Slovenia Business Week no 41, December 18, 2006
Table of Contents:
HEADLINES ............................................................................................................................. 3
FT Sees Slovenia Leaping into International Spotlight ......................................................... 3
IMAD Official Reiterates Need to Save for a Rainy Day ...................................................... 3
EBRD Plans to Withdraw from Slovenia in 2010, Official Says ........................................... 4
INTERNATIONAL COOPERATION ...................................................................................... 6
Ambassador Labels 2008 Key Year for Slovenia and France ............................................... 6
Minister Calls for Closer Ties with Central Asian Countries ................................................ 6
Government Elevates Turkey Consulate into Consulate General .......................................... 7
Minister Says Agreement on Russian Clearing Debt Forthcoming ....................................... 7
Slovenia and Djibouti Establish Diplomatic Relations .......................................................... 7
Jansa and Chirac Discuss Franco-Slovenian Relations .......................................................... 8
EUROPEAN UNION ................................................................................................................. 9
Foreign Ministers Unveil Joint EU-Presidency Programme .................................................. 9
European Commission Recommends Pension Reform to Slovenia....................................... 9
Germany, Portugal and Slovenia Tugging in Same Direction ............................................. 10
Social Partners Approve Open Labour Market for New Members ...................................... 11
Jansa: Turkey and Western Balkans not in the Same Boat .................................................. 11
PM Jansa Believes in Efficiency of Common Immigration Policy ..................................... 12
Slovenia Opens New Permanent EU Representation Offices .............................................. 12
LEGISLATION ........................................................................................................................ 14
Government Adopts Decree Tax Breaks for Research ........................................................ 14
Government Adopts Bill on Amending Economic Zones Act ............................................. 14
STATISTICS/FORECASTS .................................................................................................... 15
Slovenia Paid Out EUR 100m in State Aid in 2005 ............................................................ 15
Average Monthly Labour Costs per Employee at EUR 1,695 in 2005 ................................ 15
Wages Up 1.7% in October .................................................................................................. 15
FINANCE................................................................................................................................. 16
Pension Fund Management Financial Plan Endorsed .......................................................... 16
No2 Insurer to Swell by EUR 13.77m in Five Years ........................................................... 16
Strategic Council Opposes New Taxes ................................................................................ 16
Insurer Triglav Gains Control of Montenegro's Lovcen ...................................................... 17
Euro Cash Fully in Place Ahead of E-Day ........................................................................... 17
Swedish Group Launches Bid for Ljubljana Stock Exchange ............................................. 18
Banks Start Selling Euro Coin Starter Sets .......................................................................... 18
NKBM Beats 2006 Targets by End of November ............................................................... 19
Ljubljana Stock Exchange .................................................................................................... 19
Foreign Exchange ................................................................................................................. 20
REGIONAL INFORMATION ................................................................................................ 21
Ljubljana Introduces Online Bus Ticket Booking................................................................ 21
BRANCH INFORMATION .................................................................................................... 22
Ministry Says Energy Efficiency Directive on Track .......................................................... 22
Government Adopts 2007 Tourist Board Operational and Financial Plans ......................... 22
Games Remain Top Query at Najdi.si Search Engine ......................................................... 22
COMPANIES ........................................................................................................................... 24
Power Giant HSE to Generate Over EUR 33M in Net Profit in 2006 ................................. 24
Vipa Takes Over Vipa Holding, Increases Stake in Mlinotest ............................................ 24
Serbian Court Upholds Krka's Appeal on Zyllt Sales Ban ................................................... 25
Flag Carrier Plans Link with Kiev ....................................................................................... 25
Food Group Panvita Increases Revenues, Profits in 2006 ................................................... 25
Gorenje Shareholders Opt for 15% Capital Increase ........................................................... 26
Mercator Plans to Raise Profit by 13.5% to EUR 30.4M in 2007 ....................................... 26
Klobas Appointed Executive Director of European Outlook Centre ................................... 27
Technical Goods Chain Presents Upbeat Plans for 2007 ..................................................... 27
Steel Group Ups Revenues, Profit Down ............................................................................. 28
Investment Agency to Get EUR 67m in 2007 ...................................................................... 28
BTC Revenues Beat SIT 10bn Mark.................................................................................... 28
Sava Sees EUR 44.2m EUR Profit by 2011......................................................................... 29
Adria Airways Supervisors Endorse Cash Injection ............................................................ 29
Etol Shareholders Endorse Spin-Off of Financial Operations ............................................. 30
Slovenian Company to Build Hotel Complex in Moscow ................................................... 30
ISP Siol to Merge with Parent Telco .................................................................................... 30
HSE to Take over Republika Srpska Power Plant ............................................................... 31
SLOVENIA IN BRIEF ............................................................................................................ 32
Tabloid Direkt Parts with Editor Pozar ................................................................................ 32
Transport Ministers Fail to Agree on Galileo HQ Location ................................................ 32
EU Issues Second Warning to Slovenia Over Energy Efficiency ........................................ 32
Slovenia Opens Consulate in Linz ....................................................................................... 32
Postal Company Surprised to be Blacklisted over Price Hikes ............................................ 32
RC Research Centre Headquarters Open in Maribor ........................................................... 32
Ski Season Kicks Off ........................................................................................................... 32
2
HEADLINES
FT Sees Slovenia Leaping into International Spotlight
The Financial Times (FT) believes that Slovenia faces two significant milestones over the next
13 month
The Financial Times (FT) believes that Slovenia faces two significant milestones over the
next 13 months. The 1 January 2007 euro changeover and the 2008 presidency over the EU
will "dramatically raise the tiny country's visibility in the world and put the European Union's
embrace of ex-communist countries to a new test", FT writes on Wednesday, 13 December.
Slovenia will be the first of the 2004 EU newcomers to adopt the euro, thus "formally
completing Slovenia's transition from planned economy to a full member of Europe's
competitive single market".
In the first half of 2008, Slovenia will "inherit the EU's rotating six-month presidency, another
first for a new member from the east and a signal of confidence from larger member states",
the daily writes.
FT moreover says that should Slovenia prove successful in both, it could "help revive the
faded feeling" among the eight 2004 EU newcomers that they are not being snubbed by
Brussels and core EU countries.
It adds that Slovenia's opportunity to take control over "EU's political machinery" will also
represent a challenge for the small country.
"Slovenia could also find itself playing an important role in attempts to revive the EU's failed
constitution and reform its finances," the daily writes.
IMAD Official Reiterates Need to Save for a Rainy Day
An official at the leading government economic think-tank said that Slovenia should save for
a rainy day during the current strong economic spell, as she responded to a report from the
European Commission calling on Slovenia to prepare for the economic effects of an ageing
population
An official at the leading government economic think-tank said that Slovenia should save for
a rainy day during the current strong economic spell, as she responded to a report from the
European Commission calling on Slovenia to prepare for the economic effects of an ageing
population.
"Spells of strong economic growth should in principle be utilised for improving the state of
public finances," Marija Bednas of the Institute for Macroeconomic Analysis and
Development said on Wednesday, 13 December.
In her response to the European Commission's report that calls on Slovenia to enact "stronger
measures to ensure the sustainability and adequacy of the pension system", Bednas said that
the current low level of the public debt ensures a safety net for when times get tougher.
The 2007 and 2008 budgets show that there will be no increase in government debt, Bednas
pointed out.
While praising the tax reform in Slovenia, the Commission questioned on Tuesday, 12
December whether efforts to curb public spending were sufficient.
Bednas meanwhile believes that suitable measures have been taken in the field of pension
reform, which should contribute to the long-term sustainability of public finances.
She said that additional measures, including a strategy on active ageing, were in the works
and would be implemented in the coming years.
3
In its report, the Commission also criticised Slovenia's "very gradual increase in the pension
age (61 for women in 2013 and 63 for men in 2008)", while financial incentives to work
longer are "weak".
EBRD Plans to Withdraw from Slovenia in 2010, Official Says
The head of the European Bank for Reconstruction and Development's (EBRD) operations in
Slovenia has said the institution plans to withdraw from Slovenia in 2010 because there is no
longer a need for its presence here
The head of the European Bank for Reconstruction and Development's (EBRD) operations in
Slovenia has said the institution plans to withdraw from Slovenia in 2010 because there is no
longer a need for its presence here.
The EBRD, which invests in countries making the transition to a market economy, has plans
to invest in Slovenian companies until 2010, after which it intends to leave the country,
Francois Lecavalier told a press conference in Ljubljana on Friday, 15 December.
"Slovenia has achieved transition... This probably means that the EBRD can stop investing in
Slovenian companies in 2010," the EBRD's director for Slovakia, the Czech Republic,
Hungary and Slovenia said.
He explained that the withdrawal of the EBRD from Slovenia did not mean that the bank
would no longer work with Slovenian companies, as he believes that they will continue to be
partners in investing in less developed countries.
According to him, the EBRD is pleased with the current state of the Slovenian economy. He
said Slovenia's economic success was reflected by its forthcoming adoption of the euro.
"But this success is based on past macroeconomic performance. The country really can't rest
on its laurels. It has to keep going forward and that means taking action to improve
competitiveness."
According to him, Slovenia must persist with efforts to implement structural reforms, as this
is the only way to attract investors.
The measures taken in the tax department must now be followed by changes in the structure
of public spending, he added.
There needs to be a "reduction in the role of the state in the economy", Lecavalier added.
He said he welcomed the government's plans for the privatisation of telco Telekom Slovenije
and the Slovenska industrija jekla steel group, but added that it was time to see results.
Moreover, Lecavalier said that Slovenia needed to improve corporate governance in order to
offer greater protection to small shareholders. Red tape must be cut in order to facilitate
enterprise, he added.
He also called for labour market reforms: "If you cannot fire people, you will not hire people."
