The Slovenia Times 133 by Slovenia Times

INTERVIEW: Darja RadiÄ&#x2021;, Minister of the Economy

The Slovenia Times, Slovenian magazine in English, volume 7, number 133, EUR 4,80

October 2010

The Right Time to Invest The movers and shakers of Sloveniaâ&#x20AC;&#x2122;s real estate market are shaping up for the good times

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CONTENTS

October 2010

Business Partners

POLITICS

8 Local elections 2010 9 Impressions of Bled Strategic Forum 12 15 16 18 20 24 25 27

ECONOMY Latest results show unexpected recovery Disagreements over public sector pay freeze Interview: Aleš Justin, president of OpenBlend society Maribor airport’s untapped potential Young Executive Society: Always one step ahead

FOREIGN DIRECT INVESTMENT The company behind the popular EQ.7 coffee machine Interview: Darja Radić, Minister of the Economy

DIPLOMATIC PAGES

Najmanjša dovoljena velikost logotipa je 25 mm.

September events from embassies in Ljubljana

Real Estate special 29 32 34 38 42 43 44 48

Overview of Slovenia’s property market Real estate tax promises to bring some order Troubled construction sector needs to expand abroad Controversy over Ljubljana’s new spatial plan Property market in Bovec soldiers on Quality has replaced quantity in Kranjska Gora The time is right to invest in Pohorje Regional overview: Serbia, Croatia and Montenegro

56 58 60 62 64 66 68

LIFESTYLE

T I P O G R A F I J A & I LU ST R A C I J A

Avtorja: Domen Fras Maja B. Jančič

Naročnik: Skai Center d.o.o., Šmartinska 154, Ljubljana

Projekt: Celostna grafična podoba Kristalna palača

Faza: Projekt za izvedbo

Datum: Oktober 2008

SLOVENSKA CESTA 5, SI–1000 LJUBLJANA +386 1 426 80 57 /8 E: mail@aparat.org T/F:

Experince: Shopping at XYZ Lifestyle news Fitness: Moving indoors Ljubljana marathon countdown Experience: Sense Welness Spa Dine with Style: Cafe Central Portorož House of Experiments tackles diabetes

CULTURE The Event Guide

75 76 77

SPORTS

Every picture tells a story

Whitewater Slalom World Championship Ready for Euroleague Basketball Season Sport events

October 2010

Vsebina: Barvni Logotip angleška različica

PANORAMA

source: STA, Slovenian Press Agency

Judgement Day

Three people drowned, hundreds evacuated, millions in damage: The aftermath of massive massive floods that hit two thirds of the country. The heavy rain that hit Slovenia on Friday, 17 September grew even stronger in the night and continued throughout Saturday, causing several rivers to burst their banks and serious flooding above all in areas around Celje, Zagorje and Žiri as well as in Ljubljana and Ajdovšćina. Rivers around Slovenia continued to swell in the following night with the worst flooding reported from the area around Krško. The raining stopped by the noon on Sunday but the southeastern regions, remained under high alert as Slovenia’s largest river, Sava, continued to rise. A large area of southern Ljubljana was also under water as cleanup efforts started

Photo: Maja Kaplan

only after the rain quit. Among the hardest-hit areas was also the town of Laško in eastern Slovenia, which also saw the biggest number of landslides. PM Borut Pahor visited the affected areas and announced far-reaching flood protection measures and a crisis meeting. The first estimates of the damage are substantially exceeding earmarked government funds, the Civil Protection and Disaster Relief Administration announced that final figures can be expected in two months. Meanwhile two Slovenian MEPs urged solidarity in the European Parliament. Jelko Kacin (ALDE/LDS) and Tanja Fajon (S&D/SD) said the the country would probably ask for EU aid. European Regional Policy Commissioner Johannes Hahn said that the European Commission was ready to provide the aid.

Diversification Plan The Ministry of Higher Education, Science and Technology has put forward a higher education programme for 2011-2020 whose main goals are to diversify, internationalise, improve the quality and accessibility of education. Minister Gregor Golobič highlighted plans for a two-tier higher education that would enable the creation of independent polytechinics. He believes this would satisfy regional needs for higher education centres. Polytechinics would teach technical sciences, while universities would remain in charge of university programmes and doctoral studies. A new financing regime would bring in a lot of funds, about EUR 900m in additional money until 2020, that would enable higher education regardless of social standing. The first two levels (Bachelor’s and Master’s Degree) will remain free

of charge, provided reasonable duration. Ministry adviser Janja Komljenovič emphasised greater autonomy. Education institutions are to gain more influence on the choice of students, especially at the second and third levels, as well as more freedom in staffing policy and greater flexibility would enable easier hiring of quality staff. According to the adviser, one of the aims is that a fifth of the students would become internationally mobile and a fifth of the programmes would be carried out in cooperation with foreign higher education centres. The new, 10-year plan replaces 5-year plans, because the authors believe that five years is too short a period for substantial changes. The plan’s implementation will be checked in parliament every two years. Minister Golobic expects a heated debate but is intent on fighting against “the comfortable status quo”.

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Weekly Mladina reported that former Prime Minister Janez Janša was among several people named in the latest batch of charges brought by prosecutors in relations to Slovenia’s biggest defence deal. Janša for his part rejected playing any part in the contract with Finnish defence company Patria. Alongside Janša, who prosecutors say solicited a bribe for his support of the project, the charges also name Democrats’ (SDS) official Joze Zagožen, Ivan Crnkovič, the boss of Rotis company selected by Patria to handle the contract in Slovenia, and Anton Krkovič, a close associate of Janša, Mladina reported. Mladina added that the police and prosecution failed to find direct evidence linking Jansa to bribes. Instead, the case is based on a significant amount of indirect evidence, including a money distribution scheme found on the computer of Crnkovič and dozens of e-mails and text messages. While the state prosecution did not confirm the news for Mladina, Janša responded vehemently to the news, saying that the charges amount to “disgusting abuse of the prosecution’s powers”. He suggested this was an attempt to divert attention from the incumbent government’s failings. Meanwhile, the chief Finnish investigator in the case, Kaj Erik Bjoerkqvist, that the investigation in Finland was nearly completed and that the findings would be sent to the prosecution. According to him, 13 Finnish citizens are being treated as suspects. While Bjoerkqvist did not wish to comment on the charges reportedly filed against Janša in Slovenia, he said that Janša had also been among the 10 or so people that Finnish investigators had interrogated as suspects abroad during the preliminary investigation.

Editor-in-chief Jaka Terpinc editor@sloveniatimes.com

Marketing/Advertising

Deputy editor Maja Dragović maja.dragovic@sloveniatimes.com

Irena Kržan irena.krzan@sloveniatimes.com

Assistant editor Claire Read Sub-editor Terry Troy Jackson, s.p. Art director Maja Kaplan (design@domus.si) Front page by Jaka Terpinc

The Slovenia Times

Janša Facing Trial?

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UNDER THE PRESS A Regrettable Mistake

The Colours of Transparency

News that there is no Slovenian representatives among the 29 heads of EU embassies that the EU’s High Representative for Foreign Affairs and Security Policy Catherine Ashton appointed on 15 September sparked serious discontent among the Slovenian political elite. Foreign Minister Samuel Žbogar expressed deep disappointment over Ashton’s failure to appoint any of “the two excellent Slovenian candidates” in the first round of appointments to the EU’s emerging foreign service. He expected the first round to be more balanced from the geographical aspect and regretted that Ashton had paid “too little political attention to the interests of small new member states”. President Danilo Türk also issued a strong broadside against the EU’s bureaucracy, speaking of a “lack of sensitivity to realistic needs of countries such as Slovenia”. Slovenia now has “all the reasons not to trust the European apparatus to the same degree as we have so far”, he added. PM Borut Pahor on the other hand said he was confident that Slovenian diplomats would yet fill important positions in the EU’s foreign service.

Former Interior Ministry State Secretary Goran Klemenčič was appoined the new head of the Commission for the Prevention of Corruption to succeed Drago Kos. President Türk explained his saying Klemenčič was an experienced legal expert, especially in the area of internal affairs. He also appointed Jože Končan and daily Dnevnik journalist Rok Praprotnik his deputies. While the coalition parties agreed to Türk’s choice, the senior opposition Democrats (SDS) said the new anti-graft team was a “guarantee for the protection of the current government, its supporters and their own corruption”. This reportedly prompted Končan to give up the post. He said that when he applied for the job he wanted “to work with experts who wouldn’t be burdened by politics.”

I propose the government donates the vessel to the international organisation Greenpeace, which would rename it to Rainbow Warrior Triglav. I’m sure the ship will do more good in the hands of the international environmental organisation than it will splashing in our seas. Being a military ship it would make it easier to cope with whale hunters and other ships, who Greenpeace attempt to obstruct from causing damage to our common sea. Social Democrats MP Luka Juri describes his proposal to turn “the biggest miss in military purchases into the most globally recognised and respected environmental move in the history of Slovenia”

Photo: BOBO

Corruption

Photo: BOBO

Diplomacy

Enivronment

Before it gets too late A group of environmental NGOs has launched a campaign to promote the adoption of legislation in Slovenia promoting a broad and rapid switch to a low-carbon economy. Dubbed “Act Now!”, the NGOs say that the sooner the government acts in promoting the switch to green technology the better and cheaper for the economy. The group, which includes Greenpeace as well as Slovenia’s Focus and Umanotera, therefore called on the government to promote ambitious goals in tackling climate change in legislation that is currently being drawn up. The groups agree that a current legislation proposed by the government, which has been put to the public for debate is a suitable basis, but lacks ambition.

People

Farewell, Supercentenarian The oldest Slovenian, 110-year-old Katarina Marinic, died at the Nova Gorica retirement home, where she had spent the last 13 years of her life. She became the only Slovenian to make it on the list of supercentenarians, people who live beyond 110. The list of verifiable living supercentenarians now includes 79 names. Marinic was in good health up until two months ago, when her health started deteriorating. Indeed, on her 110th birthday she was still able to walk unaided and make her own bed. Born in 1899 in Deskle, a village on the banks of the Soca river in western Slovenia, and fled her hometow when heavy fighting began on the Isonzo (Soca) front, one of the biggest theatres of war in WWI.

Ninety-five per cent of university students cannot write a text [themselves]. It’s all just copy-paste. University is becoming Google university. Recently we started using software which verifies the authenticity of essays and I was shocked – only two essays weren’t copied, meaning the program didn’t find a text source for them on websites… But the guilt is on our side as well. I’m afraid that professors don’t read through the majority of essays as well as dissertations. Every generation has a couple of fine students but it has all became one long assembly line. Anonymous university professor in Dnevnik, commenting on the banality of studying at university

In socialist times institutional organs took care of social and labour rights. The key difference however was there was no massive motive for it in the former regime: profit... Today everyone has a motive, including the state, which keeps looking for possibilities to narrow down rights. All governments have done it. The main motive for violation of rights is greed and the troubles a company finds itself in when stuck. A typical case is Vegrad, whose ambitions were exaggerated. When a company gets into troubles, the violation of rights comes as a consequence. In such cases, sanctions don’t help. If the inspector punishes such a company because it didn’t pay its workers, it still wouldn’t result in workers receiving their salaries. Borut Brezovar, chief inspector for labour in Mladina, on greed, temptations and profit

A WORD FROM THE EDITOR

Cold times lie ahead

POLITICS

Local elections 2010

By Maja Dragović

Summer is well and truly over and the

cold winter months are looming in the distance. Some positive trends seem to be giving reason for hope and great Christmas presents. But at the same time sober voices are calling for caution and restraint, fearing a very cold and depressing winter lies ahead of us. September brought several signs that the lazy Summer months were over in Slovenia, not least a staggering number of conferences. Newspaper headlines featured a logistics conference here, a “how to attract institutional investors” event there and, of course, the Bled Strategic Forum everywhere. The last is inevitably regarded as the conference of conferences in Slovenia since it attracts a number of heavyweight guests – this year the great US General Colin Powell was among them. Listening to the movers and shakers of today’s world discuss our present and our future was undeniably fascinating. But it was curious that all the panelists on the opening panel – which centred on sustainable development and ways to save our planet, both environmentally and politically – spoke frequently about “global issues”. It didn’t seem to occur to any of them that global problems aren’t uniform and that there may not be a one-size-fits all solution. But the proof of that sad fact is the failed Kyoto and Copenhagen meetings. What the political elite of today seem to fail to acknowledge, at least publicly, is that we live in a world where Europeans are looking to replace cars with bicycles but people in China are looking to replace their bicycles with cars. There is an obvious discrepancy in the way different parts of the world see the future. How can we tell the Chinese to follow our steps in cutting down on global emissions, for example, when we have enjoyed the perks of petroleum energy products for almost a century? Perhaps we can’t. But we can tell our Greek friends that we are willing to help them out of the financial dire straits in which they find themselves. Slovenia is to pay Greece EUR104m as part of the bailout plan. That is all well and good – after all, we need to save the Euro – but it can’t help but leave a slight bitter taste in the mouth. The reason? Well, we have all read and are very much aware of the problem that Greece has with its grey economy – after all, it’s one of the major reasons the country is now in trouble. And yet it becomes harder to sympathise when facing the reality of having to pay cash for an eleven night stay in a hotel – without even getting a receipt. The lack of card machines in Lefkada’s shops and restaurants is truly staggering. It may be easier to pay by card in an undeveloped country than it would be in Greece. This is a land based on cash – and it’s one that is suffering accordingly. Cash is also at the heart of one of Slovenia’s current troubles. The government’s plan to freeze public sector pay has left the nation facing a strike from its civil servants (see article on page 15). This is another matter on which it can be tough to find much sympathy. While many workers in the private sector have to deal with the loss of their jobs and a distinct lack of future employment prospects – Merkur, Prevent and Vegrad are all cases in point – the majority of public sector workers, whose jobs are secure, apparently see fit to quibble over pay rises. Pay rises, it should be said, which were agreed before the financial crisis dramatically changed the economic landscape. Surely there is something seriously wrong when those in the public sector are complaining about their salaries while their private sector compatriots are wondering how on earth to secure a salary at all. It leaves the strike looking like a matter of pure selfishness. It’s not all bad news though. The half year results for companies in Slovenia have come out and some major firms have registered unbelievable increases in profit. Taken with the news that the economy is officially out of recession and the Ljubljana Stock Exchange is finally out of the red, this seems to imply there might be cause for economic optimism at last. But look closer and it’s clear that not all companies are flourishing. Insolvencies are piling up, the latest being that of Merkur, and the expert opinion is that there will be many more bankruptcies declared before the year is out. To modify a song title: it looks like it’s going to be a cruel, cruel winter. maja.dragovic@sloveniatimes.com

Decision Time It’s that time again: time for Slovenians to head to the polls and elect their local representatives. This fouryearly affair is the biggest election in Slovenian in terms of numbers of candidates and often throws up interesting races. This year is no exception. By Barbara Štor

Ljubljana: Janković will most probably remain the mayor, but can his list lose a majority in the city council?

n the second Sunday in October, thousands of Slovenians will head to their local polling station. They will be deciding on who should be on their local council, and who should represent their town as mayor. As always, they will have a lot of choice. In the last local elections, held in 2006, there were 25,000 candidates vying for local council seats – or, to put it another way, 1.25 percent of the Slovenian population. Almost a thousand candidates ran for mayoral seats. This year’s local elections will be the fifth held since Slovenia gained independence in 1991. The first were held in December 1994, when the country was divided into 147 separate municipalities. Sixteen years later, and the country has 210 municipalities – each and every one with a local council and a mayor. Interestingly, two areas are not taking place in electoral activities this year. In referendums held in November 2009, the people of Ankaran and Mirna decided to break away from Koper and Trebnje. The National Assembly therefore created two new municipalities but this act was later vetoed by the

National Council. As a result the Constitutional Court has stopped the execution of 2010 local elections in these two communities.

Striving for equality

Efforts have once again been made to ensure that there is gender equality amongst these candidates but with limited success. Quotas state that at least 30 percent of either gender must be represented on lists for local candidates but women are only just meeting that level – 33 percent of candidates in 1996 were female, but only 21.5 of elected candidates were women. Put another way, of 3,386 municipal councillors 728 are female. When it comes to the mayoral elections, matters are even worse. The share of women mayors stands at a measly 3.3%: among 210 heads of municipalities there were only seven mayoresses elected.

The rise of the independent

Women may be struggling to have an impact on local elections but independents are having no such issues. Since 1994 more and more non-party candidates have appeared and the last elections were marked by their unexpected

POLITICS

Bled forum

Generally Positive In late August more than 400 academics, politicians and businessmen from over 40 countries travelled to Bled. They were gathered in the north western Slovenian town for its fifth annual Strategic Forum. It is an event which supporters say is helping secure Slovenia’s place on the world stage but which detractors fear is still not as impressive as its guests. By Claire Read

Although there are 210 municipalities the primary focus is always on the big city municipalities, foremost Ljubljana and Maribor, where mayoral races attract extensive attention. Slovenia’s two biggest cities have the largest number of mayoral candidates in the October elections, with some high-profile names. In Ljubljana there are thirteen candidates this year. Incumbent Janković is far from the only interesting candidate. Former Health Minister Zofija Mazej Kukovič from the opposition Slovenian Democrats (SDS) is also fighting for the right to lead Slovenia’s largest capital and is not the only minister in the race – 37-yearold Nova Slovenija candidate Mojca Kucler Dolinar was the Minister of Higher Education, Science and Technology in the Janez Janša government. If the polls are to be believed, though, both former ministers are likely to lose to a re-elected Janković. It is also possible that Slovenia’s second-largest town will keep the same mayor for the next four years. Current Maribor mayor Franc Kangler has announced he will stand again for the opposition People’s Party but does face tough rivals in the eleven other mayoral candidates. As is often the case in politics, incumbency seems to be an advantage when it comes to local elections in Slovenia. Out of 157 mayors who were elected in 2002, 126 of them were re-elected again four years later. 37 mayors have been successful at all local elections so far, and so in post for sixteen years. In other words, they have been mayors for sixteen years. Can these “original” mayors continue their terms? Will Janković be once again elected mayor of Slovenia’s capital? Will the number of women in local government increase this year? Answers to these fascinating questions – and more – will become clear later this month.

Photo: BOBO

Focus on the cities

arly on in what would turn out to be a glittering military career, Colin Powell was deployed to Germany. He was to serve on the front line of the Cold War. In late August 2010, some half a century after that deployment, Powell arrived in a town which used to be part of the very communist bloc he was fighting. Times have changed dramatically – communism has fallen, Powell has climbed the military ranks to ultimately serve as Chairman of the Joint Chiefs of Staff and Secretary of State, and a whole host of new challenges have developed to challenge the world’s leaders. But the reason for Powell’s visit was not to discuss the past – it was to discuss the future. The distinguished General was one of 400 guests, drawn from over 40 countries, taking part in the fifth Bled Strategic Forum. Together they considered the challenges likely to face the world in the coming decade, as well as the challenges facing it right now.

Optimism

Powell, invited to the event by the American Chamber of Commerce in Slovenia, struck an optimistic note. The General argued that past achievements should not be forgotten when confronting complex modern problems such as global warming, terrorism, and creating a stable international community. And he praised

The former Secretary of State, general Colin Powell, was the honorary guest at this year’s Bled Forum

his host nation, arguing Slovenia in particular has many past triumphs on which to draw – among them the establishment of “vibrant, noisy democracy” and efforts to better integrate the Western Balkans into the international community. Slovenia’s leaders believe that the Bled Forum is a crucial such work. Prime Minister Borut Pahor argued the event “speaks of the fact that Slovenia enjoys a strong reputation in the world. We are viewed as a country that is small but has an important role to play in the international community and particularly in its region.”

Heavyweight guests

The Forum certainly attracted some heavyweight guests. As well as General Powell, Bled welcomed luminaries such as Prime Minister Yves Leterme of Belgium, Secretary General of the Arab League Amer Moussa, Canadian Defence Minister Peter Gordon MacKay, OECD Deputy Secretary General Richard A Boucher and European

Commissioner for the Environment Janez Potočnik. Together they spent two days grappling with challenges including the situation in Afghanistan, the rise of the internet, the pressure on the world’s water, climate change, and the future of Europe and the Balkans. A common theme was the importance of international cooperation in addressing such issues, with Powell saying the world is no longer one of super powers but of a collection of partners. He argues that Slovenia will be of vital importance to this modern order.

Mixed reception

And what effect has the 2010 Bled Strategic Forum had on Slovenia’s place in that order? Opinions were mixed. While Slovenian Minister of Foreign Affairs Samuel Žbogar said he was happy with the outcome of the forum, others declared themselves less sure. Daily paper Večer has been particularly critical of the event, describing it as still marked by a “mix of pretentiousness and clumsiness” in spite of its interesting debates and important guests. It worries over the broken English of some of the hosts, the strict security measures which are only employed for certain guests, a VIP saloon it characterises as being like that at a sporting event, and the need to bribe certain attendees to attend. Even so, Večer acknowledged that the event is here to stay. So while it may be difficult to predict what local and world events the next decade will hold, it seems certain that the Bled Strategic Forum will remain an important place at which to discuss them. Photo: BOBO

success. Almost a third of all mayors and a fifth of all councillors are now not aligned to a specific party – a vast contrast to 1994 when only nine percent of councillors and 20 percent of mayors were independent. By far the most successful non-party list at the last elections was that of Zoran Janković, Ljubljana’s mayor. Janković was elected with 82,107 votes – a share of 63.03 percent – while his list won 23 of 45 councillor seats, securing it an absolute majority in the City Council.

October 2010

Economy

FACTS AND FIGURES

source: STA, Slovenian Press Agency

Hartmut Mehdorn’s idea of joining the logistics companies has been met both with approval and criticism

lead to job losses, while the managers of two of the individual companies do not believe such a dramatic shakeup is required though Slovenske Železnice support the idea “Based on the documents we’ve seen so far, what we’ve heard, we cannot have a positive opinion on this project,” says Luka Koper chairman Gregor Veselko. He argues any talk that Luka Koper is not a competitive company is not serious: “We’re growing at an exceptional pace.

We’ve recorded 34 percent growth in the container sector alone.” Intereuropa chief supervisor Bruno Korelič, meanwhile, does not believe that a simple reorganisation of the three companies will solve all the problems they face. He is also critical of Mehdorn’s advice that the state should keep at least a 51 percent share in the holding should a suitable investor come along. He believes that no serious global logistics player would be satisfied with a mere 49 percent share. Not everyone in the government is fond of the idea either. Igor Jakomin, state secretary at the Transport Ministry, warned about the dangers of the holding, while Transport Minister Patrick Vlačič seems to support the idea. Jakomin warned that Luka Koper could lose its licence to operate the state-owned port terminals if it was included in the holding. He is sceptical that the idea is fully compatible with EU regulations and directives. Jakomin is also critical of the plan to tie the companies in terms of capital, as he believes that cooperation based on agreements would suffice. He believes that Luka Koper could remain competitive without being a part of the holding.

Retail

Banks

Donations

Economy

Merkur Declares Insolvency

NLB Capital Raising to be Decided in November

BMW Donation on Hold

Tax and Welfare Share in GDP Up to 38%

The Slovenia Times

Shareholders at Slovenia’s biggest bank are soon to decide on a EUR 400m capital injection. A meeting for NLB shareholders will be held on 25 November to discuss the issue. The bank’s chairman Blazo Jašovič has warned it will need to carry out the long-awaited capital increase before June 2011 if it wants to avoid having to curb operations. On a positive note, the financial monthly Global Finance has ranked NLB the third safest bank in Central and Eastern Europe in 2010 in its 19th annual list of the world’s safest banks. NLB comes behind Czech banks Ceska Sporitelna and Komercni Banka.

A deal to replace some older government vehicles with energy efficient models has been put on hold. The deal was struck with German car maker BMW, which was to donate the lease on the cars to the government. The government in turn would have committed to buying solar panels for two of its buildings in Ljubljana. However, after questions were raised about whether such a transaction is in line with Slovenian public procurement and tax legislation, the plans have been put on hold. BMW has announced “there are currently too many open issues about the deal”. It says putting the deal on hold will enable the government to invite other companies to participate and to consult the general public.

The share of taxes and welfare contributions in Slovenia’s GDP has increased new figures have shown. Last year the share stood at 38 percent, which is 0.4 percentage points more than in 2008 but level when compared to 2007. The share of fiscal burden decreased between 2005 and 2008 from 38.9 percent of GDP to 37.6 percent of GDP, and then increased between 2008 and last year. The increase was a consequence of the growth of welfare contributions by 0.9 percentage points, reaching 15.2 percent of GDP. The share of taxes in Slovenia’s GDP meanwhile decreased by 0.5 percentage points to 22.8 percent. Fiscal burden as % of GDP 40

Taxes Social contributions

Hardware retailer Merkur, which employs 4,000 people, has declared insolvency. Chairman Bojan Knuplež says the management board will now draw up a restructuring plan and ask shareholders to provide fresh capital. He is allowing for the possibility of conversion of claims into ownership stakes and says he will welcome any new owner as long as he can secure “firm foundations and responsibility”. The retailer’s chairman stressed that insolvency had only been declared for the core company. It does not relate to home entertainment division Big Bang. However, declaring insolvency for Mersteel, the metal wholesale business, has not been ruled out. Merkur made a loss of EUR 148m in 2009.

2004 2005 2006 2007 2008 2009

Source: SORS

Proposals to tie up Slovenia’s three biggest state-owned logistics companies have been presented, with many reacting negatively to the plan. Hartmut Mehdorn – who is advising Slovenia on railway restructuring – proposes creating a logistics holding consisting of Slovenia Railways, Luka Koper, and Intereuropa. The former Deutsche Bahn boss says it has become clear that Slovenia Railways cannot secure the money it needs; that Luka Koper is facing ever more demanding competition; and that Intereuropa’s debt needs to be restructured. He argues that the companies are too small to face competition individually but that if brought together into a holding they could generate a yearly turnover of EUR 800m to EUR 900m. Prime Minister Borut Pahor, who opened the Brdo Pri Kranju conference at which Mehdorn presented his plan, says the decision on how to improve the Slovenia logistics sector cannot be made in haste but also cannot be delayed. He also says the final decision would be in the hands of parliament and not simply the government. Stakeholders have generally reacted to the plan with concern. Trade unions are concerned it will

Photo: BOBO

A question of logistics

11 Energy

Rail transport

Banks

Employment

Koper LNG Terminal Gets Permit

Divača-Koper Railway Link Gets EU Funds

Slovenian Banks Expecting to Meet Basel III

Negative Trends in Youth Employment

Energy

Petrol Enters Electricity Retail Market

Energy company Petrol has started selling electricity to households and small companies around Slovenia. The company says it aims to be the first to provide a comprehensive onestop supply of energy products for all types of customers. It wishes to secure a one percent market share in the households segment by the end of this year, while selling a total of 309 gigawatt hours of electricity. The target set for 2014 is 2,150 gigawatt hours both retail and wholesale.

