Slovenia Business Week no. 52, December 27th, 2005
Table of Contents:
HEADLINES ............................................................................................................................. 3
Slovenia's GDP Averaged 79% of the EU's in 2004 .............................................................. 3
Damijan Appointed Minister without Portfolio ..................................................................... 3
Slovenian Companies Are Top Investors in Serbia-Montenegro ........................................... 4
INTERNATIONAL COOPERATION ...................................................................................... 6
Government Decides to Open Consulate in Lvov .................................................................. 6
EUROPEAN UNION ................................................................................................................. 7
EU Repeats Warning to Slovenia about Sea Pollution .......................................................... 7
EU Survey Shows Slovenia Biggest Supporter of EU Expansion ......................................... 7
Slovenia Allowed to Continue Handing Out Regional State Aid .......................................... 7
Slovenia Pleased with Bird Flu Control Measures................................................................. 8
Government: Slovenia to Comply with Sea Pollution Prevention Rules Shortly .................. 8
LEGISLATION ........................................................................................................................ 10
Parliament Passes New Wine Act ........................................................................................ 10
National Council Vetoes Changes to Trade Act .................................................................. 10
National Council Vetoes Wine Act ...................................................................................... 10
STATISTICS/FORECASTS .................................................................................................... 12
Business Sentiment Up in December ................................................................................... 12
FINANCE................................................................................................................................. 13
Government Extends Petrol Pricing Model ......................................................................... 13
Merged Insurance Company Plans EUR 230m in Premiums in 2006 ................................. 13
Bajuk Chosen European Financial Minister of the Year ...................................................... 13
Tax Revenues Soar 20% ...................................................................................................... 14
Ljubljana Stock Exchange .................................................................................................... 14
Foreign Exchange ................................................................................................................. 14
BRANCH INFORMATION .................................................................................................... 15
Flat Tax Unacceptable for Food Processing Industry, Union Says ...................................... 15
COMPANIES ........................................................................................................................... 16
Gorenje Wants to be Leader in State-of-the-Art Home Appliances .................................... 16
HIT to Build Casino near Austria ........................................................................................ 16
Helios Reappoints Incumbent CEO ..................................................................................... 17
Istrabenz Plans Net Profit of EUR 16.15m in 2006 ............................................................. 17
Telekom Shareholders to Meet in January ........................................................................... 17
Ministry Decides Not to Give Out 2005 Business Excellence Award ................................. 18
Post Looking to Expand to Ex-Yugoslav Markets ............................................................... 18
Mercator to Support Constitutional Court Review .............................................................. 19
CPO Rejects Remainder of Western Wireless International Claim ..................................... 19
Delo Takes Over Right-Leaning Weekly ............................................................................. 20
Power Producer HSE to Finish Year with Profit of EUR 58.5m ......................................... 20
Struggling Mura Plans Radical Restructuring ...................................................................... 20
Government Adopts Privatisation Programme for Steel Group ........................................... 21
Planika Subsidiary Acquired by Germany's Meindl ............................................................ 22
State Funds Block Capital Injection at Merkur .................................................................... 22
KD Group Scraps Plan for Control of Delo Supervisory Board .......................................... 22
Port of Koper and Slovenian Railways Sign Cooperation Deal ........................................... 23
SLOVENIA IN BRIEF ............................................................................................................ 24
Consumers' Association Publishes Euro Guide ................................................................... 24
Ministry to Encourage Medical and Technical Studies ....................................................... 24
Parliament Says No to Sunday Shopping ............................................................................. 24
Krajc Named to Head Government PR Office ..................................................................... 24
Drnovsek Receives Representatives of Bosnian Muslim Community................................. 24
2
HEADLINES
Slovenia's GDP Averaged 79% of the EU's in 2004
Among the newcomers, only Cyprus had a higher GDP (83% of the EU's average)
Slovenia's per capita GDP, measured in purchasing power parity, amounted to 79% of the
average GDP in the 25-member EU, calculated for 2004, according to data released by
Eurostat on Tuesday, 20 December.
Among the newcomers, only Cyprus had a higher GDP (83% of the EU's average). With 79%,
Slovenia also outperformed Portugal, an old EU member, which boasts a GDP averaging 72%
of the EU's.
Luxembourg is in a class of its own with a GDP of 227% of the EU's. It is followed by Ireland
(138%), the Netherlands (125%), Austria (123%) and Denmark (122%).
The economic powerhouses of Europe continued to lag behind: Great Britain posted 2004
GDP of 117% of the EU's average, France 110%, Germany 109% and Italy 103%, with all bar
Germany noting a drop on 2003 figures.
Posting the lowest per capita GDP were Estonia (51%), Poland (49%), Lithuania (48%) and
Latvia (43%).
Damijan Appointed Minister without Portfolio
Damijan will take over as the head of the Office for the Coordination of the Implementation of
Slovenia's Development Strategy as of 2006
Joze P. Damijan was appointed a minister without portfolio for overseeing the implementation
of the government-sponsored economic and social reforms, as the parliament concluded its
regular December session on Tuesday, 20 December
Damijan was appointed in a 47:23 vote, and will take over as the head of the Office for the
Coordination of the Implementation of Slovenia's Development Strategy as of 2006.
The office will be composed of a sector for economic and a sector for social reforms, and will
employ 15 people in addition to the minister and a state secretary.
In outlining the reasons for a minister without portfolio, Jansa, who nominated Damijan, said
the implementation of Slovenia's Development Strategy must be coordinated on a government
level.
Damijan, who has a PhD in economics, was appointed the chair of a government reform
committee by Jansa in July. The 200-strong team was tasked with drafting guidelines for
comprehensive reforms.
The reforms, whose core measure would be a flat tax rate and radical changes to the social
benefits system, were adopted by the government in early November.
The reforms have been met with severe opposition from trade unions, pensioners and students
as well as by some opposition parties, chiefly for undermining the welfare state.
Damijan of the Ljubljana Faculty of Economics is the author of various articles as well as a
member of the editorial board of the IB revija magazine and the Economic and Business
Review.
He has also received various prizes, such as the EARIE young economist prize, as well as a
KU Leuven Research Fellowship (2004) and European Commission, DG EcFin, Visiting
Research Fellowship (2005).
Joze P. Damijan has said he sees his role as a minister not only as a coordinator of the
implementation of the country's Development Strategy, but also as a facilitator of an open
debate to reach a consensus on Slovenia's economic and social reforms.
