Slovenia Times 146

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The Slovenia Times, Slovenian magazine in English Language, volume 8, number 146, EUR 4,80

December 2011

Santa’s Political Wish List Tough Challenges for Snap Election Surprise Winner

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CONTENTS 3

December 2011 Business Partners

POLITICS

5 7

The election results Events that marked 2011

12 12 14 15 16 16

ECONOMY Fears of second recession become real Experts express caution for 2012 Sandi Češko is the richest Slovenian Slovenia’s hidden champions COBIK conference report JAPTI devotes forum to innovators

FDI 18 19 20 22

24 26

100 95 75

Overview of foreign investments in 2011 Sale of Mercator takes a new twist Interview: Christof Droste, managing director, Hella Saturnus Slovenija Interview: Thierry Villard, managing director, Goodyear Dunlop Sava Tires

DIPLOMATIC SOCIETY Embassy diaries Interview: Dr Marianna Oravcová, Ambassador of the Slovak Republic to Slovenia

LIFESTYLE 27 30 31 34

100 95 25 75 5

Christmas shopping Column: Hannah Mancini Style news Ljubljana

CULTURE

0

35 36 37 38 40 42 42

25 5 0

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

Slovenian theatre overview Interview: Sašo Jurcer, Director Coulmn: Jedrt Jež Furlan People: Dragan Živadinov Stand up comedy European cultural capital Maribor 2012 The event guide

SPORTS 45

Skiing season preview

46

Every picture tells a story December 2011

PANORAMA

source: STA, Slovenian Press Agency

Border Arbitration

Protests

The A-team

For Free and Quality Education Photo: BOBO

Slovenia has put together a four-member team of lawyers that will represent it in the arbitration tribunal determining the border with Croatia, according to media reports. Led by French University Professor Allain Pellet of France, the team comprises Slovenian law expert Vasilka Sancin, English lawyer Michael Wood and American lawyer Rodman Bundy. The Foreign Ministry refused to confirm the individual names - Allain Pellet had been known about since mid-2010 - it only said the team comprised “experienced international-law experts and lawyers”, but Sancin confirmed for the STA she was actually on the team.

Slovenia’s Vasilka Sancin teaches international law at the Ljubljana Faculty of Law and was one of the leading public advocates of border arbitration when the matter was decided at the June 2010 referendum.

The legal team will advocate Slovenia’s positions in front of a five-member tribunal. Slovenia and Croatia have already named one arbiter each while three will be selected by consensus from a list provided by the European Commission. According to the border arbitration agreement, the arbitration tribunal will be established within a month after Croatia signs its EU accession treaty, which it plans to do in December.

Photo: BOBO

4

Foreign Minister Samuel Žbogar and Vasilka Sancin, the Slovenian expert in arbitration team.

Several hundred activists and students began on 23 November a sit-in at the Ljubljana Faculty of Arts, demanding free and quality education, the scrapping of the Bologna Process, a democratisation of universities and scholarships for everyone. Backed by a few professors, they occupied a few classrooms where they are organising workshops and assembly meetings.

They are rejecting the introduction of new paid forms of education and the individual financing of doctoral studies, argue the Bologna Process is undermining the quality of studies, and are urging greater involvement of students in the drawing up of study programmes. Also highlighted were the infrastructural and staffing conditions at the university - according to TV Slovenija, the professor-student ratio deteriorated from 1:18 in 1990 to 1:52 in 2008.

Some of the demands were endorsed by Ljubljana University Chancellor Stanislav Pejovnik, who however pointed to a lack of finance, similarly as outgoing Education and Sport Minister Luksic, who also agreed that the Bologna reform had failed to reach its goal of European universities overtaking those in the US. An agreement has been reached to jointly look for solutions, while the sit-in, which includes a few dozen activists also spending the night at the university, continues.

Church

Education

Peacekeeping

Compensation for Abuse

Number of Students Surged in 20 Years

Bosnian Pot

The Maribor District Court has ruled that the Slovenian Catholic Church has to pay a EUR 50,000 in compensation to a woman who was sexually abused almost 20 years ago as a 7-year-old by late priest Karl Jošt.

Jošt was brought before court in 2006, but died in 2007, while charged on 16 counts of sexual assault against minors. The late priest abused a total of four prepubescent girls. The verdict of the Maribor District Court is unprecedented in Slovenia. The victim in question demanded with a civil lawsuit EUR 140,000 in compensation for psychological trauma and a serious health condition.

The Slovenia Times

Some 50% of young adults aged between 19 and 23 in Slovenia are students, what is a considerable increase over the past two decades, when only some 20% of this age group were studying.

Over 107,000 students were enrolled in Slovenia’s universities and higher education institutions in the 2008/2009 academic year, the average student was 22.2 years old (22.1 is EU average), 58% of them are were female (EU 55.5%). Social sciences, business and law are the most popular study choices. Some 2.2% of Slovenian students are studying abroad (EU 2.7%), while 2.1% of students in Slovenia were from abroad, two-thirds from the former Yugoslavia.

Slovenia called for a reflection on the use of the EU battle groups for the needs of reserve forces in Bosnia-Herzegovina. Sufficient reserves are am must, as the violence in Kosovo raises fears that something similar could happen in BosniaHerzegovina, Defence Minister Ljubica Jelušič said in Brussels. The EU is present in Bosnia with its ALTHEA mission, which also features 15 Slovenian soldiers, and its executive mandate was recently extended until 15 November 2012.

The minister also criticised Slovenia’s presence in civil missions of the EU, as “tangible contribution from our country in this area is nowhere to be seen”. It is expected that the military will do their share, while others “are waiting in safe havens”, she added.

POLITICS 5

Election Surprise Ljubljana Mayor Zoran Jankovic and his Positive Slovenia party emerged as the surprise winner of 4 December’s early general election in Slovenia, confounding expectations that the country was shifting to the right.

Photo: BOBO

By STA

P

ositive Slovenia won 28.5% of the vote or 28 seats in the 90-strong legislature, show the results after nearly all the ballots were counted, on a turnout of 64.6%.

Janković attributed his success to a “focus on the platform and the team” rather than scandals, arguing that his victory was “evidence that Slovenia will go in the right direction”.

Although securing 26.2% of the vote and 26 seats, the Democrats (SDS) of Janez Janša are the main losers, having ranked as the firm favourites in all public opinion polls ahead of the vote and facing

the most unpopular outgoing government on record.

Janša conceded defeat but expressed his view that the outcome will lead to a fragmented coalition that will not be up to the challenges ahead. “Slovenia can probably expect another early election,” he said. The Social Democrats (SD) of the outgoing PM Borut Pahor garnered 10.5% and 10 seats, which Pahor said was better than expected, while the Citizens’ List of Gregor Virant secured 8.4% and eight seats. Pahor, whose government was ousted on 20 September after a failed vote of confidence in parliament, said that the result

confirmed that the people were aware that he had led the government during difficult times.

Virant, who like Janković entered the race less than two months ago, labelled the showing of the fledgling party a success.

Three more parties made it to parliament: the Pensioners’ Party (DeSUS) won 6.97% and six seats, the People’s Party (SLS) 6.9% and six seats and New Slovenia (NSi) 4.8% and four seats.

The left-leaning combination of Positive Slovenia and SD has 38 votes, while the right-leaning bloc, the so-called Spring parties, has 36. This probably means

that the centrist Virant and the SLS or DeSUS will play the role of kingmakers.

Pahor would not say whether his SocDems would enter a coalition with Janković’s Positive Slovenia, but expressed readiness for talks.

Meanwhile, Virant said that his party was open for everybody who would accept its terms. “Any coalition is possible, but only under clear terms.” Crucially, Virant’s party indicated they aim at the ministries of justice and the interior.

Part y vice-president Ja nez Šuštersic said Positive Slovenia had continued on page 6 December 2011

COLUMN 6 POLITICS The projection and the outcome 35 Actual results of the vote 30 A survey by FUDŠ published two days prior to the elections

25 20

by Tilen Majnardi, business consultant

Historic Opportunity

10 5

What really happened on election day will be a topic of debate for numerous analysts. But one thing is clear, Slovenia has a chance to form a government outside the traditional ideological “left-right” framework which has in many cases been an obstacle to the development of the country.

The victory of Zoran Janković and his “Positive Slovenija” is certainly a huge surprise considering the whole campaign and particularly the election forecasts which clearly predicted a victory for SDS. Even up until the last day of the campaign all major media forecasted a smooth victory for Janez Janša and his strong right coalition – mainly because no one expected Janša to make a radical mistake in the finish of the campaign. His attack on main political competitors came back as a devastating boomerang as he was not able to explain his own real estate operations, which were at the core of his attack on Zoran Janković. It´s clear that the people punished his ambiguity, just as they punished Gregor Virant for his weak and indecisive explanation of his 12 month-long period of receiving wage compensation.

But in the end Virant somehow managed to pull out a decent result.

Forming a new government can sometimes be painful; sometimes surprisingly smooth and quick. The hope is always for the second scenario, and if the political parties prove sincere in their pre-election promises it should be possible. The concept of the new government should be some kind of “programme-based” non-ideological coalition with clear and measurable goals which consider the current macroeconomic situation. Short term stabilisation of the state budget, key structural reforms, more efficiency and less bureaucracy in public sector are the meeting point of all major candidates for the new coalition with Zoran Janković, SD (Social democratic Party), SLS (People´s party) and the Citizens list of Gregor Virant. A coalition with the Democratic Pensioners Party could be too risky considering their pension programme but nothing is excluded.

Of course there are few important differences between the possible partners. The main issues could be taxes and the privatisation of state owned companies. We can also expect that some smaller parties will try to raise the price of entering the coalition. But due to the economic situation in the Slovenia and the whole Europe – and big expectations from citizens who are tired of ideological and personal conflict in Slovenian politics – we can hope that the new government will be able to make important strategic decisions for the future of the country. The same goes for the main loser of the elections, the Slovenian Democratic Party. They have a new opportunity to show that they are capable of learning from their mistakes and that they can put the welfare of the people in front of the success of their party.

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SDS

Positive Slovenia

SD

List of SLS Gregor Virant

continued from page 5

maintained during the campaign that “corruption in the country is not a problem”, which is why it must not control the two key departments. DeSUS has been in almost governments since 1992 but it is considered a tricky partner with its stubborn insistence on protecting pensioners’ rights, which is all the more problematic since curtailing spending will have to be the main task of the new government.

The SLS, which has been in centre-right as well as centre-left coalitions, has also suggested it was willing to enter into coalition talks with Jankovic.

Janković is already facing calls to put together a firm coalition and quickly embark on much needed reforms.

DeSUS

NSi

Minorities

Head of the Chamber of Commerce and Industry (GZS) Samo Hribar Milič hopes the next prime minister will be able to form a sufficient majority to make quick and bold decisions.

Hribar Milič’s main concern is that coalition bargaining will lead to concessions to small partners in the ruling coalition, which could hurt the reform process.

The unions, on the other hand, are warning the winner to take social partners seriously and fulfil his campaign promises.

The elections were not problemfree as 100 ballots were stolen over night in Tržič, forcing the National Electoral Commission to close polls in the area for an hour in the afternoon and extending voting until 8 PM.

Coalition or opposition? Which party leaders would join Janković in the government?

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

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Front page by Jaka Terpinc

POLITICS 7

Events of the year 2011

Taking a Look Back The Hypo Alpe Adria Bank Scandal

The sudden replacement in February of the entire management of the Slovenian branch of the bank Hypo Group Alpe Adria and its leasing arm Hypo Leasing caused a huge uproar in Slovenia. The media widely reported that the move was the result of suspicion of wrongdoing on a massive scale.

“The supervisory board doubts that the management of the bank and the leasing house are providing comprehensive and correct information. Unfortunately there is evidence... of fraud, corruption, unlawful property gains ad gross negligence,” said a document submitted by the Austrian parent bank to the Slovenian central bank and which was published in Finance, the Slovenian daily.

Time to clean up the mess.

Allegedly, an internal audit found opaque transfers to Liechtenstein and other tax havens, hidden commissions, blackmailing of bank customers, approval of loans without sufficient collateral, and unwarranted outsourcing of backoffice activities.

Seven managers were replaced on short notice and escorted from the bank. The fact that Austrian security guards participated in the action was seen by many as proof that the Slovenian justice system couldn’t be trusted, leaving the Austrians deciding to take matters into their own hands. The affair was another in the long list of scandals that surrounded former interior minister Katarina Kresal. Eventually, they caused her downfall – and that of the entire Pahor government.

Photo: BOBO

2011 will be remembered by a number of both positive and gloomy developments. We look at those that stood out in a year filled with controversies, affairs, and changing political scenery.

A reliable partnership of big and small.

A Visit by Vladimir Putin

Ru s s i a n P r i m e M i n i s t e r Vladimir Putin visited Slovenia in March in what was billed as a new chapter in bilateral relations. Energy was the main focus with an agreement signed on a joint venture to build the Slovenian section of the South Stream gas pipeline.

The chairman of Russian gas giant Gazprom Alexei Miller and the boss of Slovenian gas infrastructure utility Geoplin plinovodi Marjan Eberlinc signed the agreement, establishing the Južni tok Slovenija (South Stream Slovenia) company, which would take charge of the project once the route through Slovenia is confirmed as feasible.

The accord sets down that each partner will hold a 50 percent stake in the company. But it does not determine the final route of the pipeline through Slovenia, which will be decided based on

a comprehensive feasibility study

by Gazprom.

Apart from energy Pahor and Putin discussed ways of boosting bilateral trade beyond the current level of EUR 1.2bn a year.

Pahor stressed in particular the prospects of Slovenian construction companies bidding for deals in Russia, including for facilities for the Winter Olympics in Sochi in 2014.

Putin meanwhile said Russia was particularly interested in expanding cooperation in the hightechnology sector and making capital investments.

A total of six agreements were signed on the occasion, including a memorandum on the establishment of scientific and cultural centres, a memorandum of understanding between the agriculture ministries and an agreement on cooperation between Slovenia and the Ulyanovsk region. continued on page 8

December 2011

Photo: BOBO

8 POLITICS

continued from page 7

NLB Bank Recapitalisation

The financial state of Slovenia’s biggest bank, NLB, dominated the headlines for most of 2011. The bank had a capital injection by taxpayers back in March, amounting to EUR 250m. Yet in July, the bank barely passed the European Bank Authority’s stress test, with its core Tier 1 ratio being 5.3 percent, with the threshold set at five percent. The EBA has recently stated that it wants all major European banks to increase their capital Tier 1 ratio to 9 percent, meaning that NLB will need another capital injection. The shareholders have approved the recapitalisation which needs to happen

by June next year. However, it is yet unclear who will provide the money and how much, with figures varying from EUR250m to EUR 400m. In the meantime, Fitch ratings agency downgraded NLB’s long-term foreign currency credit rating from A- to BBB.

Mini Jobs Act Referendum

NKBM Bank Double Listing

Slovenia’s second-largest bank, NKBM, listed its shares on the Warsaw Stock Exchange in May so becoming the first Slovenia company to be listed on a foreign stock exchange as well as the domestic one.

Prior to the listing, NKBM launched a capital increase on 4 April which was surrounded by controversy. The existing owners were invited first and then other Photo: BOBO

The act on mini jobs was decisively defeated in April’s referendum, with a surprising majority

of over 80 percent voting against on a turnout of nearly 34 percent.

The outcome was a painful vote of no-confidence for the government, and was a preview of the hard times the coalition would face pushing through with other, more crucial changes such as pension reform.

The mini jobs act would have abolished student work in its present form and extended shortterm contracts to the unemployed and pensioners. The work would have been capped at 720 hours per year and income at EUR 6,000 gross per year. Unlike present student work, mini jobs would have partially counted towards pensionable years and formally be considered as work experience.

Against mini jobs... Why exactly?

The Slovenia Times

investors to subscribe just over 13 million new shares which would be double-listed in Ljubljana and Warsaw.

The state decided not to take part in the NKBM recapitalisation, which was valued at up to EUR 132.4m.

However, the guardian of the state’s capital stakes in companies – the Capital Assets Management Agency – urged the government to take part in order to retain its majority stake in the bank. The agency said the relatively low share price (EUR 8) was a reason to do so.

The agency then went as far as to order three state-owned companies to take part in the capital rise, which caused uproar among some government ministers and resulted in calls for the dismissal of the agency’s management.

Although huge hopes were placed on the listing on Warsaw Stock Exchange, the listing failed to inspire investors or the value of the bank’s shares. Indeed, NKBM has seen its fortunes flounder this year. In November it reported a EUR 4.4m loss for the first nine months this year. On 29 November alone, the value of its shares dropped by 9 percent. From EUR 10 per share in January this year, the shares were hovering around EUR 3.5 in December. The outlook for 2012 is even gloomier.

Pension Reform Referendum

The Labour, Family and Social Affairs Ministry presented a blueprint for modernising the pension system, last reformed in 1999. Under the plan, the retirement age would have gradually been raised to 65 years for both men and women (from 63 and 61 years) and the minimum retirement age set at 60 years. The pension calculation period would have been gradually extended from 18 to 35 years. The new pension system would have entered into force in 2015.

Those opposing the reform – including DeSUS, the pension-

Is it really 20 years already?

The alarm bells are ringing in the construction sector.

ers party that were government coalition partners at the time – called for a referendum. Despite a powerful campaign backed by the OECD and European Union, an overwhelming 72 percent of Slovenians who voted rejected the proposal. This ultimately led to the fall of government and early elections. The outgoing prime minister Borut Pahor blamed the subsequent lowering of credit rating of Slovenian bonds and banks on the failure to pass the reform.

Slovenia Marks 20 Years

This year Slovenia observed a key milestone – it celebrated 20 years of independence. Weeks of events, which were an opportunity to celebrate the country’s achievements and to debate impending challenges, culminated on the eve of National Day with a central national ceremony in Ljubljana. National Day remembers 25 June 1991, when the Slovenian Assembly passed the Constitutional Charter on Sovereignty and Independence, with which the country gained statehood for the first time in its history.

Construction Sector Crisis

Slovenia’s construction sector has all but collapsed since the cri-

POLITICS 9 and shrunk by 0.2 percent on the quarter before. The Finance Ministry blamed the contraction on the euro debt crisis and its impact on exports, and the prolonged credit crunch, which it said caused a more pronounced slowdown in Slovenia than elsewhere in the EU.

Sale of Mercator

sis hit the country in late 2008 and some 20,000 people have lost their jobs in the industry in the past three years. Continuing a marked contraction, although at a slightly slower pace than in the previous quarters, the sector shrank by 19.7 percent in the third quarter this year, compared to the same quarter the year before. The outgoing government has proposed some measures to help the sector but with the outlook for the economy in 2012, it is very unlikely the sector will pick up any time soon.

In 2008, the construction sector accounted for 7.3 percent of GDP. Its share of the economy decreased to 7 percent of GDP in 2009, to 6 percent in 2010, and to only 4.3 percent in the first half of 2011.

Eurozone Crisis

Moody’s Investors Service, a global rating agency, downgraded Slovenia’s government bond ratings to Aa3 from Aa2 due to problems in the corporate and financial sector at a time of growing uncertainty regarding the government’s ability to curb growing debt. In a further blow, after lowering Slovenia’s credit rating by one notch to AA-, Fitch ratings agency also downgraded credit ratings of seven Slovenian banks.

The banks whose long-term foreign currency credit ratings were lowered were NLB (from A- to BBB), NKBM (from BBB+ to BB), Abanka Vipa (from BBB- to BB-), Gorenjska banka (from BBB to BB), Banka Celje (from BBB to BB) and Probanka (from BB- to B).

Finally, Standard & Poor’s downgraded Slovenia’s long and short-term sovereign credit ratings by one notch to AA-/A-1+ from AA/A-1+ on grounds that the country’s fiscal position has deteriorated since the onset of the 2008 financial crisis and that policy makers have not yet presented a credible consolidation strategy.

Reports in November showed that Slovenia’s economy contracted by an annual rate of 0.1 percent (seasonally and working days adjusted) in the third quarter of 2011,

The attempt by a consortium of banks and Pivovarna Laško to sell the majority stake in retailer Mercator to Croatian retailer Agrokor has caused an uproar in Slovenia both with those in favour of and against the sale. Those against are mostly worried that Slovenian food and drinks producers will lose their place on Mercator shelves. They are also worried that due to Agrokor’s apparently weak financial standing, it will

use Mercator’s relatively good financial standing to cover its own costs. Those for the sale argue that those against it are letting their “national interest” sabotage a perfectly sensible and profitable deal. Agrokor is by far the highest bidder for the Mercator shares, at EUR 221 per share. The saga continues...

Early Elections

Early elections started off with pessimism with old faces gracing the list of candidates. However, the election race was significantly revived with the entry of two new candidates: Gregor Virant and Zoran Janković. Even so, the campaign turned into affair-seeking-race with the media, the public, and the candidates themselves looking to find evi-

FLYING BLUE.

dence of who was more dishonest and corrupt. Virant’s inability to fight off accusations of taking legitimate government pay while freelancing at the same time cost him a lot of votes. Janković had to continuously explain his connection with his sons’ companies as well as dubious deals that his sons were involved in. Janša’s opponents managed to dig out some dodg y documents regardi ng the property he owns, as well as having the ongoing Patria affair trial at their disposal. In the end it lost him another election, with Janković being the surprise winner. His victory gives Slovenians a new alternative to the well-established political elite but Janković will nevertheless have little choice but to form a government that will include old familiar faces.