Banks

NLB Discussing Mercator with Investment Fund NLB has entered into exclusive negotiations to sell its 10.75 percent stake in retailer Mercator. Slovenia’s largest bank has signed a contract with investment firm Mid Europa Partners. The contract does not mean that NLB is bound to sell the stake to the Budapest-based equity group. Mid Europa Partners participated in the call for bids for the stake published at the beginning of the year. Back then, NLB pulled out of the sale as it was unhappy with the bids. NLB seized the stake in Mercator last year from the insolvent Infond and Istrabenz.

The European Commission is to co-fund the second phase of a Slovenian railway project. The reconstruction and modernisation of the 26.4 km railway link between the port of Koper and the railway hub Divača will receive around EUR 68m from the EU. It is the first confirmed railway project in the programming period 2007-2013, as part of which Slovenia is eligible for EUR 4.2bn of EU funds. The railway section is part of the sixth priority project of the Trans-European Transport Networks (TEN-T) – the railway axis Lyons-Trieste-Divača/ Koper-Divača-Ljubljana-BudapestUkraine border.

Pension reform

Pension Reform Bill Adopted The government has adopted a pension reform bill that will tighten retirement conditions in Slovenia. The bill envisages the raising of the full retirement age to 65 years for both men and women. The age will be increased from the current 61 years by six month increments each year from 2021 to 2026. It aims to shore up the pension purse which faces rising expenditure due to population ageing. The bill was adopted despite opposition from the trade unions, who are staunchly opposed to proposals to raise the retirement age and the required years of service for a full pension.

Slovenian commercial banks should not have any problems in meeting new capital adequacy rules according to the nation’s central bank. Under the new Basel III rules, agreed by central bank governors and bank regulators from 27 countries, the required ratio of Tier 1 capital will be raised from the current 4 percent to 6 percent in the coming years. Banka Slovenija says that Slovenian banks for the most part already hold sufficient amounts of top-quality capital to meet the new rules. Slovenian commercial banks for the most part only hold shares and retained profit, both of which qualify as top-quality capital, the central bank points out. According to the bank’s figures, the average ratio of Tier 1 capital in Slovenian banks is currently 9.11 percent.

Youth unemployment rate (%) 22

19,5

14,5 Slovenia

Retail

Mercator 35th Largest Company in Central Europe

12 2009 Q1

2010 Q2

Home appliances

Gorenje Surovina Launches Waste Material Fuel Plant

Bank loan guarantees

Enterprise Fund to Offer New Guarantees The Slovenian Enterprise Fund has launched a new call for applications for EUR 34m of bank loan guarantees. The additional funds have been provided together with the Economy Ministry. The guarantees include a EUR 4.7m interest rate subsidy. That means all those eligible for a loan guarantee will have a lower interest rate which stands at a six-month Euribor rate plus 0.5 percent until the end of the year. It is anticipated that the guarantees will be particularly handy for small and medium sized companies (SMEs) that suffered damage during the major floods that hit Slovenia last month. The Fund provided support for 522 SMEs with almost EUR 100m worth of funds on favourable terms in the first half of 2010.

Slovenia’s largest trade union association fears current negative trends in the employment of young people are unlikely to be reversed in the long run. The situation for young people has deteriorated in recent years, and the economic crisis has pushed them to the margins of the labour market, Goran Lukič of the ZSSS has said. He added that the young were forced to accept unsecure jobs. Lukič believes employment statistics for the young in Slovenia are deceiving, as they only take into consideration those aged up to 24. He argues the 25-30 age group is a hotbed of unemployment. Latest data shows that more than 15,000 people from this group are unemployed, which compares to only 8,000 in August 2008. Source: Eurostat

A permit for the construction of a liquefied natural gas terminal has been issued by the Ministry of the Economy. The terminal has been proposed by German company TGE Gas Engineering and would be located in the coastal town of Koper. The permit, signed by Darja Radić, serves as a basis for the planning procedures, which will be followed by proposals for zoning plan, spatial plan and, eventually, building permit. Former Economy Minister Matej Lahovnik rejected the application for the permit filed by TGE in July 2007, but the Administrative Court has ruled that there are no obstacles for the permit and that the ministry has to issue it. The Ministry has, however, decided not to include the project in the planned national energy programme.

Slovenia’s top grocer Mercator has come in 35th on a list of the 500 largest companies in Central Europe. In the list, compiled by auditing firm Deloitte, Mercator leapfrogged the largest Slovenian energy group Petrol which was ranked 41st for a second year in a row. Mercator placed first among Slovenian companies with sales revenues of EUR 2.64bn. It is followed by Petrol, car maker Revoz (105th), hardware retail chain Merkur (107th), home appliance maker Gorenje (116th) and pharmaceutical group Krka (159th). With 18 companies among the top 500, Slovenia leads the former Yugoslav countries in terms of representation on the list. It is followed by Croatia with 16 companies and Serbia with 12.

Gorenje Surovina has launched a new line for producing solid fuel from waste materials. The waste recycling company, part of the group around household appliance maker Gorenje, will produce 42,000 tonnes of solid fuel a year. The first private investment of this kind in Slovenia is estimated at EUR 2.7m. Surovina, which has a workforce of 330, is part of Gorenje’s 550-strong division for ecology, energy and services. Gorenje chairman Franjo Bobinac has announced ecology will be a key segment of Gorenje in the future.

October 2010

12 ECONOMY

Half year results

Profiting From a Recovery? The half-year results are in and it seems like some firms in Slovenia are well and truly on the road to recovery. Companies in sectors ranging from pharmaceuticals to retail, finance and energy have all been registering profit. While Slovenia has been officially out of the recession since the second quarter, such good results were unexpected. But the recovery hasn’t spread to every company and some prove it might be shortlived. By Maja Dragović

fter enduring a severe economic slump, Slovenia seems to be on the mend. Production and exports are on the increase and the first half of this year paints an interesting picture. Some companies have well and truly bounced back, reporting that they are so overwhelmed with orders they will be kept busy until at least the end of this year. Others report much greater success in the first half of this year than they experienced during the same period last year. One of the most impressive success stories is that of energy provider Petrol. The firm has posted EUR 22.4m net profit in the first half of 2010 – 20 percent more than planned and more than double of

the group’s net profit in the year before. Profits are up a mind-boggling 157 percent.

Many sectors on the up

The energy sector is far from the only one on the up. Drug maker Krka generated EUR 500m in sales in the first half of the year, an increase of nearly five percent on the same period in 2009. Net profit at the group rose 17 percent to EUR 91.2m. Insurance companies are also doing well. Reinsurer Pozavarovalnica Sava generated EUR 1.28m in net profit in the first half of the year, compared to a net loss of EUR 6.52m in the same period last year. The group around Zavarovalnica Triglav posted a net profit of EUR 17.9m, up 55 per-

cent over the year before, on the back of a marginal drop in premiums which was offset with lower payouts. The group around the Velenjebased household appliance maker Gorenje also did well, posting EUR 4.9m in net profit compared to a EUR 18m loss in the same period last year. Consolidated sales revenues amounted to EUR 610m, up 7.4 percent year-on-year. And the group around Slovenia’s leading grocer Mercator reported a net profit of EUR 17.7m, which is up 60 per cent from the same period last year.

Not all good news

So for some the half year results have provided cause for cel-

ebration. For others, the news has been more mixed. While banks NKBM, ABanka and Unicredit all saw a surge in profits, some in the sector haven’t been doing quite as well. According to the Central Bank of Slovenia, the nation’s banks generated a total pre-tax profit of just over EUR 80m in the first half of this year – a decrease of 43.8 percent on the year before. NLB appears to have been the biggest drag on overall performance in the sector. The nation’s biggest bank reported its loss had widened to EUR 36.4m for the first six months of 2010 from EUR 5.1m in the same period last year. continued on page 14

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14 ECONOMY The situation in the telecommunications industry is similarly mixed. It was good news for Slovenia’s second-largest mobile operator, Simobil, which generated EUR 12.7m in operating profit in the first half of the year, up 22.1 percent. But the group around Telekom Slovenije ended the period with a net profit of EUR 4.3m, an 85 percent year-on-year drop. The logistics sector saw mixed performance too. The g roup around Luka Koper, the operator of Slovenia’s sole sea port, generated EUR 62.2m in sales revenues in the first half of 2010, which was a four percent increase. The increase in sales revenues was not as steep, as the goods were shipped away relatively fast, which in turn decreased income from storage. Logistics group Intereuropa, meanwhile, reported a loss – its EUR 91.6m in net sales revenues in the first half of 2010 is two percent less than in the same period last year. It wasn’t all bad news though: operating profit jumped to EUR 6.3m, more than double than in the first half of last year. Slovenian Railways continues with its losses – EUR 9.4m of them to be precise, though this is EUR 10m less than had been expected.

Caution remains

Half year results are much better than expected

So some firms are Companies net profits in ‘000 EUR Profit increase compared to registering impressive the same period in 2009 (in %) growth; some slight growth; some are still Mercator 25.113 176 in the red but not as Krka 98.614 19 much as last year. Then there are others who Gorenje 1.047 made EUR18m in 2009 were actually profitable Luka Koper 2.516 -4 in the first six months Intereuropa 1 -44 but are now registering losses. And finally, NLB -20.111 higher loss in 2009 there are also those on NKBM 10.186 4 the verge of bankruptAbanka Vipa 9.741 21 cy or filing for insolvency like Merkur did Telekom Slovenije 43.570 -34 just recently. Simobil 12.700 22 T he big quest ion Petrol Group 22.000 153 now is what will happen next. Most remain cautious, with some managers warning conditions can some 500 large and medium-sized ter and announced public finance change rapidly and there are no companies with almost 100,000 saving indicate that growth at this guarantees that the overall year employees are in danger of go- level will not be sustained in the will end up being profitable. One ing bankrupt, with retail and car eurozone in the second half of the of the main problems currently maintenance amongst the worst year”. is the very well developed web affected industries putting 50,000 Though some suggest a bleak of unpaid invoices that can easily jobs at risk. future, at present there is definiteaffect any company alongside its The Institute of Macroeconom- ly a wave of optimism. The impact suppliers and their suppliers. The ic Analysis and Development of positive results is reflected on consequences of such a situation (IMAD) predicts that, in spite Ljubljana’s stock exchange with are already being seen in the con- of the recent unexpectedly high six consecutive sessions in the struction sector. growth, there will be a slowdown: black. A nation now waits to see Worst case scenarios suggest “A further deterioration of finan- what the next few months will that in the next 6 to 18 months cial conditions in the second quar- hold. Source: half year results by above mentioned companies

continued from page 12

Annual Presidents’ Forum 2010

Company presidents and corporate leaders meet in Bled to discuss ways of improving their companies’ performance On 16 November 2010, company presidents, CEOs, Board and Supervisory Board members, and representatives of top management teams in government, non-profit sector and other organizations from more than 10 countries will meet at IEDC-Bled School of Management on the occasion of Annual Presidents’ Forum 2010 with the aim of sharing insights into improving their company performance in the future. The Annual Presidents’ Forum at IEDC-Bled School of Management is a unique opportunity for the business and government leaders to meet with their peers from other countries and share insights into the most up-to-date leadership and management issues. This year’s forum titled Business as Unusual: A Competiveness Outlook for 2011 and Beyond will be led by Prof. Dr. Stéphane Garelli, professor of World Competitiveness at IMD Lausanne and the editor of the IMD World Competitiveness Yearbook, the world’s most renowned and comprehensive annual report on the competitiveness of nations. Professor Stéphane Garelli will guide forum’s participants through the findings of IMD’s World Competitiveness Yearbook and related research, indicating the reasons for some countries substantially changing their rankings, as well as discussing the implications for those wanting to improve their performance in the future. Special focus will be placed on Slovenia and other countries in the Region. In the frame of the Presidents’ Forum the exchange of experiences among participants will be additionally supported by a roundtable with the leading European business leaders.

The Slovenia Times

Professor Garelli leads the team which publishes the IMD World Competitiveness Yearbook - the most comprehensive and reputed study in the field of the competitiveness of nations. This yearly

IEDC- Bled School of Management 16 November 2010 report compares the competitiveness of sixty-one countries and regions using 312 criteria. Stéphane Garelli is widely considered to be one of the top lecturers on economic and business matters.

Business as Unusual: A Competiveness Outlook for 2011 and Beyond

ECONOMY 15

Public sector pay freeze

Frozen Debate The “murder of social dialogue”? A justified move in light of the current economic situation? Or an unfair imposition on those who deliver vital services to citizens? Welcome to the confusing, controversial and continuing debate over Slovenia’s public sector pay freeze. By Claire Read

ack in 2008, representatives from public sector trade unions met the government. The issue up for debate: pay for the thousands of teachers, doctors, nurses and other civil servants in Slovenia. It was a relatively simple discussion. Slovenia was experiencing a 6.3 percent economic growth rate and there did not appear to be any financial clouds on the horizon. A staggering thirteen percent pay rise was agreed and discussions concluded. Two years later and the situation could barely be more different. Slovenia has, along with the rest of the world, weathered a severe financial downturn. It is a downturn such that the government is desperately trying to save money wherever possible – and that includes on public sector pay. According to Public Administration Minister Irma Pavlinič Krebs, honouring the pay deal made in 2008 would cost the state some EUR 200m. The government argues this is a figure which can be ill afforded.

Divided

The reaction to this news has been mixed to say the least. The Confederation of Public Sector Trade Unions (KSJS) has declared itself willing to accept the pay freeze. However, the Confederation represents only seven of the 29 public sector trade unions. The other 22 have proved less willing to compromise. Slovenia therefore finds itself facing a public sector strike. Of the 22 unions in the anti-pay freeze group, 17 agreed that strike action is appropriate. It is a development which has left the government in a highly awkward position. On the one hand, it maintains that it is impossible to implement the pay rise in its originally agreed form. On the other, there is awareness that walk outs by Slovenia’s civil servants could be disastrous to the nation.

A failed compromise

The initial reaction was an attempt at compromise. In late August, the government announced amendments to the pay freeze

The Slovenian paradox: while construction sector workers are out of work with months of unpaid wages, public sector employees with guaranteed jobs are striking over a decision to freeze their pay

proposals – in 2012, salaries would be adjusted to consumer price growth if inflation exceeded two percent. In addition, the prospect of promotions was floated. The anti-pay freeze unions remained unimpressed and determined to take strike action. Their position became even more entrenched in September when the government gave in to some demands made by a doctors’ union. The unions suggested that money could be found for some but not others. The government’s woes have been compounded by one simple fact – changes in public sector salaries have to be agreed by trade unions before they can be enforced. Faced with this difficult reality, the government appears to have decided that the time for compromise is over. Two months ago, the collective bargaining agreement over public

pay was amended. Now, changes in public sector pay are valid so long as trade unions from at least four different sectors – and representing at least 40 percent of all public sector employees – agree to them. It is a condition that has been met for the current pay dispute: KSJS may only be made up of seven unions, but together they represent almost half of all public sector employees.

The death of social dialogue?

The outrage at this move was perhaps predictable. Vinko Gorenak of the opposition Democrats (SDS) declared the move to be the “murder of social dialogue.” Mirian Gyoerek of the National Party argued that his party could simply not accept unfinished social dialogue. And Janez Posedi, representative of the unions de-

termined to strike, has started collecting signatures for a referendum on the changes. Posedi’s work is now well advanced and he confidently predicts that there will be no problem in collecting the 40,000 signatures required to force a referendum. It is unclear, however, as to whether a referendum would bring the outcome desired by Posedi. It seems there is limited sympathy for public sector workers. In a poll conducted by respected daily paper Delo, 57 percent of respondents said they supported the government’s decision to freeze pay in the public sector. The public, then, seems to support the pay freeze. So do more than half of public sector employees. And so, of course, does the government. But it’s not enough. Months after it began, the debate remains frozen. October 2010

16 ECONOMY

Interview: Aleš Justin, president of OpenBlend society

Usability of Software is the Key to its Success The OpenBlend conference is just around the corner; a Ljubljana-based event which enables software developers to learn more about open-source software. According to OpenBlend society president Aleš Justin – who, when not wearing his president hat, works for JBoss by RedHat, one of the world’s leading open-source companies – the advantages of such solutions are considerable. By Miran Varga also means finding the right balance between the solution of the problem, added value, and fixes or updates. I am a hard core coder myself, I write low-level software which includes classloading, deployment handling, service state machine... These are so-called mission critical areas with no or only small margin for errors. Testing the software and making sure it works as planned is therefore one of my top priorities.

What are the main messages of the OpenBlend conference? We would like to show software developers that Java is a very powerful and efficient development environment and one which can handle very complex challenges. And the best thing about it is that you can find most of these solutions open-sourced. Combined with the power of Java to run on any platform, the sky is the limit as to what you can create. Hence we believe that open-source programming or using existing opensource libraries is the right way to approach software development. What impact does the opensource community have on software development in general? Today the open-source community features millions of software developers who have contributed millions of code parts that can be reused over and over again. This accelerates software development The Slovenia Times

tremendously. Some open-source programming languages (such as Java) are very easy to learn and use. This ensures that many people can write or edit computer code to their liking and needs. Open-source doesn’t just mean free software and access to the source code of an application. It must also allow free redistribution and the licence that comes with the code must not restrict anyone from making use of the program in a specific field of endeavour. It is all this that makes a great contribution to better and faster new software which usually costs way less than proprietary solutions. Which are the most important development areas – security, stability, user friendliness; some other area? Well, I would say everything has to be taken into account. The importance of any specific area is usually defined by the nature of

the project itself and its requirements. Take the example of low level solutions which are mostly never touched by the majority of users. In this case, the software developers put more impact on stability and security and less on user friendliness. But in most cases with common software solutions, programmers try to create very user friendly application programming interfaces as these ensure user satisfaction. Usability of software is the key to its success. How do you prioritise your work – what comes first and what comes last? We all know from real life that nothing is free. It’s the same with open-source. Open doesn’t automatically imply free. To make open-source a successful business model my priorities need to be aligned with support of our products as this is what brings us money. Project-based programming

How do programmers (coders) see the development of cloud computing? If the computer cloud is implemented properly it should not affect the work of a programmer as it should be almost invisible. But sometimes – for examples in systems that must work flawlessly 24/7 – one must still have cloud usage in mind since to make the applications in the cloud work properly, different mach ines whether virtual or physical must share the same state. And badly designed state handling can lead to excessive network traffic, and hence a slow application. On the other hand, good implementation is often rewarded with extra speed and responsiveness. And sometimes you can actually make up for poor design by using the power of the cloud – but that is not something I would recommend doing. What does it take for an individual to become a computer programmer? We will actually have a session about it at this year’s OpenBlend conference. In short: it all depends on how good an individual wants to become. It obviously helps if people have practical knowledge from naturalistic studies such as maths, physics or computer science. But a lot of practice and work hours are still needed and these may come in different forms: hobby projects, literature, conferences, software testing and so on.

18 ECONOMY

Maribor airport

The Sky’s the Limit If Slovenia wants to increase its presence in the region, then it needs to expand its infrastructure. Slovenia’s second largest airport seems a prime candidate for this expansion. So what’s standing in the way? By Aleš Šinkovec the moment it is having to carry on as usual. The lease has now been lengthened to the end of 2010, during which time the government hopes to find a new interested party. How likely that is remains to be seen. The Ministry of Transport published a call for bids on July 9 but hadn’t received any by the September 7 deadline. The call has been extended but it doesn’t seem likely that it will produce results. It seems Aerodrom Maribor would need to have a long-term lease in place to be attractive for potential investors. The firm itself didn’t place a bid as they were not satisfied by the terms of the agreement. The other party that showed interest but hasn’t yet put in a bid is Pošta Slovenije. Both would be strategic investors for different reasons. Another investor that is often mentioned is the national carrier Adria Airways, although it is feared the investment may not be in their best interest.

So much potential Pošta Slovenije is one of very few investors who has shown interest in leasing Maribor airport

lovenia is host to three international airports, a fact obscured by the reality that only the one serving Ljubljana is generally known. The other two airports are situated in Portorož and Maribor. It is the latter which it is often argued has real potential for development. As part of a push to modernise the facility it was renamed in June 2008 and is now called the Edvard Rusjan Maribor Airport, after the pioneer of Slovenian aviation. Regrettably, the name is all that has really changed – and many are wondering why.

While Slovenia is currently served quite Money, money, money Part of the reason is the recesadequately by its main sion. Maribor Airport is owned airport, Ljubljana Jože by the state and is then leased to Pučnik, that will not a private company for operations. lease holder Aerodrom always be the case. Current Maribor is owned by Prevent GloEven though it is going bal, the troubled car-seat cover through renovations and manufacturer. This has put the additions, it will not be lease holder into a precarious position. Aerodrom Maribor is lookable to serve a growing ing for potential investors to buy economy. out Prevent’s ownership but for The Slovenia Times

While doubt surrounds which if any investor will buy into Aerodrom Maribor, certainty surrounds the potential of the airport operated by the firm. While Slovenia is currently served quite adequately by its main airport, Ljubljana Jože Pučnik, that will not always be the case. Even though it is going through renovations and additions, it will not be able to serve a growing economy. There is more than enough room for Maribor to be a viable alternative. With the right strategy it wouldn’t really be in direct competition with Ljubljana. The fact is that the Edvard Rusjan Airport cannot focus solely on Maribor; the market simply isn’t large

enough. It would need to create a regional gateway for three types of transportation: low fares, charter, and cargo. The most important would be the first. Slovenes are notorious for travelling long distances to theoretically save money, even commuting to work for multiple hours a day. There are three airports that serve Slovenian customers with low fare connections: Treviso in Italy, and Graz and Klagenfurt in Austria. Maribor is the closest to Ljubljana, excluding Klagenfurt. To try and promote it as a low fares hub for the entire region, the destination could be marketed as Ljubljana, North. Such a move certainly isn’t unheard of – consider Glasgow (Prestwick) or Brussels (Charleroi). To ultimately succeed, the airport would have to secure a combination of regular cargo, seasonal charter flights, and any low cost airline that would like to expand into the region. There are challenges. Ryanair did provide a route from Maribor airport to London Stansted, starting in June 2007, but it ended in less than 10 months.

Against the clock

Now, though, it seems the time is right for a strategic investor to step in and create a new vision for the fledgling airport. A 30-year lease for the operation of the airport should be signed by the end of the year. The new passenger terminal is set to be finished some time in 2011. Finally, Maribor will be the European Capital of Culture in 2012. The hope is that someone will step in and help the airport thrive in the coming years. But let’s also hope it doesn’t live up to its new name in all respects: Edvard Rusjan died in a plane crash at the age of 24.

To succeed, the Maribor airport would have to secure a combination of regular cargo, low-cost airlines as well as seasonal charter flights

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20 ECONOMY

EDGE Conference

Cutting EDGE Innovators YES, the Young Executives of Slovenia, once again proved to be one step ahead with the third annual EDGE Conference. The event, held on 23 September in Ljubljana, drew top global speakers who shared their experience, knowledge and view on the subject of innovation with 250 attendees. The main speaker of the conference was Stephen Attenborough, the commercial director of Virgin Galactic. The main attraction was, however, Lior Manor, the Israeli magician, mind reader and renowned corporate infotainer. All the speakers presented their speeches with much enthusiasm – an enthusiasm that spread quickly to the audience. By Maja Dragović

jubljana Castle was the home for the third EDGE conference – an impressive location for an impressive event. This year’s topic was innovation – a logical continuation from Mobility, the topic of the first EDGE conference in 2006, and Collectivity in 2008. Innovation is a current question. Is innovation a way out of crisis? Can we beat the crisis with innovation? Is innovation still possible at times of crisis? The one of a kind regional event was opened by Davor Pavuna, the cutting edge Croatian scientist, physicist and innovator and a member of the Obama administration working for the US Department of Energy. He gave a spiritual talk about interconnection in the new world and the extreme importance that “local” carries within “global”. Pavuna called for a new vision on humanity, one that respects natural resources and the fellow human. You could hardly talk about innovation in business without including the internet. And so Bastiaan Lemmens – one of the first partners and Board Member of Booking.com and part of the Management Team in Ebookers. com, Isango.com and EasyToBook. com – shared his experience on establishing businesses online. He shared his strong belief that those who build companies cannot run them, and explained that he there-

is only valuable if it has a market that buys it. He also emphasised that innovation today needs to be environment friendly, saying it is a key focus of Virgin Galactic. A range of other impressive speakers also took the stage. Antonio Campinos, President of OHIM – an EU agency responsible for registering trademarks and designs that are valid in all 27 countries of the EU – focused on the challenges of trademarking an innovation. Thomas Lawton, Professor of Strategy and International Business at EM Lyon Business School and author of the book Breakout Strategy, described how different business models work during the recession. He used the example of Ryanair, explaining why the company is still seeing growth while almost 200 low-budget airlines established in recent times have gone bust. The secret behind Ryanair’s success is its ability to be innovative with cost cuttings, concluded Lawton, noting that the company even removed ice cubes from its in-flight drinks to cut costs.

Seeking solutions Stephen Attenborough gave a compelling account of the history of Virgin Galactic

fore sold shares in his companies once they were operational – usually too soon, he joked. He advised

the audience to not care about the competition, arguing that if you have a good product there will always be a market for it.

