spending was also reflected in lower
growth of imports (6.6%).
Manufacturing posted moderate growth in value added (1.1% year-on-year), while it surged in
financial services (11.5%). Industrial output in the first quarter was down 2.6% over the same
period last year, but increased by 3.7% year-on-year in April.
19
FINANCE
Prices of Oil Derivatives Go Up
The prices of all oil derivatives rose due to the continually rising price of oil and oil
derivatives on the global markets
The prices of all oil derivatives rose on Tuesday, 19 July, due to the continually rising price of
oil and oil derivatives on the global markets.
The price of regular unleaded petrol went up by SIT 2.4 (EUR 0.01) to SIT 226.6 (EUR 0.95)
per litre. Premium is SIT 10.8 (EUR 0.05) more expensive, at SIT 240.0 (EUR 1).
Diesel is SIT 1.4 (EUR 0.01) more expensive, at SIT 223.9 (EUR 0.93), although the
government lowered the excise duty to cushion the increase. Heating oil went up SIT 4.6
(EUR 0.02) to SIT 143.6 (EUR 0.6).
According to analysts of oil trader Petrol, the price of regular unleaded petrol increased by
1.51% over the past two weeks.
Diesel was 0.66% dearer, while the price of extra light heating oil went up by 3.43%.
Meanwhile, the US dollar gained 0.87% compared to the tolar in the past fortnight period.
The local oil retailers set the prices of oil derivatives every two weeks in line with the relevant
government regulation, taking into account the prices of oil derivatives and the dollar
exchange rate.
NKBM Shareholders Meeting Approves Dividend of EUR 1.35
Allocating the distributable profit of SIT 1.42m (EUR 5.93m) for 2004, the shareholders
meeting voted to distribute SIT 1bn (EUR 4.17m) for dividends and SIT 416.23m (EUR
1.74m) for reserves
The shareholders of Slovenia's second largest bank, Nova Kreditna banka Maribor (NKBM),
have declared a dividend of SIT 324.5 (EUR 1.35) gross per share and conferred a discharge
to the management and supervisory board.
Allocating the distributable profit of SIT 1.42m (EUR 5.93m) for 2004, the shareholders
meeting on Tuesday, 19 July voted to distribute SIT 1bn (EUR 4.17m) for dividends and SIT
416.23m (EUR 1.74m) for reserves.
According to a press release from NKBM, the meeting was also briefed on the internal audit
report for 2004, the position of the supervisory board, the bank's annual operations report, and
the consolidated annual report of the NKBM group for 2004.
The meeting reviewed a report drawn up by the auditing firm KPMG and a report in which
the supervisory board examined the annual reports of the bank and the group for 2004.
KPMG Slovenija was also named the auditor for 2005.
Government Report Suggests Gradual Increase in State Aid
According to the report, aid amounted to SIT 75.3bn (EUR 314.3m) in 2002, SIT 86.8bn
(EUR 362.3m) in 2003 and SIT 97.6bn (EUR 407.4) last year
A report on state aid in 2002, 2003 and 2004, which was adopted by the government on
Thursday, 21 July, suggests that the amount of state aid has been increasing, a trend running
contrary to EU objectives of smaller and more focused aid packages.
According to the report, aid amounted to SIT 75.3bn (EUR 314.3m) in 2002, SIT 86.8bn
(EUR 362.3m) in 2003 and SIT 97.6bn (EUR 407.4) last year.
Although aid increased in real terms in the past three years, the long-term comparison
expressed as proportion of GDP shows a steady decline - from 2.76% of GDP in 1997 to
1.58% of GDP in 2004.
20
Broken down by category, aid for agriculture and fisheries was the dominant type of aid in the
2002-2004 period, according to the report.
At the same time, aid for transport has been on the increase, in particular due to the 2004 aid
package for the restructuring of the Slovenian Railways.
Compared to other EU members, Slovenia spends a lot on aid: excluding aid for railways, it
amounts to 1.3% of GDP, very close to leader Finland, which spent an average of 1.4% of
GDP in the past three years.
Benchmarked against the EU newcomers, Slovenia occupies the middle ground, the report
suggests, noting that the Czech Republic, Poland and Hungary spend the highest proportion of
GDP on state aid.
For the first time the report includes an efficiency assessment made by the recipients. Aid for
the restructuring of textile, leather and footwear companies, as well as certain types of aid for
the restructuring of troubled companies, have been assessed as inefficient.
Meanwhile, aid for R&D, ecological restructuring of mining facilities, promotion of
renewable energy sources and all programmes promoting culture has been evaluated as very
efficient.