3
Speaking for STA after being appointed to oversee Slovenia's structural reforms, Damijan
said that Slovenia has to press ahead with reforms, or risk a drop in the standard of living for
its population in the next few years.
"This reasoning is present in entire Europe as well as among all Slovenian political parties;
differences can only emerge in views on the manner and pace of the implementation of
reforms," said the new minister.
He also expressed a desire that the citizens understand that the role of the office for the
coordination and implementation of reforms is to positively influence the Slovenian economy
and society.
"I am convinced that in the next year, by explaining individual measures and presenting
detailed calculations, we will be able to prove that the [government-sponsored] reforms will
give us all a better tomorrow," he told STA.
Slovenian Companies Are Top Investors in Serbia-Montenegro
Slovenia remains in first place in the number of companies purchased in Serbia-Montenegro,
while it is in third place behind the US and Russia when it comes to the value of these
investments, the Belgrade daily Politika has written
Slovenia remains in first place in the number of companies purchased in Serbia-Montenegro,
while it is in third place behind the US and Russia when it comes to the value of these
investments, the Belgrade daily Politika has written.
Since 2002, Slovenians purchased 18 companies in Serbia-Montenegro, and two more
together with Serbian companies, the daily wrote in September. In second place is Cyprus
with ten companies, and in third place the US with seven companies purchased in Serbia.
According to Politika, the total value of all investments of Slovenian companies in SerbiaMontenegro since 2002, including greenfield investments, stands at EUR 300m.
When Economics Minister Andrej Vizjak visited Belgrade in September, his hosts stressed
the importance of Slovenian companies in the privatisation process in Serbia, which has been
successful so far. Slovenia has been accepted on the Serbian market as a reliable and
experienced partner, respecting contractual obligations.
It is difficult to say how much the Slovenian investments in Serbia will be worth in 2005,
however, Vizjak said in Belgrade that they amounted to EUR 205m at the end of 2003 or 11%
of all Slovenia's investments abroad. At the end of 2004, the figure increased to EUR 277m,
which is 12.6% of all Slovenian investments abroad, Vizjak also said.
Serbian Minister for International Economic Relations Milan Parivodic, meanwhile stressed
that Slovenian companies invested EUR 500m from the beginning of privatisation until 2004.
He added that investments worth EUR 150m are to be expected this year.
There are 350 to 400 companies with Slovenian capital in Serbia, Vizjak said. They include
direct investments, investments within the framework of Serbian privatisation, purchases of
bankrupt companies, provision of capital injections and real estate.
Slovenia's largest grocer Mercator, which opened its first facility in Serbia three years ago,
opened two more stores in Cacak and Belgrade in the beginning of December, worth a total of
EUR 26m.
Meanwhile, hardware trader Merkur opened in October its first store in Belgrade, an
investment worth EUR 10m.
Slovenia's biggest bank, Nova ljubljanska banka (NLB), purchased in July a 98.43% stake in
Novi Sad-based Continental banka, becoming its majority owner.
In 2003, NLB bought a 90% stake in Podgorica-based Montenegrobanka in 2003. It moreover
acquired in April a 80% capital share in Euromarket banka, also based in Podgorica. Both
investments were worth EUR 21m.
4
Slovenia's largest insurer, Zavarovalnica Triglav, was also very successful in Montenegro, as
it became in July the majority owner of Lovcen osiguranje, the largest insurance company in
Montenegro.
5
INTERNATIONAL COOPERATION
Government Decides to Open Consulate in Lvov
The mission is to be headed by honorary consul Julija Otovna Mizrah
The government decided at its session on Thursday, 22 December to open a Slovenian
consulate in the western Ukrainian city of Lvov. The mission is to be headed by honorary
consul Julija Otovna Mizrah, the Foreign Ministry has said.
The consulate is to responsible for the regions of Lvov, Uzhgorod, Ivano-Frankivsk and
Ternopil, the press release also says.
According to the ministry, the purpose of the consulate is to represent Slovenia in this part of
Ukraine and offer support to Slovenian businesses.
Julija Otovna Mizrah is a well-respected founder and director of several successful companies
and advertising agencies in Ukraine. She has also worked with numerous Slovenian
companies.
6
EUROPEAN UNION
EU Repeats Warning to Slovenia about Sea Pollution
The European Commission issued a second formal warning to Slovenia in which it calls the
country to implement EU rules on the prevention of sea pollution
The European Commission on Monday, 19 December issued a second formal warning to
Slovenia in which it calls the country to implement EU rules on the prevention of sea
pollution. In case of further non-compliance, the Commission intends to take the case to the
Court of the European Communities in Luxembourg.
The Commission issued the first warning on 12 October. Although Slovenia responded, the
Commission believes Slovenia's reasons were too vague, which is why it is still waiting for a
formal note ensuring the implementation of the mentioned piece of legislation.
Greece also received a second warning or reasoned opinion, wheras Poland already has to
face court.
The EU directive aims to decrease ship and cargo waste spills from vessels which use ports in
the EU. It says that parts of port capacities should be reserved for the reception of such waste
and its processing, enhancing the protection of the maritime environment.
It also obliges member states to draw up plans to equip ports, marinas and fishing harbours for
waste management, and to set just and transparent prices for services. EU member states had
to draw up the plans for waste management by 27 December 2002.
EU Survey Shows Slovenia Biggest Supporter of EU Expansion
Slovenia and Greece top the list of supporters of further rounds of EU enlargement with 74%
of inhabitants of both countries supporting the process
Slovenia and Greece top the list of supporters of further rounds of EU enlargement with 74%
of inhabitants of both countries supporting the process, show the results of the Eurobarometer
poll published by the European Commission on Tuesday, 20 December.
The EU meanwhile averaged a 49% support for further enlargement. According to the results,
Slovenians would most want to see Switzerland (93%) and Norway (92%) in the bloc, with
the lowest support for Croatia (59%), Turkey (49%) and Albania (48%).
The poll, nevertheless, shows that the support for expansion is waning in Slovenia. In
comparison with a similar spring poll, the enlargement is supported by 5% less Slovenians,
with the belief that joining the EU benefits the country and trust in EU institutions also on the
decrease.
While in the spring 49% of Slovenians believed that EU membership is a good thing for the
country, the percentage has now dropped to 43%.
Similarly, Slovenians' trust in the EU institutions has dwindled: support for the European
Parliament now stands at 61% (5 percentage points down from spring), while the European
Commission is currently trusted by 56% (64% in the spring).
