the slovenia times winter edition 2015

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Slovenia, a great country for a winter escape

Interview: Professor Arturo Bris, Director, IMD World Competitiveness Center

Slovenia Needs Focus to Become More Competitive

Interview: Dr Miro Cerar, Prime Minister of the Republic of Slovenia

Our State Must Become a Promotor of Sustainable Economic Growth and Development

The Slovenia Times Slovenian Magazine in English Language Winter Edition 2015, Volume 12, EUR 4.90

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Slovenia’s time-tested qualities make it a prime location for greenfield production, regional HQ, distribution and logistics centre or R&D facility.

We provide support for foreign investors looking to take advantage of the country’s strengths. We continue to work with businesses under our aftercare programme to ensure your investment is a success.

2 The Slovenian Times | Winter Edition 2015

This time, In the Spotlight focuses on competitiveness where Slovenia has a lot to do to improve. Arturo Bris, Chairman of the IMD World Competitiveness Center, believes that the country needs to specialise in certain industries in order to improve its ranking and that the government should therefore create the conditions for the private sector to generate jobs. On how to achieve this, several business leaders in Slovenia offer solutions based on their experiences.

With regard to the challenge of competitiveness, The Slovenia Times spoke to Slovenian Prime Minister, Dr Miro Cerar, who points out that the state must become, and be perceived as, a key supporter and promotor of sustainable economic growth and de-velopment. The PM defines one of the priorities of his mandate is to ensure a predictable and business friendly environment.

However, in the Economic Review, there is an analysis of FDI in Slovenia; for foreign investors, Slovenia still does not seem to be effective and attractive enough to invest more. Speaking with the leading bankers in the country, we analyse the banking environment in Slovenia Business Challenges.

Internationalisation is a topic we discover with the international Chambers of Commerce and Business Clubs in Slovenia in International Business Partners. However, when it comes to innova-tion and the recently adopted Slovenia’s Smart Specialisation Strategy “People and knowledge are the creators of development and Slovenian society needs to accept and support this”, says Dr Maja Makovec Brenčič, Minister of Education, Science and Sport in an interview in the Global Pitch section.

And finally, among other inspiring topics of this season, there is a place for a winter tale. We provide some fashion tips in the Seasonal Dress Code and obviously, we had to present the most exquisite places to escape weather for some winter sporting activity or to just enjoy this time of year in Slovenia.

And for the festive season, I wish your Christmas to be white and your spirit to be free.

Yours truly,

Tina DrolcEditor in Chief

Editorial

Winter Edition 2015www.sloveniatimes.com

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Contents

IN THE SPOTLIGHT 6 Interview: Professor Arturo Bris, Director, IMD World Competitiveness Center

8 What does Slovenia need to improve to be more competitive in 2016?

10 Interview: Dr Miro Cerar, Prime Minister of the Republic of Slovenia

12 REGIONAL INSIGHT IN ASSOCIATION WITH S&P RATINGS SERVICES

ECONOMIC REVIEW – FOREIGN DIRECT INVESTMENT IN SLOVENIA 14 FDI – key source of financing for the Slovenian economy

15 Bank of Slovenia: FDI net increase in 2015

SLOVENIA BUSINESS CHALLENGES – BANKING 16 Archibald Kremser, MBA, Member of the Management Board and CFO, NLB

16 Jože Lenič, M.Sc., President of the Management Board, Abanka d.d.

17 François Turcot, CEO and Member of Board

17 Stefan Vavti, M.Sc., CEO, UniCredit Banka Slovenija d.d.

ECONOMY 18 Cerar discusses trade links with Vietnam

18 EBRD backs the Recapitalisation of Paloma with a EUR 4.5m loan

18 Best small business owner honoured

18 Pharma group Krka reports 9-month profit of EUR 133m, up 5% y/y

19 New owner of Adria Airways Tehnika promises Capital and Jobs

19 Skier Maze Given Special Achievement in Business Award

19 Talking Cat Slovenia’s Main Millionaire Maker

20 Lek in Lendava opens the largest Novartis investment in Slovenia

22 Top foreign investors in Slovenia awarded

24 IEDC’s International Annual Presidents’ Forum 2015

26 Interview: Dr Pierre Casse, Academic and Leadership Expert

28 Interview: Ildiko Kiss, Country Manager, Croatia, Serbia, Slovenia, Bosnia & Herzegovina, Macedonia and Montenegro, Air France KLM Delta

30 Family business, the driving force of the Slovenian economy

32 Interview: Professor Adriana Rejc Buhovac, Faculty of Economics at the University of Ljubljana

35 AJPES: Key Tips for Successful Business Management

37 Let's preserve energy. LET'S SAVE.

38 Interview: Wei Wenyuan, Manager at Huawei

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5Winter Edition 2015 | The Slovenian Times

Contents

INTERNATIONAL BUSINESS PARTNERS 40 American Chamber of Commerce, The German-Slovene Chamber of Commerce and Industry,

British – Slovenian Chamber of Commerce, Advantage Austria, Italian Trade Agency, Slovene – Russian Business Club, Kazakh-Slovenian Business Club

POLITICS 44 Government moves to decrease tax burden on middle class

44 President receives four new ambassadors

44 Russia, Slovenia looking to overcome trade barriers

44 PM Cerar talks cooperation with Chinese counterpart

45 16+1 Summit: China is willing to invest in Slovenia

46 Interview: H.E. YE Hao, Ambassador of the People’s Republic of China in Slovenia

EUROPEAN UNION 48 Investment Plan for Europe: EUR 315bn of additional investments

GLOBAL PITCH 50 Interview: Dr Maja Makovec Brenčič, Minister of Education, Science and Sport

52 Idea: OOSM, Lean digital signage - oosmTV

EXPERIENCE&LIFESTYLE SLOVENIA 56 Seasonal Dress Code: His and hers

58 110 years of the Grand Hotel Union

60 The Slovenia Times at the 18th Slovenian Wine Festival

63 Regional Waste Management Centre (RCERO) was inaugurated in Ljubljana

64 Postojna Cave - Slovenia’s underground paradise

CULTURE&EVENTS 66 Welcome to Festive Ljubljana! December in Ljubljana 2015

SPORT 68 Ski jumping: Prevc opens the season with a second place

68 Skiing: Ski resorts move to a single ticket for the new season

68 Sailing: Žbogar wins bronze in the Finn World Championship

69 Climbing: Mina Markovič continues her dominant run in the Climbing World Cup

69 Basketball: Udrih joins Dragic at Miami Heat

69 Football: Slovenia drops 18 spots in the latest FIFA rankings

70 Slovenia, a great country for a winter escape

72 Gymnastics Centre Ljubljana

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European UnionIn the Spotlight

Interview: Professor Arturo Bris, Director, IMD World Competitiveness Center

As a Small Country, Slovenia Needs Focus to

Become More Competitive Prepared by Tina Drolc, M.Sc.

Spaniard, Arturo Bris, is a researcher and professor at Switzerland’s IMD and Chairman of the World Competitiveness Center (WCC), which, every year, announce their annual world competitiveness rankings. The IMD World Competitiveness Yearbook measures how well countries manage their resources and competencies to facilitate long-term value creation. As part of its ranking of 61 economies for 2015, the IMD WCC looked at several aspects of each country as a place to conduct business. As highlighted by Professor Bris, Slovenia improved its economic performance in 2015 however, the level of attractiveness for foreign capital remains low, in part due to the under-developed capital markets and significant corporate corruption.

Q The IMD ranking reflects over 300 criteria based on statistical indicators and an exclusive IMD survey of 6,234 international executives. Can you highlight the most important indicators and explain how the survey was undertaken? A The IMD World Competitive Ranking is based on a simple model. In a country, we look at the quality of the government, the quality of the infrastructure and the efficiency of the private sector. All these indicators result in the performance and rating of the economy. We combine these indicators with a survey be-cause there are some factors in a country that you cannot measure, for example corruption. It cannot be measured because when it happens you can identify it, but when it is not reported but happens you cannot identify it.

Q What is the proportional number of execu-tives participating in the survey per country and what was the number for Slovenia?A Proportionally it is difficult to say because we conduct our survey mostly with IMD Alumni. We do this survey between January and April every year. In total, we have about 20.000 respondents to our survey worldwide. The response rate for Slovenia was between 50 and 100 executives, not necessarily all of them are from Slovenia; it included people operating in the country but not necessarily locals. For example, in China most of our respondents are non-Chinese but they work in China for inter-national companies.

Professor Arturo Bris, Director, IMD World Competitiveness Center



Q The 2015 IMD World Competitiveness Year-book has Slovenia at 49th in the overall com-petitiveness rank from the 61 countries. Slovenia gained six spots from 2014 (55th to 49th), what contributed the most to this positive move?A The best performing indicator for Slovenia in 2015 is the quality of the government - the quality of the public sector. There is a more positive perception in the business community about what is happening with this government in terms of regulation and a more business-friendly environment. Within the society there is more cohesion, a better attitude toward globalisation and more internationalisation of people. However, Slovenia’s ranking is still relatively low but it has improved a lot. Overall, the economic performance of the country was much better in 2015 than in 2014. While the country had negative GDP growth for some time, the growth is now positive. Employment has also improved, with this ranking the coun-try has moved from 51st to 48th and the domes-tic economy moved from 58th to 49th. However, economic performance is not enough to state that a country is competitive.

Hong Kong, Singapore, Denmark and Swit-zerland. What makes these small countries successful is specialisation, focus and that is what Slovenia needs. Everyone knows the most important industries in Switzerland: high-end technology (e.g. watches), pharmaceutical com-panies and Nestlé, consumer good products - these are three industries that do not require any specific natural resources. Switzerland grew using the only resource it has, that is people and what people invent. Switzerland is like Slovenia, a mountainous country. There is no significant land for agriculture, you do not have oil, but what you have is people and the country should naturally focus on inventing and that is success.

Q "Competitiveness" of nations is defined as the ability of creating wealth and welfare. When rat-ing competitiveness, how much weight do you put on the debt metrics?A Competitiveness means prosperity: welfare and creating jobs. On this point, obviously debt is an obstacle to competitiveness. But you have to differentiate government debt and corporate debt. The first one is an obstacle for competitiveness and the second one is needed, companies need debt to operate. Only those countries that make debt accessible to SMEs and have a good banking system have a com-petitive economy. Even though a European en-vironment, we identify Slovenia as a relatively under-developed capital market. SMEs in Slo-venia do not have access to finance and it is an important factor for the rescue of the Slovenian economy. Slovenia rates the worst in the world in the ranking of corporate governance, which means supervising that companies use money effectively. It is important that you do not provide financing for the companies that are not trustworthy, because money is not stupid. The level of corporate corruption in Slovenia is extremely high and consequently, there is no trust in the economy. Slovenia still has some sectors, e.g. banking and telecommunications, controlled by the government. Nevertheless, one of the key messages we always convey is that the government does not create the jobs in the country. The government passes regulation and creates the conditions so that the private sector creates jobs.

Q How can a country’s image abroad influence its future competitiveness?

A We recently conducted a study and found that the best predictor, in the long run, is the image of a country abroad. Italy, as an example for 2015, has improved their image abroad ex-ceptionally and consequently their competitive ranking. So the model is: improve the image of a country and foreigners will come and bring capital and this will pool domestic investments and will empower local entrepreneurs to create jobs. This is why the image of a country is the main driver of competitiveness.

Q Could the refugee crisis have an impact on the competitiveness of European countries? A We found that countries which remain more closed to foreigners tend to be less competitive. In order for a country to generate jobs, have a good health system, education system and pub-lic sector, you need people that work and pay taxes and you can achieve that with people and openness. In addition, migration brings talent that you do not have in a country in terms of introducing skills that a country needs. Swit-zerland has been somehow open for foreigners in the last 50 years and has attracted the type of people that the country could not provide – construction workers, manufacturing workers, service employees and that is something that the education system could not provide.

Q Is there, however, an ‘ infection’ point in the number foreigners a country can accept?A Of course, we can be super open, an "Alice in Wonderland" type of economy but, at the end of the day for the small country like Slovenia, it is a much bigger challenge than for countries as large as Germany and France. Certainly there is a limit to the amount of people one country can attract and I think the limit has to be about how many people can be employed and provide good enough living conditions to survive. Be-cause Slovenia is a small country, it needs to protect its own economic environment.

Sloveniadoesexportmoreandinthiswayitiscompetingbetterbutthecountrydoesnotattractforeigncapital and that is the negative side.

OnlythosecountriesthatmakedebtaccessibletoSMEsandhaveagoodbankingsystemhaveacompetitiveeconomy.Even though a European environment, we identify Slovenia as a relatively under-developed capital market.

In addition, migrationbringstalentthatyoudonothaveinacountry in terms of introducing skills that a country needs.

Q In terms of Slovenia’s investment landscape, the IMD report presents a mixed picture. Slo-venia’s trade to GDP ratio remains strong, the international trade sub-factor ranks highly at 18th (of the 61 economies), but Slovenia’s inter-national investment sub-factor ranks at 59th! What is the cause of such a low ranking and on what basis has IMD made this assessment?A It is part of the so-called European solution to the crisis. Slovenia does export more and in this way it is competing better but the country does not attract foreign capital and that is the negative side. Slovenia remains number 59 in the world which is the third from the bottom. The reason is that Slovenia is a small country and, as such, competing for international investment with the big bulldogs of the Euro area; Germany, France, Italy or Spain.

Q Switzerland is also small… What can we do to improve the environment for foreign capital so that Slovenia will become more attractive?A If you look at the top ten countries in our ranking; among them are, of course, the U.S. and Germany but also four small countries:


EconomyEuropean UnionIn the Spotlight

SonjaŠmucManaging Director,

The Managers’ Association of Slovenia

Good economic policies are the common denominator:

they are logical, easily understandable and quickly adapt to

new circumstances without undermining the future of a country. Good policies are hard to find, especially in countries that resort to over-regulation when faced with new situations. Slovenia is a heavily regulated country. Reducing the regulation and red tape would make business endeavours easier and quicker and with that, the volume would automatically rise. This is the first activity that would foster competitiveness and business optimism.

Second is to bring labour taxation down to normal levels. Third is flexibility of the labour market – in time, overprotection

tends to hurt those that it was supposed to protect. A combination of all three measures would energise the Slovene

economy for both domestic and foreign investments, new jobs and business freedom. The Slovene economy would easily be among the top 10-15 European economies in less than 10 years.

MarjanBatagelj CEO, Postojnska jama d.d.

For Slovenia to become more competitive, first

of all we need a stable tax environment. Our fiscal

sustainability needs to be long-term, without varying taxes with

the seasons when the government changes. Secondly, Slovenia needs a flexible labour market, which

means quick dismissal and quick recruitment, this is important if our companies want to compete internationally.

Thirdly, Slovenia has too much bureaucracy, public administration should be lean instead of so many regulations, laws and bureaucrats. If you have a lean state, people would be responsible and the procedures would run more quickly.

JožeMermalPresident of the Management Board and CEO, BTC d.d.

This year we established ABC accelerator which helps

startups and young enterprises in developing innovative ideas into

successful global business models.In the spirit of the creation of an innovative eco-system, at the

state level we can sketch these steps together with our government who is already thinking about it; only the effective implementation is necessary through significant financing from commercial banks.

With such an approach, we would reduce the number of unemployed, effectively use the knowledge of young people and direct them on a business path. In this context, it would be bad if, in 2016, conditions in terms of tax regulation and competitive positioning for economic operations would deteriorate. It would be a good to have tax relief for the most prospective teams in terms of employee social contributions from salaries and personal income tax.

What does Slovenia need to improve to be more competitive in 2016?


EconomyEuropean UnionIn the Spotlight

MedejaLončarCEO, Siemens Slovenia

The conditions for increasing competitiveness are not

just concrete measures but foremost, a change

in mentality. The problem of Slovenian competitiveness is that

the country is increasingly closing. Therefore, measures should be focused on opening up to global economic flows, which can be achieved mainly through appropriate tax policy. We need to identify how we want to position Slovenia to become a recognisable part of the global economy and then we need to systematically promote our competitive advantages - inwards and outwards.

As Slovenia remains a strong supplier to European and global industry and has been actively involved in the concept of Industry 4.0 (technological changes toward increasingly intensive digitisation and automatisation of production), we need to plan the role of Slovenia in the industry of the future and then take the necessary measures: adaptation of the education system, change the tax environment, incentives for research projects. In this way, we can achieve our desired position.

WolframvonOhainCEO, BSH Hišni aparati d.o.o.

Nazarje

Slovenia could become more competitive if the

government would: Reduce labour cost taxation, as

Slovenia is losing competitiveness compared to other countries due to the high labour costs. Possible measures to reduce labour costs are: changes in the income tax scale; introduction of a social cap (limit the maximum social contributions); and lower taxation of bonus payments to employees.

Change the education system by creating a closer connection between the economy and the education system. Some steps could be an increased focus on practical training in the curriculum, increased participation by companies in the preparation of educational programs and the introduction of a dual system, which would be especially beneficial for production companies such as BSH in Nazarje.

De-bureaucratise procedures especially by simplifying court procedures related to business cases and by updating the law on co-management of employees due to language.

FranciPliberšekOwner and General Manager,

MIK, d.o.o.

If we want to be successful, we first need to be competitive.

But how can Slovene companies be competitive if they do business

in quite demanding and artificially complicated conditions? Therefore, firstly we need to create a healthy and encouraging business environment, which ensures export acceleration and the inflow of foreign tourists and fresh capital. Secondly, we need to attract investors and this is possible by creating a favorable tax environment for domestic and foreign investors. I suggest capital gains tax should be lowered by 3% -5%, which could motivate foreign investors to open a company in Slovenia and create new jobs as well as profit. There is a need to create new jobs with a higher value added and encourage GDP growth. Many measures are therefore available. In my opinion another measure is to take power away from the over-lobbied labour union, which has been blocking development with their measures for 20 years and also for workers due to their empty words and self-interest, staying unprotected and destitute and the companies on the other hand, insolvent.

JulijBožičCountry Leader, IBM Slovenia

When I look at Slovenia, I see a country of great

potential and great people. True, we are a small country, but

this is actually our advantage – we can adjust faster, work more productively and be more agile. I believe collaboration, innovation and highly educated people are the three main things to boost Slovenia s competitiveness. We have highly skilled experts and we need to encourage them to create disruptive innovations that will impact Slovenia and the world.

IBM supports the Government of Slovenia in building a digital economy and we have begun discussions on long-term cooperation as we believe that advanced technologies are the key to connect business, government, academia & start-ups into an intelligent and functional ecosystem that will spur Slovenia’s economic growth and competitiveness. We will collaborate on strategic growth initiatives in cognitive computing, cloud, analytics and security technologies that help transform legacy operations to better compete in today’s economy.



Interview: Dr Miro Cerar, Prime Minister of the Republic of Slovenia

Our State Must Become a Promotor of Sustainable

Economic Growth and Development

Prepared by Tina Drolc, M.Sc.

Dr Miro Cerar has been the Prime Minister of the Republic of Slovenia since August 2014. As he explains to The Slovenia Times, since that time

the government has implemented measures and policies aimed at achieving long-term sustainable economic growth, including the recently adopted Asset

Management Strategy for State Owned Enterprises, which Dr Cerar says is the first time in almost 25 years that Slovenia has such a document.

The PM also addresses the European migration crisis and points out that it is a sharp reminder that the joint efforts to resolve the crisis in Syria must be strengthened whilst, at the same time, the way must be found to share the

burden fairly between all the Member States.

Q In September 2015, you marked your first year of government. On that occasion you said that, "Slovenia is recognised by the world as a suc-cessful country which is moving forward", which is also confirmed by the majority of international rankings on economic recovery and performance. How does the changing of our political culture, including the political bipolarity, influence pro-gress? A "The new Slovenian government commit-ted itself to ensuring long-term sustainability of public finances by eliminating the excessive public deficit in a sustainable manner and by gradually reducing the structural government deficit." Those were my exact words when I ad-dressed the participants at the FDI Summit in 2014 for the first time. The government has implemented measures and policies aimed at achieving long-term sustainable economic growth. Due to decisive action, Slovenia has regained the confidence of international inves-tors, which is crucial for the revival of economic activity. The impact of government policies on the domestic economy is reflected in the im-provement in the general trust and higher key macroeconomic indicators.

Much has been done to reduce unemploy-ment, especially among young people. With the changes in the area of student work, the government has provided better social security for students. Most importantly, labour market conditions are improving for all generations. The government has, since the beginning, committed to act and foster those policies that will bring stability and a stronger political and legal culture. And finally, we are committed to working together with other stakeholders and exceed the senseless bipolarity and divisions with the goal of creating and providing a better life.

Q Typically, governments in Slovenia employ new officials when taking on their mandate and, as a result, Slovenia has a disproportionate number of public officials. Professor Arturo Bris, Chairman of the IMD World Competitiveness Center, points out that a government is not in the position to create the jobs in a country, but cre-ates the conditions so that the private sector can creates jobs. Will you be able to change the trend in Slovenia and how?A Our state must become, and must be per-ceived as, a key supporter and promotor of sustainable economic growth and develop-ment. It must be responsible and accountable in relation to our citizens, residents and busi-ness entities, and must act according to the legal norms, be proactive and be alert to the problems and needs of the economy and our people. One of the priorities of my mandate is to ensure a predictable and business-friendly environment. Therefore, the government has been preparing and implementing measures

Dr Miro Cerar, Prime Minister of the Republic of Slovenia



to lower the administrative burden, amend labour legislation and lower labour costs. On the other hand, we are creating better business conditions by building and maintaining the infrastructure, promoting and further devel-oping our educational system and innovation-oriented ecosystems.

We are aware that the business environ-ment, or private sector, is very much depend-ent on the organisation and functioning of the public administration. It is therefore necessary to create a quick, responsive and efficient ad-ministration and the first decisive steps have been taken also in this respect.

Q Your government adopted the long-awaited strategy on state assets however, international ratings highlight weak institutional and corpo-rate governance. What measures will be taken to avoid the corruption limbo that could obstruct the pace and effectiveness of the reforms your government has introduced?A For the first time in almost 25 years, Slo-venia has obtained a document – the Asset Management Strategy for State Owned Enter-prises – that details very clear objectives. First, is to improve the performance and quality of service of state-owned enterprises (SOE’s) and second, to define a clear strategic direction for further privatisation. With this strategy, we have opened every state-owned enterprise to the participation of private capital; different sectors, mostly infrastructure and energy, are open for private investment and strategic part-nerships. In strategic sectors, private capital can participate with up to 50% of equity.

