Slovenia Times October 2012 by Slovenia Times

The Slovenia Times, Slovenian Magazine in English Language, volume 9, number 154, EUR 4.80

October 2012

On the Road to Recovery or Self Destruction?

REN

U D

FDI Summit Slovenia 2012 Report

CONTENTS 3

October 2012 POLITICS 6 6

Editorial: Mental Bailout Change to Referendum Rules Finally?

European Union

8 10

Slovenia Must Sort out Public Finances Slovenia is too Pessimistic

13 14 16

ECONOMY

20 25 26 28 30

100 95

75 100

We Must be Persistent Budgets 2013, 2014 Adopted Interview: Andreas Ptacek, General Manager, BMW Group Slovenia Interview: Klaus Scheitegel, M. Sc., GRAWE zavarovalnica, d. d.

FDI SUMMIT SLOVENIA 2012 Time for Immediate Action and Optimism Interviews: Ren Hongbin, Executive Vice President of CAITEC Ralph Martens, Head of the Supervisory Board, Ring International Holding Donald L. Plusquellic, Mayor of Akron, USA Rudolf Klötscher, Executive Vice President Eastern Europe, BSH Bosch and Siemens Home Appliance Group Randy Galm, VP EMEA Nuclear Power Plant Business and Project Development, Westinghouse Electric Company

COMPANY NEWS

DIPLOMATIC SOCIETY

LIFESTYLE

36 38

Dine with Style: Valvas’or Restaurant Experience: Plaza Hotel Ljubljana

CULTURE & EVENTS

The Event Guide

SPORT

95 25 75 5 0

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

Business Partners

Gen-I Enters the Gas Market

Embassy Diaries

Interview: Jaka Blažič, Union Olimpija Every Picture Tells a Story October 2012

PANORAMA

source: STA, Slovenian Press Agency

Scan the code to browse the daily news at the Slovenia Times web portal

Nuclear Energy

Succession of Former Yugoslavia

Krško Amongst Safest N-Plants in Europe

Slovenia, Croatia Resolving Open LB Issues

Stress tests conducted by the European Commission on 145 nuclear reactors in Europe have shown Slovenia’s sole nuclear plant in Krško (NEK) is amongst the safest in the bloc. In a preliminary version of a security chart in the Commission’s report, the Krško plant, active since 1981, was the only one not to receive security recommendations. The warnings finally issued to NEK included the need to secure all measures for the prevention of the explosion of hydrogen and other combustible gases in the case of serious accident, to upgrade its filter ventilation system to prevent the spread of radioactivity and to upgrade earthquake safety. The plant was however also commended for a number of good practices, including already having in place diesel generators to deal with power cuts or serious accidents. The Head of the Slovenian Nuclear Safety Administration, Andrej Stritar, said he was happy with the result, which was even more favourable than expected. The safety administration and staff at the plant have been working hard; they however did not imagine they were the best in Europe, Stritar added, while announcing that focused and thorough work would also continue in the future. He explained that additional effort was invested in NEK after the Fukushima accident - which also prompted the EU study. A plan of investment and improvements to 2016 was adopted, with the tests showing that the Krško plant

Photo: BOBO

Closer to a final solution

Slovenia’s former Central Bank Governor, France Arhar and Croatia’s former Central Bank Deputy Governor, Zdravko Rogić, tasked with resolving the issue of Croatian savings deposits with the defunct LB bank, agreed that the two countries ask the Bank for International Settlements in Basel (BIS) for help in resolving the issue. The pair propose that Slovenia and Croatia send a letter to BIS, asking it for help in solving the LB issue in accordance with the 2001 Succession Agreement of the former Yugoslavia. Croatia proposed the issue be settled under BIS sponsorship, which Slovenia welcomed. Regarding the lawsuits of two Croatian commercial banks against LB and its offshoot, Slovenia’s biggest bank NLB which Slovenian Foreign Minister, Karl Erjavec, said were the last obstacle to the closure of the issue, Arhar said they were not new; “one of them dates back to 1995”. “These lawsuits per se cannot obstruct the process of finding a solution because it is logical that once an agreement is reached between the countries these processes will automatically end,” he said after the twohour meeting in Bled. Erjavec said that Croatia needed to withdraw its support of these lawsuits against Slovenia if talks would be held at BIS. Rogić pointed out that he and Arhar were striving to find a solution. “Withdrawing the lawsuits or support to the suits is an option but not the only option and it would be bad if it were.” Arhar and Rogić also said today they were ready to go to Basel and discuss the issue with the bank’s management and then invite other successors of the former Yugoslavia to join the talks in a bid to find a solution to the problem which was not solved by the 2001 Succession Agreement.

History

First Fascism Victims Remembered

The safest nuclear plant in Europe

is on the right path. NEK Director, Stane Rožman, said he was happy that the existing solutions are already adequate for facing the most improbable or hypothetical natural disaster scenarios. He added that the management has a clear idea on how the plant will be upgraded over the next five years. The Commission report, which provides the first comprehensive security review for the reactors active in 14 EU member states, established that all plants met high standards and none needed to be closed. However improvements, costing up to EUR 25bn, will be necessary in the coming years, the report adds.

A plaque honouring four members of the TIGR resistance group, who were executed outside Basovizza in 1930 and are considered the first Slovenian victims of Italian Fascism, was unveiled in Ljubljana. A ceremony marking TIGR’s 85th anniversary was held at the Cankarjev dom congress centre. The plaque is set on the exact spot where a memorial plaque for the Basovizza victims stood between 1931 and 1942 before it was removed by the Italian occupying forces. The original plaque was placed by students from Trieste, Istra, Gorizia and Rijeka. The initiative for the new plaque, which will carry the same message as the original, came from the Slovenian Emigrants Society, the TIGR Veterans Association and the committee organising an annual remembrance ceremony in Basovizza. The memorial will be unveiled by Marjan Bevk, the President of TIGR and head of the Basovizza committee, Milan Pahor. TIGR the name is an acronym for Trieste, Istra, Gorizia and Rijeka - was established in August 1927 by Slovenian patriots from the western region of Primorsko, which came under Italian rule after WWI in accordance with the Rapallo Treaty of 1920 between Germany and Soviet Russia. The resistance organisation, which ceased activities in 1941, was a response to the antiSlovenian and anti-Croatian attacks in present day Primorsko (Slovenia) and Istra (Croatia), representing the liberal, radical part of the resistance against the fascists Editor-in-chief Tilen Majnardi tilen@solutia.si

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Front page by Maja Kaplan

UNDER THE PRESS Ski Jumping

Planica Returns to the World Elite

Photo: Mediaspeed

Nearly eleven years after the giant hill named after engineer Stanko Bloudek (1890-1959) collapsed, a twin hill was inaugurated in the Planica valley in an event that attracted 7,500 spectators. Slovenia’s best ski jumper who retired last year, Primož Peterka, simultaneously set off down the run of the smaller of the two hills with Aleš Hlebanja on the giant hill. On landing they broke a ribbon, presenting it to the three ministers responsible for sport since the renovation project started. The event included the national championships for male and female jumpers, which opened with a training and a test series. Peterka, who bagged two Crystal Globes for overall World Cup wins before retiring last year at the age of 32, was happy with the opening: “The facilities are great...I enjoyed it, remembering all those feelings from 14 years ago when I was in top form.” The twin hill is the first step toward a modern nordic centre to be completed in the Planica valley by 2014. The centre will feature nine jumping hills and a cross-country skiing centre with one kilometre of covered track that will be open throughout the year. Bloudek’s giant hill, the construction of which was begun by engineer Stane Rožman but was completed by Bloudek in 1934, went down in history as the place where Austrian jumper, Sepp Bradl, became the first man in history to exceed the 100-metre mark when he jumped 101 metres on 19 March 1936.

“Slovenians are too pessimistic given the situation in some other EU countries. The true problems lie elsewhere in Europe; Slovenia has “imported” the crisis and not the other way around”. Janusz Lewandowski, European Commissioner for Financial Programming and Budget (STA)

“Politics is my love - huge, perfect... People who are at this moment deeply in love know how wonderful and painful that is. If I’m not elected, it will mean that politics left me, it will be unhappy love and I will be forced to look for consolation elsewhere”. Borut Pahor, former PM and Presidential Candidate (HRT, Croatian Television)

“The most peaceful countries are usually producing the worst weapons”. Igor Vučič, War Cameraman (Primorske novice)

Tourism “We have, in the past, repeatedly proven that we are real masters of creative accounting which is proven by the various creative operations in public finances”.

Igor Šoltes, President of the Court of Audit of The Republic of Slovenia (TV Slovenija)

Culture

Writers Association Marks 140th Anniversary Photo: BOBO

The Slovenian Writers’ Association (DSP) is marking its 140th anniversary. From the original 52 members at the first general assembly in 1872, the Association has grown to 349 writers and poets in 2012, 99 of whom are female authors. Although the idea to connect Slovenian writers was some ten years older, the Association was officially set up on Davorin Trstenjak’s initiative in 1872. However, its activities soon died due to diverging world views. Since then, the authors association has worked in many forms and under a number of names. It was renamed to its current name in 1968. When the Slovenian territory was occupied during WWII, many writers moved underground where they took an active part in the resistance movement, incumbent President, Veno Taufer, stressed, adding that the Association was restored after the war when it became part of the Yugoslav Authors Association. The association of Slovenian authors organised an International PEN congress in Bled for the first time in 1965 and International PEN meetings at the lakeside resort have since become a tradition. The DSP started engaging more actively in the social life and politics in the early 1980s, fighting for freedom of expression. According to Taufer, the Association’s role and efforts in Slovenia’s independence struggle, which started in the late 1980s, was its most important.

“If there are no negotiations, there can only be conflict but apparently the government is doing everything so that in this country there are conflicts”. Branimir Štrukelj, Chief Public Sector Unionist (TV Slovenija)

“Nevertheless, the government must respect its commitments in order to keep the budget deficit below 3% of GDP. Respecting this commitment is crucial for maintaining the country’s credibility”. Janez Šušteršič, Finance Minister (STA) October 2012

A WORD FROM THE EDITOR 6 POLITICS

Constitutional Changes

In recent weeks, the days were very by Tilen Majnardi typical for the state of mind in Slovenia which is stuck. Firstly we saw aggressive (the opposition would say too aggressive and completely wrong) steps by the Government toward the stabilisation of the banking sector and public finances with the adoption by the parliament of the “Bad Bank” Law and a centralised system for managing state owned assets and also the 2013 and 2014 budget proposal by the government. For a brief moment even the EU thought that we would break the deadlock. What happened next is typical Slovenian political folklore that should be patented in Brussels: our “wannabe” upper chamber of parliament, the National Assembly, immediately vetoed both of the adopted laws for stabilising the banking system and reorganising the management of state owned assets. The main reason: the Government allegedly wants to sell everything in the country without parliamentary approval. How will they be able to achieve this “undercover operation” in front of the entire Slovenian population and Europe was not explained, but it is important that we have a new political show and that the national council once again showed its “independence” and has its own place in the sun and therefore should not be terminated as suggested by some in the government. To be on the safe side and to ensure that the laws would not be “accidentally” implemented despite the veto, the Union of Energy Workers filed signatures to begin referendum proceedings on the Act for the Slovenia Sovereign Holding which would manage the state owned assets. This was then followed by the Union of Chemical, Non-Metal and Rubber Industries of Slovenia (KNG) announcing a few days later that it had collected more than the 2,500 signatures needed to launch referendum proceedings on the Act which would pave the way for a state-owned bad bank. KNG is opposing a “Bad Bank” Act because the trade union wants to hear from the government what its plans are for the chemical industry (?). European leaders can now just hold their breath and observe this traditional Slovenian democracy at work. In the meantime, they can start collecting some EUR 4bn which may be the cost of the “Slovenian Bill of Political Immaturity”. As the cherry on the pie, the announcement was made by the public sector unions that they will not support pension and labour market reform if the government will adopt further reductions in salaries of the public sector inside the proposed budget for the next year. And all despite the fact that it is very clear to everybody that Slovenia has limited access to financial markets and it´s not even clear whether we are able to finance the 3% budget deficit which will still exist following the “unacceptable” and “excessive” austerity measures. We can definitely not overlook the fact that the government bears a significant portion of the responsibility because of their stubborn insistence on their rights and their inability to listen to any proposal from the opposition or experts from outside the government. Combined together, we have the perfect ingredients for a well-known Greek scenario which even the notoriously calming Finance Minister will not be able to prevent. The fact is that Slovenian society is, for now, just not prepared to acknowledge that we were living well above our real capacity in previous years. We are not prepared to pay higher taxes, to reorganise the public sector, to change our lifestyle. This has also a lot to do with the low or zero credibility of the politicians who preach about the necessary changes, but still this sad fact does not change anything. Sooner or later we will have to recognise that the current situation is not a crisis anymore but the new reality that we must adapt to. Past development and political patterns will not bring new development. Blindly following the advice of increasingly archaic and clueless European bureaucrats and global “financial experts” also wont.

Change to Referendum Rules Finally? The parliamentary Constitution Commission proposed the National Assembly initiate constitutional changes designed to tighten referendum rules and appoint an expert committee to draw up an opinion on the proposed changes.

Photo: BOBO

Mental Bailout

35% minimum turnout required

No referendum on fiscal matters and human rights

The proposal, which was filed by MPs of DL, SDS, SD, SLS and DeSUS, would set a minimum 35% turnout for the outcome of a referendum to be valid and change the rules to call it. A referendum could only be called by 40,000 voters or a regular majority of MPs, while a third of MPs and the National Council would be stripped of the power. Another major change in the proposal is that referendums could no longer be held on legislation dealing with fiscal matters and human rights. The Constitution Commission, which also decided to hold a public presentation of opinions within one month, appointed Matej Avbelj, Janez Čebulj, Igor Kaučič, Janez Pogorelec, Ciril Ribičič, Lojze Ude and Tone Jerovšek to the expert commission charged with drawing up the opinion.

Will the political support be strong enough?

The decision that parliament should initiate the procedure for changing the Constitution was backed by all parliamentary parties except the junior coalition New Slovenia (NSi), which opposed the requirement for a minimum turnout. According to Matej Tonin, Head of

the NSi deputy group, “each referendum should count”. “Quorum will only encourage individuals to convince voters to stay at home,” he noted, adding that his party would file a bill that would tighten the terms for initiating referendum proceedings. The party proposes that the number of voter signatures needed to initiate proceedings for a referendum is raised from 2,500 to 10,000 and that the signatures be verified by the respective administrative unit. The opposition Positive Slovenia (PS) meanwhile does not agree with the provision that a referendum cannot be called on fiscal matters, while PS Deputy, Maša Kociper, noted that the party would also like to see the minimum turnout set higher. PS hopes that the amendments will be made to the proposal during the parliamentary procedure. While the junior coalition Citizens’ List (DL) stands firmly behind the proposal, stressing that referendums have often been used for political gain over recent years, Jože Tanko of the ruling Democrats (SDS) disagreed, noting that a referendum was a constitutional right. While the coalition People’s Party (SLS) also expressed some reservations over the validity threshold, no opposition was voiced by the opposition Social Democrats (SD) or the coalition Pensioners’ Party (DeSUS).

POLITICS 7

Opposition Leader Under Mounting Pressure

The End or New Political Power for Zoran Janković? Ljubljana Mayor and Positive Slovenia (PS) leader, Zoran Janković, rejected the possibility of resigning in the face of the corruption investigation against him. While he has received the support of his party and colleagues at the City Council, Acting Police Chief, Karol Turk, expects a criminal report against Janković will be filed.

