NOVEMBER 2010 BUSINESS CULTURE ENVIRONMENT POLITICS SPORTS VINTAGE 2010 Contents November 2010 Young people are the future... …so the saying goes. But this future is shrinking from year to year. As a result of the ageing population, the number of young people is slowly but steadily falling. Not only that, but young people today are finding it increasingly difficult to become independent, because of Vesna Žarkovič problems connected with education, employment and Editor housing. In this month’s In Focus section we ask where this situation is leading. The other In Focus topic this month is winemaking and the question of Slovenia’s contribution to the treasury of European and world wines. There is no doubt that two thousand years of tradition have defined our present characteristics. Alongside autochthonous IF SOmeThINg varieties (Zelen, Pinela, Cviček) and domesticated varieties IS gOOd aNd (Welschriesling, Furmint, Ribolla, Malvasia, Refosco) that dIFFereNT, IT conserve a unique genome, our contribution will also be wIll Sell evident in the efforts of winegrowers and winemakers to ART & CULTURE find in the domestic soil, turned over countless times, 20 constant incentives to create new styles of wine. ‘If something is good and different, it will sell,’ says SYmbol of Slovenian-Croatian Terme Olimia director Zdravko Počivalšek, the subject of our interview, who has been named this year’s Manager of friendShip on view at the the Year by the Manager Association. Recent financial data show that Terme Olimia has tripled its revenue in ten years. The winner of this year’s Rožanc Esssay Prize is Peter national gallerY in ljubljana Kovačič Peršin. Even without this accolade, Kovačič Peršin would be well worth presenting. His own story is, in fact, 12 a unique summary of the social development and, even MONTHLY COMMENTARY more, the intimately human development and changes New solution to outstanding issues 04 that took place in Slovenia in the second half of the 20th IN FOCUS century. “The world is founded on young people…”, Ljubljana has its own grapevine 06 This winter promises to be an exciting one, with a full programme of major sports events. With the winter INTERVIEW sports season just around the corner, we follow with Zdravko Počivalšek – ‘If something is good and different, it will sell.’ 12 close attention the preparations of Slovenia’s top winter BUSINESS 29 athletes, hoping, like every year, that the coming season First train of the Cargo 10 alliance 16 will be even better than the year before. This month you can also read the first in a series LETTER FROM AMBASSADOR of monthly commentaries on the latest political and Doku Zavgaev, Ada Filip Slivnik 18 economic measures adopted by the government. The ART & CULTURE monthly commentary is a new column by our director 9 13th Festival of Slovenian Film in Portorož, 45th Maribor Theatre Festival 20 Darijan Košir. OUR EXCELLENCE Elite emigrants, Jožef Stefan Institute 25 SLOVENIAN DELIGHTS ‘Rôtisseurs’ in Slovenia 31 Sinfo - Slovenian information Editioral government Communication Office Gateway to information on Slovenia www.slovenia.si SPORTS gregorčičeva 25, 1000 ljubljana Government Communication Office www.ukom.gov.si Tel. +386 1 478 2630, Fax +386 1 251 2312, www.ukom.gov.si Government of the Republic of Slovenia www.vlada.si Exciting winter on the cards, with plenty of outstanding sport 35 Director darijan Košir Slovenian Tourist Board www.slovenia.info Editor-in-Chief Valerija.mencej, [email protected] Slovenian Chamber of Commerce and Industry www.gzs.si PEOPLE Executive Editor: Vesna Žarkovič, [email protected] Slovenian Chamber of Craft www.ozs.si Portrait of Peter Kovačič Peršin Editorial Board alenka Čebular, albert Kos, mateja malnar Public Agency of the RS of Entrepreneurship and Foreign 37 Investments Štembal, Valerija mencej, Jože Osterman, Polona Prešeren, www.japti.si andreja Šonc Simčič, andrej Savelli, Branko Vidrih Ljubljana Stock Exchange www.ljse.si NATURAL HERITAGE Photo Editor Veronicca ditrih Statistical Office of the Republic of Slovenia www.stat.si Connecting nations and conserving memories 41 Production Videotop Color media d.o.o. State Portal of the Republic of Slovenia e-uprava.gov.si Graphic design Boštjan Krajnc Printed by mobinet CULTURAL HERITAGE 25 35 SINFO is printed on the eco-friendly FSC label paper. The FSC label provides assurance, that paper originates from responsible forest Traditional heritage in step with the times 44 Cover photo Vladimir Toš/STO management according to the Forest Stewardship Council (FSC) standards. 