Finance Minister Disagrees with Mrkaic's View of Government
Mrkaic stepped down as the head of the government Strategic Council for Economic
Development on 20 July, quoting the government's failure to plan liberal reforms as the
reason for his move
Finance Minister Andrej Bajuk disagrees with economist Mico Mrkaic's estimate that the
government is not liberal enough. "The government will honour its coalition agreement
commitments. We have the whole term, rather than just six months to do this," Bajuk told the
press on Thursday, 21 July.
Mrkaic stepped down as the head of the government Strategic Council for Economic
Development on 20 July, quoting the government's failure to plan liberal reforms as the
reason for his move.
Mrkaic, who also resigned as a member of the supervisory board of petrol retailer Petrol and
member of the assembly of the state-run Pension Fund Management (KAD), told business
paper Finance that the government was highly unlikely to substantially reduce public
spending.
"This is his personal opinion," Bajuk said. "Everyone, not just people who make such
statements, must be aware that certain things require more time and deliberation, as opposed
to short-term expectations by many."
Health Insurance Institute Posts Surplus for First Six Months
The Health Insurance Institute (ZZZS) had a surplus of SIT 4.66bn (EUR 19.45m) for the first
six months of the year and is on track to meet the projected year-end surplus of SIT 5.5bn
(EUR 23m)
The Health Insurance Institute (ZZZS) had a surplus of SIT 4.66bn (EUR 19.45m) for the first
six months of the year and is on track to meet the projected year-end surplus of SIT 5.5bn
(EUR 23m), according to head of the ZPIZ finance and accounting department Janko Stok.
Yet Stok was quick to point out that the surplus is largely a result of a one-off positive effect
of the changed tax procedure act, which added SIT 6.5bn (EUR 27.1m) to the balance sheet in
January.
In addition, expenditures were below projections, although spending on drugs exceeded plans
by 3.8% and totalled SIT 33.36bn (EUR 139.2m). Spending on drugs is thus projected to
increase by 4% year-on-year by the end of 2005.
21
According to Stok, spending on drugs was boosted by new and expensive prescription drugs
and the flu epidemic in February and March.
To counter the trend, ZZZS director general Borut Miklavcic announced additional efforts in
price negotiations with pharma companies and other suppliers.
On the other hand, expenditure on devices aiding patients were 9% lower than planned at SIT
4.45bn (EUR 18.6m), while those for sick leave were 7.5% below plans at SIT 20.55bn (EUR
85.8m).
Total revenues topped SIT 209bn (EUR 872.4m), with expenditures at SIT 204.5bn (EUR
853.6m).
The results were presented to the press after the session of the ZPIZ management board,
which was pleased with the performance, according to deputy management board president
Slavko Grcar.
Pension Purse Stability Not Jeopardised, Says ZPIZ Head
Marijan Papez, the director general of the Pension and Disability Insurance Institute (ZPIZ)
is not concerned about the possibility that the latest changes to pension legislation might
jeopardise the long-term stability of the pension purse and public finances
Marijan Papez, the director general of the Pension and Disability Insurance Institute (ZPIZ) is
not concerned about the possibility that the latest changes to pension legislation might
jeopardise the long-term stability of the pension purse and public finances.
In the past decade the way pensions are harmonised with wages has changed several times,
which means that this latest change, which was subject to extensive polemics, can be changed
if necessary, he told the daily Vecer on Saturday, 23 July.
According to him, the new system of indexation will increase expenditures on pensions by
SIT 1.3bn (EUR 5.4m) this year. The figure will increase to SIT 8bn (EUR 33.4m) next year
and about SIT 14bn (EUR 58.4m) in 2007.
In additional, the ZPIZ will pay SIT 4.3bn (EUR 17.9m) more this year for the higher holiday
allowance for pensioners, Papez explained.
However, the ZPIZ director does not believe that either pensions or wages will increase
substantially in the coming years: considering that wage and inflation growth are not high,
pensioners cannot count on the high increases that had been common in the past.
Indeed, Papez projects that pensions will continue to drop, as retirement age is increasing and
years of work are valued lower for pension purposes. This means that pensions will drop, but
slower than they would without the latest changes.
Papez believes that the 1999 pension reform is good, and he sees no need to change it. A new
reform could have the opposite effect: creating uncertainty as to pension requirements and
potentially prompting large numbers of people to retire in a short time.
In future, it can be expected that we will retire older and work longer, Papez concluded.