Strong support from his party, Positive Slovenia

Janković met representatives from his party, the Ljubljana municipality and the headmasters of Ljubljana schools and kindergartens to present his view of the police operation related to suspected irregularities in the construction of the Stožice sports complex. Support for Janković amongst the 150 participants at the meeting was almost unanimous although Janković reportedly did not raise the possibility of resigning, which he had already previously rejected. “I feel there is absolutely no reason to think about that,” opposition Positive Slovenia MP, Zanoškar, told the press after

the meeting, noting that an investigation can also be triggered by a false complaint. Janković, who said he was suspected of abuse of office, malfeasance in office and fraud in obtaining of EU funds, argued that he had no problem with the investigation, as it would help to end speculation and media attacks against him.

Investigation has no political background – it started a long time before the current Government

Acting Police Commissioner, Karol Turk, who officially took over from Janko Goršek, begged to

differ saying that the findings so far suggest that criminal reports would be filed in the case. Interior Minister, Vinko Gorenak, denied that the police sting targeting Ljubljana Mayor Zoran Janković was politically motivated. “My role is to supervise, not to direct” the police, he said. However, he was quick to point out that he would insist on prosecuting crime. “The country has been kidnapped and robbed. I am the politician responsible for procedures to be launched”. It’s also widely known that the investigation has been underway for more than a year and started under the previous government of Borut Pahor, so a political background to the investigation is highly unlikely.

Mixed feelings in other political parties

While most parties were reserved in their response to the police operation which involved house searches at 23 locations, opposition SocDems President, Igor Lukšič, spoke of a structural problem involving people who made their career in business entering politics and “dragging behind them a tail from that world”. According to Lukšič, ethics in the business world, where priority is given to the interests of individuals, is different from ethics in politics, where one works for the common good.

Presidential Election

Former PM Pahor Innovative or Just too Unorthodox? The official presidential race started on 12 October but, in fact, the race has been on since the beginning of the summer. Apart from a dozen wannabes and less than serious candidates, it quickly became very clear that there will be only three “normal” candidates: Acting President Danilo Türk, former PM Borut Pahor and Member of the European Parliament Milan Zver.

The campaign would probably be very boring; with the current President exercising conservative and diplomatic tactics and Milan Zver acting as a moderate “centre right” candidate, if former PM Borut Pahor had not adopted some fresh tactics. He started his national campaign of voluntary work. By mid-October he had completed more than 200 voluntary hours, working as a garbage man, hairdresser, journalist, farmer, pizza man, a worker in different companies, book shops, a winegrower...... across Slovenia. His goal is to get to know all kinds of people, workers and jobs and on the basis of that knowledge prepare for proper

leadership if elected. As a candidate he wants to connect people from different political poles, this is the main “mantra” on which he expects he can gain voters from the left and right.

Photo: BOBO

Visiting every corner of Slovenia

Innovative political promotion or discrediting the role of the President of the Republic?

Feedback from the general public and PR experts in mixed. Some say that Borut Pahor has adopted innovative tactics that could enable him to get to the second round of the election. Others are more conservative saying that his campaign is an unacceptable discrediting of the basic function

Will voters reward unorthodox tactics?

of the President of the Republic. Latest polls however show that the basic question is whether incumbent President Türk can win in the first round. Much will depend upon the behaviour of the so-called “political centre” voters

and the turnout - maybe Pahor can pull an ace from his sleeve during the television debates in November, similarly to his success before the last elections when he literally saved the Social Democrats from total defeat. October 2012

8 EUROPEAN UNION

NEWS

source: STA, Slovenian Press Agency; European Commision; European Parliament

Photo: STA

ECB Governors Meeting in Slovenia

Slovenia Must Sort out Public Finances The Governing Council of the European Central Bank (ECB) met at Brdo pri Kranju in Slovenia. No major decisions were adopted. President Mario Draghi presented the details of his decision in September that the ECB will buy unlimited amounts of government bonds to help lower borrowing costs. The President of the ECB also met with Slovenian Prime Minister, Janez Janša. They discussed the situation in the eurozone and the measures Slovenia plans to implement before the end of the year.

“

Slovenia has the full potential to get out of these dangerous waters on its own, but in order to do that it must implement five measures,” said Janša, who met Draghi after a session of the ECB Governing Council. Elaborating on this, he said the country must sort out its public finances and lower its deficit, stabilise the banking system, seriously approach the restructuring of stateowned companies and pass the pension system and labour market reforms by the end of the year. He

noted that the government adopted proposals for the 2013 and 2014 budgets and sent them to the National Assembly and that the Act establishing a bad bank has been passed by the National Assembly. He refused to speculate on how much money the state will need to give for recapitalisation of stateowned banks next year, saying that “first the mechanism which was confirmed at the National Assembly must start operating and then when we clean up the balance sheets, we’ll see what the

Slovenia finally starting to tackle the urgent problems

actual situation is”. He added that the funds for a possible recapitalisation would need to be accessed through privatisation. The Slovenia State Holding was set up for the purpose of restructuring state-owned companies and “this is also an instrument which will enable further transparent privatisation of these assets”, he stated. “All five measures will definitely bring Slovenia into safe waters where it will be able to sail on its own, without fear that the crisis in Slo-

venia will continue”. ECB president Mario Draghi did not wish to comment on Slovenia’s situation today, but he did say that the ECB agreed with the assessment of the IMF on whether or not Slovenia will need international aid. Banka Slovenije Governor, Marko Kranjec, said earlier that Slovenia would not have to ask for international financial aid if it passed bold measures to stabilise public finances, reform the pension system and labour market and shore up its banking sector.

Help from EU Funds

Slovenia Wants to Introduce a Financial Transactions Tax

Slovenia Asks EU for Drought Relief

Slovenia plans to join a core group of EU countries in introducing a tax on financial transactions. The government unveiled the plan and the European Commission said it had already received a formal expression of interest from Slovenia. The government believes a tax on financial transactions would net EUR 50m in additional budget revenue, a much needed boost for public finances as the government strives to narrow the budget gap. The idea for the tax originates from Germany, which initially wanted a system covering the entire bloc but after fierce opposition, in particular from Great Britain, it decided to put together a core group of countries to implement the plan. In addition to Germany and France, Belgium, Portugal and Austria have so far officially requested to join the plan, which would be carried out as part of the so-called enhanced cooperation, but in order to proceed at least nine countries must be on board. Greece and Estonia are reportedly also interested in joining the scheme. Central Bank opposing a financial The government’s plan has been met with appretransaction tax hension in Slovenia. Banka Slovenije, the Central Bank, voiced opposition to the plan, saying the current economic situation was “inappropriate”. “There is a danger that the additional tax burden will be shifted over to users of financial services. The tax could also have a negative impact on the international competitiveness of Slovenian banks.” The Slovenian Investment Fund Association said the tax would have “a devastating impact on the industry”: since investment fund management in the EU is liberalised, the tax would lead to migration of the funds to other EU countries. The Slovenia Times

Slovenia has asked the European Commission for aid in alleviating the consequences of this year’s drought, requesting an advance payment of EUR 10m allocated for such purpose in EU funds. Preliminary estimates put the total damage caused by the drought at EUR 60m. Slovenia has applied for aid together with Hungary, Italy, Portugal and Bulgaria. The five countries are asking for the utilisation of measures available in cases of disturbances or exceptional circumstances on the market, for instance the advance payment of allocated aid funds or the use of funds from the solidarity fund. Slovenia is hoping to receive the EUR 10m in aid as early as October, meaning before December or January as envisaged. Hit hardest were sweet corn and pumpkin crops.

Photo: BOBO

Financial Transactions Taxation

Slovenia suffered damage of EUR 60m

EUROPEAN UNION 9 EU Regional Development Fund

EU Protected Geographical Status Labels

EU Wants Answers on Stožice Sports Complex

Pumpkin Seed Oil Gets EU Protected Status

The European Commission wants information following a police sting into suspected questionable deals in the construction of Ljubljana’s Stožice sports complex, which was partly funded by the EU. A spokesperson said that the Commission would immediately contact Slovenian authorities. Since the Stožice project received a EUR 9.4m subsidy, 85% of which came from the EU’s Regional Development Fund, the Commission will follow the developments in the investigation closely and respond accordingly, if needed, when the results are known said Shirin Wheeler, spokesperson for the Regional Policy Commissioner, Johannes Hahn. The police conducted a series of house searches at nine private addresses and 14 addresses in relation to Stožice. Police suspect abuse of office, fraud affecting the financial interests of European communities, malfeasance in office, money laundering, forgery or destruction of official documents and the accepting of gains in exchange for illegal mediation. EU payments for the project have been frozen this year for unrelated technical reasons and were resumed when the Commission’s doubts were cleared by Slovenian authorities. The construction of the sports complex had already been the target of much dispute and criticism, including accusations that the Education and Sport Ministry’s call for bids for EU co-funding was rigged in favour of the project. After a review of the situation, the Ministry, which denied rigging the public call, ordered the City of Ljubljana to return EUR 1.9m of the subsidy because of its faulty application in October 2011 however but the Administrative Court annulled the order in July 2012.

Was everything done by EU rules?

Štajersko prekmursko bučno olje (pumpkin seed oil of Štajersko and Prekmurje) was designated special geographical protection status. This is the fifteenth Slovenian food product to be registered with the European Commission. The traditional Štajersko prekmursko bučno olje is an unrefined, edible vegetable oil produced by pressing roasted top-quality pumpkin seeds without the use of additives. The oil can be from dark green to red in colour, has a characteristic aroma and taste and has a favourable fatty acids composition, the registration says. The registration process saw some opposition from Austria which, since 1996, already has EU geographical protection for pumpkin seed oil from its Staiermark region. Although Slovenia and Austria failed to reach agreement on the issue, the Commission registered the Slovenian oil, but the labels for the Slovenian oil will need to bear the country of origin next to the name to avoid confusion among consumers. A number of traditional Slovenian dishes have already received one of the three EU protected geographical status labels, whilst the kranjska klobasa sausage is still waiting to be granted protection. The list of registered products includes: Bovec, Nanos and Tolminc cheeses, kraški pršut prosciutto, extra virgin olive oil from the Istra region, forest honey from Kočevje, prleška tunka cured meat, belokranjska pogača bread, idrijski žlikrofi dumplings from Idrija, prekmurska gibanica pastry from Prekmurje.

Attractive prices for traveling in Europe With InterRail ticket for all generations to 30 countries!

October 2012

www.slo-zeleznice.si

10 EUROPEAN UNION

European Commissioner visits

Slovenia is too Pessimistic European Commissioner for Financial Programming and Budget, Janusz Lewandowski, said during a visit to Ljubljana that Slovenia will remain a net beneficiary of EU funds in the next Januzs Lewandowski: “True problems of the EU lie outside financial framework budget and labelled as realistic Slovenia’s Slovenia” wish to keep in place EU safety net funding for areas where the development level has exceeded 75% of the EU average. Lewandowski also touched on the general situation in Slovenia, saying that Slovenians are too pessimistic given the situation in some other EU countries. The true problems lie elsewhere in Europe he said, adding that Slovenia has “imported” the crisis and not the other way around.

Promise of growth, not only austerity

“Listening to decision makers here in Slovenia, I can say I am in full agreement on two fundamental issues: one is that we need a deal regarding the future as soon as possible - that is by the end of November - because it gives predictably for Europe and is a sign that even in crisis we can have agreement and compromise,” Lewandowski said during his visit to Slovenia. The second is that “the European budget should be seen in the context of a growth agenda for Europe. Europe needs a promise of growth and not only of austerity, because we have to regain the confidence of the younger generation, which is now very pessimistic regarding their prospects”. The Commissioner said he was already familiar with most Slovenian positions on the EU’s 20142020 financial framework, but that it was always good to hear what individual countries are sensitive too.

40% of public investment in

Slovenia co-financed by the EU

The Commission and Slovenia are allies when it comes to the fundamental budget questions, “because Slovenia, given its experiences, understands how important it is at the local, regional and municipal levels, cohesion funds are not only to finance projects but also to encourage authorities to plan for investments in times of money shortages”. He stressed that Slovenia had 40% of its public investment co-financed by EU funds. “This is the major source of funding in Europe where banks are no longer generous in credit activities, especially for local authorities and SMEs.” Regarding Slovenia’s wish to keep the EU safety net mechanism in place also for regions that have exceeded the development threshold - such as in the western part of Slovenia - Lewandowski said this was realistic, given that the Commission was supporting the safety net for countries and regions that are no longer eligible for full funding. The real issue is the less affluent eastern part of Slovenia,

which does not deserve a funding cut because Slovenia as a whole has exceeded 75% of average EU affluence.

EU Budget Proposal 2013 must be balanced, aiming for growth

Commenting on the potential impact, especially on cohesion funds, of demands by a group of influential countries that the Commission’s budget proposal be cut by at least 10%, he said the demands come in spite of already modest plans in the face of additional financing burdens, including for new member Croatia, and include “no agreement among them on what should be cut”. “I am fully defending our proposal, also as a balanced proposal. What would be in contradiction with political declarations by these same leaders of Europe that we need growth, job, competitiveness - would be to cut cohesion policy...the areas of the budget which are really about investment, growth and job oppor-

tunities.” He announced Slovenia would be a net beneficiary in the next EU financial framework, provided that it does not fail to make use of what is allocated to it. The latter scenario is however not likely, according to the Commissioner, who said that Slovenia is not perfect when it comes to the phasing of EU funds but is not among the problem countries in Europe, some of which need technical expertise. Turning to the prospect for reaching agreement on the 2014-2020 financial framework at the November EU summit, Lewandowski said there is “a commitment by political leaders to try”. He is happy about plans to hold a conclave style of summit that can be extended, “because Europe needs, as soon as possible, the good message that it has agreed on the investment horizon for 2020”. Regarding the possibility of the Commission fully defending its proposal, he said he would be very optimistic if times were normal. “Never has the environment for negotiations on the future of Europe... been so difficult.”

Animal Protection

Slovenia to Ban Ritual Slaughter The government endorsed changes to the Animal Protection Act which introduces a ban on ritual slaughter. If the motion is passed in parliament, slaughtering of animals without stunning, including ritual slaughter, will be banned. Under the current law, slaughter without stunning is already banned but the Veterinary Administration (VURS) has the option to issue special permits for ritual slaughter. However, VURS has never issued such a permit. Bans on ritual slaughter have been proposed or enacted in several European countries, but most were later removed. Although ostensibly introduced to protect animals, it has been argued that the purpose of the ban was to impose restrictions on the Muslim and Jewish religious communities. Members of the Brussels-based European Jewish Parliament (EJP) have already protested against Slovenia’s plan to The Slovenia Times

impose the ban. In a letter to Speaker Gregor Virant, EJP Joint President, Joel Rubinfeld, and Slovenian MP, Igor Vojtic, pointed out that ritual slaughter or shechita, is a crucial element of Jewish tradition and religion and EU friendly as such cannot be abolished by national law. slaughtering? The pair also warned that if the Slovenian parliament pass the changes, it would deny religious freedom to Jews in Slovenia and violate their basic human rights which was why a constitutional review of such legislation would be called for. The government official said the changes, which include several other measures aimed at protecting animals, had been drawn up based on an EU directive.