According to Lecavalier, the EBRD is interested in taking part in the capital injection at home
appliance group Gorenje. He said the capital increase was an opportunity for the state to
reduce its role in the company.
Commenting on the operations of NLB, the largest bank in Slovenia, he said it failed to
achieve its goal of becoming a strong regional player.
He put the failure down to a lack of capital and added that the EBRD would, in its capacity as
a financial investor in NLB, put pressure on the management to implement the bank's
strategy.
Lecavalier added that the EBRD would be willing to take part in the privatisation of NKBM,
Slovenia's second-largest bank. He added there had been little progress on this front so far.
While saying that the NKBM was neither a poor nor a great bank, Lecavalier said there was
no need for it to be sold to a foreign bank.
4
According to him, the state must launch the sale of the bank in order to maximise its takings
from the sale. The EBRD could act as a financial investor by buying a 10-15% stake, he
added.
The EBRD has so far invested over EUR 600m in the Slovenian economy. The value of its
current portfolio in Slovenia stands at EUR 266m.
5
INTERNATIONAL COOPERATION
Ambassador Labels 2008 Key Year for Slovenia and France
However, bilateral cooperation needs to be strengthened in order to ensure a seamless
transition between the presidencies, the ambassador added
The year 2008 will be very important for the relations between Slovenia and France as France
will be taking over from Slovenia as EU president, the recently-arrived French Ambassador to
Slovenia Chantal de Ghaisne de Bourmont told STA on Monday, 11 December.
However, bilateral cooperation needs to be strengthened in order to ensure a seamless
transition between the presidencies, the ambassador added.
Improving this cooperation will form the major part of my mandate in Slovenia, the former
French ambassador to Estonia added.
She also explained that, due to the April 2007 presidential election and the June parliamentary
election in France, high-level state visits of French officials are not expected before
September 2007.
De Ghaisne de Bourmont described relations between the two countries as "quite good" and
problem-free, however, pointed out that "we do not know each other so well", as she paid a
visit to the STA.
The EU is not about everybody agreeing on everything but rather about mutual
understanding," she noted.
The ambassador was also positively surprised over the level of economic cooperation.
"Things can always be improved, but there are no major issues in this area," she said.
Minister Calls for Closer Ties with Central Asian Countries
Economy Minister Andrej Vizjak wants Slovenia to improve economic relations with
Azerbaijan, Uzbekistan and Tajikistan
Economy Minister Andrej Vizjak wants Slovenia to improve economic relations with
Azerbaijan, Uzbekistan and Tajikistan. The three central Asian countries expressed the same
wish, Vizjak added after meeting their representatives in Moscow on Tuesday, 12 December.
Vizjak, attending a session of the Regional Communications Union (RCU) assembly meeting,
added that Slovenia cooperates well with Azerbaijan and Uzbekistan, while there is room for
improvement in cooperation with Tajikistan.
Vizjak pointed out that exports of Slovenian goods and services had grown by 30% to 80% in
2006, in comparison with 2005. He explained that telecommunication company Iskratel is
Slovenia's most widely known company in the region.
He revealed that Iskratel is about to sign a deal with Uzbekistan, a country that also wants
more involvement in new Iskratel products.
Vizjak's meeting with the Azeri minister of communications and information technology,
Uzbekistan's deputy prime minister and Tajikistan's deputy transport minister was also
attended by representatives of Iskratel and Matjaz Jansa, the head of the electronic
communications directorate at the ministry.
Slovenia meanwhile got observer status at the assembly. "Slovenia and Lithuania are the only
EU members with observer status, which is very important for Slovenian companies'
breakthrough on these fast-developing markets."
Vizjak, who began his four-day visit to Moscow on Monday, 11 December, will meet the
deputy Russian finance minister to discuss Russia's US$ 129m clearing debt to Slovenia.
6
Government Elevates Turkey Consulate into Consulate General
It appointed entrepreneur Mustafa Basar Arioglu the honorary consul general there
The cabinet decided on Wednesday, 13 December to promote the consulate in Istanbul into a
consulate general. It appointed entrepreneur Mustafa Basar Arioglu the honorary consul
general there, the Government PR and Media Office said after the cabinet's session.
The cabinet moreover decided to set up a consulate in Mission Hills, Kansas, to cover the US
states of Kansas and Mississippi. The cabinet appointed Barbara Koval Nelson, a journalist
and media expert, the honorary consul.
The government moreover discussed international donor programmes to help reduce global
poverty. While Slovenia earmarked SIT 7bn (EUR 29.21m) for such aid in 2005, it wants to
raise that amount to over SIT 11bn (EUR 46m) by 2010.
Minister Says Agreement on Russian Clearing Debt Forthcoming
A Russian-Slovenian agreement on the payment of Russia's clearing debt could be reached
before the end of the year, Economy Minister Andrej Vizjak told the press
A Russian-Slovenian agreement on the payment of Russia's clearing debt could be reached
before the end of the year, Economy Minister Andrej Vizjak told the press in Ljubljana on
Thursday, 14 December.
Speaking after returning from a three-day visit to Russia on Wednesday, 13 December, Vizjak
said that the conclusion of his discussions with Russian officials was that technicalities
needed to be sorted out before the deal was finalised.
A Russian delegation is therefore expected to be visiting Ljubljana next week in a bid to
conclude a deal.
Vizjak said the government would do everything in its power to ensure that it confirms a deal
before the end of the year. He added that Deputy Russian Finance Minister Sergei Storchak
promised the Russian government would do the same.
"We took three steps towards a final deal, something that was not achieved by others before
us," said Vizjak, adding that the prolonged activities on the debt have been costly for
Slovenia.
The Russian clearing debt stands at US$ 130m and is not subject to interest, he pointed out.
Vizjak added that the debt would be cleared with goods, but if that is not possible than a cash
payout is expected.
He said the Russian officials agreed with the Slovenian proposal that the period for which
goods can be used as a means of repayment be capped to three years.
The Slovenian government believes that a part of the debt should be paid in equipment, where
all types of goods are eligible, including military equipment.
The issue of the debt stemming from trade between the former Soviet Union and the former
Yugoslavia has been a topic of discussions since Slovenia's independence in 1991.
Although the countries reached an agreement in principle in December 2003, Russia later
shied away from the deal.
Talks on the issue hit a standstill in 2004 and were opened again in May of this year, during a
visit by PM Janez Jansa to Moscow, as Russia unveiled a new proposal.
Slovenia and Djibouti Establish Diplomatic Relations
Slovenia and the small African nation of Djubouti have established diplomatic relations
through their ambassadors to the UN
Slovenia and the small African nation of Djubouti have established diplomatic relations
through their ambassadors to the UN.
7
The outgoing Slovenian Ambassador to the UN Roman Kirn and his counterpart from
Djubouti Roble Olhaye on Tuesday, 12 December exchanged charters on the establishment of
diplomatic ties, the Slovenian Permanent Mission to the UN said on Thursday, 14 December.
At their meeting in New York the ambassadors discussed the political situation in the Horn of
Africa. They also spoke about Slovenia's preparations for the EU presidency in the first half
of 2008.
Djibouti became a republic 1977, when it gained independence from France. Unlike its
neighbours, the political situation in Djibouti has been stable since it witnessed the end of a
civil war in 2001.
Djubouti is of similar size to Slovenia. Its population of 500,000 is predominantly Muslim.
Jansa and Chirac Discuss Franco-Slovenian Relations
Prime Minister Janez Jansa met French President Jacques Chirac on the sidelines of the
proceedings at the EU summit in Brussels
European issues and Franco-Slovenian relations topped talks as Prime Minister Janez Jansa
met French President Jacques Chirac on the sidelines of the proceedings at the EU summit in
Brussels on Friday, 15 December.
According to the PM's office, Jansa thanked Chirac for French assistance in Slovenian
preparations for the EU presidency in the first half of 2008.
The pair also discussed the introduction of the euro in Slovenia on 1 January 2007, a
milestone for Slovenia, its citizens and economy.
The office reported Jansa as saying that Slovenia and France enjoyed strong political and
business ties.
Business exchange continued to flourish between the countries: in 2005 trade exceeded EUR
2bn for the first time, while Slovenia registered its first trade surplus, the PM's office added.
8
EUROPEAN UNION
Foreign Ministers Unveil Joint EU-Presidency Programme
Slovenia wants to stress enlargement, Western Balkans and intercultural dialogue, FM
Dimitrij Rupel said in Brussels as the troika of forthcoming EU presidents (Germany,
Portugal and Slovenia) unveiled their joint 18-month presidency programme
Slovenia wants to stress enlargement, Western Balkans and intercultural dialogue, FM
Dimitrij Rupel said in Brussels on Monday, 11 December as the troika of forthcoming EU
presidents (Germany, Portugal and Slovenia) unveiled their joint 18-month presidency
programme.
Slovenia will continue with endeavours for enlarging the Schengen no-border zone and the
eurozone, Rupel added.
It will continue accession talks with Turkey and Croatia and promote the European prospects
of the Western Balkan countries in a way that will be approved by the heads of state and
government at the forthcoming EU summit, he noted.
All members of the troika are convinced that Western Balkan countries belong to the EU and
"Slovenia will strive to provide active aid to these countries in completing reforms", he said.
In intercultural dialogue, the country wants to contribute towards a debate on Europe's
identity, based on a thorough discussion on the differences and similarities between
Christianity and Islam. Slovenia, which is to hold the EU presidency in the first half of 2008,
moreover aims at establishing a broad forum for such debate.
Rupel and his German and Portuguese counterparts, Frank-Walter Steinmeier and Luis
Amado, agreed that the idea of drafting a joint programme was beneficial and that the
ministers' cooperation was excellent.
