The Slovenia Times 129

BEAUTY & LEISURE: Healthy eating habits for a long life

The Slovenia Times, Slovenian magazine in English, volume 7, number 128, EUR 4,80

June 2010

Ecology and Sustainable Development An Array of Opportunities While Saving the Planet

INSIDE: Football World Cup Special

CONTENTS

June 2010 Business Partners

POLITICS

6 8 9 10

Students protest against little labour Facing the arbitration referendum 20 years of Slovenian democracy Interview: Dorijan Maršič, ITF

14 16 18 20

ECONOMY

22

Impact of Greek crisis on Slovenia Slovenia gets OECD membership The ups and downs of Ljubljana Stock Exchange Interview: Tina Kumelj, marketing manager of the year New focus in Real Vienna 2010

25 26

Trading with China and Russia A new era for Libya-Slovenia relations

FOREIGN DIRECT INVESTMENT

ECOLOGY SPECIAL 27 29 30 32 34 35 36 37 38 39 40

Is Slovenia doing enough for future generations?

Interview: Lučka Kajfež Bogataj IECD conference outlines actions for energy sustainability Eco tourism potential ‘Green’ tax Slovenian giants take steps for the future Interview: Blaž Košorok, TE-TOL Reducing carbon footprint in automotive industry Eco awareness on the increase amongst consumers Milk-o-mat is making a comeback Looking after the wildlife in Slovenian forests

42 44 45 46 48

The importance of healthy eating habits Ljubljana marketplace JB restaurant at the world top DINE WITH STYLE: Restaurant Grad Otočec The old-fashioned postman returns to the capital

LIFESTYLE

S l o t i m e s a v g u s t 2 3 0 x 9 5 mm

CULTURE

11. junij 2009 10:43:56

49 55

The Event Guide The first scenes of a grand co-production

56 57

SPORTS

58

Every picture tells a story

The glory of Hella-Saturnus Rally Interview: Johan Musseuw, bicycle legend

June 2010

PANORAMA What is Natural?

The parliamentary Labour, Family and Social Affairs Committee debated proposed new family law, but the two-day discussion failed to move on from ideological disputes over the right of gay couples to adopt children, which has dominated discussions since the bill was unveiled in September. Controversy over whether same-sex couples should be allowed to legally adopt children meant that the committee remained stuck at Article 1 of the bill that paves the way for gay adoptions by defining family as a community of children with one or both parents or other adult caregivers. In a debate that also featured civil-society opponents and advocates, liberal coalition MPs argued that by giving samesex couples the right to adopt children, the bill just followed reality. Deputies from the conservative opposition meanwhile claimed this should not be allowed as it undermines the traditional notion of family. Pointing to single parent families, foster families as well as same-sex families, Dejan Levrač of the ruling Social Democrats (SD) said that these families were also natural. The opposition begged to differ, with Jakob Presecnik of the People’s Party (SLS) saying he “cannot agree with total liberalism in all areas covered by the bill”.

Supporters of traditional family staging a rally in front of the parliament.

Baričevič Case Closed

The government released files related to the Baričević case showing that the 2009 decision to return the dogs to their owner, influential Ljubljana doctor Sasa Baričević, whom they went on to maul to death only a few months later, was wrong. Almost three months after the highly-publicised incident, Prime Minister Borut Pahor admitted that the decision should have been made to put the three dangerous bullmastiffs down instead of returning them to their owner. “There is no doubt anymore that there was sufficient grounds to put down the provenly dangerous dogs,” he said. The key document in the case file is an opinion of the government legal office which says that the Agriculture Ministry should not have followed a 2008 administrative court decision in returning the dogs to their owner.

Instead, it should hape applied the animal protection act which requires that dangerous dogs be put down. Despite the documents showing he made the wrong decision, the former agricultural minister maintains that he had done nothing wrong and that he merely followed the letter of the law.

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A Blast From the Past A proposal by an Austrian rightist Freedom Party (FPOe) to disband an organisation of the Slovenian minority for its alleged involvement in 1970s terrorist bombings in Austria caused uproar in the week of the 55th anniversary of the signing of the Austrian State Treaty. FPOe also suggested that all negotiations on bilingual German-Slovenian city limits in the province of Carinthia be put on hold and history books rewritten. The National Council of Carinthian Slovenians (NSKS) came under fire after Slovenia’s opposition SDS had dug up materials allegedly linking former NSKS president Matevz Grilc and another former NSKS

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source: STA, Slovenian Press Agency

Extremists in the way of good relations: Slovenian Ambassador in Vienna Aleksander Geržina with FM Samuel Žbogar visiting Austrian president Heinz Fischer.

official, Marko Dumpelnik, to a 1979 terrorist bombing of a local museum in Voelkermarkt in Carinthia. Several Slovenian officials responded to the news. FM Samuel Žbogar pointed out at a session of the parliamentary Foreign Policy Committee that the matter showed how the domestic policy can affect the positions of the Slovenian diaspora. Ambassador to Austria Aleksander Gerzina labelled the FPOe’s demand as “unacceptable” and Minister for Slovenians Aboard Bostjan Žekš expressed concern that the issue was being used for political gain both in Slovenia and Austria.

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UNDER THE PRESS Parliament

Health care

Gantar Stays

Hearth and kidney at once

Parliament Speaker Pavel Gantar won a vote of confidence in parliament, after the opposition Democrats filed a motion to oust him for refusing to call a session on the funding of a new stadium in Ljubljana. The SDS accused Gantar that the refusals were aimed at protecting Ljubljana Mayor Zoran Janković. While the SDS claimed that Gantar violated the Constitution by refusing to call a session on the matter, he replied that he was in fact defending it, saying that the National Assembly could not encroach on the independence of companies. He told the deputies that the National Assembly was not allowed to do whatever it pleased and sessions could not be called on matters within the jurisdiction of other branches of power. The motion to oust Gantar failed as the coalition rejected the SDS’s accusations, claiming the party abused the debate to attack Janković ahead of local elections in the autumn.

Media

Public Broadcaster Redefined The government adopted on a bill on the public broadcaster which would make RTV Slovenija an independent institution governed by public law, while its employees would be removed from the public sector.

Culture Minister Majda Širca assured that the bill would give the public broadcaster greater autonomy as well as the opportunities for to changes in its management and organisation. The RTV Slovenija Council will be cut down from 29 to 15 members, appointed by various institutions from the president, parliament, academic organisations, NGOs and the employees. The minister highlighted that the bill was very precise on transparency and a clear distinction between market-oriented part of the broadcaster and the public service, in particular in view of EU regulations on state aid.

Slovenia’s main hospital, UKC Ljubljana, achieved another Slovenian first by conducting a simultaneous transplantation of a heart and kidney in a patient. UKC director Simon Vrhunec hailed the procedure as a breakthrough. Very few health centres in the world can boast of performing a simultaneous transplant of this kind and only 15-20 such procedures are carried out around the world each year. He also took the opportunity to warn that financial problems in health could curb future advances at the hospital. The procedure saved the life of a 52-year-old, who suffered from both advanced heart failure and chronic kidney failure. The procedure lasted 10 hours and went without complications.

We say today that we were on the winning side of the WWII. Mostly it is true, but at the same time Italy was on the defeated side and won Trieste and Gorizia, with 130,000 Slovenians remaining behind the Italian border. Croatia didn’t have a glorious history with its NDH (WWII Nazi puppet state), but got the entire Istrian peninsula. There were 55,000 Slovenes in Istria in the beginning of 20th century.

Where are they today? History teaches us that we should be united in crucial moments, when national interests are in question.

Imagine that Slovenian independence would be negotiated with Belgrade by those who didn’t believe in it. What would be the result?

Former PM and the leader of opposition, Janez Janša, teaching history at the celebration of 20 years of the first democratically elected government.

We want to contribute to respecting the truth about historical facts, to justice and tolerance in statements and public appearances and most of all to recognition of “true demands of justice” also when the border is in question. Here we point at a fact, that Republic of Slovenia holds the access to high seas as a vital interest, which can be lost, while there is no such danger can for Croatia..

Archbishop of Ljubljana, Msgr.

Anton Stres, on justice and maritime dangers.

Crime

Balkan Warrior Strikes 14 people are have been arrested as police swooped on members of a suspected Balkan drug trafficking ring. The sting that was conducted by special police units saw as many as 30 house searches conducted around Slovenia. Police said they generated significant proceeds trough their criminal activities. The activities in Slovenia are a part of a wider regional operation called “Balkan Warrior”, which was targeted against a Serb-led drug cartel suspected of shipping cocaine from Latin America to the Balkans. The operation have been underway for months, with Serbian police seizing as much as 2.5 tonnes of cocaine in South America last October.

Reports mention that the US Drug Enforcement Agency (DEA) is participating in the operation, which has also received support from Serbian and Slovenian intelligence services.

A just border is the one that assures that we can take back everything we have brought into a common country. This is the whole of Istra and the three islands – Cres, Lošinj, Krk – as well as the left bank of Drava river. Zagreb took this using the courts in the Kingdom of Yugoslavia and the communist Yugoslavia, all that with extensive help of Slovenian politicians. Unfortunately, also with the current ones.

The humble Slovenian territorial rights according to Slovene National Party leader Zmago Jelinčič Plemeniti, in a public internet chat at MMC.

I’m almost sure that, with so many different opinions cited in newspapers, even regular readers know what it is all about.

Still, not all citizens in our country are readers. Misleading is simplified argumentation by mentioning the sea in literature and the emotional attachment of Slovenes to it. Even more misleading are false statements that we will quit being a maritime country, if we ratify the arbitration agreement.

What in the world can stop us being a maritime country if we come to an agreement by a solution, which takes into account international law, historical facts and the logic of peaceful relations? Saying that accepting the arbitration deal means an act of collaboration with an occupier can be understood only as emotionally affected speaking. Who knows whether the voters will separate serious facts from poetic exaggeration?

Former MEP Mojca Drčar Murko in Delo on the confusing and emotional referendum campaign.

A WORD FROM THE EDITOR

POLITICS

Student Labour

Choose a Century

By Jaka Terpinc

The Socialist Republic of Slovenia, 20 years ago.

The first democratically elected government had just come to power.

It was a colourful collection of political forces representing an alternative to four decades of communist rule. Its master plan was to erase the socialist adjective and to lead the country out of the Yugoslav federation, which was on the brink of its self destruction. It was an aim was backed by an overwhelming majority of the population.

These days the same political forces meet to reflect and project.

Same people, with less hair and definitely with less colour in it. The colour has also vanished from their ties; the bright ties of the late eighties have long since ceased to be fashionable. Ultimately, the spectrum of political ideas has narrowed down to a couple of parties, while the national curiosity and intellectual drive has become stuck in populism and a lack of vision.

Today such people meet to tackle what is regarded as the last remaining problem of national sovereignty. But while sovereignty began with a unanimously confirmed independence plebiscite, it seem to be ending with a typical Slovene-like division which awaits another referendum vote. The country needs to decide whether or not ask international arbiters to judge the disputed border with Croatia, potentially unlocking the direct access to the high seas which was lost with independence. Access to international waters is something generations of Slovenians were used to, sailing under the previous flags, the last of which was Yugoslavian. This is popularly referred to as the “historical right of strategic importance”.

The dispute with Croatia has now become a dispute among Slovenians. The current government is firmly behind the arbitration as it would, so they claim, end the dispute and achieve the ultimate goal – our own doorway to the oceans. The opposition doesn’t buy it, yet it remains unclear whether it opposes it for a reason or because of its role – to oppose. Some even speculate on pure jealousy. Janez Janša, the shepherd of the right-wing opposition believers – who was once a respectable prime minister in an EU presiding country – stayed silent at first. When he finally spoke, it wasn’t much of arguments or alternative solutions, but thundering with patriotic statements and labeling the arbitration as yet another historical injustice waiting to happen.

While initial polling has indicated a positive answer to the question being posed in the referendum, it is far too early to draw conclusions. There is Greek euro-scepticism and the economic crisis in the air. The vote is also set before the holiday season, when Slovenians are less friendly to Croats because they have not yet received their annual pampering with sea, sunshine, seafood, and merry Dalmatian music.

The referendum itself is a dubious act. It was proposed by the government because it feels the public should be directly consulted on such an important issue. Yet little information has been given on what the real consequences of possible outcomes might be, and much of everything goes down to emotions. Instead of solid sober arguments, we are exposed to a steady diet of the glorious history of injustices occasionally accompanied with some ridiculous territorial claims. It seems that being an independent nation-state is something we are still getting used to, along with the fact that beside stubbornness and hard heads, we now also own our diplomacy, and we live in the European Union where borders matter less and less. That’s why the forthcoming vote on arbitration is more temporal than territorial.

It will determine in which century Slovenes want to live.

Little Labour, Big Trouble Several thousand Slovenian students took the streets of Ljubljana and voiced their opposition to the “little labour” act. After several rounds of talks, the heads of the student organization ŠOU and Prime Minister Borut Pahor did not come to any acceptable solution regarding a legislative proposal that both limits students’ ability to work during their studies and places a maximum wage on their earnings.

By Barbara Štor

A

pproximately 8,000 university and high school students from all over the country gathered on the morning of Wednesday, 19th May in the centre of Ljubljana to protest a new bill that would limit students’ work and thus their income during their studies.

While students are ones most loudly protesting the bill, the proposed change in the law applies not only to them, but also to pensioners, the unemployed and other “inactive” people. The measure is a part of a wider campaign, implemented by the government, in

From peaceful protests to riots and vandalism.

order to make the country more competitive.

What worries the students most is the fact that the so-called little labour act foresees the limitation of student work to 720 hours and EUR 6,000 per year. Students are naturally upset, explaining that many hold down jobs during their studies to pay their living costs in the face of dwindling scholarships. According to their leader, Katja Šoba, they have every right to earn their money, as it is often the only way to pay their studies and any kind of limitation would further worsen their financial sit-

POLITICS

Loss of Control The student protest, peaceful at first, later turned into a riot, when some of the students, who had gathered initially at Prešeren Square, then marched to the Slovenian Parliament. Despite the presence of hundreds of police officers in riot gear, some protestors began to throw eggs, granite blocks, signposts, even a molotov cocktail at the building, breaking some windows and forcing the parliament to suspend its session.

The assembly suffered severe damage, estimated at EUR 27,000.

To restrain the angry crowd, the police used pepper spray and arrested 31 rioters, 15 of whom were minors, many under the influence of alcohol.

Minister of Labour, Family and Social Affairs, Ivan Svetlik labelled the violent protest a sad and regrettable event and added that the student organisation would have to accept full responsibility for what happened. In contrast, the organizers distanced themselves from any association with the violence by condemning it. As Šoba explained, she called on the group in front of the parliament to leave when the protest was over, but they were very angry and “difficult to control.”

“A Hotbed” of Irregularities Why is student labour such a contentious issue? Perhaps the

answer lies within the following facts: student jobs in Slovenia are the least taxed of all types of labour, students do not have to contribute to the public pension fund, nor do the employers have to pay for students’ social and health services. Since student workers are much cheaper than fulltime employees, many employers prefer hiring students or even demand to pay to somebody else’s student referrals. At the same time, there is very little paper work to do: everything that a student needs is a so-called student referral (i.e. a proof of student’s status) and he or she can start working immediately.

Since is almost impossible for young graduates to find a job directly after the completion of their studies, many decide to prolong their study and thus continue working via referrals. No wonder that Slovenia is facing a clear trend of prolongation of education: on average, studies last seven years – the second longest in Europe, after Poland. Since student labour is so appealing, many young people enrol in university not to study but to get proof of their student status and therefore be able to enter the student labour market.

The mediators between students and employers are the student employment services. There are approximately 80 such agencies across the country, which are financed from student labour.

However, many believe that these agencies are totally unnecessary and that they live off the sweat of the students. According to the

most recent data available, more than one million student referrals were issued in 2008 and the students performed 84 million hours of labour. The average annual income per student amounted to EUR 2,700, while gross disbursements came to EUR 340m. From this amount, some EUR 15m went to student organisations while another EUR 15m was divided between student employment services. Despite part of the student job taxation being channelled directly to student organisations (which do in fact support students with many benefits) some individuals have found a way to take advantage of the situation to become incredibly wealthy, the socalled “student barons”.

Every Third Must Work Although students agree that the student labour market should be better regulated, at the same they time warn the government that every third student must work in order to live. In Slovenia only a quarter of all students receive some kind of scholarship in the average monthly amount of EUR 180, but according to their calculations an average student needs at least EUR 400 monthly for his/her needs. Some students receive state-issued scholarships, allocated on the basis of their financial situation and social status. Organisations and employers also give out scholarships, mostly to sponsor prospective students in their field of work.

Since most Slovenian students do not receive any scholarship, they must finance their years at

university with part-time work.

Therefore, apart from their everyday student obligations, many work in restaurants, bars and shops. The students do not work for a little extra spending money, the student organization explains, but because they are forced to and they would not do so if they had scholarships. In their eyes, student work is a form of a social corrective for under-privileged students and before the state implements the changes of student work, it will have to change its inadequate and insufficient scholarship policy first.

Minister of Labour Svetlik is convinced that the new Act regulates a number of students’ rights.

An individual, for example, who would perform student work would be included in pension and health insurance programs.

Moreover, working part time would be included in the working period. He also promised that the government would increase the number of scholarships, while part of the money from student work would be earmarked for the construction of student hostels and different student projects.

Students should focus on studies, pointed out Svetlik, while the state should provide education to everyone, he added.

As the protests were organized and advertised using a large budget, one question remains: is it really the students who fear changes, or would the new act only cut the profits of those who take advantage of student jobs – the employers and the student services?

Photo: BOBO

uation. As she described, the politicians, while young, “... had sex, drugs and rock ‘n’ roll. We’ll have ‘little labour’ and loans to pay.”

June 2010

POLITICS

Border arbitration

The Big Decision On June 6, Slovenian voters will once again head to the polls in the latest of Slovenia’s frequent referenda. This time, however, the subject is far from trivial.

By Jaka Bartolj

S

Photo: BOBO

lovenian voters may open a new chapter in the country’s protracted border dispute with Croatia. Befitting such a major political decision, the pre-referendum campaign is become more energized by the day.

At the referendum, voters will be asked whether to support a border arbitration treaty that would define the border between Slovenia and Croatia. At issue is the maritime border, which was never defined in Yugoslav times, as well as a few disputed stretches of the border on land. The treaty would establish an arbitration panel which would rule on the border, and its decision would be binding for both countries.

Never the Twain Shall Meet As is frequently the case in Slovenia, the main parties’ positions reveal an almost perfect left-right political split. The daily Delo describes the campaign as “a battle for interpretation fought along ideological lines.”

The centre-right opposition is loudly opposed to the arbitration deal. To them, the deal jeopardises Slovenia’s vital interests. It could, they argue, result in Slovenia losing its access to international waters.

The proponents of the arbitration deal, including the centre-left government parties, argue that, whatever happens, Slovenia is guaranteed access to international waters at the point where Italian and former Yugoslav maritime territories converge. They point to the language of the agreement, which includes a specific mention of a “junction” of Slovenian and international waters, as a castiron guarantee that Slovenia will get its way. According to Prime Minister Borut Pahor, “We know what the consequences - these are mostly predictable consequences - will be.”

Gambling Away?

Or maybe not. The opponents are concerned that the “junction” could end up simply being a joint Slovenian-Croatian strip of land between truncated Slovenian territorial waters and the high seas The Slovenia Times

Guerilla political advertising: Slovenia against arbitration.

– a mere condominium and a far cry from actual territorial access so vital for Slovenia. They are particularly bothered by the mention of international law in the agreement document. If the decision were made strictly on the basis of international law, not taking the concept of fairness and historic circumstances into account, the arbitration panel would likely follow precedent and split the Bay of Piran right down the middle – a position unacceptable to Slovenia, regardless of any condominiums or rights-of-way. For the sceptics, the status quo is preferable to such a risky gamble. The sentiment expressed by opposition MP Zvonko Černač -- that “Slovenia is gambling with an important part of its sovereignty” -- is a common argument.

To others, the status quo is no solution. They point out that it is inherently favourable to Croatia,

which has exercised de facto control over one-half of the Bay of Piran as well as a number of disputed settlements since independence. The arbitration agreement provides an opportunity for Slovenia to change the status quo before it becomes permanently entrenched. Besides, say the proponents of the deal, there is simply no available alternative that could take place of the current arbitration settlement, no matter how imperfect it may be.

Down to the Wire The latest polls show the vote in favour of the agreement a few percentage points ahead of the no vote. However, about a third of the prospective voters remain undecided. They will get to determine the outcome, and both sides are busy wooing them. So far, the opponents have appeared to have

been more successful. First a group of prominent intellectuals spoke up against the agreement, arguing that it jeopardises Slovenia’s national interest. Then, the Catholic Church seemed to join the “no” chorus, with Ivan Kukar of the Justice and Peace Commission at the Slovenian Bishops’ Conference stating that the Church is not sure that the agreement would result in a just solution for the border dispute. The commission later issued a statement pointing out that Kukar was speaking only for himself, and that the Catholic Church in Slovenia would remain neutral, but it remains to be seen if these expressed reservations will push some Catholic voters into the “no” camp (despite Pope Benedict XVI earlier praise of the treaty).

Finally, the opposition revealed a Croatian document showing that Slovenia had jointly informed the international community about an addendum to the agreement; the note became one of the primary subjects at an emergency session of parliament called by the opposition. The addendum, drafted by Croatia, states that Croatia does not consent to Slovenia’s territorial contact with international waters. If true, Slovenia’s implied acceptance of Croatia’s addendum – a »hidden proviso« in the words of opposition leader Janez Janša -- would have been very damaging to the government and would have drastically reduced the possibility of a “yes” vote. However, both Sweden and the US, who had received the addendum, quickly issued statements that Croatia’s addendum was in fact a unilateral addition and did not imply any Slovenian consent. The proponents of the arbitrage agreement breathed a sigh of relief, but the sense of uncertainty generated by this episode could not have helped their argument.

As the date of the referendum approaches, the result is still very much uncertain. The political parties haven’t spent much money on this campaign; after all, referenda are commonplace in Slovenia. Yet, this time is different; the result will affect everything from Slovenia’s external border to its longterm foreign policy. This time, the stakes could hardly be higher.

