LIFESTYLE: A Toast to this Year’s Vintage!
The Slovenia Times, Slovenian magazine in English, volume 7, number 134, EUR 4,80
November 2010
Foreign Direct Investment to Slovenia: Between the past and the possible futures
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CONTENTS
November 2010
Business Partners
POLITICS
6 Local elections outcome 8 The public sector strike 9 Young generation (not) getting independent 12 13 14 16 18
ECONOMY Interview: Melita Gabrič, Consul General of Slovenia in New York Controversy over Slovenia’s two energy giants E-governance: helping the public sector The Legacy of this year’s Golden Drum Embassy diaries
FDI special 22 24 26
Slovenia’s FDIs are profitable despite the crisis FDI strategy – looking for a different approach Interview: Dr Peter Kraljič, Director Emeritus of McKinsey & Company 29 Slovenia brand needs to work on its recognition 30 Interview: André-Marc Prudent, CEO of SKB Bank 32 Investor’s options in Slovenia 33 Interview: Ahmed El Sewedy, CEO of El Sewedy Electric 34 The question of privatisation 36 What is the future for Slovenia’s logistics sector 38 Winners of InvestSlovenia FDI Award 2010 42 Overview of the FDI Summit 2010 46 48 52 54 58 60 62 64
Najmanjša dovoljena velikost logotipa je 25 mm.
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:
LIFESTYLE Experience: Jeruzalem Ormož wine cellar The froutis of 2010 vintage Interview: Robert Gorjak, wine expert The Capital: Ljublajna wine route Dine With Style: Promenada Gourmet Restaurant
CULTURE People: Ljuben Dimkaroski, musician The first year of Kino Šiška The event guide
68 69 70 71
SPORTS
78
Every picture tells a story
Football Euro 2012 Qualifiers In memoriam: Jure Robič The 2013 Basketball Euro Championship bid ACH Volley and the Champions league
November 2010
Vsebina: Barvni Logotip angleška različica
PANORAMA Chief of Staff Resigns
source: STA, Slovenian Press Agency
Judge Dread
PM Borut Pahor’s chief of staff Simona Dimic resigned after finding herself in the centre of media storm over allegations of wrongdoing concerning her assets and the assets of her partner, businessman Roman Horvat. The Corruption Prevention Commission said that Dimic was being investigated over allegations of a conflict of interest, but would not go into detail, while the police launched an investigation two days later. Media reported that revenues of Horvat’s tourism firm, Escape, rose in the first year of the Pahor government and that the government has sought the company’s services in making flight arrangements for officials. The media also began examining the renovation of Dimic’s house in a wealthy Ljubljana suburb of Murgle, with media speculating that insolvent builder Vegrad performed the works using material from the site of Vegrad’s massive flat complex in Ljubljana. Subsequently, RTV Slovenija reported that the team reporting living outside Dimic’s house, had been threatened by a man, allegedly an associate of Dimic’s partner. Pahor, who had stood by Dimic throughout, said that he was surprised by the resignation, but that he understood her decision.
A Public Corporation
The Democrats (SDS) accuses Supreme Court president nominee Branko Masleša of working with Communist authorities and opposing Slovenia’s independence, which the nominee denies. In the letter addressed among others to foreign embassies, the SDS says the nomination of Masleša to head the Supreme Court was “a slap in the face of European values” and a “return to the judicial system of the totalitarian era”. The SDS accuses Maslesa of being the last judge in Slovenia who delivered a death sentence and of allegedly being a member of a Yugoslavian commission verifying military killings of people who attempted to flee to Italy illegally. Moreover, the SDS says in the letter that Maslesa actively opposed Slovenia’s independence. Maslesa in turn rejected the accusations saying that all but the capital punishment verdict were unfounded and untrue. He explained that the capital punishment verdict was delivered by a five-member panel which he was presiding in the early 1980s. The man on trial was found guilty of five murders, and later the sentence was changed to 20 years of prison. Maslesa has appeared as a candidate for the post which has been vacant since February in recent months. He has already won endorsement from the Supreme Court judges and the Judicial Council and needs to be confirmed by Justice Minister Ales Zalar before his nomination is forwarded to the National Assembly. Since the term of former Supreme Court President Franc Testen ended inFebruary, the court has been headed by interim President Alenka Jelenc Puklavec, the longest-serving Supreme Court judge.
Photo: BOBO
The coalition majority in parliament passed a bill that transforms the Slovenian public broadcaster into a public corporation of special cultural
The RTV building in Ljubljana
and national importancedespite concerns that the law may be unconstitutional. The Republic of Slovenia remains the sole founder and owner of RTV Slovenija. The bill introduces sanctions for the management if it fails to provide public service and meet the prescribed shares of programme content, which should prevent commercialisation and preserve the role of RTV Slovenija as a quality provider of public service, depending on optimal staff solutions enabled by the bill. The programming council will be reduced from 29 to 17 members and the appointment procedure is changed. The employees will no longer be public sector employees. While coalition deputies argued that the bill was a guarantee for a quality public service and that it would make the broadcaster more independent of politics and capital, Miran Gyoerek of the opposition National Party (SNS) said that a “sui generis” bill was not fit for RTV Slovenija. The status also bothered the opposition Democrats (SDS), whose MP Aleksander Zorn said a constitutional review would be necessary.
Simona Dimic and the Prime Minister
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UNDER THE PRESS Croatia
EU membership
The Final Hurdle Removed
FM Promotes Serbia’s EU bid
Slovenia and Croatia appear to have removed the last major open issue, which has been weighing on bilateral issues for 20 years and blocking Croatia’s EU entry, as Croatia it was willing to discuss the issue of Croatian savers of Slovenia’s LB bank under the auspices of the Bank for International Settlements in Basel. Return to negotiations is a long-held Slovenian position in the dispute, whereas Croatia had insisted it was a bilateral issue since it concerns the commercial relationship between a bank and its savers. As a result, the Slovenia government gave the official approval for the closure of the chapter on the free movement of capital in Croatia’s EU membership talks. Rudi Gabrovec, Slovenia’s high representative for succession, labelled it “a big step forward”, but he was quick to point out that the talks could be a lengthy process.
Foreign Minister Samuel Žbogar said he expected EU foreign ministers to agree to forward Serbia’s bid for EU membership to the European Commission. “Now is the right time for this,” he said after meeting Serbian counterpart Vuk Jeremić in Ljubljana. Reiterating Slovenian support for Serbia’s efforts to join the EU, Žbogar said that the EU and Serbia had been working well together on preparing a resolution on Kosovo in the UN General Assembly and that it would therefore make sense that the Union took a small step to promote Serbia’s bid to join the EU. Meanwhile, the National Assembly unanimously ratified Serbia’s Stabilisation and Accession Agreement (SAA) with the EU, which Jeremić hailed as a big day for Serbian-Slovenian relations. The President of the EU Council, Herman Van Rompuy, met Prime Minister Borut Pahor the same day as he made a brief stopover in Ljubljana on return from his tour of the Western Balkans.
Parliament
The Band of Three
Parliament
Independent deputies Andrej Magajna, Vili Rezman and Franc Znidaršič, who all left their coalition deputy groups in the past year, have decided to come together in their own deputy group. Rezman and Znidaršič left the coalition Pensioners’ Party (DeSUS) deputy group in December 2009. Magajna was not a member of SD, but that of the affiliated non-parliamentary Christian Socialists (KSS). He left the deputy group over his opposition to the bill on public broadcaster RTV Slovenija. A deputy group can be established by at least three deputies, who file the request to the speaker.
The Not Immune The National Assembly voted against immunity for senior opposition Democrats (SDS) president Janez Janša who has been charged with bribery in relation to the defence deal with Finnish contractor Patria. He did not request immunity, but the Ljubljana District Court had to obtain the permission of the National Assembly before proceedings could continue. MPs moreover denied immunity to SDS deputy Branko Marinič, who has been charged with committing fraud during his university studies.
Communication infrastructure
2/3 On Line According to the recent Eurobarometer, 65% percent of Slovenian households have internet access. The figure ranks Slovenia just a notch above the European average of 64%. Over a half connections are broadband. The data also shows that 98% of households in the EU have access to a (mobile or fixed-line) telephone while Slovenia is listed with Sweden, Malta, Luxembourg, Netherlands, Cyprus and Denmark as a country where all households have telephone access. 18% have cut the cord and are mobile-only.
We do not have capitalism, but something what we anthropologists refer to as “the grapple economy”. Western capitalists always set their goals for the long term. They are smart enough to know it is more important to maintain the social peace than to directly bag 2,000 EUR in a day. Our guys aren’t that smart.” Anthropologist Vesna Vuk Godina in Pogledi about her belief in the rational character of capitalism
The rule of law is the essential element of a market economy. Without this element, all we have left is a mob-corporate system, where the winners are not the best ones, but those with best connections, and where profit is being made with unpunished illegal work. Not paying salaries and social contributions, the lack of payment discipline, privatization by the method of Baron von Munchausen, cartel deals, circumvention of consumers – all these are blatant symptoms of the failure of the rule of law. The dry numbers of international comparisons are merciless, too. For a Slovenian, it takes several times more to find justice in court than in comparable countries. The registration of property fifteen times more! Žiga Turk in Dnevnik on the problems in the Slovenian state
It’s good for us Slovenes to have the Bosnians. We can glue all our bad habits to them and then blame and despise them for that. If these socially invisible workers stopped working this moment, the Slovenian nationalists – with their narcissist wisdom, superior behaviour and their rhetoric – would float in the air for a second and then heavily crash down to the ground of reality. Writer Miha Mazzini in his column for the Siol.net website on stereotypes about working habits.
They must be very efficient men. FDI panel moderator Maja Dragović, responding to JAPTI director Igor Plestenjak’s remark that JAPTI has one representative in India, one in China and one in Russia.
A WORD FROM THE EDITOR
Big fishes in a small country
POLITICS
Local elections
By Jaka Terpinc
The local elections didn’t throw many surprises.
Mayors are our “people next door” – managers rather than politicians – and voters’ choice of representative more personal than ideological. The smell of fresh asphalt on local roads still seems to have more power than any laws or reforms. Ljubljana’s two-times landslide winner Zoran Janković is controversial in many aspects. The former Mercator chief executive, credited with creating the success story of Slovenia’s biggest retailer, teamed up with a shining group of experts and went on a construction spree all over the nation’s capital. After a series of not-particularly-active mayors, this seemed to be a welcome move. Indeed, in many instances he can argue that the projects have been planned for years and simply waiting for capital. The problem now, of course, is that these are harsh times for private-public partnerships and so hard questions are being asked about the debts caused by this building spree. Janković is regarded as a master of shaking hands and someone who can richly reward his personal friends and punish the sceptics. One of the latter is the newspaper Finance, who took on possible irregularities in the mayor’s private businesses, formally taken over by his two sons. Particularly suspicious were the land deals in which they cheaply purchased cultivation land, which all a sudden changed its status into pricy building land. Janković’s sons seem to have inherited his bad temper with the press as well as his business savvy, with one issuing ‘a death threat’ to a persistent journalist who had followed him well into the drunken night of the Mayor’s election victory celebration. Despite the incident being widely condemned – including by the Janković family – this was music to the ears of the right wing as well as to the press, which tends to sees the mayor as a collection of negative adjectives. The mayor has been described as Serbian by origin with Balkan manners, atheist, megalomaniac, fabulous, temperamental, nepotistic, partial, arrogant, and last but not least – the only one whose charisma can evenly confront the ‘heroism’ of the right wing leader Janez Janša. Meanwhile, the Prime Minister also came under the spotlight for an unpleasant affair. His right hand woman Simona Dimic apparently got her hands very dirty piling up her fortune: unusually favorable property loans from the troubled state-owned bank NLB; ghost constructors for her villa; miraculous profits from her partner’s business, which happens to provide travel arrangements for the government. Dimic has resigned, claiming this is due to unbearable media pressure and not because of guilt. With the police and anticorruption commission on the case, this affair turned out to be the sweetest of the media candies. Just like in other similar cases, the line of relevance is heavily blurred even with the so called-serious media. Instead of focusing on the crucial elements of legal aspects, they chose to dismantle Ms Dimic’s life piece by piece, digging into any detail about who she knows or is friendly with. The generally envious audience was being persuaded that it is a mortal sin for a high-ranking public official to carry a Louis Vuitton handbag or spend time on a yacht. And as always, questions keep popping up. Is it illegal for a politician to have a private business? Where is the line drawn? And how should it be drawn? Does dealing with someone you know personally or are related to necessary mean an offense? And, not irrelevant, is our disgust for these affairs driven by ideals or perhaps just because in this competitive society somebody made it and we didn’t? After all, in a country of two million everyone knows everyone. This is not a country for the claustrophobic.
Triumph of the Independent The main results of last month’s local elections might have seemed a little dull given that the mayors of Ljubjana, Maribor and Celje were all reelected. But there were interesting results thrown up across the country – not least the election of the first black mayor in Eastern Europe. By Martina Budal
T
wo years after a black politician made history in America, a black politician in Eastern Europe did the same. In the 2010 Slovenian local elections, Peter Bossman became mayor of Piran and, in so doing, became the first black mayor in Eastern Europe. It was a result which made headlines across Europe and the globe, and which led the local media to dub the doctor “Obama from Piran.” Independent candidates once again proved to be a powerful force in Slovenian local politics. The best known is Zoran Janković
who was elected for a second term in Ljubljana, winning with almost two thirds of votes in the first round. As ever, incumbents fared well with Maribor mayor Franc Kangler also reelected, and Bojan Šrot of Celje winning his fourth term with more than two thirds of the votes. In Koper Boris Popovic remained mayor but not because of votes – local elections did not take place in the coastal town due to ongoing arguments over appropriate municipalities. In referendums, residents of Trebnje and Koper opted to create two new municipalities,
editor@sloveniatimes.com
Zoran Janković - the first Slovenian mayor, again without a serious competition.
POLITICS Altogether 926 candidates ran for 208 mayoral positions. Although 109 of the candidates were women, only 10 secured posts. The oldest candidate, meanwhile, was victorious. Janez Novak (73) won another term in Loški Potok. Some 26 mayoral candidates were running for office for the fifth time with 18 succeeding in the first round. Two were defeated and six went for a second round. 29 members of parliament stood for mayoral posts with 16 were successful in the first round. Of the eight that went to a second round only one was successful and one is waiting for results of the draw.
Photo: BOBO
More than 26,000 people ran for 3,380 seats in city and municipality councils. It was a similar story in terms of gender: more than one third of candidates were women but they form only about a quarter of elected council members. International media sensation: Piran’s newly elected mayor Peter Bossman a.k.a the only black mayor in Easten Europe
In Mirna Peč the final decision is also out of voters´ hands and will be left to fortune. As both candidates, Zvone Lah and Leopold Pungečar got the same number of votes, the election will be most likely decided by a draw.
alyst Vlado Miheljak said, as not even one urban mayor comes from this party. On the other hand SLS with no importance at national
Annual Presidents’ Forum 2010 at IEDC
A matter of interpretation
Since voters at local elections vote for people and not parties, the success of independent candidates was expected. As far as the success of parties in the race for mayor seats goes, the winner was The People’s Party (SLS) with 41 elected mayors, followed by the Slovenian Democratic Party (SDS) with 32 mayors. The Social Democrats (SD) were third with 20 mayors, the Liberal Democrats (LDS) have 13, Christian’s People Party (NSi) eight and Democratic Party of Pensioners of Slovenia (DeSUS) three. Similarly, most municipality council seats were secured by independent lists (21.95 percent). They were followed by the SDS with 18.71 percent of votes, the state-ruling Social Democrats with 12.07 percent of votes, DeSUS was fourth with 9.41 percent, closely followed by the Slovenian People’s Party (SLS) (9.31 percent), LDS (7.39 percent), NSi and Zares. The outcome showed once again that Slovenia’s left/right wing division strongly coincides with its urban/rural division. Even though the SDS was the winner among parties, the elections showed it has no influence in big towns, an-
level still has big impact at local level. The local elections have once again given experts plenty of interesting results to pore over.
IEDC- Bled School of Management
16 November 2010 Business as Unusual:
A Competiveness Outlook for 2011 and Beyond On the occasion of Annual Presidents’ Forum 2010 company presidents and corporate leaders will meet in Bled in order 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, 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. 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.
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Photo: BOBO
Ankaran in Koper and Mirna in Trebnje. But the National Council vetoed the law and Parliament after that voted against creation of two new municipalities. The matter is now in the hands of Constitutional Court and in these two municipalities both mayors and members of council keep their mandate until the issue is resolved. A public hearing is due in November.
November 2010
POLITICS
Public sector strike
A Striking Trend September’s nine day public sector strike caused losses of millions of Euros. It ended with an agreement around public sector pay rises in Slovenia – and disapproval from both the public and from economists. By Martina Budal go on strike,” says Dušan Miščevič, head negotiator for the unions. Kamnar says the agreement does not have any financial consequences and that the pay rise will not happen. Miščevič says the pay rise will happen but that it will be delayed until GDP reaches 2.5 percent annual growth.
Policemen also joined the strike
Every rise could give a signal to demand higher salaries and that could lead to costs spiralling and that would trim our competitiveness. This is not something we should play with. The Slovenia Times
U
Photo: Maja Kaplan
Not widely supported
ltimately, everyone stood firm and it lead to the inevitable – a strike in the Slovenian public sector. It started on 27 September and lasted for painful nine days. It was then suspended for a week. And then, finally, an agreement was reached between the public sector workers who want a significant pay rise that was promised by the previous government and prior to the financial crisis and the government officials who say such an increase is impossible in the current economic climate. Helena Kamnar, general secretary of the government and the head of negotiations, argues the agreement reached represents a success for both sides. It is essentially an agreement to talk – about the system of promotions in the public sector, and later about other issues such as salary anomalies and bonuses. “Lack of will for dialogue was one of main reasons we decided to
The strike and its outcome has left Slovenians divided. Many saw no reason for it – not least economists. “Unions had no reason to go on strike, especially in this economic situation,” argues Dr Igor Masten. “They are not confronted with pay cuts or layoffs like the private sector is.” And Masten fears the precedent that has been set: “[If the government meets the unions’ demands] this would be a signal to the whole country on how the government is controlling the situation. Every rise could give a signal to demand higher salaries and that could lead to costs spiralling and that would trim our competitiveness. This is not something we should play with.”
16 hour waits
Undoubtedly, the strike had severe consequences. Police officers, customs officers, veterinarians, tax administration and some public health and social care employees downed tools. The situation was worst at border cross-
ings with Croatia, where cars and trucks waited up to 16 hours. The Slovenian Chamber of Commerce estimates the cost of the strike at between EUR 100,000 and millions of Euros. And the strike frenzy seemed to spread to other sectors. In the middle of the public sector strike workers in the energy sector announced a four day stoppage, demanding a freeze on the reorganisation of five electricity companies and the replacement of the director of Directorate for Energy Janez Kopač. The strike, which could have resulted in blackouts, was called off the day before it was due to begin. Similarly, a threatened strike by dental care assistants was called off at the last minute.
Not alone
Perhaps the only consolation is that Slovenia is far from alone in having to deal with disgruntled workers. A general strike hit Spain just before the end of September; Greeks are on strike again, opposing government’s saving plans; teachers went on strike in Bucharest; and Serbian police officers have also walked out. The London Underground ground to a halt twice in one month – and there are threats of two more strikes – and France is paralysed for the fourth time in five weeks as people protest against the increase in the retirement age. Slovenia may be grappling with striking workers, but so too is just about every other country in Europe.
The strike by customs officers caused 16-hour delays on border crossings
Politics
Youth and independence
Fly, Birdie, Fly The recently published results of the Eurostat study reveal that Slovenia ranks second in the percentage of young adults still living at home, but is the unfavourable economic and real-estate situation the only reason why so many birds find it hard to leave the home nest? By David Aleksander
Being young, being dispensable
The young were the social group that was most severely hit by recession. The labour market during and following the recession exponentially closed its doors to the young, parcelling out nothing but unsteady forms of employment, or no work at all, causing unemployment among the young to skyrocket in the past two years. Slovenia holds another infamous record; the country is plagued with EU-highest percentage of
Photo: BOBO
T
i m e s h ave d r a s t i c a l ly changed and getting an apartment and permanent employment is no longer a walk in the park. Current trends see young Slovene adults prolong their state of youth well into their 20s or even early 30s, but does the fault lie exclusively in a rather lethargic attitude of the country’s young, who more than independence seem to value the luxury of cheap home living, or do the reasons for their procrastination have more to do with a grim economic situation and sinfully expensive real estate? A recent Eurostat study revealed that among EU countries Slovenia ranks second in both male and female categories in the percentage of young adults who in 2008 still lived at home – 38% of women and 60% of men between 25 and 34 lived at least with one parent, while in the age group 18-24 Slovenia was tied with Malta for the first place. While there were some who were quick in pegging Eurostat results to several-year-long pampering of Slovenia’s youth – the courtesy of overprotective, bubble wrapping parents – labelling everyone aged 25-34 who still has not flown from the home nest as a “momma’s boy and daddy’s girl wilfully checking into Hotel Momma and unscrupulously withdrawing from the Bank of Dad” is probably taking it too far. Though there certainly are some who fit the above description perfectly, the youth of today are unequivocally faced with inauspicious legacy left by the wake of the recent recession.
Students protesting against mini-jobs reform: Fighting for the status quo?
young between 15 and 24 holding temporary employment, as well as having one of the lowest rates of transition from temporary to permanent employment. This gave the employers a convenient excuse for lading business risk onto the shoulders of the young, refusing to offer them permanent employment amidst an endless pursuit of increased productivity and lower costs of labour; the young were taxed with the burden of insecurity on global markets and told to suck it up, or else. It seems that despite having available 21st-century technology, the young of today are getting throwback 19thcentury labour treatment, whose motto “work more, expect less” leaves many reeling on the brink of desperation.
Who can afford a castle?
That the price of real estate in Slovenia is heavily inflated in favour of the elite few and to the disadvantage of many, particularly the young, who in the wake of ultracapitalism unknown to previous generations face economic segregation causing enormous divide between the haves and the have-nots, or those who can afford to provide formal education and a place to live to their offspring and those who simply cannot, is nothing new. The high real-estate prices and the agelong fossilised belief that the credit system tied to an almost religiously upheld ownership-or-else mentality is the only way to go have most likely rendered the Slovene perception of the housing market more rigid than it should be.
Add to the mix of the abovestated reasons also the mantra tirelessly reiterated by many of our country’s young, saying “Why should I have to pay for something if I can get it for free at home?” and you get a pretty good picture of what modern society looks like to the up-and-coming generation that one day hopes to take over the baton; truth be told, when the baton gets passed, the wind in the sails of young guns and future mothers may have been lost somewhere above the ocean of insecurity and lost opportunities. Hopefully the results of the recently published study will encourage at least some to take that first daunting flight out of the home nest and sever the ties of emotionally dependent co-existence. November 2010
10
Economy
FACTS AND FIGURES
source: STA, Slovenian Press Agency
Govt Adopts Intervention Bill The government has passed an intervention bill freezing pensions, social transfers and salaries in the public sector in 2011 and 2012. Prime Minister Borut Pahor says the freeze will save the state EUR 720m in public sector pay expenses in 2012 and is crucial to Slovenia’s economic wellbeing: “We need a temporary freeze of pensions, public servants’ salaries and social transfers now in order to strengthen economic growth”, he said. Pahor has promised that those at the lower end of the salary scale will be taken care of: “The government will make sure with special measures that those with the lowest wages and pensions will be able to live decently. We will keep an eye on those with low income or low pensions so that the state will help out. But to get this money from real income, we must boost competitiveness.” The bill temporarily freezes certain national budget expenditure, expenses of municipal budgets, the expenses of the Pension and Disability
Prime Minister Borut Pahor says the public sector pay freeze will save the state EUR 720m
Insurance Institute (ZPIZ) and the Health Insurance Institute (ZZZS). The government points out that several acts that expanded rights, like the one introducing subsidies for kindergarten fees, were adopted before the onset of the crisis
and are no longer realistic. The bill was passed in the midst of a strike in the public sector, with workers protesting against the government’s refusal to honour a pay increase. The increase was, similarly, agreed before the financial downturn. The strike came to an end after the government and unions agreed to talk further about the system of promotions in the public sector and about salary anomalies and bonuses. The intervention bill had to be urgently passed – before the agreement to end the strike was made – because all documents needed for the implementation of budgets had to be forwarded to the National Assembly by 1 October. Amendments can be adopted following the agreement with trade unions. Pahor emphasises that the intervention bill is a temporary document that is to be in force between 2011 and 2012. He also says that if inflation tops two percent in 2012 amendments to it will be made.
Finance
Real estate
Manufacturing
Support to Scrap Energy Excise Hike
Banks to Refund Illegal ATM Fees
SCT Boss the Best Paid Exec in 2009
Mura Auctions Fail
Eectricity prices, without taxes, for medium sized industries (Euro per kWh) charges as to final user 0,10
Source: Eurostat
Energy tax
0,08 2008
2009
2010
The National Assembly has passed amendments preventing a rise in excise on electricity and gas that had been due to start on 1 November. Finance Ministry State Secretary Mateja Vraničar says this was a compromise solution with businesses, who had complained about the rise. She added it was a stop-gap measure and the government would monitor the situation and propose changes if necessary.
The Slovenia Times
The Central Bank is being urged to take action against four Slovenian banks found to have fixed the fee for withdrawals from other banks’ automated teller machines (ATMs). A petition was presented to the Central Bank suggesting that NLB, NKBM, Abanka Vipa and Banka Celje should be punished for their decision to introduce the same fee (22 cents) on the same day (20 February 2006). A year later, the Competition Protection Office established the move was tantamount to a cartel agreement and as such illegal and null and void. NLB, Abanka Vipa and Banka Celje have already announced they will refund the illegal fee, while NKBM, Slovenia’s second biggest bank, has filed a petition for a revision of the Supreme Court’s ruling that upheld the decision of the anti-trust office.
The manager of a construction company was the best paid manager in Slovenia in 2009 according to a new executive pay list. Ivan Zidar, head of SCT, was paid EUR 793,743 gross last year, or EUR 2,170 per day. Zidar, who is also the biggest owner of the privatelyheld builder, earned significantly more the second placed manager – head of drug company Krka, Jože Colarič. Colarič took home EUR 632,000 and there more Krka board members are in the top 15. Bojan Petan, who heads publisher DZS, and spa operator Terme Čatež, came in joint third with EUR 613,610. The best paid managers received EUR 218,000 on average last year, while the top 100 pocketed a combined EUR 28m. The list was prepared by daily newspaper Dnevnik.
Five auctions involving almost EUR 32m worth of assets from the bankrupt apparel giant Mura have failed. The auctions attracted only one bidder, who made an offer for two small plots of land. The assets will now be grouped for sale. Five or six groups have already been prepared, including a 100 percent share in Mura in partnerji, the firm’s only surviving subsidiary. It is to be offered at approximately EUR 8.5m, pending approval of Mura’s mortgagees. The receiver also needs to decide to go either for the liquidation value, the market value or for collecting non-binding bids. The market value of Mura’s assets is estimated at EUR 52.6m, while creditors have registered claims worth EUR 58m and claims of EUR 42.7m have been recognised.