Steinmeier and Amado agreed that the bloc is in crisis and that expectations regarding the
activities of the new joint presidency run high.
Steinmeier said that the programme is divided into three parts. The first involves a strategic
framework and was discussed with the EU presiding countries that will follow, France, the
Czech Republic and Sweden.
The second part involves the list of priority tasks in all policies and the third a comprehensive
programme on the items that are to be dealt with in the coming 18-month period, he added.
Germany's priority tasks include constitutional reform, neighbourhood policy towards the
EU's eastern and southern neighbours and sectoral agreements in the area of transport, energy
and the environment, Steinmeier revealed.
Portugal will meanwhile focus on implementing the goals of the Lisbon strategy strengthening employment and economic growth - and on preserving biotic diversity,
ensuring water supply and continuing sustainable development dialogue, Amado said.
European Commission Recommends Pension Reform to Slovenia
The European Commission called on Slovenia to enact "stronger measures to ensure the
sustainability and adequacy of the pension system and to promote active ageing," in order to
improve the long-term sustainability of its public finance
The European Commission called on Slovenia on Tuesday, 12 December to enact "stronger
measures to ensure the sustainability and adequacy of the pension system and to promote
active ageing," in order to improve the long-term sustainability of its public finance.
The Commission also criticised Slovenia's "very gradual increase in the pension age (61 for
women in 2013 and 63 for men in 2008)", while financial incentives to work longer are
"weak".
9
While the Commission said that Slovenia carried out several important steps in consolidating
public finance, mainly the tax reform, efforts to curb public expenditure and promotion of
moderate growth of wages, it is sceptical whether these measures would offset the lower
budget revenues, caused by reduced taxes.
Brussels called on Slovenia to "increase the employment rate of older workers" and promote
more flexible employment measures.
While the employment rate of the elderly rose to 30.7% in 2005, up 1.7 percentage points
over 2004, reaching the 35% target remains a challenge, the Commission wrote in the report.
The document moreover states that Slovenia should set realistic and tangible objectives in
promoting investment into research and development.
The Commission published the reports on the remaining EU members as well.
Germany, Portugal and Slovenia Tugging in Same Direction
The joint 18-month EU presidency programme by Germany, Portugal and Slovenia adheres
to the basic philosophy of "all tugging in the same direction" and aims at securing continuity
and coherent functioning of the bloc, German Ambassador to Slovenia Hans Joachim Goetz
said as the programme was presented in Ljubljana
The joint 18-month EU presidency programme by Germany, Portugal and Slovenia adheres to
the basic philosophy of "all tugging in the same direction" and aims at securing continuity and
coherent functioning of the bloc, German Ambassador to Slovenia Hans Joachim Goetz said
as the programme was presented in Ljubljana on Tuesday, 12 December.
State Secretary for European Affairs Janez Lenarcic, who unveiled the document to the public
alongside Goetz and Portuguese Ambassador Maria do Carmo Allegro de Magalhaes,
explained that the programme consists of three parts: a strategic framework, priority tasks and
a comprehensive programme.
The strategic framework includes issues that can be expected to be at the forefront of the
bloc's attention for years to come and have been harmonised with the troika that is to follow,
France, the Czech Republic and Sweden.
These issues involve areas, which are also to be given priority status by Slovenia, the bloc's
future, the Lisbon Strategy, intercultural dialogue and energy policy.
Lenarcic pointed out that the first troika will bear "the brunt of the burden" as far as defining
the bloc's future steps is concerned.
Germany is to put forward a proposal on how to take on the bloc's constitution, while Portugal
and Slovenia will try to find a solution for the document, rejected at the 2005 referendums in
France and the Netherlands, by the end of 2008.
Along with the Lisbon Strategy that will see new guidelines for its implementation adopted by
July 2008, Lenarcic also highlighted sustainable supply of energy as one of the central points
of the upcoming three EU presidencies.
In the field of freedom, security and justice, terrorism will continue to be one of the priorities
- side by side with the protection of human rights. So will asylum policy, migration policy and
the protection of the bloc's external borders.
The union will meanwhile try to increase its international influence by furthering a more
intensive dialogue with countries in its neighbourhood and in different regions: Portugal will
focus on Africa, Germany on the East, and Slovenia on the Western Balkans, Lenarcic
explained.
Continuity was also highlighted as the guiding principle of the troika by Goetz. He explained
that Germany would for example prepare everything for the EU-Africa summit that will take
place during the Portuguese presidency.
Similarly, Portugal and Slovenia will be tasked with ensuring the implementation of
Germany's energy action plan, he explained.
10
Magalhaes confirmed that Portugal would try to continue and implement the initiatives set in
motion by Germany and that it would devote most of its attention to the Mediterranean and
Africa. She added that her country would also push for a continuation of the bloc's expansion.
Social Partners Approve Open Labour Market for New Members
The Economic and Social Council endorsed the government proposal to open Slovenia's
labour market to Romanian and Bulgarian citizens on 1 January 2007, as these two nations
join the EU bloc
The Economic and Social Council on Friday, 15 December endorsed the government proposal
to open Slovenia's labour market to Romanian and Bulgarian citizens on 1 January 2007, as
these two nations join the EU bloc.
The Ministry of Labour, the Family and Social Affairs does not think the liberalisation will
cause any major disturbance on the labour market as there are currently few workers from
those two countries in Slovenia and no major inflow is expected.
Nevertheless, the ministry agreed with the social partners to step up control and to regularly
monitor the employment of Romanian and Bulgarian nationals in Slovenia. Janja Romih of
the Labour Ministry moreover said that the safety clause could be applied in case of a threat to
the domestic labour market.
Romih does not think a transitional period would solve the problem. Romanian and Bulgarian
citizens could enter the Slovenian market by starting up their own enterprise or through selfemployment, over which the state has no control, the official explained.
The Economic and Social Council, which brings together representatives of the government,
trade unions and employers, also endorsed the work permit quota for foreign workers in 2007.
This will stay at this year's level, i.e. 18,500. The quota includes 1,000 reserve work permits.
"Slovenian companies need workers in certain occupations that are not available in Slovenia,"
said Dusan Semolic, the head of the Association of Free Trade Unions.
The unionist however warned that collective agreements must be respected for those workers
or else there was the danger of social dumping. Foreign workers often do extra hours, they are
not allowed to strike and do not get allowances, Semolic said.
Igor Antauer of the Employers Association at the Chamber of Crafts Industries rejected trade
unions' claim that employers hired foreign workers just because they were cheaper.
"The Slovenian labour market faces significant structural unemployment. There is a shortage
of workers with certain skills, so they have to be imported," Antauer said. According to him,
the market is short of some 5,000 drivers, many construction workers, while some 90,000
people are without a job in Slovenia.
He admitted unionists' warnings were justified, but added that wrongdoing should be dealt
with by inspection services. "The market that is not open to ideas, people and capital is
doomed."
Jansa: Turkey and Western Balkans not in the Same Boat
According to Jansa, the summit confirmed the EU prospect for Western Balkan countries,
while it is "now only a question of detail how this process should be conducted"
Prime Minister Janez Jansa came out of the EU summit on Friday, 15 December saying that
the enlargement debate had made it clear that the EU policy towards the Western Balkans was
unrelated to Turkey's enlargement issue.
According to Jansa, the summit confirmed the EU prospect for Western Balkan countries,
while it is "now only a question of detail how this process should be conducted". Jansa added,
however, that warnings were made concerning further enlargement to the east.
The Union's enlargement policy towards the Western Balkans is the only policy that the EU
leads to this part of Europe, EU leaders said.
11
Jansa explained the enlargement debate took two directions; much was said about the need for
institutional reform before any further enlargement steps, while there were also warnings
against further expansion following the integration of Western Balkan countries.
"This is the issue of enlargement to the east, where opinions differed greatly. This is the level
that Turkey's EU prospect will be getting down to," Jansa said. He noted Slovenia had been
stressing all the way that Turkey and Croatia were not part of the same process.
EU leaders endorsed the partial freezing of accession talks with Turkey, a decision that was
adopted by EU foreign ministers on Monday, 11 December.
Jansa explained that the enlargement debate at the summit was not as heated as expected a
few weeks ago after the EU council reached a compromise over this most controversial issue.
PM Jansa Believes in Efficiency of Common Immigration Policy
Prime Minister Janez Jansa believes the EU could tackle immigration more efficiently if it
adopted a common policy on the issue
Prime Minister Janez Jansa believes the EU could tackle immigration more efficiently if it
adopted a common policy on the issue. Migration, just like energy, will constantly crop up at
the sessions of the EU Council, the Slovenian prime minister said after the close of the EU
summit in Brussels on Friday, 15 December.
Jansa's comments come as the heads of state and government of the 25-strong bloc confirmed
their commitment to strengthening cooperation in the issue of migration and announced the
adoption of several measures by 2010, including a common asylum system.
EU president Matti Vanhanen pointed to the need of a "balanced" EU policy on the issue.
Member cooperation could benefit the EU and the source countries, the Finnish PM added.
The summit agreed to address the root causes of migration by increasing aid to African
countries. It pledged to improve cooperation among member states in fighting illegal
migrations and secure better protection of the bloc's borders.
The summit also confirmed the new schedule for the expansion of the Schengen no-border
zone.
While no discussion took place on the expansion, Slovenian Interior Minister Dragutin Mate
was praised at the sidelines of the meeting as the engine that enabled the implementation of
the Portuguese proposal, Jansa said.
The Portuguese Schengen Information System (SIS I) solution would allow the 2004 EU
newcomers to join the Schengen zone with minimum delay.
The delay occurred after technical difficulties postponed the implementation of the SIS II,
scheduled for late 2007.