20th CEEMAN Annual Conference

Africa and CEE Learning from Each Other In two decades of dedicated work in the field of management education, CEEMAN decided to explore new frontiers and organise its 20th annual conference in South Africa - a rising star and the economic powerhouse of Africa. With its diversity of nature, cultures, languages and traditions, facing challenges and opportunities stemming from their massive economic and social transformation, the rainbow nation of Africa (as Archbishop Desmond Tutu once put it), represents a natural scene for dialogue about the business and educational challenges in dynamically changing environments. into a sustainable wealth-creating machine. Furthermore, she said that Africa and the world needs great leaders – in business, in the public and private sectors and in NGO’s that should be developed together in order to learn from each other. Only innovative, well-educated and dedicated leaders, which have to be nurtured at management education institutions, could move the countries into a better future.

CEEMAN Awards

Professor Danica Purg, President of CEEMAN and IEDC-Bled School of Management: “The 20th CEEMAN Annual Conference brings the possibility to gain, share and create knowledge about central issues that businesses, business schools, and societies at large are facing in a world that is becoming increasingly complex, and at the same time increasingly inter-related and interdependent.”

Prominent international speakers

From 26 - 28 September, in Cape Town, more than 100 deans and directors from distinguished business schools and universities from 32 countries (Europe, North and South America, Asia and Africa) as well as business and political leaders had the opportunity to address and discuss numerous issues about the future of management and leadership development . The 20th CEEMAN Annual

About CEEMAN CEEMAN is an international management development association with 210 members from 51 countries. With professional excellence as its aim, CEEMAN fosters the quality of management development and change processes through the development of education, research, consulting, information, networking support and other related services for management development institutions and corporations operating in dynamically changing environments.

www.ceeman.org

On the final day of the conference, the CEEMAN Champion Awards were officially announced, as well as the winners of the 18th CEEMAN Case Writing Competition, which was held in cooperation with Emerald Group Publishing. Among the winners of the CEEMAN Champion Awards was Nadya Zhexembayeva of the IEDC – Bled School of Management, Slovenia (co-winner in the category of Responsible Management Education). After the fruitful meeting in the rainbow nation of Africa, the next CEEMAN Annual Conference will be held in 2013 at IEDC – Bled School of Management, Slovenia.

Conference featured a number of prominent international speakers, such as Professor Chin Tiong Tan, Founding President of the Singapore Institute of Technology; Dr Vladimir Mau, Rector of the Presidential Academy of National Economy and Public Administration, Russia; and Professor Derek Abell, Founding President of ESMT- European School of Management and Technology, Germany. Among them were also a few prominent figures from South Africa – Dr Mamphela Aletta Ramphele, the Founder of the Citizens’ Movement; Sullivan O’Carroll, Chairman and Managing Director of Nestlé South Africa; Professor Nick Binedell, Dean of the Gordon Institute of Business Science; and Professor John Powell, Director of Stellenbosch University Graduate Business School (USB).

Lessons from Central and Eastern Europe

Dr Ramphele said that there is great potential for Africa to harness the lessons from Central and Eastern Europe and Latin America to transform its social and political reality by leveraging its huge assets including its mineral and natural resources and youthful population (according to McKinsey Report, Lions on the move: the progress and potential of African economies, by 2040, Africa will be home to one in five of the planet’s young people and will have the world’s largest working-age population),

Professor John Powell, Director of Stellenbosch University Graduate Business School (USB): “I’m glad to see CEEMAN having an influence way outside its original area of concern. There are huge similarities between Central Europe, Southern Africa, India and South America, as well as strong learning potential in all of these regions. I am genuinely excited that CEEMAN has been stepping up to a role of representing business schools from the emerging economies. There is no other organisation that does that on a world basis.”

Economy

source: STA, Slovenian Press Agency; IMAD; SORS; Eurostat

Slovenian Sovereign Holding

Banking Sector Consolidation

Centralised Management of State Assets Bad Bank – the First Step The National Assembly gave the government the go-ahead to set up the Toward Good Banks Slovenia Sovereign Holding as coalition MPs voted in favour of consolidating, in a single holding, the management of state assets estimated to be valued between EUR 9bn and EUR 13bn. The entity will be led by a threemember management board which will be selected through an international call for applications and will be exempt from provisions of the Act which limits executive pay in state-owned companies. The holding is being created from the Restitution Fund (SOD), which will also absorb the DSU fund, while the Capital Assets Management Agency (AUKN) - the manager of state assets to date - and the restructuring PDP are being abolished. State assets will be transferred at fair value. The Pension Fund Management (KAD) will remain a separate legal entity within the holding and will contribute EUR 50m to the pension purse every year. Insurer Modra zavarovalnica which manages the public employee pension funds, will remain part of KAD. The structure for the appointment of KAD supervisors will also not change. The main goal is to improve the management of state shareholdings in companies, increase their value in the long term and set up a single management system, that is a single corporation to manage the assets, as opposed to the current situation where they are managed by several firms. The new holding would operate based on management acts (managing guidelines, a strategy for management, an annual plan, a code of management). Before the strategy is compiled, the government will have a month to propose a classification of investments between strategic and those that will be sold.

Bad bank - First step out of the credit crunch?

Better corporate management in state owned companies?

The National Assembly passed the government bill establishing a bad bank. Designed to clean up the banks’ balance sheets and kick-start lending, the bad bank will take over non-performing loans in exchange for bonds backed by up to EUR 4bn in state guarantees. The operation should make it possible for the banks to clean up their balance sheets and start lending to businesses again as they are expected to be able to obtain financing from the European Central Bank. Under the legislation, the bad real estate and commercial loans of the banks will be taken over by a special fund owned by a state-owned company set up under the bill. The final decision as to which banks to include in the scheme will be taken by the government, based on the initiative of the bank itself or the Central Bank, which will then be examined by a commission including representatives of the government and the Central Bank. Finance Minister Šušteršič said the government will take into account three criteria in deciding which banks to include: the bank’s importance, the impact of the individual loan on the bank’s assets and the urgency of the move in terms of capital adequacy. If included in the scheme, the bank will have to draw up a programme outlining its strategy and if the bank has private shareholders, “the share of the burden of resolving these bad claims that they will carry,” according to Šušteršič. The state-owned company managing the bad loan fund will have a seven-member board with three executive and four non-executive directors. The latter will be appointed directly by the government who will then name the executive directors. The company managing the fund will also have the authority to recapitalise the banks if needed. It will have up to EUR 1bn at its disposal for the operation.

GDP

IMF Regular Mission

2% Contraction in 2012

Top Priority: Restoring Confidence

The Institute of Macroeconomic Analysis and Development (IMAD) has further downgraded its economic forecast for 2012, predicting a 2% contraction in GDP instead of the 0.9% drop envisaged in the spring forecast. In its autumn forecast, IMAD says that the larger-than-expected contraction is a result of domestic factors and weak export growth. IMAD Director, Boštjan Vasle, said that the contraction will persist into 2013 when the economy will shrink a further 1.4%. Modest growth may return in 2014. Vasle explained that the downgraded growth projections for this year were based on GDP data for the first half of the year, which showed a contraction of 1.5%. Y-O-Y change (in %) The deterioration of the 8 economic situation in Slovenia and the ongo6 ing financial troubles of 4 the eurozone are the 2 biggest risk factors at the 0 moment. He warned that -2 a further deterioration in the global economy -4 or a failure to iconsoli-6 date public finances in -8 Slovenia would mean the -10 contraction could be even Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 bigger.

The IMF mission which concluded its regular autumn visit to Slovenia said in its report that Slovenia needs “strong and prompt policy actions” to address structural weaknesses and restore confidence. It says the reforms announced by the government were “ambitious and comprehensive” but success will depend on the proper and timely implementation of the measures. Commenting on the government’s efforts to deal with the nonperforming loans of the banks, the mission welcomes the creation of the bad bank (the Bank Asset Management Company) as “an important first step” to address the issue, but highlights that proper operations will be the key to success. “The company should be independent and free of political pressure, appropriately funded, able to hire the best talent, fully accountable for its actions, transparent and subject to external professional auditing.” The mission urges the government to “move decisively to privatise banks and corporations (to below a blocking minority share which would deter strategic investors) in order to change their governance and commercial culture”. The report says the proposed cut in public sector pay “is very ambitious and the mission welcomes efforts to avoid excessive wage compression”. The IMF also recommends a reassessment of the legislated reductions in the corporate income tax rate and the generous allowances for investment. According to the report, the inclusion of the fiscal rule in the Constitution, complemented by enhanced medium-term fiscal planning, would “anchor fiscal consolidation in the medium run”. The report also highlights the importance of the pension and labour market reforms and urges the country to attract fresh external capital.

Source: SORS

The Slovenia Times

ECONOMY 13

COBIK Conference 2012

We Must be Persistent In 2009, the Ministry of Higher Education, Science and Technology of the time, endorsed eight centres of excellence in various fields of science and research. The Centre of Excellence for Biosensors, Instrumentation and Process Control (COBIK) was among them but was nevertheless somewhat different: markedly interdisciplinary, it is the only place outside central Slovenia emphasising the strong horizontal role of social sciences for the Laboratory for Open Innovation Systems (LOIS), founded by its leading partner, the Faculty of Economics and operating within its scope. By Tilen Majnardi

Maja Makovec Brenčič

Despite ever present doubt, several of the centres of excellence have managed to firmly establish themselves over the past three years. How would you summarise the results of COBIK during this time? The first result is the daily implementation of COBIK’s mission, for we “indubitably create breakthrough solutions and conditions for high-tech entrepreneurship” through current and notable research in high-tech companies and individual scientific-specific laboratories, newly established and registered patents (27 innovations and 16 prototypes to date with two patents still underway) and new industry connections (10 agreements with global institutions and companies, including from the USA, Kazakhstan, India, China and others). The first biotechnology spin-off, LBABio, d.o.o, was established as was the MBAR, an MBA study programme for scientists and researchers and I could name more. The COBIK Conference brings all these together, each bringing with them new know-how, experience and benchmarks with competitors throughout the world in the operations of high-tech companies and centres of excellence. This year, the content of the conference

in light of the economic and financial crisis, will be particularly relevant: we are seeking good capital for good development ideas. The 3rd COBIK Conference will take place on 25 October. What will you surprise us with this year? We will surprise with interesting speakers from abroad who bring with them a multitude of experience in similar centres of activity and with the promotion of high-tech innovations and their commercialisation: e.g. from Finland, Dr Tuovinen who is the VicePresident of VTT – Technical Research Centre of Finland and also the Head of the so-called Diagnostics Innovation Platform. Also

joining us will be the active global investor Dr Krejs, who played a pioneering role in the venture capital industry both in Austria and the wider CEE region. Particularly interesting will be the Austrian experience presented by speaker Dr Stampfer, who is the Director of the Central Vienna Science and Technology Fund, which both at the systemic and operational levels is involved specifically in the promotion of technology development and positioning development ideas in the market and is also a connoisseur of innovative development at the OECD. A novelty at this year’s conference will be the presentation of the best practices of COBIK. This is an initiative called COINVEST that also includes the EN-FIST and PoliMaT centres of excellence and will present examples of the best practices of Si.Zyme – EN-FIST spin-offs. The event will be rounded-off with a debate by interesting speakers from Slovenian institutions on the topic of Whether Slovenia can become the meeting-point for hightech investors, headed by Professor Marko Jaklič, Head of the LOIS laboratory. Numerous reasons exist to spend this day with us. Where do you see the greatest potential, due to strengths, for implementing research results? I particularly see an advantage with regard to specialised industrial-development know-how and innovations with business

knowledge and skills as well as experience regarding market positioning – this is, in my opinion, the key strength of such centres if they are capable of supporting breakthroughs not only in terms of financial resources but also globally, particularly through the engagement of human resources and their knowledge. Opportunity predominantly exists in the global market (micro) niche. It is precisely in this area, alongside outstanding know-how and research, that I feel Slovenia has quite a lot of untapped potential. Moreover, R&D is also a very interesting area for COBIK as are new or upgraded products and services, not only in the inter-organisational area but also for the final consumer market, where a useful benefit for every individual is becoming increasingly more important. For example, the COINVEST initiative which will take place one day before the COBIK conference, represents a meeting point for providers of new ideas and solutions, potential investors and includes prototypes and innovations that have arisen within the context of COBIK and improve existing solutions in the offer of support systems and solutions in the field of biosensors, instrumentation and process control. Do you perhaps know what is happening in the markets COBIK spin-offs will enter and other research results? Were these markets affected by the crisis? The same is happening as in the investment markets: they are tight, but when it comes to development inventions and concurrently a commercially attractive solution that creates new benefits from a sustainable aspect, then I think that despite the harsh conditions, it is still possible to find good capital and proactive investors. Therefore, we as development players and innovators need to be persistent and continue to believe in ourselves. This is also the main message of 2012’s COBIK Conference. October 2012

14 ECONOMY

Public Finances

Budgets 2013, 2014 Adopted

Photo: BOBO

The government adopted proposals for the 2013 and 2014 budgets. Aiming for a deficit of between 2.8% and 2.9% of GDP in 2013, the government’s plans include a 5% cut in the public sector wage bill, increased VAT for some products and services and implementation of pension reform.

5% additional cut in expenditure in the public sector

Janez Šušteršič, Finance Minister: “The public sector must be adapted to what our economy can pay for.”

The Slovenia Times

According to Finance Minister, Janez Šušteršič, the effect of the pension reform should kick in as early as next year, with the 5% cut applicable to the entire public sector, not only public administration. “The public sector must be adapted to what our economy can pay for,” Šušteršič said. With EUR 4bn earmarked for public sector pay per year, the 5% cut represents about EUR 200m. Individual public sector entities will have a free hand in deciding how to achieve the cut. Budget expenditure for 2013 is estimated at EUR 9.5bn, slightly above this year’s figures due to the successful drawdown of EU funds, giving the government an estimated EUR 600m extra for investment. The government also plans to cut expenditure by decreasing capitation funds available to municipalities by 3.3% for 2013.

The budget deficit is capped at EUR 1bn meaning budget revenue should amount to EUR 8.5bn. One of the measures to achieve this is a VAT increase (from 8.5% to 20%) for a number of goods and services, including newspapers, magazines and communal services. The measure is expected to bring in EUR 70m. Further revenues are expected to be generated by publishing a list of tax delinquents, ramping up the environment tax and increasing taxes on luxury cars, according to the Minister. The government also proposed a new financial services tax and a two-year extension of the existing tax on banks assets. Šušteršič said the government measures are a response to deteriorating economic conditions and a downgraded outlook for 2013. “Nevertheless, the government must respect its commitments in order to keep the budget deficit below 3% of GDP. Respecting this commitment is crucial for maintaining the country’s credibility,” the Finance Minister said, highlighting the importance of structural reform.

If the plan is to cut jobs the union’s response will be “extremely sharp and clear”, he warned. Should the government insist on layoffs, the unions will not be able to accept the labour market reform which reduces severance pay, notice periods and unemployment benefits, Štrukelj said. In that case, the unions will do everything in their power - including calling a referendum - to prevent the law from coming into force, he stressed. Furthermore, it is unclear by how much the wage bill is decreased in the proposed budget. The announcement of the 5% cut apparently applies to figures from the previous plans under which the wage bill was to shrink by 12.5%, Štrukelj said, wondering whether the government was vague intentionally so it could “fish in troubled waters”. Leadership of the KSJS confederation also decided to join the effort to call a referendum on the Slovenian Sovereign Holding and support journalists in their protest against a higher VAT on newspapers and magazines.

