Slovenia Business Week no. 03, January 16th 2006
Table of contents:
HEADLINES
Reforms Coordination Office Expects Busy Year
Slovenia 14th Most Innovative Country in the EU
Central Bank Labels Fiscal Policy on Track for Euro Changeover
INTERNATIONAL COOPERATION
Sava River Basin Commission Officially Launched
Slovenia to Help Montenegro With EU Bid
State Secretary Receives New Cuban Ambassador
EUROPEAN UNION
Slovenia Endorses Austria's EU Agenda, Rupel Says
Ambassador: Austria to Chair EU Pragmatically and Impartially
Reforms Minister Presents Privatisation Plans to EBRD President
Government Discusses Priority Tasks for EU Presidency
LEGISLATION
Parliament Rejects Wine Act in Renewed Vote
Lawmakers Overturn Veto on Changes to Trade Act
STATISTICS/FORECASTS
Trade Gap Soars in November
Factory-Gate Prices Up 0.4% in December
Industrial Output up 7.3% Y/Y in November
Slovenia Leads EU in Layoffs, Trade Unionist Says
IMAD: 3.9% Growth Target Likely Reached in 2005
Foreign Debt at EUR 18.6bn
Households with Children Better Equipped with ICT
Broadband Internet Connection on the Rise in Slovenia
FINANCE
Two Companies Bidding for Euro Calculator
Health Insurer Triglav to Have 193,000 Customers
Italian Bank Sells Stake in Slovenian Bank to Fellow Italian Bank
Ljubljana Stock Exchange
Foreign Exchange
REGIONAL INFORMATION
Drnovsek Praises Dynamic Development in Maribor
BRANCH INFORMATION
VURS: Slovenia not at Risk due to Bird Flu in Turkey
National Review Commission Annuls Mobile Phone Tender
Customs Enforce Stricter Control of Luggage from Bird Flu Areas
PM's Economic Body Says Energy Supply Stable
Tourist Board to Focus on Advertising in 2006
Passat Pips Clio for Title of Best Slovenian Car
Relaxed Poultry Ban Enters into Force
COMPANIES
Renault Nissan Sees Drop in Sales, Market Share in 2005
Mercator CEO: All Former Yugoslav Retailers Potential Partners
Ljubljana Airport to Increase Presence of Foreign Carriers
Tuerk to Run for ELES Director General
Strong Year for Perutnina Ptuj, Chairman Says
Government Appoints Four Members to RTV Slovenija Supervisory Board
Mercator: Merger of Balkan Retailers Only Initiatives so Far
Railway Company Posts Lower Loss than Planned
Slovenian National Telco Not to Buy Maltacom After All
Adria Airways Increases Number of Passengers Y-on-Y, Posts Loss
Turkish Airlines to Launch Regular Flights from Brnik
SLOVENIA IN BRIEF
Secretary for Slovenians Abroad Receives Representatives from Italy
Parliament Appoints RTV Slovenija Programming Council Members
New Zealand Sailing Champion Tests his New Boat in Portoroz
European Commission Awaiting Slovenia's Answer on Fishing Regime
HEADLINES
Reforms Coordination Office Expects Busy Year
According to Damijan, the main objectives of the newly-established office are to increase economic competitiveness, provide dynamic economic growth and curb unemployment while maintaining social security
The new Government Office for the Coordination and Implementation of Slovenia's Development Strategy, headed by reforms minister Joze P. Damijan, presented its team and key areas of work on Wednesday, 11 January. Damijan said the office expected a busy year as the government goes about implementing structural reforms.
According to Damijan, the main objectives of the newly-established office are to increase economic competitiveness, provide dynamic economic growth and curb unemployment while maintaining social security.
"A year of compromises lies ahead of us, a year of social dialogue, which will hopefully bring a solution that in five-years time will make Slovenia one of the most successful European countries," Damijan said.
He claimed he had a very strong team at his disposal. The office is composed of a sector for economic and a sector for social reforms, and employs 15 people.
Andrej Horvat will act as state secretary, the cabinet will be run by Zivana Mejac, while Lidija Apohal Vuckovic and Bostjan Vasle will head the economic and social reforms sector respectively.
Damijan said the team has already been acquainted with the plans expert groups have proposed for the privatisation of two major Slovenian banks, the national telco Telekom Slovenije and the energy sector, and was in the process of forwarding an expert opinion to the government.
He also explained the Finance Ministry was in charge of finding a contractor who would design a simulation model forecasting the effects of the proposed reforms, adding he expected the first results in March.
Slovenia 14th Most Innovative Country in the EU
Moreover, Slovenia came second among the ten new member states, being outperformed only by Estonia
Slovenia has placed the 14th most innovative country among all 25 EU member states, according to the European Innovation Scoreboard (EIS), which was published in Brussels on Thursday, 12 January.
Moreover, Slovenia came second among the ten new member states, being outperformed only by Estonia, according to the EIS report.
Slovenia's innovation performance is relatively well-balanced, with no major discrepancies in different innovation categories, with the exception of intellectual property rights.
