Slovenia Times 142 by Slovenia Times

DINE WITH style Summer Edition

The Slovenia Times, Slovenian magazine in English Language, volume 8, number 142, EUR 4,80

July/August 2011

Better the devil you know 20 years since the Independence Slovenian companies are still choosing ex-Yu countries for their expansion over other growing markets

“For anyone who follows Balkan affairs, the Bled Strategic Forum in Slovenia was the place to be this week. Outside, a mysterious mist rose from Bled’s picture-postcard lake; inside, pressing issues were being quietly demystiﬁed” (Tim Judah, Balkans Correspondent, The Economist). “The Bled Strategic Forum is an excellent opportunity to discuss some of the most pressing issues of our age. Every year, the organisers highlight fascinating and challenging subjects for discussion” (message from Ban Ki-moon, Secretary-General of the United Nations, Bled 2010). “India attaches great importance to the Bled Strategic Forum and that explains why I am here for the second consecutive year” (P. Kaur, Indian Minister of State for External Affairs, Bled 2010). “Slovenia should be commended for bringing the world to Bled today and showing that it is ready to reconcile its local responsibility with global responsibility” (A. Patriota, Brazilian Minister of Foreign Affairs, Bled 2010).

CONTENTS 3

July/August 2011

POLITICS

20 years of independence in pictures

The aftermath of super-referendum Business Partners

ECONOMY

End of the road for SCT

Interview: Blaž Golob, director of CeGD

Coastal real estate is making a comeback

Iphone comes to Slovenia

Experts’ views on business environment in Slovenia

FDI

100

BSH Hišni aparati plans expansion

Hella Saturnus marks 90 years

Interview: Gertrud Rantzen, president of the Slovenian-German Chamber of Commerce

Slovenian companies in ex-Yugoslav republics

Interview: Christopher Jackson, Hong Kong Trade Development Council

Innovation: Made by Slovenians - Talking Tom Cat

95 75 100

Diplomatic society

95 25

75 5

Interview: H.E. Cezary Król, Ambassador of Poland

30 Embassy diaries

25 5 0

Slo times avgust 230x95 mm 11. junij 2009 10:43:56

LIFESTYLE

Dine with Style Summer Edition

The new old Congress Square

Style News

Column: Andja Marić

The event guide

SPORTS 45

Slovene footballers in the foreign clubs

Every picture tells a story July/August 2011

Slovenia

20 Years After in Pictures photos: BOBO

The Good News: The war (recession) is over! The recession hit badly. After a steep recession in 2009, the economy is back into steady growth. Too early to raise glasses, but good for some optimism.

Declaration of independence, 26.6.2011, Trg Republike, Ljubljana.

20 11

4th July 1991 marked the end of hostilities in Slovenian War for Independence. A crane is removing road barricades by the Dragonja river, a place where a new border control post to Croatia ould be established.

The celebration: Independence day

The border: Entirely different

Slovenian police in control of the border post to Italy, after it was secured from the Yugoslav army threat.

20th Anniversary of Declaration of independence, Kongresni trg, Ljubljana.

Foreign minister Dimitrij Rupel, President of the republic Milan Kučan, President of parliament France Bučar and Prime minister Lojze Peterle.

President of parliament Pavel Gantar, President of the republic Danilo Türk and Prime minister Borut Pahor.

19 91

20 11

The leaders: Fathers and sons of nation

Police helicopter observes Kolpa river -the current Schengen border to Croatia.

Swearing the oath of first generation recruits for Slovenian Territorial Defence.

Slovenian troops and their vehicles at Shin Band base, Afghanistan.

20 11

The army: From defenders to peacekeepers

The skyline: Ljubljana rising

The cars: Renault Forever In 1991 you would most likely find a Slovene driving Renaults 4 or 5... or the Yugo 45.

In the meantime, two towers got ahead of it: The WTC (75m)built in 1993, then Crystal palace (89m), opened in 2011. But the latter wouldn’t take the lead if the economic crisis didn’t slow down two other, even taller construction projects scheduled for 2010.

20 11

The tallest building in 1991 was the 71 metres tall Tivolska 50 tower, followed by the legendary Ljubljana nebotičnik from 1933.

In 2011 Renault Clio remains the frequently registered car make in the country, despite the title most of desired car in this category goes to Volkswagen Polo.

Sports: Best in Winter

20 11

Martin Krpan’s frontman Vlado Kresiln remained an adored figure on the music scene, reviving the ethnic music of East Slovenia. He has also cooperate with Siddharta, the only Slovenain rock band who dared to invite their audience to a stadium.

Film: Going somewhere The absolute box office winner of Indpendent Slovenia’s film making is 2010’s youth comedy Going Our Way. Every 10th Slovenian went to see it in the theater.

20 11

Grandma Goes South was the most popular domestic film production in 1991 and 6th most watched in the 20 years.

Alpine skier Tina Maze bags two medals at the Word Championship. Winter sports remain victorious opportunity for Slovenes, but meanwhile they have turned into a unique football nation ranking 19th at the FIFA board.

20 11

Slovenian rock group Martin Krpan ended their carrer playing as a fore-runner to Bob Dylan in his Ljubljana concert in June 1991. The band was a mainstream-rock companion to political chanes in Slovenia.

Music: The Times They Are A-Changin’

Franci Petek became a national hero, winning gold on the big hill at the Ski Jumps world championsihp in Predazzo, Italy

PANORAMA

source: STA, Slovenian Press Agency

From Afghanistan With Scratches

Obstacle Course

In a suicide bomb attack just outside a military base of the NATO-led ISAF force in Herat, west Afghanistan, Melita Šinkovec, a civilian expert, suffered a light surface injury. She said she had been lucky, because she was in her office behind closed doors when the bomb exploded. This was the first time a Slovene sustained injury from Afghan insurgent activity. A total of 89 Slovenian troops serve in Afghanistan as part of the 140,000-strong International Security Assistance Force (ISAF). Unlikely for that reason, only a few weeks after the incindent PM Borut Pahor told the press that Slovenia would start harmonising its plans to withdraw its troops from Afghanistan with other allies. The PM added that the withdrawal could happen soon, presumably already with the return of the current rotation of troops in

Parliament endorsed the first comprehensive overhaul of family legislation after 35 years. While shying away from initial announcements of gay marriage and adoption, the family law act introduces additional rights for homosexuals, while also securing better protection for children. The adoption of the bill, whose fate was uncertain until the very last moment, came after a protracted debate that was started back in September 2009 and went through more that 60 hours of debate in the parliamentary family committee in which time a provision on gay marriage was deleted. In line with the toned down version, gay couples will be able to enter into civil partnership in which they will enjoy the same rights as married couples. Reacting to the passage of the bill, the conservative pro-family Civil Initiative for the Family and the Rights of Children announced it had started collecting signatures for a referendum on the law. Its initiative was backed by the nonparliamentary New Slovenia (NSi). For them the problem lies in the definition of a family, which would mutate from “family is a community of parents and children, which enjoys special protection for the benefit of the children” to “family consists of a child or children with one or two parents or guardians”. Such referendum however could be prevented by the constitutional court as it may turn out to be putting minorities to the mercy of public vote.

October. The announcement was not received with understanding by Defence Minister Ljubica Jelušič, who said that the withdrawal had not been discussed by the government and that a withdrawal this October would be premature. She pointed to the government decision from 2009 which envisages the end of the mission in October 2012 and added that a withdrawal in a few months would mean that this decision is not harmonised with the allies. Pahor responded by saying that he had discussed the issue with French President Nicolas Sarkozy and UK Prime Minister David Cameron on the sidelines of the EU Summit, something that reassured him in his and the government’s decision. He however said that he regretted that the public got the impression from his statement that October 2011 was a fixed date for the withdrawal.

Murders in Numbers The homicide tally in the country since 2006 is 48, knives and handguns were the most common weapon of choice, reported General Police Administration as it has presented the homicide statistic. The largest number of homicides, 21, was recored in 2007, while the highest number of such attempts, 59, was registered in 2006. The highest number of murders, nine, happened in 2009 and none in 2008. Although the trends vary, current statistics don’t seem to be turning for better this year, also for a few unlikely accidents that happened in June. Buddhist Lama Shenpen Rinpoche, the head of Slovenian Congregation got attacked by two unidentified middle-aged men when taking an evening stroll in Ljubljana. The lama, whose lungs were pierced in the stabbing assault is succesfuly recovering. The Congregation did not wish to speculate whether the assault on their leader was religiously motivated, while it is certain that the assault was planned as one of the attackers is supposed to have called Rinpoche

by his name. The victiom was not satisfied by the response of the police, claiming they failed to take seriously both the attack on him and an increasing number of threats the community has been facing and reporting in the recent months. The police certainly did not disappoint only two weeks later, as they have arrested two men suspected of carrying out an armed robbery of a postal office in Kresnice (SE of Ljubljana) in which one women was killed. The armed robbery, in which the postal office employee was reportedly stabbed to death, shocked the country. The perpetrators got away with only EUR 300. Can these statistics shake the image of a safe country? There’s little evidence the rise of murders would affect safety on the streeets, as, according to the experts, most of the homicides and murders happen in between the known people. Most likely alcohol is involved, while the most deadly region seem to be in the eastern, wine-growing areas.

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Photo: BOBO

“Grateful for mom and dad,” a slogan of family law opponents.

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

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Front page by Jaka Terpinc

UNDER THE14 PRESS Days 7 Police Photo: BOBO

Less is More

A government decree restructuring Slovenia’s police administrations by merging three smaller administrations with bigger ones took effect in June after months of heated debate over the effects of the plan. This is the first major overhaul of the country’s police makeup since 1980 and puts the number of police administrations at eight. Police Commissioner Janko Gorsek reiterated the change would not affect security. He argued the reorganisation will reduce the number of desk-jobs by and increase the number of field officers, while saving the police around EUR 440,000 annually.

The problem lies in our mentality and lack of awareness that we are living beyond our capabilities. In the past twenty years, we have seen something that was in many aspects a consequence of our efforts dating thirty, forty years in the past. We got used to certain self-evident phenomena such as growth, progress and development. It is a very tough disease that makes us suffer now. As a consequence, we think about a messiah, while society is ruled by apathy, aggression and intolerance. There are more and more people thinking about leaving the country. Young people with the capital – not financial but intellectual – might leave the country if thing go on like this. Zares leader Gregor Golobič on the problems of Slovenia.

The EU Photo: BOBO

The Rights of a Slovenian Fisherman

If we wanted to change our mentality, we should have become aware of our troubles. Just in case, let me give a few descriptions: With a feudal mentality, we want to have success in a post-industrial society. We would have an independent country, but behave like subordinates. We would remain passive in order to complete the active. Author Miha Mazzini in his column on Siol.net on the solution.

There are differences between the republics, but less significant than our common difference to the third: traditional European democracies. We aren’t socialist states anymore, but still the Balkan ones. As such, we have very little trust in the temples of democracy - parliaments. The same goes for the judiciary. But we do trust the army. As Croatia is nearing the completion of its talks with the EU and was given 1 July 2013 as the target date for accession, Slovenia has managed to obtain important guarantees as part of the neighbouring country’s fisheries chapter. Slovenia withdrew its reservations to the closure of the chapter after achieving that the historic right of Slovenian fishermen to fish in northern Croatian waters, up to the town of Vrsar, in line with the 1997 Slovenia-Croatia Border Transport and Cooperation Agreement (SOPS), will be written down in Croatia’s Accession Agreement. This means that the right will become part of the EU body of laws and will thus be lasting, but it will only be implemented after the decision of the tribunal arbitrating in the border dispute between the two countries is enforced. Until then Slovenian fishermen will be eligible for compensation for the loss of income. Despite the opposition (SDS and SLS) has commented this as a bad compromise, the fishermen were satisfied with the deal.

Municipalities

The Number 212 Slovenia’s top court made an unprecedented move by effectively overriding parliament and issuing a decree establishing the municipality of Ankaran, a town which had so far been part of the Koper municipality. The decree was issued after the National Assembly ignored the Constitutional Court’s ruling from late last year that it must establish the municipality, as both attempts to do so failed to get past the relevant parliamentary committee. The Court issued the decree as part of the process of reviewing the legality of planned local elections in Koper, which had been delayed by the stalemate over the future of Ankaran, whose inhabitants had voted in 2009 to break way from Koper. Ankaran becomes the 212th municipality in Slovenia.

Columnist Vlado Miheljak in Dnevnik on Slovenia’s social similarity to Balkan countries, based on the recently published statistics.

Twenty years after independence, we can really be unhappy with our situation. Totally unprepared, we went astray into a crisis, one which we cannot dig ourselves out of. But all depends on comparisons: if we compare ourselves to Slovakia, we can think that the Slovaks made bigger progress than us and that our initial advantage has dwindled. Comparing to the environment we had abandoned 20 year ago, we are quite OK. The advantage to Croatia and other parts of the former country has, meanwhile increased. Editor-in-Chief of Finance Peter Frankl on relativity. July/August 2011

A WORD FROM THE EDITOR

POLITICS

Political Crisis

Out of Potatoes

By Jaka Terpinc

In the late 18th century, Austrian Empress Maria Theresa issued a decree ordering the predecessors of contemporary Slovenians to intensively seed potatoes. The tuberous crop was not new to the peasants but they had resisted it, not least due to superstition. The strict imperial decree under the threat of penalties overturned this reluctance. The growth of the crop did not only end frequent and devastating famines. It also saw potatoes become a cherished part of Slovenian life. Farmers whose plants yielded big potatoes were considered fortunate. Even today, saying “to have a potato” means being lucky. By the end of twentieth century the time had come for Slovenes to shake off the last bit of foreign overrule and start on our own; to be in complete control of our soil – and what we plant. This year we are reviewing more than two decades of intense work to meet historical goals: democracy, independence, EU, Nato, Eurozone, Schengen zone and so on. Politically a dream come true, economically a story of success. For constant growth on the wings of a gradual transition, emerging markets, new technologies, expanding financial balloons, Slovenes were proclaimed the undisputed winner of the former socialist world. The overwhelming impression of progress was omnipresent; everyone was entitled to a dessert, if not at home then at the colourful shopping malls which grew at the same rate as the residential blocks back in the gray seventies. In the crucial moments of recent history, many things seem to have passed relatively smoothly. Was it because we had guts, brains, or just “a potato”? And how much of each? Strangely enough, when the nation of mountaineers concluded the ultimate hike and found itself atop mount Triglav, the view turned to be less idyllic than the one in our dreams. What we see are the sideeffects of democracy and a market economy: the promise of political pluralism instead of one-party rule lost to inefficiency and senseless competition of parties; capitalism turned into an opportunity for white-collar criminals rather than for bold innovators and entrepreneurs. The hard evidence for this is the list of our millionaires. But all the anomalies we now see so clearly have in fact always been present. It was just that the steady growth along with European success made an efficient smokescreen. Now the end of big stories and the economic crisis has brought about an eye-opening revelation. Who to blame? No doubt there’s abundance of scapegoats available – Slovenes have always been good at that. Unfortunately we still tend to label them by dated concepts from the 20th century, such communism, fascism etc. These political differences keep us so busy that we are incapable of seeing how banal they are from a distance. And it doesn’t take a big distance to see a small nation. The only question is whether we will be able to make it? The glory of independence from 20 years ago shines on, but much uncertainty has taken root where once there was optimism and enthusiasm. Beside, the world has changed and a new generation has grown up in a different world. The babies of democracy are now of a legal age. They vote and attend referendums, and maybe wonder why some of their elders grow nostalgia for the enlightened absolutists (from Joseph II of Habsburgs to Joseph Broz Tito). Maybe it is for the potato, since one thing seems pretty sure: if a law for mandatory potato planting would be to be adopted today, we would most likely call a referendum, vote it down and remain hungry. That might have sounded a bit anachronistic, but certain economists have already made the point: if the voted-down pension reform, along with other neglected proposals for sustainability of our public finances, takes the state to its knees, it will be the measures by our wise emperors in Brussels that will save us from starvation. Definitely not a good prospect for the twentieth anniversary of our independence. editor@sloveniatimes.com

The Super Aftermath of Super Referendum After the so-called super-referendum on Sunday, 5th June, with the Slovenian government suffering losses in all three referendums, including one on pension reform, the political crisis, which had started with the departure of the party DeSUS from the left-wing governing coalition, only worsened. Even more, with the recent departure of the second party, Zares, Prime Minister Borut Pahor finds himself leading a minority government, while the reforms, which he had continually promised, seem to be both necessary yet impossible. by Tjaša Pureber

he global economic crisis found Slovenia off-balance and completely unprepared for the resulting mass layoffs. Even in late 2008, governmental officials claimed that there was no need to fear any economic downfall. Janez Janša then lost the 2008 elections and Borut Pahor formed a new, left-wing coalition, consisting of four parties: the winning Social Democrats (SD), the liberal democratic LDS, newly formed party Zares and DeSUS, the pensioners’ party. Though they all claimed to be on the left side of the political spectrum, it was not long before key differences among their aims, strategies and ideas started to show. It became increasingly obvious that they were united against one common enemy – the right-wing SDS party and its leader, Janez Janša. Once he was defeated, and they had to form coalition aims and priorities, they found less and less common ground.

Permanent threats of departure

It was no surprise, when in April DeSUS announced they are

leaving the coalition. In fact, they were only carrying out the threats they had repeated throughout their work in the coalition led by Borut Pahor. They were the toughest nut to crack, even before the beginning of the coalition, when their president Karel Erjavec left coalition negotiations in 2008, because his wish to remain minister of defence was thwarted. Even though it seems the final reason for their departure was the resignation of Duša Trobec Bučan, minister for local selfmanagement and regional development, the true reason lies elsewhere. DeSUS actively opposed one of the key reforms of the coalition: pension reform. According to most politicians and economists, pension reform is necessary because of the ageing Slovenian population. Its key solution was that people would retire later than in the current system. This reform encountered great opposition among unions, right-wing parties and DeSUS. Six weeks before Pahor would face the people’s will on the matter in the referendum, DeSUS decided to withdraw from the coali-

Photo: BOBO

POLITICS 9 The third and perhaps most important was aforementioned referendum on pension reform. In the end, Pahor lost his proposal for pension reform with 72% of voters (turnout was 40%) opposing it. According to the experts, people did not so much vote against the reform as they did against an unpopular prime minister and the government as a whole. Even though more or less everyone, from unions to the opposition, still agrees that reform is necessary, the front pages are no longer occupied with this subject. It seems that political parties are now only thinking about how to survive until and after the 2012 elections.

Minority government

Call for the elections

The departure the party DeSUS was not the start of crisis, since Karel Erjavec had resigned as a minister months before, Duša Trobec Bučan left the government, environmental minister Roko Žarnić left DeSUS and the last minister of their party, Minister of Labour, Family and Social Affairs Ivan Svetlik, was denied their support. However, their departure put in question Pahor’s ability to lead a stable government and prepare the right answers to the challenges many Slovenians face. The opposition, led by Janez Janša, began to call for the early elections, which in Slovenia can only happen if the parliament resigns as a whole. Even though Janša promised the votes of his members of parliament, the coalition strongly opposed this idea. They claimed that his support of early elections is dishonest, as he allegedly does not wish to win in a time of economic crisis. However, according to polls, the government has such low support it would not have a fighting chance of winning an election Therefore, it would seem that early elections are not in any party’s interest.

According to most politicians and economists, pension reform is necessary because of the ageing Slovenian population. Its key solution was that people would retire later than in the current system.

Even though more or less everyone, from unions to the opposition, still agrees that pension reform is necessary, the front pages are no longer occupied with this subject. It seems that political parties are now only thinking about how to survive until and after the 2012 elections. Photo: BOBO

tion, adding another twist to the coalition crisis.