The poll was conducted between 10 October and 5 November on 29,430 people.
Slovenia Allowed to Continue Handing Out Regional State Aid
However, due to the country's relatively high level of development, state aid will only reach
30% instead of the current 40%, or 35% in Central Slovenia
According to the guidelines on handing out regional state aid, adopted on Wednesday, 21
December by the European Commission, Slovenia will still be able to dish out such aid, albeit
to a smaller degree, the Commission said.
7
However, due to the country's relatively high level of development, state aid will only reach
30% instead of the current 40%, or 35% in Central Slovenia.
Regional state aid is meant for facilitating economic development of a member country's least
developed regions. Among others, they include direct subsidies or tax breaks for companies.
Under the new guidelines which will apply to the 2007-2013 financial period the EU is
cutting back on the number of regions that are entitled to state aid.
Whereas previously 52.2% of EU's population lived in regions entitled to such aid, their
number dropped to 43.1% under the new rules.
The basic criterion for awarding such aid is the average development level of a region. If it
tops 75% of the EU's average, a region is not entitled to state aid.
The Commission used the latest available data, coming from the 2000-2002 period, in setting
the new guidelines. According to the data, Slovenia had an average GDP of 74.4% under the
NUTS 2 classification.
The new guidelines also state that the level of aid can be increased by 20% if intended for a
small company and 10% if it goes to a middle-sized enterprise. The state will also be able to
allocate aid for establishing new companies and their expansion.
Slovenia Pleased with Bird Flu Control Measures
EU member states should transpose the directive into their national legislation by 1 July 2007
Larger subsidies in cases of low-level outbreaks of bird flu and a possibility of vaccination
were welcomed by Slovenia, said Franc But of the Agriculture Ministry as he attended a
meeting of EU agriculture ministers in Brussels on Wednesday, 21 December.
Slovenia is pleased with the measures, which were adopted in a form of a directive on
Tuesday. 20 December with the aim to better prevent or manage bird flue outbreaks, the state
secretary added.
EU member states should transpose the directive into their national legislation by 1 July 2007.
Slovenia is also satisfied with the confirmed changes to the wine market regulations which
allow several new oenological procedures and exempt Slovenia, Malta and Slovakia from the
compulsory distillation of grapeskins and lees.
"This excludes Slovenian wine growers from having to implement a large logistic and
financial feat," State Secretary But explained.
Government: Slovenia to Comply with Sea Pollution Prevention Rules Shortly
The government has said it responded to the recent warnings from the EU concerning
Slovenia's non-compliance with EU rules on the prevention of sea pollution by announcing
full implementation of a problematic directive by the end of the year
The government has said it responded to the recent warnings from the EU concerning
Slovenia's non-compliance with EU rules on the prevention of sea pollution by announcing
full implementation of a problematic directive by the end of the year.
Slovenia was issued two separate warnings on the matter: twice for not drawing up plans to
equip ports for waste management, with the last warning coming in October; and on Monday,
19 December, when it was warned for failure to transpose the directive into its legislation for
the second time.
The Transport Ministry said on Wednesday, 21 December that Monday's warning obviously
did not yet take into account Slovenia's explanation passed on to the European Commission
last Sunday in which the Slovenian side submitted finalised waste management equipment
plans for four Slovenian ports.
In its response to the Commission, the ministry announced it would complete the plans for the
remaining 12 ports by the end of the year, whereby it will have met all the directive's
requirements.
8
The statement by the ministry made no mention as to when the directive is to be transposed.
9
LEGISLATION
Parliament Passes New Wine Act
The National Assembly passed the government-sponsored wine act that will divide the country
into two wine countries: Primorsko (west) and eastern Slovenia
The National Assembly passed the government-sponsored wine act that will divide the
country into two wine countries: Primorsko (west) and eastern Slovenia on Tuesday, 20
December.
The law also cuts the number of wine regions from 14 to 8 (Goriska brda, Vipavsko Valley,
Karst, Slovenian Istria, Dolenjsko, Bela krajina, Prekmurje, Stajersko).
In drafting the bill, the government claimed that the aim of the document was to boost the
competitiveness of Slovenian wineries whilst ensuring protection of the consumer.
The aim of reducing the number of wine-growing regions is to raise competitiveness,
Agriculture Minister Marija Lukacic has said.
"Under the present system, almost every winery was its own wine-growing region and the
grapes cannot be sold in other regions," she explained in October.
Moreover, the new law changes the terms for labelling the quality of wine. For example, the
term "vrhunsko vino" (supreme wine) will be replaced with "eminentno vino" (eminent wine).
National Council Vetoes Changes to Trade Act
The National Assembly will now have to take a renewed vote on the legislation
The upper chamber of parliament has vetoed the amendments to the Trade Act, imposing a
Sunday shopping ban, that were passed by the National Assembly on 20 December. The
National Assembly will now have to take a renewed vote on the legislation.
The National Council took a vote on Friday, 23 December on whether to veto the legislation
at the behest of councillor Ladislav Kaluza, who represents employees in the upper chamber
of parliament.
Kaluza said he was prompted to act by the nature of the changes, which fail to implement the
will of the voters expressed at the 2003 referendum on the issue, when 56% of the ballots cast
backed the closure of shops on Sundays.
Head of the Internal Market Directorate at the Economics Ministry Peter Puhan labelled the
veto a bad solution for all concerned. He explained that the changes do not fully respect the
referendum outcome due to pressure from business.
In accordance with the amendments, shops will have to remain closed on Sundays, but with
some exceptions.
Shops selling essential goods regardless of their size and location will be allowed to open up
to ten Sundays a year. Moreover, shops smaller than 200 sq. metres and located at petrol
stations, city or town centres, pilgrimage sites, marinas, camping sites, spas, hospitals, hotels,
airports, border crossings, train and bus stations will be able to remain open all Sundays.
The changes have been met with opposition from both the unions, who claim that there are
too many exceptions, and retailers, who believe the rules are discriminatory and will hurt the
sector.
National Council Vetoes Wine Act
The councillors objected to the proposed division of Slovenia into two wine-growing countries
and councillors called for three wine-growing countries to be established
10
The National Council vetoed the government-sponsored Wine act on Friday, 23 December,
sending the law back to the National Assembly, which will have to muster an absolute
majority to pass the legislation again.
Out of 31 councillors, 28 voted in favour of a veto on the act that was passed on 20 December
by parliament in a 50-to-10 vote.