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December 2011

10

Economy

FACTS AND FIGURES

source: STA, Slovenian Press Agency

NKBM Group Registers More Loss

In the January-September period, the group generated EUR 63.7m in operating profit before provisions and write-offs or 63 percent of the plan for 2011.

Operating profit of the core bank stood at EUR 7.3m, while net profit amounted to EUR 6.2m.

Total assets of the Maribor-based bank stood at EUR 4.8bn at the end of September, which is one percent less than at the end of 2010.

In the first nine months of last year, the NKBM group made a net profit of EUR 20.3m and the core bank a net profit of EUR 13.8m.

Due to credit risks, the group had to set aside a total of EUR 69.8m in provisions and write-offs in the first nine months, which is 103.9 percent of the planned amount of provisions and write-offs for the entire year.

Also contributing to the operating loss were lower net operating income and net interest income, losses from financial assets and liabilities, and lower revenues from investments in the equity of associated companies.

Total assets of the NKBM group stood at EUR 5.9 billion at the end of September, a 0.2 percent drop compared to the end of 2010. The decrease is primarily a consequence of repayment of loans from foreign banks, according to the report.

On the other hand, an increase in customer deposits and equity in the first nine months partially offset the decrease in total assets of the banking group.

The group generated a net interest income of EUR 101.85m, which was 71.5 percent of the annual plan, while the net fee and commission

income amounted to EUR 45.11m, accounting for 78.4 percent of the annual projection.

For the first nine months, the group reported a EUR 2.85m profit from investments in the equity of associated companies, which is 57 percent of the annual plan.

At the end of September, the total equity of the group amounted to EUR 525m, an increase of EUR 86.02m or 19.6 percent compared to the end of last year, as a result of a capital increase in the first half of 2011.

NKBM chairman Matjaž Kovačič said in the report that both the core bank and the group would fail to meet the projected results and that they would end 2011 with an operating loss.

Worrying slide for NKBM shares (price per share in EUR) 11

9

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5

3

Tourism

Insurance

New Subsidiary

S&P Upholds Ratings Krka Reports Fall for Triglav Group in Profit Last month, the Standard & Poor’s rating agency confirmed the A-level long-term credit and financial strength ratings for the Skupina Triglav insurance group.

Long-term credit ratings and midterm financial strength ratings were also confirmed at A-level for the Zavarovalnica Triglav insurer and its subsidiary, reinsurer Pozavarovalnica Triglav Re. The insurer also reported EUR 35m net profit in the first nine months of 2011, which is a 9.6 percent more than for the same period last year.

Collected gross insurance premiums amounted to EUR 548.9m, which is 3 percent more than in the same period last year. The group plans to generate EUR 54m in net profit for the entire year.

Pharmaceuticals

Krka shares decrease slightly (price per share in EUR) 54

52 51 50 28. 10.

9. 11.

22. 11.

12. 9.

2. 12.

Claims Filed as Part of SCT Receivership

Pharmaceutical group Krka posted a net profit of EUR 115.4m in the first nine months of 2011, which is 4 percent less than in the same period last year, while the core company’s net profit dropped by 17.3 percent to EUR 109.2m. The company is planning to list its shares on the Warsaw Stock Exchange by end of June 2012. In the first three quarters this year, the group sold EUR 768.2m worth of goods and services, which is 6 percent more year-on-year, Krka chairman Jože Colarič told the press. The group expects its total sales revenues in 2011 to stand at EUR 1.07bn (up 6 percent year-on-year) and net profit to reach EUR 162m.

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9. 5.

Construction

53

The Slovenia Times

28. 1.

Source: LJSE

Sava, the chemicals-to-tourism conglomerate, completed last month the merger of all of its tourism subsidiaries into a single company, called Sava Turizem, creating the biggest tourism company in the country.

Sava’s spa subsidiaries Terme 3000, Zdravilišče Radenci, Terme Ptuj and Terme Lendava were joined into the wholly-owned subsidiary Sava Hoteli Bled, which has been renamed into Sava Turizem. With revenues to the tune of EUR 66m, Sava Turizem will be the biggest tourism company in the country with over 1,200 employees, 3,900 beds and a 12 percent share of total overnight stays. The new firm does not plan to divest, however the number of employees will be reduced, Sava Turizem boss Andrej Prebil told reporters.

Source: LJSE

Photo: BOBO

The group around Slovenia’s second largest bank NKBM accumulated an operating loss of EUR 6m in the first nine months of 2011.

The net loss for the period amounted to EUR 4.4m, while capital adequacy ratio was 12.78 percent at the end of December, NKBM said in an unaudited report published at the end of November.

2. 12.

More than 3,000 claims worth a total of EUR 585.4m have been filed as part of receivership proceedings for former construction giant SCT. Receiver Leon Benigar Tošič assessed last month that the bankruptcy estate will not suffice to pay off ordinary creditors. The list of tested claims shows that accepted ordinary claims account for EUR 147.6m, conditionally accepted claims for EUR 239.5m, while there are also EUR 9.2m in preferential claims and EUR 8.6m in claims related to receivership costs. Topping the list of creditors with accepted ordinary claims is the state-owned NLB banks with EUR 43.9m. NLB is also the biggest creditor as regards accepted secured claims, claiming EUR 31.3m.

11 Logistics

Finance

Airport Operator Reports Profit

Government to Issue Jub and Pavan Treasury Notes Ekologija Win Eco The government is to issue up to Awards

Ljubljana airport’s profits pick up again (net profit in ‘000 000 EUR) Source: STA

10 9 8

5 4 2008

2009

2010

2011

Maritime

Boat Maker Celebrates Major Milestone Slovenian boat maker Seaway celebrated last month the production of its 200th Greenline 33 boat, which company owner Japec Jakopin said was the world’s best-selling boat in its 10-metre class in the past year.

The first Greenline 33 was made at the beginning of 2010, and the 200th boat is currently being built at the Zgosa plant in north-west Slovenia, while another 20 boats have already been ordered. The company has thus sold 220 boats of the type, which cost between EUR 100,000 and EUR 150,000, in 28 countries, Jakopin explained.

The company invested EUR 7m in the Greenline series of boats since 2008, mostly in the development of new hybrid technologies and green composite construction. According to Jakopin, this year was a year of restructuring and production of hybrid vessels. “The market is undergoing long-term and thorough changes, and we have to adapt to these changes,” he said.

The Environmental Meeting 2011, hosted by the business daily Finance, gave out last month the awards for the most environmentally-friendly companies. Wall coatings maker Jub won an award for a health-friendly nursery wall paint while waste water treatment company Pavan ekologija won the award for an energy saving water filtering system. Jub got the award for the most eco-friendly product for its Jupol Junior wall paint for nurseries, children’s rooms, play rooms and class rooms, which has already acquired the European Union eco label. Pavan ekologija developed a waste water filtering system which uses a self-cleaning gravity separator and a patented universal coalescer. The process is environmentally-friendly and very efficient, reducing waste levels in water below the EU norms.

Last month, NLB bank carried out a buyback of EUR 93.2m-worth of three-year state-guaranteed bonds with the due date on 23 July 2012, reducing the outstanding amount to EUR 1.022bn. The bond issue was originally worth EUR 1.5bn, with the latest in a series of buybacks bringing NLB close to its stated goal of buying back EUR 500mworth of bonds. In late September NLB bought back bonds worth EUR 149.4m. The three-year bond, the first NLB bond issue on the international market, is traded on the Luxembourg Stock Exchange.

Automotive

The British Job

Slovenian GDP Shrinks in Third Quarter

Tourism

Photo: mediaspeed

6

NLB Buys Back Bonds

Finance

Rimske Terme Spa Files for Debt Restructuring

7

3

EUR 1bn in 18-month treasury notes by the end of the year to service the government debt due at the beginning of 2012. The possibility of the treasury note issue was envisaged in the programme of funding of the 2011 budget adopted last December, the Finance Ministry said last month. The issue will also be used to pre-finance repayments of a part of the principal sum of the government debt due in the next two budget years. This will reduce the risk of re-financing of the principal sum of the government debt which will be due at the beginning of 2012, the ministry explained, adding that the changes to the budget funding programme alter the ceiling for borrowing in 2011 to EUR 4.3bn. The EUR 1bn issue of 18-month treasury notes would put the amount of total borrowing in 2011 at slightly more than EUR 4bn, putting the public debt at 42.5 percent of Slovenia’s GDP.

Banks

The operator of Rimske terme has filed for court-mandated debt restructuring, only eight months after it opened to the public. The company is struggling with liquidity. Rimske terme chairman Alenka Iskra, who filed the proposal for debt restructuring with the Celje District Court at the end of last week, said the financial plan for Rimske terme was overly optimistic.

Iskra, who took over at the helm of the spa operator in October, proposed debt restructuring in midNovember in a financial restructuring plan, which also proposes a capital injection and reprogramming of a long-term investment loan. The company is struggling to secure fresh capital and the latest attempt at a capital injection which would cover operating and financial liabilities has failed, according to Iskra. The company had accumulated a EUR 100,000 loss by mid-November.

Slovenia’s economy contracted in the third quarter as export growth lost pace and domestic consumption failed to recover Gross domestic product shrank 0.5 percent from a year earlier, compared with revised growth of 0.8 percent in the second quarter. Slovenia’s export-dependent economy is sliding into a recession with demand for its goods in Europe waning as governments carry out austerity measures to tackle the worsening sovereign-debt crisis. Europe, where Slovenia sends about two- thirds of all exported goods, may also enter into recession in 2012. Domestic consumtion is still not recovering as a result of shrinking lending activity of Slovenian banking sector and lack of public investments. As the economy is not recovering as expected the new elected government after elections on 4th of December will immediatelly need to tackle the worsening fiscal position.

Gross domestic product, constant prices, growth rates (in %) 3

Source: SURS

The operator of the Ljubljana airport, Aerodrom Ljubljana, generated EUR 5.7m in net profit in the first nine months of 2011, which is an increase of 44.5 percent compared to the same period last year.

Revenues meanwhile rose by 3.3 percent to EUR 25.8m. The positive operating trends from the first half of 2011 continued in the third quarter, mostly because of foreign air carriers segment and cargo transport, the company said. Aerodrom Ljubljana registered 31,242 aircraft movements, which is down 4.9 percent year-on-year, but as this is mostly due to general aviation, it is not of great financial importance, the company says. there were also 1.9 percent less take-offs and arrivals in public transport, but as carriers traded smaller planes for bigger ones, it is a positive trend in terms of revenues, the company added.

Cargo transport rose by 20.8 percent year-on-year.

Ecology

2 1 0 -1

Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

David Cameron, the Prime Minister of the United Kingdom, last month opened a McLaren Production Centre, the new state-of-the-art home of McLaren Automotive.

Trimo, a Slovenian company that manufactures pre-fabricated construction panels, provided a specially adapted form of its Qbiss One high-performance cladding for the new production centre, producing a professional, functional interior and exterior facade solution to the MPC’s architectural design concept, the company says on its website. “Qbiss One façade system is a total wall solution offering the very best in aesthetics with total performance and functionality: the watertight and self-supporting exterior skin will insulate the MPC from the ravages of the British weather, while the interior panels provide fire resistance as well as an elegantly high-tech finish that fits perfectly with the McLaren ethos”, the company adds. Executive Chairman of McLaren Group and McLaren Automotive, Ron Dennis said that “the efforts of Trimo have been essential in bringing such a lengthy design and build process to a hugely satisfying conclusion.”

December 2011

12 ECONOMY

Financial crisis

Downward Spiral The prospects for the Slovenian economy are looking anything but good. Growth in the third quarter of the year was down; Slovenian government bonds have been lingering around the alarming seven percent mark in the last month; and the country has seen yet another drop on a global list – eight place, this time on corruption.

By Mateja Novak and STA

S

lovenia’s economy contracted by an annual rate of 0.1 percent (seasonally and working days adjusted) in the third quarter of 2011, and shrunk by 0.2 percent on the quarter before. The finance ministry blames the contraction on the Euro debt crisis and its impact on exports. Also responsible, it says, is the prolonged credit crunch which has caused a more pronounced slowdown in Slovenia than elsewhere in the EU.

And the blame for the credit crunch itself? That lies, the ministry argues, with the demands for higher capital adequacy ratings of banks made in July last year.

Lending activity has deteriorated explicitly since then.

Despite the drop – which comes after five consecutive quarters of growth – Slovenia’s economy expanded by 0.8 percent in the first nine months of 2011 compared to the same period last year. The trend

however suggests that growth will be very weak at the end of the year, especially considering that the situation in both the eurozone and the broader international environment is deteriorating.

Lower growth

The Organisation for Economic Cooperation and Development (OECD) expects Slovenia’s economy to expand by one percent this year, but GDP growth is expected

to slow to a mere 0.3 percent in 2012 before ticking up to 1.8 percent in 2013.

The Institute of Macroeconomic Analysis and Development (IMAD) revealed last month that it is also likely to downgrade its GDP growth forecast for this year and next due to the severe deterioration of the international economic environment.

“Some of the downside risks are being realised and we can expect

Expectations for 2012

Caution Ahead With a very gloomy outlook for the next year facing not only Slovenia but the global market as a whole, we asked renowned Slovenian businessmen, academics and analysts to share their own expectations for 2012. Not surprisingly, all agree that the next 12 months will be ones of uncertainty and caution. But there is also hope that the new government will finally start implementing the reforms that Slovenia needs to get out of the red.

Professor Jadran Lenarčič, director,

Institute Jožef Štefan

elections we have lost some pace, but I hope that the elections are also an opportunity to achieve a broader consensus on key development issues.

Therefore, beside the recession, in 2012 I also expect historical development indicators to start moving up.

Peter Frankl, editor-in-chief, Finance daily

Unfortunately, everything indicates that 2012 will not be better than 2011, which was marked by the cri-

How deep the recession will be and how many of us will be affected significantly depends on the effectiveness of our response to the first wave of crisis in 2009. It will now become clear whether our measures were only short-term or whether we have conducted more qualitative changes with the objective of developing a knowledge-based economy. Because of the The Slovenia Times

sis. Slovenia is not yet out of the first crisis and we are facing a new wave at the door. Sooner or later Slovenia will have to go through reforms, which are likely to be quite painful and this will be a job for the new government.

Obviously we cannot expect the new government to wave a magic wand and make everything suddenly okay; on the contrary, much effort will be needed to first achieve some sort of consensus on choosing the path on which we will begin to climb again.

That’s why I would like to see in the parliament a government of significant majority in order to make it possible to start reforms. I hope that towards the end of 2012 the situation will start to improve: that the banking crunch will loosen up; that there will be much more optimism; and that the state will save wisely while investing reasonably at the same time.

Igor Plestenjak, chief

executive, Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI)

Based on global trends, Slovenia can hope to improve its flow of foreign di-

rect investment next year, but this is not as obvious as it may seem. Proactive promotion of Slovenia as a country suitable for investment is needed both in Europe and global markets.

The strategy of JAPTI in attracting foreign investment will focus on intensive promotion and marketing of Slovenia as a location for FDI, proactive presentation of Slovenian investment projects abroad, and attracting

ECONOMY 13 that in the coming quarters economic growth will be lower than forecast,” IMAD director Boštjan Vasle told the press.

In its autumn forecast IMAD put GDP growth at 1.5 percent this year and two percent in 2012, but Vasle said the figures were based on assumptions of international economic conditions, which have deteriorated sharply.

Whereas forecasts for euro area growth had hovered around 1.6 percent in July, they do not exceed 0.6 percent now, according to Vasle.

Rising bond yields

To add to the worrying developments, 10-year government bond yields reached and exceeded the psychologically important seven percent benchmark last month.

Greece, Ireland and Portugal had to ask for a bailout from the IMF and EU after reaching this ceiling. However, outgoing finance

potential investors who are either interested in a certain project or are looking to invest in a new location.

Given the harsh economic conditions we will increase promotional activities for the public tenders of promoting foreign direct investments. In 2012 our budget for financial incentives for foreign investors will be EUR 10m. The possibility of obtaining financial incentives, and consequently co-investment of projects by foreign investors, makes it easier and faster to implement planned investment activities.

In 2012, we will also continue and further strengthen the positive experience in the direct marketing of foreign direct investment – so-called lead generation.

In the next year it will also be crucial to provide quality information, advice and other services for foreign investors during all investment stages – from the collection of relevant information in the pre-investment stage, to assistance during the investment phase where the possibility of obtaining financial incentives for investment projects plays an important role.

Special attention will also be given to the post-investment stage – the so-called aftercare phase – as many foreign-owned enterprises decide to upgrade their activities in Slovenia.

The projects are implemented quickly if there are regular contacts with existing clients.

Sandi Češko,

president and chief executive, Studio Moderna

I haven’t got a crystal ball to be able to predict developments in 2012 with certainty. I think, however, that 2012 will be like being on a fast carousel – it

minister Franc Križanič was not worried by the rising bond yields.

He argued Slovenia was relatively well supplied as far as financial resources go, which is why he does not expect any “major shocks” at least until 2014.

The European Commission has also not shown concern. It said it is not worried by the situation in Slovenia, expressing belief that the Slovenian authorities and economy would be able to tackle the main challenges in the coming months. The Commission added, however, that Slovenian economy would have to introduce important structural reforms by 2013.

Export drives

According to the latest results, growth in Slovenia is still propelled by exports. These are, however, rising at a significantly slower pace than in the first six months of the year. At an annual

level exports grew by 5.6 percent in the third quarter. Imports grew even more slowly, by 3.7 percent, which resulted in a positive external trade balance of 1.3 percentage points.

Domestic spending showed no signs of recovery in the third quarter, contracting by 1.9 percent over the third quarter in 2010. Continuing a marked contraction, although at a slightly slower pace than in the previous quarters, was the construction sector, which shrank by 19.7 percent on the same quarter of the previous year.

Commenting on the third quarter drop, IMAD said it was in line with short-term indicators and that “uncertainty in the international environment is increasingly reflected in the export segment of the economy”, a key motor of growth.

The slowdown in exports was reflected the most in manufac-

turing, where added value fell by 0.1 percent in the third quarter year-on-year after having grown by 5.1 percent in the second quarter, IMAD said. The Institute also pointed to domestic spending remaining below last year’s level in the last two quarters, with gross fixed capital formation dropping by 13 percent in the third quarter over the same period last year.

Also down year-on-year was government spending, by 0.5 percent, while household spending increased by 0.2 percent. IMAD added the latest Eurostat data put EU-wide GDP growth in the third quarter over the previous quarter at 0.2 percent, with only three countries performing worse than Slovenia.

With such bleak developments, a lot of pressure is being put on the yet unformed government to act quickly in order to avert a further slide in the Slovenian economy.

In Luka Koper we expect the new government to immediately start dealing with the difficult economic situation in the country, which is currently limiting the development potential of Slovenian companies. We want the credit crunch to be released as it is now hampering necessary investments. In terms of developments of direct interest to the port, we expect that next year will see the construction of the second rail track between Koper and Divača, which is crucially important for its long-term development.

will be good to have a strong stomach and nerves of steel. But most of all, we will need a lot of optimism. Most of the economy is embedded in parts of the world where growth is still quite satisfactory. Such markets are mainly for larger companies. Smaller companies, however, do not need to go to distant markets. Slovenian entrepreneurs – especially smaller, more flexible companies – can find opportunities even closer, for example they can focus on the western markets. We should not be easily frightened by difficulties. Our formula is: research the markets and go to those where there are problems, because that is where the opportunities lie.

Professor Danica Purg,

dean and president of IEDCBled School of Management

I believe that the situation in 2012 may be even more complex than it is now. We are very much depending on the European Union and the region of South East Europe and the situation in these environments is not good. But if we work on new markets (Turkey, Black Sea, Latin America,

Africa, Asia) and invent new business models, services and products, we can turn the crisis into opportunity. I hope that the new government will have the courage and imagination to do something good for the most innovative and international companies in Slovenia.

Dejan Turk, president of the board, Si.mobil

Dr Gregor Veselko,

president of the board, Luka Koper

Unfortunately, 2012 will be a postelection year. This means that some time will be spent on putting the government together before it begins sorting problems out. I am afraid that next year will not be the year of necessary difficult reforms which are the only things capable of improving the conditions for restarting the economy. We sincerely expect another difficult year in terms of both the crisis and financial uncertainty.

December 2011

14 ECONOMY

Slovenia’s richest people

From Retail to Riches The 2011 survey of richest Slovenians not only sees retail magnate Mirko Tuš being replaced as the country’s richest man, but also finds other new movers and shakers finding their way into the list.