Ljubljana Stock Exchange
The benchmark SBI 20 index closed 1.41% (62.54 points) higher on the week, at 4,507.47
The Ljubljana Stock Exchange (LJSE) was awash with optimism last week, but the upbeat
mood does not signal a full-fledged recovery yet. Last week's push was largely due to retailer
Mercator, which soared on news that it will be allowed to carry out a 20% capital increase to
finance its expansion abroad.
The benchmark SBI 20 index closed 1.41% (62.54 points) higher on the week, at 4,507.47.
But despite the recent return of optimism, it is still 8.09 percent below the 1 January opening.
The investment funds followed suit, albeit at a more measured pace. The PIX investment fund
index added 18.11 points to 4,215.23, with the bond BIO index down 0.12 points at 121.58.
22
In testimony to the absence of a full-fledged rebound, brokers wrapped up only SIT 6.25bn
(EUR 26.1m) worth of deals, with block transactions accounting for 67% of all trading.
Sava, the chemical and tourism group, accounted for nearly one third of all turnover after
hardware retailer Merkur offloaded its entire stake (2.1% of the share capital) in a single deal
worth SIT 1.8bn (EUR 7.5m). Sava remained level at SIT 43,457 (EUR 181.40).
Other busy shares include drug maker Krka, which added 1.2% to SIT 79,047 (EUR 329.96),
household appliance maker Gorenje, which soared 3.39% to SIT 5,518 (EUR 23.03) and
Mercator, which was up 5.2% to SIT 37,322 (EUR 155.79).
The announced Mercator capital increase will be worth an estimated SIT 24.4bn (EUR
101.6m), with shares available to existing major shareholders at SIT 38,000 (EUR 158.62).
The news about the capital increase saw the SBI 20 soar 63 points on Wednesday, 20 July, the
biggest daily jump in 15 months.
Bonds traded reasonably well. This is in particular true of the 57th issue of the treasury bond,
which generated a turnover of SIT 738.5m (EUR 3.1m).
Volumes on the free market were even thinner than on the official market.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.57 (-0.01)
US dollar (USD) - SIT 197.21 (-0.96)
Swiss franc (CHF) - SIT 153.24 (-0.36)
British pound (GBP) - SIT 344.70 (-3.99)
23
BRANCH INFORMATION
Inflation Target Not Jeopardised by Oil Prices
According to Bostjan Vasle of the government Institute for Macroeconomic Analysis and
Development (IMAD), the price hike will add 0.1 percentage point to inflation growth this
month, and a projected 1.3 percentage points for the whole of this year
Rising oil prices will spur inflation, but Slovenia's inflation target, a crucial criterion for the
adoption of the euro, is not jeopardised yet, economists agreed on Monday, 18 July as the
latest retail price hike was announced.
According to Bostjan Vasle of the government Institute for Macroeconomic Analysis and
Development (IMAD), the price hike will add 0.1 percentage point to inflation growth this
month, and a projected 1.3 percentage points for the whole of this year.
The government has no more space left to cut excise duties, except for diesel. But even with
the latest cut in excise duty, the price of diesel will go up, Vasle told STA.
"The government cannot continue with the acyclical adjustment of excise duties; this is
possible only when oil prices are swinging, but the current price increase is of a more
permanent nature," Vasle explained.
"Slovenia's position is deteriorating, but I believe efforts to meet the inflation criterion for the
adoption of the euro will not be jeopardised," meanwhile said economist France Krizanic.
"The liberalisation effect of EU entry, detectable since September, has been so strong that we
are currently in a relatively good position and well on track to meet the Maastricht criterion
for inflation in autumn," he added.
Power Consumption up 2.7% in the First Half of 2005
Electricity consumption increased by 2.7% in the first six months of the year, to 6.3 billion
KWh
Electricity consumption increased by 2.7% in the first six months of the year, to 6.3 billion
KWh. This is 0.3% above projections for this year, Elektro Slovenije (ELES), the power grid
operator, reported on Tuesday, 19 July.
Consumption in June was even higher relative to last year, increasing 6.2% to 1.3 billion
KWh.
Distribution companies in particular purchased more electricity, 795.8 million KWh or 9%
more than in 2004.
Meanwhile, the five biggest energy users used 2.4% less electricity in June, 236.1 million
KWh.
Due to a lack of rainfall, hydro power plants lagged behind plans in June, as they contributed
only 223.5 million KWh, down 47% year-on-year.
Steam power plants and the Krsko nuclear power plant therefore had to raise output by 13%
compared to June 2004, to 855.3 million KWh.
Moreover, imports increased by 48% to 423.6 million KWh, while exports were down 2.6%
to 440.7 million KWh on an annual comparison.