Slovenia has many interesting assets to be privatised, among them some blue chip companies. We are committed to running a transparent, open and responsible privatisa-tion. On the other hand, Slovenian Sovereign Holding (SDH) as the state asset management institution, should improve the performance of the remaining state-owned companies, in-crease the returns and dividend payments for the state and implement the highest standards of corporate governance. I do not believe that corruption is the main problem in SOE’s. The key issue is how to improve the performance of these companies, make them more efficient and to increase the revenue and profit which these companies are generating.

Corporate governance is a constantly evolv-ing process of setting the rules with the aim of ensuring the fair and equitable running of companies. The framework of corporate gov-ernance rules in Slovenia consists of laws and non-binding rules. The Slovenian government is a strong advocator of more effective corpo-rate governance with more transparency and more accountability. Measures and actions taken in the last 12 months speak for them-selves.

Q Slovenia needs to boost investment and at-tract more foreign capital however interest in the country remains quite low. What would you say are the main attributes Slovenia could perform internationally to attract more potential inves-tors and capital from abroad?A Slovenia is a politically stable country with functioning democratic institutions, includ-ing the judiciary, and with a favourable tax environment with the corporate nominal tax rate reaching only 17%. Our competitive ad-vantages are location, excellent infrastructure, a highly educated, hardworking and skilled workforce, a high level of innovation in enter-prises and lastly, geographical position, which is almost literally in the middle of Europe.

We are very well aware of the work we still need to do, especially in reducing administra-tive barriers, changes in employment legisla-tion and restructuring the public levy burden with the aim of reducing the burden on labour and to have a more optimal taxation of income, consumption and wealth. One of our major aims is to organise all business-related activi-ties in one place (in a so-called ‘one-stop-shop’) to assist the smooth entry into the market for potential investors. Our objective is to attract a sufficient number of high-quality foreign direct investments and put Slovenia on the map of at-tractive locations for investments, especially as a "R&D" hub, "logistics" hub and "green" hub.

Q The stabilisation of the fiscal system has also been high on the agenda. Fiscal and debt metrics have improved and the budget for the next two years has been passed. What is the structure of budgetary intent for the refuges crisis in terms of domestic and European Union funds? According to the records from August to 11 November 2015, the total amount for the re-ception, accommodation and care of refugees has been EUR 8.7m. This figure does not cover the regular labour cost, the cost of rail and bus transport or the costs incurred by municipali-ties as a result of the migrant flow which will be paid by the state.

The budget for 2016 provides an additional reserve of EUR 123m that will be allocated to ministries according to their generated costs. These funds are provided as additional revenue from the EU budget of EUR 73m with the rest additional to the general government deficit. We are positive that the European Commission will recognise this cost as a one-off expenditure that does not influence our structural efforts.

Q Recent events, in terms of the refugee crisis, has positioned Slovenia as the gatekeeper of the Schengen borders. We are contributing to the func-tioning of Europe when tackling the situation of its external borders. What is the common response you expect from the European Union for manag-ing and controlling this huge influx of people?

A Slovenia is a responsible member of the EU and Schengen area while being well aware of the importance of solidarity, cooperation and co-responsibility in addressing the current situation. We have activated all the available forces who are working daily with the support of civil protection, humanitarian and non-governmental organisations but we are on the brink of our capacities.

For the European Union, it is essential to rapidly implement the decisions already taken by the Council at the Meeting on the Western Balkans Migration Route and to strengthen the cooperation between the EU and Turkey in the field of migration. The migration crisis in Europe is a sharp reminder that we have to strengthen our joint efforts to resolve the crisis in Syria. And what is more, we have to find a way to share the burden fairly between all the Member States, establish a clear timetable of concrete measures and closely work with each other in a coordinated, integrated and trans-parent way.

Q The number of people entering European borders is increasing, also due to the economic migrants that are joining the real refugees. Dem-etrios G. Papademetriou, President of the Migra-tion Policy Institute Europe said, "Europe must examine, more closely, the claims of asylum ap-plicants from non-Syrians and be willing to make hard-headed determinations." Does Europe need to distinguish between refugees – people in need - and economic migrants when dealing with the new measures in the common migration policy?A The number of economic migrants has been increasing, particularly the number of migrants who are coming from North Africa, since the route through the Western Balkans has become easier than the one across the Mediterranean. It is necessary to send a clear signal that the path for economic migrants to Europe cannot remain open in such a manner and that they will be returned to their country of origin. But let me stress that the EU has to remain open to those people under interna-tional protection because of wars and open conflicts in their home countries.

IdonotbelievethatcorruptionisthemainprobleminSOE’s. The key issue is how to improve the performance of these companies, make them more efficient and to increase the revenue and profit which these companies are generating.


Regional Insight in association with S&P

Regional Insight in association with S&P Ratings Services

Austria

On8October2015,Standard&Poor’sRatingsServicesaffirmedits‘AA+/A-1+’long-andshort-termforeignandlocalcurrencysovereigncreditratingsontheRepublicofAustria.

The outlook is stable. Austria’s federal govern-ment has passed a law that is intended to form the basis for negotiations with bondholders of Heta Asset Resolution AG (HETA)--the wind-down entity of failed bank Hypo Alpe-Adria AG--to reach agreements for a voluntary haircut on HETA’s outstanding bonds. The law voids short-fall guarantees by the state of Carinthia if a mi-nority of one third of bondholders do not agree to

the haircut, effectively introducing retroactively "collective action clauses" into the bonds.

In our view, the law does not erode creditors’ rights because the government’s resolution ef-forts are not indicative of a general weakening of the protection of creditor rights in Austria. We expect that Austria’s institutional effec-tiveness and predictability will remain high. A majority of the HETA bonds benefit from a shortfall (deficiency) guarantee by the Austrian state of Carinthia. Under the shortfall, bond-holders could demand payment from Carinthia if HETA were to be placed in insolvency, which would be the case once a haircut is announced by the banking supervisory authority.

Standard & Poor’s believes that respect for the rule of law, especially in the area of prop-

Real GDP Growth (%)

Unemployment Rate (%) CPI Growth (%)

General Government

Balance / GDP (%)

Net General Government

Debt / GDP (%)

Current Account Balance / GDP (%)

Net Narrow External Debt /

CARs (%)

Austria2014 0.4 5.6 1.5 (2.7) 78.2 0.8 107.6

2015 0.6 5.8 1.4 (2.2) 81.2 1.7 124.0

2016 1.5 6.0 1.5 (1.8) 80.5 1.9 123.0

Croatia2014 (0.4) 17.3 (0.2) (5.7) 79.4 0.6 85.1

2015 0.5 17.2 0.1 (5.6) 83.4 0.8 95.8

2016 1.0 17.1 1.0 (5.6) 86.3 0.9 92.8

Poland2014 3.4 9.0 0.1 (3.2) 46.6 (1.3) 56.5

2015 3.5 8.0 (0.4) (3.0) 47.4 (0.9) 55.4

2016 3.4 7.9 1.3 (2.9) 47.8 (1.0) 53.1

Slovenia2014 3.0 9.7 0.4 (4.9) 71.2 7.0 80.3

2015 2.4 9.4 0.1 (2.9) 71.6 6.2 82.2

2016 2.0 9.2 1.2 (2.5) 72.5 6.1 81.6

erty rights, is a key component of a sovereign’s institutional effectiveness, which we currently assess as a credit strength for Austria. While the voiding of guarantees under consideration might raise questions about the protection of creditors’ rights, we believe the HETA case con-stitutes a very particular set of circumstances and that the government’s resolution efforts are not indicative of a general weakening of the protection of creditor rights in Austria.

We also note that a previous law that had intended to cancel guarantees for subordinated debt issued by Hypo-Alpe Adria was ruled un-constitutional by the constitutional court in July 2015. In our view there is a chance that the current law, if adopted, may not pass scru-tiny by the constitutional court.


Regional Insight in association with S&P

Poland

Standard&Poor’sRatingsServicessaidon26October2015thattheoutcomeofthegeneralelectionthedaybeforewouldhavenoimmediateimpactonitssovereigncreditratings(foreigncurrencyA-/Positive/A-2;localcurrencyA/Positive/A-1).

After months of intense campaigning, Poland’s Law and Justice (PiS) party won an absolute majority in the parliamentary election. PiS’ political and economic platform, ahead of the election, included extensive spending plans, a higher tax-free allowance, additional childcare benefits and higher subsidies to coal mining and other industries amongst other things. PiS plans to offset these higher outlays through improved tax compliance and additional lev-ies and taxes on certain sectors, particularly banks and supermarket chains. Even though we do not expect the spending plan to be fully implemented, we think the revenue measures may not be sufficient to compensate for higher expenditures, which could slow the pace of fis-cal consolidation.

In our view, some of the planned measures may dampen investor confidence, which in turn could create a drag on Poland’s recent strong economic performance. In addition, PiS may now want to push through legislation that makes it mandatory to convert Swiss franc-denominated mortgages into local currency, with banks bearing all of the costs. However, despite PiS’ strong mandate, we do not expect all its pre-election pledges to be implemented. This is because constitutional rules, such as an expenditure rule and a debt ceiling, provide important policy anchors, in our view.

That said, our positive outlook continues to reflect what we view as Poland’s broaden-ing economic recovery and improving fiscal and external metrics. However, as we have previously stated, we could revise the outlook to stable if we saw reversals regarding fiscal consolidation, macroeconomic management or monetary policy.

CroatiaStandard&Poor’sRatingsServicescommentedon9November2015thattheoutcomeofitsgeneralelectionthedaybefore,wouldhavenoimmediateimpactonitssovereigncreditratings(BB/Negative/B).

The ruling multiparty coalition led by the So-cial Democratic Party of Croatia (SDP) looks to have lost its majority in parliament and we

expect that a new coalition, led by the Croatian Democratic Union (HDZ), could form the new government.

After it won the presidential election in De-cember last year, HDZ has only narrowly come out on top of the recent parliamentary election. HDZ’s majority was slim, however, and the HDZ-led so- called "Homeland Coalition" will more than likely have to rely on support from smaller parties, particularly from members of parliament belonging to the Bridge (MOST) party. This increases the risk of political insta-bility, in our view.

The incoming government faces many eco-nomic, fiscal, and structural problems. Com-pared with its EU peers, Croatia’s economic growth, while slowly accelerating, remains one of the weakest, and we expect Croatia’s deficit will be the widest of all EU-28 countries this year.

Despite Croatia’s high debt burden, subdued economic activity and overarching role of the public sector in the economy, the election campaign has not been characterized by either coalition presenting a comprehensive reform agenda. Hence, although we do not expect the election will have an immediate impact on our sovereign ratings for Croatia, our negative out-look on the ratings continues to reflect what we view as Croatia’s deep-seated structural and fis-cal challenges. As we have previously stated, we could lower the ratings if government policies do not robustly counter Croatia’s entrenched fiscal and economic challenges after the parlia-mentary election.

SloveniaStandard&Poor’sRatingsServices’nextsemi-annualreviewofSlovenia’ssovereignratingsison18December2015.Inthepreviousreview,theoutlookonSlovenia’s‘A-‘long-termcreditratingwasrevisedtopositive.

The ratings could be upgraded if the economic recovery broadens and, combined with struc-tural reforms, results in improved fiscal and debt metrics. We could revise the outlook to stable if economic growth is lower than we an-ticipate, damaging the policy cohesiveness of the government coalition, or if fiscal outcomes are markedly worse than our current expecta-tions.

One of the key strength for Slovenia’s Rat-ings is its external position. Since 2008, Slo-venia’s current account position has improved by nearly 10% of 2015 GDP or €3.6 billion. Merchandise exports represent the bulk of this change, as they hit an all-time high of €23.1 billion in absolute terms last year. We project that Slovenia’s current account surpluses will

average over 5.5% of GDP through to 2018. Offsetting the performance of the trade and services accounts, the income deficit continues to rise, reflecting higher dividend and inter-est payments on Slovenia’s external liabilities. The latter have remained relatively stable since 2008, as the rapid decline in private sector ex-ternal liabilities has been offset by government borrowing abroad. As a result of external de-leveraging and sustained high current account surpluses, we believe that the risk of a marked deterioration in external financing has receded.

Slovenian banks and companies have been reducing their borrowing from abroad (includ-ing Eurosystem financing) since 2008. Initially this was triggered by non-resident commercial lenders sharply cutting back their cross-border exposures, a loss of financing which was re-placed by Eurosystem lending. The considerable pace of deleveraging took its toll on investment spending and the broader economy.

As Slovenia’s banking system downsized by about 25% of estimated 2015 GDP between year-end 2010 and April 2015, the demand for external financing (including Eurosystem fi-nancing) has fallen off markedly, given the sta-ble domestic deposit base. By February 2014, Slovenia’s central bank reported a net claim on the Eurosystem through the Target2 interbank payment system.

However, Slovenian banks and companies still borrow at higher rates than comparable entities in northern Eurozone states, and we consider Slovenia’s transmission mechanism to remain weakened. We view Slovenian banks’ access to the ECB as an important ratings fac-tor. While Slovenian banks’ low rollover rate of external debt has seen them move into small external creditor positions since 2013, from net external debt of about 30% of current account receipts in 2009, we understand that Slovenian banks have ample unencumbered collateral to access ECB facilities if needed. We expect the sector to return to profitability in 2015.

Sources: Standard & Poor’s Rating Services and Eurostat.

Please refer to our website for more information about ratings at https: www.spratings.com/corporates/Understanding-Ratings-2.html and read our disclaimers at www.standardandpoors.com/en_US/web/guest/regulatory/legal-disclaimers

Copyright © 2015 by Standard & Poor’s Financial Services LLC. All rights reserved.

STANDARD & POOR’S and S&P are registered trademarks of Standard & Poor’s Financial Services LLC.


Economic Review

Foreign Direct Investment in Slovenia

FDI – key source of financing for the Slovenian economyConcerning the investment situation in Slovenia, after two years of recession the Slovenian economy recovered and grew by 3.0% in 2014, far better than the euro-area average of 0.9%. This favourable trend, driven by strong exports, continued in the first half of 2015 and is expected to continue into 2016/2017, albeit at a more modest pace. Public investment and private consumption were also important growth drivers. The latter benefited from an improved labour market and rising consumer confidence.

SMEs consider financing as the most pressing problemAccording to the recent European Commis-sion 2015 Competitiveness report, excessive red tape impedes market entry but can also affect the prospects of companies’, especially small businesses, by limiting their possibilities

to grow domestically and internationally or to export because transaction costs are increased by unnecessary administrative procedures. Par-ticularly burdensome areas are related to time and cost to start a business and to acquire li-censes. In several EU countries, like for instance in Slovenia, Spain and Italy, the time needed for an investor to obtain a building permit is par-ticularly lengthy while costs are not negligible. The report also concludes that financing condi-tions for SMEs continue to differ significantly across Member States: SMEs consider financing as the most pressing problem in Cyprus, Greece and Slovenia; and as the least pressing in Swe-den, the Czech Republic and Denmark.

FDI important source of long-term financing

Regarding FDI, the European Commission 2015 Country Report for Slovenia concluded that FDI plays an important role as a long-term, stable source of financing for the Slove-nian economy. At the end of 2013, the stock of inward FDI in Slovenia stood at EUR 8.9 bil-lion (24.7% of GDP), which is 3.5% lower than in 2012. The rapid increase in the pre-crisis period and relatively stable post-crisis stock show that Slovenia managed in the past to at-tract FDI, albeit starting from a relatively low level, and that FDI is a reasonably stable mode of financing even in crisis times, in contrast to portfolio and other investments.

While slower FDI inflows are, to some ex-tent, rational due to a deceleration in global activity and FDI flows, Slovenia has been more affected than its peers. In terms of stocks of FDI, Slovenia lags severely behind other coun-tries. According to Unctad data, the level of FDI in Slovenia is markedly lower than the EU average of 49.5% of GDP. Moreover, Slovenia’s peers registered above-average FDI stocks built up during the privatisations in the 1990s and more recently due to active policies to attract FDI, such as improving the business environ-ment and investment incentives. Weak FDI flows are linked to the quality of the business environment, whose attractiveness relative to other countries continues to deteriorate. High regulatory costs, limited access to finance and high taxes on the skilled labour force are the three major weaknesses. In a nutshell, there are ample opportunities to improve the busi-ness environment to make Slovenia attractive for FDI inflows.

European Commission Representation in Slovenia

ec.europa.eu/europe2020

The recovery in investment expenditure was driven mainly by construction of infrastruc-ture, financed through EU funds, while private sector investment has remained low. In 2014, public investment in Slovenia amounted to more than 5% of GDP, one of the highest levels in the EU, but it is expected to slow down in 2016.

European Commission headquarters in Brussels; Photo: Xinhua/STA


Economic Review

Bank of Slovenia: FDI net increase in 2015The stock of inward FDI in Slovenia was EUR 10.1bn at the end of 2014, up 14% from 2013. Foreign owners provided net financing to Slovenian companies throughout the 1994 to 2014 time horizon. Debt instruments were 15% of total FDI on average, the figure reaching 20% in 2014.

Over the first nine months of 2015 there was a net increase of EUR 586m in inward FDI. Equity increased (EUR 889m), while debt in-struments declined (EUR 303m).

EU Member States prevail among investor countries, accounting for 85% of all inward FDI in Slovenia, by value, at the end of 2014. The most important investor is Austria, which accounted for 34% of all inward FDI. The sec-ond-largest investor country, in terms of value, is Switzerland with 11%.

Major investments are motor vehicles and financial services

Countries invest the majority in retail trade except for motor vehicles, and financial ser-vices except for insurance and pension fund-ing. Service activities were prevalent over the time series for inward FDI and accounted for 65% of total inward FDI in Slovenia in 2014. Service activities have recorded average annual growth of 8% over the last ten years and grew 16% in 2014.

In the breakdown of FDI by statistical region, the highest concentration in total inward FDI, in value terms, has been in Cen-tral Slovenia, which accounted for 63% of the total as at the end of 2014. This is followed by Gorenjska (6%), the Coastal-Karst (6%) and Podravska (5%).

At the end of 2014, companies with FDI ac-counted for 4.5% of all Slovenian companies (excluding financial intermediaries), the same as in 2013. The most important activity was manufacturing which, in 2014, accounted for 12% of all companies with FDI and employed nearly half of all employees at companies with foreign capital.

Higher average wages In 2014, Net profit per employee and value added per employee was EUR 5,420 and EUR 40,414 respectively in overall manufacturing activity (the sector with the most employees); manufacturing companies with FDI were high-er at EUR 8,366 and EUR 45,562 respectively.

Net profit per employee and value added per employee in trade and repair of motor vehicles (the second most important sector in terms of number of employees) was EUR 3,796 and EUR 37,596 respectively, with EUR 4,453 and EUR 41,111 respectively in companies with FDI.

A comparison of wages for 2014 for com-panies with FDI indicates that workers em-ployed by these companies received above-average wages. The average annual gross wage per employee of EUR 20,101 at companies with FDI was 12% higher than the overall average of EUR 17,872. The average wage of employees at companies with FDI in manufacturing exceed-ed the average wage in the sector by 8%. The average wage in companies with FDI in trade and repair of motor vehicles was 10% higher than the average for this activity.

More detailed FDI data and the methodology notes are available in the Bank of Slovenia publication ‘Direct Investment 2014’, published onwww.bsi.si.

Euros

50.000

45.000

40.000

35.000

30.000

25.000

20.000

15.000

10.000

5.000

0Firms with

no FDIMinority shareby foreigners

Minority shareby foreigners

Firms withno FDI



Firms withno FDI



PerformanceindicatorsofthecompaniesinSloveniancorporatesector,2014

All activities Manufacturing

Value added per employee Net profit (loss) per employee Labour costs per employee

Firms with no FDI – less than 10% of its equity shares belong to foreign investors

Minority share by foreigners – more than 10% and less than 50% of its equity shares belong to foreign investors

Majority share by foreigners – more than 50% of its equity shares belong to foreign investors

Source: Banka Slovenije

Banka Slovenije; Photo: Marko Pentek


Slovenia Business Challenges

Archibald KremserMBA, Member of the Management Board and CFO, NLB

BankingPrepared by Tina Drolc, M.Sc.

Jože LeničM.Sc., President of the Management Board, Abanka d.d.

Q Abanka is the result of the merger between Abanka Vipa and Banka Celje, the country’s sec-ond largest bank by assets. What are your main sources of capital other than state capital? A Although well capitalised, Abanka could strengthen its capital position by retaining earnings in the coming years.

Q Where do you see the potential to grow your existing market share? A Abanka focuses primarily on retail bank-ing and SMEs, but also provides a full range of banking services to large enterprises. We are creating a bigger, better, stronger and trustworthy bank that pursues contemporary market trends in our financial operations and offers our customers more than ever before.

Q Last year, as a result of the European road-show, NLB bonds were mostly picked up by UK-based investors. How would you describe NLB activity on international capital markets and in turn, attracting a diversified investor commu-nity? A NLB actively manages our relationship with the international capital markets and has invested in a more professional Investor Rela-tions function; which is also in anticipation of the IPO of the bank planned by the govern-ment to be completed by 2017. NLB has always maintained very good relationships with the international investor community and has is-sued a wide range of instruments. Although the immediate requirements for funding and capi-tal instruments are not yet established, given pending regulatory developments and general-ly an extremely healthy liquidity position, NLB will continue to maintain an active dialogue with the existing investor base through regular meetings and non-deal roadshows. This will allow us – when needed – to act quickly with any upcoming issuance. The IPO preparation will be run in close dialogue with SDH and will certainly include, from an early stage, a very proactive approach to educate the investor base about the investment opportunity.

Q NLB is the largest state-owned bank. How does state-ownership affect current performance when sourcing the international capital that you are seeking? A NLB has noticed, from the last interna-tional bond issuance, that the market seems to anchor the pricing somehow on the sovereign risk. This might change, depending on the instrument, based on the various changes in

regulation that has taken place since. Other than that, the bank is managed with full independence and under the supervision of the ECB and by internationally comprised Management and Supervisory Boards. Our results show very healthy development in a very challenging market environment and we anticipate showing solid profits in the years to come. Consequently, we consider our ability to attract investors to any future investment op-portunities of the bank will be entirely focused on the banks performance and continued good governance.

