Government Measures – Economic Growth Packages

04 ISSN 1854-0805 June 2012 The latest from slovenia GOVERNMENT MEASURES – ECONOMIC GROWTH PACKAGES • interview: Jože Colarič • art & culture: Nobel Prize winners visit Maribor • OUR eXCELLENCE: Elan • spOrts: Entire Slovenia is proud of Anže Kopitar • peOple: Matevž Lenarčič • slOvenian delights: Wine – orange is the new colour contents editorial 5 In focus government measures – economic growth packages 12 Interview Jože colarič 16 Business 18 Regional development Vesna Žarkovič, Editor ljubljana urban region – engine of the slovenian economy Under the sign of economic growth packages 22 In focus Interview A letter One hundred days of office are behind Prime Minister Janša’s Government. In derya Kanbay, assoc. prof. dr. Milan Jazbec this period, the government has managed to bring in its revised budget proposal, 24 various cost-saving measures and a package of measures aimed at enhancing Art & culture economic competitiveness. “If it is possible to speak of success achieved during the european capital of culture past one hundred days, this most surely applies to a shift in the way of thinking and nobel prize winners visit Maribor to a realisation that in order to successfully exit the crisis, it is necessary to actually do something,” said Prime Minister Janša when asked about the most important 30 achievement of the present government so far. In his words, this is precisely what Our excellence made it possible for the government, when dealing with the key projects of the past elan receives Most innovative brand 2012 award three months, to earn its support from social partners, i.e. employers and trade unions 32 respectively. Very soon, new steps are to follow in the form of key structural reforms Green corner such as labour market reform, health reform, pension reform and education system BeeZee ecoKid Green corner reform, which are crucial for the revival of Slovenia’s development potentials. 34 Jože Colarič, president of the Krka management board and our interview guest People today, claims that for many years, the business environment in Slovenia has not been Matevž lenarčič so favourable for investment as it is now. As a result of the legislative changes, the 38 people at Krka feel morally bound to invest more. Thus in the first three months of contents Sports this year, they have earmarked EUR 24.2 million for investments; they are preparing entire slovenia is proud of anže Kopitar documentation for the new EUR 200 million pharmaceutical factory Notol 2; in the summer, they are about to launch the construction of a new EUR 70 million plant at 41 Krško; and construction works are being stepped up in Moscow, where experimental People Society production is about to start by the end of next year. The value of this investment is EUR social entrepreneurship – part of the economic 135 million. development model It is encouraging to note that Russian companies are seeking investment 44 opportunities in Slovenia, particularly in transport infrastructure. The largest Russian Slovenian delights investment in Slovenia, worth one billion euros, is the South Stream gas pipeline. wine – orange is the new colour Works on this project are expected to start by the end of this year. 48 In this number you will also find an article on the company Elan, which has been Heritage given this year’s Most Innovative Brand 2012 award in the category of sports equipment. wild flowers of Bohinj The award is conferred every year by the German organisation Plus X Award. Elan thus ranks alongside other important companies which were awarded prizes in other Art & culture categories, such as Adidas, Porsche, AEG, Blackberry, Buderus, LG, Opel and Sony, and goes down in history as one of the most innovative Slovenian companies ever. SINFO – SLOVENIAN INFORMATION Editorial: Government Communication Office, Entire Slovenia is proud of hockey player Anže Kopitar. Kopitar’s LA Kings Director: Anže Logar, Gregorčičeva 25, 1000 Ljubljana, delivered the Stanley Cup home for the first time in team history. Kopitar is currently tel. +386 (0) 1 478 2630, fax + 386 (0) 1 251 2312, www.ukom.gov.si Editor-in-Chief: Valerija Obu Slovenia’s brightest star and is making sports history for the country. His numerous Executive Editor: Vesna Žarkovič, [email protected] successes have triggered real euphoria and many people stayed awake for many Editorial Board: Mateja Malnar Štembal, Jože Osterman, Polona Prešeren, Hana Souček Morača, Nataša Marvin, Manja Kostevc nights to watch him excel at his work. Photo Editor: Janez Vidrih “Slovenia has a future as an ecologically advanced boutique country, based on Production: Nuit d.o.o., Translation: Amidas, DZTPS, Government Translation and Interpretation Division small entrepreneurs and tradesmen. We can only compete in terms of quality and Printed by: Collegium Graphicum d.o.o., Slovenia, Number of copies: 4600 knowledge – never with quantity,” points out Bianca Žvorc Morris, creative director Available also at: www.ukom.gov.si/eng/slovenia/publication/sinfo Cover photo: Stane