After the initial shock, Borut Pahor announced that he would deal with the pension question, which is closely related to the gaping hole in the state’s budget, by preparing an intervention law, which would open many new fronts. Amongst the rumoured ideas, it would include a moratorium on new jobs in the public sector, and it would also cut into the rights and pay cheques of pensioners and public employees, along with cuts in the social transfers. The intervention law is not welcomed by anyone, from the opposition, unions, President Danilo Türk, to the coalition itself. Therefore, Pahor started to talk about a state budget amendment. He says he would bind his vote of confidence in parliament to it. Whether or not he would win this is becom-

ing increasingly unclear, because he has lost yet another coalition party that could provide him with votes in parliament. Rumours about the party Zares leaving the coalition are not new, either. Their president, Gregor Golobič, announced that he was resigning his post as the minister for higher education weeks before the super-referendum day, since Borut Pahor and the LDS leader Katarina Kresal did not wish to follow his advice and resign altogether in order to make a clear break of the difficult situation into which the coalition had fallen. However, it was not clear whether that meant Zares as a whole, along with the three remaining ministers from that party (Minister of Culture Majda Širca, Minister of Public Administration Irma Pavlinič Krebs and Minister for the Economy Darja Radić) were leaving as well. In late June it became clear, that Zares and Pahor could not reach an agreement about the concrete reconstruction of the government, proposed by Zares, so Ministers Radić, Širca and Pavlinič Krebs decided they are leaving their posts along with their president. Pahor now finds himself in a coalition with only one remaining party, the LDS. It is not clear yet how the negotiations on the budget cuts will continue and how the members of parliament who were formally part of the coalition will vote on them. Can Borut Pahor indeed lead a minority government or are the elections coming sooner than expected?

Historical defeat

In this turmoil, came the superreferendums. It was the first time, that Slovenians had three referendums on the same day. One was about the opening of historical archives of the Yugoslav secret police; another was about the law that was dealing with preventing strikebreaking. The opposition proposed both of them.

Thank God it’s over?!The ministers of Zares declareing their resignation. July/August 2011

Economy

FACTS AND FIGURES

source: STA, Slovenian Press Agency

Government Clears EUR 50m Bailout The Slovenian government has confirmed plans for a EUR 50m bailout of Adria Airways. The government will provide EUR 49.5m in aid to the cash-strapped flag carrier with the remaining EUR 0.5m to come from the state-owned PDP restructuring fund, the majority owner of Adria. The money for the bailout will be secured as part of a supplementary budget that the government is currently drawing up. Transport Minister Patrick Vlačič has said that the money will help the airline restructure its finances and operations. He argues the operation of the firm is crucial for Slovenia’s economy and the mobility of Slovenians. The aid is part of a broader strategy of overhauling Adria, which also envisages the flag carrier reaching an agreement with the banks on the conversion of EUR 38m of its loans into ownership stakes. The government has indicated that it wants Adria to be restructured so that it could then sell it to

a strategic partner. The government’s decision on the aid has welcomed by executive director of PDP Matej Golob Matzele, who believes it shows that the government is serious about overhauling the flag carrier. “This is a positive sign to all business partners that thorough restructuring is underway. It is also a sign to passengers that Adria will continue to fly,” Golob Metzele has commented. According to Metzele, the search for a strategic partner for Adria will be launched once the financial restructuring is completed. The bailout has also been hailed by Prime Minister Borut Pahor, who added that one of the goals of the overhaul of Adria was also to enable the Ljubljana airport to become an important hub in the region, which would help strengthen Slovenia’s geostrategic position. According to unofficial estimates, Adria currently owes around EUR 80m to banks and another EUR 20m to suppliers.

Real estate

Logistics

Construction

Corporate crime

New Business Zone Opened

National Spatial Plan Adopted

VAT Act Tweaked to Help Construction Sector

Slovenia Gets Corporate Crime Court Departments

The government has adopted in changes to the VAT act, conceived as the first in a series of measures aimed at helping the ailing construction sector. The proposal allows companies to reduce the value added tax amount stemming from claims registered towards companies in debt restructuring or receivership. In cases of debt restructuring the tax will be reduced by 30 percent and in cases of receivership by 60 percent. The changes are expected to improve the liquidity of companies with open claims towards companies undergoing debt restructuring or receivership. In line with the current act, VAT reductions are only possible after the completion of debt restructuring or receivership proceedings.

Slovenia’s justice minister has announced the creation of four new court departments specialising in corporate crime. Aleš Zalar says the departments will be responsible for processing the most complex and the most publicly exposed cases of organised and white collar crime. According to the minister, they will ensure corporate crime and corruption are handled with absolute priority. The departments, established at the Ljubljana, Maribor, Celje and Koper district courts, will feature judges deemed most experienced and qualified by the judiciary. Some 22 judges have already been assigned with more expected to be confirmed later.

A new business zone in Žirovnica has officially opened. RP Investment Company announced the opening of the area last month. The first buyer was Saxonia Franke from Tržič, which signed an agreement for the purchase of land in the zone in February this year. Since then, three more companies have bought land in the zone. Currently, 30 percent of the total of 65,000 sqaure metres has been sold. Activities envisaged in the zone include trade, services, various types of crafts, manufacturing, logistics and distribution. Price for the developed land is 99 EUR per metres squared plus VAT with plots ranging in size from 1,600 m2 to 6,000 m2. A business and trading centre, which will be located at the entrance to the zone, is also to be made available.

The Slovenia Times

The government has endorsed the National Spatial Plan (NSP), which includes a range of proposals on the spatial arrangement of the Port of Koper. Luka Koper – which has spent about EUR 3m on the preparation of expert arguments – has been anticipating the approval of the plan since 2006, when the procedure started. The NSP is the principal document that will facilitate the port’s development as well as enhance its competitive edge. “The National Spatial Plan is the result of a compromise between the needs of the port, legal requirements and the wishes of the local community. We at Luka Koper want the NSP to be adopted by all stakeholders as a Slovenian project which shall provide new development impetus both locally and nationally,” Gregor Veselko, Luka Koper Management Board President, commented upon the adoption of the NSP.

Drinks industry

Sales of Wines Increases Slovenian wine producers sold 29 million litres of wine in 2010, a 14 percent increase on 2009. According to Wine Corporation director Dušan Brejc, sales increased due to style and quality. White wines proved particularly popular, with the sales of red wines falling somewhat. The export of Slovenian bottled wines has increased by 62 percent, but overall value of export has decreased due to halved sales of casked wine. Slovenia has seen a growth in the share of imported wines, meanwhile, importing more than seven million litres of wine last year.

11 Energy

Region

Retail

Ministry Presents New Energy Bill

SE Europe Forum Urges Structural Reform

Mercator Moves into Fitch Preserves AOil Retailing Credit Rating for NLB

Telco Telekom Slovenije and mobile operators Mobitel and Simobil were the three biggest information and communication technology (ICT) companies in Slovenia in 2010, a new survey shows. The top three are followed by cable operator Telemach, IT firm ComTrade, IBM Slovenija, telco T-2, system integration company SRC, IT company S&T Slovenija and ATM network operator Bankart. Outfit7, one of the leading providers of smart phone applications in the world, made the biggest leap in 2010 and placed eleventh. The list – based on a survey and published by the business daily Finance last month – features the 50 biggest companies in telecommunications, manufacturing, computers, computer and telecommunication equipment and IT services, but leaves out wholesale and retail traders of computer equipment.

Pivovarna Laško has come to an agreement on the deferral of its loan payments. The troubled beverage maker will now defer loans due in June until the end of September this year. The agreement includes the short-term and long-term loans of the Laško brewery as well as of the Pivovarna Union beverage maker, which are both part of the Laško group. It is has been reported that that EUR 165m worth of loans by the Laško brewery are due by the end of the year, EUR 20m of which are long-term. Pivovarna Union is expected to pay back EUR 100m, 70 percent of which are long-term loans. In line with the agreement, the two companies will only pay the interests on the loans for now. The interest payments amount to between EUR 1.8m and EUR 2m a month.

Slovenia Participation Confirmed in New Euro Mechanism

Slovenia is to pay EUR 342m in the new permanent mechanism to help indebted Euro countries, its Finance Minister has announced. Slovenia will pay the money by five instalments of just over EUR 68m each, the first right after the new European Stability Mechanism (ESM) comes into effect. With a loan potential of EUR 700bn, the ESM will replace the existing European Financial Stability Facility (EFSF) in 2013; EUR 80bn will be in paid-in capital and EUR 620 in callable capital. Out of EUR 80bn, Slovenia will pay in 342m. Member states’ shares had been agreed earlier: at 0.428 percent Slovenia’s is slightly below the one for the EFSF. By referring to its below-EU-average development, Slovenia secured a 12-year arrangement for the lower share.

Registered Unemployment Down Unemployment in Slovenia has decreased for the second month in a row. The percentage of Slovenians registered unemployed in April was 11.9 percent, down 0.3 percentage points compared to March. The number of employed persons was up by 1,500, the Statistics Office has said. A total of 111,561 people were registered as unemployed in April, which is 2.1 percent less than in March, but 12.3 percent more than in the same month in 2010. The rate stood at 11.5 percent for men and 12.3 percent for women. The rate decreased the most in the statistical region of Pomurje (NE), by one percentage point to 18.3 percent, which is still relatively high rate. In April, the number of working persons increased in all sectors, except for IT and trade, maintenance and repair of motor vehicles. Unemployed in Slovenia Annual increase, monthly decline (in 000) 120

Source: SURS

Telcos Lead Rankings of ICT Companies

Laško Defers Loan Repayments

Finance

100 80 60 40 20

Apr 11

ICT

Labour

Mar 11

Drinks industry

International credit rating agency Fitch Ratings has kept the longterm credit rating of Slovenia’s biggest bank NLB at A- and short-term rating at F2. The assessment of future developments remains stable too. According to the bank, Fitch also confirmed the existing rating of individual financial power at D and the rating of external support at 1. The assessment of credit risk and external support for NLB reflects the potential support from the state as the bank’s biggest owner and the high importance of the bank for the banking system, the bank says.

Apr 10

The Economy Ministry has opened a 30-day public debate on a new energy bill. The bill introduces a number of changes related to the implementation of EU directives and regulations. According to outgoing economy minister Darja Radić, the bill will ensure Slovenia “finally meet[s] all the obligations it has owed to the EU for quite a while”. Under the bill, national energy programmes will contain only fundamental, strategic guidelines, basic objectives in individual fields and basic ways for the attainment of these objectives. Energy Directorate boss Janez Kopač says that the bill introduces separation of market and network divisions, and envisages out-of-court settlements between consumers and suppliers of electricity and gas. An exception is when both the supplier and operator are in state ownership. In that case the management of one of the two will be transferred to another state body, according to him.

Apr 09

Janez Kopač

Countries in South East Europe (SEE) need to become more competitive, carry out structural reforms and consolidate their finances if they are to succeed in a changed global environment a regional forum has argued. The forum, organised by the Centre for Excellence in Finance (CEF), attracted representatives of international financial and development institutions along with financial ministers and central bankers from the region. Highlighted in the debate, which focused on post-crisis growth strategies and more balanced and sustainable growth of SEE economies, were structural reforms, the need for a better performance of state bodies and the judicial and educational systems, as well as the fight against corruption and an improved business environment. European Bank for Development and Reconstruction President Thomas Mirow praised the progress in the region in recent decades, but added its countries could face major problems if the EU failed to tackle the Greek situation. The markets are already losing confidence, he noted.

Mercator has expanded its operations into oil retailing. The grocer has acquired a full stake in En Plus, a company currently running 18 self-service petrol stations around Slovenia. According to Mercator, the strategic alliance agreed on with En Plus means a continuation of the development of supplementary commercial service and is in line with the retailer’s mid-term plans. “Trends in the world show that consumer goods retailers are expanding their trademarks into additional service areas, such as financial and insurance services, legal services, mobile services, energy, telecommunication, tourism and similar,” Mercator says.

Finance

July /August 2011

12 ECONOMY

Construction

Sunken Flagship Just across the street from the head office of construction company SCT on Slovenska Cesta in Ljubljana scaffolding is placed on both sides of a several-storey-high building. At street level a warning sign with the SCT logo hangs between blue fences. Pozor Gradbišče (Careful: construction site) is written on it, but the scaffolding is empty and the sound of hammers and drills faded some time ago. SCT, the flagship of the Slovenian construction sector, has sunk. By Mark Koghee for the construction of the network of motorways in Slovenia.

The beginning of the end

End of the road: SCT building sites remain empty as all options to save the company are exhausted

Nasty side effects

A few days before the court launched receivership proceedings, the head of the construction sector’s chamber within the Chamber of Commerce and Industry (GZS) warned of the side effects of the receivership. According to Jože Renar: “The conThe Slovenia Times

sequences will be even more negative in the long term, as Slovenia will not be in a position to capitalise on the positive effects of the technical, personnel and performance qualifications that Slovenian construction companies developed at times of growth.’’ With a view to avoiding such damage, the construction company Cestno Podjetje Ljubljana (CPL) last month attempted to save SCT with a partnership and a substantial financial injection. It is part of a strategy at the firm: earlier this year CPL took over asphalt facility TAC from SCT to ensure the availability of materials. “If TAC went down, CPL would be finished as well’’, explained CPL’s executive director for sales and marketing Jure Kranjc in May. “It is the same with SCT because of the concrete facilities and everything else.”

one of the biggest construction companies in Yugoslavia, employing more than 11,000 people. It is said that in the former Yugoslavia around 100,000 people lived off SCT. The company – which was founded in 1947 – built airports, motorways and buildings all around the former Yugoslavia, the Middle East and the north of Africa. After Slovenia gained independence in 1991 and Yugoslavia fell apart, SCT lost projects in the former republic and the company had to downsize its workforce. But with its now 3,000 workers the company acquired many projects

Photo: BOBO

he Ljubljana District Court launched receivership proceedings at Slovenija Ceste Tehnika (SCT) on Wednesday May 15. A total of 760 employees are left jobless, joining many more who lost their jobs over the last few years. And now, at the end of months of uncertainty over the fate of the firm, the only remaining question is how much more damage the giant will cause in his fall. The construction sector in Slovenia was hit hard by the economic crisis and now that the flagship of the sector has sunk, the expectation is that things will only get worse. Marija Magdalena Santl, who is in charge of debt restructuring at SCT, believes that with the receivership the jobs of 10,000 to 15,000 people in related companies and branches are at risk. Economist Rasto Ovin of the University of Maribor said to expect a ‘blow to the banking system and everyone else connected to this (SCT) company.’

After 2008 problems arose. Investigations into fraud and price fixing were launched against SCT’s CEO Ivan Zidar; the housing market crashed; and, because the Slovenian motorways were finished, a stream of lucrative projects dried up. In 2009 the company was still in the black with revenue of EUR 775,000. But last year SCT had to put a loss of EUR 91m in the books. The number of workers decreased from 2,500 in 2004 to 960 in 2009. In 2010 projects SCT had acquired in Libya, Bosnia-Herzegovina, Serbia, Kosovo and Albania were lost because of the company’s bad financial situation. SCT struggled with high debts from a management buyout through which Ivan Zidar and his associates Aleksander Meze and Janez Jamnik bought the company. The three used SCT to pay back the loan they had to take for the buyout. In an attempt to save SCT Zidar, Meze and Jamnik renounced their ownership this May making way for a restructuring and a possible partner. It was in vain. Slovenia’s construction giant is dead and now the rest of the sector fears its own fate.

No reprieve

Yet a few weeks after CPL proposed coming to the rescue, the firm’s management board decided not to go ahead with it. “In these times of crisis, we could jeopardise our own security by entering this giant,” argues Stanko Petrič, the head of the board. After this, receivership became inevitable for SCT. It has been a long, slow decline. In its eighties heydays, SCT was

Desperate measures: Ivan Zidar made a futile attempt to save SCT by renouncing his ownership in the company

ECONOMY 13

Interview: Blaž Golob, director of the Centre for eGovernance Development for South East Europe

Preparing for the Future Technological advances have long promised more efficient ways of delivering and using government services. Blaž Golob, director of the Centre for eGovernance Development for South East Europe (CeGD), has been working tirelessly to encourage and promote the use of eGovernance. While he says good progress is being made, he knows the challenges are far from over. By Maja Dragović Every smart government should have better and cheaper services supported by ICT. Some countries have many electronic services but the usage of those services is only 10 percent. Nevertheless governments receive an invoice for ICT outsourcing support for all electronic services every month. This is nonsense. There is no prioritisation process done, foresight in this case is only a utopia. When taxpayers’ money is freely available – as it was until recently –ICT companies are able to sell almost everything in the name of modernity or enabling better ranking in global eGovernment competitiveness indexes. Some more advanced regional economies like Slovenia were great places for such experiments. Now times are different.

You work a lot in a region where people are probably even more suspicious of technological advancements than they are in the western part of the world. What sort of response are you getting to the idea of e-government and foresight in the countries of South East Europe? The region of South East Europe and its inner circle of the Western Balkans is an emerging market that has very good potential. Nowadays strong scientific or business diasporas are more than willing to contribute to the progress of their country. There are many good examples of people returning from abroad successfully. Positioning foresight – which could bring about long term priority setting of the countries, regions, cities or various sectors such as the energy sector – is not an easy task. Regional leaders that demonstrate achievements with concrete realised projects provide good examples that motivate neighbours. For

example, one of the success factors behind the current Turkish achievements in the field of social and economic development is Vision 2023: Turkey’s National Technology Foresight project, which was done in 2002. Looking 21 years ahead on where and how to build knowledge economy in Turkey that will bring about prosperity is a successful case. Croatia also recently organised a challenging event on Croatian business 2031 with the relevant stakeholders, which is a good start. Foresight is a new way of governance for the region. Besides knowledge and good management of foresight process, the inclusion of relevant stakeholders is of great importance. It leads to success or failure of proper policy or strategy design. Governments across the world and the region are going through severe cost cutting. What impact is this having on introducing egovernment system in the region?

You are one of the co-authors of the EU Enlargement futures studies. With the current pessimistic feeling about the Union amongst its members, what do your studies show as the future of the European Community? The Foresight Study in 2001 about enlarged European Union showed that the EU could further progress and expand, and with that enable social and economic development for its citizens. We identified six main cross-cutting messages. The first one is that economic paradigm will change. The second main message is about regional disparities namely; urban metropolitan regions will be generators of prosperity, other peripheral regions need to connect and find cross-border methods of cooperation. The third message

is related to the modernisation of the learning environment. The fourth driver is the re-conversion of science and technology base in order to build a knowledge economy. The fifth driver is societal challenge and a question of who is paying a societal bill, facing urgent reinforcement of solidarity mechanisms. Finally we already identified as early as 2001 a need for sustainable Europe – nowadays sustainability has an effect on most of the development strategies either in public or in private sector. Those who navigate short term actions with a clear long term vision that is inclusive, smart, sustainable and ethically acceptable will go safely throughout challenges. Germany in EU or Turkey in the region, and many business sectors that are global players, are good examples of this. I believe that the European Union and region of South East Europe has enough good navigators to enable further economic and social development. In October this year, together with the Municipality of Ljubljana, CeGD is organising a conference with the focus on the future of the cities within the Danube region. What is the objective of the conference? The objective of the conference, called Ljubljana Forum, is to connect, enable and encourage concrete cooperation among different stakeholders, which influence and develop projects for cities. For that purpose participants will share their views on governance, knowledge and economy of the cities and metropolitan areas.

LJUBLJANA FORUM 2011 Cities of the future: European metropolitan growth area 13th and 14th October 2011, Ljubljana, Slovenia www.ljubljanaforum.org July/August 2011

14 ECONOMY

Real estate

Foreign Demand The sun seems to have broken out on the Slovenian coast figuratively as well as literally. After tough times for the real estate market, increasing foreign demand is seeing the growth of sales near the seaside – but only if the price is right. By Mark Koghee their home country. Sellers seem to be more open to adjusting their prices to fit the buyers’ expectations which will allow the market to be active.’’ This is positive news after the long-term slump in the housing market. Whether it was low priced apartments or luxurious villas, selling property has been a hard task. In 2008, when the financial crisis started to bring the housing market down, just 122 properties were sold in the coastal region. Last year the counter stopped at 72 sales. Just two properties were sold to Slovenians. The remaining buyers came from abroad. Italians were most keen on buying real estate on the Slovenian coast. They bought 54 of the 72 sold properties.