Finance Ministry Ready to Consider Farmers' Arguments on Taxes
Finance Minister Andrej Bajuk met representatives of the Chamber of Agriculture and
Forestry (KGZS), who acquainted him with their proposals for amendments to the income tax
act
Finance Minister Andrej Bajuk on Tuesday, 19 July met representatives of the Chamber of
Agriculture and Forestry (KGZS), who acquainted him with their proposals for amendments
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to the income tax act. "We are ready to hear the arguments and, if possible, include them into
the tax legislation being prepared," Bajuk said after the meeting.
Bajuk told farmers' representatives that the government cannot take on big chances regarding
the loss of tax income before the euro adoption. He said though that the new tax legislation, to
be submitted to parliament in autumn, is to simplify the procedures.
According to chamber president Peter Vrisk, the KGZS presented to the minister the concrete
problems in agriculture and the emerging doubts about the changes brought on by the
amendments to the income tax act. According to KGZS, agriculture should be dealt with in a
special chapter of the new act.
The present legislation recognises as the basic agricultural and forestry activities only the ones
entirely or mostly based on the use of farmland and wooded land, disregarding gardening,
wine and olive oil production, as well as stockbreeding independent of home-grown food.
According to the KGZS, the chapter on activities should only comprise the agricultural
establishments that would register their activity as a proprietorship or a legal person.
Furthermore, they oppose special taxation of the payments from the chapter on agricultural
policy measures, and suggest direct payments and payments per lot be included in the tax.
Bajuk assured the KGZS representatives the government is not considering freezing the
agricultural subsidies. "We are making efforts to raise the subsidies, but not to the extent
foreseen a couple of years ago. This is still being discussed in the government."
Official: Slovenian Tourism Will Grow Faster than Economy
Interview with Marjan Hribar, the head of the Economics Ministry Tourism Directorate
A government official has projected that tourism revenue will almost double in Slovenia over
the next five years, mainly thanks to small and medium-sized companies in this sector.
"There are quite a few advanced tourism centres that still have potential for growth, but there
are also destinations that are developing intensively although no one has seriously counted on
them until recently. This part is important to us," Marjan Hribar, the head of the Economics
Ministry Tourism Directorate, said in an interview with STA.
Tourism contributes 3.7% to the country's GDP, according to the methodology used by the
national Statistics Office, while the international method using Tourism Satellite Account
(TSA - it measures the impact of tourism on the economy) puts the share at 5.5% of GDP.
The Economics Ministry anticipates that the share of tourism income in GDP in the next five
years will increase to some 6% using the classic method and even up to 10% using the TSA.
"The global tourism industry grows about twice as fast as the overall economy, and I am
positive that in Slovenia too, tourism will grow faster than economy," Hribar was confident.
According to him, the government works towards balanced regional development in tourism
as well. Here, the priority is on small and medium-sized companies, Hribar said, giving the
regions of Korosko, Savinja Valley and Bela Krajina as an example.
Unlike this government, the previous one supported big projects, Hribar said. He added that
the ministry under the former government had allocated SIT 7.7bn (EUR 32.14m) out of the
total of SIT 8.3bn (EUR 34.65m) in EU funds available for tourism in the 2004-2006 period.
"More than 80% of the money available from structural funds has been distributed, the bulk
going to big companies. The previous government must have had its reasons to support big
companies, while we want to give a chance to smaller ones too."
"The ministry would like to remove administrative barriers, let the market develop freely and
mainly encourage programmes with high value added and those which involve modern
approaches," Hribar added.
He believes that Slovenian tourism needs new investments. He added though that cooperation
between the tourism industry, the Slovenian Tourist Board and Tourism Directorate was vital
for the future development of this sector.
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One of the main problems of Slovenia's tourism is the failure to attract transit guests. A
campaign targeting this type of visitors has not produced any results. Hribar believes the
reason is that the project was not promoted among key tour operators.
This year, more funds will be earmarked for the promotion of Slovenian tourism on foreign
markets. A part of the SIT 2.2bn (EUR 9.18m) annual budget of the Slovenian Tourist Board
will be used for market communication rather than for fairs.
According to Hribar, the government wants to encourage air transport, counting on visitors to
be flown into Slovenia after budget airline Ryanair launches its flights to Barcelona, Frankfurt
and London from the Maribor airport.