Q What would you say are the main opportuni-ties and the challenges for foreign or domestic investors in Slovenia?A Slovenia has shown very healthy develop-ment at the macroeconomic level and expects above Eurozone-level growth in the coming years. Slovenia benefits from the acknowledged status of being a Eurozone economy and has always been considered a leader in terms of economic development in the CEE/SEE EU Member States. Given that, NLB has seen ris-ing interest in investment in to Slovenia from capital markets to direct investments in compa-nies and real assets and more recently, non-per-forming loan portfolios from Slovenian banks. Domestically, investors are showing increasing interest in investing in domestic capital market issues as well as increasing confidence in the real estate market. Naturally, the challenge of the relatively low liquidity of all markets re-mains and therefore calls for transparent infor-mation and education about the market, which is certainly a key objective of NLB in promoting all investment opportunities.

We remain committed to excellence in fulfill-ing all of our customers’ financial needs, with emphasis on a personal approach, the highest quality services and a highly flexible range of products and services.

Q The merged bank plans to be privatised by mid-2019. How do you plan to increase the at-tractiveness among international investors? A Abanka’s strategy includes measures that make the bank more attractive to investors and which can be seen in the significant mar-ket share of around 10% and the appropriate return on equity.

17

Slovenia Business Challenges

Stefan VavtiM.Sc., CEO, UniCredit Banka Slovenija d.d.

Q UniCredit Banka Slovenije is a member of the UniCredit Group, the Italian global banking and financial services company. What does lending money to the Slovenian private sector mean for your business?A We were the first international bank to operate in Slovenia. Established in 1991, we have grown organically into one of the three systemically important banks in the country. This is because we grew along with our target customers, organically over time, and we were able to avoid some mistakes which helped us to overcome the very difficult period from 2012-14 when many market participants were expecting the troika. Our bank was and is, well equipped with capital and above all, with supe-rior employees who focus always on customer needs. Thus, being engaged in the private sector is our goal and we want to perform alongside the success of our customers, from individual to corporate.

As part of UniCredit, we are an important part of a leading European commercial bank with a strong market position in 17 countries. Our network is spread over approximately 50 markets, with more than 146,000 employees. In Central and Eastern Europe, the group network consists of 3,420 branches with more than 68,000 employees. The extensive

François TurcotCEO and Member of Board

Q SKB banka is a member of the Société Géné-rale Group, the French multinational banking and financial services company. What does lend-ing money to the Slovenian private sector mean for your business?

A SKB bank benefits considerably from be-ing part of the Société Générale group. SKB is managed according to Société Générale’s strict, professional and ethical rules, which gives security to each of our depositors and means we can provide our clients with a large range of high quality products and services at the most favourable price. Our corporate clients benefit from Société Générale’s very large internation-al network, including in the Balkan countries, and from the service of specialists from Société Générale’s head office in cases where clients need sophisticated financial operations.

Q Which business sectors in Slovenia do you rec-ognise with the potential to support financially and does it matter if the company is domestically or foreign owned?A SKB is a universal bank, present all over Slovenia through its network of 56 branches and serves all type of clients, individuals, very small to large companies, municipalities, etc… regardless of the nationality of these clients. With each and every client, we try to find an appropriate financing solution that is optimal for both sides, the client and the bank, and we are pleased that we can offer to the market

UniCredit international network allows us to offer comprehensive support to companies operating at home, export-oriented companies penetrating European and global markets, as well as to businesses oriented to the growing markets of Central and Eastern Europe.

Q Which business sectors in Slovenia do you rec-ognise with the potential to support financially and does it matter if the company is domestically or foreign-owned in Slovenia?A To name just a few: infrastructure, export oriented companies, small and medium sized companies as well as private clients. There is no difference whether they are domestic or foreign, just if they are better and worse which, in the end, is a function of the quality of em-ployees of the particular company.

Q How would you position UniCredit Banka Slovenije in the UniCredit Group?A We are a small but a profitable part of Uni-Credit Group with a clear focus on serving our ever increasing number of customers. Despite the overwhelming regulation hitting our in-dustry, we were able to grow our market share consistently before and during the crisis. We trust this will also continue now that we are a bit more "out of the woods" and confidence is slowly returning and growing among our pri-vate and corporate customers.

Additionally, we are one of the few banks in Slovenia who did not need external aid from our owner or the state. As already said, we

products and services at competitive prices. At the same time, we follow strict criteria for managing the risk arising from the financing needs of our clients.

Q How would you position SKB in the Société Générale group?A Société Générale employs more than 150,000 staff in 88 countries. Part of the Group’s strategy is to be present in Eastern Europe where we consider that there is a sig-nificant growth potential. Société Générale has a strong presence in the Czech Republic, Romania, Poland and Bulgaria but also in Ser-bia, Croatia, Montenegro, Macedonia, Albania and of course, in Slovenia and will continue to invest in the country. For example, we have just acquired BPF (Banque Peugeot Finance) Slove-nia, which is the company financing Peugeot and Citroen car dealers and the buyers of those two brands of cars in the country. It shows that Société Générale is very confident in the future economic development of Slovenia, which has a lot of assets. Société Générale believes that a bank, if it is correctly managed, can be sustain-ably profitable in a country.

have grown organically into one of the three systemically important banks in Slovenia and we are therefore subject to the direct control of the ECB. The stress test we just recently passed showed that, once again, our bank is one of the most stable banks in Europe with a strong capital position.

Our excellence is confirmed by the awards we have received. We are the best bank in Slovenia, according to EMEA Finance and the reputable international magazine, Euromoney, which also awarded us as the best bank for cash management in Slovenia and we were rec-ognised as the best bank for custody services in Slovenia by Global Finance magazine. All of this shows that we are successfully offering the best range of services to even the most de-manding clients.


Economy

Cerar discusses trade links with VietnamIn December, Prime Minister Miro Cerar discussed ways to develop bilateral economic cooperation with his Vietnamese counterpart, as he held several bilateral meetings on the sidelines of the Paris climate summit.

"Slovenia could be a transport window for Vietnam and other Asian countries to Central and Eastern Europe through the port of Koper," Cerar told reporters in Paris. He suggested the possibility as he and Vietnamese Prime Minister Nguyen Tan Dung, discussed ways to expand trade ahead of Dung’s visit to Slovenia early next year. Details will then be determined on how trade can be boosted following the signing of a cooperation agreement during a recent visit of a delegation headed by Economy Minister Zdravko Počivalšek. Suggesting areas for potential business links, Cerar mentioned the highly-qualified and skilled workforce, investment in industry and trade in industry, services and other fields with the abolition of dual taxation.

EBRD backs the Recapitalisation of Paloma with a EUR 4.5m loanIn November, The European Bank for Reconstruction and Development (EBRD) approved a EUR 4.5m loan to tissue maker, Paloma, to support its financial and operational restructuring in the first phase of its privatisation.

The loan contract was signed in Ljubljana after an agreement was made whereby Polish equity fund, Abris Capital Partners, will inject EUR 15m into the Slovenian company. "The EBRD funding will support Paloma’s expansion goals by financing energy and resource efficiency improve-ments as well as working capital needs, to increase the company’s ability to pursue its recapitalisation process and attract additional investments," a re-lease from the bank reads.

Abris is offering EUR 3.30 per share in the recapitalisation process, which is to be endorsed by Paloma shareholders in January. Slovenia Sovereign Holding, which holds 71% of Paloma, pledged to back the capital injection unless Abris’s offer is trumped by an investor prior to the 5 January shareholders meeting. Under the plan, SSH will sell its remaining stake to the investor, paying EUR 15m through a share issue and thereby completing the priva-tisation of Paloma.

Paloma CEO Tadej Gosak reiterated that Paloma, in 2014, posted its best result of the past five years, generating EUR 3.5m in operat-ing profit from EUR 87m in sales. Nevertheless, the company needs capital for restructuring and further development; the EBRD loan will help to finance much needed investments and ensure the company’s long-term stability.

Krka production complex Sinteza 1; Photo: Rasto Božič/STA

Bojan Železnik; Photo: Nebojša Tejić/STA

Best small business owner honouredBojan Železnik, owner and director of metal parts specialist, KGL, was honoured in November by the Chamber of Crafts and Small Business (OZS) as the small business owner of the year.

Starting out as a sole proprietor thirty years ago, Železnik now owns a limited liability com-pany, with sales of over EUR 5m in 2014, and has 90 employees. The company produces met-al parts for car makers, including Volkswagen, Mercedes, Toyota and PSA Peugeot Citroen, with the automotive sector accounting for 70% of sales. KGL plans revenue growth of 40% in 2016.

OZS noted that the company pays its engi-neers and highly skilled professionals above-average salaries, which would be "even higher if taxes were not so high". This was also the mes-sage delivered by Branko Meh, who urged the government to cut contributions, increase tax credits and remove unreasonable administra-tive obstacles.

Pharma group Krka reports 9-month profit of EUR 133m, up 5% y/yIn November, pharmaceutical group Krka reported a net profit of EUR 133.3m for the first nine months of the year, a rise of 5% on the same period last year. Group sales stood at EUR 863.3m, 1% more than a year ago.

The group said it continues to feel the impact of the weak Russian Ruble and pressure on the price of medicines, with a 6% increase in volume-based sales translating into a 1% rise in revenue. One of Slovenia’s biggest exporters generated 93% of its sales abroad.

While sales in Russia were down 21% to EUR 168.7m, they actually rose by 7% when valued in Rubles, Krka stated in a revenue release. Eastern Europe remains the biggest market for Krka, generating 28.1% of all sales, but Western Europe continues to close in, ac-counting for 27.5% of the total.

Prescription pharmaceuticals were the big-gest revenue earner for the group, accounting for EUR 725.3m of all sales, a rise of 2% on 2014.

Paloma products; Photo: Tamino Petelinšek/STA


Economy

New owner of Adria Airways Tehnika promises Capital and JobsIn November, the boss of the new owner of aircraft maintenance firm, Adria Airways Tehnika, told Finance in an interview that Linetech Holding sees the acquisition as an opportunity to expand to new markets. The Polish company wants to recapitalise Adria Airways Tehnika and increase the number of employees.

Linetech Holding Chairman Piotr Kaczor said that the two companies were now in the same market and part of the same group. "We cover all of Europe and a part of North Africa. By acquir-ing Adria Airways Tehnika, we have become more flexible for our customers. If a customer has 20 aircraft, it can send some of them to Slovenia and some to Poland."

Adria Airways Tehnika will keep its name. Kaczor also stated that the company could triple its profit in five years. In 2013, the company recorded EUR 941,353 net profit but it dropped to below EUR 30,000 in 2014. The new owner would also like to increase the number of employees, "There are never too many people in this business and we would like to hire more. We need technicians who will maintain aircraft at airports. There are opportunities in Finland, France, Germany, Italy, Greece," Kaczor concluded.

The 100% stake in the Brnik-based company was unofficially sold for around EUR 5m; with EUR 2m in cash and the rest through the re-payment of a loan from the two shareholders.

Skier Maze Given Special Achievement in Business AwardThe most successful Slovenian skier of all time, Tina Maze, was the winner of this year’s award for special achievements in business, given by the business daily, Finance, at its traditional Business Conference in Portorož in November. Finance boss, Peter Frankl, said that Maze had brought joy to Slovenians in a time of crisis.

Talking Cat Slovenia’s Main Millionaire MakerOutfit7, a maker of apps for mobile devices and best known for a talking cat, has become the biggest millionaire maker in Slovenia. Six shareholders have made it among the 150 wealthiest Slovenians, including founders Iza and Samo Login, who retained the top spot with family wealth of EUR 855m, according to the latest Manager magazine.

Adria Airways Tehnika; Photo: Tinkara Zupan/STA Tina Maze, Andrea Massi; Photo: Daniel Novakovič/STA

Business people are not the only ones that contribute to business victories, Frankl said at the award ceremony in Portorož. Success-ful politicians, artists and athletes may also. Tina Maze is a legend, she gave confidence to the nation when it was most needed, he under-scored. Many people know Slovenia because of

Tina Maze, said Frankl, "Slovenia’s exports are as strong also due to her." Maze, who is taking a break from skiing this winter, won two gold medals at the 2014 Winter Olympics in Sochi and claimed the overall World Cup title in 2013, among a number of other achievements.

Sandi Češko, once the richest Slovenian, is in second place with EUR 271m, down 31%from 2014, with Outfit7 shareholder Marko Pis-totnik in third, his wealth having increased by more than a third to EUR 260m, Manager said. These are followed by Interblock owner Joc Pečečnik (EUR 240m), Tatjana and Albin Doberšek of Engineering Doberšek (EUR 214m), and the family of privatisation mogul, Igor Lah (EUR 111m), the last one to boast wealth of over EUR 100m.

The threshold for the top 100 was EUR 15.1m, almost EUR 2m higher than last year,

while the cut-off point for the top 150 was EUR 11.4m. The top 100 have a combined wealth of EUR 4.6bn, up 3.3% from 2014 and a new record.

This year the magazine decided to exclude those who had sold their assets more than three years ago and placed it into investments that are difficult to trace. Consequently, con-troversial privatisation tycoon, Darko Horvat, who was seventh in 2014 with EUR 80m, was not on this year’s list.

Source: STA


Economy

Lek in Lendava opens the largest Novartis

investment in Slovenia In September 2015, at the Lendava site of Lek, a Sandoz company, a new,

state-of-the-art packaging centre was officially opened in the presence of Simonetta Sommaruga, the President of the Swiss Confederation and Miro

Cerar, the Prime Minister of the Republic of Slovenia. The Lendava Packaging Center is one of two strategic Sandoz packing centres and will, in line with

the strategy, dynamically grow.

The Lendava Packaging Center is designed to supply more than 60 markets with medicines from Sandoz production sites around the world. It has been in operation since 2009 and by building a new, state-of-the-art and fully automated high-bay warehouse, low-bay warehouse and a logistics bridge connecting the warehouses with the existing production facility and by expanding packaging produc-tion capacity, overall capacity has increased significantly.

"Due to an increased demand for packaging of medicines and due to the outstanding and reliable work of our employees, Novartis decided to make the new investment in Lendava, which is the larg-est single investment made by Novartis in Slovenia so far. Over EUR 24m has been invested in the construction of the new packaging centre. In total, Novartis has invested more than EUR 55m in the Lendava Packaging Center and more than EUR 110m at the Lendava site overall", explained Voj-mir Urlep, President of the Board of Manage-ment of Lek, a Sandoz company, at the opening ceremony.

01


Economy

The President of the Swiss Confederation, Simonetta Sommaruga, congratulated all on the opening of the new facility, stressing the importance of Swiss investments in Slovenia and highlighting the corporate responsibil-ity of private companies. At the event she met with the management and associates of Lek, a Sandoz company.

Production volume and number of associates growing

Since its opening in 2009, the production volume at the Lendava Packaging Center has been growing constantly. The annual growth exceeds an average of 35%. From being brought into operation until now, a total of over 280 million packaging units have been supplied to more than 60 markets around the world.

Along with the increased production capacity, the number of associates has also grown – at the time of being brought into operation in 2009, the Lendava Packaging Center employed 35 as-sociates, today it has more than 250 associates.

Technological innovation for environmental efficiency

Even from the planning stage this investment had to meet, as with all Novartis investments, the high Novartis standards with regard to en-vironmental responsibility and energy efficien-cy. An expert evaluation of the environmental impact was made for the new warehouse and expansion of production capacity. Packaging of final solid pharmaceutical products and their storage are not a source of major environmen-tal burden.

All investment projects at Lek, a Sandoz company, are accompanied by technological innovation and process improvements, which also applies to the new Lendava Packaging Center. All the air-conditioning systems in the new premises utilise the heat from the so-called ‘waste air’. There are integrated sys-tems that utilise heat recovery from steam condensate and high-efficiency water coolers. All energy devices are equipped with frequency regulators which adjust energy consumption according to current needs. The stand-by sys-tems, with the option of economic consump-tion of energy, are also integrated. All energy and air-conditioning systems are controlled by a central control system providing additional energy savings.

Planning and implementation at the new facility are the result of local knowledge The construction of the new logistics system started in September 2014 and was completed in August 2015, a record time of just 11 months. The facility is 113m long, 41m wide and 31m high. The logistics bridge is 65m long. The high-bay warehouse has 11,300 pallet spaces.

The conceptual design of the warehouse and construction project was accomplished entirely in Slovenia using local know-how. Six main contractors, with 18 subcontractors, were en-gaged in the building process. In total, around 210 workers were involved in the execution of the whole project. All equipment suppliers were Slovenian, except for the manufacturer of the three high-bay lifts which were supplied by Swisslog, a Swiss company.

01-05 New state-of-the-art packaging centre of Lek, a Sandoz company, was officially opened in Lendava in the presence of Simonetta Sommaruga, President of the Swiss Confederation, Miro Cerar, Prime Minister of the Republic of Slovenia, Vojmir Urlep, President of the Board of Management of Lek and Jeff Rope, Head of Global Technical Operations of Sandoz company. Photo: Nebojša Tejić and Tamino Petelinšek/STA

02

03

04 05


Economy

Top foreign investors in Slovenia awarded

In November, manufacturing firms were dominant as the top foreign investors in Slovenia when they were honoured by SPIRIT Slovenija,

the public agency for the promotion of entrepreneurship and foreign direct investment.

SogefiFiltration, a maker of oil and air filters primarily for the automotive industry, was honoured as the best employer. Owned by Ital-ian group, Sogefi, it employs 160 people and boasts annual sales of EUR 30m, all of which is exported.

Optotek, an optics and laser specialist owned by Japanese conglomerate Canon, was awarded for its business results and its focus on develop-ment. The company has a staff of 58 and gener-ates sales of EUR 7m. It is among the Slovenian firms with the best credit rating.

The award for longevity, that it a long-term presence and focus on sustainability, went to WillyStadler, a company owned by its name-sake German group that specialises in making sorting plants for the recycling industry. The company has had a subsidiary in Slovenia since 1997. With revenue of EUR 14m, it boasts value added per employee of just under EUR 50,000.

Schenker, a Deutsche Bahn company founded in 1989, took the honours in the category of

01


Economy

logistics hub. Its credit rating is among the best in the country and value added per employee is at just under EUR 65,000, the jury said.

The government sent a positive message at the ceremony, with Aleš Cantarutti, State Secre-tary at the Ministry for the Economy, high-lighting that they are keen to attract foreign investments, which includes greenfield and brownfield investments, as well as the expan-sion of existing operations. He said that the government would set aside "substantial funds" to promote foreign direct investment, while also encouraging Slovenian companies in key markets such as the EU, Japan and the US.

Gorazd Mihelič, Head of SPIRIT, noted that the annual survey of foreign-owned companies in Slovenia shows that the business environ-ment is slowly improving, although there is still room for improvement, in particular with regard to the issuance of permits, which can be "a nightmare". He said that SPIRIT would strive to be more flexible and less bureaucratic, mak-ing efforts to improve the quality of its services as the main contact point for foreign investors.

The representatives of the awarded business provided a nuanced message.Leopold Šmit, General Manager of Sogefi Filtration, urged the government to secure a stable economic and business environment eschewing frequent changes. At the same time, to put in place "real flexibility" of the labour mar-ket and change the personal income tax law to reduce the tax wedge.

WillyStadler, Owner and CEO of its namesake parent company, said he is "very happy with their decision to come here", due to the workforce as well as support from the local community. He went on to say that Slovenian employees are highly qualified, very motivated and eager to learn, with the Slovenian installation team the best in the group. In addition, the Krško municipality where the plant is located, offers "excellent support" in the issuance of planning decisions, which "cannot be taken for granted everywhere".

Source: STA

01-02 Invest Slovenia FDI Award; Photo: Daniel Novakovič/STA

03 Invest Slovenia FDI Award; Photo: Stanko Gruden/STA

04 Invest Slovenia FDI Award; Photo: Daniel Novakovič/STA

05 Gorazd Mihelič – SPIRIT; Photo: Daniel Novakovič/STA

06 Willy Stadler; Photo: Daniel Novakovič/STA07 Aleš Cantarutti; Photo: Daniel Novakovič/STA

02 03

04

05 06 07


Economy

IEDC’s International

Annual Presidents’ Forum 2015

Digital Leadership is based on sensitivity to other people

Leaders from 12 countries attended the traditional autumn Presidents’

gathering and discussed topics on digital Leadership with William

A Fischer, Professor of Innovation Management at IMD Lausanne

and one the world’s most influential management thinkers on social

media. The 28th IEDC’s Presidents Forum was titled: "Are you a Digital

or an Analogue Leader?"

"Despite all of the furor over Artificial Intelligence and algorithmic thinking, I still believe that the lib-eration of human talent will remain the key leader-ship priority for a long time to come. Sensitivity to the human condition has always been a hallmark of effective leadership and there is no reason to believe that that will fade in any regard, either," stressed William A Fischer, the keynote speaker at the forum.

"The refugee crisis is a crisis of leadership, we would need more contact with reality. In this context, I address politics to learn from business people. Unfortunately, current measures are quite short term and insufficient. How many new buses are needed to escort the refugees to the next country

is not the right question", pointed out Professor Erhard Busek, the former Vice-Chancellor of Austria and Coordinator of the South-Eastern Cooperative Initiative.

Janez Škrabec, Founder and CEO of the Riko Group stressed that, despite ever-changing challenges, the essence of leadership remains the same: "A good leader leads in a way that people are barely aware of his existence. A lit-tle worse is the leader who is loved. Then a leader whom people fear and finally, the worst leader is the one who is despised."