Jeršič, www.slovenia.info and owner of BeeZee Designs, the company that brought BeeZee EcoKid – a fashion brand for environment-friendly clothes, jewellery, toys and home decorations for Government Communication Office:www.slovenia.si Government Communication Office:www.ukom.gov.si adults as well as children – to Slovenia. Government of the Republic of Slovenia: www.vlada.si In January, Matevž Lenarčič, pilot, biologist, photographer and alpinist, set out in Slovenian Tourist Board: www.slovenia.info Slovenian Chamber of Commerce and Industry: www.gzs.si a Pipistrel Virus SW 914 aircraft on a 100,000 km multi-stage tour around the world. Slovenian Chamber of Craft: www.ozs.si After some three months, he arrived back in his homeland, richer for a wealth of Public Agency for Entrepreneurship and Foreign Investments: www.japti.si Ljubljana Stock Exchange: www.ljse.si new experiences, which he summarised in the following words: “Absolute laws become Statistical Office of the Republic of Slovenia:www.stat.si relative. Life values become clearer. We are not aware enough that we live only in a tiny part of the State Portal of the Republic of Slovenia: http://e-uprava.gov.si universe, which is also our only possible solution. If we destroy it, we have nowhere to go.” Society Sports Heritage Sinfo – Slovenian information 3 : in focus : monthly commentary Vesna Žarkovič, photo:STA Statements made by businessmen in connection with the government’s cost-saving measures published in the business daily Finance on 11 May Egon Zakrajšek, Sašo Polanec, economist at the economist: Anže Logar, Director of the Government Communication Office U.S. Federal Reserve (American central bank) OUCH, OUCH… AN AUSTERITY PACKAGE Slovenia has taken a step in the right direction by reaching The adoption of the revised budget gives a positive signal to The austerity package has come into force. For the an agreement on cost-saving measures. This government is not foreign investors that Slovenia has taken concrete steps torward first time in the history of the state, the government losing ground. It is aware of the real situation and all the moves its finances and is in a position to adopt cost-saving measures. thus far were steps in the right direction. It is important that this together with the trade unions reached an will to solve the difficulties does not stop. It is important that agreement on the basis of which public servants’ the entire government focuses on saving and that it does lose its Boštjan Gorjup, salaries and the benefits of certain rights stemming impetus. director of finances, BSH Hišni aparati from their employment relationship and in the Branko Kastelic, areas of social care are to be reduced. at the last Imos minute, after long and tough negotiations led by the Minister of work, Family and social affairs andrej vizjak, the negotiators managed to reach an agreement on urgent belt tightening, and the constant threat of referendum stopped. The financial consolidation of public finances is certainly an important signal to all companies that a stable framework for the operation of our companies may be expected and a signal to our The success of the negotiators and the understanding of all the investment. In addition, the corporate tax rate was reduced from 20 owners that it is worth investing in this environment in the future. main participants did not remain unnoticed. The economy warmly to 18 %; this will gradually be reduced to 15 % in 2015. It is essential that the government be aware of the situation Not considering the tax on labour, I believe that the environment welcomed the agreement reached. After nine months of political This change will be followed by a package of measures to and that it has adopted measures for faster economic growth. It in Slovenia is stimulating enough for making investments. In any backlash — the disintegration of the former government coalition, encourage economic growth. It is based on the package of measures is expected that the adoption of measures will continue because case, improvements both in the taxation of highly qualified work a motion of no confidence passed, early elections followed by a to improve the business environment, the financial incentives to there is no way forward without growth. and in spatial management will have to be brought about. relatively long time to form the new government — this is the first enhance economic growth, to implement the action plan for small sign of the fully functioning government. Putting forward measures and medium-sized enterprises, to reinforce the public administration Arjen van Dijkhuizen, Matej Kovač, for balancing public finances is a precondition for other measures and the judicial system and to eliminate administrative barriers. that should bring the country back to the path of growth and The first proposals of the law will be prepared in June, while the an economist at ABN Amro: IUS Software: The Slovenian government’s ambitions to reduce the deficit The adoption of the budget ended uncertainties and development.

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