Fly me to the moon

Davor Pavuna gave a spiritual talk on the need for a new vision of humanity that will respect natural resources and the fellow human The Slovenia Times

The speaker of the day came from Virgin Galactic. Stephen Attenborough, the commercial director of the firm, detailed the development of private space travel. He argued that innovation is simply a case of looking around; of finding things that were invented way before their time and of digging up those old ideas and applying them to modern times. He gave a few examples from their space ship to cars. He captivated the audience with remarkable videos and his belief that innovation

An intense day full of ideas, suggestions and innovative thinking was concluded by a smart and humorous presentation by the Israeli mind-reader, magician and leading corporate infotainer Lior Manor. He amazed the audience by guessing what random people from the audience drew on a piece of paper. EDGE has proven to be one of the top motivational brainstorm conferences in the region. In times when we mostly focus on unemployment and problems rather than looking for solutions, this solution-seeking event is a breath of fresh air. As Žiga Turk, former minister of development and professor at Ljubljana University wrote while at the National Education Programme authors’ consultation: “It’s a shame the authors are not at the EDGE conference”.

22 FOREIGN DIRECT INVESTMENT

FDI

NEWS IN BRIEF

source: STA, Slovenian Press Agency

Foreign Investments in Real Estate A conference organised by The Public Agency for Entrepreneurship and Foreign Investments (JAPTI) and Slovenia Invest has investigated ways to boost Slovenia’s real estate market. The conference, held in Brdo pri Kranju, explored methods for developing real estate projects and attracting foreign institutional investors. The event was attended by representatives from Slovenia’s leading construction development companies and banks, who discussed legal and financial procedures, practicability studies and ways of securing investment partners. Due to strong competition in the real estate markets only interesting and top quality projects attract institutional investors, Matej

Skočir of JAPTI argued. Nonetheless Slovenia has what foreign investors require according to Slovenia Invest manager Jacqueline Stuart, namely full EU membership, membership in the Schengen and eurozone, and economic and politic stability. In the past five years three Austrian, one Australian and two independent trust funds have invested in Slovenia, making five transactions worth a total of EUR 208m. Even so, the country is lagging behind its neighbours when it comes to attracting foreign investors.

High Taxes Biggest Burden for Economy The chief executive of Slovenia’s biggest household appliance maker has argued the biggest burden weighing on the country’s economy is its high taxes. Speaking to daily paper Večer, Gorenje boss Franjo Bobinac says the government must now cut taxes if it wants the economy “to start breathing again”. He pointed out that labour taxes are the highest in Europe, and that the nation is among the highest in Europe when it comes to state administration and public expenditure – so making tax cuts difficult.

Crystal products

Retail

Rogaška Crystal to Sell Under Trump Brand

Wolford Opens GZS Gives Out Best Factory in Pomurje Innovation Awards

A branch of a Slovenian glassworks has reached an agreement to market its products in the United States. Rogaška Crystal, part of Steklarna Rogaška, has come to an agreement with the company of American billionaire Donald Trump. Under the deal, Rogaška Crystal products sold in the US will be branded as Trump.

Logistics

Slovenian Exports, Imports Up in July

Joint Rail Company Established

Slovenia exported EUR 1.59bn of goods in July, a 14.9 percent yearon-year rise. July imports stood at EUR 1.62bn. The export-import ratio was 98.1 percent, according to preliminary data from the Statistics Office. In the first seven months of 2010, Slovenia exported EUR 10.46bn worth of goods, up 12.4 percent year-on-year. Imports meanwhile stood at EUR 10.96bn, a 12.2 percent year-on-year increase.

Slovenian, Serbian and Croatian national railway operators have formally established a joint company. The founding protocol for Cargo 10 was signed in Belgrade by the bosses of the rail operators’ cargo departments. It will be headquartered in Ljubljana. The aim of Cargo 10, which started operating on 1 October, is to achieve shorter border procedures along the tenth pan-European cargo corridor. The corridor runs from Austria to the south of the Balkans.

1800 Import

Source: SURS

Trade

Trade slightly down in July (in ‘000 EUR)

1650 Export

1500 1350 1200 Jan 10

Jul 10

Electro industry

An Austrian high-end clothes manufacturer has opened a new factory in the north east of Slovenia. Wolford opened the EUR 5m facility, which stretches over 4,000 metres, last month. Stockings and bodies are being manufactured at the factory, the opening of which has secured 145 new jobs. It is anticipated that number will increase to 170 by April 2011. Wolford chief executive Holger Dahmen says the company is very happy with the employees and results so far. The company, which was declared the best investor to Slovenia in 2009, decided to locate the factory in Murska Sobota because of its tradition of clothes making and its proximity to Austria.

Iskraemeco Boss Optimistic About Future The chief executive of electricity meters maker Iskraemeco has said he is optimistic about the future of his company. Dieter Brunner believes the company will benefit from the gradual picking up of the economy, as well as from European Union legislation which requires a change from old-fashioned electricity meters to smart meters. The company is already one of the biggest players on the markets of the EU, the Middle East and Africa. Brunner says he is optimistic about the economy and does not believe there will be a double dip recession. However, he also believes that recovery will be much slower than many expect.

JAPTI (Public Agency for Entrepreneurship and Foreign Investment) is a business facilitator providing free information and advising services for foreign investors: • • • •

Taxes

Information on business opportunities, legislation, taxes and incentive Information on industrial sites and local suppliers Links with industry and local authorities Arranging visiting programmes to the most suitable locations The Slovenia Times

Awards

Electro-technical products maker Eti and household appliances maker BSH were the big winners at the Chamber of Commerce and Industry’s innovation awards. Eti won three gold awards, with BSH Home Appliance taking home two – one gold and one silver. The list of gold-winners also included pharma company Krka, electronics components maker Domel, steelworks Acroni, boats maker Seaway group, research and development companies MM Partner and MSX, water beds maker Maremico, fire extinguishers maker Argas, steel company Metal Ravne, maker of pre-fabricated construction panels Trimo, bathroom elements maker Kolpa and the Chemistry Institute. The awards recognise the best Slovenian innovations in 2009.

Division for FDI Verovškova 60 1000 Ljubljana Slovenia tel.: +386 1 5891 870 fax: +386 1 5891 877 e-mail: fdi@japti.si www.investslovenia.org

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24 FOREIGN DIRECT INVESTMENT

BSH hišni aparati

Wake up and Smell the (Slovenian) Coffee For many, coffee is an integral part of each and every day. It is a beverage which its drinkers take seriously: increasingly, they expect every cup to be perfect. Many are turning to machines manufactured in Slovenia to meet that expectation. But many are also unaware that those machines are, indeed, produced in Slovenia By Biserka Kisič

Staff at the Nazarjebased company BSH Hišni aparati, which is the Coffee Competence Centre for the whole Bosch and Siemens Home Appliances Group, have just one task: to invent and produce machines which create the best possible coffee, every time. It’s not a simple task.

t is just a drink brewed from a plant but that summary is one which does coffee a gross disservice. It neglects the drink’s role as a kick-start to the day. As an excuse for a daily chat with a best friend. As a companion to office meetings. As the end to a great meal. As, along with oil, the most widely traded product worldwide. There is no doubt about it: the world loves coffee. It is a drink which has gained a position at the heart of our lives and our culture. This is certainly the case in Slovenia which, at 5.8 kilograms, has the sixteenth highest annual coffee consumption rate per person. That might be some way behind Finland, with its 12 kilograms, but it is extremely close to the consumption level of cappuccino-inventing Italy and higher than that in coffee-loving France.

More important than ever

There are many explanations for the drink’s popularity in Slovenia and elsewhere, but it seems one of the most important is that coffee represents “quality time”. It is a

Darko Ogrizek believes the new EQ.7 model being developed by BSH hišni aparati “will even better fulfull the (coffee) market’s needs” The Slovenia Times

small pleasure, a chance to take a break from the hectic nature of the modern world. It is therefore little wonder that coffee drinkers are becoming increasingly demanding when it comes to quality. If your midmorning cup of coffee is the only break you’re getting, you need to make sure it’s enjoyable. It is a need which many are meeting with high end coffee machines. Machines which, in many instances, hail from a small town in Slovenia.

Getting it right

Staff at the Nazarje-based company BSH Hišni aparati, which is the Coffee Competence Centre for the whole Bosch and Siemens Home Appliances Group, have just one task: to invent and produce machines which create the best possible coffee, every time. It’s not a simple task. “Coffee making is really a complicated physical and chemical experiment,” says Rudolf Klötscher, the CEO of BSH Hišni aparati. “You have to roast the beans, grind them, get the water to exactly the right temperature, add exactly the right amount of coffee, decide whether to add milk and if so how much...” Research and development staff in Nazarje spend hours running and rerunning this “experiment”, working out the optimal procedures and processes. Then the challenge is to make a coffee machine which recreates this optimal process every time. That takes more than 400 separate parts, making the machines some of the most complicated appliances in the whole BSH portfolio. “In the end, a customer buying a BSH coffee machine doesn’t only get an appliance but a whole treasury of knowledge incorporated into the machine,” reflects Klötscher. Of course, a precision device such as a BSH espresso maker has to be treated with care to retain optimum efficiency. And so staff

The EQ.7 coffee machine, produced in Slovenia, is sold worldwide

at BSH spend time making it as easy as possible for customers to look after the devices. The popular EQ.7, for instance, features an LCD screen which reminds users when the machine needs cleaning or rinsing.

A success story

Launched two years ago, the EQ.7 has proved so popular that a new model is being launched – the EQ.7 Plus. In addition, pre-existing models in the range are being relaunched. Darko Ogrizek, Group Manager of Product Development Beverage TK at BSH Hišni aparati, believes the new models will leave the firm well placed to retain its market-leading position. “The success story of the EQ.7 confirms that the path we decided to step on to two years ago was the right one,” he says. “The coffee market, as demanding and challenging as it is, also shows huge prospects for the future. We are strongly convinced with the new EQ.7 models we will even better fulfill the market’s needs.” It is clear that BSH are proud of their coffee makers – and even prouder that they are produced in Slovenia. “The Nazarje factory produces what we believe are the best coffee machines and fully automatic espresso makers on the market,” says BSH Group chief executive Kurt-Ludwig Gutberlet. “These are products which bring us great joy, both from the image perspective and on the sales front. These products arouse emotions in our customers and confirm for them that they have made the right decision with their purchase – in terms of taste, technology, design, and brand name.”

FOREIGN DIRECT INVESTMENT 25 It was in July that Darja Radić took up arguably one of the hardest jobs in government: that of Minister of the Economy. It is she who is now charged with addressing the many challenges facing Slovenia’s finances – with finding ways to boost competitiveness; with working out how to help the country out of the economic slump; with helping the nation throw off the last shackles of its pre-free market days. Tough problems to be sure, but ones Radić says she is working hard to resolve.

Interiew: Darja Radić, Minister of the Economy

By Maja Dragović

Ministering to the Economy You have always said one of your key priorities is to improve the competitiveness of the Slovenian economy. What concrete measures have already been introduced to achieve this, and what further measures do you plan? At the beginning of the term, when Matej Lahovnik was the minister [and Radić was serving as state secretary] we got caught in the economic crisis so we were somewhat disabled in our plans. Nevertheless, we offered companies incentives for investments

in the development of new products. At the moment we have an open call for the establishment of development centres. In those technology areas where Slovenia already has companies with skills and competencies, we want to create strong development centres which will take Slovenia to a higher technological level. We will improve the competitiveness of the economy if we create a business environment in which hightech development companies feel good. That is our aim: with the

tender for the development centres we will make a push in these technology areas and with a network of incubators in technology parks we will co-finance beginners and start-ups. The third [main initiative] is an attempt to relieve tax contributions on the highest wages. This will be a great incentive for foreign investors to move their research and development (R&D) departments here. All surveys of the business environment in Slovenia highlight

labour market rigidity, high taxes and contributions and complex paperwork as the main obstacles to FDI. What is your response to that? I absolutely agree and so we are trying to reduce rigidity, to achieve more flexibility in employment, make progress on high taxation and so on. I am trying to introduce this cap on contributions where after a certain amount of salary, contributions remain the continued on page 26 October 2010

26 FOREIGN DIRECT INVESTMENT I think in the future, Slovenia will be friendlier to foreign investors in this respect as well because there will be competent people on the other side of the deal.

Darja Radić was named the new Minister of the Economy after the resignation of Matej Lahovnik last summer

I am a very strong advocate of privatisation. I think the separation of economy and politics is the right way. It is not a problem if the state owns a few firms but this should be viewed more from an economic, strategic perspective.

We do not want to be the country with cheap labour, but the country with conditions for research and development centres.

We believe that in cases where the company still has a perspective to succeed, especially if it is a large company with many jobs, the country may intervene. This is a short-term contingency measure for a company to survive the crisis. The Slovenia Times

continued from page 25

same. Currently they grow in line with wage growth. With regard to administrative barriers, we try to improve the situation and it gets better each year. We make slow progress, but progress we make. You have said in interviews that the withdrawal of the state from the economy has been too slow, saying that you are very much in favour of privatisation. And yet we are living in times when, in many countries, governments are having to interfere in the economy and investors are basing their decisions on the actions of governments. How can this be balanced out? Personally, I am a very strong advocate of privatisation. I think the separation of economy and politics is the right way. It is not a problem if the state owns a few firms but this should be viewed more from an economic, strategic perspective. The country needs to have some ownership as some kind of back-up. But Slovenia has a number of investments which are not strategic but are instead traditional companies that are usually poorly managed as they are located far from the state administration. These things must be sold as soon as possible and left to those who know how to manage them. On the other hand, in times of such severe economic crisis it is almost impossible for the state to leave the economy on its own. Even private companies have increasingly been turning to the state for assistance. We believe that in cases where the company still has a perspective to succeed, especially if it is a large company with many jobs, the country may intervene. This is a short-term

contingency measure for a company to survive the crisis. An agency for state property management is being formed now. I am confident that, once it is established, we will be able to quickly assess what needs to go to the private sector and what is worth keeping state owned. Would you agree that privatising some state owned companies now appears to be a necessity rather than a choice? It is necessary to obtain fresh capital and thus get new drive for the firms that are still worth something. Our task is to provide owners who will buy those companies and manage them well. If they are foreigners, so be it. The money remains in Slovenia and the business as well and that is all that matters. We are a small nation and perhaps a little more sensitive to these things, because we know that within a major integration our identity may become lost. But if we are strong, if we show what we know, our identity will remain recognisable in the broader social structures. Some say that international financial institutions have little or no confidence in Slovenia due to failed attempts at privatisation such as Mercator and Telekom Slovenije. How do you respond to that? The reason for the establishment of an agency for state property management is the professionalisation of management of government property. There will be a team of people with the knowledge and experience of company management and they will deal with these things professionally. When state property was allocated to ministries, problem was the politics present at the ministries – political interest quickly comes to play and political decisions are made that are not always optimal.

In August there was an increase in electricity tax which undoubtedly will increase running costs for companies. Are there any concrete plans to let businesses »breathe« to help them to come out of the crisis? There is nothing to do to help the economy at this stage but to let it breathe. To leave it alone, not burden it with additional taxes. The excise taxes were confirmed together with the adoption of the revised budget for 2010. According to the original law the excise duty on electricity should rise by six percent but we made an agreement with the finance minister to reduce it to three percent. The law permitted a reduction by half so that is what we did. Are there any sectors which you think would particularly welcome know-how or capital from foreign companies? The tourism field has virtually no serious investments and it would be interesting to have a foreign one in order to set an example and comparison for domestic companies. A foreign investor can bring new business models, new skills and new way to conduct business and that usually encourages a positive shift in all other Slovenian companies. We certainly prefer those investments that bring high added value rather than investments which open a large number of jobs. This used to be our primary goal. Now the focus is elsewhere, at the added value. We do not want to be the country with cheap labour, but the country with conditions for research and development centres. A quarter of ministers – 5 out of 19 – are now women whereas there were only three female ministers during the previous government. What do you think about this presentation of women in the government? I always defend mixed teams, because they are usually more successful. I think this is because women and men differ in thoughts and reactions. It seems men are more impulsive and see only one step forward while women are more systematic, more analytical and visionary. If we were just a group of women, we would be too slow, too defensive. If there were only men they would not think things through or see any risks. A combination of both is good so sometimes men can push women forward a little, or vice versa, women hold men back.

DIPLOMATIC SOCIETY 27

EMBASSY DIARIES Egyptian embassy

US embassy

End of the festival

Cycle and recycle

The Embassy of Arab Republic of Egypt and association Rozana held the first ever Arab culture festival in Maribor last month. The event, held at Galeria Medianox, included a performance from a folklore dance group, singers, poets and seven different Egyptian movies, both modern and black and white. The closing ceremony was in Ljubljana on 1 October and in Maribor on 2 October.

US embassy

New economic officer Sarah Gjorgijevski has been appointed the new economic-political officer at the US embassy. Gjorgijevski will primarily cover economic and commercial issues. Ljubljana is Gjorgijevski’s first assignment with the Foreign Service. Prior to joining the State Department, she worked on USAID projects in Georgia and Bosnia and Herzegovina, and was a Peace Corps Volunteer in Macedonia. She has also worked in investment management. Gjorgijevski has a master’s degree in international relations from Yale University, a certificate in European business from École des Affaires de Paris (EAP), and a bachelor’s degree from Smith College.

Romanian embassy

Montenegrin embassy

Exit the King

Photographs by Princess Ksenija

The US embassy in Ljubljana has marked mobility week with a cycling tour in the Slovenian capital. Participants included state secretary from the Ministry of Environment Dr Peter Gašperšič and Chargé d’Affaires from the U.S. Embassy in Ljubljana Brad Freden who was accompanied by his wife Piedad Freden. The tour – organised in conjunction with Focus, Ecologists Without Borders, SmetUmet, and the ministry of environment – took participants on a three kilometre path from Prešern square to Tivoli park.

Slovenians are being given a unique insight into life in Montenegro at the start of the last century thanks to a new photography exhibition. The Montenegrin embassy is supporting the exhibition of photographs by Princess Ksenija at the Galerija Fotografija in Ljubljana. The exhibition was opened by Montenegrin’s culture minister Branislav Mićunović. Other distinguished guests at the opening included the Montenegrin ambassador in Slovenia Ranko Milović, Slovenia’s culture minister Majda Širca, and Janez Škrabec, director of Riko. The pictures show Montenegro through the eyes of its princess.

Eugen Ionesco’s absurdist drama “Le roi se meurt” (Exit the King) has premiered in Ljubljana as part of the Exponto festival. Sponsored by the Romanian embassy, the play was directed by Romanian Silviu Purcarete. Typically in Ionesco plays the stage fills with more and more objects or characters – in “Le roi se meurt”, however, the kingdom and all the characters slowly disappear. In Ionesco’s own words, “this play is an attempt at an apprenticeship in dying”. The premiere was held in SNG theatre and was attended by the world-famous Croatian actor Rade Šerbedžija as well as the Ljubljana mayor Zoran Janković and the Romanian ambassador to Slovenia Dana Manuela Constantinescu.

Danish embassy

Danish Jazz nights A wave of award winning Danish jazz came to Slovenia in late September. The band Radiostar, whose sound can be best described as a jam session between Neil Young and Charles Mingus in Tom Waits’ basement, performed three concerts – two in Ljubljana and one in Maribor. The tour was part of a special collaboration between the organization JazzDenmark, Danish embassy and other local partners.

Polish embassy

Celebrating Chopin The Polish embassy last month organised a concert in Vila Bled to mark the 200year anniversary of Fryderyk Chopin’s birthday. Pianist Ekaterina Popowa-Zydroń, a Pole of Bulgarian origin, performed a programme which included Grande Polonaise Brillante Op.22 and Preludes Op.28. Popowa-Zydroń gives performances both in Poland and other countries. Her repertoire ranges from Baroque to twentieth century music and includes works of Mozart, Beethoven (Sonata op. 106 among others), Schubert, Schumann, Chopin, Debussy, Bartok and others.

Hungarian embassy

New deputy László Máthé has joined the Hungarian mission in Ljubljana as the new deputy to the ambassador. Educated in Nigeria, Great Britain and Hungary, Máthé joined the Ministry of Foreign Affairs of the Republic of Hungary in 2002. Prior to taking up his post in Ljubljana, he served as the deputy head of mission in Vilnius from 2003 to 2008. Returning briefly to Budapest, Máthé worked on Visegrad cooperation and as head of the cabinet office for the ministry of foreign affairs. October 2010

28 DIPLOMATIC SOCIETY

EMBASSY DIARIES British embassy

US embassy

French embassy

Tennis champ

New public affairs officer

New adviser

The British ambassador Andrew Page participated at NLB bank’s VIP tennis tournament, organised to coincide with the BMW Ljubljana Open 2010. The tournament attracted a number of members of the Slovenian business elite including Zlatko Sraka, president of Energoplan; Uroš Orgin, president of Gradis; and Mark Umberger, director of the BMW tennis tournament in Ljubljana. The ambassador, together with his doubles partner Uroš Pivk, just missed out on the first prize, taking a respectable second place.

The Slovenia Times

The US embassy has a new public affairs office. Christopher Wurst (on the right) took up the post in August. Wurst is from Minnesota and joined the United States Foreign Service in 2002. Before coming to Ljubljana he was public affairs officer in Lusaka, Zambia, deputy public affairs officer in Chennai, India, and vice consul in Guatemala City, Guatemala. He also spent time in Islamabad, Pakistan, giving public affairs assistance to the American Mission following the 2005 earthquake disaster. His term in Slovenia will last three years.

The French ambassador has a new chief adviser. Laurent Alberti was born in 1969 in the Rhône-Alpes region, and studied history at universities in France, Germany and Holland. He worked at the French embassies in Hague and Budapest and at the ministry for foreign affairs in Paris before taking up his post in Ljubljana.

REAL ESTATE SPECIAL

The Troubles are not Over Yet The recession in Slovenia’s property market is far from over. Though the sale of apartments has increased in some areas over the summer, the already worrying situation in the construction sector is getting worse – and is stopping the recovery from moving forward. By Maja Dragović October 2010

30 REAL ESTATE SPECIAL

High-end property market has been picking up in the recent months

he summer months have brought some hope to troubled property markets, with agents reporting increase in enquiries and sales across Slovenia. But the increase has just proven that this is still a buyers’ market with those sellers unwilling to reduce prices remaining empty handed.

Good value is the key

Foreign buyers are also coming back to Slovenia. Most come from other EU countries though Russians are increasingly looking to buy here, especially around the coast and in the Gorenjska area. The latest addition to foreign buyers interested in Slovenia are the Israelis who are not really interested in the coast but are looking at properties around lakes and in the mountains. The Slovenia Times

The properties that are currently most attractive are those at lower end under EUR 150,000 or those at the high-end, property agents report. “We have seen an increase in enquires and sales of good value apartments in Ljubljana”, says Eva Jakopin, of Elite Property Slovenia. “However, I have to emphasise the [importance of] good value since there is still an unbelievable number of overpriced properties that, as a result, are sitting vacant. Owners who have taken into account what has been happening for the last two years and have adjusted their prices accordingly are those that are considered to have good value property and are therefore selling.” The area that has seen an unexpected increase in demand is Prekmurje. However, this is not unjustified. “We have seen a big increase in interest from locals in Prekmurje, with the highway finished and properties offering excellent value, it has become a destination now open to people from other areas including Ljubljana,” says Justin Young of Slovenia Estates agency. “Our agents in Prekmurje are busier now than they have ever been with Slovenian buyers.” Gorenjska, on the other hand, has always been a popular area

but it is now seeing more interest from people working in Ljubljana and looking to move a bit further out. With the drive from Bled to the capital taking only 40 minutes, and even less once the highway is completed, the commutability factor is bound to have an even greater impact on the property market in the area. Foreign buyers are also coming back to Slovenia. Most come from other EU countries though Russians are increasingly looking to buy here, especially around the coast and in the Gorenjska area. The latest addition to foreign buyers interested in Slovenia are the Israelis who are not really interested in the coast but are looking at properties around lakes and in the mountains. “Due to the direct flights from Tel Aviv, Slovenia has suddenly come up on the Israeli radar”, says Young.

Financing still a problem

However, the lack of loans is keeping the increase in sales limited. The locals buying property are mainly those without a need for financing. The problems remain with lower end properties and new build properties where lack of financing for first time buyers is dragging the market down – as well as the refusal by developers to lower their prices in line with current market conditions. “If financing for buyers is eased and prices of new-built properties reflect the current over-supply of apartments, then this should help improve the sales in this segment of the market. However, we see very little sign of it yet,” says Katja Keber of Budget Properties Slovenia.

Developers themselves are st ruggling to complete their projects because of their distinct lack of available funds. Many are unable to finish projects without the help of banks – yet those banks have almost completely withdrawn the availability of loans for new projects. Developers are now looking for additional investors who are willing to put their cash forward to finish the projects but many are not ready to compromise on the price. With current conditions and with an oversupply of such investment opportunities, it is yet to be seen how many will be successful. The problems in the construction sector are also evident in the decrease in the number of plots for which a building permit has been acquired. The latest figures from the Statistics Office showed that there were 17 percent fewer apartments under construction in 2009 compared to 2008 – a total of 19,700. However, the number of new buildings was almost level in 2009 compared to 2008, with 5,450 new buildings being constructed in 2009.

A gloomy picture

To make matters worse, the recent bad weather conditions have caused floods in almost half of the municipalities across Slovenia, damaging and destroying countless homes. The floods will inevitably have a bad impact on the market in the affected areas for at least a year, possibly two. Some of those affected are the popular areas of Murgle and Rožna Dolina in Ljubljana, as well as places in Zagorje, Laško, and Kostanjevica na Krki. A gloomy picture of the construction sector’s future was also painted at a recent property market conference in Portorož. According to Boštjan Vasle, head of the Institute of Macroeconomic Analysis and Development (IMAD), the sector is going to see even greater decline in the coming year. The prediction is that by the end of this year the sector will decline by a whopping 15.5 percent. This will in turn have a negative impact on other aspects within the property sector. The banks, often attacked as the main cause for such troubles in the sector, are being accused of taking the wrong stance in the crisis. “The current crisis has scared the banks into going from one extreme to the other. They are now being overly cautious with lending money to developers,” says Andreja Cirman from the Faculty of Economics in Ljubljana. The construction sector is now desperately waiting for a happy medium.

Levji grad, a business centre in Koper. We have merged the past and the present. We have created a realm of the future for you. History is a collage of epic tales, the best of which are still alive today. Levji grad, located in the most eminent area of Koper, offers new opportunities for numerous challenges. The creative spirit that characterises the construction of the new business centre will turn the coastal town into a cosy place with a hint of prestige. We offer more to those who do their work well and who expect no less than the best from life. Welcome to Levji grad. Welcome to the best!