11 Real estate
Managerial income
Publishing media
Healthcare
Property Tax to Be Postponed
Supervisory Board of Pošta Slovenije Dismissed
Delo to Be Put up for Sale
Krka Receives Golden Gazelle 2010
Mistakes in Slovenia’s first real estate census mean that a new property tax will likely not now be introduced until 2012 the country’s Finance Minister has announced. Franc Križanič said that changes that will have to be made in the property register after property owners reported a number of mistakes in the census results. Households received an appraisal of their properties last month, with the appraisals to form the basis of the new tax. A public outcry ensued as a lot of data, especially on ownership, turned out to be wrong. The new tax had originally been planned for 2011.
The government has dismissed the supervisory board of state-owned postal services provider Pošta Slovenije. Economy Minister Darja Radić says the supervisors no longer enjoyed the trust of the owners – the state. The management’s high salaries, which violated the act regulating managerial pay in stateowned companies, were said to be the main reason for the supervisory board overhaul. The move comes despite Pošta Slovenije having acquired a legal opinion regarding the high managerial pay that says the company did not break the law. Currently, the Economy Ministry is going over 200 employment contracts in state-owned or partly stateowned companies.
The newspaper published Delo is to be put up for sale. Dušan Zorko – head of the paper’s current owners, beverage group Pivovarna Laško – announced the decision last month. It had been expected for some time and came just two weeks after the supervisory board of Laško ordered management to sell non-core businesses. In the short term the group must reprogramme EUR 300m of its EUR 450m debt but loans are not yet nearing maturity. Laško and its subsidiaries Radenska and Firma Del own 100 percent of Delo stock. The company was in effect forced into the sale by banks, which have been pushing it to pay down its huge debt burden.
Finance
Energy
NKBM to Acquire Majority Stake in Insurer
Petrol Prices up Inflation Despite Lower Excise Govt Think-Tank Cuts Petrol prices increased in Slovenia last month despite the governInflation Forecast
Budget
Slovenia Ranks 11th in Budget Transparency Slovenia ranks eleventh in the world when it comes to budget transparency, an independent survey suggests. The Open Budget Survey 2010 reviewed 94 countries, looking at budget transparency and accountability, and awarded Slovenia 70 out of 100 points. The survey was compiled by an organisation called International Budget Partnership. Faring the best were South Africa, New Zealand, the UK, France, Norway, Sweden and the US, while the worst performers include China, Saudi Arabia, Equatorial Guinea, Senegal, and Iraq.
A government think-tank has cut its inflation forecast for this year by a full percentage point to 1.8 percent. The Institute of Macroeconomic Analysis and Development (IMAD) cited the government’s decision not to raise electricity excise and a new methodology for calculating school meals in the consumer price index as the reasons for the change. Although these two developments are one-off events, IMAD director Boštjan Vasle believes they will have a long-lasting impact on consumer prices in Slovenia. He says lower inflation will affect the competitiveness of the Slovenian economy, which has been improving but much slower than economies elsewhere in the eurozone. Inflation rate (%)
Source: Eurostat
ment’s decision to lower excise duties. Regular was 1.7 cents more expensive at EUR 1.228 a litre, while the price of premium increased by 1.3 cents to EUR 1.256 a litre. The price of diesel fuel was set half a cent higher at EUR 1.18 a litre and heating oil at EUR 0.753, which is 0.4 cent more.
6 5 4 3 2 1 0 2008
2009
2010*
*expected
Slovenia’s insurance regulator has approved plans for Slovenia’s second largest bank to increase its stake in Zavarovalnica Maribor. The Agency for Insurance Supervision has confirmed it has cleared NKBM, which holds a 49 percent stake in Zavarovalnica Maribor, to acquire a majority stake in the insurer. NKBM has been in talks for some time with reinsurer Sava Re, which owns 46 percent of Zavarovalnica Maribor. Business daily Finance says an agreement on the sale has not been reached due to disagreements over price. NKBM is said to have capped its bid for Sava Re’s stake at EUR 45m, which has not satisfied Sava Re.
Drug maker Krka has received the 2010 award for the fastest growing company in Slovenia. The Novo Mesto-based firm was awarded the Golden Gazelle last month, in a ceremony organised by publisher Dnevnik. The judging panel said that Krka was the third biggest exporter in Slovenia and had posted the biggest profit among Slovenian companies (EUR 171m), contributing the highest share of taxes to the budget. The Silver Gazelle, meanwhile, was awarded to car parts maker KLS with the Bronze Gazelle going to elevator producer SEC. The ceremony also featured regional winners. Information and communication technology company Avtenta. si won the Gazelle for central Slovenia, plastic products maker Roto Pavlinjek took home the prize for Pomurje and Podravje, and boat maker Seaway Group for Gorenjsko. According to Dnevnik, the 600 fastest growing companies in Slovenia created 10,447 new jobs between 2004 and 2009.
Finance
Abanka Stake up for Sale A public call for bids on a 39 percent stake in Slovenia’s thirdlargest bank is being prepared according to business daily Finance. The paper cites sources close to the matter in saying that shares in Abanka are being put up for sale by the Sava conglomerate (owner of 23.8 percent) and gaming company Hit (6.5 percent) as well as financial firms Vipa Holding (3.7 percent), Diamond (3.6 percent) and Zvon Ena (2.4 percent). The members of the consortium have reportedly signed a shareholder agreement in which they have set the sale price at EUR 76 per share, which would value the entire stake at around EUR 213m. The news is yet to be confirmed by the companies involved. November 2010
12 ECONOMY
Interview: Melita Gabrič
Much to Show in R&D Melita Gabrič, Consul General of Slovenia in New York, speaks about the effect of the recently held Investing in Green Forum, which was organised with the purpose of identifying potential business partnerships between US and Slovenian companies. By Alenka Slavinec
T
he Investing in Green forum was held in New York as a joint a project by Slovenian enterprises represented by the Slovenian Chamber of Commerce, the Consulate and the Manhattan Chamber of Commerce, known for its green initiatives. On the sidelines, the Slovenian Tourist Board prepared a round table on sustainable tourism entitled “Slovenia Green” ; it also organized receptions to promote Slovenian cuisine and wine. What is the idea behind the Investing in Green forum? The main idea is that to present Slovenia in New York as an ecologically minded country that has put that mind-set into practice by developing some truly cuttingedge technologies. Slovenia is not very well known in the States, and we thought it would be a good idea to create an event in which its green technologies could be presented. There is a great emphasis on such technologies in the US, which offers a good vantage point for enhancing Slovenian-American business cooperation. Given the very small presence of Slovenian businesses in this part of the world, we wanted to create a platform for Slovenian companies to come to New York and present themselves. The Forum is a part of the Slovenian Foreign Ministry’s green policy agenda, and its
activities to promote economic diplomacy. What can American companies expect from Slovenian companies in terms of partnership, investment and exchange of knowhow? Slovenia has some incredibly innovative and creative enterprises that are at the vanguard of R&D in alternative energy, ecological construction, green engineering, and so forth. Slovenian-produced solar panels are among the most efficient in the world, for example, and there are great innovations and new designs in ecological buildings, LED technologies, as well as small start-ups producing innovations in engineering, the automotive industry, and other fields. So Slovenia has a lot to offer in terms of R&D. The American companies that were present at the Investing in Green forum were indeed interested in these technologies, and some also expressed concrete interest in investing in them. When it comes to linking businesses overseas, what is the role of the Slovenian Consulate in NYC? The Slovenian Consulate in New York will continue to organize events intended to create an entry point for Slovenian businesses. Our experience with Investing in Green is that adding a strategic as-
High representatives of both countries meeting at the Forum. The Slovenia Times
pect to a business forum, as well as focusing it on one segment, is conducive to attracting interest on the American side. As a result, we are already thinking about our next event, which will be focused on sustainable tourism. So, we see our role as facilitators who make the first contact between businesses and investors possible. How did the US participants feel about the conference? The reaction from the American participants was very positive. We had around 160 American businesses and investors present, and many of them, of course, met with the Slovenian companies that came to New York. We also had a number of journalists from leading international media at the conference, such as Forbes, Fortune and The Economist magazines; all of them took active roles. The Associated Press also reported very favourably on the event, bringing welcome exposure and attention to some leading Slovenian green-tech companies. As a result, we had very good coverage in numerous international media, including Business Week, Bloomberg, The Boston Globe, Forbes, MSNBC, Washington Examiner, Daily Finance, MSN Money Central, San Francisco Examiner and others. We were very glad to have had such media coverage, since –of course – whatever we do, promoting Slovenia is our underlying goal.
Can we expect another such conference in time? When we started developing the idea of a business forum in New York, we heard opinions in Slovenia that Slovenian companies were simply not interested in the US market. I’m very glad to say that this has been decisively refuted. Nearly 20 Slovenian companies turned up at Investing in Green, which is really an excellent number, one that assured us that there is both great potential and great interest in reaching out to the North American market. The success of our first conference has encouraged us to plan more business activities. Thus, as I mentioned, we are going to organize a conference on sustainable tourism next year. We are also in the process of establishing an advisory board of eminent American businesspeople who will support a long-term, sustainable Slovenian presence in the New York business community. Can joint cultural events create a meeting point for business people? Culture is certainly a very important way of promoting a country. New York is one of the most important global cultural centres, and it attracts many artists, including from Slovenia. I certainly see great potential for future synergies between Slovenian businesses and Slovenian culture in New York.
ECONOMY 13
Energy industry
Electric Blues For a brief moment, it seemed as though the issue of electricity in Slovenia might be about to drop off the front pages and the news programmes. But just as the anger around cartel pricing by five electricity companies was starting to die down, a new controversy has surfaced – and it goes right to the very heart of Slovenia’s power supply. By Martina Budal
L
ooking at the relationships between Slovenia’s stateowned electricity companies sometimes feels like looking at the relationships in a particularly complicated step family. On one side of the family sits GEN Energija, the company which manages the nuclear power plant in Krško. Founded in 2006, the firm was created to allow for the privatisation of the other side of the family – HSE, the company which manages hydro power plants based on the Drava, Sava, and Soca rivers and coal-fired power plants in Brestanica, Šoštanj, and Velenje. The decision to separate the two businesses seemed to make sense at the time. Given that the nuclear power plant in Krško is owned by both Slovenia and Croatia, it could not be involved in privatisation plans. Separate it off, though, and HSE could be privatised and competition created. The problem? Four years down the line and those grand privatisation plans have still not come to fruition. HSE and GEN Energija are both still one hundred percent state owned. According to Economy Minister Darja Radić, there is therefore no longer any reason for the two companies to operate independently. She and her colleagues have issued plans to merge the two operations, reuniting the two sides of this complicated family.
Fundamentally different: GEN Energija is building the power plant in Krško and HSE is dedicated to the controversial thermal power plant in Šoštanj
One for, one against
From the Ministry’s perspective there are many reasons for such a move. Radić argues that joining the two firms together would lead to a far more competitive presence in the regional electricity market. At present both companies are too small to be important regional players. Slovenian customers, meanwhile, would benefit from lower production costs and higher supply reliability thanks to optimised production and the company’s greater investment potential. HSE has declared itself happy with the plans. GEN Energija has not. Robert Golob – the Director
of Gen I, the partly-private firm which sells electricity from the Krško plant – argues the proposal will have exactly the opposite of the desired effect. “Joining both energy pillars would mean less competitive conditions for Slovenian citizens that would result in higher electricity prices,” he argues.
Too late
Golob also believes that the companies are too deeply engaged in competitive activities to be reunited. He points out that the two firms have fundamentally different views on how to meet Slovenia’s electricity needs – with GEN Energija building the power plant in Krško and HSE dedicated to the controversial thermal power plant in Šoštanj. The thermal plant is a project that many at GEN regard as questionable, risky and extremely expensive. Radić and her government colleagues, meanwhile, point out that NPP Krško has the lowest electricity production costs in Slovenia – and that some of the profit made goes into the privately operated part of Gen I.
Troubles with distribution Less competition: Robert Golob, director of Gen I says that joining two energy pillars will result in higher electricity prices
Matters are no less simple when it comes to reorganising the distribution of electricity in Slov-
enia. Historically five companies in Slovenia managed the distribution infrastructure and were responsible for selling electricity to households. But to comply with European Union legislation that had to change – companies could not be responsible both for managing infrastructure and for selling power. Wit h t he establish ment of SODO, a new distribution system operator, it was thought that the issue had been solved. It seems it wasn’t: an investigation by the Court of Audit has unveiled irregularities and revealed that SODO has been overpaying the five electricity companies. The results, again, is that public money has gone into private hands. The Directorate for Energy is therefore proposing separating distribution infrastructure management from trading. It is a proposal that has been met with opposition by union members and so one which, just as with the GEN Energija and HSE plan, remains mired in controversy. The National Energy Programme, soon to be issued by the Ministry of the Economy, should make clear which plans the government wants to pursue when it comes to electricity in Slovenia. Judging from the current controversies, anyone who thinks the Programme will have a smooth journey is probably set for an electric shock. November 2010
14 ECONOMY
Technology
ICT Boosting the Public Sector Can e-governance and e-government bring about a renaissance in the public sector? That was the question posted at a three day conference held last month in Portorož. The event was organised by the Centre for eGovernance Development (CeGD) in conjunction with Microsoft, and highlighted a series of promising public sector developments centred on modern ICT solutions. By Miran Varga
Exchanging ideas: Blaž Golob, director of CeGD
T
across Europe. The challenges are not limited to Europe only: global trends of information society development show similar signs from the perspective of policy design, legal regulations and ICT solutions. There is no doubt that ICT solutions can improve governance. The key to success, however, is providing citizens with the best and least stressful user experience. Various e-government solutions have already been implemented
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he three-day event “Renaissance for eGovernance” event united government representatives from 14 countries across South East Europe. All were policymakers and decision makers; all focused on finding ways in which technology can transform the public sector in citizen services, education and healthcare. Many now feel it time for intellect ual t ra n sfor mat ion on how public sectors serve nations
Niels Soelberg from Microsoft who coorganised the conference
in different countries across South Eastern Europe – the goal now is to convince citizens to use them to a greater extent. Discussions as to how to meet this goal covered many separate areas: from practices, countries’ strategies and politics to technology itself. The event was also a chance to share best practice cases in the field of e-government and egovernance in the SEE region. “Future ICT technology can
certainly increase possibilities of development of the public sector,” argues Blaž Golob, Director of CeGD and initiator of the conference. “With knowledge society development the world is becoming more and more complex. Governments, companies, civil society and individuals are facing many challenges. Proper development of information society could create value for citizens, companies and governments.”
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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 subfunds 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.
The Slovenia Times
ECONOMY 15
Short term caution, long term optimism…
What We Can Learn from the Financial Crisis There have been numerous debates recently around the recovery in global growth and whether there will be a so called ‘double dip’, meaning another phase of negative growth. We have argued in the past that growth forecasts, particularly for developed economies, seem overstretched.
R
ecently published data is mixed and does not clearly provide an answer to the question of what kind of economic environment is ahead. Nonetheless it is worth not i ng that our assumptions have been realised to a certain extent as growth slowed down significantly, especially in the US, whilst Europe and particularly Germany is currently performing much better. Retail investors are often confused how to behave in the environment we live in. Their investments and savings generally suffered during the last crisis and they are now watching and waiting to determine what they should do. It is imperative to always maintain a cool head. When saving for a long term financial goal there is no reason to panic in times of market turbulence, of course assuming the portfolio of investments is well structured and diversified. Trending markets are an investor’s friend as development is more predictable and investors
can easily find justification for their actions that usually calms them. However, it is difficult to stick to a plan when market movements negate our belief and constantly challenge us.
Lessons from the past
The chart below may help investors understand how markets behaved historically when emerging from a financial crisis. At KD we derived a so called ‘Financial Crisis Composite Index’ and compared its movement to the current crisis which commenced in 2008. The index is composed of the: 1987 Savings and Loan crisis in the US; 1994 Financial crisis in Mexico; 1997 Asian debt crisis and the 1998 Russian financial crisis. We deliberately looked only at financial crisis’ as it is a well observed fact that an economic and financial recovery following a financial crisis is much more agonizing and longer in duration than recovery following a “regular” re-
cession caused by non-financial factors. We determined the local stock market peak before each crisis began and combined it into a composite index we dubbed the Financial Crisis Composite Index. In the chart we rebased the crisis index to 2007 which marks the peak before the most recent financial crisis began and compared it to actual stock market movements in Developed (MSCI World Index), Emerging (MSCI Emerging Markets Index) and Regional* (STOXX Balkan ex Turkey & Greece Index) markets thereafter. The upper and lower bands represent plus and minus one standard deviation from the composite index and show variability. *Regional markets: Slovenia, Croatia, Romania, Serbia, Bulgaria and Macedonia
Opportunity for longterm investors
As can be seen, the composite index forecast the stabilization and initial rebound in developed
Source: Bloomberg, calculations by KD Skladi
Pattern of financial crisis - 10 years after the crisis
Luka Flere, M. Sc., CFA, Senior Portfolio Manager - Head of Research, KD Skladi
(black line) and emerging markets (blue line). The chart also shows that an initial rebound is followed by a phase of consolidation that lasts around 18 months and is then followed by a strong bull market lasting approximately 5 years. Currently developed and particularly emerging markets, trade on the upper band and a consolidation would not be a surprise. Regional markets have not rebounded as strongly as developed or emerging markets which can be explained by the relatively higher risk attributable to these markets. Risk aversion amongst market participants is still relatively high and regional markets are not yet in the investor spotlight. It can be expected that as economic recovery worries subside and risk appetite returns regional markets will outperform other markets. We do not claim that the past will repeat but the chart serves as an interesting insight. Most noticeable is that periodical and continuous saving is very appropriate in the consolidation period as investors build up positions at attractive levels and then participate in the recovery that will fuel a new cycle of long term growth in stock markets. It can therefore be advisable, or prudent, for investors to invest regularly to achieve realistically set financial goals. A saving plan through which continuous contributions reduce the market timing risk and allow for building exposure gradually so the investor benefits from cost averaging. This approach is appropriate throughout the market cycle and particularly in the initial phase of recovery. The views expressed in this article are those of the author and not necessarily those of the Slovenia Times
This report is provided for information purposes only and does not constitute financial or investment advice or form part of an offer, subscription, recommendation or solicitation to buy or sell any financial instrument, nor should it be relied on in connection with any contract or commitment. Returns are not guaranteed and past performance should not be relied upon for future performance as investment returns tend to fluctuate.
November 2010
16 ECONOMY
Golden Drum
Booming with Creativity The beginning of last month saw the 17th Golden Drum International Advertising Festival and Media Meeting. The four-day event with 1,000 participants was held in Portorož and offered the most important overview of the year’s advertising. The Golden Rose, the prestigious New European agency-of-the-year award went to DDB&CO from Turkey, presented by the president of Slovenia, Dr Danilo Türk. By Polona Cimerman
T
he Golden Drum is one of in five competitions and strive for the two largest European five awards. advertising festivals and one Slovenia’s rare successful and The brightest stars internationally acclaimed brands. The previously mentioned lauIt unites an enormous market reate DDB&CO also received two from Portorož to Vladivostok and Grand Prix awards, in press and from Helsinki to Tel Aviv and is outdoor ads. The Prix in TV group focused mainly to the so-called was awarded to the Change InteNew Europe, although it is also grated (Poland), while Shalmor well-recognized in the West. Avnon Amichay/Y&R Interactive The main theme of this year’s (Israel) won in the category of rafestival, which was opened by a dio ads. The best PR agency is the speech of one of the best creative Turkcell Iletisima (Turkey), the forces in the world, Sir John He- best independent agency in New garty, was “Reconstruction”. Al- Europe and best agency in the most 2,000 entries from 41 coun- Baltic region is Change Integrattries competed for awards, the ed (Poland) and the best agency in most coming from Russia (255), the Adriatic region is Leo Burnett Poland, Romania and Slovenia Beograd (Serbia). (132 entries). The 34 members Besides the competitive part, of seven juries (all prominent in there was a rich accompanying their field) rated the entries. Com- programme with highly regardpetition was held in nine groups ed speakers from international (including film, radio, design and advertising agencies. They spoke the most extensive press) and 61 about the future of advertising, categories, in which the stand- changes, new consumer trends ard silver, golden and grand prix and new views on marketing and awards were issued. For the first concluded that (despite the crisis) time, the organizers gave ten new advertising is entering its golden “Brand Grand Prix” awards in ten age. The festival also presented product and service categories, the “Davids”, successful Slovregardless of the medium used. enian companies who effectively Also new was the advertising pen- compete with larger firms in glotathlon one KAMNIK entryOGLAS could take TIMES partCETRTINKA bal markets. RAZGLEDI – PEROVO SLOVENIA postavitev.ai 1 28.10.2010 7:07:57
A silver drum in Press category: Snake by DDB&Co, Istanbul
Sir John Hegarty
The Golden Drum is famous for being the most hospitable festival of all; throughout it, soirees and musical performances were or-
ganized, where numerous friendly, professional and business connections were established. It ended with fireworks and a gala party.
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The Slovenia Times
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18 DIPLOMATIC SOCIETY
EMBASSY DIARIES Spanish embassy
Indian embassy
Canadian embassy
Awards of honour
Piece for peace
New ambassador
Mayor Matjaž Zanoškar unveiled a statue of Indian political and spiritual leader Mahatma Gandhi in Slovenj Gradec last month, saying that the city was committed to efforts to promote world peace. The statue is a gift from the Indian Embassy to Slovenia and is designed by Indian sculptor Ram V. Sutar.
Iranian embassy
Iran opens embassy in Slovenia State secretary at the Ministry of Foreign Affairs Dragoljuba Benčina and state secretary of the Government Office for Development and European Affairs Andreja Jerina have been awarded the medal of the Order of Isabella the Catholic. The two were recognised for their contribution to enhance friendly relations between Slovenia and Spain and excellent cooperation, especially during the recent Spanish EU Council Presidency. The ceremony took place in the Great Hall of the National Gallery after a piano recital given by Enrique Pérez de Guzmán and was part of celebrations for Spanish National Day.
The Islamic Republic of Iran has appointed its first residential ambassador to Slovenia. Mohammed Rahim Agheipur presented his credentials at the Foreign Ministry last month. The Iranian embassy will initially be housed at the Austria Trend Hotel in Ljubljana. Receiving the credentials of the new Iranian ambassador, head of the European affairs and political bilateral relations department at the Foreign Ministry Igor Senčar said that Iran’s decision represents an important step towards balancing diplomatic coverage and strengthening bilateral cooperation.
The Canadian embassy has a new ambassador. Tamara Guttman took up the post on the last day of September. She began working for the Canadian government in 1990 and served abroad in Budapest, Seoul and Copenhagen. A former governmental speechwriter who speaks a number of foreign languages, Guttman most recently served as Minister-Counsellor at the Canadian Embassy in Rome. Currently Guttman is ambassador to the Republic of Hungary, with concurrent accreditation to the Republic of Slovenia.
Czech embassy
British embassy
Dutch embassy
Money exhibition
Networking by design
Connecting nations
The Czech ambassador Petr Voznica has opened a unique exhibition of paper banknotes from AustroHungary. “Paper money 1759– 1918: The first common means of payment in Europe” is on show in the renovated Celje library. This distinctive exhibition is based on the catalogue of the Czech numismatist Vladimir Filip and shows reproductions of the paper banknotes that were used in Austro-Hungarian Monarchy in the selected time period, including the territories of today’s Slovenia and Czech Republic. Voznica was joined by library director Branko Goropovšek and the mayor of Celje Bojan Šrot for the opening. The Slovenia Times
Photo: Žiga Intihar
The British Embassy hosted a networking reception as part of last month’s Biennial of Industrial Design (BIO) in Ljubljana. The comparative international design exhibition has a history of more than forty years – designers, commissioners, manufacturers, and students from all over the world attend to present their latest achievements. This year six companies from the UK competed for the award.
The tenth annual Billateral Focus event, aimed at building bridges between Slovenia and the Netherlands, has been held. The two-week-long festival started with film projections from Dutch and Slovene students in Kinodvor. Saxophonist Dick de Graaf gave a performance at the jazz concert on the official opening at the Music conservatory in Ljubljana. The closing event traditionally hosts young talents, with the opportunity seized this year by Dutch string quartet Ragazze and Slovene dancer Petra Pekolj.
DIPLOMATIC SOCIETY 19 Spanish embassy
Norwegian embassy
American Chamber of Commerce
Food for thought
Books project
Power breakfast
The Spanish embassy has opened an exhibition at at the Id:doma shop in Ljubljana. Foodjects: Design & Nouvelle Cousine in Spain looks at the relationships established among chefs, designers and companies in Spain. A careful selection of more than one hundred objects helps portray the emotional and intellectual experience of new Spanish cuisine. The exhibition will last until 15 November.
The Norwegian embassy is celebrating the power of books with a project entitled “United Growing Books of the World”. The project began with an event in a park at Župančičeva jama in Ljubljana. The Ambassador Guro K. H. Vikor contributed by reading a passage from “A Doll’s House”, a classical play by a Norwegian playwright Henrik Ibsen. The project emphasises the role of a book as a symbol for general development of human beings. The reading was recorded and can be viewed as an interactive presentation at the park in Norwegian, Slovene and English language. As part of the project, a statue called “The Girl with the Growing Book” was also unveiled.
The ancient sound The Indian embassy organised a sell-out concert of south Indian classical music in the City Museum of Ljubljana last month. The main star of the concert was Indian virtuoso Chitravina N. Ravikiran, who performed Carnatic music that dates back nearly 3,000 years. Ravikiran was accompanied by Lasanthi Manaranjanie Kalinga Dona, who played the violin, and Carlos Yoder who played tabla. The concert was co-organised by The Slovenia Times and the Association of Indian Slovenian Friendship.
Hungarian embassy
Celebrating nationhood Hungarian Ambassador Dr István Szent-Iványi and his wife Dorottya Veress hosted a reception in Hotel Lev in Ljubljana to celebrate the National Day of the Republic of Hungary last month. The guests were diplomatic representatives in Slovenia, representatives of the Hungarian national community from Ljubljana and Prekmurje, figures from culture and science and governmental delegates. Among them was the Minister for Slovenians Abroad Boštjan Žekš who gave a short speech. Hungary’s National Day marks the country’s 1956 revolution.
US embassy
All that jazz October saw crowds across Slovenia treated to the sounds of the only Air Force jazz band stationed in Europe. “Check Six” held a series of concerts, entertaining audiences with the smooth Swing Era sounds of Jimmy and Tommy Dorsey, Count Basie, Duke Ellington, Benny Goodman, Dizzy Gillespie, Woody Herman, and Louis Armstrong.
