Slovenia Business Week no 46, November 14th, 2005
Table of Contents:
HEADLINES ................................................................................................................. 3
Dun&Bradstreet Finds Reform Goals Feasible .......................................................... 3
IMAD Keeps Growth and Inflation Forecasts Unchanged ........................................ 3
Slovenian Tourism at World Travel Market in London ............................................. 4
INTERNATIONAL COOPERATION .......................................................................... 5
Slovenian Delegation Successfully Wraps Up Visit to Israel .................................... 5
Slovenia, Italy, Croatia Sign Deal to Clean up the Adriatic ....................................... 5
Mediterranean Sustainable Development Strategy Adopted in Portoroz ................... 6
Barcelona Convention Signatories Call for Reducing Sea Pollution ......................... 6
Slovenian, Croatian Chambers of Trade Forge Closer Ties ....................................... 7
New Cypriot Ambassador Presents Credentials to President Drnovsek .................... 7
EUROPEAN UNION .................................................................................................... 8
Slovenian Official Left Wanting by EU Budget Meeting .......................................... 8
Slovenia Signs Partnership Agreement on Euro Campaign ....................................... 8
Slovenia Wants Status of Two Cohesion Regions, Minister Says ............................. 9
Achieving EU Budget Deal in December Priority, Bajuk Tells Brown ................... 10
Government EU Office Says It Respects Expert's Resignation ............................... 10
Slovenia Unlikely to Win Two Regions Reclassification Before 2008 ................... 11
Rules for Twinning Projects Set Out ........................................................................ 12
LEGISLATION ........................................................................................................... 13
Government Suspends Adoption of Amendments to Trade Act .............................. 13
New RTV Slovenija Act Enters into Force .............................................................. 13
New Restrictions on Tobacco Advertising Take Effect ........................................... 14
STATISTICS/FORECASTS........................................................................................ 15
Factory-Gate Prices Up 1.8% Y-on-Y ...................................................................... 15
Strong Surge in Trade in September......................................................................... 15
FINANCE .................................................................................................................... 16
Bank of Slovenia: Wage Increases Could Jeopardise Economic Growth ................ 16
Abanka Posts Upbeat Q3 Results ............................................................................. 16
Supervisors Pleased with NLB Performance............................................................ 16
Financial Experts See Ljubljana Stock Exchange Fading ........................................ 17
Flat Tax Is a Means, Not an End, Reform Committee Member Says ...................... 17
Trading Continues to Drop on LJSE ........................................................................ 18
Mortage and Utility Bonds Boost for Financial Market, Bajuk Says ....................... 18
Slovenia on Track for Smooth Euro Changeover, Bank Official Says .................... 19
Ljubljana Stock Exchange ........................................................................................ 19
Foreign Exchange ..................................................................................................... 20
REGIONAL INFORMATION .................................................................................... 21
Government Promises Better Roads for Korosko .................................................... 21
PM's Pledge: Korosko Will Get Better Roads Soon ................................................ 21
BRANCH INFORMATION ........................................................................................ 23
Telco Watchdog Says Portability of Mobile Numbers on Track ............................. 23
Conference Discussed Telecommunications Present and Future ............................. 23
Lukoil Execs Meet Economics Minister .................................................................. 24
Pharmacists Say New Bill on Drugs Is a Poison Pill ............................................... 24
COMPANIES .............................................................................................................. 25
HIT and Harrah's Entertainment Strike Deal ............................................................ 25
Plans for New Renault Model Back on Track .......................................................... 25
Helios Profit Hurt by Oil Prices ............................................................................... 26
National Telco Publishes Upbeat Business Results ................................................. 26
Beverage Group Reports 170% Surge in Profit........................................................ 26
Domestic Bidders Interested in Steelworks, PM Says ............................................. 27
Vogel&Noot Further Raises Bid for Saturnus Embalaza ......................................... 27
CCIS Chief Says Slovenian Companies Have Quality ............................................ 28
Chief of Power Producer Defends Competition in Slovenia .................................... 28
Cabinet Establishes Privatisation Working Groups.................................................. 29
DARS Takes Out EUR 41m Loan to Fund Motorway Construction ....................... 29
KD Sells 7.6% of Mercator ...................................................................................... 29
Economics Minister: Lukoil Officials Expressed Interest in Petrol ......................... 30
Bajuk Says Two More Privatisation Groups to Be Established ............................... 30
Lasko Boss' Retirement Marks End of Era ............................................................... 31
Economics Minister Surprised at Croatian Arbitration Proposal ............................. 31
SLOVENIA IN BRIEF ................................................................................................ 33
Slovenia to Tackle Issues with Croatia during EU Accession Talks ....................... 33
Ivan Sisinger Appointed Head of the ZPIZ Council ................................................ 33
Financial Expert Resigns over Two Cohesion Regions Decision ............................ 33
PM Jansa Not Surprised by European Commission's Appeal to Croatia ................. 33
Changes to Classified Information Act to Improve Screening ................................. 33
Government Moves to Curb Wages of Heads of Public Institutions ....................... 33
One Commission to Probe Sales by State-Run Funds .............................................. 34
Drnovsek Outlines Status Plan in Kosovo ................................................................ 34
HEADLINES
Dun&Bradstreet Finds Reform Goals Feasible
Dun&Bradstreet's (D&B) November report keeps Slovenia firmly at the top in the
region, with the country's ratings still bearing a growth sign
Dun&Bradstreet's (D&B) November report keeps Slovenia firmly at the top in the
region, with the country's ratings still bearing a growth sign. D&B feels that Slovenia
has maintained its reputation as an economically stable state, while its reform goals
are achievable.
The largest international rating firm reported, however, that business people in
Slovenia are somewhat disappointed because the government-sponsored reforms are
not expected to be implemented in their entirety.
Yet, rating firm Bonitetna hisa I, the Slovenian partner of D&B, expects the rest of the
planned measures to be carried out at a later stage.
D&B also concludes that economic growth in Slovenia has been fuelled by a
significant rise in net exports, while import growth has slowed down somewhat.
The firm says that under the government's 2006 and 2007 budget bills, which are to
be submitted to the parliament in the coming weeks, the fiscal deficit in 2006 should
fall from the predicted 1.6% to 1.4% of GDP, dropping to 1.2% in 2007.
IMAD Keeps Growth and Inflation Forecasts Unchanged
IMAD anticipates that growth for this year and the next is to stand at around 4%,
while inflation will be at around 2.5%
The Institute for Macroeconomic Analysis and Development (IMAD) has kept its
growth and inflation forecasts unchanged in the final version of its autumn economic
report. IMAD anticipates that growth for this year and the next is to stand at around
4%, while inflation will be at around 2.5%.
Speaking after the cabinet examined the report at its session on Thursday, 10
November, IMAD head Janez Sustersic said that there had been no new information
since September that could change IMAD's outlook on the Slovenian economy.
Sustersic pointed out that several other institutions had recently released their
economic forecasts for Slovenia, including the IMF, which do not differ greatly from
IMAD's forecasts.
There seems to be great unity among financial institutions about the outlook for
Slovenia's economy, he said.
Sustersic added that Slovenia was on track to meet the eurozone criterion on inflation
by early next year because inflation was on the rise in other EU member states as a
result of rising crude oil prices.
Moreover, Sustersic said that the rise in the average wage in Slovenia, which is to
stand at 3.2% this year, is not likely to put additional pressure on inflation.
Meanwhile, he said that IMAD has so far not produced an estimate of the effects that
the planned government-sponsored structural reforms are to have on the Slovenian
economy.
According to him, the first results could be seen in 2007, with more substantial effects
expected in 2008.
He said that the goal of the reforms was to speed up economic growth to around 5.5%
in the 2008 to 2010 period.
Slovenian Tourism at World Travel Market in London
This year's 210 sq. metre Slovenian stall will feature active holidays in the 2005/2006
winter and 2006 summer seasons, including hiking tours, skiing, water activities,
cycling, and golf
The 26th World Travel Market, one of the most important travel business events in
the world, which begins in London on 14 November, will also feature 19 Slovenian
travel companies with more than 80 representatives.
This year's 210 sq. metre Slovenian stall will feature active holidays in the 2005/2006
winter and 2006 summer seasons, including hiking tours, skiing, water activities,
cycling, and golf, the organiser, the Slovenian Tourist Board (STO), has said.
As in previous years, the STO will also organise a meeting for journalists, who will be
addressed on Tuesday, 15 November by the STO head Barbara Guncar. She is to talk
about the realised and planned investments in tourism for 2005 and 2006, and about
the promotion of Slovenia in the UK.
Moreover, Majda Dolenc of the STO is to present the tradition of Slovenian tourism
in the light of numerous anniversaries which the organisation celebrates this year, and
the tradition today's tourism is based on.
Another representative of the STO, Rok Klancnik, is to discuss the possibilities of
Slovenia in tourism. The organisation is convinced that the three-day event is a great
opportunity for the promotion of Slovenia, not only in the UK, but in Europe and the
rest of the world too.
In the 2005 summer months, Slovenia did not attract as many visitors as in the same
period last year, however, as many as 41,914 came from the UK, which marks a rise
of 14%. Italian, German and Austrian visitors are still in the first three places.
A similar trend continued in September, yet, while the number of Austrian and
German guests was on the decrease, the number of Italian and British tourists
increased, with a 18% rise of guests from the UK year-on-year.
INTERNATIONAL COOPERATION
Slovenian Delegation Successfully Wraps Up Visit to Israel
A Slovenian delegation led by Minister of Higher Education, Science and Technology
Jure Zupan has concluded a two-day visit to Israel by agreeing to upgrade bilateral
cooperation in science and technology
A Slovenian delegation led by Minister of Higher Education, Science and Technology
Jure Zupan has concluded a two-day visit to Israel by agreeing to upgrade bilateral
cooperation in science and technology.
