Slovenia Business Week no. 49, December 5th, 2005 Table of Contents:
Slovenia Business Week no. 49, December 5th, 2005
Table of Contents:
PM Jansa Disappointed with Outcome of Euro-Mediterranean Summit ............................... 6
EP Committee Confirms Report on Border Traffic at the EU's Borders ............................. 11
Parliament Passes Resolution on Consumer Protection Programme ................................... 14
Committee Supplements List of Shops That Can Open on Sunday ..................................... 23
Hit Chairman Confident about Government's Support for Gaming Deal ............................ 29
2005 Preseren Award Goes to Author Dekleva and Director Godina ................................. 33
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HEADLINES
Book Fair Opens with Award Ceremony
The opening of the Book Fair was also an opportunity to give out several awards for outstanding achievement in publishing, printing, literature and book design
The 21th Book Fair was opened with an award ceremony at the Cankarjev dom art centre on
Tuesday, 29 November. The key speaker Boris Pahor, acclaimed Slovenian writer from
Trieste, used the occasion to express concern for the evaporating language awareness.
As a representative of the Slovenian minority in Italy, Pahor observed that the functioning of
Slovenian publishers abroad did not suffice to preserve the national spirit. He believes that the priority of culture should be to create unified identity.
The opening of the Book Fair, which closed on 4 December, was also an opportunity to give out several awards for outstanding achievement in publishing, printing, literature and book design.
The Schwentner Award for the advancement of publishing, book selling and promotion of readership culture went to Franc Bole, the director of the Catholic publishing house Ognjisce.
Bole is credited with starting the monthly Ognjisce 40 years ago, in an environment adverse to religion.
Best literary debut award went the collection of poems "Nizki toni" (Low Key) by Stanka
Hrastelj. Barbara Jursic Terseglav was awarded for her translation of Jose Saramago's acclaimed novel "The Gospel according to Jesus Christ". The award is given out by the
Association of Slovenian Literary Translators.
Best book design awards were bestowed to six volumes of diverse genres, among them
Goethe's "Faust", designed by Veronika Saje for the publisher Sanje and "Svetovne pravljice"
(Fairy Tales of the World), designed by Peter Skalar and illustrated by Alenka Sottler for
Nova Revija.
Moreover, prior to the opening of the fair, a ceremony was held to celebrate the 45th anniversary of the "Bralna znacka" reading competition, with President Janez Drnovsek addressing the participants.
Drnovsek praised the long tradition of the competition which promotes literature in primary schools. He said it was "hard to imagine how many children have participated in the competition and how many books have been read".
The president believes that by influencing values, reading forms one's view of the world. He said the impact of the books we read was hard to estimate, however, he considers it great.
"Books help Slovenians become more beautiful persons," he concluded.
Education Minister Milan Zver used this occasion to underscore the importance of literature in spite of the dominant new media. "Books are the glasses enabling us to observe the world,"
Zver said.
"Bralna znacka" was founded by teacher Stanko Kotnik and writer Leopold Suhodolcan.
Today it comprises 140,000 young readers and 5,000 tutors promoting readership through talks, clubs, projects and gazettes.
The Book Fair, organised by the Printing and Media Association at the Chamber of
Commerce and Industry of Slovenia and the Cankarjev dom arts centre, featured around 80 publishers. Accompanying events included public debates at the fair's café, forums of publishers, presentations of new books, shows for children and young people, to name but a few.
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Slovenian House in Brussels Opens Its Door
The three-storeyed facility on a surface area of 250 sq. meters is located in Brussels' Jourdan
Square, close to EU institutions
An institution promoting Slovenia and Slovenians opened its doors in Brussels on Thursday, 1
December.
The three-storeyed facility on a surface area of 250 sq. meters is located in Brussels' Jourdan
Square, close to EU institutions. It is expected to host presentations of Slovenian companies, various seminars, debates and exhibitions of Slovenian artists. Moreover, the Slovenian
House also has a restaurant with traditional Slovenian cuisine.
The House, which is a private project, will be open to all Slovenians in Brussels and their friends from abroad, the head of the centre Sebastjan Stjepanovic has told STA.
The majority owner of the House is businessman Davorin Lozej, who also owns several restaurants and casinos in Slovenia, Stjepanovic added.
The idea to have a Slovenian House in Brussels, which goes back several years, is the brainchild of Boris Cizelj, the head of the Brussels-based Slovenian Business and Research
Association (SBRA).
However, the Slovenian government established in October that it could not fund such a centre, therefore the funding of the project was handed over to Lozej, Stjepanovic explained.
Other European countries have their "houses" in Brussels too. Since such projects are rather expensive, they are rarely funded by the countries themselves.
Mercator Opens New Shopping Centre in Sarajevo
Slovenian retailer Mercator opened a new shopping centre in Sarajevo, a SIT 3bn (EUR
12.5m) investment designed to increase its footprint in Bosnia-Herzegovina and raise its currently small market share
Slovenian retailer Mercator opened a new shopping centre in Sarajevo, a SIT 3bn (EUR
12.5m) investment designed to increase its footprint in Bosnia-Herzegovina and raise its currently small market share.
The 9,912 sq. metre shopping mall contains a supermarket, 11 smaller retail outlets and a
1,581 sq. metre gym, labelled by Mercator as its gift to the people of Dobrinja, the Sarajevo borough.
Mercator board member Stanislav Brodnjak, who inaugurated the facility on Thursday, 1
December, told the press that Mercator wants to become the largest retail chain in the country.
To achieve that, Mercator plans to open at least six more shopping centres until 2008, including in Mostar, Banjaluka, Zenica, Bihac, Bijelina and Doboj, to raise its market share from the current 2.1%.
According to Mercator BiH director Mensud Lagumdzija, Mercator has so far spent 120 million convertible marks (EUR 61m) on investments in Bosnia, a figure likely to double by the end of 2008. This makes Mercator the single largest investor here, he said.
Mercator BiH already has shopping centres in Sarajevo and Tuzla, as well as a supermarket in the capital. In the first nine months of the year it posted sales of SIT 8.6bn (EUR 35.9m).
The opening in Sarajevo was the first stop on a three-stop tour, as the company opened two more shopping centres in Serbia-Montenegro on 2 and 3 December.
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INTERNATIONAL COOPERATION
Jansa Calls for Inclusion of Balkans in Barcelona Process
Prime Minister Janez Jansa called for the inclusion of countries of the Western Balkans in the
Euro-Mediterranean partnership as he addressed a summit of EU and Southern
Mediterranean countries in Barcelona
Prime Minister Janez Jansa called for the inclusion of countries of the Western Balkans in the
Euro-Mediterranean partnership as he addressed a summit of EU and Southern Mediterranean countries in Barcelona on Monday, 28 November.
According to Jansa, the Barcelona process needs to be given fresh impetus, which is why
Slovenia "is of the opinion that it should be enlarged by the countries of the Western
Balkans".
Highlighting the recent increase in the number of illegal immigrants from Northern Africa trying to enter the EU, Jansa said that the EU has not yet found an "adequate response to the challenges brought about by illegal or legal migration".
In his opinion, the EU needs to adopt a multi-dimensional approach to the problem, with the priority being to bridge the developmental gap between the north and south Mediterranean.
"The establishment of the Euro-Mediterranean free trade area by 2010 will have a key role in this respect," he said.
Jansa said that Slovenia wants to contribute to the process. "Slovenia sees its contribution, among other things, in the construction of the regional network of transport infrastructure," he said.
"As a maritime country, we do not only acknowledge economic advantages of being situated by the sea but also the responsibility we bear for the sustainable development of our part of the Mediterranean," he added.
Cukjati Receives New Spanish and Irish Ambassadors
Speaker France Cukjati had separate meetings with the new Spanish Ambassador Carmen
Fontes Munoz and Irish Ambassador Patrick McCabe
Speaker France Cukjati had separate meetings with the new Spanish Ambassador Carmen
Fontes Munoz and Irish Ambassador Patrick McCabe on Monday, 28 November. While EU issues topped the agenda with the Spanish diplomat, economic issues were in the focus of his meeting with McCabe.
Cukjati and Fontes Munoz agreed that the relations between Spain and Slovenia were good and friendly within the EU and NATO. Moreover, the countries share common interests in the
Mediterranean region and agree on EU issues.
"EU is a big project that requires time to consolidate. With the EU constitution not being adopted, we are entering a new era, while the integration of national parliaments is experiencing a general consensus," Cukjati stressed as quoted by the National Assembly.
He added that the new EU member states also feel the need to intensify the internal EU dialogue towards further plurality, democracy, reciprocity and solidarity.
Meanwhile, Cukjati and the Irish ambassador agreed on the importance of a solidly developed economy for the state. Ireland has achieved a remarkable level of economic development.
According to Cukjati, it therefore "sets a great example for Slovenia".
McCabe was interested in the role of the National Assembly and the National Council in the implementation of economic and other reforms in Slovenia.
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PM Jansa Disappointed with Outcome of Euro-Mediterranean Summit
"The Euro-Mediterranean summit has been faced with the reality of the space in which it functions," Prime Minister Janez Jansa said at the end of a two-day summit of EU and
Southern Mediterranean Countries in Barcelona
"The Euro-Mediterranean summit has been faced with the reality of the space in which it functions," Prime Minister Janez Jansa said at the end of a two-day summit of EU and
Southern Mediterranean Countries in Barcelona on Monday, 28 November.
"In addition to common aspirations, the space in question is characterised by great differences that have also emerged in the process of harmonising documents, the statement upon the 10th anniversary of the Barcelona process and the statement on terrorism," Jansa said.
"The summit was marked by the central conflict within this space, namely the Israeli-Arab conflict," Jansa said. Other topics on the agenda, such as economic cooperation and environmental issues were therefore overshadowed by this one.
"Lately, one of the central issues were the illegal migrations that Europe faces without adequate solutions. The adequate solution could very well be accelerated economic cooperation and development," the PM said on the margins of the meeting.