By Laura Bovec

S

andi Česko, who has made his fortune th rough the Studio Moderna group of home shopping companies, has dethroned retail magnate Mirko Tuš as the richest Slovenian. The latest annual wealth survey published by Manager magazine shows Češko more than doubled his fortune to an estimated EUR 205m to climb up from fourth to first spot. He replaces Tuš, worth EUR 100m, who had topped the list of the 100 Richest Slovenians since its first release in 2007. Tuš has now taken Češko’s old spot of fourth place. Češko’s success is especially impressive considering that most Slovenian companies are struggling to find extra finance. Yet Studio Moderna has an array of investors wanting to purchase a stake in the company. It is expanding fast and has attracted foreign investors such as JH Partners, Templeton, Insight Partners and General Atlantic, which paid EUR 25m for a 10 percent stake in the company.

Last year, the firm’s revenues increased by 30 percent, to EUR 325m, while this year the company expects to increase them further to EUR 390m.

apps in the world. According to Manager, Outfit7 phone and tablet applications were downloaded by more than 150 million users between July 2010 and July 2011.

Fast entry

Newcomers

The Slovenia Times

Sandi Češko, president and chief executive, Studio Moderna

Outfit7. The firm is the creator of Talking Tom Cat and other Talk-

ing Friends applications – some of the bestselling iPhone and iPad

Biggest climbers Sandi Češko

Studio Moderna

135%

Otmar Zorn

Iskra zaščite

93%

Odlazek family

Krater

70%

Albreht family

Zlatarna Celje

54%

Karoly family

GMT

51%

Anton and Verica Šenk

Inotherm

42%

Biggest drops Bahtijar Bajrović

Sportina, Condor Real

-53%

Tomaž Lovše

Diners Club and finacial holdings

-53%

Peter Tevž

Radeče Papir

-51%

Mirko Tuš

Tuš Holding

-49%

Stanko Polanič

Intering Holding, Skupina Panvita

-45%

Darko Zupanc

PSZ

-40%

Source: Manager magazine

Second on the list remains Igor Lah, who made money on privatisation vouchers during Slovenia’s transition to market economy.

His wealth is estimated at EUR 129.4m.

Yet about one fourth of those on this year’s list are newcomers, while seven made their way back after dropping out. In total, 12 couples found their place on the 100 richest Slovenians list. The top five alone includes two newcomers, both couples. Albin and Tatjana Doberšek in third place set up an engineering company in Germany in the early 1980s.

Engineering Dobersek was recognised by the analysts at Manager because of its involvement in the construction of a new generator at the Šoštanj coal-fired power plant TES. The Doberšeks’ fortune is estimated at EUR 119m.

Samo and Iza Login, in fifth spot, made a fortune worth around EUR 80m through the IT company

Standing out thanks to the speed with which he increased his wealth is Uroš Merc from the photovoltaic modules producer Bisol.

It has taken Merc just four years to make it to the list. Bisol also has subsidiaries in Belgium, France and recently Italy. Last year, the company’s revenues increased by more than 100 percent, to approximately EUR 60m, and the net profit increased five-fold to EUR 3.6m.

Merc is not the only Bisol owner on the list – Marko Poličnik, who owns a third of the company, is also on the list at 50th place.

Some have fought hard to make it on to the list. Just two years ago Robert Grah, chief executive and majority owner of SG Automotive, was forced to reduce staff numbers. But according to Manager magazine he managed to overcome the crisis because he knew how to find new opportunities.

The company developed its own street lights, based on LED technology. Grah stands out not only because he is opening up production in countries with cheaper labour, but also in France and the USA. From a peak in 2008, when the total wealth of the 100 richest Slovenians amounted to EUR 4 billion, this year the figure dropped to EUR 2.5 billion. Although the combined wealth of the 100 richest remains at about the same level as last year there are more of those whose assets shrunk, newcomers excluded.

Many of those who dropped out of the list are owners of construction companies, including Ivan Zidar of SCT. The list also includes two mayors: Ljubljana’s Zoran Janković with his sons, and Miran Vuk of Zavrc. Ivo Boscarol, the owner of plane maker Pipistrel, did not make it this year because the company nearly halved its profits despite higher revenues as it focuses on internal reorganisation. The last 12 on the list have their wealth estimated at around EUR 11m each.

INNOVATION SPECIAL 15

Hidden Champions

Working Smart and Hard “Who could imagine that in Central and Eastern Europe there are so many innovative companies with major global market shares in their respective fields of activities? Even OECD experts agree that this is incredibly positive news from this part of the world.” Positive words from Professor Danica Purg as she presented the results of a two year research project into “hidden champions”, defined as local businesses that are holding international market leadership positions.

By Simon Demšar

T

he president of the IEDCBled School of Management and the founding president of the Central and East European Management Development Association (CEEMAN) explained that the objective of the joint project was to identify such companies in Central and Eastern Europe (CEE) and Turkey and Kazakhstan. A further aim was to check the assumption that some Central European countries are lagging behind in terms of their economic position in the globalised business world.

The research yielded 165 “hidden champions” (HC), mostly small and medium-sized enterprises. The largest number of them, 36, came from Poland while Slovenia has 16. The researchers defined HC as companies holding international market leadership positions, usually in a narrow product group. Generally unknown to the general public due to operating in the business to business sector, the firms exhibit not only distinctive products and product positioning but also have in many cases created distinctive business models and novel business practices. They all carry strong international competitiveness in at least one product category, exhibit consistent growth over the last decade; innovate much above the average national company level; have the capability to adapt to demanding business environments; make for interesting leadership stories; and have success that is based on working smart and hard.

From Germany to Slovenia

The research was inspired by the work of Dr Hermann Simon, one of the most influential marketing and management experts in the world, who was also the first to identify the concept of HC. His first study was performed in 1996 and focused on his native Germany. It was repeated in 2008 when it included also Austria and Swit-

zerland. The results led Simon to the conclusion that HC significantly contribute to the success of the economies in which they operate. Until two years ago, such firms made Germany the largest exporter in the world.

Similarly to Simon’s HCs, many of Central and Eastern Europe’s hidden champions come from mature industries such as industrial machines, transportation, automotive, information and communications technology. There are also many from the metallurgy and energy sectors. The majority of them are leaders in the Western Balkans, Southern Europe, Baltic region and former Soviet Union.

Some of them rely on low labour costs and commodities while others are technological leaders. The latter stand a better chance of reaching global leadership, the researchers argue, but – contrary to German HC – their strategic goals are not framed explicitly in terms of seizing global market leadership.

International value

The IEDC-CEEMAN research has not merely been greeted with interest from those in the region.

Experts from the OECD and EU have also expressed interest since

they have previously found it extremely difficult to extract meaningful data from the region.

Slovenia’s Hidden Champions • Akrapovič, exhaust systems for racing bikes • Atech, electro-motors and navigation control systems for heaters on biomass • Bia Separations, monolithic columns technology (purification stage of bio-drug production process) • Bisol, photovoltaic modules • Eurolabel/Europlus, software service to design and print labels with bar code and RFID labels • Genelitik, advice on nutritional and lifestyle choices based on genetic analysis • GenePlanet, advice for the prevention of potential (curable) diseases based on genetic analysis • Hidria, diesel cold start systems for internal combustion engines, extenders for hybrid electric vehicles, and aluminium die-castings for automotive steering systems • Instrumentation Technologies, instrumentation for the accelerator beam diagnostics market • Metrel, production and supply of test and measurement instruments for electrical safety in low voltage electrical distribution industry • Optotek, ophthalmological laser for diagnostics and therapy • Pipistrel, ultra light aircraft • Seaway Group, sail and motor boat design for equipment manufacturers and leading boat brands • Studio Moderna, electronic retailing and direct marketing • Tajfun, production and supply of three point logging winches December 2011

16 INNOVATION SPECIAL

COBIK Conference

Sell Your Innovation Slovenia is lagging behind developed countries in translating good ideas and inventions into internationally successful products, services, and solutions.

The problem is not the lack of know-how; it is just a case of learning to properly introduce innovations on to the market.

By Simon Demšar

A

ccording to the 2011 Global Innovation Scoreboard, Slovenia is among the followers when it comes to innovation; behind the leaders but ahead of moderate innovators, the group in which it found itself in the last report. Unfortunately the Pro Inno Europe initiative – the organisation behind the scoreboard, dedicated to analysing countries’ innovation performance – says that the followers are still “far behind the innovation leaders”.

A good reason to dedicate this year’s Centre of Excellence for Biosensors, Instrumentation and Process Control (COBIK) to the subject of translating innovation to successful market implementation. COBIK is one of eight centres of excellence in Slovenia, focusing on creating cutting-edge solutions and implementing them into industrial processes or upgrading them through new partnerships.

Put the customer first

Wim G. Biemans, professor at the Faculty of Economics and Business of the University Groningen, was the main speaker at the event. He stressed the importance of understanding the customer and their needs in the earliest phases of innovating. He also emphasised the need to create and manage connections within a firm, as well as between the innovating firm and outside partners such as suppliers, and customers.

All these relationships need to be managed carefully to translate an innovative new product idea into a successful new product, he argued. And he said it was important to take a risk sometimes: “Innovating is not rocket science; you should experiment and not be afraid of failure.”

Dr Špela Stres from the Jožef Štefan Institute emphasised the

p o s it i ve s: t h at Sloven ia h a s a r e l at ive ly h ig h number of published papers in scholarly journals, that investments in research and development (R&D) are considerable and that progress is fast. But he agreed that the nation is lagging behind in terms of successful commercialisation of innovation.

Positives

There were some positive examples on show. Hubert Kosler talked about how his company from the small town of Ribnica has made its way onto the global market. “The established approaches had to change, which has been a positive consequence of the economic depression,” he said. He put the success of Motoman Robotec and Yaskawa Ristro down to careful after sale services,

investing in employees’ training, and the R&D-based philosophy of the company.

Matevž Rašković presented the results of a survey of 160 small and medium-sized businesses in Slovenia which revealed an ongoing dedication to research. It showed that – compared to 2009 – they invested more in R&D in 2010. He argued that the main obstacles to better commercialisation and innovation are employment of aliens, tax legislation and the lack of development finance.

The COBIK conference identified issues but also revealed many positives. The challenge now is to address the issues and make sure that Slovenia reaps commercial rewards from its innovations.

Innovation Forum

Finding the Way to the Market Slovenians are an innovative nation, but, unfortunately, a great deal of brilliant ideas with high innovative and commercialisation potential never get to the implementation stage.

By Simon Demšar

T

his was the prevailing impression at the Slovenian Innovation Forum, organised by the Public Agency for Entrepreneurship and Foreign Investments (JAPTI) and the Ministry of the Economy. “The journey to commercialisation becomes more pleasant if there is a helping hand, which is what the Forum is all about: to provide a stage for innovators to display their ideas and discoveries and to benefit from a range of state measures, tailored to spur innovative momentum,” says JAPTI director Igor Plestenjak.

It is a fact that the number of registered patents in Slovenia is growing faster than the EU average; however, the economy is not using them and innovators cannot sell their know-how. Although innovators themselves feel the attiThe Slovenia Times

tude of the state and the economy towards them is improving, they still believe to have too many problems and the state has failed to provide systematic support for developing innovations and getting them into production.

Ivo Boscarol, the CEO of ultralight aircraft manufacturer Pipistrel, said that Slovenia had arduous and motivated people, and many good innovations, but what was missing was a vision. “With a vision, strategies can follow for spreading the innovations outside Slovenia,” he said, calling the innovators attending the Forum visionaries. What is needed besides innovation and vision is ambition and courage, he added.

The forum attracted a total of 235 innovations and 55 of them were selected for a display at the

event. According to organisers, the response to this year’s forum was the highest ever. Innovations included products, services and

business models as well as processes. The biggest number of applications came from micro, small and medium-sized companies.

The Cream of the Forum Innovations were reviewed and evaluated by 56 members of the National Evaluation Committee. Awards in seven categories went to the following companies and individuals: Pipistrel, d. o. o.: four-seat passenger aircraft Panthera with modular drive Domel d.o.o.: user-friendly electronics for EC motor controllers MESI d.o.o.: automated ankle brachial pressure index measuring device Marko Čenčur: the method for producing dimmable energy saving light bulbs Mandatela d. o. o.: brand engaging games Uporabna energetika, d. o. o.: solution for intelligent monitoring of energy consumption EIC Ana Krajnc and Dušana Findeisen: University of the Third Age

FOREIGN DIRECT INVESTMENT 17

FDI

NEWS IN BRIEF

source: STA, Slovenian Press Agency

Biotechnology

Energy

Tourism

Help from Abroad

MOL Aiming to Increase Market Share

Terme Maribor Spa Finds a Buyer?

A biotech company from Ajdovščina has secured foreign funding for some new investments. BIA Separations needs to finance investments in new buildings and equipment but was unable to secure loans from Slovenian banks.

It therefore opted for a capital increase. Aleš Šancar, chief executive and co-owner of the firm, has revealed that a contract has been signed with a Japanese multinational though he says he is currently unable to disclose the name of the firm. Agreements have also been made with two German companies which will together invest some EUR 8m. BIA Separations manufactures and sells laboratory and industrial proprietary and short monolithic chromatographic columns based on CIM Convective Interaction Media Technology. Monolithic columns are primarily suitable for purification of large bio molecules such as viruses, DNA and larger proteins. Products are used in research, laboratory and pilot as well as industrial production stages. Šancer says that efforts to expand have been ongoing for some time. “Our products have high added value but can not be made overnight,” explains Šancer. “They need 10 to 15 years to penetrate the market. But we did not even have space for the installation of industrial production. So we decided to build new facilities and two years ago we agreed with EIB a EUR 8m loan to finance these investments. But we did not see the money; the bureaucratic obstacles to obtaining this loan were too big and too expensive. We couldn’t get loans from other banks either, including the SID bank.”

Automotive industry

Automotive industry

Financial Subventions for Revoz

Dutch Lease of TVM Annulled

The Slovenian government has approved EUR 45.5m in financial incentives to Revoz. The financial support to Renault’s Slovenian subsidiary will support the manufacture of a new Twingo and a four-seater Smart car from the so-called Edison range, which is part of the partnership between Renault-Nissan and Daimler. Production of the new models at Revoz is scheduled to start at the end of 2013, with plans to manufacture around 194,000 new vehicles in 2014 alone. Production of the models will last at least until the end of 2019. The total value of the investment project is estimated at EUR 326m. The proposed state aid will have to be approved by the European Commission.

The receiver at Maribor-based bus maker TVM has annulled a lease contract with an electric vehicle manufacturer. Dutch company DuraCar had been regarded as the savior of TVM, which has been undergoing receivership since March.

But receiver Alja Markovič Čas has revealed that the firm has failed to invest a single Euro in TVM, and has not event paid the expected EUR 1m for rent, collateral and purchased inventories. The lease contract, which was signed in August, had stipulated that DuraCar would hire at least 70 employees, mostly TVM’s former workers. Markovič Čas says there is still interest in TVM on the market but has refused to disclose any details.

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

Hungarian energy group MOL has announced plans to increase its share on Slovenia’s market from the current 7.2 percent to 10 percent as soon as possible.

The group, which in May acquired Engrotus’ fuel retail network, is to invest some EUR 10m with a view to meeting the goal. It will open at least five new petrol stations in the area of Ljubljana and the Gorenjsko region, where the firm currently does not have any petrol stations.

It hopes to reach the 10 percent market share by the end of 2012 at the latest. MOL currently operates 37 petrol stations in Slovenia.

Terme Maribor has potential buyers according to unofficial information reported in newspaper Delo. The daily suggests that businessman Bojan Podržaj and London-based Russian investment fund Venture Investments & Yield Management (VIYM) would put up EUR 30m for the majority stake in the spa. It is reported that the potential investors are undertaking an overview of the spa’s accounts. NFD Holding and Sava, who have been attempting to sell their 87 percent stake in the spa for some time, last month revealed they had signed a nonbinding offer with the investors for the buyout of their shares.

Manufacturing

Mura In Partnerji to Generate Profit in 2011 The chief executive of apparel maker Mura in Partnerji, the only subsidiary to survive the bankruptcy of former clothing giant Mura, says his company is set to make a profit this year. Milan Moerec has told daily newspaper Večer that the company will make a net profit of between EUR 500,000 and EUR 600,000 in 2011. In the first nine months of the year, the company generated nearly EUR 21.2m in revenues, exceeding 2010 revenues by EUR 1.7m.

The news was not completely positive, however. Turnover generated in Slovenia over the past nine months amounted to EUR 1.5m, which Moerec has described as unsatisfying. In August a Slovenian-British venture – AHA group – bought the bulk of the bankruptcy estate of Mura for EUR 9.65m.

Stock exchange

Wiener Boerse to Become Sole Owner of LJSE The CEESEG group, formerly the Wiener Boerse, has published a takeover bid for the shares of the Ljubljana Stock Exchange (LJSE) it does not already own. CEESEG, which currently holds 27,197 shares or 81.01 percent of the LJSE, is now after the remaining 6,374 shares and is offering EUR 1,401 per share. According to the takeover bid, published in the daily Delo, CEESEG acquired the permit for the acquisition from the Securities Market Agency (ATVP) in 2008. CEESEG acquired the majority stake in the LJSE on 16 October 2008, based on a contract made on 24 June 2008 with the majority of the then LJSE shareholders. The ATVP then decided on 6 December 2008 to suspend the voting rights of the Vienna Stock Exchange until it published a bid to take over the remaining shares or reduce its stake to below the takeover threshold.

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 December 2011

18 FOREIGN DIRECT INVESTMENT

Investment overview

Positive signs It looks the same, smells the same and tastes the same but there is something different about Slovenian fruit drink Fructal. The beverage came into Serbian hands this year as competitor Nectar bought the fruit juice company for EUR 35 million. The takeover is one of the most striking foreign investments in Slovenia this year. After a decline in foreign direct investment (FDI) in 2009, 2010 saw an upward trend which it is hoped has continued this year. There are some positive signs but confirmation won’t come for a while yet – official statistics about FDI in 2011 aren’t expected before autumn next year.

By Mark Koghee

For sale: a public tender for the sale of Adria Airways is expected in March next year

W

h atever t he f ig u re s show, entrepreneurs, scientists and diplomats remain concerned that Slovenia lags behind when it comes to FDI. The common refrain, oft-repeated, is that the country needs to open up more towards foreign investments. Biljana Weber, head of Microsoft Slovenia, warned last May that foreign investment in the country was at “an extremely low level”. Five months later his opinion has not changed: “Unfortunately, there were no substantial steps forward in attracting FDI in this year.”

Good examples

Weber is not entirely downbeat, however: “It is encouraging to see increased openness to FDI among all stakeholders and increased awareness that effective measures to encourage FDI are now really necessary.” And he also sees progress when it comes to public opinion: “Even the Slovenian public, which has been relatively averse to FDI, is more accepting of the need of such investments to ensure sufficient economic growth in the future. This awareness represents a good foundation for moving forward.”

The ministry of the economy and the Public Agency for EnThe Slovenia Times

trepreneurship and Foreign Investments (JAPTI) both say they are making efforts to build on that foundation. “Together with JAPTI we are pursuing an active policy of promoting and attracting FDI,” says Suzana Zagorc of the ministry of the economy. And Lidija Vinkovič of JAPTI asserts that the agency “has significantly and positively influenced the growth of FDI in Slovenia with its promotional activities, services for investors and with financial incentives.”

Boost for grants

JAPTI reached the end of the EUR 8m allocated to its FDI costsharing scheme this year sooner than expected. But the agency was able to support 17 projects from foreign investors. “All together these projects have an investment value of EUR 44.6m and they will create 673 new jobs,” says Vinkovič. Next year the agency wants to give the scheme a boost to EUR 14m, a substantial increase both on this year and on 2010, when there was EUR 6m available for grants.

JAPTI only supports investments valued at under EUR 50m.

Larger investors are handled by the ministry of the economy, like the EUR 45.5m incentive recent-

ly granted to Novo Mesto-based Revoz. The car maker, a subsidiary of French giant Renault, will use the grant for the innovative Edison project that will result in the production of new generations of the Twingo, Daimler Smart, and electric cars. The entire value of the investment is estimated at EUR 326 and as many as 162 new jobs are to be created.

High technology

Innovation, growth and employment are also key words at Julon. With facilities in Ajdovščina and Ljublana this company recycles waste into synthetic fibres.

The EUR 3.6m grant it received last year has helped it continue its progress and it is one of the FDI success stories in Slovenia, winning a FDI award this year.

Zagorc says the country will continue its efforts to attract investors in sectors with high technology: “They are an important factor in increasing competitiveness and productivity and they contribute to the transfer of knowledge and technologies, efficient resource allocation, balanced regional development and the inclusion of Slovenian enterprises in the supply networks of transnational enterprises,” she argues.

Vinkovič adds there has been an interesting change in the type of FDI investment now seen in Slovenia: “We have seen a shift from investments predominantly in manufacturing to investments in research and development projects. Today they account for 33 percent of all FDI projects.”