Czech embassy
Egyptian embassy
Major festivities for Statehood Day
Strengthening ties
The Czechs celebrated their Statehood Day with many events and a rich cultural programme stretching over almost a week. The central event was a concert by excellent violinist Václav Hudečki which was met with great interest by the diplomats, politicians, economists and figures from culture who filled the large hall of the National Gallery. The festivities ended with the violinist’s wife – actor, screenwriter and writer Eva Hudečková – presenting her new book at the Slovene Writers’ Association.
Photo: Mateja Juric
Indian embassy
The American Chamber of Commerce organised another breakfast gathering at the end of September. Guests this time were Žiga Debeljak, the President of the Board at Mercator and Emil Tedeschi, President of the Board of Atlantic Grupa. The powerful guests drew a crowd of Slovenia’s leading business figures as well as the US Deputy Chief of Mission in Slovenia, Brad Freden.
The Embassy of Egypt and the Slovenian Agency for Entrepreneurship and Foreign Investments (JAPTI) organised a Slovenian-Egyptian business forum in late September. The forum, held at the headquarters of the Chamber of Commerce and Industry (GZS), was organised as part of a visit by a delegation of businessmen from Egypt. During the meeting the Egyptian ambassador Ahmed Farouk noted that, for the last five years, Egypt has been the foremost strategic business partner of Slovenia in the Middle East.
November 2010
20 DIPLOMATIC SOCIETY The Slovenian-German Chamber of Commerce
The first gala dance
German ambassador Werner Burkart with his wife, President of the Slovenian-German Chamber of Commerce and Industry Gertrud Rantzen and the CEO of odelo Slovenija Klaus Holeczek
Rudolf Klötscher, BSH Hišni aparati d.o.o.
The Slovenian-German Chamber of Commerce and Industry in co-operation with its companies has held its first formal ball. “Der Deutsche Ball” was attended by over 400 participants from more than 30 firms. The distinguished guests included the German ambassador to Slovenia Werner Burkart with his wife; Rudolf Kloetscher, chief executive of BSH Home Appliances; Christof Droste, managing director of Hella Saturnus; as well as President of the Slovenian-German Chamber of Commerce and Industry Gertrud Rantzen. The event was held in the prestigious Kempinski Palace Portorož Hotel and offered a blend of Slovene and German features through selected German specialities, Slovenian trio Eroika which gives concerts in Germany, and the German music group Gloria Sextett. They all created an unforgettable experience and ensured a full dance floor. The ball also organised a lottery and raised EUR 2,000. The money will be donated to the centre for rehabilitation, training and education of children in Vipava. Judging from the success of the first dance, the organisers believe that the event will become an annual event.
Crystal Hall in the Kempinski Palace Portorož Hotel
Eroika
Christof Droste, Hella Saturnus Slovenija d.o.o. and Jošt Rupnik, Ydria Motors d.o.o. Der Deutsche Ball Partners
Institutional Partner
Organiser
Premium Partner
German music group Gloria Sextett The Slovenia Times
Partners
ECONOMY 21
Vivo Catering
Corporate Events as a Key to Success Flourishing companies are well-aware of the fact that keeping fine relations with their business partners is an absolute must for ensuring the firm’s bright future. Their “secret ingredient” is the corporate events which need to be prepared with special care and attention. “Even in these changed times companies should not leave out this nurturing of good business relationships,” believes Jerneja Kamnikar, the director of Vivo Catering which is one of the most thriving firms in Slovenia, famed for its unique corporate events organization and catering. By Polona Cimerman you can also advise them. Good communication ensures satisfaction of both sides and allows space for inventiveness and originality; these are the competitive advantages and a trademark of Vivo,” says Kamnikar.
Creativity is crucial
T
here is piling evidence which prove that throwing a corporate event is of vital importance for companies and organizations. They help firms to improve and upgrade their business ties, consolidate visions and build and strengthen up the brand or promote its entire image. Therefore, they are part of company’s identity. “It is a common fact that relaxed socializing can help sorting out many seemingly insolvable problems and set a basis for new deals,” says Kamnikar.
Clear definitions
As a general rule for a good corporate event, the company needs to know what message it wants to mediate to the guests. This message then needs to be packed in something that will stick in mind. Kamnikar argues that “corporate events should fascinate and be an unforgettable experience. There are many factors involved in this, some of them definitely food and ambience.” Just like the general
message, the role of these must be clearly defined too. Food can sometimes be just an accompanying bonus, while on other occasions it is the main star of the event. In an event to remember all the components should be harmonious and this is what grants the success. “We are often hired to take care of everything, not just food preparation. We come up with an idea and make a true story, even a show out of it, which includes the writing of a scenario and then invention of culinary delights that go well with it,” states the catering expert. Catering can play an important role and make a difference if everything is balanced and in perfect harmony, including the tiniest details. One can achieve this with being familiar with the market situation and the clients. Most of all, they must know how to adapt the service to all these important factors. “The best is to have an established network of business partners so that
Repetition and sameness have no place at organising corporate events; they should be special and unique. At Vivo, they collaborate with an industrial designer, arranger and a decorator. Kamnikar says that Vivo “is the only catering in Slovenia which has a special creative force in the kitchen. We see ourselves as more than just food providers; we are part of a special type of art. Being innovative is something absolutely normal for us since the base of everything we do is being different and inventive.” This includes consideration of trends as well. At present, there is a general tendency to be ecological and locally oriented, alongside with more vegetables on plates. Also dishes are served in smaller quantities.
Wind of change
The times of big corporate events are currently on hold. The fast pace of life, impersonal relationships, lack of feeling and depth all changed the clientele and consequently also the situation of corporate events organization. Now everybody’s first concern is not originality and pompousness but simply saving money. “This means that people often compare prices of products from a shop with catering services which are worlds apart. This mindset negatively affects the service in a broader sense, including the image of Slovenia as a country,” establishes Kamnikar. Despite the altered situation, under no condition should firms neglect corporate events; this can sometimes have nearly devastating consequences. Companies should always put the maintaining of the relationships with their business partners first. Kamnikar asserts that “events do not have to be big and glamorous; they can be slightly transformed and more humble. Just do yourself a favour and make sure your company has them.”
November 2010
22
Foreign direct investment SPECIAL
Should I Stay or Should I Go? All too often Slovenia is portrayed as a no-go area for foreigners who are looking for good investments. The labour costs are too high, we are told, and the government doesn’t provide enough tax incentives. Then there’s the impossible bureaucracy. The reality, however, is that there are foreign companies in Slovenia – and many are flourishing. By Maja Dragović
FDI SPECIAL 23
It’s all in the workforce
Take Hella Saturnus. The maker of lights for automobiles is part of the Hella Group and has been flourishing in Slovenia. In 2009/10 its profit was an astounding 400 percent higher than had been forecast. In two years it has increased its workforce by a whopping 800 and is now looking to hire another 30 to 40 engineers. So what’s the secret? Christof Droste, the firm’s managing director, says it’s all about Slovenia’s quality workforce. He points out that companies investing in “cheaper” destinations like Slovakia and Romania are now having trouble finding the necessary workforce to extend their operations.
Against the odds
SKB Bank, owned by the French Société Générale Group, has also experienced the benefits of a quality workforce. But it has had different mountains to climb on its way to profitability. As Cvetka Selšek, SKB’s president of the board, points out: “All the banks in Slovenia are regional, and everybody knows where his or her account is going to be kept from the day he or she is born”. Some quip that a Slovenian is more likely to change a husband or a wife than a bank account. For banks entering the Slovenian market, there is the additional difficulty of having to compete against NLB – the state-owned bank is the largest in the country. But Selšek says it is possible. It may not have happened overnight but SKB is now meeting the profit expectations of its mother company. “We got good funding from Société Générale,” Selšek explains. “This was maybe one of our best advantages, because they immediately really supported us with the long term resources and were able to grant long term developments.”
Increased production
Another foreign company which has overcome obstacles is Revoz, a subsidiary of French car giant Renault. The automobile industry
Photo: Alenka Slavinec
was one of the hardest hit by the financial downturn and the firm was also affected by rises in the minimum wage and in electricity tax. Yet Revoz, which manufacturers the Twingo and Clio II cars, has weathered the storm. Throughout the crisis, and especially in 2009 and in 2010, the company increased its production and with it its workforce. The government also helped out with certain incentives, enabling the company to take on extra 150 workers. The result: Revoz is possibly the most efficient company within the Renault group. Production has also increased at BSH Home Appliances. Since becoming the owner of the former Gorenje MGA factory in Nazarje, the company – which is part of the Bosch and Siemens Home Appliances Group – has increased its production volume from 900,000 to more than six million small household appliances.
Change needed
Confronted with success stories like these, one starts to wonder why there is so much negativity around FDI in Slovenia. And then one considers a case like that of the Trigranit Group. The real estate company is behind the Emonika project, which would create a new bus and railway station for Slovenia’s capital Ljubljana as well as offices, shopping centres and residential areas. The firm has been faced with massive bureaucratic hurdles – and each time the project seems to be finalised another issue crops up. It is proof that the FDI naysayers do have a point: there are changes that need to be made if Slovenia is to attract more investment from overseas. The government is now trying
Support: Cvetka Selšek, president of the board at SKB bank, says that readily available funds from Société Générale is one of SKB’s best advantages
to make such changes. Public tenders for applications under the FDI cost-sharing grant scheme amounted to EUR 4.9m in 2010 and the planned amount for 2011 is EUR 8m. There are also regional incentives such as the aid programme in Pomurje which provides certain tax exemptions for investors. If such initiatives continue, more and more foreign companies should find that Slovenia is a place where they can flourish.
FDI Stock (in billion EUR)
Inward Outward
12
10
8
Source: Banka Slovenije
I
t is true that foreign businesses remain the exception rather than the rule in Slovenia. Only 4.7 percent of companies in the European nation have foreign direct investment (FDI), and FDI stock has gone down in recent years. Yet that conceals the fact there are 2,147 associated companies active in Slovenia and controlled by foreigners. It also hides the many success stories being created by such firms.
Companies investing in “cheaper” destinations like Slovakia and Romania are now having trouble finding the necessary workforce to extend their operations.
Revoz is possibly the most efficient company within the Renault group.
6
4
2
0 2008
2009
Since 1993 BSH Hišni aparati has increased its production volume from 900,000 to more than six million small household appliances. November 2010
24 FDI SPECIAL
FDI - a different approach
A New Recipe for Success In the past two years Slovenia has experienced the stagnation of development and ideas. The global economic crisis has certainly played a role in this, hitting the small, open economy of Slovenia with excessive force. But there are other forces at play – namely a slump following the completion of massive strategic projects including independence, accession to the European Union, and the adoption of the Euro. Add a professionalethical crisis of leadership and you’re left with a country which cannot begin a new development cycle and which is experiencing social consequences. What’s the solution? By Tilen Majnardi
S 1991 Slovenia gains independence
2004 Slovenia joins NATO
lovenia’s post-independence success story was based on the successful application of the West-European type of capitalist system. Its introduction was accompanied by the positive pressures of the European Union and saw Slovenia develop a unique, gradual system of transition to the market economy. The system was deemed a successful one because it enabled stable economic growth and social stability, and helped accession to the EU and the adoption of the Euro. The success now seems to be over. After having correctly implemented formal transition it seems Slovenia has not devel-
oped a new concept. The nation’s development is still based on exploitation of the industrial base from the 1970s and the 1980s – a base which has become worn out and which no longer provides adequately high added value to raise social prosperity and maintain social stability.
Gradual approach
An important part of the gradual approach was a conservative attitude to foreign capital, which gave Slovenia an image of a country unfavourable to foreign investment. In spite of this, some major acquisitions by foreign enterprises did take place. They were not,
however, part of a complete FDI strategy. Instead, they were merely the realisation of opportunities being presented at the time. It is also meaningful that foreign capital entered Slovenia via easy acquisitions of established and successful enterprises; enterprises which had been developed in the former system and which had already been tightly integrated into international markets in the former Yugoslavia. Other types of investments such as “greenfield” were, with a few exceptions, not seen in Slovenia. Favouring domestic ownership – frequently in the name of an unclear national interest, which led
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Consulting. Integration. Outsourcing.
Photo: Alenka Slavinec
2004 Slovenia joins EU 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
2007
By Zoran Lazukič, MSc, Profil d.o.o.
Slovenia adopts Euro
Regional Managers for Local Investments
2010 Slovenia becomes member of OECD
Tilen Majnardi
in some cases into business-ownership deviations threatening the existence of some big commercial organisations – is one big obstacle to FDI in Slovenia. But is not the only one. The unclear, bureaucratised legal system doesn’t help either, serving to only to discourage the majority of potential investors. Combined with the poorly functioning rule of law, it decreases the competitiveness of the entire economy.
Immediate changes required
So where now? What does Slovenia’s new recipe for success need to be? Well, it must start with an urgent reduction in civil service expenditure, corrections to the social system according to demographic trends, and the debureaucratization and streamlining of the legal system. In the following months and years it will also
be extremely important to more actively manage economic development through a clear industrial policy adapted to globalisation and modern technologies. Foreign investment may also be a part of structural modernisation, provided that the government is capable of creating a platform that will provide content, sector and geographical orientation. The foundations for this already exist to a certain extent – the government wants to have efficient management of state property by a centralised agency. In the case of Prekmurje, it has adopted a special development law meant to enhance the region’s competitiveness. And what is the biggest obstacle when it comes to realising this plan? The same flaw that has been embedded in the Slovenian political-economic system for so long: formal order and excellence combined with inoperability and inefficiency of the state management. It is a flaw which has partly affected the private sector too. And it is one which, if Slovenia is to flourish, must now be corrected.
Source: Ministry of Economy
Countries with largest number of FDIs in Slovenia in % 50
48 40
30
Our Group has been working successfully with international investors from the entire region of South East Europe for years and we are especially recognised for providing executive search services. With all the macro and micro economic analyses that you, as international investors, consider before making your final decision, we cannot neglect the fact that it is people –employees – who are of key importance to your planned success story. On principle, international companies decide between two different forms of management for their new companies abroad: 1.) through their own employees, i.e. non-residents 2.) or through local, native employees From the viewpoint of familiarity with the cultural and geographic environment, the level of utilising the work of an individual, and the remuneration system, we believe that Slovenia can become an advantageous pool for investments into such human resources. From both a historic and current viewpoint, the region of South East Europe is very close for executive staff in Slovenia. This is further substantiated by the investment activity of our companies, which see these markets as strategic opportunities. An awareness of how these markets operate, a knowledge of the language, the geographic vicinity, and a clear insight into the differences among them gives executives from Slovenia a substantial advantage in leading regionally managed companies. Furthermore, local environments in these markets are favourably disposed towards such personnel solutions, as the culture gap hindering mutual understanding is much smaller. Another point is that Slovenia was the most developed republic in the former Yugoslavia and is undoubtedly the closest to the Western world. As regards exploiting the expertise of executives, Slovenia is practically on a European level. In this way, there are fewer possibilities for misunderstanding the expectations of investors (international employers) on the one hand and employees on the other. This is especially important when it comes to the part relating to remuneration for the work conducted. International investors in the Balkans have quite a few problems with the local understanding of what a salary is – that it is not merely income for leaving work on time but above all and exclusively payment for achieving objectives. Finally, there are also the expectations of those international investors who wish to “save” invested money by employing local managers. Such expectations are completely wrong. In the long-run, such compensations do not turn out to be successful marriages on principle. I would like to point out that the differences in payment on the management level in the region are slowly diminishing. The higher up the hierarchy we go, the smaller the differences – or they are even non-existent. All this leads us to believe that Slovenia can be an advantageous investment pool for engaging staff for the entire region. This needs to be considered not only from the viewpoint of western investors but also as an opportunity on the part of local companies in South East Europe for a braver engagement of our personnel on local markets.
20
10
10
7
6
France
Netherlands
0 Austria
Switzerland
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November 2010
26 FDI SPECIAL
Interview: Peter Kraljič
Unfulfilled Potential Dr Peter Kraljič, Director Emeritus of international management consultancy firm McKinsey & Company, was one of the biggest names at last month’s FDI Summit in Bled. Few are better placed than Kraljič to comment on the state of foreign direct investment in Slovenia and his essential message is a simple one: there is more to do. By Maja Dragović and Seniha Muharemi-Vukas, photo Alenka Slavinec ey will go where the best returns are expected. We must be aware that Slovenia faces real competition from other countries. We can only succeed if we have a competitive economy, competitive companies – which a number of them they are, because otherwise Slovenia wouldn’t be where it is. We are the richest of all Central and Eastern European countries, but we are not necessarily the most competitive of them. There is a difference; richness is not identical to competitiveness. There is a lot of talk about Slovenia’s unfavourable labour costs. Is this the main reason the country struggles to be competitive or are there other issues at play? I don’t know any developed country which is competitive on its labour cost alone. There is a lot of investment flowing into countries which are much more expensive on labour than Slovenia is. The competitiveness of Slovenia is a fundamental issue, but the fact that the country has dropped from 32nd to 52nd in terms of competitiveness does not seem to have created much interest in the government. Minister Lahovnik said the topic was too broad for him, but I think that his perspective was too narrow. We should not forget that our companies also invest a lot abroad. So, we have competitive companies, but do we praise and recognise them enough? I am not sure.
How badly did the economic crisis hit foreign direct investment (FDI) in Slovenia? Are politicians doing enough to attract investment? Before the crisis, in 2008, we were talking about Slovenia as the lighthouse of Europe and then of a sudden we became the “petrolejka” (kerosene lamp) of Europe – our gross domestic product (GDP) went down 8 percent, our deficit and debt increased and so on. One of the reasons was our strong exThe Slovenia Times
port dependence, but we were also unprepared for the downturn and some of our companies were not as competitive as they should have been. I have heard speeches from President Danilo Türk, Economy Minister Darja Radić and Transport Minister Patrick Vlačič on the subjects of FDI and increasing competitiveness in Slovenia in a broader sense. There is interest now from politicians in these issues. It is quite obvious that mon-
What sort of FDI should Slovenia try to attract? One important kind of FDI is greenfield investment into new production sites but it hardly happens here in Slovenia. Instead we have a number of commercial centres. We do have some good brownfield investments. If you look at BSH Hišni aparati, if you look at Hella Saturnus, or at Revoz, they have all contributed to the Slovenian economy by creating new jobs and adding value. When it comes to selling off our companies to foreign investors, the results have been mixed. We have had good experiences with
FDI SPECIAL 27 Lek and SIJ (Slovenian Steel Industry) but bad experiences with Tobačna, the tobacco factory.
tions and this is the reason why Slovenia lacks a coherent concept for its economy.
What are Slovenia’s advantages when it comes to attracting FDI? And what about the disadvantages? The advantages of Slovenia are the location, the quality of life, the workforce and infrastructure. We have a well educated people who are willing and know how to work, if they are led properly. A good example is Revoz, which is among the best five plants in Renault-Nissan group worldwide. I don’t know how many Slovenians are aware and proud of that achievement from our workers in Novo Mesto. On the other hand, we have a lack of skilled labour and of engineers and technicians in certain areas. This raises the question of why we’re not channelling our younger generation into studies where there is a future. Why don’t we develop more of their talent and keep it in the country? There is also the issue of salaries. If we limit salaries for the top talent they will go elsewhere – the beauty of Bled and the quality of our sausages just won’t come into play. Infrastructure is also a part of the problem. Our roads are better than they were, but our railway system is still years away from where it should be.
But we have a number of successful economists and managers. This is true, we have great economists and managers who understand what they are doing and are vital for Slovenia, but they don’t go into politics. We have a number of companies that do business well, especially those where the state has no or very little influence: Krka, Mercator, Gorenje, Kolektor, Hidria, Trimo. There are also small firms which are good despite the hostile business environment. But there’s chaos in those big firms which are very important for the Slovenian economy and are still owned by the state, like Port Koper, Slovenian Railways, NLB Bank, Triglav Insurance. Politicians interfere all the time and there’s no continuity of leadership. The state can be a good owner but needs to be responsible for its actions.
Would privatisation help increase Slovenia’s competitiveness? Privatisation is a simple matter of ownership – is the owner the state or a private entity? But in some ways this is irrelevant because if we consider China we see that everything is owned by the state and still it functions. Why? Because their management is constant, there are clear rules and if someone goes against this, they get rid of them. In Europe this system is impossible, of course; we are used to democracy. However, in Slovenia we are only just learning how to actually use democracy. And this is the problem: we don’t have people who understand how the economy in the capitalist market functions. I always say that what we have is “cacomism” since we try to have the good things from capitalism and communism at the same time, but this is impossible. All over Europe political systems changed from one party to democracy, there’s a free market, people’s mentality is now hopefully moving toward a protestant work ethics. But in Slovenia we don’t have one single politician who has any international work experience in a responsible post. They don’t understand how the market-driven economy func-
So you think the state needs to step out of management? Yes, exactly. Ownership and management need to be separated. Having state-appointed managers disables the consistent management of the company. Since director-generals are not recruited from the firm but are placed there politically, there is no motivation for the employees. They know they can’t climb the ladder no matter how good they are. The best companies in the world generate their own talent and we don’t. This is a major problem we face. Should the government co-operate more with businesspeople in shaping the strategy for economic development? Yes, but not only co-operate: people at the Ministry should come straight from business management. In France the Economic Minister was previously one of the country’s best managers, directing a company with a hundred thousand employees. As a result, he had a completely different perspective on the economy and its management. We have institutions promoting foreign direct investments, JAPTI is an example, and we also have economic diplomacy. But do you think that this promotion of Slovenia as an investment destination is efficient? You have the Ministry of Economy taking care of JAPTI and you have the Ministry of Foreign Affairs taking care of economic diplomacy. I hope they really work together. We have to define our strategic priorities in terms of markets we would like to serve, and then put more than one person to
take care of China or of Russia or of Brazil. The numbers I saw at JAPTI didn’t impress me. If we really want to attract foreign investors, we should spend much more money and invest much more in the quality of the people who are representing Slovenia abroad. We should elevate JAPTI to a higher position. In France the person responsible for foreign investments has the rank of ambassador, reporting to the prime minister. The decision making process in Slovenia has to be sped up and to become more coordinated. We are a small country of two million people – if we could arrive at a consensus about priorities, we could quickly turn the situation around. But until we have a culture of structured and constructive dialogue between the government, the employers and trade unions, we will be going around in circles instead of taking decisions.
We have a well educated people who are willing and know how to work, if they are led properly. A good example is Revoz, which is among the best five plants in Renault- Nissan group worldwide. I don’t know how many Slovenians are aware and proud of that achievement from our workers in Novo Mesto November 2010
From Local to Global Personal Branding ”Personal Branding” by Nordic branding expert Peter Horn helps leaders and specialists in large companies create or expand a career and business in an increasingly global world. This could be useful to Slovenia under heavy pressure from industrial competition from China and India. global. The book was originally made in Danish for the Nordic market, but the new book in English was created by the author in close cooperation with associates and researchers in Australia, New Zealand, Norway, United Kingdom, Switzerland, USA, Singapore, Japan and Denmark. ”When working globally you’ll often meet the challange of aiming locally in the new markets. The
When working globally you’ll often meet the challange of aiming locally in the new markets. The Americans never learned that lesson when for example, when dealing with the Japanse in the 80es, and then it was too late.
As the world is transforming from the local village to the global village in terms of trade, products, politics, services and leadership, more people in top business consider it imperative to build an international brand. ”The reason is simple,” explains Danish branding expert and management consultant Peter Horn, author of several books about personal branding and the first recognised international book on the subject, ”Personal Branding – How to create your own brand”. ”If you’re not a brand in the international business world, you do not exist. Slovenia is now faced with the increasing challange to on the traditional
If you’re not a brand in the international business world, you do not exist. Slovenia is now faced with the increasing challange to on the traditional markets like Germany, Italy, Croatia, Austria, France and Russia. markets like Germany, Italy, Croatia, Austria, France and Russia. Slovenia’s top business leaders will have to reconsider their strategies and expand new markets
Further information: Peter Horn Man. Director Tel.: +45 33 93 32 55 Mobile: + 45 40 46 78 98 e-mail: ee@peterhorn.dk www.peterhorn.dk
as well as innovation within manufactured goods, machinery and transport equipment, chemicals and food. Reaching these new markets takes a great deal of commitment in establishing professional networks and building trust among the potential business partners. Also differences in cultures are important,” Peter Horn says. He considers the shift from the local markets to the global market the reason why international business leaders by the thousands have now taken up the art of personal branding. This is also the reason why the most progressive business leaders of Slovenia are now working on this issue. ”Your future business associates and customers want to know who you are, your business history, what your goals are and at least – what you can offer them in terms of business possibilities.” The book, ”Personal Branding – How to create your own brand”, has been written with a special focus on leaders in larger companies to give them a platform for expanding business opportunities and careers. The basis of the book is a quote by Julius Caesar in a book by Nobel Prize winner Gabriel Garcia Marquez, ”In the end it is impossible not to become what others believe you are”. The book is an example of switching from local to
Peter Horn Personal Branding Executive Magazine’s Books ISBN 978-87-90469-00-9 Published in Denmark 254 pages, 51 EUR (incl. delivery to Slovenia) Order: ee@peterhorn.dk
The book ”Personal Branding - How to create your own brand” – in English - by the branding expert Peter Horn helps leaders in large, companies create or expand a career in an increasingly global world.
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”If you’re not a brand in the international business world, you do not excist.You have to be known, building global networks and trust,” says branding expert and management consultant Peter Horn.
Americans never learned that lesson when for example, when dealing with the Japanse in the 80es, and then it was too late. Since then they have improved their business and personal branding strategies and have done fairly well with China,” says Mr. Horn, a business consultant at Peter Horn & Co. The company work with international markets and communication strategies for larger companies – with a special focus on the top management’s personal brand performance. ”The Slovenian future is to increase export, innovation and develop a stronger national brand. Investing in Personal Branding is one of the necessary tools to assist the Slovenian business leaders in establishing an influential position in the global village,” Peter Horn concludes.
FDI SPECIAL 29
Relay Race of Destination Branding
The relay race of destination branding What springs to mind when you think of Slovenia? It is a question which the managers of the country’s “brand” are constantly asking – and to which they are trying to ensure a consistent response. According to some, they are succeeding but others warn that destination branding is a long-term process, says Tomas Vucurevic.