The councillors objected to the proposed division of Slovenia into two wine-growing
countries: Primorsko (west) and eastern Slovenia. The councillors called for three winegrowing countries to be established: Primorsko, Podravje and Posavje.
The National Council's committee on agriculture, forestry and food stated that experts as well
as wine growers agree that in the long run, three wine-growing regions are better than two.
In drafting the bill, the government claimed that the aim of the document was to boost the
competitiveness of Slovenian wineries whilst ensuring protection of the consumer.
11
STATISTICS/FORECASTS
Business Sentiment Up in December
Business sentiment was up 1 percentage point in December, with a rise in consumer
confidence and confidence in manufacturing more than making up for a more downbeat retail
sector
Business sentiment was up 1 percentage point in December, with a rise in consumer
confidence and confidence in manufacturing more than making up for a more downbeat retail
sector.
The seasonally adjusted value of the manufacturing confidence index was 1 percentage points
higher than in November and 5 percentage points above where it was at the same time last
year, according to data from the Statistical Office.
In retail the confidence index dropped 2 percentage points on November. Compared to
December 2004, it was 3 percentage points higher, the office said on Friday, 23 December.
With more optimistic expectations about the general economic situation in the country over
the next 12 months, consumer confidence gained slightly, with the index up 1 percentage
point in December.
12
FINANCE
Government Extends Petrol Pricing Model
The regulation will now be in force until 8 July 2006
The government decided at its session on Thursday, 22 December the current petrol pricing
model under which the retail price of fuel is calculated every 28 days.
The regulation will now be in force until 8 July 2006, the Economics Ministry said after the
government session.
The cabinet thus extended a regulation adopted in October with the aim to cushion the impact
of volatile global oil prices on the retail price of fuel. Fuel prices were previously adjusted
fortnightly.
Merged Insurance Company Plans EUR 230m in Premiums in 2006
The new company, which will be headed by incumbent Adriatic CEO Dusan Novak, will begin
joint operations immediately after being entered into the court's register, presumably on 29 or
30 December 2005
The recently merged insurance company Adriatic Slovenica plans to reach a 17% market
share by concluding insurance premiums to the amount of SIT 55bn (EUR 230m) in 2006, the
company told the press on Wednesday, 21 December in Koper.
The new company, which will be headed by incumbent Adriatic CEO Dusan Novak, will
begin joint operations immediately after being entered into the court's register, presumably on
29 or 30 December 2005.
The three-member board of the second largest Slovenian insurance company will also include
the current chief exec of life insurer Slovenica Zivljenje Matija Senk, and Adriatic board
member Milena Georgievska.
The insurer plans its premiums to rise to SIT 75bn (EUR 313m) by 2009, with the net profit
jumping from SIT 1.65bn (EUR 6.9m) in 2005 to just under SIT 5bn (EUR 20.9m) in the
same period.
According to the new CEO, the merger was carried out with the intention to strengthen the
market position and reduce costs. Novak said at a news conference that the move will cause
no redundancies nor will it change anything for the company's clients.
The supervisory boards of both companies approved the annexation of Slovenica to Adriatic
in May. The merger was then confirmed by the shareholders of both companies later that
month.
The majority stake in the new company will be held by asset management firm KD Group.
The insurer, headquartered in Koper (SW), will have a total of 65 offices throughout Slovenia.
Bajuk Chosen European Financial Minister of the Year
Slovenia's Andrej Bajuk has been chosen Financial Minister of the Year for Europe by The
Banker magazine, a publication of the Financial Times Group
Slovenia's Andrej Bajuk has been chosen Financial Minister of the Year for Europe by The
Banker magazine, a publication of the Financial Times Group.
The leader of the coalition New Slovenia (NSi) earned the award through his contribution to
Slovenia's euro changeover preparations and his fiscal policy and tax reform efforts, NSi's
press release said on Friday, 23 December.
Last-year's Minister of the Year for Europe was Russia's Alexei Kudrin.
According to the press release, the names of this-year's award winners are to be published in
the January issue of The Banker.
13
Other regional award winners include the Uruguayan Finance Minister Danilo Astori for the
Americas region, Cameron's Polycarpe Abah Abah for Africa, Qatar's Yousef Hussain Kamal
for the Middle East and Indian Finance Minister Palaniappan Chidambaram for Asia.
Tax Revenues Soar 20%
The Tax Administration (DURS) collected SIT 2,068bn (EUR 8.63bn) in taxes in the first 11
months of this year
The Tax Administration (DURS) collected SIT 2,068bn (EUR 8.63bn) in taxes in the first 11
months of this year, a rise of 20% over the same period in 2004. The annual targets were
nearly met in the 11 months, DURS added.
The strong surge in tax revenues comes in a year that new tax legislation - adopted by the
previous centre-left government in 2004 - was implemented, raising the tax load on both
business and individuals.
From the total funds collected in this period, DURS channeled SIT 1,022.5bn (EUR 4.27bn)
into the state budget, which is 38% more than in the first eleven months of 2004.
Moreover, SIT 194.8bn (EUR 813m) was paid into local budgets, SIT 557.8bn (EUR 2.33bn)
into the pension purse and SIT 377bn (EUR 1.57bn) into the health purse, data from DURS
shows.
Meanwhile, the tax debt stood at SIT 98.8bn (EUR 412m) at the end of November, a slight
drop in real terms over the year before.
According to DURS, the tax debt figures show that the agency has been successful in
collecting taxes.
Ljubljana Stock Exchange
The SBI 20 benchmark index ended the week 29.47 points (0.64%) lower at 4,567.04
Slovenian blue chips slid in an uneventful week of trading on the Ljubljana Stock Exchange.
The SBI 20 benchmark index ended the week 29.47 points (0.64%) lower at 4,567.04, which
is nearly 7% below where it started the year.
Brokers closed a total of 6,048 deals worth SIT 10bn (EUR 42m), with a large chunk of that
coming in block trade.
Shares of drug maker Krka, the most active issue last week, spearheaded the retreat, falling
1.7% to SIT 101,209 (EUR 422.40).
Among the other big names, grocer Mercator fell 1.58% to SIT 36,910 (EUR 154.05), while
fuel trader Petrol added 0.85% to SIT 70,978 (EUR 296.24).
Shares of holding Istrabenz topped the list of biggest losers last week, slumping 4.85% to SIT
7,860 (EUR 32.80) in slow trading.