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COMPANIES
Government Endorses Creation of New Business Promotion Agency
The new agency will be created with the merger of three existing agencies, namely the Small
Business Development Centre (PCMG), the Trade and Investment Promotion Office (TIPO)
and the Enterprise Fund
After adopting the necessary amendments to the act on the support environment for small
businesses last week, the government endorsed the creation of the Public Agency for Small
Business and Foreign Investment at a correspondence session. on Monday, 18 July
The new agency will be created with the merger of three existing agencies, namely the Small
Business Development Centre (PCMG), the Trade and Investment Promotion Office (TIPO)
and the Enterprise Fund.
The purpose of the merger is to improve the coordination of work and streamline institutions
that implement the policies of the Economics Ministry, according to the Government PR and
Media Office.
In addition to promoting foreign direct investment and the foreign operations of Slovenian
companies, the agency is also expected to reinforce the work of Euro Info Centres and
manage Business Innovation Centre.
Moreover, the agency will manage all public tenders that have so far been in the domain of
the Economics Ministry.
Petrol CEO Sells almost All of His Shares
Lotric is reported to have sold 770 shares for SIT 47.7m (EUR 199,100)
Janez Lotric, the chairman of oil company Petrol, has sold almost all the Petrol shares he held.
This is Lotric's "personal decision that he has been planning for a while; it is by no means a
sign of distrust in the company's future," the company said in a press release on Tuesday, 19
July.
Lotric is reported to have sold 770 shares for SIT 47.7m (EUR 199,100). He has nine Petrol
shares left.
Ever since the new government was inaugurated at the end of last year it has been speculated
that Lotric would have to leave his post before his term runs out.
The government controls Petrol through the state-owned Restitution Fund (SOD) and Pension
Fund Management (KAD), the biggest single shareholders, and has the majority on the
supervisory board.
The speculations were boosted by the recent AGM at which SOD and KAD refused to clear
the management board for the company's performance in 2004 and confer them a discharge.
The management board prevented a vote on the discharge by removing the item from the
agenda of the AGM and postponing it until the next shareholders' meeting.
A day after the AGM, the member of management board in charge of finance and energy
Vladimir Jancic tendered his resignation, effective on 30 September, yet gave no reason for
the move.
Port Operator Gets European Excellence Award
Luka Koper, the operator of Slovenia's only commercial port, has received the European
recognition for excellence, an award of the European Foundation for Quality Management
(EFQM)
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Luka Koper, the operator of Slovenia's only commercial port, has received the European
recognition for excellence, an award of the European Foundation for Quality Management
(EFQM), the company has said.
According to Luka Koper, the recognition puts the Slovenian port operator on par with the
likes of Siemens and Nokia in terms if how well it is managed and organised.
Various aspects of Luka's organisation and management were assessed by two EFQM experts
from 12 May to 1 July, awarding it an enviable 601 to 650 points, Luka said.
According to the company, this is just slightly less than around 700 points the recipients of the
same recognition, such as Siemens and Nokia, used to receive.
The company added in a press release on Monday, 18 July it had received several ISO
certificates since 1997, ranging from quality, environment and management. Moreover, it was
awarded Slovenia's EFQM-standard excellence award in 2002.
Adria Airways Boosts Passenger Numbers
Adria Airways carried 411,800 passengers in the first six months of the year, up 3% over
2004
Adria Airways carried 411,800 passengers in the first six months of the year, up 3% over
2004. While the number of passengers on scheduled flights dropped by 5% to 353,100,
numbers soared on charter flights by 78% to 58,700, the company reported on Tuesday, 19
July.
The data for June shows a similar picture: while passenger numbers overall rose by 7% to
93,700, the number of passengers carried on regular flights dropped by 5% and charter flights
saw an 81% increase.
Adria has 180 scheduled weekly flights to 18 European destinations, and charter flights to 20
destinations, mostly in the Mediterranean, during the summer months.
Mercator Supervisors Endorse Capital Injection
The supervisors of Mercator, Slovenia's largest retailer, have backed all proposals put
forward by the management, including a 20% capital increase
The supervisors of Mercator, Slovenia's largest retailer, have backed all proposals put forward
by the management, including a 20% capital increase. This is what Mercator CEO Zoran
Jankovic told the press after the session on Tuesday, 19 July.
According to Jankovic, the capital injection of SIT 24.4bn (EUR 102m) will be invested into
development. This includes an investment for which Mercator has already signed a
precontract with Era, another retailer.
Jankovic did not wish to reveal the details, but he did say that more information on the
investment would be available in the following months, when the contract is to be finalised.
The CEO said the supervisory board decided to invite its major shareholders, the state-run
Restitution Fund (SOD) and Pension Fund Management (KAD), as well as KD Group and the
company's executives to purchase newly issued shares.
