Slovenia Business Week no. 07, February 13th, 2006
Table of Contents:
HEADLINES
Inflation Inches up to 2.4% in January
Gostol-Gopan Opens Factory in Bosnia-Herzegovina
Industrial Output Up 3.1% in 2005
INTERNATIONAL COOPERATION
Dubai Conference Calls for Safer Handling of Chemicals
Environment Forum Focuses on Renewable Energy and Ecotourism
Minister Rupel Receives Credentials from Indonesian Ambassador
EUROPEAN UNION
EU Survey: Slovenians Not Interested in EU Matters
Rehn: EU Cannot Act as Judge in Slovenia-Croatia Border Dispute
Drobnic Welcomes Commission's Call for Open Labour Market
Rehn Hails Slovenia's Support for EU Enlargement
Commissioner Rehn Wants EU to Export Stability
Trade Unions Believe Services Directive Institutes Social Dumping
Rehn Holds Talks with Drnovsek and EU Affairs Committee
LEGISLATION
Parliament Passes Industrial Property and Agriculture Amendments
Parliament Passes Act on EUR 1bn Guarantee for Motorways
Social Democrats Present Bill on Commerce Chambers
STATISTICS/FORECASTS
Trade Gap Expands in December
2.38 Million Tourists Flock to Slovenia in 2005
EU Survey: Slovenians Believe Globalisation Motivated by Profits
FINANCE
Banks to Charge for ATM Roaming
Monitoring to Prevent Price Hikes at Euro Changeover
Paychecks to Be Listed in Tolars and Euros from August Onwards
Minister Damijan Denies Union Claims Regarding Flat Tax
EIB Lends EUR 282m to Slovenia in 2005
Grawe Collects 12% More Premiums in 2005
Central Bank Cuts Main Rates by 25 Basis Points
Gorenjska Banka Posts Bumper Profits
MPs Confirm Motorway Construction Plan
Volumes on the LJSE Meagre in Bearish January
Euro the Top Priority This Year for the Finance Ministry
Swiss Bank Acquires 10% of KD Group
Successors Agree on Division of Share of Former Yugoslav Export Bank
Bajuk Wants the State to Keep Golden Share in Key Banks
Ljubljana Stock Exchange
Foreign Exchange
REGIONAL INFORMATION
Nature Protection Office to Conserve Slovenia's Only Salt Meadow
Official Referendum Results Confirm Yes Vote for 12 Municipalities
BRANCH INFORMATION
Retailers Expect No Troubles With Double Pricing
Transport Ministry Plans to Increase Population Mobility
EU Says Communication Markets In Slovenia Lack Competition
Passenger Transport Companies Await Double Pricing Well Prepared
Tourism Associations See Problems Ahead in Dual Pricing
EU Commission Received Notification On Bird Flu in Slovenia
VURS Head Says H5 Confirmation No Reason for Panic, Urges Caution
COMPANIES
Aluminium Giant to Phase out Outdated Electrolysis Technology
Health & Beauty Chain Watson Opens Store in Slovenia
Slivnik Nominates Vecer Editor for Delo Chief Editor
Iskra Avtoelektrika CEO Claims Cooperation with Iskra to Continue
Post Delivers More Profits Than Planned
Trimo Management Labels Takeover Bid Friendly
Sugar Production to Be Conserved in Ormoz for Two More Years
Sugar Plant Management Pleased with Sugar Production Extension
DARS Gets Last Green Light for Record Loans
HSE Offloading Majority Stake in TDR Metalurgija
Metal Ravne Hoping for Another Good Year
SLOVENIA IN BRIEF
Unions Again Urge Government to Renounce Flat Tax
Dekleva and Godina Conferred Preseren Awards
Government Replaces Head of Bilateral SOPS Commission
Erjavec Debates Afghanistan, Kosovo, Iraq Missions at NATO Meeting
HEADLINES
Inflation Inches up to 2.4% in January
Slovenia's annual inflation rate edged up 0.1 percentage points
Slovenia's annual inflation rate edged up 0.1 percentage points to 2.4% in January, despite a drop in prices last month.
The National Statistics Office said that prices fell 0.5% on average in January.
Nevertheless, the annual rate was up a notch because an even bigger drop in prices had been registered in January 2005.
The monthly deflation was caused primarily by a 12.1% drop in clothing and footwear prices resulting from the winter sales.