POLITICS

20 years of democracy

A Time of Unity Twenty years ago the Communist Party stepped down as the sole political power and Slovenes were given the opportunity to vote. The result was the first democratically elected government, which realized their ultimate goal – independence from Yugoslavia.

T

he first government was composed by members of DEMOS (Democratic Opposition of Slovenia), politically uniting most of the organizations that had emerged in late 1980s as civil movements: Christian Democrats, Democratic Union, Social Democrat Alliance, Farmer’s Alliance and the Greens.

In April 1990 elections, DEMOS took 54% of votes and formed the first multiparty government, headed by the Christian Democrat Lojze Peterle. The coalition, therefore, combined ideologically diverse parties whose main goal was to make Slovenia independent; however, after that objective had been achieved, internal tensions became too strong, and the coalition fell apart after a no-confidence vote.

DEMOS disbanded in 1992 and its constitutive parties separately continued their political existence, although none of them remains in its original form today. The members of the first government also took very different paths: a few remaining in politics, some ending up in business or going back teaching to the university.

Reflections The occasion was marked with a few events; one of which was the celebration in Cankarjev dom, where the key speakers were the first and the current Prime Minister: Lojze Peterle and Borut Pahor. Pahor recalled that Slovenia achieved de-

mocracy and independence without being a laggard in historical terms, adding that “grandiose ideas about the future of Slovenia had not been met with immediate understanding and sympathy.” One has to realise that “at the beginning of every historical turning point are the dreams of brave and visionary individuals,” which only gradually, and often grudgingly, become an inspiration for the political and popular majority. Pahor argued that the present is just as packed with crucial decisions as 20 years ago. “We do not have the luxury of being able to precisely weigh each individual tiny action,” he said, asserting that it is time for courage and big decisions.

Lojze Peterle, who is now an MEP, recalled how DEMOS sought unity and broad consensus on key issues, such as the independence referendum. “DEMOS pursued a policy of a united, not divided Slovenia.” Peterle noted how Slovenia will overcome the crisis only if it helps shape Europe’s responses to it. “The times of defensive Slovenia are behind us.

We are now living an open, European Slovenia. But we will only be able to live it fully if we fully implement European principles and values, including about the past,” Peterle noted, adding that “...neither the return to Tito Street or to the street can help us” Peterle was referring to the renaming of a street in Ljubljana after the Communist leader Josip Broz Tito (1892–1980) and the recent student protests that escalated into violence.

...the dawn of democracy and the political advertising. DEMOS poster explaining who is on the right side. (Source: Slovenian spring website)

Photo: Tone Stojko

By Jaka Terpinc and STA

Separate ways In Stična, another ceremony was dedicated to 20 years of democratic changes and the establishment of the precursor of the Slovenian Army – a unit of thousands of armed men that was set up after the April 1990 elections within the grassroots National Protection forces to defend independence-seeking Slovenia.

At the Stična celebration, speakers took the opportunity to put the current situation in the light of the celebrated events, mostly commenting on the upcoming border treaty referendum. Pahor said the border arbitration treaty with Croatia completes the 20year cycle of building Slovenia’s statehood “...in a victorious way.”

He believes that just like 20 years ago, it is now time to be courageous, advising those who will cast their vote in the referendum not to be afraid, but to show courage and reason, adding “History will show that we were right.”

However not everyone shared his opinion. Janez Janša, defence minister in the DEMOS government, said this was the first time that Slovenia was in a situation when politics is not united on a vital issue and people are urged to vote on it in a referendum. Lojze Peterle said people were uncertain whether to support or reject the treaty, because PM Borut Pahor and ex-PM Janez Janša “...are interpreting the same agreement in a totally different way.”

The dean of the Ljubljana Faculty of Law and justice minister

in the DEMOS government, Rajko Pirnat, in contrast, emphasised that “We are deciding between two bad options.” MEP Jelko Kacin (LDS/ALDE), information minister in the DEMOS government, said Slovenia should decide whether to take a step forward by accepting the treaty.

Ivan Oman, one of the keynote speakers at Stična, a member of Slovenia’s collective presidency at the time said the DEMOS’ victory 20 years ago was the success of all Slovenians who trusted the people who were able to read the signs of that era. Oman, also a president of the predecessor of the People’s Party (SLS), touched on the present lack of unity among people and politicians, but stressed, “God forbid that we should be again as united as we were in 1991.”

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10 POLITICS

Interview: Dorijan Maršič, ITF

Back to Mine Everybody agrees that it is Slovenia’s most successful foreign policy project. In its 12 years of existence, the International Trust Fund for Demining and Mine Victims Assistance (ITF) has worked hard on helping countries in South East Europe clear their lands of mines. The Fund has also expanded its activities beyond the region.

ITF’s director Dorijan Maršič explains the reasons behind the Fund’s incredible success and tells us about its plans for the future.

By Maja Dragović some countries have significantly cut their budgets for international development aid. In addition, some organisations – such as the United Nations Development Programme in Bosnia and Herzegovina, for example – that have their funds implemented through the ITF, have now completed their programmes.

The United States government has been one of your biggest supporters and it has recently committed over $12 million to the ITF for 2010. How much does its support help ITF? Without close cooperation with the US State Department and the US Congress, it would have been difficult for the ITF to achieve its outstanding results in the field of humanitarian demining action.

With more than $138 million in grants, they have enabled not only the implementation of a number of humanitarian projects, but also cooperation with many public and private donors.

Apart from the USA, who are the other supporters of ITF and what is your relationship like with your donors?

Since its establishment, the ITF has received donations from 27 countries, as well as from the United Nations, European Union, The Slovenia Times

Organization for Security and Cooperation in Europe (OSCE), other international and regional organisations and many private donors.

These donations have amounted to over $302 million. ITF is a transparent, efficient, professional and reliable organisation and therefore we have multi-donor cooperation based on mutual trust.

Last year was a difficult one for governments and businesses.

Has the world financial crisis affected the amount of donations you receive?

2009 has seen a record number of donations. The reason is the increased volume of funds from the US, who have had a desire to speed up the completion of some projects in South East Europe.

Also some grant contracts were promised before the beginning of the financial and economic crisis. We may see a reduction in donations this and next year since

How would you judge your success since being established in 1998?

In the 12 years of its existence, the ITF has implemented over 2,300 projects; it has cleaned over 100 million square metres of contaminated territories; rehabilitated 1,000 mine victims; involved over 1,000 people in programmes of psychosocial and socio-economic reintegration; trained 40,000 children and adults on mine risks; and trained 800 experts. Four South East European countries (Albania, Macedonia, Montenegro and Serbia) have been cleared of minefields. The ITF has launched a programme outside of the region and designed projects beyond the field of humanitarian demining.

These are all impressive results and we would not have been able to achieve them without the excellent enthusiastic, young team of experts and project managers that work in the organisation.

In which countries do you currently have the biggest projects and why?

Because those countries have been the most affected from mines, most funds are allocated for projects of cleaning minefields in Bosnia and Croatia. We will also focus on cleaning the areas contaminated with cluster bombs in Serbia. The biggest projects in financial terms are currently in Gerdec in Albania where our team is clearing up the effects of the explosion of the ammunition and weapons depot.

Apart from clearing the mines, you also include programmes that help mine victims. What do these programmes consist of?

ITF funded a number of rehabilitation programmes for mine victims that were then implemented by nongovernmental organisations or public institutions. Mine injuries have negative and longterm multiplier effects – inability to be self-reliant, impact on other family members of mine victims, burden to the health system. It is most important to rehabilitate survivors [most are treated at the University Rehabilitation Institute in Soča] and to ensure their socio-economic reintegration.

Currently, the most prominent project in this area is the rehabilitation of children from Gaza that was initiated and supported by the Slovenian President dr.

Danilo Türk.

Your plan is to see mine-affected countries of South-Eastern

Even though most of the mines have been cleared in Western Balkans, much more work is yet to be done

POLITICS 11 Europe (SEE) free from the effect of mines and unexploded ordnance by end of 2010. Is this achievable?

It is the obligation of the Ottawa Convention signatories and their national programmes [to achieve this]. The biggest progress has been made in Albania, which has been declared a mine-free country. Serbia, Montenegro and Macedonia only have to declare this formally, while Bosnia-Herzegovina and Croatia have asked for an extension until 2019. Whether that happens depends largely on the two countries, their national strategies and programmes, the presence of the international donor community and setting effective priorities.

Are you planning any projects in new areas?

A new strategy for 2009-2015 provides for expansion of activities outside the SEE region. We are now present in the countries of the South Caucasus and Central Asia, where we are working closely with the OSCE in particular in establishing the Centre for Mine Action Coordination (CAMACC) based on the regional organisation in South East Europe (SEEMACC). ITF is also developing new projects for the Middle East, Colombia, Afghanistan and Vietnam.

After 12 years in the countries of former Yugoslavia, ITF is expanding its activites to other parts of the world

What are your plans for the future and what should Slovenia’s role be within these plans?

The ITF is going through intensive preparations to continue projects in other areas of the conventional weapons destruction (CWD) – stockpiles of ammunition, small arms and light weap-

ons, and cluster munitions. In the future, this will represent a growing share of the total volume of our work. In regards to this we are already in talks with some major donors.

Slovenia remains an important factor in the successful operation of the ITF. Financial support

through the Ministry of Defence and help from the Ministry of Foreign Affairs through its diplomatic network enables us to successfully fulfil our mission. Slovenia needs to strengthen this support if it wants the ITF to continue to be one of its most successful foreign policy projects.

New service to Barcelona On 25 June Spanish low-cost carrier Vueling will land at Ljubljana Jože Pučnik Airport for the first time. Vueling will fly between Barcelona and Slovenia twice a week.

Vueling plans to operate an Airbus A320 between Ljubljana and Barcelona El Prat Airport twice weekly (Tuesday and Friday) from 25 June to 10 September. One-way tickets are currently available from EUR 60, including all taxes. They can be booked online at www.vueling.com or via travel agents. There is great demand for services to the Iberian Peninsula and Aerodrom Ljubljana expects a good seat occupancy rate on the flights. The new carrier is expected to carry slightly over 5,000 passengers between Ljubljana and Barcelona over the summer.

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Vueling is the eigth scheduled carrier (including two low-cost carriers) to form part of the network of direct services from Ljubljana Jože Pučnik Airport.

Scheduled services connect Ljubljana to 28 cities throughout Europe among others, Helsinki, Dublin, Manchester, Madrid and Stockholm. These also include all major European hubs, with London, Paris and Frankfurt the most important destinations in terms of passenger numbers. Scheduled services are complemented by a wide range of charter flights, serving approximately 30 different destinations in the summer months. The most popular charter destinations are the Greek islands, Egypt and Djerba, while two interesting new destinations this summer are Enfidha (Tunisia) and Catania (Sicily).

Figures for the number of passengers handled indicate that the fall in traffic resulting from the recession has halted. In the first quarter of this year we handled 240,588 passengers, which is 0.6% more than in the same period last year. Air cargo traffic is showing satisfactory growth and was up 15% in the first quarter. Growth is also encouraging in the general aviation sector, where passenger numbers were up 14% on the same period last year.

www.lju-airport.si

12

Economy

FACTS AND FIGURES

source: STA, Slovenian Press Agency

Pivovarna Laško Plans Extensive Restructuring A new five-year business strategy will see the group around brewer Pivovarna Lasko restructured, its chief executive has announced.

Dušan Zorko said the group will now be managed as a single company. At present the group comprises Pivovarna Laško as the parent company and brewer Pivovarna Union and soft-drinks makers Radenska and Vital as affiliates. Zorko says the new structure will be the foundation for a new business model, which aims to increase annual sales to EUR 355m and net profit to EUR 60m by 2014.

Branko Žibret of international consultancy A.T. Kearney explained that Pivovarna Laško had to be transformed into a single company in order to achieve the planned growth and synergies.

According to him, the first step is the establishment of a concern, the second step is a merger into a single company and the third step is implementation of the new business model and reorganisation of the group.

Pivovarna Laško also intends to improve its existing financial situation – which is a consequence of EUR 200m in write-downs and impairments – by extending loans, selling off assets, including stakes in publishers Večer and Delo, and launching a possible capital injection, Zorko said.

He added that audits of some of the deals made by former CEO Boško Šrot were being carried out. “We will do everything in our power to protect our interests. We will file compensation claims if necessary,” he said.

He noted that claims towards financial firms Center Naložbe and Infond Holding, which used to be controlled by Šrot, stood at EUR 110m and that dodgy deals by Šrot had cost the group around EUR 160m.

The group’s growth strategy envisages a further expansion of its presence on existing and new markets. Growth of sales in the beer segment by 2014 is expected to reach 5 percent, and in the

water and non-alcoholic beverages segment 7 percent.

In the first quarter of this year Laško saw its net loss more than treble to EUR 3.4m on sales that plunged 15.2 percent year-on-year to EUR 62.8m.

Real estate

Retail

Retail

Banks

Building Permits for Flats Down 16%

EC Investigating Elan Capital Injections

Mercator Buying Merkur Stores

EBRD to Support Slovenia’s Leading Bank and Insurer

Source: SURS

Building permits for apartments 1500 1000 500 0

Q109 Q209 Q309 Q409 Q110

The number of flats for which builders requested permits fell by 16 percent year-on-year in the first quarter of 2010. Builders requested permits to construct 1,326 flats in the first quarter of 2010. The total number of permits for constructing residential and non-residential buildings was at 905, which is 23 percent less than in the same period last year. The total area of all planned buildings for which permits were requested from January to March amounted to 441,000 square metres, a 10 percent decrease on the year before.

The Slovenia Times

The European Commission has launched an investigation into a possible breach of EU state aid rules by Slovenia. The Commission is to investigate EUR 20m in capital injections to two subsidiaries of the state-owned Elan group. Slovenian authorities have argued that injections into ski producer Elan and yacht builder Elan Marine did not constitute state aid. “At this stage, the Commission has doubts as to the qualification of the measures, but will examine whether a private investor would have accepted to carry out these capital injections under the same conditions,” a press release by the Commission reads. Competition Commissioner Joaquin Almunia explained that the Commission needed to “ascertain that Elan has not received an unfair economic advantage over its competitors through the capital injection it received”. Elan and Elan Marine received capital injections totalling around EUR 20m in 2007 and 2008. The injections, coming at a difficult time for both companies, originated from several state-owned companies. The measures were not reported to the Commission, which received a complaint from a competitor, alleging prohibited state aid.

Slovenia’s leading retailer plans to buy a number of technical goods stores both in Slovenia and abroad.

Mercator envisages buying all of Merkur’s technical goods stores according to a recently issued letter of intent. The price and the details of the purchase remain confidential, but Mercator hinted it would buy the stores with a combination of cash and newly-issued stock.

Mercator is expected to complete due diligence by the end of June.

The European Bank for Reconstruction and Development (EBRD) is to support Slovenia’s leading bank and insurer, it has been announced. Finance Minister Franc Križanič, said that the EBRD, which had been helping banks in SE Europe during crisis, would enter the NLB bank and insurer Zavarovalnica Triglav. The EBRD initially announced a retreat from Slovenia by the end of 2010, but has changed its mind to stay on until 2013, Križanič said.

“The EBRD plans to stay in Slovenia and support different development projects in the process of restructuring.” He added that talks on NLB and Triglav were in the final phase.

“I expect this cooperation to expand, not only towards NLB and Triglav but possibly wider,” he said, hinting at insurer Slovenica and NKBM, the country’s second largest bank. The EBRD used to have a five percent stake in NLB, but sold it to investment firm Poteza Naložbe in July 2008.

Banks

Subscription Starts for NLB Bond Issue Subscription has started for a seven-year bond issued by Slovenia’s largest bank. NLB’s subordinated bond carries a fixed annual interest rate of 6.25 percent. Subscription for the EUR 100m issue is open until 24 June. The bond will be listed on the Ljubljana Stock Exchange. Interest will be paid annually, on 24 May for the current year, and the principal is due on 24 May 2017. NLB will use the money to boost its capital adequacy.

13 Motorways

IFC Confirms Capital DARS to Pay Off Its Injection for Gorenje Debt in 50 Years The International Finance Corporation (IFC) has confirmed it is to take part in raising fresh capital for household appliance maker Gorenje. The IFC envisages an investment of up to EUR 25m in the first round of capital increase.

The Corporation, which operates under the auspices of the World Bank, will also provide EUR 50m for restructuring of Gorenje’s long-term debt and organise a EUR 100m credit line from banks, Gorenje said last month. Gorenje plans to raise just under EUR 25m in a first step with the issue of 2.25 million of new shares to IFC. In autumn a further capital increase of EUR 25 million in which all shareholders may participate, is planned.

It has been reported that Gorenje plans to acquire Swedish rival Asko, using part of the money from IFC. The purchase of Asko would be the third major foreign acquisition for Gorenje, which bought Czech rival Mora Moravia in 2004 and Dutch appliance maker Atag in late 2008.

Gorenje posted a net profit of EUR 517,000 for the first quarter of 2010, up from a loss of EUR 14.7m a year ago. Sales were up 1.5 percent to EUR 291m.

The chairman of Slovenia’s staterun motorway company has estimated it will take 50 years for the company to pay off its massive debts. Mateja Duhovnik says dearer motorway stickers and a 30 percent hike in tolls for lorries will enable DARS to pay off its debt in 2010 and 2011, but not entirely in 2012 and 2013. She predicts 2014 will be disastrous. Under the current plan, DARS would settle its debts by 2037, but it all depends on future tolls, investment, traffic density, taxes according to its chairman. “My estimate considering the many variables is that the year 2060 is realistic”, Duhovnik said. The company currently owes around EUR 4bn.

Energy

Petrol’s Q1 Sales up 9%

Law

Profit Sharing Will Be Obligatory in Certain Cases The National Assembly has passed changes to the act on profit sharing, making distribution of a portion of profits to employees mandatory in certain cases. Under the new law, procedures are being simplified and tax breaks introduced for companies as well as employees.

The entire payment will be regarded as the company’s outlay in the calculation of corporate income tax and companies will no longer have to pay welfare contributions for the share of profit they pay out to workers. Employees receiving a share of profit will have 50 percent of the payment included in their tax base.

The upper chamber has vetoed the law Now the lower chamber will have to pass the act in a revote with a majority of all votes.

Energy group Petrol has reported an above-expected increase in net sales for the first quarter of 2010.

The group registered net sales of EUR 607m for the quarter, an increase of nine percent year-onyear and six percent above plans.

Net profit amounted to 9m, up from a EUR 5.6m loss a year ago.

The results were reported after

the company’s supervisory board confirmed a strategy until 2014 which sees Petrol sales increasing by 37 percent over this year’s target to EUR 3.5bn in 2014. Profit before income tax, depreciation and amortisation is projected to rise 73 percent by 2014 to EUR 167m and net profit by 69 percent to EUR 73.1m. A total of EUR 428m is to be earmarked for investments over the five-year period, chairman Aleksander Svetelšek told the press. The goal is to make Petrol a regional multinational.

Tourism

Economy

Government to Form Strategic Council for Tourism

GDP Growth for Slovenia in 2010 Downgraded

The Slovenian government is to set up a strategic council for tourism.

The council, which will be headed

by Prime Minister Borut Pahor and Economy Minister Matej Lahovnik, is to set goals for the industry. Pahor promised that short-, mid- and longterm goals and measures needed to boost tourism would be ready by the summer holiday season. Among specific steps to be taken, the Prime Minister identified a need to decide on the construction of golf courses and other tourism projects awaiting implementation. The government will also have to decide whether those projects will have a domestic or a foreign investor, Pahor said. The Prime Minister says he believes tourism has the potential to become a success story for Slovenia, considering its many effects on the economy.

However, he said action from the government would be necessary to make this a reality. The government will also draw up a national tourism development strategy for 2012-2016.

The European Bank for Reconstruction and Development (EBRD) has downgraded its estimate of Slovenia’s economic growth for 2010. The reason for the downgrade from 1.9 percent to 1.3 percent is, the bank says, the failure to implement reforms in the financial sector and the high level of state intervention in the economy. While noting that Slovenia’s GDP shrank by 7.8 percent last year, the EBRD predicted that growth would gradually return. It predicts a 2.2 percent growth in 2011. The forecast for the region, meanwhile, was upgraded from 3.3 to 3.7 percent. But the bank warned recovery in the region remains uncertain and slow.

Contribution to GDP volume growth compared to the same quarter the previous year percentage points 0

Q408

Source: SURS

Retail

Q409

-2 -4

Cartels

-6

Ski-Lift Operators Found Guilty of Price Fixing

-8 -10

Insurance

Triglav Triples PreTax Profit The Competition Protection Office (CPO) has found Slovenian ski-lift operators guilty of price fixing. The anti-trust office launched infringement proceedings against six Slovenian ski-lift operators and the Association of Slovenian Ski-Lift Operators in October 2009. Daily Dnevnik identified the operators as RTC Krvavec, Unior Kovaška industrija, ATC Kanin Bovec, Hotel Cerkno, SC Pohorje and RTC Žičnice Kranjska Gora. CPO boss Jani Soršak said that the oldest evidence of collusion dates back ten years. He expects the operators to lodge complaints. According to Dnevnik, the fine could reach up to 10 percent of the ski-lift operators’ annual revenues.

Slovenia’s biggest insurer has almost tripled its pre-tax profit in the first quarter of 2010 compared to the same period last year.

Zavarovalnica Triglav posted a pretax profit of EUR 14.7m in the first quarter of 2010, 291 percent more than in the same period last year, chief supervisor Borut Jamnik has reported. Gross premium revenues in the first three months stood at EUR 212.2m, while gross damage payouts amounted to EUR 99.4m.

According to Jamnik, the successful quarter is a consequence of consistency in the implementation of Triglav’s business policy, improvement of the situation on financial markets, and optimism returning on stock markets.

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Translation, Interpreting, Proofreading Providing quality only!

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Greek crisis

Preventing Disaster or Courting it?

Photo: Dreamstime

14 ECONOMY

Greek financial crisis caused riots across the country

With Greece’s economy on the brink of disaster, its eurozone partners are making efforts to help. Many have now joined together to create a financial rescue package for the country. The club includes Slovenia, which will loan EUR 387m to its fellow South European nation. But some Slovenians fear there is risk of falling into the same state as Greece.