KAD, SOD, KD Group and Mercator management will be able to purchase them at SIT
38,000 (EUR 158.62) per share until 31 January 2006. After that date, the price of share will
be raised by 5%, or the cost of interests, Jankovic said. He added that the payment should be
made in cash.
The supervisors also reviewed the proposals for the shareholders meeting scheduled for 30
August. They backed the proposal to declare a dividend of SIT 318 (EUR 1.33) per share for
2004 and nominated 12 member of the supervisory board.
The six nominated representatives of the capital are Bostjan Napast of SOD, Matjaz Gantar of
KD Group, Marjan Somrak as representative of small shareholders and Matjaz Bozic,
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Elizabeta Micovic and Dusan Mohorko of KAD. The other six supervisors will represent the
employees.
Under another proposal, the supervisors are to be rewarded with SIT 60.5m (EUR 0.25m) in
bonuses for last year.
Asked by a reporter whether the supervisors reviewed the company's operations in the first
half of this year, Jankovic said that the management had reported on results, while the
supervisors would examine them in detail at the session on 23 August.
Jankovic also commented on the recent suggestion by SOD chairman Gregor Gomiscek that
there were several reasons for his dismissal. Mercator CEO said the business world knew only
two reasons for the management's dismissal, that is poor performance or illegal operations.
Saying that, Jankovic reiterated that the incumbent management, which took over in 1997,
had posted good results.
The Mercator CEO has been advocating the management's greater representation in the
ownership structure of the company for several years, something that seems to be about to
come true with the management being invited to participate in the capital expansion.
Jankovic believes that the most optimal ownership structure would be with the employees, a
strong strategic partner and suppliers owning a little less than 25% each, and other
shareholders the rest.
He has often proposed that the state-run funds should sell out their stakes to the Mercator
management, something that has never happened.
KAD holds a 16.33% stake in the retailer and SOD 13.57%. Various investment funds hold
20.69%, with other legal entities holding 23.01% and individuals controlling 26.4%.
Slovenian-Owned Spa in Croatia Opens New Water Planet
The Croatian spa Terme Tuhelj, owned by the Slovenian spa Terme Olimia since 2003,
opened a new water park in what is one of the biggest and most modern thermal and water
centres in Croatia
The Croatian spa Terme Tuhelj, owned by the Slovenian spa Terme Olimia since 2003,
opened a new water park on Tuesday, 19 July in what is one of the biggest and most modern
thermal and water centres in Croatia, Terme Olimia has said.
The new water centre, an EUR 3.5m investment, is a part of the Terme Tuhelj facelift project,
the company also said. Terme Olimia has already invested EUR 8m in the project, while it
plans to invest a further EUR 7m.
The project, conducted in several phases, includes the refurbishment of a part of the hotel,
restaurant, kitchen, a small massage centre, as well as the computerisation of the entire
system.
Other investments are intended for further renovation and development of a wellness and
congress centre, expanding to new markets, and increasing the number of overnights and
regular guests, the company's said in the press release.
Austria's Heraklith Offers EUR 33 per Termo Share
The offer is open until 16 August
Heraklith of Austria and its Slovenian subsidiary Global B&C have published a bid to take
over the Skofja Loka-based thermal insulation manufacturer Termo, offering SIT 8,000 (EUR
33.39) per share.
The offer, published on Wednesday, 20 July, is open until 16 August. The companies did not
state how many shares they would want to purchase for the offer to succeed.
Heraklith already owns a 16.54% in Termo, while Global B&C holds a 24.99% stake in the
company. The affiliated company Eurovek, whose 50% owner is Heraklith, holds a further
31.30% stake in Termo.
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A part of the multinational RHI, Heraklith had exceeded a 60% share in Termo last
December, when it acquired a 50% stake in Eurovek, its partner. It indicated its intention to
take over Termo in late June. On Tuesday, 19 July, the move was also endorsed by the
Securities Market Agency.
Earlier last week, the managements of Heraklith and Termo reached agreement on the future
management of the Slovenian company. Its chief exec Janez Dezelak will retire and become a
member of the supervisory board, to be succeeded at the helm of the company by Aljosa
Krizman of Heraklith.
Merkur Offloads Stake in Sava
Hardware retailer and wholesaler Merkur has sold 2.1% stake in chemical and tourism group
Sava
Hardware retailer and wholesaler Merkur has sold 2.1% stake in chemical and tourism group
Sava. The transaction was carried out in a single block deal on Wednesday, 20 July, worth
SIT 1.8bn (EUR 7.5m).