While presenting on the future of digital leadership, Professor Fischer said that there will soon be on the market an innovation that


Economy

Women and Leadership Around the WorldA special chapter ‘The Leadership Development Journey of One of Slovenia’s Most Influential Women’ dedicated to IEDC President Professor Danica Purg, was recently published in the book "Women and Leadership Around the World". The book, the third volume in a "Women & Leadership: Research, Theory and Practice" book series, is published through a partnership with the International Leadership Association and Information Age Publishing, USA, and authored by Dr Susan Madsen, Utah Valley University. The book examines women’s leadership in four regions of the world — Asia Pacific, Europe, North America and the Middle East. The chapter about European female leaders contains reports from Finland, the United Kingdom, the Czech Republic, and a case study about the leadership journey of Professor Purg. Dr Madsen and her fellow editors worked for more than two years on the third volume. "This volume focuses on women around the world and how they can become stronger leaders by overcoming challenges and stepping forward," said Dr Madsen. "Strengthening women and leadership is not just an issue here in Utah or in the United States, it is important around the world. There’s a lot of work globally to be done to build and strengthen women to have confidence in their abilities to lead as well as care for and protect their families. Women need to rise up and take leadership roles around the world — whether at the grassroots level or at the village or country level."

will replace e-mail. "Leadership in the future will undoubtedly be ‚digital‘, which means: faster, more cohesive, more inclusive, more risky, more trans-parent but on the other hand, more intimate and careful." A digital revolution therefore requires, from leaders, a balance between meeting new trends and technologies, a capacity to man-age complexity and big data and at the same a focus on the individual. Because, as Professor Fischer pointed out, a good leader is and always will be the one that enables the development of other people.

A round table discussion with internation-ally renowned business leaders was attended by Ulrik Nehammer, President, Coca-Cola

(Germany); Sandi Češko, President, Studio Moderna (Slovenia); Thorsten Köhler, Presi-dent, YOUR SL GmbH (Germany); and Bran-islav Vujović, President, New Frontier Group (Austria). They stressed the importance of IT and digital thinking in the economic sense as the trend dramatically changes the clas-sic structure of companies - the boundary between users and providers of services and products is becoming increasingly permeable. Professor William A Fischer, a researcher of talent and innovation, concluded with the fol-lowing thought: "The best are those organisations where employees feel they have all the freedom and the leadership however, has all the control."


Economy

Interview: Dr Pierre Casse, Academic and Leadership Expert

Politics is a Part of All OrganisationsPrepared by Tina Drolc, M.Sc.

From a senior World Bank Staff Development Officer, to an esteemed academic and business consultant to many multinational corporations (Alcatel, GKN Corporation, Hoffman-La Roche, Nokia, ICL, Ernst & Young and Disney), Dr Pierre Casse has had a rich career. Dr Casse is a Leadership Chair at the IEDC-Bled School of Management and teaches at the Moscow School of Management (Russia), Steinbeis University (Germany), IAE of the University of Aix-en-Provence, (France) and the Kellogg School of Management (USA). His areas of expertise include Organisational Behaviour, the Global Market and Cultural Differences, International Negotiation and Strategic Leadership. He has published books on multicultural management, leadership, intercultural negotiations, philosophy and business.

Q How would you describe a negotiation activ-ity when the negotiation is at the institutional or country level and when it happens at the busi-ness, company level? A The power game (politics) occurs in all or-ganisations (the public and private sectors) and so negotiation is a must for the sake of the indi-vidual’s performance and career. It is not good enough to be brilliant and have great ideas. One also needs enough power to implement them and to get the proper recognition when deserved. Three basic negotiation guidelines are, in order: 1. Be visible (senior managers must know that you exist and you are good); 2. Show that you can contribute in a meaningful way to the success of the organisation; 3. Show what’s in it for the senior executives. At the World Bank I was able to negotiate my career

Cultural tolerance is a must in intercultural negotiation (with some limits).

Q Sometimes, parties agree on something but it is not understood. Is that a matter of culture, emotional intelligence or trust? A All the above! In many cases, misunderstand-ings regarding the final agreement is based on good faith. People really believe that they have reached an agreement and yet they will dis-cover, during implementation, that they did not actually have one! This can happen because of pressure from inside or outside to agree on something, the negotiators feel that they must agree on something. The environment, includ-ing the corporate cultures involved, can force them to claim that they have been successful. Additionally, some negotiators are so eager to have a deal that they will perceive the other party’s position in such a way that they believe they have a deal and ignore the need to check it out. However, sometimes trust in the good faith of the other party will be so strong that people will want to believe that the final agree-ment is real, fair and good for everybody.

Q There is an imbalance between the interests of "first world societies" and the needs of the "third world". Sustainability requires a global strategy and equal treatment of any society. Indeed, it is a shame that the world negotiates that all the time, but what would be your reference point to inspire our society towards a higher purpose in life? A Our survival!

Q With the phenomenon of digital technologies, everyone seems to be in the "media industry", which opens the question of the production of good news and credibility. Should the media be a place for negotiation and, if yes, on what and with whom could the media negotiate? A The media play a critical role in all public negotiations ("sharing" information is a form of negotiation). Unfortunately, the impact of the media is, in many cases, negative and even worse - dangerous. Editors are playing an extremely important role in the manage-ment of information and its transformation into knowledge (i.e. something meaningful for the people). I am not sure that journalists are fully aware of the responsibility they have in presenting national and international events which, very often, is in a highly biased way. Their selection of events (bad news in many cases); their interpretation of their sources; their conclusions about what it means for the listeners and viewer, can have enormous con-sequences in terms of how people think, feel and behave. Reporting on the world is a form of unilateral negotiation that can be very dangerous for all. I strongly believe that there is a need for media leaders to revisit the ethical side of their trade.

path by: getting along with my managers and leaving them when they were not supportive enough; having a clear idea of the kind of job I wanted and negotiating my transfer from one position to another (I had four jobs over 12 years); building credibility and keeping my op-tions open by networking outside the organisa-tion (i.e. publishing a book and teaching at the George Washington University).

Q You wrote a book "Managing Intercultural Negotiation". What would you say is most im-portant at the beginning? Can you share some practical experience?A In my book (in cooperation with S.P.S Deol), I emphasise the need to first be aware of one’s own cultural assumptions and values. Many people take their way of seeing and appreciating things, as well as people, as natural and granted: "this is the right way"! So the first step in cross-cultural negotiation is to realise that our inter-pretation of any given situation is culturally biased. The next step is to practice empathy and acknowledge that other people have their own perceptions, which can be as valid as our own. Finally, success in intercultural negotiation is very often based on the ability to create, with the other party, a third or alternative way (the one we invent together). For example, when I was at the World Bank supervising projects in Africa and Asia, I was quite amazed to see that the notion of corruption had so many differ-ent meanings (and practices) across the world.

Dr Pierre Casse, Academic and Leadership Expert

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Economy

Interview: Ildiko Kiss, Country Manager, Croatia, Serbia, Slovenia, Bosnia & Herzegovina, Macedonia and Montenegro, Air France KLM Delta

Air France-KLM Optimistically Pursues its "Perform 2020" PlanPrepared by Jana Drolc

Air France-KLM is part of the largest transatlantic alliance with Delta Air Lines and Alitalia and continues to develop its worldwide partnerships. As explained by Ildiko Kiss, Country Manager for Croatia, Serbia, Slovenia, Bosnia & Herzegovina, Macedonia and Montenegro at Air France KLM Delta, the group strongly believes in the potential of the former Yugoslav countries, as indicated by their new route from Amsterdam’s Schiphol to Zagreb, which opened in 2014 and the celebration of Air France’s tenth anniversary in Slovenia.

Q The Passenger segment accounted almost 100% of the group’s operating profit in Q2, 2015, returning EUR 210m. What has been the main focus in this segment?A The passenger experience is the main objec-tive of the Air France and KLM strategy. Both airlines continue to roll out new products and services on their long-haul network, as well as upgrade the long-haul fleet in order to meet the highest global standards. In November 2015, KLM welcomed its first Boeing 787 Dreamliner, the first flight served Abu Dhabi and Bahrain. This latest-generation aircraft is equipped with WiFi, fully-flat seats giving direct aisle access in World Business Class, as well as increased 40% recline in Economy Comfort and Economy cabins. This aircraft will also mean a substantial reduction in operating costs and is equipped with highly fuel-efficient engines, which will reduce CO2 emissions by at least 20%. Furthermore, the legendary Boeing 747 will definitively be withdrawn from the Air France fleet on 11 January 2016.

This winter, after renovating its World Busi-ness Class cabins in all of its Boeing 747-400s, KLM will gradually equip its Boeing 777-200s and 777-300s with a new World Business Class and Economy Class. At the end of 2015, 60% of KLM’s fleet will be retro-fitted with fully updated cabins.

Q One of the biggest European airports, Charles de Gaulle in Paris, won the award for the world’s most improved airport. Based on the criteria, what have been the biggest improvements and changes at the airport?A Skytrax recently awarded Paris-Charles de Gaulle the "World’s Most Improved Airport". Voted on by passengers from all over the world, the prize goes to the airport that has made the most progress in terms of quality of service and customer satisfaction. In the general ranking done by Skytrax, Paris-Charles de Gaulle im-

Ildiko Kiss


Economy

proved 47 places in one year, from 95th to 48th place. This is also the first time that the airport has been in the Top 5 in the world for shopping and the Top 10 for the quality and diversity of its services. These results demonstrate the progress that the airport has made over recent months. In terms of overall satisfaction, Paris-Charles de Gaulle Airport improved twice as fast as any of its competitors between 2010 and 2014. At the end of 2014, 89.8% of all Paris-Charles de Gaulle passengers were satis-fied. Faster, fluid and easy connections are now possible thanks to the new paths designed for passengers to remain airside and not have to pass through security control again once in Paris. For example, Slovenian passengers save around 10 minutes and remain airside dur-ing their connections from Paris Charles de Gaulle. Passengers today are very happy with the comfort of the boarding lounges where the atmosphere has been improved and free WiFi is available to all passengers.

Q Air France-KLM operates as part of the larg-est transatlantic joint venture with Delta Air Lines and Alitalia, which is now the most ad-vanced model of economic cooperation between airlines. It represents almost 25% of total ca-pacity between Europe and North America and generated USD 13bn in revenue in 2013. In the short term, does the group plan to increase their cooperation?A As well as strengthening our joint ventures (Delta Air Lines, Alitalia, China Southern, Chi-na Eastern, Kenya Airways, Air Mauritius) and our strategic agreements (GOL), Air France-KLM is continuing the development of our partnerships all over the world. To offer more flights and destinations, the Group is extending its cooperation with the Canadian airline, West-Jet. The Group also has strong ambitions in Asia, illustrated by the signing of a cooperation agreement between KLM and Xiamen Airlines and the code-share agreement with Garuda on flights between Amsterdam and Jakarta.

Q In June 2014, Air France launched its first Boeing 777 equipped with your new Economy, Premium Economy, Business and La Première cabins. Since then, the best cabins are available on flights to 18 destinations (New York, Tokyo, Singapore, Jakarta, etc). What was the invest-ment and what does Air France-KLM Group promise from it?

A The Best & Beyond project aims at placing Air France at the highest possible level in terms of products and to make a difference through a caring attitude towards our customers. Air France and KLM have invested over EUR 1bn for this upgrade to our service offer. The Group had announced an investment of EUR 700m in new cabins, including EUR 500m for Air France and EUR 200m for KLM. The Air France-KLM Group will welcome 100 Boeing 787’s into our fleet at the end of 2015 and the first Airbus A350 in 2018. The aircraft will be equipped with completely new cabins. Launched on the Paris-New York route in June 2014, the new Economy, Premium Economy and Business cabins have been complemented, in September 2014, by the new La Première Suite on flights to Singapore, Jakarta, Tokyo, New York and Dubai. Customers enjoy the new Economy cabin, offering optimum travel comfort and Premium Economy, with 40% additional space. They’ve also discovered the new Business class, a real cocoon in the sky, and the new private La Première Suite.

Q Transavia is the Group’s low cost airline, and its operations increased 7.8% from 2014. As Alexandre de Juniac, Chairman and CEO of Air France-KLM declared, Transavia has been ex-panding rapidly and represents a major growth driver for the Group. How will Transavia contin-ue to compete in the very dynamic and competi-tive market of low cost airlines?A As a continuation of the summer season, Transavia is continuing its rapid development: +9%. This season, Transavia’s offers sunny and popular winter sporting destinations, but also a vast choice of city breaks to the main Euro-pean cities. Overall, Transavia will serve 72 destinations in 24 countries.

Transavia Netherlands is concentrating its activity on departures from Amsterdam-Schiphol, offering services, in continuation of the summer season, to Thessalonica (Greece), Tel Aviv (Israel), Bari (Italy), Paris-Orly (France) and Larnaca (Cyprus). The airline is also in-creasing capacity to Barcelona (Spain).

From Rotterdam-The Hague, additional fre-quencies to Berlin and Vienne are offered. From Eindhoven, Transavia is increasing capacity to Copenhagen. On departure from the three air-ports, the company is increasing its frequencies to Innsbruck and Salzburg (Austria) to meet the high demand for winter sports. From Janu-

ary 2016, Transavia will welcome three new Boeing 737-800 aircraft to support its growth in France and the Netherlands.

Q Air France-KLM has a strong presence in the countries of the former Yugoslavia (Slovenia, Croatia, Serbia, Bosnia & Herzegovina, Monte-negro and Macedonia). What are the main char-acteristics of this market and what are the short term plans and new destinations for Eastern European countries?A Air France KLM strongly believes in the potential of the ex-Yugoslavian countries. This was demonstrated last year with the open-ing of the first KLM flight from Amsterdam-Schiphol to Zagreb. This was the only route opened in Central and South-Eastern Europe in 2014. 2014 was also a year of milestones for Air France when we celebrated our tenth anni-versary in Slovenia, which shows we are here to stay and that we have a real desire to serve the region with our best. We also launched a code share agreement with Croatian Airlines to Paris-Charles de Gaulle and Amsterdam-Schiphol. This agreement paves the way for new development opportunities. Thanks to our code share agreement with Air Serbia, we can also service our passengers leaving from Belgrade. In Montenegro, Air France signed a code share agreement last year with Montene-gro Airlines to Paris-Charles de Gaulle. For the moment we do not have any more news to an-nounce, nevertheless we continue seeking new opportunities for both airlines.

Air France-KLM is continuing the development of our partnerships all over the world. Tooffermoreflightsanddestinations,theGroupisextendingitscooperationwiththeCanadianairline,WestJet.

La Premiere Suite

TheBest&BeyondprojectaimsatplacingAirFranceatthehighestpossiblelevelintermsofproductsandtomakeadifferencethroughacaringattitudetowardsourcustomers. Air France and KLM have invested over EUR 1bn for this upgrade to our service offer.


Economy

Family business, the driving force of the Slovenian economyIn December, EY Slovenia presented at its annual family business event, the findings of the survey Characteristics of family business in Slovenia 2015. Dr. Boštjan Antončič from the Faculty of Economics, University of Ljubljana which prepared the survey with EY Slovenia, stressed that the survey shows that family businesses are driving the Slovenian economy, creating jobs and added value.

The characteristics of family business and their impact on the Slovenian economy

69%oftotalsales 67%ofaddedvalue 70%ofemployment

Typically ledbythefirstgeneration: 57.5%

Led by second generation: 37.1%

Led by third or subsequent generations: 5.4%

83% of companies have family control over their strategic direction

71% of companies have two or more family members with managerial responsibility

62% of companies have two or more generations of a family involved

94.7% are micro and small enterprises with less than 50 employees

87.2% have total annual revenue of EUR 4morless

74.3% are morethan20yearsold

Key factors to the success of family business in SloveniaThroughout the survey the key factors of fami-ly businesses in Slovenia were established: high quality products and services, control of costs, established trademarks and loyalty, adaptable and focused leadership and a long-term per-spective on governance.

0 10 20 30 40 50 60

retained profits (51%)

bank loans (26%)

family financing (15.7%)

v %

Special attention to financial and tax aspects Financing is usually a key concern for family and non-family businesses. Important issues in financing can be assessed from three view-points: control, liquidity and needs. The survey findings suggest that family business should be more aware of tax and other financial aspects, for them not to represent a threat, especially in terms of their long-term plans and successful family tradition.

Amongfundingoptionsavailable,familybusinesswoulduse:

EY Slovenia supports family business EY Slovenia promotes the impact and impor-tance of family businesses in Slovenia in many different ways. The most important are the annual family business event, where the ten best practices of Slovenian family businesses are presented in of the Family Business Book (printed in English and Slovene), and in co-operation with the Faculty of Economics, the survey on family businesses in Slovenia. More information about the EY Slovenia Family Business project can be found at www.ey.com, where a copy of the book and the survey find-ings can be downloaded for free.

Demographics of Slovenian family business managers

• 68% - well over half of family business managers are majority owners

• 39% - managers of the largest age group are more than 50 years old

• 38% - the manager’s main role in the start-up of the company was as one of the founders or the only founder (31%).

Mojca Emeršič, Project Leader for Family Business EY Slovenia

The survey confirmed that family businesses represent the majority of the companies in Slo-venia and are the driving force of its economy. "As we have shown throughout the survey, the family business, as a form of ownership, is a very important element of sustainable economic growth, which is also one of the goals in Slovenia’s develop-ment strategy. Our aim was to raise awareness of the importance of family business in Slovenia. We wanted to shed some light on the main challenges and questions that family businesses encounter on their path to success; but not only that: to also an-swer questions," explained Mojca Emeršič, Pro-ject Leader for Family Business EY Slovenia.


Economy

Interview: Professor Adriana Rejc Buhovac, Faculty of Economics at the University of Ljubljana

The alignment of individual, social and business efforts on CSR impact can change the market efficientlyPrepared by Tatjana Žagar

Adriana Rejc Buhovac is an Associate Professor of Management and Organisation at the Faculty of Economics, University of Ljubljana (FELU). Professor Rejc Buhovac has co-authored a number of academic articles and a book Making Sustainability Work with Marc J. Epstein. She has also written four management accounting guidelines for the AICPA (New York) and the SMAC (Toronto) focused on challenging performance measurement issues. She explains about corporate social responsibility (CSR) and how managers should act. She believes that innovative products and processes are a critical component of creating CSR value.

the causal relationships between the various alternative actions that can be taken and the impact of those actions on CSR performance. They need to understand the likely reactions of the corporation’s various stakeholders to CSR performance, and on financial performance.

Q "CSR is an old-fashioned idea that needs to be upgraded," says Eric Orts, Professor of Legal Studies and Business Ethics at Wharton. Do you agree with him?A CSR is not cheque book philanthropy or investing in CSR practices to comply and main-tain a license to operate. The key issue today is how to integrate social, environmental and eco-nomic impacts into day-to-day management de-cisions to achieve better financial performance. It is about innovation and opportunity to simultaneously achieve excellence in CSR and financial performance. And this can be done.

Q The Tokyo Foundation survey found that Japanese corporations are focusing their CSR not just on domestic issues but also issues outside of Japan in such areas as the environment, hu-man rights and poverty and are starting to take concrete initiatives to address these issues. And they are eagerly seeking to improve their CSR by learning from international practices. What about Slovenian companies?A Most Slovenian companies are adopting CSR practices as part of their integration pro-cess with multinational corporations or part-

ners. In this case, multinational corporations are using their subcontractors and suppliers to build additional organisational capacity to achieve a CSR impact. Si.mobil, for example, has developed innovative CSR policies and practices that have been shared with their cor-porate headquarters in Austria. However, more often and more innovative CSR practices can be found in Slovenian SMEs.

Q Many market-based solutions focus on the power of the consumer to create the necessary shift toward more sustainable markets. There is a place for choosing to buy products that contribute to local economies and avoid damaging the envi-ronment, however there are a number of problems with pushing ethical consumption as the key hur-dle in switching to more sustainable economies. Can the consumer really change the market?A Alone, no-one can change the market—only the alignment of individual, social and busi-ness interests and attention on the CSR impact, can change the market efficiently. Innovative products and processes are a critical component of creating CSR value. Managers and employees must enjoy the creative challenge of trying to find new ways to incorporate CSR into new pro-cesses, new products, new customer use guide-lines, etc. They need to seek opportunities to innovate within every aspect of a product, from raw materials, manufacturing, customisation and logistics, to customers and consumers.

Q Paul Polman, Unilever CEO said, "Doing more with less can no longer be a short-term response to difficult economic conditions. It has to be an essential long-term business strategy. Businesses that recognise this new reality stand to prosper. Those that continue to live in denial will surely perish." What is your view?A The results of corporate decisions and strat-egies are being scrutinised more closely than ever before. Stakeholder reactions are faster and harsher. Some companies have been inef-fective in the development and implementation of a strategy for addressing social, environmen-tal and economic concerns or integrating this in day-to-day management decisions. And they have struggled with protecting their brands and attracting consumers. It is a challenge. CSR has to become an integral component of the corporate strategy. The CSR business case needs to be clearly laid out and supported by systematic ways of measuring and managing CSR impacts. Leadership commitment to social, environmental, and economic concerns must be consistently communicated both in words and actions. Finally, companies need to align company-specific resources and capabilities with CSR impacts; this way they are not only more efficient in solving social, environmental, or economic problems but also more credible. This, in turn, strengthens their brand.

Q The study shows that over 80% of corporate CSR decision-makers were very confident in the ability of good CSR practice to deliver branding and employee benefits. CSR is supposed to be a win-win situation - the company make profit and society benefits, who really wins?A CSR practices do not always lead to win-win scenarios. In fact, in the short run, win-loss scenarios are quite common—doing some good for the environment/society/the economy but not for the business. And yet, CSR should be about the business case, and the payoffs, which must be clear. Managers need to understand

Professor Adriana Rejc Buhovac, Faculty of Economics at the University of Ljubljana

FELU MBAMaster of Business Administration

Discover your true potential.

www.ef.uni-lj.si/mba

• FELU MBA serves you as a fast and effective entry into international business arena.

• Distinguished and internationally recognized professors and practitioners.

• In depth personal development and business career enhancement.

• Networking for life and business.

• Anchoring your personal stance and building your leadership capacity.

• New: International exchange possibilities in San Francisco and Hong Kong.

Investment OpportunitiesHETA Asset Resolution d.o.o. in Slovenia is part of the HETA Group, a wind-down corporation owned by the Republic of Austria. Its statutory task is to dispose of the non-performing and non-strategic portion of Hypo Alpe Adria, nationalised in 2009, as effectively as possible whilst preserving value.

As part of the asset disposal process, we present an attractive opportunity to invest in Slovenia. We offer a portfolio of over one billion financial claims as well as over 350 residential and commercial properties. HETA’s real estate assets are well diversified across Slovenia, in type and industry. Equally attractive is the diversity of the claims portfolio in terms of issuers, exposure and maturity.