Expected criticism from the unions – on the brink of a new referendumania?

Criticism of the government plans also came from the opposition. Leader of Positive Slovenia (PS), Zoran Janković, said the cut amounted to a “disintegration of the system of solidarity” provided by things like public education and public healthcare. “Fi n a n c e M i n i s t e r Ja n e z Šušteršič’s talk about layoffs was indecent and offensive toward people working in the public sector, such as schools, kindergartens, community health centres, hospitals, police stations, libraries...and other institutions” Janković stated after the adoption of the budgets. He was also critical of the coalition which “only knows how to cut and disintegrate what is good in our society.” A system of cuts cannot lead to new value and new jobs and the government’s failure to reign in the budget deficit proves that, he added. The Social Democrats (SD) Deputy Group Leader,

If the government plans to cut the public sector wage bill through layoffs, the response of the trade unions will be sharp and clear, chief public sector unionist, Branimir Štrukelj, told the press. Comments and criticism of the government’s plans were also heard from various other areas. Responding to the plan for a 5% cut in the public wage bill as part of the 2013 and 2014 budgets, the Head of the Confederation of Public Sector Trade Unions (KSJS) protested against the “politics of accomplished facts”, saying the government failed to consult unions when drafting the budget proposals. Štrukelj stressed that it remains unclear how the government plans to achieve the 5% cut.

Outrage in opposition

ECONOMY 15

Photo: BOBO

Layoffs are not the only option

New Europe, New Thinking

Golden Drum

Janko Veber, meanwhile said that the education sector would be hit hardest by the new round of austerity. He also warned against layoffs and pay cuts without providing the necessary legal framework first. “If you want to cut wages you need to draft a special law in order to avoid legal procedures,” he stressed. The Chamber of Commerce and Industry (GZS) meanwhile called for the public sector

wage bill to be optimised in a way that would improve the competitive edge of the public administration and public institutions. GZS is also concerned about the possible knock-on effects of “offhand and linear measures” on the economy, the pension purse and the labour market. What is more, a “negative selection of staff” can do more harm than good, the Chamber warned.

he competition this year attracted a greater number of entrants, 333 entrants compared to the 265 entrants of 2011 sent their creative work to the two international juries judging the best advertisements, events and other creative communications. Pawel Heinze, Executive Creative Director, Leo Burnett, Warsaw, led the singlechannel jury of ten other members, including Slovenian Aljoša Bagola, Executive Creative Director of Pristop. The Chairman of the multichannel jury, Michael Kutschinski, Creative Director at Ogilvy, Germany, was joined by ten members including Katja Petrin Dornik from Luna TBWA Ljubljana. The Slovenian Advertising Chamber, organisers of the Golden Drum Festival, decided after the 2011 event to return to the “Golden Roots” of the festival, limiting the competition to 37 countries from the so-called New Europe: Russia, Eastern, Central and Southern Europe and the Middle East; hence the increased interest in the festival from countries such as Poland, Romania, Serbia, Ukraine, Kazakhstan, Belarus and also Slovenia. The majority of the awards went to Russia which had the greatest number of entries this year; in all 331 entries of the total 1,438. Grey Ljubljana won a Silver Drum, the only award for a Slovenian agency of the 53 entries submitted. The 2012 Golden Drum followed the tradition of previous events, offering a strong and contemporary

The Justice and Public Adm in ist ration Min ister, Sen ko Pličanič, stressed at a press conference that a rationalisation of the public sector, while unavoidable, does not necessarily means layoffs as savings can be made by reduci ng fu nds for n ight sh i f ts, over t i me a nd performance compensation. Last year, performance compensation in the public sector cost taxpayers EUR 79m, overtime EUR 78.2m and night work EUR 15.9m. This represents 5.2% of the g ross wage bill in the public sector, Pličanič explained. The biggest savings can be made in healthcare, where EUR 98.6m went for overtime, night work and performance pay, whilst the education and sports sectors used EUR 55.4m for this purpose, he said. The 5% cut in the wage bill will therefore not cause mass layoffs in the public sector, nor will it result in a lower quality of services, Pličanič believes. “The big story about mass layoffs turned out to be almost completely hollow,” the Minister said. While admitting layoffs were possible, he stressed the goal of the government was rationalisation.

programme. More than 50 speakers over the four festival days held many lectures, panel discussions and workshops on different subjects including trends, new agendas, opportunities, new agency models and forms of creativity. The biggest competition was between the agency networks and independent agencies that each showed a different approach to expose their strong points. Networks, with their strong foundation, big systems that can handle stress well but also like to play it safe when it comes to taking risks with big budgets from big clients, have found a formidable adversary in smaller and more agile independent agencies who employ experts by client demand and take more risks. The result being that this year, most of the Golden Drum awards went to independent agencies with the most successful being the Look At Media agency that won the Golden Rose for the best agency of the year, the Tartini Award for the best independent agency of the year and also the Brand Grand Prix for their client The Village RU, an online service for the City of Moscow. Leo Burnett won, by a considerable margin, the Golden Net Award for the best agency network of the year. The bottom line: New Europe has a lot of creative potential, the greatest coming from strong agency networks and independent agencies... if only clients/advertisers would open their minds to the power of creativity more often...

Branimir Štrukelj, chief public sector unionist: “The government failed to consult unions when drafting the budget proposals”

The 19th Golden Drum Festival, held in the first week of October 2012 at the GH Bernardin in Portorož, showed that last year’s investment in the structural change of the competition is beginning to pay off. By Borut Odlazek

Ruler that measures time, by Grey Ljubljana, Silver Drum in group Group F, Brand Design & Corporate Identity.

President of the Slovenian Republic, Dr. Danilo Türk congratulates Katya Bazilevskaya from aLook At Media agency, winners of the Golden Rose, Tartini Award and Brand Grand Prix

Michael Kutschinski, President of the multi channel jury congratulates SEK & GREY from Helsinki on their Golden Drum award.

October 2012

16 ECONOMY

Interview: Andreas Ptacek, General Manager, BMW Group Slovenia

Long Term Thinking and Responsible Action BMW Group is one of the most successful manufacturers of automobiles and motorcycles in the world with its BMW, MINI, Husqvarna Motorcycles and Rolls-Royce brands. As a global company, the BMW Group operates 29 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries. In 2011, BMW Group sold about 1.67 million cars and more than 113,000 motorcycles worldwide. The profit before tax for the financial year 2011 was EUR 7.38bn on revenue of EUR 68.82bn. At 31 December 2011, BMW Group had a workforce of approximately 100,000 employees. By Tilen Majnardi, M. Sc. India, Korea and Turkey) is also growing above average. As a general observation, the premium segment is more stable than the total car market. This is definitely also true for the European markets including Slovenia. We have a large customer base of corporate and diplomatic customers who, in general, react less to economic cycles. In these segments we still see more potential for profitable growth.

Firstly, we cannot ignore the general crisis and the impact on the automotive industry, how is BMW Group affected, generally and in Slovenia? Due to a positive trend in demand, particularly in the US, China and the emerging markets, BMW Group is again able to continue its path of profitable growth this year. For example, BMW Group sales in September 2012 grew 11.6% globally versus the previous year. So we have been able to increase our overall sales performance to an unprecedented 1,335,502 BMW Group vehicles YTD to September 2012. However, we are experiencing a slight decline in demand in the European markets versus last The Slovenia Times

year. The Slovenian car market, in particular, suffered a downturn of approximately 30% in August and September 2012 versus the previous year. This is why we are trying even harder to act faster, to be more innovative and to work even more closely with our dealers and marketing cooperation partners. Are people in Europe turning to cheaper and lower quality products or are you, as a premium car producer, maybe not so affected? What are your results in new markets, China for example? China will become the most important market for premium vehicle manufacturers in the near future. The premium segment in BRIKT countries (Brazil, Russia,

Some producers are ver y aggressively turning to electric cars, what is the policy of BMW in this area - being known as a producer that promotes the basic pleasure of driving, sometimes ”e cars“ are just not the real thing? BMW Group has a clear competitive advantage with its Efficient Dynamics strategy which was introduced in 2007. Efficient Dynamics is a package of intelligent technologies designed to significantly reduce fuel consumption and emissions and, at the same time, increase performance. Efficient Dynamics technology is a standard feature on all vehicles produced by the BMW Group. In the future we also intend to play a pioneering role in the industry for e-mobility. Since 2009 we have gathered a lot of knowledge with one of the world’s largest trial fleets of electric cars driven by customers on the roads with the MINI E and from 2011 with another trial fleet of around 1,100 BMW Active E vehicles. This experience made us confident to launch the BMW i in 2011, a new sub-brand for vehicles that are built around an electrical drive train. Furthermore, we have consequently rethought the entire value chain from development to recycling including sourcing, production, sales and the phase of usage, with

a focus on sustainability. The result is vehicles with entirely new technologies, an outstanding design and the lowest possible CO2 emissions. Nevertheless, the most important feature will remain unchanged - sheer driving pleasure. As the first model BMW Group will launch the BMW i3 at the end of 2013. It is the first series-produced electric vehicle built for individual urban mobility. Soon the BMW i8 will follow, a true sports car which combines an acceleration of 0 to 100 km/h in under five seconds with fuel consumption in the European cycle of under three litres per 100 kilometres. This plug-in hybrid will show a thrilling design and will offer breathtaking driving performance. Is the current electric technology really a ”proper“ substitute for existing oil driven technology or are we still waiting for cost effective solutions? Huge investment flows into the development of new battery technology. This is why we can expect

ECONOMY 17 cess through high cash discounts, even in the time of crisis. Instead, together with our dealers, we will try even harder to invent attractive offers with high product substance and premium services for our customers.

significant improvements in electric storage capacity along with a reduction in weight and costs. Nevertheless, we expect to see a wide range of drive-train technologies for different customer requirements in the future. For people who live in a large city or are commuting in an urban environment, battery electric vehicles, with or without range extender, might be an ideal solution. For a similar target group that uses the car occasionally to go on extended business or holiday trips, a plugin hybrid might be an ideal compromise. For all other customers who are frequently driving long distances, a highly advanced combustion engine with mild forms of hybrid technology will continue to remain the first choice for a long time. We expect that in 2020, battery electric vehicles and plugin hybrids together will achieve a global share of between 5% and 15% of newly registered vehicles if basic conditions have been defined. Major producers are investing a lot in ”green“ and ”sustainable“ technology, what are

the lastest superior solutions in BMW? What will be the main trends in the next few years? For the eighth consecutive year, BMW Group was named the most sustainable car company in the Dow Jones Sustainability Index. We achieved this mainly by investment in new technologies that are significantly above average in our industry. We believe that this is the best strategy to meet the high expectations of our premium customers today and tomorrow. From 2007 every one of our vehicles has come with a set of Efficient Dynamics solutions as standard equipment. This amounts to more than five million vehicles with CO2-reducing technology on the road today. Hence we were able to reduce the fleet consumption from the mid 1990s by 30%. But we still follow ambitious targets and want to halve more or less the overall fleet consumption by 2020 compared to the mid 1990 levels. One very important step on our future path is our new BMW TwinPower Turbo engine family with 3-, 4- and 6-cylinders and displacements from 1.5 to 3.0 litres. In the future we will equip all of our BMW Group engines with the latest technology such as Valvetronic, High Precision Injection (a direct petrol injection system) and turbo-charging for petrol and common rail injection system, a variable nozzle turbine for diesel engines. With this new engine generation we will achieve an unprecedented level of shared parts, including between petrol and diesel engines, as well as flexible production at different plants.

tive advantage for premium manufacturers. Our customers enjoy the benefits of high residual values, an unexpectedly low cost of ownership and the convenience of our standard service inclusive programmes which cover nearly all after sales expenses in the first years of ownership. Therefore we are confident that we are already utterly competitive in the market. This is why we want to resist the temptations of short term suc-

Will you stick with your existing market strategy in Slovenia, you are investing a lot in sustainable oriented projects or will you make some changes, adopt new concepts, organisational changes in the dealer network....? Premium products must be in line with premium services and sustainable solutions. All these fields are of increasing importance to our customers. Here we believe we have a significant competitive advantage in the years to come. Furthermore we care, in particular, about the benefits for our customers in all our activities. This can only be achieved in stable partnerships with our dealers and main cooperation partners. While our dealer network shall remain unchanged, we rather want to concentrate on a smaller number of marketing cooperation’s that we even intend to deepen. Our special focus for the cooperation’s for the BMW brand lies in the field of sustainability.

W hat is your prediction for major market developments in next year and particularly in Slovenia? We strongly believe that a sustainable way of doing business will remain a long-term competiOctober 2012

18 ECONOMy

Interview: Klaus Scheitegel, M. Sc., GRAWE zavarovalnica, d. d.

Leading the Way GRAWE zavarovalnica, d. d. was established in 1991 when it became the first privately owned and also the first foreign insurance company to operate initially in Yugoslavia, then later the newly independent Republic of Slovenia. The GRAWE Group is ‘A’ rated by Standard & Poor’s. The basis for such a rating is its strong financial stability and cautious, safe financial investments. Judging by its market share, GRAWE zavarovalnica, d. d. is well recognised in Slovenia and is proud to have earned the loyalty of many satisfied clients throughout the country. By Tilen Majnardi ments for the establishment of a company in 1991 differed greatly from those we know today.

How would you evaluate the state of business cooperation between Austria and Slovenia? As neighbouring - and partnering - states, Slovenia and Austria share an elaborate network of multi-faceted bilateral relations. Their membership of the European Union has helped raise these to a higher level and evidence testifying to the successful cooperation and partnership between the two states is to be found in almost every sphere. The two countries share similar political and foreign policy perspectives and also cooperate successfully in the region. Indeed, Austria is a major business partner and a strategic investor in Slovenia, while the respective economies are tightly interwoven. Both countries have also enjoyed an open labour market since May 2011. Was GR AW E’s entry into the Slovenian market accompanied by any unanticipated events? What advice would you offer an Austrian enterprise looking to establish itself in Slovenia? GRAWE, zavarovalnica d. d. which until 2001 operated under the name Prima – was established in late 1990 as a subsidiary of The Slovenia Times

the Graz-based GRAWE - Grazer Wechselseitige - insurance company. GRAWE’s original objective was to extend its business across the entire 22 million-strong Yugoslav market; however, this ambition was curtailed by the war which by 1991 was already raging across the region. Nevertheless, activities commenced in Maribor and in 1991, GRAWE became the first privately-owned, as well as the first foreign insurance company, to operate in Slovenia. At that time, a great deal of effort was needed for the preparation of documentation. The legal require-

Is the level of development of the insurance industry in Slovenia comparable to that in Austria and where do you perceive the differences? The Austrian insurance industry looks upon 200 years of tradition. GRAWE was instituted by way of an imperial warrant, founded as the Inner Austria Mutual Fire Damage Insurance Company by Habsburg Archduke Johann von Österreich in 1828. Shortly after its creation, the company established operations throughout inner Austria and more specifically, the regions of Styria, Carinthia and Carniola in the territory of present day Slovenia. Today more than 55 insurance companies operate in Austria, a country with a population of 8.4 million. The market is highly dispersed and the leading company’s share accounts for just 14% of the total. With a national gross written premium amounting to EUR 17bn, the average Austrian pays EUR 2,023 p.a. for insurance services. By way of comparison, Slovenes spend EUR 1,034 per capita on insurance. Premiums respectively account for 5.9% and 6.1% of GDP in Slovenia and Austria and accordingly reflect the fact

that, given two different economic realities, people in Slovenia and Austria tend to spend a similar proportion of their income on insurance. What similarities and what differences are there in the level of insurance coverage between Slovenia and Austria and what types of insurance are most popular in these neighbouring states? Judging from the respective market shares, Slovenia’s insurance market is more amalgamated. The four biggest insurance companies in Slovenia enjoy a combined 76% stake, whereas in Austria the largest four players account for just 41% of the market. Indeed, one would have to aggregate the operations of the 14 largest insurance companies operating in Austria to arrive at a 76% market share. Life insurances accounts for 45% of total business in Austria as opposed to 31% in Slovenia. Indeed, Austrians devote more funds to life insurance and provision for their old-age; with regard to this, we perceive that this area of business has great potential in Slovenia. Demographic changes, increasing life expectancy and declining birth rates are inevitably leading to an ageing population. The individual will become increasingly responsible for providing for their old-age and life insurance can be an important source of income. What are GR AWE’s plans for the future? The overall economic downturn in Slovenia has certainly taken a toll on GRAWE’s business. Nevertheless, I believe that Slovenes are innovative and have lot of stamina which will see them through and ensure they overcome the present crisis. There will be an eventual upturn in the Slovene economy and, with that, the fortunes of its insurance companies. Therefore, as far as the future is concerned, I remain optimistic.