Slovenia Opens New Permanent EU Representation Offices
Jansa took the opportunity to label Slovenia's upcoming stint as EU president as the biggest
challenge for the country after its independence
Prime Minister Janez Jansa officially opened in Brussels on Friday, 15 December the new
offices of Slovenia's Permanent Representation to the EU. Jansa took the opportunity to label
Slovenia's upcoming stint as EU president as the biggest challenge for the country after its
independence.
"It is not only our reputation in the EU that depends on how we deal with this challenge, but
the reputation of all the newcomers...Many eyes will be looking our way," Jansa said.
The seven-storey building, located on Rue de Commerce 44 in Brussels's diplomatic quarter,
is an extremely valuable acquisition for Slovenia, officials at the mission said.
The building was bought by the government in December last year for a EUR 6m. An
additional EUR 2m was invested for renovation and furnishing.
12
The 3,200 sq. metre premises, which are expected to accommodate 170 employees during
Slovenia's EU presidency in the first half of 2008, were ready in September this year. At the
moment 98 people work at the mission.
An interesting feature of the building is the five conference rooms, each named after one of
the five motifs featured on Slovenia's euro coins.
13
LEGISLATION
Government Adopts Decree Tax Breaks for Research
The act which is already in force and the one that will enter into force on 1 January 2007
both bring tax relief for research and development, Finance Ministry State Secretary Andrej
Sircelj said after the government's session
The government adopted on Wednesday, 13 December a decree on regional tax brakes for
research and development. The decree regulates tax brakes for research and development in
line with the corporate income tax act, which earmarks higher tax brakes for investment in
research in less developed regions.
The act which is already in force and the one that will enter into force on 1 January 2007 both
bring tax relief for research and development, Finance Ministry State Secretary Andrej Sircelj
said after the government's session.
Companies are able to claim as a tax relief 20% of the investments in research and
development, or 30% in regions where GDP is under the national average, or 40% where the
GDP is more than 15% under the national average.
Companies established or operating in the Savinjsko, Gorenjsko and Gorisko regions and SE
Slovenia will be able to claim 30% of the investments as a tax relief, while companies in the
Pomursko, Podravsko, Korosko, Zasavsko, Spodnje Posavje and Notranjsko-Kraska regions
will be able to claim 40% of the investments as tax brakes.
If the majority of those entitled to these tax brakes claim it, tax proceeds in 2007 would
decrease by SIT 800m (EUR 3.34m), Sircelj said.
The relief is a sort of an encouragement for the regions, said Sircelj. He added that especially
micro-, small- and medium-sized companies, that is companies employing up to 250 people
and with up to EUR 50m in annual turnover, will be able to claim the brakes.
Government Adopts Bill on Amending Economic Zones Act
The amendments include new guidelines on state regional aid, allowing taxpayers to be
entitled to tax benefits, Finance Ministry State Secretary Andrej Sircelj told the press after the
session
The cabinet adopted Wednesday, 13 December amendments to the economic zones act. The
amendments include new guidelines on state regional aid, allowing taxpayers to be entitled to
tax benefits, Finance Ministry State Secretary Andrej Sircelj told the press after the session.
Changes include tax breaks on paying corporate income tax. Therefore Sircelj hopes that
parliament will adopt the legislation as soon as possible to provide clearly defined tax
conditions prior to the beginning of the new tax year.
The amendments define investment into new fixed assets as applicable only for large
enterprises, while tax breaks for purchasing used fixed assets as well as new ones will be in
place for small- and medium-sized companies.
The proposed law also reduces the 40% tax break for eligible expenses to 30%, yet allows
small companies to a 50% tax break in case of working in economic zones, while mediumsized companies are entitled to a 40% break.
Currently, there is only one economic zone up and running in Slovenia. It is located in the
western city of Koper and encompasses 55 companies.
The new guidelines will be in force until 31 December 2013.
14
STATISTICS/FORECASTS
Slovenia Paid Out EUR 100m in State Aid in 2005
This represents 0.59% of the country's GDP, down from 0.61% in 2004
The European Commission presented on Monday, 11 December a report which assesses that
Slovenia handed out EUR 100m in state aid in 2005. This represents 0.59% of the country's
GDP, down from 0.61% in 2004, the Commission said.
Slovenia earmarked 14% of its state aid for sectoral projects, ranging from mining to industry
and services, while the rest went for horizontal objectives.
Slovenia's investments into horizontal projects include research and development (24%),
while employment, regional development and the environment got 15% each.
EU members conferred EUR 64bn in state aid, with Germany leading the pack (EUR 20bn),
followed by France (EUR 10bn) and Italy (EUR 6bn).
The largest share of state aid in GDP (3.16%) in 2005 was handed out by Malta.
Average Monthly Labour Costs per Employee at EUR 1,695 in 2005
Salaries represented the bulk or 81.9% of the costs, as they amounted to SIT 332.764 (EUR
1,389)
Average monthly labour costs per person in paid employment amounted to SIT 406,183 (EUR
1,695) last year, according to the Statistics Office. Salaries represented the bulk or 81.9% of
the costs, as they amounted to SIT 332.764 (EUR 1,389).
Employers monthly paid an average of SIT 54,492 (EUR 227.39) in social contributions per
employee, which represents 13.42% of the average total costs.
The highest average monthly labour costs per person in paid employment were recorded in
the section of financial intermediation, where they totaled SIT 632,704 (EUR 2,640). The
lowest costs (SIT 303,732/EUR 1,267) were meanwhile noted in the section of hotels and
restaurants.
Eurostat data for 2004 showed Denmark as having the highest average monthly labour costs
in industry and services with EUR 4,186. Latvia had the lowest costs with EUR 389, whereas
costs in Slovenia reached EUR 1,522, placing the country directly ahead of Portugal (1,395)
and behind Cyprus (EUR 1,903).
Wages Up 1.7% in October
The average net wage in Slovenia stood at SIT 186,295 (EUR 777.4) in October
The average net wage in Slovenia stood at SIT 186,295 (EUR 777.4) in October, an increase
of 1.7% over September and 5% more than in October 2005, according to the National
Statistics Office.
The average gross wage meanwhile amounted to SIT 293,121 (EUR 1,223.17), up 1.9% over
the previous month and 4.9% higher than a year ago.
In real terms, average gross wages in October were 2.7% higher than in September and 3.3%
more year-on-year, data from the office shows.
In the first ten months of 2006, the average gross wage stood at SIT 285,074 (EUR 1,189.6), a
4.7% increase compared to the same period last year.
15
FINANCE
Pension Fund Management Financial Plan Endorsed
The assembly of the Pension Fund Management (KAD) endorsed the 2007 financial plan,
which foresees the state-run fund manage a total of EUR 1.54m in basic assets and an
additional EUR 741m in insurers' assets at the end of 2007
The assembly of the Pension Fund Management (KAD) on Monday, 11 December endorsed
the 2007 financial plan, which foresees the state-run fund manage a total of EUR 1.54m in
basic assets and an additional EUR 741m in insurers' assets at the end of 2007.
According to a press release from KAD, the meeting also endorsed the introduction of no-par
value shares in place of nominal shares and the corresponding amendments to the statutes.
KAD says its operations in the coming year will follow the government strategy to withdraw
from the economy and continue to reduce ownership stakes in Slovenia so as to transform the
company into a portfolio investment management.
The investment policy is to increase the share of foreign securities at the expanse of KAD
stakes in domestic companies, the press release reads.
It says operating costs are to remain level with this year's, while the extra funds KAD supplies
to the Pension and Disability Insurance are envisaged at EUR 39.1m.
In the pension fund management sector, KAD plans to increase its market share in additional
pension insurance. The target is to have more than 282,000 insurers with the total of 125m in
premiums by the end of 2007.
No2 Insurer to Swell by EUR 13.77m in Five Years
Shareholders of Adriatic Slovenica, the second largest insurer in Slovenia, voted in favour of
a SIT 3.3bn (EUR 13.77m) capital share increase within the next five years
Shareholders of Adriatic Slovenica, the second largest insurer in Slovenia, voted on Tuesday,
12 December in favour of a SIT 3.3bn (EUR 13.77m) capital share increase within the next
five years. The shareholders also appointed a new supervisory board, the Koper-based
company said.
The supervisory board got two new members, putting the number of supervisors at six. They
include four capital representatives, including Matjaz Gantar, the chairman of investment firm
KD Holding, the insurer's largest owner, and two newly-appointed representatives of workers.
The forthcoming 1 January 2007 euro switch also prompted the shareholders to pass a
decision to replace the shares, denominated in tolars, for shares denominated in euros.
According to unofficial data, the insurer collected SIT 50.5bn (EUR 210.73m) worth of
premiums in the first 11 months of 2006, up 16.2% over the same period last year.
The insurer, created with the May 2005 merger of Adriatic and Slovenica, paid out damages
of SIT 30.2bn (EUR 126m), 14.3% more than in the same period in 2005.
Strategic Council Opposes New Taxes
The Strategic Council for Economic Development will advise the government to refrain from
introducing new taxes in the coming two years, Marjan Senjur, the president of the economic
think tank, relaunched at the behest of PM Janez Jansa in October, said after the council's
session
The Strategic Council for Economic Development will advise the government to refrain from
introducing new taxes in the coming two years, Marjan Senjur, the president of the economic
think tank, relaunched at the behest of PM Janez Jansa in October, said after the council's
session in Ljubljana on Tuesday, 12 December.
16
Senjur explained that the council was convinced the government should rather use the
remaining two years of its mandate to cut the existing taxes.
According to Senjur, Finance Minister Andrej Bajuk, who was also present at the session, did
not oppose the council's assessment that this was not the time to raise taxes.
The council believes that economic growth in Slovenia is high and that there is a possibility
that Slovenia has reached its peak, even thought indicators do not suggest a significant drop in
the near future.