By Maja Dragović

G

reece’s economy is set to receive a massive influx of cash. In the hope of saving the struggling European Union nation, the International Monetary Fund is loaning it EUR 30bn.

Fellow eurozone governments, meanwhile, are together stumping up some EUR 80bn.

Borut Pahor’s government has shown a resolute determination to be part of the rescue pack-

age, even if it seems less a matter of conviction than of expediency. Pahor has said that helping Greece is critical to preserving the stability of the eurozone. And for Slovenia, preserving that zone is of crucial importance – it contains the country’s key export markets; the destabilisation of which would hit a small and open economy like Slovenia’s particularly hard.

Government gross debt (Slovenia) in EUR ‘000 000 (millions) Source: Eurosta

14000

12000

10000

8000

6000 2001

The Slovenia Times

2009

So Slovenia is to loan EUR 387m to Greece over three years. Part of the money is to be secured from EUR 1.8bn in treasury deposits in Slovenian banks, meaning that new borrowing in financial markets is unlikely. Slovenia’s finance minister Franc Križanič has argued that the loan will actually benefit the government purse since Slovenia will pay less interest on the acquired money than the interest it will require Greece to pay on it. He predicts a difference of about three percent.

Kiss the money goodbye But sceptics warn Greece will never be able to pay the loan back.

Jože Mencinger, an economist who teaches at the Ljubljana Law Faculty, points out that for Greece to cover the debt or at least make the interest payments: “the country would need a 10 percent economic growth and a primary budget surplus. The first thing is not probable, while the same holds for the second thing, which is not even planned.”

Mencinger’s fellow economist Maks Tajnikar agrees. He says

that “we will surely not see the money after seven years”. Leader of the opposition Democrats Janez Janša also sees no possibility of Greece returning the loan and argues that Greece’s public finance policy has seriously undermined its credibility.

Grey area Whether the loan will be returned plays into another real fear around the whole situation: could Slovenia be following Greece down the path to economic ruin?

Some of Greece’s problems, particularly the strength of its unregulated so called “grey” economy, are scarily similar to the issues that plague Slovenia. Foreign researchers estimate that Slovenia’s grey economy already amounts to EUR 10bn – 27 percent of the country’s Gross Domestic Product (GDP) – and there are fears that the economic crisis might see its scale grow yet further. Of European nations, only Croatia has a worse figure (34 percent). Compare the figure to Austria’s mere nine percent and the sheer scale of the problem becomes fully evident.

ECONOMY 15 Photo: BOBO

Fixing the fiscal policy There are also warnings that fiscal policy needs to be put in order. While Boštjan Vasle, head of the Institute for Macroeconomic Analysis and Development (IMAD), believes that the chance of Slovenia replicating the Greek situation is minimal he does say consolidation of public finances in the country is now a necessity.

Mitja Gaspari, the European Affairs and Development Minister, has acknowledged that appropriate fiscal policy, changes to labour market rules and structural adjustments including pension and healthcare reforms must be made.

“It is true that we are in a very different situation than some of the countries in major trouble now,” he says. “We would however not be so far away if we forgot that we have to carry out these reforms soon.”

The budget – to cut or what to cut?

But arguably the biggest issue with Slovenia’s current economic situation is debt. While the share of GDP accounted for by debt has remained relatively low thanks to a good pre-crisis starting point, the fact remains that last year’s increase was among the biggest in the EU – from 22.6 percent of GDP in 2008 to 35.9 percent in 2009.

It is a long way from Greece’s debt level, which stood at a staggering 115 percent of GDP in 2009.

But it’s still a figure the Slovenian government would like to cut. To this end, Pahor announced a sup-

Who lends what to Greece International EUR 30 billion Monetary Fund Eurozone EUR 80bn members Germany EUR 22.4bn

Mitja Gaspari believes Slovenia needs to consolidate its public finances to avoid Greek scenario

plementary budget, to be introduced by the end of the summer.

Making the announcement he warned Slovenians that: “This will be a very deep cut. I would not like to speak about numbers, but sacrifices in the individual items of the budget will be great.”

It seems the scale of the necessary cuts took even Pahor by surprise. For a few days later when guidelines were adopted for drafting the supplementary budget, the Prime Minister announced his government had decided to keep the budget deficit to just under five percent of GDP. Any greater reduction, he said, would need drastic cuts in expenditure.

The bulk of the EUR 500m in savings identified in the guidelines are to be made by cutting investments, a move which has drawn criticism from those who believe the focus should be on reducing government spending on the public sector.

Setting up for the future While the Slovenian government focuses on avoiding the problems that have befallen Greece, the European Union is working on ensuring that any country that does encounter such problems will have instant support. It says its newly created joint rescue scheme will enable a clear, determined and quick response from European countries – especially EU members – to a potential new financial crisis.

Franc Križanič has sung the praises of the scheme – which envisages a contribution of up to EUR 2.851bn on the part of Slovenia, or EUR 3.138bn if the aid to Greece is included – saying it represents the next step in the stabilisation of the European financial system.

He must also be hoping it represents a safety net which Slovenia will never have to use.

While the Slovenian government focuses on avoiding the problems that have befallen Greece, the European Union is working on ensuring that any country that does encounter such problems will have instant support.

France EUR 16.8bn Italy EUR 14.7bn Spain EUR 9.8bn Netherlands EUR 4.7bn Belgium EUR 2.9bn Austria EUR 2.3bn Portugal EUR 2.1bn Finland EUR 1.5bn Ireland EUR 1.3bn Slovakia EUR 816 million Slovenia EUR 387 Luxembourg EUR 208m Cyprus EUR 160m Malta EUR 72m June 2010

16 ECONOMY

OECD membership

Was it Worth it?

After a fourteen year process, Slovenia is finally a member of the Organisation for Economic Cooperation and Development (OECD). But can membership yield the benefits promised for so long? Or has the country merely joined an out of touch talking shop?

By Claire Read

I

t was during a May 27 ceremony in Paris that Slovenia’s newly gained membership of the Organisation for Economic Cooperation and Development (OECD) was formally celebrated. Note the word “celebrated” – the ceremony did not confirm membership.

Nor did the signing of the accession treaty in Ljubljana on 1 June.

Formally speaking, the country will only be a member once this treaty has been ratified and once the OECD has adopted a relevant resolution to extend membership.

It may sound like a very lengthy confirmation procedure. But compare it to the process Slovenia went through to gain membership in the first place and it looks positively speedy. The country first applied to join the OECD in 1996. The accession process alone has taken almost three years. In that period, Slovenia’s readiness for membership was scrutinised by 18 OECD committees and almost 160 legislative changes had to be made to ensure compliance with membership requirements.

A quarrel over one of the last of these – changes to the ownership of assets held by the state-run Pension Management Fund and Restitution Fund – almost saw the eleven year process scuppered at the eleventh hour.

Sigh of relief for a tough sell So Slovenia’s leaders might be forgiven for breathing a sigh of relief when the ratified membership treaty is finally deposited with the French government. It will mark the end not only of the application process but also of an enormous and time consuming political effort – from both Slovenia’s current leaders and from their predecessors. If there is one issue which has united Slovenia’s politicians over the past decade, it is the value of OECD membership. They have been backed up by some of the country’s most prominent economists. Indeed, Bogomor Kovač of the Ljubljana Faculty of Economics has declared OECD membership will outweigh the benefits of the country’s membership of NATO. The Slovenia Times

The long-awaited membership to OECD has finally been sealed in Paris last month

NATO, which Slovenia joined in 2004, was an easy sell. Most citizens immediately understood what the organisation was and how the country would benefit from membership. In contrast, it has been a challenge to communicating the nature and value of OECD. Just what, many have asked, does the OECD do?

The answer to the question depends on who you ask. It’s a point acknowledged by the organisation itself, which has said it’s regarded by some as a think tank, by others as a monitoring agency and by others still as an unacademic university. Its own description of its work does not entirely clear the issue up – it declares itself to be “an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy.”

What have you done for me lately?

Arguably the simplest way to describe the organisation is as a club of industrialised nations.

Through the OECD, these countries come together to discuss public policy and share ideas. The discussion is often guided by the vast quantity of statistics the organisation produces, on everything from education to uptake

of information technology. From discussion and analysis, recommendations are made on the best courses of action in specific policy areas. Some ultimately become legally binding.

Essentially, Slovenia’s membership of the OECD will give the country’s leaders instant access to a massive pool of information and knowledge. The organisation is able to offer guidance on how to reach the highest standards in business, finance and corporate governance as well as in broader areas such as the social sector and environment.

And it is rigorous guidance, based on the knowledge the organisation has accumulated in the half century it has existed.

Slovenia has already adopted much of this guidance to gain membership. But it is a process that will be ongoing. While OECD Secretary General Angel Gurria says the country’s accession process has “delivered real policy changes and reform” – specifically efforts to combat corruption, protect intellectual property rights and ensure high standards of corporate governance – he adds that “the transformational process continues.”

A prestigious group In the meantime, Slovenia’s leaders hope membership of the

OECD will serve as another sign the country has arrived on the world stage. After all, the OECD is a prestigious club. It is estimated that Slovenia will pay at least EUR 2.4m a year to be a member.

And as the country’s long battle to gain membership has proved, they don’t just let anyone in.

Some argue that is precisely the problem. Over the years the organisation has built up a reputation as a “rich man’s club” centred solely on the traditional, high-GDP economic powerhouses of Europe. Admitting former Communist countries such as Slovenia – and farer-flung nations such as Mexico, Chile and South Korea – has gone some way to combating this image. But many are urging the organisation to make more determined efforts to include newer power economies and to look at measures of success beyond GDP. Doubts also linger over the OECD’s effectiveness in the current world climate. ZSSS, Slovenia’s largest association of trade unions, has for instance questioned why the organisation failed to promote fiscal transparency in Greece.

The club defender Its proponents dismiss suggestions that the OECD is no longer relevant or that it is out of touch.

According to Michelle Bachelet, President of Chile – another country which has recently become a member – the organisation should not be referred to as a club of rich countries but instead as “a club of countries that promote and foster best practices.”

It is a sentiment echoed by OECD Secretary General Guirra who argues that Slovenia’s membership, as well as the simultaneous accession of Estonia and, controversially, Israel: “confirms our global vocation as the group of countries that searches for answers to the global challenges and establishes standards in policy fields such as environment, trade, innovation or social issues.”

Just as Slovenia’s leaders must have said many times over the past fourteen years: time will tell.

Less emissions. More driving pleasure.

18 ECONOMY

Ljubljana Stock Exchange

Taking Stock The first five months of 2010 have seen most economic indicators in Slovenia pointing to the beginning of the end of the financial crisis. There has, however, been one notable exception: the Ljubljana Stock Exchange.

With regular and heavy losses, it seems that the Exchange is not yet free of the effects of local and global economic challenges.

By Aleš Šinkovec

W

hen the Ljubljana Stock Exc h a nge h it 4, 50 0 points in October 2009 there seemed to be reason for optimism. Could it be that the country’s largest stock exchange was finally signalling a recovery? It was an optimism that proved to be shortlived. By the end of the year, the Exchange had lost 500 points and was back around the 4,000 mark.

The first months of 2010 have seen a similar story – brief gains followed by fairly significant losses. As the sixth month of 2010 arrived the Exchange was hovering at around 3,600 points or, to look at it another way, at a level 1,000 points below that which it reached in October 2009 and almost 600 points lower than at the beginning of the year.

The negative performance of the Slovenian stock market cannot be solely blamed on the international scene, however. The decline in the nation’s construction industry has also led to many stocks losing value. The international effect Explaining the ongoing fluctuaThat decline has not tions is a case of looking at factors been limited to stock in both within and beyond Slovenia’s construction companies borders. Arguably the most significant falls into the latter category – the increasing globalisation of the world economy. After all, it is the world which has been facing an economic downturn. Stock exchanges in the United States of

The Slovenia Times

Stag-nation Many fear the most negative scenario is also the most likely. Levels of debt have never been higher.

Consumer spending still hasn’t re-

turned to pre-crisis levels. And although the flow of credit to banks has largely been restored, lending to small and medium sized businesses hasn’t equally. This is very important for the currency markets and international creditors. If the US decided to actively change the value of its currency through inflation, it would heavily impact China as they are the single largest foreign creditor. China is also a large creditor to the states of the eurozone. For European and Slovenian stock markets to remain stable, the US must not go into a period of stagflation.

The domestic influence The negative performance of the Slovenian stock market cannot be solely blamed on the international scene, however. The decline in the nation’s construction industry has also led to many stocks losing value. That decline has not been limited to stock in construction companies. Take the case of Merkur.

The Slovenian market leader in both DIY and industrial construction products has been hit hard by the downturn. Such turmoil should finally allow Mercator to take over the company after years of attempts and planning. But ironically this same market volatility and the speculative nature of such a deal has led Mercator’s stock price to drop.

And so Slovenia is left to wait for a final and lasting recovery in its largest stock exchange. How long that wait will be remains unclear.

Slovenian blue chip index

Source: Ljubljana Stock Exchange

Ljubljana Stock Exchange has been declining since the start of 2010

America experienced considerable drops in 2007 and 2008 with other nations seeing the same sort of busts six to 12 months later. It is therefore safe, although perhaps not especially comforting, to assume that some of the negative trends on the Slovenian equities market are reflecting international problems.

Predicting how and when the domestic stock market will improve might therefore be a case of studying the international situation and, more specifically, the situation in the world’s economic powerhouse. Speaking last month at the 27th annual Ljubljana Stock Exchange Conference, Professor James C Ellert did exactly that. Ellert, a visiting professor at IEDC Bled School of Management as well as Emeritus professor and former Dean of Faculty at The International Institute for Management Development in Lausanne, Switzerland, gave an insight into the current state of the US equities market.

He argued that there are three possible scenarios for the market: the creation of a fundamental base, leading to efficient pricing and normal returns; the crisis will extend into a long bear market, with many false peaks; and, the most negative of all, an extended period of stagflation.

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20 ECONOMY

Interview: Tina Kumelj

Marketing for the 21st Century As digital communication becomes ever more prominent in everyday life, there are more ways than ever for companies to communicate with their potential clients. But according to Tina Kumelj, marketing manager at Ljubljana Dairies, the basics of the marketing process remain the same – identifying and understanding customer needs and then meeting them. It’s an approach which last month saw her named Slovenia’s Marketing Manager of the Year.

By Maja Dragović marketing activities and understanding of consumer psychology, and the importance of brands.

Marketing teams frequently possess few relevant skills and expertise in marketing and market communications, because the maxim “everyone can do it” often prevails. But that maxim results in marketing departments with unqualified staff.

Why did you accept the nomination for Manager of the Year?

With this nomination I realised that my work was being recognised by fellow professionals in the field, particularly in view of several successful marketing projects we have completed recently. Over the last three years, Ljubljana Dairies (LM) has initiated several substantial changes in brand management while at the same time managing to successfully introduce new products with higher added value (Ego Slim & Vital, Smuthie, lactose-free products). This has proved us right in focusing on customers and their needs. As a result of marketing activities, the reputation of LM has grown and, crucially, our customers are satisfied. Positive signals from the market demonstrate that we are running our projects professionally. Therefore I decided to formally enter the competition.

What are the major obstacles you are facing as marketing manager?

LM is a big system with rather fixed professional and interpersonal patterns which are remnants The Slovenia Times

of another time. Often this means significant time-wasting on internal affairs. We are running several internal projects (workshops and other forms of education, various forms of internal communications) promoting the vision, mission and values of the company. In this way we will be better equipped to actively develop marketing philosophy and adapt the organisational culture to achieve better results.

I am perhaps slightly more sensitive to this aspect of functioning in a company, having come to LM from an advertising agency where swift response, self-initiative and efficient problem solving were the norm. This is always an issue within large organisation systems.

What are the most significant advantages you experience at your workplace?

I consider myself lucky that the LM leadership under Ms Cvetana Rijavec understands the significance of marketing the company, its brands, of developing a profound understanding of consumer behaviour, and of detecting and creating new trends and seeking alternative approaches.

Supportive leadership facilitates a stimulating work environment, particularly when it encourages creativity, new approaches and testing new ideas – all essential to achieving results.

What is your most important achievement in this position and in your career?

I hope the greatest achievements are yet to come. However, having started my career as a market researcher becoming marketing manager at one of the biggest Slovenian companies is not an insignificant achievement. I have experienced the three crucial aspects of the marketing business: research, advertising and marketing. Now I am able to see things in a broader perspective and more easily understand how the three aspects are connected.

How would you assess the situation in marketing business in Slovenian enterprises?

Marketing in Slovenia often comes down to market communications and fails to see the entire marketing spectre. Personally, I think there is room to improve

What is the future of marketing in Slovenia and the most developed countries?

The fight to win consumers will get tougher. The world is becoming oversaturated by stimuli, there is an abundance of similar products and the human cognitive system is simply unable to process all the information. Already customers have started developing defence mechanisms to filter out unwanted messages and stimuli.

Digital development is proceeding at an ever faster pace and the generations brought up in the time of letters, postcards and landline phones are hardly coping with it.

Digital natives on the other hand experience the world radically differently, on both the cognitive and emotional level. And we are still functioning within decadesold approaches. New technologies increasingly penetrate the private space and consequentially consumers will start to learn how to mount up a defence system and withdraw.

Therefore I believe that adequate understanding of consumers, their cognition, motivation, emotion and behaviour will become even more important. Yet, regardless of the rapid digital development, basic consumer needs will always remain the same (food, safety, love, self-realisation). The question is, however, how these needs will be catered to. At some point, consumerism will have to become much more rational and sustainable.

And marketing will have to adapt to these new conditions.

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8-10 june 2010, milan - italy WHERE THE REAL ESTATE COMMUNITY COMES TOGETHER TO: > consolidate and start up relations > present its professionality and own projects > confront with the trends of the market > attract investments

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ʧ˚ˊˋ˄ˋ˖ˋˑː ʱˈˈˋ˅ˇʜ ʩˇʎʨˋʎ ʵʎ˒ʎʣʎ ʸˋ˃ˎˇ ʣ˅ˊˋˎˎˇ ʲ˃˒˃ ʕʒ ʐ ʔʒʓʖʛ ʯˋˎ˃ːˑ ʊʫ˖˃ˎ˛ʋ ʶ ʍʕʛ ʒʔ ʕʓʛʓʓʛʓʓ ʨ ʍʕʛ ʒʔ ʕʓʛʓʓʛʔʒ ˋ˖˃ˎˋ˃˔ˇ˃ˎˇ˕˖˃˖ˇʢˉˇ˕˖ˋˑːˇˈˋˇ˔ˇʎ˅ˑˏ

22 ECONOMY

Real estate

The Lighter Shade of Crisis It is no longer news that the real estate sector has been hit hard by the financial downturn. Though the sector may be worse off financially, the downturn is having at least one positive effect – it is forcing all involved in the industry to be more creative with less money. It’s a trend which was very much apparent at the Real Vienna event last month.

Text by Maja Dragović, photo by Maja Kaplan

F

rom the fair organisers to its participants and visitors, all involved in Real Vienna this year were acclimatising to the new economic circumstances. Prior to the downturn, the organisers already had a clear sense on who they wanted to attract to the fair with a particular focus on Central and South East European markets. This year they went further by targeting specific groups within those markets. The absence of real estate agencies was visible, and some might say, a positive sign. It suggests that some who were in the market to make a quick buck are now out of it. Instead the projects displayed at the fair were those with quality, durability and price competitiveness.

Some banks, such as Raiffeisen and Erste, were also attending the fair which definitely sent a positive message to the sector. Law firms like CMS were there too, as well as a number of consultancies such as Colliers International and Kohl & Partner Tourism Consultancy International.

Playing to Slovenia’s strengths Most importantly for Slovenia, however, was that the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI) and The Slovenia Times were both on hand to promote a vast number of opportunities in the country. JAPTI, attending the fair for the fourth

fact that rather than competing, they were cooperating.

“And what came out in the end was that Slovenia can offer a lot to others due to its experience and standing in the world.”

Time for fun

Panelists agreed that countries of SEE Europe need to cooperate, especially on infrastructure projects, to attract more FDI

time, also brought along five exhibitors that included Euroinvest; Tridana; Imos, Pohorska livada; and Property d.o.o.

According to Irena Kržan, marketing manager at The Slovenia Times, it was clear that investors attending Real Vienna were not only looking for specific opportunities within the real estate but wanted to know about countries and regions as a whole.

“This benefits Slovenia,” she argues, “since its geographical location enables it to position itself as a bridge between east and west.”

To increase the spotlight on Slovenia, both JAPTI and The Slovenia Times organised round table discussions – JAPTI on the latest investment opportunities in Pomurje region; and The Slovenia Times

Quailty projects were on display at this year’s property show in Vienna The Slovenia Times

on hot investment spots in south east Europe. The former gave an impressive outline of possibilities in Pomurje from greenfield investments, to building shopping malls. The latter discussion could have proved difficult with each representative potentially wanting to emphasise the competitive advantage his country might have over the others – the panel had members from Slovenia, Croatia, Macedonia, Vojvodina and Serbia proper – but this is far from what actually happened.

“The round table discussion on the SEE region I thought went really well”, says Kržan. “For the first time representatives from the region gathered together to talk about opportunities in their respective countries. I liked the

With heavy discussions completed, it was time to relax over Slovenian delicacies and wine from the local producer Miro, available at JAPTI’s stand. The Slovenia Times made sure there was an element of light entertainment – table football which proved to be a hit with both visitors and participants.

“I think we did a great job in attracting attention to Slovenia,” says Maja Kaplan, graphic designer at the Slovenia Times. “Everybody was really impressed with our table football – a lot of visitors told me we had the best stand at the fair.”

On the right path The overall feeling at the fair was festive – food, drinks and entertainment were all around. But this was not the highlight of the fair. The highlight was that there was an overwhelming feeling that things are settling down. That is not to say that everyone was predicting the euphoric state of the market from three years ago is on its way back. No. The feeling was that the market is now more about quality and not about quantity. And surely that has to be the right direction to take.