20 FDI Summit 2012 report

Special Report

Time for Immediate Action and Optimism The largest conference on foreign direct investment and development issues in Slovenia was this year organised with the theme “From Rhetoric to Implementation”. The current situation in Slovenia definitely needs immediate action in terms of active economic policy and adopting crucial structural change. Almost 40 speakers and 200 participants more or less agreed that Slovenia must act now or it will be the new “problem” of the European Union. By Tilen Majnardi, M. Sc.

Dušan Mramor: “Failure to pass major structural reforms and the pro-cyclical economic policies led to the nation’s public debt soaring by 160% between 2005 and 2009”

The Slovenia Times

rganised by The Slovenia Times in cooperation with the Ljubljana Faculty of Economics, the third FDI Summit Slovenia in Ljubljana was opened by The Slovenia Times CEO, Brane Krajnik and faculty Dean, Dušan Mramor. The conference featured nine panels and more than 35 prominent speakers from corpo-

rate, research and government institutions, as well as experts and executives from abroad.

Foreign Investors Urge Labour Reform, Withdrawal of the State from the Economy

Slovenia is a country which offers a good strategic location, the right infrastructure, an innovative spirit and a well-educated workforce But what it lacks is reform of its labour market and the withdrawal of the state from the economy. It is high-time to stop the talk and start working on creating a more business-friendly environment, said Brane Krajnik, CEO of The Slovenia Times. The Dean of the Ljubljana Faculty of Economics, Dušan Mramor, highlighted the misguided economic policies that had brought Slovenia into the situation where it now is. He believes challenges can be overcome with the right diagnosis of problems and decisive remedial action. “Slovenia was lucky to start its journey in a time of economic

growth and a stable environment and probably didn’t prepare sufficiently for the crisis that we are in today,” said Managing Director of Goodyear Dunlop Central and South East Europe, Thierry Villard. He believes Slovenia’s major problem is that its economy is more dependent on exports than many other EU members. He was critical of the government austerity measures saying cost-cutting would not help lift the low domestic demand. In terms of labour law, Slovenia does not have the right level of flexibility and is “not quite there yet” when it comes to accepting foreign direct investment as a positive. Chief Operating Officer of the odelo Group, Klaus Holeczek, called for the right level of competitiveness, stressing that Slovenia needs to conduct benchmarking to find and evaluate its competitive advantages. Executive Vice President Eastern Europe of the BSH Bosch and Siemens Home Appliance Group, Rudolf Klötscher, pointed to the need for a clear distinction between the role of politicians and the role of

FDI Summit 2012 report 21

Slovenia as Seen From a Critical Distance (from left): Rudolf Klötscher, Executive Vice President Eastern Europe, BSH Bosch and Siemens Home Appliance Group; Thierry Villard, Managing Director, Goodyear Dunlop Central & South East Europe; Klaus Holeczek, COO, odelo Group

entrepreneurs in the economy, adding that the significant level of state ownership does not reflect what should be a market economy. Regarding the announced privatisation of state assets, Klötscher welcomed the willingness of the current government to withdraw from the economy.

Need for a Kinder Business Environment, Bolder Decisions

The need for a more friendly business environment, for more courage among Slovenian companies and new ways of securing capital were highlighted in a debate which featured Economic Development and Technology Minister, Radovan Žerjav. The government hopes that the trade unions, averse to change in the past, will recognise the urgency of the situation and that it will be possible to adopt reform by the end of the year. This will be an important message to foreign

investors, that issues are being addressed. Regarding major infrastructure investment, the credit-based model applied to the construction of the motorways is no longer feasible and other methods, such as public-private partnerships, would need to be sought. Executive Vice President of the Chinese Academy of International Trade and Economic Cooperation (CAITEC), Ren Hongbin, contributed the Chinese perspective, pointing out that China was working hard to increase also domestic demand. He said this was a good chance for Slovenian companies to explore opportunities there and pay attention to segments where the Chinese government has focused its investments. There are seven strategic sectors: energy conservation, new generation IT, new materials, new energy, biology and cars. Around 30 projects have been established by Slovenian companies in China worth around EUR 18m, which is not a lot but a very good foundation for

further investment. While mentioning a disappointing USD 1m in Chinese investments in Slovenia, he listed Slovenia’s favourable geographical position - especially the Port of Koper - and its skilled and dedicated labour force as attractive features. The Dean of the Ljubljana Faculty of Economics, Dušan Mramor, took the opportunity to criticise the government’s bad bank proposal as a solution to the bad loans problem, arguing that most leading economists disagree with it. Regarding opportunities for Slovenian companies, there were good companies but too little capital, which is why the financial system is the key priority. The CEO of state-owned insurer Zavarovalnica Triglav, Matjaž Rakovec, agreed that courage was lacking among Slovenian companies, whilst highlighting the company’s clear strategy as an advantage, although additional capital is needed. Triglav is the leading insurer in the region where insurance

awareness is still very low, making it one of the most promising markets in Europe.

Slovenia has the Potential to Become a Hi-Tech Hub

Slovenia has a number of successful hi-tech companies but it can only become a hi-tech hub if it can connect knowledge and technology with the market. The future will present many opportunities for small and medium sized companies. Slovenia has a number of promising IT companies however, to achieve success, the gap between science and technology and the companies must be narrowed. “Those who won’t be able to reduce this gap will be the losers of the future.” CEO of Center of Excellence PoliMaT, Mateja Dermastia, said that the knowledge and research is here, but what Slovenia is not so good continued on page 22

Strategy for the Internationalisation of the Slovenian Economy in Changing Global Conditions (from left): Ren Hongbin, Executive Vice President, Chinese Academy of International Trade and Economic Cooperation (CAITEC); Matjaž Rakovec, CEO, Triglav; Radovan Žerjav, Minister of Economic Development and Technology, Slovenia; Professor Dušan Mramor, Dean of the Faculty of Economics, University of Ljubljana October 2012

22 FDI Summit 2012 report the City of Akron, Ohio, USA. “We went thought a similar type of problem. We thought of ourselves as invincible in some ways but suddenly the world changed and we had to reinvent ourselves”. Sandi Češko, CEO of marketing company Studio Moderna, stressed Slovenia’s main advantages are the enthusiastic and competitive people and entrepreneurs in numbers of which Slovenia “for sure is at the top per capita”. But he warned that too many Slovenians are socialised and educated into believing that “we are a small nation”. This is something you rarely hear that from people in other countries, he pointed out, adding there is no reason for pessimism. Jeremy Glenn, futurist and Director of the Millennium Project, a US think-tank, meanwhile pointed to the massive changes in the last 25 years, stressing that changes are accelerating exponentially.

Importance of Energy Investments and Efficiency

continued from page 21 Marko Jaklič: “The world is facing the beginning of the third industrial at is taking the knowledge to the market. What small companies revolution that will can do is learn from the multinatransform people’s lives tionals in this field. in future years, not least by helping countries Optimism is Key to FDI find a way out of the Attracting There is too much pessimism economic and global and too little cooperation in Slosocial crisis” venia emphasised the panel co-or-

ganised with AmCham and dedicated to finding answers to global challenges. Stability, consistency and cooperation are key conditions for Slovenia’s success in attracting foreign direct investment. That pessimism can be the biggest problem was also underlined by Donald Plusquellic, Mayor of

Energy is a key for international competitiveness and energy efficiency can be at the core of a new development concept. The need to raise awareness about energy efficiency and energy market opportunities and secure the necessary funding were stressed as important priorities. Tomaž Orešič, who is in charge of Central and Western Europe for the EFT Group, looked at business opportunities in SE Europe where 25% of the energy is provided by hydro utilities. The region has a lot of potential and is in serious need of an infrastructure upgrade and is chronically underinvested, possibly because the market is fragmented and because the business environment is poorly developed. The Executive Director of Turboinštitut, an

independent Ljubljana-based hydro institute, Vladimir Kerčan, argued that the situation in certain SE European countries was quite predictable but of course that obstacles also exist, most notably a lack of transparency. He described Slovenia as a global giant in hydro technology, having built knowledge on years of experience going back to the former Yugoslavia, and being able to take a hydro project from beginning to end. Randy Galm of Westinghouse Electric Company contributed the nuclear sector perspective, saying that the US company is presently working on nuclear projects in neighbouring countries which are looking to diversify their energy supply and cut carbon emissions. Regarding the situation in Slovenia, he said that the Krško nuclear power plant means that Slovenia has the necessary infrastructure in place. Frank Heinlein, Director of Strategic Management at the German Sustainable Building Council, said that the problems listed for Slovenia were similar in Germany, where investment in renovation was even lower, at 1%. He however argued for more focus on private initiatives rather than always waiting for subsidies. One stimulative approach by the state could be higher taxes on energy and other incentives for refurbishing. Gerhard Schmidt, CEO of the BSH Hišni aparati household appliance maker, pointed out that energy efficiency had been part of the DNA of BSH from the beginning and agreed that raising public awareness about the environmental and cost benefits of efficient appliances was of key importance, explaining that roughly 12% of total energy use in Slovenia is by home appliances. continued on page 24

AmCham Business Breakfast: Global Challenges and Answers for Slovenia (from left): Jerome Glenn, Director, Millennium Project; Gregor Virant, President of the National Assembly, Slovenia; Donald L. Plusquellic, Mayor, City of Akron, Ohio; Sandi Češko, President & CEO, Studio Moderna; Sanjiivv Sharma, Managing Director, Partners & Company, Kuwait The Slovenia Times

24 FDI Summit 2012 report

Danilo Türk, President of the Republic and Christof Droste, Manager of the Year 2011 make the closing remarks of the summit continued from page 22

Government: Trying to Boost Investor Janez Šušteršič: “The Confidence in Slovenia

Sovereign Holding Bill will streamline procedures and simplify and make more transparent the structure of governance. This way, investors will have only one entity to talk too and the process of selling assets will be made more transparent.”

F i n a n c e M i n i s t e r, J a n e z Šušteršič, explained that state ownership is currently dispersed across numerous companies in various sectors, with volumes ranging from small interests to majority stakes. Turning to the government proposal for a bank asset management company, Šušteršič stressed its main purpose is to improve bank balance sheets. Similarly to the German bad bank model, the institution is partly based on the German bad bank solution and enhanced by the experience of the Irish. “It is nothing unconventional, nothing very new,” the Minis-

ter noted, adding that the balance sheet cleansing process could start within six months. Coatings and stationery group Ring International President, Ralph Martens, welcomed the proposal saying they bring stability and will help alleviate the credit crunch experienced by many small and medium-sized companies. Martens rejected the notion that Slovenia is going down the Greek path. Slovenia has many advantages compared to other countries. Michael Ayoub of the International Finance Corporation (IFC), part of the World Bank, meanwhile stressed that strategic investments were key in current times. He believes Slovenia presents many opportunities, especially for investors with a long-term interest in the region. Christof Droste, the boss of German-owned car light-

Foreign Investor of the Year: Car Light Maker, odelo Automotive signal lights maker, odelo, from Prebold was named the 2011 Foreign Investor of the Year at a ceremony concluding the first day of a two-day international investment conference, the FDI Summit Slovenia 2012, at the Ljubljana Castle. Odelo is a developer and manufacturer of rear signal lights and LED lights for the automotive industry. It produces systems and components for rear lights for the most prestigious car brands such as Audi, BMW, Mercedes-Benz, Porsche, Bentley, Ferrari, Maybach and Rolls Royce. Based in Germany’s Schwaikheim, the odelo Group has six companies in Germany and Slovenia. In 2011, it became fully owned by the Istanbul-based company, Bayraktarlar Holding. Odelo employs 750 people in Prebold and expects revenue of EUR 100m in 2012. The company’s long-term goal is to become one of the top manufacturers globally, on par with WCM - World Class Manufacturing. odelo COO Klaus Holeczek receiving the award at the evening event The Slovenia Times

ing maker, Hella Saturnus, also welcomed the government reform announcements but pointed out that the idea of a state holding might seem too passive for foreign investors.

President Danilo Türk Optimistic about the Future

The President, who was the honourable patron of the 2010 and 2011 summits, stressed at the closing of the FDI Summit Slovenia 2012 that the conclusions of the 2011 summit largely fit the reforms that are now being introduced, highlighting the consolidation of public finances and structural reforms. “Your conclusions last year were not made in vain,” he told the participants. Commenting on the government’s reform efforts following a cascade of sovereign rating downgrades earlier this year, the President pointed out that the rating agencies actually did Slovenia a favour. They served as a wakeup call after last year’s failed reform talks in which “people were talking past each other”, Türk said, adding that this year’s positive start to talks on pension reform should be appreciated. Highlighting, in particular, the opportunities in Slovenia’s automotive cluster and in many other sectors, Türk stressed that Slovenia has much talent and knowledge but the question remains whether this knowledge is being put into practice. “Slovenia is exactly the same size as Israel and nobody says Israel is a small country”. He believes Slovenia should be more aggressive in the positive meaning of the word.

FDI Summit 2012 report 25

Interview: Ren Hongbin, Executive Vice President of CAITEC

Chinese Investment Need not be Feared The Port of Koper always excites interest and debate about its future with investors and traders from all over the world watching carefully for any significant developments. Chinese investors are just as interested says Ren Hongbin, Executive Vice President of the Chinese Academy of International Trade and Economic Cooperation (CAITEC). By Maja Dragovič Is there any interest from Chinese companies to use the Port of Koper to export their products into Europe? Actually, there are two aspects to the interest of Chinese companies in the Port of Koper. When I was economic and commercial counselor of the Chinese Embassy in Hungary, many Chinese companies shipped their freight through Koper to Hungary, the Czech Republic and other inland countries. The European Union is the largest trading partner for China, the trade volume is growing fast and Hamburg and Rotterdam ports are becoming very crowded. The cost there is increasing and also they can’t manage the shipments on time due to overcrowding. So Chinese exporters have to find another alternative port and I think from the trade point of view, the Port of Koper is very important for Chinese traders. There is the demand from Chinese traders and the Port of Koper is there, the level of infrastructure and the service is not so solid when compared to Hamburg for example, even though the cost is lower. The other aspect is investment. We bought a Greek port several years ago and we have also invested in infrastructure in other ports there. One of the biggest Chinese companies, Landbridge, is taking construction abroad. They investigated the Port of Koper and found that the conditions for construction there are very complicated because of the many curves. I think the government should do something to prepare some conditions for upcoming investors. For example, it could give preferential policies for investors from China. How do you think the Port of Koper compares to other ports in the area such as Trieste in Italy or Rijeka in Croatia?