There are moreover no sings of the economy overheating, which would lead to a higher
inflation, Senjur said, noting that economic growth has to be the result of the economy as
opposed to an increase in state spending.
Senjur also touched on Slovenia's measures aimed at complying with the Stability Pact and
the Maastricht criteria. He said that Slovenia had no problems in this respect and that with a
5% growth rate should also not face budget any deficit problems.
The government established the Strategic Council for Economic Development in December
2004 and tasked it with giving opinions and suggestions on the macroeconomic policy and
other economic and development issues. It was headed by Mico Mrkaic, who resigned from
the post in July 2005.
The bulk of the council's tasks was then transferred to the government reform committee,
which was headed by Joze P. Damijan. Its work was in turn transfered early this year to the
Government Development Office.
Insurer Triglav Gains Control of Montenegro's Lovcen
The largest Slovenian insurer, Zavarovalnica Triglav, revealed that it had acquired 2,150
shares (1.04%) in Montenegro's top insurance company, Lovcen Osiguranje, to increase its
stake above 50%
The largest Slovenian insurer, Zavarovalnica Triglav, revealed on Wednesday, 13 December
that it had acquired 2,150 shares (1.04%) in Montenegro's top insurance company, Lovcen
Osiguranje, to increase its stake above 50%.
According to a press release from the Slovenian insurer, the Triglav group owns 50.6% of
Lovcen following a transaction on Tuesday, 12 December on the Montenegro Stock
Exchange.
Lovcen Osiguranje posted a profit of EUR 272,500 in 2005 on revenues of EUR 31.28m.
Euro Cash Fully in Place Ahead of E-Day
Slovenia has entered the final phase of preparations for the launch pf the euro on New Year's
Day
Slovenia has entered the final phase of preparations for the launch pf the euro on New Year's
Day. "All euro cash is in Slovenia. We believe we are well prepared for the euro," a central
bank official said on Thursday, 14 December.
The central bank has been supplying banks and companies with euro cash since September, in
which time there has been no sign that anything will go wrong.
"The bulk of work is behind us, we are dealing with the last details to make euro changeover
as efficient as possible," Jasovic told the press.
Slavko Cimpric, who is responsible for retail banking at the Banks' Association, said tests in
banks showed the banking system was set for the changeover.
As of Friday, 15 December, banks will be selling start-up packs of euro coins with Slovenian
motifs. "The packs are not intended as a supply of euro cash but as a way to get to know euro
coins that have Slovenian motifs on one of the sides," Cimpric explained.
He noted that the coins would not be in use until 1 January 2007, when the euro becomes the
official currency in Slovenia.
17
Following the dual circulation between 1 January and 14 January 2007, all banks will change
tolars into euros free of charge until 1 March. From there on, charge-free exchange will only
be available in Banka Slovenije, the Slovenian central bank.
During the changeover, debit and credit card payment terminals will be out of operation
between 11 PM on 31 December and 1 AM on 1 January, while automatic teller machines
will be phased out between 9 PM and midnight on 31 December, whereupon they will
gradually be switched on.
All 1,524 teller machines, which will give out 10 and 20 euro bank notes, are expected to be
back in operation by the end of New Year's Day. "We expect more than 65% will be operative
by 4 AM," Cimpric said.
Selected branch offices of banks will be changing tolars into euros in 42 towns across the
country on the bank holidays 1 and 2 January.
If something goes wrong with cash machines, banks will open additional offices to allow
customers to take out cash. "A single withdrawal will be probably limited to around EUR
200," Cimpric added.
Swedish Group Launches Bid for Ljubljana Stock Exchange
The owner of stock exchanges in Scandinavia and the Baltic unveiled the offer at meeting with
the owners of Ljubljanska borza, public broadcaster RTV Slovenija reported
Sweden's OMX group has launched a takeover bid for Ljubljanska borza, the manager of the
Ljubljana Stock Exchange (LJSE). According to media reports, OMX's offer of SIT 30,000
(EUR 125) per share comes up short of analysts' expectations.
The owner of stock exchanges in Scandinavia and the Baltic unveiled the offer at meeting
with the owners of Ljubljanska borza on Thursday, 14 December, public broadcaster RTV
Slovenija reported.
OMX vice-chairman Henri Bergstrom said the LJSE stood to gain in liquidity, know-how and
product range with the tie-up.
The offer, which runs until 22 January, values Ljubljanska borza at SIT 1bn (EUR 4.17m). a
price viewed by analysts as falling well short of the true value of the LJSE.
Former chairman of Ljubljanska borza Drasko Veselinovic told the daily Delo on Friday, 15
December that the offer significantly undervalues the stock exchange.
Milan Lah of Probanka, which owns nearly 10% of Ljubljanska borza, told Delo that "the
offered price is too low". However, she added that the price was not the key factor, as
Probanka was mindful of the development of the stock market.
Both Draskovic and Lah said that there was too little information on what the tie-up would
mean for the growth of the LJSE.
Meanwhile, OMX representatives are not excluding a partnership that would involve the
acquisition of only a minority stake.
The group pledged to bring new technology and products to the LJSE, which it says will
attract more foreign investors.
Chairman of Ljubljanska borza Marko Simoneti admitted that the offer came as somewhat of
a surprise.
He told the public broadcaster that the LJSE management had been seeking to first develop
the domestic securities market before searching for a foreign partner.
However, he admitted that a tie-up with the operator of stock exchanges in Copenhagen,
Stockholm, Helsinki, Riga, Tallinn and Vilnius would "significantly improve the LJSE's
international standing".
Banks Start Selling Euro Coin Starter Sets
One pack costs SIT 3,000 and contains 44 coins of all denominations worth EUR 12.52
18
Banks on Friday, 15 December started selling starter sets of Slovenian euro coins in a bid to
help Slovenians get used to the new currency. One pack costs SIT 3,000 and contains 44 coins
of all denominations worth EUR 12.52.
A spokesperson for Slovenia's largest bank, NLB, said there was an "extreme interest" in the
starter sets. "I hope we won't run out too quickly," Barbara Smolnikar said.
The coins, like banknotes, will enter into use on 1 January 2007, when the euro becomes the
official currency in Slovenia.
Moreover, the majority of Slovenian banks and Banka Slovenije, Slovenia's central bank, also
started selling commemorative coins.
A SIT 4,530 (EUR 18.90) pack contains all denominations of coins with Slovenian motifs.
The coins are kept in a special casing containing technical data and short explanations of the
motifs.
NKBM Beats 2006 Targets by End of November
While pre-tax profits surpassed the planned SIT 7bn (EUR 29.21m) mark by 47%, total assets
grew by 15%
Nova Kreditna banka Maribor (NKBM), Slovenia's second largest bank, said on Friday, 15
December it had beat pre-tax profit and assets targets for 2006 already by the end of
November. While pre-tax profits surpassed the planned SIT 7bn (EUR 29.21m) mark by 47%,
total assets grew by 15%.
The supervisory board of the bank discussed on Friday, 15 December the results and
confirmed the bank's business plan for 2007. The plan envisages a 16% growth in total assets
and SIT 8.3bn (EUR 34.63m) in profit.
The plan also calls for modernisation of the bank's network, mainly by enlarging and
renovating the existing branch offices.
Ljubljana Stock Exchange
The benchmark SBI 20 index closed the week on 6,424.28 points
Fuelled by energy company Petrol, hardware retail chain Merkur and food company Druga
Kolinska, the benchmark SBI 20 index closed the week on 6,424.28 points, 2.26% more than
last Friday. The SBI TOP index of the six biggest blue chips, which added 2% to 1,496.60 on
the Ljubljana Stock Exchange (LJSE) last week.
Turnover was not too spectacular though, as brokers exchanged an average SIT 11.6bn (EUR
48.4m) worth of shares, with 31% of the amount coming in block trade.
Pharma company Krka traditionally remained the most coveted share. It accounted for deals
worth SIT 1.34bn (EUR 5.6m) while losing 1.7% to SIT 185,688 (EUR 774.86) as supply
outpaced demand.
The rest of the blue chips mainly traded in the black. The most notable of those was energy
company Petrol, which added 1.76% to SIT 124,500 (EUR 519.53) on a turnover of SIT
536m (EUR 2.23m).
A surge also enabled Istrabenz, the food, energy and trade conglomerate, to end the week in
the black. The item added 0.38% to SIT 9,931 (EUR 41.44) on deals worth SIT 369m (EUR
1.54m).
Merkur was the star of the week, posting a 16.99% rise to close at SIT 48,431 (EUR 202.10)
on volumes amounting to SIT 221.2m (EUR 923,000).
Food company Droga Kolinska did not remain far behind, adding 12.12% to SIT 4,136 (EUR
17.26), while home appliance maker Gorenje gained 8.06% to SIT 6,372 (EUR 26.59).
Losers were few and far between last week. Apart from Krka, port operator Luka Koper was
the only other major share to end the week in the red. It lost 4.37% to SIT 11,237 (EUR
46.89).
19
Investment firms did not take part in the bullish run of the blue chips. The value of the PIX
investment fund index remained virtually flat at 5,074.49 points.
The BIO bond index meanwhile shed 0.18% to 119.96.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.61 (-0.01)
U.S. dollar (USD) - SIT 182.76 (+2.30)
Swiss franc (CHF) - SIT 149.93 – (-0.75)
British pound (GBP) - SIT 357.63 (+4.15)
20
REGIONAL INFORMATION
Ljubljana Introduces Online Bus Ticket Booking
Ljubljana's bus company Avtobusna postaja Ljubljana (APL) has introduced an online ticket
booking system on their website
Ljubljana's bus company Avtobusna postaja Ljubljana (APL) has introduced an online ticket
booking system on their website http://www.ap-ljubljana.si, making the first step towards
integrating the Slovenian bus routes into the international booking systems, the company told
the press on Tuesday, 12 December.
