The Slovenia Times Winter Edition 2018

S&P

Gl Econ omic obal: Res Euro Weak earch: n I s No t Ove ess r Yet The Slovenia Times Slovenian Magazine in English Language Winter Edition 2018, Volume 15, EUR 4.90

www.sloveniatimes.com

Marjan Šarec, Slovenian Prime Shada Islam, Friends of Europe: Dr. Daniel Susskind, University of Growth of “blockchain” Minister: Tax restructure high on Europe as the promoter and even Oxford: Developments in AI are community in BTC City Ljubljana the Government’s agenda the saviour of the multilateral order raising quite provocative questions

Event Guide & December in Ljubljana: a varied program and festive atmosphere

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Editorial

Contrasts

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Co-creation of the last TST magazine for 2018 has been a story of contrasts, dwelling on past events and focusing on future announcements has essentially brought momentum, which we are pondering in this issue. Starting with Slovenia’s Prime Minister Šarec, who after the vote claimed that he would use his power to "make it better for everyone", in his interview for The Slovenia Times explains how the government plans to address certain imbalances in taxation, especially in terms of the over-taxation of labour and the relatively low tax on capital. A decade after the global crisis, according to STA, Slovenia is doing well with six consecutive year of economic growth, although when the International Monetary Fund concluded a visit to the country in December, the recommendation was for Slovenia to use economic growth to prepare for rainy days.

Contributors Sylvian Broyer, Marion Amiot, France Arhar, Nina Kokelj, Saša Fajmut, Sabina Carli, Kaja Komar, Boštjan Lajovic, Institute of Macroeconomic Analyses and Development - IMAD

AD & D Marko Pentek, www.mgo.si

Cover Photo Bled, photo by Bled Tourist Office

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"We expect the euro to stay weak against the U.S. dollar into mid2019." You can read S&P’s economic research on their view that "Euro Weakness Is Not Over Yet". According to the research, there is diverging monetary policy between the U.S. Federal Reserve and the European Central Bank, as well as political uncertainties in Europe, such as the Brexit negotiations, which are the main factors weighing on the currency. However, Europe is trying to stand on its own two feet in a fragile international order. Ms Shada Islam from one of Brussels most influential think-tanks, Friends of Europe, highlights in her interview that all of the challenges that we are facing on the global stage of 'America First', China rising, mean that many people across the world and within Europe are looking to Europe and its leadership. "It is time to actually take up the challenge of preserving and maybe reinventing a multinational order, keeping it alive so that international cooperation continues, so that we do not have national states fighting each other, because the idea of cooperation is very much a part of Europe’s DNA", says Ms Islam. And while contemplating domestic and global issues, a thought from the great man, Nelson Mandela, crossed my mind "Only free men can negotiate".

Wishing you a Merry Christmas and for 2019, my hope is to encourage you to create the stories that are a synonym for good work!

Specialist in Business English for when you need to ‘talk-the-talk’ Contact: Louise Chatwood, louise.chatwood@gmail.com, +386 (0)40 424 850

Yours, Tina Drolc Editor in Chief Winter Edition 2018 | The Slovenian Times

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Contents Page 4

IN THE SPOTLIGHT

4 Interview: Marjan Šarec, Prime Minister of the Republic of Slovenia

6 Interview: Shada Islam, Director Europe & Geopolitics, Friends of Europe

S&P GLOBAL RATINGS

8 Economic Research: Euro Weakness Is Not Over Yet

ECONOMY Page 14

10 Economy Overview: Ratings agencies improve outlook for NLB; Adria Airways gets EUR 4m capital

Page 20

injection; Koper rail track investment plan to be ready soon 12 IMAD: Economic growth remains high and broadly-based; Investments are intensifying 13 Interview: Igor Knez, Head of the Legal Department at the Chamber of Commerce and Industry of Slovenia 14 Banking and the new terms of trade 16 Outlook 2019: Slovenian economic policy and social wellbeing 17 Invest Slovenia FDI Award 2018 – Tribute to Stand-Out Performers 18 Interview: Andrej Lazar, M.Sc., Director of Real Estate Management, Bank Asset Management Company (DUTB d.d.)

20 Knauf Insulation Experience Centre – Transmitting passion to customers as the Slovenian plant celebrates 60 years 22 Green light for the Port of Koper Container Terminal Extension 24 Slovenia: World Leader in The Legatum Institute Natural Environment pillar 25 What Europe needs is THINK

POLITICS 26 Political Overview: Cerar discusses US-Slovenia ties, Western Balkans in Washington; Šarec not

very optimistic about the prospects of Brexit deal; New income tax scheme bringing NGOs around EUR 6m more in 2019 27 Column: Florida in Slovenia Page 34

INTERNATIONAL BUSINESS PARTNERS 28 TOPIC: What will be the focus of bilateral relations in 2019?

American Chamber of Commerce – AmCham Slovenia, British – Slovenian Chamber of Commerce – BSCC, The German-Slovene Chamber of Commerce and Industry – AHK Slowenien, Advantage Austria, Luxembourg-Slovenian Business Club (LSBC), Italian Trade Agency (ICE) 31 Slovenian entrepreneurship at a Crossroad

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Contents Page 40

GLOBAL PITCH 32 Growth of "blockchain" community in BTC City Ljubljana

LEADERSHIP CORNER 34 Emotional Bank Account

EDUCATION PERSPECTIVE 36 Interview: Prof. dr. Nada Zupan, Coordinator for International Accreditations, Faculty of Economics,

University of Ljubljana & Marjan Smonig, Head of Department, Internationalization and BSIS Coordinator, Faculty of Economics, University of Ljubljana 38 Interview: Dr. Daniel Susskind, Fellow in Economics at Balliol College, University of Oxford

Page 42

EXPERIENCE & LIFESTYLE SLOVENIA 40 December in Ljubljana: a varied program and festive atmosphere 42 Interview: Mr Kensuke Tsuchiya, President, Toyota Adria Group Ltd & Mr Gregor Mauko, Commercial

Director; Toyota Adria Group Ltd 44 Interview: Prof. Uroš Ahčan, M.D., PhD. is a head of Clinical Department of Plastic, Aesthetic and Reconstructive Surgery Ljubljana.

46 RogLab Project awarded at the EUROCITIES conference 47 Zoran Janković elected Mayor of Ljubljana for the fifth time 48 The Gala Event "A Tribute to Postojna Cave" – The Splendour and Glamour of the 200 Year Anniversary of Postojna Cave 50 Sportswear: And by Andraž – For those who are looking for something unique

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CULTURE

52 Litteræ Slovenicæ – Home to 60 Slovenian Books in Languages 54 EVENT GUIDE Page 52

Winter Edition 2018 | The Slovenian Times

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In the Spotlight Q In a report from May 2018, the OECD identified that only 14% of total tax revenues in Slovenia comes from income tax (the average in OECD countries being 25%), while it collects 40% from social contributions (the OECD average is 26%). According to their assessment, such a system increases the cost of work and discourages employers from hiring. They propose that the major part of the tax burden should be transferred to income tax instead. So what changes are proposed in this area for 2019?

A A comprehensive analysis of the taxation

Marjan Šarec, Prime Minister of the Republic of Slovenia

Interview: Marjan Šarec, Prime Minister of the Republic of Slovenia

Tax restructure high on the Government agenda

By Tina Drolc, M.Sc.

On 13 September 2018, the Slovenian Parliament nominated Marjan Šarec to be the country’s new Prime Minister. After the vote, Šarec claimed he would use his power to "make it better for everyone". The Prime Minister explains how his Government is planning to address certain imbalances in the area of taxation, especially the excessive taxation of labour and the relatively low taxation of capital. With healthcare a government priority, the Prime Minister stated that, next year, the Government would allocate a little over EUR 100m to reducing waiting times and to providing higher salaries in the healthcare sector.

system, which has to be tax-neutral and must be based on the appropriate ratio of taxation of all the relevant factors, will have to be carried out to find solutions to reducing the burden on labour. But the problem is complex, and there is no simple solution that everyone would find acceptable. In principle, it does not matter whether social contributions or income tax are reduced – the shortfall would have to be compensated for from somewhere else in either case. But intervention in social contributions is a difficult political task, as everyone would immediately think it would lead to a cut in already acquired rights to healthcare and pensions.

Thus there is very little room for manoeuvre when attempting a rational, argument-based discussion. The Slovenian Democratic Party (SDS), for instance, has filed a proposal for an amendment to the income tax legislation aimed at reducing the burden on labour. This proposal would lead to an income tax shortfall of EUR 350m, which could alternatively be taken from social contributions but would then have to be compensated for elsewhere.

Q Slovenia ranked 37th on the World Competitiveness Scoreboard published by the International Institute for Management Development (IMD Lausanne), which is a significant improvement on 2017, when it ranked 43rd. The factors behind the improvement include the skilled labour force, high education level and reliable infrastructure in the country, while the weaknesses comprise unskilled governments, an inefficient legal order, uncompetitive tax arrangements, unstable and unpredictable policies, an unfriendly business environment, inefficient working relationships, poor company management and difficult access to financial resources. Where and how will you address these areas or have you already started?

A It is good news that we are making progress in this research, but different institutions that conduct such research use different methods and approaches, producing a variety of differ-

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In the Spotlight As far as taxes are concerned, we have detected certain imbalances, especially in terms of the over-taxation of labour and the relatively low tax on capital. Furthermore, the taxation of property is poorly regulated. ent results. As far as I know, the institution you mention uses a method that is largely based on the subjective opinions of respondents, and Slovenia is widely known for being highly self-critical. Nevertheless, these findings undoubtedly highlight certain issues that should be taken seriously by taking appropriate measures. As far as taxes are concerned, we have detected certain imbalances, especially in terms of the over-taxation of labour and the relatively low tax on capital. Furthermore, the taxation of property is poorly regulated and so this is an area where we will look for possibilities for optimisation, which has to be properly balanced due to public finance sustainability.

It would be hard for me to agree with the general indication of an environment that is not business-friendly, as in such an environment it would be hard to achieve the high level of economic growth we are witnessing, and foreign investments, which are also on the rise, only further support my opinion. It is true, however, that there are certain areas where it is unfriendly, so to speak, and so it will be necessary to take action (via taxes, levies and administrative procedures). We are well aware that predictability is of key importance for the economy when it comes to business planning processes. Thus we will abide by the interpretation that the key factors of the business environment affected by the Government will not continue changing indefinitely. It is interesting that one of the weaknesses identified is inefficient work relationships, whereby economic operators are frequently occupied with complex and difficult redundancy processes, but there is no mention of a factor which, in my opinion, has become key, namely the labour shortage. In this area, we are working on simplifying, to the greatest extent possible, the process for obtaining licences for foreign workers.

Concerning the indications of unstable and unpredictable politics or incompetent governments, I only have this to say: these are a result of the current voting system and the will of the electorate. All of the former governments were more or less multiparty coalition governments; this is the first minority one. Implementing preferential voting would enable a voter to vote for someone whom they know well, consider to have grown into the challenge and trust to understand the needs and expectations of voters.

Q When you first visited the University Medical Centre in Ljubljana, you stated that "healthcare is this Government’s priority".

What are the measures that you are planning to take in order to tackle unacceptably long waiting lists and the poor working conditions and salaries of healthcare workers?

A It is true that healthcare is on this Government’s priority list, which is why we undertook in the coalition agreement that the Government would gradually increase the share of GDP dedicated to healthcare from 8.5% to 9%. Our goal is to establish quality, financially sustainable and accessible healthcare, distinguished by solidarity. This year, the Government has already dedicated EUR 35m to the reduction of waiting times, and next year this sum is projected to increase to a little over EUR 100m, some of which will also be used to increase the salaries of healthcare workers.

Following negotiations with the relevant trade unions, the approximate estimate of the financial impact is around EUR 60m. Let me stress that for other public administration workers such as the police, military personnel and education workers, the money for salaries and salary increases comes from the budget, whereas for healthcare workers the money comes from jointly raised funds in the healthcare fund.

Nevertheless, a considerable amount of funds will remain for reducing hospital queues which are, first and foremost, impermissibly long. The health minister is also starting to address other causes. Among other things, he is encouraging the providers of healthcare services to carry out all services for the benefit of their patients.

At the Ministry of Health, they are performing an in-depth analysis of backlogs across all regions. Based on this analysis, they will draw up concrete measures, as it will finally be clear why hospital backlogs are associated with certain providers. The Ministry has laid out guidelines based on the General Agreement for 2019, which – as has been the case so far – lay out the priority programmes specifically aimed at shortening waiting times. The Ministry will regularly monitor the data on backlogs and those waiting for treatment and compare them in terms of service provider productivity and efficiency. Based on the findings, we will draw up concrete measures aimed at shortening the waiting times at individual providers. The Minister has also called for hospital management to look into the efficiency of their employees, as the number of nursing staff in fact increased by 30.3% from 2006 to 2018, while the number of hospitalised patients only increased by a mere 2.73%.

Q Migration is among the key challenges for the EU and common ground on the matter has not yet been reached. How tough is this challenge (including in terms of the approaching crisis) – after all, control at the inner borders of the EU cannot actually be regarded as a safe, long-term solution?

A A joint response to mass migration remains one of the key challenges for the European Union. It is commonly believed that the challenge should be tackled primarily by dealing with the causes of mass migration, i.e. through increasing development aid to the countries of origin.

Conditions should be created in those countries such that people would not have to leave their homes, in other words. Without properly addressing this issue, it is impossible to speak of a sustainable solution to mass migration. Uniform support in the European Union can also be applied to the strengthening of joint control at the outer borders of the European Union, especially by remodelling the Frontex agency.

But the Member States have not yet come to an agreement in terms of the inner aspect of migration, specifically in terms of recasting the asylum legislation. At the moment, the absence of compromise on the matter does not seem to pose a big problem. Having said that, a problem could arise in the event of repeated mass migration, the like of which we witnessed in 2015 and 2016.

Q It seems that the dispute between Slovenia and Croatia over the state border has reached status quo. What is the next step toward finding a solution with our Croatian neighbours?

A After 20 years of failed negotiations, the question concerning the Slovenia–Croatia border has finally been resolved by the Arbitration Tribunal. Slovenia is already implementing the arbitral result to the best possible extent, without Croatian cooperation, and executing the laws passed in relation to the award.

Back in December 2017, Slovenia appealed to Croatia with a proposal to establish joint bodies that would implement the arbitral award.

Within this framework, a demarcation commission would also be established to draw up and implement the marking of borders. In this process, the hotspots on the territorial border could be slightly adjusted in accordance with the needs of local residents. For the sake of good neighbourly cooperation, Slovenia will remain persistent in encouraging Croatia to engage in dialogue about and the implementation of the arbitral award.

Winter Edition 2018 | The Slovenian Times

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In the Spotlight Q According to the Friends of Europe’s recent #EuropeMatters survey, 64% of Europeans are not convinced that life would be worse without the EU, while 49% think the EU is irrelevant. The resultsarequite telling.What change and reform does the EU need to make in order to appropriately addressthe needs and concerns of its citizens?

A The European public is more aware of the

Shada Islam, Director Europe & Geopolitics, Friends of Europe

Interview: Shada Islam, Director Europe & Geopolitics, Friends of Europe

Europe is trying to stand on its own two feet in a fragile international order

by Tina Drolc, M.Sc., MBA

Shada Islam is the Director of Europe and Geopolitics, Friends of Europe, a renowned and influential independent think-tank based in Brussels, and a visiting professor at the European Interdisciplinary Studies Department (Natolin (Warsaw)). She has built a reputation in both Asia and Europe as a leading commentator, analyst and writer, as well as a fresh and original thought-leader on EU-Asia relations. Last year, Ms Islam was selected as one of the 20 most influential women in Brussels by Politico magazine.

She is also a Solvay Fellow at the Vrije University Brussel.

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The Slovenian Times | Winter Edition 2018

EU than ever before and that is partly because of Brexit, which has shown rather ironically illustrated how important the EU is and how EU regulations impact our lives in so many ways.. I think its very good news that Europeans are more aware of the EU and its benefits..

The problem is that many people feel that EU institutions are detached and disconnected from the reality of European citizensand to change that, we need the voices of citizens to be brought more strongly into the conversation. We have a powerful European Commission, EU Council of Ministers and European Parliament, which has elected representatives of the people but what is missing is the voice of citizens’ movements. In many parts of Europe today, political parties are not seen as being representative of the desires and aspirations of people. This is why we see so many citizen movements flourishing across Europe. What we need to do is to channel their voice, their aspirations, into the European conversation.

We need to change the institutional structure a little and while waiting for that to happen, we have to find mechanisms to bring the voice of the people into the discussion so that they are heard by the policymakers. It has to be the Europe of the people, who are very much interested in the issues of climate change, better security and a social Europe, and these issues needs to be higher up on the EU agenda.

Q What are the communication channels though which citizens can get involved in the abovementioned dialogues?

A Citizen dialogues take place in different EU towns and cities, by national governments and EU institutions, but what is missing is a real channel so that all these conversations, proposals and recommendations can be followed by action. There are some ideas out there, including the idea of having a second Chamber in the EU Parliament that represents the peoples’ movements, however, at this moment, we have to make sure that the voices of the citizens is given directly to EU policy makers. It can happen in the current circumstances also. I was looking at some opinion polls and only about 40% of European citizens know that there are elections for the EU Parliament in May next year. So, in the coming days and weeks, we

In the Spotlight need to make sure that we publicise the fact that there will be these elections, which are important for the future of Europe and that more people vote. Traditionally, voter turnout at these elections has been quite low and that needs to change.

Q The G20 Leaders’ Summit took place in Buenos Aires (Argentina) on 30 November – 1 December. The summit theme was "Building consensus for fair and sustainable development". What are your thoughts on the discussions and conclusions, especially from the European perspective?

A Before I comment, let me first talk about the state of the global multilateral order because meetings such as the G7 and G20 provide a platform for countries to come together and tackle some key challenges facing everyone.

The multilateral, rule-based order is under challenge from America at the moment, the 'America First' policy that sees the U.S. retreating from some of its global responsibilities and it actually means the rule-based order that America contributed to after World War II is fragile. Today, the U.S. deliberately tries to undermine multilateral institutions and agreements, as shown by the U.S. not taking part in the climate change negotiations and the U.S.–China trade war. This has weakend the international order established in the aftermath of the Second World War. The G20, for me, was set up as a crisis mechanism after the financial crisis, where countries came together to support certain measures that were needed very urgently. It is a very useful platform for discussion among the world’s leading countries. In Buenos Aires, two countries dominated the agenda -America and China. The entire focus at the G20 was not so much the discussions between the 20 countries and the leaders, but the discussion between President Xi Jinping and President Donald Trump. This is the kind of world that we live in today. In my opinion, it is very important that the G20 came together and released statements that talk about the global order, fighting protectionism and combating climate change, but nothing can be done in today’s world unless some of the biggest powers work actively together, and at the moment you do not really see that.

Q Where is Europe placed between the US and China?

A Very good question! My view is that all of the challenges that we are facing on the global stage of 'America First', China rising, mean that many people across the world and within Europe are looking to Europe and its leadership.

It is time to actually take up the challenge of preserving and maybe reinventing, a multi-

Europe could play a very important role as the promoter and even the saviour of the multilateral order, but it is undermined by differences within the EU. national order, keeping it alive so that international cooperation continues, so that we do not have national states fighting each other, because the idea of cooperation is very much a part of Europe’s DNA. Multilateralism is what the EU is all about, but today there are great divisions and differences such as Brexit, which is something that the EU has come to terms with.