A holiday retreat

In demand: properties along Slovenia’s coast are seeing a comeback of foreign buyers

illas surrounded by gardens where palm trees st a nd a m idst neat ly mowed lawns and where the water in swimming pools reflects the shape of the house. Apartments within walking distance of the beach. Houses on slopes that are covered with vineyards. The Slovenian coast offers real estate in a picture perfect setting, but selling property hasn’t been easy the last few years. The worldwide crisis on the housing market didn’t spare these idyllic surroundings. In the last few months, though, business seems to have been getting as sunny as the weather. Eva

The Slovenia Times

Jakopin of Elite Property Slovenia, an agency for luxury real estate, says she has noticed higher demand from foreign buyers: “All in all there has been an increase of foreign buyers compared to Slovenian,” she explains. “Slovenian buyers are hesitant in buying. Those among them that are serious take up to six months to make the decision to buy.”

Positive news

Jakopin predicts that the foreign demand will continue to grow: “Russian clients in particular are starting to realise that Slovenia is offering them a better life than

According to Jakopin each month now approximately three foreigners buy a property on the coast. The foreigners mainly go for luxury real estate, like apartments of over EUR 200,000 and houses that are between EUR 500,000 and EUR 1.5m. Usually these buyers are looking for a holiday retreat but many ultimately also decide to make Slovenia their permanent home. The revival of the housing market on the coast comes at a cost. Only when the price of the property is lowered significantly can a sale can be made. “The real value of property has fallen to the level of the times when the currency was still the Slovenian Tolar,” says

Jakopin. “The advertised prices are still high, as many sellers don’t need to sell and are waiting for the buyer who is prepared to pay the high price. Those sellers who want to sell have lowered their prices ten to thirty percent compared to 2007.’’ One-family houses that are approximately five kilometres from the shore get sold for EUR 1,250 per square meter. With a sea view the price not surprisingly rises: “The price changes also depending on the distance from the sea and cities, as well as age of the property,” says Jakopin. “Luxury houses don’t have such an evaluation scale, as these are specific properties where the price is defined especially on the basis of the location, quality and views.’’

Cut price property

The recent sales of Agency Veda Invest, based in the coastal town of Ankaran, bear out Jakopin’s suggestion that reduced prices lead to sales. A one bedroom apartment in Izola got sold after the advertised price was lowered from EUR 153,000 to EUR 145,000. Another apartment in the same town got sold after the price went from EUR 110,000 to EUR 100,000. From small apartments to luxurious villas the prices of several properties are now being offered for a reduced price. It may not be back to its glory days, but the sun is starting to shine once again on the coastal property market.

Green Sleeping The demand for green holidays is on the increase and so in the European Union eco tourism is becoming ever more important. One of the main priorities is eco-friendly accommodation in rural areas. By Polona Cimerman

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It is an increasingly well-known fact that the winning formula for competitive tourism in the long-run consists of many factors, but all of them with the fundamental tendency of being sustainable. One of the most important trends is holidaying in rural areas. This trend has been recognised in the EU and efforts made to boost its development. One such project is ICER (Innovative Concept of Eco-Accommodation Approach in Rural Regions), an initiative which offers public support policies for eco-investors. Its Slovenian partner is Regional Development Agency Mura Ltd. The Agency believes that tourism is indeed becoming an essential part of the economy of rural communities. “It has the capacity to create considerable employment in these areas,” argues Daniel Ulčar, project manager at the company. “This potential is particularly important given the decrease in the agricultural sector employment. Moreover, the jobs created in local tourism projects are not likely to relocate to other areas.” Ulčar points out that tourism spending in rural areas is lower than in other areas. Consequently,

Daniel Ulčar

that makes it more difficult for tourism promoters to make profits from their investments in such locations, comparing the situation to cities or coastal regions. Moreover, it is harder to attract new investors or project creators to rural areas. “This is a rather ironic situation since the demand for rural tourism is significantly increasing,” Ulčar says.

Higher accommodation demands

Since tourists interested in rural tourism are seeking higher standards of accommodation and pay more attention to environmental issues such as building quality and energy management, the key to finding a solution to the unfavourable profit situation lies here. Ulčar points out that “it’s important that public authorities do not miss this opportunity to capitalise on the great potentials that exist in rural tourism. They need to develop and deliver ambitious public policies for the sector; that is, policies that are geared to meet the needs of investors. The right support must be given for the provision of quality tourist accommoda¬tion which is at the heart of the industry.” The future of rural tourism in Europe, Slovenia included, lies in self-initiative of the communities to attract investors and meet the increasing demands for rural-based holidays. “This drive to grow will, of course, need to respect the intrinsic values of each territory, so all policies and supports must be based on achieving sustainable development. This is the underlying principle on which the entire ICER project is based on,” explains Ulčar. The project aims to establish recommendations for rural tourism public sector policy and support in terms of technical, financial and legal aspects while also developing guidelines for investors within the framework of sustainable development programmes. “The project’s find¬ings will be based on the exchange of practical experiences and activities in each partner region,” says Ulčar. “We have to point out that the project is implemented within the Interregional Cooperation Programme INTERREG IVC, financed by the European Union’s Regional Development Fund, which helps the regions of Europe to work

together, share experience and good practices in the areas of innovation, knowledge economy, environment and risk prevention.”

The French set an example

The ICER project is led by the Regional Committee for Tourism Development of Auvergne from France; its partners come from six countries. One of the best practices identified is French and called Nattitude. Its aim is to meet the new demands of a nature-loving clientele. This is achieved not only through the quality of the buildings and their locations, but also through tailor-made services and activities. They developed an advice tool with 250 key ideas to support investors in the eco-accommodation sector. They also offer numerous training programmes and have a very strong marketing strategy. Ulčar notes that “Slovenia already has some excellent examples, but still there is great potential for the future. The issue is receiving growing attention from the authorities which is very stimulating.” He hopes that ICER project will contribute to further policy development for supporting sustainable tourism. Bearing all this in mind, a bright green eco future seems to await the rural areas in Slovenia. This project is co-financed by the ERDF and made possible by the INTERREG IVC programme.

16 ECONOMY

Technology

Apple Mania Finally Hits Slovenia In recent years, American computer company Apple has charmed millions of technology enthusiasts around the world. Now, at last, it has begun to seduce the Slovenian market with its range of mobile devices now readily available in the Balkan county. By MiranVarga

t all started at the end of January when the iPad – Apple’s market-leading tablet computer – hit the shelves of the official Apple store in Slovenia. Tablets in general have proven to be a big hit in the computer and gadget market and Apple’s device, being the most stylish and easiest to use, has very much been the one to own. From the beginning of the year, it has no longer been necessary for Slovenian enthusiasts to be ingenious and import products from neighbouring countries. The price difference still existed but compared to the initial investment of few hundred euros it was not a serious obstacle when considering users get local support and service. Too bad Apple doesn’t offer and public sales figures for local markets so it is everybody’s guess how many iPads were sold in first six months. Our best guess is a few thousand. The first week of May was another milestone the iPad 2 hit the shelves. It is another crowd catcher as it further improves the already famous user experience. Among the main reasons people go crazy over iPad is the attraction of new uses of information technology. These sleek tablet computers offer a highly intuitive and easy to use platform – the experience the touch screen offers is quite different than conventional computing.

Take the tablet

More and more tablets are also used for business purposes, education, in medicine and other fields. One of the key strengths and the reason why iPad sales in the world and now in Slovenia are far ahead of competitors is of course content. Some 350,000 applications are already available in Apple’s “App Store”, of which more than 65,000 are specially designed for the iPad. Finally, iPads are quite affordable for an average Slovenian (prices start at EUR 499 for iPad and EUR 599 for iPad 2) and come in two main verThe Slovenia Times

Must have it: on the first day it went on sale, Slovenians queued for hours to buy Iphone

sions which differ in connectivity features. The one that also offers mobile network connectivity (3G) besides standard wireless connectivity is still struggling with sales as mobile data rates are still quite high in Slovenia. According to Jure Forstnerič, Head of laboratory at Monitor computer magazine, the iPad’s biggest strength is that “like all good technology, it gets out of the way while you use it. You simply forget that you’re holding a computer-like device, instead, you have in your hands a website, a book, a game or a movie. Not only does it ‘just work’, it works seamlessly, quickly and efficiently. The breadth of excellent applications for it is staggering, and more are popping up on daily basis. It is what I’ve always wanted in a semi-mobile device. Years ago I bought the original mini notebook icon, the Asus EEE PC, and while I used it extensively for years, the iPad blows it (and all other netbooks) out of the water.”

tion resembled those in the States when a new Apple product is launched. People were standing in lines in front of the shops that had iPhones in stock. Sales people at Si.mobil commented that already in the first week a few thousand iPhones were sold and it all looks like that iPhone will become bestselling phone in Slovenia by the year’s end. “The Apple iPhone has been a long-standing desire of our users and apparently is still the most

desirable mobile phone in the universe,” says Jure Bohinc, Head of Corporate Communications at Si.mobil. “We were pleasantly surprised with sales as we weren’t used to such big crowds in front of our shops. We even prolonged the working hours on the first day to 10pm. The reason for such an elevated interest is certainly also an advantageous price, because the newest iPhone can be had in all packages starting from 1 euro. Most users have chosen this buying option with according changes to their valid contracts. In short, it is important that users are finally able to buy the iPhone at an affordable price with all the necessary support.” Si.mobil is offering the new iPhone 4 and iPhone 3GS models as well, all starting from one euro buying price if users agree to extend their mobile contract for two years and sign and data plan lease. This means their monthly mobile phone bill will be around EUR 50. For many Slovenians, it is a small price to pay to finally have the world’s best known smartphone in their pockets.

iPhone causes a true mania

The popularity of Apple in Slovenia was further bolstered on June 10 when Si.mobil,the second largest mobile operator in Slovenia, finally found a way to bring the iPhone to the country. The situa-

Taken by surprise: Jure Bohinc, head of corporate communications at Si.mobil says that in order to deal with such big crowds, the company prolonged the working hours on the first day to 10pm.

ECONOMY 17

Opinion

Unexploited Opportunities Since coming to power in 2008, the current government has been increasingly criticised for not doing enough to create an environment for businesses to thrive. The situation seems to have gotten from bad to worse, with two out of four parties leaving the coalition and, ultimately, further deepening an already fragile political and economic situation. With such negative developments and outcomes making constant headlines, we ask Slovenia’s influential managers and businesspeople to share with us their opinion on the current business environment in Slovenia. Jože Colarič, President of the Management Board and Chief Executive, Krka

education programmes in demand by industry is necessary. And last but not least, one of the important factors for economic growth is also a stable and predictable legal environment.

tinues to intervene through ownership shares in many large partly stateowned companies in industries like banking and insurance. In short, we need significant changes in the business environment and they require efficient government.

Nina Zidar Klemenčič, Lawyer and Founder of Attorney’s Office ZIDAR & KLEMENČIČ

Slovenia has made important progress in economic development ever since its independence. It is true that the global crisis has affected our economy, but we still have numerous good companies which know how to make the best of the new circumstances for entering new markets and developing new products. The Slovenian business space is relatively small and this is why the companies, if they wish to make progress, need to focus on export markets where there are still many opportunities for the fast and flexible. We cannot expect any help from a third party in doing this; orientation towards new products, services and their selling is the key factor for good business transactions. In any case an encouraging and stabile business environment can also aid economic growth. I believe that it is vital in the given circumstances that the government enables investment reliefs and stimulations for development investment. Moreover some administrative obstacles should be overcome. Also encouragement and enabling of education can help increase employment; here the support of university

One of the main challenges and risks the Slovenian business environment presents is the lack of transparency and lack of adequate regulation and control, especially when it comes to the issues of competition and state owned enterprises. With the added issues of legal uncertainty in commercial relations, the Slovenian business environment at this point probably does not present itself as very attractive to foreign investors.

Dr Sašo Polanec, Professor of Economics at the Faculty of Economics, University of Ljubljana

It is no exaggeration to say that the Slovenian business environment is extremely bad. With the exception of a highly skilled labour force

– especially in the fields of technical education – and a fairly good infrastructure (telecommunications, electricity and gas supply, roads), we have problems in virtually all areas influenced by the government. One of the worst problems is fairly high labour taxation, which includes highly progressive labour income tax and unlimited proportional social contributions levied on gross wages (in 2008 the government changed income tax rules to feature marginal tax rates exceeding 100 percent for some levels of income). These can, in total, amount to two thirds of total labour costs for highly skilled workers. We can expect that this burden will further increase due to an inability to pass pension and healthcare reform. The government has introduced extensive social safety nets, which reduce the incentive to work for less skilled workers. Moreover, firms are facing rigid firing rules, fairly high severance payments, and long notice periods. All of these labour market problems are effectively the result of the highly powerful trade unions. One of the large problems is also informal economy and tax evasion. The government is unable to create a level playing field in many industries, such as construction and catering, where players that are willing to evade VAT can expand their business. Further, there is pervasive corruption among high government officials, influencing the legislation, public procurement and state-owned companies’ procurement decisions. Finally, government is plagued by inefficient bureaucracy, while firing rules prevent the dismissal of public employees. The government also con-

Professor Dr Danica Purg, President of the IEDC Bled School of Management

The current business environment in Slovenia is characterised by the country’s excellent geographic position in the heart of Europe, which offers interesting opportunities in the field of logistics. As an EU member Slovenia has direct entrance to a consumer market of more than 300 million people. The country is developing from an economy based on a skilled workforce and favourable labour costs, to an economy driven by innovation and high value added products and services. Slovenia also has a great, not fully exploited potential in agribusiness and in tourism. Current research by IEDC-Bled School of Management shows that the environment creates opportunities for a number of socalled “Hidden Champions”: highly innovative and specialised companies holding a leading position in the European, and in some cases even in the world, market. Slovenia could attract July/August 2011

18 ECONOMY even more international business and stimulate a greater entrepreneurial mindset if the political leadership introduced a more favourable and supportive tax regime and legislation.

Dejan Turk, President of the Board, Si.mobil

At present the business environment in Slovenia is by no means encouraging. After years of successful growth and new system adaptation the Slovenian economy, just like all others, is afflicted by the economic crisis. It is true that the crisis was inevitable, but besides the general decline in growth we are troubled by other obstacles which are limiting the competitiveness of the Slovenian economy. Many necessary legislative changes should have been adopted years ago. And so today we are faced with limiting taxation laws, rigid employment legislation, unsettled reforms and so on. These all limit us when it comes to coming out of the crisis as quickly as possible. Moreover the unstable political circumstances do not aid the orderly business environment. However, despite all this I can say that I am an optimist. Good and stable companies with clear ownership are making an effort to work well and to stay

in the market. We are thus going to give the Slovenian economy and the greater public new strengths.

Dr Cvetka Dragoš Jančar, Director and Co-founder of Barsos Medical Centre

Our activity is in a slightly privileged position. However, the surrounding events are nevertheless forcing us to behave in a more modest manner. Now is not the time to show off prosperity, be it privately or in terms of business. But now is an appropriate time for the inner strengthening of a company which includes education and equipment updates. We especially fortify those activities at which we have always excelled. We hope that good times for all will come, but the thought that things could be much worse is comforting. As a doctor, I am bothered by the fact that, on a daily basis, we search for a culprit other than ourselves for our problems. I expect more positive encouragement and the rise of morality not only from health institutions, but also from other institutions. All in all, we should not let bad things remain bad without at least trying to make a small change ourselves.

Dr Roman Glaser, President of the Board of Directors, Perutnina Ptuj

What stands out in the Slovenian environment in an extremely positive manner are its favourable location in a geostrategic sense which we well exploit in Europe and elsewhere; efficient and stable infrastructural connections with the region; hard-

working employees at all levels and consequently top end quality products on both the global and European scale. In this regard also the food industry stands out, creating both tourist and culinary attractiveness. The Slovenian business environment is relatively stable and settled with developed market mechanisms. It is distinguished also by a high degree of technological development and consumer awareness which demands constant development and progress from the business world. Regardless of all the potential there are also factors in Slovenia that negatively affect business. We deal with ourselves too much; the business environment is unfriendly due to negative experiences from the past and the post-transition stigma of entrepreneurship and management. Also we do not have a proper address to turn to within the institutions at the higher level, which is especially manifested in the current period of the political crisis. The public expenses are too high and competitiveness is too low which are both consequences of unrealised structural reforms.

The rapid recovery of the German market and the limited size of the Slovenian economy is the reason, with companies recognising that the Chamber represents a springboard to enter both markets. It is well known that the Slovene companies which were focused on the German market came out of the crisis faster and stronger. At the same time, strong economic growth has driven numerous German investors to enter the Slovenian market.

Tomšičeva 3, 1000 Ljubljana Tel.: +386 1 252 88 60 ahk@ahkslo.si, www.dihk.si

The Slovenia Times

Matjaž Rakovec, President of the Management Board, Triglav Insurance Company (Zavarovalnica Triglav)

Biljana Weber, Director General, Microsoft Slovenija

The Slovene-German Chamber of Commerce has gained 27 new members in the first half of 2011.

The Chamber, with its 200 member companies, belongs to the worldwide network of 120 chambers of commerce. It is the first point of contact and the service centre for bilateral trade. It promotes economic relations between both countries and represents its members.

still there are many opportunities open which are not exploited enough. These opportunities are offered by modern information and communication technologies during the process of new product planning and development as well as its marketing. One such opportunity is surely the internet. McKinsey establishes that companies which know how to use all the internet opportunities grow twice as fast as those which pay little attention to it. In the most developed countries, the internet contributes 3.4 percent to the gross domestic product which is more than the energy or agriculture sectors for example. We wish that individuals, companies and organisations in Slovenia would make full use of these advantages. Therefore we need a business environment that is going to be friendlier towards business ideas and is going to be supported with a modern and branched internet infrastructure which is going to enable innovations, technological development and a determined penetration into foreign markets.

We can find numerous dynamic and innovative companies in the Slovenian business environment that develop products and services for the most demanding international markets as well as the domestic one. But

Due to the integration in the international environment, the global financial crisis has profoundly affected Slovenia too. Its effects in the shape of increasing unemployment and a decline in purchasing power are visible in many fields, insurance companies included. In spite of the still unstable economic circumstances, developments in the Slovenian bank sector and weather events, we at Triglav Group still carry out and exceed the goals of the strategic period. Despite the demanding circumstances we are doing business well and stably. This is confirmed by the long-term bank deposit rating and financial strength rating A of Standards & Poor’s agency which is at the same the highest rating among the financial institutions in Slovenia. With the proper strategy, excellent business is possible even in difficult times. Despite this we in our

19 industry expect some unpleasant factors in the future that are going to affect business transactions. These are especially economic stagnation and consumer behaviour changes which do not only mean the stagnation of purchasing power, but also radical and long-term changes in behaviour. This is the reason I believe that those who are going to succeed will be companies with the knowledge of how to get even closer to the consumer. However, we need to persist with the necessary reforms; retirement and health system reform is especially urgent. These are – together with the stable ownership, owners’ support and expert employees – the key factors for successful business of Triglav Insurance Company and Triglav Group.

Manja Skernišak, Member of the Board of Nova KBM Bank

Slovenian economy is still faced with problems that are primarily structural in nature. In 2009, the Slovenian GDP fell by 7.8 percent while in 2010 we recorded a modest increase of 1.2 percent. Part of the Slovenian economy, which is exportoriented, based on demand in foreign markets expands and improves operating results. Part of the economy, which has been in the past linked to the expansive growth of the construction and real estate sectors, but in the absence of new investment projects and reduced finances is facing liquidity or solvency problems. In order to restart the economic growth, the Slovenian economy needs new investments and their strengthening using the capital which will not increase its financial leverage. Even in the times of crisis, Nova KBM endeavors to remain an important partner for Slovenian companies. Good ideas, business plans and projects will be supported with adequate funding in the future.

Tine Kračun, Director and Founder, Institute for Strategic Solutions

Slovenia is in an excellent geo-strategic position, where on the one side we are a member of the European Union and integrated in other important

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

By Tanja Milovanovič, Profil d.o.o.