Mixed trading dominated the going on the free market, where the PIX investment fund index
edged 0.08% lower at 3,897.62 points.
Meanwhile, the BIO bond index ended the week 0.25% higher at 122.88.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.58 (-0.01)
U.S. dollar (USD) - SIT 202.28 (+2.40)
Swiss franc (CHF) - SIT 153.93 (-1.07)
British pound (GBP) - SIT 350.77 (-2.81)
14
BRANCH INFORMATION
Flat Tax Unacceptable for Food Processing Industry, Union Says
Flat tax would cause prices in agriculture and the food processing sector to rise by 1.9% on
average, which makes it an unacceptable measure to take, head of the Agriculture and Food
Processing Union Srecko Cater said
Flat tax would cause prices in agriculture and the food processing sector to rise by 1.9% on
average, which makes it an unacceptable measure to take, head of the Agriculture and Food
Processing Union Srecko Cater said on Monday, 19 December.
Estimates by the Ljubljana Biotechnical Faculty and several companies also show that an
increase in value added tax would raise the expenses in the sector by SIT 16.73nb (EUR
69.82m) or 3.85% on average.
Cater stressed that the sector, which employs 22,700 people, is already not doing too well.
"Experts believe that we could end up losing the entire food processing industry", he warned
and added that the chain effect could in the end ruin farmers as well.
"We expect the government to ask its experts to show us estimates that might convince us
otherwise," added Cater. He also called the proposed introduction of flat tax an irresponsible
way of changing the economic conditions in the sector.
His views were echoed by head of the Association of Free Trade Unions (ZSSS) Dusan
Semolic, who said that until now the EU was labelled as the biggest threat to Slovenian
farming, while now the government took that role by proposing to introduce flat tax.
Secretary of the Agriculture and Food Processing Union Jovo Labanac meanwhile said that
flat tax would force closure of many companies. He pointed out that the Ormoz sugar factory,
Tovarna sladkorja Ormoz, would immediately be closed by its Dutch owner if flat tax was to
be introduced.
15
COMPANIES
Gorenje Wants to be Leader in State-of-the-Art Home Appliances
According to Franjo Bobinac, Gorenje has very ambitious goals for the next five years
Home appliance maker Gorenje wants to be on the cutting edge of home appliance
production, its chairman told the press in Ljubljana on Monday, 19 December. According to
Franjo Bobinac, Gorenje has very ambitious goals for the next five years.
Bobinac said that the aim was to make Gorenje the most innovative and design-minded home
appliance maker in the world.
He said that the group was planning takeovers in order to raise its revenues by between EUR
200m and 300m to around EUR 1.5bn by 2010.
According to him, the company plans to increase its operating profit 44% to EUR 112m by
2010. Annual investment in expansion is to amount between EUR 40m and 50m in this
period, he added.
The company plans to improve its online sales and bolster its marketing department as well as
work on boosting its image on foreign markets, Bobinac added.
Moreover, Gorenje intends to increase its production capacity outside of Slovenia, including
in the Czech Republic, Serbia-Montenegro and Russia. Production of appliances with high
value added is to be retained in Slovenia.
In 2010, the Velenje-based company plans to make 4.3 million large home appliances, three
million of which would be made in Slovenia.
Meanwhile, the group expects to finish the current year with revenues of SIT 238bn (EUR
993m), up nearly 12% on 2004, and a total profit of EUR 4.9bn (EUR 20.5m), the same as in
2004.
Bobinac said the company was happy with current operations. It has been a difficult year for
Gorenje, but we have managed to produce good results, he said.
HIT to Build Casino near Austria
The entire entertainment complex, which will be worth between EUR 70m and 75m, is to
employ around 300 people
Gaming company HIT has launched a campaign for a new gaming centre in Sentilj, a town in
NE Slovenia on the border with Austria.
The entire entertainment complex, which will be worth between EUR 70m and 75m, is to
employ around 300 people, HIT chairman Branko Tomazic told the press on Monday, 19
December.
The plan for the new centre, of which the main facility will be a casino with 570 gaming
machines and 18 live tables, is based on HIT's strategy of combining different forms of
entertainment.
The facility will also include a multipurpose hall for 1,000 visitors, restaurants, bars and a
hotel offering 90 rooms. There will be 800 outdoor and 200 indoor parking lots.
The company expects the centre to attract more than half a million visitors a year.
Construction works are to begin in the middle of 2006, with the aim being to complete the
entire complex in 2007.
Sentilj Mayor Edvard Cagran said he was aware of the importance of this project, which is the
result of five years of talks between Sentilj and HIT, for the municipality, especially because
of its high unemployment rate.
16
This project is a part of an aggressive expansion drive by the Nova Gorica-based company. In
2006 alone, HIT plans to invest EUR 120m into the renovation of existing and construction of
new facilities.
HIT is currently renovating the Park gaming centre in Nova Gorica and building a new hotel
near its largest entertainment venue, Perla, also in Nova Gorica.
In the January-October period, the company generated revenues of SIT 44.8bn (EUR
186.98m), up 16% on the same period last year, and made a profit of SIT 6.3bn (EUR
26.29m).
More than 1.3 million guests visited the company's casinos around Slovenia in the first ten
months of this year.
Helios Reappoints Incumbent CEO
The supervisors also confirmed a business plan for 2006 which sees the Helios group
increase its revenues by 13%
The supervisory board of chemical group Helios unanimously reappointed on Monday, 19
December its current chief exec Uros Slavinec for another five years at the helm of the
Domzale based company.
The supervisors also confirmed a business plan for 2006 which sees the Helios group increase
its revenues by 13%.
According to the Domzale-based company, Helios will place a lot of emphasis on developing
new, environmentally-friendly products, and plans to expand through takeovers.
The supervisors also discussed projected sales for 2005, which should be 33% higher over
2004, but because of a price hike of raw materials, the group's profit is expected to remain
more or less on its 2004 level.
The group generated a net profit of SIT 1.97bn (EUR 8.22m) in the first half of the year,
down 10% year-on-year, on sales which were up 45% in the same period to SIT 27.32bn
(EUR 114.03m).
A fall in the net profit is a consequence of a drop in operating profit, which amounted to SIT
1.99bn (EUR 8.3m). The group attributed the fall to the exceptional growth of prices of raw
materials, especially those based on oil prices.