I
n the modern age, more and more destinations are competing for tourists. Destination branding is an important part of winning that competition. It a strategic approach which states that creating an image for a city, country or destination is an ongoing, holistic, interactive and widescale process – something much more fundamental than a quick change of logo or the development of a slogan. Slovenia has been very progressive when it comes to destination branding. It first built a concept back in 2007/08, when Pristop partner Andrej Drapal worked in conjunction with Maja Konečnik, professor at the University of Ljubljana Faculty of Economics. There are many important elements to consider when creating
a successful destination branding concept. Arguably the most important is that it is a process, not an event. Positive “silver bullet events” such as Petra Majdič’s heroic Olympic performance or the positive appearance of the Slovenian Football team in South Africa help build awareness of, and sympathy for, the destination of Slovenia. But brand building is a long-lasting process of consistent experiences in all “moments of truth” when the brand touches its consumer. That starts from looking for information on the web, to the entrance into a country/destination at airports or boarders to the hosts in a hotel or a restaurant; people you meet in the street and so on. Quite simply, every inhabitant of a destination and eve-
rybody acting on behalf of it is a “Brand Ambassador”. It is important to remember that a brand is the sum of all experiences consumers have with it. Many of those experiences are historic, from childhood or teenage times, others are very recent. They can be made directly or indirectly through recommendations or rumours. Take the example of Monaco as a destination brand. The arrival of Grace Kelly in the fifties, the glamour of marrying Hollywood with a Royal European family, has created a myth and the Grimaldi family is cultivating and nurturing this myth. It became the core essence of their brand and every step Monaco undertakes is building on this image, including marriages or large events such as its Formula 1 race.
Stronger together.
Nothing happens by accident. But Monaco is still “embedded” in the “Cote d’Azur” and in that sense as well is part of a larger destination brand. Successful brands are often created by single people with a strong vision. Mr Hayek will always be considered as Mr Swatch and Steve Jobs “is” Apple. In larger corporations brand managers or chief marketing officers work to ensure the consistent appearance of the brand through all departments, products and services. Without such a guardian, brand management is almost impossible. And so when looking at destination branding we need to find a guardian. We have certainly made a good start when it comes to promoting Slovenia as a brand. But we cannot forget this is a relay race, not a sprint, and there will always be further to go.
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LITOSTROJ POWER – Litostroj Hydro 45, Pacique Est Bromont (Quebec) Canada, J2L 1 J4 Tel: +1450 534 2929 Fax: + 1450 534 0136 E-mail: info@litohydro.ca
LITOSTROJ POWER - þKD Blansko Engineering þapkova 2357/5 678 01 Blansko The Czech Republic Tel: +420 533 309 560 Fax: +420 533 309 557 E-mail: info@cbeng.cz www.cbe.eu
LITOSTROJ POWER - Hydraulic Research Center Blansko Horní Lhota 149 678 01 Blansko The Czech Republic Tel.: +420 515 538 580 Fax: +420 515 538 598 E-mail: radomir.havlicek@hrcblansko.cz
November 2010
28.10.2010 14:44:27
30 FDI SPECIAL
Interview: André-Marc Prudent, CEO of SKB Bank
Banking is About Cash Flow, not About Assets Just under ten years ago, banking giant Société Générale decided to extend its business into Central and Eastern Europe. The company – one of France’s oldest banks – was attracted by the relative youth of the markets, and the promise of growth. One of its first moves: the purchase of Slovenian bank SKB. According to current SKB chief executive officer André-Marc Prudent it is a move which has paid off – and one which looks likely to continue paying dividends. By Maja Dragović model of Société Générale – we are able also to send people from SKB to work in other subsidiaries of Société Générale. This is a great achievement. What synergies already exist between subsidiaries of Société Générale to the benefit of Slovene customers? One of the first benefits is belonging to one of the largest banking groups, which brings the easiest approach to different markets and reasonable transfer of highly developed banking products. The benefit for individual customers is the creativity in innovation that we are placing on the market. For example, we have created one of the first banking call centres, that makes inbound and outbound calls and connections with clients in Slovenia possible. For companies, apart from stable funding, we bring the benefit of belonging to a worldwide banking network. This means that when a Slovene company wants to invest in a region where Société Générale has subsidiaries, we can provide them with a local bank. Usage of this network is very profitable for a company – everywhere they go they are already known as a customer of Société Générale Group.
What were the expectations when Société Générale entered Slovenia? Have they been met so far? It has taken a while but we are meeting them now. Slovenia is a very specific market; it wasn’t so easy to enter into the market to get the expected profitability. The first years were also difficult because The Slovenia Times
the business model of Société Générale is a tough one to implement – it needs some time before it is totally efficient. For the time being Société Générale is happy with its investment in Slovenia. SKB is in line with the profitability of the structure of Société Générale’s portfolio and has perfectly adopted the business
In the last two years the financial and especially the banking area was hurt by the crisis. Is it over? I don’t think we are at the end of the crisis. The question is whether we will see a second dip recession. In national economies for example there are still problems with some companies which are not profitable enough. The credit crunch which we have witnessed in the last couple of years was not due to the banks, it was due to companies. The banks are always blamed. But some banks, like Société Générale, have never been obliged to cut the credit lines because we have stable funding.
FDI SPECIAL 31 Here we see another advantage of belonging to a big group which has the capital capacity to provide its subsidiaries with funding. You say you have a good portfolio of companies. Have you been careful about getting too many construction companies on your books? The business model of Société Générale is a very demanding one. This means that we finance only when we have in front of us companies that are capable of presenting their investments and its outcomes. We are not lending money only on the basis of guaranties. Banking should not be about assets, banking should be about cash flow. Banking should be able to help companies to make a selection between promising profitable and likely non-profitable investments because if companies invest in things that do not produce higher cash flows, they cannot reimburse loans and the bank cannot justify the allocation of funds. You say you already have a conservative risk policy. Has the crisis made you even stricter or are you maintaining the same criteria as you did before the crisis? We have not changed our business model and our strategy, not in general nor in the field of risk policy. Since I arrived in SKB in 2006, for example we have driven our strategy towards individuals and small and medium-sized companies (SMEs) and this is the strategy we continue to work with. We have not changed our criteria at all. How do the Slovene and French banking markets compare? Are there many differences? There are differences but the Slovene market is more similar to the French one than assumed. The French market is more mature – if you compare the total assets of the banks to GDP in France you are between 400 percent and 500 percent. In Slovenia, you are at 200 percent meaning there is still the prospect of growth. But the structure of the market is different. In France you have no bank having more than 20 percent of the market share. This is not the case in Slovenia where you have one big state-owned bank which has the highest market share. There are also some specific local differences. For instance, in terms of banking products in France cheques are a real competitor to cards while in Slovenia there are almost no cheques. In France there are also more deposits. Do you think Slovenia’s banking market is balanced enough? There is no perfect position. But
on markets where you have more balance between the players, it is easier to work on. In France the biggest bank, Crédit Agricole, is clearly under 20 percent of the market, which leaves much more place for balanced competition than in Slovenia. Where do you see strengths of SKB Group in comparison to other financial groups on the Slovenian market? In what shape, in what condition is SKB? The strength of SKB group is firstly being part of Société Générale. This means belonging to a big and solid group – Société Générale was one the more solid banks in recent stress tests – which brings us solidity, funding, capacity to transfer products which have already been developed elsewhere and modify them if needed to the local specifics. SKB itself has real strengths. The biggest is the bank’s staff who are totally dedicated and who in recent years had adopted the new business model with great success. Another strength is the tradition of SKB, the knowledge of the market, the good relation with the establishment and with companies, and a real understanding of what the customers want. The SKB banking group made a net profit of EUR 20.7m in 2009. The half year results for 2010 show also an increase. Are you pleased with these results? We had an excellent first half year and I think we will have a very good 2010 overall. We are also very positive for 2011. This is firstly due to the huge changes that we have made in this bank since I arrived. We have changed a lot of things and this has begun to produce results on the market. Secondly, we have worked on products which are beneficial both for us and for the customer. At the same time we have worked on increasing efficiency and productivity. In the last four years our costs have remained almost flat despite investing in, for example, creating a call centre, opening new outlets, renovating existing ones, changing the logo and so on. What are the projections regarding market share? In terms of total assets I cannot say. In terms of other aspects, I think on almost all we will increase. Société Générale group has published a plan which is called Ambition 2015. One of ambitions is to be within the three biggest groups in Central and Eastern Europe. Effectively, SKB is part of this objective – we have to help contribute towards meeting it. In our strategic plan we have said that we will
continue the same strategy: develop maximum businesses with individual and SMEs, keep good relations with big companies, and offer more and more specific products through different selling channels. SKB introduced one-tier management in June this year. What does this change mean for the company? In terms of management it has changed nothing because I was already in charge of managing the day-to-day business of the bank. It has just changed in that Cvetka Selšek is now the chair woman of the Board of Directors, meaning she doesn’t play any role in the day-to-day business operations of the bank. We just had to comply more with Société Générale’s organisation. What is your view on the business environment in Slovenia? Is it attractive to foreign investors? I think that one of the specifics of Slovenia is that the nationality of the owner is very important. In all countries it is important, of course, but in Slovenia it is in some cases the most important principle and criteria. But you cannot make capitalism without capital. It is almost a question of physics, it is no more a question of politics or finance, at one moment you need to have some inflows of capital and if you want to cope with a lot of needed investments, this is unavoidable. SKB as a reliable bank with trustworthy management is a story of success in the parent group of Société Générale – which is, as a foreign investor, very satisfied with its investment in Slovenia. That clearly shows that is possible for a foreign company to invest in Slovenia and to really meet expectations. We are a living example of that.
For the time being Société Générale is happy with its investment in Slovenia. SKB is in line with the profitability of the structure of Société Générale’s portfolio and has perfectly adopted the business model of Société Générale.
We have created one of the first banking call centres, that makes inbound and outbound calls and connections with clients in Slovenia possible.
I think that one of the specifics of Slovenia is that the nationality of the owner is very important. In all countries it is important, of course, but in Slovenia it is in some cases the most important principle and criteria. But you cannot make capitalism without capital.
Smart management: André-Marc Prudent says that despite numerous investments, SKB managed to keep its costs flat November 2010
32 FDI SPECIAL
FDI obstacles and opportunities
Making FDI Less of a Foreign Experience Foreign direct investment tends to regarded in one of two completely opposing lights: either as an end to sovereignty or as a path to salvation. Such a simple classification works well in politics, where parties need to oppose one another and to come up with soundbites. But take a proper look at the effects of FDI and it becomes obvious it cannot be defined in such simplistic terms. Slovenia, as one of the younger states to liberalise its market and open it up to out-of-state investment, has had a very favourable experience. There has been a healthy amount of FDI. And yet one could also argue that Slovenia has stifled such developments. By Aleš Šinkovec Photo: Alenka Slavinec
F
Looking for quality and certainty: One of the panels at last month’s FDI Summit in Bled looked at the changes in attitudes of investors after the crisis
thriving domestic business will be of even greater importance. The hunt for profit runs the risk of creating a domestic labour force under foreign management; though the idea this is a problem is often backed up by irrational fear rather than any fact.
The investors
FDI in Slovenia displays many of the challenges that the entire Slovenian economy is facing. The biggest investor, holding almost
Share of Slovenian companies with FDI is 4.7% and they account for (in %) 35 30 25 20 15 10 5 0 Capital
The Slovenia Times
Assets
Employees
Net Sale Revenue
Total Exports of Goods and Services
Source: Ministry of Economy
DI: good or bad? The fact is that arguments on each side can be – and have been – made ad infinitum. To take the middle ground, it is clear that FDI has its place within the system. Foreign direct investment opens up the market to new opportunities for growth. The investments secure jobs and future job growth. It connects the local marketplace to global opportunities. The opening up of the market ensures that people are connected to the global economy; they can become global players. It benefits higher education programs, as skilled labour is always in demand. And yet it cannot be forgotten that FDI is not a solution in itself, nor is it ever salvation. An investor invests for one reason alone: return. If there is no profit to be had, then the investment will not happen. There are many residual effects. Low skilled labour has a decreasing presence in the developed world, because labour prices are too high to produce cheap goods. Slovenia runs the risk of brain drain, now that EU citizens are free to move around just as much as goods. Maintaining a
half of all FDIs, is Austria. If one just looks at European foreign investors in Slovenia, Austria’s percentage approaches 90 percent. This shows the historical relationship that the two states have had, being linked economically. The United States represents less than five percent of all FDI stock, even though it is the biggest foreign direct investor in the world. Many cite this as proof Slovenia has not done enough to promote its economy outside of its direct neighbours.
The hurdles
And let’s be honest: at present there are as many disadvantages for foreign investors in Slovenia as there are advantages. One of the greatest issues is the continued involvement of the state in private enterprise. But this may be changing: investments from abroad have focused on larger Slovenian enterprises; after the state sells off its remaining assets, the companies will be able to look for partnerships from abroad. While these opportunities have great potential, especially due to the low value of the stocks, there are other hurdles that Slovenia needs to address. During the FDI Summit
Slovenia 2010 held in Bled, four key attributes were hailed as the reason why Slovenia is attractive to investors: Quality workforce, Quality link to regional markets, Quality infrastructure, and Quality of Life. The 4 Qs. Ironically, the letter q is absent from the Slovenian alphabet. Slovenia needs to embrace not only its positive elements, but also fix the errors in the system.
The future
The simple fact is that Slovenia has the potential to be a business and logistics hub. It could be as strategic as a Singapore or a Shenzhen. The major obstacles that the country faces, besides a lack of long term vision, are not very problematic. The tax code needs to be adjusted, not simply to make an investor-friendly environment, but also to fix the stifled local economy. Slovenia will never be a tax haven, but it could certainly give more room for opportunities to flourish. Opportunities will also increase once the state sells of its remaining assets that do not have strategic importance. Slovenia has the potential to flourish with FDI. Now it needs to realise that potential.
FDI SPECIAL 33
Interview: Ahmed El Sewedy, CEO of El Sewedy Electric
Diversifying for the Future The company that is now Elsewedy Electric was founded back in 1938 as an electrical equipment trading company. Nowadays this seventy-two year-old-company, founded by the El Sewedy family, is aiming to establish itself as the major global provider of integrated energy solutions through seven sectors – wires and cables; wind generation turbines; engineering and contracting; electrical products; transformers; energy measurement and management; and telecom. An important part of this strategy is the acquisition of Slovenian electricity meter maker Iskaremeco. According to Ahmed El Sewedy, chief executive of El Sewedy Electric, the purchase will be key to helping the group penetrate the European market. By Maja Dragović
You have moved some of the production from Iskraemeco to Egypt. Why? We have not moved the production, we have moved ideal equipments that we do not use and will not be used in the future. Those equipments can be used, though, to produce products for the African market with total supervision from Iskraemeco in Slovenia. The induction meter, which is the ideal mechanical equipments that we transferred to Egypt, is an obsolete technology and will not be used in Europe anymore. The electronic equipments for smart meters and production is in Slovenia. I should perhaps add that in 2009, in the middle of the recession, we invested almost EUR4m in Iskaremeco’s production, research and development (R&D) department and IT here in Kranj.
Photo: Alenka Slavinec
What was the main reason behind your investment in Slovenia? When we thought about Iskraemeco, the know-how at the company was the prevailing reason for the investment since we were looking to diversify our business into another segment. The company itself is a recognised brand, and has a good workforce. Our group already has well developed commercial knowledge so it was a good combination of skills. We also brought in some additional experts and with it improved the performance of the company in comparison to its competitors. This is why we invested. If we compare Slovenia to its neighbours in the region like Hungary, Poland or Romania, it has a less favourable investment environment. But when we thought about Slovenia, we considered the excellent workforce – the younger generation speaks good English so there are no communication barriers; there is know-how, good technology, a well developed infrastructure and a great location which serves as a gate to the EU market.
With 130 researchers, Iskraemeco has one of the biggest R&D departments in Slovenia. How easy was it to fill those posts and what do you think about Slovenia’s technical education? Technical education is really good in Slovenia and I would like to emphasise that all of our R&D staff are Slovenians. We employ graduates fresh out of universities that we train – we have people who have been with us for more than 20 years. Would you say that Slovenia is a business-friendly country? This should be evaluated from all perspectives. As I said earlier, Slovenia has a well educated and
diligent workforce, also great location and fantastic sightseeing. But there aren’t that many incentives for foreig n investments when compared to other countries. The major issues in Slovenia are the tax and legislative and administration hurdles. There is too much paperwork and Slovenia is expensive in terms of tax and social contributions. And I am not comparing Slovenia to Germany; I am comparing it to Switzerland, Luxemburg, Malta or Austria – countries similar in size and / or population to Slovenia. The EU wants its members to start introducing smart meters.
How big an opportunity is this for Iskraemeco? In Europe around 380 million of electricity meters are to be changed in the next 10 years. This represents a major opportunity for all the players in the industry and Iskraemeco is one of the leading players in Europe. We are involved in the most advanced technologies and we are an active member in all the associations that are creating new industry standards. We are collaborating with most of the biggest European utilities in their pilot projects – more than 100 pilot projects in Germany as well as in the Netherlands and the United Kingdom – so Iskraemeco is fully ready for these opportunities. November 2010
34 FDI SPECIAL
Privatisation
To Sell or to Keep? Privatisation of state-owned and partially state-owned companies has been an ongoing matter for debate in Slovenia for years now. But with the recession biting, and the government apparently rapidly running out of cash for much-needed projects, the matter has become more pressing than ever before. By Maja Dragović
T Professor Jože Mencinger, though not totally opposed to foreigners acquiring Slovenia’s “jewels”, doesn’t believe that the answers should be sought exclusively in foreign capital
o privatise or not to privatise? If yes, what to privatise and to whom? Is privatisation even in the national interest? Those are just some of the questions that experts, politicians and the media alike are pondering these days in Slovenia. It is widely acknowledged that the financial downturn has made finding answers to these questions an urgent matter. A number of badlyled companies have now gone into receivership with mounting evidence that some Slovenian managers have worked for personal rather than company interests.
Divided opinion
Many feel the solution might lie in letting foreigners acquire
Plenty on offer
Total number of shares for sale
Share in the capital stock (%)
Agrogorica d. d.
33,528
8,38
Certa, d. d.
43,774
1,94
324
0,24
35,495
14,44
IBT Trbovlje d. d.
1,65
1,00
Kompas hoteli Bled d. d.
363
0,27
37
0,04
468
1,00
3,804
0,45
148
0,50
1,303
1,44
Pohištvo Brežice, d. d.
205
0,20
Puh d. d. Ljubljana
2,06
0,40
172
1,25
90,106
8,26
Company
Hoja-Mobiles d. d. Polhov Gradec HTG hoteli, turizem in gostinstvo d. d.
Komunalna operativa d. d. LGM d. d. Liko Vrhnika, d. d. Minerva Žalec, d. d. Nizke gradnje d. d.
Tekol, d. d. Tki Hrastnik, d. d. Tržnica d. d. Maribor
127
0,20
Zasavski računski center d. d. Trbovlje
342
0,64
Co libri d.o.o. Ljubljana
413,10
0,50
Dimnikarstvo d.o.o., Celje
141,95
0,44
2.304,29
0,78
791,84
1,00
SM Strojkoplast d.o.o. Maribor*
48.929,63
10,50
Tovarna vozil Maribor, d.o.o.**
414.956,55
3,02
524,96
0,20
Fotolik d.o.o., Celje Projektiva Gorica d.o.o. Nova Gorica
ZUM d.o.o.
KAD has published a list of 31 companies where its shares are up for sale
The Slovenia Times
state-ow ned compa n ies. Unsurprising, then, that one of the liveliest panels at the recent FDI Summit in Bled was on the topic of privatisation. There sometimes seemed to be as many opinions as there were panel members, with Professor Jože Mencinger, from the Economic Institute at the Faculty of Law, University of Ljubljana; Peter Groznik from the Faculty of Economics, University of Ljubljana; and Borut Jamnik, president of the board at Kapitalska Družba (KAD) state’s pension fund all offering slightly different viewpoints on the value of privatisation. Mencinger, though not totally opposed to foreigners acquiring Slovenia’s “jewels”, said he didn’t believe that the answers should be sought exclusively in foreign capital. Groznik and Jamnik, on the other hand, argued that the nationality of the owner does not matter as long as there is the right investor for the given product. Both Mencinger and Jamnik did add that there are well-managed state owned companies: even if they have been somewhat overshadowed by the bad examples.
Remnants of the past
To some extent the question of the rights and wrongs of foreign investment is an academic one – the real question is how many foreign investors will actually be interested in buying. This issue doesn’t just involve what some believe is Slovenia’s current unfriendly business environment. It also incorporates the many failed attempts to sell off the state’s shares in giants such as Mercator, Telekom Slovenije and NLB Bank. The last has the state and the Belgian Bank KBC as current majority owners and is arguably the most controversial of the current privatisation debates. Dr Peter Kraljič, Director Emeritus of international management consultancy firm McKinsey & Company, points out that KBC bought NLB shares on the promise it would be able to acquire a majority. But that isn’t what has happened.
“The previous government told KBC to lower their stock share while the current government doesn’t know what to do with them,” says Kraljič. “The government is ready to take the money from KBC for recapitalisation but at the same time it is looking for a new strategic partner for the bank.” “It’s like someone selling you a house, then telling you that for the time being you should keep only one room in the house, then telling you to leave, then telling you that you can stay but you will have to pay me a bit more. This is not serious [behaviour] and may reduce our credibility abroad.”
What way for the banks?
Mencinger is especially scpetcila of allowing foreigners to take over Slovenian banks. He points out that in the West banks are owned by its people, not by foreigners. Croatia, Hungary and Slovakia have taken a different approach, though, allowing their banks to fall into foreign hands – and the profits along with them. “Should we become more Eastern Europeans or should we become more Western?”, asks Mencinger.
Up for sale
While such debates rage on, KAD has published a list of 31 state-owned companies that are looking for new owners or strategic partners. The companies are currently either owned by KAD or by the First Retirement Fund (PPS). Significantly, bids are not only being invited from local buyers – foreign investors are also being asked to participate. The deadline for applications is 22 November. Soon thereafter it should become clear just who is interested in Slovenia’s state-owned companies. Will it be foreign investors? Local investors? No one? Whoever it is, one feels that Slovenia’s academics, experts, media and public will still find plenty of reason to debate the matter of privatisation.
Slovenia’s Tyre Industry is a Step Ahead Sava Tires, a Goodyear company in Slovenia, is the leading tyre manufacturing company in Central and Southeastern Europe (CSEE). Since 2006, the company has been part of the Goodyear Dunlop CSEE organisation, which unites 13 countries and 1,500 associates. Since April, the headquarters of Goodyear Dunlop CSEE have been located in Kranj, Slovenia. As Managing Director CSEE Thierry Villard explains, Kranj has thus become a central point of business management for the whole CSEE region. Thierry Villard, Managing Director Goodyear Dunlop CSEE
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2010 was an important year for Goodyear Dunlop CSEE and Sava Tires as part of it. You took over as the new Managing Director CSEE in April, and at the same time relocated the headquarters from Prague to Kranj in Slovenia. What led you to such a decision? Did the move bring any specific benefits? 2010 is most surely a big year for Goodyear Dunlop CSEE. On the one hand, markets are regaining their power after the crisis. On the other hand, relocation of our headquarters is a major step as well. There were several reasons behind our decision to relocate. The most important factor was definitely production location as the majority of the region’s tasks are performed in Kranj where the factory is also stationed. By moving the headquarters we managed to unite all the managing functions like sales, finance, human resources in one place resulting in improvement of communication. Kranj has since become a central point of business management for the whole region though we regularly visit different markets. How well is Sava Tires doing on the Slovenian market and what are the specifics which influence the business? The Slovenian market is rather specific: it is quite small on the one hand but very important and extensive on the other. The number of cars is high and so the demand for tyres is also high. Also interesting is the high demand for winter tyres. Therefore
the Slovenian market is one of our main markets and at the same time a great prediction of sales movement in other countries in the region. How do you see the future of Sava Tires as part of Goodyear Dunlop CSEE? Sava Tires is one of the leading factories of Goodyear in Europe in terms of product quality and efficiency of production. Our goal is to maintain and always improve this position and at the same time emphasise our cooperation with the local community. Also in the production process itself we strive for best results – tyre production demands great amounts of solvents otherwise harmful for environment; we therefore following a “zero solvent” goal in the production process and will likely reach it by the end of this year. Furthermore our environmental efforts are also present in separate litter disposing inside Sava Tires facility. Addressing the correct disposal of litter has also resulted an unique, fun and useful campaign Pozor(!)ni za okolje within which our cooperation with township community Kranj and high school youth brings obvious environmental improvements. Winter is about to start in Slovenia and consumers are already looking for the best supplier of winter tyres. Last year retailers even ran out of tyre stocks. Will you consequently increase your production this year?
The sale of winter tyres has already started and so far things are turning out successfully. Last year retailers really sold all of their stocks but it was due to severe winter conditions that stimulated consumers to buy new set of winter tyres. Last winter was also a period of economic crisis resulting in weakened retailers’ stocks. This winter we will provide enough supply for retailers. We are offering four new winter tyres of Sava and Fulda brands, on top of already existing high performance Goodyear and Dunlop winter tyres. Our excellent Goodyear UltraGrip Performance and Goodyear Ultragrip 7+ tyres, Dunlop SP Winter Response and Dunlop SP WinterSport 3D are all rated very highly in various winter tyre tests. Sava presents new Eskimo generations: HP, SUV and S3, and Fulda presents a new passenger winter tyre in the High Performance segment - Kristall Controll HP.
Goodyear Dunlop CSEE Sava Tires, Tire Manufacturing Company, d.o.o. Škofjeloška 6, 4000 Kranj, Slovenia Phone: +386 4 207 7011 public_relations@goodyear.com www.sava-tires.si
36 FDI SPECIAL
Logistics
On the Right Track? Last month, Slovenia’s transport ministry unveiled a major change in strategy. No longer will the motorways be the prime focus for the country’s work on transport infrastructure. Instead, attention and investment will shift to the ailing railway system. Can the move help Slovenia become a leading logistics hub? Photo: Alenka Slavinec
By Claire Read
Joined forces: Hartmut Mehdorn (left) believes that the only answer to Slovenia’s logistics future is a holding company of Slovenia Railways, Port Koper and Intereuropa. Change of priorities: Patrick Vlačič is optimistic about the future of Slovenia’s railways
I
Patrick Vlačič: “We can expect a lengthy process of investing into railway infrastructure. It will last 10 or 15 years.”
n 1994, the Slovenian government drew up two important construction plans for transport infrastructure. The first centred on the motorway network. It envisaged major investments in the system, including the construction of new roads. The other plan focused on the nation’s railway network. It too envisaged significant development and investment. Over fifteen years later, it is clear that only one of the two plans ever really came to fruition. The Slovenia of 2010 boasts an impressive and efficient motorway system, thanks in large part to massive investments over more than a decade. The railway network is a very different story, however. Just 30 percent of the development plan has been implemented thus far. Last month, transport minister Patrick Vlačič admitted that Slovenia’s railways are currently “in a very poor state”.