Keep it local

“western” spheres of influence, and on the other side we hold the added value of market and society knowledge of the Western Balkans. Slovenia needs to take advantage of this position by starting to export knowledge and attract foreign investors by presenting itself as the starting point for regional expansion. In order to do this, we need to institutionalise and thus further develop the knowledge of Western Balkans and open ourselves to foreign investors. We need to invest in education and promote intellectual services to international corporations. At the Institute for Strategic Solutions we recognise that through scholarship funds and other regional cooperation projects we share and develop and thus ensure progress of economy and society. Slovenia’s economic future lies in promoting regional acceleration of economic cooperation and sustainable development.

Janez Škrabec, Director and Founder, Riko Group

The original sin of the current Slovenian business environment I see in the fact that the state is strongly and overly involved in the economy and controls too large a share of GDP. This is already a problem when we have a well functioning government since the state is not and cannot be the optimal owner of companies. When we have a poor functioning government this borders on disaster. All other problems arise from this original sin.

Since our foundation in 1989 we have constantly been in contact with many international clients, especially after Slovenia became independent country and as such became a target for many foreign investors. Still, whenever some foreign company starts a business in Slovenia, there is always a struggle for us to gain their confidence and start the cooperation. The reason for it is a very simple one. While looking for the right recruiter to hire new employees in a new country, international companies always face the same question: either to take a risk and hire a less known company or to hire a well-known world-wide recruiting company? There are many reasons why foreign companies should seriously consider using the recruitment services of a local provider. Among the most important is that locals know their market in detail. They can therefore provide their clients the most accurate answer possible as to what kind of people they can find and how much time they need to do their work. For example, due to the big crisis in the Slovenian construction industry it is currently much easier for us to find specialists from this field than for example specific IT specialists, which are at the moment quite thin on the ground. Another very relevant argument for recruiters to be locals themselves is the fact that it is much easier for them to motivate appropriate candidates for further selection processes. The motivation process in headhunting is always a challenge and knowing the mindset of the candidate can be sometimes crucial to attracting his or her attention, gaining his or her confidence and finally getting his or hers approval to meet a client. And who can know a candidate better then a local, maybe even someone with whom he or she has already been in contact in the past? Looking from the perspective of our company, we cannot ignore our more than 20 year tradition of work on the Slovenian market and the broad network of contacts that we have managed to establish during this period. Our database now includes more than 30,000 candidates and we are positive there is no international recruiting company with that number of contacts in Slovenia. And we cannot forget another added value that we can offer to all our clients as connoisseurs of the market. Besides excellent new employees, we can provide them useful information about hiring politics in Slovenia itself, for example information about usual reward packages, tax rates and everything else that foreigner should know when hiring new staff in Slovenia. There are still many more arguments for international clients to choose our local company as their recruiting agency, but probably the best argument are our positive references from a broad range of our clients. And who could be a better reference than a satisfied client, who regularly comes back to use our services or just to get a good piece of advice?

PROFIL is an independent human resources management consultancy, established as a limited company with private capital in 1989. It was the first consulting company in Slovenia and in SE Europe to provide executive search and selection services. They operate in Slovenia, Croatia, Serbia, Bosnia and Herzegovina (BiH), Macedonia, Albania, Kosovo and Montenegro. The logo says it all: Three smiling faces, representing happy Client, happy Appointee and happy Consultant.

July/August 2011

20 FOREIGN DIRECT INVESTMENT

NEWS IN BRIEF

source: STA, Slovenian Press Agency

Logistics

Automotive industry

Air India to Stop in Ljubljana

Sava Tires Profitable JAPTI Receives Sava Tires posted revenues of EUR Award

Ljubljana airport is set to serve as a stopover for North America flights of India’s flag carrier. A memorandum of understanding was signed between Air India, airport operator Aerodrom Ljubljana and Slovenia’s airline Adria Airways in New Delhi last month. Adria CEO Klemen Boštjančič says the agreement is one of the steps towards a final contract. He says Air India is only interested in the entire package: “We are talking about an agreement on the supply of fuel in Ljubljana, on taxes charged by the air traffic control.” He says he is confident that such an agreement will be reached. The Indian airline is expected to start servicing the route at the end of March 2012 or with the start of the winter season, meaning the end of October.

374m in 2010, finishing the year with a net profit of EUR 14.3m, the Kranj-based firm has announced. The company is owned by tyre giant Goodyear and, according to director Thierry Villard, the Kranj production plant is operating above the Goodyear average. In its 13-year history and after EUR 170m of investments, its 1,400 employees have produced over 7.12bn tires, mainly for the markets of former Yugoslavia and Albania, with the Slovenian market leading in both the distance travelled and in the number of cars per capita. According to the tyre maker’s financial director Stefan Hourau, the company’s revenues rose by 25 percent in 2010 over the year before and net profit grew by 28 percent. The company changed its name on 1 July to Goodyear Dunlop Sava Tires and says that extensive investments will continue.

Awards

Leading by Example Technology

IBM Innovation Centre Opens in Ljubljana Austrian-Slovenian company BIA Separations has been named one of the most successful high-tech research companies in Europe. The company, a producer for the separation and purification of large biomolecule optimized monolithic chromatographic columns based on their own technology, won the KAPPA-HEALTH AWARD 2011 in recognition of its efforts to participate in European projects in the health sector. The award is a result of a three-year research conducted by KAPPA-Health Task Force amongst the research firms that are participating in EU projects in the field of health (Health Programme FP6 and FP7).

The Slovenian office of the US computer giant IBM has opened an innovation centre for South East Europe in Ljubljana’s commercial district BTC. The centre is intended for companies, universities, developers, IBM’s business partners and others from Slovenia and SE Europe. Visitors will be able to work together with IBM experts to develop innovative solutions based on IBM technologies, get training, perform tests and so on. The aim is to make the centre an important part of Slovenia’s emerging industries and a crossroads of initiatives for development of a new generation of Slovenian entrepreneurs. The centre is the 40th of its kind to open and coincides with IBM’s centenary.

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

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

Home appliances

Real estate

Hi-tech Washing Machine Launched

The Public Agency for Entrepreneurship and Foreign Investments (JAPTI) has been given the International Country Award 2011 for its presentation of Slovenia at this year’s EIRE real estate fair in the Italian city of Milan. Slovenia’s showroom featured four investment projects this year – the Hotel at the former Vrtojba border crossing with Italy, the Komenda Business Zone, the Tobačna City complex in Ljubljana and the SiPark theme park. Matej Skočir of JAPTI believes that Slovenia’s new exhibition stall presented Slovenia in a more noticeable and recognisable way, while also promoting the InvestSlovenia trademark and enabling visual presentations of investment projects.

International trade

Cooperation Memorandum with Moscow City Slovenia has signed a memorandum on cooperation with the government of Moscow City. The deal was signed by then-Economy Minister Darja Radić during an international economic forum in Saint Petersburg in June. The memorandum envisages the formation of a working group that will present possibilities and proposals for cooperation. Radić and head of the Moscow External Economic and International Relations Department Sergei Cheremin highlighted efficient use of energy and IT as the most interesting areas for cooperation. Trade between Slovenia and Russia 80000 70000 60000 Export

50000 40000

Import

30000 20000

Mar 09

Mar 11

Source: SURS

FDI

Bosch has launched a highly advanced new washing machine in Slovenia. EcoLogixx 8 i-DOS not only saves water each year but also greatly increases the convenience of washing clothes. The machine has an intelligent dosing system meaning users simply add liquid detergent and fabric conditioner to the two chambers and leave the system to calculate the exact dosage needed. Special sensors detect the load size, and in the automatic programs, the type of fabric and degree of soiling. A unique precision pump system, as used in the medical sector, then doses the detergent with immense accuracy. Given average use, one fill-up of detergent is enough for around 20 washers. Since excess dosing is avoided, so too are additional rinse cycles to wash out soap suds. Manufacturers say Bosch i-DOS washing machine can save up to 7.062 litres of water every year in comparison to conventional washing machine with manual dosing.

Automotive industry

Revoz to Relaunch Night Shift Renault-owned Slovenian car assembly plant Revoz is to relaunch half of its night shift at the end of August. The shift had been halted in May in response to problems in the supply of car electronics from Japan following the March earthquake and tsunami. Half of the night shift at the Novo mesto-based car assembly line is to be resumed on 29 August and some 300 workers will get back their jobs.

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

13-14 October 2011

Ljubljana, Slovenia

EXECUTIVE-LEVEL CONFERENCE ON FOREIGN DIRECT INVESTMENT

GERMANY Prague

CZECH REPUBLIC Brno

400 km Radius More than 45 mio consumers 11 countries, jointly representing more than 40% of the total GDP of the EU

Stuttgart

SLOVAKIA

Vienna Bratislava

Műnchen

AUSTRIA

Bern

Budapest

SWITZERLAND

HUNGARY SLOVENIA Venezia

Ljubljana

Milan

ROMANIA

Zagreb

CROATIA Belgrade

BIH

Bologna

Sarajevo

ITALY

SERBIA

MONTENEGRO

BULGARIA

Rome

MACEDONIA ALBANIA

EXPANDING THE POTENTIAL AS A REGIONAL HUB The FDI Summit Slovenia 2011 is a great platform to efficiently explore the opportunities in Slovenia learn from the experience from existing investors grow your network of top executives in Slovenia and the region Organised under the patronage of the President of the Republic of Slovenia, Dr. Danilo Türk +386 1 520 50 85

info@fdi.si www.fdi.si

Organised by

22 FOREIGN DIRECT INVESTMENT

Home appliances

BSH Hišni Aparati Plans Significant Expansion BSH Hišni aparati is to launch several new products and extend its competence in the manufacture of coffee and hot beverage appliances, the firm has announced.

ew production capacities will be necessary as a result, particularly in the field of assembly and production of semi-finished products. The firm is to therefore invest more than EUR 10m in the next five years in modern technological equipment in the processing of thermoplastics, assembly lines and packaging. The expansion of the business will also require the strengthening of particular departments, most notably research and development. The firm plans to employ around 50 professionals in various fields. Due to very intensive employment in the last period – from 2007 to 2010 number of employees

increased by nearly 450, of which more than were 80 technical experts – and the unfavourable business location, the company is to open an R&D office in Ljubljana. It believes this will provide greater opportunities for employment of technical experts but also improve the prospects for cooperation with different R&D institutions. All t he pla n s will g reatly strengthen the position of BSH Hišni aparati within the BSH Group as development and production centre in Europe for both small motor-driven food-preparation appliances and fully automatic coffee machines. The share of products younger than three years in the production range

is expected to increase from the current 45 percent to 60 percent. The total production quantity will also grow and the structure of production assortments will change in favour of more sophisticated and higher value-added products.

Wit h it s appl i a n ce s f r om Nazarje MUM5 Styline and coffee machine EQ5 the company received the Gold GZS Innovation award on the local (SavinjskoŠaleška valley) level and are now competing on national level for the GZS Innovation award.

Automotive industry

Saturnus, a Bright Star in the Automotive Industry Not many Slovenian companies can boast a history that dates back to the times before the Second World War. Hella Saturnus Slovenia can, however, and celebrated its 90th anniversary late last month. Less than a century after its foundation the manufacturer has become a key player in the automotive industry. By Miran Varga

The Slovenia Times

automotive revolution Saturnus found its way to this car industry. In the 1960s and 1970s the company signed some very important foreign automotive partners and

started developing and manufacturing products for major European automotive brands, such as Renault, Simca, Citroen, Peugeot and Volkswagen. Photo: Marko Miklavc

oday Hella Saturnus Slovenia is a part of the international manufacturing chain Hella Group and one of the largest Slovenian exporters. With approximately 1,900 employees, considerable experience in the development and manufacturing of automotive equipment – especially lighting parts – the company is a key and top quality parts supplier for many renowned automotive brands. It is also one of Slovenia’s top exporters, with 91 percent of what it produces going to foreign countries. The company had modest beginnings. It was founded as a small-scale workshop run by Emil Lajovic and started with the manufacture of tin boxes. Less than three years, later Saturnus employed more than 10 people and moved to a new factory. After the war and in the midst of the

In 1973 Saturnus organised its first rally competition for its employees. Only five years later it became a national event and in 1981 an international one. Rally Saturnus has taken place every year since.

According to Christof Droste, managing director of Hella Saturnus Slovenia, the company’s philosophy is simple: to be the best in class in Slovenia: “We want to lead with innovative products, processes and services and therefore stay an extremely competitive location inside the Hella Network,” he explains. “Our investment plan is to inject another 60 million euros into our research, development and production of automotive headlights and fog lights in the next five years.” The Hella Group has already entrusted Hella Saturnus Slovenia with a role as the world competence centre for the development and production of additional headlamps for new vehicles. So the star of Slovenian automotive industry will shine even more in the future.

FOREIGN DIRECT INVESTMENT 23

Interview: Gertrud Rantzen, president of the SlovenianGerman Chamber of Commerce

Trading Partners Being one of Slovenia’s biggest trade partners, it doesn’t come as a surprise that the Slovenian-German Chamber of Commerce is the strongest one in the country. The chamber’s president Gertrud Rantzen says that Slovenia can learn a great deal from Germany – and that his organisation is ready to help it do so. By Maja Dragović can take from Germany’s example and learn from its success? There is structural crisis in Slovenia. Slovenia has to do the homework in privatisation, this is very, very important. It also needs to open the market for foreign investment, especially in the construction industry. There are still a lot of things to do. It was fine during the time when Slovenia became an EU member. But since 2004 Slovenia is a part of new community. If it wants to play an important role [in the community], it needs to open up its own economy a bit more and welcome foreign investors. [With foreign direct investment] you can get different sides, points of view and this is interesting. It’s a chance for exchange and different ideas. This can be a new challenge for Slovenia. Flexibility in labour policy is another challenge.

Who can become a member of the German-Slovenian Chamber of Commerce? How much does it cost and what are the benefits? Any company which is connected in any way with Germany and Slovenia: it can be a German company here or a Slovene company exporting to Germany or with an interest in Germany. The membership fee is flat at EUR 1,000 per year except for very small companies which pay half of that. There are a lot of advantages to becoming our member: we provide information regarding both countries, there is a help page on the internet, monthly newsletter, and members are listed on the internet. We also help with paperwork and tax advice. We are the strongest foreign chamber in Slovenia. What sort of companies make up the chamber? The German investors in Slovenia and Slovenian companies who export to Germany are the majority of our members. Our main sectors are automotive industry, pharmaceuticals, electro industry. So we’re not so strong in services, but they’re coming. Lawyers, language schools, on the trade we have those companies like Lidl. But the majority comes from the production sector. However, since the onset of crisis, more requests are coming from smaller and medium sized companies. Despite the European and global financial troubles, the German economy is not only growing but booming. Where do you see the reason for this? Everybody’s surprised. But Germany did its homework at the beginning of the century. We made the reforms that were necessary, made some changes in the labour market such as flexible working hours. The booming Germany is driven by the demand from China and Russia. Slovenia is very much dependent on German partners. Is it safe for Slovenia to rely as much as it does on German growth?

That depends. If you’re successful in the German market, you’re successful everywhere. There is a very highly competitive market in Germany. Slovenia should make an effort to maintain its presence in Germany. But it’s a demanding market and the smaller companies face a lot of problems and we are here to help them. I think Slovenia should focus on European markets overall – maintain the German one and also go further afield. Where do you see Slovenia’s biggest potential and do you think the government is doing enough to promote it? Slvoenia’s biggest potential is in the tourist industry. The government needs to figure out how to make Slovenia more attractive as a destination, it needs to create more awareness. There is also a great deal of potential in new technologies. Slovenia needs to get away from the sub-contractive industry. Research and development is fine, but also you need the companies to link to it and here there is room for improvement. Small companies are doing this, but this is the creative Slovenia. [Slovenia

should] focus on that. A lot of potential is also in the wood sector, including the furniture industry. The sector has been in decline and Slovenia doesn’t have production here and it should develop it. In what way do you see the potential in tourism? Slovenia needs to create more awareness. In general it’s facing two challenges. The first challenge is that the profession [in the industry] doesn’t have a good image, it is not very attractive in terms of the working hours, and it is not very well paid. As an employer you need to try to create more travel attractiveness. The second challenge is to create more awareness of Slovenia in other countries like Italy and Germany where people might be interested in staying here, but are currently just driving through on the way to Croatia. More focus needs to be put on Slovenia as a whole tourist destination and not only to a single region, spa, hotel etc. It needs to take advantage of its smallness. Obviously Slovenia and Germany are very different countries but is there anything that Slovenia

The Chamber celebrates its fifth anniversary this year. What activities do you have planned? At the end of October we are celebrating our fifth anniversary with the Deutsche Ball. We have some special guests in mind. Otherwise, we have 40 events a year – both big and small, as well as workshops. It is our plan to support small and medium companies in the new technologies. One plan is that in March 2012 we want to have a Slovenian Pavilion at Cebit in Hannover which is the most important trade fair in the field of new technologies. There’s going to be a kickoff show, event, and a workshop to present our plan. We want to contribute to the recognisability of Slovene products and not just the tourist segment. There is also going to be a renewable energy symposium in November in Slovenia. New technologies from Germany, efficiency policies and so on will be presented there. We will bring in experts from Germany and they have bilateral meetings for three days with the Slovenian experts. There is also going to be a summer party for our members in August. July/August 2011

Photo: BOBO

24 FOREIGN DIRECT INVESTMENT

Expansion in ex-Yu countries

Conquering the Balkans Many Slovenian companies are looking southwards for investment opportunities, leading the charge into a relatively untapped market. Despite Slovenia’s split with the other republics of the former Yugoslavia, relations with each constituent nation remain quite amicable. For many Slovenian businesses investing into a region that they already have some level of familiarity with presents a highly strategic advantage. Not only do these Slovenian businesses know their customers but these customers are familiar with these Slovenian businesses. By Andrew Bratina

n recent decades the Western Balkans have attracted some of the lowest levels of foreign direct investment in Europe, due in part to the messy situation after the break up Yugoslavia. According to the latest Bank of Slovenia Direct Investment Report, by the end of 2009 Slovenian companies had invested 68.8 percent of the total FDIs received in the countries of the former Yugoslavia. All of these investments were in greenfield projects, while Slovenia’s total contribution in Croatian and Serbian brownfield investments represented 24 percent and 21.2 percent respectfully. Some of the most successful blue chip Slovenian companies are growing their businesses in the former Yugoslav countries. Although in some cases already having a presence in the region’s markets before Yugoslavia’s demise, most businesses are now engaging in more aggressive market expansion campaigns.

Back in time

Slovenia’s companies already had a strong presence when it was still a part of Yugoslavia. Brands such as Slovenijales and Lesnina The Slovenia Times

supplied wood products all over the Balkans; Peko and Mura sold high quality footwear and textile products; and Laško and Fructal beverages quenched the thirsts of most Yugoslavs from time to time. In the present day, all these companies besides Mura continue to operate and supply products to most of the former Yugoslav markets. There are of course others that have failed to survive but many new businesses have been quick to maintain and strengthen Slovenian business presence in the region.

Retail expansion

With a presence in seven countries in the Western Balkans, retail chain group Mercator certainly represents one of Slovenia’s most impressive market expansions in the region. Besides Slovenia, they have stores in Croatia (entry in the market in 2000), Serbia (2001), Bosnia and Herzegovina (2003), Montenegro (2007), Bulgaria and Albania (2009). They are also keen to expand into the Macedonian market. The company says the Balkans is a focal point for the company’s development strategy. “We want to be present in the region

in the mid to long term, because these countries have the potential to grow,” the firm says. Mercator is confident of its success in these markets and attributes it to the fact that they “know the local business environment well and know the culture and have the ex-

FOREIGN DIRECT INVESTMENT 25 pertise to meet the needs and expectations of the consumers«. Knowing their consumers and understanding the “Slavic mentality” is something that Mercator stresses as their decision for expansion in the region, explaining that they feel “well-acquainted with this type of consumer”. They also argue that Slovenian businesses and brands are valued in the region. Despite this they agree that it is a varied but compact region, which is why the retail chain’s strategy is successful. “We don’t ‘copy-paste’ solutions from one market to another as many global retailers do, we carefully sort out best solutions for each market even on a micro-location level,” the firm says. Mercator is now the market leader in Slovenia and Montenegro, the second largest retailer in Croatia and Serbia, and third in Bosnia and Herzegovina. It looks set to enhance this position in South-Eastern Europe in the long-term saying: “This is the place where we want to do our business”.