02 November 2010 November 2010 03 Monthly Commentary was seen this year with greece. in brief, restricting growth in spending on the day strike, though fortunately they slovenia’s borrowing patterns were biggest items in the 2011 and 2012 ended it before it had any major excessive, and although they were the budgets: public sector pay, pension consequences. the trade unions finally result of urgent intervention to support funds and social transfers. for example: accepted the reality of the public finance the economy, the government was forced the government maintained spending position, pressured from the to slam on the brakes. on public sector pay at 3.8 billion euros. government’s steadfastness, as well as if it had not taken this measure it the incomprehension expressed by the he 2011 and 2012 budgets therefore would have risen to 4.5 billion euros by public, particularly people in the private pursue the goal of stabilising 2012, a difference of 700 million euros or sector, which has had to respond to the Tpublic finance as quickly as 2% of gDp. expressed in other terms, if crisis with measures as severe as possible, which will provide a genuine these restrictions had not been put in reducing employee pay or benefits by up foundation for renewed economic place then the budget deficit would to ten per cent. the restrictions on growth in slovenia. the budget deficit have reached approximately 6.5% of growth in pensions will require some anticipated for 2011 is 4.5% of bDp, but for gDp by 2013. allowing this trend to political movements in parliament, 2012 it is just 3.6% of gDp, while in 2013 continue would have seen slovenia particularly given the power of the slovenia will have to reduce its budget exceeding the maastricht threshold on pensioner party, Desus, which is part of deficit to 3% of gDp in line with the public debt (60% of gDp), which along the ruling coalition. Without them it will maastricht criteria. in monetary terms, with an excess budget deficit would be very difficult to adopt the budget, yet this means reducing spending in steps of have led to the european union (and pensioners recognise that they have to around 370 million euros or 1% of gDp per probably also the imf) imposing severe share the fate that everyone else in the year – the state will have that much less sanctions on slovenia. country faces. a vital part of the pension to spend by compared to 2010. austerity issue for the government has been the measures of this kind are naturally The 2011 and ongoing reforms to pension legislation always extremely painful. 2012 budgets are that will restrict pension spending in the long term by making people work he slovenian government therefore not based longer (raising the retirement age to 65 introduced a number of on higher taxation, years, as at present slovenians are Tinnovations to ease the budget but on cutting among the youngest pensioners in picture in 2011: first, a set of fiscal rules public spending and europe). When the reform of health constituting a formula that only permits system spending is brought in next budget spending to be increased in line therefore reducing spring, the public finances will have ike most of its european counterparts, before the beginning of next year with gross domestic product – in other the burden on the been stabilised and will no longer be a the slovenian government has to make major incursions into public finances and their words, only spending what we make, real economy, which hindrance to increasing the Lstabilisation. the amendments to the 2011 budget and the new 2012 budget which the which means that the 2011 budget of competitiveness of the slovenian slovenian government has placed before parliament represent large cuts in central 10.03 billion euros will be just 200 million is their greatest private sector, which is the sector that government spending. these measures were essential and unavoidable for slovenia, euros more than in 2010; over that level strength, despite contributes most to the budget. Darijan Košir although as elsewhere in europe they have sometimes met with incomprehension. yet the actual budget spending has been criticism that they Photo Shutterstock government had no choice: stabilising the public finances is vital and unavoidable, and also restricted, due also to efforts to reduce are on the right hat is where the essence of the only basis on which future economic growth can be built. the deficit. second, the government also track, but not stabilising public finances lies: the restricted spending through a Tcontinued growth of public Yet the fter the outbreak of the financial and economic crisis in 2008-2010 – the deepest global programmed budget, which means ambitious enough. spending would only be possible through government crisis since the second World War – slovenia found itself in a similar position to other ministries can no longer finance their new borrowing or even higher taxes. the had no choice: Aeconomically developed countries: at almost ten per cent the fall in gross domestic traditional spending plans, but only f course, restrictions on public 2011 and 2012 budgets are therefore not stabilising the product was very deep, and was mirrored by a systemic crisis in banking and hence also the programmed work and even then only sector pay, pensions and social based on higher taxation, but on cutting broader economy.