With improvements in several crucial areas and a good foundation in innovators, the country has the ability to rapidly improve its performance, the report adds.
The EIS indicators which determine a country's rank are distributed among five categories that measure innovation performance.
The report pinpoints Slovenia's best performance in the first category, namely the innovation drivers, which measure the structural conditions required for innovation potential.
The country's excellent result is due to extensive life-long learning programmes and above-average results for youth education.
Slovenia also did exceptionally well in the second category (knowledge creation), as its business R&D stood at 0.90% of GDP in 2003 (71% of the EU average).
However, the country also faces several challenges, with the main issue pinpointed as the below-average levels of ICT investment (83% of the EU average with no sign of improvement).
Moreover, the country spends a below-average amount of money on innovation, reaching 61% of the EU average, in addition to being faced with a drop in numbers of science and engineering graduates, which fell to 71% of the EU average in 2003.
Due to these troubles the country has been placed in the "catching up" group of countries, the third best out of four categories.
According to EIS, Europe's most innovative countries are Switzerland, Finland, Sweden and Denmark, while the worst are Spain, Poland and Slovakia.
Central Bank Labels Fiscal Policy on Track for Euro Changeover
The board of governors of the country's central bank agreed that the current interest rate guarantees a stable tolar/euro exchange rate, while Slovenia also fulfilled all the euro convergence criteria
The board of governors of the country's central bank agreed on Thursday, 12 January that the current interest rate guarantees a stable tolar/euro exchange rate, while Slovenia also fulfilled all the euro convergence criteria.
The Bank of Slovenia also expressed its hope that the country would remain on track for the planned 1 January 2007 euro changeover in the future as well.
The board of governors also assessed that wage growth presents no impeding threat to a rise in inflation, while macroeconomic risks are limited, due to upbeat data on the growth and the structure of the GDP.
However, the governors agreed that a large rise in oil prices would present the biggest threat to the inflation rate, according to the press release from the central bank.
The board of governors moreover discussed a bill on the euro changeover. The bill was drafted by an inter-ministerial task force, and, according to the Finance Ministry, will be discussed by the government in the first half of 2006.
The bill regulates the procedure for changing Slovenian tolars into euros, the period and the course of the period when both euros and tolars are in circulation, and includes provisions on how the companies should switch to doing business in euros.
The ministry added that the task force consisted from representatives of the Bank of Slovenia, the finance, economics and justice ministries, the government's legal service and representatives of the Securities Market Agency.
The expenses for the information campaign in 2006 and the beginning of 2007 being forecast at SIT 330m (EUR 1.4m). A portion of this money is expected to come from the European PRINCE programme.
Informative double pricing is set to start on 1 March 2006, the actual double pricing phase, on the other hand, will start a day after the final tolar/euro exchange rate is set, and would end at the end of June 2007.
The new currency will be introduced with 1 January 2007, with the changeover period, when both euros and tolars are in circulation, lasting through 14 January 2007.
After February 2007 the exchange of tolars without commission will only be possible at the Bank of Slovenia, with no time restrictions for the exchange of bank notes while coins will only be accepted until 2016.
INTERNATIONAL COOPERATION
SavaRiver Basin Commission Officially Launched
The international commission was formally established on 27 June 2005 by Slovenia, Croatia, Bosnia-Herzegovina and Serbia-Montenegro after a framework agreement on the Sava basin was signed by the countries in 2002
The international commission for the Sava river basin, based in Croatia's Zagreb, launched operations on Monday, 9 January, the Slovenian Ministry of the Environment and Spatial Planning said in a press release.
A staff of eight headed by secretary Dragoljub Komatina of Serbia-Montenegro will now take on the task of drawing up a plan for water management along the river, to be followed by measures necessary for the establishment of a navigable route.
The international commission was formally established on 27 June 2005 by Slovenia, Croatia, Bosnia-Herzegovina and Serbia-Montenegro after a framework agreement on the Sava basin was signed by the countries in 2002. The accord committed the signatories to joint sustainable management of the river's water resources.
The agreement is a first example of development cooperation among former Yugoslav countries. According to the Environment Ministry, Slovenia as the only EU member in the group, bears particular responsibility for upholding EU standards of environmental protection.
Slovenia to Help Montenegro With EU Bid
Slovenian Foreign Minister Dimitrij Rupel promised Montenegrin Foreign Minister Miodrag Vlahovic that Slovenia was willing to help Montenegro with its bid to join the EU
Slovenian Foreign Minister Dimitrij Rupel on Tuesday, 10 January promised Montenegrin Foreign Minister Miodrag Vlahovic that Slovenia was willing to help Montenegro with its bid to join the EU.
Slovenia stands ready to provide Montenegro with advice and information on EU accession and integration, Rupel told the press in Ljubljana.
Efforts will also be made to improve the already satisfactory economic cooperation, Rupel told the press in Ljubljana.
The ministers also used Vlahovic's working visit to discuss the situation in the region but focused above all on Montenegro's future including its accession to the EU and the upcoming referendum on its status.
Vlahovic says Montenegro wants the referendum, planned for this spring, to be carried out openly, peacefully and in accordance with the law.