Regional Partnership to Draft Agreement on Role of Parliaments
Parliament speakers from Austria, Slovenia and the Visegrad Group (the Czech Republic,
Hungary, Poland and Slovakia) decided to prepare guidelines for an agreement whose aim would be to strengthen the role of national parliament
Parliament speakers from six Central European countries, including Slovenia's France
Cukjati, agreed in Bratislava on Thursday, 1 December that the role of the parliaments within the EU should be strengthened.
Parliament speakers from Austria, Slovenia and the Visegrad Group (the Czech Republic,
Hungary, Poland and Slovakia) decided to prepare guidelines for an agreement whose aim would be to strengthen the role of national parliaments, Cukjati told STA.
With the agreement, the European Commission and the EU Council would be obliged to include national parliaments into the EU's decision-making processes and legislation preparation, as envisaged by the EU constitution, the ratification of which has come to a standstill.
Austria has promised to make an effort for the agreement to be adopted during its EU presidency in the first half of 2006, Cukjati said. Moreover, he added, a consensus should be reached by all national parliaments of the EU members, which are to meet in Copenhagen in
June 2006.
Parliament speakers of the regional partnership as well as from Romania and Bulgaria also discussed the possibilities for cooperation between the parliaments.
The Regional Partnership is an informal group serving as a forum for the six Central
European countries to discuss EU topics of common interest, especially further enlargement and relations with neighbouring countries.
Drnovsek Stresses Importance of EU Prospects at Forum in Kiev
In his address at the establishment of the "Community of Democratic Choice" forum,
Drnovsek also said that the ratification process of the EU constitution must continue
President Janez Drnovsek emphasised at a founding of a forum designed to promote democracy in Kiev on Friday, 2 December the importance of European prospects which unite all EU member states, the president's delegation told STA.
In his address at the establishment of the "Community of Democratic Choice" forum,
Drnovsek also said that the ratification process of the EU constitution must continue.
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The president feels that an agreement on the EU's next spending plan must be reached, pointing out that a balance between effective economic reform and social security was of utmost importance.
Drnovsek also stressed that the EU enlargement should prevent the forming of two Europes, a rich one with a high level of security and quality of life on one side, and a poor one on the other.
The president travelled to Ukraine's capital on 1 December, when he met Javier Solana, the
EU's foreign policy chief, who attended an EU-Ukraine summit in Kiev.
The pair discussed the EU integration of Southeastern European countries, the situation in
Serbia-Montenegro, the future status of Kosovo, and the EU's 2007-2013 financial plan, the president's office has said.
After the forum, to which Drnovsek was invited by his Ukrainian counterpart Viktor
Yushchenko, he also held bilateral talks with several of the nine presidents attending the event, including Mikhail Saakashvili of Georgia.
The establishment of the forum for the democratisation of the Baltic-Black Sea-Caspian region was proposed jointly by Yushchenko and Saakashvili in August.
The idea was to stabilise democracy and strengthen civil society as prerequisites for the region's economic development.
All leaders from the Baltic-Black Sea-Caspian region were invited to attend in addition to leaders from partner countries from Eastern Europe, the Balkans, the Caucasus and Euro-
Asian region.
Russia, the EU, the US, the UN, NATO and the OSCE have also been invited either as guests or observer countries and organisations.
Meeting Examines Ways to Promote Business Diplomacy
Economics advisors at Slovenian diplomatic missions have gathered in Ljubljana for a meeting hosted by the Economics Ministry to discuss ways to bolster Slovenia's business diplomacy
Economics advisors at Slovenian diplomatic missions have gathered in Ljubljana for a meeting hosted by the Economics Ministry to discuss ways to bolster Slovenia's business diplomacy.
The meeting on Friday, 2 December was also attended by Foreign Minister Dimitrij Rupel and Economics Minister Andrej Vizjak. In his address, Rupel stressed that diplomacy is an important tool for promoting Slovenian business interests abroad.
Rupel, who is the acting OSCE chairman, said that Slovenia's stint as OSCE chair this year has resulted in the creation of economic opportunities for the country in the Balkans,
Caucasus and Central Asia.
Meanwhile, Vizjak said that economic advisors at Slovenian missions are a key component of the programme to help Slovenian companies go global and to promote foreign investment.
"Reducing the entry costs and the risks associated with entering new markets are the main priorities for Slovenian companies," Vizjak explained.
He said the government was working to upgrade the current business diplomacy services by improving business consultancy and intelligence services for small and medium-sized companies, while providing better lobbying services for large companies.
Speakers from Central Europe Stress Need for Solidarity in EU
The parliament speakers from Austria, Slovenia and the Visegrad Group (the Czech Republic,
Hungary, Poland and Slovakia) used the meeting to discuss the involvement of national parliaments in EU affairs
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Parliamentary speakers from six Central European countries, including Slovenia's France
Cukjati, agreed in Bratislava on Friday, 2 December that the EU must keep in mind the principle of solidarity as it seeks an agreement on the 2007-2013 spending plan.
"I have the feeling that this principle is being overlooked and that the biggest issue is in the relationships between the East and West," Cukjati said after the second and final day of the meeting.
The parliament speakers from Austria, Slovenia and the Visegrad Group (the Czech Republic,
Hungary, Poland and Slovakia) used the meeting to discuss the involvement of national parliaments in EU affairs.
They agreed on Thursday, 1 December that he role of national parliaments within the EU needs to be strengthened. In this light, they decided to prepare guidelines for document whose aim would be to strengthen the role of national parliaments.
With the agreement, the European Commission and the EU Council would be obliged to include national parliaments into the EU's decision-making processes and the drafting of legislation, as envisaged by the EU constitution, the ratification of which has come to a standstill.
Austria promised to strive for the agreement to be adopted during its EU presidency in the first half of 2006.
Meanwhile, Cukjati used the meeting to hold bilateral meetings with his counterparts from
Central Europe. In his assessment of the meeting, Cukjati said: "The regional group has really caught on at the level of parliamentary speakers."
The meeting in Bratislava was also attended by National Council President Janez Susnik.
Slovenian, South Korean FMs Agree on Efforts to Bolster Ties
Slovenian Foreign Minister Dimitrij Rupel and South Korean Minister of Foreign Affairs and
Trade Ban Ki-moon have agreed that there remains significant untapped potential in ties between their countries
Slovenian Foreign Minister Dimitrij Rupel and South Korean Minister of Foreign Affairs and
Trade Ban Ki-moon have agreed that there remains significant untapped potential in ties between their countries.
After their meeting in Ljubljana on Sunday, 4 December, the pair said that relations were excellent, with significant progress made since the two countries established ties in 1992.
However, they stressed that there was still significant potential to upgrade cooperation.
Addressing a joint press conference, Rupel said that relations between Slovenia and South
Korea were trouble-free.
The two countries are mutual advocates of each other in international organisations, he said, citing their candidacies for the two-year membership of the UN Security Council as an example of this.
According to him, the meeting produced an agreement that efforts should be undertaken to bolster ties on all fronts. He said that the countries are planning to increase the number of bilateral political and business visits in the future.
Ban labelled the economy, energy, science and technology, and culture as areas with the biggest potential for expanding cooperation. There is a lot that can be done given the potential, he said.
Ban's official visit to Slovenia comes ahead of the opening of the 13th OSCE ministerial meeting in Ljubljana, which South Korea is to attend in the capacity of an OSCE partner country.
South Korea is trying to learn how the OSCE's experiences could be applied to Asia, Ban told the press.
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Other international topics were also on the agenda of the Rupel-Ban meeting, with special attention paid to relations between South and North Korea, recent developments in the EU and the situation in the Balkans.
Speaking about North Korean disarmament, Ban said that South Korea is in the midst of bilateral talks with North Korea. He said he was hopeful that a bilateral dispute between the
US and North Korea over US financial sanctions would not endanger the success of six-party talks on North Korean disarmament.
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EUROPEAN UNION
First Impressions About EU Budget Proposal Positive, Jansa Says
Speaking about the proposal Britain sent at the weekend to the member states, Jansa said:
"Our first assessments are that this is a positive development, if nothing else because we finally got a proposal and we can begin negotiations."
Prime Minister Janez Jansa has said that Slovenia's first impressions about the informal proposal by Great Britain for the 2007-2013 spending plan are positive.
Speaking about the proposal Britain sent at the weekend to the member states, Jansa said:
"Our first assessments are that this is a positive development, if nothing else because we finally got a proposal and we can begin negotiations."
"The proposal is fairly close to what was hailed as being a possible compromise by most member states in June in Luxembourg," Jansa said on the margins of the summit of EU and
Southern Mediterranean countries in Barcelona on Monday, 28 November.
Jansa would not go into greater detail about the plan, saying that Slovenia still needs to work out the exact figures.
However, he added that the proposal shows that Great Britain is willing to compromise in part on its position on the rebate and the Common Agriculture Policy.
Jansa also said that the proposal envisages a small cut in spending on development aid.
"However, we are confident that the negative effect of this can be neutralised in talks on other items."
According to him, progress in EU budget talks will now depend on how well the EU will take advantage of any room for manoeuvre in talks.
He admitted that countries that want a deal before the end of the year, including Slovenia, are in a vulnerable position. "Other countries, including those in charge of the negotiations, are aware that we are in a hurry," he said.
Jansa would not venture a guess about the possibility that an agreement could be hammered out at December's summit.
The proposal, said Jansa, has been met with a mixed response: while some countries are fairly pessimistic, for example France, others are more optimistic given that Britain's proposal has exceeded expectations.
Jansa held talks on Britain's proposal with a number of counterparts from the EU on the margins of the meeting in Barcelona.
Slovenia Implementing EU Research Guidelines
The EU Competitiveness Council confirmed a partial common approach to the proposed 7th framework research programme for 2007-2013
The EU Competitiveness Council on Monday, 28 November confirmed a partial common approach to the proposed 7th framework research programme for 2007-2013. With its proposed reforms, Slovenia is already following the council's recommendations, Janez
Mozina of the Ministry of Higher Education, Science and Technology told STA.