Invited by the Israeli Science and Technology Ministry, Zupan signed a document
with his counterpart Matan Vilnai which envisages co-financing of joint research
projects in bioinformatics and new materials, the Slovenian ministry said on
Wednesday, 9 November.
Arrangements were made with Eli Opper of the Israeli Ministry of Industry, Trade
and Labour to sign a new intergovernmental agreement on industrial research shortly.
The accord would increase bilateral cooperation in the field and encourage marketoriented research.
For the implementation of the two cooperation programmes, both countries would
annually earmark around USD 100,000 each.
Slovenia and Israel's common participation in EU programmes and projects was also
on the agenda during Zupan's visit in Tel Aviv on 7 and 8 November.
The Slovenian delegation included ministry officials as well as representatives of
research institutes, universities, businessmen, and Ambassador to Israel Iztok Jarc.
Slovenia, Italy, Croatia Sign Deal to Clean up the Adriatic
Slovenia, Croatia and Italy have signed an agreement on concerted action in cases of
accident-caused pollution on the margins of the 14th meeting of the Barcelona
Convention signatories in Portoroz
Slovenia, Croatia and Italy have signed an agreement on concerted action in cases of
accident-caused pollution on the margins of the 14th meeting of the Barcelona
Convention signatories in Portoroz.
This gives the sub-region a crucial tool which allows three Adriatic countries to
improve cooperation in the prevention of pollution, Slovenian Environment Minister
Janez Podobnik said after the signing on Wednesday, 9 November.
Podobnik also stressed it was crucial that Bosnia-Herzegovina, Serbia-Montenegro
and Albania eventually join the agreement.
Italian Ambassador to Slovenia Daniele Verga, who signed on behalf of Italy, said the
accord was a key and concrete step towards efficient protection of the Adriatic.
He voice the conviction that all key aspects of the Adriatic partnership must be based
on "dialogue, cooperation, the exchange of experience and the implementation of
agreed measures."
Nikola Ruzinski, state secretary at the Croatian Ministry of Environmental Protection,
Physical Planning and Construction, was meanwhile confident that the agreement
would improve environmental protection and preserve biodiversity.
He also stressed that the signatories should focus more on sustainable development
than accidents at sea.
In his opening address to the conference earlier in the day, Minister Podobnik said
Slovenia was convinced that the only path towards sustainable development of the
Adriatic was the joint use of resources, cooperation and coordination of development
plans.
He said that Slovenia, which will be the Barcelona Convention chairman for the next
two years, would make efforts to boost cooperation for sustainable development and
seek synergies in comprehensive use of marine resources.
Mediterranean Sustainable Development Strategy Adopted in Portoroz
This is globally the first regional document based on the Agenda 21, Environment
Minister Janez Podobnik told the press
The Barcelona Convention signatories on Wednesday, 9 November adopted a
Sustainable Development Strategy for the Mediterranean. This is globally the first
regional document based on the Agenda 21, Environment Minister Janez Podobnik
told the press.
Podobnik added that the strategy was a firm foundation for further dialogue between
the northern and southern Mediterranean on future development along the common
sea.
The document, drafted between 2002 and 2005, is a chance to turn a new page in
Euro-Mediterranean partnership, which has been less than successful in
environmental areas, according to Podobnik.
Mediterranean Action Plan (MAP) coordinator Paul Mifsud underscored that the
strategy was an historic opportunity, for it would become one of MAP's most
important means in the future.
He added that MAP might not have all the answers, but has nevertheless helped
countries tackle regional issues. Long-term assessment should be made of MAP,
which significantly contributed to the cleaner Mediterranean, Mifsud said.
According to him, MAP evaluations show that the documents perhaps need some
fresh wind. Podobnik agreed, stating however that the EU activities in the field
indicate the extreme importance of the role of MAP.
Barcelona Convention Signatories Call for Reducing Sea Pollution
Signatories of the Barcelona Convention have adopted a declaration in which they set
out to reduce environmental impacts and pollution of the Mediterranean
Signatories of the Barcelona Convention have adopted a declaration in which they set
out to reduce environmental impacts and pollution of the Mediterranean.
The coordinator of the Mediterranean Action Plan (MAP) for Slovenia, Mitja Bricelj,
told STA on Thursday, 10 November that this will be possible only is various sectors,
including education, economy and local as well as state administration, work together.
The declaration calls for a special session early in 2006 to adopt a new working
programme for MAP countries, which will address the issues of pollution in a more
suitable way, Bricelj added.
While EU legislation provides sanctions for failure to take certain measures, MAP
only has recommendations, Bricelj explained.
He also outlined Slovenia's activities during the next two years, when the country will
chair the MAP, saying that Slovenia has to do a lot of work and fundamentally change
the action plan's functioning.
This includes a rethink of MAP's focus, which is to shift more towards lessening the
impact of land- and sea-based pollution and especially facilitate cross-sector
cooperation.
The next conference of the signatories is to take place in Spain in 2007.
Slovenian, Croatian Chambers of Trade Forge Closer Ties
The agreement was signed by Chamber of Trade (OZS) president Miroslavg Klun and
his Croatian counterpart Stjepan Safran
The Slovenian and Croatian chambers of trade have upgraded cooperation as they
signed an agreement on Friday, 11 November, which gives businesses special
discounts for services in the respective country.
Economics Minister Adrej Vizjak and his Croatian counterpart Branko Vukelic were
on hand for the occasion, stressing the great importance of cooperation between small
enterprises and entrepreneurs from both countries.
According to Vizjak, Slovenia would like to see Croatia join the EU as soon as
possible, as this would boost the flow of goods, capital and services, and facilitate
overall economic cooperation.
Vukelic underlined joint economic interests as well. As part of the efforts to join the
EU, Croatia has already simplified administrative procedures for foreign investors, he
noted.
The agreement was signed by Chamber of Trade (OZS) president Miroslav Klun and
his Croatian counterpart Stjepan Safran. It gives owners of discount cards from both
countries the same benefits as the businesses have in their country of domicile.
New Cypriot Ambassador Presents Credentials to President Drnovsek
The newly-appointed Cypriot Ambassador to Slovenia, Cornelios Corneliu, who is
based in Vienna, presented his credentials to President Janez Drnovsek
The newly-appointed Cypriot Ambassador to Slovenia, Cornelios Corneliu, who is
based in Vienna, presented his credentials to President Janez Drnovsek in Ljubljana
on Friday, 11 November, the president's office said.
Drnovsek and Corneliu agreed that the relations between Cyprus and Slovenia are
excellent, however, they believe there are still numerous areas where cooperation
could be strengthened.
They also discussed the development of the EU, with the Cypriot ambassador
pointing out that the two countries, which became members of the EU in May 2004,
cooperated well during the accession process.
The two also talked about the situation in Southeastern Europe and the Cyprus issue.
Corneliu repeated the invitation of the Cypriot President Tasos Papadopulos for
Drnovsek to visit Cyprus, the president's office also said.
EUROPEAN UNION
Slovenian Official Left Wanting by EU Budget Meeting
"It is 7 November and there are only six weeks left before EU leaders hold their
summit at which the negotiations on the budget are to be concluded," Koprol said
A Slovenian official attending the first debate on the 2007-2013 EU spending plan
since Britain took over as EU president said he was disappointed by a meeting on
Monday, 7 November.
"I expected more, I truly expected more and I wasn't the only one," State Secretary for
European Affairs Marcel Koprol said after the meeting of EU foreign ministers in
Brussels.
According to him, the debate was outright political, while there was no concrete talk
about numbers.
"It is 7 November and there are only six weeks left before EU leaders hold their
summit at which the negotiations on the budget are to be concluded," Koprol said.
The British presidency unveiled only a timetable for talks, he explained, adding that
the possibility that a budget agreement can be reached before the end of the year is
about even.
"There is still a chance for a deal; how big it is will be made clear after more
substantive debates. Great Britain has a rigid stance on the rebate, while France and a
number of other countries have rigid stances on agriculture. It is difficult to see the
talks ending in success without a willingness to compromise," he said.
Slovenia reiterated its standpoints on the budget at the meeting: it would like more
money for R&D and rural development while opposing an erosion of funds reserved
for development aid.
Moreover, Slovenia shares the view of other countries that the British rebate is a
measure that distorts the system and needs to be done away with. "Although we
understand that this cannot happen overnight," Koprol said.
Slovenia Signs Partnership Agreement on Euro Campaign
Finance Minister Andrej Bajuk and European Commissioner for Economic and
Monetary Affairs Joaquin Almunia signed an agreement to cooperate in the campaign
leading up to the adoption of the euro
Finance Minister Andrej Bajuk and European Commissioner for Economic and
Monetary Affairs Joaquin Almunia on Tuesday, 8 November signed an agreement to
cooperate in the campaign leading up to the adoption of the euro.
Bajuk said that by signing the agreement, Slovenia took another important step in its
practical preparations for euro zone entry.
Meanwhile, Almunia underscored that providing adequate information was essential
for a successful changeover to the single currency.
Slovenia wishes to introduce the euro on 1 January 2007, along with Estonia and
Lithuania whose ministers also signed partnership agreements with Almunia.
All the countries are collectively scheduled to receive EUR 2.3m, to be divided
approximately into thirds.
According to Almunia, the European Commission would support the countries'
national campaigns by sharing its experience from the original euro changeover, and
providing information for the campaign as well as financial support.
"We might witness another historic enlargement next year," Almunia said, but refused
to estimate what the actual chances were. The convergence report on the fulfilment of
euro criteria will not be made until mid-2006.