Guaranteed funds Hartmut Mehdorn : “If you invest in trains, it has no impact on elections. Because when it comes to trains, there are no quick wins.” The Slovenia Times
It is a situation which Slovenia’s transport ministry is now committed to changing – particularly because a good rail system is seen as key to establishing Slovenia as a logistics hub. By earmarking funds from vehicle and road tax for investment in rail, Vlačič ar-
gues that one of the key conditions to improving the infrastructure has now been met: a steady stream of funds. He notes that back in the early nineteen nineties budget funds were provided for the motorway construction project but not for the railways. Money has undoubtedly been an issue for Slovenia’s railways. National rail operator Slovenian Railways has made consistent losses in recent times. While currently not quite as far in the red as had been initially feared – losses for the first eight months of the year were, at EUR 3.7m, less than a quarter of what had been predicted – its performance still couldn’t be described as healthy. Most agree that radical change to the company is now required alongside the changes to the rail infrastructure. A proposed restructure, endorsed by the government last month, would see just such a change. It would involve the creation of a holding company which will combine three core divisions of the operator: infrastructure, passenger transport and freight transport.
Another proposal
It isn’t the only proposal on the table, however. Hertmut Mehdorn,
former chief executive of German railways, has also recently suggested the establishment of a holding company. This one would unite Slovenia Railways with port operator Luka Koper and logistics firm Intereuropa. Mehdorn argues the resulting firm would be far better placed to compete on the local, regional and global stage. His proposals – which are still under discussion – are deemed controversial. Luka Koper is firmly opposed. Slovenian Railways chief executive Goran Brankovič supports the proposal while arguing the company can also prosper alone. What is not controversial, however, is that Slovenia can and should be a far more significant player when it comes to logistics. “I am convinced that Slovenia has one of the best geostrategic positions in Europe,” says Brane Krajnik, chief executive of The Slovenia Times. “We can play a very important role as an entry point or hub for companies coming from the Far East, Asia and Middle East and those who are seeking new markets in the Balkans, and Central and Eastern Europe. But position itself is not enough.”
No gain?
With its plans to overhaul the railway system – and its consideration as to how best make Luka Koper and Intereuropa thrive – it seems this is a message the government has taken on board. But Vlačič acknowledges change cannot happen overnight, not least when it comes to the railways: “We can expect a lengthy process of investing into railway infrastructure. It will last 10 or 15 years.” Some worry about whether there is the political will for such a process. As Hartmut Mehdorn puts it: “If you invest in trains, it has no impact on elections. Because when it comes to trains, there are no quick wins.” And Vlačič identifies another issue – one relating to the national mentality. “A car is very important in our country,” he reflects. “It’s a symbol of your success, a symbol of your status.” “But,” he continues, “that has to change.”
38 FDI Special
FDI Awards Slovenia 2010
Triumph in Adversity At the end of October, the fifth annual FDI Awards ceremony took place in the striking Hotel Golf in Bled. The awards honour the finest foreign direct investments in Slovenia and this year celebrated the many companies who have triumphed over global economic adversity. By Polona Cimerman, photo Alenka Slavinec
A
special event demands a special host and the fifth annual FDI Awards had it in the stunning shape of former Miss Slovenia Živa Vadnov. Vadnov hosted a ceremony which at-
tracted more than 200 people, including key figures in the fields of business and investment, ambassadors to Slovenia and representatives of the Slovenian government.
The winners of the prestigious InvestSlovenia FDI Award 2010 – designed by Maja Kaplan and welded by the artist Jože Lisac – were selected by The Slovenia Times and the Public Agency for the Promotion of Foreign Investments and Ent repreneurship (JAPTI), who joined together to organise the event, and the Ministry of Economy. Over 120 companies applied for the awards and, as ever, the judging panel had a tough time selecting winners.
From drywall to car parts
Darja Radić, Minister of the Economy The Slovenia Times
Brane Krajnik, CEO of The Slovenia Times
No matter what the category, judges were looking for winners who had shown business success alongside good corporate citizenship. Such organisations were found in a variety of sectors. Drywall producer Knauf Insulation from Škofja Loka, for instance, won in the category of company performance. Besides good operating results, the jury was impressed by the firm’s decision to invest total profit into new technologies, development of high value-added products and technologies alongside the protection of
the environment. The company is also dedicated to increasing profitability by improving quality-cost ratio in order to be able to pay for the long-haul transportation costs. The Slovenian company has now become the competence centre for rock mineral wool in the Knauf family. Its director Saša Bavec, was delighted to receive recognition with an FDI Award. He said:
FDI Special 39
Johannes Stumpp, Chief Financial Manager, Cartago d.o.o. motorhome product from Odranci in Prekmurje
“This award means a lot to us as it is a recognition of the good job we did in the past years and shows us that our work is recognised outside the Škofja Loka region.” Christof Droste, managing director of Hella Saturnus Slovenia, was similarly delighted by his company’s victory. The car parts manufacturer took home the award for best business management during the economic crisis. The automotive industry has been one of the hardest hit by the global downturn but Hella Saturnus has not only managed to survive – it has prospered. Its number of employees has increased in the past five years and the firm has boosted revenues from 2008 to 2009, making them three times higher than the year before. The company has obtained several patent rights due to its innovative, talented and highly qualified engineers. An impressive 91 percent of its sales are in foreign markets and it is an official supplier for Nissan, Opel and Volkswagen. Droste says the challenge now is to keep up the good work: “We had an excellent strategy and approach that combined a lot of fun,
Saša Bavec, General Manager Knauf Insolation d.o.o. from Škofja Loka, the manufacturer of glass and rock mineral wool
Christof Droste, Managing Director Hella Saturnus Slovenija d.o.o. from Ljubljana, the manufacturer of lighting system for automotive industry
but also a lot of hard work. However, I believe it is not so difficult to become the best – the real challenge lies in staying on top. No matter what, I’m sure we’ll do it.” When it came to the best company among those who have received financial incentives for FDI, it was Carthago that walked away with the prize. The Slovenian subsidiary of the Germany-based parent company manufactures a niche model of a high-end lightweight mobile home and the success of it played a crucial role in 2009 in keeping the balance sheet of the entire Carthago firm in the black. Since launching production in Slovenia in 2008, the firm has steadily grown in terms of output, revenue and the number of employees and is now planning a second plant in Pomurje, worth EUR 3m. Director Johannes Stumpp, who received the award from Economy Minister Darja Radić, said: “I would like to thank JAPTI for their advisory and financial support for our first and our second investment. The production in Odranci in Prekmurje is a strategic location for the Cathargo Group.”
Business and pleasure
Blast from the past: quartet Pella entertained the guests by singing and playing on a 60,000-year-old flute
Of course the InvestSlovenia FDI Award 2010 was not only a night of business – it was one of pleasure too. The guests experienced an excellent atmosphere and enjoyed delicious food and top-notch wines, provided by renowned winemakers Prinčič, Miro and Jeruzalem Ormož. Macedonian vocal quartet Pella gave a unique performance by singing and playing on a 60,000-year-old flute found in the Divje Babe cave. But above all the InvestSlovenia FDI Award 2010 proved itself to be an increasingly important business networking event, offering a vital platform for recognition of FDI and showing that Slovenia is very much appealing to the global investment community.
Brane Krajnik, CEO of the Slovenia Times, Economy Minister Darja Darić, Alfred Killer, head of the FDI division at the Ministry of Economy, and Igor Plestenjak, director of JAPTI
Local delights: guests enjoyed the wine provided by Slovenian wine growers November 2010
40 FDI Special
NEWS IN BRIEF
source: STA, Slovenian Press Agency
Sports equipment
Retail
Strategic Investor Sought for Elan
Mercator to Sell A Helping Hand NLB’s Minority Stake
Strategic investors are being sought for sports goods maker Elan, a state-owned asset management company has revealed. Matej Golob Matzele, head of PDP asset management company, says he is seeking a investor willing to provide a capital increase to reduce the state’s stake in the company: “We’ve had some contacts with strategic and financial investors interested in Elan. I think now is a good opportunity for Elan to get fresh capital and a stable long-term owner.” PDP holds 66 percent of Elan stock. Its stake would be reduced with the equity investment of a strategic investor, but in the next few years PDP would retain a minority interest before gradually pulling out of Elan altogether.
The plan to sell a 10.75 percent stake in Mercator to a Hungarian private equity firm has been approved by the retailer’s board. The stake is currently held by NLB, which seized it last year from the insolvent Infond financial firm and Istrabenz conglomerate. The bank had been in exclusive non-binding negotiations with Mid Europa Partners on the sale of the stake. The Budapest-based group manages around EUR 3.2bn in assets. It owns several companies in the region, including Slovenian cable operator Telemach. The Hungarian firm actually participated in the call for bids published at the beginning of the year. Back then, NLB pulled out of the sale as it was unhappy with the bids.
Food and drinks
CPO Clears Takeover The Competition Protection Office has cleared the takeover of Slovenia’s biggest food company Droga Kolinska by Croatian company Atlantic Grupa. Last month’s decision by the anti-trust office comes after the shareholders of insolvent holding Istrabenz endorsed the sale in August. Istrabenz expects to get around EUR 235m from the deal. It needs the money to pay the creditors as part of the ongoing court-mandated debt restructuring. The agreed value of Droga Kolinska is EUR 382m, but the purchase money will be reduced by the company’s net financial debt on the day of the closure.
Energy
Foreign Investors Interested in Second N-Plant Reactor Foreign investors are interested in funding the construction of a second reactor at Krško Nuclear Power Plant (NEK) according to the facility’s owner. Martin Novšak, the head of state-owned Gen Energija, told daily newspaper Delo that the state would probably not have enough money to fund the second reactor at NEK, valued at EUR 3.5bn, as well as a new generator at the Šoštanj coal-fired power plant (TES) worth EUR 1bn-plus. Novšak is therefore in talks with potential foreign investors who may be willing to fund the second reactor.
3D Glasses Producer Interested in Investing in Maribor
BSH Hišni aparati has donated 50 major Bosch appliances to the Slovenian Red Cross. The refrigerators and washing machines, worth more than EUR 30,000, will be distributed to the families most affected by the recent floods in Slovenia. The company has also donated 50 appliances to the Red Cross in Croatia for the same purpose.
JAPTI
Company ownership
New Public Tender for Foreign Investments
Two Percent of Companies are Foreign
The Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI) will this month invite the fourth set of applications for foreign direct investments. Funding for approved projects will be drawn from the tender of funds for incentives for 2011, amounting to EUR 8m. The deadline for the submission of applications is 12pm on 17 November 2010.
Exactly 2,147 associated companies controlled by foreigners were active in Slovenia in 2008 according to new figures. The share of foreign associated companies among the 107,686 companies active in non-financial activities in Slovenia in 2008 reached two percent. Most of them, 42 percent, were dealing with car sales, maintenance and repair. 15 percent were centred on and 11 percent on expert, scientific and technical activities. Some 66 percent of the companies were owned by EU countries – Austria, Italy, Germany, the Netherlands, France and the UK together held a 55 percent share. Austria alone had a 22 percent share.
A Savings Strategy A capital injection strategy adopted by Slovenia’s biggest bank is a compromise between the interests of its two largest stakeholders, Finance Minister Franc Križanič has said. The strategy, adopted last month, envisages a EUR 250m influx of cash at NLB. The bank will aim to raise the capital, which is EUR 150m less than was initially planned, by March 2011. Belgian banking group KBC – which, along with the Slovenian state, is the largest stakeholder in the bank – had argued the bank did not need equity financing. It instead argued NLB could improve its capital adequacy through sale of investments, reduced lending and cost cutting. Under the new plan, the bank will undertake a slimming exercise by withdrawing from non-strategic markets such as Austria, Bulgaria, the Czech Republic, Germany and Slovakia as well disposing of non-core businesses including property leasing and factoring.
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
Film industry
A Cyprus-based producer of 3D glasses is interested in investing in production in Maribor. X6D Limited is in talks with the Economy Ministry on a deal that could bring 500 new jobs to Slovenia’s second largest city. The company is the biggest shareholder in Slovenian cinema operator Kolosej, which has confirmed that the deal is up for discussion but that it is not directly connected to it. The European branch of X6D Limited is headquartered in Ljubljana and the company also has subsidiaries in the US. Its 3D cinematography products are marketed under the XpanD brand.
Banks
JAPTI (Public Agency for Entrepreneurship and Foreign Investment) is a business facilitator providing free information and advising services for foreign investors: • • • •
Charity
Activity of foreign-owned companies 2008 50 40 30 20 Source: STA
FDI
10 0
Car sales, Expert, scientific maintenance Manufacturing and technical and repair activities.
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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42 FDI Special
FDI Summit 2010 Summary
Summarising Ideas
The location for the fifth annual FDI Summit could not have been more appropriate. The two day event, held this year on 21 and 22 October, aims to promote knowledge and networking with the ultimate goal of stimulating foreign investments. So where better to hold it than Bled, one of the few places in Slovenia which commands international recognition? By Aleš Šinkovec and Jaka Terpinc, photo Alenka Slavinec
T
he conference began with a brief speech by Brane Krajnik, the chief executive of event organiser The Slovenia Times. Krajnik used his address to introduce the impressive honorary patron of the event, the President of the Republic of Slovenia, Dr Danilo Türk. The President, rather than giving the polished motivational speech that might have been expected, shared some of his observations on foreign direct investment (FDI) in Slovenia. It set the tone for the event – making it clear that this was a brainstorming event rather than a series of lectures. The President of the Republic of Slovenia Dr Danilo Türk said that the crisis is a for reflection
The crisis of trust
The first roundtable discussion covered FDI in the light of
Still competitive: Douglas Van Der Berghe, CEO of Investment Consulting, showed an analysis where Slovenia fares favourably amongst new EU member states which caused some disapproval from the audience The Slovenia Times
the current economic crisis. Chief executive of Investment Consulting Associates Douglas Van Der Berghe, Professor Marjan Svetličič of Ljubljana University, Marcus Wild of Spar European Shopping Centres and Ahmed El Sewedy of Elsewedy Electric – investor in Slovenian electricity maker Iskra Emeco – were all confident that the “the end of economic optimism” didn’t equate to the end of financing for promising developments. They did acknowledge, though, that the crisis has created a new wave of protectionism and scepticism towards foreign investment. When asked to comment on the advantages of Slovenia for foreign direct investment, the panel were unanimous: the well educated workforce. But they added that it
could be further improved, with Svetličič emphasising that the country needs to produce more engineers. It was also argued that the education system needs to support globalisation, where student exchanges are encouraged; the simple fact being that it is much easier to operate professionally in an environment that you have already been a part of as a student.
Yes you can
The second roundtable of the day was hosted by Robert Hermann from Germany’s Trade and Invest Agency and Alfred Killer, head of the FDI division at the Ministry of Economy. They were joined by Rudolf Klötscher, the chief executive of BSH Home Appliances. The session provided an
Different examples: Robert Hermann from Germany Trade and Invest, Rudolf Klötscher from BSH Hišni aparati and Alfred Killer from the Ministry of Economy
FDI Special 43
Profitable: Panel that looked at the experiences of current FDIs in Slovenia is generally good
interesting comparison between the government approaches taken to encourage FDI in Germany and Slovenia. Perhaps the most valuable part of the first day’s panels was the stories of four managers involved in various FDI projects: Aleš Bratož of Revoz, Renault’s Slovenian production plant; Cvetka Selšek of Société Générale’s SKB Bank, Csaba Toth of TriGranit; and Christof Droste of Hella Saturnus Slovenija. With the exception of TriGranit’s colossal construction project, which has been delayed due to spatial planning issues, all of these business stories speak of success in the face of the financial crisis. The message to delegates was clear: we’ve succeeded, and so can you. Which is not to say the companies hadn’t faced challenges. Most problems seem to be related to employment conditions. While praising good education and good relations between companies and the employees, Droste sees company loyalty as a double edged sword. The argument is that labour rigidity is definitely a Slovenian disadvantage. The problem of high taxation, particularly the social contribution, was also raised. The panellists agreed Slovenia has been profiled as a country in which to seek a quality workforce rather than cheap labour, and that
investment into it is generally rewarding.
Logistics
The second day of the FDI summit began with another heavyweight guest: Minister for Transport Patrik Vlačič took the stage to be interviewed by Antiša Korljan from the daily newspaper Dnevnik. The main topic of the conversation was the state of the Slovenian railways and their future potential. The Minister presented his vision of Slovenia as a logistics platform, the foundation of which is a logistical holding company – a consolidation of the Slovenian railways, the port of Koper (Luka Koper), and Intereuropa. This is not the first time such development has been proposed; in fact, it is the third time. The Minister seemed very hopeful that this one will be the charm. Vlačič has been successful in laying down the foundations for a system of cross-financing: directly transferring the revenue generated by the highways to the railways. This measure has seen widespread support, passing with a vote of 72-0; a concept almost unheard of in a democratic system. The Minister has sees great potential for foreign investors. The logistics holding will bundle up the logistical chain, adding to transparency, creating Institutional partners
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Breakfast with the minister: Patrick Vlačič said the government is now preparing answers to the questions raised about the logistics holding
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Igor Plestenjak, director of JAPTI, outlined organisation’s actions that included eight new foreign investments in Slovenia in 2010
a much friendlier environment for investors. In between further roundtable discussions, developer IMOS presented their latest real estate project: Tobačna City. It will be one of the largest real estate projects in Ljubljana and the developer promises it will revitalise an area of Ljubljana that is little used, providing fantastic office and living space. It will provide, IMOS argues, a beacon of gentrification and sustainable development and at the same time an architectural spectacle. The final roundtable debated privatisation, especially in respect to an exit strategy from the economic crisis. In the spirit of advocating all angles, Professor Jože Mencinger, from the Economic Institute at the Faculty of Law, University of Ljubljana; Peter Groznik from the Faculty of Economics, University of Ljubljana; and Borut Jamnik, president of the board at Kapitalska Družba (KAD) state’s pension fund generally disagreed. It quickly became clear that there are many cases to be made for and against the privatisation of state assets. Kraljič posed an interesting question: “Why do we call it an exit strategy? Exit into what? Why continued on page 44
Estate MiroVino, Jastrebci 36, 2276 Kog T/F: +386 (0)2 719 76 30 Mobile: +386 (0)41 474 935 miro.munda@email.si
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44 FDI Special
Straight to the point: Hartmut Mehdorn said that Slovenia has excellent motorways but its railway needs an urgent update
Touchy subject: Moderator Uroš Urbas, Professor Jože Mencinger, Dr Peter Groznik and Borut Jamnik debating the issue of privatisation
to embrace this to maximise its potential. This does not mean that don’t we call it entry strategy? En- all state assets have to be sold, but try into competitiveness and sus- equally, they should not be kept for longer than necessary. Legistainable growth of Slovenia.” The summit concluded with a lative changes have to accompany summary of findings provided by these changes in policy. The tax Dr Peter Kraljič, Director Emeritus code in Slovenia is stifling develof international management con- opment and not simply for FDI. sultancy firm McKinsey & Com- Ultimately, the Slovenian mentalpany. The summary came in the ity of management and entrepreform of a fascinating interview neurship has to change. We must hosted by The Slovenia Times work together to realise positive chief executive Krajnik. The es- change. As the delegates at the FDI Sumsential message was clear: FDI is a very important path to prosper- mit gathered for the closing lunchity, not only for the investor from eon – a delicious buffet with wine abroad, but for all the job oppor- from Miro and Prinčič – it seemed tunities and boost to the economy that the country was already takB_Oglas_Styline_ENG 25.10.10 15:30 Page 1 that they provide. Slovenia needs ing a step in the right direction.
Closing notes: Dr Peter Kraljič sees the fact that there was such high representation from the government at the conference, it is ready and willing to work on improving the business environment for foreign investors and Slovenian businesses alike
continued from page 43
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The Slovenia Times
Experience
Jeruzalem Ormo탑 Wine Cellar Prom enada Gourm et Restaurant Dine with Style
Vintage
Year 2010 in Bottles
experience
46
Jeruzalem Ormož What You See is What You Taste
According to legend, Jeruzalem was given its name by a group of 13th century crusaders who settled there, enchanted by its beauty. Modern travellers still have plenty of reasons to visit this hill near Ormož – not least the chance to enjoy some of the best wines around. By Jaka Terpinc
Is this heaven? No, it it Jeruzalem. Wineyards and Malek cottage (above).
The facts and figures around wine producer Jeruzalem Ormož can be somewhat mind-boggling. The biggest producer in the country, with an overall capacity of 3.2 million litres, 120 tons of grapes get processed here each day of the picking season. This is far from a case of quantity over quality, however. All the grapes are handpicked, which is rare nowadays. While a picking machine can do the work of 45 people, it leaves a side effect which the experts at Jeruzalem Ormož are not willing to tolerate – oxidation fluid from damaged grapes. That is not to say that the cellar is antitechnology. On the contrary. This year they introduced a brand new, fully automated filling line. It is just one of a series of giant leaps made recently in both marketing and technology.
The Experience
When we arrived at the winery we were greeted by Mitja Herba, chief enologist, and marketing boss Andreja Komel – as well as by a glass of Muškatna Penina (Muscat sparkling), a light and fresh pride of the house. Despite a heavy year, full of rain and rot – and the economic crisis – estimates for the winery’s near future remains optimistic. The domestic market is traditionally loyal, exports are on the rise, and the number of guests who come to their wine tasting sessions is increasing. Six or seven buses of tourists now The Slovenia Times
visit their prime exhibition spot, the Malek cottage, set in the idyllic surrounding of Jeruzalem’s rolling hills. “Guests are fascinated by the nature, hospitality and, of course, our wines. Many come with caravans and bicycles. It’s a philosophy of healthy life in the morning and teasing yourself with food and wine after that,” says Herba. Unexpectedly, Ormož
47
Wine tasting with style: Malek interior
has also capitalised on the introduction of motorway toll stickers: the town is located near the expensive artery that links Central Europe to the Adriatic, and many tourists seek alternative regional routes, like the one that leads past the winery.
of ‘71 bottles, which was defined the year of the century. These bottles are available for sale (priced up to EUR 250) so if you want to surprise someone with a wine from the year of his or her birth, the Ormož cellar is a good place to visit.
Sightseeing
Cheers!
The tasting hall of Jeruzalem Ormož is a neatly arranged taste and buy shop, but what really blows your mind is the wine cellar. The staff here knows that a tour of the entire wine production line is the best way to stimulate thirst, so will gladly show visitors around at any time. The entrance is through the main building and extends into a long tunnel. Then, all of a sudden, you find yourself 25 metres below the surface. The entire facility makes the most of nature. The cellar is built inside a hill, taking advantage of both natural condition of storage and the gravity that pushes the liquid down towards the bottling line: “Less exhausting for the wine,” they explain. A robust, industrial lift takes you back to the light where the whole story begins with deployment of the vineyard crops. If you are curious to see state-of the art grape squeezing technology and megalitre fermentation tanks, this is the place for you. But when it comes to storage, things essentially become far more traditional. The five circular halls in the underground levels hold the endless lines of oak barrels, where the wine awaits its desired maturity. At the deepest point, in the tranquility and darkness of the hill’s belly, sits an archive covering most years from 1956 onwards, including a solid number
Of course wine science cannot be explained briefly: it requires a detailed knowledge of different areas, centuries of tradition and experience, active participation, following trends. This producer is strong in all the mentioned. Recently, they have introduced a new design to the bottles – yellow for Jeruzalem Ormož and Ljutomerčan, two traditionally acclaimed Slovenian wine brands. The wines constantly win medals in most prestigious events and are getting more and more popular abroad. They have successfully invaded Dutch market, where these Slovenian tipples are regularly offered on KLM flights. Asia is enthusiastic as well, as over million bottles await shipment to China. The area of Ormož is considered to be among the world’s top five percent for optimal conditions for winegrowing. Judging from its output, this cannot be far from the truth. Quite simply, this is a place no wine lover should miss.
De gustibus non est disputandun: You can’t argue over the tastes in the Jeruzale Ormož wine tasting hall.
Archives. A ghostly place.
P&F Jeruzalem Ormož d.o.o. Kolodvorska 11, 2270 Ormož, Slovenija T: +386 (0)2 7415 70, F: +386 (0)2 7415 707 info@jeruzalem-ormoz.si, www.jeruzalem-ormoz.si
Five levels under the surface. Would you mind the apocalypse, if the fallout bunkers were looking this way? The march of the bottles: From empty bottle to wine six-packs in one move.
November 2010
48
Vintage
Year 2010 - in Bottles
In 2010, Slovenian winemakers are sticking with their bestsellers but at the same time catering to current trends: light, fresh and rosé wines are definitely in. By Jaka Terpinc
The grape harvest in most Slovenian vineyards began in September and will last until mid October. This year in particular the vintage will be – as enologist Klavdija Topolovec, chief of Radgonske Gorice Cellar puts it – “a demanding one” with know how and processing technology playing a significant part in later success.
The Slovenia Times
The reasons are well known: rain and humidity and consequently less vaporising at the time of ripening, leaving a relatively high level of titration acids in the grapes. And now rain and hailstorms are affecting matters, with reports from all over the country that rainfall is making grape picking this year a demanding task. In such circumstances good organisation and a precise evaluation of grape ripeness in crucial. As a result, most producers are evaluating this year as lower in quantities but of a satisfactory quality. It may not be as good as the previous years which were above-average, but it is far from bad. Trends in demand show an increased appetite for fresh, fruity and light wines, especially white. Sparkling wines are also gaining in popularity. This comes as good news to most Slovenian producers,
who are strong in this segment. Many of Slovenia’s indigenous wines such as Cviček or Ranina also range among these.
The Crop and the Wines The West
Marjana Simčič of Brda Cellar, the biggest supplier in western Slovenia, estimates their crop to be 7,200 tons, adding that the grapes are a good basis for this year’s wine. The cellar prides itself mostly on Rebula wine in many excellent variants and this year will hit the market with new, handy packaging. One of them is a “social wine” Briškolin, a quality wine in a litre bottle, and five litre “Bag in Boxes” for their quality red and white vines. Another wine “giant” of western Slovenia, Vina Kras are happy with this year’s qual-
Photo: BOBO
49
ity despite a slightly smaller crop. They remain focused on their prime product, the Teran, and are introducing a prestige selection of this wine made of grapes grown in the best positions. Another pride of the cellar is their rosé, which has been evaluated as the best in Slovenia. The trends seem to be on their side too. Ščurek, a smaller yet recognisable producer, also speaks of an average season, determined by rain which on the positive side results in lightness and freshness of the product. They also acknowledge current demands and introduce a series of fresh wines called Strune.
The East
Radgonske gorice keep to their best known trademarks: Janževec; Traminec; and the two sparkling wines, Silver and Golden Radgonska Penina. This year they intend to take the sparkling brand even further with gastronomic brut variants of rosé and chardonnay, with a shorter, 18 month period of ripening. This, in a trendy manner, brings a light yet full and recognisable essence of Penina.
The South
Dolenjsko reports a slightly worse crop than the above-averages of recent years. Krško is the main producer of the indigenous drink Cviček, of which they pack nearly a million litres. Their novelty on the market also follows trends, as they have introduced a lighter and fresher variant of Modra Frankinja, bottled in a litre bottle with a screw cap.
as superior. Brda, whose brands Quercus, Bagueri and Markiz took seven Decanter medals, take the prizes mostly as proof of their efforts, a quality insurance for the buyer and a key for the doorways to foreign markets. They say the price is not affected by these acknowl-
edgements. “We don’t make wines to get awards, however they do help our distributers to communicate with clients who don’t know Slovenia as a wine country.” Similar is the argument of other winemakers who decided to get their products evaluated by the leading authority in this area.