The Key to Success Are the Paths We Choose The business centre will be located in the most eminent area of Koper. It is the place where a famous fort called Levji grad stood in the era of the Republic of Venice. The fort functioned as the entryway and the control point connecting the island where the town of Koper used to be situated with the mainland.

Distinguished Modernity The centre has a business facility area of 14,195 m2 in total, and 343 parking spaces located in an underground garage. Its structure functions as a whole while containing three individual independent segments with a different number of floors ranging from G+4 (one ground floor plus four floors) to G+7 (one ground floor plus seven floors) where different types of businesses can be run in one place.

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Its exterior design is exceptional. The combination of a glass facade and a net of steel ropes gives the building an air of modernity, meticulously designed and carefully placed within the architectural context.

Inspired by the name, we have designed an establishment that Koper will take pride in. Built on the busiest highway to the town, it will connect on a symbolic level the old city centre with all the administrative and infrastructural facilities located in the immediate vicinity of the new business centre. Banks, courts of law, the Land Registry, the Port of Koper, the administrative unit, the marina, shopping centres, health care facilities, schools, and the Bonifika Sports Centre can all be reached on foot in no more than a few minutes.

An indomitable spirit will characterise not only the exterior of the centre but also its interior. The exclusive elegance of the interior creates new dimensions for business facilities, while the stairways dividing individual areas represent an ideal place to exchange creative ideas even on the busiest days. A dynamic exchange of open and closed spaces will take you to a realm of bold practicality at your workplace, suitable also for receptions and other social events. Glass structures will shield your business meetings and gatherings, and the nearness of the sea will brighten your days in the office. The design of the centre offers a vertical or a horizontal optimal division providing space for several small users who wish to establish individual business units. The centre as a whole can also be used as only one business unit. Apart from the attractive design, the practical use, the quality of the working environment, low maintenance and operating costs were our top priorities during this project.

Net floor area Building 1

5,796 m2

Number of floors Building 1 1 ground floor + 7 floors Net floor area Building 2

5,670 m2

Number of floors Building 2 1 ground floor +7 floors Net floor area Building 3

2,728 m2

Number of floors Building 3 1 ground floor + 5 floors Total net floor area Parking spaces Basement 1, 2, 3

14,195 m2 343

Thus, we have chosen durable materials, optimal lighting, good ventilation, insulation and energy systems on the basis of which the class-B1 Energy Certificate has been issued for the facilities. In addition, restaurants, shops and other small businesses providing a range of different services on the ground floor with the atrium will maintain a certain balance and offer a place for socialising and relaxation in work hours.

Ensuring Quality • The project has a valid building permit and the classB1 Energy Certificate • The plot has already been equipped with all the necessary infrastructural facilities. • The business facilities in question can be handed over within approximately 21 months of the signature of the contract. • The building or the business areas may be bought or rented as a whole or by individual parts.

CONTACT Mr Robert Rožac, Company Director of IP OBALA d.o.o. T: +386 1 5816 210, robert.rozac@energoplan.si, www.energoplan.si

32 REAL ESTATE SPECIAL

Real estate tax

Not Too Taxing? In mid-July, Slovenia’s Ministry of Finance proposed a new tax on property in the country – a significant change which it believes is vital to creating an effective real estate taxation system. New taxes are rarely welcomed by those they are set to affect, but this change is proving to be an exception. The reason is simple: real estate experts in Slovenia believe that, far from hindering the market, the new tax could provide a real opportunity to improve it. If, that is, the new tax is implemented with care.

The new tax is designed to replace three existing ones: real estate tax, compensation for the use of building ground, and the fee for maintenance of forest roads which is paid by owners of forest land.

he 1 January is always a significant date: the start of a new year. But for Slovenian property owners and those who work in real estate, 1 January 2011 will have additional significance. For if the government has its way, that will be the date on which a new property tax comes into force. Since July, politicians have been debating a draft law from the Ministry of Finance which will represent a major shakeup in property taxes. The Ministry argues the change will create a comprehensive, integrated and equitable system of property taxation; one which will ensure an adequate source of funding for all Slovenia’s municipalities. The new tax is designed to replace three existing ones: real estate tax, compensation for the use of building ground, and the fee for maintenance of forest roads which is paid by owners of forest land. Under the new system, tax rates will be determined by individual municipalities depending on the type of property – so allowing municipalities to more easily implement their real estate and spatial policies. The taxable amount will be determined on the basis of generalised market value, calculated in the process of real estate mass valuation performed by the Surveying and Mapping Authority (GURS).

This mass of valuation data – which will be revised once a year from here on out – is one of the main reasons that the new tax is being welcomed by those who Valuing a survey work in the real estate That valuation is one which resector. cently reached its initial concluThe Slovenia Times

sion. In late September, GURS revealed that Slovenia’s 6.1 million properties have a combined value of around EUR 165bn. The figure was derived from a massive appraisal which has been ongoing since 2002 – a valuation of the 550,000 houses, 300,000 apartments, 380,000 farm buildings, 30,000 industrial buildings, 80,000 bars and offices, 1.7m forest plots and around three million farm plots which are registered in the country. Slovenia property owners have recently received the first ever government-sanctioned valuation of their property. This mass of valuation data – which will be revised once a year from here on out – is one of the main reasons that the new tax

is being welcomed by those who work in the real estate sector. “[With the new tax] we will get publicly available information on property value,” explains Jožef Murko, director of real estate agency Dodoma. “Just look five years back and compare it to the present level of information, and you will see how important it is to create a transparent and open real estate market. [The new data] will eliminate asymmetry of information on developments in the real estate market.” Zoran Veleski, director of real estate agency Mreža Nepremičnin, agrees that the availability of such data is a welcome development: “We can finally expect the normalisation and segmentation of

The amount of compensation for the use of building-ground from 2003 to 2008 (in ‘000 000 EUR) 150

100

2003

2004

2005

2006

2007

2008

Source: SURS

By Simona Kuhar Gaberšček

“How the municipalities will decide on their premium tax is yet to be seen,” warns Velesk.

Absolute power corrupts absolutely

Jožef Murko, director of real estate agency Dodoma

taxes according to the value of the property. The law on property tax is necessary because different taxes should be regularised.”

The devil’s in the detail

That is not to say there isn’t any caution about the new law. The agreement seems to be that the theory is good, but that it will have to be seen how it works in practice. “If the tax rates determined by municipalities were significantly higher than the current taxes, it could affect the real estate market,” argues Zoran Madon of real estate firm Metropola. “[You would see] a higher supply of real estate whose tax burden would substantially increase, and that would lead to the decrease of prices for such property.” “There could also be substantial differences in taxation of similar properties across the country, and consequently the areas with higher tax burdens would become less attractive to potential buyers,” Madon reflects.

Zoran Madon, director of real estate company Metropola

And so what many regard as the major advantage of the new tax – the fact it will give more control to municipalities – also seems to be a massive potential drawback. While municipalities will have to have a minimum 0.03 percent tax rate, no maximum has been set. This is a mistake, argues Veleski. “The maximum tax rate should be restricted,” he says. “In addition, it is necessary to clearly establish the criteria for taxation of non-building land and to develop a clear legal basis for rental and leasing relationships.” Others are far more relaxed. In the opinion of Jožef Murko, the draft law is ideal and perfectly matches its aims. And he has no concern over the possible effect on property prices. “I am certain that the property tax will not affect the prices of real estate, if the draft law is accepted in its present form,” Murko proclaims. “If the tax rates stay at predicted levels, reasonable and responsible owners will not sell their property because of the new tax.”

Take the opportunity

In fact, Murko’s worry is the opposite of Veleski’s: he fears that municipalities will not make the most of the change. “I am not sure if the municipalities are aware of how powerful a tool this is for their future development,” says Murko. He is also worried that the politicians who are currently finalising the law will act contrary to its goals and determine too many tax exemptions. At present, exemptions are predicted for buildings of local or national importance, cultural monuments, religious facilities and property owned by foreign countries and international organisations. Ultimately, then, the situation is a complex one. The new property tax seems to have the potential to make real and positive changes to the Slovenian real estate landscape: simplifying matters, providing useful data on the value of properties, and giving power to the municipalities. But there are worries. Quite how will municipalities use their new powers? Heavy handedly? Ineffectively? And will the law as it stands at the moment be the law that is ultimately passed? Or will the politicians water it down? At the moment, only one thing appears certain: come next year, Slovenia will have a vastly different property taxation system.

Profil d.o.o. Parmova 53, 1000 Ljubljana, Slovenia Phone: +386 01 280 54 00 Fax: +386 01 280 54 09 E-mail: profil@profil-group.com www.profil-group.com

By Jani Zupan, MBA, Profil d.o.o.

Self confident… or over confident? Self confidence is a key attribute of a successful manager but it must never turn into over-confidence. Recent months have brought an array of examples of “immersed managers” in Slovenia. Managers at Vegrad and some other companies have been tried in the court of employee and public opinion and been found wanting when it comes to leadership, principles and personal responsibility. But what brings about such a state of affairs? Is the failure really the result of managerial incompetence during a period of economic ambiguity? Or does it perhaps reflect the manager’s personal characteristics: their personality type, their values and, just maybe, their overconfidence? When I think of the managers that I admire and want to be around versus those that I don’t, the main factor is not only their skill in the moment. Rather, it is whether or not they care about and are working on important questions like: what does it feel like to work for me? How do my employees, peers, bosses, customers, and other people see me? What are my strengths and weaknesses? Recently I have seen several public statements from “fallen managers” who simply don’t understand the importance of such questions. Good managers are listening and waiting for evidence that they might be wrong. They have an ability to act confidently on what they know, while doubting their knowledge in every situation. Even though early economic signs suggested the opposite, some managers retained the belief that excessive leverage is the key to growth. For those individuals I believe “leverage” is in fact a euphemism as borrowing was used to support consumption (for example management buyouts) as opposed to levering anything such as technology investments. The challenge, then, is how to be humble and self aware enough to diagnose overconfidence and change course appropriately. Leadership development consultant John Baldoni has described some warning signs of overconfidence: 1.) You make many decisions independently: How much do you ask for others’ input? 2.) You can’t remember the last time you spoke to a customer: Failure to discover what people think about what you offer is not only foolhardy, it’s a recipe for failure in the future 3.) You always have lunch with the same people: Be ready to receive alternative views 4.) Your team always seems to agree with you: Surrounding yourself with people who can only do one thing – nod – is a guarantee for disaster 5.) When something goes wrong, the first thing you ask is, “Who’s responsible?”: It’s likely you are overemphasising accountability at the expense of problem-solving At Profil, the number one executive search consultancy in South Eastern Europe, we continually focus on leadership competencies that are founded on ethical, moral and social values. Leadership is a relationship, the priority of which should be to develop the self and others. Avoiding the trap of overconfidence is a big part of succeeding in this relationship. PROFIL is an independent human resources management consultancy, established as a limited company with private capital in 1989. It was the first consulting company in Slovenia and in SE Europe to provide executive search and selection services. They operate in Slovenia, Croatia, Serbia, Bosnia and Herzegovina (BiH), Macedonia, Albania, Kosovo and Montenegro. The logo says it all: Three smiling faces, representing happy Client, happy Appointee and happy Consultant.

October 2010

34 REAL ESTATE SPECIAL

Construction industry

Building for Better Times? Construction companies in Slovenia have slaved over the summer in the hope of moving from struggling to surviving. Have their efforts paid off or is the sector facing a cooling as abrupt as that of early autumn weather? By Aleš Šinkovec that have been affecting Vegrad, but is even in the black. Under the leadership of Dušan Črnigoj, the firm has posted just under EUR 5m in profit. Why has Primorje flourished where Vegrad has struggled? Primarily because of the type of construction projects it has undertaken. Vegrad was, and many argue still is, too heavily exposed to the real estate market. Primorje has a much more diverse portfolio. The firm is in the process of building a container terminal in the Port of Rijeka, a waterworks in Belgrade, and a bridge across the Bojana River in Montenegro. As is evident from this list, Primorje is seeking projects outside of Slovenia “believing that a significantly higher proportion of construction activity abroad is currently central to coming out of the crisis”.

Looking overseas

Primorje has been involved with a few projects in the Balkans, such as the Millenium Bridge in Montenegro’s capital Podgorica, helping the company stay afloat during the crisis

SCT, the country’s largest construction company, is also seeking international contracts – with some success. It has already secured a group of projects in Libya, possibly worth up to EUR 2bn. If the business plan is realised, then the company’s stable and prosperous future is all but guaranteed. The Slovenia Times

he summer of 2010 has ended and hopefully, along with it, the woes of the construction sector. Many feel that if the September rains have to wash something away, it may as well be the struggles large companies in this critical sector have been experiencing. After all, the economy could not survive the failure of such key players; such a torrent of unemployment would certainly end the current positive outlook. It may have been discussed ad nauseum, but the case of Vegrad remains the best place to start when analysing the state of Slovene construction – primarily because it was the closest to collapse. After many weeks and months, the firm’s exact fate remains unclear, but there is definitely much greater hope. Highly criticised general manager Hilda Tovšak has finally been replaced (by Boris Medved); the company is still proceeding with a plan to restructure its debt; and most im-

portantly, workers have received almost all of their back pay. Certainly, Vegrad’s troubles are far from over. But it is getting back on to the road to recovery – and it is not alone.

Reversing the trend

The second largest construction company in Slovenia, Primorje, has been affected by the economic downturn in the same fashion as its competition. It even had to resort to applying for state subsidies for sending a third of its workers on forced leave. When asked how they would describe the state’s crisis measures, they stated that they “are welcomed and evaluate them as positive” adding that “only the state is that, which can alleviate the crisis...it is crucial that the state will continue to promote investment activity”. It seems that the subsidies have indeed made a difference. Primorje has not only managed to stay away from the kinds of problems

Primorje is not the only construction firm looking for work outside of Slovenian borders. SCT, the country’s largest construction company, is also seeking international contracts – with some success. It has already secured a group of projects in Libya, possibly worth up to EUR 2bn. If the business plan is realised, then the company’s stable and prosperous future is all but guaranteed. This development would be in stark contrast to its current yearly loss. The deal in Libya was achieved with major support from the government, including the Prime Minister. It has been hailed as a victory; not only for SCT, but for a possible consortium of Slovenian construction companies because of the vast size and vast funds. But to prevent this so called ‘deal of the century’ stalling, SCT needs guarantees from Slovene banks. And even banks that are majority state-owned are questioning whether to support the firm. So while there are promising developments, the Slovene construction sector certainly isn’t out of the hole quite yet. Most are now desperately hoping that this will be a fruitful Autumn and not the Fall.

36 REAL ESTATE SPECIAL

Interview: Borut Božič, director of Raiffeisen Leasing

Feniks Set to Fly With an enviable location on Letališka Cesta in Ljubljana, the Feniks Business Centre looks set to become one of the top such facilities in the Slovenian capital. According to Borut Božič, director of Raiffeisen Leasing – the firm building the Centre – Feniks will offer benefits not just for those who will occupy it, but also for the Letališka district.

Foto: Aleksander Štokelj

No, there are no specific plans. The only type of business that has not been authorised for the Centre is retail. But there can be craft rooms, show rooms, doctor’s offices, notaries, perhaps even banks. A restaurant is planned in one part of the building. The rest will be formed as classic office space.

Feniks Business Centre’s big advantage is that this will be a quality construction which will increase the overall value of the Letališka district. The Slovenia Times

What are the advantages of the Feniks Business Centre? There are many. The first is location: we are close to both BTC and the motorway bypass. The building is within the borders of public city transport, and at the same time only 500 metres away from the highway. Another big advantage is that this will be a quality construction which will increase the overall value of the district. Letališka has always been known as an industrial zone, but over the years new projects have been slowly developing in the vicinity. I also think the price of our premises will be very attractive. Offices in our building will be available for rent for EUR 13 per square metre. This is a reasonable price even during a recession – other locations that are closer to the centre charge as much as EUR 17 or 18 per square metre.

How far have you come with construction on the Feniks Business Centre? We are essentially on schedule – there have been no specific delays. We have now signed a contract with the contractor for the third construction phase. Once that is complete, we will sign a separate contract for finalisation. That gives us more flexibility, and means that the finished building can be adapted to the needs of buyers. We are already taking reservations from potential buyers. We estimate that the building will be completed in April 2011.

Have you considered sustainable development while constructing the building? Have you used any environmentally-friendly materials? All materials used for t he building will be modern. Currently we are discussing whether to obtain an energy certificate. This would require us to meet certain standards: a better facade and thermal insulation; a certain percentage of renewable energy sources, meaning heat pumps, solar power panels on the roof and so on. This course of action would reduce the running costs for the building by about 40 percent. Office buildings like the Feniks typically have running costs of about EUR 4 per square metre, but were we to obtain an energy certificate the cost would be less than EUR 3.

Will specific floors have specific types of tenants?

What will the minimum rental period be?

Our hope would be a minimum of five years. There are two different approaches when it comes to this. Banks tend to advise aiming for long-term tenants. Certain real estate experts, however, say long-term contracts may not be the wisest choice because the market may turn around in a couple of years and we could increase our rent prices. But we regard that as simply part of business risk. What about institutional investors? Well, we do not necessarily need to sell space – it would be just as good if we could fill it with tenants. We have also set a very specific strategy. Namely, those who want to buy will be offered space in Building C; those who want to rent will be housed in Buildings A and B. We would like the buildings to be filled with either tenants or owners, but only one sort in one building. How will the rent be managed? While remaining the owner, we will lease these premises and hire a sort of operational manager. We do not have such resources of our own and will, therefore, find a manager from among the companies which do. A manager is actually needed in cases both of propriety and leased space. What about parking? Again, parking space can either be bought or hired. The net selling price is EUR 6,000 plus VAT, while the monthly rent is EUR 60 plus VAT. There are three basements built in a mezzanine system, since we were limited in depth because of the underground water problem in Ljubljana. The basements are indented, so we got three mezzanine levels from an actual one and a half. There are 325 underground parking spaces and 90 more alongside the buildings. The spaces are connected underground, but that connection can be closed. If someone bought two buildings and wanted to have two garages, for instance, doors could be put in as a barrier.

Developer:

38 REAL ESTATE SPECIAL

Ljubljana spatial plan

The New Space Age Ljubljana City Council has approved a new spatial plan for the capital – the first since the mid-eighties. Supporters say it will bring massive benefits for the city. Critics say it will bring massive personal benefits for the mayor and other politicians. Meanwhile citizens wait to see what practical impact the plan will have on life in Slovenia’s capital – and when. By Claire Read

Ljubljana’s new spatial plan was initially drafted in 2007 but had to be amended a number of times before finally being passed by the City Council in July 2010

n October 2007, a draft spatial plan for Ljubljana was presented to the City Council. So much criticism was encountered that an amended version was created in April 2008. Further amendments were made in December 2009. In July, the Council finally passed the plan. In short, the path from creation to passage of the plan hasn’t been a smooth one. Nonetheless, many remain optimistic that the hard part is over and that the plan can and will transform Ljubljana. It represents a number of firsts: the first comprehensive, long-term urban plan since the mid-eighties; the first plan created for an independent Slovenia that is a European Union member; the first to factor in the need for sustainable development. It also serves as a sort of pilot for the rest of the country since it is the first test of the new legal framework set by the spatial planning act.

A compact city

Architect Fedja Košir has started a referendum petition to block the new plan The Slovenia Times

The changes the plan proposes are numerous. It foresees, for instance, changing the four city thoroughfares – Celovška, Šmartinska, Dolenjska and Tržaška – into avenues, with the road between Črnuče borough and Ljubljansko Barje becoming the main city road.

It also proposes renovations to areas of cultural heritage and areas which have fallen into disrepair. The primary aim of the plan, though, is to create a compact city which spreads inwards rather than outwards. This is in contrast to recent developments: increasing numbers of people have chosen to move to nearby municipalities and then commute into the capital for work. The plan argues that challenging this trend – and improving Ljubljana – is a matter of changing the land use category for abandoned or poorly used areas. And so, under the new plan, 889 hectares of agricultural land will be reclassified. 278 of those hectares will be used for traffic; 200 for residential areas; 157 for green zones; 43 for tertiary and quaternary sectors; and 58 for industry.

Suspicions

It is this change in land use which has proved the most controversial aspect of the plan, even though the town’s chief architect argues the reclassifications are not all that dramatic. “The quantity of land that has undergone primary change of land use, from agricultural land to building land is fairly modest,” says Miran Gajšek, the chief architect at the Ljubljana municipality. “Most of the development will occur as redevelopment, regeneration and renewal.” Architect Fedja Košir disagrees. He argues that green areas of the city will be significantly reduced under the plan, and is attempting to trigger a referendum on the issue. Others, meanwhile, smell corruption. Many opposition councillors criticised the late filing of materials and amendments, saying it did not leave sufficient time for proper review and discussion. There is concern that some of these late amendments may be personally beneficial to the mayor and other politicians.

land in the Smodinovec area. Initially, the land was to stay in its current agricultural state – a decision backed by the Ministry of Agriculture, Forestry and Food, which has been cooperating with the municipality on the spatial plan for three years. On 11 June, however, the plan for the land in Smodinovec was amended. It was designated for the public infrastructure of the national motorway company and the Interior Ministry. Then there was another change. The land would be changed into a business area, and be home to a road safety centre. The Ministry of Agriculture, Forestry and Food objected. Then the media reported that the land had been bought by an acquaintance of Ljubljana Mayor Zoran Janković. The Mayor quickly issued a denial, saying that none of his family or friends had deliberately bought land which would change under the spatial plan. And so, three months after it passed City Council and three years after it was first drafted, the spatial plan remains that – a plan. All seem to agree that a new long term programme is needed for a city whose position has changed so much in recent years. The question now is quite what that programme should be.

The Smodinovec debate

The issue has been epitomised by a debate over 3.6 hectares of

Ljubljana council’s chief architect Miran Gajšek says the change in land use is minimal

A New Meeting Place in the Heart of the City

EMONIKA SHOPPING & ENTERTAINMENT CENTER The project Emonika City Center that TriGranit Development Corporation will be developing is in the very centre of Ljubljana, right next to the main railway and bus stations. The project will be in construction soon, though not yet by the end of this year as was originally planned a few months ago. Even though the company has gone through many formal and non-formal obstacles on the way, they are determined to finalise the project and give Ljubljana the long awaited new bus and train stations along with commercial facilities that will bring a new perspective to this area of the city.

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With a combination of various stores, selected brand mix, a unique food court area and an entertainment sector, The Emonika Shopping & Entertainment Center will offer its visitors a completely new shopping experience. It will be built on more than 40,000 square metres, with three levels and another three underground levels with parking for more than 1,800 cars. The multifunctional complex Emonika, designed as a unique combination of business, shopping and entertainment centers with a direct connection to the main city bus and railway stations is set to become the leading business and entertainment hub of Ljubljana. The new meeting place for all

Ljubljanaâ&#x20AC;&#x2122;s citizens and visitors is located in the centre of the city, within walking distance of Ljubljanaâ&#x20AC;&#x2122;s key historical and cultural sights, right next to the main bus and train station, close to the city hotels, government buildings and faculties. The center is going to be easily accessible on foot, by car, bus or train. TriGranit is a fully integrated property investment, development and management company, with operations in seven countries and award-winning projects in Central and Eastern Europe. It was ranked the third largest

retail developer in Europe and has already been present on the Slovenian real estate market for five years. In this time they have learned and realised some procedures just cannot be done sooner or quicker for this or that reasons. The entrepreneurial spirit of TriGranit enables the company to operate with unrivalled decisiveness, energy and perspective, needed to identify strong growth opportunities. Construction of Emonika will begin by Spring 2011. Completion is planned for the year 2013.

Starting Signal for New Shopping Centre in Ljubljana-Šiška A new landmark for Ljubljana: SES develops a trailblazing shopping center project in the Šiška district

Construction is to begin on a new shopping centre in Ljubljana. The district of Šiška will be home to the new EUR 100m facility, which is being developed by Šiška SES Spar European Shopping Centres. Directly situated on the H3 city freeway, approximately 90 shops, restaurants and service providers are planned along with 32,000 square meters of leasable space plus and about 6,000 square metres of leisure space. In addition to shopping opportunities, the new centre with its reduced-traffic plaza will be a new location for culture and quality leisure time pursuits. The significance of location in the heart of the city district is of foremost concern and the new centre is designed to transform Šiška into a vibrant and lively city district.

A City Plaza for Šiška

“We will set new standards with the Šiška Shopping Centre and provide Ljubljana with a new landmark,” says Marcus Wild, chief executive of SES Spar European Shopping Centres. “Ljubljana will receive a perfect addition to the existing retail landscape of the town centre. The reduced-traffic concept will transform Šiška into an urban meeting place, a vibrant city district with one of the most attractive shopping destinations in the city.” Currently, fitness/wellness facilities, libraries and other institutions are under consideration for inclusion in the complex. The new centre is designed to enable its restaurants to remain open

beyond standard retail hours and will also provide a lively rooftop terrace. SES contracted the renowned architectural firm ATP Architekten & Ingenieure to ensure complete and holistic planning. ATP also designed the ATRIO shopping centre together with SES, which achieved international recognition in 2009 when it was proclaimed best-of-the-best for its sustainable design.

Perfect Blend of Retailers and Restaurants

The Šiška centre is to provide a broad assortment of the best regional, national and international retailers, restaurants and service providers. The goal is to bring innovative top labels and new stores into the Slovenian marketplace for the very first time. INTERSPAR will be the anchor tenant in the centre and will open the doors to its most modern INTERSPAR hypermarket in Slovenia with around 5,000 square metres of shopping space.

Architecture and Functionality

The shopping centre will have two shopping levels that are connected via elevators and escalators. SES considers the functionality of a shopping centre very important: the generous architectonic use of space plays with the elements of light and water throughout the entire mall – even the parking spaces are extra-wide.

