Slovenia Business Week no 36, November 13, 2006
HEADLINES
Slovenian Inventors Awarded at International Innovation Fair
Slovenian inventors were successful at the IENA 2006 international fair "Ideas, Inventions, New Products", as they received three gold, two silvers and one bronze medal
Slovenian inventors were successful at the IENA 2006 international fair "Ideas, Inventions, New Products", as they received three gold, two silvers and one bronze medal, an association of inventors has said.
Gold medals were presented to Ivan Zrimsek and Sergej Vesenin for the scanner for early detection of breast cancer, and Valentin Zupan for a new generation of accordions. Zrimsek and Vesenin also received one of the three main awards at the fair.
Silver medals were bestowed on Albin Smrke for multi-sensor technology for automatic regulation of energy, and Nina Vojvoda for her multi-functional chair. Marijan Mlekuz received a bronze for his wineglass.
The company Remax received another gold medal for their water fitness programme Retefit.
At the fair, which took place between 2 and 5 November in Nuremberg, Germany, 560 inventors from 32 countries presented 692 innovations, the association Active Slovenian Inventors said in a press release.
Macroeconomic Indicators the Best so Far, PM Says
The PM is convinced that the indicators are reason enough for even greater optimism regarding the impeding 1 January 2007 euro changeover
The relations between key macroeconomic indicators have never been so good in Slovenia, PM Janez Jansa told the press on Wednesday, 8 November, after the European Commission projected that Slovenia's gross domestic product (GDP) growth will reach 4.8% in 2006, while the inflation rate is to stand at 2.5%.
The PM is convinced that the indicators are reason enough for even greater optimism regarding the impeding 1 January 2007 euro changeover.
"Slovenia will become a part of the interior circle of the EU's developed countries, which will in itself boost its reputation and improve opportunities for the Slovenian economy," Jansa added.
According to Jansa, while business conditions will not radically change in the short term, the stability of public finances will improve and business operations will be simplified.
As a new, simpler and friendlier tax system will also enter into force on 1 January, labour costs will be gradually reduced, he said. Parliament passed the government package of tax laws earlier in the month.
The gradual reduction is necessary because loss of budget revenues will have to be compensated somehow after what Jansa termed "the most radical reduction in labour costs so far".
Jansa moreover believes that the business environment will become much friendlier in the coming year, increasing the possibilities for achieving even better economic results.
Slovenia is also reducing its budget deficit, not by reducing the scope of social and other rights, but through cost cutting by the state, the PM explained.
GDP Growth Robust but Heading for a Slowdown
The latest data suggest that the pace of GDP growth is as brisk as it was at the beginning of the year, however the Institute for Macroeconomic Analysis and Development (IMAD) believes the pace will slow down somewhat early next year, in particular due to the VAT hike in Germany
The latest data suggest that the pace of GDP growth is as brisk as it was at the beginning of the year, however the Institute for Macroeconomic Analysis and Development (IMAD) believes the pace will slow down somewhat early next year, in particular due to the VAT hike in Germany.
Due to the value added tax increase in Germany investors and consumers are pushing back spending before the expected price increase, which has boosted exports orders in Slovenia, IMAD director Janez Sustersic told the press on Thursday, 9 November as he presented Autumn Report 2006, the in-depth analysis of the think-tank's September economic forecast that the government confirmed on 9 November.
The strong export growth is one of the reasons why the economy is on track to expand by 4.7% this year with inflation at 2.7%, which IMAD forecast in September. What is more, oil prices dropped soon after the September forecast, so inflation is indeed lower than projected, Sustersic said.
In 2006 growth is projected to slow down to 4.3%, but this is still higher than IMAD expected earlier this year. Sustersic said that the impact of the international environment, which was crucial this year, will be lower, but tax laws will kick in and boost domestic spending.
According to Sustersic, the lower income tax rates will contribute 0.3 percentage points to private consumption, which is still within the framework of macroeconomic sustainability and poses no risk to the overheating of the economy.
On the other hand, the effects of the new corporate tax act, which will gradually cut the rate from 25% to 20% in 2010, will not have an impact on investment spending in 2007 as the general investment relief has been phased out. It is expected that the impact will be felt in 2008, Sustersic said.
Another positive factor will be the ongoing phasing out of the payroll tax, which will be abolished in 2009. The labour market will meanwhile receive a boost in the form of greater work activity as a result of lower taxes.
The main factor of risk in 2007 is pressure on consumer prices following the introduction of the euro on 1 January, and the full liberalisation of the electricity market in July. However, IMAD believes that the risks are small so they were not taken into account in the forecast for 2007.
INTERNATIONAL COOPERATION
Cukjati Visits Canadian Parliament
Speaker of Parliament France Cukjati continued his official trip to Canada with a visit to the Canadian Parliament where he met his counterpart Peter Milliken and Parliamentary Secretary to the Minister of Foreign Affairs Peter Van Loan
Speaker of Parliament France Cukjati continued his official trip to Canada on Monday, 6 November with a visit to the Canadian Parliament where he met his counterpart Peter Milliken and Parliamentary Secretary to the Minister of Foreign Affairs Peter Van Loan.