We use Rijeka port minimally – our traders mainly use the Port of Koper because, to them, the service in Koper is better. As for Trieste, Koper can’t compete with it. We do use the Italian port alot because the market is very big. The trade volume between China and the whole CEE region (16 countries) equals the trade volume between China and Italy alone. Slovenia has a good reputation in new technology innovation. Do you see any opportunities in China in this area for Slovenian companies? Speaking about investment, I think the government should shoulder the responsibility, not the companies. Trade is made by the companies; they have to explore the market. However, the government should prepare

the prerequisite for prospective investors. Open-minded awareness is very important for the whole of Europe toward Chinese investment. It’s quite strange for me because I have spent a number of years in this region and I always try to convince Europeans that Chinese investment is much safer than (the investment) from other countries such as Japan and the USA because the Chinese obey the rules. If you look at Chinese investment in Europe you will find that they are the example of how to obey local rules and also, one of the very important factors, is that localisation is the only way for Chinese investment here. At the FDI Summit you were talking about Collective Chinese investment in terms of high tech.

What do you mean by that? Our Premier (of the People’s Republic of China) announced ‘12 Measures’ to promote the friendly cooperation between China and CEE countries. One of the measures is to jointly set up Economic and Technology zones. Over the next 5 years, Chinese companies are expected to establish one economic and trade zone in each of these countries. So if a Chinese company would like to establish such a zone in Slovenia, the Slovenian government should guide the company as to where it should invest. In China we have a lot of high-tech companies and they know how to establish an operation but the local government should guide them and give them tailor-made preferential policies - at least initially. October 2012

26 FDI Summit 2012 report

Interview: Ralph Martens, Head of the Supervisory Board, Ring International Holding

Companies Need a “Licence” to Get Investors Ring International Holding, headquartered in Vienna, is one of the leading groups in stationery products and industrial coatings. Established in 2001 and with more than EUR 200m of revenue in 2011, rapid growth through strategic acquisitions paired with above-average organic growth in selected profitable niches make RIH Coating a sizeable specialty supplier to industrial clients. Your g roup is relatively young - in 2011 you celebrated your tenth anniversary - yet the group achieved over EUR 200m turnover in 2011. What is your key strategic direction? Ring International Holding (RIH) is one of the leading groups in stationery products and industrial coatings. The Group combines well known, nationally and internationally active companies under one roof in order to take advantage of synergies, achieve competitive advantages and to improve the market position of the companies and the corporate group using bundled knowledge. As a strategic investor, we support long term development – investing in technology, sales and marketing, R&D. This is reflected in our impressive track record of past acquisitions and success due to the cooperation between the companies. Our key success factors are: stability (strength through risk diversification), tradition (RIH companies have more than 150 years of history), market leadership (focus on market leading positions in selected niche markets), success (optimisation of internal processes as the driver for return generation) and quality (awareness of the importance of investment into R&D activities for long-term group success). At first glance there doesn’t seem to be specific correlation between the two business pillars: coatings and stationery. What is your explanation of such a product portfolio? These two independent divisions provide RIH with a degree of risk diversification which is enhanced through the group’s focus on achieving market leading positions in selected niche markets. The two divisions, “Stationery” and “Coating”, are equally successful. Each single product field has a non dominant share in overall sales which means there is no The Slovenia Times

dependency on any particular product field. RIH’s stationery products division manufactures durable, highquality, ring binder and lever arch mechanisms as well as a broad range of other office products from plastic. The coatings division is structured into a separate business, RIH Coating, and manufactures a diversified range of highend liquid and powder coatings for selected profitable niche markets across Europe. RIH Coating also operates reputable coating retailers focused on consumer applications (decorative coatings) and has a leading position worldwide in selected niche markets such as core plate varnishes and railway vehicle coatings. How has your group faced the challenges of the global recession, credit crunch and market decline? How is this reflected in the business performance of 2011 and what are your forecasts for 2012? The total group has grown significantly in recent years in terms of revenue through organic and inorganic growth while also improving profitability. As a group, RIH employs approximately 1,300 people in 47 countries and 12 production locations. It generates more than EUR 200m of revenue at an EBITDA of approximately 10% allowing for sizeable acquisitions in the future. For 2012 in particular, we see our performance well on track. Despite a difficult market environment, especially in the coating market, we have seen solid profitability results for the first half year. We expect to be able to close the year above budget. Considering your strategy, one of the obvious directions of RIH is to focus on growth via acquisition. What is the track record of these acquisitions? What is their business performance and position within RIH now?

FDI Summit 2012 report 27 The group’s aim is to acquire strategically suitable companies which present upside potential in terms of synergies when combined with other RIH group members. RIH is a strategic investor which supports the long term development of members in the group. Restructuring and optimisation of new investments is done through the realisation of existing synergies and stand-alone improvement potential through experienced management and efficient production. Specifically, the introduction of Japanese developed production efficiency improvement systems into newly acquired companies is one - maybe the – driver of the business success behind RIH’s strategy. The group has always brought innovative techniques and process management to long-standing and experienced industry managers who, by implementing those techniques, increased their companies’ performance significantly. You e ntered the Slovene market in 2007 when acquiring first 22% and later 100% of Niko Železniki. What was the rationale for this acquisition and how is Niko positioned within RIH now? Niko d.d. Železniki is definitely one of the success stories of RIH. It has, since its adhesion to RIH Group, grown into the leading company of RIH’s metal business unit as well as the leading European manufacturer of lever arch mechanisms. Niko is today a company with more than 265 employees and 65 years of operation. In 2011, it achieved a net turnover of EUR 31m and profit before tax of EUR 3.6m, of which EUR 1.2m was spent on investment. The RIH ownership has brought Niko greater power on the product market, in communication with banks, as well as greater transparency, quality of corporate management and financial soundness of the company. Remarkably, the company is still run by the same management as before its acquisi-

tion by RIH; sales and profitability, however, have been multiplied. All with gross value added over EUR 43,000 which is 30% over the industry average. Niko has also started important diversification by becoming a strategic development supplier to the German car industry. These facts speak for themselves about the influence of a strategic owner on the performance and development of a particular group member. These efforts also aim at creating a secure environment in terms of employment and continuity. The best way to do so is to set up a structure that allows for sustainable profit levels. What was your first experience as a foreign strategic investor with the Slovene business environment and decision makers when acquiring Niko Železniki and how do you see the present attitude of decision makers toward FDI? As an observer of the Slovene economy I can see a number of companies with urgent need for capital as a consequence of the bankruptcy of their owners which were not the real, long term owners. They had no vision, no competence, no ability to open new markets and obviously also no sustainable capital strength. This should be a lesson for the Slovene economy and politics that domestic owners are not necessarily always better then foreign. I am sure that for Slovene companies to be able to survive and prosper they will need to accept foreign capital, especially from strategic investors. In terms of taking over Niko there were no specific obstacles in the buying procedure however, in general, as a foreign investor I have witnessed too many attempts of selling Slovene companies that did not come to a successful conclusion due to political intervention. I strongly agree that Slovenia needs a vision and economic strategy that will clearly define the strategic industries and also the policy

regarding state ownership in Slovene companies. And once you decide then just do it: let the investors know what is of interest to the Slovenian state and where it wants to disinvest and that foreign investors are welcome. You must understand that strategic investors have serious commitments once they decide to enter a company. Changing signals all the time about what is welcome and what is not is very discouraging for foreign investors. And I am afraid that Slovene companies don’t have so much time to wait for this “licence” to get new investors. What is your general opinion about the Slovene business environment and the macroeconomic challenges of Slovenia stabilising public finances, structural reforms, privatisation of state owned companies? What areas would you expect urgent changes from the perspective of a foreign investor? I have heard about the first two packages of government measures related to corporate income tax rate reduction, tax incentives and measures for boosting the Slovene economy - tenders, subsidies, guarantees, funds for public investment... These are definitely measures in the right direction. However, the government should keep a high tempo with these measures so that companies and investors will feel their impact asap. For instance, reducing the numerous administrative barriers for investors to obtain permits, stabilising public finance and structural reforms are urgently needed to encourage competitiveness. The end result should be seen via stable conditions for healthy businesses and economic growth. This is everthing that is expected from the government. The rest is on the investors and companies. RIH is mentioned as one of the potential investors in Helios. What would be your rationale and your interest in acquiring

Helios considering RIH Coating Division? The acquisition of Helios presents an extremely rare and attractive investment opportunity given that it is available on the market only as the result of the significant shareholders finding themselves in financial difficulties. The owners of Helios have refrained from active involvement in the business. Therefore, RIH Coating management believes there are substantial opportunities to improve profitability via a more active management approach. In particular, RIH Coating’s strategy would foresee improved capacity utilisation at the existing Helios factories through strategic relocation of production volumes in addition to improved production processes and a more structured approach in corporate management. The complementary geography and portfolio of RIH Coating and Helios is the key rationale for such a step. In order to realise the significant and tangible synergies of an acquisition permitted by closer cooperation between RIH Coating and Helios as well as the potential partial combination of operations, the company is seeking to acquire a controlling majority share in Helios. Where do you see the biggest opportunities for continued growth of RIH in the coming years? The RIH group seeks to continue to grow and decisively shape development in the sectors of stationery products and industrial coatings as well as the market environment. In order to achieve this goal, focus has been placed on quality and innovation as well as reliability, teamwork, cooperation and fairness. We have strategically, operatively and financially prepared ourselves for the future. While it remains uncertain what the macroeconomic development will be in the years to come, we try to focus on internal optimisation processes in order to hedge ourselves against potential negative external influences.

October 2012

28 FDI Summit 2012 report

Interview: Donald L. Plusquellic, Mayor of Akron, USA

Show the Success For more than 100 years, Akron was the rubber and tyre capital of the world and it is now a centre of research and advanced manufacturing, polymer engineering and biomedical R&D. It is all about taking advantage of the strengths in place but first you need to change the people’s mindset, says Donald L. Plusquellic, Mayor of Akron. By Maja Dragovič How did Akron go from being the rubber and tyre capital to becoming a biomedical centre? It is about taking advantage of the strengths that we have. Our strength initially was polymer, the plastic industry that grew out of the dying rubber industry. The research and development that took place in Akron in developing new products, improved structure, improved characteristics of material and products from something other than raw rubber. That research and development led to many areas of expertise, one of which is biomedical. So, our job was to take the strength that we had coming out of the research and development of the rubber companies and market that to the rest of the world. How long did it take you to change the mindset of people in Akron and were there any particular things that you did to do that? One thing is that you need some victories, you need some success stories that you can talk about to show people and say “look, if we were as bad as you thought, we wouldn’t have attracted this company or we wouldn’t be able to do this project”. Those are important things and sometimes you have to make an extra effort to identify those successes and talk about them so that people can say “oh, I didn’t realise that”. There is much of this world that we go through each day and there are changes that some of us see, improvements, success stories but we don’t talk about it because we don’t think it’s important. I think there are points in time where you have to go the extra mile, do the extra effort to show people the success. I think the second thing, which is more difficult but when you can do it and if you can do it, is to measure your success. By that I mean, in income tax growth which we depend upon in our city, or investment dollars. Last year we did a study that showed for every dollar spent on travelling just within the city boundaries, we get USD 3,984 invested in equipment or new buildThe Slovenia Times

ing in Akron. You need to measure and explain it (the success) in dollars or in terms that people understand. When I became mayor in 1990 there were 15,000 people working in the city centre and there are now 31,000 people working there. If you live in Akron, especially if you are a retired person and you’re not working and you’re not paying income tax, you are dependent on other people working there and helping to pay those taxes so you get the services you need. When we started to identify that and talk about it in real terms, it really changed the mindset of people. Mayors in the United States were left to fend for themselves as cities are not viewed as important. When we started talking about investing in downtowns again, we would always start talking about why the downtown is important. When we started saying that downtown is a place of employment and it pays taxes for

services that you depend on, people understood that. My point is, if you can measure something, measure it and get that information out to show the success.

Businesses here like to blame politicians for not doing something to boost economy. Possibly businesses use politicians as an excuse for not doing enough. Can you relate to that? Absolutely. We have it in our country and we have it in our community. What I was trying to suggest is that public servants, the politicians, the elected officials need to call the bluff of business people. If you (a business person) are so smart and know so much, why don’t you come in and serve as the chairperson to tell us how we can use technology to improve our systems. Why don’t you come in and study our building requirements and see if there are changes we need to make. Why don’t you come in and advise us how we can change the police department and make it more efficient and effective. When we use your expertise we will be better. When businesses are in a community, they have already made the investment, they should be as concerned about their investment and making the rest of the community successful and by bringing their expertise, coming on and serving on a commission to make the community better by making recommendations, that to me is a sincere person who’s making an objective judgement. It’s the easiest thing in the world to just sit back and complain.

READY FOR THE SMART CITY In collaboration with Hella Saturnus Slovenia, Envigence d.o.o. is building a network, which represents an important step in building a Smart City. The basic element of network which will store information is the new street light EN_LED which is a result of Hella’s production. The light which is ready to build a Smart City. What is a Smart City? Smart City is the environment supported by state of the art technologies of smart building blocks and artificial intelligence, the environment which is man, nature and technology friendly. The environment which encourages innovation, new social and business challenges, as well as the environment which is an example of a new paradigm – symbiosis between man, society, nature and technology. What does Smart City bring to its residents? Smart City adapts to the needs, wishes and characteristics of the individual with a goal of increasing the quality of living. There are many modes of interaction and communication with the Smart City. The most significant connected to the network of smart street lights are the following: Monitoring How much energy do lights consume? How much money have we saved? What is the forecasted consumption for the next days? What is the state of the infrastructure when the sensors on the water supply, sewage and heating network are connected to the network?

EnvIgEnCE EnvIROnMEnTAl MAnAgER. Interaction Reducing brightness around housing, switching motion sensors on and off, sending data about errors and events in the proximity through various devices, as well as communication and management of remote devices connected to the network are only some of the activities that affect an individual in the Smart City. Interaction influences the operation of the Smart City.

EnvIgEnCE EnvIROnMEnTAl MAnAgER+. Independent decisions of the system Management and traffic control, where the system automatically carries out optimization, deciding on the most optimal use of energy resources, adapting to the functionality of the user’s wishes, needs and characteristics, predicting the occurrence of complex events, warning of projected errors and problems are only some of the skills of the Smart City. By integrating smart devices into cognitive network capable of learning, memorizing and reasoning, we’re establishing a city which is not only smart, but is also capable of understanding events. Envigence Cognitive Infrastructure. “We are ready, we made a light, which is one of the elements of the Smart City,” say Envigence and Hella Saturnus. “We are ready for the Smart City.”