It is a modern, safe and easy-to-use way of buying bus tickets, Marjan Kotar, the CEO of
APL, said.
The system is designed to enable the user to buy a ticket for any bus route with the option of
up to one stopover, even if two different carrier companies are involved. In the first phase it
will however only be possible to buy tickets for routes originating from Ljubljana, Kotar
explained.
The online ticket booking system has so far cost the company EUR 116,000.
21
BRANCH INFORMATION
Ministry Says Energy Efficiency Directive on Track
The 2002 European Energy Performance of Buildings Directive is in the process of being
transposed into national legislation, the Environment and Spatial Planning Ministry said
after Slovenia received a second warning for its failure to notify the Commission about the
implementation of the law
The 2002 European Energy Performance of Buildings Directive is in the process of being
transposed into national legislation, the Environment and Spatial Planning Ministry said on
Wednesday, 13 December after Slovenia received a second warning for its failure to notify
the Commission about the implementation of the law.
Slovenia will notify the Commission that the required amendments to the energy act were
passed recently, the Ministry said.
According to the ministry less than half of the member states have transposed the directive
into their legal order in its entirety, therefore the ministry believes that the Commission will
accept Slovenia's reply with understanding.
Slovenia should have implemented the directive by 4 January of this year. The ministry
pointed out that the deadline for full implementation can be extended for three years at the
most in cases where the country lacks the necessary experts.
Slovenia received the first warning in February and must now reply to the second warning
within two months in order to avoid being referred to the European Court of Justice in
Luxembourg.
In line with the directive, which is aimed at improving overall energy efficiency, the member
states should lay down minimum energy performance standards, which should be observed in
the construction and renovation of larger buildings.
The directive also determines that the EU members need to ensure that heating and air
conditioning installations are inspected regularly.
Government Adopts 2007 Tourist Board Operational and Financial Plans
The plan envisages the state paying SIT 1.986bn (EUR 8.28) to the STO, with the board
chipping in additional SIT 214m (EUR 893,000)
The government confirmed on Wednesday, 13 December the financial and operating plans of
the Slovenian Tourist Board for 2007, the Government PR and Media office said after the
cabinet session. The plan envisages the state paying SIT 1.986bn (EUR 8.28) to the STO, with
the board chipping in additional SIT 214m (EUR 893,000).
The STO's programme calls for the promotion of Slovenia's new tourism trademark, and the
presentation of the country as a flight destination.
The programme also includes the board's activities ahead of Slovenia presidency of the EU in
the first half of 2008.
The board wants to boost internet sales of tourist services and implement partnership projects
between the public and the private sector.
Games Remain Top Query at Najdi.si Search Engine
It was typed into the search window over 1.7 million times, the largest Slovenian search
engine said
The query "games" topped the list of most popular requests at the Slovenian search engine
Najdi.si in 2006. It was typed into the search window over 1.7 million times, the largest
Slovenian search engine said in Ljubljana on Tuesday, 12 December.
22
It was followed closely by "avto.net", a vehicle portal with 1.6 million queries, and "24 ur",
the web portal of private broadcaster POP TV with 1.3 million queries, the search engine said.
Slovenians also searched for weather forecasts, with 1.2 million requests recorded in 2006,
and also turned to the search engine to find the web address of Google (1.1 million queries).
Turning to politics, president Janez Drnovsek topped the list with 28,574 queries, followed by
former president of the Socialist Federative Republic of Yugoslavia Josip Broz Tito (16,076)
and Slovenian Prime Minister Janez Jansa (4,802).
However, counting Zoran Jankovic among politicians, Jansa drops to fourth place, with
almost 10,000 less queries than the former CEO of retailer Mercator who was recently elected
Ljubljana mayor.
The title of the most sought-after woman goes to reality show celebrity and Playboy's model
Nina Osenar (210,443 queries), with her rival Alma Brdzanovic landing second (148,465) and
Croatian pop singer Severina ending up in third spot with 126,098 queries.
Regarding men, Slovenians proved themselves to be avid footballers, typing in Ronaldinho
66,557 times, more than any other men or athlete. On the most popular men's list, singer
Anzej Dezan took second place (53,246) and Slovenia's most famous poet France Preseren
(1800-1848) came in third with 50,115 queries.
On the list of top sportsmen, Ronaldinho left fellow footballer Christiano Ronaldo far in his
wake. Ronaldo scored 28,436 clicks on the search button, just edging out Slovenian skier Tina
Maze (27,963).
Top Najdi.si actors are Angelina Jolie and Bradd Pit, while Harry Potter dominated the top
film and series category, followed by a Slovenian comic series Nasa Mala Klinika and the
film Pirates of the Caribbean.
23
COMPANIES
Power Giant HSE to Generate Over EUR 33M in Net Profit in 2006
Slovenia's biggest power producer, HSE group expects to generate SIT 186bn (EUR 0.78bn)
in revenues this year, and about one billion euros in 2007
Slovenia's biggest power producer, HSE group expects to generate SIT 186bn (EUR 0.78bn)
in revenues this year, and about one billion euros in 2007. The core HSE company is to post
SIT 8bn (EUR 33.38m) in net profit and thus become one of the most profitable Slovenian
companies, HSE chief exec Joze Zagozen told the press on Monday, 11 December.
According to the official, HSE has spent SIT 26bn (EUR 0.11bn) on investment this year,
while it plans to raise the sum to SIT 100bn (EUR 0.42bm) in 2007.
The company's long-term plan foresees HSE-generated power to increase from 7 terawatt
hours to 39 TWH in 2018, when the company is expected to make two billion euros in
revenues.
"This will not be possible without an efficient trade network abroad," Zagozen said. He
reminded the reporters that the company had set up companies in Italy, Serbia, Hungary,
Croatia, the Czech Republic and a branch office in Romania.
Zagozen said the company would continue the construction of a chain of hydro plants on the
lower Sava river, upgrade the Avce pumped storage hydro plant and start the overhaul of the
thermal power plant in Sostanj.
Moreover, he said preparations would be launched for the construction of power plants on the
middle Sava and other construction projects. Nevertheless, Zagozen does not think this will be
enough to reduce Slovenia's energy dependence.
The HSE has therefore studied around 100 possible locations in southeastern Europe, while it
is currently working on 20 investment projects, in particular in the countries of the former
Yugoslavia, according to Zagozen.
Vipa Takes Over Vipa Holding, Increases Stake in Mlinotest
Financial firm Vipa has successfully acquired a more than 50% stake in Vipa Holding
Financial firm Vipa has successfully acquired a more than 50% stake in Vipa Holding, Vipa
said in a press release on Monday, 11 December. The move can also be seen as the latest
development in the takeover battle for bread and pasta maker Mlinotest.
By taking over Vipa Holding, Vipa, which has recently entered the "bakery war" by
preventing a takeover of Mlinotest by food group Zito, has in effect already secured at least a
47% stake in Mlinotest.
Vipa has been delaying the takeover of Vipa Holding for more than four months by repeatedly
raising the offer, finally offering SIT 1,660 (EUR 6.93) per share in a bid that officially closes
on Friday, 15 December, 15 december. Prior to the bid, Vipa already owned 47.65% of Vipa
Holding.
By keeping the bid open for so long, Vipa prevented Vipa Holding from selling its 25% stake
in Mlinotest, which in the past months was the subject of competing takeover bids by homeowned bakery Pekarna Blatnik and Zito.
Vipa undermined the expected takeover by Zito at SIT 1,730 (EUR 7.25) per share by buying
the 22% stake in Mlinotest offered for grabs by the state-run funds KAD and SOD - Vipa paid
SIT 1,800 (EUR 7.51) per share or a total of SIT 931.82m (EUR 3.89m).
Together with the stake held by Vipa Holding, Vipa is thus already very close to the 50%
threshold - by some accounts it has already passed it - which would oblige it to publish a
24
takeover bid for Mlinotest, offering at least 1,800 (EUR 7.51) per share to match the offer
secured to KAD and SOD.
Serbian Court Upholds Krka's Appeal on Zyllt Sales Ban
Pharma company Krka has scored a victory in its ongoing legal battle with French company
Sanofi Aventis in Serbia, as a higher court overturned a ban on sales of its anticoagulant Zyllt
imposed in November by a court of first instance
Pharma company Krka has scored a victory in its ongoing legal battle with French company
Sanofi Aventis in Serbia, as a higher court overturned a ban on sales of its anticoagulant Zyllt
imposed in November by a court of first instance.
The Commercial Court in Belgrade upheld last Friday, 15 December, 15 december an appeal
by Krka against the ruling of the Novi Sad Commercial Court that bans the sale of Zyllt
because it supposedly violates a patent held by Sanofi Aventis, Krka reported on Tuesday, 12
December in a posting on the website of the Ljubljana Stock Exchange.
Sanofi Aventis has resorted to legal action because it claims that Krka's product violates the
patent protecting the active ingredient clopidogrel in the hydrogen sulphate salt form.
Krka rejects this, saying that Zyllt was arrived at in an independent procedure and that it has
characteristics that do not violate any valid patents in Serbia and Montenegro.
A similar case in Poland earlier this year also resulted in the court rejecting Sanofi Aventis'
request for a ban on the sales of Zyllt.
Flag Carrier Plans Link with Kiev
National flag carrier Adria Airways announced that it would launch scheduled flights to the
Ukrainian capital of Kiev on 29 December
National flag carrier Adria Airways announced on Tuesday, 12 December that it would
launch scheduled flights to the Ukrainian capital of Kiev on 29 December.