Merkur will use the proceeds for current operations, with one part earmarked for dividend
payouts and the rest for investments into fixed assets, the company said in a press release.
Merkur spokesman Rok Istenic told STA that the company does not intend to sell any other
holdings that it has in other companies.
Thisle does not signal any strategic changes: the company had spare money that it invested
some time ago and is acquiring it back now that it needs is, he said.
Merkur's current performance is somewhat below expectations due to a downturn in the
metallurgy market, where profits are being squeezed.
The company's long-term plan envisages investments in warehouse and distribution facilities
of EUR 267m until 2010.
Merkur stressed that the Sava sale has no impact on the planned investment cycle, although
the company is having trouble providing sufficient resources due to a resistance to a capital
increase among shareholders.
It might therefore happen that Merkur will embark on an alternative, less ambitious
investment programme, the press release reads.
Slovenian Steel Group Gets New Supervisory Board
The shareholders of the Slovenian Steel Group decided at the AGM to replace six and
reappoint one member of the supervisory board
The shareholders of the Slovenian Steel Group decided at the AGM on Wednesday, 20 July to
replace six and reappoint one member of the supervisory board.
Evgen Dervaric, Damir Cibic, Boris Pesjak, Nevenka Hrovatin, Natasa Bernik and Marko
Vresk will be succeeded by Peter Puhan, Milan Skafar, Janez Kopac, Marija Zagozen, Franc
Vodopivec and Joze Kobe, while Izidor Rejc remains in office for another four years, the
group says.
Initially, the shareholders were to take a vote on replacing only four out of seven supervisors.
However, the government as the majority owner (80.4%) of the group proposed the dismissal
of the remaining three members as well.
The shareholders have not backed the proposal of the supervisory board to reward
supervisors. Moreover, they appointed auditing firm Deloitte&Touche to be the Slovenian
Steel Group's auditor instead of KPMG as proposed by the board.
The AGM has also agreed to leave the distributable profit of SIT 485.07m (EUR 2.02m) for
2004 untouched and carry it over to next year. They also reviewed the groups' annual report
and auditor's report for 2004.
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In the first quarter of 2005, the companies making up the Slovenian Steel Group generated net
revenues of SIT 58.76bn (EUR 245.3m), which is a 34% increase year-on-year. Most of the
sales revenues (71.9%) were generated on foreign markets.
Net profit amounted to SIT 3.98bn (EUR 16.6m) or 7% of the sales revenues. The most
successful subsidiary in 2004 and 2005 was Metal Ravne.
Business Promotion Agency to Improve Coordination
The new agency will be created with the merger of three existing agencies, namely the Small
Business Development Centre (PCMG), the Trade and Investment Promotion Office (TIPO)
and the Enterprise Fund
The goal of the Public Agency for Small Business and Foreign Investment, which the
government endorsed at its correspondence session will ensure business transparency,
improve task coordination and cooperation between institutions, Andrej Kitanovski of the
Economics Ministry told the press on Wednesday, 20 July.
The new agency will be created with the merger of three existing agencies, namely the Small
Business Development Centre (PCMG), the Trade and Investment Promotion Office (TIPO)
and the Enterprise Fund.
Kitanovski, the head of the directorate for small businesses and competitiveness, also said that
in addition to promoting foreign direct investments and foreign operations of Slovenian
companies, the agency will also reinforce the work of Euro Info Centres and support small
businesses at different EU projects.
"We wish to establish Business Innovation Centres, as there are none in Slovenia, and the
Slovenian Innovation Centre," Kitanovski stressed. The plan is also to reinforce agency's
programmes, he added.
The public agency is to consist of five main departments: small businesses, economic
development, financial businesses, internationalisation and foreign direct investments.
Adria to Take Immediate Measures to Counter Negative Trends
The new supervisory board of Adria Airways has decided that immediate measures must be
taken considering the current financial state of the company, to counter the negative trend
and make up for the loss of revenues in the first half of the year
The new supervisory board of Adria Airways has decided that immediate measures must be
taken considering the current financial state of the company, to counter the negative trend and
make up for the loss of revenues in the first half of the year.
Branko Franc Groselj, who was elected chairman of the supervisory board at the maiden
session on Thursday, 21 July, said that internal reserves will be sought and new solutions
found, according to the company's press release.
"We have established that due to fierce market conditions...increasingly expensive kerosene,
and additional expenses to ensure safety from terrorist attacks and other potential dangers,
business is very difficult and the performance uncertain," Groselj was quoted as saying.