ENVIGENCE d.o.o. Velika pot 15a, SI-5250 Solkan info@envigence.com www.envigence.com

Hella Saturnus Slovenija d.o.o., Letališka cesta 17, 1000 Ljubljana Tel.: 01 520 33 33 info@saturnus.hella.com www.hella-saturnus.si

30 FDI Summit 2012 report

Interview: Rudolf Klötscher, Executive Vice President Eastern Europe, BSH Bosch and Siemens Home Appliance Group

Help from Abroad Rudolf Klötscher, Executive Vice President Eastern Europe, BSH Bosch and Siemens Home Appliance Group, welcomes the Slovenian government’s initiative to privatise state-owned companies. He believes this will stimulate managers to take more responsibility when running those companies. However, Klötscher warns that the government should also do more to encourage Slovenian managers to return from abroad. By Maja Dragovič end of the day, the positive results are the greatest motivation for those people to follow these standards. You have to work with these standards otherwise you wouldn’t be competitive on the market – the markets will show us the direction. The more we adapt to that, even in the way of thinking, the better it is.

What do you think is the basic difference between Slovenia and the European Union in terms of the crisis? I am convinced Slovenia is not on the level of Portugal or Greece. One problem for Slovenia is the size of the country – the smaller you are, the bigger the challenge to overcome uncertain situations or uncertain financial topics. For instance, BSH has subsidiaries which have a turnover of EUR 10m and a subsidiary which has a turnover of EUR 800m. The subsidiary with the bigger turnover will be able to bear some pluses and minuses more easily than the subsidiary with the smaller turnover. It is the same for Slovenia compared to other countries. Slovenia is small and therefore the challenges are much larger for small countries than for bigger countries. On the other side, its size is a huge advantage because the smaller you are, the more flexible you are. This is why I hope SloveThe Slovenia Times

nia goes back to the things which made it strong because it developed something over the centuries; its success is not something that happened automatically. If now the privatisation process is really going in the direction as planned and the state ownership is reduced, I am quite convinced that more and more people will start taking more responsibility. We had the same issue in Germany. You will never find excellent top managers running a bank where, for instance, the German government owns more than 50 percent. You are arguing that it is important for Slovenian managers to have international experience or to have a lot of foreign managers and foreign companies that would give them that experience. I get the feeling, as a foreigner, that Slovenian society is not accepting of somebody from outside taking over some jobs. Therefore, I guess, to make a bridge for the Slo-

venes, it would be good to bring a Slovene from a foreign country back to Slovenia. I met a couple of Slovenian managers – one is in Russia and one is in the US and they told me “we are highly interested in going back to our country, we now have 10 years of experience outside but under current conditions it is not attractive enough for us. “ What about the Slovenians –excluding the management that work in your company, how adaptable are they to your working system? If you look at our team of people and compare them to other companies also located in the Savinja valley or nearby, our people get home a couple of hours later than the workers form other companies. It’s tough for our people to explain to others why they have to work because the others would say “look, we are at home at 3pm and you get home at 6pm, why are you so crazy to do that”. But at the

Interestingly, most foreign companies in Slovenia are doing well. What is your view on that? I believe it is in the way that you treat employees - you have to treat people in the correct way, you have to take care of them, you have to give them the freedom to develop, the personal skills, you have to pay them on time, you have to give them the opportunity to attend lectures outside to become more knowledgeable and so on. This may not be the practice in some Slovenian companies. If you don’t treat employees properly, then the success will not come. However, this is standard for foreign companies in Slovenia and this might be one of the reasons why they are successful. Does the lower credit rating of Slovenia affect the BSH business in Slovenia in any way? Frankly, no. For sure, no country appreciates getting a lower (credit) rating in terms of credibility, not least because loans are then more expensive. For us at BSH there is no problem because we have our finances internationally managed within our group and we are not dependent on one country. However, due to the lower credit rating (of Slovenia) and as a consequence, lower credibility, high unemployment etc, the mood of the people is changing and this affects us. This is something we have to change: if the people don’t see a proper future, then they are also very careful in spending money. If they are careful in spending money, then there’s no consumption.

FDI Summit 2012 report 31

Interview: Randy Galm, VP EMEA Nuclear Power Plant Business and Project Development, Westinghouse Electric Company

The Right Balance Although the provision of nuclear energy and its safety is subject to increasing scrutiny, demand remains strong and its future secure, argues Randy Galm, VP EMEA Nuclear Power Plant Business and Project Development, Westinghouse Electric Company. By Maja Dragovič Where do you see Slovenia as a nuclear energy provider? I think Slovenia has a great history in operating a nuclear plant for a very long time. I think there is great potential if several factors are present: demand, appropriate government policies, incentives and financial justification. I think Slovenia could continue to add nuclear units and can become an exporter, it could provide support to some of the countries that don’t have any nuclear infrastructure. For example, the Middle East has typically relied upon oil and thermal power. They are looking at nuclear energy now so they can preserve their oil exports. They have no nuclear infrastructure and places like Slovenia could help them develop their infrastructure by training people for example. Nuclear energy is always a tricky subject for the politicians. In Slovenia the talk of the second nuclear plant is a very political issue. How do you think the politicians should present the case to the voters? They are at the very early stages of these considerations for the second unit. The government has an obligation to set appropriate policies and do the right things in terms of balancing the energy portfolio. They have to put the right incentives in place to make it attractive and they have to follow the appropriate process for putting the nuclear plant in place. Communication and outreach to their constituencies is vital for gaining public support for building another nuclear unit, both from the safety and the environmental standpoint as well as the economic standpoint. Slovenia has an opportunity to develop different types of energy such as solar and hydro energy. Do you think that might outweigh the arguments for a second nuclear unit? I think it depends. The renewable energy sources tend to be

very expensive to implement and they don’t provide the base-load of power that you need that a nuclear plant, a thermal plant or a fossil plant provide. So it depends on what the overall long-term energy demand is and how that fits in. You can cohabitate with both – you can have a balance of renewables. In the US, states and various jurisdictions have to implement conservation practices, implement renewable technologies, and yet they need to have continuous energy sources that don’t provide CO2 emissions. So, they can all be balanced together if you have the appropriate mix. The renewables are not going to take the place of a 1100MW power plant. They (renewables) will provide a supplement in different times and they’ll help with smaller facilities but won’t provide base load generation.

We learnt from Three Mile Island, we learnt from Chernobyl and we will learn again from Fukushima and take safety to new levels of performance. That is the ultimate goal – unparalleled safety for the community and the environment. Fukushima was a very unfortunate accident that taught us other things about what we need to be prepared for in our designs and how we have to think about potential accidents. We continue to learn and to make it safer. If anything, the Fukushima plant did exactly what it was supposed to do when the earthquake

occurred – it shut down. The tsunami came in and did something to the generators that caused the real problem. I see a strong market for nuclear energy as we go forward. There are a lot of countries that are now saying they need to have nuclear energy for a variety of reasons. The tsunami was much more devastating to Japan than the nuclear accident at the Fukushima location. While you have an asset that is now destroyed as a result, the loss of life and the tragic impact on the environment was much greater from the tsunami itself.

What would a second nuclear reactor do for the people in Slovenia in real terms? How will it help the economy? If you build a reactor, it will create construction jobs and you will need additional infrastructure. There are also secondary benefits for the area in terms of schools, healthcare, all those kind of secondary activities. It will have an impact on the community just like Krško demonstrated with what is around that facility. We have a philosophy of “we buy where we build” where we try to do as much as we can in the local country itself. We will try and buy the equipment we need in the country where we are building the plant. Assuming there is a qualified construction company in the country, we will use it. We will use as much local labor as we can. Also, to build a nuclear plant you will develop engineers, you will use the university in the local country to train people and develop the white-collar workforce. What is the future for nuclear energy after the Fukushima disaster? October 2012

CompanY

NEWS

source: STA, Slovenian Press Agency

Energy

Sport

Gen-I Enters the Gas Market

Elan Says EU Commission Decision Not Endangering its Operations

New competition from GEN-I has seriously stirred up the Slovenian gas market as the company, formerly only an electricity distributor, has managed to secure a 10% share of the household supply market in a mere two weeks and has forced other distributors to follow suit and cut prices. GEN-I, which entered the market on 13 September with prices that were “15-19% cheaper than the competition”, reported that it had received more than 10,000 applications for a change of gas supplier in the first two weeks and thus has already secured a 10% share of the market for households. Furthermore, it announced it would cut prices by another 10% by the end of the year and that its price for a cubic metre of gas would not exceed EUR 0.3999 by July next year, after which it could be reduced even further. GEN-I, which buys its gas from three “major energy companies from Europe”, stressed that its gas does not cover the potentially unreliable Ukrainian territory. The first to react to GEN-I’s competition was Energetika Ljubljana, which announced on 26 September an initial 10% cut, which it hopes to upgrade by a further 10% in 2013. Energetika Ljubljana, who in 2011 had a retail market share of 7.82%, acknowledged it remained 10% more expensive than GEN-I, but added that it first needed to analyse how many clients it had lost in the past month and wait for the outcome of negotiations with its suppler, Geoplin. Geoplin, which sources gas from Russia’s Gazprom, has been dominating the Slovenian market with a 62.2% share in 2011. It has not yet officially responded to the new developments. With GEN-I estimating that last year’s gas consumption in Slovenia was 120m cubic metres for households and 180m cubic metres for companies, Energetika Ljubljana Director, Hrvoje Drašković, said that “the key is not in clashing over these 300m cubic metres but in expanding consumption”. “I hope the new trader will understand that it needs to accept responsibility and expand the market, including the retail market, or else we will clash with each other,” he said, pointing to a potential transition of users from heating oil to gas. Energy trader Petrol (5.47% market share in 2011 and Petrol Energetika’s 3.23% market share) a day later followed Energetika Ljubljana, announcing a cut of 13%-15% and additional bonuses for the bundled use of its services. The average user of Petrol supplied gas will, for instance, receive around EUR 80 in bonuses a month, which can be used to buy any products, including petrol, at Petrol’s stations. Petrol said it was able to secure the cut as a result of lower gas prices on the market, which are tied to the prices of petroleum products and the USD/EUR exchange rate. It added that negotiations with its supplier, who agreed to cutting prices, also contributed. Energetika Celje (2.57% market share in 2011) and Plinarna Maribor (5.61%) also announced cuts of around 15% and 20% respectively

Banking

Fresh Power at the Top of NLB Janko Medja officially started his term at the helm of Slovenia’s No. 1 bank, NLB, after receiving the approval from the Central Bank on 1 October. Previously the President of NLB’s Supervisory Board, the 40 year old Medja succeeds Božo Jašovič, who stepped down in December last year over disagreements with the state regarding the sale of retailer Mercator. Medja took over the struggling bank the day that parliament was expected to adopt a law setting up a bad bank in a bid to purge the balance sheets of top-tier banks, NLB foremost amongst them, of bad loans. Purging the bank’s balances will therefore be a top priority, but he has said his key task will be to restore the bank’s reputation. The Slovenia Times

Slovenian sports equipment producer, Elan, has said that the demand of the European Commission that it returns the EUR 10m in state aid received in 2008 will not imperil its operations. Elan, whose 2008 capital injection the Commission said was in violation of EU rules, has said that they have not yet received the documents, but have already become acquainted with their content. After a preliminary analysis of the content, Elan feels that the decision is not endangering its operations. The Commission said this that the state-provided capital injection put the company in a favourable position compared to the competition in the EU. An investigation into the injection, which was launched by the Commission in May 2010, has found that while the state had majority stakes in all of Elan’s shareholders at the time, a private company operating under market conditions would not have agreed to the 2008 investment. Since the injection qualified as state aid according to the Commission, the company was expected to follow the EU guidelines and adopt appropriate measures to reduce the impact on the competitive balance on the EU market, but Elan failed to do so. Slovenia, which to date has not dealt with similar cases, has two months to notify the Commission of its planned actions. In such cases funds usually need to be recovered within four months. Elan can appeal against the decision with the European Court of Justice in Luxembourg; the appeal however does not provide a stay of execution. Still, coming as a relief for the company was the decision of the Commission that a previous EUR 10m injection from 2007 was in line with regular market practice, since the state-owned stakeholders acted under the same conditions as Elan’s sole private stakeholder of the time. Elan generated EUR 60.7m in revenue last year and recorded EUR 86,000 profit. The entire group reported EUR 90m in revenue and a loss of EUR 1m. The PDP asset management company, which is the state owner of Elan, for more than a year has been looking for a strategic investor to reduce the state’s stake in the company. Negotiations had been put on hold pending the Commission’s decision, but can now resume.

PoliMaT

Austrian-Slovenian Partnership in Polymer Engineering Austrian PCCL and Slovenian PoliMaT (Center of Excellence in Polymer Materials and Technologies) signed a contract of cooperation in Leoben, Austria. PCCL and PoliMaT finalised the PoliMaT delegation in Austria contract based on their common interest in research and development work with the aim of establishing and enhancing international cooperation between the two institutions. The cooperation will be performed through activities and programmes such as the joint organisation of the Austrian Slovenian Polymer Meeting (ASPM) in April 2013 in Bled (Slovenia) as well as joint research programmes and scientific exchange. In addition, joint educational programmes (e.g. summer schools) are currently in preparation together with renowned institutions from the USA, Germany and Kenya. The signature of the contract took place at the headquarters of PCCL and was joined by the Economic Council of the Slovenian Embassy, Breda Korošec, the President of the Austrian-Slovenian Chamber of Commerce, August Jost, the Rector of the University of Leoben, Wilfried Eichlseder, the City Counsellor of Leoben, Harald Tischhardt and several representatives from the Department of Polymer Engineering and from PCCL.

Bosch and Siemens at IFA 2012 Every year at the beginning of September, Berlin hosts the world’s leading trade show for consumer electronics and home appliances, known as the IFA, where novelties from the world of consumer electronics and home appliances are presented to numerous visitors and business partners. This year, household appliance manufacturers, Bosch and Siemens, presented their energy efficient technology. Invented for life: Bosch

presents groundbreaking energy efficient technology and launches a new series of discussions, the “Bosch Home Forum” For Bosch, the IFA this year was all about research and development for a future that’s thrifty with resources. As Europe’s number one white goods manufacturer, Bosch has a crucial role in energy efficient home appliances and is serious about its obligation to steadily expand its range of resource conserving product solutions. In Berlin, the company presented the latest in energy efficient technology. With the theme “From Lab to Life”, the individual technologies were displayed at test stations to demonstrate how superior research is connected with the actual implementation in households. In this way, Bosch wants to raise consumer awareness of the energy turnaround in households and bring about lasting change in their behavior. The enhanced dialogue with the public was kicked off with the “Bosch Home Forum” series of talks, which premiered at the IFA with the aim of establishing a regular expert forum on topics that affect consumers and their households. The company’s contribution to the success of the energy turnaround in

households was on Bosch’s IFA agenda. Recent studies have determined that the immediate replacement of all home appliances with the most efficient devices available would reduce current electricity needs by 22 billion kWh in Germany alone. At IFA 2012, Bosch presented a comprehensive portfolio of appliances with models that are particularly thrifty with resources. As a result of its continuous research and development efforts, Bosch now has more energy-efficient appliances on offer than ever before, and the top features for lasting quality of life are available in more and more Bosch models. Not only do the energy-saving products make everyday life in the household easier, for the consumer they also represent an investment for an enjoyable future. Bosch’s commitment to continue reducing the energy consumption of its products – thereby showing the way toward the realisation of the energy turnaround in households – is driven by the special position of research and development within the company, which invests about 45% of its R&D funds in the development of sustainable technology. In addition, Bosch is one of the few manufacturers that also produce their white goods in Germany. Themed “From Lab to Life”, Bosch’s presentation at the IFA was a spectacular demonstration of expertise and hands-on technology. Developers from the Bosch team demonstrated the latest technology to interested visitors in experiments to raise their awareness of the topic “energy turnaround in private households”. The future moving in: Siemens gives insight into its smart appliances and the outlook for the networked household

For some time, household appliances have been doing much more than their names imply. The system intelligence integrated into Siemens appliances lets them react to people’s daily needs and enables customised, highprecision solutions that make daily life noticeably easier. With their sensors, Siemens appliances can “observe” a situation – the integrated software ensures that the unit draws the best conclusion in terms of efficiency and effectiveness. The next stage in the development of smart appliances is the networked home: a completely new freedom for organising daily life. At IFA 2012, Siemens provided insight into the system intelligence of its appliances and presented visitors with a refined vision for the future of the networked household in its “House of Innovations”. Fridge-freezers that know the secret of storing fruits and vegetables so they retain their moisture, ensuring maximum preservation. A cooktop that “thinks” with you and keeps heating a pot even after it has been moved. Steam stations that eliminate the need to pre-sort the laundry and automatically set the

optimum temperature to avoid shiny spots on dark fabrics... The system intelligence of Siemens appliances surprises people every day, enabling many high-precision functions that provide valuable support in their everyday life. Today, Siemens appliances offer a range of highly intelligent functionality. Siemens engineers have given them the ability to adapt to changes in the pace and style of life. Intelligent appliances always know what to do; they provide information about their operating status, draw conclusions and work toward specific goals. Siemens appliances “think” and “react” with high-precision solutions that make life easier for people and open new opportunities for them. They make use of their intelligence – while lifting home appliances to the next level.