All the Way to Japan
Most Slovenian wines are served and consumed in the homeland, with export figures reaching up to a half depending on production. Nearly all producers report increases in exports or at least efforts to breakthrough to foreign markets. Brda, for example, exports 30 percent of their production. Their biggest foreign market is the USA, followed by the former Yugoslavia and the European markets. Japan is also on most producers’ export lists. The export advantage is very much on the side of those who produce globally recognised types of wine. Krško, which bottles most Dolenjsko region wine, deals mostly with authentic wines which still lack global recognition and therefore their export isn’t very big. But Japan is among the destinations.
Much effort and a bit of luck
All of the producers mentioned above have pocketed Decanter awards in its most recent evaluation, except Krško, which can pride itself on its many other prizes. In most cases, the prize is expected, but no less welcome, as the samples sent for evaluation are already recognised November 2010
50
Martinmas
The Magic Moment
On St Martin’s day, must turns to wine and geese dread. It is much like Thanksgiving Day in America – a celebration of nature’s bounty. In Slovenia, Martinmas has retained its historical significance and helps preserve its rich cultural traditions. By Helena Marko November 11th is the name day of St Martin, the patron saint of beggars, vintners, equestrians, soldiers, tailors, innkeepers and wine drinkers. Born around 316 in Pannonia (in present day Hungary), St Martin was a soldier before laying down his arms to become a priest. Due to his charitableness, he was one of the first non-martyr saints canonized by the Roman Catholic Church. He is traditionally depicted either relinquishing his arms or on horseback, handing half of his cloak to a beggar to hide his poverty; hence, the Western European tradition of begging for charitable gifts on this day. You may also see him depicted riding a donkey,which stems from the apocryphal tale of him walking to Rome and meeting up with the Devil, who mocked him for not rid-
ing a donkey as a bishop should. St Martin turned the Devil into a donkey and rode him the rest of the way to Rome, all the while urging him on with the Sign of the Cross. Another legend has it that St Martin turned water into wine much like Jesus did in the Galilean village of Cana; therefore, St Martin’s name day signifies the turning of must into young wine.
A Celebration of Harvesting
Martinmas has two meanings: in the agricultural calendar it marks the beginning of the natural winter, whereas in the economic calendar it is seen as a celebration to mark the end of field work and the harvesting period. In Slovenia, Martinovo (St
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The Slovenia Times
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Martin’s Day) has been celebrated with Martinovanje (Martinmas celebration) for centuries in an elaborate manner, with traditional folk dances, musical performances and games. Following these holidays, women traditionally moved their work indoors for the winter, while men would proceed to work in the forests. The Germans say that “St Martin comes riding on a white horse,” but this may not always be the case. Another old saying says that one can predict what sort of winter is coming by the conditions on St Martin’s Day: “If the geese at Martin’s Day stand on ice, they will walk in mud at Christmas”. On this day, fairs were traditionally held and cattle were slaughtered and salted for winter consumption. The culmination of these activities was the St Martin’s Party and the rich Martinmas feast. Since Advent required some fasting, this sumptuous dinner provided the perfect excuse to put the abundant meat produce, which otherwise would not have lasted long before spoiling, to good use. Traditionally, the centrepiece of the meal is goose, which has been depicted as St Martin’s bird in sacral pictures since 1171. The goose is a symbol for St Martin himself – legend has it that he hid in a stable filled with geese to hide from the people who wanted to make him a bishop, but a honking goose betrayed his
whereabouts. As punishment, geese have become the staple fare on St Martin’s Day.
The legacy
Basically speaking, every Slovenian town organizes its own Martinovanje; some celebrate for a day, some for as long as 10 days. Being a proud wine-growing country, celebrating the birth of young wine is serious business in Slovenia. If you want to celebrate Martinovo (Martinmas) in an authentic environment – the wine cellar – pick your favourite winegrowing region and just go there on 11th November. Martinovanje is an excellent way to learn about the Slovenes and their culture, which, as far back as anyone can remember, has been connected to viniculture. If, at times, Slovenes seem a bit too serious and hard-working to you, this is the day when you will most surely see and hear them laughing, talking and singing out loud as if there is no tomorrow. Treat yourself to a trip out to one of the major wine-growing centres and take in the pristine views and excellent wine cellars before booking into a tourist farm where you will welcomed by warm, friendly locals only too glad to offer you the traditional Martinovo fare – roasted chestnuts, baked apples with cinnamon, roast St Martin’s Day goose and young wine.
Brda. The land of invigorating moments. The fairytale landscape offering views toward the sea, the Friuli and the Veneto, has a special, magical power. Brda, the land of hills, nested midway between the Alps and the Adriatic, preserves and develops its heritage, safeguards its beauties and generously bestows its delights on anyone who visits the area.
A
lthough the times of fairytales are over, fabulous images of Brda are becoming increasingly real. The abundance of beauties, curiosities and adventures always attracts attention of travelers who wish to get acquainted with Brda. Bearing the stamp of the past, today’s life in the villages and hamlets of Brda has been taking its own pace - tranquil and cheerful, surrounded by family and in harmony with visitors.
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Brda, Brda, and the Sumptuous Wines…
If man had the power to create land that would yield him grapes good enough for the best wines, he would have problems making it as perfect as Mother Nature made Brda. For millions of years, Mother Nature had been kneading sand and clay deep down in the quiet of the seas, and in the Eocene, she finally pushed it to the surface. In the north and east, she adorned the land with stone windbreaks while in the south and west she let the wind come freely from the sea. The soil here yields good crops of fruit, even olive trees do not shiver with cold, but out of all good things yielded by this soil, wine stands out the most. Rich, full of minerals as well as with heady bouquet and harmony of acids, the Brda wine is the old school wine. In the past years, it has been successful at conquering even the most demanding markets. Vineyards in the Goriška Brda spread on around two thousand hectares. Almost thousand families are involved in wine-making. The most important Brda’s wine variety was and still is the native Rebula. The most common red grape variety is the Merlot, followed by Cabernet Sauvignon and Cabernet Franc while the Pinot Noir and Syrah grow in a small number. Recently, wine producers have delighted us with remarkable wines. Most of them apply the Bordeaux cut, a method of producing a variety by blending the Merlot and Cabernet varieties. The most sumptuous wines are aged for twelve of more months in small oak barrels. In addition, it is a growing custom that reserve wines are marketed after three, four, five and more years after their vintage. A truly special offer includes sparkling and sweet w ines. T he first spa rk ling w ine was introduced by the wine company Vinska klet Goriška Brda, and its Peneča rebula (Sparkling Rebula) has set high standards for the use of the Charmat process in Slovenia. Today the Brda wineries offer superior sparkling wines produced by using the second fermentation in a bottle (the traditional method).
The Brda wine shop
The Brda wine shop is nestled in the Renaissance mansion of Dobrovo. There, in the mansion’s vaulted cellar, where once matured wines of the Baguer earls, you will find a place, where a guided wine tasting will take you into a wide world of flavours of Brda wines. Moreover, the whole Brda wine-growing district will be revealed to you, too. On the wine list you will find over 300 wines by 44 Brda winegrowers, and the hospitable staff will willingly help you to find the most suitable “golden drop” for your soul. The Brda wine shop boasts the collection of premium Brda products as well as select Slovenian cheeses and meat products. Therefore, your sightseeing of the Brda wine district may quickly turn into a unique and unforgettable gastronomic experience. Vinoteka Brda d.o.o. was established in the middle of 2000. The idea of setting up a shop and promotion centre has been backed by the Brda municipality and the majority of Brda’s most prominent winegrowers. And the choice of the cellar at Dobrovo Mansion was simply the most natural selection. As a matter of fact, Dobrovo is at the crossroads of all Brda roads, and thus in the heart of Brda vineyards. The shelter of thick stone walls, which surround the mansion’s cellar, provides an ideal setting for a respectful introduction to the wine as a beverage that tells us the story of tradition, people’s attachment to their
Vinoteka Brda d.o.o. Grajska cesta 10, 5212 Dobrovo v Brdih Phone: +386 (0)5 395 92 10 Mobile: +386 (0)31 342 369 www.vinotekabrda.si
soil, and the knowledge how to use nature’s gifts for production of sumptuous wines. In the Vinoteka Brda you can taste the entire range of Brda flavours at one place.
TIC Brda Grajska cesta 10, 5212 Dobrovo v Brdih Phone: +386 (0)5 395 95 94 Fax: +386 (0)5 395 95 95 tic@obcina-brda.si, www.brda.si
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Interview: Robert Gorjak
We Have Much to Show at Affordable Prices
Slovenia’s top wine expert comments on the state of domestic wine business and explains the formula of a good wine. By Jaka Terpinc Robert Gorjak was born into a family of winegrowers and – even though he completed his studies in computer engineering – it was his curiosity for wine that was to determine his career. With a belief that success in winegrowing comes from the head rather than the arms, the vineyard never attracted him as a matter of cultivation. Actually, it was his uncle who got him interested in the family trade, taking Robert to a nearby wine fair and pointing him into the
direction of expert wine tasting. His idealistic teenage ambition was to rate the quality of wine with absolute measures. Despite the impossible goal, the ambition illustrates Gorjak’s determination to uncover the last of the secrets about wine. The other turning point was the first trip he made abroad completely on his own. That was in 1994, when there was no way to get any kind of wine education in Slovenia – except for strictly technical courses in cultiva-
tion. From there on, nothing could stop him on the way to become an elite connoisseur. Today Gorjak can be introduced as one of the most renowned wine expert in Slovenia. Besides holding a number of licences and the a diploma from London’s Wine & Spirit Education Trust, he can pride himself on a rich set of references, from contributing a number of international magazines and wine guides such as the Oxford Wine Companion and Wine Atlas, to judging for the Decanter World Wine Awards. He is also co-founder and lecturer at Belvin Wine School. Slovenia is a relatively unknown place for much of the world. Is the situation any better when it comes to knowledge of our wine? Not really. Wine lovers still don’t know much about us. The situation is a little better with experts in certain markets.
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The Slovenia Times
Why so? Because [Slovenian wine making] is shattered in a typically Slovene manner. To take a different example from our neighbourhood: Austria, which is not so much bigger than us, perform under a unified brand Wines of Austria, which always gives good PR material for the international magazines and constantly hold activities such as tastings in Dubai, Abu Dhabi, Singapore; menus of the Best Danish Chef with Austrian Wines and so on. So we are speaking about the lack of a generic promotional body... Yes, a generic promotional body which unfortunately does not exist. we need a professional organisation that would oblige all producers to contribute funds. A three Euro fee per hectoliter would make a bottle only three cent more expensive but result in an annual budget [for the organisation] of some EUR 5m
– decent enough for efficient, unified promotion on the global market. Is there any such initiative in the air? A law which will fund a generic promotion of food is about to be declared, but I don’t know if wine will be included. The problem is a lack of vision. There is no official wine map or a website – even Macedonia has one. It is a shame, because there is much to show and promote. We might not be the best in the world, but we have many excellent products and an enchanting landscape. Foreign professionals apparently have a certain “idea” of a Slovenian wine. What is the general impression or stereotype of our wines? The first reaction is surprise over the high quality and the variety; the difference in styles between the same wine variety . Over here, you can encounter more different styles per variety than for example with Boujoulais, which is “bigger” than Slovenia and results in three or four wine types. Therefore Slovenian wines, white in particular, are both different and taste good, they have an authentic mark. It is clearly impossible to compete with winegrowers such as Spain or France in terms of quantity, but does smaller-scale production mean anything in terms of quality? Yes – in both a good and a bad sense. On the positive side, massive production means big incomes that can buy tools to assist winemaking in a country, along with development and knowledge base. France is not only Champagne and hundred
53
Photo: Mediaspeed
A litre bottle, which stands for alcoholism rather than quality? Not alcoholism, but wine in the sense of ordinary quality. Alcoholism is caused by too much wine, either good or bad, doesn’t matter. Wine in litre bottles create a biased picture of what Slovenia is. When a hotel guest experiences such treatment, he will not return as a wine tourist, saying: “I’ve drunk better wine, why bother?” We have much to show at affordable prices, but the hotel stuff simply doesn’t represent that.
Euro bottles. The biggest French exporter with a 17 per cent market share has an average price of bellow 2 EUR per liter ex-cellar. It is normal. That’s where business is made. But on the other hand, the quantity needs a thorough marketing strategy for selling. A small producer, with few thousand bottles of a certain wine is much more flexible at this point. He can sell instantly. Wine tourism is a promising business as well and, again, we are surrounded by strong competition. What are the prospects in this area? Slovenia, a wine destination – great idea! Many opportunities lie here, but what we need to improve at this point is the wine knowledge and service of people in catering. It doesn’t match with the idea of a wine country. About eighty percent of wine in hotels, sold as a wine in bulk or of very basic quality, spoils this picture.
Does Slovenia have certain advantages in terms of wine tourism? I don’t want to comment on the other parameters of tourism, but for wine it is probably good prices and the offer of wines which can’t be found in a tourist’s homeland. Šipon (Furmint), Rebula (Ribolla Gialla), Malvazija; white wines of Primorsko and Brda; Sauvignons in Štajerska region and so on. There is lot of potential in small, family hotels with an exclusive wine list, where a guest can also experience a certain level of welcoming attitude. The countryside is still ready to demonstrate some genuine honesty. Can you evaluate the past twenty years of the country’s economic and political transition in terms of wine? The first to mention is the Slow food movement, which has influenced the introduction of normal wine glasses in restaurants and decent wine lists. Then a bunch of wine events kicked off. Before there was only the Ljubljana wine fair – an eminent event, which is unfortunately discontinued – but today tastings, presentations, saloons, dinners with winemakers and so on happen on a weekly basis. Finding information on wine is also not a problem anymore. Knowledge transfer has become fluent. Wine schools appeared, the sommelier courses, a wine magazine and so on. And most importantly, the quality of wines increased dramatically along with a number of good winemakers. In the background, there were ownership changes, mergers and collapses.
Some were meant to get bust – it was for the best. Promotion on foreign markets has begun, but as I have already pointed out, it still suffers a horrible dispersion. We have imported knowledge from abroad, despite a typically reserved attitude in the beginning. It may sound naïve, but it feels wrong not to take the opportunity and ask the expert a basic question: what is the secret of a great wine? How to craft an excellent wine is not a secret anymore. It is technical knowledge which should be common to any good winemaker. The more important question is how to make profit out of it. The most important is to decide on the style: what a winemaker wants and how to achieve that. When this is clear, the winemaker will know what steps to follow in the vineyard and in the cellar in order to create a desired product, without a major deviation. Another crucial element is an understanding of the vineyard and awareness of what it is possible – an understanding that the average positions should be used for basic wines and superior ones used to grow really balanced fruit in terms of acids, sugar and so on. And then, as simply as possible, the task is to turn the fruit into wine. So there are no secrets? No special tricks or techniques that certain winegrowers have? No. It is a craft as any other business where some are better and some are not. It is important to be humble against nature and have a sense for what nature is communicating. The winegrower’s biggest asset is his vineyard. Wine cannot be made different from what nature has created there. Which doesn’t mean we can’t make a bad wine out of a good vineyard! If the process is carried out correctly it results in a complex, composite scent. For the best wines, the scent should be special in a positive sense – unique in the first place. Wine that feels balanced in your mouth. I prefer a less ambitious wine, an everyday wine that is balanced against the more ambitious but unblananced, “wannabe” wine. Imagine you are producing balls. Firstly, they should be of propers shape, mostly round. If they are not, something is definitely wrong. Another thing – they should be the proper size. You can’t decide to make a football ball which turns out to be the size of a handball ball and then try to sell it as a new sort of football ball. If we see that someone decided to make a football ball and made it the way it is expected – without bumps, with smooth stitches – we can say: that’s it! Such are also the wines that earn high praise among critics and connoisseurs. November 2010
54
The Capital
It’s Time for Young Wine The first half of November in Slovenia is traditionally time of young wine celebration. On the day of St. Martin’s grape must turns into wine. Events called “martinovanje” are organized all over the country, especially in wine regions – and also in Ljubljana. The Ljubljana wine route is an annual event which brings together the spirit of wine regions and typical Slovenian culinary delicacies straight into the capital’s old part alongside a rich cultural programme. By Polona Cimerman
Wine most definitely plays an important role in Slovenian identity and Ljubljana wine route ensures this gets recognized and celebrated. This year the event is taking place on Saturday 6th November. The organizers Rado Stojanovič and Ljubljana Tourism wish to unite the enthusiasts of wine, tasty food and good fun with chosen winemakers and food providers. “The Slovenian wine assortment is extremely wide, but today’s fast pace of life unfortunately offers less and route strives for greater recogniless opportunities for a relaxed trip tion of top-notch Slovenian wines to the countryside where one could enjoy exquisite wines and traditional as LJ- KARTICA - 113x155 mm 6/24/10 15:12 Page 1and winegrowers and is targeted at residents of Ljubljana and foreign food,” says Tatjana Čop from the guests. “Tourists may get some good organizing board. Ljubljana wine
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
new ideas and experience flavours they have never had,” asserts Čop. The event is an opportunity to create fine relations between the capital and wine-growing regions. It also brings more life to Ljubljana’s old city part. All this ensures a wonderful promotion of Slovenia and its capital as an interesting oenological, culinary and tourist destination, say the organizers.
A treat for the taste buds
The numbers of wine exhibitors and visitors constantly grow. This year they expect around 120 exhibitors in comparison to last year’s 80, coming from all over the country and some even from abroad, mainly from the neighbouring countries. “The main emphasis of the event is excellent, qualitative wine and this year is no different in this respect,” says Čop. “The new winemakers expand the offer, those which participated in the past promise to serve the visitors with interesting novelties. This year we stretched the culinary aspect and we invite everybody to taste Slovenian traditional dishes, prepared especially for our event. The offer of our local specialities is enriched with an array of Macedonian, Serbian, Italian and French tasty bites.” Besides that, the organizers took care of a rich cultural and artistic programme with folk dancing and various performances. There is no entrance fee. This young-wine fever is a result of a long and fruitful tradition of viticulture in Slovenia. Here, wine production was well developed already in the times of the Ancient Rome.
Between the world wars it was in decline, but today the country can boast internationally recognized wine production of high quality together with service and consumption – a true and cultivated drinking culture. It has 22,000 hectares of vineyards, spreading over three winegrowing regions and nine districts. Winegrowers produce from 800,000 to 1,000,000 hl wine per year.
Ljubljana – the centre of the wine-growing Slovenia
Even though it does not really belong to any of the wine-growing regions, one should not forget that Ljubljana, despite its urban environment, is also considered a city of vine and wine. It received this internationally acclaimed title due to the oldest international wine-evaluation event, active scientific institutions in the field of viticulture and wine trade with long tradition. It has two vines, one of them being a direct descendant of the world’s oldest vine from Maribor, Vitis vinifera L. which is the most noble domestic Slovenian sort. The organizers believe Ljubljana wine route event is a manifestation of everything superb Slovenia has to offer in this respect and that it proves the country possesses topclass wines and original food. Čop invites everybody for unique taste of Slovenia: “This is a fantastic opportunity to get to know the variety and magic of the Slovenian countryside – all in just one day and in the amazing atmosphere, created in the wonderful old part of Ljubljana.”
news
Chocolate
56
The Grandmother of Chocolates
The Spirit of Marc Cain
An Italian fashion designer had two great passions: stylish women and fast cars. Cain’s life ended 1973, when he crashed his Ferrari, but the legend lives in many creations which carry his name. The guideline principle for design of the collection is the concept of coordinates, the combinability of vari¬ous components. For Marc Cain the idea of coordinated elements signifies not only the perfect matched harmonised outfit, but above all a subtle encounter between apparently widely varying individual elements. “The Marc Cain woman lives for today, is self-confident, open and full of curiosity. She loves being a woman, and expresses her personality through the clothes she wears – naturally and as a matter of course,” says the collection promo. Essentials for MC Women now available also in Slovenia. If you are or want to become one, head for Sportina’s XYZ fashion stores.
The Slovenia Times
Sweet Dubai
Chocolate
Fashion
Gorenjka, the one and only unique Slovenian chocolate brand turned 88. It was in 1922, when Adolf Zavrtanik started his chocolate factory in Lesce. The brand Gorenjka (meaning a female from Gorenjsko region), resisted all political and economy turnarounds, as well as the pressure of its competition and entered the new millennium as tasty and popular as ever. For generations, there was no birthday present like the big whole hazelnut Gorenjka. To bring back the childhood memories, Gorenka decided to run a limited edition of the legendary chocolates worn into their memorable nineteen-eighties wrappings. Gorenjka is proven to have, so claims the manufacturer, the densest amount of whole hazelnuts among the competing products. It is also evident that Slovenes prefer this sort of chocolate above all.
Good news travel fast, and the good news about delicious Cukrček chocolate have travelled all the way to Dubai. There, the chocolate shop Chocolate Moment sells this superior Slovenian chocolate. But there is no need for you to go all the way to Dubai to buy the Cukrček chocolate. Their chocolate is waiting for you in Ljubljana in Cukrček chocolate shops. It is worth knowing that, among other things, Cukrček was the first Slovene chocolate producer to receive a certificate of organic chocolate. Criteria for obtaining the EKO certificate are very rigorous because every single ingredient has to be organically produced and without any additive. The EKO range includes white and dark 85g chocolate bars as well as dark and white 250g chocolate spread. For all those not wanting or not being allowed to indulge in sweet treats, Cukrček has prepared a range of chocolate products containing fructose which is extracted from fruit. One of Cukrček’s new products is select 100% cocoa powder.
news
Urban architecture
57
Young Designers Listen up!
Welness
A New Fashion
Sweating in Topolšcica
Fashion
“You design an original urban installation that serves a public purpose. We will build it,” says Trimo, constructor and the manufacturer of roofs, facades, modular units. The international competition, Trimo Urban Crash challengea students to prepare a solution for an original urban installation by until 31 January 2011. The winning project will be built by Trimo in residential district of Ljubljana. The winner will also receive a scholarship for the prestigious London School of Architecture, and all finalists will be able to participate in the architectural workshop in Slovenia. This year’s theme for the best building competition is “the tribune of life”, in the Fužine district, the expressive multicultural residential part of Ljubljana, Slovenia’s capital. “The building has to connect various topics such as benches for sports and cultural events, a meeting point for different generations, a place where different cultures come together, and an answer to the problem of modern dormitory suburbs in Europe, through its form and intent,” said Miloš Ebner, Trimo Chief Innovation Officer. More on the corporate website.
Garments by a famous Italian designer are to be available in Slovenia for the first time. Patrizia Pepe designs will be on sale at the Midas store in Ljubljana. The brand – which encompasses a varied colour palette and a range of items – describes itself as “glamorous, sexy, strongwilled, humorous, and both professionally and personally ambitious.” The designer already sells its products across the world, including at the world renowned Harrods department store in London.
Skiing
Another oasis of peace, relaxation and joys appeared on the map of Slovenian wellness centres. Terme Toploščica Spa introduces a brand new wellness centre with 15 saunas with a view to a green surroundings. The saunas include special arrangements for the disabled as well as separated VIP areas. Massages, ayurveda, and fitness are normally included. The centre emphasizes their staff is always ready to show you around and teach you the proper techniques of sauna art. The new facility features two small congress halls, a teahouse and a wellness restaurant.
Join the team
Fans of winter and winter activities are sure to be excited by the launch of The Slovenia Times Ski Team. For the team’s first season three exclusive programmes are on offer. For all the ladies who want to ski as well have a great time with their friends and be spoiled in every possible way, we present Ladies Ski Weekend. Adrenaline junkies, meanwhile, will revel in two packages exclusive on the Slovenian market: Heli Skiing in Canada and Backcountry Sail-2-Ski experience. Find out more in November’s issue of The Slovenia Times and in Winter Guide 2011, coming out in December.
November 2010
Dine
58 14 Days
wit h St yle Promenada Gourmet Restaurant Cesta svobode 15, Bled Tel: +386 (0)4 579 18 39 restavracija.promenada@hotelibled.com www.sava-hotels-resorts.com Open Tuesday to Sunday: 12pm–10pm Food type continental Price range five-course tasting menu EUR 35 Reservations highly recommended
Potato chip, anchor fish, fennel sauce
Red cabbage, fig, leek sprouts, truffles sauce delicious, goose liver
Lobster Canelones with a sauce of carrot, pistachio and celery
Lamb ribs in a herb crust, green peppers and roasted pumpkins
Meringue with fruits and ice cream
Promenada Gourmet Restaurant Restaurant a la Chef
The Promenada Gourmet restaurant in Bled is small in size but great in what it offers: masters of both cooking and service, where no detail is overlooked, who are ready to take you to undiscovered culinary worlds. Very few restaurants bear the name of their chefs in their names. It sounds so egotistical, but it is rarely so: only the most confident people can put their name at stake. If you are not ready to stand behind your creations under any circumstances, it is better to remain anonymous. Andrej Kuhar is one of the few names in the Slovenian chefs’ hall of fame. Once a curious young talent, in the 1960s he found Slovenia too small to carry out his exploration of culinary secrets and decided to see what was going on in (West) Germany. Unexpectedly, he found himself on the barricades of a revolution. Chefs like Paul Bochus and Eckart Witzigmann were pulling Germany out of culinary darkness, where sauerkraut and sausage cooks were hiding in cellars, far away from the dining rooms. In a matter of a few years, Germany became a culinary super power and Andrej Kuhar was entrusted with his first restaurant. He never missed an opportunity to advance in his art, which included volunteering in the best French restaurants. His Frankfurt restaurant was awarded a Michelin star seven years in a row. In another twist of fate, he has returned to Slovenia in 2006 to conduct some brief courses for hotel crews. Quite suddenly, he was put in a role of chef in the legendary Vila Bled, where he carried on his culinary accomplishments; among which, he created and sold the most expensive dinner ever in Slovenia. It sounds snobbish, but the menu with certain select ingredients, which cannot be trusted to anyone, justified the price. After the Vila changed its owner, Kuhar again found himself on his own,
finally with a chance to create and start his own restaurant in his home country.
Nomen est Omen
Gourmet Restaurant Promenada by Andrej Kuhar (his name literally means “Cook”) is exactly what its title says. In the humble manner of these times, he decided for a small, manageable place at a Bled hotspot, at the beginning of a walking zone stretching along the idyllic shore of Lake Bled. Although we visited on a cloudy autumn day, when Bled might have hidden some of its natural charm, and there weren’t many wanderers on the promenade itself, the atmosphere in the restaurant was warm and welcoming. The chef decided to let us discover the finest he has prepared this season. It all began with a potato crisp with an anchor and a streak of fennel sauce. A one-bite snack, which looks extremely delicious, but you must resist eating it immediately, until you have taken a good look at it from all angles. The design of the food here is superior. “Optically, the dish mobilizes your stomach juices,” says Kuhar, convinced that for this reason, good looking food tastes better. Our cold starter was sweet red cabbage with a fig, leek sprouts, truffle sauce and delicious soft goose liver. The cabbage’s lively red, nearly scarlet colour is one of the chef secrets he was ready to reveal: two days in a vinegar bath – essential for both look and taste.