Adria says it will operate weekly flights in cooperation with the Ukrainian flight carrier
Ukraine International Airlines. Flights are scheduled for Tuesday, 12 December and Friday,
15 December.
The route will be initially operated by Canadair Regional Jet LR 200 with a capacity for 50
passengers, which will be replaced by a bigger plane if necessary, Adria said in a press
release.
"Adria believes the new line will provide a fast, simple and comfortable means of transport
and that it will boost cooperation between the two countries, including in business and
tourism," Adria's sales and marketing director Tomaz Kostanjsek was quoted as saying.
The company also said it had carried 959,000 passengers in the first 11 months of this year,
up 14% over the same period in 2005. Adria is confident it will meet its target of 1 million
passengers by the end of the year.
Food Group Panvita Increases Revenues, Profits in 2006
The Panvita food conglomerate said it would conclude 2006 with EUR 82m in sales revenues
and EUR 1.83m in net profit
The Panvita food conglomerate said on Tuesday, 12 December it would conclude 2006 with
EUR 82m in sales revenues and EUR 1.83m in net profit. This is an improvement over 2005,
when the group of eleven food companies posted sales of EUR 73.2m and a net profit of EUR
341,000.
Blaz Miklavcic, the outgoing chief exec of Panvita, told the press in Murska Sobota that the
company's business had expanded in all areas, including farming, animal foodstuffs and pig
breeding. The biogas Nemscak plant had also began operations in 2006, Miklavcic added.
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Miklavcic added that the meat sector had increased its revenues by over 20% in 2006. Exports
meanwhile increased by EUR 3m over 2005 to EUR 5.15m.
Panvita plans to continue its organic growth and create a total of EUR 125m in sales revenues
and EUR 3m in net profit by 2011, he added.
Miklavcic's deputy Dejan Zidan, who will take over as Panvita chairman at the turn of the
year, said that the group planned investment to the tune of EUR 24m in the following five
years.
Panvita also plans to increase the number of its employees by 10% from the current 589 in the
same period, Zidan added.
Gorenje Shareholders Opt for 15% Capital Increase
Shareholders of home appliance maker Gorenje agreed on a capital injection worth 15% of
the Velenje-based company's capital
Shareholders of home appliance maker Gorenje agreed on Tuesday, 12 December on a capital
injection worth 15% of the Velenje-based company's capital. Despite being contrary to the
management's proposal on a two-phase 50% share capital increase, the counterproposal,
submitted by the state-run KAD fund, was endorsed by the majority of the stakeholders,
including the management.
The agreed capital injection puts Gorenje's capital increase at a maximum of SIT 1.83bn
(EUR 7.63m), achieved by issuing 1,830,000 ordinary shares on which the existing
shareholders would have preemptive rights.
The counterproposal was submitted by Kapitalska Druzba (KAD), which owns 25.2% of
Gorenje, because the management's proposal did not include the allocation of funds for
individual projects. The proposal also did not specify how much a single share would be
worth.
The first phase of the management's plan meanwhile called for a capital injection worth 15%
of the company's share capital by the end of the first quarter of 2007 with the existing
stakeholders having preemptive rights. In the second phase, the company would be supplied
with fresh capital to the tune of 35% of its share capital, but without preemptive rights.
Gorenje CEO Franjo Bobinac told the press after the meeting that the management voted in
favour of the KAD proposal, because it was similar to their own. He stressed that the
management expected a larger share capital increase, but since this did not happen, they might
have to hold additional shareholders' meetings.
He added that Gorenje needs the money to continue growing as it had managed to double its
sales in the last six or seven years. He labelled the existing ownership and debt structure as
the largest obstacle to the growth of the 11,000-strong company. The price of the new shares
will be close to the market price, he explained.
Mercator Plans to Raise Profit by 13.5% to EUR 30.4M in 2007
The Mercator group plans to increase net sales revenues by 14.3% to EUR 2.3bn in 2007,
while net profit is to go up by 13.5% to EUR 30.4m, according to the press release the retailer
posted on the web site of the Ljubljana Stock Exchange
The Mercator group plans to increase net sales revenues by 14.3% to EUR 2.3bn in 2007,
while net profit is to go up by 13.5% to EUR 30.4m, according to the press release the retailer
posted on the web site of the Ljubljana Stock Exchange on Wednesday, 13 December.
The press release says the group's net revenues for this year are estimated at EUR 2bn, which
is 5.3% above the target, while net profit is expected to be in line with the plans at EUR
26.8m.
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The business plan for 2007 was endorsed by the company's supervisory board on Tuesday, 12
December. The supervisors also reviewed the 2006 business results. The planed increase in
revenues and profit is calculated on the basis of estimated 2006 results.
The management believes the adopted business plan will enable Slovenia's largest grocer to
implement the planned strategic goals towards becoming a leading grocery retailer in SE
Europe.
According to Mercator, this year's performance was buoyed by good sales in Slovenia,
Croatia and Serbia, and the integration of M-Rodic, a joint venture with Serbian Holding
Rodic M&B.
On the downside, the slowdown in sales in the last quarter of the year is put down to a
reduction in transit wholesale volumes agreed with some major wholesale companies in
Slovenia.
The company also quotes negative effects of the costs of the takeover of grocer Era's
subsidiaries and property in Croatia and Slovenia, the costs of euro changeover, Sunday
closure of non-food shops, as well as an increase in tax burden and cost of loans.
The group plans to invest EUR 202.3m in upgrading its retail network on all markets,
optimising logistic infrastructure in Slovenia and Croatia and upgrading IT systems in
Slovenia.
The company also plans to increase its staff by 4.9% to 20,683 by the end of 2007. More than
33% of the workforce will be employed in Mercator's facilities outside Slovenia.
Klobas Appointed Executive Director of European Outlook Centre
Elvin Klobas has been appointed the executive director of the Centre for European
Perspective (CEP)
Elvin Klobas has been appointed the executive director of the Centre for European
Perspective (CEP), the Foreign Ministry said on Wednesday, 13 December.
The management board of CEP on Monday, 11 December appointed Klobas for a four year
term, according to the ministry.
The cabinet was briefed of the appointment on Wednesday, 13 December, as well as the
decision of the CEP board to relieve Natasa Sebenik of the duties of the centre's acting
manager.
The Centre for European Perspective was established in May this year. It's chief purpose is to
support countries from SE Europe and other countries in the EU's neighbourhood in their
efforts to join the Union.
One of the members of its advisory council is the new UN Secretary General Ban Ki-moon.
Technical Goods Chain Presents Upbeat Plans for 2007
Supervisors of Merkur, the technical goods retail and wholesale chain, endorsed the
company's plans for 2007 that anticipates a net profit of EUR 16m on EUR 1.03bn in net
sales revenues
Supervisors of Merkur, the technical goods retail and wholesale chain, endorsed on
Wednesday, 13 December the company's plans for 2007 that anticipates a net profit of EUR
16m on EUR 1.03bn in net sales revenues.
The company also plans to build new shops and increase the number of employees by 6% to
4,300, the company wrote in its press release.
Merkur is convinced that it has the know-how to solidify its 30% market share on the
domestic market in the sales of hardware.
The supervisors of the company also discussed Merkur's preliminary business results in 2006
which will be presented to the public in February. The company said it had surpassed targets
in all areas.
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Steel Group Ups Revenues, Profit Down
Steel group Slovenska industrija jekla (SIJ) expects to finish 2006 with EUR 542.8m in sales
revenues, up 16% over the year before
Steel group Slovenska industrija jekla (SIJ) expects to finish 2006 with EUR 542.8m in sales
revenues, up 16% over the year before. However, the group's anticipated profit is to drop by
34% to EUR 23m, the company's chief exec Tibor Simonka told the press in Ljubljana on
Thursday, 14 December.
Simonka placed the blame for the drop in profit on payment of delayed taxes, high energy
prices, and specific conditions in certain areas.
The group will manufacture 486,752 tonnes of cast steel, 10% more than 2005. Volume-wise
production has increased by 7% and sales volumes rose by 8%.
Steelworks Acroni was the outstanding performer in the state-owned group that includes
specialty steel producer Metal Ravne and blades manufacturer Nozi, Simonka said.
The Jesenice-based Acroni upped sales by a third and is expected to generate a profit of EUR
13.3m, 25% down on last year. The profit drop was blamed by Simonka on higher costs of
resources.
Metal, which set aside EUR 14.5m for investment in 2006 and will top that with EUR 37.4m
in 2007, will meanwhile close the year with EUR 9.2m in profit on EUR 141.1m in revenues,
he revealed.
Nozi are meanwhile expected to generate EUR 13.7m in revenues, 10% more than in 2005.
Simonka expects favourable market conditions to continue in 2007 and projects a 17
percentage point increase in revenues and a 20% rise in profits to EUR 37m for the group.
SIJ plans to invest EUR 94m by the end of the year, while investment in the period until 2012
will amount to EUR 337m.
He also told the press he did not know who submitted the bids for the 55.35% stake that the
state was selling in SIJ.
He said that the government had already held the first round of talks with the three bidders
and that the second round was expected to take place in the second half of January.
Investment Agency to Get EUR 67m in 2007
The Public Agency for Entrepreneurship and Foreign Investment (JAPTI) will get SIT 16bn
(EUR 66.76m) in funds from the budget in 2007, SIT 7.7bn (EUR 32.13m) more than in 2006
The Public Agency for Entrepreneurship and Foreign Investment (JAPTI) will get SIT 16bn
(EUR 66.76m) in funds from the budget in 2007, SIT 7.7bn (EUR 32.13m) more than in
2006, JAPTI chairman Franc Hoffman told the press in Ljubljana on Thursday, 14 December.
JAPTI will use the funds to strengthen and expand activities for promoting entrepreneurship,
competitiveness and foreign direct investment.