Istrabenz Plans Net Profit of EUR 16.15m in 2006
The supervisory board of holding Istrabenz confirmed the company's business plan for 2006
in which Istrabenz projects a net profit of SIT 3.87bn (EUR 16.15m)
The supervisory board of holding Istrabenz confirmed on Tuesday, 20 December the
company's business plan for 2006 in which Istrabenz projects a net profit of SIT 3.87bn (EUR
16.15m).
At its session the supervisors also heard that the company plans an operating profit of SIT
8.3bn (EUR 34.64m), while its operating revenues would rise to SIT 173bn (EUR 722.1m).
Its energy department aims at retaining or increasing its market share in Slovenia (currently at
46% in liquefied petroleum gas and 20% in natural gas).
In the same year its tourism companies anticipate an increase in revenues, mainly due to a rise
in the number of overnight stays. It plans SIT 1.9bn (EUR 7.9m) in fixed-assets investments.
Telekom Shareholders to Meet in January
The supervisory board of the national telco Telekom Slovenije has proposed that the
management call a general meeting on 31 January 2006
The supervisory board of the national telco Telekom Slovenije has proposed that the
management call a general meeting on 31 January 2006, the company said on Tuesday, 20
December, a day after the supervisors met for a session.
17
At the general meeting, Matjaz Jansa of the Economics Ministry directorate for electronic
telecommunications would step down as a representative of the state on the supervisory
board.
The shareholders would then appoint a new member of the supervisory board, most likely
Pavel Zakelj, a former member of the Telekom management.
Jansa's withdrawal comes after the European Commission issued a formal warning to
Slovenia for failing to ensure full independence of the national telecommunications regulatory
authority.
The Commission claimed that the ministry in charge of telecommunications had certain
regulatory tasks and was simultaneously involved in the management of the fixed line phone
operator, while the two activities should be separated.
Responding to the warning, the acting head of the Agency for Post and Electronic
Communications Tomaz Simonic said that the regulatory body in Slovenia was not the
ministry's directorate, which Jansa heads, but the Agency.
The Telekom supervisors meanwhile appointed Danilo Ofentavsek the manager of Telekom's
newly-established subsidiary. Teledat, which will be in charge of telephone directories and
data base management, will start operating on 1 January.
A debate on the group's business plan for the 2006-2009 period was put off until the next
session.
Ministry Decides Not to Give Out 2005 Business Excellence Award
The Slovenian Business Excellence Awards board decided not confer the main award for this
year, saying that none of the nominated companies succeeded in meeting all the excellence
criteria
The Slovenian Business Excellence Awards board decided not confer the main award for this
year, saying that none of the nominated companies succeeded in meeting all the excellence
criteria.
According to the board's chairman, Economics Minister Andrej Vizjak, the decision is aimed
at preserving the good reputation of the award, which is considered the most prestigious state
prize in business.
As Vizjak told the press in Ljubljana on Wednesday, 21 December, the candidates - a total of
ten companies were competing this year - only achieved excellence in some of the assessed
fields.
However, the board did hand out a number of certificates, four of them to companies
shortlisted for the main award: retailer Mercator, spa resort Zdravilisce Radenci, the ecocompany Esotech and the Novo mesto hospital.
The Slovenian Business Excellence Award was conferred for the first time in 1998. The
previous winners are software company Hermes Softlab, car manufacturer Revoz, maker of
electrical automotive components Iskra Avtoelektrika, holding company Sava, waste
management company Saubermacher&Komunala, manufacturer of prefabricated construction
panels Trimo, port manager Luka Koper, food company Eta and fuel trader Petrol.
Post Looking to Expand to Ex-Yugoslav Markets
The Post's operating revenues reached SIT 40.4bn (EUR 169m) in the first ten months of
2005, up 11% over the same period last year
Apart from holding talks with several potential strategic partners we are also considering
acquiring a postal service in one of the countries of the former Yugoslavia, Ales Hauc,
director of the Post of Slovenia told the daily Vecer on Wednesday, 21 December.
18
According to Hauc, the liberalisation of the Slovenian postal market after 2009 will enable
any company, if approved by the telecommunications watchdog APEK, to enter the postal
services market in the country.
He told the Maribor-based daily that the Post of Slovenia will link up with a foreign strategic
partner to be fully prepared when that time comes.
Hauc, however, did not specify the company that the Post is negotiations with on partnership.
He explained only that he has held talks with "the biggest players in the sector", such as the
postal services in Germany, Austria, Switzerland, France and others.
A strategic partner would give the Post a better international position, especially by securing
cheaper and easier access to international distribution routes, Hauc told Vecer.
The partner would get a 25% share in the company, while the state would retain a 75% stake
plus one share. Hauc does not advocate the sale of a majority stake in the Post at the moment,
adding that the government would have the final word.
"This is our first international breakthrough, while the second be a takeover of a postal service
in one of the countries of the former Yugoslavia," he said, adding that the Post already held
talks with representatives of the Macedonian and Croatian postal services.
Hauc also told Vecer that the Post's operating revenues reached SIT 40.4bn (EUR 169m) in
the first ten months of 2005, up 11% over the same period last year. Its pre-tax profits of SIT
4.4bn (EUR 18.36m) make 2005 the best year ever for the company, he added.
Mercator to Support Constitutional Court Review
Slovenia's largest grocer Mercator has announced its plan to join other grocers in their
initiative to take the changes to the trade act to the Constitutional Court
Slovenia's largest grocer Mercator has announced its plan to join other grocers in their
initiative to take the changes to the trade act to the Constitutional Court.
We believe that the act which stipulates that, with some exceptions, shops will be closed on
Sundays as of 2006, limits the freedom of enterprises, the company explained on Wednesday,
21 December.
Mercator will also have to reduce the number of its employees, but will try to keep layoffs to
a minimum by redistributing its workforce to newly-opened shops throughout the country.
The company added that they intend to abide by the law and adjust to the needs and demands
of their customers, however, predicted that the yearly turnover will surely decrease as a
consequence of the act.
According to their projections, some 25% of the Sunday traffic will not be redistributed to
other days of the week, with some people doing their Sunday shopping abroad, the company
explained.
As the act allows that shops can stay open for up to ten Sundays every year, Mercator shops
will remain open on those Sundays that the company deems commercially the most
interesting.
CPO Rejects Remainder of Western Wireless International Claim
The competition watchdog rejected the remainder of the claim by Western Wireless
International (WWI) in which the company accused Slovenia's leading mobile operator
Mobitel of obstructing competition
The competition watchdog rejected the remainder of the claim by Western Wireless
International (WWI) in which the company accused Slovenia's leading mobile operator
Mobitel of obstructing competition.