Development project Delamaris City, IzolaA prime plot on the Slovenian coast, next to the ancient fishing and trading port of Izola. The town is dotted with art galleries, craftsman shops, cafes and gourmet res-taurants. It is without doubt an undiscovered tourist destination on the Istrian coast with abundant development opportunities.

KEY FIGURES:Land size: 34,816 m2 • Type of Use: hotel complex with 300 rooms, wellness and con-gress center, tourist apartment complex with commercial and hospitality facilities on the ground floor • Parking places: 1,150 underground parking spaces 2 floors below the whole complex

Zoning is subject to change as long as the program of the investor is aligned with the strategy of the local authority.

Alp Hotel*** Bovec – Sport HotelLocated in the middle of picturesque nature, this hotel offers ideal possibilities for either relaxing break or active holidays. It is positioned in the centre of Bovec – a pleasant little mountain town, surrounded by high peaks of the Julian Alps, only min-utes away from emerald Soča river and several historical sites.

KEY FIGURES:Net Useable Area: 4,551 m2 • Floors: -1, GF, 4 upper floors • Year of construction: 1963, refurbished 1990 • Hotel capacity: 103 rooms, 2 restaurants with up to 300 seats, congress center with up to 200 seats, SPA, in-house confectionery • Parking places: 15 in front of the hotel and free public parking nearby

Office building in LjubljanaOccupying a strategic position in the business and commercial district of Slovenia’s capital city, this modern, 7-storey A class office building, with an underground garage for 136 vehicles, is fully equipped and set for business.

KEY FIGURES:Floors: -3, GF, 7 upper floors • Net Useable Area: 10,570 m2, office area 6,000 m2 • Furnishing standard: office areas: modern & use-related; common areas: simple use- related • Year of construction: 2009 • Parking places: 136 in garage and 17 external parking places • Type of Use: office

Commercial complex in Maribor – MarketplaceA modern marketplace complex with a fully leased retail gallery and parking garage located in the Maribor city center.

KEY FIGURES:Floors: -2 GF, 2 plateau • Net Useable Area: 4,686 m2; retail gallery 1,936m2 • Year of construction: 2009 • Parking place: 275 lots in garage • Type of Use: retail and parking garage

The retail gallery is fully leased and the garage is 65% leased.

More information about investment opportunities

is available at www.har.si

2.714.400 z DDV

13.570.000 brez DDV 16.085.439 z DDV

3.600.000 brez DDV


Economy

Key Tips for Successful Business ManagementBusiness owners, who wish to succeed in the market, must dedicate time to gather data about the market situation and the financial state of both their business partners and competitors.

business entities, submitted for the purpose of national statistics, publicity and taxation purposes;

4. The production of individual credit ratings and dissemination of other market intelli-gence on business entities.

The website www.ajpes.siprovides all us-ers with free access to information about busi-ness subjects operating within the framework of the Slovenian Business Register (ePRS ap-plication) and the Register of Bank Accounts (eRTR application), while the JOLP applica-tion offers free access to annual reports. Upon request, AJPES also provides ready-made reports and information. Advanced users can use this service to connect their information systems to the databases, which makes the process of collecting and analysing data easier, allowing them to redirect their attention to their customers, sales and risk management. One of the advantages of the AJPES business information system is the web services that enable the inter-operability, integration and exchange of information on business entities, pledged and seized vehicles and the financial performance of economic entities. Since the key to success is getting the right information at the right time, the user can benefit from both lower costs and higher revenues. The more profit the user makes, the easier it will be for them to increase their competitiveness in the market.

AgencyoftheRepublicofSloveniaforPublicLegalRecordsandRelatedServicese-mail address: [email protected]: www.ajpes.si

With the help of quality and up-to-date data, business owners and managers can react to new opportunities and dangers threatening their existence more quickly and appropriately. They must have access to a system that will provide them with the right information at the right time.

Where to get the information to make your business operations run more smoothly?The Agency of the Republic of Slovenia for Pub-lic Legal Records and Related Services (AJPES) is the primary source of business information on Slovenian business entities, responsible for managing, collecting and keeping such data. It enables:

1. Insight into the Slovenian Business Register (PRS) and other registers and records such as the Register of Non-Possessory Liens and Seized Movable Property (RZZP), the Register of Bank Accounts (RTR), the Reg-ister of Bills of Exchange, Protests for Non-Payment (RPM), and other registers;

2. Insight into official publications about the proceedings of entries in the court register due to insolvency, company publications and other publications about business the PRS;

3. Insight into publically available information from annual reports and other reports of

Credit Ratings

For the purpose of monitoring the economic and financial status of Slovenian companies, AJPES keeps records of a variety of information on credit ratings, determined in accordance with the European regulation governing the operation of credit rating agencies and in accordance with the requirements of the Basel rules. The ratings are parallel to the ratings of internationally acclaimed credit rating agencies - Moody’s Investors Service, Fitch Ratings and Standard & Poor’s. The information is accessible online via the web application eS.BON or as a printed document available within 24 hours of submitting the request.

One of the last and perhaps the most valuable services on the market is proFi-Po, which complements the credit ratings service and enables the collection of data and information about a particular economic entity in the user’s own information system. This is done by connecting information from various AJPES registers and selected data and financial ratios from annual reports. The service provides its user with up-to-date information on any changes to records and registers.

As a member of the European Business Register (EBR), AJPES enables its users to access any data or information about business entities from other European countries, members of the EBR, via the EBR information system.

Let’s preserve energy. LET’S SAVE.

More http://mikrovent.si/en/

Fresh air is one of the key factors of healthy living and wellbeing. People travelling a lot usually all complain about being tired as they do not get

a quality sleep in hotel rooms.

MIK, d. o. o., Celjska cesta 55, 3212 Vojnik, Slovenia • www.mik-ce.si

Contact us for more information on [email protected]

Inadequately ventilated rooms have stale and stuffy air which leads to feeling unwell and waking up bleary-eyed.

Opening the windows to ventilate a hotel room is not a smart solution. Excessive uncontrolled ventilation should in hotels be avoided because it will result in important heat loss! 50% of your heating costs is spent on ventilation!

We present you an innovative local ventilation system that constantly brings fresh air into a room, while the windows are kept closed and the room temperature is maintained.

• It uses filters to clean the air for a healthy and pleasant living.• Ensures 100% air exchange through a built-in recuperator and provides

savings on heating.• Prevents draft and intrusion of insects.• Prevents incursion of outside noise.• Effortless installation.

Have you ever asked why?

And how is your hotel ventilated?

Are your customers getting a healthy sleep, waking up

fresh and well rested?

Give your hotel guests a deep sleep in healthy rooms!

Your solution is MIKrovent! A new concept of healthy

and energy efficient ventilation!

Do you know how much energy and money can your hotel save by installing a proper ventilation system?

Try out MIKrovent for free and let your customers decide!

We’ll install our solution in two of your rooms for a specific period of time. Let your customers decide about the quality of their sleep in a room ventilated by MIKrovent!


Economy

Let's preserve energy.

LET'S SAVE.During its 25 year history, MIK has been led by Managing Director, Franci Pliberšek. Under his leadership, the company has grown and developed into a leading producer of plastic, aluminium and wooden windows and doors in Slovenia. Their goal today is to provide customers with solutions that will not only glaze their home so that they are cost-effective and warm but will also improve the quality of living.

In 2015, MIK celebrated their 25th anniversary. 25 years of challenges has taken them to the top. Today, they employ 200 people with seven showrooms in Slovenia and a broad network of distributors across Europe.

Across the worldMIK still largely operates in the Slovenian mar-ket however they also focus on foreign markets, mainly due to the affordability of their higher quality products and the price range for the manufacture and installation of the window systems offered by MIK. Entering new markets also requires the tightening of competition

and the saturation of the Slovenian market. From 2002, MIK has been present in Albania and they are successfully expanding their PVC carpentry to more distant markets such as the Caribbean. Sales in other foreign markets are quite dispersed but generally show a positive growth trend. MIK expect their proven busi-ness excellence to generate 50% of their rev-enue in foreign markets in future years.

Turning challenges into successAs a result of the trend toward achieving the highest energy efficiency possible, MIK has been increasing window tightness and insula-

tion. PVC, wooden or aluminium windows are all energy-efficient and provide excellent ther-mal insulation value however, quality windows alone are not enough. In seeking increasingly tight and thermally insulating window pro-files, there has been a disregard for problems resulting from the tightness of the buildings, i.e. a complete change of the climate in the room given that modern windows prevent uncontrolled air exchange and today there is a lot of bad air in rooms which, in addition to feeling bad, can also cause health problems. Due to our living habits and the fast pace of life, few people properly ventilate their rooms, and most are not even aware of the problem. MIK tackled this problem by developing MIK-rovent, an innovative ventilation system that allows for ventilation with the windows closed.

InnovationMIK remain innovative, offering integrated solutions that improve their customer’s lives. If MIK don’t get such solutions from their suppli-ers, they develop them on their own. This has been a constant in recent years and develop-ment is the driving force behind MIK today, their suppliers are those buying their solutions.

MIK imports all of its window profiles and most other materials required for the manu-facture of high quality building carpentry from Germany. Their suppliers are carefully selected and they cultivate long-term relationships, giving them, among other things, access to the latest technologically sophisticated materials that meet their high standards of quality and in particular, ensures a quick response and adaptability to the market.

The emphasis in MIK continues to be on development and innovation. Their aim is to become a leading manufacturer and supplier of PVC, wooden and aluminium window systems and glass facades and a provider of complete glazing solutions for living-friendly spaces in South East Europe.

Franci Pliberšek, Owner and General Manager, MIK, d.o.o.

MIK production line Business & manufacturing complex in Vojnik

MIK windows

Let’s preserve energy. LET’S SAVE.

More http://mikrovent.si/en/

Fresh air is one of the key factors of healthy living and wellbeing. People travelling a lot usually all complain about being tired as they do not get

a quality sleep in hotel rooms.

MIK, d. o. o., Celjska cesta 55, 3212 Vojnik, Slovenia • www.mik-ce.si

Contact us for more information on [email protected]

Inadequately ventilated rooms have stale and stuffy air which leads to feeling unwell and waking up bleary-eyed.

Opening the windows to ventilate a hotel room is not a smart solution. Excessive uncontrolled ventilation should in hotels be avoided because it will result in important heat loss! 50% of your heating costs is spent on ventilation!

We present you an innovative local ventilation system that constantly brings fresh air into a room, while the windows are kept closed and the room temperature is maintained.

• It uses filters to clean the air for a healthy and pleasant living.• Ensures 100% air exchange through a built-in recuperator and provides

savings on heating.• Prevents draft and intrusion of insects.• Prevents incursion of outside noise.• Effortless installation.

Have you ever asked why?

And how is your hotel ventilated?

Are your customers getting a healthy sleep, waking up

fresh and well rested?

Give your hotel guests a deep sleep in healthy rooms!

Your solution is MIKrovent! A new concept of healthy

and energy efficient ventilation!

Do you know how much energy and money can your hotel save by installing a proper ventilation system?

Try out MIKrovent for free and let your customers decide!

We’ll install our solution in two of your rooms for a specific period of time. Let your customers decide about the quality of their sleep in a room ventilated by MIKrovent!


Economy

Interview: Wei Wenyuan, Manager at Huawei

Huawei Strive to Support the Digital Agenda of SloveniaPrepared by Tina Drolc, M.Sc.

Chinese telecommunication company, Huawei, is a 100% private company, founded by Ren Zhengfei in 1987. Today, Huawei is a strategic partner of 46 telecom operators within the Top 50 globally and cooperates with more than 400 telecom operators. In the past decade, the company has invested USD 30.7bn in to Research & Development. Wei Wenyuan, Manager at Huawe, says that Slovenia is a future strategic market for Huawei.

Wei Wenyuan, Manager at Huawei


Economy

lot in basic technologies, such as mathematics, algorithms, chips, engineering technologies, etc. Also on application technologies like LTE, 400G router, IT technologies, optical transmis-sion, ultra-broadband, agile switches, cloud data centers, smart devices, etc, Huawei has already made great breakthroughs and these will, together, support the mission of the com-pany: to build a better connected world.

Q To manage your business globally, localisation in every market is necessary. How does localisa-tion guarantee cyber-security and information security? A Given Huawei is running its business glob-ally in more than 170 counties and regions, we are already a good implementer of business lo-calisation; in overseas subsidiaries our average localisation rate is more than 70%. We have an end-to-end process and regulations to guaran-tee the security in the cyber and information networks, we insert requests about this into 15 main processes of company and all employees have to pass cyber-security testing, which is a basic requirement for all positions. This is already a symmetric matter in the company’s operations, like blood in the human body.

Q Huawei Technologies is one of the world’s largest suppliers of telecommunications equip-ment and mobile phones. How was the idea for the company born?A In 1987, our founder and CEO, Mr Ren Zhengfei, started the business with RMB 20,000 (about USD 3,000), taking a chance on the fast development and booming require-ments of telephones, and later mobile phones, in the Chinese market. In the very beginning, we were just a small dealer for foreign telecom-munications equipment, until we researched our first successful c&c08 switcher in the Chi-nese market. Since that time, more than 400 telecom companies have come and gone, only a few have survived the technological and mar-ket requirements, which are changing every day. Huawei has maintained 28 years of high-speed development, step by step, to become the biggest information and telecommunication technologies giant in the world.

Q The company itself was locked out of a major market in 2012, having overtaken Ericsson. The telecom business in 2014 recorded a 20% increase in revenue to 288 billion yuan (USD 46.45bn). What is your market share and future expecta-tions? A At the corporate level I don’t have the de-tailed figure about this, but from the perspec-tive of sales revenue, we are already number one in carrier network business and one of the top three telecom vendors on the world. Even in Europe, the hometown of the traditional telecom vendors, we have a more than 33% share. This means recognition and trust of our technologies and services from customers and the market.

Q Huawei operates in 170 countries with the major growth in non-U.S. markets. How will you promote growth in the US and how do you per-ceive the Slovenian market and its consumers?

A We are a strategic partner of 46 telecom op-erators within the top 50 in the world, such as Telefonica, Vodafone, Dutch Telecom, BT, etc. We have a good cooperation with more than 400 telecom operators. I believe customer trust is the best proof of the reliability and quality of our solutions and services. We won’t give up any market and have enough patience to wait for it to open; with the support of customers we believe this will happen.

In Slovenia, with more corporations and projects realised together with our customers and local partners, we hope Huawei will become a prime strategic partner of the major telecom operators and enterprise customers, and also a favorable consumer brand for smart phone us-ers. We would like to bring our advanced ICT planning and implementation experience to Slovenia and become an ICT advisor for the lo-cal community, in this way we will try our best to contribute more to this country. Slovenia is our future strategic market, we have a lot of expectations and plans for it, to support the digital agenda of Slovenia.

Q Your company has 21 R&D institutes in countries including China, the U.S., Europe and others. With over 170,000 employees, around 76,000 are engaged in R&D. What is the core competence and future vision of Huawei R&D activities?A R&D is the soul of Huawei. Just in the past decade, we invested USD 30.7bn in R&D, we are the Chinese company with the most pat-ents in China, one of the top 50 patent holders in the US and one of the top 10 patent holders in Europe. We were also named by BCG as the most innovative company in 2014 and top 100 global innovators by Thomson Reuters.

Huawei R&D is leading ICT trends, like Gra-phene, SoftCOM, SDN, 5G, cloud computing, Big Data, the Internet of Things, cyber security technologies, etc. In addition, Huawei invests a

Weareastrategicpartnerof46telecomoperatorswithinthetop50intheworld, such as Telefonica, Vodafone, Dutch Telecom, BT, etc. We have a good cooperation with more than 400 telecom operators.

Sloveniaisourfuturestrategicmarket, we have a lot of expectations and plans for it, to support the digital agenda of Slovenia.

WewouldliketobringouradvancedICTplanningandimplementationexperiencetoSlovenia and become an ICT advisor for the local community, in this way we will try our best to contribute more to this country.

We were also named by BCG as themostinnovativecompanyin2014andtop100globalinnovators by Thomson Reuters.


International Business Partners

American Chamber of Commerce – AmCham Slovenia

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

TST: In numbers, how was 2015 for AmCham Slovenia?AmChamSlovenia:• Reached more than 300 corporate members, • organised more than 50 events, • 620 young professionals involved in the

AmCham Young ProfessionalsTM program, • 46 mentors & mentees,• 15 employees exchanged within the Part-

nership for Change project,• 9 professional AmCham committees and 4

working groups,• 9 of our member companies presented their

best practices in the Best of the Best program,

TST: In numbers, how was 2015 for AHK Slowenien?AHK Slowenien: German-Slovene economic relations increased in 2015. Last year, foreign trade between Germany and Slovenia was, for the first time, over EUR 10bn, which is more than 20% of Slovenia’s foreign trade. In addi-tion, several German companies were successful in the privatisation process in Slovenia. Good German-Slovene economic relations are sup-ported by the government, as indicated by this year’s visit of Slovenian President Pahor with an economic delegation to Munich and Stuttgart.

• 2 business missions to the U.S.,• New president elected, Nevenka Kržan,

Senior Partner, KPMG.

TST: What is the basis of Slovenia / U.S. partici-pation and which are the main businesses?AS: AmCham Slovenia is the voice of the international business community with no preference for specific industries. Whether helping companies in the domestic market or in the U.S. market, we always try to find solu-tions which are specific to each company. Our advantage is that we have strong connections with business developers and market experts on the ground, this is crucial for identifying which U.S. state is the best entry point for a particular industry.

TST: What types of business solutions and partnerships between the countries are usually undertaken? AS: Since the Slovenian economy is export driven, most companies are looking for a part-ner, agent or distributor. There is a minority of companies that want to open an office, build a plant and for this we often advise them to check also with city or state authorities, since a company may get some incentives. This, of course, depends on the city but almost all

American cities compete for new investments which mean new jobs. One of the best ways to start a partnership with companies or business developers in the U.S. is to take the time to visit the chosen state, develop strong ties and research the market that you want to enter. Building strong connections and relationships is crucial.

AHKS: German companies trust Slovene in-dustry a lot and therefore we have a lot of first tier suppliers to the German car and metal in-dustry, most of them also being development partners. This year, our chamber took more than 50 Slovene companies to Germany where they made effective B2B partnerships. Also, we as a chamber, are going in this direction and therefore we are planning a range of events in the next year where we will discuss Industry 4.0 – digitalisation of industry with Slovene and prominent speakers from Germany.

Also, the German- Slovene Chamber of Com-merce has almost 250 member companies.

TST: What is the basis of Slovenia / Germany participation and what are the main businesses?AHKS: Most of the foreign trade between Slo-venia and Germany is done within industry: automotive, large machine production, the electro and chemical industries.

TST: What types of business solutions and partnerships between the countries are usually undertaken?



British – Slovenian Chamber of Commerce –BSCC

Advantage Austria

TST: In numbers, how was 2015 for the British - Slovenian Chamber of Commerce?BSCC: In 2015 we continued with our standard portfolio of events, which includes the Business Breakfast events and outbound trade missions. This year we targeted Wales with a delegation of seven companies from the manufacturing sector. One of them signed a distributorship agreement and there were in-stant sales.

BSCC was also involved with the Slovene National Football Association in organising a business event around the football match with England. Ties which were made at this event will mature in 2016 when we will take our members to the most important fair next year in the UK, the International Festival of Busi-ness 2016.

All these events and business initiatives which we offer to our members have resulted in a 25% increase in membership since the

TST: In numbers, how was 2015 for Advantage Austria?AdvantageAustria: Austrian exports to Slo-venia increased 6.5% in the first half of 2015 compared to 2014. In total, a 10% increase is expected, resulting in an additional EUR 4.7bn between Slovenia and Austria in 2015. With this result, Slovenia remains Austria s most important business partner in the region, while Austria remains the largest direct investor in Slovenia with 700 companies and investments of EUR 5bn.

TST: What is the basis of Slovenia / Austria par-ticipation and what are the main businesses?

AA: Collaboration between Austrian and Slo-venian companies happens in many industries. With more than 30 events in Slovenia per year, Advantage Austria is striving to further support Austrian companies in the Slovenian market. Next year, the topics will focus on technology, services and the dual education system, which is an important prerequisite for future investments in Slovenia.

beginning of 2015 and since 2014, when the project was launched, we have increased our membership by more than 60%. Being part of the International network of British Chambers of Commerce (42 in the UK and more than 100 all over the world) makes our mission easier to deliver.

TST: What is the basis of Slovenia / U.K. partici-pation and which are the main businesses?BSCC: Both countries are well developed in sectors such as food & drink and automotive but, of course, the scale of the economy differs a lot. BSCC would also like to promote other sectors of mutual interest including energy, environment crafts and social entrepreneur-ship. Unfortunately, the size of the Slovenian economy is not relevant for big UK companies but for SME’s it is and it can be used as a test country or a hub for CEE. On other hand, it is quite tough to understand that the UK, as a big stable economy, is not recognised as one of the potential markets for our companies and Slo-venia in general. All that leads to the improve-ment of bilateral trade is business awareness.

TST: What types of business solutions and partnerships between the countries are usually undertaken? BSCC: In general we are focused on improv-ing business awareness, in both countries, about the business potential. The best sectors, from our perspective, for FDI are the automo-tive, energy and infrastructure, which are predominantly reserved for larger companies. SMEs can be successful if represented in a clus-

ter. We see significant potential in the housing industry and craft sector. The UK has to deliver to the market each year 250.000 new residen-tial properties to control real-estate prices.

Important existing CEE Tier 1 suppliers in the automotive industry will have to open production facilities also in UK if they wish to continue to be in the big picture of the in-dustry, especially since Jaguar & Land Rover reinforced their presence in CEE with a new assembly line in Slovakia. Interactions of Tier 1 suppliers from both sides can lead to synergies or even joint ventures to preserve their posi-tion in the industry as well as to penetrate each other’s supply chains.

TST: What type of business solutions and part-nerships between the countries are usually un-dertaken?AA: Cooperation among companies within the two countries is diverse. According to a recent survey conducted by Advantage Austria, the outlook for economic growth in Slovenia for the next year looks promising, which will en-courage even more businesses.