According to sources close to the Slovenian delegation, Cukjati and Van Loan established that the two countries shared a number of views concerning international issues and that they would like to deepen their cooperation.
The pair also touched on the participation of Canada and Slovenia in peace-keeping missions in the Balkans, with Cukjati praising Canada's role in the region.
While Van Loan congratulated Slovenia upon its upcoming stint as EU president, Cukjati also broached the subject of Slovenia's endeavours to join the OECD, arguing that it met all membership requirements.
Van Loan said that he was Slovenia's ally in this regard and that he was pushing for the Canadian government to take a position on an expansion of the 30-member OECD.
The Slovenian parliamentary speaker also inquired why Prime Minister Stephen Harper cancelled his attendance at the 27 November EU-Canada summit in Tampere, Finland, with Van Loan explaining that the minority government situation in Canada often required the presence of the PM at home.
Cukjati was moreover assured that Canada in no way underestimated the relations with the EU and also that Harper would attend the NATO summit in Riga on 28 and 29 November.
The talks with Milliken dealt with very much the same issues. Cukjati took the opportunity to thank his opposite number for Canada's support to the Slovenian-run International Trust Fund for Demining and Mine Victims Assistance.
Cukjati also pointed to the need to create mechanisms that would enable Canada and the EU to demonstrate their positions concerning international issues, which they share to a very large extent.
Cukjati, who is also accompanied by the chair of the Slovenia-Canada friendship committee Marko Pavliha, the chair of the foreign policy committee Jozef Jerovsek and the deputy chair of the commission for Slovenians abroad Miro Petek, will continue his visit on Tuesday, 7 November by meeting Lorno Milna, the chair of the Canada-Europe Parliamentary Association among others.
The Slovenian delegation will wrap up its five-day trip in Toronto on Wednesday, 8 November by meeting officials from the City of Mississauga, which hosts the Slovenian Consulate led by Honorary Consul General Joze Slobodnik.
Drnovsek Receives Credentials of Three New Ambassadors
President Janez Drnovsek has received credentials from three new ambassadors, namely Argentina's Eugenio Maria Curia, Australia's Peter Shannon and Georgia's Nikoloz Nikolizhvili
President Janez Drnovsek has received credentials from three new ambassadors, namely Argentina's Eugenio Maria Curia, Australia's Peter Shannon and Georgia's Nikoloz Nikolizhvili.
All three will be non-resident ambassadors: Curia and Shannon will be stationed in Vienna, while Nikolizhvili will cover Slovenia from Bratislava, the president's office said on Tuesday, 7 November.
Drnovsek and Curia agreed that relations between Slovenia and Argentina were good and that Slovenians in Argentina established an important tie between the two countries.
Shannon meanwhile emphasised the active role of the Slovenian community in multicultural Australia, while Drnovsek described relations between Slovenia and Australia as good, friendly and developed in all areas.
Nikolozishvili acquainted Drnovsek with the political situation in Georgia and stressed the importance process of joining the EU and NATO for his country.
Nikolozishvili and Drnovsek also discussed the importance of good relations with neighbouring countries.
The three new ambassadors handed the copies of their credentials to Foreign Minister Dimitrij Rupel.
Speaker Cukjati Continues Visit to Canada
The hosts were interested in Slovenia's taking over the euro on 1 January 2007 and its EU presidency in the first half of 2008
Parliament Speaker France Cukjati continued his official trip to Canada on Tuesday, 7 November with another visit to the Canadian Parliament where he met Lorna Milne, the chair of the Canada-Europe Parliamentary Association, Kevin Sorenson, Chair of the Standing Committee on Foreign Affairs and International Development, and Senate President Noel Kinsella.
According to sources close to the Slovenian delegation, Cukjati discussed with his hosts very much the same issues as he did on Monday, 6 November. The hosts were interested in Slovenia's taking over the euro on 1 January 2007 and its EU presidency in the first half of 2008.
Cukjati told his hosts that Slovenia appreciates Canada's contribution to peace-keeping missions, especially in the Balkans. They agreed that Slovenia's and Canada's views on international issues are similar.
They also discussed the Human Security Network, a human rights organisation established by Canada and Norway and currently presided over by Slovenia.
Milne and Cukjati touched on the subject of migrations. Answering Milne's question, whether Slovenia is worried about the increase in migrations now that it is a member of the EU, Cukjati explained that Slovenia has a very low birth rate and has accepted immigrants from the former Yugoslav republics before. Milne explained that Canada is in a similar situation.
Discussing the European constitutional treaty, Cukjati told Milne that this will be one of the main issues during Slovenia's EU presidency.
Meanwhile, Kinsella and Cukjati discussed the possibility of developing cooperation between Canadian ports and port Koper.