In the pipeline

Several major foreign investments are in the pipeline. Brewer Pivovarna Laško, along with a consortium of banks, is selling a majority share in Mercator and it looks likely that the purchaser will come from abroad. There are ongoing negotiations with two investors that submitted binding bids for a minority share and capital increase in sporting goods manufacturer Elan. For the sale of paper manufacturer and graphic company Aero, investors submitted non-binding bids and they are to perform due diligence. The sale of Fotona, a leading developer of laser systems, is in the same state.

And it is expected that in March a public tender will begin for the sale of Adria Airways – if the sale goes ahead, it will very likely represent a new foreign investment and perhaps a sign that FDI really is moving forward in Slovenia.

FOREIGN DIRECT INVESTMENT 19

Retail

Setting the Terms The twists and turns in the sale of the majority share of Mercator to its rival Agrokor are taking the shape of a soap opera. As expected, everybody wants to have a say on how the sale proceeds, not least the Mercator management board which, in a surprise move, recently withdrew its support for the sale. The board is now demanding further assurances that international financial institutions will participate in the future management of the company.

By Mateja Novak and STA

Firm assurances

In fact, there have been some assurances that the EBRD, IFC and One Equity Partners will finance the takeover and be involved in the management of Mercator after the deal is completed. But the management board is concerned the institutions have not taken any binding decisions to be involved in the next stage of the transaction. Since the management believes that Agrokor as the sole buyer cannot “vouch for financial stability after the transaction”, it is proposing three possible alternative approaches.

One is getting a formal guarantee by EBRD or IFC of their direct, immediate involvement in negotiations to reach an agreement aimed at protecting the interests of Mercator. The second alternative is that all the parties wait until Agrokor carries out a limited due diligence on the basis of additional information published by Mercator. The EBRD and/or IFC would then be directly included in the negotiations on the protec-

tion of Mercator’s interests and the conclusion of appropriate agreements. If the European Bank for Reconstruction and Development and the International Financial Corporation decline such involvement, the management proposes that the agreement aimed at protecting Mercator’s interests be signed by at least one reputable and solid financial institution, for example a bank which is currently an important shareholder of Mercator and wants to sell its stake.

Photo: BOBO

M

ercator wants an agreement with the consortium of banks and beverage group Laško that are selling their combined 52 percent stake in the retailer, as well as an agreement with the prospective buyer, Croatian food and retail group Agrokor backed by the European Bank for Reconstruction and Development (EBRD), the International Financial Corporation (IFC) and One Equity Partners. Stressing that Agrokor is its biggest rival in the region, Mercator wrote in a press release that the signing of the two agreements was a condition for Mercator’s support to the sale, which is still in the negotiations phase.

The result is that discussions with Agrokor are now frozen. The management of Mercator is insisting will not back the sale of a majority stake to the Croatian firm and is not willing to fully open its books unless it obtains a guarantee that the EBRD and IFC will be involved in the deal.

Alternatives

It is, as always when it comes to the sale of Mercator, a confusing and controversial situation.

While most politicians are trying to stay out of the matter, some are still very vocal in opposing the sale of Slovenia’s retail giant to its Croatian competitor. The outgoing minister of agriculture, Dejan Židan, is not tiring of his persistent warnings that the planned takeover would have serious consequences for the Slovenian food and drinks industry. The trade union of retail workers has also supported the management of Mercator in its opposition to the sale, voicing concern about a loss of jobs, and the future of the company and Slovenian food industry. The union has now gone as far as to announce industrial action against the NLB bank, which has said it plans to carry on with the sale of its 10 percent stake in Mercator.

Media outlets are showing no fear when it comes to wading into the debate. While daily Dnevnik supports the management’s decision, Finance argues the board is doing everything within its power to sabotage the sale. The paper believes the deal would in fact be beneficial for Slovenia’s food and drink manufacturers, forcing them to become more competitive and to lower what Finance calls their “extortionate” prices.

Yet a report in the business daily suggests that those in power at Mercator are busy hatching an alternative plan. Finance understands that the idea has been

floated of the state-run KAD fund buying up to a 25 percent stake in the grocer. The money would come from the budgetary funds initially earmarked for subscription for fresh shares to the NLB bank. Based on Agrokor’s nonbinding bid, Finance estimates that KAD would need up to EUR 208m to buy the stake, while EUR 243.4m is available in the budget item. KAD sold its stake in Mercator in 2005 to Istrabenz, which has since declared insolvency and been subject to court-mandated debt restructuring. KAD and Agrokor have refused to comment on the speculation, but Finance cites sources close to the Croatian company in saying that Agrokor has already received an invitation for a meeting with KAD. The three-week sales negotiations between Mercator and Agrokor were due to finish by 2 December. And yet the soap opera rolls on with no end currently in sight.

It is, as always when it comes to the sale of Mercator, a confusing and controversial situation.

While most politicians are trying to stay out of the matter, some are still very vocal in opposing the sale of Slovenia’s retail giant to its Croatian competitor.

December 2011

20 FOREIGN DIRECT INVESTMENT

Interview: Christof Droste, managing director, Hella Saturnus Slovenija

A Question of Speed Car lights manufacturer Hella Saturnus Slovenija has been registering remarkable results in the last three years but the company is not resting on its laurels. Quite the opposite, in fact – it is currently embarking on ambitious plans which it believes will keep it ahead of the competition. According to managing director, Christof Droste, the guiding motto of the Hella Saturnus Slovenija could be the words of retired racing driver Mario Andretti: “If everything’s under control, you’re going too slow.” but the next months are going to be different so I expect to run the next year on budget. At the moment a realistic expectation is to finish three to five percent over budget.

Success takes a whole team. We improved a lot of our processes to enable us to use our resources more efficiently and it was the ambitious approach of every member of our staff that made it possible, and the company made a nice profit out of it.

The Slovenia Times

You made a bit of history this year, becoming the first foreign manager to be named as Slovenia’s Manager of the Year. How does that make you feel?

It makes me feel proud. I was extremely confident about the company and the team, but nevertheless I didn’t expect to be chosen because I’m foreign and thought a Slovene would win. I was very surprised. [That said] I’m committed to this country... even though I still don’t speak Slovene!

It’s been quite a year both for you and for the company you manage: increased revenues and profits, the Manager of the Year award, the 90th anniversary of Hella Saturnus existence. How do you plan to top that next year?

Very difficult. At the moment the global economic situation is at a high point, so we’ll need to con-

solidate a bit next year. I’m sure the business will go down a bit next year. However, I’m also sure we’ll do a great job. I think all of us should do that.

The revenue of Hella Saturnus has almost doubled since 2008 – from EUR 134.6m in 2008 to EUR 253.5m in 2010. In addition, last year the profit of the company amounted to EUR 16.8m, an increase from the year before by half.

Are these results in line with expectations?

We’re very satisfied. The results last year, both revenues and profits, are above expectations. It was a tricky task for the whole team to put the growth into profit. Having a steep growth like that, you can easily fail and make negative profit.

So far if you take our complete budget it’s exceeding expectations

What are the main reasons for the company’s growth – new markets, new clients, new products?

Firstly, it is based on the good job we have done in the preceding years: we convinced our customers and we convinced our mother company that we are in the right location. That is why we got new projects. Secondly, the small car business increased during the crisis. This is the reason for the growth in quantity.

Success takes a whole team. We improved a lot of our processes to enable us to use our resources more efficiently and it was the ambitious approach of every member of our staff that made it possible, and the company made a nice profit out of it. Looking at the first six months this year, percentagewise we are the most profitable Hella lighting company in Europe. And this includes competing against countries where the hourly labour rate is much lower than in Slovenia.

The average company in Slovenia’s automotive industry invests five percent of its turnover in development and 12 percent in new technologies. On the other hand, Slovenia’s government invested just 2.1 percent of gross domestic product in research and development in 2010. What is your view on that?

Whether you’re investing 2.1 percent or more, it is not necessarily indicating that you are investing in innovation. You’re investing into research or into development.

What I mean by innovation is real innovation: we have to be different from others. We have to think like our customers, think about what they need even if they don’t know it themselves right now. We have to have a vision and be different in products, processes and

FOREIGN DIRECT INVESTMENT 21 in services. That is innovation. As most of us are in the commodities industry it’s not easy to be different in products.

Is it enough to have an innovative product to be ahead of the competition?

No. If you have a very nice product but you are not reacting to your customer’s wishes or complaints, he will not be choosing you the next time. Customers want business to be smooth. The smoother it is, the fewer problems he has with your product, the more often you’re chosen.

Competition has become much stiffer since the crisis. How do you cope with it?

Well, the best thing is not to complain about how hard the situation is but to simply deal with it. We are feeling that the price pressure is increasing. There is an overcapacity in the market and customers are taking advantage of it. We are recognising that if we thought something was our advantage in the past, our competitors today are not sleeping and are catching up with our pace.

This shows us that we should not reduce our speed, quite the opposite. We can never be relaxed and rely on old innovations. We need to be a step ahead of our competitors. The tougher the crisis, the faster the competitors react. Pressure is increasing. It’s a question of speed.

What are the current trends in car lights technology and what are the expectations for the future?

LEDs will happen in the future.

We didn’t expect that, but the demand for LED technologies is increasing so fast, it is unbelievable.

It is also giving us a nice chance.

This is the only field in automotive lighting where there’s a lack of development capacity. We have a good chance to be more efficient and faster than the others in this area.

Hella Saturnus has invested EUR 85m in research and development since 2008 and you plan another EUR 60m in the next five

Opel Insignia

a vision, a short and clear strategy is what is needed. Everybody should take the risk, be committed to a chosen direction. What is important is to have a dialogue – we are dependent on politics, they are dependent on the industry and we have to work together.

Hella Saturnus Slovenia factory

years. What will be the focus of your future investment?

That slightly depends on how Slovenia sees us. If we invest that money here, we will invest a certain part in new technologies in this location. We have a chance to invest in a new lacquering plant inside this plant for inner lacquering of lenses. Traditionally the plastic lenses of head lamps and fog lamps have been outside lacquered. This is a hard coating which protects the lens against scratches – you have to do this otherwise the lenses glare other drivers.

What the coating also does is offers UV protection – the material of the lenses is polycarbonate which is very sensitive to ultra violet light, it becomes yellowish with time. Another problem is with head lights is that you will never be able to develop a fully tight system. A head lamp system is always a breathing system. As the system breathes, you get humidity inside the head lamp and, in certain circumstances, you get condensation on the lens. This is certainly not appreciated by us, our clients or by the end user.

Inner lacquering prevents many of these problems. It helps absorb the moisture, and breathes it out again. This can be repeated for a number of times. This will be the first plant inside of Hella group having this kind of lacquering plant. This technology is very much requested by General Motors.

That is one focus and there are also going to be many new devel-

opments in LED technology. Inside the Hella group we are the competence centre for fog lamps and auxiliary lamps, we are a competence centre for sports car projects, we are just starting to build a competence centre for single function lamps from January next year. That’s brand new. Because of our performance in the last few years we were chosen for that competence centre.

What do you expect from the new government both in terms of your company and in general?

I expect that the new government will immediately start working to secure the country and its people.

In terms of the company, I hope that the negotiations we started with the old government on financial support for investments will be accelerated. I expect to get a commitment very soon from the government, and recognition that we’re an important company for Slovenia. We created 1,000 working places without any incentives, but now we need to keep them.

That’s a lot of working places. At the moment the situation is relaxed which it’s not a nice signal but I understand that the political situation is frozen. I have high expectations from January to start discussion again and to get commitment.

More generally when it comes to business, I have very simple recommendations for the new government: let’s stop discussing and start working. A master plan,

Hella Saturnus currently has a 12 percent global market share of additional car lights and fog lights and a 2.4 percent share in automotive headlights market. Do you plan to increase this?

During the last financial year, we sold 8.5m fog lamps, in this financial year we will increase this to 10m. Worldwide we’re working intensively on expanding the Hella group market share on head lamps but with the quantity we have here in Slovenia, we are very much satisfied.

What do you see as the main challenges in your business for the future?

Just recently I was listening to a presentation on the “Cradle to Cradle” concept. This is a new concept which envisages bringing our resources in a loop. We’re exhausting our resources and we should slow down, get them in a loop. We don’t have endless resources. We have to use what is there, and we have to use it again and again. The challenge is how to do that.

We’re focusing on recycling materials, which is also cheaper. It is a nice business for us – taking care of the environment and making more profit. It’s an ideal situation.

So this is one challenge – the environment. The other is to stay at the same speed which is not so easy. We need to keep the company fresh-minded. This is a continuous challenge for the future for all businesses, and also in politics. And a task for all of us in Europe it is to keep Europe strong. We need to keep our region strong and be able to compete equally. If we’re not able to keep Europe together, we’re not strong and we’re not able to face global competition. That would be the worst-case scenario.

VW golf December 2011

22 FOREIGN DIRECT INVESTMENT

Interview: Thierry Villard, managing director, Goodyear Dunlop Sava Tires

A Good Year It has been a good year for Goodyear Dunlop Sava Tires. The firm – which produces tyres and sells them to Slovenia, ex-Yugoslavia, and Eastern Europe – recently won a special prize at the FDI awards having increased both revenues and profit. Its proactive approach during the economic crisis saw it weather the storm and come out the other side stronger than ever. Managing director Thierry Villard is confident that 2012 will hold similar success, not least due to significant investments in new areas of business.

By Maja Dragović budget brands. There is an issue of company recognition: we wanted to reinforce that element in the minds of end users, associates and customers.

It is too early to know the outcome of the name change. But the good thing is that all the media are actually using the full name. It went very quickly. Another good thing is that we have had very positive feedback from the associates on the change – they report a sense of pride and belonging.

What segments of business are driving sales at Goodyear Dunlop Sava Tires?

At the FDI awards I gave a speech and made a joke – “winter was coming”. The biggest change is winter in that winter tyres are getting more and more important.

Slovenia is very advanced compared to other European markets when it comes to winter tyres. But this year in Romania, Serbia and the Czech Republic they decided to implement rules similar to those in Slovenia and this has given the industry a real boost. And now that more and more people are concerned about safety on the road, more and more people buy more and more winter tyres.

The winter segment in Central & South-East Europe has increased; it now presents over half of our business. We also see categories like ultra high performance tyres growing.

Sava Tires changed its name to Goodyear Dunlop Sava Tires on 1 July 2011. What was the reason behind the change and what impact, if any, has there been?

There were a couple of reasons for changing it. One was to ensure the Goodyear Dunlop organisation in Europe was harmonised when it came to naming. Slovenia was an exception The Slovenia Times

in not having Goodyear Dunlop in its name. The second reason was that our previous company name wasn’t reflecting the reality.

We now mainly produce and sell Goodyear and Dunlop brands, not only Sava tyres. But because of our name, Sava Tires, many people didn’t realise that we are a company with a complete portfolio of premium brands, value brands,

In what geographic areas does the Goodyear group operate?

We have four regions: North and Latin America; Europe, Middle East and Africa (EMEA) and Asia Pacific. Asia is booming – specifically China, Vietnam, Thailand.

Latin America is also growing.

And EMEA has always been a significant contributor to Goodyear.

Overall the Goodyear group registered a 22 percent increase in sales ($6.1 billion) in the third quarter of 2011 compared to the same period in 2010. What are the reasons behind the improvement in sales?

FOREIGN DIRECT INVESTMENT 23 Two things. First of all the nature of the comparison. The tyre industry was very affected by the crisis at the end of 2008 and in 2009. Although in 2010 we had entered the recovery phase, it is still a time when sales weren’t at their strongest. That said, looking at the Goodyear global third quarter results for 2011 there was a record in terms of sales – the results were outstanding; the best third quarter we’ve ever had.

The reason for that is that the market has now finally recovered fully but also our strategy of focusing on targeted segments.

Right now there is very positive momentum.

Did the company have to adjust its business model to cope with the crisis?

If I really look at what happened in pre-crisis and post-crisis times, there are two aspects: the manufacturing part and the business part of it. If I look at the latter: we made a conscious decision that despite the crisis and our knowledge that business would go down, we would keep on investing. That was a bit dangerous because the car industry went down by 40 percent, and that of course had a direct impact on us. And we didn’t know when business would pick up.

Nonetheless, we steadily but not massively invested – increasing our investments in advertising, people... During the year and a half that finished mid 2010, our position on the market improved.

And then after the crisis we were much stronger than before.

On the manufacturing side we adjusted production. The original equipment market was down, but people still drove cars and bought tyres. The replacement market was not too bad, but we had to adjust production. We slightly adjusted arrangements with our contractors and made sure we were making the most out of our workforce. That means that we now operate 355 days a year, 24 hours a day.

How important is Goodyear Dunlop Tires Central & SouthEast Europe, to which Goodyear Dunlop Sava Tires belongs, within the whole group and why?

When it comes to the dimension of Europe, Middle East and Africa, we are one of the group’s top three contributors in Europe.

In our part of the world we still enjoy business growth. Our geographic position is such that we can learn from the rest of Europe.

Here we’re a complex mosaic of 13 countries. Slovenia is the home base – 13 different countries, cultures, origins but part of the same community.

Altogether, Goodyear has invested over EUR 180m into Goodyear Dunlop Sava Tires over the 13 years of its presence in Slovenia.

What would you say are the biggest returns on this investment?

We have practically doubled our productivity in that time – if we used to produce 3.7 million tyres per year, we now produce 7.5 million tyres a year. We are now producing more high quality tyres than 10 years ago.

These investments have also really changed the products that are produced here. It used to be small tyres for small cars, more budget brands. But now we have moved to to high performance and ultra high performance tyres, truck tyres – growth areas.

We also improved safety at work and our environment friendliness. We don’t use solvents in the production of tires any more. By managing waste, we have reduced the amount of waste by 85 percent since 1998. We have also decreased the rate of work accidents by 95 percent since 1998. And it all comes down to successful and constant campaigns.

In 2012, Goodyear Dunlop Sava Tires is to invest EUR 6m in the production of retreaded truck tires. What are the reasons for this?

Basically, we believe that retreaded truck tyres are very important in the overall portfolio of our products. Increasingly the truck business is moving towards fleets – they expect us to provide tyres and also solutions and services, they’re relying on us to manage tyres.

Retreading is basically prolonging the life of a tire. The quality and the performance are the same, whereas costs are optimized. The investment in new equipment and new truck tire retread capacity in Slovenia is part of the company’s growth strategy. In recent years, Goodyear Dunlop has steadily expanded its mold cure product portfolio. These products are manufactured in Wittlich (Germany), Wolverhampton (UK), Riom (France) and from 2012 also in Goodyear Dunlop Sava Tires.

The decision to invest in Slovenia was helped by the fact that the factory here is very reputable in the Goodyear group.

The expansion means that by 2015, 70 new jobs should be created. Once we’re up to full speed there should 70 people working full-time, 100,000 tyres per year.

How do you expect your industry to develop in the future?

What are the biggest challenges?

A game changer is the introduction of labelling of tyres. From November next year there will be a new regulation on this – each

GOODYEAR EfficientGrip SUV EfficientGrip SUV offers Fuel Saving Technology without compromise on performance.

Appropriate for drivers who enjoy all the benefits that the bigger, sporty vehicle offers but are still concerned about safety, fuel costs and the environment.

DUNLOP SportMaxx RT Best performances in the market endorsed

by Tüv. High speed braking and grip are the two key benefits.

new tyre will have to have a label which will give it a rating. Three criteria will be measured – the wet grip (safety), rolling resistance (fuel efficiency) and noise.

So we have 270 test drivers in Luxembourg testing all our tyres to judge our ratings. Testing process is strictly formalised, but each company will be doing its own testing which, of course, will be audited from outside.

The effects of the introduction of labelling will be interesting to see – it’s difficult to predict the consequences. I’m confident to say we have very good performance, but it’ll be interesting to see whether labelling changes the choices customers make. Maybe they’ll change from budget segment to premium segment, for example. Even the specialised media will have to incorporate these elements into their tests.

That’s not just a challenge but a game changer.

What are Goodyear Dunlop Sava Tires’ plans and projects for 2012?

Retreading truck tires is one, there will be an official opening in April. Then, as usual, there are plenty of new products. We also have lots of work to do preparing for the introduction of labelling – explaining the new regulations to both associates and clients, for instance.

The winter segment in Central & South-East Europe has increased; it now presents over half of our business.

By managing waste, we have reduced the amount of waste by 85 percent since 1998. We have also decreased the rate of work accidents by 95 percent since 1998.

December 2011

24 DIPLOMATIC SOCIETY

EMBASSY DIARIES US embassy

Spanish embassy

Holiday Lights Lighting

Award for Branka Kalenič Ramšak

The US embassy in Ljubljana organised a public holiday lights lighting on front of their headquarters at Prešernova 31. The event took place on 28 November and it was a colourful photo opportunity; the embassy also provided delicious hot drinks for the visitors.

During celebrations marking the 30th anniversary of the establishment of the Spanish departments at the Faculty of Arts in Ljubljana, the Spanish embassy awarded the Order of Isabella the Catholic to Professor Branka Kalenič Ramšak. The head of the literature department was recognised for exceptional work and her contribution in making the Spanish language and culture more present in Slovenia. The Order is given to Spaniards and other people who have significantly contributed to friendly links and collaborations between Spain and the rest of the international community. The ceremony took place at the residency of the embassy of Spain.