The Slovenia Times stand proved to be the most popular

24 FOREIGN DIRECT INVESTMENT

FDI

NEWS IN BRIEF

source: STA, Slovenian Press Agency

JAPTI

Tourism

Tourism

Agency Presents Public Call for Promotion of FDI

Four Companies Bidding for Turizem Kras

Slovenia and Serbia Slovenia Opens Tourist Office in Tokyo Seek Ways to Boost The Slovenian Tourist Board (STO) Business

Four organisations have confirmed they have submitted binding bids for Turizem Kras, the operator of the world-famous Postojna Cave.

The bidders are the Postojna company Batagel & Co; the Goriziabased financial holding KB1909, which is owned by members of the Slovenian minority in Italy; a consortium of business executives and locals from Postojna; and the Postojna Municipality. Unofficially, a group of Italian entrepreneurs has also submitted a binding bid.

Trade

Banks

Bulgarian Minister Calls for More Trade with Slovenia

SID Banka Offering New Credit Line

Source: SURS

Trade with Bulgaria in ‘000 15000 12400 9800

Export

7200 4600 2000

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2007M02

2010M02

Trade between Slovenia and Bulgarian fell significantly in 2009 the Bulgarian Economy, Energy and Tourism Minister has said.

Speaking at a business conference held in Ljubljana last month, Traycho Traykov said efforts must now be made to return to previous levels of cooperation. While State Secretary Darja Radič agreed that trade was currently too scarce, she hailed the diversity of the cooperation that does exist. Slovenian and Bulgarian companies cooperate or have interest in cooperating in telecommunications, pharmaceuticals, energy, IT, food industry, logistics, trade and services, tourism among other areas, she noted.

The Slovenia Times

SID Banka is to offer a EUR 330m credit line for small and mediumsized enterprises, environmental and infrastructure investments, and the promotion of sustainable development. The state-owned export and development bank will finance the projects from the EUR 750m it received as part of a recent bond issue and a EUR 80m loan from Kreditanstalt fuer Wiederaufbau (KfW), a German bank owned by the state and federal states. EUR 160m will be available for small and medium-sized enterprises, EUR 44m for infrastructure projects and regional development, EUR 36m for environmental and infrastructure projects and EUR 10m for innovation, said SID chairman Sibil Svilan.

Loans with maturity between two and ten years will be available through commercial banks, which will chip in 20-25 percent of the money, according to Svilan.

has opened a tourist information office in Tokyo. The opening, which took place last month, is another step in Slovenia’s attempts to increase its popularity in the increasingly important Japanese tourism market. Slovenian Ambassador to Japan Miran Skender said that without the office, Slovenia’s popularity among Japanese guests could not continue to grow at the pace of the previous years. He noted that both Japan and Asia as a whole showed a lot of potential in terms of tourism. The project implements the ministry’s concept of economic diplomacy and strengthens the role of tourism at Slovenia’s embassies around the world. The office in Tokyo is the second such office opened by the STO. In January, it opened an office in London.

Automotive industry

Iskra Avtoelektrika Withdraws From Russia A Slovenian car component manufacturer has decided to sell its stake in a Russia-based company.

Iskra Avtoelektrika said that a drop in demand in the Russian market explained its decision to sell its 50 percent stake in Pramo Iskra, a manufacturer of starters for cars.

The Šempeter pri Gorici-based company stressed it was not withdrawing from the Russian market, as a contract on development cooperation has been signed with Pramo.

Iskra Avtoelektrika will also cover Russia via its Iskra subsidiary, which is based in Belarus.

Trade with Serbia in ‘000

Source: SURS

The Public Agency for Entrepreneurship and Foreign Investments (JAPTI) has drafted a public call for the promotion of foreign direct investments (FDI) in 2010 and 2011. According to the head of JAPTI’s growth and development programme, Simona Novak, Slovenia wants to attract investment projects with added value and create 500 jobs in each of the three years following the investment period. The call is intended for investments in manufacturing, the service sector, and research and development (R&D) projects. Those eligible for state aid are Slovenian companies in which a foreign investor has at least a 10 percent stake.

Individual projects eligible for state aid will be capped at EUR 50m.

Companies have to conclude the investments within three years of signing the contract and create new jobs after three years at the very latest.

Trade

60000 50000 40000 30000 20000

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The Slovenian-Serbian economic commission has signed an agreement to boost cooperation between the two countries. The agreement, signed following a two-day meeting held in Belgrade last month, centres on boosting operations of companies in each of the two countries as well as increasing investment cooperation. Participants also agreed that Slovenia’s Agency for Entrepreneurship and Foreign Investment (JAPTI) and the Serbian Investments and Export Promotion Agency will soon sign a memorandum to boost cooperation and investment activities of companies from both countries.

Tax law

Changes to Tax Legislation Aim to Boost Growth

Healthcare

PM Supports Foreign Investment in Health Prime Minister Borut Pahor has said he does not oppose private investments in health institutions and spa tourism. He noted that foreign delegations which have visited Slovenia in recent months had hinted that they would like to invest in Slovenian health institutions. Pahor said foreigners would like to build private hospitals which would offer services at accessible prices. The investors would also bring patients from abroad. New legislation should make this possible, he added.

The National Assembly has unanimously passed amendments to three tax laws. The amendments to the income tax act, corporate income tax act and tax procedure act aim to boost the recovery of the Slovenian economy. They had all been adopted by the cabinet at the end of April. Finance Minister Franc Križanič said the amendments will increase the general tax break for investments in research and development from 20 percent to 40 percent and introduce new tax breaks for employment of people younger than 26 and older than 55. The new laws will already apply in 2010.

FOREIGN DIRECT INVESTMENT 25

BRIC focus

Russia and China; the Great Bears From the East Slovenia and Russia have always had a strong strategic relationship – the result of Slovenia’s position as the most western Slavic nation and of pre-existing trade contact during the era of Yugoslavia. Thanks to recent conferences and visits, it seems it’s a partnership set to grow even stronger. But it’s not the only eastern country with which Slovenia is trying to strengthen links.

By Maja Kaplan

The conference was an opportunity for Slovenian companies to make contacts with Russian companies, especially in energy, technology, railway transport, banking and tourism. Both Pahor and Tuerk emphasised the importance of such cooperation. »Russia is doing very well in tackling the financial and economic crisis, so it is important that Slovenia and Russia work together to overcome it«, said Pahor. “We cannot become winners on our own, but we can become winners through cooperation”. »Busi ness cooperat ion will speed up recovery from the recession, as some countries, including Russia, already record high

Global Russia Business Meeting was also an opportunity for Slovenian businesses to look for opportunities in Russia

economic growth«, commented Tuerk.

Other Slovenian dimplomats have also been working to enhance such links. In late May, Slovenian MEP Lojze Peterle travelled to Russia as the vice-president of the European Parliament EU-Russia delegation. With colleagues from the Russian Duma, the delegation discussed human rights twenty years after the fall of the Berlin Wall and the establishing of civil society in Russia.

Fine China But Russia is not the only “new” power economy with which Slovenia has been working to strengthen links. China too has been on

Trade with Russia in ‘000 EUR

the radar, with the recent opening of the Confucius Institute within the Faculty of Economics at the University of Ljubljana. The Institute, the first of its kind in Slovenia, will work to promote teaching of Chinese language of culture and to establish ties between businesses in Slovenia and China.

China is a particularly powerful nation when it comes to tourism and so work is also underway to strengthen this sector in particular. To this end, the Slavic country has joined with another – Croatia – to promote its tourist industry.

Presentations for Chinese tour operators, journalists and guests were held in Beijing and Shanghai last month. They focused spe-

cifically on destinations lying between the Croatian coastal town of Dubrovnik and the Slovenian lakeside resort of Bled, including capitals Zagreb and Ljubljana.

Slovenia and Croatia will jointly promote their tourism potentials in China and other third markets in order to rationalise costs, according to officials from the two nations.

“We are not talking only about a single joint presentation, but also about a strategy of how the two countries will present themselves jointly on remote markets,” said Marjan Hribar, the head of the Tourism Directorate at the Slovenian Economy Ministry.

Hribar is convinced that because of the strong tourism sectors in neighbouring nations, Slovenia should create a new strategy based on cooperation with them.

The head of the Slovenian Tourist Board (STO) Dimitrij Piciga said that such cooperation should help the country meet its aims for this industry. Currently, between 7 percent and 8 percent of tourists in Slovenia come from overseas but Piciga says the aim is “to reach a 15 percent share in this segment by 2020.”

It will be interesting to see just how many of those will come from the two Eastern countries which Slovenia is courting so attentively.

Trade with China in ‘000 EUR Source: SURS

60000 52400

44800 Export 37200

Source: SURS

Come together

Photo: BOBO

N

ot even a certain football result from last November is enough, it seems, to sour the longstanding relationship between Russia and Slovenia.

It is a point which was underlined last month at a two-day business conference held in Ljubljana. The Global Russia Business Meeting, organised by Swiss think tank Horasis and Slovenia’s Foreign Ministry, attracted business executives and politicians from 26 countries. Among them: Slovenian Prime Minister Borut Pahor, and Slovenian President Danilo Tuerk.

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June 2010

26 FOREIGN DIRECT INVESTMENT

Libya

Back on Track After years of modest cooperation, it seems that trade between Libya and Slovenia is finally picking up. There has been an array of developments recently. First Prime Minster Borut Pahor visited Libya back in November.

Then Slovenian construction companies won major contracts in Libya worth hundreds of millions of Euros.

And last month a high-powered Libyan delegation led by Prime Minster al-Baghdadi Ali al-Mahmudi and the Minister for Economy, Investment and Trade Muhammad Ali al-Huwayz, visited Slovenia.

Photo: BOBO

By Maja Dragović and STA gation stressed it was “interested in ways to expand trade through Koper, which has an exceptional geostrategic position”.

Some problems remain There are some issues, however, that still need to be tackled, particularly in the area of bank guarantees for Slovenian businesses in Libya. It has been reported that the Slovenian government wanted to let the state-owned bank NLB in on the action, but Libyans are reserved about a bank they do not know and which is not listed, preferring a Swiss bank or Italy’s Unicredit, in which the Libyan central bank has a stake.

Slovenian leaders are keen to resolve this issue, not least because they want to help construction workers diversify away from the housing-bust hit Slovenian market.

Recent visit to Slovenia by Libyan Prime Minister al-Baghdadi Ali al-Mahmudi was a hearty affair

L

ibya was a major market for Slovenian firms in the 1970s and 80s, but trade dried up after the North African nation was isolated by the international community following the 1988 Lockerbie plane bombing. In addition, after gaining independence, Slovenia’s main focus was establishing trade with the West.

But at the turn of the century, with the lifting of the sanctions by the United Nations in 1999 and by the United States in 2004, Libya was put back on the world map.

And trade has been flourishing.

In the case of Slovenia, trade between the two countries reached almost EUR 150m in 2008. Prime Minister Borut Pahor believes this can increase by ten times in the near future.

The economy minister Matej Lahovnik believes Libya’s large-scale infrastructure plans present an excellent opportunity for Slovenian construction companies, Ocean of opportunities On current form he may be for the engineering right. In March 2010 alone the sector, the wood- Slovenian construction company processing industry and SCT secured a EUR 330m contract all companies involved for a motorway in Bengazi while Invest won a EUR 110m in housing equipment or Neimar deal to build a housing develophousehold appliances. ment in Sirt and a EUR 40m conThe Slovenia Times

Diplomatic exchange tract for a children’s hospital in Tripoli.

The significance of these contracts for the Slovenian economy has been underlined by SCT boss Ivan Zidar: “This contract and deals associated with it are big enough to keep the entire Slovenian construction sector busy for the next five years,” he says.

Infrastructure and construction are where the main opportunities lie in Libya for Slovenian companies according to Pahor. “Libya is building a lot, building large-scale and is ready to give a chance to Slovenia,” he says.

The economy minister Matej Lahovnik agrees. He believes Libya’s large-scale infrastructure plans present an excellent opportunity for Slovenian construction companies, for the engineering sector, the woodprocessing industry and all companies involved in housing equipment or household appliances.

“I especially see many opportunities for the Port of Koper, which can become a window for the foray of the Libyan economy onto EU markets,” Lahovnik has said, explaining that the Libyan dele-

The increased activity has intensified talk of opening embassies in each country. At the meeting with Al-Mahmudi last month, Pahor suggested that given the hard times, opening embassies today needs to be restricted to countries where special reasons exist for this.

“Slovenia sees special reasons for the embassy in Tripoli – political and economic,” the prime minister said.

Al-Mahmudi added that huge steps have been taken to improve relations following Pahor’s visit to Libya in November last year. During his visit to Slovenia, agreements on cooperation were signed in the fields of transport, health care, higher education, tourism and economic cooperation. Pahor and Al-Mahmudi also hope to deepen cooperation when it comes to visa policy. Slovenia is among the EU counties pushing for a framework visa agreement between the EU and Libya.

They are all developments which promise to help Slovenian trade with Libya back to the levels of the 1970s and 1980s.

27

ECOLOGY SPECIAL

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Steadily Developing or Leaving Little for Future Generations?

For the first time, a report has been published on Slovenia’s performance on sustainable development. Its results suggest that Slovenia is on the right path. But do they accurately reflect life in the country posteconomic downturn?

By Maja Dragović June 2010

Foto: Daniel Novakovič/STA

28 ECOLOGY SPECIAL

Mojca Suvorov believes that Slovenians are becoming more aware of the impact we make on our environment

The Slovenia Times

agricultural statistics and we are well informed.”

Debt worries The economic indicators reviewed as measures of prosperity showed some cause for concern.

While household assets increased by 55 percent from 2000 to 2008, the increase was accompanied by a significant rise in both prices and national debt.

“Regarding economic data, we have data on national debt that stands at 4.2 percent which, in absolute terms, is going up,” explains Suvorov.

“In the percentage of GDP the debt was going down, but in 2009 the new data shows that the debt went up to 34 percent of GDP – a very steep increase – meaning we are not leaving a good legacy for future generations.”

On the positive side, GDP has steadily increased since 1995, alongside the average disposable income per household.

But there are some positive news in regards to the balance and moderation indicators. Funds for research and development were up 23 percent in 2008 compared to the year before. Report editor Rotija Kmet Zupančič suggested this number needs to continue to increase further and that, for the sake of a sustainable economy, more investment needs to be secured for higher education and research.

Stroke of luck The report authors acknowledge that there is a significant limitation to the document: it does not include data from 2009.

Usage of renewable sources of energy 1,000 tonnes 5500

Total usage of energy Usage of renewable energy Source: SURS

T

he Statistics Office report includes 26 indicators separated out into three key categories – prosperity, balance and moderation, and intergenerational cooperation. The indicators are diverse, looking not only at more obvious measures of “green” behaviour but also more general measures of the sustainability of the Slovenian economy.

As a result, the prosperity category looks at everything from the percentage of land occupied by organic farms to detailed economic data. The former, according to report author Mojca Suvorov, shows mixed results. On the one hand, six percent of land was occupied by organic farms in 2008, doubling the percentage in 2004.

But the trend is slowing down, and there seems to be less interest in going organic in Slovenia than there is in other countries.

In the UK, for instance, the desire to be green has become a significant trend, with some Londoners going so far as to grow fruit and veg on the balconies of their flats.

The topic is also a hot one in the media. But Suvorov suspects that, at present, the organic trend is one which has only hit limited groups in Slovenia.

“It is hard to judge”, she says.

“In my circle of friends, this is very much in but maybe because we deal with environmental and

That means it does not provide a good indication of how the financial crisis has affected Slovenia’s progress towards sustainable development. It also seems that 2008, the last year the report covers, was somewhat unusual.

“2008 was an excellent year, very prosperous; it was abnormal in some way, as we are seeing now”, says Suvorov. “If we look at the data about energy consumption, there was a big increase in 2008, and I was wondering if we may have made some mistakes.

Now, in the next year, there was a drop in consumption but it wasn’t very steep – on the level of 2007 – it looks like 2008 was an exceptional year. “ The Statistics Office is already planning a new publication for the end of this year that will take into account last year’s statistics which will, no doubt, give a different picture.

“One of the purposes of this publication is also to bring this awareness to the wider public and to explain what the sustainable development means,” adds Suvorov.

“We just wanted to show that sustainable efficiency is a sort of mosaic of all different parts of life and that everybody can make small steps to help achieve this”.

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Not so moderate The balance and moderation indicators seem to suggest there is room for improvement. The amount of food waste, which was up six-fold from 2002 to 2008 with the share in communal waste continuing to rise, was particular cause for concern.

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ECOLOGY SPECIAL 29

Interview: Lučka Kajfež Bogataj

Time to Act Lučka Kajfež Bogataj is a world renowned expert in the impact of climate change, not least due to her membership of the Intergovermenal Panel on Climate Change – a panel which shared 2007 Nobel Peace Prize honours with former US Vice-President Al Gore. But when reviewing the progress of her home nation on green matters, the professor of climatology at the University of Ljubljana says there is much further to go.

By Maja Dragović How do you think climate changes affect economic affairs?

Climate change has not just an environmental-climatic dimension but also a regulatory-market economy dimension. This dimension will affect most sectors much earlier than the climate dimension. A rise in extreme weather events will gradually cause increasing wealth destruction and earnings fluctuation; financing costs for corporates and governments are likely to rise.

Climate protection and adjustment will be set in motion; corporates and consumers will have to bear the resulting costs. People will be increasingly sensitive to climate issues; firms will be challenged to respond.

Do you think the Slovenian government is doing enough to maintain sustainable growth in a time where it is becoming obvious that future economies will have to become more “green”?

My perception is that Slovenian government feels we cannot afford to address climate challenges because of the economic crisis.

This is wrong. Financial stimulus packages should be used for green investments. Legislation must support energy and resource efficiency and renewables and fully implement the “polluter pays” principle.

Do you think businesses in Slovenia are doing enough to prepare for the “greener” future?

No, not enough. They need to rethink business models. Revenues can not depend only on increase in volume!

How do you think Slovenia compares to other developed coun-

Do you think anything was achieved at last December’s Copenhagen conference on climate change?

The Copenhagen conference leaves us with a choice – we can decide whether the glass is half full or half empty. The majority of analysis, mine included, has been negative both in terms of the outcome as well as the way forward.

There are two reasons for my pessimism – there was no legally binding agreement, and an global emissions reduction target was not agreed. Despite this, the Accord addresses many crucial elements of a framework for tackling climate change.

2010 is the International Year of Biodiversity – what does that mean in theory and practice?

Policymakers are not aware of the economic significance of the global loss of biological diversity. It is time to analyse the global economic benefit of biological diversity, the costs of the loss of biodiversity and the failure to take protective measures versus the costs of effective conservation.

How do you see the Slovenian economy developing in the future?

Which businesses of today do you think stand a chance of survival in the long-term?

Renewable energy sources will be amongst the winners from climate change. Agricultural irrigation and genetic technology will gain in importance. There is potential for the construction industry and related sectors in the energy-related refurbishment of

ECOLOGY SPECIAL

How do you think Slovenia can achieve a 25 percent share of renewable energies in total energy consumption by 2020?

Increasing efficiency of conversion to end-use forms, increasing technical efficiency of energy enduse and possibly changing mix of economic activities. 25 percent by 2020 will be a challenging task for the Slovenian energy sector which is yet to update the technology it employs.

tries in setting and achieving targets to combat climate change?

Slovenia will not meet Kyoto targets. But on the other hand only France, Germany, Greece, Sweden and the United Kingdom will. That said, the provisions of the Climate Change Package are much more rigorous than the existing measures in Slovenia. In the past five years emissions in Slovenia have risen by 30 percent. Unfortunately setting targets to combat climate change is not the same as achieving them.

existing buildings. Repairing the damage from extreme weather events can trigger business activities as well. Companies that offer solutions for adapting to climate change will surely survive. There is no doubt that tourism will continue to be a growth sector.

June 2010

30 ECOLOGY SPECIAL

IEDC conference

No Time to Waste A conference held last month at Bled’s IEDC School of Management saw leading opinion makers discuss the sometimes still controversial issue of environmental sustainability. Many speakers revealed frightening facts highlighting the urgency with which actions and policies must change. But promising developments were also highlighted that gave hope that the situation can still be brought under control.

By Maja Dragović

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D

uring the environment section of IEDC’s conference named “Will European Leaders See Around the Corner and Find Creative Solutions?”, speakers agreed that one of the biggest problems we are facing is energy – and that it is a problem which we are running out of time to solve. Iztok Virant, President of the Board at Lafarge Cement, spoke in detail of Europe’s dependence on imported fossil fuels – and how the situation is set to get much worse. From 50 to 60 percent dependence Europe could move quickly into 70 to 80 percent dependence. The situation in the United States is much better with over 90 percent independence in oil and coal.

The environmental cost of burning fossil fuels is well known. But what is less often considered is the impact on our planet of shipping, say, oil from Saudi Arabia or coal from South Africa. Speakers argued this fuel dependence is a situation which shouldn’t just cause concern for environmentalists but also for economists. Our need for foreign fuel could have a disastrous impact on finances if a barrel of oil is to go back up to 100 The Slovenia Times

dollars again – meaning EUR 150 billion additional cost for the European Union.

Resilience framework Dr Nigel Jolland, from the International Energy Agency, also pointed out that energy usage is going to grow enormously until

2050, mainly due to growth in India and China. In order to keep in line with an increase in global temperature of around two degrees Celsius, we need to stabilise greenhouse gas emissions at 450 parts per million of carbon dioxide equivalent by 2050, Dr Jolland said. The third largest chunk of

mitigation will have to happen within the European area.

Dr Jolland suggested that in order to reduce energy usage and combat climate change, we need to adopt a resilience framework.

Resilience is, he explained, “the capacity of the system to absorb disturbance and reorganise itself while undergoing change”.

Globalisation – inhibitor?

All panelists agreed that we need to take immediate actions to avoid catastrophic consequences

Part of that change will have to come from consumers. And there will be difficult balances to strike.

Globalisation has, for instance, left the expectation it is possible to have local products from all over the world without having to visit the actual countries from which they hail. And while such an expectation might not be good for the environment, it has created valuable jobs in some of the poorest parts of the world. So how can we reduce our dependence on foreign goods – so helping the environment – without causing negative social consequences?