This was enough to offset higher prices of food and beverage (1.5%), housing (0.8%) and transport (0.7%).
Prices of goods were down 0.9% on average in January, while services cost 0.2% more, the office added.
According to the Statistics Office, the 12-month average price growth, measured with the EMU convergence price index, remained steady at 2.5% in January.
Slovenia was thus fulfilling the inflation criterion for the eurozone, which at last count, in December, stood at 2.5%.
Gostol-Gopan Opens Factory in Bosnia-Herzegovina
The Nova Gorica-based maker of bakery equipment, Gostol-Gopan, opened a factory in Bosnia-Herzegovina to manufacture components for baking and processing industries
The Nova Gorica-based maker of bakery equipment, Gostol-Gopan, opened on Friday, 10 February a factory in Bosnia-Herzegovina to manufacture components for baking and processing industries, the company said.
The EUR 700,000 facility, located in Tuzla, will produce individual elements for baking machinery and initially employ ten workers, soon to be joined by another ten.
The new plant will increase Gostol-Gopan's output capacity by a fifth. The company furthermore plans to turn the factory into a logistics centre for the whole of Central and Eastern Europe.
Gostol-Gopan has been experiencing a 15% increase in sales per year in the past years, with revenues expecting to reach EUR 17m in 2006, said the head of marketing Andreja Sovdat.
To fulfil the surging demand, the company first wanted to introduce double shifts at its Nova Gorica plant, however it failed to get enough qualified workforce to do the job, Sovdat added.
Furthermore, labour is cheaper in Bosnia-Herzegovina, the profits are not taxed in the first five years, language is not an issue and transport connections between Tuzla and Nova Gorica are relatively good, she explained.
Sovdat also said that Gostol-Gopan Vzhod, the company's Russian subsidiary, would begin operating in the first half of 2006. Gostol-Gopan exports 90% of its products abroad, with Russia and the Ukraine the most important export markets.
Industrial Output Up 3.1% in 2005
In December 2005, Slovenia's industry churned out 12.6% less than in November 2005, but 5.5% more than in December 2004
Industrial output in Slovenia grew by 3.1% in 2005 compared to a year before, the National Statistics Office has said.
In December 2005, Slovenia's industry churned out 12.6% less than in November 2005, but 5.5% more than in December 2004, data from the office shows.
The biggest annual jump in December was registered in the electricity, gas and water sector, which saw output surge 8.6%.
The manufacturing sector upped its output by 5.6% in December 2005 compared to a year earlier.
Meanwhile, production in the mining and quarrying sector fell 24.4 percent year-on-year in December.
INTERNATIONAL COOPERATION
Dubai Conference Calls for Safer Handling of Chemicals
Environment Minister Janez Podobnik and Health Minister Andrej Brucan attended the final session of a three-day international conference on handling chemicals in Dubai, where a declaration on international strategy for handling chemicals was adopted
Environment Minister Janez Podobnik and Health Minister Andrej Brucan attended on Monday, 6 February the final session of a three-day international conference on handling chemicals in Dubai, where a declaration on international strategy for handling chemicals was adopted.
The declaration, adopted by representatives from 140 countries, emphasises caution in handling chemicals. As Podobnik told STA, the document is politically rather than legally binding.
He moreover said that the Dubai declaration represents an implementation of goals on safe handling with chemicals until 2020, which were adopted at the world summit on sustainable development in Johannesburg in 2002.
In his address at the conference, the minister stressed caution in handling chemicals. "If the state suspects a chemicals substance dangerous to health and environment, it can decide on how it should be handled, even if all the procedures are not concluded yet," he added.
Podobnik moreover pointed out the need for funding the programme in the developing countries, for which Slovenia intends to earmark EUR 20,000 annually.
Environment Forum Focuses on Renewable Energy and Ecotourism
Slovenian environment minister Janez Podobnikattended the Global Ministerial Environment Forum in Dubai
Renewable energy sources and ecotourism topped the agenda of this year's Global Ministerial Environment Forum, which started on Tuesday, 7 February in Dubai, attended by 140 environment ministers, including Slovenia's Janez Podobnik.
Discussing renewable energy sources, the participants pointed out that most of the world depends on imports from oil-rich countries, which are mostly areas of political instability, Podobnik told STA. Another problem is the high oil prices, he added.