Inflation rate currently represents Slovenia's only unmet Maastricht criterion.
"However, inflation has been decreasing since 2001 and I believe the criterion will be
met in early 2006," Bajuk stated.
He said Slovenia's support for euro zone entry was high and the population wellinformed. Surveys show that 60% of the population feel they are well informed, 58%
support the euro, while as many as 87% believe it would take place in January 2007,
he added.
The euro promotion campaign will officially be launched on 1 March 2006, along
with the informative double pricing in euros and tolars, and is to continue for six
months after the changeover.
The campaign is to be carried out in line with the adopted communication strategy
and focus on the presentation of euro and its advantages, as well as the role of the
European Central Bank (ECB). It will promote adaptations and inform the population
about practical aspects of the changeover.
The Commission is to take part in the national campaigns through the Prince
programme, which was designed in 1995. It will support the media campaign, as well
as various conferences, brochures and slogans.
Slovenia Wants Status of Two Cohesion Regions, Minister Says
Zagar confirmed at a press conference that the government adopted a proposal to see
Slovenia classified as two cohesion regions in the EU so that the country can continue
to be a recipient of core development aid
Slovenia is to seek to be granted the status of two cohesion regions in talks with the
European Commission, Local Government and Regional Policy Minister Ivan Zagar
has said.
Zagar confirmed at a press conference in Ljubljana on Tuesday, 8 November that the
government adopted a proposal to see Slovenia classified as two cohesion regions in
the EU so that the country can continue to be a recipient of core development aid.
The proposal envisages classification into two regions, east and west, Zagar
explained. He said that the proposal for reclassification as two regions is "the only
realistic and credible" plan given Slovenia's current position, thereby rejecting
opposition calls for Slovenia to seek to be classified as three cohesion regions.
"I hope that we can conclude talks with the Commission on this proposal before the
year is out, although it is difficult to predict the outcome at this time. If nothing else,
Slovenia is sure to improve its negotiating position," Zagar said.
He revealed that the government had forwarded the proposal for reclassification to the
European Commission on Monday, 7 November. So far there has been no response,
Zagar said, adding that Slovenia has launched all necessary procedures for the
reclassifications.
The east region would include the statistical regions of Pomursko, Podravsko,
Korosko, Savinjsko, Southeastern Slovenia, Zasavsko, Spodnjesavsko and
Notranjsko-Krasko, with Maribor as its centre. According to data from 2002, the
region's GDP per person is around 62% of the EU average.
The west region, the more developed of the two, with a GDP per capita at nearly 90%
of the EU average, is to be centred in Ljubljana, while it would include the statistical
regions of Gorenjsko, Gorisko, Obalno-Krasko and central Slovenia.
The government adopted the proposal a few days after the act on balanced regional
development took effect, giving the government the power to decide on the number of
cohesion regions for Slovenia.
Currently, Slovenia is classified as one cohesion region. As a result of this status and
its growing GDP, it could lose a bulk of EU development aid if the bloc fails to reach
agreement on the 2007-2013 spending plan by the end of the year.
The government would therefore like to secure reclassification as two regions, so that
the less developed of the two regions may continue to remain entitled to Level 1
development aid in the future.
For the new status to take effect as of 2007, a deal between Slovenia and the EU
would have to be reached before the end of 2005.
Moreover, Zagar labelled the proposal an important step towards greater
decentralisation in Slovenia.
Achieving EU Budget Deal in December Priority, Bajuk Tells Brown
Finance Minister Andrej Bajuk has underscored the importance that Slovenia
ascribes to a deal being achieved on the 2007-2013 EU spending plan before the year
is out, as he met his British counterpart Gordon Brown
Finance Minister Andrej Bajuk has underscored the importance that Slovenia ascribes
to a deal being achieved on the 2007-2013 EU spending plan before the year is out, as
he met his British counterpart Gordon Brown.
Meeting Brown on the margins of the meeting of EU finance ministers in Brussels on
Tuesday, 8 November, Bajuk voiced Slovenia's request that Britain do everything in
its power to ensure that a deal is achieved on the budget at the EU summit in
December.
"Following recommendations from Slovenia's parliament, I got in touch with Mr.
Brown to express the urgent need to see action in this field," Bajuk said.
According to him, Brown informed him that that the presidency is attending to the
matter and that it is working on a compromise that would enable a deal to be reached.
Bajuk said that Slovenia was still "hopeful that a deal could be reached in December".
"The British presidency has assumed a great responsibility ... and has adopted a
serious approach to tackling it. We can expect the first proposal in December,
possibly even earlier," Bajuk said.
Bajuk took part in the meeting of EU finance ministers that examined a number of
issues, including Hungary's mounting budget deficit.
Government EU Office Says It Respects Expert's Resignation
Meanwhile, the EU Affairs Office said it was not yet considering naming a
replacement for Mrak, adding that a decision would be taken at the next meeting of
the team coordinating Slovenia's standpoints on the EU budget
The Government EU Affairs Office said on Wednesday, 9 November that the decision
by a Slovenian negotiator for the EU's 2007-2013 spending plan to step down over
differences with the government is his legitimate decision.
The office made its comments a day after Mojmir Mrak said he was resigning from
the negotiating team because he disagreed with the government's decision to seek
division of the country into two cohesion regions.
In its response, the office said that cooperation between the government and Mrak had
been very good up until now, especially on the issue of the future EU budget.
Meanwhile, Finance Minister Andrej Bajuk said he regretted Mrak's decision.
However, he said he does not agree with Mrak's view on the negative consequences of
the government's decision to attempt to get classification as two cohesion regions in
the EU.
"I regret that he has taken this step, his work was very important. Mr. Mrak is a
respect expert who has made a great contribution to Slovenia's EU accession talks,"
Bajuk said.
Meanwhile, the EU Affairs Office said it was not yet considering naming a
replacement for Mrak, adding that a decision would be taken at the next meeting of
the team coordinating Slovenia's standpoints on the EU budget.
Explaining his decision, Mrak said that he did not agree with the government's
decision to seek classification as two cohesion regions because it would be
unfavourable to Slovenia in talks on the EU budget framework.
"This is a strategically bad decision, and as an expert I have no other option but to
step down," he told STA.
Slovenia Unlikely to Win Two Regions Reclassification Before 2008
According to Amelia Torres, the spokesperson for European Commissioner for
Economic and Monetary Affairs Joaquin Almunia, if Slovenia's motion for
reclassification is confirmed, the reclassification would enter into force as of 2008
The European Commission has indicated that Slovenia will probably not be able to
win reclassification as two cohesion regions before 2008.
According to Amelia Torres, the spokesperson for European Commissioner for
Economic and Monetary Affairs Joaquin Almunia, if Slovenia's motion for
reclassification is confirmed, the reclassification would enter into force as of 2008.
Torres's comments come after Slovenia sent a proposal to the European Commission
for a change in Slovenia NUTS 2 status from one to two regions (east and west) so
that the country can continue to be a recipient of core development aid in the future.
She said that the Commission has received Slovenia's proposal for reclassification to
two cohesion regions. The application is being studied by Eurostat and if it is
approved, the Commission will prepare an official proposal and forward it to the
member states, she said.
However, Torres said that even if Slovenia's application was approved, the country
would not be able to implement the new status before 1 January 2008 given the valid
rules on NUTS regions.
The NUTS regulations envisages changes to classification every three years. The first
possible date for the European Commission to approve Slovenia's application is
therefore in 2006.
Moreover, if Slovenia's application is approved in 2006, valid regulations say that the
new classification takes effect on 1 January of the following year.
Although the NUTS regulations allow for exceptions, well-placed sources at the
Commission say that it would be impossible for Slovenia's application to be approved
before the end of the year.
Slovenia was hoping to have the new status in place for the 2007-2013 EU spending
plan, meaning that it would have to enter into force on 1 January 2007 at the latest.
Currently, Slovenia is classified as one cohesion region. As a result of this status and
its growing GDP, it could lose a bulk of EU development aid if the bloc fails to reach
agreement on the 2007-2013 spending plan by the end of the year.
The government would therefore like to secure reclassification as two regions, so that
the less developed of the two regions may continue to remain entitled to Level 1
development aid in the future.
Rules for Twinning Projects Set Out
The government adopted a basic set of measures for establishing a system for close
inter-institutional projects, also known as twinning projects, the Government Office
for European Affairs (SVEZ)
The government on Thursday, 10 November adopted a basic set of measures for
establishing a system for close inter-institutional projects, also known as twinning
projects, the Government Office for European Affairs (SVEZ).
The document contains basic information on the submission of proposals for such
projects, signing contracts, inclusion of EU funds in the project budget and
engagement of experts.
The solutions will allow twinning projects, which are financed in their entirety by the
EU, to be carried out in accordance with Slovenian as well as EU rules.
Twinning projects were instituted by the EU in 1998 in preparation for the expansion
of the bloc. EU members offer support to candidate states in building their
administrative and legislative capacity.
According to the SVEZ, Slovenia is mainly interested in carrying out such projects
with the states of the Western Balkans, where its assistance is in great demand.
The government also discussed a report on Slovenia's ongoing and concluded
twinning projects.
According to the report, four projects (three in Croatia and one in Macedonia) have
already been completed, while six are still in progress.
LEGISLATION
Government Suspends Adoption of Amendments to Trade Act
According to the Economics Ministry, there are still certain "open issues"
The government has suspended the adoption of amendments to the trade act on the
opening hours of shops, which was on the agenda of the session on Thursday, 10
November. According to the Economics Ministry, there are still certain "open issues."
Voters decided in a referendum two years ago that most stores should be closed on
Sundays. However, the original legislative solution was thrown out by the
Constitutional Court.