“This is a long-term strategy,” says Žiga Debeljak, President of

ECOLOGY SPECIAL 31 the Board at Mercator, Slovenia’s biggest retailer.

“Environmental sustainability awareness is growing among consumers, especially in developed countries. In time, I believe the consumers will put more importance on those issues and with that also the companies will follow the sustainability guidelines to an even greater extent. But it is a process, and communication and appropriate campaigns are very important.

“Until all of us become aware of our own impact on the environment there will not be a substantial change in consumer behaviour. And the change of consumer behavior will be a very important drive for innovation and implementation of sustainability practices in the business environment globally.”

Globalisation – catalyst?

Some con ference spea kers pointed out that, ironically, globalisation was part of the solution to the environmental problems it has created.

“Globalisation has been a crucial factor promoting the concept of sustainability because suddenly it became very clear that everything is deeply interconnected,” argued Dr Nadya Zhexembayeva of IEDC Bled School of Management. “Because of globalisation it became visible that our energy resources are decreasing. It became visible because non-for-profit organisations and activist centres became truly global.

“If anything, globalisation has been supporting the emergence of sustainability as a universal issue, and its emergence as a very urgent, immediate issue.”

sents the bad things about capitalism. But Wal-Mart has been fundamentally radical in its efforts in the sustainability field. It uses sustainability as a lens with which it looks at business and it has come up with a thousand innovations across all areas – in its private development, in its supply chain management, in its relationship with consumers.

“For example, in their very first project about five years ago, they decided to look at their packaging. They realised that packaging is waste that they purchase, then pay to transport it, pay to depack it, and pay to remove it. So packaging is waste for which they paid a lot of money. Hence they decided to look at packaging differently and they came up with many solutions which helped them cut down on transport, emissions, waste and so on.”

Dr Zhexembayeva said she also sees positive trends in Slovenia where about four to five companies that deal with waste management are set up each year.

Waste – energy capacity Waste was another urgent problem mentioned by many conference speakers. Processing of all the raw materials that we need, and the energy that is being used for producing all the goods, annually produce millions of tons of different waste – there is a staggering 520kg of municipal waste per capita in Europe. In addition, Europe also has 1,800 million tons of industrial waste per year.

“Waste is a problem of our civilisation,” Virant of Lafarge Cement

Mercator stocks 70% of local products in its stores Slovenia, according to its CEO Žiga Debeljak

said, “but it is also an underused source of energy, that is beginning to see the light of the day.”

Lessons for the future It was a point which really summed up the event. What became evident at the conference was that we are running out of time to leave a good legacy for future generations, radical actions are needed immediately.

The change does not only need to come from leaders of businesses, it needs to come from every single one of us. But the future is not lost, it is just different, with many business opportunities waiting to be embracing while saving our planet. Things are changing, albeit slowly, with an increasing number of us wanting to do more to maintain the health of the planet. And the wind of change is definitely gathering speed.

Because of globalisation it became visible that our energy resources are decreasing. It became visible because non-forprofit organisations and activist centres became truly global. If anything, globalisation has been supporting the emergence of sustainability as a universal issue, and its emergence as a very urgent, immediate issue.

Attitudes are changing

Conference attendants talked about the environmental challenges faced by emerging economies such as China and countries of South America June 2010

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Dr Zhexembayeva also pointed to a change in attitudes towards climate change. In these she identified five trends: “It used to be a moral choice but now it is inevitable reality; because of declining resources, globalisation’s radical transparency, and increasing expectations, energy efficiency now has added value; from what used to be called ‘greener’ to being called ‘smarter’ – from selling computers, which is hardware, to selling smart solutions; from optional niche to key strategy; from being a departmental idea, to becoming a mindset of a company; from existing within a company to existing within a system.”

“In terms of solutions,” Dr Zhexembayeva says, “I have seen nothing but very positive examples.

“Look at Wal-Mart, often described as a company that repre-

32 ECOLOGY SPECIAL

Tourism

Finding Green Ways to Holiday Tourism is an industry which has traditionally been regarded as damaging to the environment. It’s also an industry which is one of Slovenia’s most important. Can the country successfully reconcile the desire to attract visitors with the need to be sensitive to green issues?

By Claire Read

T

he International Ecotourism Society has a clear definition of the type of travel it wants to promote. Ecotourism is, the Society says, “responsible travel to natural areas that conserves the environment and improves the wellbeing of local society.” It is a clear and concise definition. But review the current state of tourism in Slovenia and it becomes clear that an alternative and equally accurate description for ecotourism would be: “the new watchword for tourism in Slovenia.”

Look at any of the recent work of the Slovenian Tourist Board (STB) and the focus on green travel is unmistakable. It was the sole focus of the twelfth Slovenian Tourism Forum, held this past December in Radenci, and is set to be a key part of the Board’s tourism marketing strategy for 2011.

A green country – literally

ECOLOGY SPECIAL

The focus on green holidays doesn’t only reflect a desire to address concerns about the environment. It is also a simple case of Slovenia playing to its strengths.

The country is the second most forested in Europe; has 36 percent of its surface area included in the European Union’s ecological network of protected areas; and is home to more than 22,000 animal and plant species.

“Nature based tourism in Slovenia is [already] very popular,” says Nataša Slak Valek, spokesperson for the Slovenian Tourist Board.

“And since only tourism which is kind and constructive towards the natural, cultural and social environment can be competitive in the future, we are convinced it represents the essential orientation for further development of tourism in Slovenia.”

Flower power

Ian Mitchell is the first non-national to serve as a warden at Triglav National Park The Slovenia Times

In Scotland, there is a man who heartily agrees. Ian Mitchell works for Scottish National Heritage but, thanks to a 28-year love affair with Slovenia, is as dedicated to preserving the delights of the Slovenia as he is to conserving the stunning environment of his native land. As a result, Mitchell is the first non-national to serve as

a warden at Triglav National Park and has in recent years helped establish the Bohinj International Wild Flower Festival. The event, which first took place in 2007, was specifically designed with a view to promoting sustainable tourism in the area.

“Slovenia has a real future in tourism provided that tourism is sustainably developed,” Mitchell argues. “It has a truly outstanding nature, awe inspiring landscapes, a clean and peaceful environment and welcoming, friendly people.”

Country pride Ask David Robertson why he has travelled to Slovenia six times and he gives a strikingly similar answer. Robertson and his wife Sarah have spent more than eight months in the country in the past nine years, exploring its countryside on foot. The two have even set up a website and written a book to encourage other English speaking walkers to visit the country.

“There is such a variety of scenery and so many places to explore,” Roberston enthuses. “We love to

see the pride that Slovenians have in their country, the way that the countryside is so well tended and cared for. It’s not a show for the tourists – it’s just how they want to live.”

But it’s not just besotted visitors who are shouting about Slovenia’s eco credentials. Last month the Bohinj Park EKO Hotel became the first in the country to be awarded the Green Globe Certificate, a prestigious award wh ich recog n ises t ravel a nd tourism companies operating in a sustainable way. The development is just one indication of the increasing interest in Slovenia as an eco holiday destination. And it is an interest which seems set to increase further.

“In the coming years tourists are not going to travel less,” argues Nataša Slak Valek. “But they will want more information on the environmental impact of their travel and they will decide about trips based on this.”

If that is the case, many more will pick Slovenia as their holiday destination.

34 ECOLOGY SPECIAL

Tax laws

A Taxing Matter With the failure to come to a legally binding agreement at the Copenhagen climate change conference, there is a vacancy for an international organisation to lead the fight against greenhouse gases. Thanks to its recent efforts to increase taxes on carbon dioxide emissions and encourage the use of sustainable energy, could the European Union fit the bill?

Photo: Dreamstime

By Aleš Šinkovec

Protests on the streets during Copenhagen conference were not enough to get the world leaders to sign any binding agreements on climate change

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A tough task The EU’s initiatives are, of course, far from the only international efforts to reduce carbon dioxide emissions. Most notably, 193 nations gathered in Copenhagen last December with the express aim of coming to an agreement on combatting climate change and, more specifically, greenhouse gasses. It was not an entirely successful effort. The ultimate product may have been an agreement to curtail carbon emissions but it ultimately served more as a draft The Slovenia Times

than a proper resolution – it isn’t legally binding and nor does it set specific goals for specific nations.

Part of the problem at Copenhagen was the sheer number of countries involved in drafting an agreement. Getting 193 countries, each with different economic wealth and carbon footprints, was always going to be a tough mission. No such problem exists for the European Union. The number of actors is much smaller, all have every reason to cooperate for a more prosperous future, and any legislation is legally binding.

Taking charge As a result, many are arguing that the EU should now take the lead in pushing for climate change.

It is a role the organisation seems willing to take up – with its initiative Europe 2020, it has brought in a series of new “green” targets and taxes for its member countries. As the name suggests, EU members have to lower carbon emissions by a minimum of 20 percent and derive a minimum of 20 percent of their energy needs from renewable sources by the year 2020.

Targets are adjusted slightly from country to country. Slovenia currently derives between 15 and 16

percent of its energy needs from sustainable sources – the EU has asked that this should increase to 25 percent by 2020.

Individual member states which fail to meet the targets set for them will be required to buy the surplus renewable energy production, creating an effective tax incentive to invest in local green energy production.

Emissions tax This is not the only way in which the EU is using taxes to enEnvironmental expenditure % of GDP 0,45

Source: SURS

W

hile the existence of global warming may still be a matter of vociferous scientific debate, a legislative climate change is evident for all to see. In countries across the world, laws are being passed with the express intent of reducing the carbon dioxide emissions many believe are permanently damaging our planet. Sometimes the move is at least in part a pragmatic one – a desire to reduce dependence on foreign oil, so increasing economic and political stability. Whatever the reason, one of the most active organisations in implementing legislative change has been the European Union (EU).

courage environmentally friendly behaviour. It has also introduced changes to motor vehicle tax – the less fuel efficient the vehicle, the higher the tax needed to register it for use on the road.

In Slovenia, the impact of this change has been mixed. In almost all instances, the prices of cars have increased. What decreases there have been are small. The change also fails to address the issue of older, far more polluting vehicles. Other countries have introduced scrappage incentives, allowing owners of older vehicles to trade them in for a discount on a new vehicle. While certain car manufacturers selling in Slovenia have taken part in similar schemes, the initiatives were short-lived and their effectiveness limited by a failure to tie them to fuel efficiency or carbon taxing.

Nonetheless, most praise the impact the EU’s targets and taxes are having on carbon dioxide emissions in its member countries.

There is a recognition the initiatives are not perfect – for instance, they fail to address emissions from the meat industry which accounts for more emissions than all of transportation combined.

But with the limited success of the Copenhagen conference, the EU remains the most active international organisation in combatting climate change – and arguably the one best placed to continue leading that fight in the future.

0,43

0,41

0,39

0,37 2001

2006

ECOLOGY SPECIAL 35

Green investments

Big Efforts to go Green Lek, Si.mobil, Mercator and Telekom Slovenia may be very different companies, but they have something important in common – they are among the biggest businesses in Slovenia. As such, they are all being expected to take the lead when it comes to operating in an environmentally friendly way. It is a challenge they are all meeting, albeit in very different ways.

By Claire Read

SiMobil has a number of marketing campaigns promoting recycling and energy efficiency

O

n 5 May, a group of gardeners arrived at Ljubljana’s eye clinic. They spent the day planting a range of shrubs, quickly making the clinic’s gardens more pleasant for visitors, patients and staff alike. Not one member of the group was a professional gardener and nor were they being paid for their services.

They were in fact all employees of Lek and were taking part in the firm’s sixth Community Partnership Day. During annual event staff from the pharmaceutical company leave their desks, factories and offices to dedicate themselves to improving their local communities.

The event is one of the most innovative ways in which Lek works to improve the environment in which it operates. It is far from the only way. Along with parent company Novartis, which took ownership of the Slovenian firm in 2002, the organisation is making extensive efforts to reduce the environmental impact of its operations.

Progress

Si-mobil is also putting its money where its mouth is according to Maja Ilec of its corporate communication department. Slovenia’s second largest mobile telephone provider donates around 0.7 percent of its revenues in support of socially responsible projects and has even set up its own environment-focused institution.

“The Si.voda Fund is a non-profit organisation that raises awareness of the importance of high quality water in Slovenia,” Ilec explains.

“We actively investigate ways in which to solve the country’s problems with water quality.

“Care for the environment is included in our mission, business strategy and daily business processes. We aim to become a leader among Slovenian companies in the introduction and development of green business and supply.”

a green supply of healthy Slovenian products. Also, we are devoting more and more attention to cooperation with customers and increasing their awareness [of environmental issues]. We were the first major Slovenian retailer to introduce fair trade goods and to introduce measures to reduce consumption of plastic packaging.”

It seems Slovenia’s largest companies are making big efforts to go green – and to encourage others to follow suit.

Green standards Si-mobil is not the only Slovenian telecommunications company trying to claim the mantle of green pioneer. In 2007, Telekom Slovenia became the first company in the sector to acquire the ISO 14001 environmental standard.

This internationally recognised standard requires companies to reduce the environmental impact of their work. Darinka Pavlič Kamien, head of public relations at the company, says green considerations are firmly part of the company’s business culture.

Mercator is a fellow holder of the ISO 14001 standard and, through its Department of Environmental Protection, works constantly to reduce its environmental impact. And Barbara Stegel,

ECOLOGY SPECIAL

According to Katarina Klemenc Dinjaški, director of corporate communications at Lek, they are efforts already yielding results: “During the past ten years, Novartis sales have more than doubled but our emissions and use of natural resources have grown much more slowly.”

The company is investing significant money in work to safeguard the environment. From 2003 to 2009, Novartis spent around EUR 900m on development and infrastructure investment in Slovenia, with the number of sustainable development projects increasing year-on-year.

Show me the money

head of public relations, believes the supermarket is well placed to influence both suppliers and consumers to pay greater heed to the environment.

“We know that as Slovenia’s biggest company, one which is increasingly growing into an international corporation, we can contribute a lot to the protection of the environment,” Stegel says.

“In collaboration with suppliers we work to adjust production and packaging methods to ensure

June 2010

36 ECOLOGY SPECIAL

Interview: Blaž Košorok

Foot on the Gas The Thermal Power Plant in Ljubljana (TE-TOL) is the largest combined heat and power producer in Slovenia.

According to director Blaž Košorok plans are underway to ensure it’s a position the plant maintains in the coming years – while also respecting the environment.

ECOLOGY SPECIAL

will grow. Probably it will not be the same as before the recession, but it will grow.

The European Commission has repeatedly warned Slovenia over violation of environmental commitments. How does TE-TOL comply with these commitments?

Slovenia has not only been warned but has received several lawsuits from the European Commission. That means we have not met the contractual commitments we have made. In 2007, TE-TOL started on a project that helps Slovenia meet these commitments.

In just one year, we built a co-incinerator of wood chips. Thanks to this, TE-TOL and with it Slovenia has contributed around 67,000 tons less carbon dioxide to the atmosphere. We have burned 65,000 tons of wood chips and saved about 35,000 tons of coal. Given that we are a cogeneration plant we produced about 31 gigawatt hours of green electricity, combined with 90 gigawatt hours of thermal energy. Our contribution is certainly quite high; if we look back, one third of the total energy that was created from wood comes from TE-TOL. What else has TE-TOL done so far to reduce the dependence on coal?

The dependance on coal, on only one energy source, decreases by introducing wood chips. An even greater step forward will be made The Slovenia Times

in 2014 when we build a gas-steam power plant. That means we will be adding a third energy source, natural gas. This is a step forward because the gas station will be able to produce two times the amount of energy from the same amount of thermal energy, and with 500,000 tons less of greenhouse gas emissions. The plant will also mean greater installed power in the Slovenian electrical energy system. The predictions are that the demand for electricity

What are the reasons behind this investment in a gas turbine?

Under European legislation or Slovenian legislation our chances are very limited in the future. We are not going to be able to produce energy from coal with such intensity, because we would not be able to follow the environmental legislation. If we did not go into that gas steam unit investment, we would have to halve production.

That is the first reason. Another reason is that we wish to maintain our current energy location because it is helpful for the district heating system in Ljubljana – we’re providing more than 90 percent of heat for this system. It is essential to maintain this location and that this site makes progress with the production of a gas steam unit, which will be driven by natural gas. Going into this investment means following the development strategies so it is what we must do, for both environmental and energy reasons.

Who will support you in this investment, financially?

The investment will cost EUR 132m. The European Investment Bank is the main source of credit and also some commercial banks.

Some funds will come from personal participation as well.

In your view, where is Slovenia going to be in 50 years in terms of energy use?

There will surely be an energy mix. I believe that fossil fuels are certainly not going to be completely eliminated. I also believe that nuclear power will gain in importance, especially because there are zero emissions from this form of power. And there will be a lot of renewable resources. Slovenia has great potential in terms of hydro energy and maybe even some in wind power.

Wood has great potential as well, especially if in some of the new settlements a heating system could be built in this manner or in combination with other renewable sources. We are a good practical example of that.

Is there a possibility of exporting energy?

Slovenia exported energy before the crisis, particularly to markets where the price was higher. We are an energy-dependent country.

We were only self-sufficient in the beginning of the crisis, when, together with nuclear and thermo plants Slovenia provided sufficient energy. In the future there is a possibility of export, of course.

But for this to happen energy production and its infrastructure would have to be developed along with its distribution and transmission infrastructure.

TE-TOL plans to build a gas steam power plant by 2014, which will be able to produce twice as much energy with less greenhouse emissions

ECOLOGY SPECIAL 37

Automotive industry

Driving Down Emissions Recent years have seen car manufacturers required to meet ever more stringent regulations on carbon dioxide emissions. The aim has been to reduce the amount of greenhouse gas created by the vehicles that so many of us use on a day-to-day basis. But many Slovenian companies in the automotive industry aren’t content with simply meeting these regulations. Instead they are looking for ways to go above and beyond mandatory targets.

By Laura Rosling

The automotive industry is investing heavily in researching new, environmentally friendly, technologies

N

ot so long ago, customers only asked a few questions when buying a car. They might have expressed interest in which colours were available. Some might have asked how big the boot was. Most would have asked if there was any way to pay less than the ticket price.

Nowadays, however, those selling and manufacturing cars are asked far more difficult questions – many around the environmental impact of their vehicles.

A weighty issue

Cimos, says that working out how to make more environmentally friendly products is a fascinating challenge for engineers.

“From the engineering point of view, greening makes the development process much more demanding but also more challenging,” he says. “It pushes you to think modern, it makes you innovate, it motivates you to search for better products and services.

And we enjoy it.”

The ultimate reason for meeting the challenge is, says HSS’ Dolenc, a simple one.

“We have only borrowed the environment from our children,” she argues. “It is an obligation of all of us to make sure we give it back to them in a proper condition.”

Key to success Savšek says environmental issues are increasingly important to the success of the company.

“Last year we were very successful in different public research and development tenders,” he reports. “One of the most important selection criteria was eco friendly products and an eco friendly development and production processes.”

He is not alone in believing that automotive companies must pay attention to eco issues to be competitive. Liliana Dolenc, head of sales at Hella Saturnus Slovenia (HSS) puts it starkly: “Without such a strong focus on envi-

ECOLOGY SPECIAL

Cars have long been identified as one of the key sources of carbon dioxide (CO 2) emissions and, as a result, one of the key contributors to the greenhouse effect and climate change. That has left automotive companies searching for ways in which to make their products more environmentally friendly, both in general and in comparison to their competitors.

To understand the extent to which “green” has become a selling point one only has to look the publicity car companies dedicate to their environmental efforts.

BMW proudly proclaims that it has been named the world’s most sustainable automobile company in the Dow Jones Sustainability Index for five consecutive years.

Meanwhile Renault – which has a significant Slovenian presence in the form of the Revoz factory – released a detailed report for March’s Geneva Motor Show detailing its efforts to become the car

manufacturer with the lowest CO2 emissions.

To achieve such a feat, the company will be dependent in part on the companies which manufacture components for its cars.

Companies just like TPV, a Slovenian business which produces metal car parts for firms including Renault. Tomaž Savšek, assistant general manager at the company, says work to make its products more environmentally friendly is ongoing. Recently research and development has focused on making it possible to use high-strength low-alloy steel in new products.

Using such steel would greatly reduce the weight of TPV’s products, so reducing the overall weight of the vehicles in which they are used. Lighter cars mean less fuel consumption and, in turn, less emissions.

ronmental issues,” she says, “we would not be a state-of-the-art company.”

Consequently HSS, which manufactures and develops components for lighting technology in cars, has a clear environmental programme. The main aim according to Dolenc is to be even more environmentally friendly than is legally required. To that end, the company has two engineers in its production and quality assurance department who focus solely on environmental and energy issues.

Such a situation is now commonplace in the automotive industry. Jerko Bartolić, product development manager at automotive component manufacturer

June 2010

38 ECOLOGY SPECIAL

Consumer trends

Green Shoots of Growth Each December, leading market research firm Mintel predicts global consumer trends for the coming twelve months. One of the company’s main predictions for 2010 is that a focus on ethical responsibility will be key to regaining consumer trust and interest. It is a forecast which is bound to interest Slovenia’s small but growing band of eco companies – as well as investors looking for fresh opportunities.

By Claire Read

ECOLOGY SPECIAL

Still a small market With such an explosion in demand for green products, conventional supermarkets are now looking to get in on the action.

Mercator, Tuš and SPAR all now stock organic produce. Even so, the organic market in Slovenia remains relatively small – its value estimated at less then four million Euro in 2008.

The Slovenia Times

Photo: BOBO

T

wo decades ago a new store opened on Ljubljana’s historic Trubarjeva Street. The tiny shop was called Kalček and it was something of a novelty given its focus on environmentally friendly products. In 2010 the picture is very different. Kalček, once a tiny trailblazer, is now a chain thanks to the 2005 opening of its supermarket in BTC City.

According to Marjeta Lampret, Purchase and Marketing Manager at Kalček, the company’s growth has been made possible by the increasing public interest in organic and eco products.

“The customers that helped Kalček exist and expand [at first] were mainly people interested in different diets, like vegetarian or macrobiotic, or people with specific health issues,” she explains.