In addition, there are deep differences within the EU27 on multilateralism and on the values of the EU. Europe could play a very important role as the promoter and even the saviour of the multilateral order, but it is undermined by differences within the EU. The greatest threat to the EU really comes from this disorder and the differences on values, human rights and democracy within the EU. From the perspective of the international order, the EU cannot do anything alone, it needs other countries such as Canada, but also countries like China, India and possibly also Russia.

Q Consequently, the global security landscape is in a state of flux - increased tensions between NATO and Russia, the ongoing difficult Brexit negotiations and China’s more assertive global stance. The challenges are putting into question global security, while the next financial crisis is approaching. What kind of dialogue and measures are needed to start or strengthen the global security trend?

A It is true there are all the strengths and tensions that you have mentioned, and the EU and the international community need to work out new ways of working with each other. The fact that America is now in retreat, withdrawing from some of its responsibilities, its traditional way of acting on the world stage means that to a large extent, countries in Asia and Europe have to re-think the idea of depending exclusively on America’s military alliance and on America’s military power.

In Asia and in Europe there are countries that will need to think what happens when we cannot always rely on the U.S. as a loyal ally.

But the challenges: what we do next? In the EU’s case, there is a lot of talk about strategic autonomy, which means that the EU is slowly, but surely, trying to build up its own security identity and its own defence identity, and it is doing so through structured cooperation, through discussions which focus on ways in which the Europe can stand on its own two feet, whether from the military and security point of view, on the international stage or on

the economic front. We are looking at a world which is changing, a world in transition where power is shifting from the west to the east; where economic and political power are shifting to the emerging economies. We have Russia, which is feeling very uncertain and China, which is a rising power, while for many Russia is more of a declining power. There is also Vladimir Putin, a president who is unpredictable, but one who is determined to make Russia a global player. In all of this geopolitical world order, the European Union can play a stabilising role.

Q Looking at the smaller regions - the future of the Western Balkans is an issue that is moving swiftly up the European agenda.

Recently, the Friends of Europe addressed the political, economic and social issues that affect the Balkans. What were the main outcomes of the 19th summit?

A The Western Balkans are very important neighbours to the EU, which wants to bring them into the EU club. Just last year, Jean Claude Juncker opened a new 2025 European perspective for Serbia and Montenegro as potential, possible members of the EU, but this is easier said than done. It is still very true that the Western Balkans have so many domestic challenges to overcome before they are ready to join the EU. Looking at it from the EU side: the EU’s most recent enlargement brought a number of countries which now, when we look back, were perhaps not ready for EU membership. There is concern about those countries which are already in the EU, having problems with corruption, crime, human rights and values, the rule of law is under threat and the EU has, according to Article 7, procedures against Hungary and Poland. It becomes very difficult for the EU to deal with these problems once these countries are in the EU. In addition, there are some historical disputes within the Western Balkans that are not yet resolved and that is the reason the EU is pushing so hard for a resolution of the dispute between Kosovo and Serbia. At our conference, the word transformation came across: economic transformation, political, social an digital transformation and this all requires the countries in the region to work together. Without this transformation taking place, extending membership to those countries would not be beneficial for them or for the European Union.

Winter Edition 2018 | The Slovenian Times

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Regional Insight in Association with S&P Global Ratings

Economic Research:

Euro Weakness Is Not Over Yet

By Sylvain Broyer, Chief Economist, EMEA, S&P Global and Marion Amiot, Senior Economist, S&P Global

Key Takeaways • We expect the euro to stay weak against the U.S. dollar into mid-2019.

• Diverging monetary policy between the U.S. Federal Reserve and the ECB, as well as political uncertainties in Europe, such as the Brexit negotiations, are the main factors weighing on the currency.

• Another factor is disappointing eurozone growth this year relative to the U.S, which has led us to lower our GDP forecast for the European Union to 2% growth in 2018 and 1.7% in 2019 (from 2.1% and 1.7% in our June forecast).

• As monetary policy tightening by the ECB starts in Q3, 2019 the focus will shift back to long-term macroeconomic fundamentals, such as purchasing power parity conditions and the eurozone’s current account surplus, which should support a recovery of the euro’s value against the dollar toward the end of 2019.

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The Slovenian Times | Winter Edition 2018

After a strong start to the year, the euro was back at US $1.13 in the summer, its lowest level since mid-2017. A relatively weaker eurozone economy, faster U.S. Federal Reserve tightening and political uncertainty have made euro assets relatively less attractive than their U.S. counterparts, shifting money away from the euro. The euro has now recovered slightly from its lows, trading at US $1.18 at the time of writing. However, we think the dollar’s strength is set to continue over the next three quarters.

While the unwinding of a high number of speculative (non-commercial) positions accelerated the euro’s depreciation in the second quarter, these positions are now more balanced. This probably reflects a high level of perplexity among investors over the short-term direction of the two biggest world currencies.

We therefore think macroeconomic fundamen-

tals will play a stronger role in determining the trajectory of the exchange rate over the coming quarters. Although a rebound in growth could put some upward pressure on the euro, a continuous rise in monetary policy divergence and political risks, such as Brexit negotiations and Italy’s budget negotiations, are set to exert downward pressure on the currency at least until mid-2019. As a result, we do not see much potential for the euro to appreciate over the next three quarters. From the third quarter of 2019, the start of the European Central Bank (ECB) hiking cycle and what we expect to be a period of less heavy political risk, should support an appreciation of the euro against the dollar, especially given that the euro looks undervalued compared to the eurozone’s strong current account surplus or purchasing power parity exchange rate.

Economic expansion has shifted to a lower gear A disappointing growth performance, relative to the U.S. since the start of the year, is one major factor that has brought the euro-dollar exchange rate back to its mid-2017 levels.

While our growth forecasts in March foresaw the eurozone growing by 2.3% this year and 1.9% next, we now project only 2% expansion for 2018 and 1.7% in 2019. Domestic fundamentals remain strong owing to the ongoing strength of the labour market. However, the eurozone’s industry has started to suffer from weaker external demand and rising uncertainties over the shape of trade relations. Weaker foreign orders, especially in the car industry— which additionally slowed to adjust to new emission standards--suggest last year’s stellar export performance will not be repeated this year. What’s more, emerging markets, which have been a key driver of the world trade recovery, are now set for a slowdown after a period of stress since the period of dollar strength.

Regional Insight in Association with S&P Global Ratings But the second half of 2018 could deliver upside surprises Nonetheless, eurozone indicators are no longer disappointing. Survey data is no longer falling, pointing to a stabilisation of economic growth at around 0.4% per quarter over the next few years. Even if growth in the U.S. remains strong, owing to the fiscal stimulus, the eurozone could deliver some upside surprises in the short term. We expect a small rebound in growth in the second half and wage increases should start translating into inflationary pressures. This could put some upward pressure on the euro against the dollar in the short term.

Monetary policy will keep diverging until the ECB’s first rate hike in Q3, 2019 Despite some potential for upside surprises in terms of growth in the latter half of 2018, the continued divergence in monetary policy is likely to be a stronger drag on the European single currency until mid-2019. With the Fed increasing the pace of its rate hikes since the middle of last year, and the ECB rates remaining at a standstill, short-term rates between the U.S. and the eurozone have diverged more quickly, contributing to this year’s euro depreciation. The markets--like us--do not expect the ECB to raise rates before the third quarter of next year and envisage that the Fed will raise rates twice more this year. However, while the markets have only pencilled in two more Fed rate hikes for 2019--less than the median of the dot plots (Fed members’ predictions) suggest, in our assessment, the Fed is likely to hike three times next year. What’s more, considering that the Fed followed the dots this year, market participants might potentially scale up their expectations.

By contrast, the European and U.S. central banks’ monetary policy stance will likely start to converge again from 2020. By then, the ECB will only be at the start of its normalisation path.

Looking at estimates of the equilibrium rate, we see the ECB raising rates twice per year in 2020 and in 2021. Meanwhile, the Fed is set to stop raising rates as the positive effects of the fiscal package start to fade and the economy settles to its potential growth rate. Higher rates of returns of euro assets will increase their relative attractiveness, putting upward pressure on the euro.

Political uncertainty will play in favour of the dollar until early 2019 Political uncertainty is now a bit less acute than over the summer when the emerging

market turmoil and uncertainty over Italy’s new government trajectory drew investors to safe-haven currencies like the Swiss franc or U.S. dollar. That said, key questions such as the shape of international trade, the outcome of Brexit and Italy’s budget, will continue to hold the markets’ attention until they appear to be resolved. This is unlikely to be before the beginning of 2019 in the case of Brexit. What’s more, EU parliamentary elections in May 2019 could add another layer of uncertainty if eurosceptic parties perform well. Against this backdrop of policy uncertainty, markets participants could take a negative view of the euro, limiting the potential for its appreciation over the next two to three quarters.

and net foreign asset positions, suggests the euro is undervalued against the dollar by about 7%. We therefore expect the euro to appreciate as monetary policy divergence starts to diminish, the political context in Europe becomes clearer and the focus shifts back to long-term dynamics in the second half of 2019. As such, the eurozone’s move into current account surplus since 2012 would speak for a stronger currency, while the projected increase in the U.S. twin deficit, a result from the current fiscal package and the late cycle recovery, should put downward pressure on the dollar.

Added to this, the global trade war could also affect the dollar exchange rate. U.S. trading partners could be tempted to make use of the exchange rate to offset the tariffs they face on U.S. imports.

This would lead to a further strengthening of the dollar in effective terms.

Long-term fundamentals support euro appreciation toward the end of 2019 Although we expect the dollar’s strength to persist over the short term, measures of currency misalignment suggest the euro-dollar exchange rate is undervalued. From the perspective of purchasing power conditions (PPP), for example, the euro looks 15% undervalued.

Furthermore, a real effective exchange rate model, looking at productivity differentials Winter Edition 2018 | The Slovenian Times

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Economy Overview

Ratings agencies improve outlook for NLB In December 2018, the rating agency, Standard and Poor’s (S&P), upgraded the outlook for NLB bank from developing to positive, while affirming the long-term issuer credit rating at BB+ for Slovenia’s largest bank. According to a release from NLB, the rating is based on the bank’s strong performance and the partial privatisation.

The upgrade reflects those of Moody’s and Fitch which upgraded their ratings by two notches to Baa2 and by one notch to BB+, respectively. Moody’s kept the outlook on the long-term deposit ratings positive and Fitch revised its outlook from evolving to stable. The rating agencies started to improve NLB’s ratings following the partial privatisation of the bank in which the state reduced its stake in the bank to 35% following a successful initial public offering in November 2018.

Infrastructure Minister Alenka Bratušek addressed port operator, Luka Koper, at a reception held before the end of the year. Photo Mitja Volčanšek/STA

Koper rail track Adria Airways gets EUR 4m capital injection investment plan to be ready soon Brnik, 7 December - 4K Invest, the German owner of Adria Airways, finalised a EUR 4m capital injection in to the Slovenian carrier, with a planned EUR 10m recapitalisation still in the pipeline for the first quarter of 2019, Adria stated.

According to the company’s release, the funds will be used for development and growth. This time, Adria apparently received cash as opposed to the previous accounting manoeuvres by the owner, according to news portal, Siol. Siol also reported that 4K Invest had reclaimed the Adria trademark which, in 2016, it had sold to a company connected to the German fund. With the sale, Adria avoided insolvency. The troubled carrier, which was close to losing its licence due to financial issues, has been facing additional trouble recently. There were reports about Adria having to cut short a flight from Hurghada to Ljubljana due to a lack of fuel, while an aircraft had to return to Ljubljana Airport shortly after take-off due to "indications of smoke onboard the plane".

Adria posted a net loss of EUR 5.4m in 2017 after finishing in the black the year before due to the sale of its brand. Last year’s negative result was attributed to rising fuel prices as well as to the termination of cooperation with two European carriers. The company announced in October that it would not manage to get out of the red this year either, mostly due to high fuel prices.

Brnik, Adria Airways; Photo Tamino Petelinšek/STA

The government is due to discuss the investment plan for the second rail track between the Port of Koper and the inland hub of Divača early next year, according to Infrastructure Minister Alenka Bratušek on 7 December 2018.

She said that "we have never been so close to actually starting construction".

Talking at an end-of-year event at the port operator, Luka Koper, she said that all the relevant bodies would get the document before the end of the year. She added that the previous team at her ministry had often said that everything was ready for construction to begin. "But my team at the ministry realised quite quickly that everything was not that peachy".

Until September 2018, the Ministry was headed by Peter Gašperšič of the now junior coalition, Modern Centre Party (SMC), while Jure Leben, now the Minister of Environment and Spatial Planning, was in charge of the second rail track project. Now, three months into her term and after intensive work, the ministry is close to completing the investment program that will allow construction to start. Currently, archaeological teams are being dispatched to seven locations along the planed course of the track. The archaeologists are expected to finish their work by spring. Several rounds of preliminary excavations have already been performed along the course since 2009.

Source: STA

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The Slovenian Times | Winter Edition 2018

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Economy

IMAD:

Economic growth remains high and broadly-based; Investments are intensifying In the third quarter, high and broadly-based growth of economic activity continued.

The Institute of Macroeconomic Analyses and Development (IMAD) finds that the key factors of growth are strengthened investment activity and exports, and the growth of government spending is also solid. Despite the very favourable trends in the labour market, household consumption has not strengthened according to the Statistical Office of the Republic of Slovenia.

Growth in GDP has also significantly exceeded average growth in the EU.

Year-on-year GDP growth was higher in the third quarter (4.8%) than in the previous quarter (4.3%). The growth of economic activity (1.3%) also accelerated in relation to the previous quarter (0.9%) and exceeded the growth in the EU average (0.3%).

Graph: Quarterly GDP growth in Slovenia and the EU The quarterly growth of the real GDP (%)

Slovenia

EU

Institute of Macroeconomic Analyses and Development - IMAD

Source: Eurostat, Statistical Office of the Republic of Slovenia * Deseasonated and adjusted for working days

"Growth of economic activity continues to be broadly based. Investments have been noticeably strengthening for several quarters, especially in construction, and the growth of business investments to increase production and service capacities is also continuing," explains Maja BednaĹĄ, Acting Director of IMAD. This is further influenced by high capacity utilisation, better financial status of companies and favorable financing conditions.

Despite the growth slowdown in the export sector of the economy that follows the trends of the most important trading partners, exports remain an important driver of growth. "The slowdown in

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export growth we attribute, in particular, to lower growth in foreign demand, with the slowdown in economic activity by our key trading partners," explains IMAD. In line with the movement in export activity, the growth of production in manufacturing also slowed.

Household spending is somewhat surprisingly at last year’s level. The improvement of the labour market situation is continuing. The number of persons in employment continues to increase rapidly, wage growth is higher (in the third quarter of 3.0%). In the absence of (adequately) skilled workers, the employment of foreign nationals is increasingly contributing to the growth of people in employment (about half in the third quarter), accounting for about a tenth of all persons in employment (mostly in construction and some services).

The Slovenian Times | Winter Edition 2018

Economy Interview: Igor Knez, Head of the Legal Department at the Chamber of Commerce and Industry of Slovenia

We need a clear invitation for the best workers to come and work in Slovenia

By Tina Drolc, M.Sc., MBA A In December 2017, the government, together with CCIS, set up a task force to find a way to shorten the time needed to get a work permit. On average, the procedure takes up to four months to complete, which in times of economic growth and high demand is far too long. We defined a few steps to be taken in order to shorten the time needed when employing a foreign worker.

Igor Knez, Head of the Legal Department at the Chamber of Commerce and Industry of Slovenia

1. Set up a register of companies with higher than average added value (red carpet procedure).

2. Amend the Agreement between the Government of the Republic of Slovenia and the Council of Ministers of Bosnia and Herzegovina on the employment of citizens of Bosnia and Herzegovina in the Republic of Slovenia.

3. Ratify an Agreement between the Government of the Republic of Slovenia and the Republic of Serbia on the employment of citizens of Serbia in the Republic of Slovenia.

4. Set-up an e-procedure, that would allow a faster process for issuing work permits; this was done before the summer of 2018.

5. Expand the list to include those sectors where there is a skill shortage.

6. Recruit additional employees at the Employment Service of Slovenia to shorten the time for issuing work permits.

short-term actions that could be taken to improve the PA environment from a competitiveness perspective?

A Little has been done in recent years to better the executive capacity. There are many procedures that are digitally accessible, but a stronger commitment for better management should be made in the government sector. Greater weight in decision-making and responsibility should be placed on the team managers. There is also a strong tendency for over-regulation, stemming from the fact that government employees are averse to taking responsibility for decisions.

Instead, they see a lack of clear guidance in the legislation, thus creating new administrative burdens and higher risk for companies. In light of this, CCIS suggested that a review of legislation should be made and clear commitments by the ministries that up to 10% of all legislation should be reviewed annually and a "one in one out" principle established. From a control and inspection point of view, good practices should be implemented based on the primary authority principle and operation of UK inspections or a clear and predictable Estonian overview – a checklist for inspections that is made public.

Slovenian companies struggle with staff shortages, especially in logistics, transport, construction, metal-working, the electrical industry and Information Technology. "As long as the income tax, Q Demographic and technological changtogether with the very high percentage es have boosted demand for a highly-skilled workforce, however, taxes in Slovenia are of social contributions that have to be not favourable. What are your thoughts? paid compared to our neighbours and Discussion on a new Strategy of Economic Micompetitors in the EU is above the gration has begun which should further define A It is no secret that CCIS has, for some time, average, Slovenia and the Slovenian how migration can positively impact the Slo- demanded from the government a reshape of venian market, with a greater focus on highly- income tax. Even the OECD has put pressure economy will trail behind the best.", skilled workers and a better integration policy. on Slovenia to make changes that would allow highlighted Mr Igor Knez, when for a better environment for highly-skilled recently presenting the proposals of the Q According to the IMAD Development workers. In times when there is a shortage of Chamber of Commerce and Industry of Report 2018, the effectiveness of public staff we must stay close to our main competiadministration, which is an important fac- tors. As long as the income tax, together with Slovenia (CCIS) to the government.

Q Due to staff shortages, many companies decide to hire workers from abroad, however, the administrative procedures are complex. What are the steps that CCIS has been taking in this area?

tor in the country’s competitiveness, is low.

The executive capacity that measures the strategic management of public institutions in Slovenia is very low compared to other EU countries. Following the development of eGovernment services, Slovenia ranks around the EU average. What are the

the high percentage of social contributions that have to paid compared to our neighbors and competitors in the EU, is above average, Slovenia and the Slovenian economy will trail behind the best. We need to create a clear invitation for the best people out there to come and work in Slovenia.

Winter Edition 2018 | The Slovenian Times

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Economy

Banking and the new terms of trade "The past is a lesson for the future." /Cicero/

By Dr France Arhar

Lately, we have witnessed a number of significant events go down in financial history. In August 2018, 20 years had passed since Russia declared bankruptcy with the primary reason being a substantial drop in the prices of resources, especially oil which quoted at US $9 per barrel. In September, we looked back on how Lehman Brothers, a major American bank, faced bankruptcy. Once a bank of this stature collapses – in the 19th century it issued dollar notes based on the presidential patent, as the American Central Bank was not established until 1913 – the loss of trust is immeasurable and affects the entire financial market.