Now the Economics Ministry has drafted new amendments, but these would in effect
allow about 84% of all retail outlets (all stores smaller than 200 sq. metres) to stay
open on Sunday without limitations.
The Association of Free Trade Unions of Slovenia insists that the proposed
amendments run contrary to the voter's will as expressed in the referendum.
Interestingly, the parties currently making up the government coalition were vocal
backers of the referendum, which was launched by the Trade Union of Retail and
Wholesale.
"The coalition parties had been strong backers...they cannot just change their minds
now," Franci Lavrac, the head of the Trade Union of Tetail and Wholesale, told STA.
New RTV Slovenija Act Enters into Force
The new act on public broadcaster RTV Slovenija, the controversial piece of
legislation which was confirmed in the 25 September referendum with the narrowest
of margins, entered into force on November
The new act on public broadcaster RTV Slovenija, the controversial piece of
legislation which was confirmed in the 25 September referendum with the narrowest
of margins, entered into force on Saturday, 12 November.
The centrepiece of the law is an overhaul of the broadcaster's governing bodies. The
25-strong Council, which features representatives of NGOs, guilds, universities and
political parties, will be replaced by a 29-member Programming Council where
parliament will appoint most of the members.
Five members on the new Council will be nominated by political parties and
appointed by the parliament, two by the Italian and Hungarian minorities, and one by
the Slovenian Academy of Arts and Sciences.
The president will appoint two members under the proposal of religious communities,
while three members will be elected by the RTV employees.
The remaining 16 members are appointed by parliament at the proposal of the public.
This is the change that had stirred up heated debates about the ruling coalition's
attempt to subdue the broadcaster, and ultimately led to the referendum.
The new act also institutes some restrictions on who can sit on the Programming
Council. Persons who have been members of parties' top bodies, MPs or employees of
the European Parliament, and state or local officials in the past ten years, are not
eligible.
The Programming Council will have fewer powers than the previous governing body,
as some of the tasks will be taken over by a new supervisory board, which will be in
charge of the statute and financial matters.
Moreover, the new act carries some of the RTV Council's powers over to the director
general, leaving the Programming Council with taking care of the programming and
representing public interest.
The Programming Council will still appoint and dismiss the director general, but not
the other directors, whose nomination it would only approve. The appointment and
dismissal of radio and television programme directors and chief editors will be in the
hands of the director general.
The new act also introduces a special national television programme which will be
dedicated to broadcasting sessions of the parliament and its bodies. When the
parliament is not in session, it will broadcast home shopping ads.
The Programming Council and supervisory board must be inaugurated in two months,
according to law. A job tender for the new director general must be published no later
than 15 days after the establishment of the governing bodies.
To appoint the members of the governing bodies, the parliament's privileges and
credentials commission will issue a call for applications no later than two weeks from
12 November.
New Restrictions on Tobacco Advertising Take Effect
The changes transpose EU regulations on tobacco advertising into Slovenian
legislation
Changes to the anti-smoking act that extend the ban on advertising to all tobacco
products entered into force on Saturday, 12 November. In line with the law, the
possibility of advertising new products has been eliminated.
The government-sponsored changes were backed in a 65-to-1 vote in parliament on
27 October. The changes transpose EU regulations on tobacco advertising into
Slovenian legislation.
The only advertising of tobacco products that will still be allowed in Slovenia is logos
on smoking accessories, on commercial premises and at tobacco stores.
STATISTICS/FORECASTS
Factory-Gate Prices Up 1.8% Y-on-Y
Since the beginning of the year, prices have risen 1.3%
Factory-gate prices were up 1.8% year-on-year in October, after putting on 0.2% in
the month. Since the beginning of the year, prices have risen 1.3%, according to the
data released by the National Statistical Office.
The most substantial year-on-year increase in prices was recorded in manufacturing,
where they were up by 2.2%. Prices in electricity and water supply were up by 0.3%,
while prices in forestry and mining remained flat on a yearly basis.
The manufacturing sector also led the way in terms of monthly price increases, as
prices rose by an average of 0.3%. Prices of electricity and water supply were up
0.2% in October, while prices in mining fell 0.9%.
The prices of intermediate goods (energy products and raw materials) rose 0.2% in the
month, while consumer goods were dearer by 0.1% and capital goods by 0.5%.
On a yearly level, prices of intermediate goods rose 1.8%, consumer goods were 1.8%
dearer and capital goods cost 1.5% more.
Strong Surge in Trade in September
Slovenia's exports topped EUR 1.3bn in September, a rise of 8.8% over the year
before
Slovenia's exports topped EUR 1.3bn in September, a rise of 8.8% over the year
before. Imports were up by as much as 12.3% in the same period to EUR 1.4bn,
according to provisional data released by the National Statistical Office.
Data for the first nine months of the year shows an annual increase in exports of
11.9% to EUR 10.48bn, with imports up 9.5% to EUR 11.27bn.
The trade gap for September stood at EUR 105.1m, putting the exports-imports cover
at 92.6%. In the first nine months of 2005, the coverage was 93%.
FINANCE
Bank of Slovenia: Wage Increases Could Jeopardise Economic Growth
Bank of Slovenia Governor Mitja Gaspari told the press that wage increases, similar
to those witnessed in the recent months, could pose a threat to economic growth and
spur inflation
Bank of Slovenia Governor Mitja Gaspari told the press on Monday, 7 November that
wage increases, similar to those witnessed in the recent months, could pose a threat to
economic growth and spur inflation.
Gaspari, presenting a report on Bank of Slovenia monetary policy and projections for
the next two years, was also upbeat about Slovenia's ability to fulfil the conditions for
the adoption of the euro.
According to him "in the absence of unpredictable events, such as volatile oil prices,
Slovenia is well positioned to meet the inflation criterion by the end of 2005", when
the annual inflation rate in Slovenia should stand at around 2.5%.
He was pleased that no imbalances were recorded in important macroeconomic fields,
with the balance of payments staying in a comparatively healthy state. This means
that "the central parity rate, chosen at Slovenia's entry into the ERM II mechanism,
was appropriate," he said.
He was also upbeat about Slovenia's economic growth, which is projected at 4.1% in
2005 and 3.8% in the next two years.
However, he said that stronger economic growth is having a negative effect on
inflation-reducing measures due to renewed vigour in consumption.
According to Damjan Kozamernik of the central bank's forecast centre, inflation is to
stand at 2.6% this year and next year, with the rate falling to 2.4% in 2007.
"We expect that market prices will stabilise, while the effect of administered prices is
to fall somewhat," he said, adding that the forecast takes into account stable oil prices.
Abanka Posts Upbeat Q3 Results
Abanka Vipa, Slovenia's third-largest bank, increased profits by 73% in the first nine
months of the year to SIT 5.37bn (EUR 22.41m) and raised total assets by 12.7% to
SIT 546.17bn (EUR 2.28bn)
Abanka Vipa, Slovenia's third-largest bank, increased profits by 73% in the first nine
months of the year to SIT 5.37bn (EUR 22.41m) and raised total assets by 12.7% to
SIT 546.17bn (EUR 2.28bn).
The bank's market share by assets was thus 8.3%, Abanka said in a press release on
Wednesday, 9 November. This is down from 8.8% at the end of June.
On a year-on-year comparison, the fastest-growing segment was loans to non-banking
customers, which expanded by 11.9% on surging demand for loans by businesses.
The 49.3% rise in loans to banks is largely due to an increase in long-term deposits at
the central bank, Abanka said.
Supervisors Pleased with NLB Performance
The NLB group, Slovenia's largest financial group, posted a pre-tax profit of SIT
16.3bn (EUR 69.03m) for the January-September period
The NLB group, Slovenia's largest financial group, posted a pre-tax profit of SIT
16.3bn (EUR 69.03m) for the January-September period, a figure which the
supervisory board assessed as good.
In the first three quarters, total assets increased by 15% to SIT 2,726.5bn (EUR
11.28bn), the bank said after a session of the supervisory board on Thursday, 10
November.
Supervisory board chairman Ziga Lavric also praised the performance of the core
bank, NLB, which posted a pre-tax profit of SIT 11.9bn (EUR 49.67m). NLB saw a
19.9% growth in loans to the non-banking sector.
Before the supervisory board session, Prime Minister Janez Jansa and Finance
Minister Andrej Bajuk met Andre Bergen, a board member of Belgian group KBC,
which owns 34% of NLB.
According to the PM's office, talks focused on the future ownership structure of NLB.
Jansa is reported to have said that the government would make a decision on the
second phase of NLB privatisation by the end of the year.
KBC had a moratorium on increasing its stake in NLB, but it runs out at the end of
this year. KBC officials have repeatedly voiced their desire to increase the stake,
which requires approval by the central bank.
Financial Experts See Ljubljana Stock Exchange Fading
8th autumn meeting of financial experts was organised by the Ljubljana Stock
Exchange (LJSE) and focused on trading in investment certificates, public auctions
and non-public share offerings
Stock market experts painted a bleak picture of the future of the Ljubljana Stock
Exchange (LJSE) as they gathered for the 8th autumn meeting of financial experts.
The Slovenian capital market will soon start fading, said NFD chairman Stane Valant.
"The portfolios of major investors will eventually include 90% of foreign securities
and 10% of domestic securities," said Valant, who was in particular critical of the
poor liquidity on the stock market.
"Selling 10,000 shares of (drug maker) Krka is hard; selling 10,000 of (oil trader)
Petrol is a strain, but selling 10,000 shares of (airport operator) Aerodrom Ljubljana is
a multi-year project," said Valant, who heads one of the country's biggest asset
management firms.
While Gvido Jemensek of Reiffeisen Krekova banka blamed the poor liquidity on the
absence of foreign investors, the head of NLB Skladi, the fund management arm of
NLB, Robert Kleindisnet noted that foreign investors alone are not enough to raise
liquidity.