“Our customers now are very different, ranging from those who eat only organic foods to those who come for a specific item or two.”

Most are driven by concerns about the current state of our environment. “We are living in a very polluted world,” argues Lampret, “and it affects us in many areas and causes many problems. Organic goods give us optimum nourishment without side effects from chemicals and that means sustainable agriculture and clean nature.”

line store selling eco products for youngsters and mothers, opened just over a year ago and owner David Juvan is optimistic about its future.

“Since eco awareness among parents is rising each year, we expect the market to grow by a moderate rate in the next few years,” he says.

Good investment opportunities

Eco products are becoming increasingly popular amongst Slovenians

As a result, some Slovenian eco companies are finding that the best markets for their products are foreign ones. Robert Seneker is the chief executive of Eurolaces, a company which manufactures lace from totally organic cotton thread – the first company to do so successfully. He says getting his countrymen interested this eco product is proving to a struggle.

“Sales of our eco line in Slovenia are almost zero,” he reports. “We have tried many times to contact Slovenian companies and designers but none of them have shown an interest in cooperation. It seems that the Slovene companies don’t see a benefit for this kind of business.”

In contrast, the company has had significant success in Egypt, the United Kingdom, Australia, Canada, Sweden, Germany and India. Sales in the United States are such that Seneker has hired two independent sales representative in the country.

But Seneker is in no way giving up on the Slovenian market: “As a Slovene, I will always support the domestic business and try to find new ways in which to present Slovenia to the world and the world to Slovenia.”

Growing steadily In spite of the challenges being faced by some Slovenian eco companies, new firms are entering the market. Eko-Baby, an on-

Growth in the green market is also being predicted by many investment experts. Last month respected British magazine Investors Chronicle suggested all stock holders should have some green stocks in their portfolios.

It is a contention which seems to be backed up by the performance of Impax Environmental Markets Trust, the only pure environmental investment trust in the FTSE All-Share index. Over five years the fund has returned an impressive 71 percent.

It would have been difficult to envisage such a situation back in the late eighties when Kalček first opened its doors. But it’s an indication of just how important green businesses have become – and a hint of how important they will continue to be.

A certificate is not everything Organic certificates guarantee that your food has been grown in a healthy, environmentally friendly manner. But they may not be the best way to confirm the food on your plate is good for both you and the environment.

According to Jerneja Kaminkar of Vivo Catering, a company committed to full awareness of the origins of the foodstuffs they use, tracing the origins of food is sometimes better than checking for an organic certificate. She points out that the criteria for such certificates can be hard to meet in a small country such as Slovenia.

Many such certificates, for instance, require farms to be a certain distance from a motorway. This benefits of this are clear in a country such as France where such roads are busy and produce much pollution. But in Slovenia where motorways are much quieter, Kaminkar argues may be entirely possible for a farm to cultivate natural goods while still relatively close to these sorts of roads.

Kamnikar therefore argues that Slovenian consumers should not only look for a certificate when buying organic, environmentally goods. A better bet, she argues, is to trace the origin of the products and discover the conditions in which they are grown. She says this is particularly easily done at the market, where produce most likely comes from nearby producers.

ECOLOGY SPECIAL 39

Milk-o-mat

Fresh Comeback Some 30 years after introduction of homogenisation, fresh milk is making a comeback in Slovenia. It’s a move which is not only benefiting customers’ health but also the environment.

Photo: BOBO

N

ot so long ago, it was common for each evening to consist of a walk to a nearby farmer to collect milk.

It was a practice which not only meant fresh, healthy milk but also – though few were aware of it at the time – one which benefited the environment through the use and reuse of milk cans.

That evening walk made obsolete by the rise of the supermarket and, with it, the rise of packed, processed milk. But recent years have seen a revival of interest in fresh milk. It’s a revival explained in part by the nostalgia for a fully fresh, full fat, fully creamy milk.

But it is also explained by an awareness of the benefits of a nonhomogenised product. Easier to digest and friendlier to our immune system, fresh milk is also packed full of calcium and vitamins.

Slovenia’s increasing demand for traditional milk has been met by entrepreneur Kavčič Mitja and farmer Tomaž Mis. The two are behind the Milk-o-mat vending machines which are now found across Slovenia and which are giving Slovenians access to fresh milk 24 hours a day. Since launching the first unit in April 2009 in Medvode, Kavčič’s company have installed 42 Milk-o-mats. Together they serve around 20,000 litres of milk daily.

Even so, Kavčič admits there is a way to go before the machines become Slovenia’s main source of milk – “it is still a small figure compared to the 480,000 litres overall daily consumption in Slov-

enia”, he says – but is he optimistic the machines’ popularity will grow further.

He thinks an important part of this will be increasing customers’ understanding of the quality of the milk – the machine electronically communicates information on quality to the milk supplier and would stop operating if the product was more than 24 hours old or if its temperature rises above a prescribed level. But he also thinks the ‘greenness’ of the process will prove of interest. After all, using refillable bottles at the Milk-o-mat spares the environment from the milk packaging used by supermarkets.

Human digestion may deal with the delicious products of restaurants and catering, but the business itself can still result in many items to be disposed of. From plastic cutlery to napkins and food leftovers, catering is far from a no-waste business. But some are fighting back against the traditionally un-environmentally friendly nature of the business.

J

erneja Kamnikar of Vivo catering is developing a brand “ekocatering”, which beside the nat-

ural origin of the foodstuffs also pays great attention to the way in which it is served. Kamnikar says

no longer be a visit to the supermarket but instead a visit to the environmentally friendly milk-o-mat.

Online eco-shopping An increasing number of online food shops have sprung up in Slovenia in recent years. But Mojatrznica.si is different to most in that it only sells eco-grown fruit and vegetables, all sourced from within Slovenia.

Quality is controlled by various certificates as well as supervision of farms themselves. Attention is paid to farms’ locations in terms of distance from roads and conventional farms. All the crops are fresh, meaning the distribution time from farm to a customer is less than 24 hours.

The service has now been running for around for half year. Andrej Dorrer, the man behind the project says demand is gradually increasing. A typical customer, he says, is an urban, educated, above-average earner between 30 and 45 years.

the company decided it needed to take steps to reduce the malicious environmentally consequences of its business.

She says reducing the environmental impact of catering is not always a simple task. For instance, separating recyclable food packaging is crucial. But there is often a lack of separate waste containers for recyclable products, particularly in the centre of Ljubljana where most catering firms operate.

That means that companies wanting to be more green often have to invest their own time and money in transporting the separated garbage to the dump site.

There are other issues to con-

sider. Organic waste such as used frying oil need a special container.

Environmentally friendly detergents must be used for washing dishes and table cloths. If disposable plates and cutlery are used they should be made of paper, which is recyclable, rather than plastic which is not.

It may not be an easy task but Kamnikar says it’s an effort worth making: “How we treat the environment is actually how we treat ourselves,” she says. “Something has to be done, especially today, when we are surrounded with the bad influences of modern times and the quick tempo of life alienates us from nature.”

June 2010

ECOLOGY SPECIAL

Sustainable Catering

If Kavčič’s vision becomes a reality, the modern modern equivalent of that evening trip to the farmer will

40 ECOLOGY SPECIAL

Forests

Big Barrels, Brown Bears and Beetles It seems that the link between hunting and conservation is far better understood in Slovenia than it is in many other countries.

By Jeremy Hobson

Wildlife friendly Sympathetic forestry practices ensure that both flora and fauna do not suffer unduly from timber extraction. On a recent trip to The Slovenia Times

Winter feeder for deer.

Mašun in the Snežnik mountains – accompanied by Jošt Jakša, director of Slovenia’s Forest Service central unit based in Ljubljana, and Janko Mehle, the head of service for “hunting grounds with special purpose”, I met Anton Marinčič, one of the men working on a daily basis within the forest and who is primarily responsible for the necessary liaison between hunting and forestry. Together they explained how, in order to best help the stocks of wild boar and both red and roe deer, feeding places are arranged throughout the forests. Maize is provided for the boar via hoppers that operate on a solar-powered timer system and which have to be constructed in such a way that they cannot be destroyed by the wild bear population. For this reason, they are either situated on strong metal poles or suspended on cables above wallowing holes favoured by the boar.

Deer are fed hay in the winter from grass that has been cut from carefully cultivated woodland glades – which is then mown again later in order to ensure that new growth is continued: the regular addition of general purpose fertilizer also helps. The creation of these feeding areas are not however totally altruistic as, in certain vantage points, a high seat has been erected for the use of hunters and stalkers who pay heavily

for the privilege and in doing so, help contribute towards costs.

The forests’ vastness and rich diversity provides a home to the Brown bear at one end of the ecological scale and the Long-horned beetle at the other. In between can be found the Ural owl and the lynx – a predator whose population has suffered from random killing in the past, but is now very slowly on the increase – thanks in no small part to the work of the Slovenia Forest Services. Wolves are also encouraged and any resultant damage to sheep stocks compensated for. Therein lies an interesting anomaly as, at one time wolves were prevalent and sheep stocks non-existent. The government then persuaded farmers to keep sheep and offered grants to do so!

But it is the brown bear which I found so fascinating. Unfortunate not to actually see one, I did,

however, see recent evidence of very fresh foot prints in the mud of a wild boar wallowing hole. Yet again there is a balance between conservation, hunting interests and a need to pacify farmers who claim (legitimately or otherwise!) that bears are responsible for predation on their cattle and sheep.

Although a proportion of brown bears can be shot annually, there is a great deal of emphasis placed on maintaining their numbers – as system that seems to be working as it was the Slovenian government who sent bears to the French Pyrenees in order to replace dwindling stocks.

As well as providing the ideal location for field-sports enthusiasts, there are plenty of opportunities for non-hunting enthusiasts to enjoy the forests of Slovenia. Photographers and nature-lovers can be placed by forestry-employed guides in the same high seats as the deer or wild boar shooter, and will be given just as much care and attention. Such services do, of course, come at a price: a three hour session to observe and photograph bears for example, will cost 150 euros – and even then there is no guarantee that you will be successful: as Janko Mehle remarked, “ they are wild animals and not from the circus!”

Jeremy Hobson is a British born freelance writer and author who now lives in France. Most of his work is country-orientated and Jeremy has had 22 books and well over 1,000 articles published – as well as appearing on UK television and radio.

Photo: BOBO

ECOLOGY SPECIAL

T

he vast majority of Slovenia’s woodland is privately owned; the remainder being held in the hands of either the government or church. Nevertheless, public access is permitted to all but the most sensitive ecological places and, unless it is an area which is state-run (as in the northeast of the country around Beltinci), hunting is normally possible only by having contacts within what is generally known as shooting ‘families’. In reality, a ‘family’ is an association, each of which are responsible for maintaining the quality of shooting and habitat in their particular area.

Every Slovenian association will work out what trophies can be taken and what needs to be culled – perhaps because a particular animal is beyond its prime or is carrying ‘faults’ best not carried into future generations. Members must provide details of what has been killed, the weight of an individual animal, whether it is male or female and in what area of the territory it has been shot. Based on these findings, the association then submits a plan to the regional director of forestry detailing what game has been taken the previous season and what, in the association’s opinion; can safely be taken the following season in order to ensure that the best quality stocks are preserved.

Should a ‘family’ fail to comply with what is required, there is a very distinct possibility that their privileges over a certain area will be offered to a neighbouring organisation which will then be eligible to make an application for the sporting rights to be included with their existing land.

As yet, this legislation has not yet been put to the test because it is a relatively new scheme which only came into existence three years ago.

TOURISM 41

A Year of Challenges Slovene tourism faces a few unlikely challenges this year – including a breakthrough to the Chinese market.

Visa-free Serbian tourists contributed a slight increase in Gorenjsko.

By Vesna Paradiž

T

he Slovenian Tourist board has published its report on the tourism sector before the 2010 summer season. The representatives of the Slovenian Tourist Organisation and the industry agreed that this year is a difficult one, in which only common and clear goals can contribute to achieving the desired results. The statistics of the first four months do show a positive trend of visits and overnight stays, but the overall prognosis for the rest of the tourist year cannot be regarded as optimistic; they expect it to reach the level of last year, but not beyond.

The Statistics of the First Four Months Ljubljana’s hotels have recorded approximately the same number of tourist arrivals as in the comparable period last year. The number of foreign guests was about the same, while there was a 5% increase in domestic guests. In the seaside hotels of the PortorožPiran district, there were 79,183 overnight stays in April, which is a 15% year-on-year decline.

Tourist offices say that it is hard to predict the results of this year’s summer season, because people are increasingly deciding on their vacations at the last moment. Therefore, they plan to significant investment into short but powerful advertising campaigns

that will be launched just before summer. Similar marketing techniques were successful last year.

The Alpine region, especially Bled, noted some increase of visitors in the first four months compared to 2009, but a decrease compared to 2008. Foreign guests prevail heavily over domestic ones, with the majority being Italians, Germans, Croatians and Serbians.

The number of Serbian guests doubled due to the abolition of visas for entry into Slovenia. The number of stays at Bled was down, partly due to the recent issues with volcanic ash, which contributed to a great loss of income for the entire tourist sector. Kranjska Gora has had 10% more overnight stays than last year; most of them were domestic guests. Maribor

Attractive enough for Chinese?

and Pohorje had positive results as well; from the negative trends in January, the numbers grew until April. Pohorje, in particular, had great success – about 20% more guests than the previous year. For the summer, they do expect some additional increase, but nothing significant.

“Despite the encouraging start of this year, which was shown from the provisional statistics for the first three months of this year and partial data for April from the main tourist destinations, this year is and will be undoubtedly very uncertain and difficult for Slovenian tourism. The fact is that many signs of crisis remain this year as well, which is mostly reflected in the British sending market. At the same time, we have

pleasing data on the positive trend with the major sending Slovenian markets, which are Italy, Austria and Germany.

“The Slovenian Tourist Organization together with the Slovenian tourism economy will continue both intensive marketing and communication activities in foreign markets and the activities in the domestic market, which earned the positive balance in the Slovenian tourism last year,” says Dimitrij Piciga, the director of the Slovenian Tourist Organization.

United to Conquer China The organization has representatives in the countries of Benelux, Austria, Germany, Italy and others where they try to present, advertise and promote Slovenia to achieve better tourism results in the future. Recently, STO has started cooperation with the Croatian National Tourist Board and with joint forces they will try to attract the Asian market into the European region. A special emphasis is on China; its ever expanding market could be a great source of finance in tourism, because, according to statistics, Chinese tourists have already spent 6.86 billion dollars abroad in 2010. If this cooperation is successful, the coming years will be very successful for tourism in Slovenia.

June 2010

42 BEAUTY & LEISURE

An Apple a Day Keeps the Doctor Away Food is essential for survival, but different kinds of food have different effects on our bodies. Let’s try to adopt proper eating habits and choose the right food, so we can live a long life of health and quality.

By Vesna Paradiž

H

ealth is not a given. Although healthy people rarely think of illness, health will easily disappear if we don’t put effort into keeping it intact. Therefore, it is important to know that food is the source of our physical energy. It is instrumental for growth, reproduction and the recovery of body cells and tissue.

It works like a construction material for the body and helps it build strength and fight sickness.

Proper nutrition helps prevent heart diseases, tooth decay and obesity, it builds physical resistance and fitness, and it benefits our external im-

age. It also fills us with energy, and productivity, improves our welfare, calms our nerves and helps us concentrate. There are numerous good effects from choosing the right food, and we should be more aware of it.

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The Slovenia Times

Many people who decide to take care of their health by eating properly are faced with a dilemma. What is the quality of the food on the market? Take industrially grown food cultivated with all sorts of growth stimulating chemicals and compare them with that which is produced and processed naturally, without pesticides, preservatives, artificial flavours and dyes or genetically modified organisms. The methods of such organic food production are legislated, controlled, monitored and confirmed by certification. A certificate is issued by an official organization and proves that the food is produced in accordance with regulations governing organic farming. Such certificates are highly reliable and a guaranteed sign of healthy food.

You can buy organic food at Ljubljana’s central market, in one of the specialized shops for the sale of organic products (the most well known perhaps being Kalček on Trubarjeva ulica), or you can find it on the internet. There are numerous stores offering online sales of eco food, which is then

conveniently brought right onto your doorstep. Beside those, more and more regular stores and supermarkets recognize the real value of such food and have a couple of shelves dedicated to it.

That really is a step forward; a whole chain has been triggered because of people’s awareness of the importance food has on their health. Supply and demand have increased; farmers have seen a chance of making extra money with organic farming, so competition has increased as well. As a result, prices have decreased, though not yet to the level of mass-produced imported food, but enough to let us hope that the chemical way of processing food will not be profitable much longer and will have to adapt to changing market demands.

Global Going Local “Going local” is a less extreme principle than eating only organic, but also very healthy. Local food production, purchase and consumption both reduce the risk of the development of diseases and maintain a healthy environment and promote sustainable development. Local products will most likely contain a greater amount of antioxidants, which improve the functioning of the immune system, increase the body’s ability to conquer efforts and maintain nerve cells. They also help the body in its fight against free radi-

BEAUTY & LEISURE 43 You yourself can help promote local food production and processing by taking part in its consumption. So, if you wish to eat healthy, try to buy local, seasonal and organic food. If you have a garden, grow vegetables yourself and you will have an organic supply of food right outside your kitchen. In every season, except winter, there are also plants that await you in nature, hidden under bushes, peeking out from the shadows of the forest. Late spring is a good time for searching for asparagus, bear garlic and several sorts of herbs.

Mushrooms will come out soon as well, as will blueberries and other forest fruits. While picking them, you will also do a world of good to your body, which needs exercise as well as good food to maintain its health.

Mirror, Mirror on the Wall...

Proper eating habits are greatly reflected in the way we look; they don’t say “you are, what you eat” for nothing. If we are dehydrated, our skin will seem tired and old, our wrinkles will show and our hair will be dry and dull. Dehydration comes not only because of a lack of water but also because of too much caffeine.

If you want to look healthy and glowing, you should feel that way, and so you should know how the right food can contribute to your beauty.

Vegetable oils and fish, for example, contain non-saturated fatty acids which slow the formation of wrinkles and dry skin, while they are also good for the heart.

Apples, on ion s a nd grape skin protect cells against oxidation, aging and also viruses. Kiwi fruit, citrus fruits and currants have a lot of vitamin C and E, which works well against pigmentation marks.

Meat, eggs and cheese contain vitamin A, which works like a personal trainer for body cells; it promotes their forming and accelerates their growth, which will consequently make your skin look young and radiant.

Watermelons and tomatoes, carrots and spinach work as an inner sun protection factor and protect the skin from premature aging and the negative effects of UV rays. Practically all plants have a positive effect on both your health and beauty, whether used as food or as a cosmetic product. You just have to give them a try.

Local food production reduce the risk of the development of diseases and maintain a healthy environment and promote sustainable development.

They will most likely contain a greater amount of antioxidants, which improve the functioning of the immune system. advertisment

cals, which are responsible for pathological changes in cells and tissues, leading to serious diseases such as cancer. Imported food is in storage and then transported over a longer period of time, and this makes it lose antioxidants and nutritional value in general.

The Ministry of Health promotes local food consumption through public institutions – they favour local food in public procurement, and local food production and processing through open tenders in the field of public health. Consumer awareness and a positive image are fundamental for the increased consumption of local products, so they have set some propositions of how it is to be achieved. Some of these proposals are: milk-o-mats should be set in front of every school, so the parents would be able to buy fresh milk from a local farmer there while picking up their children from school; Farm stalls should be set on all areas with high pedestrian traffic; Slovene fruit should be placed in vending machines, right next to the chocolates and at a reasonable price; larger trade groups should offer Slovenian fruit and vegetables for about 5 cents less than imported ones etc.

There is still much be done in this area but thing are moving forward nevertheless.

Renewed Talaso Strunjan

Terme Krka’s littoral centre Talaso Strunjan, this year being a part of important investment works, has officially presented the new acquisitions. The investment brought bigger pool and accommodation capacities and gained bigger chances for the development of the thalassotherapy programmes.

Tel.: 05/ 67 64 100

www.talaso-strunjan.si

The unique position of the Strunjan health resort in a protected regional park just along the seaside, a variety of health, relaxation and holiday programmes is what puts it in the very peak of Slovenia’s most occupied and popular natural spas.

It offers respiratory disease treatment, relief of the injury effects and the operative procedures of loco motor system as well as treatment of rheumatic ailment. The recently finished works have provided the spa with 340 square metres of area for physiotherapy and sports-injuries rehabilitation.

Salia relaxation centre has also been fully renovated. A positive addition for all guests is a bigger pool hall with a new therapeutical pool, two massage pools, a foot massage track with cold water and children’s pool.

In 2010 Strunjan’s coastal area continues to be worked upon and this year Talaso Strunjan beach will righteously put up their blue flag, a symbol of ecologically undisputed and well-organised public beach that encourages green business management.

June 2010

44 BEAUTY & LEISURE

Leisure

Saturday Morning Market Fever If it’s Saturday morning in Slovenia’s capital it must be time for a visit to the market: time to buy some fruits and vegetables for the following week, meet people, chat, socialise and enjoy the coffee in the middle of the city’s hustle and bustle.

By Vesna Paradiž Dolničarjeva Street or, as it is appropriately nicknamed, Flower Street (Cvetna ulica). Here stall holders sell flowers from around the world as well as candles and assorted forest fruits. They are always guaranteed a good profit around 1 November, when All Saint’s Day is celebrated in Slovenia.

Arguably the most stunning part of the whole market is the Plečnik arcades by the Ljubljanica river. Designed as a tribute to the former Roman Emona, the arcades include the earlier seminary. In its premises you can now enjoy a cup of coffee, tasting a loaf of freshly baked bread or sweets, buying fresh meat and dried fruits or picking up a souvenir for those left at home. And in the basement of the arcades is a fish market.

I

f you ask someone, anyone, living in Ljubljana what are he or she is doing on Saturday morning, the answer will most likely be ‘going to the market’. Such a visit to the ‘tržnica’ has more or less become a tradition in Slovenia’s capital.