Keeping up appliances

They are not alone. The Gorenje Group, a leading producer of household appliances, has a well established history extending back to the time of the former Yugoslavia. Established in the early 1950s, just a decade later the company’s products were being used by West German customers. Today the business has expanded even more and over 90 percent of Gorenje’s products are purchased in 70 countries around the world including Australia, USA, the Middle East and Asia. Just recently the compa ny bought the prestigious Scandina-

vian appliance maker Asko and will continue production locally. For decades the global brand has held strong sales in foreign countries by creating employment for its consumers, mostly in the form of production facilities, something it has also implemented for its Serbian market. “In Serbia we are establishing our third production facility in Zaječar, where the shells for washing machines, dryers and plastic wash basis will be produced,” the company explains. Prior to 1991, all of Yugoslavia was considered as Gorenje’s domestic market, but even today the company maintains the position as the leading brand of household appliances in each of the ex-Yugoslav republics, despite fierce competition. With Serbian production facilities and vast networks of showrooms and stores, the brand is focused on maintaining its local market share. Gorenje has chosen to open up a production plant in Serbia not only because of the country’s cheap labour force and favourable FDI incentives. Serbia also has a free trade agreement with Russia and Gorenje plans to make most of this opportunity to expand into the huge Russian market. Gorenje has ambitions further afield too and is continuing to expand to new markets like Brazil, where it sold its first few appliances only months ago. Another niche for the group is the sale of premium consumer appliance products to the Hong Kong and Chinese markets.

The right medicine

Pharmaceutical giant Krka is also well established in the Balkans. Krka’s business seems to be growing and currently its products sell in over 70 coun-

Failed attempt: Tuš was forced to sell its supermarket chain in Serbia

Taking advantage: Gorenje has moved some of its production to Serbia to make most of incentives given by the country’s government

tries. Last year it generated turnover amounting to around EUR 905m. Of this total just over EUR 132m came from South East Europe (mostly from Croatia and Romania). According to Krka, the company is now looking at other places rather than the ex-Yugoslav markets. “Although total exports grew by 10 percent last year, the southeastern European region (including ex Yugoslavia) only generated 14 percent of total revenue compared to 29 percent of sales received from Central European markets (which includes Poland, Czech and Hungary) and 26 percent from Eastern Europe,” the firm says. “Closely following were the Western European and international markets which made up 21 percent of sales (mainly Germany, Great Britain, France, and the Scandinavian countries)”. Although there might be room to grow, for Krka the Yugoslavian market may not be such a focus, but like Mercator there is a strong link to “Slavic societies”. In recent years the company has invested into production facilities including one in Croatia. With most of the sales from former Yugoslavia coming from this country, the company is considering establishing production facilities in other ex-Yugoslav countries especially considering the likely future of healthcare. ‘Trends indicate that the generic pharmaceutical industry will further develop in the future,” the firm explains. “Due to austerity measures planned in the field of health care, health care providers [have] started prioritising generic products, because they are aware that they offer quality, safety and efficacy as well they are more accessible in terms of price. With lower pricing levels the economy of scale is gaining importance for us all”. Although Krka plans to maintain its markets in the former Yugoslavia, it is firmly focused on building its market share glo-

bally. “Our key market in is the Russian Federation, which also remains the company’s largest individual market. Other important markets in this part of the world are Ukraine, Uzbekistan and Kazakhstan.”

What the future holds

Despite varying levels of importance placed on the ex-Yugoslav markets, most large Slovenian businesses and exporters couldn’t imagine not having some kind of cooperation with their southern neighbours. The Merkur Group, a hardware and electronics retailer with a 115-year history, has been opening branches in the ex-Yugoslav states since the 1980s. Despite strong local competition, the company is today one of the largest hardware and electronics chains in the region. Other enterprises which have similar ambitions are showing that their first important trade partners are those from the Balkans. Perutnina Ptuj, a poultry food processing company has subsidiaries in most former Yugoslav countries and is arguably the best producer of poultry products in the region. However it is not always success for Slovenian investors in ex-Yugolsav markets. Retailer Tuš tried expanding its supermarket store concept into the Serbian market recently but due to financial problems had to sell its Serbian supermarket chain to Croatian retail giant, Agrokor. Despite the warnings that come from the media and economists alike that Slovenian companies need to look beyond their comfort zone in the Balkans, many Slovenian companies still mainly turn to the region when expanding beyond Slovenia. Due to cultural similarities, investing in the Balkans is seen as less risky but also as the first stepping stone in the attempt to expand globally. The safe strategy has worked for many for now but what will work in the future is dividing opinion. July/August 2011

26 FOREIGN DIRECT INVESTMENT

IEDC conference

Making the Most of Opportunities Last month the European Leadership Centre (ELC), which operates at the IEDC-Bled School of Management, organised a conference entitled “The EU and Russia: Business opportunities and challenges of leadership.” At the conference, 99 representatives from business, government, non-governmental organisations, the media, academia and other relevant fields discussed the interconnectivity of the EU and Russia, the similarities and differences, and ways to create new leadership approaches in order to strengthen cooperation. It seems the biggest opportunities lie in connecting small and medium-sized enterprises. By Mateja Novak

resident of the Academy of National Economy of the Russian Federation, Professor Dr Vladimir Mau and chairman of the Russian Association for Business Education (RABE) Professor Dr Sergey Myasoedov both stressed out that the EU is already an important economic partner for Russia. Some 53 percent of Russian exports are to the EU, while the share of imports from the EU is around 52 percent. It was also stressed that the Russian perception of individual countries of the EU is much more positive than that of the EU as a whole, which is attributable to differences in the understanding of fundamental values and lack of mutual trust. Alojz Peterle, member of the European Parliament and vice president of the EU delegation to Russia, also argued that Europe should reconsider its own values: “Geography is not important, the history may be more important, but most important is what we want to do together.” The conference was chaired by Dr Erhard Busek, President of the Institute for the Danube Region and Central Europe. He argued that relations between the EU and Russia “are extremely important for our common future, not only in the energy sector and economy, but also for understanding the

rights in Russia. This is bad for the banking business; makes it difficult to buy real estate in Russia; and the tax system is problematic as well as bureaucracy in general.

Removing obstacles

Tolerance is key: conference participants agreed that EU and Russia should not impose each other’s values on each other, but embrace the differences

political role of Europe and Russia in the process of globalisation.” For that cooperation to occur he believes that “we need to get to know each other and develop mutual empathy; secondly, we must use language that is understood by both sides; and thirdly, we have to have a common will to solve the problems that exist.” Russian Ambassador to Slovenia Doku Zavgayev said that the conference itself is proof that there are no major obstacles for boosting cooperation between Russia and EU, expressing hope that the EU-Russia summit in June would bring concrete steps for visa facilitation.

From the left: H.E. Doku Zavgayev, Eduard Vayno, Dr Danica Purg The Slovenia Times

Problems exist

An interesting discussion panel on trade, direct investment and joint ventures – moderated by Dr Peter Kraljič, a retired director and partner of consulting firm McKinsey – raised a number of issues. Panellists, who included Branislav Grujić, co-owner and president of the PSP-Farman Holding, Janez Škrabec, chief executive of Riko, Eduard Vaino, vice president of Avtovaz and Johann Strobl, member of the board and director of risk management at Raiffeisen Bank International, spoke on barriers to joint ventures between the EU and Russia. They see the main issues as lack of mutual knowledge, complex administrative procedures, lack of developed infrastructure in Russia and limited movement of people. The key success factors were highlighted as the mutual understanding of cultures, education of managers and courage. The discussion touched upon corruption in Russia, but Grujić said that although it is a problem it is also “a way to speed up business”. Panellists agreed that Russia’s biggest problem is administrative regulation. Stoble also cited the problem of uncertain property

The President of the SlovenianRussian business council Janez Škrabec also noted that there are still many obstacles for EU and Slovenian companies trying to enter the Russian market. In regards to Slovenia, this is reflected in the fact that trading is almost exclusively limited to ten Slovenian companies that have been present in Russia for decades. Russians are aware that Slovenia is strategically important for them as the western-most Slavic country, he argued, pointing to increased political ties between the country with visits like that of Russian Prime Minister Vladimir Putin in March. Škrabec added that absolute data on trade between the countries showed a slight decrease, but when the effects of the economic crisis are considered, cooperation can be said to have improved relatively speaking. The lack of Russian investment in the EU was also addressed but panellists said that the simple reason for this is that Russians expect big and fast returns – something which tends to be lacking in the EU. The other problem is the restricted movement of people and all agreed that visas for Russians should be removed. Regardless of the persisting problems, participants agreed that Russia is a land with endless opportunities and that some problems in the country, such as the lack of infrastructure, present an opportunity in itself. But to make the most of opportunities on either side, the mutual mistrust is ever present when it comes to business has to be overcome.

FOREIGN DIRECT INVESTMENT 27

Interview: Christopher Jackson, Hong Kong Trade Development Council

Networking is Key Hong Kong’s success story as a regional hub may not be headline grabbing news. But for Slovenia, which has ambitions to become a regional hub in its own right, it is a fascinating case study. Christopher Jackson, former assistant director of the Hong Kong Trade Development Council (TDC) – statutory organisation responsible for promoting and developing Hong Kong’s external trade – says there are many reasons behind Hong Kong’s success, and many lessons that Slovenia can learn from its experience. By Maja Dragović What has made Hong Kong a business hub? In 1945 the main question was: how to reconstruct Hong Kong? There are several blocks that have made Hong Kong what it is today. One of them is the open trade. We have had zero tariffs on imports right from the start and this has helped to develop Hong Kong. The impact of the taxes is interesting because at the same time we did continue to have excise duties on wines and spirits. It’s only been three years since we stopped having them. But we have become a major wine hub: wine trading, wine auctions – Hong Kong is second only to London in wine trading. So zero import duties have had an enormous impact on Hong Kong developing into a hub. Are there any similarities between Slovenia and Hong Kong? Hong Kong has similarities with Slovenia: it has legal tradition, clear government, and clear rules. There is this familiarity with English which Slovenia has developed too. We pegged ourselves to the US dollar in 1993. This is similar to the Slovenian Euro situation – a small economy linking itself to a bigger economy. The long term benefits of that move have been very good – we have become a financial centre. As most of the business in the world is made in US dollars, doubting us would virtually mean doubting the US dollar. We gained currency stability, but it came along with some tough discipline. Another key element is logistics. If we look at Koper: it has a small port, but it is doing very well. We have one of the busiest container ports in the world. And if you combine it with the border, if you put the two together, it’s the big-

gest port area in the world. However impressive and busy our port is, the value of trade coming out of the port is smaller than the one coming out of our airport. The air cargo hub is now the busiest in the world, the biggest in terms of value of trade. What are the main reasons behind Hong Kong’s success? One of the reasons why Hong Kong is successful is the developing trade shows. The Trade Development Council now runs over 30 percent of them. We are not the only trade organisers, but we were the ones who developed the backbone of the industry. We have ten of Asia’s biggest fairs and three of the world’s biggest fairs. For us the proximity of China is very important too. Most of the manufacturing has gone to China, but we are not changing that because of our strengths: putting the deals together, raising the money in the finance, having the trade shows, logistics – Hong Kong has become much more of a service centre. Our GDP is now 90 percent services. And those services relate closely to trade, but are beginning to develop a power of their own, especially in the financing sector. Hong Kong is a major banking player and a very important stock exchange. Last year the value of initial public offerings was greater than anywhere else in the world, largely because of China. For 12 years TDC was made responsible for the promotion of services which are very close to products. For example, every January the Asian financial forum is organised which is a great opportunity for financial people to come here and meet their regional counterparts. This is superb networking. Also there are

other fairs that have bridged the gap between products and services, such as the Eco expo fair for environmental technologies: part of it is about products, a lot of it is about technologies (solar panels, electric cars etc). This is also useful for Slovenia and the EU: how to bring services and products together. How is the Trade Development Council organised? We have 40 overseas offices. Ten of our offices are in mainland China. A very important part of our focus is to help companies based in Hong Kong to gain access to this extraordinary emerging market – not an easy market, but one which is growing rapidly. There are various ways of doing that; one is to have a strong position in the domestic market in Hong Kong. 23 million mainland Chinese come to Hong Kong to shop and later on they talk about it at home. Consumer behaviour of Hong Kong is very influential on the Chinese. So to sell products or offer services here is a good starting point. But the Chinese market is not the only one of course and we in Hong Kong

have to avoid putting all our eggs into one basket. We mustn’t forget traditional markets like America and Europe as well as other markets in the region, such as Japan and Korea. A big, new and exciting market is Indonesia because of its size and also because its economy is doing quite well and is opening up and becoming more liberal. We also encourage business people to go further afield to new markets. We have consultancies in South America, the USA, Canada, Europe and Dubai. Russia is also an interesting market for Hong Kong. With these 40 offices we have business associations all over the world, we have 13,000 business associates who are essentially unpaid ambassadors who want to do business or have lived in Hong Kong and are part of the Hong Kong business association federation network. We have a very big database of companies – more than five million. We don’t have one in Slovenia yet, however. [To open an office] we need a group of people who are interested in doing business with Hong Kong. July/August 2011

28 INOVATION SPECIAL

Mobile applications

Top Cat In July 2010, a company by the name of Outfit7 launched a new program onto Apple’s popular app store. “Talking Tom Cat” has a simple premise – talk to an animated cat and he will talk back to you; stroke him and he will purr. Yet just twelve months after he first made his virtual entrance, this little cat lives on millions of iPhones and iPads worldwide. And if their Slovenian creators have their way, he and other characters will soon be making it onto other screens: those of television and cinema. By Claire Read

Of course there were games and other gimmick applications before Talking Tom but none had been made in such an interactive and simple way. In years gone by, there were these electronic watch-size toys which imitated a pet, so the idea is not that new, but it’s just been ported to a new, very powerful platform.

om, a little grey tabby with huge eyes and dominant whiskers, is arguably the world’s coolest cat. This is a feline with almost 500,000 fans on Facebook; thousands of followers on Twitter; and a starring role in some 12,000 videos on YouTube. What few of Tom’s many fans likely realise, though, is that he hails from Slovenia. For the app in which Tom takes centre stage was developed by Outfit7, a software development firm headed by Slovenes Andrej Nabergoj and Samo Login and largely based in Ljubljana. What that means is that this animated electronic cat – reportedly bought by Login for just EUR 40 – has become one of Slovenia’s biggest exports. Talking Tom 2, an updated version of the app released in May 2011, secured 1.8 million downloads in just two days and went to the top of the apps charts in an incredible 70 countries.

Simple but powerful

According to Lukasz Knap, a software developer based in London, the app’s simultaneous simplicity and power is a key reason for its success. “Of course there were games and other gimmick applications before Talking Tom but none had been made in such an interactive and simple way,” Knap explains. “In years gone by, there were these electronic watch-size toys which imitated a pet, so I guess the idea is not that new, but it’s just been ported to a new, very powerful platform.”

Would you like ice cream with that?

Knap says the low cost of Talking Tom hasn’t hurt his success either: anyone can download him for free. Which is not to say that Outfit7 isn’t bringing in any cash. For a start, some of their newer apps – Tom now has multiple “brother and sister” talking characters, from bacteria to baby hippos – do involve a charge to download. But their many free apps, including Tom, also bring in revenue thanks to a clever scheme of so-called in-app purchases. So while users can get Gina the Giraffe for free, their experience of the app enhanced if they buy, say, an ice cream for Gina to munch on. It is an approach which seems to be working. While Outfit7 remain unwilling or unable to confirm exactly how much money they are making, they have reported that they made $200,000 alone on Christmas Day 2010.

From Ljubljana to Los Angeles

Creative mind: Andrej Nabergoj is the man behind the Talking Tom Cat The Slovenia Times

At present, of course, fans of Talking Tom can only buy the app version of him. But what if there were a cuddly toy version

which could be waiting under the Christmas tree on December 25? Or if he starred in his own TV series which subsequently became available on DVD? What about a Talking Tom picture book? Outfit7 clearly believe these are all realistic ways in which to expand the business, with Nabegoj publicly stating that his aim is for Outfit 7 to become the next Disney or Pixar. To that end, the firm has recently hired Paul Baldwin, a marketing executive who was involved in taking video game character Lara Croft from consoles to cinemas. That’s far from all. Late last month the firm signed a deal with Beanstalk, a licensing agency which plans to launch toys, books and other goods based around the talking characters. And it announced a signed deal with Ari Emanuel, the co-chief executive of talent agency William Morris Entertainment. Emanuel is set to help extend the brand into movies and television. Knap says such developments are not entirely without precedent: “It’s been a similar story with games like Angry Birds,” he explains. “After success on the device apps market they have started building a brand, making more money by selling toys based on the characters in the app, posters, other gadgets and all sorts of merchandise.” “This shows that there’s still place on the overwhelmed market for new and original but even simple ideas. A company that is not known a year ago can make millions now.” It seems a little Slovenian company which bought an animated cat for EUR 40 may just be proof of that.

DIPLOMATIC SOCIETY 29

Interview: H.E. Cezary Król, Ambassador of Poland

Reliable Partner Poland has been a member of the European Union since 2004 but may still be seen by some as one of the less mature members of the organisation. It is a perception which is set to be swept away once and for all this year as the country takes up the presidency of the EU. According to Polish Ambassador to Slovenia, Cezary Król, the nation has plenty of plans for this important period. By Maja Dragović Poland took over the European Union presidency on 1 July. What does this mean for Poland? It meant a lot of preparation over the last two years because we want to do it professionally and in a manner that would prove once again that we are mature and full members of the European Union. We want to be perceived as competitive, competent and a reliable member of the European Union. Sometimes there is still the impression that new member states remain the “younger brothers” of the whole community. We are going to organise ministerial meetings in such a way as to promote Poland’s various regions and five cities have been chosen as venues for those meetings: Krakow, Sopot, Wroclaw, Poznan and Warsaw. What are the objectives of the Polish presidency? Taking into consideration what is happening in the EU at the moment, the main objective is to rebuild confidence and trust amongst member states. We also want to strengthen the spirit of solidarity which is quite important for us in Poland due to our history but especially in a situation where we all felt, quite painfully, the economic crisis. What are the priorities of the Polish presidency? We would like the EU’s economy to continue to grow; to be secure and open. The growing bit is especially important because this relates to the crisis and economic problems. We would like to concentrate on the internal market, to make it function better. We would also like to concentrate on things that are important to ordinary citizens such as pushing forward the concept of e-commerce – until now, up to 60 percent of economic activity in this area in the EU has been blocked by regulations. So we would like to make it more open for people to trade easier. We

would also like to focus on roaming services. It has been improved significantly but we would like to make it even better. Another huge part of the economic aspect is making Europe more competitive because the other centres around the world are growing pretty fast and definitely have less restriction than we have in the European Union. For example, we are also trying to push forward the idea of European patenting system, to make it much easier in order to make European companies more competitive. We will also focus on the Eastern Partnership – it is important to have a balance between the southern and eastern neighbours, this does not impede on the unity of the Union but ensures there is the right balance between the member states. In addition, we want to focus on energy security and developing an external energy policy, as well as developing the common foreign and security policy. The European Union has entered a phase of some pessimism since the 2005 rejection of the draft constitution in France and the Netherlands, and especially since the financial and economic crisis since 2008. So Poland is taking over the presidency at troubling times for EU and there are significant challenges ahead. How do you plan to overcome them? Well, in a way we are in a comfortable position. Over 80 percent of public opinion in Poland supports our membership of the EU and this is probably the highest rate in Europe. But we have also been lucky to avoid the crisis so it is probably a good example how this can be done. It was obviously not an accident but a result of rather painful transformations and reforms that we have been doing for the last 20 years. We have knowhow that we think should be taken into account in other European countries.