Kleindienst thus noted that the environment in Slovenia has never been conductive of
capital market development. "For years I've been looking for a market as dead as
Slovenia's, but I can't find it," he said.
The participants of the round table also touched on the grey market in Slovenia, which
they claim accounts for 50% of all trading in securities, and the role of financial
investors in company management.
The round table wrapped up the meeting, which was organised by the Ljubljana Stock
Exchange (LJSE) and focused on trading in investment certificates, public auctions
and non-public share offerings.
Flat Tax Is a Means, Not an End, Reform Committee Member Says
It is designed to ease the tax burden on labour and make the economy more
competitive, Andrej Sircelj told the daily Delo
A member of the government's reform committee told Delo that the controversial flat
tax is a means not an end. It is designed to ease the tax burden on labour and make the
economy more competitive, Andrej Sircelj told the daily on Friday, 11 November.
Sircelj also said that ongoing plans to reform the tax code across the EU were part of
the reason why the reform committee decided to propose a flat tax.
He acknowledged that none of the old EU members have opted for a flat tax, but said:
"I don't know why the so-called old member states would have to be the first ones to
introduce a flat tax."
"A country which has a desire to make changes to taxes to improve competitiveness
will opt for changes. Slovenia does not have to wait to see what old EU members do,"
Sircelj said.
He was also quick to point out that the flat tax needs to be evaluated in conjunction
with the proposed social measures, and said that the current tax system was unjust
because it penalises big earners.
It is unfair that the top personal income tax bracket was 50%. Moreover, the 50% rate
sets in at 40,000 euros gross, whereas elsewhere in Europe the top bracket is effective
at 90,000 or 100,000 euros, he said.
Trading Continues to Drop on LJSE
A steady rise of drug maker Krka, which was the share of the month in October,
resulted in the SBI 20 benchmark index gaining 0.6%, albeit on low trading volumes,
the monthly statistical report of the Ljubljana Stock Exchange (LJSE) reveals
A steady rise of drug maker Krka, which was the share of the month in October,
resulted in the SBI 20 benchmark index gaining 0.6%, albeit on low trading volumes,
the monthly statistical report of the Ljubljana Stock Exchange (LJSE) reveals.
Of the SIT 12.1bn (EUR 50.50m) in volumes in October (9.2% down on October
2004 and 27.5% less than last year's average), Krka accounted for more than a third,
with SIT 4.6bn (EUR 19.19m) worth of shares changing hands.
Trailing Slovenia's hottest share on the official market were grocer Mercator with SIT
722m (EUR 3.01m) and household appliance maker Gorenje with SIT 523m (EUR
2.18m)
Block deals added a further SIT 10.9bn (EUR 45.49m) in what was another
uninspiring month on the stock market.
Despite a small gain, the SBI 20 index is still 6.2% below its value in October last
year. The PIX investment fund index lost 1.4% in October (7.6% down year-on-year),
with the BIO bond index up 0.7% (a rise of 3.1% in the last 12 months).
The total market capitalisation of all securities traded on the Ljubljana Stock
Exchange in September amounted to SIT 1,568bn (EUR 6.544bn).
Mortage and Utility Bonds Boost for Financial Market, Bajuk Says
The introduction of mortgage and utility bonds, as stipulated by a bill the government
filed in parliament the previous week, is important for the development of Slovenia's
financial market, Finance Minister Andrej Bajuk has said
The introduction of mortgage and utility bonds, as stipulated by a bill the government
filed in parliament the previous week, is important for the development of Slovenia's
financial market, Finance Minister Andrej Bajuk has said.
Speaking at a press conference in Ljubljana on Friday, 11 November, Bajuk said that
the bill on mortgage and utility bonds will have long-term positive effects for the
financial market, while it should also be a welcome move for prospective housebuyers.
"We believe that the measures would level the paying field for domestic banks and
those operating in Slovenia as subsidiaries of foreign banks. Moreover, it should open
greater possibilities for long-term loans," Bajuk said.
According to Bajuk, the Finance Ministry spent years drafting the bill, much of the
time having been used to harmonise the measures with the Bank of Slovenia.
The purpose of the bill is to create a legal basis for issuing bonds that would be
secured with mortgages or loans to public utilities, Bajuk explained.
The only difference between the two is in the type of insurance: while mortgages are
the collateral for mortgage bonds, utility bonds are insured with loans to public law
entities.
The bill defines the conditions under which these two types of bonds can be issued.
To guarantee safety for investors as well as to prevent possible manipulations, the bill
prohibits the use of the words mortgage or utility for any other type of security.
As an extremely safe form of investment, both types of bonds are meant to attract
portfolio investors with extensive and free capital, Bajuk added.
Slovenia on Track for Smooth Euro Changeover, Bank Official Says
Macroeconomic indicators suggest that Slovenia is on track for a smooth transition to
the euro, the head of the Bank Association of Slovenia has said
Macroeconomic indicators suggest that Slovenia is on track for a smooth transition to
the euro, the head of the Bank Association of Slovenia has said.
Speaking at the end of the Days of Slovenian Bankers, Dusan Hocevar said that
Slovenia's entry into the eurozone topped talks at the meeting.
"We examined how Slovenia's banking sector will respond to the adoption of the euro
and what would happen after 2007," Hocevar told the press in the seaside resort of
Portoroz on Saturday, 12 November.
According to him, the euro is expected to bring further cuts in interest rates as well as
a slight increase in risk and costs for Slovenian banks.
Hocevar said that the participants were convinced that the expansion of the eurozone
will lead to greater freedom of movement for capital and money in the EU.
Moreover, he said that it is the opinion of Slovenian bankers that the banking sector
will continue to play a crucial role in economic development in Slovenia.
Banks are expected to remain the main financial middleman in the economy, although
investment and other funds are expected to play a greater role in the future, he said.
Ljubljana Stock Exchange
The SBI 20 benchmark index finished the week 21.02 points (0.47%) higher at
4,520.42 points
Slovenian blue chips ended an otherwise mixed week on a high note as three of the
biggest shares posted strong gains on Friday, 11 November. The SBI 20 benchmark
index finished the week 21.02 points (0.47%) higher at 4,520.42 points.
The action came to life on Friday, 11 November, when SIT 10bn (EUR 42m) worth of
stocks changed hands, making up for the bulk of last week's SIT 13.7bn (EUR 57.2m)
in turnover.
The large turnover on 11 November was a result of heavy trade with shares of
Slovenia's grocer Mercator as investment group KD Group sold a 7.6% stake in
Slovenia's largest retailer, with 4.27% of that snapped up by beverage group
Pivovarna Lasko. Mercator closed the week at SIT 37,564 (EUR 156.97), up 0.44
percent.
Meanwhile, action on 11 November was also given a boost by news that Russian oil
giant Lukoil expressed an interest in acquiring a stake in Slovenian fuel trader Petrol.
Petrol soared over 3% on the day to close the week SIT 62,015 (EUR 258.84), which
is 1.52% more than the previous week.
Drug maker Krka continued its record-breaking streak last week, recording five days
of gains to close at a new all-time high of SIT 102,088 (EUR 426.11), up 5.25% on
the week.
On the free market, investment companies had an upbeat week in slow trading. Infond
ID (+3.5% to SIT 2,284) and NFD 1 (+1.97% to SIT 311.64) helped push the PIX
investment fund 75.34 points (1.86%) higher to 4,116.04 points.
Meanwhile, the BIO bond index was down 0.1 points (0.08%) last week at 123.17
points.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.59 (+0.00)
U.S. dollar (USD) - SIT 204.91 (+4.2)
Swiss franc (CHF) - SIT 155.75 (+0.54)
British pound (GBP) - SIT 356.37 (+2.1)
REGIONAL INFORMATION
Government Promises Better Roads for Korosko
Government officials have promised that the northern Slovenian region of Korosko
would feature highly in future road construction projects as they paid a visit to the
region
Government officials have promised that the northern Slovenian region of Korosko
would feature highly in future road construction projects as they paid a visit to the
region on Wednesday, 9 November.
The promise comes after local officials pointed to the poor road infrastructure in the
region. Mayor of Prevalje Matic Tasic stressed that Korosko is the only Slovenian
region that has not been included in the national motorway construction scheme so
far.
Tasic was pleased by the announcement PM Janez Jansa made on Tuesday, 8
November that Korosko would be the first region included in a new project of
transport infrastructure construction, dubbed the "Third Development Axis", which
would connect Korosko to the SE region of Dolenjsko.
Jansa has already instructed the relevant ministries to begin drawing up an amended
plan that would see the construction of a high-speed road connecting Korosko with
central Slovenia get underway during the current term of the government.
Speaking to the press, Jansa suggested that the construction of the road could be
moved up the schedule provided that Slovenia secures sufficient EU funds. Works on
the road were initially scheduled to begin in 2013.
Speaking at a round table on the Third Development Axis, Transport Minister Janez
Bozic said that Jansa's promise is realistic, although it depends on a number of
factors, including how successful Slovenia is in phasing EU funds.
In order to make this optimistic scenario a reality, the government must get down to
securing the necessary documentation and setting the projected route for the road
immediately, Bozic said.
He said that local communities have their part to play in ensuring that the project can
get underway quickly by making sure that the projected route is agreed on as soon as
possible.
PM's Pledge: Korosko Will Get Better Roads Soon
Prime Minister Janez Jansa has underlined traffic isolation as the main problem in
Korosko, and promised that the government would step up efforts to build a highspeed road connecting this northern Slovenian region to central and southern
Slovenia
Prime Minister Janez Jansa has underlined traffic isolation as the main problem in
Korosko, and promised that the government would step up efforts to build a highspeed road connecting this northern Slovenian region to central and southern
Slovenia.