Hungarian embassy

Spanish embassy

US embassy

A Novel Concept

27th Gay and Lesbian Film Festival Opening

Elliott Carter on the 13th Slowind Festival

The Hungarian embassy in collaboration with the Attila József cultural society presented the new novel bya writer, historian and MP Lászlo Gönc, entitled “Calvary”.

The Hungarian ambassador István Szent-Iványi welcomed the author who is an important representative of the Hungarian community in Prekmurje. He pointed out that the publication of the book is very important and that it is not only a proof that the Hungarian literature of Prekmurje has come of age but that its author is a talented storyteller. The event was attended by literature-loving Hungarians living there who were able to talk to the author who also signed books.

The Spanish embassy took part in the 27th Gay and Lesbian Film Festival in Ljubljana with the Basque film “80 Days” opening the festival on 26 November in Slovenska kinoteka. The drama was directed by Jon Garana and José Maria Goenage and it has already been screened at numerous international film festivals, among them Karlovy Vary, Montreal, San Sebastián, London and Cairo.

AmCham Business Breakfast

Save the dates for January 13, 2012 at 8.00 am

Our guest speakers will include some of the 12 greatest Slovenian business leaders chosen by the AmCham Young Professionals and the AmCham Leadership and Talent Development Committee.

The 12 TOP Business Leaders are Igor Akrapovič, dr. France Arhar, Ivo Boscarol, Jože Colarič, Sandi Češko, Tatjana Fink, Jože Mermal, Joc Pečečnik, Matej Potokar, Danica Purg, Enzo Smrekar and Dejan Turk.

The Slovenia Times

The US Embassy and Slowind Ensemble organised the 13th Slowind festival at the Slovene Philharmonic, Cankarjev dom and Faculty of Arts Ljubljana. The festival extensively presented music of the exceptional American composer Elliott Carter, one of the most highly regarded composers today. Slowind paved the way to an understanding of the music of this vital and still active 102-year-old with the help of explanations by the composer himself and by musicologist John Link, conductor and flutist Robert Aitken, and pianist Ursula Oppens. In addition to the performances at four Slowind concerts, a choral concert and two orchestral concerts tokok place.

Frank Scheffer’s film “The Labyrinth of Time” was also shown, a picturesque presentation of Carter and his music. A major innovation this year was that the programme of the Slowind Festival also included the Slovenian Chamber Choir and the Slovenian Philharmonic Orchestra; the former presenting Carter’s early vocal works and the latter his recent orchestral compositions.

Spanish embassy

MACBA Exhibition American Chamber of Commerce – AmCham Slovenia wishes you Merry Christmas and a Happy New Year.

An exhibition from MACBA (Barcelona Museum of Contemporary Art opened at Ljubljana’s Museum of Contemporary Art Metelkova at the end of November. With the support of the Spanish embassy to Slovenia, MACBA will exhibit pieces from its collection together with three important European museums of contemporary art – Modern Gallery from Ljubljana, Van Abbermuseum from Eindhoven and Van Hedenaagse Kunst from Antwerpen. The exhibition, which will be open until 29 January, is part of the Internacionala project which questions the established canon of art history and replaces it with transnational, pluralistic cultural narratives and approaches. At the opening the Spanish ambassador was represented by her deputy Sergi Farre who is also responsible for cultural matters.

DIPLOMATIC SOCIETY 25 Bulgarian embassy

Indian embassy

A Symposium at Cankarjev dom

Rabindranath Tagore Bust Unveiled in Maribor

The Bulgarian embassy organised a symposium dedicated to the Bulgarian poet Elisaveta Bagrjana.

The event was held at the beginning of November at Cankarjev dom. The Bulgarian poet is one of the most renowned names in European 20th century poetry and was shortlisted for the Nobel Prize for literature between 1969 and 1971. This prominent modernism representative of the interwar period was often referred to as “la Belle Dame of the Belle Époque of the Southern Slavs”. At the symposium newly discovered facts and documents about Bagryana’s devotion to Slovenia, her visits to Ljubljana, and her encounters with some of the greatest names of Slovene culture were presented by both Bulgarian and Slovene scholars. Also on show were photographs and a book dedicated to the “Slovenian period” in her life and poetry. The guests were welcomed by prominent guests including Philip Bokov, Ambassador of the Republic of Bulgaria and Milan Jesih, Chairman of the Association of Slovenian Writers. The “Bagrjana and Slovenia” project was realised by the Bulgarian Embassy in cooperation with the Študentska založba publishing house. An exhibition of books by Bulgarian and Slovenian authors in both languages accompanied the event.

Spanish embassy

Estrella Morente Concert Photo: Maja Bjelica

The Spanish embassy in collaboration with Cankarjev dom and Druga godba organised a concert by Estrella Morente, the most popular flamenco singer of the new generation. The singer with a crystal voice mixes the old influences of her native Granada with the latest flamenco trends and has been named the best singer in the genre. She reached world fame by “lending” her voice to Penélope Cruz in the film “Volver” in which she sang the eponymous song. The concert drew many prominent guests, among them the Slovenian president Danilo Türk with his wife and the minister for foreign affairs Samuel Žbogar and his wife. A discussion workshop entitled “The role of flamenco in the context of the European cultural heritage” accompanied the event. Ana Pandur Predin talked about the phenomenon of flamenco singing and also interviewed Estrella Morente about her career.

A bust of acclaimed Indian poet, philosopher and first Asian winner of the Literature Nobel Prize Rabindranath Tagore was unveiled at a ceremony in Maribor. The statue is a gift from the Indian Embassy in Slovenia. Other such statues have also been unveiled in several other European cities at the occasion of the 150th anniversary of Tagore’s birth. At the Maribor ceremony, Indian Ambassador to Slovenia Jayakar Jerome said that Tagore was an important historical personality for India and that the embassy chose Maribor in order to honour a beautiful city with friendly people. Maribor Deputy Mayor Tomaž Kancler then emphasised the important symbolic value of the statue, which testifies to the cultural development of Maribor, the 2012 European Capital of Culture.

UK embassy

Business Breakfast Round Table The British Chamber of Commerce in Slovenia (BCCS), in cooperation with the British Embassy Ljubljana, organised a round table on UK anti-bribery legislation and how it affects Slovenian companies. The speaker at the event was Vivian Robinson who led the development of the UK Serious Fraud Office’s new anti-bribery policy. The event, held on 30 November at Hotel Slon in Ljubljana, was attended by prominent British people in Slovenia including UK ambassador to Slovenia Andrew Page, director of the British Council James Hampson, and BCCS President Kevin Morrison. There were also several public officials present at the round table, namely State Secretary at the Ministry of Justice Bojan Škrlec, Jana Bajec Povše from the Ministry of Foreign Affairs, Vice-President of the Anti-Corruption Commission Rok Praprotnik, Director of Japti Igor Plestenjak and many representatives of companies interested in the topic.

Hungarian embassy

Memorial in Ukanec

Germany Trade & Invest

The Hungarian consul Bíborka G.-Molnár attended a cereomy in Ukanc to honour the memory of soldiers who died during the First World War. She laid a wreath at the chapel next to the military cemetery. Wreaths were also laid by the Hungarian ministry of defence, Polish consulate, Russian military attaché and representatives of the Krajaczáros Alapítvány Institute. The ceremony was attended by many Hungarian guests. The honorary sponsor of the event was retired general colonel László Tömböl who gave a speech in which he stressed that it is only on such occasions that one can really feel how strongly the graves of heroes connect different nations.

Germany Trade & Invest combines the in-depth analysis of foreign markets with the extensive knowledge of Germany’s key industries and its investment and technology landscape. Supported by a network of 60 experts abroad and benefitting from a close cooperation with the German Chamber Network (AHKs), the economic development agency of the Federal Republic of Germany supports international trade with comprehensive, consistent and industry-specific market information. Utilising the combination of wide-ranging global expertise and an internationally competitive consulting and service profile for foreign investors, Germany Trade & Invest secures and creates jobs in Germany. The organisation places a special focus on the economic development promotion of the new federal states (eastern Germany) and Berlin.

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

December 2011

26 DIPLOMATIC SOCIETY

Dr Marianna Oravcová, Ambassador of the Slovak Republic to Slovenia

In Good Shape It is not just their names that make Slovakia and Slovenia alike. There’s also the similar size, history, culture, natural conditions and – most prominently – a common engagement in European politics and values. Dr Marianna Oravcová, Ambassador Extraordinary and Plenipotentiary of the Slovak Republic to the Republic of Slovenia, is happy to admit that since independence her country was looking up at Slovenia. But she says there’s at least one area in which the Slovak experience supersedes that of Slovenia: making it through structural reforms.

Photo: Maja Kaplan

By Jaka Terpinc

Apart from the many similarities our countries share by their nature, history and name, we have found ourselves in a similarly unpleasant political situation at nearly the same time: neither of the governments has lasted until the end of the regular term and both countries are facing snap elections. What has the situation been like in Slovakia?

The only similarity is the fact that both governments stepped down as a consequence of intercoalition crisis and that we both had a four-party coalition. In Slovenia the cause of the crisis was the lack of ambition to provide reforms. In Slovakia the reformatory period had already concluded by the end of the nineties; my country went almost through all reforms possible. The reason for the recent inter-coalition tension was a different approach to the European Financial The Slovenia Times

Stability Facility mechanisms.

Even so, all the coalition parties were still working together; this was unlike the gradual process of the Slovenian coalition dissolution.

Is there a common thing we have learned from our governmental crises?

Both countries have learned that it is necessary to struggle for economic stability, for a stable Euro; and that it is not an easy decision to stay in the “healthy core of Europe”. This was the lesson learnt and that’s why in the end the Slovakian government voted for the EFSF mechanism.

We are celebrating 20 years of the Visegrád group [the alliance of the Czech Republic, Hungary, Poland and Slovakia for the purposes of cooperation and furthering their European integration.] This is a group to which Slovenia feels.

What is your perspective on this cooperation?

We appreciate very much that Slovenia works together with this group, especially in support of European policies that are our common priority – such as enlargement but also some sectoral policies (i.e.transport). It would also be of interest to proceed together to the markets of former Yugoslavia countries, which are about to become EU members. Geopolitically, this is not only a necessity but the only natural thing.

How do you evaluate the current level of economic cooperation between the nations? Do you see much of the unexploited potential in this regard?

The Slovakia-Slovenia economic cooperation is in good shape – the only exception was in 2009 when the crisis culminated. After that, cooperation recovered, the result of 2010 confirm the revival and 2011 the turnout is about to reach its highest value ever more than EUR 600m. All the companies that see the potential in one or another country exploit it fully.

But nonetheless, we should strive to increase the share in the total trade. A very important role could be played by those companies that already are in the respective country and could promote their example in attracting other companies.

Is there a Slovakian economic stereotype of our country? Typical positive or negative experiences of companies trading between the two countries?

The experience in general is successful and satisfying. Entrepreneurs have discovered a similar environment, a language barrier that is not that big and the perfect command of English in Slovenia to be extremely helpful. We haven’t met many problems. The cooperation of middle-sized companies is based on a targeted search for partners, punctual at finding specialists. The approach goes in

small steps, with some caution – operating on the small and medium scale requires a constant and direct proof of being on the right path. I don’t want to claim everything runs smoothly, but I cannot think of any complaints from this segment of entrepreneurship.

Let’s take a look at the more pleasant sides of your term – culture obviously is one of them...

Definitely! Although in a time of crisis education and culture are the first victims. Nonetheless, the projects are visible: in the first place there is cooperation between Ljubljanska Drama and Slovak National Theatre, based on a project which comprises several theatres in Europe. I have witnessed very successful performances of classical pieces by Slovak Theatre in Ljubljana. I got the feeling that Slovenes really enjoy the way they were put on stage. This cooperation continues within Borštnikovo Srečanje festival with an extensive Slovak presentation. A great thing to mention is Alja Predan’s initiative to publish the translation of contemporary Slovak drama to the Slovene language under the title Slovaška drama. There were also some notable exhibitions on Slovak history, culture and monuments listed on UNESCO world cultural heritage list.

You have a degree in philosophy, unlike the majority of diplomats whose education is primarily political. How does that influence your perception of international diplomacy?

I went through political studies as well, but my philosophical background gives me a broader overview or ability to put things in context. Philosophy also teaches critical thinking, what is very important. It helps me to follow political events with certain critical reflection. I only sometimes have to be cautious how to articulate this criticism so as not to cause collateral damage!

Photo: Dreamstime

Santa’s Choice

December in Slovenia, in common with many other places around the globe, is a month of festive celebrations of the upcoming Christmas and New Year holidays. It is a time of hopes and wishes for a bright future and also an opportunity for strengthening friendship and business bonds through gift-giving.

By Polona Cimerman and Herman Kovačič Giving someone a present is a symbolical act and many ancient traditions lie behind it. The person who gives a gift does so for a number of reasons; usually these are love, care, admiration, respect or friendship.

Functional and made with love In December, Slovenians are paid a visit by three good men who bring joy and presents. The first one is St. Nicholas who opens the gift-giving season on

Monday the 6th. Children mostly get his presents, and they are usually small and simple, like dried fruit, biscuits, nuts and sweets. The naughty ones may be given a hazel rod to “make them aware” of their isbehaviour. On that day, the adults also prepare small gifts for one another.

For many Slovenians, the central gift-giving occasion in December is the family-oriented Christmas Day, and the presents are much less humble that

those given for St. Nicholas. In the era of socialism, the holiday was celebrated in the privacy of homes; later, it quickly became the focal point of the holiday season, together with the imported Santa Claus. Most people give presents to their family members and close friends, some of them also to colleagues at work. According to a small continued on page 28 December 2011

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Galerija Emporium continued from page 27

survey and internet forums, they usually buy practical things like gloves, scarves, socks and other clothes, cosmetics, special teas, food and household items. Sometimes they give books. Slovenians also try to listen to the subtle wishes of those whom they decide to give presents to. In general they spend around EUR 130 for gifts, which is mostly

the same amount of money as in previous years, but they admit that they sometimes exceed their planned sum.

Many make the gifts themselves; very popular and extremely appreciated are home-baked cookies and cakes, home-made liquors, handmade decorations, all packed in hand-made boxes with a personal note. One of the trends is socially beneficial gifts that are

A unique spa experience with Breza Club In Breza Club that rests on the tradition of 30 years, we aim at integrating knowledge, professionalism, warm individual approach and a beautiful private ambience.

Besides enjoying the saunas in a nice atmosphere, massages performed by a team of physiotherapists and individual workouts with personal trainers in a boutique fitness studio, one can freshen up in our relaxing jacuzzi or swimming pool. As a novelty of this year we are presenting individual pilates workout.

Workouts are lead by a renowned expert, dr. Petra Zaletel and a team of personal trainers.

We’d like to invite you to surprise your loyal customers, business partners or your closest ones in a bit of a different manner.

Indulge them with a Breza Club gift card of your choice that will assure a unique spa experience.

T.: 01 2319 713, E: info@savnabreza.com, W: www.savnabreza.com

liked to charity and/or are ecologically labelled.

Yet another chance for Slovenians to give something nice is the New Year’s Eve, for which the same trends apply as for Christmas. The good fellow who brings presents on that night is the Slavic variant of Santa called Grandfather Frost Most Slovenians give presents twice in December: for St. Nicholas’ Day and either Christmas or the New Year’s, while some exchange gifts on all three occasions.

Today one has many options when it comes to finding the right present, especially around Christmas and New Year when shops become flooded with all sorts of products.

All try to lure customers to open their wallets and take some products home – some start as early as November. In the seemingly omnipresent holiday consumer frenzy it is sometimes hard to keep one’s mind clear, not feel pressured by the flashy glitter that has been put out there to make us spend and still perceive gift-giving as a beautiful and special deed. But even if one manages this, it is still extremely difficult to find a gift that

The Place for Your December Celebrations Organise your December party and enjoy in our warm hospitality and great atmosphere at hotel Slon’s halls, which are available at no extra costs. Finger food, buffet or gala dinner menus start from 20€ per person. The unbeatable drinks are offer by a pair for a price of one. If you need a place for New Year’s Eve dinner, look no further. The menu is on hotel´s web page. www.hotelslon.com / sales@hotelslon.com +386 1 470 11 31

would be special, original, suitable and not too expensive at the same time despite the enormous selection of goods on offer.

From the business perspective December is of course a blissful month. Midas, which falls into the category of “better” boutiques, note increasing demand for perfumes and accessories, especially in terms of exclusive items they sell.

Petra Drašković of Galerija Emporium also reports that December is a peak month but far from the only one – in fashion stores, seasonal peaks are also seen in March and September.

As a high-end fashion store they aim for a personalised approach which takes more than just sales and special discounts. Galreija Emporium is particularly interesting, because their store is located in the very centre of Ljubljana, while the “other” Emporium store occupies a large hall in BTC centre at the outskirts. Admitting that shopping at BTC might be easier in terms of accessibility, their store at Prešeren Square comes with a different charm and is therefore opened on Sundays until 5pm, among to attract city wanderers.

It focuses on accessories for both genders, and also displays a set of unique designer clothes.

While true wine lovers engage in their favourite tipples throughout the year, it is inevitable that the dose is increased in December.

Mateja Štabuc of Vinag says that the sales of wine triple in December compared to the “worst” months.

The merry month especially shows more demand for expensive wines, including rare, predicate sorts, aromatic wines and – of course –sparkling ones. Štabuc says he does not like special offers: “We think our price is just! Instead of action sales, we opt for free tastings in shops and events – it’s a more thorough and fair approach to the customer.”

Mateja’s ideal choice of Chirstmas gift wines would be a historical Laški rizling 1966; the sparkling Brut of 1998 and Sauvignon 2010.

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Guys on Gifts Shopping is often considered a female business. To counter that stereotype we have asked men how they go about the process of shopping, and about their Christmas gift preferences.

I prefer general shopping in shopping centres because you can find various shops under one roof. This makes shopping more efficient – that’s probably a typical male attitude towards shopping! But now and then, especially at Christmas time, I really like to take some time for a “shopping tour”. I walk along in the city centre, feel the seasonal spirit and combine shopping with meeting people and having coffee-breaks. This gives me a relaxing time and I enjoy it very much. As gifts I do prefer something that has a certain relationship to the one who will receive it and of course a certain component of Slovenia.

Finding a special gift is always hard work, especially when you’re looking for something that is a perfect fit for a person. The pure value of money is nothing that counts for me, but the gifted one should feel that the present was chosen selectively.

However, the most authentic gift from Slovenia cannot be taken out of it: nothing can represent Slovenia better than the rich country itself!

Therefore I invite friends frequently to Slovenia as a gift, so that they can experience the lovely countryside, the rich culture, and the people. Then they can choose their specific gift from Slovenia for themselves.

Klemens Nowotny, Chairman of the Management Board and CEO, Raiffeisen Bank Gifts are something very important. Many people believe only in gifts made from materials. Those gifts are great, especially if they bear a real value, especially an artistic value.

But I usually try to give more importance to immaterial goods. Those goods are rarer and are nowadays missing everywhere. A nice gesture, an honest word, a friendly smile, a warm spark in the eyes… These gifts should be spread around us permanently in unlimited quantities, not only at the end of December but every single day of the year. Is this too naive, too idealistic?

No, it’s not! Those gifts are so nice and, believe me, not at all expensive!

Janez Pergar, Honorary Consul of the Republic of South Africa Most frequently my loved ones receive presents from my personal collection of creations and paintings. Diverse as my artistic communication is, I always tend to choose an artistic work which – in terms of colour, dimension and the concept – is close to the character and personality of the receiver. In this pre-season period people often visit my private gallery, where they can choose among a wide range of artworks. It is my belief that with a thorough and comprehensive analysis of the receiver’s taste and his preferences, we can easily find out what is the most appropriate present for him or her. Apart from a selection of recognised paintings, authentic Slovenian presents can also be the books of contemporary Slovenian writers or DVDs of Slovenian composers and performers. As far as handicrafts I am in favour of Idrija lace. Basically whatever is declared as high quality, special and unique and is the result of the Slovenian creative spirit.

Gašper Jemec, visual artist

100 95 75

25 5 0

Slo Times 101x292mm 15. november 2011 9:58:24

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Column: Hannah Mancini

Eco Fashion Makes Sense

Most have certainly realized by now that being good to the planet has actually become fashionable. Global society as a whole has bid farewell to an era of vapid consumerism and entered upon a time of more conscious decisions towards sustainable living in every aspect of our lives… so why not in fashion?

Eco chic people everywhere know that getting more creative and resourceful is the key to flourishing in these more responsible times.

One way to be both green and fashion forward is to take advantage of the reusable fashion trend. After living in Los Angeles for 10 years, I have enjoyed vintage and second hand culture and it’s huge popularity, there, for some time. Utilizing these clothing resources is not only a great way to attain unique and individual style but is also responsible. Now the trend is creatively diversifying and growing more and more locally, as well.

“Eco fashion sustainability” is the vision of Marina Bučar, the fashion- loving entrepreneur who started 2nd Chance, a popular high-end clothing resale business located in Ljubljana.