Ljubljana’s marketplace is located is in a lively part of the city centre where the Episcopal lyceum used to stand. The lyceum was was demolished due to the earthquake of 1895 and it was after this that the empty space was turned into a marketplace.

The structure of the market today was designed between 1939 and 1940 by the famous Slovene architect Jože Plečnik; it spreads from Tromostovje (the Three Bridges) to Zmajski most (the Dragon Bridge). It is considered as an architectural monument. As such, some residents of the city have reacted with anger at the town Municipality’s plans to build an underground garage beneath the market. While many residents fear the work will damage or completely ruin the monument, the Municipality says Plečnik would The Slovenia Times

Welcome to the Crowd surely have built a garage under the market had it been possible in his time. For the moment, it is a debate which rages on.

Let’s Go to the Market The biggest and the most important part of the marketplace is Vodnikov Square. It bears the name of a Slovene poet Valentin Vodnik who was a teacher and the headmaster of the lyceum that once stood there. Most of the marketers there offer home-grown fruits and vegetables on 316 wooden stalls. They mostly grow vegetables on their own farms and

bring them to the market every morning. Some sellers in this area specialise in imported food – they can be easily spotted by their metal stalls – while others sell sauerkraut and sour turnip. In this part of the market clothes, shoes and various accessories are also sold.

The stalls on Pogačarjev Square, meanwhile, mainly offer organic food and different handicraft products. This is also the place where many thematic events take place throughout the year, such as ‘The Country in the Town’, ‘Cheese Festival’, ‘Eco Holiday’ and so on.

Behind Pogačarjev Square lies

Ljubljana’s market may be rich with all sorts of goods, but its main draw remains fresh and healthy food. While it may be slightly more expensive than the produce found in the supermarket, most residents enjoy the chance to treat themselves to home-grown vegetables and fruits containing no additives or preservatives, fresh meat, fish and dairy products, forest fruits, mushrooms, herbs and so on.

The marketplace is open every day until about 4pm, with the exception of Sundays when the market only operates from from April 1 to October 31. But the most fun and appropriate day to visit remains Saturday. One reason for that is that Saturday is also the ‘event day’, there is something going on almost every week. The main reason though is that Saturday guarantees a friendly crowd at the market, consisting of marketers, fellow buyers, tourists, strollers, regular coffee drinkers and many more. It gives you a sense of being somewhere you are welcome and a part of something.

And that something is Saturday Morning Market Fever.

BEAUTY & LEISURE 45

Cooking

Making Its Way in the World JB is the first Slovene restaurant to make it to the S.Pellegrino World’s Best Restaurants list.

By Vesna Paradiž

W

hen a restaurant comes in 89th in a list of 100, it’s usually considered to be a bad sign. Usually, not always, because when it is the S.Pellegrino World’s 100 Best Restaurants list, it is a great honour and a very good sign of never being hungry or disappointed when eating in such a “lowly ranked” restaurant.

JB is an elegant restaurant in the centre of Ljubljana, and the first Slovene restaurant to make it to the list. Founded in the year 2000, it has gained quite a reputation.

Its owner and master chef, Janez Bratož, claims it is like a second home to him. He goes shopping for ingredients in the early morning, then takes his place behind the

stove and stays there until his very last guest leaves for the evening.

His basics are fine local ingredients, which achieve their final shape and taste through a process of using both traditional and modern cooking techniques. The final result is a harmony of flavours and creative presentation on the plate.

Both his family and the team of 11 cooks and three waiters support Bratož in his work, so it is no wonder their endeavours have finally been acknowledged.

The S.Pellegrino World’s Best Restaurants The list of 50 best restaurants was first seen in 2002, when pre-

sented by the magazine Restaurant. The first list got such global media attention that it has been refreshed every year since and has become a reliable indicator of world’s best restaurants.

The restaurants are evaluated by more than 800 people who are asked to vote for what are, in their opinion, the best dining establishments in the world that they have visited during the last 18 months. There are some general rules of voting, such as the confidentiality of results before the awards announcement on April 26, voting for up to three restaurants within one’s region, giving at least two votes for restaurants located outside of one’s

region, not voting for restaurants one owns or has an interest in etc.

Nominations must be made for the restaurant, not for the restaurateur or the chef.

Making it to the S.Pellegrino World’s Best Restaurants List is a grand achievement in itself, but at the same time it is also promotion for the country and a confirmation of being on the right path, as well as being motivation to reach even higher in the future for the restaurant. Janez Bratovž does not hide his ambitions. With talent, dedication and persistence, his team wishes to make it to Top 50 on the list.

And they have a good chance of succeeding.

June 2010

Dine

46 14 Days

with style

Restavracija Grad Otočec Grajska cesta 2, Otočec tel: +386 (0)7 384 89 00 booking.otocec@terme-krka.si www.terme-krka.si www.castle-otocec.com Open: every day until midnight Food type Slovenian, International Price range seven-course tasting menu – 55 EUR, four-course daily menu (also vegetarian) – 35 EUR Reservation recommended

Tasting menu

Bear ham with mashed kohlrabi on crispy bread with acacia and roasted nuts

*** Nettle cream soup with Dabube salmon *** Green asparagus on roasted Jerusalem artichokes with porcini from the Kočevje forests, quail eggs, goat cheese from the Kozjansko region

*** Ross and lemon sherbet *** Poached fillet of veal in tarragon sauce, corn souffle, stir-fried courgettes, radishes with roasted hazelnuts *** Slovene cheese *** Lilac parfait with lemon cream and lemon balm

The Slovenia Times

Castle Otočec Restaurant

Return to the Castle on the Island Otočec’s Castle Restaurant is ready to impress at any time and on any occasion.

This summer, the menu has become even more remarkable.

E

very country has a few special places, dedicated to impressing their important guests, and very man’severyone’s life brings some special occasions that need such a place. Otočec, one of the few Slovenian fresh water islands, is a place where many delights come together. Its natural setting with a charming old castle is an ideal place for a meal. And we are not talking about mere picnics, but one of the most highly regarded restaurants in Slovenia.

The restaurant’s three rooms and two terraces retain all the elements of ancient days, where knights and princesses would have felt as pleased as modern guests do. The setting is ideal for small groups, who can use interior halls as well as the castle’s courtyard terrace or even the backyard, which is a completely natural and unspoiled meadow.

The first and the most essential element here is – of course – the food. In the Castle Restaurant, the cooks consistently create cuisine of the highest level. Their boss, Robert Gregorčič, is one of the country’s best chefs and has had experience in the kitchen of Peter Kelly, the world’s number one chef according to the New York Times.

This season, the tasting menu offers the “Dolenjska region on a plate,” featuring the richness of game and local delicacies from the surrounding fields and farms. Most ingredients are obtained directly from the small local producers.

Cooperation with the local community, which inspires the menu is something chef Gregorčič finds essential, “I like to support this people in order to maintain providing unique and quality foodstuffs.”

Re-discovering the food of “our grandmothers” is something that fascinates Gregorčič, who man-

ages to find innovative ways to include these old specialties into his menus.

Summer on the plate

The summer tasting menu is an excellent example of the chef’s dedication to local and healthy, yet very innovative and tasty. Every course has a bit of the fresh and the local: nettle soup, rediscovered Jerusalem artichokes, boletus mushrooms from the Kočevje forests, and elderberry desert The wine list features the best of Slovenian wine, with essential for-

Top choice JB logo 4/15/08 4:32 PM Page 1 C

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JB Restaurant Miklošičeva 17, Ljubljana Tel: + 386 1 430 70 70 restavracija.jb@siol.net, www.jb-slo.com Open: Mon – Fri, noon – 10pm Sat, 5pm–11pm

In Issue 127

In Issue 124

Fabula Restaurant Borovška cesta 100, Kranjska Gora Tel : +386 4 589 20 88 info@hitholidays-kg.si www.hitholidays-kg.si Open: daily from noon to 11 pm

Composite

BARVE: PANTONE 194 U PANTONE 401 U PANTONE PROCESS BLACK

In Issue 129

Castle Otočec Restaurant Grajska cesta 2, Otočec Tel.: + 386 7 384 89 00 booking.otocec@terme-krka.si www.terme-krka.si, www.castle-otocec.com Open: Every day until midnight

Pule Estate eign brands at the back of the shelf – again, for those who insist.

The Elite Club

Recently, the Otočec Castle Restaurant became a member of the prestigious international association of castle hotels and restaurants, Relais&Chateaux, as well as a member of Chaîne des Rôtisseurs, the oldest association for the art of cooking, the culture of wine drinking and socializing at a set table while respecting region’s ethnological specialties.

The restaurant also received a visit from Italian “Michelin Chefs” and reporters who were exploring the culinary delights of various countries, this time Slovenians.

The Castle Hotel Otočec Restaurant was chosen among a few others. The chef received great praise for dishes such as mature pheas-

ant with herbs on dandelion salad with bacon and pumpkin oil, stewed venison from the Kočevje forests with dark chocolate and juniper berries in sauce or frozen crème made of lilac with foamy lemon sauce and balm-mint.

Invitation

Garden Party at Grad Otočec

Drečji vrh 16, Trebelno Tel: +386 7 34 99 700, +386 1 470 27 00 Mobile: +386 51 373 662 marketing@pule.si, www.pule.si Open: Wed-Sat: 12am-10pm, Sun: 11am-8pm; Pule Estate is also available for rental Traditional Slovene cuisine with other culinary delights

Atrium Restaurant

In Issue 120

Pot za brdom 55, Hotel MONS (main entrance), Ljubljana ring, Brdo exit Tel : +386 1 470 27 00 info@hotel.mons.si Hotel AND CoNGReSS CeNtRe lJUBlJANA Open: Every day, 12am – 10pm

Wednesday, 9th June Despite every day being the right day to discover Otočec’s Castle Restaurant’s culinary treasures, real gourmets should plan to visit it on 9th June. On that day, Robert Gregorčič and his team invites you to a garden party with a special cultural-culinary gathering with an additional offer of Movia wines.

In Issue 125

Shambala, asian restaurant Križevniška 12, Ljubljana Tel.:+386 31 843 833 info@shambala.si, www.shambala.si Open: 11am-11pm, Sunday and holidays closed.

Fresh and spicy experience | Selected wines | Relaxed atmosphere

Jamski Dvorec

In Issue 126 Turizem Kras Jamska cesta 30, Postojna Tel: +386 (0)5 700 0100 info@turizem-kras.si www.turizem-kras.si Innovative cuisine inspired by regional and medieval heritage. Excellent wine choice.

City Restaurant - BTC CITY Ljubljana

In Issue 128

Poslovna stolpnica, 13th floor, Šmartinska 140, Ljubljana Ljubljana ring, Exit 1 Tel.: +386 (0)1 585 19 97 www.btc-city.com Restaurant open: Mon-Fri, 11am – 4pm Bar open: Mon-Fri, 7.30am – 6pm

Barka Restaurant - St.Bernardin - Portorož Obala 2, Portorož Tel: +386 (0)5 695 30 08 restavracija.barka@h-bernardin.si www.h-bernardin.si Restaurant with selected fish dishes Open: 11am – 11pm Chef Robert Gregorčič June 2010

48

The Capital Tourism

Here Comes the Postman!

A friendly postman in a brand new old-fashioned costume will be at your service with advice on events worth visiting and places to eat, sleep or see in Slovenia’s capital.

By Vesna Paradiž

T

he postman has been present in the centre of Ljubljana during the summer months since 2006. The whole project was started by The Slovenia Times and the Ljubljana Tourist Board, who wanted to have someone delivering our magazine right into your hands, free of charge, while also being a spectacle and help for tourists. Inventing the character (who does not ring twice, or, to be precise, not even once) was a great way to join a useful service providing lots of practical information, hints and tips for getting around and about, with attractive advertising for the country and the capital.

The fellow, wearing a top hat with a dark blue and orange suit (inspired by a standard AustroHungarian uniform on a postcard from 1860) and riding a curious old-fashioned tricycle, will act as a mobile tourist information point, delighting both young and old by handing out Slovenian Tourist The Slovenia Times

Board information brochures and free copies of The Slovenia Times.

As a source of information, you can also use him for a little chitchat while waiting for friends or your significant others to finish shopping or whatever are they doing, or simply for getting on track with daily gossip. He will gladly take a few minutes to prove that Slovenes indeed are not as reserved as some like to think and can be quite talkative and even friendly.

which was very interesting. Sometimes you get a person who is a bit lonely and wants you to keep him company, other times you get an unexpected history lecture...

A Fun Summer Job The men who played the role of the postman in the past were quite satisfied with the attention they got. “Well, I sure was the centre of attention on that tricycle,” said Peter Kogovšek, “People found my costume and my top hat quite amusing. Most of the experiences I had with people were positive and pleasant; you get to talk to people from different countries,

The postgirl with Ljubljana mayor Zoran Jankovič

The majority of tourists wanted me to strike a pose with them for a photo; that was the inevitable request.”

His colleague, Boris Črne, agrees, “I noticed that middle-aged people were the happiest to talk to me, they were bemused by role.

The evenings in the centre were packed, so many people strolling around it was difficult for me to get through with my tricycle. No surprise, because there was live music on every corner, the smell of grilled corn wafting through the warm summer air… Many tourists said Slovenia is a really hot tourist destination now, because it’s so beautiful and different. I agree, of course! Funny thing: I thought that by the end of the summer, people would be bored with me, but no, every day was a new day with new curious people, and this really lifted my spirits in that summer heat...

It was a very satisfying job, I have to say.”

The postman will tend to your needs this year as well, every day from 9am to noon and 4pm to 8pm. In the case of rain, his classy tricycle will be replaced by an umbrella, large enough to welcome at least two tourists.

EVENTS 49 Exhibition

Emona: Myth and Reality May 18 – Dec 31, City Museum, Ljubljana The exhibition Emona: Myth and Reality provides a comprehensive overview of the Roman city of Emona, built two millenniums ago on the site of the present-day Ljubljana.

Learn about the city’s birth, life and decline, the everyday life of its residents, and the heritage they left behind. The exhibition shows the history of Emona and explains interesting facts about Roman times.

Including comparisons with the city’s life today and various interactive displays, it offers an opportunity for viewers to form their own impressions of what life was like two millenniums years ago.

Exhibition

Art critics’ choice May 24–Jun 14, Cankarjev dom, Ljubljana, no admission The world of Weinberger’s images is a world of small dreams, pushed to the edge of known artistic expression, but it is at the forefront

with its message. This surreal, but also magical and everyday world talks to us with a language which fuses computer content with scenes that are fairly stereotypical. The painter joins these two different aspects into a whole with great imagination. The final message is convincing and whole, even though the works are made up of fragments.

how delusive the superiority of our own civilisation is.

Photography

The end of the season will give us something different. Lynx in Kemo were forecasted to become big.

Despite the physical height of one and the amazing voice of the other, it was still dubious. It didn’t seem possible that such unconventional, deep and lyrical drum and bass could propel someone amongst the stereotypical entertainment hot shots. Did Lynx have anything to offer after the influential piece ‘Disco Dodo’? The truth is they’re getting better with every album and pay even more attention to detail.

The Vanishing World May 25–Jun 27, Cankarjev dom, Ljubljana, no admission During his studies of sociology, history and anthropology, Marko Lakovič had already intensively explored the issue of the disappearance of traditional tribal communities and their cultures in the area of Central and Southwest Asia, the Himalayan region, and several African regions. A selection of prints of traditional cultures in the ethnic groups of Asia and Africa (mostly portraits) aims at clearly demonstrating that our exterior is merely superficial, and how close to one another we could have been. Deplorably, all the mistakes in our contemporary and recent history have not taught us how fragile our existence can be, and

Electronic

Tabassco – Lynx & Kemo Jun 5, 11pm, K4, Ljubljana, EUR 7–10

player. He left his mark by working in Šarlo Akrobati, the most important new wave band in the former Yugoslavia. Dnevi discipline (Days of Discipline) consist of an exhibition of Koja’s artistic work – big formats for his album covers, posters and other creations, the Slovene premiere of a musical documentary on the Belgrade musical scene, Koja’s DJ programme and the concert of Slovene band Disciplin A Kitschme.

Hard rock

Deep Purple

Exhibition

Dnevi discipline Jun 7–17, 8pm, Kino Šiška, Ljubljana, EUR 16–19 Koja is a legendary artist, songwriter, singer and bass

Jun 7, 8pm, Križanke, Ljubljana, EUR 45–55 Deep Purple is one of the biggest names in rock music to have ever graced the planet. Their philosophy has pretty much always been

June 2010

50 EVENTS

The Slovenia Times Recommends

Youngblood Brass Band Unleashing new music from the USA to the rest of world.

Youngblood Brass Band destroys convention. They are focused on creating consistently progressive, acoustic, groundbreaking music, employing whatever sonic means necessary to do so The have performed in many countries and at some of the most prestigious music festivals – Roskilde, Lowlands, Pukkelpop, Glastonbury, Womad, etc. They have secured their status as an incredible group to see live whether it’s in an intimate small club setting or an international festival stage.

Their debut album Unlearn was independently released in 2000 and featured collaborations with rapper Talib Kweli (which spawned the underground smash single “Ya’ll Stay Up”), Mike Ladd, DJ Skooly and ex-Frank Zappa vocalist Ike Willis. The attention garnered from the album lead to a record deal with Ozone Music, the revolutionary avant-hiphop label.

Their highly anticipated follow-up in 2003 Center: Level:Roar was released to international acclaim and had them trekking around the globe to nearly sold out audiences everywhere.

Youngblood are now primed for an even bigger stage with the launch of their record label Layered Music.

With a brand new record label, flourishing local arts collective, DIY punk aesthetic, worldwide educational

Metal

Bleeding Through aim, incredible stage performances and plenty of raging ambition, the band is poised to become a torchbearer for a new kind of artist – one implanted in schools around the world by the good grace of public radio and held in high regard by new music aficionados the world over.

Before Youngblood Brass Band a Slovenian band Moveknowledgement will take to the stage.

Moveknowledgement is a five man band from Slovenia that plays a unique fusion of hip hop, dub, rock, funk and electro.

June 11, 9pm, Kino Šiška, Ljubljana, EUR 10–13 the same – a warm Hammond organ sound, big guitar riffs and the interplay between those two instruments. Add to that one of the best rock rhythm sections and the legendary vocal of Ian Gillan and you have a recipe for success.

For over 40 years they have been exciting audiences all over the worlds, particularly with timeless hits like “Smoke on the Water”, “Black Night”, “Woman from Tokyo”, “Child in Time”, “Highway Star” and “Hush”.

Chanson

La vie en rose Jun 7, 8pm, Cankarjev dom, Ljubljana, EUR 12–30 La vie en rose 2010 will commemorate several anniversaries. Besides the tenth anniversary of the festival and the 15th season of Café Teater, this will also be a celebration of the 80th birthday of the giant of Slovene chanson and popular music Mojmir Sepe – Moses. The programme will rely only on the works of Mojmir Sepe. His songs will be performed by young and experienced singers, such as Alenka Pinterič, Lado Leskovar, Radojka Šverko, Vesna Zornik, Severa and Gal Gjurin, Ana Bezjak, Ana Pupedan, Aphra Tesla, Azra Alibegić, Brane Završan, Jette The Slovenia Times

that he first won renown for his folk protest songs. Since the end of the 1980s he has been on a continuous tour, which has included Ljubljana twice before.

Bob Dylan put an indelible personal stamp on his time. Having begun his career in the early 1960s under the influence of the giants of American folk music Woody Guthrie and Elvis Presley, and risen to fame with his socially conscious protest songs such as Blowing in the Wind, The Times They Are a-Changing and A Hard Rain’s a-Gonna Fall, he swiftly developed into one of the greatest music artists of his time.

Ostan Vejrup, Kvinton, Matevž Šalehar – Hamo, Tabu, Nina Strnad and Sladcore.

Classical

The King’s Singers Jun 9, 8pm, Cankarjev dom, Ljubljana, EUR 10–30 The world-renowned English vocal group, The King’s Singers, will perform for the final evening concert of the Chromatics subscription season. This influential group of singers is comprised of six men and has been in existence since 1968. On average they perform 125 concerts a year, and in 2009 they received a Grammy Award for their CD entitled Simple Gifts. The concert program will include a number of vocalorchestra hits; both they and the RTV Slovenia Symphony Orchestra will be directed by the Bulgarian conductor, Rossen Milanov.

Punk

Pankrti Jun 10, 9pm, Gala hala, Ljubljana, EUR 10–12 Pankrti is one of the biggest rock names from the former Yugoslavia and the first punk band from that

area. In 2006, they had their reunion concerts, the first of which took place at exactly the same place as this concert. The legendary Pankrti will surely give a show full of passion and intensity and will probably include great hits like Lublana je bulana, Lepi in prazni and Osmi dan. This show will mean the end of their current tour, entitled “Nč se ne premakne” (Nothing is moving).

Folk rock

Jun 16, 9pm, Gala hala, Ljubljana, EUR 18–22 Bleeding Through is a Californian metalcore band, which has been active since 1999. Even though they consider themselves to be a pure hardcore act, we can sense the influence of many bands from other genres in their music as well, like At The Gates, Slayer, Cradle of Filth, Integrity, Earth Crisis and CroMags. They were also influenced by some thrash metal bands like Testament, Exodus, Pantera, etc.

With the arrival of the female keyboard player Marta, the band also delves into the territories of industrial and Gothic music.

Classical

Slovenian Philharmonic Orchestra Jun 17–18, 7.30pm, Cankarjev dom, Ljubljana, EUR 8–26

Bob Dylan Jun 13, 8pm, Dvorana Tivoli sports hall, Ljubljana, EUR 55 Bob Dylan, known as a poet and singer of many faces, has been an active artist for as much as half a century. It was in the 1960s

Ernest Chausson’s only Symphony is thematically and formally constructed after the model of Franck. Thus it is not surprising that it was first performed in Paris (in 1891) at a concert organised

by Franck’s music society, Société national de musique. Strauss’s youthful work, the popular Horn Concerto No. 1 in B-flat major, from 1882, entirely reflects the romantic tradition. The composer’s father was a highly regarded soloist on this instrument, thus the solo part is written so as to make optimum

Thursday, 17. June 2010 at 21:00

DISCIPLIN A KITSCHME Disciplin A Kitschme is a band that revolutionised the sound of urban music in Serbia, Yugoslavia and elsewhere, and taught the Belgrade new wave a lesson in funk, soul, jazz and humour.