Speaking to the press during the cabinet visit to Korosko on Wednesday, 9 November
Jansa said he had asked Transport Minister Janez Bozic and Environment Minister
Janez Podobnik to draw up a road-map for an expressway between Holmec on the
border with Austria and Arja vas near Celje.
Yet the Prime Minister also stressed that the implementation of the project before the
originally intended time depended largely on the cooperation with local communities
in setting the projected route.
"Experience shows...that this is the most difficult phase and cannot be dealt with realtime unless all factors strive towards a common objective," he said.
Transport Minister Janez Bozic said earlier in the day that Jansa's promise was
realistic, although it depends on a number of factors, including how successful
Slovenia was in phasing EU funds.
For Jansa, the region's second major problem is brain drain. He said it was crucial to
create quality jobs and new university programmes that would meet the requirements
of the region's development efforts.
Overall, the Prime Minister was upbeat about Korosko's potential, saying that "there
are potentials which can boosted with good programmes and EU funding."
Noting that industry accounts for two-thirds of the region's output, Jansa stressed that
there are plenty of opportunities in services, especially tourism.
However, he also stressed that industry should not be discounted, especially
woodworking, which is nearly extinct but has great potential.
BRANCH INFORMATION
Telco Watchdog Says Portability of Mobile Numbers on Track
Tomaz Simonic, the head of the Agency for Post and Electronic Communications, told
STA he was hopeful that the progress will convince the European Commission that
there is no need to act on the warning about portability that it issued in July
The head of the telecommunications watchdog has said that Slovenia looks set to
ensure the portability of mobile numbers by the end of the year. Meanwhile, fixedline numbers are to become portable my mid-2006.
Tomaz Simonic, the head of the Agency for Post and Electronic Communications,
told STA on Tuesday, 8 November he was hopeful that the progress will convince the
European Commission that there is no need to act on the warning about portability
that it issued in July.
According to him, technical discussions with the manager of the central database of
numbers and the operators are proceeding according to plan. "It has actually become
clear that technical coordination is urgent and necessary," he said.
The act on electronic communications commits the providers of publicly accessible
phone services to allow their subscribers to retain their number even if they change
the operator. The substantial costs must be covered by the phone companies
themselves.
Based on the EU-compatible act, passed on 9 August 2005, wireless providers are
obliged to implement the transferability by 31 December 2005, and fixed-line
operators by 30 June 2006 at the latest.
In October, nine mobile and fixed-line providers selected Avtenta.si and Telemach to
manage the central database.
Simonic's comments come on the margins of the "Telecommunications" conference, a
two-day event dedicated to telecoms technologies.
Conference Discussed Telecommunications Present and Future
Some 350 Slovenian and foreign guests gathered at a two-day international
"Telecommunications" conference
Some 350 Slovenian and foreign guests gathered at a two-day international
"Telecommunications" conference, which was launched on Tuesday, 8 November in
the seaside resort of Portoroz.
At a panel on the present and future of the sector, the acting head of Slovenia's
Agency for Post and Electronic Communication Tomaz Simonic outlined the situation
on the domestic market.
Bostjan Kosak, the deputy head of the Medinet telecommunication service provider,
commented by saying that the country's market is still not competitive enough.
He claimed the reason was "the lack of suitable measures by the agency", adding that
he expects the telecommunications watchdog to make more decisive moves in the
future.
The panel was also attended by Tomaz Berginc, head of Slovenia's largest ISP Siol,
Jaroslaw Ponder of the International Telecommunication Union, Lisbeth Harris of BT
Global Services and Hubert Froehlich from the telecommunication connections and
services company Stelkom.
The conference itself was opened by a lecture by Tomi Ahonen, an acclaimed author
of books on third-generation communications and a professor at the University of
Oxford.
His lecture centred on the s.c. digital communities which are to usher in a completely
new type of consumer.
He claimed that individuals belonging to such communities are increasingly oriented
towards mobile technologies that enable them to remain in contact with their peers.
He moreover believes that companies which wish to succeed in the world of
tomorrow need to adjust their business to what he termed the generation C (where C
stands for community).
Lukoil Execs Meet Economics Minister
According to the Economics Ministry, this was an introductory meeting, during which
Lukoil officials stated their interest in the Slovenian market
Representatives of Russian oil giant Lukoil met Slovenia's Economics Minister
Andrej Vizjak on Thursday, 10 November to express the company's interest in
entering the Slovenian market.
According to the Economics Ministry, this was an introductory meeting, during which
Lukoil officials stated their interest in the Slovenian market. There was no word about
specific projects, the ministry said.
The meeting was attended by Lukoil vice president Nikolai Chyorny, Robert Ferluga
of the Romanian subsidiary of Lukoil and Russian Ambassador to Slovenia Mikhail
Vanin.
Pharmacists Say New Bill on Drugs Is a Poison Pill
The Chamber of Pharmacy insists that drugs should be kept in pharmacies
Pharmacists are crying foul over the new bill on drugs, which would allow the sale of
over-the-counter drugs in specialist stores other than pharmacies.
The Chamber of Pharmacy insists that drugs should be kept in pharmacies. The bill,
which the government adopted on Thursday, 10 November is unacceptable, the
chamber's president Andreja Cufar said on Friday, 11 November.
Cufar criticised the government for failing to engage pharmacists in the drafting of the
bill, and rebuffed the government's claim that the changes would make drugs more
widely available and cheaper.
The unconvincing arguments suggest this is a political decision, she said, wondering
whether any analyses have been made to indicate that the current system was
unsatisfactory and in need of change.
The chamber insists that laxer sales of over-the-counter drugs will increase the risk of
poisoning and abuse in the absence of medical advice at purchase.
Cufar suggested that such specialised stores might be allowed to carry natural, herbal
medicine, but by no means synthetic medicinal products.
COMPANIES
HIT and Harrah's Entertainment Strike Deal
The deal will be presented to the public in detail when its technical and operational
aspects are finalised, which is expected within the next few weeks, the companies said
The Slovenian gaming company HIT and Harrah's Entertainment of the US have
concluded a deal on a mega gaming project in Slovenia, both companies said in a joint
press release on Monday, 7 November.
The deal will be presented to the public in detail when its technical and operational
aspects are finalised, which is expected within the next few weeks, the companies
said.
HIT spokesperson Tilen Majnardi meanwhile refused to comment on any other
questions regarding the agreement.
Top managers of the Nova Gorica-based HIT have returned from Las Vegas, where
they discussed the deal with the world's biggest casino operator the previous week.
The two companies were reported to be planning to build a EUR 800m worth mega
gaming and tourism centre in the western town of Nova Gorica. Each would
contribute half of the investment, and consequently hold a 50% stake in the joint
venture.
HIT chairman Branko Tomazic believes the project would allow the Slovenian
company to more than double the number of its clients (from 1.5m to 3.1m a year)
and raise revenues from EUR 240m to EUR 420m by 2008.
In July, Harrah's outlined to the Slovenian government its plans for what would be the
biggest greenfield investment in Slovenia. The company wanted to know whether the
government would be willing to relax tax legislation and lift restrictions on gaming
licenses.
Some three weeks ago, Prime Minister Janez Jansa reassured Tomazic that the
government stood ready to help the project get off the ground should HIT and
Harrah's Entertainment produce concrete guarantees.
Plans for New Renault Model Back on Track
The plans for the production of a new Renault model at Slovenian car maker Revoz
are back on track after successful adjustments were made to the car
The plans for the production of a new Renault model at Slovenian car maker Revoz
are back on track after successful adjustments were made to the car.
According to Novo mesto-based Revoz, Renault is now ready to proceed with the
production of a successor to its popular mini, Twingo.
The news comes three months after it was revealed that Renault had decided to go
back to the drawing board with its "X44 project" as it has been dubbed.
Revoz said on Monday, 7 November that Renault is convinced in the success of the
new vehicle, which is expected to hit the production line in 2007, a year later than
initially planned.
Renault is now ready to invest all its energy in the successful launch of the new car,
Revoz said in the statement.
The plans for a new model were taken back to the drawing board in August at the
behest of Renault president Carlos Ghosn, who asked that the company reexamine the
viability of the project for the entirety of its expected lifespan.
The request led to a number of touch-ups being made to plans for the car, especially
its design, Revoz said.
Moreover, Revoz announced that the efforts have also led to a significant cut in the
expected production costs because of lower prices for individual parts.
The project has been earmarked for state aid and Economics Minister Andrej Vizjak
told the press in October that the government is ready to provide the first instalment
of EUR 12.5m to Revoz.
Helios Profit Hurt by Oil Prices
Chemical group Helios generated a net profit of SIT 1.97bn (EUR 8.22m) in the first
half of the year
Chemical group Helios generated a net profit of SIT 1.97bn (EUR 8.22m) in the first
half of the year, down 10% year-on-year, on sales which were up 45% in the same
period to SIT 27.32bn (EUR 114.03m).
Helios said on Tuesday, 8 November that the lower net profit is a consequence of a
drop in operating profit, which amounted to SIT 1.99bn (EUR 8.3m). This was largely
due to the exceptional growth of raw material prices, especially those based on oil
prices.
These prices started surging in the last quarter of 2004, with similar trends and
conditions continuing into this year. Costs of material accounted for 56% of the net
sales in the first half of the year, compared to last year's 50%.
The group projects end-year sales of SIT 55bn (EUR 229.57m), which is up 36%
year-on-year and in line with the company plans. Operating profit is to amount to
around SIT 3.2bn (EUR 13.36m).