Even our farmers, who were most suspicious of EU membership, have come around and are now its supporters. We want to make visible the obvious advantages of the Union which are currently neglected, such as the EU funds that help, for example, small and medium sized enterprises that help drive the economic growth. Poland will not only preside over ministerial meetings, but former Polish Prime Minister Jerzy Buzek is the current president of the European Parliament, and the Pole Janusz Lewandowski is the current commissioner for financial programming and budget. What impact will these facts have in practice? This is nothing but a coincidence, a good coincidence but a coincidence nevertheless. It is not about promoting your own national interests and we do not intend to push the interests of Poland alone. We are going to represent the interests of the EU as a whole. Despite good economic performance, Poland is not yet among

the new EU members that have succeeded in joining the eurozone. Considering the latest developments with the Euro, this actually might not be such a negative outcome? We are obliged by the Treaty to join the Euro eventually, which we will. We were on course to join in 2014 or 2015 but due to the crisis this might happen a little bit later. We want to make sure that we are fully prepared to adopt the Euro, learn from the mistakes that happened in the past. We are being responsible and professional as we do not want to rush into anything. What are your embassy’s priorities in Slovenia in the next six months? We organised a big jazz concert in Križanke on 1 July to mark the beginning of our Presidency. The concert was held by Grzech Piotrowski and World Orchestra that consisted of musicians from all over the globe. Beside the concert, we plan to organise at least one cultural event a month to make sure that Poland remains visible in the eyes of Slovenians. July/August 2011

30 DIPLOMATIC SOCIETY

EMBASSY DIARIES British embassy

Japanese embassy

Hungarian embassy

AmCham

Red Arrows Impress Slovenes

Japanese Film Week

Drawing Interest

New President

The embassy of Japan in Slovenia, Slovenian Cinematheque and Japan Foundation organised a Japanese film week. Seven films were screened between 1st and 4th June at the Slovenian Cinematheque as part of its regular programme. An additional four films from its archives were also selected. The films featured some of the great names of Japanese cinema including the immortal classic Shohei Imamura and his adaptation of the fantastic tale The Ballad of Narayama. The audience was able to see the films free of charge.

The Hungarian embassy in collaboration with the Municipality of Koper and Ecologists Without Borders last month organised a festival of street art Koper. The festival formed part of the Hungarian EU presidency and focused on the two priority areas: water and environmental conservation. Hungarian street artists who worked under the supervision of famous Hungarian artist Attila Stark adorned the derelict harbour building with their paintings which all depicted water. Besides painting other different forms of the contemporary urban art were presented. The significance of environment protection was further stressed by young Hungarian designers who made clothes, bags and accessories from usually discarded materials.

Visitors to Slovenia’s biggest aviation meeting were able to see flyovers from more than 40 helicopters and aeroplanes, including a performance by the world-famous Red Arrows aerobatics team from Great Britain, at Maribor airport in June. Dubbed “Aviofun 2011”, the show was dedicated to celebrating the twentieth anniversary of Slovenia’s independence while also marking Slovenian Aviators’ Day. This was the RAF aerobatics team’s first appearance in Slovenia and they participated for free – the usual charge is EUR 1m to EUR 1.5m. More than 15,000 visitors were glued to the skies for a 40 minute performance by the British pilots.

Bulgarian embassy

Official Visit of the President

Photo: STA

The president of Bulgaria Georgi Parvanov has paid a two-day visit to Slovenia. His delegation met with the Slovenian president, premier and president of the National Assembly as well as the mayor of Ljubljana. As well as sharing views on the good relationship between the countries and agreement on many issues from the European agenda, the visit highlighted the mutual support of both countries’ candidacy to become non-permanent members of the United Nations Security Council. Parvanov and President Türk also opened a Slovenian-Bulgarian business conference. The opening was attended by more than 30 companies from both countries.

The Slovenia Times

Moroccan embassy German embassy

Bundestag Bikers on Tour A group of 199 German politicians arrived in Slovenia last month, all on two wheels. The “Bundestag bikers” were received by the president of the Slovenian National Assembly Pavel Gantar and later welcomed by German ambassador Werner Burkart with a picnic in the garden of the embassy. The picnic also drew guests from the Slovenian ministries, embassies and other institutions. The Bundestag bikers organise a tour which leads them to different European capitals every year and it always includes a visit to a national parliament.

Hungarian embassy

Classical Photo Masters’ Exhibition The Hungarian ambassador István Szent-Iványi has inaugurated a major exhibition of classical masters of Hungarian photography. The selection presents work by five Hungarian artists who were all revolutionary and innovative in their time and are still powerful several decades later. The work of Brassai, André Kertesz, Robert Capa, Lázslo Moholy-Nagy and Marton Munkácsi will be on display at the Photon gallery until 22 July.

Morocco Meets Slovenia

The American Chamber of Commerce in Slovenia has elected a new president and four new members of the Board of Governors. Matej Potokar, the Director of the Group for Microsoft Business Solutions for the Middle and East Europe Regions, will serve as Preident from June 2011 until June 2013. Meanwhile Sandi Češko, Studio Moderna; Matjaž Rakovec, Triglav Insurance Company; Thierry Villard, Goodyear/Sava Tires; and Nataša Jenčič, Merck Sharp & Dohme will serve on the board for two years. Tomaž Lovše, who has presided over American Chamber of Commerce for two mandates since 2007, has been granted the title of the AmCham Slovenia Honorary Member.

Spanish embassy

Guitar Virtuoso Performance The Moroccan embassy and Moroccan consulate have organised a one-day bilateral event entitled “Morocco meets Slovenia” to present the political, economic and cultural perspectives of the African country. The conference was opened by Omar Zniber, the Moroccan ambassador, and Janez Škrabec, the honorary consul of Morocco. The event at Hotel Slon finished with a gala evening which was a true Moroccan experience, offering a fashion show, traditional culinary delicacies and a belly dance performance.

Spanish ambassador to Slovenia Anunciada Fernández de Córdova together with Cervantes Institute and Imago Sloveniae organised a performance by guitar maestro Ricardo Gallén. The performance in the City Museum Ljubljana was part of the 23rd international music festival Summer in Ljubljana Old Town. The acclaimed guitarist, who has played all over the world, gave a one-hourlong concert during which listeners were able to enjoy the works of Issac Aleénizo, Joaquín Rodrigo, Leo Brouwer, Giulio Regonadi and Johann Sebastian Bach.

British embassy

Women Power The wife of former British Prime Minister Tony Blair has visited Slovenia. Cherie Blair was attending a conference on excellence of women managers, organised by the company Planet GV and the section of women managers at the Slovenian Manager Association. To honour Mrs Blair’s visit, the British ambassador Andrew Page held a special reception at his residence that was attended by a number of prominent Slovenians.

DIPLOMATIC SOCIETY 31 Russian embassy

Hungarian embassy

AmCham

Celebrating Friendship

Commemoration Conference

Sports for Charity

The Slovenia-Russian Friendship Association has marked 15 years of its existence with a special ceremony. The speakers were Pavel Gantar, President of the National Assembly, and Doku Zavgayev, Russian Ambassador. The event, which featured Russian folk music and dance, presented the activities of the association ever since its beginnings. The association has been bringing together fans of Russian culture, art, folklore, science and language and it has also organised various events, such as panels and celebrations, including the yearly ceremony at the Russian Chapel in Vršič mountain pass.

The Hungarian ambassador and his wife have organised a conference commemorating 20 years of Slovenian independence at the Museum of Contemporary History in Tivoli Park. The Hungarian and Slovenian political leaders present at the conference recalled the historic event, analysed the situation of the time, and the years that followed. Representatives of the Hungarian community in Slovenia and the Slovenian community in Hungary were also present. Guests were able to enjoy the culinary delicacies and wines of Zala, a region in Hungary which borders Slovenia.

British embassy

Reception for Queen Elizabeth II’s Birthday The official birthday of the British monarch Queen Elizabeth II has been marked by a reception at the residence of the British ambassador to Slovenia. Andrew Page also organised the event – attended by around 400 guests from the spheres of politics, economy, science and culture – to mark the twentieth anniversary of Slovenia’s independence. For this reason, the embassy invited all British ambassadors who used to work in Slovenia since 1992 and the Slovenian ambassadors who were in Great Britain in the same time period.

AmCham Slovenia, together with the US embassy, last month organised a charity sports and family picnic day. The sports played included football, basketball, tennis and volleyball. Teams consisted of professionals with different backgrounds, from photographers to board members of Slovenia’s top companies. There was plenty of entertainment for the little ones too including a very popular bouncy castle.

Spanish embassy

Contemporary Art Exhibition A Spanish-embassy organised exhibition has opened at the National Museum of Slovenia. Emboscada de sobras – Ambush of the Shadows – unites the works of two important contemporary Spanish artists Valeriano López and Rómul Roy. The two curators behind the exhibit, Antonia Muníz and Manuel Romero, were present at the opening and available to comment as well as share their views on the works of art and answer questions of guests.

Polish embassy

Marking the EU Presidency On 1 July, the Polish embassy and its ambassador Cezary Król organised a concert to celebrate the official inauguration of the Polish presidency of the EU. Held at the Križanke Open Air Theatre in Ljubljana, the Grzech Piotrowski World Orchestra and string quartet Quartet Accadémia of the Music Academy of the University of Ljubljana both performed. The Orchestra consisting of musicians who come from Poland, Norway, Holland, Russian and Moldova represents the best traditions of Polish instrumental music.

5 LET S LOVE N S KO - N E MŠK E G O S P O DARS K E Z B O R N I C E 5 JAH R E AH K S LOWE N I E N Im AuftrAg des

The Slovene-German Chamber of Commerce and Industry, under the auspices of the Embassy of the Federal Republic of Germany in Slovenia, announces the second dance of German economy.

5 LET S LOVE N S KO - N E MŠK E G O S P O DARS K E Z B O R N I C E 5 JAH R E AH K S LOWE N I E N

Friday 21.10.2011 / 19.30 ˇ H o t e l K e m p i n s K i pa l ac e p o r t o r o z

the Chamber will host a gala ball with the slogan “5 years of the german Chamber of Commerce and Industry”, where fine music and exquisite german cuisine will grant you a unique experience. Let yourself be allured by the scent of the sea and the charm of the prestigious Hotel Kempinski Palace Portoroæ. Create new business acquaintances and become a part of the strong slovenian-german partnership. TickeTs:

e 49,-*

* Without reserved seat. the ticket price includes the german cuisine buffet

TickeTs:

e 90,-**

** With reserved seat. the ticket price includes the german cuisine buffet

companY taBle (6 persons): e companY taBle (8 persons): e

600,1.000,-

BOOkiNG TickeTs:

www.dihk.si/derdeutscheBall

derdeutscheball@ahkslo.si · 01 252 88 60

Highlights:

Sm le German cuisine Networking Disco

Helena Blagne

special awards

July/August 2011

Summer Edition

The Slovenia Times restaurant review page Dine With Style presents a special summer selection of selected restaurant you donâ&#x20AC;&#x2122;t want to miss.

Dine

Ljubljana

wit h St yle

Slon Restaurant & Lounge The Slon Restaurant & Lounge offers a relaxed and convenient way to enjoy Ljubljana’s top-ranked food at affordable prices. Here, the essence of modern Slovene regional cuisine is complemented with seasonal and daily menus. Slon’s prestigious location in Ljubljana centre is a traditional meeting place for the locals. The restaurant is proud to offer seasonal modern Slovenian food, lunch menus and excellent seasonal salads and pasta. The experienced crew of waiters and chefs is ready to fulfil any gourmet request of most demanding guests. The seasonal menu rotates throughout the seasons, focusing on fresh, seasonal ingredients available in the farmers’ markets, and paying particular attention to unusual and locally grown items. Every day Restaurant offers

mouthwatering three course set lunches. Guests can choose between three different options, one of them is always vegetarian. To round up this gastronomic experience, guests are invited to choose from diverse and varied selection of fine Slovene wine, selected to compliment regional flavours of Restaurants cuisine. On Friday and Saturday evenings between 8 and 11pm Lounge Slon becomes a place for a WARM UP DJ PARTY, appreciated by anyone who loves Ljubljana’s nightlife. Good music, fine drinks and good vibrations!

Sputnik Worldly café Sputnik is an ode to travellers. To those on their way from the city to the sea. To those on the way from the countryside to a meeting. To those escaping from asphalt to the woods. To guests from far-away countries and adventurers from a neighbouring block. On their behalf, Sputnik mixes recipes, delicacies and approaches into a fine blend of the good, the beautiful and the friendly. The music, of course, is an important dimension. It charmingly hums golden fifties and sixties’ melodies, echoes of grand voices and thus fires your imagination, memories and emotions. It draws the streets of big cities, invites you to Rio, Fifth Avenue, between Jupiter and Mars, and – naturally – to the Shoemakers’ Bridge. Sputnik is a space station, dressed up as a living room. This is where

you can circle between tasty bites, excellent coffee and music laced with optimism. This is where you can get out of the rat race and give yourself up to beautiful melodies, a comfortable lifestyle and exciting experiences. Sputnik knows no boundaries between now and another time as it diligently blends everything into the backdrop of your film. The offer is fresh every day and always a tiny bit different from what’s gone before, naturally except for the vital goodies that are always available.

Summer offer

Every day fresh and always different

8 types of salads made of lettuce base and sorts of addons, from meat and seafood to a variety of cheeses.

breakfasts from the frying-pan

8 pasta specialties

soups of the day and fruit beverages

Penne Sorentino

pita pancakes, salad bowls

Noodles with squid

good coffee and a glass of Goriška Brda wine

home-made pasta

Penne alla Siciliana Butterfly pasta with marinated chicken Whole wheat pasta with pesto Pasta Putanesca

Summer offer

Trofie pasta with bacon and vegetable

Pork medallion wrapped in bacon, noodles with truffles, Parmigiano and asparagus

Spaghetti Carbonara and Spaghetti Aglio e olio

Cream cake with coconut

Best Western Premier Hotel Slon Slovenska cesta 34, 1000 Ljubljana T: +386 (0)1 470 11 00 www.hotelslon.com

Sputnik Worldly café Tržaška cesta 128, 1000 Ljubljana T: +386 (0)1 423 23 72 www.sputnik.si

Open: Mon – Sat: 8am-12pm; Sundays and public holidays: 11.30am-12pm; 11-12pm - special night menu

Open: Mon – Thu: 6am – midnight, Fridays: 6am – 2am, Saturdays: 7am – 2 am, Sundays: 8am – 10pm

Dine

Gostilna Na gradu

Photo: Miha Fras

wit h St yle

Ljubljana

Once upon a time, only aristocrats were able to indulge their taste buds inside the castle walls. Now there is a restaurant for everyone, a restaurant offering traditional Slovenian dishes.

JB Restaurant JB Restaurant, one of Slovenia’s best loved eateries, is the creation of an impressive husband and wife team. To dine at family Bratovž’s establishment is to play your part in an ongoing celebration of seasonal delights and regional treasures. In the smart, art filled dining room you can either stop in to sample some great local wines paired with a two course lunch menu or settle in for a long night of excellent food and wine. Integrity and charm are lent to the cooking of Janez Bratovž by a combination of the Mediterranean with global influences from other places, however at the same time in plain view, tradition is maintained – high French and nostalgic Slovene – an exceptional respect for ingredients

and seasons, a choice of specific culinary techniques, traditional but also newer, and always, even when it seems complicated, an intuitive maintenance of simplicity, originality of flavours, bringing out their clarity, purity and brilliance. The presentation on the plates is always elegant and even though it surprises with its creativity, it is never provocative. Chef Bratovž is inspired by ingredients. They are at the heart of his cooking and he spends much time sourcing the finest. JB Restaurant has been named one of the world’s 100 best restaurants on the prestigious S.Pellegrino list.

Photo: Miha Fras

takes a lot of skill and knowledge. The young chefs in the castle have learnt everything from the three masters, whose creativity has altered the view of food in Slovenia and convinced the worldwide gastronomy public: Ana Roš and Valter Kramar from Hiše Franko and Svetozar Raspopović from the Gostilna As. Afford yourself a break in the surrounding of castle walls and taste Slovenia! Our rich experience and extensive knowledge contribute to a perfect event such as weddings, celebrations, business events etc.

Photo: Miha Fras

The smell you remember from your grandmother’s bread oven and fireplace is now coming from our kitchen: the Kras jota soup, the Istra bobiči soup, the Prekmurje bograč stew, fried wings, Idrija žlikrofi dumplings, Primorje squid, roasted sardines … Slovenian cuisine is very region-specific and it is the same in our restaurant. Three major European cultures – Alpine, Pannonian and Mediterranean – meet in our kitchen. We swear by fair ingredients and organically grown, healthy food. The preparation of traditional dishes

Ljubljana

Summer tasting menu

Slices of rye bread with candided tomato, goat cheese, eggplants and fresh spices

Terrine of goose liver and smoked eel with a cream of green apples

Slowly cooked beef tongue with green beans and pumpkin mayonaise Curd gnocchi with Istrian salsa and smoked Curd Idria žlikrofs (dumplings) with lamb Crisp and soft slices of piglet with roasted potatoes and spicy sauce

Snails in Vipava bacon with poison ivy sauce and herbal butter Oysters with summer vegetables, tapioca pearls and sweet anise Deer back in juniper berries sauce with chives dumpling and roasted pear Hazelnut soufflé with apricots and black tea cream

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

Kobarid dumpling

Ice cream with fruit

Gostilna Na gradu Grajska planota 1, 1000 Ljubljana T: +386 (0)8 205 19 30 www.nagradu.si Open: Mon-Sat: 10am – midnight (kitchen: 12pm - 9pm) Sun: 10am - midnight Price range: EUR 30 (2 persons min.) The Slovenia Times

JB Restaurant Miklošičeva 17, 1000 Ljubljana T: +386 (0)1 433 13 58 restavracija.jb@siol.net, www.jb-slo.com Open: Mon-Sun, 11am – 11pm, Sat, 5pm – 11pm Price range: 4-course menu from EUR 38,50 Food type: Slovenian fusion, Reservations: highly recommended

CY CMY

Dine

wit h St yle

Ljubljana

Shambala Behind a humble, discreet entrance at Križevniška street next to the Križanke theatre, Shambala is a place of harmony. The interior merges the old thickwalled Ljubljana house with a stylish modern interior design, which shows some eastern mystique. The same goes for their garden. The food follows this composition in reverse: It’s essentially Asian, incorporating modern trends and a glimpse of what we are traditionally used to. The tastes – both familiar and mysterious – blend in a memorable harmony. The menu offers the essential delicacies including coconut soups, soba noodles, oysters or Crabs. The menu changes seasonally and is updated with new inventions from the chef. As far the freshness is concerned, there are no exceptions:

fresh ingredients – essential to Asian food - freshly prepared. The wine list is generous as well, with at least a decent representative from anywhere around the globe where a good vine grows - from Portugal to New Zealand. Shambala offers a la carte and a special set of daily specials, where you are free to combine three courses from a few different dishes in each round. The place also makes a perfect venue for the groups of up to fifty, in which case the food which can be served buffet style. A trusted restaurant critic described Shambala as one of last most pleasant surprises of the last few years.

Bled

Promenada Gourmet 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. The restaurant looks forward to receiving guests who like to discover unique flavour combinations, enjoy excellent wines and appreciate the efforts put into careful food preparation. The man behind the culinary masterpieces is chef Bine Volčič, who has previously served with the Protocol of the Republic of Slovenia, and then continued his professional training in France at the renowned Le Cordon Bleu culinary school in Paris. His mentors were top Parisian chefs in best rated restaurants. Bine Volčič’s only rule is the

exclusive use of the best and freshest ingredients to craft original and unique combinations of flavours. His work is based upon established culinary tradition, which he then supplements with modern gastronomic trends and an abundance of his own inspiration and imagination. The best business deals are made while enjoying good food! A special room suitable for groups of up to 12 people is available. The entire restaurant, which accommodates up to 40 people, may also be booked for any special occasion, including weddings.