He stressed that the authorities in Podgorica would not have decided to hold a referendum were they not convinced of a positive outcome. Rupel said Slovenia would respect whatever outcome, provided the referendum was carried out democratically.
Vlahovic said the referendum rules were clear and emphasised that "whatever is good for the EU is good for us". He expressed the wish that Montenegro could then set out on the road of Euro-Atlantic integration as a democratic and independent country. The referendum could also serve to improve relations with Slovenia.
Slovenia intends to help Montenegro on its way to the EU by organising visits by Montenegrin political, academic and other representatives to Slovenia, said Rupel. Slovenia would also use its influence in the EU to promote Montenegro and highlight its achievements.
During the press conference Rupel also commended the fact that Montenegro and Croatia had resolved their border dispute, albeit temporarily. "In the light of the unresolved dispute between Slovenia and Croatia maybe our Serb and Montenegrin friends could teach us something," added Rupel.
State Secretary Receives New Cuban Ambassador
The newly appointed Cuban Ambassador to Slovenia Norma Goicochea Estenoz presented copies of her credentials to ForeignMinistryState Secretary Bozo Cerar
The newly appointed Cuban Ambassador to Slovenia Norma Goicochea Estenoz presented copies of her credentials to Foreign Ministry State Secretary Bozo Cerar in Ljubljana on Friday, 13 January, the Foreign Ministry said.
Cerar took this opportunity to express Slovenia's interest in solving the issue of Cuba's debt to Slovenia.
He believes that this would be an important step for Slovenian companies and banks toward reinforcing cooperation with Cuba in trade, the press release also reads.
Goicochea Estenoz and her host shared a view that cooperation could be strengthened, however, the two countries should first find points of common interests.
"Slovenia is in favour of a constructive and honest dialogue between the EU and Cuba," Cerar said. For Slovenia, which is to chair the bloc in the first half of 2008, the respect for human rights is one of the pillars of foreign policy.
Ambassador Goicochea Estenoz, who is based in Austria's Vienna, succeeded Jose Ramon Cabanas Rodriguez, who represented Cuba in Slovenia since December 2001.
EUROPEAN UNION
Slovenia Endorses Austria's EU Agenda, Rupel Says
Slovenia supports the priorities of the Austrian presidency of the EU, Foreign Minister Dimitrij Rupel has told ambassadors from EU member states in Slovenia
Slovenia supports the priorities of the Austrian presidency of the EU, Foreign Minister Dimitrij Rupel has told ambassadors from EU member states in Slovenia.
A meeting between Rupel and the ambassadors from the EU countries in Slovenia on Wednesday, 11 January was aimed at debating Austria's agenda for its six-month stint as EU president, the Foreign Ministry said in a press release.
According to Rupel, the agreement on the 2007-2013 EU spending plan has injected fresh optimism into the EU, which should allow Austria to go about its tasks more optimistically.
"Slovenia will support Austria in efforts to implement the priorities of its presidency," Rupel told the diplomats.
"Slovenia believes that bolstering trust in the EU, drafting the European budget, promoting economic growth and job creation...are of great importance for the 21st century Europe," Rupel added.
He said that Austria's plans to try and revive the debate about the European constitution is also a noble aim. "We are convinced that the European Constitution is far from dead," Rupel said.
The time has come to start thinking about the constitution again, he added. "It looks very likely that the debate on the ratification and implementation of the constitution will intensify during Slovenia's presidency in 2008," he said.
Rupel also welcomed Austria's decision to include the Western Balkans among the priorities of its presidency. "All countries in the Western Balkans made enormous progress towards EU membership over the last year," he added.
Ambassador: Austria to Chair EU Pragmatically and Impartially
During its six-month stint as the EU chair, Austria wants to cooperate closely with the European Commission and the European Parliament
Austria wants to chair the EU in a pragmatic and impartial way, Austrian Ambassador to Slovenia Valentin Inzko told the joint session of the parliamentary foreign policy and European affairs committees in Ljubljana on Wednesday, 11 January.
During its six-month stint as the EU chair, Austria wants to cooperate closely with the European Commission and the European Parliament, Inzko stressed.
Increasing the trust in the EU and creating a positive atmosphere will be among the country's priorities, said the ambassador. This should also help make progress on the EU Constitution, which was rejected by France and Netherlands in 2005, he explained.
In answering National Party (SNS) MP Bogdan Barovic, Inzko, however, said he did not believe that Austria could secure a breakthrough on the constitution. He added that a major shift was likely during Germany's presidency in the first half of 2007.
He said that Austria would also support the EU accession of countries in the Western Balkans, however not due to altruism but because of its own and Europe's interests, as stability in the region is vital for stability in Europe in general.
Moreover, Austria counts on Slovenia's aid and support, especially in dealing with Western Balkan states. The country is also already helping Slovenia as it gears up for its stint as EU chair in the first half of 2008.
Apart from the ongoing exchange of diplomats, opposition Liberal Democrats (LDS) MP Milan M. Cvikl called for both parliaments to cooperate in the same way.