National Telco Publishes Upbeat Business Results
Telekom, Slovenia's state-owned telco, generated SIT 67.5bn (EUR 281m) in
operating revenues in the first nine months, up 7% on the same period last year, while
its operating profits rocketed 44% to SIT 10.3bn (EUR 42.9m)
Telekom, Slovenia's state-owned telco, generated SIT 67.5bn (EUR 281m) in
operating revenues in the first nine months, up 7% on the same period last year, while
its operating profits rocketed 44% to SIT 10.3bn (EUR 42.9m).
Meanwhile the entire Telekom group also increased its operating revenues by 9% to
SIT 122.2bn (EUR 510m) and boosted its operating profits by 35% to SIT 17.7bn
(EUR 73.8m).
The company's results were presented at the session of the supervisory board on
Tuesday, 8 November Apart from the parent company, which operates fixed line
services, the group also includes Mobitel, Slovenia's leading wireless carrier, and Siol,
the country's top Internet provider.
The board also proposed that the management convene a general assembly in January
2006 to elect a replacement for the outgoing supervisory board member Matjaz Jansa.
Jansa will leave the board due to incompatibility of his office with his position of the
acting head of the Directorate for Electronic Communications at the Economics
Ministry.
The board also gave the management a green light on establishing a new subsidiary,
called Teledat, which is to publish phone books and deal with database management
as of 1 January 2006.
Beverage Group Reports 170% Surge in Profit
Pivovarna Lasko made the profit on sales revenues of SIT 50bn (EUR 200m)
Slovenia's leading beverage group has reported a 170% surge in three-quarterly net
profit, which stood at SIT 4.3bn (EUR 18m). Pivovarna Lasko made the profit on
sales revenues of SIT 50bn (EUR 200m).
According to a press release from the group, beverages sales were down 1.7% to 3.87
million hectolitres (around 42% of that was in beer sales) in the first nine months of
this year. This is better than the envisaged 5% drop.
Most of the companies in the group, including Ljubljana-based brewery Pivovarna
Union, mineral water company Radenska and fruit beverages producer Fructal, made
a profit in the first nine months of this year, Lasko said on Tuesday, 8 November.
Affiliated companies made for SIT 2.5bn (EUR 10.4m) of the group's total profit.
The press release adds that sales measured in volumes were on par with last year on
the domestic market, while there was a slight drop in sales on foreign markets due to a
silent boycott of Slovenian products in countries of the former Yugoslavia.
Domestic Bidders Interested in Steelworks, PM Says
Prime Minister Janez Jansa has revealed that a consortium of domestic companies
has appeared which seems to be interested in taking part in the second phase of
privatisation of the Slovenian Steelworks
Prime Minister Janez Jansa has revealed that a consortium of domestic companies has
appeared which seems to be interested in taking part in the second phase of
privatisation of the Slovenian Steelworks.
Jansa told the press the government learnt about the potential consortium during a
visit to the Korosko region on Wednesday, 9 November and added that it would be
happy if such an offer were indeed made.
According to him, the final decision about the privatisation of the steelworks has not
been made yet. The issue was also discussed during the visit to Metal, a maker of
specialty steels.
Although he welcomed the prospective offer, he was quick to point out that the
steelworks are crucial for the region, so price would not be the ultimate criterion in
the selection of a bidder.
He moreover said that the business is lucrative and competitive at this point in time:
prices on the global markets are up, a trend which Jansa said was set to continue over
the coming years.
"This is no longer a loss-making business that needs restructuring, which was the case
a few years ago. This must be taken into account in privatisation," he stressed.
Vogel&Noot Further Raises Bid for Saturnus Embalaza
Vogel&Noot published its initial bid on 3 October, offering SIT 36.500 (EUR 152.35)
a share
Austrian company Vogel&Noot Verpackungstechnik once again raised on Thursday,
10 November its initial bid to SIT 43,000 (EUR 179,48) a share in a takeover bid for
the Slovenian packaging maker Saturnus Embalaza.
This is the second time Vogel&Noot decided to up its offer, thus extending the
takeover deadline to 17 November.
The move comes after meeting the state-run Restitution Fund Management (SOD)
and Pension Fund Management (KAD), which are willing to sell their shares of the
Ljubljana-based company in line with the offer.
Vogel&Noot published its initial bid on 3 October, offering SIT 36.500 (EUR 152.35)
a share. The Austrian producer of metal food packaging also acquired additional
15.249% of all shares, raising its stake in Saturnus Embalaza to nearly 41%.
After holding talks with several Saturnus shareholders, representatives of the Austrian
company decided on 23 October to raise their bid for the first time to SIT 41,000
(EUR 171.13) a share.
With the latest offer Vogel&Noot did not keep its word, for it had said that it did not
intend to raise the bid any further. They felt that EUR 171.13 was already a very
generous offer, especially because of Saturnus business results and the situation on
the metal food packaging market.
CCIS Chief Says Slovenian Companies Have Quality
Slovenia currently has 1,556 companies with an ISO certificate, including over 800
with the ISO 14.001 quality certificate, which means that the quality of Slovenian
companies is high
While Slovenian companies fulfil quality standards, a lot needs to be done in the field
of innovation and corporate connections, the head of the Slovenian association for
quality, Jozko Cuk, said on Thursday, 10 November in Portoroz.
Cuk, speaking at the 14th annual conference of the association, believes that a single
company cannot successfully compete in today's globalised world, so Slovenia should
facilitate national and regional clusters to secure a dynamic growth of its economy.
"Slovenia currently has 1,556 companies with an ISO certificate, including over 800
with the ISO 14.001 quality certificate, which means that the quality of Slovenian
companies is high", Cuk added.
He also said that low inflation and a favourable import-export balance clearly show
that Slovenia has become a developed country. According to him, the country will
soon fulfil all criteria for adopting the euro.
Cuk also explained his views on the necessity of the proposed government social and
economic reforms to increase the competitiveness of the Slovenian economy. He said
that the measures are necessary, but must be adopted through social dialogue.
Regarding innovation, he claimed that today's knowledge-based society is entirely
reliant on successful diffusion of knowledge, while its competitiveness is dependent
on the ability to innovate and promote services.
This year's conference was entitled "Innovation and Change - the Foundations of
Sustainable Success".
Chief of Power Producer Defends Competition in Slovenia
The competition on the Slovenian electricity market is on a par with the EU average,
the chairman of Slovenia's leading power producing company has said
The competition on the Slovenian electricity market is on a par with the EU average,
the chairman of Slovenia's leading power producing company has said.
According to Joze Zagozen of Holding Slovenske elektrarne (HSE), the European
Commission has confirmed this view.
Speaking on the second day of the Energy 05 conference in Ljubljana, Zagozen said
that the HSE is not abusing its dominant position on the market at the expense of
other companies on the electricity market.
He also stressed the importance of establishing competent regulatory agencies that
would prevent companies from abusing their monopolies on the market.
Zagozen added that he supported the idea of establishing a second energy holding in
order to bolster competition, but only if both holdings were competitive and effective.
Meanwhile, the general manager of Austrian power producer Verbund Hans Heider
explained that the liberalisation of the European electricity markets is made up of two
simultaneous process: deregulation and integration.
Haider called for greater integration of the European electricity market, saying that
the goal should be to overcome bottlenecks.
Cabinet Establishes Privatisation Working Groups
Each group would have five to six experts
The cabinet has appointed four working groups that will be in charge of preparing
plans for the privatisation of major state-owned companies, a government
spokesperson told the press after a cabinet session on Thursday, 10 November.
According to Valentin Hajdinjak, one of the working group will prepare a plan for the
privatisation of telco Telekom Slovenija and another for the privatisation of NKBM,
Slovenia's second-largest bank.
Moreover, another group would be in charge of drafting a plan for the sale of the
stakes held by the state-run Restitution Fund and Pension Management Fund in
Slovenian companies.
The fourth working group would draft plans for privatisation in electricity production
and distribution, Hajdinjak said.
According to him, each group would have five to six experts. The groups will have to
send their proposals to the government by 23 December, except for the group that will
be working on the withdrawal of state-run funds from the economy, which will have
until 31 March 2006 to draft its plan.
The government is convinced that Slovenia must undertake a second phase of
privatisation in order to improve efficiency in the economy, Hajdinjak added.
DARS Takes Out EUR 41m Loan to Fund Motorway Construction
The Slovenian Motorway Company (DARS) has taken out a SIT 10bn (EUR 41.7m)
loan to fund the construction of two motorway sections in the northeast and southwest
of the country
The Slovenian Motorway Company (DARS) has taken out a SIT 10bn (EUR 41.7m)
loan to fund the construction of two motorway sections in the northeast and southwest
of the country, the company said on Friday, 11 November.
DARS will use the 18-year credit, which it obtained from the Austrian banks Bank
Austria Creditanstalt and Hypo Alpe Adria Bank, for the sections Koper-Izola (SW)
and Hajdina-Ptuj (NE).
The loan is an integral part of the new funding policy at DARS since the government
decided earlier this year to cut state spending on motorway construction and urged
DARS to seek loans and issue bonds in order to raise the money it needs.
In mid-October, DARS raised SIT 10.2bn (EUR 42.57m) with a heavily oversubscribed issue of 15-year bonds in a non-public offering, the third bond issue since
July 2004.
KD Sells 7.6% of Mercator
KD Group, which holds 10.76% of Mercator, said its asset management arm KD
Investments had sold 7.6% of Mercator for SIT 9.3bn (EUR 38.81m); at an average
price of SIT 38,067 (EUR 158.88) per share
After months of speculation about what it intends to do with its stake in grocer
Mercator, investment group KD Group announced on Friday, 11 November it had
sold a 7.6% stake in Slovenia's largest retailer. A part of the stake was snapped up by
beverages group Pivovarna Lasko, which continues to increase its stake in the grocer.