The supervisory board, which was confirmed by the shareholders on 7 July, also features
Bogdan Znoj of the company Donit Tesnit Medvode, parliament employee Ales Vehar (who
are the new appointees), and old members Mirjana Gaspari, Tomaž Pečnik and Deana Potza,
the latter two representing employees.
Takeover Bid for Autocommerce Successful
Protej has succeeded with its takeover of the Autocommerce conglomerate, acquiring 24.99%
in a bid that expired on 21 July and raising its shareholding to 50.02%
Protej has succeeded with its takeover of the Autocommerce conglomerate, acquiring 24.99%
in a bid that expired on Thursday, 21 July and raising its shareholding to 50.02%.
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A total of 318 individuals and 18 companies decided to sell their shares, among them
investment fund Primus, the banks Factor banka, Probanka and Abanka, as well as a number
of brokerages.
Protej was set up by Autocommerce managers earlier this year with the purpose to attempt a
takeover bid for the IT, finance, automotive and tourism group.
According to Autocommerce general manager Herman Rigelnik, Protej has thereby stabilised
the previously dispersed ownership structure.
This constitutes an additional commitment by Protej shareholders to make Autocommerce
even more successful in the long term, Rigelnik said in a press release on Friday, 22 July.
Protej, which is owned by the director of Autocommerce's brokerage AC BPH Branko
Sibanovski, offered SIT 6,100 (EUR 25.46) per share in the takeover offer.
Sibanovski was joined in Protej by 26 shareholders, all of them senior managers at
Autocommerce and its subsidiaries, who provided the money for a capital increase that made
the takeover bid possible.
Autocommerce insists that the takeover will not affect the announced stock market floatation
of the company; all the documents required for floatation have already been submitted to the
Securities Market Agency.
Pristop-Digitel Share Swap Creates Regional PR Giant
In addition to the share swap, the Slovenian publishing group DZS, which already owns one
third of Pristop, acquired one-third of Digitel
The leading communication management companies in Slovenia and Croatia, Pristop and
Digitel, have joined forces and created the biggest communications group in the region with a
share swap that was finalised on Friday, 22 July.
The strategic and capital partnership is a response to the market challenges in the globalised
and fiercely competitive corporate communications market, and a bid to retain the top spot in
all markets of SE Europe, Pristop said in a statement on Friday, 22 July.
In addition to the share swap, the Slovenian publishing group DZS, which already owns one
third of Pristop, acquired one-third of Digitel. The remaining stakes in both companies are
held by their respective managers, so that the ownership structure of both firms is almost
identical.
The new group will have combined revenues in excess of EUR 70m, with over 250 experts in
all fields of communication.
According to Pristop, the two will do business solo in their respective domestic markets, and
join forces in other markets.
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SLOVENIA IN BRIEF
Drama Alamut to Premiere at Salzburg Festival
"Alamut", a landmark 1938 novel in which Slovenian author Vladimir Bartol portrayed
radical Islam, will be put on stage for the first time ever at this year's Salzburg Summer
Festival, due to begin on 25 July. Directed by Sebastijan Horvat, the production is the result
of collaboration between the Salzburg Festival and the Ljubljana National Drama Theatre.
The opening night is scheduled for 28 July.
Referendum on Public Broadcaster Bill to be Held in September
Parliament has called a referendum on the bill on public broadcaster RTV Slovenija for 25
September. The date was set by parliament at its extraordinary session on Thursday, 21 July.
Government Endorses Signing of Convention against Nuclear Terrorism
The government has decided that Slovenia will sign the United Nations Convention against
Nuclear Terrorism. According to plans, President Janez Drnovsek will sign the document
when he attends the UN General Assembly in September. According to law, the convention
must be ratified by the parliament; before this happens, it needs to be checked whether it is
compatible with the Slovenian penal code and the criminal procedure act, the Government PR
and Media Office said on Thursday, 21 July.
Balearics Collecting Money for ITF
Rotary Clubs of the Spanish Balearic Islands have become a new partner of the Slovenian-run
International Trust Fund For Demining and Mine Victims Assistance (ITF) in helping the
victims of mines in SE Europe. The Rotary Clubs have launched a project in which they will
sell silver coins and earmark the proceeds for children that are victims of land mines, the ITF
said in a press release on Friday, 22 July.
Drnovsek Offers Condolences to Mubarak
President Janez Drnovsek has sent a cable to Egyptian President Hosni Mubarak, offering his
sincerest condolences over the terrorist attacks at the Red Sea resort of Sharm al-Sheikh on
Saturday, 23 July.
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