TST: In numbers, how was 2015 for ITA?ICE: As a modern TPO, we deliver a wide range of tailored services, from information to pro-fessional training and research, from promo-tion to technical assistance and consultancy to start working and take root in foreign markets. In Slovenia, during 2015, we concentrated on personalised assistance to individual com-panies looking for the right partners and on promotional activities in the most promising sectors such as sustainable agri-food chains, life-science, mechanics and robotics, biomedi-cal, boat building, wood processing, design and energy efficiency. This means we increased our assistance turnover target by 12% while boost-ing promotional activity by almost 40% with 42 initiatives realised, including fair participa-tion, incoming, seminar and media campaigns. We were also particularly pleased to cooperate with the Slovenian administration on the Expo experience, a shared success for our countries. Furthermore, 2015 has been a promising year for Italy as a whole. A favourable Euro exchange rate, low energy prices and of course Expo Milano 2015, were a good stimulus to our trade balance. Our target is to reach EUR 500bn in exports this year with an additional EUR 50bn by the end of 2016. Data shows we can be op-timistic, having finally recorded an advance in trade in services along with the traditional positive balance for trade in goods.

TST: What is the basis of cooperation between Slovenia and Italy and which are the main busi-nesses?ICE: Italy and Slovenia are open and well-in-tegrated economies, culturally and geographi-


Italian Trade Agency –ICE

cally close, which is why one of our more than 70 offices around the world is located in Lju-bljana. Our total trade in 2014 was almost EUR 6.5bn and Slovenia is our main partner if we look at the percentage quota in total trade with the countries of the former Yugoslavia. Italy is Slovenia’s second export and supplier partner and the third ultimate investing country.

Trade between Italy and Slovenia grew constantly from 2000 to 2009 and, after some fluctuation mainly due to the crisis, it went back to growth in 2014. According to data from the Slovenian Statistical Office, in the first half of 2015 our bilateral trade continues to grow (+ 2.1%) with the predominant sectors being oil, metallurgy, automotive, chemical products, machinery and equipment for industrial and domestic use, agri-food products, electricity and gas, recovered materials, rubber, plastics and wood products

TST: What kind of business solutions and part-nerships between the countries are usually un-dertaken? ICE: In 2014, Italy increased its FDI in Slo-venia to EUR 36.1m (+ 4.7%, with a stock of EUR 803.5m of direct investment - BPM6). From 1994 to 2014, FDI from Italy increased more than seven times with an average an-nual growth of 10.4%. Overall, there are 704 direct investments from Italy, 492 are green-field investments, 206 investments in existing companies and 6 investments in subsidiaries, institutions and foundations, concentrated in 532 Slovenian companies. The most attractive areas for Italian FDI in Slovenia are the central region, the coast and the Karst region. The geographical origin of investments stems from the Italian regions bordering Slovenia, that is, Friuli Venezia Giulia, Veneto and Lombardy. The presence of reciprocal minorities in our territories facilitates industrial cooperation in sectors where our countries express their main competitive advantages in a win-win relation-ship. There is a wide variety of sectors such as finance, the chemical industry and energy, mechanics and automotive, wood processing, furniture and design, textile and leather, ap-parel and accessories, as well as the agri-food industry.


Slovene – Russian Business Club

Kazakh-Slovenian Business Club – KSBC


TST: In numbers, how was 2015 for the Slovene - Russian Business Club?Slovene - Russian Business Club: This year marked a protectionist shift in the Rus-sian economy towards local partners due to po-litical complexity and the plummeting rouble. The new term of "import substitution" has even been coined. Yet, the Slovene-Russian vector has shown a lot of resilience and we realised two round-tables in Moscow and have taken an active part in major Slovene-Russian events in Nizhny Novgorod, Kazan and Vršič. We cannot boast of full-hearted support from the SPIRIT agency which has not co-financed our activities this year.

TST: What is the basis of Slovenia / Russia par-ticipation and what are the main businesses?

TST: In numbers, how was 2015 for the Kazakh - Slovenian Business Club?Kazakh-SlovenianBusinessClub: At this time, KSBC is celebrating the first year of its formal existence. It was an interesting year, full of successes which can be confirmed by entre-preneurs and companies which managed, with our support, to penetrate the Kazakh market and the wider Eurasian region. Furthermore, there are also the Kazakh companies and in-vestors which, with our support, found their place in Slovenia and we expect more investors in the future.

TST: What is the basis of participation between Slovenia and Kazakhstan and what are the main businesses?KSBC: The Kazakh market is mainly open for green and environmental energy solutions of which, in Slovenia, there are plenty. A lot of im-portance is also the quality of Slovene products. An important highlight is the upcoming world exhibition, EXPO 2017, which will take place in Astana. For Slovenia, as well as for Slovenian companies, the event will strengthen a broader and more robust form of economic coopera-tion. Also, an extremely important industry which cannot be forgotten is tourism. KSBC is proud of the number of Kazakh tourists who visited Slovenia this year and the growth trend is still rising. We are also discovering possibili-ties in the opposite direction.

TST: What types of business solutions and partnerships between the countries are usually undertaken? KSBC: Due to the devaluation of the Kazakh currency, the Tenge, Kazakhstan is currently an extremely attractive destination for FDI. According to the statistics, the share of FDI in the last five years has tripled! Addition-ally, Kazakhstan is a founding member of the newly emerging fiscal single market, which is constituted in the territory of the former So-

SRBC: Slovene-Russian business is mostly driven by already local players: pharmaceuti-cals, white goods, telecom solutions, automo-tive components. No big news on this.

TST: What types of business solutions and partnerships between the countries are usually undertaken?

SRBC: Growing competition forces out pure importers and gives much more scope to those Slovene investors who have decided to go to Rus-sia and build their local presence closer to their key customers. No cultural affinity can substi-tute sound investor rationale, yet only a hand-ful of Slovene companies follow the trend.

viet Union. Accordingly, Slovenian companies in Kazakhstan are looking mainly for a partner company while, conversely, investments are more or less individual in the form of newly established companies.


EconomyPolitics

Government moves to decrease tax burden on middle classAt the end of November, the government adopted changes to the act on the balancing of public finances to ease the tax burden on the middle class for the next two years while preserving the highest income tax bracket.

Under the proposal concerning the 2016 and 2017 tax years, the third tax bracket would apply for annual pay in excess of EUR 20,400 and no longer EUR 18,960, according to the Government Communication Office.

The additional fourth tax bracket for top earners, introduced in 2013 as an effort to bring the budget deficit to below 3% of GDP, re-mains unchanged. It envisages a 50% tax rate for annual pay in excess of EUR 70,907.

The government said the aim of the change was to unburden the people receiving monthly pay that is 50% higher than the average. So far, a 41% tax rate applied for them. According to 2013 data on income tax, the change will affect about 2% or 20,400 Slovenians. But indirectly all those with higher annual pay will also be af-fected, which puts the total figure at 114,740.

The Finance Ministry expects the measure not to affect the budget or any other public funds. The motion will be fast-tracked through parliament so as to take effect as of 2016.

PM Cerar talks cooperation with Chinese counterpartPrime Minister Miro Cerar met his Chinese counterpart Li Keqiang ahead of the 16+1 summit of cooperation between Central and Eastern European countries and China in Suzhou held at the end of November. The pair shared the view that bilateral ties were growing stronger in all fields and stressed the wish to boost economic cooperation.

Li highlighted in the bilateral meeting that China wants to boost cooperation in logistics, infrastructure, hydro energy, tourism and ag-riculture, Cerar’s office said in a press release.

Cerar expressed satisfaction that Slovenia was part of China’s plan to establish a 21st century silk road. He hopes that the Slovenian port of Koper will become the key gateway for Chinese products to Central Europe. The Chinese market could undoubtedly spur the growth and development of the port operator, Luka Koper and therefore the silk road project is interesting particularly in terms of private investment in infrastructure linking the port with inland hubs, the press release added.

Li said that China was willing to co-finance projects in the fields it finds interesting, as it is working on a US$500bn fund for such projects. He also expressed the wish to speed up imports of high-quality processed foods from Slovenia, such as poultry, pork and honey products.

Slovenia hopes to become the head-quarters of China’s National Tourism Ad-ministration in SE Europe, Cerar told his counterpart. The country could help China build sports infrastructure if Beijing wins the 2022 Winter Olympics, said Cerar. The prime minister invited Li to visit Slovenia and informed him about Slovenian former President Danilo Türk running for UN Secre-tary General. Li said China would consider all UN secretary general candidates very seriously, but added that Türk is a very competent and esteemed candidate.

China is Slovenia’s top trade partner in Asia and the 13th largest trade partner overall, ac-counting for 2% of Slovenia’s trade in the first half of 2015. Exports to China are consistently below imports from the country.

Russia, Slovenia looking to overcome trade barriersWays to overcome barriers to trade dominated talks as Russian Communications and Mass Media Minister Nikolai Nikiforov held talks with Slovenian Foreign Minister Karl Erjavec.

The purpose of the meeting, during Nikiforov’s brief visit to Slovenia, was to check the state of economic cooperation and define "possible measures to arrest the negative trends," the Foreign Ministry said. Cooperation is ham-pered by the EU’s measures against Russia due to its annexation of the Crimea, and Russia’s lacklustre economic performance.

Erjavec and Nikiforov therefore discussed the "expansion of the bilateral legal basis". They said it was important to implement the agreement on the protection of mutual investments and work on joint ventures by Slovenian and Russian companies in third markets, the ministry said.

Slovenian Foreign Minister Karl Erjavec and Russian Communications and Mass Media Minister Nikolai Nikiforov. Photo: Tamino Petelinšek/STA

President receives four new ambassadorsPresident Borut Pahor received four new am-bassadors at the end of November. The Presi-dent accepted the letter of credence from Keiji Fukuda of Japan and Mykhailo Brodovych of Ukraine and also welcomed to Slovenia the new Greek Ambassador, Nikolas Protonotarios and Belgian Ambassador, Willem Albert Gerard Van de Voorde.

All the ambassadors are based in Ljubljana

President Borut Pahor accepted the letter of credence from Keiji Fukuda, new Ambassador of Japan in Slovenia. Photo: Daniel Novakovič/STA


Politics

Prime Minister Miro Cerar met his Chinese counterpart Li Keqiang. Photo: Xinhua/STA

16+1 Summit: China is willing to invest in SloveniaOn 24 – 25 November, the city of Suzhou, PR China (PRC), hosted the fourth 16+1 Summit. This annual gathering of 16 leaders from Central and Eastern European countries (CEECs) and China was held in China for the first time since the mechanism was established at the first meeting in Warsaw in 2012.

At this historically unprecedented initial meet-ing, PRC’s Premier at the time, Wen Jiabao, called for the deepening of economic coopera-tion between China and the CEECs in the man-ner of mutual respect and equal treatment. He stressed that both sides should address major concerns to the other to deepen their mutual political trust and seize the vast opportunities

available for the successful strengthening of economic, trade and human capital exchange (www.china-ceec.org).

Since 2012, within this framework, ex-changes and cooperation in the fields of invest-ment, energy, infrastructure, trade, tourism, and scientific and technical cooperation are deepening. USD 5bn has already been invested

in CEEC by Chinese companies. As stated by Ambassador Zhang Chongqing, Executive Vice President, China Group Companies Asso-ciation, at the second think-tank of the initia-tive, which was held last year in Bled, the goal should be to double the volume of trade in the future.

There are enormous opportunities for small and medium enterprises from CEE to increase their exports to China. The leading force for this kind of cooperation should be innovation. This is the way to also address other concerns such as environmental sustainability and to strengthen international competitiveness. What’s more, no matter how big a country is, it can be a champion in innovation. So, CEECs and China have a lot in common and should promote the next level of industrialisation and informatisation. Support from local and international financial institutions should also be pursued. These are crucial steps in making complementary, win-win economic coopera-tion more effective.

In Zhang’s words, there are several factors that make the CEECs attractive for Chinese Foreign Direct Investment. Factors such as the relatively low cost of labour, market size and investment incentives should be considered and also political, strategic and institutional factors such as EU membership, institutional stability, EU Free Trade Agreements, the fact that Chinese subsidiaries in the EU are eligible for participation in public procurement, EU product safety standards and certificates, good political relations with China, incentives for Chinese investors, the Chinese diaspora, pri-vatisation etc., all play a significant role in the successful Chinese investments in CEE. For example, when compared to some other coun-tries from CEE, Hungary has several crucial macroeconomic factors that make it a relatively good host country for Chinese FDI. However, improvements in attracting more and different types of FDI should be made in all CEECs.

At this year’s summit, Slovenia’s Prime Minister Miro Cerar met with Chinese Pre-mier Li Keqiang and emphasised numerous investment opportunities in Slovenia, espe-cially in the fields of infrastructure, logistics, energy, tourism and agriculture. The port of Luka Koper can function as an entry point to European market for Chinese products, so it should be taken seriously as a part of the im-plementation of China’s Maritime Silk Route Economic Belt for the 21st Century strategic initiative. Li Keqiang responded that China is willing to invest in Slovenia and hopes for an immediate increase in the import of high-quality food products such as pork, poultry and honey to China. Cerar also proposed that Slovenia would be the next place to open a Chi-nese National Tourist Administration office for South-Eastern Europe (www.vlada.si).


Politics

Interview: H.E. YE Hao, Ambassador of the People’s Republic of China in Slovenia

China and Slovenia - Building a firm foundation for economic cooperationPrepared by: Silvija Fister

The PR China’s tremendous effort to open the doors for economic cooperation between countries from all over the globe by means of economic diplomacy can not be overlooked. Slovenia has not been excluded from these efforts, as indicated by the multilateral “16+1” initiative which has been held since 2012. This year, Slovenia’s prime minister visited Beijing to attend the fourth meeting.

Q What were the new measures put forward at this year’s 16+1 Summit? How are they tailored to the specifics of small economies such as Slove-nia, which also has a very different cultural and historical background than that of PR China? A The 16+1 cooperation mechanism between 16 Central and European Countries and China, was initiated in 2012. Since then, 16+1 annual summits have been held in Warsaw, Bucharest, Belgrade and this time, in China. A landscape of comprehensive, wide-ranging and multi-level cooperation among the 16+1 countries was revealed, while various measures to boost trade, investment, financing, infrastructure cooperation have been carried out step by step. This November, the prime ministers from the 16+1 countries got together in Suzhou City, a well-known historical city in China, with the theme of "New Beginning, New Fields, New Vision". ‘The Medium-Term Agenda’ and ’The Suzhou Guideline’ for cooperation between the 16+1 countries were issued at the summit. The Agenda describes the blueprint for cooperative development over the next five years, while the Guideline specifies the cooperative roadmap.

Cultural diversity has a key role in today’s economic globalisation. The 16+1 mechanism, as well as the initiative to jointly build the "One Belt One Road", embraces this trend. It is an open process of cooperation which can be highly flexible, instead of seeking conformity. For cooperation between Slovenia and China, it is necessary to align our mechanism with the Slovenia 2015-2020 Internationalisation Program. China and Slovenia enjoy a smooth development of the bilateral relations, high complementarity in economic development and broad prospects in practical cooperation. China is willing to actively participate in Slove-nia’s projects at the Port of Koper and railway reconstruction, and carry out cooperation with

Slovenia in fields such as trade parks, logistics, equipment manufacturing and transporta-tion infrastructure based on China’s initiative of "cooperation in three port areas" of the Adriatic Sea, Baltic Sea and Black Sea. China supports its enterprises to participate in the privatisation of some state-owned enterprises in Slovenia and launch cooperation with Slo-venia in fields such as new energy, high and new technology, biological pharmacy and environmental protection. China is willing to expand cooperation in agriculture, forestry and tourism and enhance local exchanges with Slovenia.

H.E. YE Hao, Ambassador of the People’s Republic of China in Slovenia. Photo: Daniel Novakovič/STA

ChinaiswillingtoactivelyparticipateinSlovenia’sprojects at the Port of Koper and railway reconstruction.

Q What activities did you conduct in Slovenia to support bilateral economic cooperation since you have been in office and what are their expected effects? What concrete progress has been made at the bilateral level in this time? What expecta-tions does PR China have from Slovenia’s leaders on this front? A Since I took my new post here in this March, I have devoted myself to pushing forward the bilateral relationship in various sectors, espe-cially in economic and trade collaboration. I look forward to witnessing our cooperation move to a new stage in the near future.

My efforts started from promoting the high-level visits to strengthening mutual po-litical trust, which builds a firm foundation for economic cooperation. It’s a busy year for our


Politics

high level leaders to exchange visits. Mr Sun Zhengcai, a member of the political Bureau and the Communist Party Secretary of Chong-qing municipality, visited Slovenia in March. The President of the Slovenia National Council, Mitja Bervar, visited China in June. And then Mr. Dejan Židan, Deputy Prime Minister and Minister of Agriculture, Forest Food, visited China in November. In the same month, Prime Minister Miro Cerar went to China to attend the fourth 16+1 summit.

We work together with Slovenia to reach governmental level agreement and jointly pro-vide policy support for practical cooperation. In the forestry sector, the "ASEM Meeting on Sustainable Management and Use of Forests in Policy and Practice" was held this May. We totally support Slovenia to initiate the 16+1 forest cooperative mechanism and hold the first 16+1 high-level meeting on forestry co-operation in May 2016. Furthermore, in the tourism sector, the second 16+1 high-level meeting on tourism cooperation was held in Bled in September. ’The Memorandum of Un-derstanding between China and CEE Countries active participation in the "One Belt One Road Initiative" was signed at the meeting. Another important achievement this year is that, under the joint effort of both countries, the "Protocol on the Health Condition of Slovenia Export-ing Dairy Products to China" was signed, which opens the gate for Slovenian agriculture and food products in the Chinese market.

Some platforms were also built to con-nect Chinese and Slovenian companies. IEDC Bled, together with our embassy, organised the "China and Europe- 21 Century Global Leadership" Forum in June attended by China Construction, Power China and many other big companies. The First China Premium Brand Fair was at the Celje Fair, in which 60 Chi-nese companies exhibited their products. The Maribor municipality held the Slovenia-China Economic and Trade Forum in November, with more than 60 representatives from Shanghai, Jiangsu and other parts of China participating. More and more Chinese companies are willing to cooperate with their Slovenia counterparts. Over one hundred companies came to Slovenia

to seek cooperation opportunities this year. Last but not least, culture communication

will also help to boost the economic coopera-tion. This year, the performance of TURADO by the China National Opera, as well as or-chestras conducted by Chinese musicians, such as Mr Tan Dun, Mr Shao En, Mrs Zhang Hongyan, were warmly welcomed by Slovenian audiences. And more and more, Slovenia is im-pressed with Chinese culture through the Chi-nese Language Day and other events conducted by the Confucius Institute.

Great efforts to boost the cooperation have also been made by Slovenia. SPIRIT organised 10 companies to join the CEEC Trade and In-vestment Expo in Ningbo, China. More than 30 companies visited China with Minister Zidan and participated in the China International Agriculture Fair in Fuzhou. We look forward to Slovenia taking full advantage of the "One Belt One Road" Initiative and 16+1 mechanism to promote mutual benefit and win-win coopera-tion.

Q What advice would you give to Slovenian com-panies which want to take advantage of these joint Chinese-Slovenian efforts and succeed in the Chinese market? In your opinion, what fields of trade can benefit most from this bilateral ex-change? Are there any untapped advantages of Slovenian companies that they themselves are not aware of and that could give them a competi-tive advantage in your home country? A Both Chinese and Slovenia companies should seize the opportunity of the "One Belt One Road" Initiative and 16+1 mechanism,

which established a USD 10bn loan and in-vestment cooperation funds, with a focus on infrastructure, high and new technologies and green economy projects. At this year’s 16+1 summit, China proposed a discussion on the establishment of a 16+1 finance company, to explore a commercial method to support coop-eration among members.

I suggest those companies, who would like to explore the Chinese market or attract Chi-nese investment, to pay close attention to the "thirteenth five year plan", namely China’s national economic development plan for 2016-2020. It will help them to hold the steering wheel of China’s future development. The pro-posal of the "thirteenth five year plan" unveils the development concept of "Innovation, Co-ordination, Green Development, Opening Up and Sharing", as well as the action plan "Made in China 2025" and "Internet+", which show the internet, ocean and green economy are be-coming the key development points.

I was deeply impressed with Slovenia’s charm and competitiveness with quality in-frastructure, quality links to regional markets, quality human resources and the quality of life. Your high technology capability in mobile, pharmaceuticals, agriculture, environmental protection and the new energy sector, meets our innovation development philosophy. Also, a new cooperation point related to the Bei-jing 2022 Winter Olympics is exposing your strengths in winter sports.

"ProtocolontheHealthConditionofSloveniaExportingDairyProductstoChina" was signed, which opens the gate for Slovenian agriculture and food products in the Chinese market.

OveronehundredcompaniescametoSlovenia to seek cooperation opportunities this year.

We look forward to Slovenia taking full advantage of the "OneBeltOneRoad" Initiative and 16+1 mechanism to promote mutual benefit and win-win cooperation.


PoliticsEuropean Union

Investment Plan for Europe: EUR 315bn of additional investmentsThere is considerable liquidity available in the European Union, both in financial institutions and in the corporate sector, thanks to improved economic and financial conditions, as well as the actions of the European Central Bank to strengthen monetary policy. At the same time, levels of private savings remain high in many EU Member States but this liquidity is very often not reaching the real economy in volume and within the timeframe it should. For these reasons, the European Commission, in cooperation with the European Investment Bank, has been promoting the Investment Plan for Europe to mobilise EUR 315bn of additional investments.

Mobilising investments: European Fund for Strategic InvestmentsA significant lack of investment has been hold-ing Europe back, hampering the recovery and keeping unemployment levels high. Invest-ment in the EU has fallen by about EUR 430bn since its peak in 2007 – around a 15% drop. The Investment Plan for Europe is therefore at the centre of a so-called virtuous triangle for the EU’s economic stability and growth, which includes also structural reforms and fiscal re-sponsibility.