Slovenia is in particular up to speed in reforming the national research and innovation system and drawing structural funds for research infrastructure, as well as changes to the tax legislation, Mozina said.
According to him, the framework programme for the 2007-2013 period contains all the essential elements of the European research proposal for the period. In case the negotiations on the next EU financial framework go well, the document will be adopted by the middle of
2006, Mozina said.
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The important aspect for Slovenia, according to him, is that the new proposal suggests that, in addition to better integration of small and mid-sized businesses in the programme, the
European Commission would secure at least 15% of funding for those business in cooperation programmes.
Moreover, the programme envisages additional support for national plans to help small and mid-sized enterprises in drafting project proposals to participate in the 7th framework programme, Mozina added.
He said the document introduced a programme of fundamental research to be planned by the
European Research Council, an independent body.
Slovenia Gives Initiative for European Innovation Centre
Slovenia proposed to the EU the establishment of a European innovation centre that would network in one place all subjects which take part in an innovation process, as well as form a support environment on the national level
Slovenia on Tuesday, 29 November proposed to the EU the establishment of a European innovation centre that would network in one place all subjects which take part in an innovation process, as well as form a support environment on the national level.
"The idea of setting up a European and several national innovation centres is daring, but a detailed presentation is to follow," its proponent, State Secretary at the Economics Ministry
Andrijana Starina Kosem, said.
The idea she presented at the session of EU ministers on competitiveness originates from
Slovenia's plan to set up an innovation centre to solve its problem of having a broad support environment which, however, lacks support for innovation.
"We want to set up a support environment providing everything, from the protection of intellectual property to successful applications for European projects and networking of all subjects," the ministry representatives explained.
Slovenia is also interested in hosting the European centre headquarters, which would be financed from the EU budget, so as not to burden the national budget. The initiative is to be explained in more detail on one of the EU Council working groups, Starina Kosem explained.
EP Committee Confirms Report on Border Traffic at the EU's Borders
The European Parliament's committee on civil liberties, justice and home affairs unanimously endorsed the report of Slovenian MEP Mihael Brejc on the regulation on border traffic at the
EU's external land borders
The European Parliament's committee on civil liberties, justice and home affairs on Thursday,
1 December unanimously endorsed the report of Slovenian MEP Mihael Brejc on the regulation on border traffic at the EU's external land borders.
Brejc, the rapporteur for the regulation, said he was pleased that the parliament reached a compromise with the Council and the European Commission which is good for Slovenia.
As it was framed originally, the regulation would have severely complicated life along the
Slovenian-Croatian border. Brejc therefore lobbied hard to get it tweaked.
"This regulation is not about political prestige; we are trying to make sure that the Schengen border does not hamper commerce, economy and socio-cultural ties in the border areas, whilst preventing illegal migration and risks to security," Brejc told STA.
For Slovenia, one of the most important features is a provision on a special pass for local residents. It will contain all the necessary security features, but there will be no need to stamp it at every border crossing.
In September, Brejc warned that against the erection of a new Berlin Wall if the regulation was implemented. If the Commission's proposals were to stand, local traffic on the Slovenian-
Croatian border would grind to a halt, Brejc said at the time.
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EU Energy Council: Slovenia Points to Problem of Transit Countries
Economics Minister Andrej Vizjak said at a session of the EU Transport, Telecommunications and Energy Council that small transit countries, like Slovenia, are faced with having to invest heavily to ensure reliability of the entire region's electricity infrastructure
Economics Minister Andrej Vizjak said at a session of the EU Transport,
Telecommunications and Energy Council on Thursday, 1 December that small transit countries, like Slovenia, are faced with having to invest heavily to ensure reliability of the entire region's electricity infrastructure.
With respect to this problem, Slovenia backed the European Commission in its bid to draft new guidelines within the regulation on electricity, Vizjak told STA.
These are to set down a new basis for tackling problems of overloaded electricity grids, as well as enhancing international electricity trade and market integration, the minister added.
Vizjak said he pointed to the problem of small transit countries because of numerous electricity lines which cross Slovenia and influence the reliability of its own network.
The ministers agreed that the EU regulation on energy is an appropriate framework, however, its implementation is another story, Vizjak also said.
The participants also discussed the integration of markets of individual EU states, a move supported by Slovenia, according to the minister.
Stokelj Becomes European Parliament General Secretariat Director
Stokelj became the highest-ranking parliament official among representatives from the ten new EU member states
Ciril Stokelj, former Slovenian ambassador at the EU, took up the office of European
Parliament General Secretariat director responsible for inter-institutional cooperation and foreign policy on Thursday, 1 December.
Stokelj became the highest-ranking parliament official among representatives from the ten new EU member states and is joining a handful of Slovenian officials holding top EU offices.
In January 2005, Ivan Bizjak, the former Slovenian justice minister, was appointed EU director general for justice and home affairs.
Zoran Stancic, former Slovenian state secretary, became deputy director general in the EU
Directorate-General for Research in December 2004, and as of May 2005 Marjeta Jager has been working for the European Commission at its transport directorate.
Stokelj served as the Slovenian ambassador at the EU from 2002 to August this year. Before that he was ambassador to Spain.
Bajuk Outlines Tax Changes at Luxembourg Forum
Bajuk spoke as part of a debate examining the pros and cons of tax harmonisation and tax competition in the EU
Finance Minister Andrej Bajuk outlined the tax changes being prepared in Slovenia as he took part in the Luxembourg Financial Forum meeting on Friday, 2 December. He also presented his views on proposals for tax harmonisation in the EU.
Bajuk spoke as part of a debate examining the pros and cons of tax harmonisation and tax competition in the EU. He said that the benefits of harmonisation of certain indirect taxes means that that there is a possibility for harmonising certain direct taxes.
However, he pointed out that to achieve harmonisation of direct taxes in the EU, the economies of the member states would have to achieve greater convergence, the Finance
Ministry said in a press release.
Also taking part in the debate on tax harmonisation were French Finance Minister Thierry
Breton, Governor of the Central Bank of Luxembourg Yves Merch and Slovakian Finance
Minister Ivan Miklos.
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The participants concluded that a certain amount of tax competition is beneficial for the EU, although efforts must be made to prevent unfair competition, the Slovenian Finance Ministry said.
EU Environment Ministers Confirm Life + Financial Instrument
Slovenian Environment Minister Janez Podobnik told the press that Life + would be part of the EU's 2007-2013 budget framework, which will also define the amount of funds allocated for the instrument
EU environment ministers reached a deal on the Life + financial instrument for the funding of programmes within the framework of the environment action plan, according to Slovenian
Environment Minister Janez Podobnik.
Podobnik told the press on Friday, 2 December that Life + would be part of the EU's 2007-
2013 budget framework, which will also define the amount of funds allocated for the instrument.
"The European Commission proposal states that Life + would be allocated EUR 2.2bn, with
Slovenia getting approximately EUR 4.5m in the seven-year period. But I expect that these numbers will rise," Podobnik said.
Slovenia supports Life + as it preserves natural and biological diversity, Podobnik explained.
Since 1992 the country got almost EUR 5m from the Life program, while this year none of
Slovenian projects were successful in getting the funds, Podobnik added.
According to the agreement 80% of the funds would go to member states, while 20% would be used on the EU level.
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LEGISLATION
Parliament Passes Resolution on Consumer Protection Programme
The resolution lays the foundation and determines the principles, characteristics and elements of consumer protection policies
The parliament on Tuesday, 29 November passed a resolution on the national consumer protection programme for the period 2006-2010.
The resolution lays the foundation and determines the principles, characteristics and elements of consumer protection policies. It contains goals and measures, as well as the required tasks to achieve those goals.
Furthermore, the document determines the means to carry out measures and activities. Its implementation is to be set out by two-year work programmes, to be adopted by the government.
The resolution also introduces the concept of reporting on the process of the national programme implementation through reports drafted every two years.
The goals of the resolution include inclusion of consumer protection in all government policies influencing the market position and interests of consumers, the gradual strengthening of institutions and the organisation of consumer protection management.
Individual measures refer to the efficient implementation of consumer-related legislation, efficient market control of product safety and protection of the consumers' economic interests, accessible public services, solutions to consumer conflicts by setting up a public plan of alternatives, and the establishment of a European consumer centre.
The main national operators within the state administration are determined, as are the operators within the non-governmental sector. The resolution lays out the basis for their harmonised functioning and introduces a clear division of work between the state and the nongovernmental sector.
Government Adopts Amendments to Securities Market Act
The amendments, adopted at a correspondence session, are expected to improve investor protection and the effectiveness of the securities market
The government has adopted amendments to the securities market act to include provisions prescribed by the EU prospectus directive. The amendments, adopted at a correspondence session on Tuesday, 29 November, are expected to improve investor protection and the effectiveness of the securities market.
The prospectus provisions envisage the harmonisation of prospectuses for the listing of securities across the EU. This is part of the EU's efforts to establish an efficient internal market for financial services, the Finance Ministry said in a press release.
A key advantage of the prospectus directive is that an entity can use it to seek support from financial markets throughout the 25-nation union.
The prospectus will function as a passport: a prospectus approved by competent authorities in an EU member state would be valid throughout the EU and would not need authorisation from the another market regulatory body.
Apart from transposing the prospectus directive, the amendments also allow the demutualisation of the Ljubljana Stock Exchange (LJSE) and enable partnerships between the
LJSE and other stock exchanges in the EU.
Entering into partnerships with other stock exchanges has been a long-standing desire of the
LJSE, the ministry said, adding that the stock exchange will have to respond to the growing wave of consolidation across Europe.