It is one of the most progressive and, as far as sound goes, uncompromising groups from the former Yugoslavia. This is partly thanks to its frontman Koja, who largely influenced the sound of new wave and rock of the early 1980’s, the 1990’s’ and of today.

Price: 16 EUR / 19 EUR walk-up

52 EVENTS

The Slovenia Times Recommends

Ljubljana Jazz festival The 51st edition of traditional jazz festival again introduces a set of top musicians.

The 50th edition of the festival served up with some moments which will be hard to top – it’s not every day that John Zorn comes to Ljubljana. This year they have made another epic effort to bring us some great jazz names. Last year, the final day of the festival was truly something to behold, with John Zorn’s experimental flavourings putting the crowd into a mad frenzy. This year, they decided to go down a mellower route, with several great headliners.

The first big name to grace the stage will be Pat Metheny, one of the most versatile jazz musicians you could ever hope to encounter. His career has seen him move from strength to strength, as he occasionally tried to fit all of his ideas into one piece of music, more often than not to great success. In his lifetime, he has put out albums as a solo artist and in groups.

He has played with some of the biggest jazz names around. Let’s just name a few: Jaco Pastorius, Dave Holland, Joni Mitchell, Anthony Braxton, Chick Corea, Jack DeJohnette, Herbie Hancock, etc. His style sometimes has an experimental flair, but he never sacrifices melody for pure avant-garde bliss.

The next jazz giant to step on stage will be Joe Lovano, a splendid jazz saxophonist, alto clarinet player, flautist and drummer. His more conventional approach has brought him a Grammy award. He has been on more than fifty albums as a recording artist. His compositions will be accompanied by the Big Band of the Slovene Radio and Television.

The same evening will feature American jazz singer, pianist and songwriter Patricia Barber. Her approach is again more mainstream, mixing elements of tra-

ditional jazz and blues, but that doesn’t mean the music isn’t just as intense. She often does cover versions of classic rock songs and puts a nice original twist on them.

The other performances include Chucho Valdés & Afro-Cuban Messengers, Kip Hanrahan & Beautiful Scars and Mulatu Astatke & The Heliocentrics. This festival will most certainly be a different kettle of fish than the last one, but fans of jazz have nothing to fear, as this year promises to deliver some outstanding performances yet again.

The festival, which will take place at several locations in Ljubljana, with the biggest events going on at the Križanke summer theatre.

Jun 29 – Jul 3, various locations, Ljubljana use of the colour of the horn, with an emphasis on virtuosity.

Metal

Pop

Arkona

Vaya Con Dios

Festival

Jun 19, 9pm, Gala hala, Ljubljana, EUR 12–15

Jun 23, 8.30pm, Križanke, Ljubljana, EUR 35–39

FACK 2010 18 June, Old Castle, Celje The second edition of Celje’s Alternative Culture Festival promises a variety of workshops, exhibitions, performances and concerts associated with local alternative culture. Visitors have the oppurtinity to enjoy the beatuful scenery of an old medieval castle overlooking the town.and get to know the works of many talented local artists, performers and musicians.

Admission free until 4pm.

One of the biggest representatives of the pagan metal scene, Arkona from Russia, is coming to Slovenia for the very first time. Through their music they are trying to present the Slavic culture, craftily blending metal and Slavic folklore. Their albums usually include a whole host of folk instruments and if we get just a taste of this at the Ljubljana show it should be a real treat for the ears. The evening will fittingly be kicked off by the Slovene folk rock attraction Brezno, which, like Arkona, also features a female vocalist.

Entries into the yearly activities will be possible from August 25 to September 4, 2010.

The World Book Capital will revive the gorges of the Ljubljanica river in a special way; with the works of the children from Pionirski dom. www.pionirski-dom.si

Pionirski dom – centre for youth culture, Vilharjeva cesta 11, 1000 Ljubljana Tel.: +386 1 23 48 200, fax: +386 1 23 48 220, tajnistvo@pionirski-dom.si

The Slovenia Times

Electronic

Frankie Knuckles Jun 24, 11pm, Inbox, Ljubljana Frankie Knuckles is an American DJ, record producer and remix artist. He played an important role in developing house music (an electronic, disco-influenced dance music) as a Chicago DJ in the 1980s and he helped to popularize house music in the 1990s, with his work as a producer and remix artist. In 2005, Knuckles was inducted into the Dance Music Hall of Fame for his achievements as a DJ. Knuckles has had a succession of number one dance hits in America and is deservedly considered to be one of the giants of electronic music.

Pop

New Young Pony Club Jun 24, 9pm, Kino Šiška, Ljubljana, EUR 13–15 The hot New-Wave-DanceElectronica-Pop-Rock sensation from England is coming to Slovenia. New Young Pony Club is a London quintet, which draws from the heritage of post-punk and new wave and they’re also not ashamed to include some pop aesthetic and dance rhythms. Soon after the formation of the band, the press called them the champions of ‘nu rave’ or ‘disco punk’. The line-up with three girls (especially the singer, who also writes most lyrics) is very provocative and sensual.

Rock

Billy Idol After three years and two sold-out concerts in Križanke, the popular band Vaya Con Dios is returning to Ljubljana. The Belgians delighted us in the 1980s and 1990s with hits such as What’s a Woman, Don’t Cry For Louie, Nah Neh Nah and Puerto Rico. They are preparing an evening of first-class entertainment with old and new hits. Their show will again contain elements of Latin music, jazz, rock, flamenco, blues, gypsy music and other rhythms. All of this will be spearheaded by the unique voice of Dani Klein.

Jun 24, 8pm, Dvorana Tivoli sports hall, Ljubljana, EUR 49 The most famous platinum rebel rocker started his musical journey more than three decades ago in the English punk rock band Generation X, however he was most famous after he went his own way. In the 1980s, he brought us some of the biggest hits in rock.

Songs like White Wedding, Rebel Yell, Dancing with Myself, Hot in the City, Flesh for Fantasy, Cradle of Love, Eyes without a Face, Don’t Need a Gun, LA Woman became anthems and turned him into a household name.

EVENTS 53 Punk

Anti-Nowhere League Jun 25, 8pm, Gala hala, Ljubljana, EUR 10–12 Anti-Nowhere League is an English punk band formed in 1980 by lead singer Animal (Nick Culmer), rhythm guitarist Magoo (Chris Exall), Bones (Tony Shaw) on drums and Baggy Elvy on bass.

After acquiring a somewhat cult status in the 1980s, they stopped performing for a while, but made a comeback in the 1990s. The band went through several line-up changes, with Animal acting as the binding glue between the different incarnations. Going on before them will be the Croatian punk band Eksodus, which also has a long history behind it.

Disco punk rock

Gossip Jun 25, 8pm, Križanke, Ljubljana, 39 EUR The American band Gossip are distinguished by their original mixture of soul, funk and punk rock and the charismatic performance of their singer Beth Ditto, famous not only for her voice and original

The Secret of Painted Shadows Urška Nina Cigler is a younger generation artist who expresses herself through artistic and photographic media. The two seamlessly intertwine in her work, co-existing and complementing each other.

Cigler, a delicate seeker of shades and colour relations is a very intimate, exquisite and fine artist.

When she takes her camera and looks for certain motifs in specific places such as the pale walls of the old seaside houses, she is already deciding on the painting she will make from that photograph. This way a special bond exists between the photo and the painting at all times.

Her current exhibition “The Caught Shadows” seems like a photographic sketchbook of paintings. They feature subtle, irrational narratives that mostly pass into the abstract.

The artist is interested firstly in the basic structure of the photographic motif, then the image surface and its texture which is achieved with stratification of applied colours – layers of colour are applied and erased until she reaches the desired effect. The spaces in the paintings are not limited; the art does not talk of coming and going but rather of the state of things.

Cigler’s paintings reflect the elements of abstraction, but in themselves also reveal the expressive possibilities of more or less complex narratives. The paintings

do not show stories told by someone. Instead the viewer must create new stories based on what has been seen.

The exhibition reflects a great power that easily attracts us, even before we grasp the mystery of the painted shadows.

Jun 19 – Jul 16, Furlan Gallery, Ljubljana - Črnuče (www.galerija-furlan.si)

54 EVENTS

Festival Lent 2010 Can you imagine anything more pleasant than listening to a concert under the starry summer sky? Do you feel excited about a classical concert in a 400 year old synagogue? What about some jazz rhythms? Maybe a performance on the floating stage on the river Drava will attract your attention. All this and a lot more makes up Festival Lent.

We believe that this year’s festival will for the fifteenth time attract a lot of visitors, especially because of its top-quality program. A variety of more than 400 performances and half a million of visitors make “Festival Lent” one of the biggest festivals in Europe, moreover it is also known across the pond in America. This multicultural festival that has its origin in the folklore festival “Folkart” has received several awards, among them 40 awards from The International Festival and Events Association (IFEA).

To date, many internationally acknowledged musicians have performed at Festival Lent, particularly at Jazzlent. Along the banks of the river Drava, stars such as Ray Charles, B. B. King, James Brown, Jose Feliciano, Stephane Grappelli, Eric Burdon & The Animals, David Byrne, Joe Zawinul and many others have attracted numerous visitors.

is greatly due to the efforts of Gotan Project, a band based in Paris. They are the most successful and popular ambassadors of the musical genre called electrotango. Gotan Project was founded in 1999 by Philippe Cohen Solal, Eduardo Makaroff and Christoph H. Mueller. The name Gotan itself is an anagram of tango. The project is committed to Argentine music, which the trio moulded into an original combination of tradition and electronic music with its original approach. This year they released Tango 3.0 and are thrilling audiences wherever they go.

Expect a variety of concerts of classical, jazz, popular and ethno music, evenings with singers-songwriters, chanson evenings, theatre and dance performances, drama and puppet theatres, creative workshops for children, sport performances and much more.

Jun 25–Jul 10, various locations, Maribor

style but also her comfortableness with her big body, which made her a fashion icon. Gossip rose to fame with their third album, Standing in the Way of Control (2006), and its namesake hit single. Last year saw the release of their fourth album, Music for Men.

Progressive metal

Dysrhythmia Jun 26, 10pm, Klub Gromka, Ljubljana Dysrhythmia is an American instrumental progressive metal band formed in Philadelphia, Pennsylvania in 1998. The band’s music combines avant-garde elements of progressive rock and jazz with heavy metal. They are currently located in Brooklyn, New York. Thus far, they have put out six albums, the last one coming in 2009. Their show should appeal to fans of more challenging and unconventional sonic attacks.

Tango

Gotan Project Jun 27, 9pm, Križanke, Ljubljana, EUR 45–55 The global enthusiasm for tango The Slovenia Times

Photography

Jazz Photography Jun 28–Jul 19, Cankarjev dom, Ljubljana, no admission In addition to the musical side of the 51st Ljubljana Jazz Festival, the organizers will also present two exhibitions of jazz photography, which traditionally coincide with the festival. We will see the exhibitions “Jazz Photography” and “Dobra bera”. Among the photographers on display, we will be seeing the works of Maruša Bertoncelj, Petra Cvelbar, Iztok Vidmar, Boštjan Lah and Marko Banjac. The exhibition “Dobra bera” will be put together by one of the most renowned Slovene musical photographs, Žiga Koritnik.

Classical

Giacomo Puccini: Madama Butterfly Jun 28–Jun 30, Cankarjev dom, Ljubljana, EUR 15–30 Madame Butterfly is an opera in three acts by Giacomo Puccini.

Puccini based his opera in part on a drama by David Belasco. The opera was supposedly based on events that actually occurred in Nagasaki in the early 1890s. The story talks about an American naval officer who marries a geisha in Japan. They spend some time together, she adopts the western way of life and then he has to return to sea. She is pregnant, gives birth to a son and waits for her husband to return. She

EVENTS 55 waits for three years and when he finally comes back, he has an American wife. At the end, the geisha takes her own life.

Giacomo Puccini fused his typical style with some oriental flavours, which makes this one of his most special works.

Metal

Megadeth Jun 29, 8pm, Kino Šiška, Ljubljana, EUR 29

Film

Dance – Lest you Forget!

An international coproduction starts filming this spring in Ljubljana, with Slovenian theatre legends Minu Kjuder and Boris Cavazza in leading roles. The Maiden Danced to Death, a Hungarian-Slovenian-Canadian coproduction, is due to premiere at the prestigious Berlin International Film Festival in 2011.

By Martin Pogačar

T Megadeth need no introduction in the world of music. They are one of the biggest names in metal history. They were established in 1983 by charismatic guitarist/vocalist Dave Mustaine, after his departure from Metallica. After angry speed/thrash metal releases, they finally made it big with the albums Rust in Peace (1990) and Countdown To Extinction (1992), where Megadeth started becoming more accessible. Last year they released a comeback album with Endgame and now they’re coming to Slovenia – with Dave Mustaine and original bass player David Ellefson also back in the fold.

Experimental

Kanda Kodža i Nebojša Jun 30, 9pm, Gala hala, Ljubljana, EUR 10–12 Kanda Kodža i Nebojša have been present on the musical scene ever since their start in 1991 and are without a doubt one of the most noteworthy bands from the former Yugoslavia. Quite a few people know their most famous albums “Igračka Plačka” (1998), “Become” (2000) and “Prekidi Stvarnosti” (2005).

Their trademark is their relaxed reggae/rock/acid-jazz sound and the specific vocal of front man Oliver Nektarijević. They are currently working on a new record, so the Ljubljana appearance will give you a chance to listen to some old favourites and some new material as well.

he Maiden Danced to Death is written and directed by famous Hungarian director Endre Hules who has recently completed the multi-award winning feature film Torn From the Flag. Hules’ heritage is impressive. A directing alumnus of the Hungarian National Academy of Theatre and Film in Budapest and a Producing Fellow at the American Film Institute in Los Angeles, he has directed numerous productions at the National Theatres of Hungary, the Biennale de Paris, the Shakespeare World Congress, as well as film, television and radio projects. He also spent time in front of the camera, acting in Hollywood productions including Apollo 13, Angels & Demons, Se7en, and 24.

The Maiden Danced to Death is the story of emigrant Steve who returns to Hungary after 20 years in Canada. He decides to put up a dancing production with his brother, Gyula, who has a barelysurviving dancing group. 21st century Hungary is, however, is very different to the one Steve left in the late eighties and the two brothers clash over issues of art and finance as they prepare to stage the dance drama based on the ballad Devils’ Dance of Death.

Let’s dance Hules says dance and music is key in the film. “[It represents] the common roots of the brothers, both geographically and artistically and is a means of their self-expression and their vehicle to renew a long-lost relationship,” he says. “The music is the past and the future. It is our central metaphor: ‘Life is a dance, but you don’t get to choose the music.’ You can’t choose the circumstances you’re born into, but within those circumstances it is your responsibility to choose how you ‘dance’.”

For Steve, of course, that dance involved leaving his motherland.

The issue of emigration is an im-

Boris Cavazza, the leading role in the forthcoming cinema attraction.

portant one in the film. “I was always intrigued by how the emigrant community can deepen its connection to its roots and the mother country take advantage of this valuable resource,” explains Hules.

Slovenian links The story may be set in post-socialist Hungary but it has strong links both to the socialist period and to Slovenia. We learn that the main protagonists’ parents were forced to flee Slovenia during the time of Cominform in the early post-World War Two years. Hules says that “reconciliation with the socialist past and the problems of transition are at the centre of the film.”

The Maiden Danced to Death is produced by Cinema-Film Ltd, one of the first Hungarian independent production companies.

It is also one of the most prolific, today producing up to four feature films a year as well as various programmes for national and international television. Also involved in the production is Canadian company Quiet Revolution

Pictures, a motion picture development and production company aiming to deliver high-quality entertainment for worldwide sales.

The final partner is a Slovenian one. Casablanca Productions was founded by Igor Pediček and Boris Jurjaševič and has produced several feature films including Blues for Sara, Alpenpolka, Three Contributions to Slovene Madness (Omnibus), Loves of Blanka Kolak, A Waltz For 4 and Queen of Hearts.

The company also makes short films and animated series. The film is supported by MediaPlus, the Motion Picture Foundation of Hungary, the Slovenian Film Fund and Eurimage.

The Film Fund and Casablanca Productions are not the only links the film has to Slovenia. Executive producer Nina Marucelj and scenographer Duško Milavec are both Slovenes and all interiors are being shot at Viba Studio. Perhaps most importantly, the roles of the mother and the father are played by Minu Kjuder and Boris Cavazza, renowned Slovenian actors who distinctly marked the nation’s cinema and theatre.

June 2010

56 SPORTS

Saturnus Rally

The Legend Lives On It’s no overstatement to say that the Hella Saturnus Rally is a true legend. It might not seem this way today, but car racing in the socialist Yugoslavia of the late 1970s and early 1980s was far from taken for granted. The fact that the event has been organised every year since 1978, despite political and economic problems, also speaks volumes.

By Simon Demšar

I

n its early years, the rally was more or less an affair between small Yugoslav cars, but it gradually started to attract foreign teams. For spectators, just seeing Antonio Zanussi’s Porsche 911 in 1981, for example, was something special and worth coming for.

Brane Küzmič, who won the first event, followed by another three, was a true star of his time together with his Renault 5 Turbo.

Building on his success and reputation, he later became a safe-driving instructor and is still a highly respected motor sport and safedriving authority.

The Slovenia Times

The 33-year long association between the rally and the company Saturnus is also one of the longest in the history of Slovene sport.

Most people probably even didn’t (or still don’t) know what Saturnus actually is (a manufacturer of automotive lighting equipment), because it has been so closely related to the event that it became more of a synonym for the rally than its core business. When Saturnus was taken over by the German group Hella in 1997, it continued to support the event, which hasn’t always been the case in other similar takeovers.

This year’s edition took place in rapidly changing weather conditions between 7th and 9th May in Zasavje and around Ljubljana, with the first stage taking place at the speedway stadium in Ljubljana. It attracted 63 teams from the Czech Republic, Austria, Germany and Slovenia. The win went to Czech Vaclav Pech who won for a recordbreaking third time in a row. The winner said, “I really like this race.

The stages are much more technical than those at home.”

Organisers, fans and drivers concede that the rally has lost some of its edge – either because of the economic downturn or competition from other sports – but it nevertheless remains an icon.

Dušan Jeriha, who took part for the first time this year, said, “The Saturnus is a must for anyone who is crazy about fast cars. For us, it feels as enjoyable as spending two weeks in the Maldives.”

The rally has gradually climbed the international rankings, which in turn has attracted stronger and stronger teams. As a result, things have become increasingly difficult for Slovene teams. The last Slovene winner was Tomi Cilenšek in 2007. Since then, the rally has been dominated by Czech teams, who

claimed three out of the first four positions this year.

The only serious threat to the Czechs was Aleks Humar, who won the “Slovene part” of the rally, which also counted towards the Slovene national championship.

The Saturnus is currently ranked just below the European Championship status. Should the organisers be able to lift it to the European Championship level, the Saturnus might well again flourish as it used to in the 1980s.

Trivia Austrian Franz Wittman and Frenchman Philippe Bugalski are the only two participants of the Saturnus who also won a World Cup event.

Romana Zrnec, who was a leading contender in the Yugoslav Championship in the late 1980s, nearly became the only woman to win the rally. She was deprived of overall success in 1987 due to a broken turbocharger.

In 1989, Mohammed bin Sulayem of the United Arab Emirates took part with his works Toyota Celica GT4. Bin Sulayem is the most successful Middle East rally driver, winning the regional championship 16 times.

SPORTS 57

John Museeuw, cycling champion

There is Something about Franja During his active career between 1988 and 2004, Johan Musseeuw won a number of champion titles, including 11 World Cup races. Today, he is still involved in cycling promotion and in the production of his own brand of frames made from a combination of carbon fibre and flax. He was as impressed by the biggest Slovene cycling event, Marathon Franja; he collaborated with the organizers. The mutual respect resulted in naming the toughest of Franja’s courses the “Johan Museeuw classic.”

Mr Musseeuw, please tell us how your cooperation with Franja Marathon began?

My good friend Roberto Billato and the Slovenian racing team headed by Gorazd Penko invited me to participate in this wonderful cycling event, and then I was really honoured and proud when they asked me to add my name to this historical marathon : the Museeuw Classic within the Franja Marathon.

What are your impressions of the marathon?

I am really impressed by all the fans of cycling sport participating to this event without limits of age, sex or performance. So many lovers of cycling sport in one place is amazing. Slovenia is a small country but very well organized. It is nice to see young people involved in sport; cycling is so important for them probably also a reflection of the good job Mr. Penko and his staff did in the past. The Franja Museeuw Classic is particularly special because so much of the population is involved on this event... and you can feel it, connect

with them. Still for me, it was so hard to stay at the same level of all the best riders, so for this year I prepared myself better.

As a former champion cyclist, you probably have many offers and invitations...

As with all the former champion cyclists, we are still enjoying a nice time close to the lovers of our sport and we try to satisfy all requests; however, sometimes is not possible to please everybody.

Museeuw bikes are cutting edge in both design and technolo-

gy. How is the business going and what are your future plans?

Museeuw Bikes is working hard to develop more and more in terms of new technology (with our MFC tech), design with the help of our frame designer Roberto Billato and new products. We are now selling our bikes and frames in different countries around the world and we are improving our communication and marketing to assure support to our sales dept. We plan to introduce new products, not only for racing; however, they are still in early phases of development.

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The exhibition of the awarded children paintings “Ethnic outfits and the folklore of my people”: World traveller Benka Pulko and Mihajlo Lišanin, the exhibition author.

EVERY PICTURE TELLS A STORY

Mass quadrille of Slovenian high school graduates.

Opening of Goodlife Lounge Club at Ljubljana castle: Dada Jerovšek, Kaval Group with Mayor Zoran Janković. (Photo: Iztok Dimc)

National football team manager Matjaž Kek and captain Robert Koren with Miss Slovenia Tina Petelin.

Croatian pop star Severina at a concert in Križanke summer theatre.

(Photo: Mediaspeed)

ŠKIS market, the annual student event at Ljubljana’s Ilirija stadium.

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