The central part of the Investment Plan for Europe is the new European Fund for Stra-tegic Investments (EFSI), backed by an EU guarantee. EFSI aims to mobilise at least EUR 315bn of additional private and public invest-ment without creating new public debt across the EU in 2015–2017. Through the European Investment Bank, EFSI is financing strategic infrastructure projects such as broadband, energy and transport; education, research and innovation; renewable energy and energy effi-ciency. In addition, through the European In-vestment Fund, EFSI is also encouraging SMEs

Press conference after the talks about the European Investment Fund in Brussels. Vice President of the European Commission Jyrki Katainen. Photo: Thierry Monasse/STA


PoliticsEuropean Union

and mid-sized companies to invest and have easier access to finance. The aim of the Invest-ment Plan is to mobilise private investors and finance projects and SMEs which cannot find financial backing elsewhere.

EFSI therefore aims to back riskier projects and engage in activities that are of greater strategic interest and therefore more complex to structure. This goes beyond existing EU pro-grams and structural funds as well as the more traditional activities of the European Invest-ment Bank and other financial institutions.

EFSI can help attract European and global investors

By addressing market gaps and taking on some of the risk, EFSI can help increase European and global investor appetite to invest again in the EU. The European Investment Bank will provide loans and will, in turn, be covered by the EU budget guarantee. EFSI will have a large impact thanks to a multiplier effect of 1:15. A small share of public resources used as risk-bearing capacity are to attract a much larger share of private finance to invest in projects which would otherwise not have been funded due to uncertainty and risk aversion.

EFSI-financing also has no size restrictions and size is not an eligibility criterion. As scale often matters when it comes to investment, it may make sense for public or private pro-ject promoters to create thematic investment platforms so that projects can be pooled, for example in areas such as energy efficiency or broadband. This would allow EFSI and other parties to finance projects jointly. Investment platforms can also be geographic: including regional, national or cross-border platforms.

Already 34 EFSI projects of EUR 23bn

While regulation on EFSI was agreed by the Member States and the European Parliament in July, the European Investment Bank, initially by using its own funds, has backed 34 strate-gic projects since April under EFSI financing, amounting to some EUR 5bn in 13 countries: Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Netherlands, Ireland, Italy, Slovakia, Spain, and the UK. These projects are expected to mobilise total investment of close to EUR 23bn: with around half supporting renewable energy, energy efficiency and other investments that contribute to low-carbon growth; the others include R&D and industrial innovation, digital and social infrastructure, transport, as well as access to finance for smaller businesses.

At the same time, the European Invest-ment Fund has already signed 62 operations of around EUR 1.5 billion of SME financing

The headquarters of the European Investment Bank in Luxembourg; Photo EIB

via COSME and InnovFin EU programs – all are also part of the EFSI, which is expected to trigger more than EUR 19bn of investments. Some 71,000 SMEs and mid-caps are expected to benefit in Belgium, Bulgaria, Czech Re-public, France, Germany, Italy, Luxembourg, Netherlands, Poland, Portugal, Slovenia and the UK.

The Investment Plan for Europe, in addi-tion to EFSI, also has two other key features, namely the European Investment Advisory Hub (EIAH) to advise investors and to chan-nel investments where they are most needed, as well as the European Investment Project Portal which lists projects available in Europe (EFSI-backed and also non-EFSI backed) that would give investors transparency on various investment opportunities. The portal will be operational from early 2016.

EFSI – COSME to finance 1,100 SMEs in Slovenia

With regard to Slovenia, the European Invest-ment Fund has, on behalf of the European Commission, recently signed an agreement with the Slovenian Enterprise Fund under the EU program COSME for SME financing, also benefiting from EFSI funding. This agreement will allow the Slovenian Enterprise Fund to provide EUR 180m of guarantees to SMEs in Slovenia over the next three years. The guar-antees will be provided as a result of a counter-guarantee from the COSME program with financial backing from the European Com-mission. The agreement will make it possible for the Slovenian Enterprise Fund to support additional financing at favourable conditions to over 1,100 SMEs in Slovenia.

Slovenia can also benefit from the European Investment Plan by setting up sector-specific investment platforms, either nationally or cross-border, with neighbouring countries. Vice President of the European Commission Jyrki Katainen, during his visit to Ljubljana on 9 October, said "By visiting all 28 EU Member States we have helped raise awareness about the objective of the Investment Plan and how it works in practice. Our biggest challenge is to counter the misconception that EFSI financing can only be ac-cessed by the governments. This is not the case: we want companies to go directly to the European In-vestment Bank. My advice to Slovenian companies and authorities is to set up investment platforms for specific sectors, similar to what they have done in France for energy efficiency and in the Nether-lands for innovative start-ups."

European Commission Representation in Slovenia

ec.europa.eu/invest-eu#investEU

InvestmentintheEUhasfallenbyaboutEUR430bnsinceitspeakin2007 – around a 15% drop.


EconomyGlobal Pitch

Interview: Dr Maja Makovec Brenčič, Minister of Education, Science and Sport

People and knowledge are the creators of development – Slovenian society needs to accept and support this.Prepared by Tina Drolc, M.Sc.

In September 2015, the government adopted Slovenia’s Smart Specialisation Strategy, a "strategy to become a successful society" which is a common strategy of the government, the business sector and industry to improve the country’s competitiveness in the global market by 2023. According to Dr Maja Makovec Brenčič, Minister of Education, Science and Sport, the strategy brings freshness to the Slovene mindset and a new approach for thinking about how to be competitive with a focus on entrepreneurial discovery.

Dr Maja Makovec Brenčič, Minister of Education, Science and Sport


EconomyGlobal Pitch

Q Slovenia’s Smart Specialisation Strategy (S4) aims to improve competitiveness by increasing the proportion of knowledge and technologies in Slovenia’s exports, with the share of high-tech intensive products to increase from 22.3% to the EU-15 average of 26.5% by 2023. What are the main industries in which Slovenia can achieve this and compete internationally? A I believe that S4 has brought freshness into the Slovene mindset and a new approach to thinking about how to be more competitive. The Smart Specialisation Strategy shows that several industries, science and research have enormous potential and are comparable and competitive globally. The task now, for the government, is to provide a supportive envi-ronment which will help these areas be even more competitive and for industry and society to use this environment in such a way so as to improve and increase the number of high-tech products, high value added services and new solutions with higher value added, which will also lead to higher employment. The prepara-tion of the strategy was a learning process for Slovenia - how to accelerate the entrepre-neurial spirit whether in science, research or business. Different players from the respective areas prepared, together, the ideas and topics for the priority areas of S4, which is something that has not been done enough in the past.

Q In comparison with other European countries, Slovenia has one of the largest tax burdens on labour, which is not-supportive for innovation and highly-skilled labour. Do you think this may obstruct the achievements of S4? A Many people argue that the tax burden on labour is a barrier to Slovenia’s competitiveness. I am sure that lowering this burden would be appreciated by many employers however, every change to the tax system must be thoroughly analysed and prepared and also meet the crite-ria for fiscal policies that have been agreed and presented to the EU and the Slovene parlia-ment. We will, in 2016, continue with a debate on tax policies with relevant stakeholders with the aim of achieving the best possible solutions for everyone involved, employers, employees, the government and also the unions.

Q As revealed in the strategy, in the area of smart cities and communities, there are 16 re-search initiatives identified with an estimated investment value of EUR 200m. What is the fu-ture vision here and when will it be implemented? A As already mentioned, the entrepreneurial discovery process is a key feature of the Smart Specialisation Strategy which states areas of specialisation, the so-called priority areas. Smart cities and communities are only one of the nine areas that were recognised in Slovenia as an area on which we should focus. At the Ministry of Education, Science and Sport, we

will prepare comprehensive measures that will help in the implementation of these and other similar initiatives. Everyone should have the same starting position and the best should also count on financial support. Of course, this sup-port will be available only through a competi-tive process, including calls for proposals. The most important goal of our Ministry is to bring together ideas from research, education and industry in order to search for new knowledge and synergies, with the goal of creating a more open and competitive environment and a more intensive transfer of knowledge. This is also one of the key strategic goals of the Ministry in this mandate: creation and transfer of high value-added knowledge, based on high quality scientific research and education in coopera-tion with business.

Q Since July, Slovenia has been fully involved in the European Space Agency (ESA) which will give new impetus to Slovenian SMEs. In the previous five year period, when Slovenia was a participat-ing country in ESA, there were 26 confirmed pro-jects totalling EUR 5.2m. What can we expect for the future? A With membership of ESA, Slovene com-panies and research organisations will have additional possibilities for participating in the activities of the agency, which is the main reason the Slovene government is doing its best to be involved in ESA, despite some who may think that Slovenia is not big enough to deal with space science and technology. We are certain this is not the case! Furthermore, we believe this is not the only area where we should proceed with internationalisation of our science and give an additional boost to our economy. Therefore, we have renewed our ne-gotiations with CERN (European Organisation for Nuclear Research) where I hope we become a full member in 2016 depending, of course, on public finances and government priorities. Membership would not only be a great suc-cess for the research community and knowl-edge transfer but also a unique opportunity for Slovene industry to participate in CERN’s procurement procedures and also for pupils, students, professors to get new knowledge and ideas.

Q In May, at the rectorate of the University of Ljubljana, 23 co-founders started the Slovenian Innovation Hub. What kind of knowledge and people does this project address? A The idea of the Slovenian Innovation Hub is to prepare concrete development projects for partners to form value chains and to cooperate in the preparation of long-term development programs. The hub addresses and gathers part-ners from research organisations, companies and institutions that, together, combine a criti-cal mass of knowledge, skills and resources.

The hub will be a catalyst for integration, defin-ing common interests and an initiator for the creation of independent projects, a mediator in the search for financial resources and an overcomer of unnecessary administrative or legislative barriers. At the Ministry, we sup-port such initiatives and see them as open, supporting environments for new innovation, both technological and social.

Q Slovenes are innovators by nature, based on the number of innovations in the world. How-ever, when it comes to selling innovations, espe-cially in the global market, we generally fail. Will the Slovenian Innovation Hub also deal with this challenge?A The hub should also address the challenge of penetrating the global market and dealing with, as you call it, "innovation selling". But it should not be the only one to deal with this challenge. The government can help and I believe it must be its imperative to prepare an innovative envi-ronment for stakeholders, but more than that it is necessary for everyone to deal with this important issue. All organisations, regardless of their involvement in the hub, whether it is a research institution, university or company, should have the innovation system embedded in the philosophy and mindset of their organi-sation. We cannot create and develop a knowl-edge society without innovation. Therefore, we are financially supporting also other, different projects through the education system. We need to support and develop talent, regard-less of the area. People and knowledge are the creators of development. We need to accept and support this in Slovenian society.

Wecannotcreateanddevelopaknowledgesocietywithoutinnovation.We need to support and develop talent, regardless of the area.

Everyone should have the same starting position andthebestshouldalsocountonfinancialsupport.


Global Pitch

Idea:

OOSMLean digital signage - oosmTV

A cost effective and easy to use digital signage and campaign management system, transforming digital screens and enhancing customer or user experiences.

TST: How did you come up with the idea?PeterBruner: The idea was born from a prob-lem that we experienced in our work…

My colleague from college and I started a design studio together after our studies. We started with basic graphic design projects but slowly, more and more, started working on vid-eo editing projects. To prepare visual material to be properly displayed on digital media was a lot of work because nothing was standardised at the time. We were searching for a proper solution and eventually started using some software from a US company. After using this software and then many others, we figured out that there was no one solution on the market that was good enough, but that the need for controlled digital content was growing. We saw the pain and we knew what we needed to cure it. This is how OOSM was born.

TST: What is the main purpose of your tool?PB: Its purpose is to simplify communication via the digital screen. We offer a simple to use, plug & play solution to turn any digital screen into an informational display. Our mission is to help companies simplify communication via digital screen. We offer them an option to simply use any digital screen to communicate their messages to their target audience. It can be used for advertising purposes, it can be in-formative such as an airport departure board or even used as an intranet in companies for booking meeting rooms. Wherever there is a digital screen (phone, tablet, TV, big screens…) you can use OOSM to control the display of the content on it. The main idea was to make it so simple that anyone can use it - if you know how to post a photo to Facebook, you are already trained to use the OOSM solution.

TST: What is your assessment of the potential market?PB: Research states that there will be more than 64m digital screens in use by 2019 with annual growth of 20% BUT in the last year it

has already grown by 23%. The market is grow-ing quickly and it is going to be worth EUR 40bn by 2019. Digital screens are popping up everywhere, replacing printed and static signs. And with OOSM, content management is now easier than ever.

TST: What is the investment necessary for the realisation of your project and what kind of fund-ing are you looking for?PB: We are seeking an investment of EUR 350,000 for further business development and to expand our team. This will take us through the next 12 months with revenue of more than EUR 650,000 and monthly growth of 25%.

TST: Why is your solution special and different from existing solutions?PB: There are a lot of solutions out there and generally, they are old fashioned and therefore too complex to use, too expensive so that only big brands can afford them and they are not built as smart systems. We bet everything on simplicity in every step.

Simplicity of use. Simplicity of connecting new technologies. Even simplicity of payment. We are creating a new standard in digital com-munication.

Experience&Lifestyle Slovenia

His and hersPrepared by: Tijana Čvorak

It is that time of the year again - the time for long evening walks in warm outerwear, the time for cashmere scarves and woollen sweaters, and the time for glamorous evening dress. When it comes to special occasions, winter is truly the best season to experiment and try something new - mix different materials and patterns, layer knitwear over business pieces or put on statement accessories. For all your winter wardrobe needs, visit Galerija Emporium in the centre of Ljubljana, where you can find all things prestigious - from business wear to key signature pieces. And for that finishing touch, stroll down to Draguljarna Malalan where they offer exquisite watches and jewellery for every occasion, whether a get-together with friends or an evening at the opera.

Seasonal Dress Code

01 his look Armani Collezioni fall/winter 2015

02 his look Armani Collezioni fall/winter 2015

03 men's watch Rolex Yachtmaster 40 Chrono

04 men's watch Bulgari Diagono magnesium

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The Slovenian Times | Winter Edition 201556

For him, the winter season brings many wardrobe options for any occasion. It is all about materials and putting them together. We chose some key pieces from Armani Collezioni ‘s autumn/winter collection. This year, they have introduced combinations including jersey blazers over knitted cardigans and scarfs, round collar knitted jackets over turtleneck tops and shirts. Nevertheless, if it is a casual meeting or a business event, nothing completes the look better than the perfect signature watch. We chose the Yacht-Master 40 from Rolex, with its bidirectional rotatable bezel made of platinum, gold or black ceramic (we prefer the everose gold with oysterflex strap) for the adventurous, and Bulgari’s elegant Diagono Magnesium with three specially selected high-tech materials for the fast lifestyle of a modern man.

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01 her look Hugo Boss

02 classic bugatti bag Karl Lagerfeld, classic shoulder bag Karl Lagerfeld, classic drawstrin bag Karl Lagerfeld

03 diamond heel boots Hugo Boss


05 women's watch Rolex Oyster Perpetual


07 women's watch Chanel Premiere

08 clutch bag Hugo Boss

09 ring Pasquale Bruni

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For her, we chose the latest from our beloved Hugo Boss collection. She is polished, sharp serious and sexy. Ja-son Wu, Artistic Director for Hugo Boss for the last four seasons, has created a fresh and modern take on menswear, inspired tailoring in a collection which stays true to the minimalism and classic pieces that define the brand. She does menswear so well. Sharp lines of classic black and white contrast, the masculine shape and tailored suit stand for the new business image. To give it a feminine twist, compliment your look with high heels and a signature bag.

Layer your white shirt with an interesting sweater. Mix your fabrics and textures and complete your casual smart styling with a timeless watch. We suggest the Rolex’s classic but feminine Oyster Perpetual 31.

And there is nothing more magical than winter balls, dressing up for the theatre or opera and wearing an evening gown to a glamorous event. We just adore the icy gray, beaded and pleated Hugo Boss dress with a sharp geometric neckline, but still feminine with its long silhouette. When wearing a special dress it must be complemented with an elegant timepiece or a pair of romantic Pasquale Bruni rose gold rings.

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110 years of the Grand Hotel UnionOpened on 28 October 1905, the Grand Hotel Union is Ljubljana’s longest, continuously running conference hotel dedicated to providing a comfortable and beautiful experience to guests visiting the wonderful Slovenia and the city of Ljubljana. This dedication results in guests being able to enjoy a memorable hotel experience on a daily basis.

The knowledge acquired over the decades pro-vides a good basis for growing business excel-lence and the tradition is a guarantee of trust and quality for Grand Hotel Union’s guests. But the hotel’s tradition is also a source of amazing stories associated with the hotel – the Grand Union Café and the Union Hall are the former meeting places of the greatest Slove-nian artists and intellectuals (painters Rihard Jakopič, Hinko Smrekar, Ivan Čargo, writers Ivan Tavčar, Ivan Cankar, Oton Župančič and many others) and new stories are written every day. This is why Grand Hotel Union is much more than merely a hotel; it is a venue provid-ing guests with a meaningful experience on many levels.

A New Experience for Business Guests from NovemberThe Grand Hotel Union Business, which has been closely connected to the Art-Nouveau-inspired Grand Hotel Union since 1979, was recently renovated with the improvements making a stay there even more pleasurable. As good listeners and great hosts, we consid-ered the wishes of our guests and, on that basis, perfected our offer. We have opened a new lounge bar, Unionski vrt (the Union Garden) which boasts a newly refreshed menu and a pleasant, completely reinvented atmosphere that will exceed the expecta-tions of even the most demanding guest. Also renovated is the hallway connecting the reception to both the restaurant and Zeleni salon (the Green Salon) and Union-ski vrt. The business hotel will also soon include a concierge to cater for the needs of individual guest by providing additional services and completing our offer.

Interesting facts about the Grand Hotel Union:

1. A milestone in technology: in 1905, the Grand Hotel Union boasted central heating, a lift and telephones, all of which were tech-nologies that were rather rare in the region at the time.

2. Around 2.75 million bricks, 30 wagons of iron girders, 1,070 doors and windows and approximately 400m2 of walls from gypsum cement were used to construct the building.

3. The original plan for the building, by Josip Vancaš dating back to 1903, is kept in the Ljubljana Historical Archives.

4. At the Union Cinema, cinema goers had the opportunity to watch the first Slovenian feature film ‘In the Realm of Goldenhorn’.

5. An interesting feature of the time was the ‘concert breakfasts’, which would start at 10.00 in the morning.


"The Grand Hotel Union is a jewel of authentic heritage and I am really honoured to be a part of its remarkable 110 year story. Every day we write a new chapter, where tradition is combined with trends and personalisation in a way that re-ally appeals to our guests in every respect. Last year we carried out a number of renovations and added new, state-of-the-art technical equipment. The meals we serve are made from locally grown, seasonal produce and we host numerous cultural events throughout the year and have more than 170 wines on the hotel’s wine list. In November, we introduced a concierge service and added a new business lounge in the Grand Hotel Union Business. As hospitality and openness are char-acteristic of Slovenian people, our interactions are genuinely kind and because Grand Hotel Union opened way back in 1905, the hotel constitutes a prominent part of Ljubljana’s and Slovenia’s past and present; our guests become part of the local scene and tradition."

Tomislav ČehGeneral Manager



The Slovenia Times at the 18th Slovenian Wine FestivalPrepared by Tijana Čvorak

Despite the fact Slovenia is quite small, this boutique country offers a vast and rich collection of indigenous grape varieties. There is a long standing tradition of viticulture and winemaking, which has been maintained to this day. Around 30,000 registered wineries in Slovenia produces between 80 and 100 million litres of wine annually (46 millions in poor 2014) from 16.000 registered hectares of vineyards out of 19.300 hectares in nature. The Slovenian Wine Festival celebrates it all! The Slovenia Times took part in this prestigious event, held from 19-20 November at the Grand Hotel Union in Ljubljana.

The best wines and sparkles

The festival presents Slovene winemakers and their wines, along with a few selected foreign brands, and awards the best wines in associa-tion with Dolce vita magazine. For eight years in a row, it has beenaccompanied by the Culi-nary Festival.

At the opening ceremony, Rado Stojanovič, the festival director, announced the best wine-makers. The Spirit of Jeruzalem 2011 from the Kupljen wine cellar was the ultimate winner of the festival, taking home two titles – highest rated wine and best white wine. The award for best young wine went to Alojzij Gaube for his wine, Prvenec 2015 and the best red wine this year was awarded to the Zgonik wine cellar for their 2012 red cuvee. Last but not least, Radgona Gold brut nature 2007 was deemed by the jury to be the best sparkling wine of the festival.

Wine is something you experience with four senses

In order to fulfil its purpose of educating peo-ple on wine and proper wine tasting techniques and therefore ensuring a responsible and proper wine experience, a simple tasting was not enough; the festival offered a number of workshops, one suchworkshop was organised by The Slovenia Times. Named Traditional and indigenous grape varieties in Sloveniaandled by Mira Šemić, a WSET Level 3 and sommelier, it took participants on a journey through the Slovene wine-growing regions, using samples from each of them to illustrate the differences and show the complexity and richness in the broad variety of Slovene wines.

Before letting her guests taste the wines, Mira Šemić explained the proper way to do soto experience the winein its full flavour and intricacy. "You see, it is not enough to drink it, not at all. Wine is something you experience with four senses. You must listen to it, to how it pours itself into the glass; look at it, at the colour it adorns itself with; smell it, to prepare yourself for the taste; and finally taste it – let it linger in your mouth, before you swallow it. Oh, and always give it space – circle it around your glass a few times, in order to let it release its full taste. In this way, you will really get to know the wine."

She continued by showing a map of the ar-eas where wine is produced in Slovenia and pre-sented a sample of wine from each of them to give each region some tangibility. Thus guests sampled the Vipava valley through Ferjančič zelen 2014, experienced Štajerska Slovenija with Valdhuber 2014 Laški Riesling and were given an impression of Slovenian Istria with a Malvazija Classic 2013 from the Rodica Truške ecological vineyard. They were then able to taste KZ Krško 2011 Blaufränkisch from the Bizeljsko-Sremič region and finally, the 2011 Colja teran wine from the Karst region of Slovenia…

All in all, the 18th Slovenian Wine Festival was a great success as it undoubtedly will be in the years to come. Untilthen,Cheers!



Regional Waste Management Centre (RCERO) was inaugurated in LjubljanaAt the beginning of November 2015, trial operations at the Regional Waste Management Centre (RCERO) Ljubljana, on the southern outskirts of the capital, were launched. RCERO Ljubljana, the biggest waste processing plant in the country, has been labelled as "one of the most modern facilities in Europe of its kind" and serves as many as 37 municipalities in central Slovenia.