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The Slovenian Times | Winter Edition 2018

On 1 January 2019, the euro is celebrating its 20th birthday. Born into a family of 11 European states, a political decision was made that the euro would be accepted in two states that failed to meet the Maastricht criterion for public debt which had been set at 60% GDP, namely Italy and Belgium, which set a bad example for the future and bore consequences that, to this day, still raise many a question about the common European currency.

The beginning of the financial crisis challenged the member states with a Hamletian 'to be or not to be' concerning banks and their impact on both the European economy and public trust. To limit the damage, a clear decision was made: member states would help banks, regardless of who they are owned by, with money and guarantees. The European Commission announced that in the period from 2009 to the end of 2011, the total monetary state aid to banks amounted to EUR 1.6 trillion, while the amount of state guarantees was three times as high. Let us not forget that the fear of losing public trust resulted in the adoption of special laws which ensure that, in the event of bankruptcy, savers receive 100% of their deposits back, irrespective of the amount deposited. In Slovenia, such a law was passed in November 2008, remaining in force until the end of 2010.

The beginning of the banking crisis in Slovenia was not in sync with the events that unravelled across Europe and in the USA. This was due to the different structure of the banking system’s balance sheets which indicated up to 75% of claims on companies and the population. As seen in Liikanen’s report on where to look for the cause of the banking crisis, which was drawn up for the European Commission in October 2012, the assets of Deutsche Bank, the largest European Bank, only comprised 23% of such claims, while the remainder was in financial assets. The French, Banque Agricole, reported an even lower share of such claims, which was at 18%. In other words, the European average amounted to less than 50%.

Based on the analyses and findings contained therein, the report recommended the European Commission to start a structural reform of banking that would demand all major banking systems to have a legal entity designated for trading and a separate legal entity for operations of the universal bank. Six years later, we can see that this reform remains confined to paper. Major banking systems are clearly not in favour of such a division and what is more, even senior politicians have refrained from voicing their support for it, meaning that not everyone has to abide by the same rules.

The next among the consequences of the crisis, aimed at consolidating financial stability, was the decision to establish the European Banking Union, which was to be based on three pillars: the Single Supervisory Mechanism

(SSM), which directly supervises 118 European systemic banks; the Single Resolution Mechanism (SRM) with a fund dedicated to aiding failing banks, which was supposed to raise capital of EUR 65bn; and the European Deposit Insurance Scheme (EDIS). SSM was established in November 2014. In the first year of their operations it was found that despite the uniform European regulations – namely the Basel Accords, European directives, ECB decisions and EBA provisions – banks still use 7,000 different models to assess risk; that member states used a total of 155 local competencies for different interpretations of the directives; and that banks – for instance in Italy, France and the UK – have defined default of the debtor in mortgage loans not as 90 days, but rather as 180 days. It is difficult to foresee when exactly the banking union will be brought to life. EDIS is especially problematic as the situation differs from one member state to another.

But, over the course of the last 10 years, it was the European Central Bank (ECB) that contributed the most to solving the banking and economic crisis. With its unconventional monetary policy, it has completely changed the terms of trade in the financial market. Primarily, the two measures which have been taken so far: the implementation of the zero base interest rate, which has influenced the formation of negative values of EURIBOR variable interest rates and the associated negative deposit interest rates, meaning that banks have to pay 0.4% for their excess liquidity to the ECB – the creditor pays interest to the debtor, which is something banking history has not yet witnessed.

This interest policy has forced the member states into additional borrowings, both within and outside the European Monetary Union – irrespective of the Maastricht provisions. At the same time, it is an abatement to member states to preserve their domestic status quo and not implement any structural reforms (Italy’s debt has been increasing consistently, already having surpassed 130% of Italian GDP, and it is projected to increase an additional EUR 274bn; Slovenian debt is also more than 70% of GDP and accounts for a nominal EUR 33bn). In other words, peacetime public debt has never been as high in modern history as it is today. Moreover, due to the symbolic interest rate, the transfer of proceeds from creditors to debtors that are now being witnessed has not been recorded in decades.

As the growing inflation causes the interest rate to normalise once again, the question that will remain is, "How will Member States service their debt or are we in for a new wave of bankruptcies?" This policy works in tandem with a measure that the ECB has been implementing since March 2015, which comes in the form of purchasing government bonds as well as some commercial bonds, with numbers as high

Economy Dr France Arhar has been a senior adviser to the President of State since 1 January 2018. In the past, Dr Arhar was the General Manager of the Slovenian Banking Association and a member of the European Banking Federation; he was Chairman of Bank Austria Creditanstalt and later UniCredit Banka Slovenije; he served 10 years as the first Governor of Banka Slovenije; and was the Governor for Slovenia at the IMF. In 2001, Dr Arhar was awarded by the President of Slovenia for his role in establishing the Slovenian monetary system and in 1994, Wirtschaftspolitischer Club Berlin-Bonn recognised his guiding role in monetary policy as the Governor of the Central Bank of Slovenia, awarding him 10,000 German marks which he donated to the children’s hospital in Ljubljana.

Dr France Arhar

as hundreds of billions. Combined with high liquidity rates, this monetary policy has ‘broken down’ the money market, which is home to commercial banks, as there is no longer a need for the latter to borrow from one another. Aside from that, this interest policy has a direct impact on banks net interest margins and consequently, their entire income policies.

Ultimately, it also increases systemic risk. Why is that so? In most universal banks, the socalled "primary sources" comprise deposits made by the population and businesses, and these represent the most important source for the operation of financial intermediaries. If a bank is facing an insufficient demand for credit, it places its assets in various financial forms but is, at the same time, unable to charge negative interest rates to depositors. If that were to happen, depositors would demand payouts of their deposits in banknotes, as these represent interest-free receivables from the central banks that issued them. But as this does not happen, such a passive interest rate is symbolic and close to zero value. As a result, savers do not decide to report their financial assets, meaning that insight into these assets is only available a vista, increasing the liquidity risk in the event of fear or distrust, which can originate from domestic or foreign markets.

All these facts, along with a number of others related to money and political decision making, greatly impact the operation of banks and their results. The declining net interest margin, which in Slovenia accounts for approximately 1.80%; high level of own capital, which with a balance sheet total of EUR 38bn amounts to EUR 4.7bn; low credit demand; and new investments in banking technology brought about by digitalisation, are making

As the growing inflation causes the interest rate to normalise once again, the question that will remain is, "How will Member States service their debt or are we in for a new wave of bankruptcies?" it difficult to achieve the desired results in the form of return on invested capital. When inspecting last year’s results, we can find that the latter amounted to around 5.6% in Europe, whereas it peaked at 9.6% in Slovenia. That being said, we must not forget that the results are also better due to the release of provisions for bad credit, as the economic conjuncture is the best and most just form of rehabilitation.

The consolidation of the banking system in the form of shrinking the banking network, the operation of an unregulated ‘financial system in the shadows’ which according to ECB’s estimations accounts for 40% of all financial transactions, demands for higher capital, an interest policy with no historical basis and a number of other motives all impact bank prices on the free market. Since we know that for the most part of this year the shares of renowned European banks quoted lower than last year – e.g. Deutsche Bank at 30%, BNP Paribas the highest at 70%, Commerzbank at 40%, Unicredit at 50% and Societe Generale at 50% of the book value – we can assess that the sale of NLB shares at EUR 51.50 per share was successful, especially since the market knew that the sale was forced by EU requirements, and because a significant share still remains with the state and, thus, the largest possible impact on the business policy and daily operations of the bank.

Final remarks In his work, Rhetoric, Aristotle noted that "a man is ready to face the truth once they are shocked or experiencing a crisis." I hope that the banking crisis has shaken everyone, especially the 'living capital' which cannot not seem to find its place in the asset balance sheets of banks and which are listed under expenses in the balance sheet of success. I am referring to people: to owners, to bank employees at all levels, to politicians and to the entire population.

Calls to ethical and professional behaviour have become an additional imperative that in some countries – e.g. in the Netherlands – reflects in the form of a banking oath taken in the presence of two witnesses who act as guarantors for the fair and faultless acting vis-à-vis the contracting parties. At the same time, we must not forget that the multitude of regulations and different commandments must never replace human trust as the latter must be earned with actions through a longer period of time. However, we also know that it can be lost in a matter of a day when my words will have lost all their value. At the end of the day, when it comes to money, the whole world acts the same regardless of race, gender or religious beliefs.

Winter Edition 2018 | The Slovenian Times

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Economy Outlook 2019:

Slovenian economic policy and social wellbeing On 6 December 2018, the Manager’s Association of Slovenia (ZM) has released a new professional publication entitled Outlook 2019 (Pogled 2019). Its objective is to spark a comprehensive debate on the economic conditions and economic policy, promoting awareness of our interdependence in creating social progress and, ultimately, enabling better decision-making to increase the material wellbeing in Slovenia.

The release of the publication was commemorated at an event entitled "Slovenian economic policy and social wellbeing", organized by the Delo media company at the Faculty of Economy, University of Ljubljana. The keynote speaker, Thomas Wieser, the former President of the EU Economical and Financial Committee.

He emphasised the importance of being aware how interdependent EU member states and EU institutions are in creating the economic policy and, at the same time, social wellbeing in Europe. According to Wieser, "the future will see a community joined under the common European roof of well-functioning and closely cooperating institutions and member states. But bringing such a vision to fruition is not only up to Brussels-based bureaucrats, but rather all of us, each institution and every member state."

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The Slovenian Times | Winter Edition 2018

Photo: Voranc Vogel, Delo

Social wellbeing will depend on how we address demographic challenges

If the rule of law operates well, this is also the case with the economy

Dušan Mramor, the president of Observatory ZM and one of the contributing authors of the publication, highlighted the significance of an enlightened and conscious type of management, which must aid in solving broader social issues. He called attention to the highly topical problem of population ageing in Slovenia.

Social wellbeing also depends on how we tackle demographic challenges. Among the possible solutions, he also lists "increasing labour productivity, increasing the share of the labour-active population and, if that does not suffice, amending the pension system as the current one is unsustainable when combined with real economic forecasts."

Also making a reference to enlightened management was Ali Žerdin, the Editor of Sobotna priloga Dela, who has made it his mission to cooperate on assembling a creative and innovative coalition. In this progress-oriented alliance, the economy should start cooperating with science, education and culture, something which was also evidenced by historical examples of economic crisis resolutions. At first sight, these have harmed economic interests by implementing higher taxes, but they have also brought about long-term social wellbeing.

"Imitating this concept can place Slovenia on the launching pad and send it to the moon, helping us achieve a developmental breakthrough," finishes Žerdin.

Verica Trstenjak from the Faculty of Law, University of Maribor, was critical of the negative attitude of the public towards successful individuals in the society: "Social wellbeing cannot be achieved if those who have succeeded and own something feel like they have to defend their hard work, savings and success. It can only be the case once successful property owners are motivated – precisely due to the values of the society – to help those who are less privileged. Both by paying higher taxes as well as with solidarity." She called attention to the importance of the rule of law, "In Slovenia, we have an issue with the judicial system.

If the judicial system is inefficient, the economy cannot be efficient either. We have the highest judges-to-population ratio, so we must demand a higher efficiency and responsibility from them."

Economic forecasts for 2019 were presented

by Velimir Bole from the Institute of Economy.

Following its cyclical peak at the end of 2017, the economy has begun cooling: "Economic contraction in the eurozone is becoming increasingly pronounced, preceding the one experienced in Slovenia for a quarter of a year. It is fuelled primarily by the decline in export, but the shortage of labour force is also on the rise. The recovery, which is slowly waning, failed to enable the realisation of all production potentials of the economy, neither in Slovenia nor in the broader euro area."

Economy

Invest Slovenia FDI Award 2018 –

Tribute to Stand-Out Performers The Slovenian 2018 FDI Award celebrates the role of foreign investors in job and value-added creation, as well as in R&D, technology and regional/international expansion. Commended for investment retention, expansion, performance management, but also for encouraging innovation and knowledge-intensive business and attracting talent, the 2018 FDI Award winners are household names with international reach.

The royal flush of investors with the highest impact on Slovenia’s economic growth for 2018 includes RLS, Fraport Slovenija, Bosch Rexroth and cargo-partner. These limited liability companies are registered in Slovenia, employ at least 50 people, their value-added per employee is at least EUR 35,000, they are sound and profitable, have no overdue tax debts and their 12-month credit rating is stable.

Rotary and Linear Motion Sensors or RLS d.o.o., Komenda, the winner in the category of research and development orientation and excellent business results, specialises in the design and manufacture of magnetic encoders and components for industrial clients worldwide . The company continues to upscale the business to realise its full potential as demonstrated by a revenue rise of 18% in 2017 to EUR 21m, and EUR 99,000 in value-added per employee. The fact that RLS’s strategic partner is the UK-based Renishaw, a global engineering company with core skills in measurement, motion control, healthcare, spectroscopy and manufacturing, mean that RLS will continue to outperform their competitors.

The award for long-term commitment to Slovenia as a prime investment location went to Bosch Rexroth d.o.o. from Škofja Loka.

The company operates within the framework of Bosch Rexroth AG, a wholly owned subsidiary of Stuttgart-based Robert Bosch GmbH. Acclaimed as one of the leading specialists for tailored solutions in drive, control and moving technologies, it established operations in Slovenia, in Železniki, as Mannesmann Rexroth in 1998. The Slovenian company generated earnings of EUR 40.5m, of which exports accounted for 99.12% of that figure, and its 286 employees achieved EUR 44,400 in valueadded per employee. Based on its financing and profitability ratios, the company’s outlook is stable.

Fraport Slovenija d.o.o. from Zgornji Brnik, a 100% owned subsidiary of Fraport AG based in Germany operating around 30 airports across the globe, received the highest accolade as the best employer in 2017. Fra-

port AG acquired Aerodrom Ljubljana d.d. in March 2015 and took the necessary steps for Slovenia’s most important gateway to turn profitable. Since then, Fraport Slovenija has increased value-added per employee to EUR 76,000, posted earnings of EUR 42m in 2017 and its plans to expand the business with a call to recruit more employees to support the current employee base of around 400 staff. The company’s basic ratios indicate stable operations in the forthcoming years.

A special award for greenfield investment went to the Slovenian subsidiary of cargopartner, an Austrian info-logistics provider offering a comprehensive portfolio of air, sea and land transport and also warehousing solutions, and is present in more than 30 countries around the world – cargo-partner d.o.o., Ljubljana – for the investment in a logistics and distribution centre built in the vicinity of

Aerodrom Ljubljana worth EUR 25m. The new facility will add 30 new jobs to the company’s existing headcount of 90, EUR 45,500 in valueadded per employee and the nearly EUR 34m generated in revenue in 2017 means that the Slovenia company is firmly on track for sustainable growth.

These awards honour all those involved in putting investment to work to the benefit of both owners and consumers, as well as Slovenia’s public agency tasked with investment promotion and facilitation. SPIRIT’s efforts in ensuring that companies investing in Slovenia are well settled and supported are also worth noting as the agency is dedicated to attracting FDI and to aftercare services.

Source: SPIRIT / Invest Slovenia

Winter Edition 2018 | The Slovenian Times

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Economy Interview: Andrej Lazar, M.Sc., Director of Real Estate Management, Bank Asset Management Company (DUTB d.d.)

Investors see the opportunity for safe earnings in Slovenia

By Tina Drolc, M.Sc., MBA

Andrej Lazar, M.Sc. is the Director of Real Estate Management at the Bank Asset Management Company (DUTB d.d.). He discusses with The Slovenia Times the trend in real estate sales in 2018 and the interest in the Slovenian real estate market from abroad, mainly from within Europe. Asking him whether the blockchain trend will hit the real estate market, Mr Lazar believes it will in the future, although the very distant future.

Q How would you characterise the sale of DUTB business and residential property in 2018? Does it differ from the plan?

A I cannot reveal figures before the release of the annual report, however I can say that sales will be lower than last year due to delays in two key projects: Koper Gate and a business centre in Belgrade. Koper Gate is a 164 apartment complex in Koper where we renewed the apartments, similar to Celovški Dvori and Nokturno, and due to the boom in the construction market, we had a problem finding the contractors, prolonging the project. And if we are not going to sell the whole unit now, we will start selling each apartment separately next year from March 2019.

The second project is a business centre in Belgrade, which is completely sold out and is of great interest. We were convinced that the project, worth about EUR 13m would be carried out this year, but due to Serbian legislation we had to make additional analyses. The reason is that we are the owners, while the company is in Belgrade and it was necessary to open bank accounts in Belgrade so that the offers could also be submitted by Serbian citizens.

Both projects have a total value of more than EUR 30m and both are prolonged, which again means lower sales this year - last year it was around EUR 100m - and this year will surely be lower. In addition, DUTB has a life cycle as

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The Slovenian Times | Winter Edition 2018

an institution and all the good real estate was rented first, while the balance are selling more slowly. At the same time, we are noticing a lot of interest from foreign investors interested in certain land and real estate.

Q From where is the most interest?

A In October, we were at the Munich EXPO Real 2018 and compared to previous years, there was considerable interest this year in Slovenia. Investors came to us from all over Europe and also, the Middle East and China. Of course, the most are active Europeans, including the Slovaks, to whom we have already sold one piece of land and they are interested in othAndrej Lazar, M.Sc., Director of Real Estate Management, Bank Asset Management Company (DUTB d.d.)

ers, and we also talked with investors from the Netherlands and London. Slovenia is perceived as quite a safe country and as other markets are already saturated with high prices, investors see the opportunity for safe earnings in Slovenia.

Q DUTB is selling the Izola Shipyard (EUR 9m plus tax) and Climasol in Sežana (EUR 8m plus tax). What would be the buyer profile?

A We have just announced a call for the sale of the shipyard. Heta also plays a part here - the former Delamaris, which is also on sale, the main purpose of this project is tourism development. We have already prepared the conceptual design and presented it to the municipality, and at the same time there are quite a few potential buyers - funds and private investors.

However, the problem is that the municipal plans at the local level are taking (too) long – two to three years to be adopted. This means that an investor who comes to Slovenia, invests EUR 9m and then has to wait two years. This is a big problem and why we propose that the investor pays a deposit to DUTB and Heta, and then we begin to receive the spatial plans. If we have the spatial plan, the investor pays the entire purchase price, if not, we will return the deposit to the investor.

Climasol, in my opinion, is one of the most interesting pieces of land in Slovenia, especially for logistics. We also had a lot of interest in Munich for this land. We are actively talking to certain investors and developers who are developing logistics centres. Active cooperation with the municipality is already underway and in the near future, we will also prepare a tender and we hope to get a buyer, most likely from abroad. In Slovenia, it’s hard to find someone who would develop such a site.

Q Blockchain technology allows individuals to purchase real estate across the globe. How close is the Slovenian real estate market to this trend?

A I think more far than close. I believe that blockchain technology is the future; it enables verification of transactions and it happens in a second. However, I do not see that it could happen in the short term and especially not in Slovenia, in the real estate sector. First, other sectors should adopt it – banks, the insurance sector and then the real estate sector could follow. There has been discussion about owning a piece of a real estate e.g. in London, using blockchain technology – this is already possible, it just takes time and it is not possible to own it directly but via a real estate fund. Overall, blockchain means digitalising all of these procedures and yes, in the future, one could handle it digitally with a few clicks on the computer.