Newest Energy Concepts

The Siska centre is planned as a sustainable shopping centre. It is the first time that a BREEAM Certificate – the most significant European standard for sustainable retail property – will be sought by a Slovenian shopping centre. The newest energy standards relating to CO2 emissions, the adoption of energy expenditure measurement systems, the use of sustainable materials and a holistic real estate management concept are all included in the master plan. The shopping centre will also be closed off to automobile traffic on the sides facing the city so providing the maximum possible reduction of emissions, noise pollution and particulate matter. Special care will be taken to provide access to the existing public transportation network as well as to produce an effective infrastructure for bicycles and pedestrians. Completion of the impressive centre is scheduled for September 2012. advertisment

More information on the project Project Management Šiška Center Ljubljana SES center management d.o.o. Letališka cesta 26, 1000 Ljubljana, Slovenia Tel.: +386 1 587 30 55, office@ses-european.com

More information on SES SES Spar European Shopping Centers GmbH Söllheimerstraße 4, 5020 Salzburg, Austria Tel.: +43 662 4471-7110 press@ses-european.com

www.ses-european.com

Best Shopping Centers in the World SES is specialized in developing, constructing and managing first-class retail real estate at an international level. SES stands for innovation, superlative architecture and sustainability. SES operates 24 shopping centers with a total leased space of ca. 700,000 square meters. The 1,600 leasing partners of SES achieve over two billion Euro in gross annual sales. NO. 1 IN SLOVENIA SES is the market leader in Austria and Slovenia in the shopping center industry. CITYPARK Ljubljana, EUROPARK Maribor, CITYCENTER Celje and CENTER INTERSPAR Vic are managed by SES. SES shopping centers were recognized as “the best shopping centers in the world” in 2007, 2008 and 2009. YOUR SHOPPING CENTER SPECIALIST Learn all about our projects currently under development and get ahead with our international know-how. SES provides complete service. - Development - Construction Management - Leasing - Center Management / Facility Management - Asset Management

SES Spar European Shopping Centers AUSTRIA HUNGARY SLOVENIA CZECH REPUBLIC ITALY CROATIA CITYPARK Ljubljana

EUROPARK Maribor Š IŠ

K A OM , L ING JU BL S O JA O NA N ,2 : 01 2

For more information please contact: SES Spar European Shopping Centers GmbH, Söllheimer Straße 4, 5020 Salzburg, Austria, T: +43 662-4471-7171, www.ses-european.com

42 REAL ESTATE SPECIAL

Bovec

A Literal and Metaphorical Earthquake The real estate sector in the Upper Soča Valley has had to suffer the metaphorical earthquake of the financial downturn as well as the literal quake that took place there in 1998. The former has been weathered relatively well, but the latter is still having an impact. By Simona Kuhar Gaberšček EUR 900 to 1,000 per square metre, depending on location and adjacent land,” says Gaberc.

Slow sales

ovec is arguably one of the most beautiful places in Slovenia. Located in the mountainous province of Bovško in the Julian Alps, it is known by its emerald river Soča. Its beauty is such that tourism is becoming increasingly important to the region: it offers plenty of opportunities for recreation, from skiing in the winter in popular ski centre Kanin to biking, climbing and rafting in the warmer part of the year. The gradual growth of tourism in the area means that property prices here are lower than in

Real estate agency Geacomm is selling two apartments in the attic of a house in the centre of Bovec, which was constructed in 2008 The Slovenia Times

many other visitor-friendly parts of Slovenia. It also means that the effect of the recession on real estate has been less significant. “Potential buyers as well as tourists have only just begun to discover the upper Soča valley in recent years,” says Ingrid Gaberc of real estate agency Geacomm. “That meant that prices in Bovec and the surroundings were lower than in other tourist centres, and means that the recession has had less impact on prices than elsewhere.”

Customers buying smaller apartments

Less impact, perhaps, but certainly not zero impact. Gaberc’s firm estimates that property prices in this area fell on average between 8 and 10 percent. The average price for an older flat is now between EUR 1,400 and EUR 1,850 per square metre, depending on location, condition and size. Smaller apartments and studios have a higher price per square metre. Newer apartments can be sold for EUR 1,900 to 2,200 per square metre. A case in point is an apartment Geacomm recently sold in the centre of Bovec: it went for EUR 2,125 per square metre. Similar prices are also reached for weekend or holiday homes. “In our estimation the price of houses should be a maximum of

Sales, however, have been slow. Over the past two years there were almost no real estate transactions in the Upper Soča Valley: “Smaller apartments were most sought after. We noticed demand for houses and land, but it did not result in sale,” says Gaberc. Gaberc reports that foreign customers have responded to the recession in a similar way to locals: some have decided to sell their property because of the high maintenance and travel costs if they have only been spending their leisure time there. “All customers, foreign and domestic, are much more cautious when buying or selling real estate. They make a purchase decision only after a thorough review of documentation and according to their financial capabilities,” according to Gaberc.

The real quake

But the recession is far from the biggest challenge that has been faced by the Upper Soča Valley in recent years. That title goes to the earthquake that hit in 1998. Recording 5.6 on the Richter scale, the quake was one of the strongest ever to hit Slovenia. Some 4,000 buildings were damaged – some still haven’t been repaired. And new constructions are scarce. “The construction trend was slower in comparison to other Slovenian regions, mainly due to refurbishment and replacement works after earthquakes,” explains Gaberc. Of course the financial crisis has hit the construction industry hard. Many investors in the Bovško area have postponed planned developments due to a straightforward lack of funds. Nonetheless, the region is continuing to rebuild: both from the financial crisis and from the 1998 earthquake.

REAL ESTATE SPECIAL 43

Kranjska Gora

Ski Slump Kranjska Gora is one of the most popular ski resorts in Slovenia, attracting visitors from both within the country and outside. It also used to have one of the most active real estate markets in the country. The financial downturn changed that, with prices declining at least 20 percent in the last two years. Experts say the market is now improving, but a complete revival still seems to be a long way off. By Simona Kuhar Gaberšček

ranjska Gora is a world-famous ski resort. Located in the north west of Slovenia – on the border with Austria and Italy, at the foot of the Julian Alps and Karavanke, in the narrow area of the Triglav National Park – the town may still be a popular haunt for those who love to ski, but its popularity with property hunters has slumped significantly due to the recession. “Before the recession prices in Kranjska Gora were very high, especially compared to the nearby ski property abroad,” says Maja Bogataj Jančič, who owns development company IPI Investicije together with her husband Matjaž Jančič. “The average price for a new construction was between EUR 3,600 and EUR 4,000 per square metre, while some properties even exceeded the price of EUR 4,500. Everything was being sold, from quality apartments to ‘dumps’.”

No sale

Those days are over. “Prices of real estate in Kranjska Gora have definitely fallen,” confirms Samo Židan from real estate company Agencia. “It is difficult to estimate how steep the decline was, because there were actually no transactions for some types of real estate. The only exception is residential property, as we sold some apartments.”

Židan underlines that Kranjska Gora is an unusual market because people do not buy property to live there, but for their leisure time. “Properties in Kranjska Gora are luxury goods and they are bought by those who have surplus money. Among the buyers are especially younger pensioners and families with smaller children,” explained Židan. Jančič agrees: “Nowadays, the best customers are wealthier families or couples who wish to invest their savings in vacation properties, for the pleasure of their children and grandchildren. Customers

who would like to buy apartments for occasional rental are also awakening, as Kranjska Gora is interesting in both summer and winter.”

Where are all the Brits?

In spite of the slump, property is still being developed. IPI Investicije has recently finished construction of a vacation house with twelve apartments. But Jančič says that the target audience has changed. “In the planning stage we evaluated the market and set our target: Slovenian and foreign customers, especially British. Because we

were competing with Austrian and Italian investors for British customers we formed very competitive prices. A major UK real estate agency, which sells real estate in the Alpine regions of Europe, gave as a visit and was thrilled with the project. But then the recession and banking collapse in UK washed up the idea about our cooperation in the market, practically overnight,” says Jančič. The green shoots of recovering may now be appearing, but it seems it will be some time before British and Slovenian buyers flock back to Kranjska Gora.

Modern design with traditional architecture The apartment house built by IPI Investicije is situated in Log, a kilometre from the centre of Kranjska Gora. Finished at the beginning of summer, the property has already gained interest from potential buyers – one apartment has sold and reservations have been placed on two others. Prices are on average from EUR 2,400 to 2,550 and customers have the option to buy a completely furnished apartment. Most of those customers are Slovenian and from the Ljubljana area. October 2010

44 REAL ESTATE SPECIAL

Pohorje

Seize the Opportunity Pohorje definitely has something special about it – you are in the beauty and serenity of nature but at the same time just 10 minutes away from Maribor city centre. Owning land there is a tough proposition, though, given that most of it is reserved for agricultural purposes. By Mateja Novak »Currently on our books is an apartment development called Pohorske Terase«, says Fleisinger. »The price varies between EUR 131,675.12 for the smallest unit up to EUR 372,136.67 for the larger ones. The development is located near the ski slopes with a beautiful view of Maribor.« Most buyers remain locals – drawn from a radius of around 100 kilometres, they know the area well. Only a few foreigners have come to the region, mainly the British. »Because of its natural beauty, sports, tourist and civic infrastructure, the Pohorje area is very highly regarded by the local population« says Marko Grujič who used to work for MTB developers. He adds that demand is picking up, though more on an individual level rather than from big investor groups.

Right time to invest With Maribor being the European Capital of Culture in 2012 and hosting the University Games in 2013, the city and its surroundings hold a lot of potential for possible investors

s with the rest of Slovenia, the property market in and around Pohorje is in a slight recovery phase. The prices of apartments and cottages have fallen by 10 to 30 percent compared to 2008 but the prices of land have remained the same. And Radvanje, the area around Pohorje, is becoming increasingly popular with professionals from Maribor – and no significant price falls have been registered there. »In the last three months interest in buying property on Pohorje

Simon Fleisinger of real estate agency RE/MAX Upra-Stan says the property market around Pohorje is coming out of recession The Slovenia Times

is on the rise, particularly parcels and weekend homes«, says Simon Fleisinger of real estate agency RE/MAX Upra-Stan. »There has also been an increase in interest for Radvanje and its surroundings – meaning the location around Pohorje from Maribor direction – because the new gondola has enlivened expanding tourism activity.«

Limited options

Even so, the number of transactions has fallen since 2008. Not that there are that many potential transactions in any case. Since Pohorje is an area primarily intended for farming, most land is defined as agricultural. The remaining portion, such as Hočko Pohorje, is built up around the Tisa Hotel as a weekend resort. Most tourist facilities are in the area of Belvija and at the foothills of Pohorje named Mariborsko Pohorje. It is important to remember that Pohorje sells little agricultural land and if it does, the farmers in the area buy it for themselves as agricultural tourism is becoming very popular. That means that any new developments are worth investigating.

Pohorje has much going for it, both now and in the near future. The new gondola has been out in place since last winter; Maribor is to become the Culture Capital of Europe in 2012; and the city will host the University Games in 2013. This promises some development when it comes to real estate. »Both events demand a lot of work on the construction of new buildings in town and its surroundings as well as at the foot of Pohorje where the construction of large complexes is planned,« says Fleisinger. »These two events are generators for the next investment cycle and fast cultural development, Grujič agrees. » Also at the present moment, Maribor, with Pohorje, is a very unique place and ever more visitors are impressed with the combination of the old city with its culture and festivals, combined with beautiful nature at its slopes, where there are beautiful skiing grounds in the winter, hiking, and mountain bike trails in the summer, just 10 minute bus ride from the city centre.« Both experts suggest that now is the right time to buy, especially in Pohorje’s vicinity. With so much in the pipeline, and limited opportunities, it sounds like good advice.

REAL ESTATE SPECIAL 45

Infrastructure in the emerging markets

Long-Term Stable Real Yield Investors who prefer to prioritise dividends, coupons and interest over capital return face slim pickings at the moment but there are sectors that offer hope: among them, the infrastructure sector in emerging markets.

ost influential central banks are keeping interest rates at record low levels. The result they hope, will be economic growth. But there is a side effect – almost zero yields on treasury bills, commercial papers, bonds and bank deposits. Investors who had enjoyed substantial dividend yields from such sources are facing very different times. These days banks, insurance companies and others are primarily engaged in balance sheet restructuring and ensuring necessary liquidity. In turn, the majority of financial companies have significantly decreased their dividend policy. Lower dividends combined with record low interest rates are definitely not a good combination for revenue-oriented investors. What revenues are yielded from investments often fall short of expectations and it is becoming increasingly difficult to find the right investment opportunities.

Infrastructure boom in the Emerging Markets

In these challenging times, there are however a few interest-

ing bright spots. One is the infrastructure sector in the Emerging Markets, which enables both promising long-term capital yield and stable regular payments in the form of dividends. There are a number of explanations for the promise of this sector. One is its massive potential for growth. According to analyst estimates, global outgoings for reconstruction and building of infrastructure to 2015 will exceed US $2 trillion and in the following 35 years this figure will rise to US $35 trillion. The lion’s share of these outgoings will come from countries in the emerging markets. The main reasons for this expansion are population growth, urbanisation and economic development, which promise longterm demand for suitable transport systems, water utilities and power supplies. Investment outgoings will eventually lead to an increase in infrastructure assets and consequently into growth of the companies whose infrastructure assets are owned by or managed by them. The latter represents a good basis for long-term capital growth (in other words,

more assets, more revenue, more profit).

Sašo Šmigić, Portfolio Manager of the Subfund KD EM Infrastructure and Construction, KD Skladi

Long-Term Capital Growth

The very nature of operations of infrastructure companies – which mostly provide essential services (electricity, water, waste-water treatment) or transport infrastructure (roads, railways, airports and ports) – enables them to generate stable real cash flow since demand for their services is not as sensitive to the level of general economic activity and since the majority of these companies trade as natural monopolies, which subjects them to either regulation or stricter control, cash flow is additionally stable. Add long-term contracts awarded to infrastructure operators into the mix and it’s a recipe for predictable long-term real cash flow.

The views expressed in this article are those of the author and not necessarily those of the Slovenia Times

In these challenging times, there are however a few interesting bright spots. One is the infrastructure sector in the Emerging Markets, which enables both promising long-term capital yield and stable regular payments in the form of dividends.

Benefit from the opportunities in the infrastructure sector in emerging markets – invest in KD EM Infrastructure and Construction! An individual can invest in the emerging markets infrastructure – the building of roads, airports, ports, railways, the distribution of water, oil, gas, the generation of electricity – the infrastructure of a country by investing in KD EM Infrastructure and Construction (Infrastruktura in gradbeništvo) Equity Subfund. The fund invests at least 80 percent of assets in infrastructure (transport, energy, other infrastructure facilities, construction and engineering, building materials), with a focus on issuers in emerging economies. KD EM Infrastructure and Construction is managed by KD Funds (KD Skladi) – the oldest management company in Slovenia.

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For more information about the investment possibilities contact KD Funds – Management Company LLC at nasvet@kd-skladi.si or visit us at our headquarters in Ljubljana, Celovška cesta 206 (1st floor).

The KD Umbrella Fund Prospectus – including the Management Rules, the Simplified Prospectus of the KD EM Infrastructure and Construction subfund, Equity, and the annual and semi-annual reports of the Umbrella Fund – is available free of charge at the management company’s headquarters and subscription offices. Electronic versions, along with a list of subscription offices, can be viewed at www.kd-skladi.si. The investor has the right to request these documents.

October 2010

46 REAL ESTATE SPECIAL

Interview: Mitja Majnik, CEO of IMOS

Location, Location, Location The Tobačna project will bring a brand new residential, commercial and business space to Ljubljana. Mitja Majnik, CEO of developer IMOS says the site is developing well, with construction scheduled to begin next year. an architectural contest to which we invited certain architects and Ljubljana’s Faculty of Architecture. Then, together with the Chamber of Architecture, the Municipality of Ljubljana and the Society of Architects, we selected the best solution. It was not very revolutionary in terms of architecture or design because we know the Slovenian territory is little rigid in that area because of the seismic requirements but it is the most appropriate solution for this site. You have already started demolishing some old buildings. Do you plan to keep any buildings? We will maintain the buildings that are under monumental protection. Five buildings will remain. These were the initial old factory buildings, which were constructed in the late 19th century and they still serve their function. These buildings will be renovated – they should not be demolished. Are you including any environmentally friendly materials? Yes. We will certainly try to make the building even better insulated than is required by law. We will try to take advantage of waste energy and try to make a joint project with the municipality and urban suppliers of heating and cooling services. We may also place solar panels on the building facade – it is difficult to say at the moment.

The crisis in the real estate sector has also taught us that potential buyers would prefer to choose an apartment that has already been furnished. We plan on carrying this out in Tobačna, so some apartments will be available furnished and others non-furnished. The Slovenia Times

What is happening with the Tobačna project? We have now completed preparatory work. In 2009, a detailed spatial plan was adopted for the area. We will work in phases as the project is rather large for Slovenian circumstances, but each phase will be a completed whole. This year the demolition of buildings has already been carried out, now we plan on obtaining building permits so we can start with construction in 2011. What is the drive behind the project? At the beginning, when we bought the property, we launched

Will you have premises for sale only or for rent as well? Certain areas will definitely be for rent, because we see that a large number of business managers would rather rent the space instead of buy it. As for apartment rental, we haven’t considered this yet. Will Imos remain in Tobačna to manage rented properties? Yes – we established a company engaged in the management of real estate four years ago for this purpose. It is essential for the manager to start engaging in the building at the time of its design and to give certain suggestions, because he knows where and how things may

lead to problems in the future. If we can remove those obstacles now, things will be easier for him and for the end-users later. Will you offer something specific to the businesspeople and to the residents? I think the trend in the lease or purchase of business premises will go in the following direction: managers will hire facilities with the entire infrastructure already completed and we will have to have that covered in the price. If a foreign businessman rents the premises for half a year, for the first three months he will not have to deal with electricity installations, telephone, computers, etc. He will come to Ljubljana because someone offered him 500 square metres of business space all inclusive. The crisis in the real estate sector has also taught us that potential buyers would prefer to choose an apartment that has already been furnished. We plan on carrying this out in Tobačna, so some apartments will be available furnished and others non-furnished. We count on this giving a bit of a boost to the sale. How large will the residential area be? In total, there will be approximately 150,000 square metres of surface above land with 500 to 600 apartments; 30,000 square metres of business premises; and between 3,000 and 4,000 parking spaces in the basement. We believe the 600 apartments will attract tenants with because of the location, the high standard of construction, maintenance and the many facilities of the site. We will try to place a nursery, a trade centre with Slovenian manufacturers, a beauty centre, a hotel etc on the site. The whole area above ground will be intended for pedestrians. The centre is merely a ten minute walk away, the green surface of Tivoli five minutes on foot, and the Rožnik hill is near as well. And the added advantage of this location is the relative proximity of the ringroad.

IMOS – Care for Revitalizing Degraded Areas

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TOBAČNA Construction will begin on the business and residential premises of Tobačna city on the site of some former Tobačna factory buildings

LITOSTROJ Reconstruction of the former industrial area as a modern business centre

In more than forty years of successful operation, IMOS Group has created the appearance of a range of residential, business, school, healthcare, commercial, tourist and production facilities in Slovenia and abroad. The IMOS Group places special focus on project development with the intention of re-urbanising the existing city structures, revitalising degraded urban areas and improving the existing unused urban potentials in areas that are otherwise well equipped with infrastructure. The fruits of our work are definitely reflected in a long-standing tradition with many successful

projects. In relation to this, we would like to point out two of our largest projects currently carried out in Ljubljana, the capital of Slovenia, both representing a revitalisation of degraded manufacturing and industrial facilities. The TobačnaCity project is being realised at the place of the former tobacco factory located at the very centre of Ljubljana; while the Litostroj project is carried out at the former water turbine manufacturing facility which is being restored with a number of newly-built commercial premises, and already starting to look like a commercial and business centre.

Reference projects

Stanovanjsko-poslovni kompleksLjubljana Trubarjev kvart Ljubljana Trubarjev kvart residentilal area and business premises

Stanovanjsko-poslovni Stanovanjska soseskakompleks Bežigrajski Trubarjev dvor kvart Trubarjev Bežigrajski kvartdvor residentilal residental area premises and business premises

SLOVENIJA

(Wien)

Sta Be

Sedež SKUPINE IMOS IMOS GROPU headquarters

Stanovanjsko-poslovni kompleks Trubarjev kvart Trubarjev kvart residentilal area and business premises Trubarjev kvart residential area

and business premises

Ljubljana

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Stanovanjsko-poslovni objekt Adamičev center Adamič centre residential area and business premises

Bežigrajski dvor commercial building

Stanovanjska soseska Bežigrajski dvor Bežigrajski dvor residental premises

Commercial centre Taxgroup

Ljubljana

Stanovanjski objekt Bohoričeva Bohoričeva Noveresidential Poljanebuilding residential area

and business premises

Poslovni objekt Bežigrajski dvor Bežigrajski dvor commercilal building

Italy

Austria

SLOVENIA

Poslovni center Taxgroup Commercial Hungary centre Taxgroup

Stanovanjski stolpiči Residential blocks

Croatia

IMOS GROUP ® Fajfarjeva ulica 33, p.p. 2599, 1001 Ljubljana telephone: +386 1 47 33 300 sales enquiries: +386 Študentski 1 47 33 353 za družbene vede Upravna enota Grosuplje dom Fakultete Grosuplje administrative unit Students hall of residence oa the faculty of socilal sciences fax: +386 1 47 33 378 e-mail: info@imos.si www.imos.si

Stanovanjska soseska Mostec Mostec residential premises

48 REAL ESTATE SPECIAL

Regional overview: Serbia

Back to Life The revival of Serbia’s property market has seen many developers sighing with relief. A number of government measures seem to be helping the sector as well as a surge in interest from Serbs living and working abroad. But true recovery may be a while off. By Mateja Novak flats being built at “4 July” sites is 4,700. This is just one in a line of measures the government has introduced to help the sector. In May this year it decided to reduce taxes on capital gains from 20 percent to 10 percent. In this way, the government has helped lower the prices and encouraged those who were reluctant to sell due to high taxes to change their mind. Serbia’s sellers are, like those in many other countries, still struggling to come to terms with the new market situation – and some are still refusing to adjust their prices. It is hoped the government’s action for cheap flats will help bring down the inflated prices in the currently low supply market. To be fair, some have been adjusting the value of their property already. The most popular locations in Belgrade, such as New Belgrade, have seen an adjustment in prices which now range from EUR 900 up to EUR 2,500 per square metre excluding high-end properties – in line with those recorded in 2006.

Market is on the up elsewhere Under the new rules, skyscrapers will be banned from Belgrade‘s city centre

elgrade, the Serbian capital, annually sees 16,000 to 25,000 new inhabitants. Reports by property experts constantly point to the lack of properties for sale to accommodate this ever-growing population. However, the crisis has seen the buyers reluctant to put their cash down and those who want to buy have been unable to acquire loans.

Action plan(s)

The government’s introduction of “action for cheaper flats” is set to change that. To help young couples get on the property ladder the government plans to build affordable flats – prices would be below EUR 1,200 per square metre – on the previous army barracks “4 July”. Another possible location is the site of IMT (Industry of Engines and Tractors) in New Belgrade. The total number of The Slovenia Times

In some areas, a revival is clearly underway. In Niš, Serbia’s third largest city, the sale of apartments in August increased by as much as 70 percent. This is mainly due to locals who live and work aboard and come back to Niš for holidays as well as parents who have been shopping for their children that are about to start university. The average price of apartments in the city centre is around EUR 1,000 for new-builds, and EUR 900-1,000 for second-hand homes. Prices outside the centre are somewhat low-

The prices in Novi Sad have stabilised

er at around EUR 750 per square metre. The market in Novi Sad is similarly picking up though the demand is far from pre-crisis levels. The main reason for the change is a correction in prices with some apartments going for as low as EUR 650 per square metre up to EUR 2,500 in top locations. The most popular apartments in Novi Sad are those around 50-squaremetres in size.

No skyscrapers

While such news gives developers cause for optimism, a new regulation for the country’s capital is being met with some concern. City planners have decided to protect Belgrade’s image by banning residential buildings higher than eight floors and business premises higher than 12 floors from the city centre. The same rule applies around rivers and areas where the building would block the view of Church of St Sava or any of Belgrade’s landmarks like Avala, Victory Monument and the like. While residents may welcome the plan, developers are less keen. The events of the past summer may indicate the end of crisis for Serbia’s property market. But even though the positive signs are there and the government is doing what it can to help get the market moving, experts warn that the real growth of the sector is expected only when buyers’ spending capacities increase and the local currency strengthens. When those two things might happen is tough to predict. Colliers International, the property consultancy firm, estimates that it may be within the next two years. For now, all anyone knows that it will be sooner or later – only time will tell.

REAL ESTATE SPECIAL 49

Regional overview: Croatia

Croatia’s Concerns Last month, the Croatian government announced it was selling massive amounts of buildable, state-owned land. The move is aimed at cutting the country’s growing budget deficit and so improving its chances of finally joining the European Union. But with construction firms and developers still experiencing the aftermath of the financial downturn, the question in Croatian real estate remains a depressingly familiar one: will anyone buy? By Laura Rosling

ith its eyes firmly on the prize of European Union membership, the Croatian government is working hard to reduce the nation’s growing budget deficit. Last month brought an announcement which surely counts as one of its more dramatic money-making efforts: the state is to sell or lease an incredible 28 million square metres of buildable land. The sites are scattered throughout the country, including in the popular tourist destination that is the Adriatic coast. Not so long ago, such an announcement would surely have been greeted with glee by players in Croatia’s real estate market. For many years property was a booming sector, with development after development popping up yet demand still consistently outstripping supply. Given that bust follows boom as surely as night follows day, what happened next was perhaps predictable. But the sheer scale of the downturn would have been tough to foresee. The global recession has of course hit almost every sector in almost every country but Croatia’s real estate sector proved especially vulnerable to its effects. The problem, according to internationally respected property firm Colliers, is that real estate development in Croatia involved “a regime of power games played by domestic market leaders.” Factor in a spot of corruption, a collection of unsustainable business models and a consistent failure to carefully plan developments and a total collapse became nothing short of inevitable.

Annus horribilis

And so 2009 was a grim year for those involved in Croatian real estate. With projects begun before the recession failing to sell, developers were left with serious financial problems and forced to delay previously planned projects. The situation with office space illustrates the problem well. Despite a large number of development projects having been announced

The number of unfinished construction sites is on the increase around Croatia

for 2009, last year saw only 12,000 square metres of new office space. And weakened demand meant an overall vacancy rate of six percent. The story was the same in the retail sector, where a large number of retailers delayed their expansion in the midst of the economic downturn. The result: no new income for developers, and the need to postpone projects. In the residential sector the situation was even worse. With the inability of developments to sell large projects, loans went unpaid and banks wound up seizing entire buildings to compensate.