RCERO Ljubljana is the largest cohesion and environmental project in Slovenia and one of the biggest of its kind in Europe. RCERO Ljubljana will provide a long-term waste man-agement solution for one third of the country, which is almost 700,000 people. With a special learning trail, it will also bring waste manage-ment closer to people in a creative way.

The key feature of the regional centre is the three facilities intended for mechanical-biolog-ical processing of waste, for separately collected biological waste to produce compost, and for residual municipal waste. The treatment plant, as this centre is more commonly known, will use the most advanced and sustainable tech-nology for waste management in Europe and ensure green jobs.

"The project is one of the best examples of regional cooperation in Slovenia due to the large number of municipalities - representing as much as one third of the population of Slovenia", Mr. Zoran Janković, the Mayor of the City of Ljubljana, stated at the ceremonial opening of the treat-ment plant.

Source: Snaga


Spectacular Christmas Event in the Unique Underground Chambers, Tunnels and Galleries

Adults normally consider a Nativity scene as a reminder of a carefree childhood and the celebration of Christmas. Postojna takes ad-vantage of the karstified land to transform the traditional Christmas festivities into a one-of-a-kind experience, full of timelessness and serenity. For over 25 years, Postojna Cave has housed the greatest underground live Nativity in the world. Extraordinary stalactites, magical lighting and musical harmonies all add up to an almost surreal Christmas experience.

Postojna‘s living Nativity is the first and greatest event of its kind in Slovenia. Over the past few years, it has grown into a full-blown spectacle. At first, the event was restricted to the part of the cave known as Tartaras, but is now spread along the entire route of the cave tour, ultimately becoming a constituent of the pan-Slovenian holiday festivities. This year, the 16 biblical acts will be recreated for the twenty-sixth consecutive year. The event will take place along several kilometers of under-ground tunnels, galleries and chambers and it will be accompanied by the traditional play of lights and music. The musical acts will be performed by various young singers and musi-cians, starring special guests, Nuška Drašček and Klemen Bunderla. The spectacular Christ-masevent will conclude with a performance by the Serpentes Magical Theatre (Magično gledališče Serpentes).

The holiday festivities, however, will not be restricted solely to the interior of the cave. The platform in front of the entrance to the cave will be transformed into a holiday fair where visitors will be able to get mulled wine and the traditional Slovenian holiday dish, potica. If you haven‘t yet decided what presents to give your loved ones, the stands among the decorated Christmas trees will surely provide you with an idea. There is no doubt that the fes-tivities in front of Postojna Cave will be enjoy-able, fun and pleasant, so make sure you don‘t miss out this year.

Tours of Postojna Cave and the live Na-tivity will take place from 25 December to 30 December, from 1pm to 3pm each day. Groups of tourists will be admitted into the cave half hourly.

Due to increased demand, we recommend that you book tickets in advance (www.postojnska-jama.eu).

No special equipment is needed but a warm sweater and comfortable shoes are required as the temperature in the cave is always around 10°C.

Postojna Cave - Slovenia’s underground paradisePostojna Cave, just half an hour drive from Ljubljana, has been attracting admirers from all over the world for over 200 years.

A fantastic web of tunnels, passages, galleries and halls, the astonishing diversity of Karst features, as well as easy access, are certainly the main reasons for the popularity of the cave and the large number of visitors, which has already reached 36 million over the 200 years. Postojna Cave is the heart of the pic-turesque Slovene Karst. It was discovered, in all its grandeur, in 1818 by Luka Čeč, a local. Prior to Luka‘s discovery, only a very small part of the cave had been known and then a proper underground kingdom revealed itself in front of his eyes, a cave system of more than 24 kilometres with the most wonder-ful cave formations had its first admirer. He called out enthusiastically to his companions waiting outside: "Here is a new world, here is paradise!" Today, Postojna Cave is famous

for being one of the most diverse karst cave systems in the world, nowhere else is it pos-sible to admire so many different subterra-nean karst wonders in a single cave system. Nowhere else but in Postojna where, for 140 years, visitors have been able to take a ride on a special cave train which takes you under the magnificent underground arches and through the amazing landscape dotted with playful limestone sculptures. Postojna Cave is also the cradle of a special branch of biology – speleobiology. The best know cave animal is the Proteus (also known as the olm), a pale and highly unusual creature which can grow up to 30 centimetres in length, is completely blind and lives in the subterranean world for up to an incredible 100 years. www.postojnska-jama.eu.


Underworld train

Meet the baby dragons

Park Postojnska

jaMa

Guinness World record Holder

www.postojnska-jama.eu

Admire the splendours of the largest show cave in Europe aboard the unique cave train.

Visit the Queen of all Caves

POSTOJNSKA JAMACAVE-GROTTA-HÖHLE

POSTOJNSKA JAMA, d.d.

Jamska cesta 30, 6230 Postojna, Slovenija, T +386 (0)5 / 7000 100, F +386 (0)5 / 7000 130, E [email protected], www.postojnska-jama.si

Maticna številka / Registration No: 5004365, ID št. za DDV / ID No for VAT: SI 50223054, Reg. pri Okrožnem sodišcu Koper / Reg. at District Court in Koper, številka reg. vl. /file No: 1/01263/00Osnovni kapital / Total Capital Stock: 1.395.639,29 EUR, IBAN SI56 1010 0002 9043 444 Banka Koper, SWIFT BAKOSI2X, IBAN SI56 0510 0801 2621 826 ABANKA VIPA, SWIFT ABANSI2


Culture & Events

Welcome to Festive Ljubljana!

December in Ljubljana 2015Smiling faces, warm handshakes and good wishes, the scent of mulled wine and roasted almonds, nostalgic organ-grinders on street corners, sparkling eyes of children full of the expectation of festive magic − all this and more is December in Ljubljana. The city is dressed with magical Christmas lights, attracting visitors from near and far, and a diverse program of events, slightly different each year, is held in the streets and squares across the city centre to further contribute to the festive atmosphere. This year’s addition to the city’s Christmas attractions is the interactive art installation, Moonolith, a unique monument to the moon and stars allowing you to move constellations with your body movements.

December in Ljubljana is magical. Make sure not to miss it.

Fairs

FestiveFair(27 November 2015 – 3 January 2016)Each year in December, Ljubljana’s Festive Fair becomes the centre of the city’s social life.

The fair, set up in the immediate vicinity of a major open-air venue for festive events held daily throughout December, is well known for its vibrancy and cheerful atmosphere. Festively decorated green stalls, designed especially for the fair, sell a good choice of products suitable for giving as gifts.

For many years now, the Festive Fair, with its numerous food and drink stalls offering mulled wine, tea, liqueurs, sausages, and vari-ous grilled dishes, has been considered to be a major venue for what the locals refer to as ‘the merry December in Ljubljana Old Town’ and see as the perfect opportunity to bump into friends and acquaintances whom they may not have seen for a while.

Not far from the Festive Fair, in front of Zois Palace on the Breg embankment, you will find a life-size Straw Christmas Crib created by local artist, Anton Kravanja.

Photos: Nik Rovan01


Culture & Events

In Slovenia, the nativity scene was original-ly set up only in churches, but later, Christian believers took the tradition into their homes and made it a custom to set up a Christmas crib in commemoration of the birth of Christ each year during the festive season, a time of peace.

St.NicholasFair(3 December – 6 December 2015) Festively decorated stalls at the St. Nicholas Fair will offer various goods suitable for giving as traditional St. Nicholas gifts.

The Slovenian tradition of St. Nicholas bringing presents to children on the eve of his name day, 6 December, was first mentioned in 1839 and it continues to be a popular part of Slovenian folklore today.

Children’s EventsMagicalForest(3 December – 24 December 2015)In the Magical Forest, set up in Kongresni trg, children will be able to take part in creative workshops and make festive decorations and gifts for their loved ones. On weekends, the Magical Forest will host puppet shows, story hours and improvisational theatre perfor-mances.

St.NicholasProcession(5 December 2015)St. Nicholas will be accompanied by devils and an assembly of angels, who will be giving away

biscuits, fruits, and sweets to children. Accord-ing to Slovenian tradition, angels bring gifts to good children, while devils scare the naughty ones.

TheGoodFairy(14 December – 23 December 2015)In the square in front of the Town Hall, the Good Fairy will be fulfilling the wishes of any-one approaching her, whether good or naughty, big or small, young or elderly. The Good Fairy project was created by the painter, Zmago Modic.

GrandpaFrostProcessions(26 December – 30 December 2015)A few days before the New Year, Grandpa Frost, the Slovenian counterpart of Santa Claus, will arrive in Ljubljana from the Far North. Riding in his carriage, drawn by genuine white Lipiz-zaner horses and accompanied by a procession of snowmen, bears, rabbits, and other creatures from folk and fairy tales, Grandpa Frost will visit the Festive Fair and appear at children’s events.

Children’sNewYear’sEvecelebration(31 December 2015)In order to create a magical and unforgettable New Year’s Eve experience for children, the children’s New Year’s Eve celebration, held in Kongresni trg at 16.00, will feature popular festive characters, children’s performances and the arrival of Grandpa Frost.

New This YearMartinBriceljBaraga:Moonolith(3 December 2015 – 3 January 2016)The interactive art installation, Moonolith, a unique monument to the moon and stars, is the latest addition to Ljubljana’s creative Christmas display, which has traditionally been themed on the universe. As you approach the Moonolith, you can move constellations with your body movements.

The Moonolith installation will be open to interaction from 17.00 – 21.00 daily.

A daily program of accompanying art events will be held next to the Moonolith and will include creative workshops themed on technol-ogy, light, and the universe.

New Year’s Eve CelebrationsLjubljana’s open-air New Year’s Eve celebra-tions, beginning at 21.00, will be held in sev-eral city centre locations.

The New Year’s Eve celebration in Kon-gresni trg is for people of all ages and tastes. Line-up: Muff, Tabu, Učiteljice.

A perfect place for those wanting to await the New Year to the accompaniment of pop, pop-opera crossover and rock classics will be Mestnitrg. Line-up: Samuel Lucas, Manca Izma-jlova, HELP! – A Beatles Tribute.

The program of New Year’s Eve concerts held in Pogačarjevtrg will feature pop and popular folk music. Line-up: Ansambel Petan, Face.

New Year’s Eve celebration in Trgfrancoskerevolucije will appeal to lovers of alternative rock, rockabilly, and rap music. Line-up: Baby Blue Gun, Koala Voice, N’toko, Klemen Klemen, 8 Bomb.

At midnight, the skies above Ljubljana will be set alight by a fireworksdisplay launched from the castle hill to announce the beginning of a new year.

There is also much more to December in Ljubljana. Throughout the month, you will be able to enjoy a program of music played in the city’s public squares, open-air choir concerts and street theatre shows held in different historical city centre locations. For a detailed program of events, visit www.visitljubljana.com.

01-03 The City of Ljubljana is dressed with magical Christmas lights in the Festive December period.

04 Zoran Janković, Mayor of the City of Ljubljana, at the opening ceremony of the Festive December.

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Ljubljana is proud to be EuropeanGreenCapital2016! This prestigious title from the European Commission is a great honour and the highest recognition of our efforts to reach the primary goal of ensuring a high quality of life for our citizens in a beautiful and healthy environment. Ljubljana is for now the only European Green Capital in central and south-east Europe and is a city of friendly people who take care of Ljubljana to remain a hospitable, green and healthy place for future generations.#ljforyouwww.greenljubljana.com


Sport

Ski jumping

Prevc opens the season with a second placeIn November, Slovenian ski jumping star, Peter Prevc, opened the World Cup season in the individual competition by taking second place at the meet in Germany’s Klingenthal. Three Slovenians finished among the top ten.

Peter Prevc jumped of 139m and 138m for a score of 265.6 points to finish behind Andre Daniel Tande of Norway, who scored 268.7 points with jumps of 142m and 140.5m. Third place went to last year’s overall winner, Severin Freund, who achieved 249.5 points. Two other Slovenians finished among the top ten: Domen Prevc was eighth with a combined score of 243.2 points and Jurij Tepeš was tenth with 232.5 points.

Skiing:

Ski resorts move to a single ticket for the new seasonMajor ski resorts in Slovenia have moved to a single ticket system that is set to appeal to both domestic and foreign visitors ahead of the start of the new season.

The ski resorts will be emerging out of what has been a successful summer season for many, with a record numbers of hikers and lovers of alpine air. But without major investment in infrastructure for the ski season, the main draw this winter will be a single ticket for non-season holders, accord-ing to the Head of the Association of Slovenian Ski Lift Operators, Ernest Kovač.

For the first time, all major Slovenian ski resorts will be included in the system, which will include annual and multi-day ticket options. "I think the greatest success is the shift to marketing Slovenia as a single ski destination," said the Head of the Chamber of Mountain Ski Centres, Marjan Čuk.

All the major resorts - Kranjska Gora, Krvavec, Vogel, Pohorje, Rogla, Golte and Cerkno - are said to have everything ready for the start of operations, the only exception being Kanin where efforts are still underway to prepare the ski lifts which have been idle for two years. After being taken over by the Bovec municipality and receiving a state bailout, the hope is that Slovenia’s highest-altitude ski resort, nestled in the heart of the Julian Alps, will be able to welcome visitors during the upcoming winter.

Sailing:

Žbogar wins bronze in the Finn World ChampionshipIn November, Slovenia’s best sailor, Vasilij Žbogar, won a bronze medal at the Finn Class World Championship in New Zealand, finishing sixth in the last regatta for the ten best sailors to score 112 points. Žbogar was behind Giles Scott of the UK and Jonathan Lobert of France.

"I’m very happy with this third place. I have waited for 12 years for it and now finally I have it. A lot of hard work has been invested, I was fourth, fifth or sixth many times, never making it among the top three," the 40 year old told reporters after the final race. This was Žbogar’s first medal at a World Championship in any category, includ-ing lasers in which he won Olympic silver and bronze medals in Beijing in 2008 and in Ath-ens in 2004, respectively.

The Slovenian has already secured his ap-pearance at the Summer Olympics in Rio in 2016. "Now the road to Rio will be much easier, this result gives me and my team additional motivation. The season has ended phenomenally, but there will be no time to rest. Hard work awaits us in prepara-tion for the Olympics," he said.

Peter Prevc; Photo: Stanko Gruden/STA

Vasilij Žbogar; Photo: Dejan Mijović/STA


Sport

Climbing:

Mina Markovič continues her dominant run in the Climbing World CupIn November, Slovenia’s Mina Markovič continued to dominate the IFSC Climbing World Cup , recently winning the title in the women’s lead competition, her third title in the discipline in the last five years.

The 27-year-old, from Ptuj, won the World Cup season finale in Slovenia’s Kranj to reclaim the title she also won in 2011 and 2012. Markovič finished second in 2013 and 2014 behind Kim Ya-in of South Korea. The Slovenian took gold with a narrow margin in front of Jessica Pilz of Austria, who posted the same score but placed second on a countback, and her compatriot, Janja Garnbret. "It was a phenomenal end to the season," Markovič told the press after the win.

Markovič is by far the most successful Slo-venian sport climber, having also won gold in the 2013 World Games in Colombia’s Cali and three medals at the European Championships (two silvers and one bronze), including one in bouldering. "This is definitely a nice collection. The fact that I was first or second in the last six seasons is phenomenal and it is really hard to believe. It is definitely nice to look back at it," she said.

Basketball:

Udrih joins Dragic at Miami HeatThe best Slovenian basketball player, Goran Dragić, will be joined at Miami Heat by his fellow countryman, Beno Udrih, as the veteran point guard has been traded by the Memphis Grizzlies to the Florida team.

In a four-player trade between Miami and Memphis, the Heat sent guard Mario Chalmers and forward James Ennis to the Grizzlies for Udrih and forward Jarnell Stokes, according to the US sports network, ESPN. The 33-year-old Udrih, who has won two NBA Championships with the San Antonio Spurs, is playing his twelfth season in the NBA. He has played a total of 756 games in the world’s best basketball league, averaging 8.7 points and 3.5 assists per game. Udrih was welcomed by Heat President Pat Riley, who said the Slovenian was "an accomplished veteran and someone that has playoff and championship experience". Dragić, meanwhile, will play his first full season with the Heat after signing a five-year, USD 90m deal.

Football:

Slovenia drops 18 spots in the latest FIFA rankingsAccording to the latest FIFA rankings (November 2015), the Slovenian national football team lost 18 spots in the rankings of the International Federation of Association Football (FIFA) and is currently 64th, the country’s lowest ranking in eight years.

Ukraine, Slovenia’s opponent in the upcoming playoffs for the 2016 European Football Cham-pionship, has lost four spots to rank 28th. Slovenia’s drop is the fifth biggest slide in the latest FIFA rankings, trailing only Sudan (44 spots), Armenia (36), the Dominican Republic (30) and Moldavia (22).

Major changes also took place at the top, with Belgium taking the first place for the first time in the nation’s history. Germany remained second, while the previously leading Argentina dropped to third.

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Mina Markovič; Photo: Stanko Gruden/STA

Slovenian Football Team; Photo: Stanko Gruden/STA


Sport

Slovenia, a great country for a winter escape

prepared by Tomaž Kučan

When low temperatures and the first snowflakes announce the winter, we experience different feelings. The most important are those that are positive

and beneficial such as thoughts about spending time in the nature and the company of friends and loved ones. It is important that the time we take

off is relaxing and spent well to reduce stress and have a positive impact on health and many other factors. Therefore, sometimes we just need a vacation!

Slovenia, due to its excellent geographical location, has many possibilities in winter to spend on outdoor activities.

Vogel: for inner peace or adrenalin

The majority of Slovenian ski resorts, including Vogel, have numerous and well-kept trails for skiers and snowboarders, however the depth of the snow blanket at Vogel is something special. Vogel has a special charm because of the view of Triglav and its unique access by gondola up to the resort 1500 m above sea level. There are many very special experiences on Vogel including organised hikes with torches, mysti-cal hikes at the full moon and romantic walks at sunset. Vogel is the perfect destination for all kinds of adrenaline addicts, you can try out winter paragliding, ski touring, snow rafting and airboarding.

www.vogel.si

Holidays on KrvavecOnly 25km from Ljubljana and 8km from Lju-bljana Airport, Krvavec offers many activities for spending free time in the nature, from the end of November through to the spring. The ski resort has well-maintained ski trails at an alti-tude of 1450m to 1971m above sea level, which assures excellent conditions for skiing on natu-ral snow. Lines for snowboarders and skiers are

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Sport

suitable for both beginners as well as for good skiers. If you want to jump on different kinds of objects, you can try the Krvavec Snow Park or the children’s park. If you would like to try the slopes, then do not miss the Giant Slalom at Krvavec, which is open daily. Fridays and Saturdays at Krvavec are reserved for lovers of night sledding!

www.rtc-krvavec.si

Family RoglaThe winter centre in Styria can boast of more than a hundred ski days due to its high altitude and one of the most regulated and sophisti-cated polygons for snowboarders and freestyle skiers. In addition to the excellent trails for cross-country skiing and cardiovascular exer-cise - snowshoeing, Rogla offers many winter sporting activities for children. A special coun-try for kids is placed behind seven mountains

and seven waters where kids can have fun. They cook, create, read and become familiar with the basics of winter sports. In addition to its good childcare, Rogla has nice sporting parks and is well-equipped with a Wellness Centre offer at Planja and Natura Centre.

www.rogla.eu

Try Biathlon at PokljukaPokljuka has a long-standing reputation as one of the most recognisable ski resorts for cross country skiing, not only in Slovenia but also the world. In addition to a team-break to improve business performance or coach-ing at Pokljuka, there are very popular night walks in nature with torches and snowshoeing across the snow. From 17 - 20 December 2015, Pokljuka will host the Biathlon World Cup. The winter season in Pokljuka begins at the end of November when you can try biathlon with all

its components; shooting and running, accom-panied by instructors. This is the place for the true sporting enthusiast!

www.center-pokljuka.si

In the company of World Champions at Kranjska Gora and PlanicaSki runs, jumps and good food are the reasons for many to go back to the alpine village of Kranjska Gora and its surroundings. Pistes, ranging from Planica, Podkoren and Vitranc, offer a wide range of difficulty for all types of skiers. In Kranjska Gora, you can try every-thing, which can be tried in the winter idyll; from ice climbing to a number of starting points for ski touring, you can also visit an ig-loo village or a walk in the unspoiled nature of Triglav National Park. Aside from all the winter fun and activities on offer, Kranjska Gora and the completely renovated Planica come into their own, when on 16 and 17 January 2016, they host the FIS World Cup course for cross-country skiing and then the ski jumping finals between 18 and 20 March 2016.

www.kranjska-gora.siwww.planica.si

01 Vogel Ski Resort; Photo: Tinkara Zupan/STA02 Kranjska Gora, Winter; Archive LTO Kranjska Gora03 Krvavec; Photo: Tinkara Zupan/STA04 Biathlon World Cup at Pokljuka; Photo: Stanko Gruden/

STA05 Planica; Photo: Aljoša Rehar/STA

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Gymnastics Centre LjubljanaGymnastics Centre Ljubljana opened its doors in late November. A modern gymnastics facility, where athletes now have excellent conditions for work, at the same time represents an excellent springboard for the further development of all forms of gymnastics in Slovenia.

In the ground floor of the centre there are two halls, one is intended for sport and another for rhythmic gymnastics. The centre also includes a hall for aerobics and fitness, gym space for the youngest gymnasts, accommodation facili-ties and a sauna.

The modern sporting facility welcomed for-mer top gymnasts Miro Cerar, Aljaž Pegan and Mitja Petkovšek, who have endeavored for many years to build a capacity that enables high-quality gymnastic exercises. The hall is now here and their successors will train in a modern premises which will certainly be ad-ditional motivation to achieve success at the highest levels of competition.

The construction of the Gymnastics Centre Ljubljana was partially financed by the Euro-pean Union, through the European Regional Development Fund, with the remaining funds provided by the Municipality of Ljubljana, Ljubljana Sport and Leisure Facilities and the Sports Foundation. The total investment was approximately EUR 11m and the facility is managed by Ljubljana Sport and Leisure Facili-ties.

Source: Sport Ljubljana

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the slovenia times winter edition 2015

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