In Vino Veritas
When the warm starter arrived, we were already deep into the experience
Top choice
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
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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
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In Issue 128
Castle Otočec Restaurant
with all our senses warmed up for the lobster canelones with a sauce of carrot, pistachio and celery. A combination, delicious already, but all the more exceptional with a glass of the light and fresh Cigoj’s Zelen 2005. The wine connoisseur in Mr Kuhar always knows the right combination. He would recommend a bottle from his increasing selections of dedicated wines, which currently stands at around sixty. Despite his cosmopolitan experience, his preference for local wine makes much sense. Kuhar says that the choice of good years is even more important than the label itself. The house wine in the restaurant is Rdeči Labod [Red Swan] a special blend of Cabernet Sauvignon, Modra Frankija, and Merlot, carefully selected and bottled for Sava Hotels. It was our companion to the main course: lamb ribs in an herb crust, peppers and roasted pumpkin. Perfect! And for the sweet finish, we were served a fresh, tasty and visually stunning meringue with fruit and ice cream.
a trainer. His culinary courses for amateurs could be an eye-opening experience for those wondering about the secrets of high-end culinary skills. Needless to say, one of the ideals behind this particular kitchen is preparation “from scratch”. Everything is made fresh, from basic ingredients, even the noodles. This art also requires good knowledge of the market and a constant seeking of the best ingredients you can purchase, which takes “time, nerves and luck.” Asked about Slovene cuisine in general, Kuhar is both complimentary and critical: “There are many good restaurants, but still too many fryers, sauces from tubes and ingredients of the worst quality. Rural tourism and their natural home-style food are doing a good job. But we need to nurture service – the waiter’s smile.” “Moreover,” he says, ”Slovene cuisine still find itself short of a foundational harmony of tastes and dishes... the concept of all courses.” However, this is not true for all restaurants. And certainly not for Promenada Gourmet.
A multitalented man
A simple job description of Andrej Kuhar might be “chef”; in fact, he is much more than that. His visual talent doesn’t surface only when sculpturing the food, but also when the restaurant interior is considered. This one is particularly trim and elegant, and a great use of a relatively small space; seating up to 35 guests. Quantity is simply not what the place is about; In essence, it is meant to be a multiple-course restaurant for those who are more than just hungry. Chef Kuhar’s has a multitude of talents; he is the author of three cookbooks and
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
Promenada Gourmet Restaurant Cesta svobode 15, Bled Tel: +386 (0)4 579 18 39 restavracija.promenada@hotelibled.com www.sava-hotels-resorts.com Open: Tuesday to Sunday: 12pm–10pm Andrej Kuhar
In Issue 124
60 PEOPLE
Ljuben Dimkaroski
Echoes from Prehistory Ljuben Dimkaroski is more than a professional trumpet player. As an artist he believes his mission is to unselfishly share his creations, which in his case are many and various. His latest discovery reaches beyond art and into the very history of the human race. By Jaka Terpinc
Determined to erase the adjective “probable” in front of the “flute” as the item was described, he took on further examination to precisely determine the system of playing on all flute’s holes. He had realised that everything on its fits to a human playing. The Slovenia Times
I
n 1995 a team of archeologists led by Professor Ivan Turk discovered an intriguing item – a bone segment with four holes which appeared to be a musical instrument. The find quickly became a matter of burning debates between experts about its creator and purpose. But what really took the breath of skeptics was when someone made the flute play – not just a few tones, but literally any tune we know… The man is Ljuben Dimkaroski, a Macedonian born artistic multi talent, a professional musician in the first place; a poet and carver among others. So goes the story: 14 years ago, when Mr Dimkaroski held an exhibition of his stone miniatures in the National Museum, he received a gift by the museum’s manager. It was a clay replica of that archaeological find, now dubbed the Divje Babe flute. Dimkaroski was excited by the gift, but paid little attention to it until one night he had a dream. He dreamt of playing this instrument. As he has woke up, he took the instrument and started playing on it the way he dreamed, so accomplish i ng someth i ng which, despite multiple attempts, no one had previously managed. “Awkward as it may sound, it is the truth,” he says. He soon found
he could play a musical scale of two and half octaves and chords. This really captured his interest as a musical expert. Dr Ivan Turk, who was already retired, at first seemed anything but interested in the achievement. But when he finally met Ljuben to hear him playing, they immediately headed to museum to take a look at the original, which brought another surprise. The original, unlike the replica, had another hole drilled in the bottom side of the flute. So the professor found another bone extracted from the same sixty thousand years old sediment as the flute, which they turned into a millimeter-matching replica that now serves as an active instrument.
Away with the doubt
The item wasn’t disputable as an archeological artifact but what bothered the scientists was whether this was a man-made instrument or just a bone randomly punched by an animal’s bite. A few tones played wasn’t enough proof this was an instrument. “I didn’t know what others were attempting with this instrument, which was actually an advantage,” says Ljuben Dimkaroski explaining his technique. The basic difference of
his approach was that he blew the flute from the other end and consequently discovered the purpose of the bottom hole. Determined to erase the adjective “probable” in front of the “flute” as the item was described, he took on further examination to precisely determine the system of playing on all flute’s holes. He had realised that everything on its fits to a human playing. No coincidence the instrument is made out of a young cave bear’s femur which is right for the human lips. Dimkaroski has experimented with other animal bones to determine that none of them actually serves the purpose better. He says it is up to anyone to believe or not that the bone as the musical instrument, yet he is determined to persuade the last of them. But especially after hearing him playing, very little evidence is left for the skeptics. Asked whether he can imagine what kind of music could be played back in the stone age, he comments: “Many people ask me how did I learn this and the response is, that my teacher died 60,000 years ago. My abilities allow me the expression by today’s musical language. There’s no evidence of what went on back then.”
PEOPLE 61 souvenir or an ideal gift on business and diplomatic level. What a great identifier of this nation! It could symbolically do more than a Lipizzaner.” However his music on this flute, call them concerts or demonstrations, receive more and more attention. Both cultural events and academic presentations to support archeological lectures are becoming frequent on his schedule. He has made over thirty presentations in Slovenia, four times he has been a guest in Berlin. Most recently, he visited China to attend a seminar of musical archeologists. Photo: Tomaž Lauko
The value of his research is also in recognising the mental capabilities of the Neanderthal, who apparently had a need for creativity and sonic expression. This compromises the theory that nothing such could happen before the cromagnon, who is archaeologically half younger. “I think this is a ritual instrument,” says Dimkaroski. “What I hold in my hands is their creative products and use it in the manner of today.” He can play everything a classical instrument is capable of, from arias to national anthems and folk songs. “I’m ready to show it to the world and don’t dodge the responsibility I took by that. When I started it, I know sparrows will fly towards me. But I am ready. I don’t want to come across a question I can’t answer.” That’s why he puts much effort in a very precise construction of replicas – he has made some 150 so far in wood and brown bear bone. No wonder Dimkaroski is convinced that too little is done by the authorities to take advantage of this item, which puts today’s Slovenia as a territory where the oldest musical instrument was used. “It could contribute to the country’s promotion, to make it a recognisable symbol, tourist attraction, a
A multi talent
Musical archeology seems to be the last addition on Ljuben Dimakorski’s curriculum vitae. After moving to Ljubljana as a student of the Music Academy, he graduated in trumpet with a full-feature concert, rare at a time. His music career led him to many positions, earning him a few enviable awards. He was the first trumpet in Ljubljana’s opera orchestra for over 30 years. Additionally he played in many chamber groups. He is a choir conductor, in two instances of choirs he established himself: Strune that cultivated Macedonian music, and Quartet Pella which revives the forgot-
ten music by both nations. All are successful and internationally acclaimed. His discography features two solo trumpet CDs and five by the choirs, not to mention a large number of appearances on compilations. And he has published three poetry collections and crafts miniatures in stones. He also builds ancient instruments to save them from oblivion. “There’s plenty of work”, he says with understatement, “yet I’m the sort of person who sees it.”
The original flute and its replica made out of the same material - prehistoric bear bone.
Jamski dvorec Mansion Located right next to the entrance into the Postojna Cave, there is the Jamski Dvorec Mansion, an event centre and a culinary paradise. Since 1928, the perfect setting for exclusive events, social gatherings and unforgettable gastronomic experiences. Enjoy the aromas and flavours of dishes that were once served to the lords of the manor!
November 2010
62 CULTURE
Kino Šiška
Year One The Centre for Urban Culture Kino Šiška, a charming place with attractive events, is proving itself an important cultural venue and a popular social place in Slovenia. By Jaka Terpinc benefits from its unique architecture. The cylindrical, declined auditorium ending with a wide stage contributes to great communication between performer and audience. And even a sold-out event leaves enough space for comfortable standing and movement in the hall. While the place itself does part of the job, the programming effort is still essential to success. Not just anyone can take advantage of Kino Šiška: “We are not a mailbox. We have established ourselves as event producers, meaning that the selection process is done in many ways,” says Kardum, well aware that they have embarked on a long and important journey to make the most of the asset with which they have been entrusted. “We all should strive to make an effort, which will last several years, that is to profile its contents and present them to the audience. “
The Future A concert at Kino Šiška’s Katedrala hall
K
ino Šiška, a cinema auditorium which underwent a transformation into the centre of Urban Culture started with many doubts and fears. Was it needed at all? Would it steal the audience of other similar institutions? And most of all – can it continue to thrive, after the obvious initial and much advertised hype? This question somehow made sense, as the launch was really intense in attractive events. Summary statistics from the first year show the Centre held 321 events, among them 123 concerts,
Simon Kardum, General Manager The Slovenia Times
many full (12 completely sold out). 1,300 people on the stage – a third from Slovenia – and 57,000 in the audience, most of them aged between 18 and 46 years. Theatre, intermedia performancs, dance, exhibition, film, video, press conferences, celebrations. Laibach, Jan Garbarek, Mudhoney, Nouvelle Vague, Megadeth, Tindersticks, Tiger Lillies and so on. A good half of the events the results of co-productions. 60 percent selfsufficient, the rest covered by the Ljubljana Municipality, which is regarded as a solid score comparing to similar institutions. Simon Kardum, the General Manager of the Centre says the statistics certainly disprove the theory that the Centre isn’t needed. It has become “a player on the scene attracting a varied audience. It has filled certain niches with its decent capacity and equipment.” Big enough and at the same time and small enough, Kino Šiška occupies the boundary between a club and a concert hall. Any visitor to Ljubljana’s clubs cannot deny that no other institution has suffered since the establishment of the Centre. After all, its programming team has introduced a series
of artists, which are not among the “regulars” in the town. The reputation of Kino Šiška evidently reaches echoes beyond the country’s borders as many guests from the neighbourhood seem to have become regulars at the more exclusive events. Nitzer Ebb, who performed in March, gathered a bigger audience from Croatia than from Slovenia itself.
The magic ingredients
After attending a concert at Kino Šiška it is clear the Centre
Kino Šiška’s team has proven it can keep up the pace. While year two of Kino Šiška will incude a number of anticipated events for this autumn, its production team doesn’t hide its ambition to bring events to even larger places. Such is the co-production of Nick Cave’s Grinderman in Križanke, but the ambition goes even further, all the way to the newly built Stožice giant. An important addition marking the first anniversary is the Kiosk, a stand offering magazines, comic books and other stuff for culture-hungry folks who flock to this impressive new Centre.
Kiosk, an even better reason to visit Kino Šiška during the day
EVENTS 63 CAll CEntRE:
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WHEREVER YOU ARE It doesn't matter from where you call, whom you call is what matters. Book online and select from the widest selection of accommodation in Slovenia: hotels//self contained units// rooms// tourist farm//youth hostels// guesthouses// B&Bs.
November 2010
Carefree holidays are just a call or click away!
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64 EVENTS Exhibition
Miniature Books Fri 15 Oct – Sun 5 Dec, City Museum, Ljubljana, This exhibition will show the historical development of miniature books, from original Sumerian clay tablets dating from around 2400 BC to the Bible on a chip measuring five by five millimetres. It will bring together 1,300 different miniature books from 52 countries printed from the 17th century to the present day. The exhibition will present the skills of masters of printing, illuminators, and miniature book designers such as Karolý Andrusko, who alone created 220 miniature books decorated with woodcuts and linocuts. Also presented will be miniature book publishers.
Design
Design Month 2010 Thu 21 Oct–Sun 21 Nov, various venues, Ljubljana, no admission The events organized as part of Design Month, intended for both the expert and general public, showcase the achievements of Slovenian design, the country’s best designers and the companies pursuing the most interesting and innovative design strategies. The programme of events includes a conference, lectures by distinguished designers from around the world, an exhibition and many accompanying events taking place all over the city. The best entrants according to several expert juries receive awards in multiple categories.
Wine tasting
Ljubljana Wine Route Sat 6 Nov at 10am, Old city centre, Ljubljana, no admission The event entitled Ljubljana Wine Route (Ljubljanska vinska pot) marks St. Martin’s Day, when, according to Slovenian tradition, grape must officially turns to wine. The event includes tastings of young wine and culinary delights served from stalls set up in front of the old city centre’s bars and restaurants. Ljubljana Wine Route, held annually in Ljubljana city centre, on the banks of the river Ljubljanica, brings together winemakers from all the winegrowing regions of Slovenia. Apart from wines, it also features traditional Slovenian dishes. Wines and food are available to visitors The Slovenia Times
both for tasting and purchase at favourable prices.
developed in the UK as a unique mixture of hip hop, house and ambient music.
Vocal music
Poetry
Mycale
The Unforgettable
Tue 9 Nov at 8.30pm, Cankarjev dom, Ljubljana, EUR 11–14 Get ready for a whole new approach to Masada music! Expressive and passionate, Basya Schecter, Ayelet Rose Gottlieb, Malika Zarra and Sofia Rei Koutsovitis are four of the most creative vocalists around. Each the leader of a dynamic band of their own, they come together here in an intimate a cappella setting to interpret eleven songs from Zorn’s remarkable Book of Angels. With lyrics in Hebrew, Yiddish, Ladino, French and Arabic drawn from Rumi, Fernando Pessoa, The Hebrew Bible and more, the Masada vocal project is perhaps the most hauntingly beautiful instalment in the entire Angels series.
Film festival
Ljubljana International Film Festival - LIFFe Wed 9 Nov–Sun 21 Nov, various locations, Ljubljana Every year, the Ljubljana International Film Festival, better known as LIFFe, adds vibrancy to the city’s autumn cultural life by presenting the best and the latest in European and international film production. The main competition strand, Perspectives, will feature films by emerging film directors, who will compete for the Kingfisher (Vodomec) award. Other awards to be handed out include the FIPRESCI award, voted for by a panel of judges from the International Federation of Film Critics, the Dragon (Zmaj) audience award, and the Best Short Film Award.
Rock
Joe Satriani Wed 10 Nov at 8pm, Dvorana Tivoli sports hall, Ljubljana, EUR 34–39 Joe Satriani is appreciated as one of the technically most accomplished guitarists in the history of rock music. Satriani rose to fame in the 1980s and 1990s with a series of brilliant mostly instrumental albums which left an indelible mark on guitar rock music
Fri 12, 19 and 26 Nov at 8pm, Cankarjev dom, Ljubljana, EUR 15 of the time and spawned numerous imitators. Over the course of his career, which he began modestly, as a local talent and guitar teacher, Satriani has collaborated with many super-star artists and bands including, among others, Deep Purple, Mick Jagger, Steve Vai (G3), Robert Fripp (G3), Eric Johnson (G3) and others.
Book exhibition
21st Frankfurt after Frankfurt Wed 10 Nov–Sat 13 Nov, Cankarjev dom, Ljubljana The 21st annual event titled Frankfurt after Frankfurt is a sales exhibition of books. It will feature 10,000 non-Slovenian book titles which were mostly presented at two of the largest European book fairs, in Frankfurt and London. You will be able to buy books at reasonable prices and see what has been going on in the world of literature.
Trip hop
Tricky Thu 11 Nov at 9pm, Kino Šiška, Ljubljana, EUR 24–35 Tricky made a name for himself in the mid-1990s as one of the pioneers of the Bristol trip-hop sound along with Massive Attack and Portishead. His Ljubljana concert will be part of the tour presenting his new album Mixed Race. Tricky is still viewed by critics as one of the most interesting exponents of trip hop, a dark style of electronic music characterized by a slow rhythm and notably melancholic vocals which
An evening of orchestrated poetry by Slovenian female authors will be performed by Vita Mavrič, vocals; Jani Kovačič, vocals, guitar; Tomaž Pinter, viola, violin, pipe, saw, mandolin; Marko Brdnik, accordion; Marko Gregorič, double bass. The concept was devised by Jani Kovačič and the music written by Jani Kovačič, Jernej Brence, Igor Lunder. The main criterion in the selection of poems for the Anthology was the diversity of subject-matter and female sensitivity. Interpreted by one of the greatest Slovenian chanteuses, Vita Mavrič, the female poetry will be given a new lease on life.
Classical
Sao Paulo State Symphony Orchestra Sat 13 Nov at 8pm, Cankarjev dom, Ljubljana, EUR 20–56 Gramophone, an English publication devoted to classical music, recently acknowledged the Sao Paulo State Symphony Orchestra as one of the three up-and-coming ensembles among the world’s greatest orchestras. In its over fifty-year history of experiencing ups and downs, this proponent and ambassador of Brazilian culture has been upholding the venerable tradition of this South American country, marrying it with the latest achievements of the world music scene.
Rock
Joe Cocker Mon 15 Nov at 8pm, Stožice Sports Park Arena, Ljubljana, EUR 35–56 In his Ljubljana concert, Joe Cocker, credited with having one of the best rock voices, will perform his evergreen songs as well as songs from his latest album, Hard Knocks. Joe Cocker rose to fame in the 1960s with his brilliant reworking of The Beatles’ song With a Little Help from My Friends. He wrote himself into rock music history with his unique voice and re-workings of other artists’ tunes,
KINO ŠIŠKA PROGRAMME
Sunday, 07. November 2010 at 21:00 CARIBOU (City Slang/ CDN) Monday, 08. November 2010 at 21:00 THERION (S) / Loch / Vosto k / Leprous Tuesday, 09. November 2010 at 21:00 JINX (HR) Thursday, 11. November 201 0 at 21:00 TRICKY (Domino, UK) Monday, 22. November 2010 at 19:00 DK: 40 - digital exebiton Wednesday, 24. November 2 010 at 17:00 and 21:00 BIG FOOT MAMA, premiere of a feature film about the band Tuesday, 30. November 2010 at 21:00 WHITE LIES (UK) Friday, 03. December 2010 at 21:00 YANN TIERSEN (F) Tuesday, 07. December 2010 at 18:00 FINNTROLL, SAMAEL, ROTTIN G CHRIST, METSATÖLL and N OTH
NEGAL
Box office 030 310 110 · w ww.kinosiska.si
66 EVENTS many of which became hits only after he had rearranged them.
Classical
Italian Guitar Duo Mon 15 Nov at 7.30pm, Cankarjev dom, Ljubljana, EUR 7–16 The guitar duo of Agostino Valente and Goran Listeš will present some of the best classical pieces, arranged for two guitars. The programme will consist of Jacques Ibert: 2 Paraboles; Fernando Sor: L’Encouragement, Op. 34; Joaquin Rodrigo: Tonadilla; Ferdinando Carulli; Serenata, Op. 96 and Astor Piazzolla’s Tango Suite. We will be hearing some very diverse views on classical music, such as Piazzolla’s fascination with tango.
Jazz
Marc Ribot & Sunship Tue 16 Nov at 8.30pm, Cankarjev dom, Ljubljana, EUR 15–18 Named after John Coltrane’s album Sunship, which was released four years after his death, Marc Ribot’s SunShip features neither tenor saxophone nor piano. Instead he enlists a second guitarist, Mary Halvorson, as well as Jason Ajemian on upright bass and Chad Taylor on drums. He assumes an unambiguous lead voice, as Coltrane did, but his vision for the band descends from multiple stylistic platforms: not just polyrhythmic post-bop but also Cuban music, psychedelic surfrock, maybe a bit of vintage punk.
Exhibition
Lidija Osterc (1928–2006) Wed 17 Nov–Sun 19 Dec, Cankarjev dom, Ljubljana, EUR 11–14
The celebrated Slovenian illustrator, Lidija Osterc, provided artwork for some of the most famed Slovenian stories, such as Hišica iz kock and Očala tete Bajavaje by Ela Peroci, Desetnica by Fran Milčinski, and Abeceda by Niko Grafenauer. Adapted to children’s comprehensive ability, her style of creativity was pronouncedly idiosyncratic, poetical and decorative; she created stylised vegetal worlds, geometrically shaped objects, typified fairy-tale characters, topographically displaced figures, and spaces moulded with objects.
Classical
Dubravka Tomšič Wed 17 Nov at 7.30pm, Cankarjev dom, Ljubljana, EUR 8–23 This December, Dubravka Tomšič will celebrate the 65th anniversary of her first solo public performance given as a five-year-old in her native Dubrovnik. For decades this extraordinary artist has held the pre-eminent position of first lady of Slovenian musicians, responsible for spreading the repute of Slovenian piano artistry throughout all world continents. Dubravka Tomšič has released as many as 90 CDs for notable labels and has received many awards.
Rock
Prljavo kazalište Thu 18 Nov at 8pm, Cvetličarna, Ljubljana, EUR 23–26 Prljavo kazalište is one of the biggest names in Yugoslavian music and is still considered to be one of the most popular Croatian bands nowadays. They started out as a punk band, but the crowds soon took to their music and the band started to change accordingly – into a more mainstream rock band. Throughout their history, they have released a number of hit singles and records that the crowds all over Yugoslavia still like to hear.
Culinary festival
3rd Culinary Festival Thu 18 Nov and Fri 19 Nov at 1pm, Hotel Slon Best Western Premier and Grand hotel Union – Executive, Ljubljana Ljubljana’s Culinary Festival (Festival kulinarike), held simultaneously with the annual Slovenian Wine Festival, will complement the latter with tasting sessions of culinary creations. It will The Slovenia Times
present selected makers of cheese, prosciutto and other dry-cured meat products, oil, bread, vinegar, honey, chocolate, truffle products and other delicacies from Slovenia and abroad. Apart from being a showcase of selected culinary produce from mainly Slovenian farms, the Culinary Festival is a business event and an opportunity for a premium gourmet experience for a wide-ranging audience.
Wine tasting
13th Slovenian Wine Festival Thu 18 Nov and Fri 19 Nov at 1pm, Hotel Slon Best Western Premier and Grand hotel Union – Executive, Ljubljana The annual Slovenian Wine Festival (Slovenski festival vin) will bring together Slovenia’s top winegrowers and winemakers and selected winemakers from abroad, who will be offering their wines for tasting. The festival will be accompanied by a programme of educational events, including guided tasting sessions, lectures and workshops. Slovenian wines are not generally known around the world, but due to their diversity and excellent tastes they attract a lot of attention wherever they are presented. At the Slovenian Wine Festival they are available for tasting to both the general public and connoisseurs, experts and businessmen.
Pop
Robin Gibb Mon 22 Nov at 7.30pm, Stožice Sports Park Arena, Ljubljana, EUR 22–45 Robin Gibb is one half of the Bee Gees. He is considered to be the mastermind behind most of their most successful endeavours. The Bee Gees are still most famous for their disco hit Staying Alive, but the brothers released a host of great albums after that, some very ambitious and sophisticated as well. After the death of the third Bee Gee (Maurice Gibb), the two Gibb brothers called it a day for a while, but decided to make a comeback. Unfortunately, Barry will not be able to make it this time round, but Robin will undoubtedly put on a good show.
World music
Afrocubism Tue 23 Nov at 8.15pm, Cankarjev dom, Ljubljana, EUR 15–45
Spectacular concert by stellar Cuban and Malian instrumentalists headed by guitarist and singer Eliades Ochoa (the only surviving original member of the Buena Vista Social Club), Toumani Diabate (most renowned African kora player), Bassekou Kouyate (finest African ngoni player) and legendary Djelimady Tounkara, who formed the Super Rail Band de Bamako.
Experimental
December Soul Tue 23 Nov at 8.30pm, Cankarjev dom, Ljubljana, EUR 11–14 After notable editions marking the 30th anniversary of the percussionist’s creativity, resoundingly successful tours and appearances with the BalanescuGirotto-Kaučič trio as well as the Kombo orchestra, Zlatko Kaučič continues to pursue his illustrious musical career in a new project, December Soul. The trio features outstanding Italian classical and jazz pianist Stefano Battaglia, winner of the 1997 Brussels National Radio Award for Best Young European Pianist, Zlatko Kaučič on drums and Paulino Dalla Porta on double bass.
Theatre performance
Pippo Delbono: War (Guerra) Thu 25 Nov and Fri 26 Nov at 8pm, Cankarjev dom, Ljubljana, EUR 13–24 Pippo Delbono is only interested in living, urgent, and real theatre. Such is also The War, perhaps his most celebrated production. It is devised as a journey, bringing theatre closer to life. On an exposed stage, performers, images, music and words, texts by saints, revolutionaries, heroes and martyrs fight an “inner war, which is also the war of the world”. A complex and heart-rending creation rendered by an outstanding theatre company, composed of Delbono’s longstanding actor colleagues and people whom he found “lost in the street” and adopted.
Electronic
Scott Langley – Ministry of Sound Fri 26 Nov at 11pm, Cvetličarna, Ljubljana, EUR 5–10 DJ Scott Langley is a growing international DJ with a great wealth of 15 years experience, playing
EVENTS 67 all over the world. Scott started his journey into the dance scene at the early age of 13, travelling to the illegal acid house raves. It was only a matter of time till Scott got his first pair of Technic 1210’s and within no time at all he was spinning at some of the Country’s well known events.
Rock
Paul Gilbert Tue 30 Nov at 9pm, Cvetličarna, Ljubljana, EUR 25 Paul Gilbert is considered to be one of the finest and one of the fastest guitarists around. His skills first shone through with the band Racer X, which he left in 1988. He then formed the band Mr. Big, which went on to be a much greater success, spawning such songs as the MTV hit To Be with You. He left Mr. Big in 1997 to pursue a solo career, but has recently reunited with his ex band mates. This solo concert will allow the audience to witness his uncensored guitar skills up close.
Pop
White Lies Tue 30 Nov at 9pm, Kino Šiška, Ljubljana, EUR 28–36 The London trio White Lies mostly draws from the heritage of bands like Joy Division, The Teardrop Explodes and Echo&the Bunnymen, but they also don’t deny the influences of the more fashionable side of music from the 1980s (Duran Duran, for example). They were also influenced by some of the darker styles from the 1990s (Portishead). The band consists of Harry McVeigh (vocals, guitar), Charles Cave (bass) and Jack Lawrence Brown (drums and keyboards). Going on before them will be the eclectic Slovene band Sphericube.