The Competition Protection Office (CPO) thus supplemented its mid-June decision in which
it rejected a number of grievances of the WWI directed against the state and the state-owned
Mobitel in May 2005.
19
The CPO stated that Mobitel did not use unfair pricing to strengthen its market position.
"We have found that prices of calls within the Mobitel's network are higher than the expenses
and that therefore the company is not abusing its position," said CPO head Andrej Plahutnik.
The decision is final, however, could be challenged at the Administrative Court, which is
exactly what the WWI intends to do, the company said.
Delo Takes Over Right-Leaning Weekly
Slovenia's leading news publishing group Delo has acquired right-leaning weekly Mag in a
deal that had been expected for weeks
Slovenia's leading news publishing group Delo has acquired right-leaning weekly Mag in a
deal that had been expected for weeks.
Delo wishes to increase its presence on the printed media market, the group said in a press
release, adding that it expects to attract a new group of readers with Mag.
The decision to buy Mag - the terms of the deal were not disclosed - is in line with the longterm strategy of the company.
According to the press release from Delo, all 15 journalists of Mag will join Delo.
The acquisition comes a little over two months after the editor-in-chief of Mag Danilo Slivnik
was appointed to the Delo supervisory board.
Power Producer HSE to Finish Year with Profit of EUR 58.5m
The group's revenues are expected to stand at SIT 145.5bn (EUR 607m), which is 25.7% more
than last year
Slovenia's leading power producer, HSE, is to finish the year with a net profit of SIT 14bn
(EUR 58.5m), which is in line with plans. The group's revenues are expected to stand at SIT
145.5bn (EUR 607m), which is 25.7% more than last year, HSE officials told the press on
Thursday, 22 December.
"We are ending this year satisfied," HSE director Joze Zagozen said. The results, he said,
pave the path for a successful 2006, when the group plans to invest extensively in expanding
production.
"We plan to increase output by 11% and net sales revenues by 19%," Zagozen announced.
The group expects to have produced 6,716 gigawatt-hours of electricity in 2005, which is
14% above plans, although 6.6% below last year's output.
Meanwhile, assistant director Milan Medved announced that the group intends to continue
downsizing its workforce. By the end of 2006, the group expects to employ 4,400 workers.
According to Medved, HSE is to invest SIT 28bn (EUR 117m) next year, mostly in expanding
production. Zagozen said that the single most important project for the company next year
will be the construction of hydro plants on the Sava river.
Moreover, Zagozen said the group was looking to make a breakthrough on the markets of the
former Yugoslavia and other neighbouring countries, including Hungary.
He said that the group has already held talks with government officials in some of these
countries. "I think we will manage to agree on projects for which we will be doing the
construction or in which we would be acting as a strategic partner," he said.
Struggling Mura Plans Radical Restructuring
Presenting a ten-year business plan, Meh said Mura wanted to become a leading fashion
company in central and northeast Europe, catering for the most demanding market segment
The cash-strapped clothes maker Mura plans to transform itself from a manufacturing to a
fashion company over the next ten years, chairman Borut Meh told the press on Thursday, 22
December.
20
Presenting a ten-year business plan, Meh said Mura wanted to become a leading fashion
company in central and northeast Europe, catering for the most demanding market segments.
Meh added that the company plans to reduce its workforce from the current 4,000 to 1,950 at
the most in the next ten years, while the company also plans to increase its revenues from the
current EUR 85m to EUR 127m.
The plan also envisages Mura marketing its brands in the countries of the former Yugoslavia
and expanding to the rest of Europe. It will target the middle and the high price segments.
He explained that Mura's management is not happy with the company's business results,
although it is nevertheless proud of what it has achieved in an embattled sector.
The key point of the strategy is establishing new outlets, with the management planning to
double its existing points of sale to 120 by 2015, with income per employee trebling to EUR
65,000.
He rebuked criticisms about the EUR 10m in state aid the company got this year, claiming
that the company paid EUR 40m in social contributions. Mura [the largest single employer in
Slovenia's impoverished northeast] is an economic as well as a social project, he said.
The company generated a loss of SIT 607m (EUR 2.53m) in the first nine months of 2005,
and expects to post an additional SIT 200m (EUR 834,800) in losses by the end of the year.
Government Adopts Privatisation Programme for Steel Group
The cabinet has adopted a privatisation programme for the Slovenian Steel Group with which
it intends to reduce its stake in the group to 25% plus one share over the next two years
The cabinet has adopted a privatisation programme for the Slovenian Steel Group with which
it intends to reduce its stake in the group to 25% plus one share over the next two years.
In line with the plan, confirmed at a cabinet session on Thursday, 22 December, the
government would form two lots of shares: a 25% plus one share stake that it would retain
and a 55.35% stake that it would sell.
The government said that intends to find a "principal owner" for the group who would be able
to assume the extensive business and social responsibilities associated with running such an
important corporation.
Another goal for the government will be to maximise the selling price, with which it intends
to reduce Slovenia's public debt.
The primary purpose of the privatisation is to raise the efficiency and the competitive ability
of Slovenia's steel industry by finding a right ownership structure for the group, the
government said.
The new privatisation programme replaces the plan adopted in 2001 that failed to produce
major results.
Unlike the old programme, the new scheme envisages the sale of the group as a whole instead
of the sale of subsidiaries piece-by-piece.
Moreover, the new scheme also includes a contingency plan in case the sale of the majority
stake does not produce the desired results: the government has the option of breaking up the
majority stake into a number of smaller stakes and selling those off to a number of investors,
including portfolio investors.
The majority stake in the Steel Group has been placed on the government's list of state
property earmarked for sale in 2006 and 2007.
The Slovenian Steel Group is made up of six steel producers, the biggest being Acroni
Jesenice and Metal Ravne.
21
Planika Subsidiary Acquired by Germany's Meindl
In line with the deal, the new owners will pay the SIT 390m (EUR 1.62m) acquisition price in
six months and will keep all 243 Planika Turnisce employees
German footware company Meindl and Slovenia's Bema Group have acquired the defunct
subsidiary of bankrupt Slovenian footwear producer Planika in Turnisce (NE), Planika
administrator Andrej Marinc told the press on Thursday, 22 December.