Marina started several years ago from her

home, with fashion parties for her friends.

These popular evenings attracted more and more people each time and Marina knew that developing a business from this concept was simply common sense. Marina, who studied business economics and has 9 years of marketing experience with different world-wide advertising agencies, loves the positive energy in what she does, explaining, “developing the 2nd Chance brand was a win/win concept; my suppliers get paid for the clothes they are not wearing anymore and my customers are more than happy to be able to get a good deal for quality designer clothes.” 2nd Chance sells brands like Marc Jacobs, Prada, Sonia Rykiel and Missoni for a fraction of the original price.

Marina says she is satisfied with her progress thus far also noting that the global financial situation nowadays gives extra value added to the brand.

And what about raising more accountable children, as well? Maja Raspopovič is on it.

The former model and owner of Model Group developed Little Elephant, a gently used children’s clothing business that grew out of her experience as a fashion enthusiast and mother of two. Maja states, “I have to agree with my friends that there are very few shops in Slovenia where you can purchase top fashion children’s clothing at a reasonable price.” As a result she launched Little Elephant, where one can find high-quality 2nd hand children’s clothing, shoes and accessories for girls and boys at a deep discounts from retail. As a mother of a 5 year old myself, the idea makes perfect sense. If you have children, you know that many times for a variety of reasons, you don’t make full use out of all of their clothing, and that good quality children’s clothing has become increasingly expensive. Maja is

Marina Bučar and Maja Raspopović (Photo: Zaklop) The Slovenia Times

proud to be able to offer the opportunity to “both dress your little ones fashionably at a reasonable price and sell the clothing your children have outgrown”. As she puts it simply, “it is the sensible choice”. Both Marina and Maja are joining forces and opening a 2nd Chance & Little Elephant POP UP store on Gosposvetka now in December. They are excited to be offering Christmas styling, make up, drinks and a top notch fashion athmosphere and deals for their customers, all in time for the holidays.

While businesses like 2nd Chance and Little Elephant recycle clothing, others are taking it a step further and actually redesigning recycled clothing that is not as desirable to resell. Here in Slovenia, the founders of Atelier Indevin are riding the wave of this emerging trend and have created what they describe as an institute for integration and promotion of responsible fashion. One of the founders, Eva Seljan, explains how redesigning clothes by taking quality garments that no longer serve trends due to cut or size is one way they share the idea of environmentally friendly fashion. Deeming excessive consumerism in fashion outdated and socially irresponsible, their intent is to promote the virtues of reusable fashion and to help raise awareness of the value of quality local design and dressmaking. Eager to donate to the cause, I am having one of my own vintage dresses, which is a bit too “vintage”, redesigned by Atelier Indevin as I write this. Not only will I be doing the dress a greater justice than sitting in my closet, but also I will have a completely one-of-a-kind piece that is both posh and environmentally friendly. Think good karma, great style, and you have a winning combination.

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Tourism

Gold has been used for beauty purposes already from the times of the Ancient Egypt onwards when Queen Cleopatra used a golden mask on her face to retain eternal youth. The development of new technologies enabled crunching pure gold to micro parts to make full use of its qualities in cosmetics.

It has been proved that gold is effective in rejuvenating skin, reducing wrinkles and improving the tone of the skin. Skin treated with gold becomes more smooth and shiny. Kozmetika Afrodita’s new line GOLD 24 Ka contains small pieces of pure gold that bring positive energy to skin and give it a glamorous look. The four products from the line (Luxury Ampoules, Luxury Day Cream, Luxury Night Cream and Luxury Mask) give breathtaking results for all types of skin after the age of 30.

First Award for Slovenia on the World Travel Market

Slovenia’s stand for communicating the country’s trademark I FEEL SLOVENIA and promotion of the Slovenia’s tourist offer received an award in the “Best stand for doing business” category on the 32nd World Travel Market London 2011. The Slovenian stand has been highlighted as an example of good practice which enabled its visitors to get electronic brochures with QR code. The code was printed on bottles of water which symbolises one of the fundamental natural resources of Slovenia as its water is among the cleanest fresh waters in the world. WTM London is the largest and most important event in the tourism industry in the world and gains on its importance every year.

Wellness

Sleeping

Spoiling in Thermana Laško

Travel

Thermana Laško prepared gift certificates for your loved ones, friends, co-workers and business partners.

One can choose from a great variety of wellness services that satisfy even the most demanding guests.

Those who cannot decide what to opt for can give a gift voucher with a certain bonus so that the recipient can pick a service they themselves like best. Thermana Laško invites everyone to indulge in total relaxation in their thermal pools under the glass cupola where time stops at least for a moment.

Turkish Airlines wins SkyTrax Award

Turkish Airlines, one of the fastest growing airline companies, has been chosen as the winner of the three categories – “Best Airline Europe”, “Best Premium Economy Seats” for its Comfort Class seats and “Best Airline Southern Europe”. SkyTrax is known as the “Passengers Choice Awards” and is well-known in the world aviation industry. Turkish Airlines, a member of the Star Alliance network, flies five times per week from Ljubljana and in summer 2012 plans to fly to Istanbul daily.

Household appliances

Beauty

Maremico, the only Slovenian producer of water beds, presented a world innovation – a water mattress Aqua Spring. This is a water bed with an inbuilt SpringTop upper layer which is composed of more than 500 micro pocket-like springs on one square metre and provides maximum ventilation between all existent water beds systems. Due to the upper-insert, Lectus Aqua Spring is the only water bed in the world that enables comfortable and peaceful sleep also to people who suffer from excessive perspiration during the night rest. Business partners from Germany, Austria and Switzerland have already expressed their interest for this innovation which is the first considerable improvement in the last 10 years in the segment of water beds.

Anti-age Fantasy of Pure Luxury

news

The First Water Mattress in the World

Siemens Vacuum Cleaner Wins VIP test

Siemens vacuum cleaners have done an excellent job at the international vacuum cleaner test published in the October issue of the Slovene Consumer’s Association (ZPS) VIP magazine as three Siemens models made it into the top ten. Among 26 tested machines from 9 manufacturers Siemens VS07G1666 became the winner of the test getting a highest mark, namely 4.2 – good. It was the only model among the tested ones that received a “very good” or “good” mark in all the tested categories (cleaning effectiveness, dust retention, durability, environmental features, usefulness). The high marks prove that buying this model is a good and safe investment, validated by the independent institution and all this makes the consumer’s choice easier when deciding which vacuum cleaner to buy. Siemens ones are thus a proper choice for a clean home for sure.

December 2011

Your Gateway to the World La Première

The Air France La Première service redefines the codes of luxury to satisfy its customers. From the moment they arrive at the airport, and throughout their entire trip La Première customers benefit from a personalized assistance, making their experience a pure moment of well-being and comfort.

Customers in transit are personally welcomed at their arrival in Charles de Gaulle, and accompanied to the La Première lounge, where they can enjoy a choice of gastronomic cuisine specially created for Air France by Alain Ducasse or a massage at the relaxation centre. When it’s time to board, a private Mercedes service convoys the passenger to the plane.

The on board menus, created by Michelin-starred chefs, propose quality products and the best in French wines. A bar remains open throughout the flight so that passengers can get a refreshing drink at any time. For flights lasting over 10½ hours, a buffet is also available during the flight.

La Première passengers are pampered in a 2-meter bed ensuring customers enjoy a good night’s rest. The comfortable bed has an additional mattress with a duvet, a pure Merino wool blanket, a “boudoir” cushion, an anti-allergy feather pillow with an embroidered cotton pillowcase edged with openwork.

Air France flights from Ljubljana allows passengers to benefit of short connections to the over 800 Air France destinations.

Slovenian passengers in transit at Charles de Gaulle, do not need any additional security control. This enables them to have extra-time to relax and enjoy the many services offered as different restaurants, a large number of shops and relaxing areas in T2C, T2G, S3 where passengers can enjoy a massage and some beauty services.

Charles de Gaulle is also a children-friendly airport. Different play areas are located in boarding areas of Terminals 2C, 2E (new section) and S3, and equipped with Sony systems offering different video games and the possibility to watch cartoons.

Moreover an Unaccompanied Minor room at Terminal 2E is available for young travellers between the ages of 4 and 14 having connecting flights. In this 200 m2 space young travellers are cared for by Air France staff and enjoy themselves with various activities. The Paris airport also provides a self-service stroller loan service, available after the security controls at terminal 2E.

Fly Airbus A380 In Only Two Hours

Air France offers you two daily flights from Ljubljana to Paris. It takes approximately two hours to reach the beautiful and romantic Paris – the capital of France. From Charels de Gaulle airport, the centre is only about half hour away. The coach service is departing every 30 minutes. Paris gives offers to a tourist an incredible variety of world-famous sights.

Anyone from the young backpacker explorers, romantic couples or senior tourists can find a way to feel the ‘joie de vivre’ in this magnificent city.

Eiffel tower, the Louvre, the Champs Elysees and the Moulin Rouge are only the few first listed in a wide set of attractions that Paris offers you. Of course, there’s also the excellent French cousine, while the families will want see the fabulous Eurodisney, where they can joy the Mickey Mouse and other Disney characters in their adventures. Paris is a city you just cant miss.

The 538 passengers on board Air France’s A380 enjoy more comfort and space, whichever cabin they are travelling in. On board, Air France has designed everything so that passengers on this Superjumbo aircraft enjoy a moment of well-being, in a quiet and particularly soothing cabin with noise levels which are 5 decibels lower than industry standards. The A380 is more spacious than any other aircraft.

Thanks to lower fuel burn, the A380 also produces less CO2 per passenger than any other plane. With less than 75 g of CO2 produced per passenger kilometre, the A380 is one of the most environmentaly-friendly aircraft.

The lighting is not only a key element in the feeling of comfort for passengers, but also plays a role in synchronizing the body clock. On board the Air France A380, different lighting environments exist depending on the different stages of the flight.

To enjoy a drink, relax or chat with friends or family, each cabin on the A380 has its own bars, including one exclusively reserved for La Première customers, two in the Affaires cabin and three in the Voyageur cabin.

The A380’s in-flight entertainment system is completely new, with wider screens and easier navigation, enabling passengers to access programmes in just a few clicks. Passengers can choose between movies - some of which are translated in up to 9 languages or follow the aircraft’s flight path (Geovision) in real time. Air France is the first airline in the world to equip each seat in the Affaires and Voyageur cabins with a USB socket, enabling passengers to download contents such as flight schedules, information on Air France, destination guides, games for children, relaxation videos and podcasts.

www.airfrance.com

34

The Capital

That Time of the Year Again

December is here and Ljubljana once more has a special festive glow. Countless twinkling lights attract numerous people who come to the city centre to meet old friends over a hot holiday drink, enjoy the concerts, buy presents or simply absorb the merry atmosphere that spreads around the main city streets and squares.

By Polona Cimerman Among the highlights of festive Ljubljana are the lightning designs by artist Zmago Modic. His original master project entitled “The Universal Ljubljana” focuses on life and consists of 59 galaxies and over the years he has upgraded it with “Path of Life” and “Birth of Forms” light arrangements. This year the novelty is the “Bearers of the Light” on Prešernov Square – puppets which are going to descend from Kresija towards the Christmas tree and bring light. In addition, lights simulating a white-blue wave are going to be placed above the Ljubljanica river.

The over 180,000 lights in 60 kilometres of light garlands were switched on simultaneously on 3 December at the traditional “People, let’s light the light” event. The ceremony was dedicated to two Slovenian classical literary authors: poet France Prešeren who was born on that day, and the most popular Slovenian humorist of all time Fran Milčinski Ježek whose poem the organisers borrowed to name the event which, every year, marks the start of the December festivities in Ljubljana.

A place to be The Festive Fair has been at the core of the city social life every year.

The Slovenia Times

celebrations and countdowns in four squares will ensure every visitor is in a merry mood. In the second half of the month, special guided tours around festive Ljubljana will be organised daily, with Father Christmas as a tour guide.

Focus: children

Its jubilant green cottages will be opened until 2 January when the festive programme will end. Visitors will have a chance to indulge in mulled wine, hot tea, various liquors and a wide selection of dishes. The other cottages will sell a rich selection of holiday and winter products, local arts and crafts and also young designer items which are mostly not available in the shops.

Apart from fairs, a rich cultural programme is going to entertain locals and tourists alike who are visiting the centre of Slovenia’s capital.

Numerous concerts in different venues catering for various preferences, good fairies granting wishes in front of City Hall, street theatre with clowns and other artists at the Butcher’s bridge, Grandpa Frost processions and New Year’s Eve

The already rich programme will also see many novelties this year.

The main highlight is the Fairy Town in Zvezda Park. Aimed at children, it will include puppet shows, creative workshops and various games. The festive decorations in the park will also be the children’s domain. Also new are a festive book fair, choir evenings in the Zvezda park pavilion and two stages – the one at Novi Square and at Kongresni Square which is going to replace the one from Prešernov Square.

The very good news for anyone who wishes to join in the festivities is that all events are free of charge to attend. There is also free parking in Vodnikov Square in the evenings (and all day on Sundays and holidays) in December. There is no doubt that the festive season in Ljubljana is going to be magical and not to be missed.

The Culture pages are supported by the Minstry of Culture of the Republic of Slovenia

CULTURE 35

The Whole Country is a Stage Amateur, independent, national, commercial… Slovenian theatre is a vibrant part of the country’s cultural life, featuring many genres and production scales.

By Andraž Bajc

T

here may be a tiny disagreement about whether the first Slovenian theatrical play was a religious passion of Škofja Loka from 1721 or comedy Županova Micka by Anton Tomaž Linhart, performed 70 years later.

But there is no doubt that theatre plays, and has played, a vital role in forging national awareness and identity. This year, Ljubljana’s Drama House celebrates 100 years of its existence, although up until the end of the Great War and the fall of Ausrto-Hungarian empire, this stylish temple of culture only accepted plays in German.

Slovene-speaking performances belonged to more “underground” locations.

Today, Slovenian theatrical productions range from amateur groups in villages and towns, to theatre masters who proudly show their work on the most prominent Slovenian and foreign stages.

There is also a network of statesponsored theatres with classical and modern repertoire; smaller theatres, exploring less-conventional theatrical approaches which count on the mercy of budget benefits; and a few commercial theatres showing mass-appealing light entertainment.

There are 14 theatres listed as public institutions, four of them in Ljubljana. Three “national” theatres (Ljubljana, Maribor and Nova

Romeo and Juliet in Maribor drama

Gorica) receive full state sponsorship, while the others share the expenses with local sources. Others are registered as non-profit institutions, co-funded through Ministry of Culture tenders; many of them with own stage and enviable production scale (Mini teater, Glej, EnKnap, Bunker etc.).

Theatre capital

A typical representative of national theatres is Maribor Drama, a prominent institution known for its Borštnik Meeting festival, named after Ignacij Borštnik, the pioneer of Slovenian professional theatre. The Borštnik Ring represents the highest national award for achievements in the theatre and as such one of few highest national events held outside Ljubljana. Especially during the festival, Maribor Drama hosts many other theatrical groups, whereas the most vital exchange still happens between theatres of former Yugoslav countries.

Maribor Drama receives 49 percent of its funds from the state budget – the rest is its own income. The most successful play staged there in recent years was Patrick Marber’s Closer with more than 50 performances, followed by Bertholt Brecht’s Respectable Wedding and Boris Vian’s Tête de Méduse. However, in absolute terms the children shows

are still ahead in the number of performances.

There are plenty of chances for Slovenia’s young people to see theatre productions, not least at the Ljubljana Puppet theatre which puts on some 400 shows per year.

Most are attended by groups from schools or kindergartens. Their eternal hit is Jan Malik’s Speckless the Ball, running from 1951 onwards, with 1,308 performances.

In business

The leading theatrical institution in the country Špas Teater boasts 140,000 visitors per season.

The comedy theatre’s absolute bestseller is 5moških.com (Five men) with 400 performances and 215,000 visitors. The theatre lives strictly off ticket sales, without any sponsors and subsidies, and proves that it is possible to run a profitable theatre in Slovenia. The formula for their sold-out shows is simple and efficient: light comedies most likely based on malefemale stereotypes with star actors and other familiar faces from the world of entertainment. It is a formula which ensures theatre continues to be at the very heart of Slovenia’s cultural landscape.

Hitchcock’s 39 Steps by Špas teater December 2011

36 CULTURE

Sašo Jurcer, Theatre Director

The Power of Art is the Awakening of Emotional Communication The Inner World Theatre expresses itself through a series of original performances that transpose the boundaries between performance, physical theatre, contemporary dance and modern opera. Its work shifts away from the notion of the theatre as the mirror of the world to theatre as a gesture to the world – from the actor’s body on stage to body as a world. Director and manager Sašo Jurcer says it is proof that, with an initiative approach, a small family theatre can perform on important stages all over the world.

By Rafael Bajc communication that was established during the performance is something that gives meaning to our doings and gives energy for further creation. And back to Slovenia, where I have noticed a gradual loss of basic curiosity from an audience that predominantly satisfies themselves in the spheres of entertainment and digestion. After all these theatrical expeditions, I think that in the final instance, the main creator of the theatre is not an actor but the audience with their needs. It was not only theatre makers that built Greek ancient theatres – the whole community took part in this mysterious act.

Your shows are aimed at an exclusive yet international audience; an audience ready to perceive abstract expression. How do audiences around the world compare?

And how do international audiences differ to the Slovenian one?

I still believe that it is possible to create universal theatre. My mission of extensive international operations and communication with audiences of different cultures is aimed at achieving this ideal. This despite the fact that I know and it is becoming clear that in the contemporary world, full of fragmentary destinies, it is impossible to do theatre for all and meet the needs of the entire audience. Today, even the ambition to render the world in all its totality on stage is something so difficult to catch and hardly reachable. But we cannot overlook that, in spite of our unquestionable civilization progress, that day after day The Slovenia Times

in this world we understand less and that at some point due to this the world we live in is becoming an abstraction for us. I was trying overcoming and escape from this antagonism between the exclusivity and abstraction through a series of performances in a progressive curve by shifting away from the notion of the theatre as the mirror of the world to the theatre as a gesture to the world – from the actor’s body on stage to body as a world.

We have experienced the strongest response in Greece, the womb of European theatrical culture.

Here we presented our – I must admit - highly complexly constructed re-envisioned version of Medea’s myth to the “native” audience. This is an audience that still lives ancient myths and where mythological framework is not just a brief information from the educational process. Their enthusiastic reception and the depth of

Is it difficult to promote yourself and get access to the festivals like Moscow one? How do you do that?

Moscow is a station on the way and it is also the result of the production and theatrical paths that I have described. From an inside view we are working as a theatre laboratory dedicated to developing new theatrical forms and on the other hand and seen from outside we are a normal theatrical production unit. As a producer I know that to meet the needs of an audience in the international scale you need to have a performance that is absolutely unique, special and different. As an artist I am also deeply aware that without the highest possible professionalism or even virtuosity that in the same time is covered with invention is not possible to meet their needs. But most important you have to have your vision of truth.

In the language of economics it is supply and demand.

Russia has a great history in theatre, does that reflect in the attitude towards creators of theatre?

I noticed that there is still a rare professional enthusiasm and a

passion for perfectionism, and belief that theatre is something important. All these factors are essential for making theatre. And most importantly they still have an audience, which means that the audience still needs theatre.

How is the Russian scene different from Slovenia?

Unlike the Slovenian theatre they still rely on professional discipline and keep highly professional. There, the idea of art is still alive and they are really in a state to fall in love with the artists.

Such admiration later follow the compliance and build the relationship, for example, when an actor is accepted by applause already at

Mojtina Jurcer: Medea’s scream

COLUMN the time of his arrival on stage. It is very easy and joyful to perform on stage in such conditions. On the other hand, of course, they are able to be pretty rough in disdain.

Nothing is free these days so how do you fund your theatre? Is it possible for your projects to live just on ticket sale?

The world is changing so rapidly that every year you have to invent new forms of financing.

I am seriously working on it - to live only on the tickets sale but in reality this is possible only in big cities.

Can culture serve as a promotional tool for the economy?

Is there an example you can tell about?

I can give you an example of understanding of this process.

The power of art is the awakening of emotional communication.

By reading Dostoevsky, for example, we discover deeper layers of a nation and its culture, and through this knowledge we create understanding and curiosity, which enables communication.

When such a wide range of attention is established, many aspirations easily follow, resulting in the need for exchanges and in the language of economy - in trading.

Economy with its will to power and exclusionary behavior often forgets these deep and sophisticated causes.

What are your future plans for the theatre?

In the next season we will conquer Rome, Paris and London among others.

Great Achievements and Paradoxes I see a lot of brilliant acting in plays which resort to the safe sphere of successful texts or to directing which resembles nothing but on stage traffic management. I see excellent dancers who force their intimacy upon me. Some years ago I watched a notorious performance staged by a commercial theatre in the overcrowded Tivoli Hall. Hallelujah for organisers and producers, but the truth was that the show was protracted. I asked myself the multitudes of people who attended this production had been hiding. Why do I not see them active in other theatres?