The only way is up?

The good news, if you can call it that, is that the market now seems to have hit its nadir. At the beginning of September, Business Monitor International (BMI) released its quarter four 2010 report on Croatian real estate. It finds that rents have now more or less stabilised and are not expected to fall further in 2011. Similarly, in spite of continuing high office vacancy levels, there does not seem to have been a sharp downwards trend in capital values. That said, BMI believes “it is difficult to envisage that there will be a sharp recovery in Croatia’s real estate sector.” Until rents and sales start increasing – something it seems is unlikely to happen in

the near future – the market intelligence firm argues that “there is unlikely to be a substantial supply of new office, retail or industrial space over the coming years.” Indeed, some developers have indicated projects are still being shelved due to a lack of interest on the part of investors. Where does this leave the government’s plan to sell state owned land? Are any real estate developers in a position to buy? And, if not, what happens to the growing budget deficit – and the nation’s dream of joining the European Union? It seems that the fate of the property market in Croatia is increasingly the fate of the whole country. And, at this stage, that has to give cause for concern.

With projects begun before the recession failing to sell, developers were left with serious financial problems and forced to delay previously planned projects. The situation with office space illustrates the problem well. Despite a large number of development projects having been announced for 2009, last year saw only 12,000 square metres of new office space.

Croatia’s coastline is still the most popular amongst foreign buyers October 2010

50 REAL ESTATE SPECIAL

Regional overview: Montenegro

Adriatic’s Answer to the Côte d’Azure Montenegro property seems to be back on the map. With an array of developments of luxury holiday homes, hotels and marinas, it is little wonder the country has been grabbing headlines across Europe. Tourist numbers have increased by seven percent and the country being named as one of the top ten destinations for luxury travel by Lonely Planet is certainly helping to reinforce the buzz. By Maja Dragović

he crisis hasn’t been kind to Montenegro. According to the International Monetary Fund, the country’s economy contracted by seven percent in 2009. With a quarter of the Montenegrin economy relating to tourism and the property sector being one of the main drivers of growth prior to recession, the government is actively looking for real estate investors. The hope is that such investments will increase employment and bring long-term capital to the struggling economy. And it seems its wishes are coming true – though this is perhaps not surprising considering the country’s massive potential.

Luxury potential

Luxury developments such as Porto Montenegro are helping cement the country’s reputation as one of the top 10 destinations for wealthy tourists

Apartments in Herceg Novi old town are five times cheaper than those in Kotor

Tivat; and The Royal Montenegro Grand Resort near Sveti Stefan. Close to Porto Montenegro lies perhaps one of the most attractive developments in the country – the island of Sveti Marko, the only ‘island resort’ in Europe. The island used to belong to Club Med but will now host a Banyan Tree hotel, 100 bungalow villas, and 74 more spacious villas as well as boutiques and entertainment premises – all due for completion by 2014. The bungalow villas will cost from EUR 420,000 and will be sold on a leaseback basis. This is in line with the government’s efforts to make its property market more attractive for investors by introducing new models of properties to sell including leaseback, timeshare and fractional. As the recession seems to be easing in the development aspect of the sector, prices have stabilised following a surge in the summer of 2008. Some developers are now willing to give 30 percent discounts on already lowered prices and some sellers would go as much as 50 percent lower, depending on the urgency to sell. The prices vary – while a tiny studio in Kotor old-town would cost over EUR 200,000, a 100-square

It is going to be a busy autumn on the Montenegrin coastline with numerous new resorts and marina developments springing up, particularly in the area between the Bay of Kotor in the north and the island of Sveti Stefan, near the popular Budva resort. These include Porto Montenegro’s super yacht marina and accompanying development of holiday homes near Tivat; Orascom’s development of a marina, town centre, commercial facilities and 2,350 apartments over 6.8 million square metres on the Luštica peninsula, also near

The Slovenia Times

metre apartment in Herceg Novi old-town would cost the same. New turnkey apartments cost from EUR 900 per square meter upwards, depending on location and closeness to the sea.

The other side of the coin

But the news isn’t uniformly good. Miramax, the Russian development company, is reported to be moving out of its offices in Budva. The company has been at the centre of corruption charges over its Astra Montenegro development on the attractive hill of Zavala near Budva. The luxurious development has seemed doomed from the very beginning with reports that building works were started without acquiring the regular building permit. With 60 percent of construction now complete, Miramax has run out of cash and the works have stalled since last year. Those who have paid EUR 6,000 per square metre in advance for apartments that are now unfinished are looking for justice. This is not the sole example currently shaking the Montenegrin property market. Banks in Mon-

tenegro are following in the footsteps of their European partners and making it almost impossible to acquire a loan. The result is that the number of unfinished sites for sale has increased. While developers elsewhere have proved reluctant to lower their prices and preferred to wait for better times, those in Montenegro are willing to acknowledge the current realities of the market. As a result, bargains can be found. The other explanation for this willingness to lower prices is the lengthy procedure of acquiring planning permission in Montenegro. This means that land owners who had to wait for their building permits during the worst of crisis now have land they bought cheaply available for sale – complete with planning permission. Though the coastline remains the main attraction for investors in Montenegro, the north of the country is increasingly becoming popular with profit seekers, especially the areas around Bjelasica, Komovi and Durmitor mountains. In short, there are many attractions in Montenegro – and it seems the country is attracting the right investors to justify its impressive ranking by Lonely Planet.

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High Ceilings, High Standards A thorough approach to satisfying a demanding customer is the main advantage of Mabra inĹženering, the company behind some of the hottest business and residential properties in Ljubljana.

Living in a Crystal

Dunajski kristali (crystals) are indeed unique amongst the newly built residential areas in Ljubljana. As the media still tend to indiscriminately compare square metre prices regardless of what they have to offer, a closer look at Kristaliâ&#x20AC;&#x2122;s characteristics makes a clear distinction. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t want WR FRPSDUH WR DQ\RQH Â´ VD\V 1HYHQND =HNLĂž 0DEUDÂśV JHQHUDO PDQDJHU who points to a unique list of characteristics describing the above-standard. These qualities indeed speak for themselves: three metres in height with 2.5 metre doors do not only make the place spacious enough for basketball players, but also lets you experiment with ceilings and lightning. The living rooms facing north and south feature as much glass as possible, while the remaining outer walls are made of brick with a plastered layer on the inside. This provides additional insulation and lets you customise additional installations such as the electricity outlets without the unpleasant digging and drilling. The heating, save for a single radiator in the bathURRP LV ODLG LQ WKH Ă&#x20AC;RRU $ORQJ ZLWK VPDUW VKDGHV DQG SUHLQVWDOOHG DLU conditioning, the apartments keep you at an ideal temperature and with ideal lightning. 7KH VHYHQ DSDUWPHQW EXLOGLQJV ZLWK XQLWV RIIHU D YDULHW\ RI FRQÂżJXrations for both singles and big families. The apartments range from 39 to 120 square metres in size. The grounds belonging to the residential buildings are green and spacious, featuring three children playgrounds. The DUHD LV FRPIRUWDEO\ VHSDUDWHG IURP WKH PDLQ WUDIÂżF YHLQV DQG VHW DERYH the Ljubljana bypass level. The place feels as quiet as in nature. The well secured parking is completely in the basement level. Plus visionary candy: chargers for electric cars are already available in the garage.

Employee friendly

0DEUD RIIHUV D WRWDO RI VTXDUH PHWUHV RI RIÂżFH VSDFH LQ WKH newly built business part of their Dunajski kristali complex. Needless to say, this space also boasts superior characteristics. Light, airy and 3.5 metres in height. Perforated shading plates disperse GLUHFW VXQOLJKW ZKLOH DW WKH VDPH WLPH VLJQLÂżFDQWO\ LPSURYH WKH DFRXVWLF FKDUDFWHULVWLFV RI WKH VSDFH $OO VSDFHV DUH DUWLÂżFLDOO\ YHQtilated and heated by ceiling convectors. Natural ventilation is also SRVVLEOH GHSHQGLQJ RQ WKH SRVLWLRQ RI WKH RIÂżFH 'HÂżQLWHO\ DQ DWWUDFWLYH SODFH WR ZRUN UHĂ&#x20AC;HFWLQJ WKH KLJK VWDQGDUGV DQG DWWHQWLRQ WR GHWDLOV ZKLFK KDYH EHFRPH WKH KDOOPDUN RI 0DEUD ,QĂĽHQLULQJ

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LetaliĹĄka cesta 5, 1000 Ljubljana 7 ) ZZZ PDEUD L VL E: mabra.inzeniring@mabra-i.si

www.kristalna-palaca.si

Crystal Palace – a mix of modern architecture and comfort On the edge of BTC City in Ljubljana, between Hall A and the existing business skyscraper, a new business skyscraper has been growing since May 2009. The Crystal Palace has just reached 89 metres, so becoming the tallest building in Slovenia. Construction work on the Crystal Palace will be completed in January next year with the opening ceremony scheduled for May 2011. The idea for the construction of Crystal Palace was a response to the new requirements and needs of the modern man of the 21st century. A unique, dynamic and aesthetically accomplished environment combines spheres of business, sociability, enjoyment and rest under one roof. “We can already say that Crystal Palace will be among the most dominant buildings not only in BTC CITY and Ljubljana, but much wider,” says Jože Mermal, CEO of BTC. “I am glad we started this project in the year BTC celebrated its 55th anniversary of existence. Not withstanding the unenviable current market conditions, we see our chance in this project. Accordingly to the efforts and strategy of BTC which pays a great deal of attention to environmental and sustainable development, the Crystal Palace was built to the highest environmental standards. Systems for producing electricity from solar energy will be built in the south facade of the building, the facility will be connected to a remote heat supply system and the cooling will be achieved by ice batteries.” Crystal Palace, architecturally designed by Atelje S, will have a single management and joint reception with 24-hour security and common smoking rooms and it will also offer the possibility of a Congress Centre. The three basement floors will produce 543 parking spaces. In addition to business facilities and a conference centre there will be a shopping gallery and wellness centre, a restaurant which can take up to 400 guests and a panoramic confectionery, placed in the highest floor with two panoramic lifts.

Modern architectural solutions Crystal Palace is the image of the company which resides in it and reflects the vision of those who from their offices stare at the city below. Combining

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Where does the name Crystal Palace come from? When Peter Gabrijelčič, the Dean of the Faculty of Architecture, first saw the plans and models of the building, he said it looked like a crystal. He certainly did not know he had just named it.

different interests into a complete comfort infrastructure enables an effective blending of business activities, leisure and relaxation. Large glass surfaces naturally illuminate working spaces; efficient glazing, proper shading and air conditioning maintain a high level of comfort in the sunny summer days. Architecture that exploits the synergy of environmentally friendly sustainable concepts is confidently placing the building in the urban structure of the city.

Shopping Gallery Crystal Palace’s shopping gallery will be over two floors – the ground floor and first floor. Commercial areas in the shopping gallery are intended to house established brands. There will also be a prestigious restaurant, a bank, a jeweller and a wellness centre. The green roof terrace on the top of the shopping gallery will be a nice place for socialising, events and promotions.

Purchase or lease of business premises Business partners, the users of premises in the Crystal Palace, can choose from various possible combinations with the following starting points: • Custom floor size of the business part measures 1,000m ² • Occupation of the whole floor or only part of it • Purchase or lease of business space • Purchase or rental of parking spaces in the basement • Arrangement of office space as a classical office or as a by the ocean system More information on the purchase or rental of the premises Skai Center, d.o.o. Šmartinska 152 1000 Ljubljana T: 01 585 13 15 or 585 13 19 info@kristalna-palaca.com www.kristalna-palaca.com

Special annual issue brings you the best in investment

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success stories and top lifestyle choices. COMING IN JANUARY 2011 Contact: Tel.: +386 59 045 003, marketing@sloveniatimes.com, www.sloveniatimes.com

Experience

Sportina XYZ Sense Welness Spa Ca fe Central Dine with Style

Fitness

Fit, Healthy and Relaxed

experience

XYZ Premium Fashion Store

The X, Y and Z of the Fashion World

With a big event coming up, Maja Dragović was on the hunt for an outfit which would make her look effortlessly beautiful and professional. She didn’t have to travel far to find it: a trip to XYZ in Ljubljana’s BTC City was all it took.

It seems appropriate that it’s impossible to walk into XYZ without style. As soon as you enter Slovenia’s top high end fashion retailer you are on a catwalk, immediately making you feel like you’re the centre of attention. As you walk down it, garments hang on either side as though they are there especially for you. They are not “in your face” but carefully distant, allowing you to get a good view of what is on offer. And what is on offer is an array of internationally renowned brands – D&G, Emporio Armani, Burberry, Z Zegna, Red Valentino, Hugo Boss, Ice Iceberg, Juicy Couture and 7 For All Mankind are just some that can be found at XYZ. Whether you are a single trendy young one, a sophisticated businessperson or a more mature member of our society, the buyers at XYZ will have found something fashionable to suit you and your tastes.

Chill out

The choice is huge but you won’t feel overwhelmed, thanks in part to the chillout sounds coming from the speakers. XYZ has something that is definitely rare in Slovenia – its own DJ that records music especially for the shop. A little story emphasises his talent: when a representative from D&G came to the shop recently, he wanted a CD copy of the music mix. Say no more. Another rare XYZ treat you may not know is available – a personal shopping asThe Slovenia Times

sistant. Now this is not a regular shopping assistant that wants to sell you anything. This is a person that will give you sound advice on what suits you and what doesn’t. If, like me, you are married to someone who hates shopping and would rather sit miserably on the first chair available than give the meaningful advice that you crave, you will love the chance to get an honest opinion from a guy who has all the time in the world just for you. And you don’t have to iron his clothes or cook him dinner afterwards to show your gratitude – it is free! I’m sure all the girls out there understand exactly what I mean. My personal assistant for the day was Matjaž. He had done his homework, having received my measurements, a description of my looks, and details of the occasion I was shopping for before I arrived in store. With these details he carefully picked garments that he thought would suit me.

More than a shopping fun

I have to admit that as I was looking at the dresses he picked I thought to myself that I would never have chosen some of them. Of course not all of them did look good on me but Matjaž was the first one to say “no” if something wasn’t right. I would look at his face as soon as I walked out of the dressing room to catch that first impression that is hard to hide and his was always genuine, whether he liked what I had on or not. But this is the advantage of having a personal shopping assistant and, what do you know, the two dresses that suited me best where the ones I would never have gone for myself! One of them, a tight black satin D&G dress, made it home with me, of course. Nobody needs me to say that shopping is always fun – that is if you are not my husband – but shopping with a personal shopping assistant is even more fun. The clothes aspect is the obvious cause for enjoyment. But the conversation is the added value. Matjaž proved to be a source of amazing anecdotes. He does a lot of buying for XYZ so he gets to go to designers’ showrooms and peek at the designs that us mere mortals won’t see for another year and a half. If there is a girl out there who doesn’t find that sort of information fascinating, I’ve yet to meet her. As XYZ already has shops in Belgrade – where the inaugural branch was estab-

lished – as well as Zagreb, Matjaž also travels a lot between stores. That means he’s an expert in the differences in girls’ attitude to shopping and appearance between Belgrade, Zagreb and Ljubljana and was happy to share his fascinating insights with me. Interestingly, the girls in Belgrade who on average have less money than those in Ljubljana are more willing to spend on outfits and are more prepared to experiment with styles. A girl in Belgrade would rather have a plaster over her finger than show her chopped nail. Some of the girls Matjaž has been working with for the past six years have never been seen without perfectly manicured hands. Embarrassed? I was.

Directing style

While in the shop I also had a chance to meet its director, Artur, who has been in the fashion business since the 1990s. His passion is evident even before you chat to him: stylishly dressed in a blazer and a lilac t-shirt, tight jeans and trendy dark trainers, both his clothes and his demeanour tells you he is someone who lives, breathes and sleeps fashion. In his own words: “It is like a drug – you can never get enough of it”. If it is a drug, then I am well and truly addicted. My name is Maja Dragović and I am a fashion shopaholic. I’ll see you at XYZ – though probably not with my husband.

If, like me, you are married to someone who hates shopping and would rather sit miserably on the first chair available than give the meaningful advice that you crave, you will love the chance to get an honest opinion from a guy who has all the time in the world just for you.

October 2010

The Slovenia Times

October 2010

fitness

Fit, Healthy and Relaxed Time for a workout, but can’t face the cold weather now autumn is here? Try a visit to one of Slovenia’s many fitness studios where trained experts are on hand to help you achieve your desired results. By Polona Cimerman Autumn is that time of year when the days get considerably shorter, the sun shows its face on only a few occasions, temperatures fall significantly, and rain and wind start to dominate the weather forecasts. These circumstances turn many people away from the sports activities they practiced during the warmer months of the year, with potentially negative consequences for their health. The fact is that our bodies are made to move and physical activity is an absolute must. Numerous research studies have been conducted on this topic and all have shown that sport activities are the basis for the healthy and normal functioning of every human. The body of a person who does not exercise for at least half an hour daily is liable to harmful processes that can gradually result in unpleasant health conditions. Some scientists claim that inactivity is almost as harmful as smoking cigarettes. Research has shown that people who exercise regularly are more strong-boned, weigh less, have a stronger immune system, need less time for recovery, spend less time on sick leave, have a positive mindset that makes them enjoy and appreciate life to a much greater extent, and are more creative and self-confident.

Anti-stress therapy

Many of those positive effects are the byproduct of another one: the way in which exercise helps reduce stress. Scientists believe that people who are physically active deal with stress situations The Slovenia Times

with greater ease and are also less affected by them; thus preventing the development of diseases. Tomaž Kucler, head of the Konex Fitness Centre in Ljubljana explains that exercise provides a different type of stress for the body: “We need to know that every exercise is stressful for the body but this type of stress works differently. This means that the more we train, the less we feel under stress. An intensive workout makes us forget about stressful situations and helps us relax profoundly.” Relaxation is an instant effect of being physically active; all other benefits require regular exercise of two to three months in order to show.

Exercise year round

Most of us know that exercise can yield these fantastic benefits, but most of us also know that the minute the weather gets colder it suddenly seems a whole lot less attractive. Fortunately, since Slovenia is a nation of sports lovers, there are plenty of places to exercise year round.

Fitness centres provide a wide selection of activities to choose from so that everybody can find something to their liking. Classics like step aerobics, which targets the most problematic muscle groups and body parts, and other group-exercise classes that combine music with martial arts, weightlifting, dancing or meditation are available at most fitness centres. Fit & Fun fitness chief Mitja Novak says that “their greatest hit ever has been spinning” – a group exercise on stationary bikes (the so-called spinners) with power music and a rigourously planned training scheme based on individual needs. At the Konex centre, meanwhile, various racket sports and martial arts are on offer alongside Body Training System licensed programmes such as Body Pump and Body Combat. Some centres are offering brand new ways to keep in shape. At Fit & Fun and at the Panter centre, the newest hit is zumba aerobics with energetic Latin American music which takes one through various transitions of tempo. Apparently dancing is a popular keep-fit method these days – Panter also offers belly dancing and the improbable world-wide success that is pole dancing, a combination of gracious, seductive dancing and proper muscle training which can greatly transform the body.

61 Konex offers personal training as well: “The membership fee includes an individual meeting with a trainer who prepares a personalised programme, based on tests results and the trainee’s goals,” explains Kucler. And has a professionally trained instructor is on hand to help and motivate members at all times.

Time management

With their individualised advice, personal trainers can be a great help to those who blame their inactivity on lack of time due to a demanding and time-consuming job. Kucler says trainers “will set the appropriate time of workout based on the client’s wishes, deal with issues of programme and make the very best of their precious time.” “All that with a lot of positive encouragement,” adds Novak. Besides motivation and efficient use of time, a personal trainer can be of great help when changing eating habits. They can advise on proper nutrition and give individuals guidance on what to eat when. “What we eat is of extreme importance, not only in weight-losing programmes but also in all other instances,” explains Kucler. “One needs to be careful with highly caloric, fatty foods and rather increase the intake of fruits, vegetables and proteins, which are fundamental for recovery after a workout.”

The job of a personal trainer

Whichever exercise you choose, there’s a good chance you’ll consult a personal trainer at some point or another. Novak of Fit & Fun says having such a person alongside you – someone to encourage you in your desire to build up muscles and/or lose weight – is one of the latest and most significant fitness trends. Trainers begin by taking some measurements and conducting a fitness test on

a cycling machine. They then design a programme which helps the individual meet their personal goals quickly, efficiently and safely. Fit & Fun offers two personally designed training sessions to all new members who opt to use their Star Trac machines, the most the most prestigious line of fitness equipment. A personal trainer can also be hired for any visit with reservation made in advance.

Enjoy it!

But both Kucler and Novak say that the most important thing for every person who wants to work out is that they enjoy in it. “If your goal is to relax, you need to find something that suits your way of relaxation,” says Kucler. “Experience from our centre show that pilates suits many in this respect so it is worth giving it a chance,” advises Novak. Whatever you choose, the staff in Slovenia’s fitness centres are ready and willing to get you started, keep you motivated, and give you advice. The days may be drawing in, but that is simply no reason to let your stomach start drawing out.

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Slovenia Times 206 x 105 mm 23. september 2010 13:18:19

October 2010

The Capital

Keep on Running

Running is the most popular sporting activity in Slovenia, and nothing sums up that passion better than the Ljubljana Marathon. Now in its fourteenth year, the event has gone from strength to strength, attracting competitors from both home and away. By Polona Cimerman

Running is one of the most popuThe event has risen from rather lar sports activities in Slovenia. No humble beginnings. The first wonder then that Slovenians are Ljubljana Marathon was in 1996, world champions when it comes to and attracted a total of 673 runners taking part in running events – the taking part in three categories – the country has the highest proportion classic “real thing” 42 kilometres, of citizens taking part in such races. its shorter 21 kilometre version, The main reason for that is defiand the recreational 10-kilometre nitely the yearly Ljubljana Marathon, run, all of them held on Sunday. In as LJ- KARTICA - 113x155 mm 6/24/10 15:12 Page 12000 and 2001, four more variants Slovenia’s biggest sport-recreational event in the country. were added, targeted especially at

Ljubljana tourist card

• free admission to the main sights • free public transport, boat ride, funicular, tourist train • other attractive free services 24 hours: € 23.00 • 48 hours: € 30.00 • 72 hours: € 35.00 Sales outlets: • Tourist Information Centres and major hotels

The Slovenia Times

www.visitljubljana.si

youngsters in the hope of them getting involved early in the nation’s most popular sport. It proved to be a great success with more than 2,000 entrants. The numbers in all categories have steadily grown ever since, annually at a rate of approximately 20 percent and the statistics say that every year there are more and more young runners willing to face the longer distances.

Record success

Last year’s edition was a marathon of records in all respects: it saw 16,399 runners from 53 countries from all around the globe take part. This was the largest number ever and included an impressive 943 marathon runners. In addition, the Kenyan winners William Biama and Kilel Cheptonui set a new milestone in both the male and female 42k categories with final times of 2:10:11 and 2:25:24 respectively. Their results placed the Ljubljana Marathon in the middle category of such events in Europe. The organisers ascribe this to the eagerly anticipated and publicly requested change of route which now goes along the wide city streets that connect the centre to its more outer areas. This means the altitude difference is lower and the number of turns reduced. However, two things have remained the same throughout the years – the participants start and finish their running adventure at the Slovenian parliament with its the altitude of 298m. The organisation is getting better every year despite the numerous challenges that come along with the increasing number of running

devotees. The aim now is to make the Ljubljana Marathon one of the largest in Europe. Organisers say this will involve attracting a greater number of good foreign competitors and making the Marathon more representative and prominent by organising more accompanying events.

Plans for 2010

First, though, there’s this year’s event to take care of – the 2010 Ljubljana Marathon will take place on 23 and 24 October. It will begin with short runs for children on Saturday while the main events are going to take place the next day in the morning. There’s still time to get involved: the deadline for registration is 19 October. As of late September, 355 runners had already applied for “the big run”, 1,005 for the 21k distance and 495 for the recreational run, coming from 35 different countries. Men dominate in the first two categories, while women take the lead in the 10k race. The participation fee for the marathon and half marathon is EUR 35, with EUR 30 fee for the recreational ten kilometre race. That includes a time-measuring chip, refreshments along the way, a food package at the finishing line and in case of the two long runs also a memorial medal. And of course the fastest runners also receive money prizes. This is definitely one event though where the winning is less important than the taking part. Whether as a runner or a spectator, there is no better event to enjoy Slovenia’s national pastime than the Ljubljana Marathon.

Boost for Your Body and Motivation Boot Camp in Otočec is not for the faint-hearted but if you have the courage to join, the weekend of hard physical training will benefit your body and mind and prove that you do not need expensive gym equipment to get in shape. Recommended for those who lack time and will.

This is a new form of group exercise, a three day programme aimed at those who know exercise is vital for keeping the body in both good shape and health but have not enough time, will or motivation for it. During the days of semi-military training you will start losing fat, increase your physical abilities and improve mental power, since body exer tion will be followed by mind relaxation in the form of yoga and Ultra Mind ESP meditation system. The training is focused on small groups led by professor of physical education and well-known professional fitness

trainer Mito Šinkovec (in the upper photo in front).

Fun is Essential Šinkovec, who has worked as a personal trainer for the last 15 years, came to the idea of boot camp after watching people struggle and sweat on numerous machines in fitness centres, doing exercises in the gym, at home and so on. “The first problem with such activities is that you only train one muscle or one set of muscles at the time”. He believes such an approach is wrong because no natural physical activity affects only one part of the body. Whether you work hard, run, hike or play football, your whole body will be in motion, every muscle will be included in the training. This is the only way to make the most out of any sport, Šinkovec says. The second problem Šinkovec sees is in the lack of fun attached to modern gym pursuits. A workout is conducted only to bring certain results – fun takes a back seat. As a consequence, people quickly get bored and quit, transfer from one gym to another repeating the pattern, never really achieving the desi red effect. “Boot camp tr ies to

teach people that physical exercises can be enjoyable, entertaining even, and much more effective when practised in a healthily competitive group where one participant challenges the other to do just a little bit more than usual”.