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In order to improve the transparency of trading (it is estimated that two-thirds of all securities are traded outside the organised market), the amendments commit informed investors to report to the stock market about any deals in excess of SIT 1bn (EUR 4.17m) that are carried out outside the stock exchange.
The ministry expects this will provide a more realistic estimate of the market price and hence a clearer picture of the conditions on the capital market.
National Council Vetoes Amended Income Tax Act
The councillors vetoed the act on a number of counts, most notably because if was passed in emergency procedure and due to the favourable tax treatment of the recipients of denationalisation bonds
The upper chamber of parliament vetoed the recently passed amendments to the income tax act in a 20:9 vote on Wednesday, 30 November, claiming that the amendments widen gaps between the rich and the poor and are discriminatory.
The councillors vetoed the act on a number of counts, most notably because if was passed in emergency procedure and due to the favourable tax treatment of the recipients of denationalisation bonds.
Alojz Krizman and Joze Mencinger, both former university chancellors, summed up their veto endorsement by pointing out that denationalisation claimants will be treated differently: exempt from paying tax if they get denationalisation bonds, and liable for tax if their property is returned in kind.
Due to the veto, the National Assembly must take a re-vote and confirm the act with an absolute majority of 46 votes. The amendments were originally passed in a 37-to-26 vote on
23 November.
Government Moves Towards Taxation of Real Estate
The government adopted two real estate-related bills - on the registration of real estate and the mass valuation of real estate - which will serve as the basis for property tax
The government on Thursday, 1 December adopted two real estate-related bills - on the registration of real estate and the mass valuation of real estate - which will serve as the basis for property tax.
The bills were drawn up by the environment and finance ministries respectively, but they are so inter-connected that they will have to be treated by parliament as one, the Environment
Ministry said.
The bill on the registration of real estate is designed to simplify registration in order to improve the quality of the registers and ease the burden on the Surveying and Mapping
Authority.
Quality registers are needed to replace the current compensation for the use of building land
(which property owners pay instead of tax) with a modern property tax based on the market value of properties, the ministry said.
This in turn requires legislation on the valuation of real estate. The proposed system will be used nation-wide, managed by an independent body within the Surveying and Mapping
Authority.
Moreover, the bill envisages the establishment of a publicly accessible record of the real estate market to collect data about sales prices and rents.
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STATISTICS/FORECASTS
0.5% Deflation in November
Consumer prices fell 0.5% in November owing to a big drop in fuel prices, pushing the annual inflation rate down to 2.1%, show early figures from the Statistical Office
Consumer prices fell 0.5% in November owing to a big drop in fuel prices, pushing the annual inflation rate down to 2.1%, show early figures from the Statistical Office.
The drop in prices - the third month of deflation this year - was caused predominantly by lower prices of goods, according to the national statisticians.
Prices in transport led the retreat, dropping 3.4% owing to an 8% drop in fuel prices. Also falling this month were housing prices (down 1%), alcohol and tobacco (0.4%) and catering
(0.2%).
Meanwhile, clothing and footwear was dearer by 1.2% and food and non-alcoholic beverages gained 0.8% on the month.
As a result of the monthly fall in prices, the 12-month average price growth measured with the
EMU convergence price index dropped to 2.5% in November.
However, the latest available convergence price index is October's 2.4%, which means that
Slovenia's inflation remains 0.3 percentage points above eurozone entry requirements.
Statistics Office Arming for Euro Adoption
Slovenia's Statistical Office has announced it would draw up a plan before the end of the year to define ways of monitoring and analysing price fluctuations in the year leading up to the euro changeover
Slovenia's Statistical Office has announced it would draw up a plan before the end of the year to define ways of monitoring and analysing price fluctuations in the year leading up to the euro changeover.
Statistical Office deputy director Genovefa Ruzic told the press on Wednesday, 30 November that the experience of some eurozone members has shown that price rises can occur as early as six months prior to the actual introduction of the new currency.
"We plan to start focusing on detailed analyses of price changes at the beginning March, when double pricing is introduced," Ruzic added.
She elaborated that the price-monitoring will involve year-to-year comparisons according to specific groups and subgroups of products and services, which should expose any unusual fluctuations.
The office is also contemplating the possibility of designing a price-calculation model which would enable each individual to figure out their own "personalised inflation", as we all have different consumption habits.
ILO Unemployment Rate at 6.3% in Q3
The average rate of unemployment stood at 6.1% among men and 6.6% women
Slovenia's ILO- and Eurostat-compatible unemployment rate was 6.3% in Q3, up from 5.8% in Q2, Slovenia's Statistics Office (SURS) said on Wednesday, 30 November.
The average rate of unemployment stood at 6.1% among men and 6.6% women.
The Labour Force Survey of the ILO and Eurostat also shows that participation rate stood at
59.9%, while employment to population rate was 56.1% in the July-to-September period.
On the other hand, the country's registered monthly unemployment rate as measured by the
SURS stood at 10% in September, the latest available figures.
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FINANCE
KD Holding Raises EUR 40m for Expansion
The money raised through the bond issue will be used for KD Holding's expansion, including the establishment of a life insurance company in SE Europe, which is expected to operate in
Croatia, Romania and Bulgaria
Financial firm KD Group has raised EUR 40m for planned expansion on SE European markets in a bond issue that was wrapped up successfully on Monday, 28 November.
The bonds issued by KD Group's asset management arm KD Holding have been snapped up by 23 large investors in a non-public offering, KD Holding said in a press release.
The money raised through the bond issue will be used for KD Holding's expansion, including the establishment of a life insurance company in SE Europe, which is expected to operate in
Croatia, Romania and Bulgaria.
The company said the money would also be used for the construction of a cinema multiplex in the centre of Slovenia's capital, Ljubljana, as well as for supplying fresh capital to insurer
Slovenica and for the establishment of a private equity fund.
The 10-year bonds, which have an annual interest rate of 4.85%, are to be listed on the
Ljubljana Stock Exchange after KD Holding obtains the required permits for trading.
Italian Bank Makes Takeover Offer For Brokerage
Italian bank Banca Popolare FriulAdria, a subsidiary of Milan-based group Banca Intesa, has formally informed Slovenian stock brokerage Medvsek Pusnik that it intends to make a takeover bid, Medvesek Pusnik said
Italian bank Banca Popolare FriulAdria, a subsidiary of Milan-based group Banca Intesa, has formally informed Slovenian stock brokerage Medvsek Pusnik that it intends to make a takeover bid, Medvesek Pusnik said on Wednesday, 30 November.
According to the Slovenian company, they received the offer on 29 November. The company is currently holding takeover talks with the bank, with the acquisition price fixed at SIT
18,063 (EUR 75.28) per share.
Banca Popolare FriulAdria filed the request to acquire a majority stake in the Slovenian company with the Securities Market Agency at the end of July. It currently owns 10% of the brokerage company.
Jure Klepec of Medvesek Pusnik told STA in July that this is a friendly takeover, agreed in negotiations between the two sides.
The takeover price is about three times the company's book value, but 18% short of the current market price of SIT 22.000 (EUR 91.83).
Parliament Passes Closing Account of the 2004 Budget
According to the account, the budget revenues totalled SIT 1,515.2bn (EUR 6.32bn), 97.4% of the planned revenues, while the expenditures amounted to SIT 1,595.7 (EUR 6.66bn), 96.9% of the plans
The parliament barely passed the closing account of the national budget for 2004 at its session on Wednesday, 30 November.
According to the account, the budget revenues totalled SIT 1,515.2bn (EUR 6.32bn), 97.4% of the planned revenues, while the expenditures amounted to SIT 1,595.7 (EUR 6.66bn),
96.9% of the plans. The deficit was therefore SIT 80.4bn (EUR 335m).
The Court of Auditors has said that the closing account for 2004 was better than in previous years, but still not perfect, and recently gave a qualified opinion.
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It issued an adverse opinion to the finance, agriculture and information society ministries as well as to the Supreme court, the National Electoral Commission and the government office for regional development.
Domestic Issuers Need to Be Kept at Home, LJSE Boss Says
According to Simoneti, 2006 will be a decisive year for the LJSE
The priority of the management of the Ljubljana Stock Exchange is to keep domestic issuers in Slovenia, LJSE chairman Marko Simoneti told the press on Thursday, 1 December.
According to Simoneti, 2006 will be a decisive year for the LJSE, while 2007 will be the moment of truth. The Slovenia market could become very interesting after Slovenia adopts the euro in 2007, he explained.
However, he pointed to the need to look for new issuers. "The Ljubljana Stock Exchange will be in big trouble once (drug maker) Krka and a number of other important issuers leave us,"
Simoneti said.
He said the management was working to increase the share of foreign investors on the market and getting new companies listed.
Among the most interesting are telecommunications, insurance and banking companies with international operations, he said.
Asked about the listing of telco Telekom Slovenija, Simoneti said the view was that Telekom is ready for floatation.
"There is no reason to delay this and I think that the listing could take place in a matter of months," Simoneti said. He added that there was a possibility Slovenia's largest bank, NLB, could be listed soon, too.
According to LJSE board member Andrej Sketa, 2005 saw a large drop in turnover on the
LJSE, as well as falling stock prices.
A total of SIT 112bn (EUR 470m) worth of stocks changed hands from the start of the year through October, which is 30% less than in the same time last year, Sketa told the press, adding that falling prices played their part in bringing down turnover.
NLB Spending EUR 77m on IT Upgrades in 2005 and 2006
Slovenia's largest bank, NLB, is to spend SIT 18.4m (EUR 77m) this year and the next for upgrades to its information technology system connected to the changeover to the euro, international accounting standards and Basel II capital-adequacy rules
Slovenia's largest bank, NLB, is to spend SIT 18.4m (EUR 77m) this year and the next for upgrades to its information technology system connected to the changeover to the euro, international accounting standards and Basel II capital-adequacy rules.
According to NLB board member Erik Luts, the bank is rapidly preparing for the adoption of the euro in Slovenia and new regulations on accounting and capital adequacy.