DUTB, d.d., Davčna ulica 1, 1000 Ljubljana, Slovenia w nepremicnine.dutb.eu e real-estate@dutb.eu t +386 1 429 38 95

REAL ESTATE ATTRACTIVE REAL ESTATE ASSETS AVAILABLE FOR SALE

BUILDING LAND PLOT SHIPYARD IZOLA

LAND PLOT AT STRATEGIC LOCATION IN SEŽANA

Urbanized land plot with an elite location by the sea in Izola is easily accessible and has good public utility infrastructure. A project blueprint anticipates the construction of a seaside resort with an upscale family hotel and an indoor and outdoor water park.

The largest buildable land plot in Slovenia is located at the edge of a growing industrial zone near the ports of Koper and Trieste. It spreads along the Italian border and close to Croatia. The property is suitable for large logistics operators or light industrial business.

BUILDING NET FLOOR AREA: 8.669,00 m² TOTAL LAND PLOT AREA: 42.054,00 m² YEAR OF CONSTRUCTION: 1960 YEAR RENOVATED: 1980 PRICE: 9.000.000,00 € + tax

TOTAL LAND PLOT FLOOR AREA: 334.297,00 m² PRICE: 8.000.000,00 € + tax

INVITATION TO TENDER FOR BIDS FOR THE REAL-ESTATE

PREMIUM PROPERTY FOR COMMERCIAL-RESIDENTIAL DEVELOPMENT IN THE CENTER OF LJUBLJANA The property on Parmova consists of a complex of building land plots practically in the center of Ljubljana. The land represents the major part of the Spatial unit 1 of adopted detailed municipality spatial plan (OPPN 173 Parmova), which envisages construction of 6 buildings from 14 to 52.5 m high. The total capacity of a spatial unit is 330 apartments at 37,000 m2 of gross floor area above the ground and 29,500 m2 gross ground floor basement floors.

TOTAL LAND PLOT AREA: 12,909 m² PRICE: 2.600,000 € + tax INVITATION TO TENDER FOR BINDING BIDS FOR THE REAL-ESTATE

MODERN BUSINESS-RESIDENTIAL BUILDING IN KOPER The business-residential building is located in the middle of urban comfort on Slovenian coast in an extraordinary location in Koper only a few minutes away from the city center of Koper. The facility, which already acquired a valid building permit comprises 4 basement floors with 417 parking spaces and 166 storages, 6 residential floors with 164 apartments in size of 38 to 152 m2 of net area and 29 business premises in the ground floor (3rd construction phase).

BUILDING NET FLOOR AREA: 27.620,00 m² TOTAL LAND PLOT AREA: 5.410,00 m² YEAR OF CONSTRUCTION: 2013 PRICE: 25.000.000,00 € + tax COLLETING BIDS FOR THE WHOLE COMPLEX

OFFICE BUILDING IN NOVI BEOGRAD DISTRICT

MULTI-APARTMENT SENIOR CITIZENS’ COMPLEX IN VRTOJBA

The office building is located in Novi Beograd, with most of the units having existing tenants. It consists of offices (B + G + 4), a car showroom (B + G + Gallery) and underground parking. Great investment opportunity.

The unfinished multi-apartment residential complex consists of two facilities: the senior citizens’ home with a potential capacity to host 120 residents and 38 assisted-living apartments. The property is located in the peaceful outskirts of Nova Gorica.

BUILDING NET FLOOR AREA: 12,826.00 m² TOTAL LAND PLOT FLOOR AREA: 6,606.00 m² YEAR OF CONSTRUCTION: 2008 PRICE: 12.500.000,00 € + tax

NET TLORIS AREA: 9,614.75 m² TOTAL LAND PLOT AREA: 10,948.00 m² YEAR BUILD: 2012 PRICE: 4.900.000,00 € + tax

Economy

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Knauf Insulation Experience Centre –

Transmitting passion to customers as the Slovenian plant celebrates 60 years

By Tina Drolc, M.Sc., MBA

On 22 November 2018, Knauf Insulation, Slovenia, had a double celebration — the 60th anniversary of its Škofja Loka plant and the official opening of a new, pioneering, sustainable building, the Knauf Insulation Experience Centre (KIEXC).

The building is the first in the country to be certified by the strict German DGNB standards for building sustainability and a pilot project to contribute research to the European Commission’s Level(s) initiative.

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Economy About the Knauf Insulation Experience Centre (KIEXC)

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Level(s) is a sustainable buildings assessment framework, an initiative that many stakeholders, including Knauf Insulation, hope will pave the way for future, Europewide, building legislation. In addition to contributing valuable research, the state-of-the-art building is a centre for sustainable building training and a showcase for some of Knauf Insulation’s cutting-edge solutions, including the Urbanscape® Green Roof Solution and Heraklith Wood Wool. The creation of pioneering solutions has been the hallmark of the Slovenian operation since Rock Mineral Wool production started in the village of Bodovlje, 60 years ago, under the Termika name.

"Changes are a constant in our company and we are proud of them, they are our inspiration and assurance for the future. The value of KIEXC building is more than EUR 3m and over the past five years we have invested more than EUR 80m, which is twice our profit. Consequently, we are pleased that the added value that we are creating remains in Slovenia and at the same time weaving the global team of the group." Mr Tomaž Lanišek, General Manager, Knauf Insulation, Škofja Loka, stated at the ceremony to The Slovenia Times.

KIEXC is a case study for sustainable construction at the European level. The building itself was designed to demonstrate Knauf Insulation’s pioneering approach to the future of sustainable construction. As Saša Bavec, former CEO at Škofja Loka and now the director of the newly formed Systems Division and Knauf Insulation’s Marketing Director, highlighted "This building has been in progress for the last seven years because of the many additional idea. Today, it has become the place where all of the employees from Škofja Loka come together, where Slovenian installers of insulation can teach and learn. From the international perspective, we usually say that everything within 500km is close enough to bring

people to learn how to insulate the right way. It probably covers 20m - 50m people."

Knauf: a family name and a corporate group of global dimensions Established in 1932, Knauf is a family-owned, multinational manufacturer of building materials and construction systems. Originally, a producer of conventional gypsum materials, Knauf now delivers systems and complete solutions for buildings worldwide.

Knauf Insulation, which is part of the Knauf Group, has more than 40 years of experience in the insulation industry and is one of the fastest growing and most respected names in insulation worldwide. With strong and steady financial performance and with turnover exceeding EUR 1.7bn, the company today employs over 5,500 people across 35 countries and has 38 manufacturing sites in 16 countries.

Knauf Group has more than 27,400 employees worldwide, with 220 factories in over 80 countries. Knauf Group remains an independent, family-owned company driven by the values of partnership, commitment, entrepreneurship and humanity, with turnover of EUR 6.5bn.

Asking how the idea to build KIEXC came about, Mr Jean-Claude Carlin, President of the Knauf Insulation Board said: "The idea of KIEXC came two years ago from my predecessor who believed that the plants are the best promotion for the customers. KIEXC was born to bring the customers and installers closer to the factories, and to share best practices and tools with them. In addition, the management team in Slovenia is quite special and entrepreneurial, and we are lucky to have such people who always want to go the extra mile and so we let them build their success."

• KIEXC is the first building in Slovenia, to be certified to the strict international and independently audited building sustainability standards of DGNB — Germany’s highly demanding Green Building Rating System — and has also been awarded ACTIVE HOUSE certification for sustainable performance; • The 832m2 centre contributes research to a pilot project known as Level(s), a European Commission initiative designed to create better building sustainability standards across EU countries; • The centre will provide an educational base for the latest construction techniques, energy advisory consultations and training, complete with virtual reality demonstrations; • The centre was created using digital Building Information Modelling (BIM) and features an Urbanscape Green Roof and wall, six different façade types, two different flat roof designs, as well as insulation solutions that offer outstanding fire, acoustic and thermal performance in addition to best practice solutions from project partners including Knauf Insulation, Knauf, Knauf AMF, Velux, Sika, Semmelrock, Zummtobel, TEM, Alukoenigstahl, Alkam and F. Leskovec; • The centre is heated by the waste energy from production and is categorised as a near zero-energy building with a thermal performance that is 50% higher than that demanded by regulation.

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PHOTOS 01, 04 Knauf Insulation Experience Center in Škofja Loka 02 Tomaž Lanišek, Knauf Insulation Škofja Loka managing director; Jean-Claude Carlin, President of the Knauf Insulation Board; Saša Bavec, former CEO of Škofja Loka and now Director of the newly formed Systems Division and Knauf Insulation’s Marketing Director 03 Saša Bavec, former CEO of Škofja Loka and now Director of the newly formed Systems Division and Knauf Insulation’s Marketing Director with Tomaž Lanišek, Knauf Insulation Škofja Loka managing director

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Economy

Green light for the Port of Koper Container Terminal Extension At the beginning of November 2018, Luka Koper, the company which operates all of the terminals at the Port of Koper, received from the Slovenian Ministry of the Environment the official notice that the building permit for the extension of the container terminal quayside is finally legally valid.

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Photo: Jaka IvanÄ?iÄ?

The building permit was issued for the construction of the quayside, which will be 98.5 metres long and 34.4 metres wide, and for the construction of a hinterland stacking area (total size 24,830 m2). The total length of the container terminal quayside shall then be 695 metres.

By the time the building permit became valid, Luka Koper had already published the public procurement for the selection of the contractor who will install the test drilling pilots which will carry the upper structure of the quayside. A period of monitoring will then follow before actual construction work, which is expected to start in May 2019.

The total investment is expected to be completed by the beginning of 2021. In accordance with the business strategy of Luka Koper, the terminal will then be able to handle at least 1.3 million TEUs annually. With the ongoing optimisation of operational and infrastructure processes, this can be increased to 1.5 million TEU/year.

The extension of Pier I is a key project for Luka Koper and also includes the acquisition of new port equipment, such as super-post-panamax STS cranes, transtainers and other handling equipment. The total value of the investment is EUR 235m, part of which has already been spent on past projects such as dredging, rail tracks construction and RMG cranes.

In 2017, Luka Koper handled 911,528 TEUs and has been the leading container terminal in the Adriatic for many years. In 2018, the plan is to reach around 980,000 TEUs of throughput.

Economy sonal Freedom, with Lithuania, Romania and Estonia seeing the largest rises in the last five years.

Overall, the index profiled national risers and fallers.

Risers: Georgia, Zimbabwe, Estonia, Paraguay, and Sri Lanka. Fallers: Greece, Italy, Turkey, Tunisia and Thailand.

"This does not mean that they are or are not prosperous, but simply that they have improved or declined significantly over the last decade," stresses Legatum.

Slovenia

Slovenia: World Leader in The Legatum Institute Natural Environment pillar

18th

Slovenia is the world leader in the Natural Environment pillar as the nation moved to protect almost 100% of its territorial waters. A highquality natural environment conveys a sense of wellbeing and satisfaction to a country’s population through characteristics that may be physical (such as air quality), social (such as green areas in which to meet) or symbolic (such as national parks). Slovenia performs well in the Education pillar, however its scores lowest on the Business Environment pillar, although this is the pillar with the greatest positive change from 2017, improving 15 places. Health however dropped five places.

In this year’s, recently released, Legatum Prosperity Index, the good news is that Slovenia has moved up three spots to 18th from the 149 ranked countries, and takes the top spot in the Natural Environment pillar.

The key findings in 2018 indicate that although global prosperity has continued to rise, the improvement is not shared equally. Since last year, 95 countries have improved their position, with business environment on the rise in every region. The top three countries retained their 2017 ranking, with Norway again the top-ranked country followed by New Zealand and Finland.

The London based, The Legatum Institute, published the 12th Legatum Prosperity Index at the end of November. The index is a leading indicator of economic and social wellbeing in the 149 nations covered. "This is a tool for leaders around the world to help set their agendas for growth and development. Prosperity entails much more than wealth, it is about creating the environment where a person can reach their full potential," stressed Baroness Philippa Stroud, CEO of The Legatum Institute.

The Index assesses nine prosperity pillars: Economic Quality, Business Environment,

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Governance, Personal Freedom, Social Capital, Safety and Security, Education, Health and Natural Environment.

2018 movers North America was the strongest region in 2018, well above any other region for business environment, with the US ranking first and Canada third. Western Europe is the second strongest region due to the improvements not only in Slovenia, but also Malta (2018: 19; 2017: 22) and Cyprus (2018: 28; 2017: 31), although Germany and Greece both fell three spots.

Eastern Europe prosperity has risen steadily over the past decade – one of the strongest improvers in 2018. The region has been rising at a faster rate than the world average – with last year’s increase the second largest of any region due to improvements in the Business Environment, Natural Environment and Per-

Creating the pathway from poverty to prosperity Overall, the Index highlights two key messages.

Firstly, prosperity has grown globally and is at its highest ever point since 2007. Secondly, the gap between the highest and lowest score is the largest it has ever been. So, even if prosperity is at its highest point – which is absolutely great news for many - too few of the world’s inhabitants are beneficiaries. Could that be a clear call in 2019 – perhaps a New Year pledge to focus on making the world a better place - for all.

Economy

What Europe needs is THINK

By Sabina Carli

Trade wars, Brexit, hybrid warfare, migration, climate change. USA, China, Russia. UN, IMF, AIIB. G7, G20, 16+1 Platform. It’s almost 2019 and the European Union tries to keep the balance while seeking common answers to complex global challenges.

Among them is the rising economic and political power of China and its interest in Central and Eastern Europe, manifested through the 16+1 Platform, a platform for cooperation between China, the "plus one", and "the sixteen" Central and Eastern European countries, including Slovenia.

A number of events, workshops and roundtables have shown that the players in the EU need a strong basis of knowledge and research in order to effectively manage their decisionmaking, be it governments, businesses or associations. We Build Europe, an international research network has recognised this need and established the 'THINK Initiative', a collaborative, needs-based research project through which various research partners contribute with their analysis, research and policy recommendations.

The THINK Initiative was established to spark and lead the discussion about proactive strategies for the EU and neighbouring regions, and brings to the debate a young, creative and academic perspective in order to develop joint strategies and common responses.

The network works toward increasing information exchange and cooperation between European players (Europe and neighboring regions) to address challenges and shape Europe.

It addresses the challenges of strategic decision-making in Europe by connecting researchers with governments, companies, social and cultural NGOs, journalists and the public at large, through a series of roundtables, research coalition building, crowdsourcing analysis and an online social network platform.

Ingo Mayr-Knoch, CEO of the THINK Initiative, explains: "The Initiative revolutionises the way strategies are developed – too often we see how different sectors, various interested parties do not exchange the information they gather, nor do they brainstorm, plan, or THINK together. This can very well be seen in the case of China – we have a number of different parties engaged on the topic, from big corporations to SMEs, from governments to municipalities and local communities, from international organisations to local NGOs. And yet they are unable to put together a coherent strategy. The THINK Initiative serves to exchange information, assess the situation, looks at the challenges and opportunities, and develops more creative strategies."

Over 400 strategy creators are currently involved in the policy recommendations development cycle and the Centre for European Perspective, a government-established foundation from Slovenia with its headquarters at Jable Castle near Ljubljana, is among them, addressing the challenges and opportunities that the 16+1 Platform brings to the CEE region.

Ingo Mayr-Knoch presents the THINK Initiative at the policy discussion "Europe at the Crossroads" organised by the Centre for European Perspective at Jable Castle in December 2018.

The research to date shows that the CEE countries lack both the national and a common foreign policy strategy towards China. At the same time, the EU has barely developed its own comprehensive strategy to address the influence of China in the CEE region, although it recently issued an EU-wide strategy "Connecting Europe with Asia" (EEAS 2018). Research results will be available in January 2019.

Seen as a "bridgehead" to the EU (via investment and production of goods "made in the EU") (Liu 2013; Simurina 2014), a channel to facilitate business contacts, build social networks and diminish the costs of doing business in CEE (Kong 2015), a way to obtain support in the relevant EU institutions and forums (Kaczmarski and Jakóbowski 2015), a "tool for building a positive image of China" in the region (Kaczmarski and Jakóbowski 2015), a means of coordinating China’s policy towards CEE (Kong 2015; Kaczmarski and Jakóbowski 2015).

The 16+1 Platform indeed raises a number of eyebrows and leaves both politicians and businessmen sleepless at night – both due to the anticipation of their cooperation and the risk they take while dealing with a far too little understood, far-away partner they have not cooperated with in the past.

THINK Initiative: conducting high-quality research, building diverse coalitions and proposing cross-sectoral strategies.

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Political Overview

Cerar discusses US-Slovenia ties, Western Balkans in Washington

Washington, US: Slovenian Foreign Minister Miro Cerar meets US Secretary of State Mike Pompeo; Photo: Robi Poredoš/STA

Cerar and Bolton noted the good cooperation between the countries, expressing mutual interest for the cooperation to continue in the future.

According to Cerar, the Americans continue to appreciate Slovenia’s insights into the Western Balkan region and have been opening the door to Slovenian officials in Washington since independence.

Cerar briefed both Bolton and Pompeo on Slovenia’s position on the border arbitration award. "I explained that Croatia was in fact in breach of international and European law in failing to implement the award," he said, adding that he also told them that neutrality was not enough when international law was at stake. "Secretary of State Pompeo appreciated my clearly setting out our view and I believe the issue had not been presented to him this clearly before. Going back to talks wouldn’t be productive, Croatia’s ignoring international law is very bad for the whole Western Balkan region," said Cerar.

Cerar and Pompeo also discussed the issues that Slovenia has a relevant position on; the EU, relations with Russia, the Western Balkans and the relationship between the US and Slovenia. Cerar stressed the importance of EU accession for countries in the Western Balkans as soon as they meet the necessary conditions, while he labelled US presence in the region at the political level as very welcome. "It is in the interest of Europe and Slovenia and probably also our allies in the US to include this region into transatlantic integration as soon as possible because of security, stability and also because of geostrategic influences coming from outside the EU," Cerar said.

Pompeo and Cerar agreed business links should be enhanced, while Cerar said that the US did not consider Slovenia’s relations with Russia problematic. Speaking to Slovenian reporters in Washington after the talks, Cerar was confident that his visit opened a new chapter in US-Slovenia relations. He invited Pompeo to visit Slovenia, saying that President Borut Pahor hosting the Three Seas Initiative next year would make a good opportunity.

Cerar was the first Slovenian foreign minister to visit the State Department since 2010.

Šarec not very optimistic about the prospects of Brexit deal

New income tax scheme bringing NGOs around EUR 6m more in 2019

Slovenian Prime Minister Marjan Šarec said after the EU summit in Brussels on 14 December 2018 that he was not very optimistic about the possibility of the Brexit deal being confirmed in the British parliament.

Ljubljana, 15 December 2018 - Slovenian NGOs can look forward to an estimated EUR 6.35m in additional funding in 2019, as a result of having become entitled to the undistributed amounts in the scheme allowing taxpayers to allocate 0.5% of their personal income tax to an organisation of their choosing.

On 14 December 2018, Foreign Minister Miro Cerar met US Secretary of State Mike Pompeo and National Security Adviser John Bolton, in Washington, for talks focusing on the relationship between the two countries and the Western Balkans. Cerar also presented Slovenia’s position on the implementation of the border arbitration award.

We have done our job, we have done everything in our power and now it is up to the UK to make a decision, he said, adding that "I don’t know what else we could have done to convince them". Šarec was also asked to comment on the statement by British Prime Minister Theresa May that she expected talks in the coming days on additional assurances to ease the reservations regarding the controversial Irish backstop. He said that May’s acts were "strange and somewhat hard to understand" and added that she did not know how to say clearly what she actually wanted.

