Despite its small size, Slovenia may flatter itself for having weathered the storm of the financial and economic crises. The country’s orientation towards the outside world is seen in its busy international trade and a number of international agreements signed. The European Union is Slovenia’s leading trade partner and exports to the countries of south-east Europe are significant. Legislation favourable in supporting FDI with incentives for the manufacturing industry, selected services and research and development is in line with the European Union.
Foreign investment has benefited the modernisation of Slovenia’s economy making its businesses prepared to take on competitors in the sectors that range from pharmacy and the environment to electronics and information technology. Tourist infrastructures would also benefit from fresh capital as Slovenia starts to enhance its sites more effectively and puts new water treatment stations and refuse management facilities along with other infrastructure high on its list of priorities.
The state has made opportunities for investors more even attractive by reducing the weight of its civil service. The privatisation programme continues so as to best prepare for its OECD membership this spring, including the liberalisation of the last sectors preciously closed to foreign investment. The recent crisis has slashed inflation but fuelled the budget deficit, the balance of trade is improving and high unemployment is starting to shrink. Slovenian labour is qualified and flexible and there is also a pool of efficacious migrant workforce for large projects. A long tradition of trade with the countries in the region and with Arab states has many advantages Slovenian companies and their foreign business partners can profit from.
In 2010, pressures to become more efficient are redefining both government and corporate strategies and adding to investment activity. The Slovenian government has adopted a combination of economic policy measures, structural reforms and institutional reform in line with commitment to tackle the country’s deficit and give impetus to economic growth without threatening price stability. By curbing public spending to the national development priorities: entrepreneurship, flexicurity and social cohesion, and transport and energy infrastructure, the budget deficit should fall to 1.6 percent of GDP in 2013. The government is set on the implementation of the reforms to range from the labour market the employment relationships, social security arrangements to rising the retirement age and introducing defined-contribution pension schemes. Commitment to increase the administrative capacity of Slovenia’s institutions includes setting up an agency for management of state property and overhaul of KAD and SOD, the two para-governmental funds. Since the Republic of Slovenia has equity holdings in a number of enterprises potentially interesting for foreign investors, majority of these holdings will be put up for sale in line with the promise made by the government to withdraw from supervisory boards of enterprises acquired during the transition period.
After inviting tenders for the purchase of the biggest national retailer and the high-end sea-side hotels, DARS, the motorway company, will be on the selling block for partial privatisation. The establishment of an agency for public procurement and giving more power to the “guardians” of competition and consumers by blending the two functions into an independent agency is certainly good news for potential foreign investors and contractors.
JAPTI’s role
Slovenia’s economic well-being is largely attributable to foreign investment and despite current global economic uncertainties, support to foreign investors remains unshaken.
JAPTI has highly qualified and committed staff to respond to the business needs of potential and existing foreign investors by developing a lasting relationship. The Slovenian network of embassies and representative offices of the Slovenian economy facilitate the two-way exchange of information and provide contacts with the right people and competent authorities in Slovenia and abroad.
Excellent, highly professional service throughout the investment process is what foreign investors and buyers can expect from JAPTI’s people being always ready to provide fast, high quality information and advice, benchmarking Slovenia offer against other locations to help investors with their decision-making process.
JAPTI’s after-care service means that JAPTI’s experts will listen to their clients’ evolving requirements and tailor the services and support to their needs in effort to remain their location of choice.
As your long term partner, JAPTI will continue to improve Slovenia’s competitive position, going for growth and making adjustments where they are needed, so that you can remain confident about building your future success as investors in Slovenia.
For more information tel: +386 (0) 1 5891 870; e-mail: fdi@japti.si; www.InvestSlovenia.org