I believe that commercial theatres need to adapt more but at the same they very well know who they serve: the masses. I see excellent performances which perhaps have only two pieces of repetition. The budgets of slightly larger performances in the non-governmental sector are a bit bigger than public, solo creations – but not by much. Since the budgets are pretty miserable, there are no large shows in the non-governmental sector which is certainly more insightful and internationally active than public institutions. An exception here is the Slovene Youth Theatre. We have difficulties recognising and rewarding those that stand out from the crowd. How very Slovene is that! Maybe this is also the case because we do not have a special law which would deal with achievements above average. Instead each trifle always requires a lot of bureaucracy.

And yet our situation sounds excellent if not idyllic: we have an immense number of theatres, societies, private institutes, festivals. If I only focus on the stage scene, every day there is a superabundance of events. Too much? No, for audience the vast choice is welcome. On the other hand this means that nearly everybody gets a certain, although disgracefully, subsidy for their activities.

Which means that money is dispersed. The differences between the non-governmental and governmental sector are considerable, however they are not dependent on the quality or number of tours. It is good and fair that those who give the finances do not interfere with the contents of the production.

But they could interfere with the operations. Those established by the state – and there are many considering the size and the population of the country – are guaranteed to get funds. However the crisis has already taken part of the money. There is therefore a danger that the offices will be full of employees, while the stages will be empty because the funds are going to suffice only for the salaries of clerical staff.

And those who have a relationship of an indeterminate term with the state are more protected than animal species in danger of extinction, regardless of how well they are doing their job. On the other hand there is the rather unprotected non-governmental sector. They are dependent on public tenders; the state enabled multi-annual tenders (regarding the project and programme) to the larger and the more insightful. In a contract for, let’s say, four years, are they going to get the promised finances? If they do, does this mean that the realisation of contract conditions will bring them more money next time? Even though they are more skilful with getting the European subsidies, they cannot survive with them only. And art in Slovenia

feeds a large number of people; not only t ho s e we s e e on stage. The spectrum of the invisible ones without whom shows cannot exist is broad.

by Jedrt Jež Furlan T he pr oble m i s that we have two big players who hold all the cards – the state through the Ministry of Culture, and the city municipalities. There are no other alternatives. There are no foundations and no income tax relief and the idea of, for instance, earmarking some funds for the arts from the national lottery would seem likely to cause outcry. The rich donors of course give some spare change to the arts, be it because they know someone from the artistic circles or because they simply like what the one that asks for finances does. The easiest thing in times of crisis is going to be to slash the prestige productions; the ones that don’t produce instant market effects. There is a severe lack of patience – the patience needed to see that art changes the world and life, opens up taboos and dilemmas, and positively promotes us abroad. The mentality under the Alps does not see the great achievements in art; we have never had a male minister (but we did have two female ministers for culture) who would see in our national art what the famous Jack Lang saw in the French one.

In case someone has forgotten this, I can make them angry again: the first performance in zero gravity space is the work of Dragan Živadinov and his team. If this happened somewhere else, everybody would make a big deal out of it; the event would be placed on the front pages of newspapers and it would be the first piece featured in the TV news. Sponsors and donators would see a great opportunity for promotion and perhaps even business in it. And Dragan would not, just like everybody else, stand in the queue for subsidies. At home in Slovenia the performance quietly passed by. The sort of pride of the nation fired by sport achievements was nowhere to be seen. A similar story goes for scientists, innovators, theoreticians, thinkers and authors in general. Art does not trigger euphoric effects in people and the media; we prefer to criticise, lament or quarrel about politics.

Theatre and film director Tomaž Pandur – who is not really my favourite – recently received a high award from Spain... and hats off to him. The keen Nevenka Koprivšek, founder of the Bunker Institute, was rewarded by France. Neither has been recognised by Slovenia. Are we ashamed of them?

Is what they are doing not important enough for us? Are we silently going to put them on hold, into a disregarded department of the state? Are we going to allow the existence of prestige for spare change?

Jedrt Jež Furlan is a full-blooded cultural worker who has been part of the contemporary performing arts (in the varied roles of journalist, critic, selector, producer and promoter) for twenty years. She describes her relationship with art as “stormy, passionate, seductive; it bores me and makes me think, gives meaning to the world and life, opens up questions and dilemmas, tears down taboos...”

December 2011

37

38 PEOPLE

Dragan Živadinov

Theatre Director Enraptured by Space In 1995 Živadinov, whose artistic life is connected with zero gravity conditions and with space, embarked on his 50-year theatrical process “Noordung 1995-2045”.

By Marjan Žiberna

D

ragan Živadinov was born in 1960 in Ilirska Bistrica, Slovenia. He graduated from theatre direction in Ljubljana but his work has long since outgrown the boundaries of classical theatre. Živadinov aims at the cosmos.

As he describes it his artistic life consists of two parts. The first part covers the period between 1980 and 1995 and is much marked by his activities within the controversial but internationally renowned Slovenian art group NSK (Neue Slovenische Kunst – New Slovenian Art). Živadinov named the second part, after 1995, as the post-gravitational era of his artistic action. His work is connected with zero gravity conditions and with space. He considers the gravity as the last problematic planetary force and the overcoming of it in the artistic sense as his mission.

NSK Era

Baikonur Cosmodrome

In 1984 Živadinov was one of the founders of the NSK collective. NSK now consists of several more art member groups but the founding ones in the 1980s were Laibach, which has been the best known Slovenian music group for more than two decades; group of visual artists IRWIN; and Scipion Nasice Sisters Theatre. These three were later joined by some other individuals and art collec-

tives working with film, video, philosophy and the theory of art.

NSK actions were characteristically provocative. In its symbolism it draws on extreme nationalism, totalitarism and Dadaism.

The NSK artists loved to juxtapose various, often incompatible, political ideologies. In 1987 they designed the poster that won the Yugoslavian Youth Day competition and caused a scandal. They used the work of Nazi artist Richard Klein and replaced the Nazi German flag with the Yugoslav one and the German eagle with the dove. The NSK work was presented in the award-winning documentary Predictions of Fire

by American journalist and film maker Michael Benson. Slavoj Žižek, one of the most recognisable modern philosophers in the world, also appears in the documentary presenting his view of the NSK phenomenon.

Fascinated by Noordung

Živadinov started his artistic journey in the NSK Scipion Nasice Sisters Theatre. The member group was also known as Red Pilot and was later renamed to Noordung.

The latter name was inspired by Herman Potočnik-Noordung (18921929), a Slovenian officer in the Austro-Hungarian army who was retired at the age of 27 due to illness and dedicated the rest of his short

Controversial Political Art The Neue Slowenische Kunst (NSK) is a controversial political art collective which was formed in 1984 when Slovenia was still part of Yugoslavia. Three groups – Laibach, Irwin and Scipion Našice Sisters Theatre – joined together due to their shared way of thinking and similar ways of expression through various media. Slovene musicians, actors, painters and designers started working together in an organisation producing provocative and powerful work as they began dealing with nationalist ambitions arising in Yugoslavia. A year after Slovenia’s independence NSK redefined itself as a state without time and boundaries that also issues passports. NSK art is famous for The Slovenia Times

symbols drawn from totalitarian or extreme nationalist movements, often reappropriating totalitarian kitsch in Dada visual style.

NSK’s best-known member is the musical group Laibach which is also the ideological foundation of the collective. Later on the organisation was joined by New Collective Studio, Retrovision and the Department of Pure and Applied Philosophy.

The NSK theatre section has been known as Cosmokinetic Cabinet Noordung since 1990, before that it changed its name from the original Scipion Našice Theatre to Cosmokinetic Theatre Red Pilot. They plan to retain the current name at least until their final performance of One Versus One in 2045. The

show was first performed in 1995 and the intention is to restage it every ten years and then finally do away with mimetic theatre and establish the rule of non-corporeal art.

Noordung takes its name from the influential Slovenian space scientist Herman Potočnik Noordung. The theatre’s most famous productions have been Baptism under Triglav performed by the original Scipion Našice cast with all other NSC compounds have been involved, and Supremat performed in 2004 as part of an NSK event held in Dublin to celebrate European enlargement. The theatre founder and director is Dragan Živadinov.

PEOPLE 39 Photo: Rafael Marn

The People pages are supported by the Minstry of Culture of the Republic of Slovenia

Biomechanics Noordung

life to the problem of conquering the universe. In 1929 in Berlin his work The Problem of Space Travel was published in German. He addressed the problems of rocket motors, living in space at zero gravity, and travelling in space. His work has inspired many scientists and artists, among them the NASA experts who planned visit to the moon and the co-creators of the Stanley Kubrick film 2001: A Space Odyssey. Živadinov was fascinated with Noordung’s clairvoyance and particularly the zero gravity question, which has been at the core of his art work since the 1990s. Herman Potočnik and Clark’s quantum computer presented the scientific basis for Živadinov’s work. He also draws from some avant-garde art practices from the early 20th century; particularly suprematism, the art movement founded by the Ukrainian-Russian painter Kasimir Malevič (1878-1935) and the Trieste constructivist ambient, group work of four artists from 1927 where they used thin threads to hang objects so as to give the impression of zero gravity. All this formed the basis of Živadinov’s conceptual abstract art he calls post gravitational art.

Together with his colleagues, especially Dunja Zupančič and Miha Turšič, he has been creating unique theatre that links science with art.

In 1995 Živadinov embarked on his 50-year theatrical process “Noordung 1995-2045”. The first performance was staged in 2005. It will be followed by performances in 2015, 2025, 2035 and 2045. The show includes seven actors and seven actresses. In case any of the performers dies during this period he or she will be replaced by a remote controlled sign that was selected by each of the performers.

The text the performer read will be replaced by a melody for women and rhythm for men. Živadinov says all actors will be dead by 2045 when the last performance is

Herman Potočnik, rediscovered by Živadinov

scheduled to take place, so there will be 14 signs on the stage.

Toward space

“I will be alive then, I’ll be 85 and I’ll take the signs – the substitutes for the bodies of actors – to the equatorial orbit and placed them as the artistic satellites – umbots. In them there will be 14 sintapiens, as we named them, 14 synthetic homo sapienses; their mimesises – the photos of their faces and their biographies. They will be telemited into the depth of the universe.”

In 1998 Živadinov finished preparation for the space travel in the Yuri Gagarin centre for cosmonauts in Bajkonur, Kazakhstan.

The Russian space agency was preparing the first commercial civil travel to space and he was among the 12 chosen among many thousands candidates. Živadinov says he never wished to travel into space as a child. “To become a cosmonaut is purely a mean to an end which is to carry out the Noordung 1995-2045.” Živadinov is yet to travel to space but he has already realised a theatrical piece in space-like conditions. Biomechanics Noordung was staged in 1999 in the Iljušin aircraft that is used by Russian cosmonauts for space travel preparation. The aircraft is designed for zero gravity acclimatisation.

“This was the first theatrical performance in zero gravity conditions – or if I try to be scientifically accurate in the conditions of micro gravity, because total zero gravity is practically unattainable,” he explains.

A trip to Sri Lanka

In 2001 Živadinov paid a visit to Arthur C. Clark (1917-2008) in Sri Lanka, where the writer, a dedicated diver, spent a lot of his life.

Clark – known mostly as the science fiction writer and the co-writer of the script for the film 2001: A Space Odyssey – was also a superb expert of technology and an in-

novator. Živadinov presented his zero gravity theatrical production to him. “Clark was definitely one of the ten phenomenal people that I have met in my life – an impressive, fascinating person, who understood science, technology, the engineer logic and Hollywood,” says Živadinov.

B ei ng a g r e at ad m i r e r of Her m a n Potoč n i k-No ordu ng

Živadinov has also contributed to the international renown of the Slovenian pioneer of rocket engineering. He also took part in the initiative to open a memorial room in Vitanje near Slovenj Gradec, where Potočnik spent apart of his youth and he supports the arising Cultural Centre of European Space Technologies.

The Pioneer of Space Travel Herman Potočnik Noordung (1892–1928) was a rocket engineer and pioneer of cosmonautics of Slovenian origin that influenced and inspired generations of space scientists around the world. After obtaining a degree in engineering, he served in the First World War. As soon as he finished his service he went to Vienna where he studied rocket technologies, completely devoting himself to scientific research after his doctorate. Just before his death, his sole and revolutionary book “The Problem of Space Travel – The Rocket Motor” was published in Berlin. The book, which was in German, saw Noordung added to the author’s name. Some believe it suggests equality of directions in a zero gravity space. Over 188 pages and through 100 illustrations he himself made, Noordung first discusses contemporary discoveries and later on deals with issues of space technology. The ground-breaking ideas are supported by the concept of human travel and presence in a zero gravity environment. He proposed a space station in the shape of a rotating wheel in great detail and was the first person to calculate the geostationary orbit. He also described geostationary satellites and discussed communication between them and Earth using radio. The essential parts of his book were almost immediately translated into English and soon into Russian, while Slovenians had to wait until 1986 for a version in their language.

The book was the first comprehensive basis of contemporary astronautics and cosmonautics and it influenced the American, Russian and European space programmes. It also had a major impact on science fiction authors; Kubrick’s cutting-edge film “2001: A Space Odyssey” uses Potočnik’s space station design. In his work Potočnik united his brilliant engineering mind with a vision that went beyond his time. This made him truly the first designer of space technology who also made a decisive step from an idea to its realisation. He systematically stood up for human exploration of space for peaceful purposes, always with a bold insight into the seemingly unreachable.

December 2011

40 CULTURE

Stand-up comedy

A Quest With A Single Goal: Laughter!

Slovenia has gone stand-up comedy crazy with comics getting up on stage on a nearly daily basis. A hot phenomenon it may be, but not one with a long history on the sunny side of the Alps.

By Polona Cimerman

N

ot so long ago stand-up comedy was a rare and exotic type of entertainment in Slovenia. On the whole, it was known only by those familiar with the English-speaking comedians from TV or, often, the internet.

But times have changed. Now there are many and varied Slovenian stand-up comedians, even if no one can quite pinpoint when the scene exploded. “It has come out of a years-long process which has formed into stand-up that we know today,” argues Dominik Maher from Maribor’s Institute of Culture. The Institute incorporates Standupsi.com, the central organiser of stand-up comedy events in Slovenia. “The main ‘culprits’ for what we have now are the eager individuals and groups which stubbornly persisted in doing what they wanted to do despite the non-existence of today’s venues and stand-up culture in general.”

The Slovenia Times

Those stubborn individuals are a diverse bunch, says Maher: “Stand-up in Slovenia is very heterogeneous; comedians come from versatile environments and age groups, and have different experiences and backgrounds. There are also many female comedians despite the fact that Slovenians generally perceive stand-up as being a male thing.” Lucija Ćirović, one of the pioneers of Slovenian stand-up comedy, agrees: “Unfortunately a lot of people here think that a stand-up comedian must be a man which I find utterly ridiculous. Stand-up comedy cannot be judged by one’s sex, race, weight, status, sexual orientation, hair colour, ethnicity, clothing and the rest of such ‘parameters’.”

Key to success: being genuine

On the Slovenian scene there are both amateur stand-ups and those like Ćirović who are experienced

actors. Ćirović says there are differences between the two groups: “Professionals are used to the stage and know how to deal with it, also they are used to various interpretations of texts and using their body and voice as a trained instrument.”

However she believes this does not guarantee a good stand-up performance as the foremost ingredients for a laughing audience are sincerity and authenticity. “If mastering the stage is a definite plus for professional actors and actresses, a minus can be a too theatrical interpretation of the material which kills the stand-up genuineness. On the other hand the non-professionals can take the most out of their naturalness and freedom from theatrical limitations, but incomprehensible speech and poor expressiveness can be reasons which make their performances bad. To cut a long story short – there is no formula that would help one judge who or what makes a better standup comedian.”

Which is not to say there isn’t a recipe for a performance – Ćirović says it simply has to consist of stage, light, microphone and at least one stand-up comedian. But not everyone can be a stand-up: “For a good comedian stage presence is important, that is their energy and manifestation which should be interesting simply as it is, without the comedian doing or saying anything. Furthermore there is their sense of humour and original and well-prepared material,” she asserts. “Another feature of a good comedian is that they turn their weaknesses to their advantage and this is what makes them funny and unique. I believe that if a comedian thinks something is funny the audience will probably laugh at those things as well. So the key is to practise the material outloud and find the right words and ways of saying it.”

So who are the Slovenian standup comedians that shine brighter than others? Maher says this is extremely debatable: “Everybody has their own favourite. Different people find different things funny and have different preferences. So singling out stars should be a matter for each individual.”

Taming of the audience

Maher believes that each topic that is well interpreted by a comedian who fully stands behind it can be a success since “the audience respects the straight-forwardness, recognises the deeper truth and links this with a reallife story that perhaps happened to them or their friends and family which makes everything even more funny.” Ćirović, on the other hand, fears that there are certain topics that will never go out of fashion in Slovenia: “The majority of the Slovenian audience unfortunately prefers humour based on jokes which are full of Balkan swear words and sex.”

Perhaps in part that’s because the audiences are often novices when it comes to stand-up comedy. “In the the United Kingdom,

CULTURE 41 where they have a long tradition of stand-up comedy, it is the most normal thing for the comedians to talk to the audience from the first rows and include them in their jokes, in Slovenia this is not the case,” explains Maher. “People are not totally ready for this yet, but eventually we are going to get there too,” he says confidently. Ćirović notices differences between female and male audience members: “My experiences show that women make better audience members because they laugh loudly and are not shy to express their feelings. Men often laugh ‘inside’ which makes the situation for the comedians harder as they don’t hear the feedback and thus have difficulties finding orientation as to where should they direct the show and jokes. But these are just general observations, there are exceptions of course.”

She agrees that the development of stand-up comedy in Slovenia – in terms of the wide range of its comedians, jokes and genres – is preparing the audience for different situations and also, in a way, educating and raising them.

Also in English

It is not just natives who are giving stand-up performances

PJ-jaslice-oglas-A5-EN.indd 1

in Slovenia. It is also possible to enjoy performances from foreign guests who are usually well accepted by the audience and so draw large crowds. But since they speak in a foreign language, there are challenges to be overcome. “The comedians needs to figure out to what extent they are understood, they have to take into account the cultural background and the context of jokes they wish to deliver which is by no means an easy job,” says Maher.

It’s a situation with which Ćirović is very familiar, having given performances in foreign languages: “Each performance which is not in your mother tongue is a special challenge, especially because you need to put yourself in completely different shoes which you don’t know or sometimes even can’t relate to.”

The comedian is limited by the language and its tiny nuances, cultural differences, mentality contrasts and other local characteristics of each country. The nature of the audience also needs to be considered; not least its familiarity with stand-up audience. But there are advantages too, says Ćirović: “As a foreigner you are exotic in a way and your

language and pronunciation mistakes can add to your funny factor.” In her latest foreign language stand-up project, her first in English, she focuses on Slovenia and its sights. The act is primarily aimed at foreigners visiting Slovenia: “I translated existing material which I felt appropriate for the audience and wrote some new things, made especially for people who don’t know Slovenia; I really focused on the English language and its peculiarities.

The phases that follow are equal to other performances – learning and practising and then performing and making everything even better.”

Time for catharsis

Ćirović is giving the performance monthly in one of the hotels in Ljubljana. But comedians now perform in a wide range of venues – bars and clubs play a role but they have also managed to breakthrough into theatres and other cultural institutions. Maher sees it as an indicator of the quality and credibility of the performers.

Comedians usually prepare their material themselves but with the immense popularity of stand-up comedy and the growth of corporate performances they

are sometimes asked to include some jokes about the firm or its activities. “Comedians then adjust the existing programme according to the audience, the company and what it does,” says Maher. “Only rarely are parts of the performance commissioned; this takes a lot of effort and time.”

Stand-up comedy seems to have become an omnipresent part of Slovenian entertainment. One of the reasons may be that, unlike the one-way communication that prevails in most live entertainment, stand-up comedy offers the audience to interact with the live performer. “It is a direct comment of the person on stage, observation of life around him or her which is often spiced up with a social critique. All this forms a unique experience that attracts people to stand-up comedy events all around Slovenia,” says Martina Ipša, a successful comedian herself. “The chance to highlight some problems, laugh at them and make them smaller sort of works in a cathartic way. Laughter makes everything better. Standup is a form of fun, but is at the same time much more than only that and thus it will continue to flourish.”

December 2011

11/30/11 2:02:49 PM

42 EVENTS

Maribor 2012

Exhibition

Museum of Affects

The Chance of a Lifetime

Sat 26 Nov–Sun 29 Jan 2012, Museum of Contemporary Art, Ljubljana

Next year the eyes of the European cultural public are going to be fixed on Maribor since the second largest city in Slovenia will sport the prestigious title of European Capital of Culture. The path to the programme has been anything but easy, but the organisers have still managed to set up a number of top cultural events.