According to Šarec, the next stop is the vote in the British parliament.

If British MPs decide not to endorse the Brexit deal, there is only one option left - the UK leaving the EU without a deal, he added. The Slovenian prime minister said it was hard for 27 countries to make adjustments to please one country, that the British had decided to leave the EU and now they wanted to make the rest of the EU the victims. We cannot allow this, we cannot do ourselves a disservice, added Šarec, who described the debate as fruitless.

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The 0.5% scheme was introduced in 2007 and allows taxpayers to select one or several political parties, trade unions or organisations benefitting society in fields such as the environment, culture, sports etc. as the direct beneficiaries of a share of their income tax. Last year, a total of EUR 9.6m could have been distributed in this way but the final figure was EUR 4.6m, with the rest ending up in the state budget without preferential allocation. In line with changes to the law on NGOs passed last March, the beneficiaries of the undistributed funds will be NGOs. The funds will be channelled in to a special fund managed by the Public Administration Ministry, which will distribute the money through calls for applications. According to Finance Ministry estimates, the additional funding available to NGOs in 2019, as a result of the change, will amount to EUR 6.35m.

Source: STA

Politics

Khm?!

Column

Florida in Slovenia

By Boštjan Lajovic

I believe that a foreigner who comes to live in Slovenia temporarily and who has not yet managed to get acquainted with the local mentality will find it hard to understand that our small country, with a population of two million people, comprises as many as 212 municipalities.

This many municipalities means we need as many municipal councils and consequently, a corresponding number of councillors, municipal administrations, officials, advisors and so on.

One of the greatest successes of Slovenian politics is the fact that it has not managed to establish an efficient and more importantly, rational model of local self-management in nearly three decades of Slovenian independence. In the times of the former socialist Yugoslavia, Slovenia had a total of 66 municipalities. To this day, many estimate that this was a good system of administration which enabled local interests to be realised efficiently. With the formation of an independent country, the appetites of local leaders increased. Municipalities started growing like no one’s business and the state had no means of limiting their growth. In turn, governments all claimed that they would actively intervene in the system of local arrangements

and that, in addition to the primary, municipal level, they would establish a secondary, regional level, which would divide Slovenia into regions, enabling a more rational administration. And this is where a quarrel started that Quentin Tarantino could easily make use of in one of his films. Slovenians cannot agree as to how far Styria reaches, where Carinthians live, whether Inner Carniolans belong to the Littoral region, who exactly the people from the Mura Region are and how White Carniola fits into this entire picture. As this clearly resembles the screenplay of a Tarantino film or, better yet, the Mission Impossible franchise, Slovenian politicians hastily dismiss the issue altogether.

And so, two million Slovenian residents still live in 212 different municipalities scattered across 6 to 14 regions – a consensus on the matter is yet to emerge. To illustrate the point, take a look at Hodoš, the smallest Slovenian municipality. It lies in the very north-eastern part of the country and has a total of 362 inhabitants, which is equivalent to the number of people that live in a tower block in Ljubljana.

Hodoš has 265 qualified voters, of which 167 cast their ballots. With a total of 134 votes, the winner was Ludvik Orban, the only candidate.

With a little bit of sarcasm, it could be claimed that cross-border influence from the neighbouring country can be sensed in Hodoš.

Jokes aside, to focus on the western part of the country, namely the city municipality of Koper. The latter is referred to as the Slovenian Florida and this is not just on account of its seafront location and pleasant climate, but also due to the similarly close outcome produced in the mayoral election. Just like the presidential election in Florida, in 2000, when George W Bush and Al Gore ran for president, every vote counted. The votes had to be counted six times and the notorious, longstanding mayor of Koper, Boris Popovič, collected a mere seven votes less than his challenger, which is why he then filed an appeal. At the time of writing, the decision has not yet been made public, but I believe that Koper can expect the tensions to go on for quite some time.

The fact that democracy is basically a huge hazard, or roulette, is proven by the small, health-resort municipality of Šmarješke Toplice na Dolenjskem, where the running candidates had the exact same number of votes their fates will be determined by a draw. I am not sure whether the decision will be based on rolling a dice or some other method but, in any case, it will be an interesting new experience for the all-too-young Slovenian democracy. According to the latest data, both candidates have filed their appeals, so it is currently impossible to predict how the matter will be resolved.

This year’s local elections brought a number of lessons that political parties, especially the established ones, should learn from. Ideology and big words about morals and ethics are 'out', and the winners were mostly personalities who are considered to be efficient and pragmatic in their local environments, regardless of any potential moral slips they have made.

Thus, in Ljubljana, the election was won for the fifth time in a row by a mayor who spends considerable amounts of time in courtrooms, even though he has not yet been convicted res judicata. The city has blossomed under his leadership, which is something his rivals admit through gritted teeth. In Radenci, a mayor was elected who had spent several years in prison due to fraud. Among his sins is also the failure to pay child maintenance and he is currently personally bankrupt for owing several million euros. Among his creditors is also the municipality that he is about to head. Well, I understand that Slovenian democracy is still in the making, but it is hard to resist asking oneself whether the saying that voters are always right is really true?

Nevertheless, there is also a bright side to this year’s local elections. The trend of declining voter turnout has finally come to an end. In Koper, the turnout was 10% higher than it was four years previously. A significant increase in the turnout of voters who made the effort to submit their votes was also recorded elsewhere. But experts say that local and national elections are not to be equated, so let’s not yet make conclusions about a change to positive trend. For a more precise answer we will have to wait until mid-next year for the EU parliamentary election where, traditionally, Slovenia has one of the worst voter turnouts among all member states, barely reaching 20%.

Slovenians cannot agree as to how far Styria reaches, where Carinthians live, whether Inner Carniolans belong to the Littoral region, who exactly the people from the Mura Region are and how White Carniola fits into this entire picture.

Winter Edition 2018 | The Slovenian Times

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International Business Partners

TOPIC: What will be the focus of bilateral relations in 2019?

American Chamber of Commerce – AmCham Slovenia In 2019, AmCham Slovenia would like to see an even stronger transatlantic relationship.

Transatlantic relations are extremely important and productive relations as they create some 25 million jobs on both sides of the Atlantic. They are good and despite their slightly different perspectives, the European Union and the USA are natural allies. We also believe that relations between Slovenia and the US are of key importance for our country. The US respects Slovenia as a proactive country and both political and economic relations between the two countries are good. We also believe that, as far as the transatlantic relationship goes,

the business sector’s voice should be stronger.

It should speak up and change its way of thinking, it should focus on how the economy helps create jobs and how innovation and marketing

contribute to prosperity, and thus make the transatlantic relationship even stronger.

continue to help Slovenians startups and fastgrowing companies set up in the UK and go global from there. Our role in supporting British exports to Slovenia will be through various market visits from UK businesses. We will also

be helping Slovenian exporters enter the UK market, which remains the fifth largest in the world and second largest in Europe, where ease of doing business is one of the highest in the world.

British – Slovenian Chamber of Commerce – BSCC The date of the UK’s exit from the EU is getting closer, while the two sides are finalising the withdrawal agreement. Our chamber eagerly awaits the confirmation of some kind of agreement between the UK and the EU, which will then pave the way for further negotiations on trade. The potential for trade and investment between the UK and Slovenia remains strong, and business needs certainty from the government on the future trade relationship as soon as possible. Our focus in 2019 will be to continue building strong trade relations between Slovenia and UK. We will focus on attracting more investment from the UK to Slovenia. We

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International Business Partners

The German-Slovene Chamber of Commerce and Industry – AHK Slowenien

At the German-Slovene Chamber of Commerce, 2019 will be all about bringing up the actual topics that concern the German and Slovenian economies, and the relations between both countries. We will further focus on the concepts of digitalisation and Industry 4.0, whilst highlighting artificial intelligence as the biggest challenge that will

radically shape our future. At the Kick-Off Press Conference, we will present and evaluate the results of the survey on digitalisation in Slovenian companies. At this event, we will launch the wide range of activities and events that will follow in the framework of "Inspiration for the Digital Future" - a conference with renowned speakers, workshops, delega-

tions to Germany, best practices and a special certification for Industry 4.0. Our activities and the guiding topic for next year will be summarised at www.akademija.industrija4.0.si.

To all our members and partners – we wish you joyful holidays and a good start to the new business year!

Advantage Austria

"Moving Slovenia 2.0" conference, "THE FUTURE OF MOBILITY BUSINESS" panel (from left to right): Peter Hasslacher, ADVANTAGE AUSTRIA Ljubljana; Georg List, AVL LIST; Karin Tausz, MAGNA STEYR; Matjaž Korman, AUDI; Werner Mülle CNL - Logistics Council and Iztok Seljak, HIDRIA.

Slovenia has shown strong growth together with a remarkable surge of its exporting industry throughout 2018. Based on these sound market conditions, trade relations between Austria and Slovenia have flourished and led to an increase in exports on both sides. Preliminary economic data shows that Austrian exports to Slovenia, this year, increased at an even higher pace than average export growth

to global markets, the best prerequisite for an optimistic outlook into 2019 – Slovenia will continue to be one of Austria’s most important neighbours and business partners.

At ADVANTAGE AUSTRIA we always strive to develop existing relations, tap into new possibilities and uncover hidden business opportunities. 2019 will be no exception – we’ve got a busy year ahead of us. For the very first time we

will host AUSTRIA CONNECT SOUTHEAST EUROPE – a signature event bringing together the top executives of Austrian subsidiaries in the region. Our successful focus on mobility continues with the third Moving Slovenia in November 2019 and tourism is large on the agenda with delegations, trade shows and events. And there is much more…check out our website and follow us on Facebook!

Winter Edition 2018 | The Slovenian Times

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International Business Partners

Luxembourg-Slovenian Business Club (LSBC)

By Iztok Petek, Nataša Zajec

In light of recent global trade tensions, it is obvious that we are facing the beginning of the end of neo-liberal euphoric globalism.

Countries are putting their sovereignty and their own interests first and therefore prioritising their own needs over global issues. These changes are forcing countries to look at trade from a different perspective and consequently, bilateral trade agreements are on the rise.

As seen from the recent events in France, the ability to mobilise communities and op-

For the third consecutive year, LSBC is hosting a showroom to display SME products

pose the hegemony of globalism, which only meets the needs of the wealthiest, is possible.

It is becoming clearer that globalism brings profit only to corporations, with countries, people and the environment losing the game.

At LSBC, the focus of bilateral relations has always been a win-win approach, seeking harmonisation between parties. In this sense, we are happy and proud to participate in the

first LetzBiz - International Trade Days, taking place in December at the Chamber of Commerce Luxembourg. As one the most proactive bilateral chambers, LSBC was invited to contribute to the program with a presentation of its best practice. This is recognition for LSBC as an active co-creator and part of the landscape of the latest trends in the internationalisation of SME’s.

companies are showing a growing interest for the Slovenian market and vice versa.

In 2018 the Italian Trade Agency in Ljubljana organised several promotional actions that helped companies from both sides to link with each other, starting with trade missions of Slovenian operators to selected Italian Fairs and workshops, to the organisation and participation of several events in Slovenia in agri-food, design, consumer goods, the environmental and technological sectors. One of the latest

events organised by the Italian Government was the third Slovene "Week of the Italian Cuisine in the World", with several gastronomical events in Ljubljana and Koper. In 2019, all the Italian institutions in Slovenia will continue to promote Italian excellence, not only through information and assistance on commercial and investment opportunities, but also in the fields of science, education and culture to further strengthen the good relationships between Italy and Slovenia.

Italian Trade Agency (ICE) As neighboring countries, Italy and Slovenia share important bilateral relations: from trade and investment to tourist flows. In fact, Italy is Slovenia’s second commercial partner with a 13.5% market share, whereas Slovenia is the main Italian partner from the former Yugoslavia plus Albania area, absorbing over a third of its total trade. The value of our bilateral trade reached EUR 7.6bn in 2017 - the highest value ever - and is continuing to grow in 2018 with a 9% increase in the first eight months, on a yearon-year basis. Italy is Slovenia’s fifth largest investor with an FDI stock of over EUR 1.1bn at the end of 2017 and Italian citizens are the most numerous foreign tourists in Slovenia.

We are confident that these solid relations will continue in the upcoming year as many Italian

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International Business Partners

Slovenian entrepreneurship at a Crossroad

By Goran Novković, Executive Director of the Slovenian Business Club (SBC)

Slovenian entrepreneurship is at a crossroad – a breaking point.

The reasons are many.

How will the first generation of entrepreneurs say their goodbyes?

Goran Novković, executive director of the Slovenian Business Club (SBC)

Slovenian entrepreneurs are no longer just ordinary suppliers in the chain. Many of them have become developmental suppliers.

In the past few months, I have visited more than 250 exceptionally talented entrepreneurs. Even though they are full of optimism and in spite of the record results that they have achieved this year, many of them are in doubt about the transfer of management and/or ownership to the next generation. Nearly 30 years have passed since the entrepreneurial renaissance occurred in Slovenia. The first generation of entrepreneurs is on the brink of retiring.

While some have tackled this challenge responsibly and systematically, e.g. with a family constitution, others have not. This is why I am not surprised by information that the demand for selling family companies is higher than ever. On the other hand, there is also the information that there are very few family companies being sold. After all, family entrepreneurs in Slovenia are even more attached to their businesses than they are abroad.

The upcoming years will play a vital role. The Slovenian Business Club (SBC), which brings together entrepreneurs with the largest set of different succession models, will have an especially responsible mission to familiarise family businesses with best practice and recipes.

What degree of uncertainty can we expect in export markets?

Slovenia is small. Nevertheless, many Slovenian companies and entrepreneurs are world champions in niches.

Slovenian entrepreneurs are no longer just ordinary suppliers in the chain. Many of them have become developmental suppliers. Companies that manage world-renowned brands are competing for their products and services.

What is more, the Akrapovič company has developed the best-known Slovenian brand – Akrapovič. Also, Postojna cave has become a global tourist sensation under the leadership of an entrepreneur. And when it comes to the gaming industry, the "Made in Slovenia" brand has become nearly as prominent as "Made in Germany" is in the global economy, in general.

Slovenia is small. Nevertheless, many Slovenian companies and entrepreneurs are world champions in niches. This, of course, means that they depend highly on fluctuating world markets. The cooling of the economy and the uncertainty pertaining to global hotspots and technological leaps can either launch them even further into the stratosphere of entrepreneurial success or it can send them spiralling down the drain. Slovenian entrepreneurs, thus, share their fates with many others in this fierce global competition.

What will the attitude of the government toward entrepreneurs be like?

2019 will be a breaking year, also in connection with the attitude of Slovenian politics towards entrepreneurship. The Minister of Finance, Andrej Bertoncelj, announced a tax restructure with which he also plans to implement income tax exemptions.

This is not just a favourable prediction but also a necessary measure. Slovenia needs comprehensive tax reform, in line with the Austrian recipe from 2016, i.e. a significant income tax exemption. It also needs structural reform in order to be able to pursue three important objectives: • To continue with economic growth higher than elsewhere in the EU, • To achieve a developmental breakthrough, and • To start catching up with the most developed EU member states.

In 2019, SBC will dedicate the greater part of their attention to improving the entrepreneurial environment. It all depends on the government and politics, and on how much they will listen to us. However, it is difficult to imagine a statebuilding policy that will not take into account the propositions of an association whose members achieve an added value per employee that is 25% higher than the state average. In the last five years, they have increased sales by 60% and provided nearly 50% more jobs than in 2012.

Winter Edition 2018 | The Slovenian Times

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Global Pitch

Growth of "blockchain" community in BTC City Ljubljana The BTC Company recognises a great opportunity in the sequencing technology of data blocks, which is being used by more and more Slovenian startup companies and having a crucial impact on the branches in which they operate. As one of the first block-chain tenants in the Crystal Palace at BTC City Ljubljana, was OriginTrail, a block-chain based company which develops a solution to increase the transparency of supply chains and cooperates with the BTC Logistics Centre.

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The trend has continued with new blockchain tenants in the BTC City Ljubljana with European Blockchain Hub as being one of the most recent tenants in the field. BTC City Ljubljana will continue to strengthen and expand the blockchain community and other stakeholders who are seeking opportunities in the sequencing technology of data blocks. A great opportunity in this area has also been recognised through mutual strategic integration.

In November, an exclusive workshop, How to design a system of traceability based on blockchain technology in your company for higher added value, was held at BTC City Ljubljana and organised by OriginTrail in cooperation with the BTC Company and GS1 Slovenia. This was the first such workshop in Slovenia, where participants were familiarised with blockchain technology, learned about the business aspects of introducing this kind of technology into a company and

with the help of mentors designed a practical prototype for the introduction of blockchain technology to meet the needs of their own company.

Data Chain Synchronisation Technology blockchain technology - represents the technology of the future. The exchange of information through blockchain technology will, in the coming years, fundamentally change business processes. According to Deloitte, for 41% of companies the introduction of blockchain is already one of the top 5 strategic activities.

Some of the world’s largest global companies such as Walmart, Alibaba, Amazon, Maersk, Allianz, Pfizer and many others, have already actively introduced blockchain technology into their business. One of such examples in Slovenia is also a pilot project, set up by OriginTrail and BTC Logistics Centre, which will enable its partners real-time inventory tracking. Being aware that companies that are fast enough to implement blockchain technology have an exceptional opportunity for a competitive advantage, they wanted to present practical knowledge to all interested companies through the organisation of the workshop.

Global Pitch The added value of the introduction of new technologies was recognised by participants from various companies in the field of innovation, from IT departments, logistics, sales and strategic marketing. At the workshop, they learned about the basics of blockchain technologies at the applied managerial level, understanding the importance of the GS1 international standards for the successful implementation of a blockchain pilot project, the use of advanced Blockchain Use Case Canvas© and the proprietary platform for prototyping, and were given the proper guidance for developing their own ideas. The workshop was the first of such workshops, where companies could get insight into the functioning of blockchain technology and the implementation of the technology in their company based on a concrete business case.

Presentation of Slovenia within the Euro-Asian tours of European Blockchain Hub The European Blockchain Hub (EUBC Hub) organised a number of blockchain events and conferences within their Euro-Asian tour between 11 September and 16 November 2018, in various cities in Asia and Europe. An event also took place in Slovenia, where the European Blockchain Hub has its seat. The EuroAsian Tour ends in January 2019 in Kuala Lumpur, the capital of Malaysia.

Slovenia, in particular, was presented as a tourist destination and a supporting country to the new technologies that build the land of the future. Slovenia was also presented as a host to many ICO companies and a focal point for the new hubs around the world that join the EUBC Hub. The start of the tour began in Jakarta, Indonesia, on 11 September 2018, and the last event will be on 16th of December in Singapore.

The tour summit featured an eventful series of sharing sessions by featured speakers, all of whom are experts and pioneers in the blockchain industry. They talked about their success stories and inspiring projects from their home

countries centering around blockchain technology. As blockchain for SDGs Tour Summit toured the cities in Asia; Jakarta, Hong Kong, Tokyo and Taipei – the tour summit brought together 3,520 audiences with 22 honoured speakers, each representing prominent blockchain-based organisations such as BTC City Slovenia, MAXONROW, World of Sharing, WOS and MOGU, to name a few.

The EUBC HUB aims to champion blockchain technology for SDGs, as envisioned by the United Nations (UN) – the tour summit also seeks to develop a global relation worldwide with the objective to streamline an international standard of blockchain technology adoption, within various industries, for sustainable development.