According to him, the ministers shared a view that changes are needed. "If we want to implement the Kyoto protocol, we must do something in the energy sector, especially regarding emissions of greenhouse gases," he said.
Addressing the forum, Podobnik outlined Slovenia's experience in the use of renewable energy sources. He stressed the use of wood biomass, which according to Podobnik has up to now been seen only as a sort of useless waste.
Minister Rupel Receives Credentials from Indonesian Ambassador
Rupel and Wibowo were quoted as saying that economic cooperation could be intensified, although Slovenian exports to Indonesia increased 42.5% in the first nine months of 2005 to US$ 4.6m, with imports up 5% to US$ 36.4m
Foreign Minister Dimitrij Rupel has received copies of credentials of new Indonesian Ambassador Triyono Wibowo, who is covering Slovenia from Vienna, according to the Foreign Ministry.
Rupel and Wibowo were quoted as saying on Thursday, 9 February that economic cooperation could be intensified, although Slovenian exports to Indonesia increased 42.5% in the first nine months of 2005 to US$ 4.6m, with imports up 5% to US$ 36.4m.
According to Rupel, Slovenia is also interested in signing a bilateral agreement on cooperation in science and technology, a draft of which he handed over to Wibowo.
An agreement on the promotion and protection of investments is also in the making. Slovenia wants to revive the talks, which stalled in 2001 due to the adoption of new legislation in the field in Indonesia.
EUROPEAN UNION
EU Survey: Slovenians Not Interested in EU Matters
A total of 72% of Slovenians do not want to take part in EU matters, however they are very well informed about the EU, according to the latest Eurobarometer poll
A total of 72% of Slovenians do not want to take part in EU matters, however they are very well informed about the EU, according to the latest Eurobarometer poll.
The results of the autumn poll, presented on Monday, 6 February in Ljubljana, also suggest that 30% of Slovenians want nothing whatsoever to do with the bloc's issues.
Meanwhile 26% of the country's population, the smallest number among all EU members, expressed a desire to be active in EU matters. The EU's average stands at 49%.
Furthermore 76% of Slovenians believe the government should do more to include Slovenians in EU affairs, while 71% put the responsibility on local authorities.
Yet Slovenians displayed above-average knowledge on EU matters, 61% were correct in answering true-or-false statements about the bloc, putting the country second only to Luxembourg, with 63%.
The average percentage of correct answers for the Union's 25 members was 38%.
Indeed, 49% of respondents were satisfied with their knowledge of the EU, while 40% expressed a desire to learn more about the bloc.
Meanwhile, support for EU enlargement remains high at 74%, tying Slovenia with Greece in first place. Slovenians would most love to see Switzerland and Norway in the EU (92% support rate for both), followed by Iceland (87%) and Ukraine (66%).
Among the current accession candidates the respondents favour Bulgaria (65%), over Romania (62%), while support levels for Turkey stand at 49%, the highest among EU members.
A total of 59% would also welcome Croatia into the EU, while Albania is the least favoured prospective member with 48%.
Slovenians also hold the EU constitution in high esteem, with 75% in favour of the document and 37% believing that the ratification procedure ought to continue.
Yet, despite their high support for EU projects, only a quarter want the EU budget to increase due to enlargement.
Slovenians also believe that EU should first and foremost deal with unemployment, taxes, improve economic conditions and curb inflation.
According to Slovenians, the EU should fight terrorism (79%), conduct scientific and technological research (70%) and have more say in defence and foreign affairs (68%).
They would not like to see the Union meddle with retirement benefits, with only 24% in favour of increased EU competence in the area, followed by taxes (29%) and health and social insurance (32%).
The survey also touched upon the Slovenians' attitude towards the planned January 2007 euro changeover, with 39% saying that they are afraid of the move and 58% that they do not fear the country joining the eurozone.
The Eurobarometer survey polled 1,034 respondents over 15 years of age and took place between 11 October and 7 November 2005.
Rehn: EU Cannot Act as Judge in Slovenia-Croatia Border Dispute
The Commission can facilitate talks between the two countries, however, the dispute is a bilateral issue that has to be solved by Slovenia and Croatia alone, Rehn added
The European Commission cannot act as a judge in the border dispute between Slovenia and Croatia, Enlargement Commissioner Olli Rehn told Slovenian media in Brussels on Wednesday, 8 February.