As much as SIT 8.9bn (EUR 37.15m) is being spent this year for the necessary upgrades to the bank's IT system related to the changes, while a further SIT 9.5bn (EUR 39.65m) will be spent next year, Luts told the press in Ljubljana on Friday, 2 December.
He said the bank's top priority is to get ready for the euro, which Slovenia plans to adopt in
2007. Although the total costs the bank will incur because of the changeover cannot be gauged yet, the head of the euro project at NLB Savo Dinjaski said that about 30% to 40% of the IT investments are being set aside for that purpose.
"The effects, foremost financial, of the changeover to the euro are expected to be negative in the initial stages," Dinjaski said. This is an extremely expensive and logistically demanding project, he added.
According to him, the NLB's preparations for the euro changeover are going well. He said that the bank has around 200 people working on the euro project at any one time.
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Ljubljana Stock Exchange
The blue chip SBI 20 index finished the week just 4.02 points higher at 4,672.99
After an exciting early November, the Ljubljana Stock Exchange (LJSE) lost some glee last week as many listed companies reported average results. Even the management revamp at oil trader Petrol failed to arouse much interest, so the blue chip SBI 20 index finished the week just 4.02 points higher at 4,672.99.
Petrol was the name of the week after the appointment of a new, young management.
Investors seem to have accepted the appointment of Marko Kryzanovski with confidence, sending the share 1.6% higher to SIT 71,334 (EUR 297.81), just below the all-time high it touched on Thursday, 1 December.
Drug maker Krka, which propelled the stock exchange in early November, slid 2,3% to SIT
104,013 (EUR 434.16) on solid volumes, while chemical and tourism conglomerate Sava edged only 0.12% higher to SIT 42,499 (EUR 177.40) despite reporting a 36% jump in ninemonth profit to SIT 4.48bn (EUR 18.7m).
The action with other shares was much slower, and the same can be said of the free market.
One exception on the free market, Zvon Ena Holding, shed 8% after the takeover bid by
Church-owned Gospodarstvo rast expired, but gained 1.31% to SIT 1,779 (EUR 7.42) by
Friday, 2 December, half a euro short of the takeover price.
Gospodarstvo rast announced on 2 December that it had acquired 7.44% of Zvon Ena Holding through its takeover bid, to raise its shareholding to 51.57%.
The market might also have been a bit reserved following the introduction of a rule change that eliminates the codes of brokerages from orders and other documentation. This reduces the possibility of tracking investment policies of individual brokers and their clients.
Brokers concluded deals worth SIT 5.24bn (EUR 21.9m) last week, with two-fifth made in block deals. The lacklustre mood reflected most on the investment funds, whose PIX index shed 2.6% to 3,968.25 points. The bond BIO index was up 0.25 points to 123.33.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.57 (+0.01)
U.S. dollar (USD) - SIT 204.79 (+0.89)
Swiss franc (CHF) - SIT 155.13 (+0.24)
British pound (GBP) - SIT 353.50 (+2.96)
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BRANCH INFORMATION
Emission Coupons Register Launched
The Agency for the Environment has launched a register of emission coupons under the EU greenhouse gas emissions trading scheme to which Slovenia signed up as part of its efforts to implement the Kyoto Protocol
The Agency for the Environment has launched a register of emission coupons under the EU greenhouse gas emissions trading scheme to which Slovenia signed up as part of its efforts to implement the Kyoto Protocol.
According to head of the agency Silvo Zlebir, the register allows trading with emission coupons by Slovenian companies that have been allocated emission quotas under efforts to meet Kyoto obligations.
Zlebir said that Slovenia's is the 16th emission coupon register to be established in the
European Union's member states, although some of these have not been brought online yet.
In line with the emission trading scheme, the Slovenian government has allocated carbon dioxide quotas to almost 100 industrial facilities. They have been permitted to emit 26.3 million tonnes of carbon dioxide (26.3 million coupons) per year between 2005 and 2007.
If they emit less greenhouse gas than allowed, the facilities will be able to sell the unused emission credits to others that exceed their targets.
According to Nives Nared of the Environment Ministry, Slovenian companies will be able to trade emission coupons with the 12,000 companies from around the EU and Norway that are included in the scheme.
Nared added that the ministry was hopeful that trading would transcend borders in order to boost liquidity.
EEA Critical of Slovenia's Emissions, Praises Waste Collection
Although the agency has noted a two-fold increase in greenhouse gas emissions attributed to traffic, it praises Slovenia for the high share of renewable energy sources and a slight reduction of municipal waste
Slovenia got off well in the European Environment Agency (EEA) report "The European
Environment - State and Outlook 2005". Although the agency has noted a two-fold increase in greenhouse gas emissions attributed to traffic, it praises Slovenia for the high share of renewable energy sources and a slight reduction of municipal waste.
The report, which the agency released on Tuesday, 29 November, says that Slovenia will have to take action to reduce traffic emissions. However, the rise is offset by lower emissions in manufacturing and agriculture.
The agency notes that the number of cattle should rise again due to EU quotas. Yet on the other hand, agricultural policy is expected to reduce agricultural emissions by introducing good agricultural practice in fertilising and establishing biogas installations for electricity and heating production.
Although Slovenia's energy intensity is above average due to the still large share of manufacturing (accounts for 27% of value added), and primary energy consumption has been growing since 1992 by 2.7 % per year, the report says that 11% of the primary energy comes from renewable sources.
According to the EEA, there is still considerable potential to develop traditional renewable sources, most notably by raising the exploitation of technically exploitable hydro potential from the current 43 % to 52 % by 2013 by building a chain of hydro-electric power plants along the Sava river.
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Slovenia is also praised for having decreased the amount of collected municipal waste. The
"small but real" decrease is a result of measures taken to implement EU waste management directives, including management of packaging waste and the establishment of sort-by-source systems.
These measures are expected to reduce generated waste further, yet improvements are needed in waste management since a large proportion of generated waste currently ends up at landfills.
Road Transport Outperforms Rail Transport Fourfold
Road vehicles transported a total of 74 millions tonnes of cargo and did over 9 billion tonnekilometres in 2004, while in the same time railroads carried 18 million tonnes for a total of
3.4 billion tonne-kilometres, according to the Statistical Office
Road vehicles transported a total of 74 millions tonnes of cargo and did over 9 billion tonnekilometres in 2004, while in the same time railroads carried 18 million tonnes for a total of 3.4 billion tonne-kilometres, according to the Statistical Office.
This means that trains carried 19% of all cargo and did 28% of all tonne-kilometres, transport statistics adviser Vojko Segan told the press on Wednesday, 30 November.
He explained that railroad transport included all cargo delivered by the Slovenian Railways in
Slovenia, while road transports include all transit by Slovenian vehicles at home and abroad.
He added that the volume of road transport grew a record 30% in comparison with 2003, while rail transport rose 6% year-on-year.
Since 1993, road transport has grown by an average 6% a year, while the volume of cargo transported by railway grew by some 3% annually.
The share of road transport in the total cargo haulage was 64% in 1992, but grew to 72% in
2004, Segan explained.
Slovenia Gets EUR 900,000 to Fight Animal Disease
Slovenia will get EUR 390,000 for the monitoring of Transmissible Spongiform
Encephalopathies (TSEs), EUR 25,000 for the eradication of mad cow disease (BSE), and
EUR 160,000 for the eradication of scrapie
The European Commission approved an EUR 185m financial package to fight animal diseases in the EU in 2006, with EUR 900,000 going to Slovenia, the Commission said on
Wednesday, 30 November in Brussels.
Slovenia will get EUR 390,000 for the monitoring of Transmissible Spongiform
Encephalopathies (TSEs), EUR 25,000 for the eradication of mad cow disease (BSE), and
EUR 160,000 for the eradication of scrapie.
Moreover, Slovenia will get EUR 25,000 for fighting classical swine fever, and EUR 300,000 for the prevention of rabies.
Markos Kyprianou, Commissioner for Health and Consumer Protection, said: "Today's decision reflects our on-going commitment to supporting disease eradication, preventative action, and proactive monitoring."
EU Closes Formal Inquiry Into CO2 Taxation in Slovenia
The European Commission said that Slovenia's tweaked CO2 emission taxation scheme for operators of combined heat and power installations is in line with EU legislation
The European Commission said on Thursday, 1 December that Slovenia's tweaked CO2 emission taxation scheme for operators of combined heat and power installations is in line with EU legislation.
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"The Slovenian government introduced significant changes to bring the scheme into conformity with the EU state aid rules for environmental protection schemes following the opening of a Commission investigation in December 2004," the press release reads.
The Commission decided to approve the new law, which entered into force in May 2005, as it requires a sufficient reduction of carbon dioxide emissions from the beneficiaries in order to be eligible for the tax reduction, and respects EU rules on the taxation of energy products.
Competition Commissioner Neelie Kroes said she was "pleased that Slovenia has amended its tax breaks for industry to reduce distortions to competition while maintaining the incentive to cut carbon dioxide emissions".
The European Commission decided to initiate a formal investigation earlier this year, sceptical about certain tax exemptions granted under Slovenia's CO2 emissions tax.
Congress Labels Railroads Key to Economic Development
Transport infrastructure is one of the most important development goals in Slovenia, with railroads a key element of facilitating the development of the economy
Transport infrastructure is one of the most important development goals in Slovenia, with railroads a key element of facilitating the development of the economy, head of the honorary board of the Congress of Railway Infrastructure Managers said on Thursday, 1 December.
Srecko Hvauc added in his opening address that integration of railways with the Port of Koper presents a great opportunity for Slovenia.
"Development of rail transport needs to be coordinated in accordance with the country's strategic position and its potentials," Hvauc explained in Maribor.
Some 200 domestic and foreign experts in the field of railway infrastructure management were also addressed by director of the national Agency for Rail Transport Rajko Satler.
He believes that Slovenia has fulfiled all the conditions required by EU legislation. "In the future the country needs to upgrade its railway infrastructure...which presents a daunting task," he added.