In line with the deal signed by Meindl and Bema Group with Marinc, the new owners will pay
the SIT 390m (EUR 1.62m) acquisition price in six months and will keep all 243 Planika
Turnisce employees.
This was a rare bankruptcy case which ended with the bankrupt company retaining its
production, he explained.
According to Marko Zilnik of Bema Group, the new owners intend to increase output at the
plant as the demand for high-end footwear is on the rise.
Planika Turnisce will continue to produce footwear for the Meindl company, as it had done
for the past 20 years.
Apart from producing some 250,000 pairs of shoes for Meindl, the plant will also produce
around 50,00 pairs of hiking shoes, with the new owners currently holding talks with specialty
footwear material producer Goretex on new materials.
State Funds Block Capital Injection at Merkur
Although a majority of Merkur's shareholders were in favour of the proposed capital
injection, the motion needed the backing of at least 75% of the present shareholders
The state-run Restitution Fund (SOD) and Pension Fund Management (KAD) have blocked a
proposal for a SIT 10.3bn (EUR 43m) capital injection at hardware trader Merkur. The two
funds, which together hold 26% of Merkur, voted against the management's proposal to issue
300,000 new shares to finance expansion of the company's sales network.
Although a majority of Merkur's shareholders were in favour of the proposed capital injection,
the motion needed the backing of at least 75% of the present shareholders.
In spite of the setback, the management of Slovenia's largest hardware store chain said it
would not backtrack on plans to expand its sales network in Slovenia and the former
Yugoslavia.
The management now intends to look for other ways of raising the cash needed to finance the
expansion, the company said in a press release.
Among other things, the company can issue 98,000 new shares in line with a decision taken
by the shareholders in 2003.
The company plans to invest up to EUR 300m in the expansion of its retail and wholesale
network in the next five years.
KD Group Scraps Plan for Control of Delo Supervisory Board
The reshuffle of the Delo supervisory board was prompted by the recent ownership changes at
Slovenia's largest news publishing group
Asset management firm KD Group scrapped its plan to gain control of the supervisory board
of Slovenia's leading news publishing group, Delo, at a general meeting on Friday, 23
December, opting instead for a proposal that secured wide backing among large shareholders.
Delo shareholders confirmed the appointment of three new supervisors - half of the board but only after KD Group came up with a new proposal that replaced its motion from 21
November.
The new supervisors are Boris Zupancic from hardware retailer Merkur; director of the
alternative radio station Radio Student Dejan Jelovac, who is linked to KD Group; and
economist Zan Jan Oplotnik, who is linked to beverage group Pivovarna Lasko.
22
They replace Tomaz Kuntaric of the state-run Pension Fund Management (KAD), Tone
Turnsek of Pivovarna Lasko and Tomaz Kosir of the NLB bank.
The reshuffle of the Delo supervisory board was prompted by the recent ownership changes at
Slovenia's largest news publishing group. KD Group gained a 19.99% stake in the company in
November.
KD Group's initial plan was to gain at least two seats on the supervisory board, with the firm's
chairman Matjaz Gantar tipped to be one of the supervisors.
However, the company scrapped that plan after it found that its original goal of gaining a
majority stake in the publisher could not be met in the near run.
According to KD Group, the existing owners of Delo (Lasko is the biggest with nearly 25%)
have so far shown no interest in selling their stakes in the daily.
However, the group indicated that it would continue trying to find a seller so that it could
raise its stake in Delo.
The newly-appointed supervisors will join Robert Sega of Pivovarna Lasko, who retained the
position of the board's chairman, Zenja Leiler Kos and Milan Grad.
Port of Koper and Slovenian Railways Sign Cooperation Deal
General Manager of Slovenian Railways Joze Jurkovic said that the purpose of the new
agreement was to coordinate the services of both firms and to facilitate cooperation
The Slovenian Railways and port operator Luka Koper signed on Friday, 23 December in
Ljubljana a business cooperation deal that upgrades a similar agreement from 1997 that had
become obsolete due to increased business between the two companies.
General Manager of Slovenian Railways Joze Jurkovic said that the purpose of the new
agreement was to coordinate the services of both firms and to facilitate cooperation.
"Our aim is to boost cargo transport to and fro the port of Luka Koper," he explained and
added that the deal also aims at establishing a more symbiotic relationship between the
companies.
Luka Koper chairman Robert Casar meanwhile said that his company and the Slovenian
Railways are the most important logistics and transport companies in the country.
The aim of this agreement is to move as much cargo as possible and as quickly as possible to
the most distant destinations, he added.
According to Casar, the companies are also planning to undertake joint projects on foreign
markets. He also made a call for Slovenian rail infrastructure to be upgraded as quickly as
possible.
Luka Koper backs plans for a second rail line between the port and the rail hub of Divaca,
which has connections to Italy and Ljubljana. "The sooner the works begin the better," he
stressed.
Casar's wish was echoed by Jurkovic, who added that the Slovenian Railways moved 5.24
million tonnes of cargo from Slovenia's lone maritime port in the first ten months of 2005, a
5% increase over the same period in 2004.
23
SLOVENIA IN BRIEF
Consumers' Association Publishes Euro Guide
The Slovenian Consumers' Association, with the support of the Office for Consumer
Protection, has published a booklet which aims at providing consumers with the details of
euro coins and banknotes, double pricing and other euro adoption-related issues.
Ministry to Encourage Medical and Technical Studies
The trends in students enrolling for different studies are worrying, with not enough students
opting for medical and technical studies, Higher Education Minister Jure Zupan told the press
on Tuesday, 20 December in Ljubljana.
Parliament Says No to Sunday Shopping
The parliament has backed the changes to the trade act which stipulates that, with some
exceptions, shops will be closed on Sundays as of 2006. The changes, backed in a 48:18 vote
on Tuesday, 20 December, will put in practice the outcome of the 2003 referendum on the
issue. Retailers will now be unable to have shops open every Sunday or bank holiday, but will
be limited to ten Sundays a year if they sell essential goods. Nevertheless, there are several
exceptions to the rule.
Krajc Named to Head Government PR Office
The government dismissed head of its Media and PR Office Matjaz Kek and appointed
Gregor Krajc the acting director effective as of 1 January next year, the cabinet said after its
session on Thursday, 22 December.
Drnovsek Receives Representatives of Bosnian Muslim Community
Slovenian President Janez Drnovsek received Mustafa Ceric, the highest representative of the
Muslim community in Bosnia-Herzegovina on Friday, 23 December.
24