Summer offer

Summer tasting menu

Oyster / Vietnamese salad rolls

Gazpacho jelly with shrimp tails and basil

Scallop with thai basil pesto

Clear chicken soup with a spicy roll and fresh coriander

Lemongrass grilled beefsteak

Ravioli with smoked trout and fresh goat cheese, wasabi sauce, beet coulis

Passion fruit ice cream with almond cream and coconut foam

Sea bass fillet on fregula, salted anchovy sauce

Tofu, snow peas and cashew nuts salad

Grilled lamb backstrap with a herb croquette, aubergine caviar, tomato confit or Layered pigeon breast and duck liver cake with fresh herbs and young spinach, vinaigrette with black truffles

Thai curry

Pear sorbet, fruit bread Coconut panna cotta with mango ice cream and chocolate mousse Shambala Križevniška 12, 1000 Ljubljana T: +386 (0)31 843 833 info@shambala.si, www.shambala.si Open: 11am-11pm, Sundays closed Price range: 3-course daily menu for EUR 14.90, A-la carte 5-course menu EUR 35-55 Food type: Asian-fusion, Reservation: recommended

Promenada Gourmet Restaurant Cesta svobode 15, 4260 Bled T: +386 (0)4 579 18 39 restavracija.promenada@hotelibled.com, www.sava-hotels-resorts.com Open: Tue – Sun: 12pm–10pm Price range: Tasting menu: EUR 25-65 Food type: continental, Reservations: highly recommended July/August 2011

news

Here Comes Chef Bine

Don’t get confused by the word »winter«. In Slovenia it is a common expression for glass pavilions, such as the one that was recently opened beside Vila Bled. This former presidential residence is nowadays a synonym for warm hospitality, selected comfort, timeless elegance, top-end gastronomy and unforgettable experiences, but the garden pavilion was not in use until 1984 when the hotel was renovated. Today it is back as a spectacular place for buffet dinners for up to 50 persons and parties, which normally follow.

The Slovenia Times

Grand Hotel Union

Welcome to the Winter Garden

Vila Bled

The Gourmet Restaurant Promenada is famous for its fantastic cuisine. It was designed and initiated by master Andrej Kuhar, the legend of Slovenian cuisine, who has been a chef there for up until now. Replacing such a big name is far from simple. But the fear that a restaurant would lose its charm with a replacement is now gone. The new chef is Bine Volčič, a graduate of the famous French school Le Cordon Bleu. His young team is determined to follow the steps of chef Kuhar, who has managed to establish the fame of the restaurant and set it among the best places in the country. The restaurant’s novelty for this summer is the brunch served every Sunday from 11am to 2pm.

Green Getaway in the Centre of Ljubljana

Each June Grand Hotel Union in the centre of Ljubljana enriches its cuisine with the re-opening of the Union Garden Summer Restaurant & Open Air Café. The Garden serves modern Slovenian and international cuisine with a Mediterranean touch which is perfect for daily lunches with two or three courses, appetizers or romantic dinners. This year you can expect a great deal of new features such as the traditional Union strudel served from the hot tray, delicious Sunday brunch and front cooking. The cosy seating area is a great spot for iced teas, cocktails or a relaxing morning coffee.

Gourmet Restaurant Promenada

The Capital

Photo: BOBO

A New-Old Star of the City After two years of waiting and curious peeking through fences and tarpaulins, the people of Ljubljana and visitors to the city can now finally enjoy the popular square Kongresni trg and its adjacent Zvezda Park again. By Polona Cimerman Kongresni trg is one of the central squares in the Slovenian capital, and ever since it was established it has been a place for political conventions, various ceremonies and celebrations, and cultural events. It got its name in 1821 when a congress of the Holy Alliance was held there – which was an event of extreme importance, bringing the Austrian emperor, the Russian czar, the king of Naples and many other European leaders to Ljubljana. Before that event, the square was called Kapucinski trg, while after World War II it was renamed to Trg revolucije (Revolution Square) and then to Trg osvoboditve (Liberation Square). However, after the proclamation of Slovenian independence, it was renamed back to the popular and historic “Kongresni trg”.

A historical place

The name changes reflect the dynamic history of the city. Before World War I, Austro-Hungarian military parades took place there and after that, in 1918, there was a magnificent assembly to mark the downfall of monarchy and the establishment of the short-lived State of Slovenians, Croats and Serbs. Kongresni trg was also the square on which the partisan army marched the day of liberation in 1945; a short time after that it was also a setting for Tito’s speeches. Moreover, this was the site of famous student demonstrations in 1970 and where numerous milestones before and after the Slovenian independence occurred, including a number of cultural events.

The star-shaped park

The square, which is partly open to its western side, is enclosed by numerous important buildings – the seat of the University of Ljubljana and the Slovene Philharmonic to

name just two. There is also a park that dates back to 1824. It was named Zvezda (Star) due to its walking paths in eight directions, creating ging processes. They are on display the shape of a star. This was the first envisioned by Plečnik more than 80 in the museums and galleries of years ago and has thus become the park in the city and quickly it belargest public area in Ljubljana. From Ljubljana. The renovated square came a focal point of the Ljubljana and park was opened to the public now on, it is reserved for pedestrians social scene, especially with the on the celebration of the 20th anniand cyclists, while cars can rest bemusic pavilion that was placed on versary of Slovenian independence neath it in 720 parking places on five its northwest side. and – according to people – the first levels. Building this garage was the A stroll through the park reveals that impressions of the newly remodmain reason for the renovations. there is even more to it than just theoglas LJ- KARTICA - 113x155 mm 6/24/10 15:12 Page 1 elled landmarks are more than Some interesting archaeological pleasant shade of trees, convenient favourable. finds were discovered in the digbenches and the relaxing sound of birds. You can quench your thirst in the water fountain or marvel at the impressively large anchor, called “Sidro”, which is a monument of the accession of the Primorska region and Istria to Slovenia and – at the same time – a reminder that Slovenians are also a maritime nation. Other monuments can be spotted in Zvezda Park; there is a replica of the Roman statue called Emonec, depicting a man of that era, and Plečnik’s monument to the women’s demonstrations against the violence and terror of the Italian occupation. The image of the square and the park has changed over time; Plečnik’s influence, however, remains visible even after the recent renovation. The park had its original image for more than 100 years when the greatest Slovenian architect rearranged its paths, slightly widened the central square and boldly replaced the old chestnut trees with sycamores – a matter of great controversy at the time.

Ljubljana tourist card

Back to Plečnik

Today, the entire area is divided into three parts: Kongresni trg, Zvezda Park, which is the central city square, and the pedestrian streets on the northern and eastern parts of the area, which have become places to meet and socialise. The remodelled square retains the appearance

• 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

www.visitljubljana.si

July/August 2011

Welcome, Crystal Palace

In late June, BTC City presented the new Crystal Palace Shopping Gallery which is going to turn shopping into a perfect experience. They prepared a special auction for the occasion where famous Slovenian athletes and celebrities helped visitors get discounts in individual stores of the Shopping Gallery. The new shopping venue is home to prestigious shops and trademarks such as Yves Rocher, iStyle Apple Premium Reseller, Björn Borg, Steklarna Rogaška – Oskar Kogoj and many others. Those who like to enjoy in superior food can do that in diVino restaurant while those with a sweet tooth can try out the pastry and cakes in the city’s highest confectionery Twenty Caffé which got its name because it is situated on the 20th floor of the building. Those in need of body and soul invigoration can visit Aktivita Healthness wellness centre. The Gallery is a true shopping paradise since everything is at hand – from the newest technological gadgets and fashionable clothes to pampering in the wellness centre and indulging in an exquisite food. Moreover, one can even take a relaxing stroll on the green terrace on top of the gallery to wind up the anything-but-ordinary shopping experience.

Design

news

Shopping

Trimo Awards

The new promotion video of Portorož and Piran is breaking records on the internet – in less than two days is was viewed by 36 thousand people from Slovenia and was shared by more than 8 thousand Facebook users, receiving an extremely positive feedback by the vast majority. The video which is the result of collaboration with Snaut production house and AV Studio agency was filmed in May in air, on solid ground and under water with over 150 people appearing in it. Besides the main actress Eva Jurca it features many famous personalities, among them the minister of transport Patrick Vlačič, mayor of Piran municipality Peter Bossman, world football legend Franco Baresi and musician Slavko Ivančič. The video, which was directed by Marko Cafnik who also wrote the script, was financed by Tourist Association Portorož and Portorož hoteliers while all the famous faces and many locals did their part for free. Judging by the video success, hot summer season awaits Portorož and Piran! The Slovenia Times

Gaming

“Jump to Portorož!” breaks records

The Coast

Trimo has festively handed over a public architectural installation “Life Stand”, the winning project of Trimo Urban Crash competition for architecture and design students which was created by Polish students Wojciech Nowak from an architectural faculty in Gliwice and Martynika Bielawska from art and design faculty in Wroclaw. The international competition which encourages a creative transformation of the urban environment with the help of advanced building materials and technologies was organized by Trimo for the third time. The opening event this year was held in the centre of Fužine neighbourhood in Ljubljana and was opened by the General Manager of Trimo Tatjana Fink and the Deputy Mayor of Ljubljana Janez Koželj. Students of architecture and design from 56 countries all around the globe presented their ideas and submitted 363 proposals for an urban multi-purpose facility in Fužine. Besides this competition, Trimo granted 53 awards to the best authors within the 10th Trimo Research Awards where the best works in architecture, construction, engineering, IT, economics, law, management and many other fields are recognised.

Bingo!

Summer in Hit’s biggest gaming-entertainment centre Perla in Nova Gorica started with a record prize – the Italian guest took home the nearly unbelievable 552,520 €. The lucky guy from Lombardy played on one of Perla’s gaming machines where guests can choose from 35 different machines with an option of high betting. The prize was won on a machine with Cleopatra motif at precisely 10.36 p.m., just one moment after the guest started a game with the highest possible bet. Bursting with excitement he later on told the employees that he plans to return to Perla soon to celebrate the prize and his birthday with his best friends. The prize is the highest this year that was won on gaming machines in Hit. However, the ultimate record was the prize in 2005 when also an Italian guest won the enviable amount of 936,400 €. Guests will be able to try their luck and set a new record in a new open-air casino which is going to be ceremoniously opened on 9th July.

Refreshment

Thermana Laško introduced a novelty – a new anti-aging programme Priori for men and women which stops the aging process and enables one to walk into summer with a younger and fresher look. They offer a 4-day package, starting either on Thursday or Sunday with a presentation treatment that includes professional counselling and a tailor-made programme according to the client’s wishes and expectations. This is be followed by two days of programmes that include a combination of various lines (Aha, Idebenon and Coffeeberry which are among the most recognisable anti-aging cosmetic lines in the world) and an assortment of services (face care, body care, manicure, pedicure). On the last day of stay the client gets a presentation treatment or make-up.

Fruc Summer Special

Postman is on the Road Again

Ljubljana

Fruc is the most popular and wacky fruit drink in Slovenia and with its new member of the Fruc family Fruc Summer Special it is winning the hearts of consumers once more. Last year the consumers were able to enjoy the renovated design and new fruity flavours while this summer the new Fruc is characterised by the harmonious taste of peach and orange with a little aloe vera which was added to meet the desires of the consumers, all which is a result of numerous tests. Peach and orange remain the favourite tastes of Slovenians while the added aloe vera gives the new drink a touch of trend. Fruc is, just like all other Fructal products, a completely natural drink since it does not contain any preservatives, artificial colourings or sweeteners. All Fruc fruit drinks are refreshing and non-carbonated and are instant thirst-quenchers due to their lower fruit content (10 – 30 %). They are aimed at innovative and dynamic people who are not afraid of being different.

A friendly postman in a brand new old-fashioned costume is roaming the centre of Ljubljana again, dispensing free copies of The Slovenia Times and offering a chance for a chit-chat that abounds with information of what to see and where to go, eat and sleep in the Slovenian capital. The postman which has been riding a curios old-fashioned tricycle on the streets every summer ever since 2006, is wearing a top hat with a dark blue and orange suit – an outfit inspired by a standard Austro-Hungarian uniform on a postcard from 1860. He is some sort of a mobile tourist information point and an attraction of its own, amusing the young and the old. You can tug at his sleeve either for information or just a relaxed conversation to kill time; also he will gladly take a photo with you.

I’m a desperate housewife

Column: Andja Maric

Getting Younger

Wellness

I am sitting in my kitchen, with my back turned to the sink, just to prevent me from seeing what is awaiting me. Outside, it’s a beautiful sunshiny day, just like yesterday which we spent close to nature. I would love to be a good housewife, have an impeccably clean house, and still find time to completely devote myself and my energies to my 7-year-old. But to date, being with my son has always prevailed over housework. We had a party yesterday evening and now my sink almost resembles those scary ones seen in the TV commercials and the kitchen as a whole looks like a war zone. I still remember the day I got my very own dishwasher – what a day! I loaded it with the heap of dirty dishes, added some detergent, and opened a beer to watch it work instead of me. I couldn’t stop singing: “Candy, candy, candy, I can’t let you go…” Since that day, I have realised the immense help of the “machines” in my life. I calculated that, thanks to the dishwasher alone, I have gained two extra hours per day for myself and my family. I was looking at it, sipping my cold beer, and it was working for me. Amazing. Even though I grew up with a dishwasher, I only came to respect it when I was the only one responsible for the messy kitchen. Then I started appreciating all the machines and robots in our homes, the quiet fairy godmothers of us housewives, who help us cope with the challenges of being in charge of the household. The washing machine, the irreplaceable vacuum cleaner, the mixers, blenders, choppers, dryers, computers, mobile phones, baby monitors... Who can imagine life without them? Did you know that the first stove was produced in the last century and by a company that was managed by a woman? It was 1806 when Amélie De Dietrich, a 20-something year old widow and mother of four, inherited the almost-bankrupt family business and decided that she would rely on the power of fresh ideas and inventions to keep it going. In 1850, she launched the first wood burning kitchen stove in serial production. It was a hit, obviously. Is it such a surprise that behind this crucial invention for households was a woman? She helped empower women, understood their needs, and gave them grace while doing the oldest duty we have in this life – cooking to feed our families. Many times I have thought of getting some help with the household tasks, and I was reminded of this again today when I tripped over a toy locomotive my son had left in the middle of the living room. Not someone to do the work for me, you understand, but a cheerleader; someone who would stand by my side and encourage me with words like: “You can do it! Go girl! Only two rooms to go! Don’t stop now!” Why is it that I don’t like cleaning? Do those housewives who love to clean do so as a vent for their nervousness? Is that saying correct – clean house, angry housewife? Oh, I don’t know any more. Also, I find it very interesting that in the 1950s, American housewives used amphetamines to help them clean. That subject was mentioned in an episode of Desperate Housewives, in which Felicity Huffman’s character used the drugs to manage all her duties on time. The name of the series makes clear that housewives are rarely cheerful, happy and delighted. Housewives are desperate. Houserelated work is cause for despair and scarily resembles Syziphus’ work. Well, what can we do? Thank God for the kitchen appliances our century has blessed us with, but I am waiting for them to start encouraging us too. Is it too much to ask from the future?

40 CULTURE musicians and bandleaders that jazz ever produced. His passing in the fall of 2007 left a big, gaping hole in the musical world that can never be filled. But if anybody could, it would be The Syndicate – the band that he chose as the vehicle for his innovative and genre-busting musical styles after the break-up of Weather Report. Joe Zawinul had a true Midas touch in picking his band members, not only picked because of their virtuoso instrumental skills, but with a special ear for how, ultimately, each musician would contribute to a whole that was totally unique to Joe Zawinul’s vision.

Slovenia Times Recommends

Trnfest One of the biggest and most pleasant festivals in Slovenia returns for another year of excellent performances. The 20th edition of the international summer festival Trnfest has been offering a versatile programme with domestic and foreign performers ever since 1991. The events include: music, theatre, dancing, film, puppet shows, visual art and photography. At the end of August Trnfest will be complemented by the international street festival Emonska promenade – with shows, creative workshops and other events for all generations. For the sixth consecutive year Trnfest will also feature the photographic competition TrnFoto11. The organiser expects around 55 thousand visitors during the festival. The day’s activities in the KUD courtyard will presumably finish until 10pm and

World music after that the performances will take place inside KUD France Prešeren. The trademarks of the festival remain a rich evening programme, cold beer and grilled corn. There will also be plenty of opportunity to buy souvenirs from the festival.

Tue 26 Jul–Sun 28 Aug, KUD France Prešeren, Ljubljana, no admission

Festival

Summer in Ljubljana Old Town Wed 1 Jun–Wed 24 Aug, various venues, Ljubljana, no admission Each year, the Summer in Ljubljana Old Town festival contributes to the vibrancy of city life in Ljubljana by presenting a programme of classical music concerts held in the picturesque surroundings of the old city centre. Most of the concerts are free. The festival begins in June and is held until the end of August, when it traditionally concludes with an event entitled Night in Ljubljana Old Town. This year, the Summer in Ljubljana Old Town festival will consist of 27 concerts featuring 315 musicians from 10 countries. Special emphasis will be given to talented young Slovenian musicians.

Exhibition

Sonic Station Mon 20 Jun–Sat 16 Jul, Maribor Art Gallery, Maribor The project Sonic Station combines two individual installations Beatnik and Photon Bells (by Boštjan Drinovec and Primož Oberžan) intertwining sonic and spatial experiences with light effects. By using a massive metal construction, recycled material and with an interactive approach, the artists research the The Slovenia Times

implementation of de-montage and re-construction of waste material in artefacts and thus wipe out the boundaries between instruments and sculptures in their traditional sense. The participation of the audience, who are invited by the artists to become acquainted with different sonic and light phenomena and forms, is of key importance to their art project.

Festival

SEVIQC Brežice Festival Wed 22 Jun–Sun 4 Sep, Castles and other historical venues across Slovenia SEVIQC Brežice is one of Europe’s most important early music festivals. It brings together both renowned early music performers and emerging young talents. The main focus of the festival is on accomplished performance of early music, which is reflected in the festival’s name, SEVIQC, an acronym for “Semper viva quam creata” (Always live as created). The programme of events includes

concerts of European music from the Middle Ages to the beginning of the 20th century performed on authentic period instruments and using authentic early music performing techniques. Concerts are held exclusively at historical venues across Slovenia.

Photography

Jazz Photography

Carlinhos Brown Thu 7 Jul, 9pm, Križanke, Ljubljana, EUR 27–35 The multi-talented singer, instrumentalist, producer, arranger, and cultural activist began his career as a percussionist that will always be a special piece in the intricate mosaic of the artist’s natural talents. At the end of the eighties, Brown initiated one of the most successful projects of his career. Rediscovering and reinventing the sound of the timbau, he brought dozens of percussionists together and founded Timbalada, a group that was born with a unique personality and sound. Timbalada, which has toured throughout the world, has brought even more acclaim to the Bahian music in Brazil.

Tue 28 Jun – Sun 17 Jul, Cankarjev dom, Ljubljana, no admission The Ljubljana Jazz Festival is a traditional event in our capital. This year, we will be seeing its 52nd edition, which again offers a variety of jazz concerts and styles, with magnificent performances and musicians. It has also been a tradition that the performances are accompanied by a traditional exhibition within the scope of the 52nd Ljubljana Jazz Festival, which depicts some of the most memorable photographic moments captured for eternity.

Jazz

The Syndicate: Joe Zawinul’s Birthday Concert Thu 7 Jul, 10pm, Lent, Maribor, EUR 15 Joe Zawinul – one of the most legendary, visionary and influential

Jazz

Trilok Gurtu Band Fri 8 Jul, 10pm, Lent, Maribor, EUR 18 Trilok Gurtu is a master of Indian music, tabla, percussion, and Western drumming, who plays a unique hybrid East-West drum set up. He is also a visionary composer whose musical adventurousness has led him to creative fusions of Indian music with jazz, rock, classical, and ethnic music from all over the world. Well known in the jazz community through his collaborations with Don Cherry,

EVENTS 41

John McLaughlin, Joe Zawinul, and Pat Metheny, Gurtu first became known to US audiences as a member of the world/jazz fusion band Oregon.