KD Group, which holds 10.76% of Mercator, said its asset management arm KD
Investments had sold 7.6% of Mercator for SIT 9.3bn (EUR 38.81m); at an average
price of SIT 38,067 (EUR 158.88) per share.
Meanwhile, Lasko revealed that it acquired 4.27% in Mercator for SIT 5.2bn (EUR
21.7m); at SIT 38,050 (EUR 158.81) per share. The stake was part of the shares sold
by KD Group.
According to Lasko, the purchase is part of its portfolio investment activities. The
group refused to provide additional details.
The purchase comes after Lasko struck a deal in August with the state-run Restitution
Fund (SOD) to buy 13.74% of Mercator.
However, new Lasko chairman Bosko Srot explained that the group was not yet the
official owner of the 13.74% stake, meaning that it officially holds only the 4.27%
stake in Mercator.
KD Group said it would provide further information on its decision to sell a stake in
Mercator on Monday, 14 November.
Economics Minister: Lukoil Officials Expressed Interest in Petrol
Economics Minister Andrej Vizjak has told STA that representatives of Russian oil
giant Lukoil expressed an interest in acquiring a stake in Slovenian fuel trader Petrol
Economics Minister Andrej Vizjak has told STA that representatives of Russian oil
giant Lukoil expressed an interest in acquiring a stake in Slovenian fuel trader Petrol.
Vizjak's comments came in Mokrice on Friday, 11 November, a day after he met with
representatives of the Russian company, one of the world's biggest oil companies.
According to Vizjak, the state does not see a need to sell Petrol to raise cash, but
rather for the value added that this may create for the economy.
He pointed out that Slovenia does not have an operational refinery at the present and
relies on imports for all its petrol needs.
However, if there is an opportunity to get the refinery at Lendava up and running
again and the Russian company could supply us with oil under favourable conditions,
this would represent value added for the economy, he said.
He said that Slovenia was open to further talks with the Russian company and added
that he told the Lukoil representatives the state does not directly control Petrol, but
that a 28% share is owned by the state-run Restitution Fund (SOD) and Pension Fund
Management (KAD).
Vizjak's comments prompted investors to go on a buying spree, pushing Petrol's share
3.34% higher to SIT 62,015 (EUR 258.77) on 11 November.
Bajuk Says Two More Privatisation Groups to Be Established
Bajuk told the press that working groups would be set up for overseeing privatisation
in Slovenia's largest bank, NLB, and Slovenia's largest insurer, Zavarovalnica
Triglav
Finance Minister Andrej Bajuk has said that the government intends to establish two
additional privatisation working groups on top of the four it set up on Thursday, 10
November.
Bajuk told the press in Ljubljana on Friday, 11 November that working groups would
be set up for overseeing privatisation in Slovenia's largest bank, NLB, and Slovenia's
largest insurer, Zavarovalnica Triglav.
His announcement comes a day after the cabinet appointed four working groups that
will be in charge of preparing plans for the privatisation of telco Telekom Slovenija,
Slovenia's second-largest bank, NKBM, the sale of the stakes held by the state-run
Restitution Fund and Pension Management Fund in Slovenian companies, and the
privatisation of the electricity sector.
The aim is to come up with suitable plans for the privatisation of key Slovenian
companies and financial institutions by the end of the year, Bajuk said.
Explaining the creation of four privatisation working groups, government
spokesperson Valentin Hajdinjak said that the government was convinced Slovenia
must undertake a second phase of privatisation in order to improve efficiency in the
economy.
Lasko Boss' Retirement Marks End of Era
Tone Turnsek is being replaced in the job by his deputy, Bosko Srot
One of Slovenia's longest-serving managers bowed out on Friday, 11 November after
24 years at the helm of Slovenia's leading beverages group, Pivovarna Lasko. Tone
Turnsek is being replaced in the job by his deputy, Bosko Srot.
Turnsek turned 65, meeting the requirements for retirement. He leaves the job after
turning the once local brewery, whose beer was favoured predominantly in the
northeastern Slovenian region of Stajersko, into a regional beverages heavyweight.
When he took over the company, Pivovarna Lasko was producing 700,000 hectolitres
of beer annually; today, that number has nearly tripled, while the group also produces
around 2.5m hectolitres of other beverages, including soft drinks.
Turnsek said that he is leaving Lasko - where he worked for over 40 years in total with a heavy heart. "Nevertheless, I'm leaving a happy man, as I firmly believe that
the company will continue to grow."
Meanwhile, his successor, who was appointed by the supervisory board in August,
pledged to work on trying to fill Turnsek's shoes. "We are aware that the expectations
of our customers, owners and other partners are great. Our task is to remain a
trustworthy partner and to bolster our position on the market," Srot said.
Lasko reported a 170% surge in three-quarterly net profit, which stood at SIT 4.3bn
(EUR 18m). The group made the profit on sales revenues of SIT 50bn (EUR 200m).
Economics Minister Surprised at Croatian Arbitration Proposal
Economics Minister Andrej Vizjak said he was surprised by Croatia's decision to take
its dispute with Slovenia on undelivered electricity from the Nuclear Power Plant
Krsko (NEK) to the International Centre for Settlement of Investment Disputes
(ICSID) in Washington
Economics Minister Andrej Vizjak said he was surprised by Croatia's decision to take
its dispute with Slovenia on undelivered electricity from the Nuclear Power Plant
Krsko (NEK) to the International Centre for Settlement of Investment Disputes
(ICSID) in Washington.
According to Vizjak, the two countries should settle the issue in bilateral talks. He
added that he and Croatian counterpart Branko Vukelic had agreed on Friday, 11
November in Mokrice that Vukelic would send a proposal to the Croatian electricity
grid operator HEP and the Croatian government that the dispute be settled in bilateral
talks.
"This is why I am extremely surprised by the news that Croatia had proposed
arbitration. We should seek all paths for a bilateral agreement before opting for
arbitration," Vizjak told STA on Saturday, 12 November.
HEP has filed for an arbitration procedure at the ICSID over electricity that it says
Slovenia failed to deliver from the jointly-owned NEK after the two countries signed
an agreement on the plant in 2002.
HEP wants US$ 53.7m in compensation for the power it says Slovenia failed to
deliver from 1 July 2002, when Croatia ratified the agreement, to 18 April 2003, when
Slovenia started supply electricity from NEK to Croatia.
Croatia says Slovenian delays in ratifying the agreement caused it damages because of
the undelivered electricity. However, Slovenia claims that it was willing to start
supplying electricity to Croatia in 2002 but that Croatia failed to reply to a Slovenian
offer.
Moreover, Slovenia believes that the damage claim is excessive and that Croatia has
also included a period during which it asked for a deference in the start of supply.
The two countries signed an agreement on the status of the jointly-constructed NEK
in late 2001 with which they confirm they are equal owners of the Slovenian-based
plant and settle a number of past disputes regarding the facility.
SLOVENIA IN BRIEF
Slovenia to Tackle Issues with Croatia during EU Accession Talks
Foreign Minister Dimitrij Rupel has said that Slovenia wants to resolve open issues
with Croatia, including the border, in the period when Croatia negotiates the terms of
EU membership. Rupel sad on Monday, 7 November that this was his message in
talks with the EU's foreign policy chief Javier Solana and Benita Ferrero-Waldner, the
European commissioner for external relations.
Ivan Sisinger Appointed Head of the ZPIZ Council
The council of the Pension and Disability Insurance Institute (ZPIZ) elected
government representative Ivan Sisinger of the Pensioners' Party (DeSUS) as its new
head at the maiden session on Tuesday, 8 November. Trade union representative
Milan Skafar was elected his deputy. In line with the latest amendments to the
pension and disability insurance act, the council replaces the former assembly and
management board as the ZPIZ governing body.
Financial Expert Resigns over Two Cohesion Regions Decision
Mojmir Mrak has resigned as a member of the government negotiating team for the
EU's 2007-2013 spending plan over disagreement with a government decision to seek
division of the country into two cohesion regions. Mrak said he did not agree with the
decision because it would be unfavourable to Slovenia in talks on the EU budget
framework.
PM Jansa Not Surprised by European Commission's Appeal to Croatia
Prime Minister Janez Jansa has said he was not surprised by the European
Commission's appeal to Croatia to double efforts towards mutually acceptable
solutions of unresolved border disputes with Slovenia, Bosnia-Herzegovina and
Serbia and Montenegro. Jansa told the press on Wednesday, 9 November it was only
natural that political criteria in the EU negotiation framework should include a
commitment or instructions to the EU candidate country to resolve problems during
the accession talks.
Changes to Classified Information Act to Improve Screening
The cabinet has adopted changes to the classified information act that would improve
screening procedures for persons accessing classified information and establish a
regulatory authority. The proposed law, which has been sent to parliament for
adoption in regular procedure, is aimed at improving security for state and
international classified information, the Government PR and Media office said on
Thursday, 10 November.
Government Moves to Curb Wages of Heads of Public Institutions
The government adopted amendments to the regulation on wages for heads of public
institutions in a bid to ensure greater transparency in the field, Public Administration
Minister Gregor Virant said on Thursday, 10 November.
One Commission to Probe Sales by State-Run Funds
Parliamentary Speaker France Cukjati has decided that a single commission - the one
proposed by the coalition - would probably investigate the disputed sale of the stakes
that state-run funds KAD and SOD held in Mercator.
Drnovsek Outlines Status Plan in Kosovo
Slovenian President Janez Drnovsek outlined his Kosovo status plan during a visit to
the restive province on Saturday, 12 November. Drnovsek met representatives of the
UN Mission to Kosovo (UNMIK) and Kosovo President Ibrahim Rugova, while also
visiting several Serb Orthodox monasteries.