Schedule The programme includes two nights; healthy breakfasts, lunches and dinners in Hotels Otočec; and a three day workout and diet scheme. It starts on Friday morning, when participants are given the whole curriculum and undergo measurements of their bodies’ morphological characteristics. T h e fo l l ow i n g d a y s b r i n g h i k i n g w i t h pedometers or heart rate monitors, several sorts of exercises, yoga and facial yoga class, a lecture on UltraMind ESP, lectures on proper nutrition, and so on. The programme is designed to awaken your body and mind and to identify the obstacles that you yourself have put on your path to a healthier life. You can join the training on October 22-24, October 29-31 and November 19-21 2010.

Hoteli Otočec T: 07/ 38 48 600 booking.otocec@ terme-krka.si www.terme-krka.si

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Since September, Otočec has one more attraction to offer in addition to Castle Otočec and an abundance of natural areas suitable for recreational exercise, walks and relaxation. Terme Krka is the first in Slovenia to present a weekend long training session according to the principles of “Boot Camp”.

Sense Wellness Spa

When you read what I have to say in the following article, I suspect you will have one of two reactions. Either you will be engulfed with envy, or you will decide that you too must experience the wonder that is Hilot massage. Trust me: go for the second option. You won’t regret it. Now I am guessing many of our readers haven’t heard of Hilot massage – not because you are uninformed but simply because it is not that well known, especially in our part of the world. I admit I had never heard of it, and as my previous columns show I can claim to be somewhat of an expert when it comes to massages.

experience

The basics

The Slovenia Times

Liking Hilot a Whole Lot Hilot was one of only a handful of massages that Maja Dragović hadn’t experienced. Then she paid a visit to the Sense Wellness Spa in Ljubljana. In no time at all, she had become a fully paid up member of the Hilot fan club – and determined to turn others on to the delights of this Pilipino treatment.

So let’s start with the basics. Hilot hails from the Philippines – the word means “massage” in Pilipino – and uses a special technique to pinpoint tension. The massage begins with rubbing the warm coconut oil into your back. Then warmed banana leaves are placed on different areas of the back. When the masseur or masseuse pulls the leaf, it either sticks or comes away easily – sticking means tension, no sticking means no tension. Let’s be honest: it sounds like a load of baloney, doesn’t it? But it is not, and I am living proof of it. There is only one place in Ljubljana to experience this wonder from the Philippines, and it is the Sense Wellness Spa. Frankly, even if Sense didn’t offer my new favourite massage it would still be worth a visit. As

you close the heavy gold door behind you, your senses immediately surrender to the lemon grass aroma that fills the premises. While you are waiting for your chosen treatment, you sip an amazing lemon grass tea while observing Indian ocean shores on the huge screen in front of you, giving you the impression of being on a beach looking out to sea.

The know-how

If you get a chance to meet Sense’s owner then you will instantly know you are in for a quality product. After my little chat with Andreja, I understood how much the whole place is a reflection of her experience. An architect by profession, Andreja also did modelling, and worked in advertising prior to establishing Sense seven years ago. For years she spent Christmas holidays in different places on the shores of the Indian ocean, trying out various along the way. The result is that Sense offers a range of treatments from Asia. It also perfectly evokes the ambience of that special continent. Sense’s interior is stylish, designed with great taste, without being tacky which is often the case with places in Ljubljana that want to attract upper end clientele. The great attention to detail is clear – tea is served in fine bone china tea cups that are hand-painted in Thailand. The whole place tells you that its owner knows what it takes to relax and that she believes in doing unto others as she would do to herself!

Of course, no one could run such a wonderful place alone and Andreja explains that she receives a lot of support from her sister Nataša. Perhaps that family tie helps explain the friendly, welcoming atmosphere that is the hallmark of Sense.

The experience

By the end of my conversation with Andreja I was fully convinced of the wonder of Hilot. But the experience itself took that belief to another level. My masseuse was Imelda, a Pilipino lady whose tiny frame is very much misleading – her hands are strong! Just as well because those banana leaves were sticking to my body like crazy, prompting Imelda to question the last time I had a massage. I have to admit I was concerned that Imelda wouldn’t have enough time to work her magic on my badly knotted back. I needn’t have worried. She approached the task with great determination, patiently working my back knot-byknot and spreading the tension until her thumbs could run smoothly across. It took almost two hours and I can’t say it was pain free. But I also can’t say just how wonderful it felt – as though a weight had been lifted off my back. As I type this, my shoulders are relaxed and light. No cramping in my neck. No burdens weighing on me. I now know why those who know about Hilot rave about it. And I can’t tell you how happy I am to have joined this exclusive club.

Join the club

Of course, it seems almost rude to go to Sense and only experience one of their wonderful treatments – even one as magnificent as Hilot. So before I left I enjoyed a facial with Carita products, a prestigious range which hails from France. My facial treatment included a special patented pro-lift apparatus that works on the basis of continuous galvanic current. The effect is instantly younger looking skin. I may not have really understood the science behind it but I did immediately notice that my face felt and looked younger – made me feel like a million dollars. My therapist Polona did a great job, moisturising and exfoliating my very dry skin in less than an hour. And she gives a great shoulder and neck massage too! So you’re feeling envious aren’t you? Told you that would happen. But get over it. And then get over to Sense and experience Hilot. And maybe a facial as well.

October 2010

Dine

66 14 Days

wit h St yle Cafe Central Grand Hotel Portorož ***** Obala 33, Portorož Tel: +386 (0) 5 692 1050 info@lifeclass.net www.lifeclass.net Open Every day, 8am – 9pm Food type cakes and sandwiches Price range cakes (slice) from EUR 3,50 to EUR 5,50 Reservations recommended for special eventss

Petit Blonde - Almond cake

Chocolate cake with greaves

Cafe Central Sweet Revolution

Although the Dine With Style series generally introduces you to fully-featured restaurants, this time it makes an honourable exception – introducing you to an elite café which has boldly redefined what we consider as good cake. Cafe Central is a place you shouldn’t miss when visiting Portorož. Actually, their cakes alone are a reason to come to the otherwise somewhat mundane seaside town. The Cafe used to be one of the popular seaside spots, occupying the entrance of the five star Grand Hotel Portorož, one of the classiest hotels alongside the riviera. It was a nice place to sit down, drink coffee, read the papers and catch the sunrays. Cakes have always been a popular product but had previously been somewhat routine. That was until 2004, when master confectioner Sašo Janković took matters into his own hands and made some revolutionary moves. He abandoned standard recipes and started from scratch. After studying and contemplating the art of confectionery, his first move was to strike out all instant ingredients and other workarounds that simplify cake production. No canned fruits or vanilla extracts. Even baking powder is forbidden. Instead, only fresh, unprocessed raw materials were set as the holy standard. The direct generosity of mother nature is what comes on the worktops of the workshop, which Mr Janković also refers to as the laboratory. After the magic of masters is applied to them, an unimaginable variety of tasty cakes end up behind the window. Despite initial doubts as to whether the customers would accept the change – not least since it inevitably brought higher prices – the formula worked. A strict policy of fresh fruits, carefully selected chocolates, exotic spices and as little flour as possible turned into imminent results. You can’t miss it. And you can’t resist spreading the word.

Imagine...

Creativity in cake-making has no limits at Cafe Central. The laboratory has so far invented dozens of cakes, some of them a bit extraordinary such as the ones with asparagus, truffles or beetroot. Both seasonal and local mood determine the taste as well: cherry, fig and even Refošk Wine cakes can be found depending on the time of year. Still, the shop has some twenty cakes regularly in the window, rising to sixty at peak times such as weekends. The bestsellers are difficult to define. Regular guests each have their own favourites. Beside the classics such as chocolate, Sacher or vanilla cake, the quickly disappearing products are the caramel cake, the light almond beauty called “petite blonde”, or a strong chocolate-strawberry cake, which honours the name of the town – Portorož.

The taste matters

A cake is an optical illusion according to Janković. We see the whole of it in the shop and then demand a slice. Despite that, the cake shapes at Cafe Central are conservative. The worksop doesn’t bother with sculpturing and overly decorating the cake’s visuals. They somehow despise confectioners who put too much effort in designing and turning cakes for special occasion into airplanes or football fields, on the account of taste itself. The later is their main focus is they want to keep it that way. And after you have met these cakes in person, you can only agree it is the right way

Top choice Shambala, asian restaurant

Križevniška 12, Ljubljana Tel: +386 (0)31 843 833 info@shambala.si, www.shambala.si Open: 11am-11pm, Sunday and holidays closed. Fresh and spicy experience, selected wines, relaxed atmosphere In Issue 125

Jamski Dvorec

Turizem Kras, Jamska cesta 30, Postojna Tel: +386 (0)5 700 01 00 info@turizem-kras.si www.turizem-kras.si Innovative cuisine inspired by regional and medieval heritage. Excellent wine choice.

In Issue 126

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

CY CMY

JB Restaurant

Miklošičeva 17, Ljubljana Tel: +386 (0)1 430 70 70 restavracija.jb@siol.net, www.jb-slo.com Open: Mon – Fri, noon – 10pm Sat, 5pm–11pm In Issue 127

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

to go. To preserve the freshness, the practice here is also not to pre-slice the cake. In any case, all products can by no means be older than two days. The policies for keeping the ultra high standard are strict. For the same reason, the workshop supplies only Cafe Central and wants to keep the extent of their output within the limits they can reasonably handle without damaging quality. Every cake gets all the attention it needs.

Cake as a standalone meal

While many people are used to cakes as the final course of a meal, in this case cakes get exclusive attention. Luckily, the modern approach to cake consumption is getting more liberal and creative. Alongside the fact that cakes with less ordinary ingredients receive more at-

tention, the drink becomes an important companion as well. Here we are not talking coffee, tea or Coke, but also wines. Beside quite common sweet dessert wines, many people begin to discover inspiring combination with tasty red wines. Special guests receive special attention at Cafe Central. It is possible to get a veganfriendly cake with no eggs or milk used. Those with dietary conditions are also well catered for. Caffe Central is well aware that creating an enjoyable experience for guests requires many elements. And so they keep in line with Portorož’s image of a lively place where people seek both relaxation and entertainment – running evenings with special music guests next to the dancing floor. A chic seaside experience, which pleases all the senses.

Composite

In Issue 128

Castle Otočec Restaurant

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

In Issue 129

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

In Issue 130

Vila Prešeren

Veslaška promenada 14, Bled Tel: +386 (0)4 575 25 10 vilapreseren@sportinaresorts.si Open: 11am – 11pm In Issue 131

Pule Estate

Drečji vrh 16, Trebelno Tel: +386 (0)7 34 99 700, (0)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

In Issue 132

Cafe Central

Grand Hotel Portorož ***** Obala 33, Portorož Tel: +386 (0) 5 692 1050 info@lifeclass.net, www.lifeclass.net Open: Every day, 8am – 9pm In Issue 133

68 SOCIETY

House of experiments

Experimenting With a New Approach to Diabetes Public health campaigns have never been so focused on the importance of healthy eating and regular exercise. Look at the data on obesity and obesity-related illnesses such as diabetes, however, and it quickly becomes clear that the messages aren’t always getting through. It seems innovative approaches are required – just like those being developed by a Slovenian endocrinologist. By Claire Read and Maja Dragović

ndocrinologist Karin Kanc Hanzel first started caring for diabetes patients in 1988. Her work has always primarily revolved around Type 2 diabetes – the most common type – as well as Type 1 diabetes. In recent years something has changed. It used to be that Type 2 was primarily associated with older people. Now, though, more and more young people are coming through Kanc Hanzel’s doors with the condition – one which is closely associated with obesity and lack of exercise. Part of the problem is what Kanc Hanzel terms “diabetes illiteracy”. Few people are aware of the risk factors for the condition, or how those risks can be reduced. “I still get surprised by how little people know about diabetes and about a healthy way of living,” Kanc Hanzel reflects. “Most of all, there isn’t enough awareness of the importance of exercise. People use cars and forget how easy it is to include a little bit of exercise in their daily lives – simple things like parking a bit further from the office and walking the rest of the way or using stairs instead of lifts.”

The right information

Kanc Hanzel argues that the problem is not a lack of informa-

shows the essence of diabetes,” explains Kanc Hanzel. “The body has either too little or none insulin and that is why, in order to balance out the level of glucose in blood, it is necessary to add insulin based on food that contains more or less carbohydrates.” “So the bike also helps children learn why some foods are healthier than others, and learn what causes people to become overweight and how important exercise is to our health.”

A new generation

Sweet-o-bike is an innovative and simple way of raising awareness on the impact our diet has on our health

tion. The Institute of Public Health and the Slovenian Health Ministry both run programmes promoting the importance of regular activity and health eating. So too does the Centre for Prevention of Chronic Diseases (CINDI). And Kanc Hanzel says “more and more information is available in pharmacies, and the number of magazines focusing on health is on the increase”. Now, she believes the problem lies in the approaches being tak-

House of Experiments organises classes for children to teach them the possible causes of diabetes The Slovenia Times

en, particularly when it comes to reaching the tricky audience that is young people: “Information is definitely needed but it needs to be put out there in a more innovative way,” she says.

On your bike

E nt e r t he “Swe e t- o -Bi ke”. Housed at the House of Experiments – an interactive science museum founded by Kanc Hanzel’s partner, physicist Miha Kos – the bike helps children understand diabetes, and the impact of healthy eating and exercise. “Together with my partner Miha Kos and the House of Experiments I was thinking about how to explain diabetes in a simple and innovative way,” Kanc Hanzel explains. The Sweet-o-Bike is an exercise bike with a computer screen attached to it. Children ride the bike and, every so often, come to a virtual snack which they can decide whether to eat or not. Eat too much sugary food, and the rider falls off the road due to glucose overdose. “It’s a ‘hands-on’ type of experiment, which in an interactive way

The bicycle is already proving to be one of the most popular exhibits at the House of Experiments, and Kanc Hanzel hopes it will have a lasting impact on the youngsters who use it. “There is still a lot of prejudice about diabetes,” she reflects. “Some people would be reluctant to employ a person with the condition, for instance, or would worry about how to help a colleague who has hypoglycemia. Many are only aware about the condition through knowing someone from the neighbourhood who had a leg amputated because of it.” “I hope the Sweet-o-Bike will mean those prejudices don’t exist among coming generations – and that it will mean fewer young people come to me with Type 2 diabetes.”

Karin Kanc presents the sweet-o-bike to Ljubljana’s mayor Zoran Janković

Zidanica Verček, med vinogradi na Trški gori s čudovitim razgledom na Novo mesto in Gorjance.

Vineyard retreats: Stay in beautifully converted Slovenia vineyard cottages

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Slovenia has been enriched with a new, unique and attractive tourist product going by the name of TURIZEM V ZIDANICAH (Vineyard Cottage Tourism), which is aimed at tourists searching for authentic and genuine tourist activities, some peace and quiet and a chance to relax in the countryside. Vineyard cottages are a unique feature of the wine-growing region of Posavje, which comprises the wine-growing districts of Dolenjska, Bela Krajina and Bizeljsko-Sremič. This is because nowhere else in the world can you find so many vineyard cottages, wooden wine storage rooms and wine cellars grouped together in such a small area. All these structures stand on the edges of vineyards in splendid locations with lovely views. The agricultural

part of the vineyard cottage is represented by the cellar, which contains tools and wine; the accommodation on the ground floor consists of a kitchen, toilet, bathroom and sleeping quarters. The vineyard cottages are fully fitted with modern equipment and provide visitors with everything needed for a pleasant vacation. While staying in these unique buildings, you will be able to enjoy serenity and quiet contemplation. Vineyard Cottage Tourism is intended for visi-

tors seeking an active vacation experience, with activities such as hiking, cycling, horseback riding and boating available. It is also aimed at lovers of natural and cultural heritage, those who enjoy culinary and gastronomic diversity and visitors who enjoy visiting traditional ethnological and other types of events.

Zidanica Škatlar (cellar) – an isolated vineyard cottage at 500m altitude with exceptional views

Jakljevič farm – tucked between vineyards with beautiful views

Zidanica Majzelj – cottage in the vineyards above the village of Pleterje near Šentjernej.

www.zidanice.si

70 EVENTS Photograpy

Global Award for Sustainable Architecture Wed1 Sep–Fri 15 Oct, The Tivoli Park, Ljubljana, no admission This open-air exhibition of largeformat photographs presents some of the most innovative architectural achievements of the last few years reflecting a philosophy of coexistence with nature and sustainable development. The exhibition brings together 120 photographs depicting works by 15 world renowned architects, winners of the Global Award for Sustainable Architecture. Screenings of films on each of the featured architects are held at the nearby International Centre of Graphic Arts.

Photograpy

Dragomil Bole: Oblio Mon 13 Sep–Sun 17 Oct, Cankarjev dom, Ljubljana, no admission Bole considers photography a significant means of expression for dwelling on the social and spatial dimensions of a crowd, and the visual messages and integration of one’s own image into photographic interpretation. Borrowing its name from a boy named Oblio, the main character in the animated film The Point (Fred Wolf, 1971), the Oblio project was devised in 1985 and remains a work in progress. It is a continuation of the Ideoplastics – Visions of Ideomanias series created between 1985 and 1986.

exotic mammals, especially skunks. The exhibition is accompanied by a programme of creative workshops for children, lectures, video screenings and other events.

Photographic exhibition

Mimicry

Avant-garde

Mon 4 Oct at 7pm, Kino Šiška, Ljubljana, no admission

Ondine

Mimicry is a photographic exhibition by Matjaž Tančič. Hiding, covering up, merging – of Man with nature and of Man with the unknown, cold environment. The first and biggest exhibition of 3D fashion photography reveals the contrast between nature and the urban environment. The link between both is Man. The models blend with the environment with their poses, clothes and style. They look relaxed in nature and aggressive in the concrete jungle of the city. The photographs were taken at seven locations in London and Slovenia and are the author’s personal confession (in a way, they represent Matjaž Tančič’s own life).

Lecture

Henrik Frisk & Pedro Rebelo

Opera

Mon 4 Oct at 7pm, Cankarjev dom, Ljubljana, EUR 8–10

Bioexo 2010: Autumn Edition Sat 2 Oct – Sun 3 Oct at 9am, Ljubljana Botanic Garden’s Glasshouse, Ljubljana

The Slovenia Times

Wed 6 Oct at 8pm, Kino Šiška, Ljubljana, EUR 6.4–10 The concert bo will present a very rare instrument from the 1920s. Ondes martenot, also called Ondes musicales, which in translation means musical waves, is an early electronic instrument invented by Maurice Martenot in 1928. The sonic capabilities of this instrument go from astral, aetheric, all the way to strong shrill voices. Because of this broad spectre, many composers have explored this instrument – in classical music (Messiaen, Murail), film music (Elmer Bernstein, Takashi Harada) and popular music (Radiohead, Godzilla). The concert will feature Thomas Bloch on ondes martenot, Nina Prešiček on piano and Neven Korda doing video projections.

Exhibition of exotic animals

The Bioexo exhibition features exotic pets owned by Slovenian pet breeders and lovers. Exhibited animals include snakes, lizards, turtles, spiders, etc. The speciality of this edition of the exhibition is

interface is constructed, or in the ways the computer instruments are designed (or both). In this presentation Henrik Frisk will show how these issues influence both his artistic practice and his research.

One of the more obvious differences between composed and improvised music is the fact that the latter unfolds in real-time, whereas parts of the former are constructed outside of real-time. This is not to say that improvised music is void of compositional strategies, only that the in-time aspect of improvisation is one of its important features. The temporal properties of a machine are also different from those of a human, something which the computer improviser has to address either in the ways the

José Carreras Thu 7 Oct at 8pm, Stožice Sports Park Arena, Ljubljana, EUR 49–99 In his Ljubljana concert, José Carreras, the best known tenor of our time, will share the stage with the soprano Celine Byrne. They will sing to the accompaniment of the RTV Slovenia Symphony Orchestra. José Carreras holds a special place in the music world. Carreras soon rose to fame as one of the most thrilling tenors of his time, appearing at the most prestigious opera houses of the world. He gained widespread popularity with a series of concerts by The Three Tenors held between 1990 and 2003, in which he sang together with Plácido Domingo and Luciano Pavarotti. Carreras has a repertoire of over sixty operas. He has performed on television and appeared in several films.

Industrial design

BIO 22 - 22nd Ljubljana Biennial of Industrial Design Thu 7 Oct – Sun 7 Nov, Museum of Architecture and Design – Fužine Castle, Ljubljana

The BIO (Biennial of Industrial Design) is a highly regarded international exhibition featuring the latest in industrial design, visual communications and graphic design. The organizer of the exhibition, the Museum for Architecture and Design (MAO), aims at presenting the latest trends in contemporary design with a special emphasis on innovative products meeting the challenges of modern everyday life, sustained development, social responsibility and consumers’ special needs.

Pop

Goldfrapp Fri 8 Oct at 9pm, Kino Šiška, Ljubljana, EUR 25–39

Goldfrapp are Alison Goldfrapp on vocals and Will Gregory on keyboards, the man who started this project. The pair have been working together for over a decade and have released a number of successful albums, both artistically and commercially. Their last one, entitled Head First, was no different, as it featured a number of infectious pop melodies together with the occasional sonic exploration of Gregory. This concert will feature a backing band, which should do justice to their music live as well.

Rock

Garage Explosion 2010 Fri 8 Oct at 8pm, Pekarna, Maribor, EUR 10–12 This is the sixth edition of this fesitval of garage rock. It brings us perhaps the biggest name of the genre – The Moorlocks. This cult band from Los Angeles was formed in 1984 and is considered to be the embodiment of garage punk. Although only the singer remains from the original line-up, the band has always remained true to its vision. Other artists at the festival include DMT, My Buddy Moose, Šmajser, Nero Burns, Diego and Barely Modern.

EVENTS 71 Pop

Ditka Haberl Fri 8 Oct at 8pm, Cankarjev dom, Ljubljana The red-headed Ditka Haberl is undoubtedly considered one of the most memorable female pop singers in Slovenia, with an amazing voice and an instantly recognisable interpretation. In her long career she has been able to sing various musical styles and present ideas from many Slovene composers of various generations. Who can forget her unforgettable hits, such as Nad mestom se dani, Samo nasmeh je bolj grenak, Mlade oči, V meni raste drevo, Ljubezen, Ne prižigaj luči, etc. Besides her solo career, she is also famous for singing in one of the biggest Slovene pop bands Pepel in kri, a Slovene version of The Mamas and The Papas.

Alternative

Marcella And The Forget Me Nots Fri 8 Oct at 9.30pm, Cankarjev dom, Ljubljana Marcella and The Forget Me Nots are increasingly becoming the

Concert of

most talked about band of the London musical scene. The music is impossible to place, as it combines influences of the 1930s music from Berlin, the Baroque avant-garde of Klaus Nomi and art rock bands from the 1970s. Marcella and her sevenpiece completely female orchestra have been getting rave reviews and are one of the most sought after concert bands around.

Alternative rock

Nick Cave And Grinderman Sat 9 Oct at 8pm, Križanke, Ljubljana, EUR 35 The Australian artist Nick Cave is best known for his dark songs and bass vocal, which has been haunting us for many years. For many years he played together with the band The Bad Seeds and some of the members from that band also make up Grinderman. Nick Cave also had successful collaborations with English alternative rock singer PJ Harvey and fellow Australian pop star Kylie Minogue. At this performance, we are probably destined to hear fewer hits and more of the recent Grinderman album, released on 13th September.

Experimental

Dakhabrakha Tue 12 Oct at 5.30pm, Cankarjev dom, Ljubljana, EUR 15–18 Ever since its establishment in 2004, DakhaBrakha (The name is original, outstanding and authentic at the same time; DakhaBrakha means “give/take” in the old Ukrainian language.) has been asserting itself as one of the most sought-after concert sensations in Europe. DakhaBrakha is still somewhat of a cult phenomenon in Ukraine, appealing to a discerning audience of knowledgeable fans who like their aggressive sound, which involves a lot of ritualistic tribal rhythms and frenzied, sometimes caterwauling, vocals. They perform in Ukrainian national costume, as befitting their faith in Ukrainian culture.

Pop rock

Leonard Cohen Tue 12 Oct at 8pm, Stožice Sports Park Arena, EUR 38–67 Leonard Cohen, a poet with a dark, velvety voice, is one of the most fascinating and original music artists of our time. Before venturing

into the world of music in the 1960s, Leonard Cohen was already renowned as a poet and novelist. His songs deal with the themes of love, hatred, jealousy, faith, the loss of youthful idealism, religious wisdom, and the wisdom of life. His greatest hits include Hallelujah, So Long Marianne, Bird on a Wire, Famous Blue Raincoat, and Dance Me to the End of Love. He has influenced many music artists and lyrics writers. For the last few years he has been on a farewell tour, part of which will be his Ljubljana concert.

Dancing

Matjaž Farič: Shiver Wed 13 Oct–Thu 14 Oct, Cankarjev dom, Ljubljana, EUR 10–18 They meet and divide the world into male and female poles. They

South Indian Classical Music

Chitravina N. Ravikiran www.ravikiranmusic.com

Accompanied by:

Lasanthi Manaranjanie Kalinga Dona (violin) Carlos Yoder (tabla)

9th Oct 2010 at 7pm City Museum of Ljubljana Tickets available from 20th Sep at City Museum of Ljubljana, Gosposka 15: 15 EUR in presale, 18 EUR on the day of the concert More information: The Slovenia Times: marketing@sloveniatimes.com t: 00 386 41 335 166

Organizers

Association of Indian Slovenian Friendship

Partners

Embassy of India Ljubljana

Sponsor October 2010

72 EVENTS find each other in the crevice of the world. Inspiration incites the rod to strike an object. The man propels the sound, the female body accepts it. The vibrating skin makes music and pours out into a shift. The body shifts, the consciousness shifts, then the shift turns into a dance. The rhythm breaks apart and several pairs of eyes witness how teeth sink into the solid crust. A taste spills out into the mouth and the jaws stiffen in a spasm. Her gaze stops on the surface, which is subjected to slaps. His hand administers them with precision, and so she has no difficulty finding her bearings in time.