Jazz
Eduardo Raon Tue 30 Nov at 8.30pm, Cankarjev dom, Ljubljana, EUR 11–14 Eduardo Raon performed in Slovenia as bandleader of outstanding Powertrio from Lisbon, appearing last year at the Cerkno Jazz Festival. Recently, Raon has been extensively pursuing the career of a soloist. Among others he has met the inventor of daxophone, Hans Reichl, and has been playing this phenomenal musical instrument of the friction
idiophones category also at concerts.
Experimental
Fair
Fri 3 Dec at 9pm, Kino Šiška, Ljubljana, EUR 18.4–26
Yann Tiersen
26th Slovene Book Fair Wed 1 Dec–Sun 5 Dec, Cankarjev dom, Ljubljana, no admission Organised by Society of Publishers and Booksellers of the Chamber of Commerce of Slovenia and Cankarjev dom, The Slovenian Book Fair brings together the latest in Slovenian book publishing. The accompanying programme features exhibitions, debates on books within the Debate Café, various events within the Publishers’ Academy, the Reference Book Tracker and the School Book Tracker programmes, and the announcements of this year’s award winners.
Yann Tiersen is one of the finest composers France has to offer nowadays. In his career, he has tackled various styles, such as classical, jazz, avant-garde, minimalism, post rock and several others and succeeded in excelling at every one of his attempts. He is perhaps best known for the soundtrack to the film Amelie. This multi-instrumentalist has many different facets to his music and it’s anyone’s guess which face we will be seeing at this concert. Accompanying him during the concert will be Stephane Bouvier (bass), Christine Ott (ondes martenot), Matt Elliott / Third Eye Foundation (guitar), Dave Collingwood (drums) & Robin Allender / Gravenhurst (guitar).
This performance brings together a unique combination of a literary work, classical music and rock. The story is based on Richard Bach’s book Jonathan Livingston Seagull. The musical element explores the co-dependence of classical music (Bach, Mozart and RimskyKorsakov) and contemporary rock. The music was written by the popular Slovenian band Siddharta, which will also be playing at this performance.
Classical
Saint Nicholas Charity Concert Sat 4 Dec, Postojna Cave
Rock
Classical
Livingston’s Last Kiss
The Cadence Ensemble Wed 1 Dec at 7.30pm, Cankarjev dom, Ljubljana, EUR 10–20
Fri 3 Dec and Sat 4 Dec at 6pm, Cankarjev dom, Ljubljana, EUR 7.5
The traditional charity St. Nicholas concert will take place on December 4th in the beautiful manor Jamski dvorec, located by the entrance to the world famous tourist attraction Postojna cave.
The concluding Event of the Armenia Up Close Festival will present The Cadence Ensemble. The Ensemble was formed in February 2004 by five outstanding Armenian instrumentalists under the leadership of pianist Armen Babakhanian, initially to perform the works of Argentine composer Astor Piazzolla.
Classical
Slovenian Philharmonic Orchestra Thu 2 Dec and Fri 3 Dec at 7.30pm, Cankarjev dom, Ljubljana, EUR 10–33
C
M
Y
CM
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We will mark the 110th anniversary of the birth of this former director of the Slovenian Philharmonic Lucijan Marija Škerjanc (between 1950 and 1955) with the performance of two of his works. The cantata A Wreath of Sonnets is one of the central and formally most perfected musical settings of the texts of Slovenia’s greatest poet, Dr France Prešeren. The Concerto for Harp and Orchestra is one of a small number of Slovenian concert works for this instrument and represents a valuable contribution to the treasure trove of Slovenian music. CY
CMY
K
November 2010
68 SPORTS
Football
Highway to Poland and Ukraine The current situation in Euro 2012 Qualifiers seems more than promising for Slovenia. Still, there is a long way to go. By Milan Glamočanin
Photo: BOBO
S
lovenian football fans are rapturous again – the national football team is back on track to qualify for the 2012 European Championship in Poland and Ukraine. At the beginning of September, the story was way different. High expectations before first qualifying match against Northern Ireland in Maribor were soon vanquished, when Northern Irish Corry scored the only goal of the match, for a sensational defeat of the Slovenian team. The whole country was afraid of the next match against its greatest rivals, Serbia, coming up just three days later in Belgrade, but the team showed its character again. With brave and technically accomplished football, they were on the brink of great success, leading most of the game 0-1. In the last minutes of match Serbia equalized, but Slovenian team returned home with heads held high. In October, Slovenia faced two lower-ranked opponents. The match against the Faroe Islands,
Novaković scores yet another goal in a glorious qualifier against Faroe islands.
which Slovenia won 5-0 with young talent Tim Matavž scoring a classical hat-trick, was really just good training for next game against Estonia in Tallinn. The Estonians surprised many in Bel-
grade, where they beat the Serbian team 1-3; they were full of confidence before match against Slovenia. The confrontation in Tallinn was played in tough weather conditions and the performance was
great. Slovenia won by luck, with Estonia scoring an own goal. The win had a greater significance, because on the same day Slovenia’s main opponents Northern Ireland and Serbia did not have positive results. Northern Ireland played a surprising 1-1 draw at Faroe Islands, while the match between Italy and Serbia in Genoa, was cancelled because of brawling by Serbian hooligans. Serbia will now face a serious punishment and could well be disqualified from Euro 2012 qualifications. Slovenia is on the top of the table with 7 points from 4 matches, together with Italy who also has 7 point from 3 matches (the final decision about the cancelled Italy and Serbia match will be made on October 28th). Next March 25th, we will see the confrontation of group leader, when Italy is coming to play in Ljubljana. Three days later, Slovenia is travelling to Belfast, where they will try to avenge the defeat from Maribor.
Time for another SPORTO conference This year’s SPORTO conference, held on 29th and 30th November in Portorož, will see no shortage of interesting domestic and foreign top athletes and names from the world of sports marketing. As always, the conference will be energized by the competition for the SPORTO awards and a charity auction with a jersey signed by Lance Armstrong. The SPORTO Conference is a two-day regional event about the marketing and sponsorship of sports, which will be held for the seventh time. Among the important
The Slovenia Times
foreign speakers this year is the British marketing expert Ardija Kolaha. He, in addition to Philip Kotler and Seth Godin, was ranked among the top 50 gurus in the field of marketing by the Chartered Institute of Marketing. We will present an innovative campaign, “Der Hamburger Weg” (“The Hamburg Path”), about the football club HSV. There will be no lack of interesting Slovenian names either. The conference will host Aljoša Bagola, creative director and head of the advertising agency Pristop, and Tina Kumelj from Ljubljanske mlekarne, this year’s marketing director of the year. Much interest and attention will go athletes who will participate in a round table hosted by the publicist Esad Babačić. He will pose questions to Dejan Zavec, IBF world boxing champion, and Jani Brajkovič, Radio Shack team member and teammate of Lance Armstrong. Sara Isakovič and Anže Kopitar will participate in the conversation through live video transmission. They will discuss the broader role of athletes in society, the perception of athletes as idols, the relationship with the media and sponsors and
the role of an athlete at the end of their career. There will be also an interview with Igor Lukšič, Minister of Education and Sports, who will share his views on sport as a tool for promotion. A traditional contest for the SPORTO awards will take place within the conference in which the best sports marketing and sponsorship projects will be selected. For the fourth time in a row, the SPORTO charity auction will be held. After the football shoe signed by Ronaldinho, Roger Federer’s equipment and a ball signed by the current NBA basketball champions LA Lakers, the most interesting item this year is Lance Armstrong’s signed jersey.
SPORTS 69
In memoriam: Jure Robič
Death of an Icon With the passing of Jure Robič Slovenia has lost one of its toughest and most respected athletes.
I
n late September, endurance cyclist Jure Robič was killed in a collision with a car while training on a narrow mountain road near his native Jesenice. He was just 45 years old. Robič made his name as the winner of five Races Across America (RAAM). His first entry in the event – probably the most gruelling sporting competition in the world – came in 2003, when he finished second. He went on to win the 4,800 kilometre coast-tocoast race in 2004, 2005, 2007, 2008 and 2010. In 2009, he chose to pull out of the race rather than finishing second, claiming he had been unfairly penalised by organisers for infractions such as urinating in an undesignated place. He vowed not to take part again but ultimately went back earlier this year to “settle the matter”. After winning the 2010 race, he said he would only take part again if Lance Armstrong came too. Robič was also a winner of “Le Tour Direct”, an extreme version of the Tour de France. In 2005, just six weeks after his second RAAM victory, he won the 4,000 kilometre race on a course contrived from classic Tour de France stages. His winning time was 7 days, 19 hours and 20 minutes, during which he climbed some 42,000 vertical metres. He took victory in the race again in 2006, when it was renamed Le Tour Ultime. He still holds the 24-hour road cycling world record, standing at 834 kilometres. His strong will and incredible ability to push his body and psyche to the limit and beyond turned him into a true sports icon. “He would die on a bike and keep going,« said an official of Le Tour Direct. He was able to cycle the first 48 hours
of that race without sleeping and by the end had only had a total of around eight hours of rest. Such efforts weren’t without consequence. The further he got into a race, the shorter Robič’s temper became. He was also prone to hallucinations. More than once he leapt off his bicycle to do battle with threatening attackers who turned out to be mailboxes. Once he imagined he was being pursued by men with black beards on horseback – mujahedeen, he explained to his support team, who encouraged him to ride faster to keep ahead of them. “In a race, everything inside me comes out,” he said. “Good, bad, everything. My mind begins to do things on its own. I do not like it, but this is the way I must go to win the race.” In addition to races, Robič trained 335 days each year. On average, he trained seven or eight hours per day, covering some 250 kilometres and 2,500 vertical metres. Once, he climbed Mt. Stol (2,236 metres above sea level) 38 times in two months. Such rides allowed him to log some 45,000 kilometres annually – or one trip around the world. Robič began his career as a road cyclist. He was a member of the Slovenian national road cycling team between 1988 and 1994, the year he took up endurance cycling. He was very much a loner, something his close friends and relatives felt very strongly at times. His marriage ended in divorce, but resulted in a son who reportedly gave him the motivation to carry on his super-human sporting efforts. Robič was a soldier in the Slovene army until shortly before his death. His membership of its athletic corps allowed him to train
full time and kept him going financially as his wins (around 100 altogether) didn’t tend to bring significant monetary benefit. The reality was that he strugg led for f u nd s most of the time and he sometimes eve n b or r owe d money to do what he liked best. In terms of sporting achievements he will undoubtedly be best remembered for his RAAM victories. A book was written and a television documentary made during these epic races. Both mean that, although Robič is no longer with us, his exceptional achievements will live on.
Photo: BOBO
By Simon Demšar
Novemberr 2010
70
COLUMN
The White Circus is Back
Basketball
By Aleš Smerdel Institute for Promotion of Sport
It is that time of the year – we can already smell the snow in the air. It’s time to start thinking about putting on our skis and rushing down steep, icy pistes. From November onward, Saturday and Sunday mornings will once again be livelier, because the ski racing World Cup is back in town. We are entering a post-Olympic season, which has brought many changes to the competition. Some old legends have finished their careers (Marco Buchel, Cristoph Gruber), while many stars are returning after recovering from injuries (Kalle Palander, Jean-Baptiste Grange, Daniel Albrecht and others). However, the main favourites for the World Cup remain the same. For women, the top selection is very narrow; Lindsey Vonn and Maria Riesch are the main contenders for overall victory. The men’s situation is much different, however. The times of Aust rian domination ended a few years ago and there are a number of others, waiting for their chance to reach the very top of the World Cup. The main favourTina Maze remains the most reliable bet for the ites are last year’s generupcoming season in alpine skiing. al classification winner Swiss Carlo Janka, Norwegian Aksel Lund Svindal and Benjamin Raich. In my opinion, one of the big contenders for the very top could be the Croatian veteran Ivica Kostelic, who finally had a great pre-season training without any injuries. What about team Slovenia? A new president of the Slovenian Ski Federation was assigned after last year’s Olympic season. Tomaž Lovše brought financial stability and assigned a few ex-racers to the main positions of directors and coaches. Jure Košir is now the managing director of the Alpine section; most importantly, the communication inside the Slovenian Ski Federation is finally more professional, one result of which is the return of Tina Maze under the cover of the national team. Tina Maze is also the only Slovenian female racer who can count on the best results in all five disciplines. Her wish is to fight for top three in general classification. Tina had a great pre-season training in New Zealand’s South Island and she confirmed her good form on the first giant slalom of the season in Sölden, finishing 6th, just a few hundredths behind the victory podium. This summer, the men’s team was divided into two parts. The downhill racers spent their time in Chile, where they had great conditions for training. And so Andrej Jerman (won Bormio downhill last year) and last year’s Kitzbühel sensation (2nd in downhill), Andrej Šporn, are full of optimism at the beginning of the new season. The technical section of the team was in New Zealand, where they trained slalom and giant slalom. They are determined to return Slovenia back to the top of the technical disciplines, especially in slalom. The top event of the season will be the World Championship in Garmisch-Partenkirchen, Germany, where we plan to have serious medal contenders in Tina Maze and both downhill skiers. Everything is set for the new successes of Slovenian skiers.
The Slovenia Times
Time for the Historical Event? At the beginning of December 2010, we will find out whether Slovenia is going to host the biggest sporting event in its history – the 2013 European Basketball Championship. By Aleš Smerdel
A
t the moment, everything seems optimistic. In recent months, other candidates have kept on giving up, one by one. The last to withdraw from candidacy was Italy, after Croatia, Bosnia & Herzegovina, Germany and the Czech Republic. The situation was quite different a month ago, when Slovenia and Italy were the only ones to officially submit themselves as candidates for Eurobasket 2013. At that point, Italy was mentioned as the favourite, with regards to financing the project. Later, Italy quit because of its main problem – infrastructure. The biggest sport hall in Rome, where the final round would be played, has a capacity of only 10,000 people,
while the FIBA Europe regulations require 12,000. The original plan was to build a new sport hall, but a financial consensus between the Italian government and the city of Rome could not be reached. Slovenia, however, has a different kind of problem. There is a brand new sport hall in Ljubljana, which meets FIBA’s Europe standards for organizing the final round. The sport halls for the primary round of competition are more problematic. The hall in Celje is the only one that holds the required 5,000 spectators. Luckily, many municipalities of Slovenia have great interest in hosting the primary round of competition. Cities like Ptuj, Novo Mesto, Maribor, Koper and even Jesenice are
SPORTS 71 ready to build new sport halls or to renovate their old ones in order to meet the FIBA Europe criteria. In November, the FIBA Europe delegation will visit Slovenia to check all the candidate cities and sport halls. The final decision will be made at the beginning of December by the FIBA European board in Munich. In the meantime, the Basketball Federation of Slovenia will try to convince the government to financially support the project. The primary plan is that the Slovenian government would finance the costs with regards to FIBA Europe (EUR 8 million, for marketing promotion of event and for the promotion of basketball in Europe), while the Basketball Federation of Slovenia will cover the costs of organization (approximately EUR 7.5 million). The first projections shows that the minimum income, including hotels, restaurants, tickets, transport, shops, tourist agencies etc. would be at least EUR 30 million. The promotional benefits for Slovenian tourism and the economy are far greater than those numbers. Spain made a review of the championship they organized in 2007; the marketing exposure was valued at more than EUR 230 million. The basketball federation has already been in contact with the Slovenian Tourist Organization and developed the official slogan: “I feel basketball”.
Volleyball – CEV Champions League
New Expedition ahead of ACH Volley The last of the most popular club competitions in Europe begins in November. Slovenes will be able to cheer for their ACH Volley in the most prestigious volleyball club competition – the CEV Champions League. By Miha Granfola
L
jubljana is once again filled with elite sports events After Krim, who are successfully competing in the women’s handball Champions League and Union Olimpija, who started the basketball Euroleague with a magical win over Efes Pilsen, ACH Volley will be the third team to host famous European opponents in Stožice Hall. ACH Volley is starting a new season on the wings of last year’s
sensational result, when they qualified for the Champions League Final 4, and finished 4th in Europe – a great result, but hard to repeat. The team have sustained a few important changes in its roster. First of all, a new head coach was assigned. ACH Volley’s legendary Glenn Hoag accepted a new challenge of coaching the national team of Canada; his place was taken by Montenegrian Igor
Kolaković, also the head coach of the Serbian national team, which finished 3rd in this year’s World Championship. Together with Kolaković, three players from the Serbian national team signed to ACH Volley. Vlado Petković came as a substitute for his older brother Veljko Petković, who moved to Budvanska Rivijera. Milan Rašić also played for Serbia in the World Championship, while Uroš Kovačević, at the age of 17, is recognized as one of the world’s biggest talents. Also newly signed is 215 cm-tall Dutch national team player, Kay Van Dijk. Together with the players from last year’s roster, the team will try to finish first in the group stage of the CEV Champions League, which would mean that they could be candidates for the Final 4 in Ljubljana this year. Their contenders for the first place in Group C are prominent teams from Montenegro – Budvanska Rivijera, Greece – Olympiacos and from Poland – Jastrzebski, who will attract crowds to fill Stožice Hall with 12,000 volleyball fans.
Table Games
The Mind Sport The rainy day offered a perfect atmosphere for concentration, calm nerves and decisive moves of black and white pieces on the board, as the international Draughts tournament took place in Ljubljana.
Photo: Maja Kaplan
“
You only need forty corks of two kinds, hundred squares on the board, and you can already play draughts. It’s a game that requires a little investment, but brings some much reward in terms of mind development and strategic thinking, “ announced wittingly his Excellency Mr. Jos Douma at the opening on the Draughts Tournament, held in Ljubljana on the last weekend of September. The event was sponsored by the Embassy of the Kingdom of the Netherlands, a country with a wealthy tradition of the game. The special guest of the tournament, Mr. Harm Wiersma, a six times world champion, played a simul-
tane game against eight players at once. After a two and a half hour walk from a board to a board, plotting on opponents, slowly setting a trap for them, he finally managed to win seven of them, while playing a draw against Slovene champion Bart Stegeman, a Dutchman living in Ljubljana. Spectacular performance continued with a blitz tournament, won by a 78 years old Italian master Walter Zorn. The tournament, enthusiastically organized by the Draughts Federation of Slovenia, demonstrated a sport, where mind is more important than muscles, where players sweat from tension more than from physical strain. November 2010
72 SPORTS Football
Slovenia – Georgia 17 Nov at 8 pm, Stadium Bonifika, Koper On the new Fifa World ranking table, Slovenia owns a new record - a fabulous 15th place. Behind Slovenia are nations like Italy, France, Serbia and the USA. New challenge in front of the Slovenian team is a friendly match with Georgia. The teams met more than ten years ago; this is going to be the second time, again on the same location. The reason is a new stadium of Bonifika which opened just a few weeks ago. Matjaž Kek and his players are dedicated to continue with a series of good results. This match may be a great opportunity to try out some of the talented young players and new tactical systems. The match is already a part of preparations for a spectacular qualifying game against Italy in Ljubljana next March.
Football, Premier League
NK Maribor – Domžale 20 Nov at 8 pm, Ljudski vrt, Maribor, EUR 10
less than average performances. It will be interesting to see a clash of two talented young Olimpija’s coaches against their mentor Bojan Prašnikar. Both teams have many extremely talented youngsters on their rosters.
Basketball, NLB League Basketball, Turkish Airlines Euroleague
Union Olimpija – Budućnost (Mng)
Union Olimpija – PE Valencia (Esp)
27 Nov at 8pm, ŠRC Stožice, Ljubljana, EUR 3-10
17 Nov at 8 pm, ŠRC Stožice, Ljubljana, EUR 7-35 A dream start of a season is behind Union Olimpija. Three victories at the beginning of NLB League and a dramatic win over Efes Pilsen in an opening match of the Euroleague. Something no one expected just over a month ago. The Spanish team started a European season with a big home defeat against Panathinaikos. They will be looking to compensate the points they lost at home in Ljubljana. Union Olimpija needs to stop them if they plan to reach the TOP 16. Is this going to be another sold out match in Stožice?
Basketball, Turkish Airlines Euroleague
Union Olimpija – AJ Milano (Ita) 1 Dec at 8 pm, ŠRC Stožice, Ljubljana, EUR 7-35
A match between the two topplaced teams of the Premier League. It looks like Domžale will be the only Maribor’s contenders for this year’s title. Despite Domžale dominated on the first match one month ago, it ended with a late winning goal for Maribor. Some of the stars of Domžale are returning to the city where their career began which makes the match even more interesting.
It is the first match of the second leg games and Union Olimpija plays at home. AJ Milano started with an impressive victory over CSKA Moscow in a first round of Euroleague. The Italian team that is mostly made of foreign players is always a though opponent. But on the other hand, not a lot of Italian teams won in Ljubljana in past 15 years. Definitely one of the decisive matches of the European season for both clubs.
Basketball, Eurocup Challenge
Krka - Zagreb (Cro) Football, Premier League
Olimpija Ljubljana – Rudar Velenje 27 Nov at 8 pm, Stadium Stožice, Ljubljana, EUR 10 Dušan Kosič and Aleš Čeh are doing their best to bring Olimpija to the top section of the league table. On the other side, Rudar Velenje oscillates from good to The Slovenia Times
meeting this year finished with a last second victory of Krka. Zagreb has a lot of experienced Croatian players which will look for revenge in the European competition.
23 Nov at 7 pm, Leon Štukelj Hall, Novo mesto, EUR 6 After many years Slovenia has more than one team playing in Europe. Eurocup is a third-strongest European basketball competition which mostly brings together teams from the Central and Eastern Europe. The opponent of Krka Novo mesto is a well known club from Zagreb since both teams play in the regional NLB League. Their first
The new home of Krim handball team is Stožice where two totally different matches where played in October. An opening one against Russian team was a great success, the second match went in a different direction. The Hungarian team Györi gave the young team from Ljubljana no chance for success. Team of Podravka is probably the weakest opponent in this group, so anything less than Krim’s triumph would be a surprising result.
Volleyball, CEV Champions League
ACH Volley – Budvanska Rivijera (Mng) 24 Nov at 8.15 pm, ŠRC Stožice, Ljubljana, free entrance
After first rounds Union Olimpija and Budućnost are both at the very top of NLB League table. Besides Partizan, both teams are main candidates to qualify for Final 4. Union Olimpija competes in two competitions, so younger players (Salin, Murić, Vrkić) could get more opportunities for playing in NLB League, while others will try to rest a bit before next Euroleague challenges.
Handball, Champions League Men
Celje Pivovarna Laško – Chambery Savoie HB (Fra) 27 Nov at 7.15 pm, Sports Hall Pod Golovcem, Celje, EUR 7,5-10 After an impressive start of European season with a win over Kielce, Barcelona and Kiel brought Celje players down to earth. The French team of Chambery is coming to Slovenia. This will be one of the decisive matches of the season. Anything else but a victory would probably mean that Celje PL is already out of this year Champions League.
Handball, Champions League Women
Krim Mercator – Podravka Vegeta (Cro) 13 Nov at 6.15 pm, ŠRC Stožice, Ljubljana, EUR 5
After handball matches in Champions League and basketball matches in Euroleague, yet another elite club competition is coming to Stožice, volleyball CEV Champions League. ACH Volley is determined to make a new surprising European result and sell out the 12thousand-seater hall in Stožice. The first chance will be a match against the Slovenian national team head coach Veselin Vuković who is also a head coach of Budvanska Rivijera. Due to the fact that 90 percent of Slovenian national team come from ACH Volley, the match will have an even bigger charm. There is no entrance fee.
Ice Hockey, EBEL League Acroni Jesenice – SAPA Fehervar (Hun) 7 Nov at 6 pm, Podmežakla Sports Hall, Jesenice, EUR 5-8 Acroni Jesenice – Vienna Capitals (Aus) 26 Nov at 7.15 pm, Podmežakla Sports Hall, Jesenice, EUR 5-8 Tilia Olimpija – Graz 99ers (Aus) 21 Nov at 6 pm, Tivoli Hall, Ljubljana, EUR 6-30 Tilia Olimpija – Medveščak (Cro) 28 Nov at 6 pm, Tivoli Hall, Ljubljana, EUR 6-30
Ladies ski
Weekend
Volvo & The Slovenia Times Ladies’ Ski Weekend Spend at least one weekend this winter with your best girlfriends and have an unforgettable winter experience. After a stressful week at work, spend a relaxing weekend at a ski resort where you will be pampered with wellness services and culinary delights as well as by many other unique winter activities. The Ladies’ Ski Weekend is organized by The Slovenia Times, having one single goal – to serve you the winter experience of your dreams. Our exclusive partner Volvo will take care for your safe arrival and departure with the latest and safest cars they have to offer. The best ski instructors from the Institute for the Promotion of Sport, who possess a great deal of international experience, will make sure your skiing skills improve. These newly gained skills will be tested on the latest models of Elan skis, made exclusively for women.
We invite you to attend our introductory gatherings from November onwards at the selected boutique locations in Ljubljana. Applications and further information: ski@zavod2010.com and www.zavod2010.com
In the 2010/11 season three dates and destinations are available
Your body will be treated with an exclusive wellness package of massages and saunas.
17th–19th December 2010 - Kranjska Gora (HIT Alpinea hotels)
This all-inclusive offer is a guarantee for your complete relaxation and the enjoyment of every precious minute of your ski weekend.
Ski opening in the most relaxing and luxurious way. Combine the relaxed atmosphere of merry December with the best ski experience.
21st–23rd January 2011 - Pohorje (ŠC Pohorje hotels)
370 € Extra discounts for early and group applications.
oranisor
partners
Institute for promotion of Sport
This is the weekend after Pohorje and Maribor are hosting the traditional Ski World Cup Golden Fox competition. Experience what is available for the world’s best skiers in Maribor and realize why this location is the most popular female ski destination in the World Cup.
18th–20th March 2011 - Bovec or Vogel End the season in the most relaxing way possible – with a high spring sun along with your best friends and first-class pampering. A Ladies’ Ski Weekend starts on Friday at 6 p.m. and ends on Sunday around 5 p.m. It includes: transport to and from the ski resort (Volvo) 2 nights in a hotel with all food included 2-day ski 2 days skiing with a ski instructor(private and group lessons) testing of brand new models of Elan skis a boutique dinner event on Saturday evening wellness: one massage and free use of saunas in the hotel And with a lot of small surprises throughout the weekend.
Lingerie fashion show by Lisca (Photo: Mediaspeed)
Local election advertising in Škofja Loka. (Photo: Andrej Novak) Slovenian first lady Barbara Miklič Türk makes cookies for charity sale at HappyPek bakery.
Managers of Magistrat international and Galerija Emporium in front of the new fashion store.
EVERY PICTURE TELLS A STORY
Chitravina N. Ravikiran playing in Ljubljana’s City Museum.
FS Ponikve, Dobrepolje at the National Meeting of Folklore Groups in Maribor’s Union Hall. (Photo: Maja Kaplan)
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