At the final day of the congress, Transport Minister Janez Bozic outlined Slovenia's plans in the railways sector. According to Bozic, Slovenia's priority was the construction of the motorway network. As this project draws to a close, however, the country needs to focus its attention on railway infrastructure development.
He stressed that to facilitate such development, the state needs to ensure a suitable number of highly qualified experts. "We need personnel that will be capable of...managing the railroads at the national and EU levels," Bozic stressed.
The majority of other speakers agreed that Slovenia's railway infrastructure was not as modern as the country's road network. They said modernising the public railway network should become a priority.
The investments will, however, require significant funds, which cannot be provided by the budget alone. Therefore the participants called for money from dedicated European funds, loans and private investments.
The keynote event of the congress was the panel on the future of the railways. According to the head of Slovenian Railways Joze Jurkovic, the current state of railway infrastructure is
"not good".
This is a consequence of a lack of infrastructure investment in the past, Jurkovic believes.
"We therefore need new leadership and organisation, to reach an optimum level of infrastructure usage," he said.
"Modernisation of the railroads is not a one- or five-year project. It requires an immense amount of funds. However, we can only count of European funds after drafting suitable projects of infrastructure development," Jurkovic added.
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The panel was also joined by the former head of the Slovenian Railways Marjan Rekar, who said that without the second rail between the port of Koper and Divaca and other projects,
Slovenian railroads cannot prosper.
Committee Supplements List of Shops That Can Open on Sunday
The parliamentary economics committee expanded the list of stores that will be allowed to work on Sundays to include shops in old town centre, camps, marinas and spas as it discussed the government-sponsored changes to the trade act
The parliamentary economics committee expanded the list of stores that will be allowed to work on Sundays to include shops in old town centre, camps, marinas and spas as it discussed the government-sponsored changes to the trade act on Friday, 2 December.
In line with the original changes, which will restrict Sunday opening hours, only stores smaller than 200 sq. metres offering essential products and located at filling stations, hospitals, hotels, airports, border crossings and train/bus stations would be allowed to open without limitations on Sunday.
However, the committee moved to supplement the list by adding places frequented by tourists, including old town centres, camps and spas.
However, the committee did not make changes to other provisions, meaning shops offering essential food products but larger than 200 sq. metres will be allowed to open ten Sundays a year, while all other shops will have to remain shut on Sundays.
According to chair of the committee Feri Horvat (opposition Social Democrats), the goal of the amendment is to "strike a compromise on how to overcome the main problem, ie. to implement the Constitutional Court's ruling whilst avoiding major economic damage."
The committee wanted to include a provision that shops in tourist places could remain open, but it was established that there is no legal definition of tourist places. Efforts will be made up to draw up a suitable definition for tourist places before parliament convenes to debate the changes, Horvat added.
The government proposed the changes to the trade act after 57% of voters expressed backing for efforts to keep shops closed on Sundays in a referendum held in 2003.
Euro Vets Have No Special Warnings for Slovenia
Inspectors of the EU Food and Veterinary Office found no special irregularities during their ten-day visit to Slovenia, although they did put forward a few recommendations
Inspectors of the EU Food and Veterinary Office found no special irregularities during their ten-day visit to Slovenia, although they did put forward a few recommendations. The system of veterinary control works, National Veterinary Administration (VURS) director Vida
Cadonic Spelic told the press on Friday, 2 December.
According to her, the inspectors this time checked the procedure for the registration of food processing facilities and oversight, the oversight of the production of foods of animal origin, animal health and contingency plans for dangerous diseases.
"This was a very comprehensive inspection - they went from stable to table," Cadonic Spelic said. They also visited local VURS offices, the National Veterinary Institute, field vets and farmers.
Moreover, a meeting was staged with all institutions that the VURS would work with in case of an outbreak of a disease. The inspectors found that the cooperation is very intense and that we are well coordinated, she said.
Although the overall assessment was positive, the vets recommended more frequent inspections of farms and the work of field vets. They proposed that staffing at local VURS offices be beefed up, Cadonic Spelic explained. The inspectors moreover proposed better oversight veterinary stations in prevention actions.
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Cadonic Spelic also responded to media reports that there was swine fever in Slovenia. She said the disease is not present, although some pigs born before 2000 (when vaccination was still mandatory) tested positive for antibodies.
24
COMPANIES
Sava Reports 36% Jump in Nine-Month Profit
The chemical, tourism and trade conglomerate Sava has a reported a 36% jump in its ninemonth profit, which stood at SIT 4.48bn (EUR 18.7m), beating plans by 3%
The chemical, tourism and trade conglomerate Sava has a reported a 36% jump in its ninemonth profit, which stood at SIT 4.48bn (EUR 18.7m), beating plans by 3%.
The group made the profit on revenues of SIT 43.87bn (EUR 183.1m), a rise of 4% on the same period last year, Sava said in a press release Monday, 28 November.
Trade remains Sava's biggest revenue-maker, accounting for 37.7% of all turnover. This is followed by rubber production (30%) and tourism (22%).
The Kranj-based group, which employs over 3,000 workers in 25 companies, said it planned to finish the year with a profit of SIT 5.5bn (EUR 22.95m), thus beating last year's earnings by 11%.
Phase One of Steelworks Privatisation to Conclude in 2006
The commission overseeing the sale of the Slovenian Steel Group has recently sent its proposed privatisation model to the Economics Ministry
The commission overseeing the sale of the Slovenian Steel Group has recently sent its proposed privatisation model to the Economics Ministry. According to a ministry official, the first phase of the privatisation should be concluded by the end of 2006.
Peter Puhan, head of the internal market directorate at the Economics Ministry, has told STA that the proposal calls for the Slovenian Steel Group to be sold in its entirety, however individual companies within the group might also be sold separately.
He stressed that reaching the highest possible price is only one of the aims of the procedure.
Yet he gave no estimates on the price, which will become known once the appropriate public tender is concluded.
Puhan explained that the state became a majority owner of Slovenian steel works through legislation with which it took on the steelworks' liabilities and translated them into ownership shares.
The bulk of the liabilities was transformed into bonds issued by the steelworks, which means that the money the state gets by selling its stake could be used for debt repayment, according to Puhan.
"It is difficult to say in advance how best to spend the money, however the state must use the funds with due care and diligence," Puhan said.
He added that the privatisation would be gradual, with the state retaining a controlling share for some time to come.
Puhan explained that the state is interested in bringing in a strategic partner, as only such a buyer can guarantee the ongoing development of the steelworks.
Slovenia is not interested in where a potential buyer would come from, Puhan said, yet it wants a responsible owner who would be able to fulfil all the criteria.
The privatisation proposal is also supported by the Slovenian Steel Group management, which sees the group as a successful whole.
The group reported sales revenues of SIT 91.4bn (EUR 381.3m) in 2004, an increase of 30% over the previous year, while profit amounted to SIT 2.59bn (EUR 10.8m).
It generated exports of EUR 267m last year, which ranks it as Slovenia's sixth biggest exporter.
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Etol Posts Net Profit of EUR 3.4m for the First Three Quarters
The company's net profit meanwhile amounted to SIT 818.8m (EUR 3.4m), up marginally on last year's SIT 806.5 (EUR 3.36m)
The Celje-based flavourings maker Etol generated SIT 5.5bn (EUR 23m) in net sales in the first three quarters of 2005, down 1.4% year-on-year. The company's net profit meanwhile amounted to SIT 818.8m (EUR 3.4m), up marginally on last year's SIT 806.5 (EUR 3.36m).
The Etol supervisors discussed and adopted the nine-month report and the guidelines for the
2006 business plan, the company said on Tuesday, 29 November. They also agreed to set up two representation offices in China and Russia.
The management, led by Ivan Ferme, is only partly satisfied with sales on the markets of the former Yugoslavia. There, the company mostly focused on intense marketing and human resources development.
Etol saw sales rise marginally in the EU, Eastern Europe and the rest of the world. Sales are on par with last year's, but still lag behind the plan due to fierce competition and pressures to lower prices.
The management estimated the company's financial position as good. Net profit per share in the first nine months amounted to SIT 3,216 (EUR 13.4).
In 2006, Etol plans sales of EUR 31.8m, which is 8% more than it envisaged in this year's plan. The company, currently employing 218 workers, is to invest EUR 3m into equipment and Celje-based business facilities.
Hit and Harrah's Form Joint Venture for Mega Gaming Project
Slovenian gaming company Hit and US casino operator Harrah's Entertainment have formed a joint venture to build a major new gaming and entertainment centre near Nova Gorica, an investment worth US$ 700m scheduled for completion in 2009 provided that the government loosens gaming legislation
Slovenian gaming company Hit and US casino operator Harrah's Entertainment have formed a joint venture to build a major new gaming and entertainment centre near Nova Gorica, an investment worth US$ 700m scheduled for completion in 2009 provided that the government loosens gaming legislation.
The mega project rests on the government's willingness to tweak legislation: currently, foreigners can hold no more than 20% in a gaming venture, whereas the gaming tax is set at a high 30%.
Gary Loveman, chairman and CEO of Harrah's Entertainment, told the press in Ljubljana on
Tuesday, 29 November that the company was in talks with the government on changes to the gaming law that would allow foreigners to hold a 50% stake.
Harrah's would also like the government to lower the gaming tax. High taxation means fewer casinos and accompanying entertainment centres; lower taxes means more hotels, entertainment, bars and jobs, and consequently higher tax revenues, Loveman stressed.
Loveman said Harrah's was interested in two locations owned by Hit, which their experts will soon inspect and evaluate. Hit chairman Branko Tomazic said the locations in question were the site of the Cimos factory at Sempeter near Nova Gorica and a site in Ozeljan.
According to Tomazic, talks are indeed underway with the government to cut the gaming tax to no more than 10%. In the US, casinos are taxed at a rate of 6.5%, he noted.