To date, the EUBC HUB has brought Malaysia, Indonesia, Japan, Vietnam, Philippines, Spain, Austria, Hong Kong and most recently Switzerland, onboard to elevate the industrial quality to accelerate the achievement of SDGs through the signing of a Memorandum of Understanding (MoU) in the respective countries. Additionally, EUBC HUB has established partnerships with 10 various non-profit organisations (NGOs), educational institutions, pioneering entrepreneurs and government bodies

EUBC HUB is an independent organisation that champions blockchain technology for transparent, democratic, decentralised and safe business operations headquartered in BTC City Ljubljana. EUBC HUB first established its presence as a pioneer in the blockchain industry in May 2018, with the aim to advocate the development of smart regulation for blockchain development and digital entrepreneurship eco-systems at EU institutions, EU Member States and other countries. such as the United Nations (UN), the BTC Company (Slovenia), Deloitte, the Slovenian Tourist Board, Creative Hive and MakeFamous, to name a few. These partnerships have created mutual understanding for future possibilities together. EUBC HUB is proudly supported by the sponsorship of four organisations; namely WOS, Relianz Chain and SunContract, from various industries worldwide and is always seeking possible partnerships and support.

"BTC City’s harmonised area, consisting of varied programmes, target groups, as well as constructional, traffic, and technological infrastructure, has been recognised on the market as a stimuli-rich living lab environment for developing and testing all kinds of software and hardware solutions, also in the field of very promising blockchain technology. Joining our blockchain community will thus benefit the business partners involved and sooner or later also society as a whole."

Damjan Kralj, M.Sc., Member of the Management Board, Director of Sales and Marketing, BTC, d. d.

Winter Edition 2018 | The Slovenian Times

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Leadership Corner

Emotional Bank Account

By Saša Fajmut, M.Sc.

Another day at the office, everything seems fine, you and your colleagues are in a good mood, you've just exchanged a few jokes and loud laughter makes you feel like this is a truly great place to work.

Then, the regular staff meeting begins and while your boss scrolls through the meeting agenda, the laughter starts to disappear. The boss is evidently in a bad mood and she keeps raising tensions about the exceeded budget, targets not being met, and in the end she even insults a couple of people in the room.

The meeting ends in silence.

Sounds familiar? I surely hope not. If this is the case at your office then you probably work in a psychologically unsafe place which was created by a bad manager. When the communication becomes hostile, defensive, full of verbal battles, emotional withdrawal, or even worse – silence, then this is a clear evidence of a very low level of trust. And it's not just a potential situation at work, it may also happen in a marriage, with kids, between friends and colleagues. Is it possible to turn this negative scenario around?

Yes, it is. But, first we need to understand the concept of the Emotional Bank Account (Covey, 2013). We all know what a financial bank account is, we make deposits into it and build a reserve to later make a withdrawal, if needed. An Emotional Bank Account works the same

Saša Fajmut, M.Sc., Director Leadership Services at Amrop, responsible for leadership assessments and development. She holds a Master’s Degree in Clinical Psychology and an Executive MBA.

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way, but within a relationship. Kindness, effort, honesty and keeping promises between two people work as deposits, while discourtesy, disrespect, cutting someone off and betraying their trust act as withdrawals.

Trust builds up over the long-run with consistent, small deposits. Our most intimate relationships, such as marriage, close friendships and office team members require constant deposits. This way you build up a reserve; you can feel it as a positive atmosphere where communication is easy, engagement is high and even small mistakes don't really matter since the emotional reserve will compensate for them. However, one large withdrawal might exceed all deposits and the trust between two people is easily gone.

There is no quick fix, building and repairing relationships are long-term investments. You might try very hard and see little effect at first. Don't worry, reserves build up differently with different people, but with consistent deposits the balance is surely positive.

First, be sure to clarify expectations. At work this means setting clear goals, which is especially important at the beginning of any work or private relationship. One of the major issues at work or at home can be not explicitly stating what we expect from another person. This can easily lead to disappointment, anger, resentment. Clarifying and fulfilling expectations make great deposits and violating them means withdrawals.

One of the most important deposits you can make is to really understand the person. In other words, be sure to know the person's 'currency'.

What works as a deposit for you (e.g. your friend tags you on Facebook) might not work for somebody else or they might even interpret the same situation as a withdrawal!

So, as a leader, subordinate, husband/wife, parent, friend or colleague, try to shut up from time to time and really listen to find the person's deep interests or needs. When you see into person's heart, it will be much easier to build on the trust between you two. Then you can choose the little things which truly matter to that person, such as giving a day off to your team as a manager, complimenting your boss for all the hard work, apologising to your partner or just being there for a sad friend.

Therefore, instead of focusing your energy into your next holiday, new skiing equipment or expensive apartment renewal, try instead to invest in your relationships with others. Let your New Year resolutions build around Emotional Bank Accounts with other significant people in your life. Seek to understand, show effort, keep commitments, be honest and kind, apologise.

You will be surprised how fast your life will start to change for the better.

Source: • Covey, S. R. (2013). The 7 Habits of Highly Effective People. New York, Simon & Schuster, Inc.

There is no quick fix, building and repairing relationships are long-term investments.

Faculty of Economics among the best 95 in Europe!

The Faculty of Economics, University of Ljubljana has been included in the Financial Times’ ranking of top 95 European institutions in the area of business education in 2018.

Our IMB programme among the best 100 in the world!

The IMB programme of the Faculty of Economics has been included in the prestigious Financial Times’ ranking of the world’s top 100 “Master in Management” programmes. According to the “value for money” criterion, it occupies 2nd place among all programmes in the world.

Education Perspective Interview: Prof. dr. Nada Zupan, Coordinator for International Accreditations, Faculty of Economics, University of Ljubljana Marjan Smonig, Head of Department, Internationalization and BSIS Coordinator, Faculty of Economics, University of Ljubljana

Accreditation standards guide resourcing efforts to keep up with the best The Faculty of Economics at the University of Ljubljana (FELU) is among the leading business schools in the CEE region, offering programs for all three Bologna cycles and showing a strong research capacity. The quality of the school has been confirmed with the most sought-after international accreditations EQUIS, AACSB, AMBA - the so-called "triple crown".

01

TST: Why did you pursue these accreditations at a time when it was not the practice in this region?

02

Nada Zupan: It all started about 20 years ago with the visionary leadership of the dean at that time, Professor Ferdinand TroĹĄt and his team. They understood that the only way forward and toward better quality was to open up and internationalise. It quickly became obvious that we needed to benchmark against the best schools and follow the trends in modern business education. International accreditations seemed a logical tool to help us move in the right direction. In hindsight, it was a rather bold decision to first pursue the EQUIS accreditation by EFMD, which is very selective. FELU was EQUIS accredited in 2006 and today there are only 176 accredited schools around the world. However, it was the decision that made us who we are today. With every (re)accreditation we have been learning and improving.

FELU has pioneered many things in Slovenia that were then shared as best practice within and beyond the university. In my view, continuous improvement by following the ever-evolving standards of quality in business education is the main value of these accreditations. Of

course, it takes a lot of hard work to constantly improve processes, programs and their delivery, research output and services. Everybody at the school needs to get involved in order to succeed. This year, we were very happy to complete the third EQUIS re-accreditation and for the first time we have been accredited for five years and not for three as previously, this is an important recognition of our progress and quality. In the next year we will undergo AACSB and AMBA re-accreditations.

TST: What are the benefits to FELU of having these accreditations?

Nada Zupan: Accreditation standards serve as a guide of where to place our efforts and resources to keep up with the best. Usually, public educational institutions are rather rigid and slow, and accreditations are a welcome form of external pressure that makes us more agile and effective in implementing change. In addition to the impact on continuous improvement, accreditations serve as the seal of quality. This is very important for FELU, coming from a less known and small country like Slovenia, it has helped us to gain international respect and become visible on the international business edu-

PHOTOS 01 Prof. dr. Nada Zupan, Coordinator for International Accreditations, Faculty of Economics, University of Ljubljana 02 Marjan Smonig, Head of Department, Internationalization and BSIS Coordinator, Faculty of Economics, University of Ljubljana

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Education Perspective FELU has pioneered many things in Slovenia that were then shared as best practice within and beyond the university. cation map. This year, for the first time, we are listed among the best business schools on the FT European Business School Ranking of the Top 95 schools. We have managed to position ourselves as a desired partner for student and staff exchanges, joint programs and research.

We are able to attract an increasing number of international students, teachers and researchers to FELU. All of this helps us to develop cross-cultural awareness and competencies, broadens our horizons and prepares us to work and live in a globalised world.

TST: How difficult was it for FELU to achieve triple accreditation?

Nada Zupan: The small number of triple accredited schools around the world, just 88 as of September 2018, attests to both the accreditation standards and the processes being very demanding. We simply need to do more things and everything better than we could have been doing if we didn’t push for this high quality confirmed by the accreditations.

When they talk about how little work is done by public employees, I really don’t see any of that at FELU. Come to see us in July when most others are on vacation and we are hosting about 600 international students and teachers for our summer school, "Take the best from East and West". This year it is celebrating 20 years! We strive to get better all the time but, unfortunately, quality in higher education is not sufficiently recognised as a priority by the Slovenian government and resources are not effectively allocated. Almost all the investment in quality and internationalisation come from the faculty’s own resources, earned in the market. Our accreditors are often surprised by how much we are able to do with the resources we have. Anyway, so far so good, we just need to be careful that we don’t run out of enthusiasm, which is our main fuel. Accreditations are difficult to get and equally challenging to keep.

TST: Why does impact matter?

Marjan Smonig: Using the words of the EFMD Global Network, business schools are under increasing demands to demonstrate their impact and are referring more and more frequently to the issue of impact when defining their mission/vision/strategy. From the data of EFMD Global in 2018, out of the 55 schools to which the AACSB and EFMD board members belong, 42 (that is 76%) use the terms "impact" or "influence" in defining their core purpose. But it is not enough to "merely" mention impact. Schools need to understand

the strategic value in assessing, measuring and analysing impact. The Business School Impact System (BSIS) scheme is designed to determine the extent of a school’s impact upon its local environment – the city or region in which it is located. The BSIS process is offered as a joint venture between the EFMD Global Network and FNEGE as a service to EFMD members in any part of the world.

TST: Are you living up to the mission of FELU?

Marjan Smonig: Completed in September 2018, the BSIS report concluded that FELU has significant financial impact on the impact zone and highlighted some remarkable features of the school: • the major player in the field of management education in Slovenia and in the region; is providing up-to-date, top-quality business education to a large number of Slovenian students and with over 600 international students it offers a vibrant learning environment.

• has both an exceptional academic impact, its research and intellectual impact are global and local.

• has a very extensive impact on firms and organisations in Slovenia, thanks to its active, experiential pedagogy that constantly seeks to link learning and practice.

• is strongly embedded in the country, is at the heart of the Slovenian networks and plays a significant role within its economic and political ecosystem.

• has an impact in the societal sphere that is both broad and deep; the school is a role model in terms of ERS for other institutions in its environment.

is also the title of the lecture by the invited guest, Vivienne Parry.

An excessive and convincing story to tell regarding the impact and activities of FELU and its faculty is the recent news that the book "Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts", of which Professor Adriana Rejc Buhovac is co-author with Marc Epstein, was selected by Bookauthority as one of the world’s most influential books in the area of sustainability.

TST: What are the EFMD Global Network activities planned for the future?

Marjan Smonig: With the increasing interest in impact and the number of schools signing on to the BSIS process, building a community to facilitate interaction and to share best practices is becoming increasingly necessary.

On 24-25 April 2019, EFMD GN will organise its first BSIS symposium on impact, bringing together a broad range of Business Schools (BSIS and non-BSIS schools) to share experiences, advance the conversation on impact and strengthen our growing community.

By having a FELU representative on the organising committee of the symposium, our school has an important role in the preparation of the event. Also, due to the fact that FELU was the global pilot in introducing the joint visit Equis/BSIS, at the symposium a special contribution from FELU as a testimony to the synergies between Equis accreditation and BSIS is foreseen.

TST: Is there an ‘impact’ of the BSIS process on the FELU?

Marjan Smonig: As Professor Metka Tekavčič,

TST: Are there any FELU activities planned as a follow-up to the BSIS Report?

the Dean of the Faculty of Economics, University of Ljubljana, said at the end of the BSIS process, "going through this process was an experience of broadening horizons for FELU and expanding our understanding of the impact on different stakeholders. The BSIS feedback, with recommendations from the experts, provides a great opportunity for the school to confirm and identify future actions to improve quality and impact."

Marjan Smonig: The report confirmed that FELU has an extensive impact on firms and organisations in Slovenia. In 2018, FELU started to disseminate the research results. On 17 December, the FELU Research Day will be organised, focusing on evaluating the year, 2018, and the objectives and activities for 2019. In light of the BSIS results and recommendations, the focal point of the research day will be the relevancy and dissemination of research. "Relevancy and Dissemination of Research Work"

Schools need to understand the strategic value in assessing, measuring and analysing impact.

The report confirmed that FELU has an extensive impact on firms and organisations in Slovenia.

The report stressed a very strong and positive local and international image of the school with excellent regional, national and international recognition and reputation.

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Education Perspective Interview: Dr. Daniel Susskind, Fellow in Economics at Balliol College, University of Oxford

Some developments in the artificial intelligence fields are raising quite provocative questions

By Tina Drolc, M.Sc.

Artificial intelligence (AI) is the next frontier in the race for technology dominance and is no longer limited to movie screens; it is part of our daily lives. According to Statista, revenue from big data and business analytics worldwide added up to 122 billion U.S. dollars in 2015. By 2020, this figure is forecast to pass the 200 billion U.S. dollar mark for the first time. On November 2018 more than 120 leaders from 20 countries attended IEDC’s International Annual Presidents’ Forum with Dr. Daniel Susskind from the University of Oxford. He is the co-author of the best-selling book, The Future of the Professions. His TED Talk, on the future of work, has been viewed more than 1.3 million times. Previously he worked in the British Government – as a policy adviser in the Prime Minister’s Strategy Unit and as a senior policy adviser in the Cabinet Office.

Q AI is high on the agenda in most sectors, how our privacy is affected by the development and application of AI? A I think significantly. One of the challenges with these technologies is that we spend a lot of time reflecting on their capabilities, but we do not pay enough attention to the social and culture consequences that they have. For instance, the news that we get and the information we receive, the political debates we have; these are all shaped by the online platforms that we use and the algorithms behind that drive them. As my brother, Jamie Susskind, puts it in his book, Future Politics – software engineers are now becoming social engineers as well.

Q From your perspective medical issue, a legal issue, or tax issue could be replaced by the AI. Why?

Dr. Daniel Susskind, Fellow in Economics at Balliol College, University of Oxford

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A First, you need to stop thinking in terms of jobs – lawyers, doctors, teachers – and instead think in terms of all the different tasks that make up a job. When you do this, it becomes clear that, in any job, many of the tasks that are done are routine and can be automated even today. The second is that many of the non-routine tasks that remain in the job – the sort of activities that require creativity, judge-

ment, empathy -- can now be done by machines as well, using lots of processing power, data storage capabilities and advances in algorithm design.

Q So the AI just assists to the jobs and cannot replace them entirely?

Last year McKinsey looked at hundreds of occupations and found that while only 5% can be fully automated, about 60% of those occupations were made up of tasks of which 30% can be automated. The fundamental question is will there be enough demand for those residual tasks that remain. In the medium term, through the 2020s, I think the answer is yes; beyond that, I am less sure.

Q Is the AI as smart as much algorithms we put into it – so just powerful as we empowered it or it could be something more of it?

A I distinguish between two waves of AI. In the first wave, AI systems were based on copying human beings and their reasoning process – it involved sitting down, getting a human being to explain how they performed a task, and then trying to capture that explanation in a set of instructions for a machine to follow. What is interesting by the second wave of AI is that

Education Perspective these systems no longer try and copy human reasoning. Again, they are using lots of processing power to run algorithms through large bodies of data, hunting for rules to follow that may or may not resemble the ones that human beings happen to follow.

Q Which projects nowadays excites you the most in the fields of AI? A There are two fields: one a field known as

affective computing, where researchers are trying to design systems and machines that can both detect and respond to human emotions. They are now systems, it is said, that can distinguish between a smile of genuine joy and one of social conformity, or between a face showing real pain and fake pain, better than a human being. People tend to assume that tasks which require empathy or personal interaction from human beings must be out of reach of automation – but these developments raise interesting and provocative questions about that assumption. The second field that interests me is known as computation creativity, where researchers are trying to design systems and machines that can perform tasks that might require creativity from human beings; compose poems, write stories, generate works of art, and so on. And again, people tend to imagine that machines could never perform a task that requires creativity from a human being. But once again, the developments in this field challenge that.

Q Based on said, what are the tasks that in your view are the last that will be automated?

A Imagine a world in which machines can do everything better than human beings. In that

world, I imagine, there will still be tasks that we value not only because of the outcome they achieve, but because of how they are carried out as well – in particular, that they are carried out by human beings. For instance, someone who walks into the Sistine Chapel and looks at the painting on the ceiling is likely to say both "gosh, that painting is beautiful" but also "is it not amazing that a human being painted that!". Machines could almost certainly paint a replica of that ceiling, but we would not feel the same sense of awe and excitement that we feel when we know a very talented human being painted it. I think there will be some residual tasks like this, that we could automate, but we will choose not to, because we value the very fact that human beings will have done them.

The future is very uncertain.

Because of that leadership will become more important, helping us to navigate that uncertainty and find a path through it.

Q How does Artificial Intelligence and affect leadership?

A The future is very uncertain. Because of that leadership will become more important, helping us to navigate that uncertainty and find a path through it. I think there are two fundamental challenges for leaders. The first, again, is not to think about their future in terms of jobs but in terms of tasks, to not think about their overall role as a "leader" will disappear –

Dr. Daniel Susskind, Fellow in Economics at Balliol College, University of Oxford Prof. Paul Claudel, IEDC-Bled School of Management Prof. Danica Purg, Dean & President of the IEDC-Bled School of Management

that will not happen – but instead to ask, "what particular tasks do I do in my role as a leader that might change in the future". The second is to reflect on how the activities that those you lead will change as well; these will change dramatically too.

Q How does look like the geo landscape of the AI: China is beating the US in AI Europe experts are challenging both? And there is also the startup industry of Israel that is targeting today’s hottest tech sector…

A It is interesting that, in the past 24 months or so, almost every developed country has published an AI strategy of some sort. I think in many cases, though, they are "talking the talk", but not yet "walking the walk" in terms of providing serious support to the AI sector. At the moment, the AI sector does seem to be dominated a race between two countries – China and the US.

www.iedc.si/mba

Executive MBA Program Not every EMBA is relevant. Choose the one that is.

Autumn Edition 2018 | The Slovenian Times

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Experience&Lifestyle Slovenia

December in Ljubljana: a varied program and festive atmosphere

Photo: Nik Rovan

At the end of November the festive lights were turned on in Ljubljana and the holiday fair opened, marking the beginning of the festive December in Ljubljana. A varied program, in the beautifully decorated old city centre, keeps everyone entertained until 6 January, next year.

Petkovšek Embankment, Trubar Street, Mala ulica Street, Wolf Street, Vega Street, French Revolution Square and Slovene Street at the Ursuline Monastery and the intersection of Slovenska ulica and Gosposvetska ulica (Ajdovščina). A novelty is also the light connection between Breg Embankment and Gallus Embankment, spanning the Ljubljanica River.