Opera

La Bella Opera Sat 9 Jul, 9 Jul, 9.30pm, Amfiteater, Avditorij, Portorož, EUR 25–32 La Bella Opera will take us on a trip with its original story to some of the most important arias from 16 different operas from composers like Gioachino Rossini, Gaetano Donizetti, Wolfgang Amadeus Mozart, Georges Bizet, Giacomo Puccini, Giuseppe Verdi, Pietro Mascagni, Ruggero Leoncavallo and Jacques Offenbach. These works were paramount to the aesthetic qualities of this genre. The performances will also be accompanied by dancers, jugglers and other performers as well.

Metal

Metal Camp is a traditional festival event in Slovenia, which brings together some of the most renowned metal and hard rock acts. Every year, we get a chance to hear a very diverse line-up of mostly metal artists and every year the area of Tolmin turns into a metal heaven. This year we will be hearing the talents of the following artists: Accept, Airbourne, Alestorm, Arch Enemy, Arkona, Ava Inferi, Blind Guardian, Bulldozer, Evile, Katatonia, Kreator, Mastodon, Slayer, Taake, Thaurorod, Virgin Steele, and many others.

Photography

Presentation / Representation Thu 14 July, 7pm, Maribor Art Gallery, Maribor The exhibition Presentation / Representation presents ten positions in contemporary German photography. After a long period during which the first generation of Bernd Becher’s former students from the Kunstakademie Düsseldorf left their mark on the field of photography in both the national and international art world, a lively and heterogeneous photography scene recently has emerged, one which cannot be said to stem from any single educational institution or region or be assigned to any predominant style.

Metal Camp Mon 11 Jul–Sun 17 Jul, Tolmin, EUR 45–129

Festival

Pivo in Cvetje Thu 14 Jul–Sun 17 Jul, various venues, Laško This festival of beer & flowers has become the most visited and entertaining tourist event in Slovenia. Each year the little town of Laško plays host to more than 140,000 visitors. During

the Festival the town’s inns open their doors wide and numerous beer tents spring up overnight. They offer all kinds of live music, by various bands from Slovenia and abroad. Throughout the week, there are countless opportunities for visitors to quench their thirst for culture and entertainment. And you can relax with a refreshing pint of cold Laško beer! The highlight of the Festival is the craziest Saturday night with magnificent fireworks lasting for a whole thirty minutes, and attracting over 60,000 spectators.

Jazz

New York Ska Jazz Ensemble Fri 15 Jul, 8pm, Gala hala, Ljubljana, EUR 8–12

The New York Ska-Jazz Ensemble is an internationally renowned recording and touring group. Since the bands inception in 1994, they have released ten CDs and they have performed regularly throughout Europe, Canada, USA, and South America. Their recordings and performances have garnered them critical acclaim for their high energy, creative originals, kinetic ska interpretations of jazz standards, as well as their potent mix of dance hall, reggae, rock steady and jazz. Performance highlights include: The North Sea Jazz Festival, the Montreal Jazz Festival, The Bob Marley Reggae Festival and The Discover and Bell Atlantic Jazz festivals in the U.S.

Electronic

Paul Van Dyk Sat 16 Jul, 10pm, Ambasada Gavioli, Izola, EUR 29 – 35

One of the key pioneers of electronic dance music, one of its most known faces, and last but not least a passionate promoter of various good cause and social initiatives, is coming back for what is supposed to be his farewell gig at the Ambasada Gavioli. After a long period of expectation Paul is finally ready to present the first bites of his new artist album Evolution. He’s apologizing for a short delay, but it’s because he’s still producing all of his music by himself and this time he’s also collaborated with some really interesting singers and musicians. If you’re intrigued where the muses have taken them, join us for the party.

Festival

Bled Days Fri 22 Jul–Sun 24 Jul, Bled, no admission The most famous of Bled´s events is the “Bled Days”. This happens on the 4th weekend of July each year. It is a beautiful sight with floating lights on the lake and fireworks to set the scene, as well as the “Home and Art Craft Fair” to see and various concerts on the Bled promenade to enjoy. On Friday, there will be music fireworks and a laser light show on the castle rock. On Saturday, there will be candles on the lake and the grand Bled Night fireworks.

July/August 2011

42 EVENTS Punk

Slovenia Times Recommends

Agrimonia

Can’t hide from Interpol

Mon 1 Aug, 10pm, Gromka, Ljubljana

NYC post-punk attraction comes to Ljubljana’s Križanke theatre. The Lace School Idrija offers guided tours of lace exhibitions. Exhibitions present lace made by the pupils of the Lace School itself, lace of other lacemakers from Idrija and lace from other Slovene towns or from abroad. Interpol is one of the bands associated with the New York City indie music scene, and was one of several groups that emerged out of the post-punk revival of the 2000s. The band’s sound is generally a mix of staccato bass and rhythmic, harmonized guitar, with a snare heavy mix, drawing comparisons to post-punk bands such as Joy Division and The Chameleons. Aside from the lyrics, their songwriting method includes all of the band members, rather than relying on any given chief songwriter Interpol’s debut album Turn on the Bright Lights (2002) was critically acclaimed, making it to tenth position on the NME’s list of top albums in 2002 as

well as #1 on Pitchfork Media’s Top 50 Albums of 2002.Subsequent records Antics (2004) and Our Love to Admire (2007) have confirmed the band’s initial success and turned them into a commercial and critical success. The band released its fourth, self-titled album on September 7, 2010.

Tue, 16 Aug 2011 at 9:30 pm, Križanke, Ljubljana; EUR 28 (presale till 11 Jul), EUR 35 (presale), EUR 38 (walk up)

Agrimonia was formed in 2005 in Gothenburg, Sweden. In late 2007 the first self-titled album was recorded, and it was released on LP/CD the year after. During winter 2009/2010 the 2nd album “Host of the Winged” was recorded, and it was released as a 2xLP/CD in July 2010. During their years on the scene, they have made a name for themselves for being an explosive band with a very rough sound, which is expressed even more in a live setting.

Rock

Schengenfest Fri 5 Aug–Sun 7 Aug, Autocamp Katra, Vinica, EUR 39–54

Blues

Jack and The Bearded Fishermen Sat 23 Jul, 10pm, Menza pri koritu, Ljubljana, EUR 5 The band with the freaky name of Jack & The Bearded Fishermen was founded in 2005. These gentle and not very hairy members of the band have been sailing throughout Europe with their captain Jack and presenting their latest album Places to Hide, which came out this March. Even though the crew has changed, they are still based in the French town of Besançon. Their heading is set towards Neanderthal blues, with an occasional change of course towards rock and other musical storms.

most interesting film events in this part of Europe. With indispensable addition of wine, the pride and joy of Prlekija, in the festival equation, completely new horizons of gastronomic pleasures were open to all our guests and visitors. The focus is still on fantastic, horrendous, fierce and cult movies that reach beyond ordinary genre conventions.

Progressive rock Film

Grossmann Festival Mon 25 Jul–Sat 30 Jul, Ljutomer The festival was launched in 2005 on the 100th anniversary of Slovenian cinematography in Ljutomer, where first Slovenian motion pictures were made by Dr. Karol Grossmann. It featured unconventional movies and brought to Ljutomer most of their authors. The programme and activities were constantly upgraded and the festival became one of the The Slovenia Times

Trieste Summer Rock Festival Thu 28 Jul–Sun 31 Jul, Piazza Unita, Trieste, no admission Every year, the Trieste Summer Rock festival offers us a great variety

of rock music bands. The Italian music scene has always had a great tradition in progressive rock and thus this festival is also mostly based around this genre. In the past, we have seen performances by Focus, Steve Hackett, Van der Graaf Generator, Gong and many others. This year should be no different, as the organisers always make an effort to surprise us at the last moment.

Culture

Russian Chapel Ceremony Sun 31 Jul, Vršič, no admission Above the road rising at the south side to the 1611 m high Vršič Pass, stands an unusual monument from the times of World War I. The Russian Chapel was erected in memory of the suffering of thousands and the death of several hundred Russian prisoners. Next to it is a small cemetery. The bodies of the dead Russians are mainly buried in the tomb to the left of the chapel. A stone pyramid serves as the tombstone, with the Cyrillic inscription ‘Synam Rossii’ (to the Sons of Russia). A staircase leads to the chapel; next to it is a Russian grave with a concrete Orthodox cross. The memorial ceremony with a holy mass commemorates the tragic events and praises good international relations.

Schengenfest is a festival of ex Yugoslavian bands playing in the region of Bela Krajina in Slovenia. Every year they get some of the biggest names from the territory of former Yugoslavia. This year the line-up will include, amongst others, Kad Smo Bili Bijelo Dugme (with original members of former Yugoslavia’s greatest Bijelo Dugme), Prljavo Kazalište, Pankrti, Vlado Kreslin, Niet and other bands, some not even from former Yugoslavia.

Punk

Punk Rock Holiday Fri 12 Aug–Mon 15 Aug, Tolmin, EUR 28–70 Pure passion, refreshing energy, adrenaline, new name and a fresh start on the most exceptional location! This is Punk Rock Holiday! From the ashes of two great Slovenian alternative festivals, Sklabfest and Njoki Summer Festival, they have managed to merge both visions and create the biggest punk-rock festival

44 EVENTS in the region. The 2011 festival line-up consists of the strongest international punk rock bands on tour in Europe at the time. Starting with NOFX and Bad Religion, 2 major headliners on most of the festivals around the World, who have been on the scene for more than 30 years now and are guilty of punk revival.

Gastronomy

Festival of Teran and Prosciutto Sat 13 Aug–Sun 14 Aug, Dutovlje, no admission

Festival of Teran and Prosciutto (Praznik terana in pršuta) takes place in the village of Dutovlje – the event goes on for several days and includes wine cellars open for visitors, a procession of traditional

farm carts, exhibitions and various other forms of entertainment. There will be plenty of gourmet offer, including local prosciutto and wine (Teran).

Experimental

Marc Ribot Sat 20 Aug, 10pm, Gromka, Ljubljana

Mozart’s celebrated Requiem Mass interpreted by the excellent “Ensemble 1765” orchestra. The following days will also feature excellent concerts, celebrating some of the best composers of classical music.

Punk

Total Chaos

Fair

Wed 17 Aug, 10pm, Gromka, Ljubljana

Cobblers’ Sunday

Total Chaos is an American street punk band from Pomona Valley, California, formed in 1989. Lead vocalist Rob Chaos is also coowner of SOS Records with Ezzat Soliman, owner of the Showcase Theater, having released albums by classic Punk and Oi! bands like The Exploited, Vice Squad, Sham 69, Conflict, The Adicts and Abrasive Wheels among others. With help of Jay Lee from the band Resist and Exist, the band started organizations such as United Valley Punks, Orange County Peace Punks and Alternative Gathering Collective. Together, they held such social events as Food Not Bombs, helped open the Los Angeles Anarchist Center and supported the Big Mountain Indian Reservation.

Fri 2 Sep–Sun 4 Sep, the old town core of Tržič, no admission After the release of last year’s solo effort Silent Movies, which was considered one of the best albums of last year, Marc Ribot will once again return to Slovenia to show us his guitar skills. Marc Ribot, much like John Zorn, is a person who cannot remain in only one musical genre. He is constantly looking for new ways to reinvent music and make it more appealing and exciting. This unpredictability in studio and live makes him such an amazing musician.

Exhibition

Suitsmegallery Sun 21 Aug, 10am, Maribor Art Gallery, Maribor Children are our future and we should cherish them. Children are so full of ideas and imagination and they need a way to express their youthful energy and exuberance. And what could be nobler and more fascinating than to involve them in artistic endeavours and help these young artists present their works? This morning exhibition is for young artists, who will present their art works created during the summer workshops.

On the first Sunday in September the streets of Tržič come alive and welcome more than 10,000 people from Slovenia and abroad.

This is the biggest event in the town that originates in the old craftsmen tradition of town fairs. Tržič got the town rights in 1492, so the craftsmen were allowed to organize weekly fairs. The biggest and the most important fair of the year was the one on the first Sunday in September. The tradition of the Cobblers’ Sunday is connected to an old custom when the shoemaker’s apprentices were promoted into assistants. The day ended with a fair and a public festivity when hardworking people of Tržič put aside their work. A festive party still has to take place every Cobblers’ Sunday.

Fair

The Ribnica Fair Sun 4 Sep, Ribnica, no admission

Classical

Tartini Festival Fri 26 Aug–Sun 11 Sep, Piran, EUR 13–25 The Tartini Festival – Piran and the Slovenian Istria – celebrates its tenth anniversary. This year the festival will inspire its visitors with diverse international ensembles featuring distinguished virtuosos. The opening will take place at the end of August, with

The Slovenia Times

This is a traditional fair of wooden ware and pottery, which will now see its 36th edition. The main part of the fair will feature manufacturers of wooden ware and pottery, the castle will be reserved for tourist associations, while all the other streets in the centre of Ribnica will be used by other tradesmen (last year, there were around 500 of them). The castle will also feature a cultural programme. Every year, the fair receives around 40 thousand visitors.

SPORTS 45

Football

Feeding Big Teams During the first golden era of Slovenian football a decade ago, Zlatko Zahović was the only member of the national team to play for a top European club. Now there are almost too many to mention. By Simon Demšar

or Zahović’s other teammates, the national team seemed to be a catalyst for international careers, but they seldom made it further than – with all due respect – Austria or Cyprus. Some were members of clubs like Tottenham or Porto, but their time there was short and they filled out the team rather than playing serious football. The coach at the time, Srečko Katanec, often described this as a serious problem, but it didn’t hurt the performance of the national team. Ten years on and the situation couldn’t be more different. There are around 30 Slovenes in top European leagues, with nine of them on the rosters of first division clubs in Italy, Germany and France. Things have gone so far that a regular member of Palermo, the eighth-placed club in Italian Serie A and a finalist of Italian Cup, is out of the national team. The man in question is Siniša Anđelković. He is only one in the phalanx of Slovenians on Sicily. It was Josip Iličić who threw the door open when he joined Palermo from Maribor. He instantly made a name for himself and went on to score eight goals for his club. He was soon joined by Anđelković, Armin Bačinović and Jasmin Kurtić. Iličić and Bačinović were regularly on Palermo’s starting roster and it came as no surprise when they extended their deals with Palermo by another five years. Speaking of Italy, the biggest star is without doubt Samir Handanović. Udinese’s goalkeeper saved his goal intact 14 times and blocked six penalty kicks out of eight, equalling Giuseppe Moro’s record from the 1948/49 season. During his seven years at Udinese, he saved 11 penalty kicks out of 26. Moro’s overall record is 16 out of 44. Handanović, 26, has often been linked to the biggest European teams, such as Bayern or Manchester United, but this has never gone further than rumours. With Udinese finishing fourth in Serie A, which puts them in contention for the Champions League, Handanović is likely to stay in Udine for at least another year.

You want Him in front of the gate: goalkeeper Samir Hadanović

No less than five Slovenes will be members of tenth-placed Genoa next year. Four of them are likely to be kept in reserve while Valter Birsa is set to further establish himself as a top midfielder. He is joining Genoa from Auxerre, France, where he spent six years and played in the Champions League last year. The surprise of the year was Tim Matavž, 22, who excelled himself in Groningen, Holland. His 18 goals for the team (which makes him the fourth best scorer in Eredivisie) attracted the manager of Napoli and everything looked set for Matavž’s transfer to Italy. However, the deal fell through at the last minute for unknown reasons. Boštjan Cesar’s career looked rather grim after spending five years in France, including one year on a loan in England, and only rarely finding his place on the starting roster. But his transfer to Chievo, Italy, gave his career a fresh start. He became a regular member of the first team squad and even scored three goals, one more than during the five years in France and England. This was enough for another two-year contract. His Slovenian colleague in the team is Bojan Jokić. It is never boring in the company of Milivoje Novaković, 32, a striker for Bundesliga Team 1, FC Köln. Having made his way through minor Austrian teams, he became the top scorer of Bulgarian first division, after which he landed a deal with Köln. But even

there he and his team first had fight through the second division. He was the team’s top scorer dur-

ing the 2008/09 season in the first division but then fell out with the new coach Zvonimir Soldo. After Soldo was sacked, Novaković was back to his best form. With 17 goals, he reached third place in the Bundesliga top scorers’ list, which earned him an extension to his deal until 2014. According to some statistics, Novaković was actually the most efficient scorer in all top European’s leagues, needing 2.47 strikes per goal, on average. Defender Mišo Brečko is the other Slovenian member of the team. Andraž Kirm had a quiet time in Krakow, Poland, but he became national champion with the team with every chance to qualify for the Champions League next year.

July/August 2011

Symphony of a Thousand: The spectacular opening of Ljubljana festival. BOBO

EVERY PICTURE TELLS A STORY

Author and screenwriter George R.R. Martin (Game of Thrones) having lunch at Ljubljana castle.

The farewell event of the best Slovenian ski jumper ever: Primo탑 Peterka with his younger colleagues. Mediaspeed

Treasure hunt: The former and the actual Wine Queen before taking a 8m deep dive into a well where 365 bottles of Quercus sparkling wine have been stored to mature. Miss Universe Slovenije 2011: The finalists with the new Miss Ema Jagodic (blue dress in the middle). Mediaspeed

The Prime Minister, Footballers and a Lippizaner: Football charity spectacle at Bilje pri Novi Gorici. Mediaspeed

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Idrija – European Destination of Excellence 2011 in Slovenia Idrija offers exceptional opportunities for discovering technological, cultural and natural sights as well actively spending your free time.

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Many sights in the centre

An unforgettable experience to be had in Idrija is to visit the mercury mine, one of the largest mercury mines in the world. In the oldest part of the mine, Anthony’s Shaft, step into the world of mining and take a look at the work of the miners, you will get to see the precious cinnabar ore, drops of liquid mercury and visit the unique underground chapel. With its large Town square and the picturesque arcade courtyard of Gewerkenegg Castle, the city is a host to many cultural, traditional and entertainment events. The biggest and the most prominent event is the internationally renowned Idrija Lace Festival (held in June) which aims to preserve the tradition of lacemaking in Idrija and reflects the innovation of its use. Idrija can also be discovered by visiting the Municipal Museum of Idrija which takes care of preserving the heritage in the area of Idrija and Cerkno. Visitors can see the permanent exhibition of the 500 year long history of the mercury mine and town, an exhi-

bition of the region of Idrija in the 20th century, view a rich geological collection as well as a collection of bobbin Idrija lace. In 2008, for its permanent exhibition “Idrija Lace – history written by a thread”, the museum was awarded the prestigious Valvasor prize. An interesting sight to visit is a typical Miner’s house from the 18th century that is located not far from the town centre and represents the former way of life of miner families. You can discover the remnants of the mining past on your own or accompanied by a local guide who will share with you some secrets of the life of Idrija’s miners. You are invited to the secret world of underground shafts, raging waters and unique works of art. Actively discover the mysterious and raging waters as well as the monuments of inventiveness of the people of Idrija in unspoiled nature! TIO NA

age, should be included on the Unesco World Heritage List. This year Idrija supplemented its application and submitted it anew. Also this year Idrija has been awarded the flattering title of the “Alpine Town of the Year 2011”. Idrija has also committed itself to set out on a path of sustainable development. The expert committee for the selection of the European Destination of Excellence 2011 awarded Idrija the title of the European Destination of Excellence.

NS O

EXCELLE

N CE

Photo: Matevž Lenarčič

In 1490 Škafar discovered mercury in the Idrijca valley and during the following centuries, the mine grew to be the second largest mercury mine in the world. Idrija is the oldest mining town in Slovenia with an exceptionally rich technological, cultural and natural heritage. The way of life in Idrija from times past, when Idrija was known for the second largest mercury mine in the world, can be felt in every step as you explore the region. Despite the closing of the mine, Idrija still maintains living ties to its mining traditions and cultural heritage as it continues to develop and grow into a modern community. In 2007 Slovenia recommended for the first time that Idrija, with its mercury mining herit-

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The oldest mining town

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Information Touristic Information Centre TIC Idrija Vodnikova 3, Idrija T: 05 37 43 916; F: 05 37 43 915 ticidrija@icra.si www.idrija-turizem.si

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