Tomazic said Hit was looking for investors in Slovenia to help provide it with half of the hefty investment. He said one option would be a capital increase, yet the project is still in an early phase, so the option is not being seriously considered.
The project involves building a high-class hotel with 800-1,200 rooms, a casino stretching over 4,500 sq. metres with 1,500 slot machines and 70 tables, as well as a convention centre, spa, shopping centre and bars, restaurants and nightclubs.
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The partners in the joint venture are pinning their hopes on gambling-eager guests from
Austria and Italy just across the border. According to Tomazic, the casino could attract up to
3.1 million guests a year and raise Hit's annual revenues from EUR 240m to EUR 420m in the medium term.
The project would be the largest greenfield investment ever in Slovenia, which is probably why the government has expressed willingness to tweak legislation.
Zito Recovers Slightly but Still in the Red
Slovenia's biggest bread and pasta maker has reported net sales revenues of SIT 9.4bn (EUR
39.2m) for the first nine months of 2005, which is 12% more than planned
Slovenia's biggest bread and pasta maker has reported net sales revenues of SIT 9.4bn (EUR
39.2m) for the first nine months of 2005, which is 12% more than planned. However, the company still made an operating loss of SIT 114.1m (EUR 476,131).
The company made an operating profit of 239.3m (EUR 1.2m) in the same period of last year.
Zito pointed to a drop in food prices, as well as higher financing and advertising costs as the main reasons for the loss.
The company closed the third quarter with a net profit of SIT 9.7m (EUR 40,477), which is a drop compared to the same period last year and is also short of targets, Zito said in a press release.
Fuel Trader Petrol Gets New Board
The supervisory board of fuel trader Petrol appointed Marko Kryzanowski the new chairman of the company
The supervisory board of fuel trader Petrol appointed on Wednesday, 30 November Marko
Kryzanowski the new chairman of the company, as well as appointing the rest of the management board.
Kryzanowski, a graduate in electrical engineering who also holds an MBA, will be taking over from Janez Lotric, who resigned on October 26 over differences with the supervisory board.
Moreover, the supervisors appointed Igor Irgolic the member of the board responsible for marketing and the vice-chairman. Irgolic replaces Marica Lah, whom the supervisory board dismissed without cause.
The two appointments complete the overhaul of Petrol's management board, as Alenka
Vrhovnik Tezak and Bostjan Napast were appointed members of the board responsible for finance and energy, respectively, the previous week.
"The new management board wishes to turn the best Slovenian company into the best company in the region," Kryzanowski told the press after his appointment.
Kryzanowski (born in 1966) previously worked as the general manager of AC Intercar, the authorised dealer for Mercedes Benz in Slovenia.
Meanwhile, the new board was labelled as "fresh" by the head of supervisory board Joze
Zagozen.
"This is a big day for Petrol, as it is starting afresh, with a new, lively team that has the necessary expertise and motivation," Zagozen said. He added that he was confident this would show on the results in the future.
Asked about a possible political motive in the overhaul of the management team, Zagozen said that "politics was not directly involved in as much as (the supervisory board) is not in a way a component of politics".
Zagozen would not reveal the amount paid to Lotric as severance. "The figures tossed about by the media (note: Slovenia media reported that severance stood at SIT 100m/EUR 414,000) were over the top, although I can't tell you the exact figure," he said.
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Istrabenz Results Short of Plans
The tourism, energy, food and investment conglomerate Istrabenz has reported nine-month operating revenues of SIT 90bn (EUR 376m)
The tourism, energy, food and investment conglomerate Istrabenz has reported nine-month operating revenues of SIT 90bn (EUR 376m). In this period it made net revenues of SIT
2.94bn (EUR 12.3m), which is short of plans.
According to a press release from the Koper-based group, the yearly profit forecasts of SIT
5.2bn (EUR 21.7m) are not expected to be met, with the end-year profit now expected to stand at SIT 3.5bn (EUR 14.6m).
Among Istrabenz's four segments, energy and investment are expected to meet targets, while tourism and food are to fall short of goals, the group said.
The expected failure to meet profit targets in tourism and food comes despite forecast-beating sales in both segments. The food segment is to miss the profit target of SIT 5.3bn (EUR
22.1m) by as much as two-thirds.
The group blamed the poor results of the food division on costs related to the merger of companies Droga and Kolinska and other costs of expansion.
Droga Kolinska a Touch Short of Plans
Food group Droga Kolinska posted net sales revenues of SIT 20.19bn (EUR 84.27m) in the five months since it launched operations
Food group Droga Kolinska posted net sales revenues of SIT 20.19bn (EUR 84.27m) in the five months since it launched operations. Its net profit in this time was SIT 826m (EUR
3.44m), the group said on Wednesday, 30 November .
The parent company generated SIT 15.16bn (EUR 63.27m) in net sales revenues, missing targets by 1%, a press release from the group said.
The Ljubljana-based company, created through the merger of food companies Droga and
Kolinska, began operations on 3 May.
After the merger, the company began with restructuring, which cut its operating costs by EUR
2.9m in the May-August period, the press release adds.
As part of the restructuring programme the company will lay off up to 285 workers by the end of 2006, including up to 176 this year.
New Director of STA Takes Over
Upon being appointed, she said she intends to promote new services and consolidate the agency's position both on the Slovenian media market as well as in Europe, especially through the STA's English language service
Lidija Pavlovcic took over as the new director at the Slovenian Press Agency (STA) on
Thursday, 1 December, replacing Igor Vezovnik.
Pavlovcic, whose previous job was at the country's leading business daily Finance, was appointed by the government at the beginning of October. She worked as business desk editor at STA in the 1990s.
Upon being appointed, she said she intends to promote new services and consolidate the agency's position both on the Slovenian media market as well as in Europe, especially through the STA's English language service.
Pavlovcic considers her past experience as STA business desk editor an advantage, but said she would be able to state her priorities only after meeting all STA staff. This, she said, would be her first task.
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New Petrol CEO Talks about His Business Plans
The priority for oil trader Petrol will be to accelerate its expansion to neighbouring markets,
Marko Kryzanowski, the company's new CEO, told the press as the new management took over at Petrol
The priority for oil trader Petrol will be to accelerate its expansion to neighbouring markets,
Marko Kryzanowski, the company's new CEO, told the press on Wednesday, 30 November, as the new management took over at Petrol.
He told Finance that Petrol plans to expand to Croatia, Bosnia-Herzegovina, Serbia and beyond. He said the company aims to enlarge its network of petrol stations and increase its sales of liquid fuels.
Kryzanowski wishes for a 9% to 10% growth of revenues. He told Finance that the company can allocate EUR 70m from current operations for investments, while continuing growth will be ensured by a strategic partner.
Meanwhile, he told the dailies Dnevnik and Delo that it is imperative for Petrol to find a partner that would allow a "vertical integration of the entire oil business".
According to Kryzanowski, this should not be difficult to achieve, as all oil derivatives manufacturers want to control the retail as well. He admitted that several companies are interested in a partnership with Petrol.
He told Finance he hoped that a decision on choosing a strategic partner would be taken by the end of 2006. Petrol will be looking for a long-term partner, he added.
Kryzanowski also told Dnevnik and Delo that it would be better if a strategic partner enters
Petrol "through a supply of fresh capital" rather than takeover.
Hit Chairman Confident about Government's Support for Gaming Deal
Speaking for the daily Primorske novice, Branko Tomazic said two key criteria will have to be met [by the government] if the Americans are go into the deal: limits to ownership in gaming companies will have to be abolished and gaming tax cut
The chairman of the Slovenian gaming company Hit believes that the government is serious about a mega gaming and entertainment centre, a US$ 700m investment Hit would build in a joint venture with US casino operator Harrah's Entertainment.
Speaking for the daily Primorske novice on Wednesday, 30 November, Branko Tomazic said two key criteria will have to be met [by the government] if the Americans are go into the deal: limits to ownership in gaming companies will have to be abolished and gaming tax cut.
The recently finalised contract between Hit and Harrah's will be valid for a year, during which period the needed legislative changes will have to at least enter parliamentary procedure,
Tomazic explained.
He added that "there is no other opportunity for a foreign investment of this size in Slovenia.
Not to speak of the 2,000 new jobs which should be embraced by every government".
Slovenia's first full-amenity casino resort, to be built near the western city of Nova Gorica, would include a luxury hotel, conference centre, spa, and first-class dining, entertainment and retail attractions.
Tomazic believes that the search for an appropriate tax environment could prove a major challenge for the government. He portrayed as unbearable the possibility of Hit still having to pay a 38% gaming tax, while the tax for the new centre would be set for example 12%.
The drawing up of a new gaming tax law requires a lot of knowledge, said Tomazic, who doubts the government has it. "A bad law is the last thing we need...It could weaken Hit, and scare away the Americans if it does not meet their expectations."
Tomazic said that despite a successful record and the fact that his term in office does not run out before June 2009, rumours about his dismissal by the government could well materialise.
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Iskra Avtoelektrika Intends to Acquire Iskra
Iskra Avtoelektrika, a manufacturer of electronic components for the car industry, has announced a hostile all-cash takeover bid for Ljubljana-based electronics group Iskra, its largest single owner
Iskra Avtoelektrika, a manufacturer of electronic components for the car industry, has announced a hostile all-cash takeover bid for Ljubljana-based electronics group Iskra, its largest single owner.
The publicly quoted Iskra Avtoelektrika is offering SIT 1,044 (EUR 4.36) per share, valuing
Iskra at just over SIT 7bn (EUR 29.22m). It will consider its bid successful if it manages to acquire a 51% stake, Iskra Avtoelektrika chairman Ales Nemec told the press on Thursday, 1
December.
In the light of the government's pledge to offload stakes in companies, Nemec expects that the largest Iskra owners, the state-run KAD and SOD, will accept the offer and sell their respective 28% and 13% stakes. "We have already held talks with KAD, which agrees in principle," Nemec said.