By Polona Cimerman

T

he culture capital is a PanSlovenian project of European dimensions where Maribor and its five partner towns – Novo Mesto, Murska Sobota, Velenje, Slovenj Gradec and Ptuj – are going to be put in the spotlight. The title gives them an exceptional chance to become more widely recognised. A transformation of mentality through cultural communication and development on all levels is also expected, including “public dialogue, education, promotion of cultural norms and values needed by the environment, encouragement of the broader cultural perception and democratisation of opinions,” says Suzana Žilič Fišer, general director of the Public Institute Maribor 2012. The project is a key driving force of development in the city and the region.

A winding road

It is undoubtedly a valuable and inspiring project but the path to it has been anything but simple.

Problems began as soon as the candidacy was declared successful.

From the end of 2008 the project seemed to stagnate, with little additional work on the programme and few meetings. 2009 did not bear any fruit either. It was only in 2010 that things finally started to move in a productive direction with the establishment of the Public Institute Maribor 2012.

The Slovenia Times

The Institute has had a tough job. It has had to confront the bad management of the past, unsettled contracts, cuts of budgets which had only been promised and not yet guaranteed, searches for appropriate venues and funds for the construction of the main ones, not to mention dealing with political interference. “The situation was tougher than I thought,” admits Mitja Čander, programme director of the project since November 2010. Even today, less than three months before the official opening in February, certain things still remain open, however “with immense effort we achieved our goals,” they say at the Institute.

the city” says Čander. “We’ll be dealing with its identity, the past and the future. The most important events here are the international book fair, house of literature and house of science; also taboos from the past about the Germans and Jews are going to be discussed in order to eliminate them. The goal is to bring life to the city in various forms,” he explains.

“Urban Furrows” will deal with social margins which are most difficult to integrate to community. Highlighted will be ecological and social projects, natural cultural heritage and good practices of sustainable development.

Life Touch connects what is dispersed in real space. “It will lift the project from the physical to a global sphere as its basic medium is the internet,” explains Čander. “A European intellectual context with columns and essays of eminent intellectuals will be established; this is extremely rare in Slovenia.”

Besides the four programme comp ou nd s, s eve n a r t i st ic spheres. In all there will be 412 projects. A special part will belong also to cultural embassies which will take care of cultural presentations of European and also countries around the world.

Ambitious programme

Amazing opportunity

And so at the end of October the programme was confirmed and presented to the public. The initially planned 16 programme segments have been shrunk to four and include projects designed in 2010 as well as new ones. According to Čander, “Terminal 12” is an opportunity for both famous and lesser known Slovenian and foreign artists to present themselves.

Some of the highlights are Maribor festival, Mars festival, Tomaž Pandur’s War and Peace, Black Masks opera, and an exhibition from London’s Tate Gallery.

The “Town Keys” segment, meanwhile, “concretely revitalises

“European Capital of Culture is a trademark that puts on a pedestal not only the selected city and its partner towns, but also the entire country,” believes the Public Institute’s Žilič Fišer.

“Despite the troubles we have been facing I know that Slovenians somehow always unite in the end and do things right. Slowly everybody is becoming conscious that the title really means an opportunity for everyone. The amount of finances in question is such that it is not worth blowing this outstanding chance,” affirms Čander. Hopefully Slovenia will know how to grab it.

The exhibition Museum of Affects brings together works from four major European museums: Ljubljana’s Museum of Modern Art, Barcelona’s Museum of Contemporary Art (MACBA), Eindhoven’s Van Abbemuseum, and Antwerp’s Museum of Contemporary Art (M HKA). Exhibited works were created between 1957 and 1986 as a result of a variety of different events and circumstances. They are not arranged in any of the prevalent ways of putting up exhibitions, but on the basis of the concept of ‘affects’, i.e. events of different degrees of intensity which leave their marks on time and space, and particularly our bodies and consciousness.

Printmaking

The Lyrical – The Bizarre – The Ambiguous Tue 29 Nov–Sun 12 Feb 2012, National Museum of Slovenia, Ljubljana This exhibition of European Mannerist printmaking brings together a selection of supreme prints from the late 16th to the early 17th century. Mannerism, an unusual period of art between the Late Renaissance and High Baroque, changed order and harmony for distortion of perspective and anatomy. The artists of the time rejected the exterior world of visually perceivable forms and drew inspiration from decadent views of beauty. The Print Section of the National Museum of Slovenia holds an extensive collection of prints from some of the leading centres of Mannerist art, including Rome, Venice, Antwerp, Haarlem, Prague and Munich, among others.

Photography

World Press Photo 2011 Thu 8 Dec—Mon 2 Jan 2012, Cankarjev dom, Ljubljana, no admission World Press Photo is an exhibition of prizewinning works from the world’s most prestigious press photography contest, organized annually by the Netherlands-based

EVENTS 43 World Press Photo Foundation. This year’s exhibition brings together prizewinning photographs in ten different categories submitted by photographic agencies, photographers, photojournalists and news publishers from around the world. Exhibited photographs include the overall winning photograph, taken by the South African photographer Jodi Bieber. The photograph depicts an injured Afghan woman.

Design

Niko Kralj Thu 15 Dec–Sun 4 Mar 2012, Museum of Architecture and Design, Ljubljana

Jazz

Joe Lovano Thu 15 Dec, 8pm, Cankarjev dom, Ljubljana, EUR 15–25 Joseph Salvatore “Joe” Lovano is a post bop jazz saxophonist, alto clarinetist, flautist, and drummer.

Since the late 1980s, Lovano has been one of the world’s premiere tenor saxophone players, earning a Grammy award and several nods on Down Beat magazine’s critics’ and readers’ polls. He is married to jazz singer Judi Silvano, who will be lending her voice at this performance. They will be accompanied by the Radio and Television Slovenia Big Band.

Wine

Slovenian Wine Event Sat 17 Dec, 7pm, Restaurant Sophia, Portorož, EUR 69

Ljubljana hosts a large retrospective on Niko Kralj, the founding father of Slovenian industrial design and a towering figure among 20th century industrial designers. Over his long career, Kralj has come up with innovative, socially-conscious designs for countless pieces of furniture and contributed to the development of the quality of living in Slovenia and international recognition of the country’s furniture industry. The item that earned him a place among the world’s top industrial designers is his famous foldable Rex chair, which is included in the collection of MoMA (Museum of Modern Art) in New York.

Electronic

Red (X-Mas) Party with David Guetta Thu 15 Dec, 9pm, Stožice Sports Park Arena, Ljubljana, EUR 25–85 After many years of his musical career, Guetta rose to stardom with a series of summer hits including When Love Takes Over (featuring Kelly Rowland), Gettin’ Over You (featuring Chris Willis, Fergie & LMFAO) and Sexy Bitch, among others. Guetta began to pursue a career as a club DJ in 1984 and recorded his debut release in 2001. In 2009 his album One Love rocketed to the top of the bestselling album charts in Europe and the United States. Earlier this year he received a Grammy Award. He is famous as a producer for such pop stars as Black Eyed Peas, Rihanna, Kelis, Kelly Rowland, Akon, Kid Cudi, Madonna, Ne-Yo, and Estelle.

You are kindly invited to an exclusive Slovenian Wine Event at the Restaurant Sophia on 17th of December at 7 pm, where eVino together with wine producers Movia, Rojac, Kupljen, Burja and Simčič will take you on a culinary journey of the finest Slovenian Wines along with a 5 course Menu dinner. The Slovenian Wine Event for only EUR 69 per person includes a 5 course menu, wines, water and coffee during dinner.

Rock

Parni Valjak Sat 17 Dec, 8pm, Stožice Sports Park Arena, Ljubljana, EUR 25–40 Parni valjak (“Steamroller”) is a Croatian and former Yugoslav rock band. They were one of the top acts of the former Yugoslav Rock scene, and currently one of the top rock-and-roll bands in Croatia.

A while ago, they announced their farewell from the concert stages, but as the saying goes: You can’t keep a good band down. They are recharged and ready for new challenges. Their new album Stvarno nestvarno (Really Unreal) is set to be released at any time and they will present it along with their greatest hits at the Ljubljana concert.

Jazz

Glenn Miller Orchestra Sat 17 Dec, 8pm, Dvorana Tivoli sports hall, Ljubljana, EUR 29–40.5

The Glenn Miller Orchestra for Europe, led by the renowned Dutch pianist Will Salden, will perform a concert of music by Glenn Miller, the famous 1940s ‘King of Swing’.

Delivering superb renditions and creating an authentic atmosphere of the golden age of swing, the official successor of the original Glenn Miller Orchestra performs Glenn Miller’s evergreen classics such as In the Mood, Pennsylvania 6-5000, Moonlight Serenade and Little Brown Jug, as well as arrangements of songs such as Diamonds are a Girl’s Best Friend, Bei mir bist du schon and many others.

Rock

Neomi Tue 20 Dec, 9pm, Kino Šiška, Ljubljana, EUR 8–10

Jazz

Neomi is an urban band that has just started its journey. Their stories are interrelated not merely through the love of music but also through family ties, as the core of the band is formed of Saša Vipotnik and her cousins, Jernej Kržič and Tadej Košir. The team is further supported by Anže Žurbi and Erik Marenče. At their gig in Kino Šiška they are presenting their debut album, which was recorded in Ljubljana and Helsinki, and will also be for sale for the first time.

Uroš Perič and Lucienne

Classical

Sat 17 Dec, 8pm, Hotel Mons, Ljubljana, EUR 24

As is tradition in the Hotel Mons jazz club, the evening’s performances will include two of the hottest musicians in Slovenia at the moment, Uroš Perič, the excellent Ray Charles impersonator and Lucienne, the female singer and pianist who became famous for her role as judge in “Slovenia ima talent”. Both musicians will be accompanied by the Radio and Television Slovenia Big Band.

Anja Bukovec Thu 22 Dec, 8pm, Grand hotel Union - Executive, Ljubljana, EUR 25–35 Anja Bukovec is an internationally renowned and most popular classical violinist in Slovenia. She is a superb musician and popular media personality. Her technical perfection is complemented by a recognizable style, unique interpretation and communication with the audience. Anja is a highly regarded figure, and became a cultural ambassador after studying in Ljubljana, Prague, Cologne and Vienna. The concert will feature a programme of classical and folk music, and will also involve many distinguished guests.

Comedy

Speaks You English – Alan Francis Mon 19 Dec, 8.30pm, Cvetličarna, Ljubljana, EUR 6 Alan Francis is a comedian and writer from Scotland. He is the co-author of play Jeffrey Dahmer is Unwell, which according to an otherwise unfavourable review in The Guardian was a “cult success” at the 1995 Edinburgh Festival premier, where Francis also co-starred. He also authored and starred in “Clobbered”, which according to a positive 2004 review in The Independent is being adapted for both radio and television. In 1991, he won the Edinburgh Festival Fringe newcomer contest “So You Think You’re Funny”. He was a writer on BBC1’s comedy sketch show The Big Impression.

Rock

Res Nullius Fri 23 Dec, 9pm, Rdeča dvorana, Velenje Res Nullius is one of the most pristine rock outfits to grace the stages of Slovenia. They have been around for what seems like ages, yet they still always manage to inspire the audience with their onstage energy and passion for their music. Known for their uncompromising vision of unpretentious roots rock, they always release vibrant albums and put on an excellent show.

December 2011

44 EVENTS fantasy perfectly suits the festive Christmas spirit.

Slovenia Times Recommends

Open-air concerts in Ljubljana The festive time around Christmas is a chance to experience Ljubljana’s rich offer of musical events.

The free concerts will give you an opportunity to get acquainted with various musical genres and some of the best music Slovenia has to offer, like pop, rock, jazz and ethnic pop music.

The Novi trg square will feature the likes of Ana Pupedan, Balkan Boys, ICE, Lucienne and Kontrabant.

The Kongresni trg programme is mostly for fans of pop and rock and will include, among others: Siddharta, Tabu, Tanja Žagar, Dan D, Alya, Elvis Jackson and Kingston The Pogačarjev trg square will host pop and ethnic pop performers.

Figure skating

Moscow Stars on Ice: Snow White and the Carmen Seven Dwarves Mon 26 Dec, 8pm, Dvorana Tivoli sports hall, Ljubljana, EUR 28–39

Mon 26 Dec, 3pm, Dvorana Tivoli sports hall, Ljubljana, EUR 22–36

Carmen, one of the best known operas ever written, will this time be performed on ice, by some of the most accomplished Russian figure skaters. The roles of Carmen and Jose will be danced by the Olympic champions Natalia Bestemianova and Andrei Bukin. The master of French opera Georges Bizet composed his famous opera Carmen between 1873 and 1874.

The opera tells a story about a seductive Gypsy woman Carmen, for whom love is nothing but an amusement. She brings to ruin numerous men, including a soldier named Jose, who tells her story before his tragic end.

Snow White is a fairy tale known from many countries in Europe, the best known version being the German one collected by the Brothers Grimm. The German version features elements such as the magic mirror, the poisoned apple, the glass coffin, and the seven dwarves. Now we have a chance to witness an adaption of this legendary fairy tale for ice skating, which will be performed by the Moscow Stars on Ice.

Ballet

The Nutcracker Mon 26 Dec, 11am, Slovene National Theatre, Maribor, EUR 20 The Nutcracker, the last ballet of Piotr Ilyich Tchaikovsky, has been one of the most beloved ballets of all time since the 1960s. The reasons for its popularity can be sought in the fact that the theme of the story and picturesque music are harmonised with the fairy-tale atmosphere of Christmas time and winter. In the hands of exceptional modern Canadian choreographer David Nixon the work blossoms in all its beauty for today’s audiences – both children and adults who still know how to awaken the child in themselves once in a while – to enjoy.

The Slovenia Times

Folk

Mandolina Orchestra Tue 27 Dec, 8pm, Kulturni dom, Bovec, EUR 10 Besides Celtic, classical, folk and ethnic music, and the best known pop and rock melodies by Irish artists, like The Dubliners, The Chieftains, U2, Enya and others, we will also not forget traditional Irish dancing music and modern dancing tunes from world famous dancing spectacles, like “Riverdance” and “Lord of the Dance”. The visual representation of the music will be supplied by the dancers of Šola irskega plesa (School of Irish Dancing), with leader and choreographer Joan McIntyre.

Circus

Wear It Like a Crown Tue 27 Dec – Thu 29 Dec, Sat 31

Initiatives Thu 5 Jan – Mon 6 Feb, Cankarjev dom, Ljubljana, no admission

Fri 16 Dec–Sun 1 Jan 2012, Novi trg square, Kongresni trg square, Pogačarjev trg square, Ljubljana, no admission

Opera, figure skating

Design

Dec, 7.30pm, Cankarjev dom, Ljubljana, EUR 22–35 Cirkus Cirkör Sweden is a circus with magic and a heart. The show integrates humour and sensuality, film sequences and high-class circus acts that astound the audiences. On a revolving stage, the circus performers move through a world of illusions, shadow play, knife throwing,

This time, the Slovenian designers have chosen to present their blueprints for as yet unrealised works, perhaps even provide concrete suggestions to the economic sector and society at large to take into consideration and potentially put into practice.

Shown will be works that never left the studios, or remained in the minds of the designers and were not realised or appropriately embraced owing to various circumstances. The exhibition will encompass all design fields: perhaps reveal various suggestions for the emblems of the Slovenian nation, perhaps even feature designs of products that will be made especially for this occasion.

Electronic

Joe Montana and Robert G. Roy Fri 7 Jan, 11pm, Cvetličarna, Ljubljana, EUR 5

acrobatics, juggling and drama.

Wear It like a Crown seeks order in the collisions between the left and right cerebral hemispheres.

It is about choosing to wear our failures, fears and shortcomings like a crown – to polish it and wear it with pride.

Ballet

La Sylphide Wed 28 Dec, Fri 30 Dec, 8pm, Cankarjev dom, Ljubljana, EUR 11–28 One of the first grand romantic ballets from the treasury of dance, La Sylphide is also the world’s oldest surviving ballet. The story is set in Scotland, where James, a young farm boy who is shortly to be married, is seduced by a sylph, or forest fairy, and lured into her magical fairy-tale world.

Last season’s favourite, a show of dreamy beauty and spellbinding

On the first Friday in January Cvetličarna welcomes two great musicians among DJs. From the north of Italy, riding the new wave, comes Joe Montana, master of combining all the different sounds possible, especially new wave, funky and electro, with good old house rhythms. He will share the stage with the excellent “home boy” Robert G. Roy, who was launched into the orbit of the electro scene in 2005 with the hit The Underground, and has since then been flying ever higher.

Hip hop

RNB Delicious Sat 8 Jan, 11pm, Cvetličarna, Ljubljana, EUR 5 Get ready for a night of sexy RNB rhythms mixed by The Urban Brothers. Sexy girls dancing on r’n’b rhythms, boys in baggy pants drinking cocktails and two crazy DJs making the club jump to the beat... no, it’s not an MTV video, it’s the RNB Delicious night in Cvetličarna. The Urban Brothers will again make sure you feel the beat with mixing r’n’b, hip hop, reaggetone and other genres.

SPORTS 45

Skiing

Back to Basics Once the pride of Slovene sport, Alpine skiing is now struggling to find its way out of the doldrums.

By Simon Demšar

Competition

In attracting young kids, skiing faces strong competition from other sports in a way that it didn’t 20 or 30 years ago. Football, basketball, ice-hockey, even handball, rank high among youngsters, who often prefer these relatively cheap activities over the “elitist” sport of skiing.

One of the hottest issues prior to this season was the financial contribution of EUR 5,000 it was argued each member of the national team should give. After tough negotiations, it was agreed that they will pay the money only if and when the team runs out of money.

The grave situation has translated into even poorer results than last year. The season opener in Sölden, Austria, was a disaster for the men’s team. With the exception of the downhill team they decided not to travel to the North American part of the World Cup, which has never happened in recent history. Even the downhill squad, which has been the only bright spot during the last couple of years, failed to impress in their season-opener in Lake Louise.

Photo: BOBO

O

ver the past few years, it often seemed that the competitors were to blame for Slovenia’s poor results in Alpine skiing. But it has now become obvious that problems go much deeper. Boris Strel, who won Slovenia’s first world championship medal back in 1982, compares the organisational situation to that in the 1960... with the difference that it is worse now.

“The Slovene Ski Association should have reorganised 10 years ago,” he believes. According to him, it is difficult to predict how it will do so now, when times are much more difficult. With its EUR 10 million budget, the Ski Association is still one of the richest sports organisations in Slovenia. The real problem is the lack of young talents, which many believe is related to a lack of competent coaches, at least at the top level. Slovenia used to have a pool of highly respected coaches but those experts have gone on to leave their marks in other national teams around the world. No results mean no sponsors and no money and so it goes.

Andrej Jerman,

Andrej Šporn and Andrej Jerman, once regular podium contenders, managed no better than 41st and 42nd. Gašper Markič was 14th in the super-G the following day but it remains to be seen whether this was a matter of luck or not.

Mitja Valenčič is a lonely member of the men’s so-called technical team with Mitja Dragšič, Bernard Vajdič and Aleš Gorza calling it a day after last year’s season. Valenčič will be assisted

by Matic Skube, a former junior world champion, who still has to show his potential.

Over at the women’s team it’s another story. Tina Maze and her private team continued her battle for funds with the Ski Association. She is currently the only woman capable of decent results, aiming at the very top in the overall standings, but the first couple of races were not very promising: her best was 7th place in Aspen.

Ana Drev, Mateja Robnik and Ilka Štuhec were merely making up the numbers.

on the promise he has been showing since his 7th place at the 2010 Olympic Games in Vancouver. The

opening event also showed signs of progress for Jernej Damjan, a former World Cup winner who has been struggling for several years. The team’s optimism is also based on the results of the summer tour in which they finished in 5th place as a team, winning one event and placing in the top ten 12 times.

Cross-country skiing and biathlon are gaining in popularity, thanks in large part to annual World Cup events in Pokljuka and modern training facilities there.

Petra Majdič has ended her career but her spirit lives on, at least in the form of her coach Ivan Hudač, who is now in charge of the U-23 team.

That gives some hope for the future of skiing in Slovenia. But if the early season is anything to go by, it is going to be some time before it reaches the heights of old.

Nordic team

Interestingly, Slovenia’s ski jumpers – on the receiving end of criticism for many years – have started the season on a positive note. They finished the opening team event in fifth place, after an excellent performance by Robert Kranjec. His closest companion will be Peter Prevc, who is coming of age and expected to build December 2011

A cake for the winners: Zoran Janković celebrates the victory with his grandson (Photo: MS)

The Ladies power at SILA bazaar: The first lady Barbara Miklič Türk, Aleid Douma president of SILA society and Doroteja Omahen, cookbook Tastest of the World writer. (Photo: MS)

EVERY PICTURE TELLS A STORY

Advent Wreaths knitting: Actor Branko Djurić with his daughter and wife (Photo: MS)

Comforting dance: Janez Janša, his wife Urška Bačovnik and other party members at a SDS post-election party (Photo: MS) The most attractive of Slovenian celebrities: Nataša Dobelšek, model, winner of the Femme Fatale 2011 title (Photo: MS)

Charity competition: Wall painters compete in Maribor’s centre for hearing impaired (Photo: P. Jenko)

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