Festive fair Photo: Nik Rovan

Festive lighting The designer of this year’s decorations is again artist, Zmago Modic, with the theme Coming Closer. In his words, the decorations include shooting stars of the universal Ljubljana and other signs, with a special emphasis on coming together and aspiring toward the symbiosis between lives on the planet. The decorations are comprised of enriched elements from previous years.

The new decorative elements are placed above Prešeren Square, the Three Bridges, Stritar Street and partially above the City Square and the Ciril Metod Square. They enrich the

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The Slovenian Times | Winter Edition 2018

Photo: Nik Rovan

The festive fair, which traditionally becomes the centre of social events for a month, opened with the turning-on of the lights. At Breg Embankment, Cankar Embankment, Congress Square and Prešeren Square there are 50 gift and food stands. This year, a food stand moved from Breg Embankment to Gallus Embankment, joining two other food stands which had been set up at this location last year. This year, the festive December has expanded to a new location, the Petkovšek Embankment, where three fair stands from Breg Embankment have moved.

Stands selling gifts on Breg Embankment and Petkovšek Embankment are open from 10:00 until 22:00, and on Fridays and Satur-

Experience&Lifestyle Slovenia The fireworks are compliant with EU legislation (CE certificate) and made exclusively out of paper, that is, degradable materials. In case of fog, increased cloudiness or strong winds, audible fireworks with low flying rockets will be used.

A very high number of visitors attend December events in Ljubljana, therefore we kindly ask you to remain patient in traffic. Leave on time for the city centre and consider using the fastest means to get there. You are advised to park in the P+R parking areas on the outskirts of the city and take a city bus to the city centre.

Music program in city squares

Photo: Nik Rovan

days one hour longer. The food stands are open from 10:00 until 24:00, except those on Breg Embankment which close an hour earlier.

In line with Ljubljana’s sustainable orientation, culinary providers are using sustainable packaging made of paper, cardboard or wood, that is, biodegradable packaging. Each caterer is offering at least one dish from the Taste Ljubljana repertoire.

From 14 December to 1 January, within the framework of the music program, numerous Slovenian and foreign musicians will perform on stages in the New Square, Congress Square, City Square and French Revolution Square: Jan Plestenjak, Nina Pušlar, Petar Grašo, Danijela, Čuki, Plavi Orkestar, Victory, Rok´n´Band, Nika Zorjan, Slon in Sadež, Elvis Jackson, Katalena, Čedahuči, Big Band Šentjur, Maraaya & Jazzilaz, Šank Rock, MI2 and others.

Guided holiday city tours Guided tours of the city also have a festive character in December. From 1 December until 6 January, visitors can enjoy a fairytale Ljubljana with a tour starting every day at 17.00 from the Ljubljana Tourist Information Centre at Adamič Lunder Embankment 2.

And nobody will be cold during a guided tour, each guest will be offered a cup of mulled wine and a gingerbread biscuit.

Photo: Nik Rovan

Visitor safety Responsible for safety during festive events are the police officers from the Police Directorate Ljubljana, the Police Station Centre and the Municipal Police Department of the City of Ljubljana. Visitors are advised to be vigilant and protect their property to prevent possible theft.

Photo: Nik Rovan Photo: Nik Rovan

The festive fair, within the framework of December at the Ljubljana Castle, is again held in the Ljubljana Castle Courtyard. There are gift and food stands set up for visitors.

Photo: Miha Mally

Traditional features of the December program are the St. Nicholas Fair at Prešeren Square, the St. Nicholas Procession, the Magical Forest – creative workshops for children, performances of organ-grinders, the Christmas Concert in front of the City Hall, five Father Frost Processions with his entourage, street theatre performances, the music program in the city squares and the New Year’s celebration for children in Congress Square at 16.00. The open-air New-Year’s Eve celebration will be held at four locations and at midnight there will be five minutes of fireworks from the Castle Hill which will light up the city.

Winter Edition 2018 | The Slovenian Times

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Experience&Lifestyle Slovenia TST Where is the trend for hybrid vehicles the strongest and how alive is it in Central and South Eastern Europe, especially Slovenia?

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Interview: Mr Kensuke Tsuchiya, President, Toyota Adria Group Ltd Mr Gregor Mauko, Commercial Director; Toyota Adria Group Ltd

TST How do you approach the European

Dedication to hybridisation and the highest level of craftsmanship

Gregor Mauko: We are quite distinct from

By Tina Drolc, M.Sc.

TST How does Slovenia encourage green solutions in the automotive sector?

Lexus is one of the leading manufacturers of premium hybrid cars, aided by decades of R&D by parent company, Toyota Motor Corporation. According to the Auto Express 2018 Driver Power survey, Lexus continues to lead the field as Britain’s best car manufacturer. The results of the survey show Lexus topping the rankings when it comes to interior quality, comfort and build quality, which is attributable to "Takumi". Mr Kensuke Tsuchiya, President of Toyota Adria Group Ltd., explains that "Takumi" is Japanese for craftsmanship, a philosophy that explains the maximisation of the human ability for detail and only 19 people in the Lexus factory are qualified in Takumi to create the interior details for Lexus.

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Gregor Mauko: In the case of hybridisation, the strongest region is Europe, followed by the United States and Japan for both Toyota and Lexus. In Europe, 95% of Lexus sales are hybrids, in the case of Toyota, in Western Europe more than 50%. Slovenia is in line with Europe – for Lexus we sell only hybrids, we have not had diesel since 2011 and customers really appreciate the hybrid technology. In the past there were some challenges with extremely diesel-oriented markets, but it was more related to the awareness, because once you drive a Lexus hybrid model, you will not go back to diesel. In this sense, we expect many brands will promote plug-in hybrids in the future, but they do not really have experience in this area.

When we look at the market as a whole, it is actually not strong. The European average for hybrids is less than 3%, Europe is still quite diesel oriented.

The Slovenian Times | Winter Edition 2018

Union's emissions requirements? other brands, also in terms of regulation. In the EU, the given deadlines – the initial 2020 and then 2030 - few are likely to achieve the targets in the automotive industry, except us! In addition, I would like to say that our environmentally-oriented strategy and hybrid cars affect customer satisfaction. Customers enjoy driving our cars because they are much more silent and people are more relaxed. In Italy, they made a very interesting study which showed that drivers of hybrid cars are lucky much moreso than non-hybrid, it means that hybrid has an important impact on your mood.

Gregor Mauko: Regarding the infrastructure, in Slovenia there is only one fuel sell 02

Experience&Lifestyle Slovenia pump which is 10 years old and it cannot be used for current technology, but Slovenia is not the worst, you have a similar situation in Germany. The good news is that the government announced last year that from 2030 no diesel, only EVE (Efficient, Viable, Environmental) fuels. This is not realistic, but it means that the country should invest into infrastructure.

I do not know whether there is some strategy behind these announcements, or if they have any. In addition, taxation is related to this and the Slovenian government is really far behind in this area.

TST In this sense, which country is "best practice"?

Gregor Mauko: A good example is Norway, which is the most advanced in Europe in terms of the penetration of electric cars. But how are they doing it? Most of the money actually comes from the oil industry, they reinvest into the green infrastructure and in this area the government has some plan.

TST According to the Annual Report 2017, Mr Akio Toyoda, President and Member of the Board of Directors, Toyota Motor Corporation said: "I want Toyota to be not just an automotive company, but a human movement company. 'Move' refers not just to transportation, but also to inspiring deep emotion or excitement." What is the mobility of the future based upon and how are you going to compete?

Kensuke Tsuchiya: Indeed, Toyota has been investing a lot into AI, which is one of the trends of the future. Actually, Toyota started to rent a robot under to its new vision that holds the slogan "Mobility For All". The Paralympic athlete, a man with a pure heart, a consistent, optimistic and energetic person, inspired Akio Toyoda. He decided to invest in this area and now we have a global partnership for the Olympic, and especially the Paralympic, athletes.

The previous president of the International Paralympic Committee has become a board member of Toyota Corporation. Consequently, also in Slovenia, we do our best to increase the awareness of providing mobility for all and to enable human movement.

Very much connected is our "Heroes drive in pajamas" project in Slovenia, in cooperation with Zavod Vozim and Generali, and the project "Mobility for all" in cooperation with BDF. handle and AMZS. Young people, aged from 15 to 29, are involved in more than 30% of car accidents because of alcohol, therefore we, as a car company, feel the responsibility for this area. So "if you drink, don`t drive!". We are aware of the significant impact of this problem and want to encourage both young drivers and

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their parents to take responsibility together, and make sure that adolescents return home safely after partying. We take this initiative very seriously. We provide a vehicle that waits for the young people in front of the nightclubs.

When they come out, we check the alcohol level and if it is more than legal, we take them home for free and disabled people drive them. At this point, I should mention the "Mobility for all" project that gives the opportunity to disabled people to drive a vehicle with help of BDF.Handle, this is just one of the solutions that realises Toyotas` philosophy to be a provider of equal mobility for everyone. We believe that this philosophy will allow us to appreciate individuality even more and set ourselves free from the established ways of thinking, discrimination and prejudice. However, the motto "Mobility For All" was not designed just for people with various physical limitations, but instead has a much wider meaning and encompasses everyone.

helping people to walk or to be mobile. On the other hand, as you asked, the car industry is moving to car sharing. Toyota has established a few companies that are focused on connected services, car-sharing technology, and in this sense, we see many opportunities in Slovenia as well. Next year all of the cars will be equipped with the technology to be connected.

So, our forecast is that in the next few years, by 2025 almost one third of Toyota’s income in Europe will be generated from the car-sharing economy.

Gregor Mauko: Toyota’s social contribution consists of a hybrid car with a special handle so that disabled people can drive. In the case of the "Pajama project", when you see a Toyota or Lexus car with this special handle and that someone without legs is driving you home and saying: "I once did the same as you did today and I paid for it with my legs", everybody becomes sober very fast.

Therefore, Toyoda’s vision has been: "I do not want to be only a car manufacturer, but I would like to move people". Because the population is older, etc. Toyota is really investing in robots, which in Japan are mostly used in the old people’s homes and in such institutions, robots are

TST Can you explain the ancient Japanese concept of 'Takumi', which applies a human touch to every aspect of Lexus design?

Kensuke Tsuchiya: 'Takumi' means Japanese craftsmanship, a philosophy that explains the maximisation of human ability for detail. It is much more than a machine and much more then AI! A sense of art, sense of the details, this is Takumi. In the Lexus factory we have only 19 people who are qualified in Takumi and these are the people who create the interior details for a Lexus. When you check the Lexus interior, it is really very detailed and Takumi technology really affects all the senses with its design.

PHOTOS 01 Lexus RC Luxury Sport Coupe 02 Meet the Takumis: Hand Molded Precision 03 Kensuke Tsuchiya, President of Toyota Adria Group Ltd. 04 Gregor Mauko, Commercial Director at Toyota Adria Group Ltd.

Winter Edition 2018 | The Slovenian Times

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Experience&Lifestyle Slovenia Interview: Prof. Uroš Ahčan, M.D., PhD. is a head of Clinical Department of Plastic, Aesthetic and Reconstructive Surgery Ljubljana.

Supermen in Today’s Knowledge-oriented e-Society:

Case of Reconstructive Surgery

By Lucija Mulej Mlakar

Q Professor Ahčan, the knowledge society opens new possibilities, an escape from the digitalised, virtual and "unhuman" context of post-modern, digital holographic esocieties. What is your strict and scientific definition of knowledge?

A In medicine, knowledge is addressed as "ev-

Prof. Uroš Ahčan, M.D., PhD. is a head of Clinical Department of Plastic, Aesthetic and Reconstructive Surgery Ljubljana. He is also inventor and writer, totally dedicated to his mission and vision.

In his private Praxis Juventina Clinic his holistic approach helps many. (www.juventina.si)

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The Slovenian Times | Winter Edition 2018

idence-based medicine", profoundly rooted in neutral data collection with body-time narratives. Yes, the body is our domain, the biology perspective, chemistry foundation and psychology just a supplementary science. We need to act, react, heal and rescue. Our knowledge is always supported with real life cases and requirements, and the luxury of philosophical thinking, though attractive and meaningful, is an open space for wonder, laughter and feelings of belonging in rare and special moments.

That comes along with my family, my wife and two daughters, and good friends, where my mind is at ease and my heart is still and words do not need to be spoken. Digitalisation is probably the opposite. Sometimes, creating obstacles for a human touch, for the magic of a moment "when two eyes meet", for mutual feelings of belonging and purpose. At other times, technological support is indispensable, such as in microsurgery. Technology should be supportive not omnipotent, striving to control

our minds. As we see with our youth, technology is misleading, leaving no space for creativity, spontaneity and the development of social skills.

Q Your field of expertise is hard core science, where numbers, weights, percentages and reckonings prevail. What about the subjective parts of the medical agenda?

A You are right, surgery is body fixing and healing is just the first step, we are unaware of what is in a patient’s mind. Still, we can rely on our intuition, inner sensation and anticipation of what might come next. But this is still just guessing, isn’t it? I had one operation years ago, we treated a skin tumour where the patient was in hypnosis with the help of hypnotherapist, which I firstly doubted I must say. The patient was without any medication, under the supervision of an anaesthesiologist and all my surgical cuts, electrocautery and stiches were performed as in general anaesthesia. There was no movement of the patient, no side effects, blood pressure and heart rate weren’t altered. So, phenotype plays a role, as does healing ability. In all my cases, the same operation or procedure and techniques, team endeavour and support does not deliver the same results. There is more to question about the subconscious effects of the

Experience&Lifestyle Slovenia mind and body, and science needs to delve into a more profound investigation of phenomenon aside from well known physical characteristics.

Q As a world-renowned surgeon and thinker, where do you see your future role as a doctor, surgeon and Chief of the University Clinical Centre for Reconstructive and Plastic Surgery, Ljubljana?

A Being a head of department, there is sometimes too much paperwork and administrative conundrums. Occasionally, one can merely rely on expertise, teamwork and a good working spirit between colleagues. Most MD’s are totally overwhelmed with their passion, sub-specialty and eagerness to always learn.

Yes, we overcome budget cuts and human intolerance with our energy, passion and our patients healing, giving us fuel for our mission.

My future role will remain in my dedication to my specialisation, profession and vision of what is best for my patients. Medicine can give so much more, especially when it is subjected to mutual results, progress in the field and a multi-disciplinary approach, yielding new knowledge. Connectivity of basic sciences with technology is a future paradigm shift for medicine! Technology supports advanced apparatus and mobilises silent forces and solutions of a new kind.

Q Sociology of science, especially relating to novelties and inventions, states that the right work culture and personal background creates optimal contexts for success, where Slovenia seems to be special. Records show you have many heroes and heroines, people of high level of performance in sports, science, medicine ect. As psychoanalysis states, suppression unfolded is a pathway to immortality? What is your secret?

A For example, permissive, indulgent and pleasure-seeking parenting where parents are very involved with their children, placing just few demands or controls on them, nurturing and accepting all kinds of needs and desires, support virtual and e-societies, where almost everything is created by itself. With no inner quest, you state distrust or conflict, no space for establishing active self, e.g. actor, is present.

And initiative, coming from deepest frustration is sometimes critical angle for novelties and yes, solutions. If we are not confronted with problems and riddles that for example medicine and surgery are full of, we are not forced to investigate, create, think and adjust.

If we do not use our organs and muscles, their ability to function reduces. Use of our skills and capabilities make us stronger, more successful and resistant to all sorts of stress in unpleasant

situations. As in all aspects of life, we notice less abundance generates resilience, where agility, as a personal characteristic, is always in line with the ability to make the right decision in critical times - when lives are threatened, with complex malformations such as trauma or cancer. Slovenia is certainly a safe and picturesque country with many opportunities and our history has shown that we have strong personalities. We live together for centuries and I believe in the power of teamwork and a multidisciplinary approach with no artificial or irrational boundaries.

Q You shaped a miracle, the first in the history of plastic surgery, you explored and designed a project of nose shaping in accordance with 3D prints on a patient’s hand…? Would you be able to repeat this kind of brilliance in another, richer environment?

A In this case we used some old methods, known for more than 2,500 years, reconstructive surgery and microsurgery techniques known for decades with new technological advanced 3D animations, planning and model printing where free tissues were used to make a new nose. It was routed on a patient’s forearm where it healed as a well-designed, autologous body part. With a team of surgeons and other experts, we created the right environment for the right result. Miracle is maybe the consequence of good synergy, the right will, mutual respect and total trust.

Q What is your suppression? Can positive anger be a mobilizing force to overcome human imperfections and system defects?

A I think I am old enough to make mature steps, responsible decisions and my holistic understanding of the world gives me inner strength to accept my imperfections and forgive slips to my circle of colleagues and friends.

optimal supportive techniques and methods to protect people in most possible ways. Breast cancer is contemporary women disease number one. Every eighth woman suffers under breast cancer which means every eighth family is experiencing secondary trauma. Breast cancer is therefore important factor for happiness index measurement since contemporary societies are faced with new health challenges.

Today we have profound knowledge in treating this disease, like surgical techniques with free tissue transfers and microsurgery with almost 100 % successful rate. Here we have support of modern technologies, like 3D cameras, 3D bio printing, offering us improvements and best possible solutions and results. We have a 3D method patent where we scan and measure the healthy breast, then create model and new breast from patients own tissues, taken from the abdomen. Due to this method, cancer operations are more standardized, predicted and safer with greater functional and aesthetic results.

Q One citation in your book states: "According to the latest information from Forbes, the highest paid models could renounce one yearly payment of US $45m and bring a smile to the faces of at least 5,625 women". This is a strong comparison. When do you have time for book writing?

A I believe in knowledge and in vivid experience; I certainly do not support google knowledge seekers. The book, "Breast cancer and the best reconstructive options" is dedicated to women and their families, where everything regarding surgical treatment, breast reconstruction, diagnosis and paths of recovery are explained, yielding answers, support and real cases where women show and explain their way out of anxiety and trauma.

Link: www.newbreast.eu

Q Do you see any parallels between entrepreneurs and surgeons?

A The same as surgeons, entrepreneurs need ideas, create opportunities, work hard and be an example. A tough job, but full of blessings of all kinds.

Q What about breast cancer; many new techniques, methodologies and raisons d’etre have been introduced in recent decades. Also, your team of specialist gave some important and new insights to the very relevant topic.

A Contemporary medicine is open to all possible solutions, with minimum invasive and

Connectivity of basic sciences with technology is a future paradigm shift for medicine!

Winter Edition 2018 | The Slovenian Times

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Experience&Lifestyle Slovenia

RogLab Project awarded at the EUROCITIES conference At this year’s annual EUROCITIES conference, held in Edinburgh at the end of November, prizes for exceptional achievements in activities that improve the quality of life of citizens, were awarded. In the Innovation category, the award went to the City of Ljubljana’s project, RogLab - a creative and innovative centre.

In addition to Ljubljana, Düsseldorf and Strasbourg were in the final selection.

recognition for the many people who took part in the birth, development and life of RogLab. RogLab is a model for linking an organisation that tries to respond to the needs of creators who are facing the challenges of globalisation, digitalisation and technology breakthroughs. It is a medical space where comic writers and electro-engineers, fashion creators and physically impaired new entrants, children and urban planners, plumbers and millennials can meet in joint projects."

This is the second award by EUROCITIES for Ljubljana. In 2013, the City received the Smart Care Award for the project "Ensuring safety and equal opportunities in transport for children and people with disabilities".