The Commission can facilitate talks between the two countries, however, the dispute is a bilateral issue that has to be solved by Slovenia and Croatia alone, Rehn added.
He believes that the countries will be able to solve the issue before Croatia enters the EU. However, the EU has formed no views on what the solution should look like.
Rehn furthermore said that there can be no connection between enlargement talks and [bilateral] border issues. At the same time he pointed out that every candidate country from the Balkans has to act as a good neighbour and be active in regional cooperation.
The Commission's only jurisdiction in the relations between Slovenia and Croatia lies in the fisheries part of the Slovenia-Croatia agreement on border transport and cooperation (SOPS), he explained.
"We are convinced that a properly functioning fisheries regime could significantly reduce the number of incidents [between Slovenian and Croatian fishermen]. However, the countries have to try to find a solution together," he added.
Slovenian and Croatian fishermen have been involved in numerous incidents, stemming from the unresolved maritime border between the two countries in the Bay of Piran.
Rehn's statement came just ahead of the commissioner's two day visit to Slovenia, which began on Thursday, 9 February.
Drobnic Welcomes Commission's Call for Open Labour Market
Labour Minister Janez Drobnic has welcomed the European Commission's decision to call for the opening of the labour markets in old EU member states to workers from the new members
Labour Minister Janez Drobnic has welcomed the European Commission's decision to call for the opening of the labour markets in old EU member states to workers from the new members.
In a response to the European Commission's recommendation that the 15 old EU members lift bans on workers from new EU member states as of May 2006, Drobnic told STA that Slovenia has maintained throughout that the free movement of labour must be respected in the EU.
Slovenian workers do not pose a threat to the labour markets of the other EU countries, just as workers from other EU countries do not threaten the Slovenian market, he believes.
According to Drobnic, there is no fear of a mass exodus of Slovenian workers to other EU countries.
Drobnic therefore expects that old EU member states will heed the Commission's call and open up their markets to workers from new EU members.
He said Slovenia was especially hopeful that its neighbours Italy and Austria, as well as Germany, would lift bans on Slovenian workers.
Rehn Hails Slovenia's Support for EU Enlargement
European Enlargement Commissioner Oli Rehn thanked Slovenia for its consistent and active role in supporting EU enlargement
European Enlargement Commissioner Oli Rehn thanked Slovenia for its consistent and active role in supporting EU enlargement, as he met PM Janez Jansa in Brdo pri Kranju late on Thursday, 9 February.
According to Jansa's office, the pair agreed on the importance of EU accession for Western Balkans countries, and expressed their hope that open issues, such as the final status of Kosovo, would not jeopardise peace and stability in the region.
They furthermore stressed the need for the countries in the area to fully cooperate with the Hague tribunal for crimes in the former Yugoslavia, and agreed that the international community needs to continue to offer its support to facilitate development and progress of the region.
Jansa moreover reiterated Slovenia's support for Croatia's EU bid, adding that he hopes negotiations between the EU and Croatia on the implementing part of the fisheries chapter in the Slovenia-Croatia border traffic and cooperation agreement (SOPS) would end soon.
On Friday, 10 February Rehn held a lecture at the Ljubljana faculty of Law, saying that EU enlargement facilitates stabilisation of the political situation in accession countries, as well as helps in carrying our political and economic reforms.
Rehn also called on EU aspirants from the region to follow Slovenia's example. He added that the country, besides being politically stable, already managed to overtake two of the bloc's older members in terms of GDP.
Commissioner Rehn Wants EU to Export Stability
The European Union should export stability and not import instability, European Enlargement Commissioner Olli Rehn told the press after discussing EU enlargement to the Western Balkans with top Slovenian officials.
The European Union should export stability and not import instability, European Enlargement Commissioner Olli Rehn told the press on Friday, 10 February, after discussing EU enlargement to the Western Balkans with top Slovenian officials.
Rehn's talks also touched upon unresolved issues between Slovenia and Croatia, with Rehn reiterating the Commission's position that the EU does not have jurisdiction for solving the border dispute between the two countries.
"This is a bilateral issue," he said. Slovenia and Croatia have to decide by themselves about the way to solve it, he pointed out.
While expressing the Commission's support for finding an agreement on the implementing part of the fisheries chapter in the Slovenia-Croatia border traffic and cooperation agreement (SOPS), Rehn added that fisheries and border are two separate issues.