Talking to Sorenson, Cukjati again brought up the question of Slovenia's joining the Organisation for Economic Co-operation and Development (OECD) and Sorenson assured him that OECD members are discussing Slovenia's petition to join the organisation.
Rupel Receives New French Ambassador
The pair took the opportunity to highlight the very good relations between the two countries
Foreign Minister Dimitrij Rupel received on Friday, 10 November the credentials of Chantal de Ghaisne de Bourmont, the incoming French ambassador. The pair took the opportunity to highlight the very good relations between the two countries.
According to a press release by the Foreign Ministry, Rupel stressed that France is an important partner for Slovenia in many areas; it notably ranks fourth in the list of Slovenia's economic partners.
The pair agreed that there are still numerous opportunities for improving cooperation, one of the most important being Slovenia's preparations for its stint as EU president that will precede France's.
De Ghaisne de Bourmont even highlighted the strengthening of dialogue in the context of the two country's EU presidencies as one of the most important elements of her activities in Slovenia.
Meanwhile, France and Slovenia are already cooperating intensively in the field of education.
De Ghaisne de Bourmont is taking over from Dominique Gazuy, who was France's Ambassador to Slovenia from October 2003.
PM Jansa Begins Visit to Saudi Arabia
Prime Minister Janez Jansa arrived in the Saudi capital, Riyadh, on 11 November for the start of a five-day tour that will also take him to neighbouring Kuwait
Prime Minister Janez Jansa arrived in the Saudi capital, Riyadh, on Saturday, 11 November for the start of a five-day tour that will also take him to neighbouring Kuwait.
The first ever visit by a top Slovenian official to Saudi Arabia is aimed at bolstering political and business ties between the countries.
Jansa is accompanied by Economy Minister Andrej Vizjak, Foreign Minister Dimitrij Rupel, Defence Minister Karl Erjavec and Health Minister Andrej Brucan, who are scheduled to hold bilateral meetings with their Saudi counterparts.
Moreover, a large business delegation, consisting of 60 Slovenian executives, is also travelling with the prime minister.
While there has been no Slovenian investment in Saudi Arabia, Saudi foreign direct investment (FDI) in Slovenia has totalled a mere EUR 600,000.
However, the Slovenian investment balance sheet is set to improve, as Jansa is due to open a production facility of Slovenian electrical installations products and services company ETI and electronic meters maker Iskraemeco and their Saudi partner MEMF.
Slovenian trade with Kuwait meanwhile stood at EUR 3m in 2005, with Slovenian exports accounting for 98% of that amount.
Slovenia and Saudi Arabia Sign Cooperation Agreement
Slovenia and Saudi Arabia signed a general cooperation agreement and a memorandum of understanding between their foreign ministries in Riyadh part of Prime Minister Janez Jansa's three-day visit to the kingdom
Slovenia and Saudi Arabia signed a general cooperation agreement and a memorandum of understanding between their foreign ministries in Riyadh on Saturday, 11 November, as part of Prime Minister Janez Jansa's three-day visit to the kingdom. The development has been labelled a milestone for Slovenian foreign policy in the Middle East by Slovenian FM Dimitrij Rupel.
The general cooperation agreement was signed by Slovenian Economy Minister Andrej Vizjak and Saudi Minister of State for Foreign Affairs Nizar Madani. Madani and Rupel signed the memorandum on cooperation between the Saudi and Slovenian foreign ministries.
According to Vizjak, the document on general cooperation forms the basis for building closer ties between Slovenia and Saudi Arabia. Rupel stressed that the two countries had not developed relations so far, which is why today's development is of great importance.
Building closer ties with Saudi Arabia, an important regional player, is imperative also from the viewpoint of Slovenia's stint as EU president in the first half of 2008, Rupel suggested.
Sitting on the biggest reserves of crude oil in the world, Saudi Arabia is an energy powerhouse. According to Rupel, relations with the country are important as Slovenia makes energy stability a priority of its EU presidency.
Vizjak told the Slovenian press that along with the general cooperation agreement, a Saudi-Slovenian business conference and the opening of a plant built by two Slovenian companies with their Saudi partner were a good basis for further economic cooperation.
Vizjak took the opportunity to invite Madani to Slovenia. He also issued a call to Saudi business officials to invest in Slovenia, adding that the biggest opportunities lie in the development of logistics hubs.
Vizjak and Madani also discussed the launch of a shipping route between Slovenia's port of Koper and ports in Saudi Arabia, which would give Slovenia access to Middle Eastern markets, including Iraq. The Iraqi market is expected to blossom once the security situation there stabilises, Madani is said to have told Vizjak.
Moreover, the shipping route could also present a gateway for Slovenian products to other Asian markets, including India, Vizjak said.
The signing of the two agreements took place after a round of official talks between the Slovenian and Saudi delegations on Saturday, 11 November.
The first ever visit by a top Slovenian official to Saudi Arabia is aimed at bolstering political and business ties between the countries.