Electronic

Stereo Total (Ger) Thu 14 Oct at 10pm, Kino Šiška, Ljubljana, EUR 11.4–17 This is a concert to promote the album Baby Ouh! (Kill Rock Stars, 2010). Stereo Total is a Berlin-based French-German duo, which features private life partners Françoise Cactus, an accomplished prose writer and experimentalist Brezel Göring. Their music brings together two traditions: French chanson and

The Slovenia Times

German electronic music – the so-called “Neue Deutsche Welle.” In their ten albums, the duo has developed a colourful and unique sound between punk rock, disco, electronic music and the chanson tradition.

their knowledge and experience to workshops participants, who will be able to learn a variety of different salsa styles, including LA and NY style salsa, Cuban salsa, bachata, reggaeton and Rueda de Casino, a type of salsa danced in a circle. Over three days, the Salsa Power festival will feature salsa workshops for dancers of four different skill levels, from beginners to professional dancers.

Cinema

Anthology of Italian Spaghetti Western

Salsa

Fri 15 Oct–Fri 22 Oct, Cankarjev dom, Ljubljana, EUR 3.80–4.60

Salsa Power - 7th Salsa Festival

A broad sub-genre of American Western film, the extremely

Fri 15 Oct – Sun 17 Oct, Športnoplesni center Buba (sports hall), Ljubljana, EUR 20 - 110 Those attending the Salsa Power festival will be able to learn salsa from scratch or improve their skills under the tutelage of renowned dance teachers from abroad. Performers at the festival will include distinguished salsa artists. Salsa teachers from Slovenia and abroad will be passing on

popular but high-quality Spaghetti Western emerged in the1960s, and was so named because mostly produced by Italian studios. The heyday of Italian comedy (so-called Commedia all’italiana), the period also witnessed the rise of genre films, whereas internationally most resounding and today held in high regard was the Italo-Western or Spaghetti Western, although the term was originally used by the American critics mostly disparagingly. Directors such as Sergio Leone, Guilio Questi and Sergio Sollima challenged the limits of the genre, reinvigorating it and investing it with an imperative political edge.

Comedy

If You Can Stand the Heat: the History of Women in Food Sat 16 Oct at 8pm, Cankarjev dom, Ljubljana, EUR 10–18 The touring anonymous theatre company was established in 2001 by three members of a group of radical feminist artists, the Guerrilla Girls (active since 1985), to prove that feminists also have a good sense of humour. Their work

EVENTS 73 is presented in masks, and draws from a variety of classical theatre techniques, such as physical theatre, vaudeville, and parody. Employing theatrical stage lexicon, the entertaining and flour-sifting show aims at dispelling the fear of food and encouraging the freedom of appetite. The comedy also focuses on issues surrounding women and food, such as body image, nutrition, and global hunger.

The Slovenia Times Recommends

Chitravina N. Ravikiran

Industrial

With his unique talent, Indian prodigy Chitravina N. Ravikiran will display the complexity and beauty of Indian music. Indian virtuoso Chitravina N. Ravikiran will showcase a glimpse of one of India’s two mainstream classical systems, Carnatic Music that dates back to nearly 3000 years. Carnatic music, reputed for its rich vedic tradition, is one of the most complex and evolved musical systems in the world. Ravikiran was considered as a child prodigy in his youth. At the age of two, Ravikiran impressed scholars with his knowledge in Carnatic music. In 1969 (two years old), he made his first appearance in the Malleshwaram Sangeeta Sabha, Bangalore. Soon after that he was presented in The Madras Music Academy, Krishna Ghana Sabha he was able to identify and render about 325 ragas (melodic scales) and 175 talas (rhythmic cycles). He was quizzed by famous musicians such as Semmangudi Srinivasa Iyer, Pandit Ravi Shankar, M S Subbulakshmi and others. The Music Academy, Madras, awarded the two-yearold a monthly scholarship for the next few years. Ravikiran is also the author of several books: Appreciating Carnatic Music and Perfecting Carnatic Music Level I and II. He is also the founder of the International Foundation for Carnatic Music. Although Ravikiran dedicated most of his career to playing the chitravina, he has also returned to his love of singing in the last few years. So, this performance will see him tackling both the chitravina and vocal duties. He will be accompanied by Lasanthi Manaranjanie Kalinga Dona on violin and Carlos Yoder on tabla.

Front Line Assembly

Sat 9 Oct at 7pm, City Museum, Ljubljana, EUR 15–18

Jazz

Mia Žnidarič Sat 16 Oct, 8pm, Hotel Mons, Ljubljana, EUR 20 One of the most accomplished female singers in Slovenia will be making an appearance at the now already traditional jazz club Mons, which has a very diverse programme every year. Mia Žnidarič is renowned for her great interpretation of classics and her amazing voice, which comes as no surprise, considering her role models: Billie Holliday, Ella Fitzgerald, Sarah Vaughan, Dinah Washington, Nancy Wilson and Etta Jones. The evening should be filled with soulful, soaring vocals from one of Slovenia’s most cherished treasures.

Sun 17 Oct at 8pm, Kino Šiška, Ljubljana, EUR 14.4–23 Through almost a quarter of a century of activity, Front Line Assembly have established themselves as one of the godfathers of industrial music. Together with Nitzer Ebb, Laibach, Ministry and Canadian colleagues Skinny Puppy they also had a decisive effect on the aesthetic of the later torchbearers of heavy guitar industrial rock – Nine Inch Nails. Going on before them will be the electro/techno pop outfit Mind. In.A.Box.

Folk

Narat Tue 18 Oct at 8.30pm, Cankarjev dom, Ljubljana, EUR 11–14 In March 2010, philosopher and musician, bandleader of Katalena as well as composer and performer of theatre music, Boštjan Narat released his debut solo album, Strah je odveč. In Slovenia, the recording has asserted the acknowledged musician not only as a guitarist and songwriter but

also as a singer. Narat’s greatest achievement is the lyrics; in short, he is addressing life’s perpetual issues. He tackles them in depth, employing unusual poetical figures and similes, which create visual images in the listener’s mind.

Photography

Photonic Moments Festival – Month of Photography 2010 Thu 21 Oct–Sun 14 Nov, Cankarjev dom, Ljubljana, no admission The presentation and promotion of first-rate Slovenian and foreign photography, primarily the current

output of Central and SE Europe. The Festival will commence with the opening of the central groupshow, Tension Field, exploring major tendencies in the field of original photography in the region. CD will also host a forum entitled Talks on Contemporary Photography, focusing primarily on the development of the photo scene from club to gallery. The festival also awards innovative photo projects, predominantly acknowledging up-and-coming artists.

Avant-garde

Table Fri 22 Oct at 8pm, Cankarjev dom, Ljubljana, EUR 12–18 Four men in black suits come on stage, sit round the table like four Russian-roulette players and begin to play on it. It is not a game of poker, though, but a fantastic quartet performed on the table. They play with their hands, lips and simple everyday objects. The Karbido Company from

Wroclaw is composed of artists finding expression in theatre, the avant-garde, free inspiration and virtuosity.

Event by other organiser

Healthy Workplaces. Good for you. Good for business Mon 25 Oct, Cankarjev dom, Ljubljana, no admission Promotion of safety and health at work. The results of the European Survey of Enterprises on New and Emerging Risks (ESENER 2009), conducted by the European Agency for Safety and Health at Work (EUOSHA), will be presented during the first part of the event. The Survey provides internationally comparable information concerning the: practices of companies from the EU-27 Member States and some other countries in managing safety and health at work, participation of employees in the management of safety and health at work and psychosocial risks. October 2010

74 EVENTS Classical

Jazz

Alternative rock

The New York Philharmonic

Aronas

No Age, Red Sparowes, Abe Vigoda

Tue 26 Oct at 8pm, Cankarjev dom, Ljubljana, EUR 30–78 In October, Cankarjev dom will again host the oldest symphony orchestra in the United States. Since its inception, the Philharmonic has played a leading role in American musical life, championing the new music of its time. Conductor Alan Gilbert is one of the youngest principal directors in the history of this celebrated orchestra, and the only New Yorker who has had the honour of assuming this position. Gilbert became Music Director in the 2009-10 season, succeeding Lorin Maazel and a distinguished line of musical giants that has included Kurt Masur, Leonard Bernstein, Zubin Mehta, Pierre Boulez, Gustav Mahler, Bruno Walter, and Arturo Toscanini.

Tue 26 Oct at 8.30pm, Cankarjev dom, Ljubljana, EUR 11–14

Wed 27 Oct at 9pm, Menza pri koritu, Ljubljana, EUR 15–18

At first glance, an overhyped advertising slogan, but New Zealander Aron Ottignon has truly succeeded in creating a unique melange of a “crazy” piano, tribal rhythms, forceful bass and neurotic steel pan drums. There has even been talk of a new musical genre. Meanwhile, Aronas has been busy performing all over the world (Roskilde Festival, Montreal Jazz Festival, Sydney Festival, Akbank Jazz Festival Istanbul…) and selling his album, Culture Tunnels, via iTunes Store.

Dean Spunt and Randy Randall, two perfectly nice fellows from the Los Angeles skate/art/punk underworld, comprise No Age, a destructive duo who decided to release five limited vinyl-only releases on a variety of do-ityourself indie labels. Formed from the ashes of Wives, No Age purvey a stripped essential take on pop delivered via a clearly defined punk-rock aesthetic, taking noise, energy and melody in equal measure. They will be supported by monumental post rockers Red Sparowes and Abe Vigoda.

World music

3Ma Tue 2 Nov at 8.30pm, Cankarjev dom, Ljubljana, EUR 15–18 3Ma is much more than just a geographic and cultural arc that links and unites the uttermost NW and SE of Africa. Together, the line-up has devised an entirely new trans-ethnic and thereby a transcontinental product, achieving a striking and self-explanatory effect in its own right. All it needs is an unprejudiced ear. The line-up includes Rajery on valiha, Ballake Cissoko on kora and Driss El Maloumi on oud.

Avant-garde

Japanese New Music Festival Wed 3 Nov at 9.30pm, Menza pri koritu, Ljubljana, EUR 10–12

Electronic

Dash Berlin Fri 29 Oct at 11pm, InBox, Ljubljana, EUR 18 This time the InBox club will feature one of the most up-and-coming DJ’s in the world – Dash Berlin. Dash is renowned for his charisma and courage, with which he breaks all the written and unwritten conventions in the electronic world. He promises an unforgettable night full of emotions and positive energy. The first man to introduce Dash to the world was Armin van Buuren and after that Dash’s career simply took off, with hits like ‘Till The Sky Falls Down,’ ‘Man On The Run,’ ‘Waiting’ and ‘Never Cry Again.’

Dancing

Dog Days “Hundstage” Sat 30 Oct at 8pm, Kino Šiška, Ljubljana, EUR 12.80–20 After the performance of “Love, Death and Devil,” the Düsseldorf choreographer Ben J. Riepe presents Dog Days “Hundstage,” a new performance for seven dancers. What is left when the truth is presented in all of its artificiality, when the cynical distance toward the world loses its The Slovenia Times

protective smile? The characters in this melancholic quest wander around scenes from a chaotic world. The tragedy turns into irony and the erotic shows its violence.

The Japanese New Music Festival brings together some of the best and highly regarded artists in the Japanese experimental scene. Tsuyama Atsushi is best known for his monster bass in Acid Mothers Temple, but he also has amazing technique of guitar and vocal. Kawabata Makoto is best known for his speed-demon noise-fuzz guitar in Acid Mothers Temple, but he is also widely active as an unparalleled drone guitarist. Yoshida Tatsuya is one of the most innovative drummer/composer/ improviser in Japan’s new music scene. The Drum & Bass duo Ruins was founded by Yoshida in 1985.

Jazz

Oregon (USA) Wed 3 Nov at 9pm, Kino Šiška, Ljubljana, EUR 20–29 Oregon is an American band of experienced musicians, which revolutionised the jazz sound in the 1970s. For a while, the famous Indian multi-instrumentalist Trilok Gurtu also played with them. This is the music that landed on the Moon together with the astronauts on the Apollo! The current line-up consists of Ralph Towner on guitar and piano, Paul McCandless on oboe and woodwinds, Glen Moore on bass and piano, and Mark Walker on drums and percussion.

SPORTS 75

Kayaking and Canoeing

Good But Not Ideal Last month saw the Slovenian village of Tacen play host to the Whitewater Slalom World Championship. The home nation won two medals but it wound up being an event which can only be described as bittersweet. By Simon Demšar

Photo: BOBO

t should have been cause for uninterrupted celebration: kayakers and canoeists from around the globe gathering in Slovenia for the Whitewater Slalom World Championship. Thousands lined the Sava riverbanks to be part of the special event and cheered themselves hoarse as the Slovenian women’s kayak team won two bronze medals, an act repeated by emerging star Jure Meglič. But then some controversial judges’ decisions took the sheen off proceedings. The men’s kayak team was already celebrating the world title when news struck that the judges had awarded them 50 penalty seconds, relegating them to 16th place. Meanwhile Peter Kauzer, the 2009 world champion, this year’s European champion and the 2009 overall World Cup winner, suffered the same fate, having been given 50 seconds for apparently touching the gate. Both decisions were appealed but to no avail.

Kazuer’s Disappointment – Meglič’s Joy

It might have ultimately caused heartbreak, but the men’s individual final was undoubtedly the race of the weekend. The anticipation of Peter Kauzer’s World Championship attempt was evident. He and Jure Meglič went down consecutively. As Kauzer made his way down the course, it all seemed to be going well but it was an upstream gate that added 50 points to his run. The disappointment was clear, both in the face of the competitor and in those of the spectators. »I don’t know, maybe there is something on my face saying ‘award me a penalty, please’« a disappointed Kauzer commented after the race. Jure Meglič’s performance was some consolation. Fourth fastest in the semis, he was clearly on form and managed a quick and clean run which gave him the bronze. In the silver medal position was Czech Republic’s Vavrinec Hadrilek. Crossing the line in first place was Italy’s Daniele Molmenti. Ever the showman, Molmenti was clearly delighted as he

sat on the water and watched his fellow competitors come through. After the race he told reporters it was a little bit of luck that brought him over the line first, but it was also thanks to all the training he has done in Slovenia. Leading up to the final, he said that he was feeling pretty relaxed having won the World Cup and he knew he could make the time. And when he retires, it seems he might have a career in fortune telling. At the European Championships in Bratislava earlier this year he told Kauzer that as he had given him the European title, he would take the World Championship title from him in Tacen. As we all know, it came true. Talking about how he coped with the Slovenian fans, he said, »Slovenians support me a bit, I am really good friends with Peter and I am kind of part of the Slovenian family.«

Future is Bright

There may have been disappointments at this year’s World Championships, but kayaking in Slovenia has a long and successful tradition. Slovenian kayakers regularly win medals at the biggest competitions, including the 1996 Olympic games in Atlanta, when Andraž Vehovar won a silver medal. Peter Kauzer was a favourite in Beijing but made a silly mistake in the semi-finals. According to observers, the Tacen event has confirmed that the tradition continues and the good results were a combination of youth and experience. Team director Andrej Jelenc stressed the team spirit, »where everybody was breathing for the common goal.« The big attendance also did not go by unnoticed and according to Meglič, »this was the best cheering I have ever experienced.«

A touch of misfortune: Peter Kauzer

New world champions Men: Kayak, individual: Daniele Molmenti (Italy); kayak, individual, team event: Germany; canoe, individual: Tony Estanguet (France); canoe, individual, team event: Slovakia; canoe doubles, team event: France; canoe, doubles: Peter/Pavol Hochschorner (Slovakia). Women: Kayak, individual: Corinna Kuhnle (Austria); kayak, individual, team event: Czech Republic. October 2010

COLUMN

Time is Running Out

By Andraž Požar For fans of the Slovenian national basInstitute for ketball team, last month’s Basketball World Promotion of Sport Championship in Turkey brought with it a horrible sense of déjà vu. It was a case of so close and yet so far – just like four years ago in Japan. And just like at that tournament, it was Turkey who served as the executioner of our nation’s dreams. In the four years since the last heartbreak, Slovenia has changed coach three times. In Japan Aleš Pipan was the head coach of the team, at the European Championship in 2009 Jure Zdovc had the role, and this year in Turkey Memi Bečirović took control. Compare that to Turkey, which has had just one coach throughout the whole period – Serb Bogdan Tanjević. Interestingly, before he signed with Turkey, Tanjević had been touted as a possible head coach for Slovenia. The National Basketball Association ultimately decided to give a chance to Slovenian “experts”.

Euroleague Basketball

A new start Union Olimpija Ljubljana have experienced some disappointing seasons in recent years. Can their new home, the beautiful and newly built sports hall Stožice, inspire them to greater heights this year? By Milan Glamočanin

An absence of the best

Slovenia has never had problems with the quantity of great and even exceptional basketball players. Many foreign basketball experts agree that in terms of players, the Slovenian team is amongst the top four in the world. Only the USA and Spain are a few steps ahead of us. No, the main problem with which the Slovenian national team coaches are confronted is the inability to bring all the best players to championships. If we take a look at players that declined to play this year, we can see that Slovenia played without Beno Udrih, Saša Vujačič, Emir Preldžič, Matjaž Smodiš and Erazem Lorbek – all of whom would be starters for most coaches. Which is not to say that the Slovenian “expert” coaches are entirely blameless. They have achieved good results in recent years but never in the form of medals. From a mile off you can see that those coaches are not on the qualitative level of the best Slovenian players, who play important roles for best European clubs and have won several Euroleague and NBA titles. All of the experience our “experts” have is from Slovenian league, maybe from Adriatic League or Belgian and Ukrainian clubs. Let’s be honest, not the world’s most developed basketball competitions. Only Jure Zdovc is a small exception here. In Europe he is recognised as one of the basketball legends, but his coaching career is at the moment still far behind his career as a player. And he is the one who holds the best recent result for Slovenia – fourth place in last year’s European championship in Poland.

Time to get it right

The next three years will possibly be the most important cycle in the history of the National Basketball Association. First up is the European championship in Lithuania next year. Then it’s the 2012 Olympic Games in London. Then the European championship in 2013, which may be held in Slovenia (the other candidate is Italy). If we want to realise the potential of the Slovenian golden basketball generation and win medals in those three competitions then the National Basketball Association will have to finally invest more funds in coaching staff. The only realistic solution is a recognised expert from the territory of the former Yugoslavia. Dušan Ivković, Želko Obradović, Svetislav Pešić and Bogdan Tanjević won European, World and Olympic titles with Italy, Turkey and Yugoslavia/ Serbia. The one and only question: is the Slovenian Basketball Association willing and able to sign such a prominent coaching name? Or will the next three years be déjà vu all over again?

The Slovenia Times

The past season’s rare moments of joy for Olimpija.

espite all the problems and visions of a black scenario at the end of last season, basketball team Union Olimpija is still breathing and expecting to fight hard in every match against prominent opponents. Janez Rajgelj has come back to his old position as executive director and the team is prepared for new challenges both in the Euroleague and the regional NLB League. CSKA Moscow, Panathinaikos Athens, Power Elec. Valencia, Efes Pilsen Istanbul, Armani Jeans Milano and Union Olimpija are all in the same group, again promising sold out games. This time, though, the sold out games will be in a state-of-the-art venue. The new season begins in the Stožice sports hall on 20 October, when Union Olimpija plays host to Efes Pilsen from Istanbul. The game will give the first impression of what the team from Ljubljana is capable of this season. Coach Jure Zdovc, a Yugoslavian and Slovenian international

with great experience and great success in his career, had several problems with forming a quality team for the season due to financial problems at Olimpija. But as the new season approaches it seems that a positive wind is starting to blow through the Stožice hall. Already signed is ex-Croatian international Damir Markota and one of the most experienced Slovenian internationals Goran Jagodnik. Along with team captain Sašo Ožbolt and Vladko Ilievski, expect Markota and Jagodnik to form the main skeleton of the team. They will be joined by a number of young and promising players, which means spectators can also expect good and attractive games. The hardcore supporters, the »Green Dragons«, will as always provide loud and encouraging support. As the team embarks on a new season in a new home, we remember from past seasons that even great teams can be beaten in Ljubljana.

SPORTS EVENTS 77 Football

Slovenia – Faroe Islands 8 Oct at 8.30 pm, Stadium Stožice, Ljubljana, EUR 12-25 After a shocking defeat at home against Northern Ireland and a draw against big rival Serbia in Belgrade, the Slovenian national team is coming back to Ljubljana. Last qualifying match was played in the capital nearly seven years ago when Slovenia lost (0-1) against Croatia in the extra qualifier for European Championship 2004. This time, nothing else but a victory is expected against the team from the north. Just three days later, Slovenia will face Estonia on their home ground. Anything else but 6 points from two matches would almost definitely mean a sudden end of dreams of participating at European Championship 2012.

Basketball, Euroleague

Union Olimpija – Efes Pilsen (Turkey) 20 Oct at 8 pm, ŠRC Stožice, Ljubljana, EUR 7-35 Euroleague has once again come back to Ljubljana, this time on a new venue in the new hall of Stožice. This should give a huge burst of confidence to the young team of Union Olimpija, facing a wealthy club from Istanbul. Almost half of the Turkish national team present at the recent World Championship plays for Efes Pilsen, and also a few great foreign players including Serbian Igor Rakočević and Slovenian Boštjan Nachbar. The Turks are favourites but we

have learned in the past years that even the best European teams can be beaten in Ljubljana.

Basketball, NLB League

Handball, Champions League

Union Olimpija – Krka

Celje Pivovarna Laško – Kiel (Ger)

Basketball, Euroleague

16 Oct at 8 pm, ŠRC Stožice, Ljubljana, EUR 3-10

17 Oct at 8.15 pm, Sports Hall Pod Golovcem, Celje, EUR 7.5-10

Union Olimpija – Panathinaikos 4 Nov at 8 pm, ŠRC Stožice, Ljubljana, EUR 7-35 In the third round of Euroleague, another European giant is coming to Ljubljana. Five times Euroleague champion with the last title won in 2009 is once again on the top of the list of favourites for this season’s title. Best European coach, Željko Obradović, owns a great roster of experienced Greek and foreign players. Former Union Olimpija star player Šarunas Jasikevicius is coming back to the city where his bright career began. Additionally, it is worth to mention the Greek star Diamantidis, great centre line with Peković and Batiste and a newcomer from Partizan Belgrade, a last year’s regular season MVP, Aleks Marić. Spectacle assured!

This is the biggest match among Slovenian basketball clubs. Last confrontation was won by Krka in a decisive 5th match of the last season’s national championship final. This time, Union Olimpija will look for revenge.

Ice Hockey, EBEL League Basketball, NLB League

Union Olimpija – Partizan (Serbia) 30 Oct at 8pm, ŠRC Stožice, Ljubljana, EUR 3-10

Basketball, NLB League

Union Olimpija – Igokea (BiH) 9 Oct at 8pm, ŠRC Stožice, Ljubljana, EUR 3-10 Season opening against new participant in the regional basketball NLB league will be the first official match for Union Olimpija in the new Stožice hall. Victorious start of the season would bring huge amount of confidence to the young team.

One of the biggest derbies of the regional NLB league with both teams playing Euroleague during the week and the team with the longer roster will be in a huge advance. Team from Belgrade had a great season last year in Euroleague, finished 4th, which will be hard to repeat, and is the present NLB League champion. Both duels last year were won by Partizan.

Basketball Tickets - Union Olimpija

Ljubljana’s Union Olimpija is entering the season in Euroleague and NLB league. The matches will be played in a brand new sports hall Stožice. It is time to get yourself the best seats for upcoming matches. Single match tickets and special seasonal packages are available. MATCH TICKETS Category DELUXE PREMIUM 1. cat. 2. cat. 3. cat. Euroleague 200 € 35€ 18€ 14€ 9€ NLB league 10€ 6€ 6€ 4€

Special* 7€ 3€

SEASON TICKETS Category DELUXE PREMIUM 1. cat. 2. cat Special SEASON 850 € 350 € 196 € 165 € 95 € MAXI 13 / 240 € 128 € 108 € 59 € MINI 8 / 190 € 83 € 73 € 44 € MINI 5 / 160 € 75 € 55 € 35 € *Special tickets are available as a limited edition for students and seniors only in 2nd category. MINI 5: 5 regular season games Euroleague MINI 8: 5 Euroleague, 3 NLB (Partizan, Red Star Belgrade, Cibona) MAXI 13: MINI 8 + additional 5 NLB games at your choice Detailed information about tickets at: www.union.olimpija.com

After a season break, Handball Champions League is back to Celje. Investments in the team of Celje were huge, so great results in Europe are expected from them. They are led by a coaching legend Zvonimir Serdarušić. Among biggest signings are Croatian stars Petar Metličić and Mirko Alilović, Slovenian Luka Žvižej and Spanish Carlos Prieto. Great matches are expected as the team was drawn in the most attractive group, with European giants Barcelona, German teams of Kiel and Rhein Neckar Löwen, French Chambery and Polish Kielce.

Acroni Jesenice – Tilia Olimpija 15 Oct at 7.15 pm, Podmežakla Sports Hall, Jesenice, EUR 5-8

Possibly the biggest rivals in Slovenian team sports will meet for the second time in a season. Olimpija’s team is more experienced while Jesenice is full of home-grown young talents. This will be the first derby in modernized sports hall Jesenice, meaning a great ambience is secured.

BUSSINES PACKAGES

Special Deluxe business tickets and VIP box for your company, ideal for relaxation after work or a gift to your business partner. Deluxe tickets offer free snacks, a free guaranteed parking spot and a seat just meters from the playground Deluxe tickets are available within the season packages. Only in case they have not been sold that way, they can be purchased as a single match ticket.

Exclusive Offer! cat 3 cat 1 cat 2

premium deluxe

VIP box with the name of your company -VIP box for 15 – 20 people -Tickets for all guests -Up to 10 parking spots -Free snacks and drinks -At least one hostess -Advertising on the big screen during match For information regarding VIP boxes please contact: sports@zavod2010.com

October 2010

A lecture by wine expert Robert Gorjak at the 4th Festival of Prestigious Wines, Hotel Mons.

DJs Umek and Carl Cox at Simobil’s Party with a reason, Ljubljana Tivoli Park (Photo: Žiga Intihar). Apaks, the new residents of Ljubljana ZOO.

EVERY PICTURE TELLS A STORY

A Czech fencing group Merlet at the opening of Maribor’s Špasfest festival. Divers cleaning the riverbed at the Ljubljana water games.

Raising the pine tree: representatives of BTC and Ljubljana Municipality on the top of Crystal palace - the country’s new talles skyscraper.

Participants of the “United Games of Nations” in Izola, the meeting of youth with lesser opportunities and discrimination target groups.

Tourist promoters at a joint workshop by Slovenian and Croatian tourist boards in Mumbai, India.

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