The agency also plans to create a virtual map of Slovenia that would include data on real
estate suitable for foreign investors. The "draft" map will be ready by the end of this year,
Hoffman revealed.
Apart from the four trade offices abroad, which will be launched in January 2007 in Milan,
Duesseldorf, Bucharest and Istanbul, JAPTI is considering launching four other offices in
2007.
BTC Revenues Beat SIT 10bn Mark
The BTC group, the manager of the biggest Ljubljana shopping and logistics hub, expects to
finish the year with revenues of SIT 10.1bn (EUR 42.15m), which is an increase of 11% over
2005
The BTC group, the manager of the biggest Ljubljana shopping and logistics hub, expects to
finish the year with revenues of SIT 10.1bn (EUR 42.15m), which is an increase of 11% over
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2005. The company's net profit is expected to reach SIT 1.5bn (EUR 6.26m), 17% more than
in the previous year.
In a press release posted on the web site of the Ljubljana Stock Exchange on Thursday, 14
December, BTC said that the comparison takes into account the fact that the 2005 profit
figure included an extraordinary revenue of EUR 3.1m.
The BTC management and supervisors expressed satisfaction with the results as these beat the
business plan and for the first time involve revenues exceeding the SIT 10bn mark (EUR
41.73m).
The company also said that the number of employees grew by 8% in 2006 as a result of the
increasing workload.
While BTC spent EUR 5.1m on investments in 2006, plans for 2007 involve investments
worth EUR 11.3.
Sava Sees EUR 44.2m EUR Profit by 2011
The supervisory board gave a nod to the company's 5-year strategy at its meeting on 14
December
Sava, the chemical and tourism conglomerate, expects net profit to grow to EUR 44.2m in
2011, over 30% more than their planned profit for 2006, the company supervisors heard in
Kranj on Thursday, 14 December.
The supervisory board gave a nod to the company's 5-year strategy at its meeting on
Thursday, 14 December. It assessed the document as very ambitious, yet grounded in reality.
Sava plans to invest over EUR 310m into growth in the next five years and wants to achieve a
15% return on equity, the supervisors heard.
In 2007, the company plans to increase sales revenues by 12%, double the operating profit
and post a net profit of EUR 30m.
Adria Airways Supervisors Endorse Cash Injection
The supervisory board of flag carrier Adria Airways endorsed plans by the management
board and shareholders to supply the company with EUR 10m in fresh capital
The supervisory board of flag carrier Adria Airways on Thursday, 14 December endorsed
plans by the management board and shareholders to supply the company with EUR 10m in
fresh capital.
After being briefed with the plans from the management, the supervisors issued approval for
the move that would provide a much-needed cash injection to the carrier, Adria Airways said
in its press release.
The move comes after the state-run Pension Management Fund (KAD) said recently the
management had received approval from the supervisory board for KAD's inclusion in the
capital increase.
The decision now needs to be confirmed by Adria shareholders at a general meeting.
Adria Airways chairman Tadej Tufek told business daily Finance that the company planed to
use all of the EUR 10m it stands to receive in the capital injection.
The funds are to be spent on fleet restructuring, upgrades of aircraft maintenance operations
and expansion of freight transport operations, the press release from Adria said.
Moreover, the supervisory board confirmed Adria's business plan for 2007, which envisages
revenue growth of 9% as well as a profit for the year.
The supervisors were also acquainted with Adria's operations in the year through November,
in which time the company carried 959,900 passengers on regular flights, a 14% increase on
the year before.
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Etol Shareholders Endorse Spin-Off of Financial Operations
Under the plan, a part of Etol's assets, rights and responsibilities will be transfered to a newly
established financial company called Finetol
Shareholders of Etol, the manufacturer of essential oils and flavourings, backed on Friday, 15
December a plan to spin-off financial operations to a new company. Under the plan, a part of
Etol's assets, rights and responsibilities will be transfered to a newly established financial
company called Finetol.
Etol director Ivan Ferme told STA after the general assembly that the proposal was backed by
89.5% of the shareholders present at the meeting.
The spin-off will reduce Etol's current capital stock of SIT 2.5bn (EUR 10.43m) by about SIT
1bn (EUR 4.17m), which will present the share capital of the newly established Finetol.
Shareholders will retain their shares in Etol, whose nominal value will be cut by 40%, and
will receive shares of Finetol, accounting for 40% of the current nominal value of Etol shares.
The shareholders moreover appointed Etol management board member Zdenko Zanoski,
Miran Krasevec an Davorin Leskovar as the supervisors of Finetol.
Slovenian Company to Build Hotel Complex in Moscow
Slovenian civil engineering company Riko Hise will build a EUR 130m commercial and hotel
complex within the Luzhniki Olympic Complex in Moscow
Slovenian civil engineering company Riko Hise will build a EUR 130m commercial and hotel
complex within the Luzhniki Olympic Complex in Moscow, the company said in Friday, 15
December's press release.
According to Riko, company director Janez Skrabec signed on Wednesday, 13 December
with the director of the Luzhniki Complex Vladimir Alyoshin a letter of intent on the
construction of the complex.
The letter was also signed by the main lenders in the project, the Slovenian Export
Corporation and NLB, Slovenia's largest bank.
Riko said the complex was to become one of the biggest sport and recreational centres in the
world.
The project has been commissioned by the Luzhniki Olympic Complex Company, established
by the city of Moscow, a major shareholder in the company.
Similarly to its previous project in Russia, the construction of the Peter I Hotel in Moscow,
Riko Hise will provide the loan for the project.
The signing of the letter of intent was attended by Slovenian Economy Minister Andrej
Vizjak, who paid a visit to Russia earlier last week.
ISP Siol to Merge with Parent Telco
Siol will retain its brand name, but its marketing will be taken over by Telekom Slovenije
The supervisory board of telco Telekom Slovenije gave the nod to the merger of the telco's
subsidiary Siol, Slovenia's largest internet services provider. Siol will retain its brand name,
but its marketing will be taken over by Telekom Slovenije, the telco said on Friday, 15
December.
The plan calls for Siol to be fully integrated into Telekom in the first half on 2007.
The merger is part of the transformation of telekom's subsidiaries, caused by recent trend of
mergers of providers of classic and new telecommunication services.
Telekom believes that its new internal structure would improve the availability of newest
technology, simplify business operations and increase the company's financial efficiency.
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HSE to Take over Republika Srpska Power Plant
Representatives of Holding Slovenske elektrarne (HSE) and Republika srpska, the Serbian
entity in Bosnia-Herzegovina, agreed that HSE and the Ugljevik thermal power plant would
establish a joint venture with HSE as the majority owner
Representatives of Holding Slovenske elektrarne (HSE) and Republika srpska, the Serbian
entity in Bosnia-Herzegovina, agreed on Friday, 15 December that HSE and the Ugljevik
thermal power plant would establish a joint venture with HSE as the majority owner.
HSE chief executive Joze Zagozen told STA that he reached an understanding with the Prime
Minister of Republika srpska Milorad Dodik and Economy and Energy Minister Rajko
Ubiparip that paved the way for HSE to participate in the renovation and expansion of the
Ugljevik plant.
According to Zagozen, partners from Republika srbska will also invest in the project, there
will however be no public tender, as participation in this project is part of the balancing out of
investments made by Slovenia into the energy sector in Bosnia-Herzegovina during the times
of the former Yugoslavia.
Zagozen assessed that the overhauling of the plant's 280MW block could already begin next
year and would cost between EUR 60m and EUR 70m. The construction of a new 300MW or
400MW block could on the other hand begin in a few years time, costing between EUR 250m
and EUR 300m.
He moreover explained that the deal divided all the main electricity potentials in Republika
srbska between the Czech power company CEZ and HSE.
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SLOVENIA IN BRIEF
Tabloid Direkt Parts with Editor Pozar
The management of the Dnevnik publishing house and Bojan Pozar have decided that on 1
January Pozar will leave the post of the editor-in-chief of tabloid daily Direkt. We realised
that we do not have the same views concerning the development of the tabloid, Dnevnik CEO
Branko Pavlin said in a press release on Monday, 11 December.
Transport Ministers Fail to Agree on Galileo HQ Location
EU transport ministers failed to agree on the location of the headquarters of the Supervisory
Authority of the European satellite navigation system Galileo. They also failed to see eye to
eye on whether the headquarters should be located in an old or a new EU member, Slovenian
Transport Minister Janez Bozic said after the meeting on Tuesday, 12 December.
EU Issues Second Warning to Slovenia Over Energy Efficiency
The European Commission issued on Tuesday, 12 December the second warning to Slovenia
for its failure to notify the Commission about the implementation of measures requested in the
2002 Energy Performance of Buildings Directive. Slovenia received the first warning in
February.
Slovenia Opens Consulate in Linz
Slovenia opened on Tuesday, 12 December a consulate in Linz, Austria, which will be headed
by Honorary Consul Guenther Grassner, the Foreign Ministry reported on its website on
Wednesday, 13 December.
Postal Company Surprised to be Blacklisted over Price Hikes
The national postal company Posta Slovenije said on Friday, 15 December that it had been
unfairly put on the black list of companies at which price hikes were recorded ahead of the 1
January euro changeover. Posta argues that a 164% increase in the price of one of its services
has nothing to do with the changeover.
RC Research Centre Headquarters Open in Maribor
The headquarters of the Slovenian-European Natural Sciences Research Centre (SENARC)
were inaugurated in Maribor on Friday, 15 December. SENARC is a regional reference
laboratory for metrology in chemistry for the Southeastern Europe.
Ski Season Kicks Off
The ski season kicked off this weekend after a drop in temperatures finally allowed some ski
resorts to start their snow makers. The resorts are generally well prepared and are hoping for a
successful season although the weather conditions so far have not been promising.
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