Nemec said the main reason for the takeover was synergy: Iskra Avtoelektrika expects extensive supply synergies and consequently faster growth. Moreover, the company wants to revive the now stagnant Iskra brand, which the takeover target holds, to its old glory.
According to media reports, Iskra, the erstwhile owner of Iskra Avtoelektrika, is opposed to the takeover bid: although it is much smaller than its acquirer, business daily Finance reported last week that it wanted to embark on a takeover bid for Iskra Avtoelektrika.
Nemec said that the management boards of the two companies held a meeting, but "failed to reach agreement on the form of the takeover."
Indeed, Iskra is said to have filed a lawsuit on Tuesday, 29 November against the resolution endorsing the takeover that was taken by the Iskra Avtoelektrika management board. Nemec said they inquired at the Nova Gorica court but there was no lawsuit registered.
Iskra Avtoelektrika has 11 production subsidiaries in Slovenia and abroad, as well as 6 trade branches. In the first nine months of the year is saw sales increase 9% to SIT 28bn (EUR
116.9bn), with net profits stagnant at SIT 252m (EUR 1.05m).
Meanwhile, Iskra posted a net profit of SIT 302m (EUR 1.26m) in 2004, on sales of SIT
22.9bn (EUR 95.59m). The major move for Iskra last year was the acquisition of troubled maker of capacitators, Iskra Kondenzatorji.
Iskra paid SIT 913m (EUR 3.8m) for the 77.8% stake in Iskra Kondenzatorji, which had been pledged with the Hypo Alpe-Adria-Bank by the German owner AEG KuW for loans awarded to the German company.
Steel Group Reports 5-Fold Jump in 9-Month Profits
Riding on a wave of high global steel prices, the Slovenian Steel Group made net profits of
SIT 5.6bn (EUR 23.37m) in the first nine months of the year, a jump of around 400% on last year
Riding on a wave of high global steel prices, the Slovenian Steel Group made net profits of
SIT 5.6bn (EUR 23.37m) in the first nine months of the year, a jump of around 400% on last year.
The record profits were generated on sales revenues of SIT 86.4bn (EUR 360.6m), the company said in a press release.
The supervisory and management boards of the group said they were pleased with the results.
According to head of the supervisory board Marija Zagozen, the results are very good. The outstanding performer in the group was Metal Ravne, a producer of specialty steels, which made a profit of SIT 3.2bn (EUR 13.4m) through the third quarter, Zagozen said.
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Meanwhile, Steel Group chairman Tibor Simonka said that the company expects to continue operating strongly until the end of the year, although profit margins are not expected to be as big.
He added that growth would probably be less intense next year, although he expects that the group would continue to improve its results.
Major Trimo Owners Embark on a Buyout
Last year Trimo Trebnje posted SIT 23.1bn (EUR 96.5m) in revenues
The largest owners of the pre-fabricated construction panel maker Trimo Trebnje have announced their intention to buy the shares from minority owners, several dailies reported on
Wednesday, 30 November.
Trimo Trebnje CEO Tatjana Fink told the daily Dnevnik she hopes that the major owners have published their [friendly] takeover bid with the intent to "consolidate their ownership structure".
The bidders (Probanka, Probanka Leasing, Medaljon, Zlata moneta II and Trimo
Investments), which own some 42% of Trimo, said after signing a shareholder agreement on
28 November that they wish to become the sole owners of Trimo through a public offer, thus consolidating company ownership.
Head of Zlata Moneta II Peter Zoric meanwhile told the Maribor-based Vecer that the takeover price will be announced in 30 days, when a public offer will be made. "Probanka's financial companies have a long-term investment in Trimo," he said.
Fink also told STA on 30 November that the five major buyers sent an official buyout offer on
29 November. If successful, she believes that the takeover will stabilise the ownership structure of Trimo Trebnje.
"The acquiring companies stated in their shareholder agreement that they support the vision, development and strategic plans of Trimo. I therefore believe that they will be good owners,"
Fink added.
Last year Trimo Trebnje posted SIT 23.1bn (EUR 96.5m) in revenues. The company's revenues have increased by 3.3% in the first six months of 2005 to SIT 12.2bn (EUR 50.9m).
New Cargo Line Ljubljana-Frankfurt Takes off
This is the flag carrier's second cargo line after setting up a connection with Sarajevo in
September
Airliner Adria Airways established a new cargo route between Ljubljana and Frankfurt at the beginning of the week. This is the flag carrier's second cargo line after setting up a connection with Sarajevo in September.
The company said in a press release on Friday, 2 December that it will operate the new route three times a week with a rented Turbolet L-410 airplane with a 1.5-tonne capacity.
Mercator Shopping Centre Opens in Cacak
The EUR 22m investment will create over 150 new jobs
Mercator, Slovenia's leading retailer, on Friday, 2 December opened a 19,000 sq. metre shopping centre in Cacak, southern Serbia. The EUR 22m investment will create over 150 new jobs.
Vladimir Kravcuk, the chairman of Mercator's Serbia subsidiary, told the press that Serbia was one of Mercator's key markets, where the company intends to expand further.
This is Mercator's second shopping centre in Serbia after the outlet in Belgrade. The third one will open tomorrow in Zemun.
According to him, Mercator has already bought sites in Novi Sad and Sabac. It also has plans to build shopping malls in Kragujevac and Nis.
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The Cacak centre includes a 2,800 sq. metre hypermarket, where 30% of products are of
Serbian origin and 18% are Slovenian.
The Cacak centre is a part of Mercator's push south, as the company on 1 December opened a new shopping centre in Sarajevo, Bosnia-Herzegovina.
Mercator Opens Second Centre in Serbia in Two Days
Mercator already has a big centre in Belgrade, and ambitious expansion plans for Serbia: it has bought sites in Novi Sad and Sabac, and it plans to build major shopping malls in
Kragujevac and Nis
Slovenia's leading retailer Mercator on Saturday, 3 December inaugurated a shopping centre in Zemun near Belgrade in what is the second opening in two days.
At 2,236 sq. metres, the Zemun facility, Mercator's third outlet in Serbia, is much smaller than the 19,000 sq. metre shopping centre opened in Cacak, but it is nevertheless expected to create 40 jobs.
Mercator already has a big centre in Belgrade, and ambitious expansion plans for Serbia: it has bought sites in Novi Sad and Sabac, and it plans to build major shopping malls in
Kragujevac and Nis.
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SLOVENIA IN BRIEF
President Drnovsek Visits Montenegro
During his visit to Montenegro on Monday, 28 November, Slovenian President Janez
Drnovsek held talks with his Montenegrin counterpart Filip Vujanovic, PM Milo Djukanovic and Parliament Speaker Ranko Krivokapic.
Swiss FM Visits Slovenia
Swiss Foreign Minister Micheline Calmy-Rey visited Slovenia on Monday, 28 November.
Among others, Slovenian FM Dimitrij Rupel and Calmy-Rey discussed bilateral cooperation, with Rupel thanking Switzerland for its donations to the Slovenia-run International Trust
Fund for Demining and Mine Victims Assistance (ITF). Additionally, Calmy-Rey stressed the importance of the bilateral agreement on the protection of mutual investments, as Switzerland is the second largest source of foreign direct investment in Slovenia.
DeSUS Shifts from Conditional Support for Flat Tax to Opposition
The coalition Pensioners' Party (DeSUS) has changed its position on the governmentsponsored economic reforms, replacing its conditional support for the flat tax with outright opposition. The reforms must be in line with the coalition agreement and the reform package must not affect what we have agreed in the document, DeSUS president Karl Erjavec told the press after session of the DeSUS executive council on Tuesday, 29 November.
Parliament Orders Probe into KAD and SOD Transactions
The parliament has ordered the establishment of an inquiry commission tasked with investigating the possible responsibility of public office holders in allegedly dubious transactions by the state-run KAD and SOD, including the recent sale of their stakes in retailer Mercator.
The inquiry, which has been requested by a group of 39 coalition MPS, will examine whether there have been adverse effects on state-owned assets in the transactions. It will include all KAD and SOD deals over the years that are suspected of having been in violation of the law, or deemed opaque.
Information Commissioner's Office Set up by Parliament
The parliament on Wednesday, 30 November passed the information commissioner act, creating the office of information commissioner from the existing commissioner for access to public information and inspectorate for the protection of personal data. According to the new act, the current commissioner for access to public information, Natasa Pirc Musar, will continue as information commissioner until her term expires. She will get all the financial, staff and administrative resources of the current inspectorate for personal data protection.
2005 Preseren Award Goes to Author Dekleva and Director Godina
This year's Preseren Award - the highest national award for artistic achievements - will go to poet, essayist and writer Milan Dekleva and film director Karpo Godina, the Preseren Fund said on Friday, 2 December.
Damijan Accepts Post of Development Minister
Joze P. Damijan, the economist who authored the government's economic reform package, has agreed to take over as minister without portfolio for the coordination and monitoring of
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Slovenia's development strategy, PM Janez Jansa told the daily Vecer on Saturday, 3
December. The new government department is to be formally established in early 2006.
OSCE Chair Pleased with Better Ties with Asia, the Mediterranean
The OSCE troika of Bulgaria, Slovenia and Belgium held meetings with partner countries from Asia and the Mediterranean on the eve of the Ljubljana ministerial on Sunday, 4
December, expressing pleasure over the improvement of relations with the partners from both regions.
OSCE Field Mission Tops Rupel-Draskovic Talks
The activities of the OSCE Mission in Serbia-Montenegro topped talks held on Sunday, 4
December in Ljubljana by Foreign Minister Dimitrij Rupel and his counterpart from Serbia-
Montenegro Vuk Draskovic.
Minister Lavrov in Slovenia
Russian FM Sergey Lavrov paid a working visit to Slovenia on Sunday, 4 December on the eve of the OSCE Ministerial Council in Ljubljana.
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