Children‘s workshop in RogLab. Photo: Nika Curk

The RogLab project is a part of the Rog factory, an important industrial centre in the past, that will be turned into a modern creative space.

RogLab is the first step: a small creative junction, full of rapid prototyping equipment, founded in the City of Ljubljana. Together with 40 local and international partners, designers, artists and entrepreneurs provide equipment and technical assistance for implementing innovative ideas. Many of them focus on the challenges that life brings in the urban environment and on pressing social problems.

Over the course of six years, RogLab has hosted more than 4,500 individual users, 70% of which are women, and more than 200 children have enrolled in its education program each year.

In Ljubljana, with the help of RogLab, we are testing small working methods which could become the central part of the revitalised Rog plant in the future. Thus, with innovation and originality, it will again serve the creative, entrepreneurial spirit of Ljubljana.

At the award ceremony, Meta Štular, Head of RogLab, said: "The EUROCITIES Award is the

RogLabon Kreation at the Museum of Architecture and Design. Photo: Domen Pal

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The Slovenian Times | Winter Edition 2018

Experience&Lifestyle Slovenia

Zoran Janković elected Mayor of Ljubljana for the fifth time Photo: Uroš Hočevar

On 18 November 2018, in Ljubljana, the elections for the mayor and members of the City Council and the Councils of the Quaternary Communities in the City of Ljubljana, were held.

For the fifth consecutive time, voters showed great support for Zoran Janković, again entrusting him with the management of the City of Ljubljana. He was nominated with 61,287 votes or 60.47% of the votes, enough to be elected in the first round of the local elections.

The candidates on the Zoran Janković List also received significant support. The list will have the majority in the City Council of the City of Ljubljana this term, with 23 of the 45 city councillors.

In addition to the municipal councillors from the Zoran Janković List, the city council will consist of councillors from Levica, the Social Democrats (SD), the List of Marjan Šarec (LMŠ), the Modern Centre Party (SMC), the Party of Alenka Bratušek (SAB), the Slovenian Democratic Party (SDS), New Slovenia – Christian Democrats (NSi) and the List of Cyclists and Pedestrians.

The candidates from the Zoran Janković List received the majority of votes in all 17 communities in Ljubljana.

Zoran Janković will s lead the City of Ljubljana for four more years. Photo: Uroš Hočevar

Winter Edition 2018 | The Slovenian Times

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Experience&Lifestyle Slovenia

The Gala Event "A Tribute to Postojna Cave"

The Splendour and Glamour of

the 200 Year Anniversary of Postojna Cave On Thursday, 15 November, Postojnska jama, the company that manages Postojna Cave, held a gala event to pay tribute to the cave’s splendour on the occasion of the 200th anniversary of the discovery of its inner parts.

During the event, the cave shone in all its glory and was celebrated by some of the most distinguished artists, researchers and scientists. A special tribute to Postojna Cave was paid by the Slovenian writer, Drago Jančar and his lyrical text, which presented the cave and the 200 years since the cave’s discovery in a very intimate and exquisite way, was deeply touching for every single person present at the event.

The honorary patron of the gala event was the President of the Republic of Slovenia, Borut Pahor. The highlight of the program was a performance by Matteo Bocelli, who wowed the audience in Postojna Cave’s Concert Hall, deep under the surface, with the world-famous Caruso.

"I am honoured to be able to perform in the magnificent setting of Postojna Cave, which you cannot help but fall in love with," said the rising star, Matteo Bocelli, who topped the world charts in early autumn with a duet sung with his more famous father, Andrea Bocelli. Matteo concluded his solo performance with the song

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The Slovenian Times | Winter Edition 2018

Can’t Help Falling in Love, sung together with the Slovenian opera singer, Nuška Drašček.

The famous six-second echo produced in the cave presents a considerable challenge even for the best singers, however, the effect is magical and magnificent. Matteo Bocelli came to Slovenia at the special invitation of the Postojna

Cave management, which aims to maintain the tradition of performances by the most distinguished international artists; 90 years ago the tradition was started by the world-famous conductor of Teatro alla Scala from Milan, Pietro Mascagni.

In his keynote speech, the President of the Republic of Slovenia, Borut Pahor, compared Postojna Cave with the mystery saved for those who are interested in the magic of nature. He concluded his speech with a famous quote from Antoine de Saint-Exupéry: "What is essential is invisible to the eye!"

Marjan Batagelj, the General Manager of Postojnska jama, the company that manages Postojna Cave, presented a different view of the largest and to him, the most beautiful show cave in Europe. "Over the last two hundred years, Postojna Cave has been part of five different countries, from Austria and Austria-Hungary, Italy, for a brief period Germany, Yugoslavia and finally Slovenia. It has lived through various forms of government and political systems. The countries may have changed but what mattered most, when it came to the cave, was how well its respective managers took care of it. The mission of all of us who take care of the cave today is to do so sustainably. Our aim

Experience&Lifestyle Slovenia

The 29th Traditional Living Nativity Scenes in Postojna Cave From 25 - 30 December, the wonderland of Postojna Cave will stage 16 biblical scenes. Over its 29 year tradition, Slovenia’s first living nativity has grown into a veritable spectacle and now creates one of the world’s most stunning Christmas impressions. The nativity features 150 performers and unique scenes, staged along a five kilometre route, with a one-of-a-kind natural backdrop.

The highlight of this year’s Christmas and New Year’s spectacle, during which Postojna Cave will be illuminated by 2,100 lights, will be a performance by Helena Blagne, Irena Yebuah Tiran and Alex Volasko. Other highlights of the 90 minute tour will include audio-visual effects by the Magic Theatre Serpentes and a one-of-a-kind Bolivian nativity by the academy-trained painter, Ejti Štih.

During the festive season, visitors can also see a Solar Cell created by the artist, Eva Petrič, which will be charged at Postojna Cave’s famous rocky exit. The signature feature of the artist’s installations is the symbolism of lace. In late December, Postojna Cave Park will also host a traditional Christmas market and an exhibition of photos by the internationally acclaimed photographer, Ciril Jazbec.

is to leave the cave for the future generations in a better state than the cave was in when we took it over." When describing what it is like to take care of Postojna Cave, he used the expression 'the Sword of Damocles', pointing out that as a cave manager he is at all times keenly aware of the ever-present responsibility. After all, he is reminded of it every time he visits the cave by a Sword of Damocles shaped sculpture which was brightly illuminated at the gala event for the first time in the cave’s 200 year history.

Mr Batagelj concluded his speech with a patriotic thought, wishing that Slovenia will be the very last country Postojna Cave will ever call home.

Winter Edition 2018 | The Slovenian Times

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Experience&Lifestyle Slovenia Sportswear: And by Andraž

For those who are looking for

something unique

By Kaja Komar Photo: Jure Makovec

Fearless Filip Flisar, the fastest Slovenian moustache on the ski slopes, is often seen smiling and wearing vivid colours. Perhaps you remember him dressed in a turquoise shirt, a blue jacket or ski pants in the shade of Granny Smith apples.

This distinguishable clothing is made by the Slovenian brand, And by Andraž, which will celebrate its 30th anniversary next year. The company’s success shows that high-quality sportswear can be both fashionable and environmentally friendly.

Named after Nataša’s son, Andraž The story of the brand, And by Andraž, began in 1989 when Nataša Berginc graduated from her technology of textile studies at the Faculty of Natural Sciences and Technology in Ljubljana and decided to make a bold move. At only 22 years of age, with the support of her parents, she started her own company and designed her own brand, which she named after her son who was born that same year. "I started my business because I wanted to combine my passion for design and my love of sport," says Berginc.

"We wanted our brand to go international and so we decided on an English brand name so that it

All of the materials are made in the European Union and all have certificates of excellence, because we are aware that materials are the most important part of the sportswear.

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Experience&Lifestyle Slovenia would be easier for foreigners." According to the director of And by Andraž, their customers are active individuals and those who like a sporty style but seek something different and unique - something extra, something that is very high quality, durable and elegant enough to wear at non-sporting events.

Certified with only the best materials The company is especially proud of its ambassadors, top athletes, from Filip Flisar, Tim Mastnak, Blaž Janc, Tilen Kodrin to Nevena Ignjatović and a cyclist from the best nonprofessional club in Slovenia - JB team. "Our ambassadors represent all aspects of the brand and they help us improve our clothes," reveals Berginc.

They are the first to test the clothes and report back on the functionality of the designs and the durability of the materials. Slovenian buyers are quite demanding and the quality of the product is extremely important to them. "All of the materials are made in the European Union and all have certificates of excellence, because we are aware that materials are the most important part of the sportswear. We are loyal to our materials, but we look for new materials as well." Scientists are quite interested in materials and are always looking for improvements and innovations in this field. "There are a lot of novelties. Scientists are trying to find the way of how to heat the body through solar cells, which will provide additional heating in the cold mountains. There are more and more materials with UV-protection and new pigments, and more environmentally friendly and skin-friendly materials. We always use materials that are dyed in Europe, as European legislation prohibits the use of dyes that are aggressive and harmful to the environment and users." Berginc

For us, recycling is very important. All of our waste materials are sorted and donated to institutions such as schools, kindergartens ... of the clothes with the latest trends in fashion.

Since active and sports fashion is one of the fastest growing segments in the market today, they have teamed up with professional designers. Last year they worked with the young and talented fashion designer, Sari Valenci, who gained her fashion experience in Sweden and Los Angeles. "I met Sari through common friends and was instantly impressed by her boldness and difference. Her style of work has perfectly integrated into our story," said Berginc. With their collec-

tion, Sari Valenci for And by Andraž presented at Mercedes-Benz Fashion Week Ljubljana (MBFWLJ), they entered the fashion world. In November they showed their new collection, Neon future, at this year’s Ljubljana Fashion Week (LJFW), which is a collection of attractive colours and designs of multifunctional pieces for skiing, with certificates of excellence, and allows diverse combinations that can also be included in street fashion.

Photo: Jure Makovec

We always use materials that are dyed in Europe, as European legislation prohibits the use of dyes that are aggressive and harmful to the environment and users. is proud that they are a very environmentally friendly company, always striving for the preservation of our planet. "For us, recycling is very important. All of our waste materials are sorted and donated to institutions such as schools, kindergartens ... We could say we have less waste than a large family!"

Footstep in the fashion world The brand is not afraid of the fashion world either and tries to combine the functionality Winter Edition 2018 | The Slovenian Times

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Culture

Litteræ Slovenicæ – Home to 60 Slovenian Books in 10 Languages

By Nina Kokelj

For more than 50 years, the history of Litteræ Slovenicæ, one of the most prominent foreign-language collections of Slovene literature, has been rich and varied.

Series editor, Tanja Petrič; Photo: Matej Pušnik

It began in 1963 when the Slovene Writers’ Association, the Slovene PEN Centre and the Slovenian Association of Literary Translators, started a joint initiative to create the journal, Le Livre Slovène, to inform foreign audiences about contemporary Slovene literature and culture in general. In 1991, the journal was reshaped both in terms of content and visual elements into the book series, Litteræ Slovenicæ, with the editorial concept for the publication based on publishing representative prose, poetry, drama and essays from leading Slovene authors of various generations. The publications include in-depth commentaries by well-established literary critics that place each work in the wider literary-historical context. Translators involved in the project are the most experienced translators from Slovene into foreign languages; they are native speakers of the target language.

In 2015, the Slovene Writers’ Association, with the support of the Slovenian Book Agency and the European Commission, began to implement the project Litteræ Slovenicæ: A Small Literature in Major Languages, in the framework of which the web portal https://litteraeslovenicae.si/ was created. Aimed at foreign readers, this portal includes information on all the books that have been translated, as well as on the authors and translators.

In addition to the German translation of Jana Putrle Srdić’s poetry collection To noč bodo hrošči prilezli iz zemlje (The Night the Beetles Come out of the Ground), in the "Cankar year" of 2018 – where Slovenes are celebrating the 100th anniversary of Ivan Cankar, Slovenia’s greatest and also first professional writer – Litteræ Slovenicæ also published Podobe iz sanj (Images from Dreams), Cankar’s final collection of short stories and sketches. The special edition includes reproductions of paintings by Mitja

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The Slovenian Times | Winter Edition 2018

Ficko. "This marks the conclusion of one the most ambitious book projects of the Slovene Writers’ Association. In this special year, we wanted, on the one hand, to pay homage to our famous writer, while, on the other, through the first special edition of Litteræ Slovenicæ, launch the special representative collection of key Slovene literature in foreign languages in connection with other artistic types and new, different views on already canonised authors.

Cankar has been engaged through translation, essays and paintings by representatives of younger and middle generations of Slovene artists including Erica Johnson Debeljak, Jasmin B. Frelih, Mitja Ficko, Katja Perat and Robert Simonišek. At the same time, the book is a premium product from the award-winning designer, Pavla Bonča and is not only food for the soul but also a pleasure to look at," wrote series editor, Tanja Petrič.

Designed by Ranko Novak and Pavla Bonča, two leading Slovene graphic designers, books from the Litteræ Slovenicæ collection are ideal business and protocol gifts. Pleasing to the eye, they contain a selection of the peak of Slovene literature in translation. Books in the Litteræ Slovenicæ series are an international home, with more than 150 Slovene authors, translators and 60 books in 10 languages. The series represent an image of one the most prominent aspects of Slovenia, its colourful artistic landscape and rich literary heritage.

Event Guide

 Culture  Entertainment

Bled: Ice rink with a view 23 Nov 2018 – 16 Jan 2018, Hotel Park Coffee Shop Terrace, Bled The ice rink is open every day between 9.00am and 9.00pm. You are invited to join animation events on the ice rink: Every Wednesday, 5.00pm - 8.00pm Curling Price: EUR5.00 per person (min. 4 persons) Come and have fun and try something "new" knowledge of curling is not necessary! You only need to register in advance at the Hotel Park Coffee Shop.

Every Friday, 8.00pm - 9.00pm Salsa dancing Salsa dancing on skates. Enjoy winter gastronomy, and toast with a mulled wine.

Every Saturday, 11.00am - 12.00pm Children’s skating with Zaki and Rozi the swans Children ice skating in the company of Zaki and Rozi!

Every Saturday and Sunday, 6.00pm - 9.00pm Ice skating to the rhythm of DJ music Ice skating to the rhythm of DJ music. Enjoy winter gastronomy, and toast with a mulled wine.

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The Nutcracker – A Christmas Carol 18 – 23 Dec & 26, 27 Dec 2018, Slovene National Theatre Opera and Ballet Ljubljana The Nutcracker – A Christmas Carol, created by the choreographer and director, Youri Vámos, is a great hit among ballet lovers, its magic conjures the festive atmosphere every Christmas and New Year holiday. "It is a performance with the right amount of charm and jolliness, offering fluttery feelings of expectation for everyone."

One of the most beautiful fairytales – conceived by the librettist Marius Petipa after Dumas’ adaptation of Hoffman’s, The Nutcracker and the Mouse King, – was the inspiration of the choreographer and director from the timeless story, A Christmas Carol, written by Charles Dickens.

The main character is a stingy misanthrope who hates Christmas. His nightmares make him aware of all the wrong that he has caused in his life and so he repents and turns into a loving and generous man.

This performance, delivering a deep message about how kindness and compassion towards others can make a person happy, has been staged by the Ljubljana Opera Theatre almost 60 times and it continues to fill the auditorium, not only because it is a genuine candy shop for a child’s imaginative world, but also a picturesque performance for all those who enjoy beautiful music and ballet virtuosity.

Event Guide The Slovenian Times | Winter Edition 2018

 Culture

Circa: Humans 28, 29, 30, 31 Dec 2018, Cankarjev dom (Cultural and Congress Centre), Ljubljana Creation: Yaron Lifschitz and Circa Ensemble Production: CIRCA Contemporary Circus At the cutting edge of contemporary circus, Circa assigns the main role to humans. Dispensing with props, dazzling set design and renouncing animals, Circa’s cast includes exclusively people. Blending dance, acrobatics and circus elements, a team of highly skilled acrobats test their powers of endurance and perform remarkable feats of strength. Established in 2004 and based in Brisbane, Australia, Circa’s Artistic Director is circus visionary, Yaron Lifschitz.

Fusing extreme physicality, consummate acrobatic skills and dance choreography, Humans delves into the mysteries of the human body, its limitations, its beauty and transience.

A gripping piece of physical poetry, Humans reminds us that the human body is one of the most beautiful, most powerful, as well as most vulnerable organisms in the world. It is a spectacle driven by inventiveness, the human body and ways of transcending physical barriers.

A spectacle of raw corporeality in the service of imagination and art. A 21st-century circus.

CIRCA.

Event Guide

 Culture

New Year Concert Slovenian Philharmonic Orchestra 1 Jan 2019, Cankarjev dom (Cultural and Congress Centre), Ljubljana

 Entertainment

Conductor: Philipp von Steinaecker Soloist: Nika Gorič, soprano Program: J. Offenbach, F. von Suppé The first concert of the new year features soprano, Nika Gorič, who has been making a name for herself in front of discerning English, German and Australian audiences. Philipp von Steinaecker has selected a vibrant program of two masterful composers who co-shaped the theatre-music world in late nineteenth-century Paris and Vienna.

Disney On Ice: Reach for the Stars 25, 26, 27 Jan 2019, Stadium Stožice, Ljubljana Mickey and his pals set the stage for a star-studded talent extravaganza as Disney On Ice presents Reach For The Stars. Sing along with Anna, Elsa and Olaf to songs like "Let it Go" and "In Summer."

Sebastian strikes up his band and the Daughters of Triton introduce Ariel in a pop montage. Get tangled up with a chorus of rowdy inhabitants of the Snuggly Duckling when they get a visit from Rapunzel and Flynn Rider. Relive a tale as old as time when Belle opens her heart and the Beast’s enchanted staff take center stage for a dazzling spectacle. You never know what unforgettable feats your family will discover when Reach For The Stars debuts in your hometown!

 Culture / concert

 Sport

Glenn Miller Orchestra

Jubilant 55th Golden Fox 2019

6 Jan 2019, Cankarjev dom (Cultural and Congress Centre), Ljubljana

1 – 2 Feb 2019, Mariborsko Pohorje (Habakuk slope and the snow stadium)

The Glenn Miller Orchestra, directed by Wil Salden, released in January 2018 an outstanding CD 'Jukebox Saturday Night', which thrills people of all ages from all over the world.

'Jukebox Saturday Night' will also be the theme of the new concert program for the next two years. The Glenn Miller Orchestra is on an extensive European tour with 130 shows planned in 15 European countries. The world of music is still inspired by numerous, unforgettable tunes and arrangements, more than 80 years since the formation of the Glenn Miller Orchestra.

February will see the 50th anniversary of Maribor hosting the World Cup. The first, world ranked, Golden Fox competition for ladies was organised on 17 - 18 January 1970. That year, at the 7th Golden Fox, Austrian, Annemarie Proell, emerged victorious in the giant slalom, the first of many wins in World Cup races for the Austrian who is recognised as one of the best alpine skiers of all time. In the slalom event, the winner was American, Barbara Cochran, who also took first place in the combined event.

The Golden Fox’s 50th anniversary could not be celebrated in Maribor because, in 2014, it was forced to move to Kranjska Gora where the giant slalom event was cancelled and the slalom was run despite the sleet that crippled the entire country. And so, in 2019, the celebrations will be all the more jubilant.

Winter Edition 2018 | The Slovenian Times

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