34 COMPANY NEWS Logistics

Retail

New BSH Logistics Centre in Nazarje

Mercator for Sale Again!!!

The new logistics centre at the BSH plant in Nazarje was officially commissioned for use on Friday, 14 September 2012 at a celebratory event. The State Secretary of the Ministry of Economic Development and Technology, Uroš Rožič, also attended the opening ceremony. The new logistics centre will ensure optimal organisation of internal logistics, eliminate congestion of storage capacity and enable the company to more easily confront future challenges for faster delivery of products to final suppliers. The logistics centre, in the western portion of the plant, extends over a net area of 1000 m2 with the facility’s construction implemented within the scope of the project “Product expansion and diversification of small household appliances” for the purpose of promoting foreign direct investment which is supported by the Government of the Republic of Slovenia.

Logistics/Energy

Hitachi Eyeing Railway, Energy Deals in Slovenia Slovenia needs an efficient banking system to support and develop the economy. The issue of how to achieve such banking system will be set to our guests at the

AmCham Business Breakfast

The event will be held on Thursday, 25 October 2012, from 8 a.m. till 9.30 a.m., at the Austria Trend Hotel Ljubljana, Janus Hall, Dunajska 154, Ljubljana.

The experts and decision makers, who will share their valuable points of view and opinions, will be the following esteemed guests: Mark Batten, Partner in the London office of PwC, who with his extensive experience advised the Government of Ireland and the British Government on the restructuring of banks; Janko Medja, MBA, CEO, NLB d.d., who with his rich experience from many years in banking, recently took on the challenge to manage the largest Slovenian bank; dr. Marko Košak, Associate Professor and Department Chair of the Academic Unit for Money and Finance, Faculty of Economics Ljubljana University, who in his PhD Thesis reflects the effectiveness and the structure of the banking market in Slovenia; dr. Dejan Krušec, State Secretary at the Ministry of Finance of the Republic of Slovenia, who had previously, since 2006, worked in the European Central Bank, in the fields such as stress testing in the bank sectors, capital adequacy of European banking institutions, restructuring and banking solvency. The round table will be led by Nevenka Črešnar Pergar, the Director at NP Consulting and the ING local partner.

Prime Minister Janez Janša met Takashi Kawamura, Chairman of the industrial group Hitachi, to discuss economic cooperation. “We can expect good business cooperation in the future,” Kawamura said after the meeting, mentioning nuclear technology and railways. Janša did not speak to the press after the meeting but his office said in a press release that the talks touched on the potential for cooperation in infrastructure projects, “in particular railways and energy”. Hitachi is a leading supplier of nuclear technology and Slovenia plans to build a second reactor at its Krško Nuclear Power Plant. Slovenia also plans to upgrade its railway network, though the project has been put on the backburner due to lack of funds. Kawamura refused to go into details of the talks, saying only that “nothing specific” was discussed. Kawamura is in Slovenia as the Chairman of the EU Japan Fest Committee, a foundation which is sponsoring several events as part of the European Capital of Culture in Maribor.

The majority stake in Mercator will again be up for sale, after the attempt at selling Slovenia’s biggest retailer fell through at the beginning of the year. Beverage group, Pivovarna Laško and several banks have agreed to sell a combined 55.92% share. Apart from the Pivovarna Laško group, which holds the largest 23.34% share, the consortium also includes the 10.75% share of state-owned NLB bank and banks NKBM, Gorenjska banka, Abanka, Banka Koper, Hypo, Banka Celje, investments fund NFD 1 and NFD Holding, and Prvi faktorFaktoring Beograd. According to the draft sales contract, the stakeholders believe that the consortium will enable them to get the best price. They have decided that the sale will again be handled by the Londonbased ING bank, who managed the last sale attempt. If ING does not receive any binding offers that the consortium considers appropriate within three months after the signing of the contract, the consortium will be dissolved. The companies from the consortium, except for Prvi faktor-Faktoring Beograd, tried to sell a joint 52.1% stake at the end of 2011/beginning of 2012 but the sale to Mercator’s rival Agrokor from Croatia, which offered EUR 221 per share, fell through.

Mercator selling saga continues

Chemicals

Austrian Ring International Holding Eyeing Helios

The American Chamber of Commerce – AmCham Slovenia and the United States Embassy in Slovenia organize the

Election Night.

on November 6th and November 7th at Festivalna dvorana.

The hosts of the event will be H.E. Joseph A. Mussomeli, the Ambassador of the United States of America to the Republic of Slovenia and Matej Potokar, the President of the American Chamber of Commerce AmCham Slovenia.

The Slovenia Times

Ring International Holding, an Austrian industrial group, has officially entered the bidding to acquire a majority stake in coating maker, Helios, by signing a non-disclosure agreement. It wishes to acquire a majority stake in the Slovenian company. A 73% stake in Helios was put up for sale on 7 September by a consortium of shareholders that includes banks, funds and insurance companies, some of which acquired the stock as collateral from the bankrupt church-owned Zvon Ena Holding. The Vienna based Ring wants to acquire Helios in a bid to reap “significant and tangible synergies”. The company said it is a strategic investor and supports the long-term development of its subsidiaries. Ring, which specialises in stationery products and coatings, wants to make Helios the leading company in its coating division, RIH Coating. The group has 30 companies, including Slovenia’s Niko Železniki and about 1,300 employees in 47 countries worldwide. Helios is traded on the Ljubljana Stock Exchange but is not a very liquid stock. Its market capitalisation currently stands at EUR 139m

DIPLOMATIC SOCIETY 35

EMBASSY DIARIES Dutch Embassy

US Embassy

Orange Bike Tour

Project R.E.M.: Clean Energy Music

The Dutch embassy held an ‘Orange Bike Tour’ on 19 September as part of European Mobility Week. The team from the Embassy, including Ambassador Jos Douma (pictured third from left), rode their orange bikes around Ljubljana promoting pedal power. They stopped at the Ljubljana Town Hall where they were greeted by Jelka Žekar and Aleš Čerin, Deputy Mayors of Ljubljana. On the orange Big Fish bikes of Studio Moderna, they visited the information stands on the “Cycling circle” set up for European Mobility Week where they learnt about safety precautions such at the importance of wearing helmets and traffic rules for cyclists in the city. With these types of activities the Netherlands Embassy is supporting Ljubljana in its efforts to introduce a modern urban mobility concept in the city.

The Embassy of the United States of Ljubljana culminated an ambitious cultural and environmental program with a huge six-hour public concert in Ljubljana’s Kongresni trg. The concert drew over 10,000 people listening to Elvis Jackson, N’Toko, Siddharta, Vlado Kreslin and The Bambi Molesters, The Tide, Polona Kasal, Toronto Drug Bust, Narat, Lollobrigida, Murat & Jose, My Buddy Moose featuring Chris Eckman and Severa Gjurin playing their versions of the R.E.M. songs. They were also treated to an amazing dance performance by Kjara’s Dance Project. The theme of the concert was raising awareness about environmental issues. Some Slovenian “green” NGOs had the chance to present their activities with stands on a side of the music performances. A video, set to the music of “We All Go Back To Where We Belong” premiered on MTV Slovenia was also part of the “Project R.E.M.” - featuring Kjara’s Dance Project dancers performing in Tivoli and Lake Cerknica highlighting the fragility of nature.

Bulgarian Embassy

Cultural Opening ECOC On 5 September, as part of the 2012 European Capital of Culture in Maribor, Color and Form the joint exhibition of the Bulgarian sculptor Zhivko Sedlarski and artist Deni Ormanova, opened. The exhibition marked the official opening of the Bulgarian cultural embassy, which was jointly arranged by the Public Institute Maribor 2012 - European Capital of Culture and the Embassy of Bulgaria. Bulgaria is among the 20 embassies in Ljubljana who have established their cultural representation for the European Capital of Culture. Ormanova and Sedlarski are well established artists exhibiting independently and for the fifth consecutive year, they are holding joint exhibitions outside Bulgaria, where their names are well known, including in 2011 an exhibition in the gallery of the Council of Europe in Strasbourg. Ormanova, an economist by training, studied in Sofia, Moscow and Bratislava and is fascinated by exotic lands. Some of her paintings which are on display in Maribor reflect her journey through Singapore. Her works are included in private collections in the U.S., France, Slovakia and Turkey amongst others. Sedlarski is one of the most famous Bulgarian sculptors and has spent more than 15 years living and working in French Brittany. Women are at the heart of her creative attention. At the opening guests were addressed by Ambassador Philip Bokov, which was also attended by Dr Suzana Žilič Fišer, Director General JZ Maribor 2012; Tomaž Kancler, Deputy Mayor, City of Maribor, representatives of the diplomatic community in Ljubljana and members of the Bulgarian community. The opening of the exhibition was accompanied by Bulgarian music duo Pestrushev (clarinet and cello).

US Embassy

Armour of Freedom The Park of Military History Pivka in cooperation with the American Embassy, Military Museum of the Slovenian Armed Forces and the Municipality of Pivka opened the exhibition dedicated to the U.S. military support to Yugoslavia in the 1950s.

US Embassy

Take Care: Inspiring People to Care about our Planet On 5 September the grand opening of the photo exhibition “Take care – Inspiring People to Care about our Planet” in Tivoli Park happened. The exhibition, prepared by the U.S. Embassy, National Geographic Slovenia and Ljubljana Tourism will be on a display until 7 December 2012. The exhibition features photographs from the United States of America and Slovenia, sharing rich and diverse landscapes.The opening event featured a fashion “PullOver games” which featured 18 outfits designed by the team at Young@Squat. Young designers played with the concept of recycling and created amazing clothes from recycled materials.

Germany Trade & Invest (GTAI) is the economic development

agency of the Federal Republic of Germany. The organisation combines the analysis of foreign markets with the knowledge of Germany’s key industries and investment landscape. With 60 experts internationally who cooperate closely with the global network of German Chambers of Commerce (AHKs), GTAI supports international trade with comprehensive, industryspecific market information. It utilises wide-ranging global expertise and a competitive consulting profile for foreign investors, placing a special focus on the economic development of the new federal states (eastern Germany) and Berlin.

Germany Trade and Invest Friedrichstraße 60 10117 Berlin, Germany T. +49 30 200 099-814 F. +49 30 200 099-101 info@gtai.com www.gtai.com

October 2012

Dine

wit h St yle Valvas’or Restaurant Stari trg 7, Ljubljana Tel: +386 1 425 04 55 info@valvasor.net www.valvasor.net Open Mon-Sat: 12pm – 11pm

Valvas’or Restaurant

Price range 40-55 EUR (4 or 5 dishes) Reservations recommended

Located in the prestigious historic area of Ljubljana, Stari Trg, you will find Valvas’or restaurant. Opened in 2008 Valvas’or has slowly come up the ranks as one of the city’s finest dining experiences. I was excited when I got the call to come and review it. My companion for the evening was Justin Young of Slovenia Estates. Justin often takes foreign clients to local eateries and I was curious to get his opinion too. By Jade van Baaren I was instantly impressed by the interior design of the restaurant. It was contemporary in its design with rich brown leather booth seating on one side that encased the whole back wall. An exciting perforated gold metal sheet lay along most of the opposing wall. The perforated holes were smartly designed to create a map of the city and the actual street of Stari Trg. However, I must say that I was a bit sceptical once seated in the restaurant. I was sharing these concerns with Justin. I so often find in local restaurant that the scale between design and food do not often come to a balance. I have been in many situations when I have been thrilled with the interiors and hugely let down with the meal or been thrilled by the culinary experience and yet longed for a more atmospheric venue. Nonetheless, I am very excited to say that Valvas’or is as accomplished in its design as it is in their food! Halleluiah! We started our evening with a Slovenian specialty, a Teran sparkling wine that originates from Karst; it has an attractive ruby colour with traces of blackberry and redcurrant aroma. It was my first time having a Sparkling Teran and both my guest and I agreed it’s was fantastic. It can be deceiving because of its ruby red colouring, very low in tannin and refreshingly light to the pallet. Not what you expect from a glass of red. With a short introduction from our manager we left the menu selection in his more than capable hands and got back to more pressing issues, finishing our delicious sparkling wine! My father always told me growing up that you can judge a restaurant by the bread they serve and its toilets. If this is an accurate assessment then, Valvas’or came up champions on both. The mini brioche rolls were still warm, light, and airy with a buttery silky texture. My visit to the lady’s room was just as memorable. Sleek black tiles with ambient lighting and minimalist décor. Feeling refreshed and ready for more, our first course appeared. Adriatic tuna tartar with a tangerine foam and blood orange The Slovenia Times

Aperol jelly. The tartar was finished with a drizzle of local olive oil and fresh cracked white pepper. The tangerine foam was subtle and added just the right amount of essence to the dish without over powering the tuna. Gorgeous. The dish was paired with a Malvazija, a graceful, floral wine brimming with tropical grapefruit characters and a gentle note of peach. The prefect paring. My partner had the dried Karst ham with melon and olive tapenade. Simple and using only the best ingredients it was faultless. This was by far the best “prosciutto crudo” I have had in Slovenia and I would love to know their supplier! I thought that the olive tapenade was such a clever accompaniment to the ham. I am often served olives with this dish although the tapenade just makes everything, a little more interesting. Our waiter soon serves us twin steaming bowls of two local styles of pasta. To begin with, was the homemade Istrian style pasta with truffles. Thin sheets of pasta hand rolled to resemble a cone. It is served with an exquisite, delightful truffle sauce. On many occasions I have had this traditional Istrian dish, however in the past I have always had it served in a heavy creamy sauce and it can tend to takes away for the aromatic flavors of the truffle. Valvas’or’s variation of this delicious dish does not add cream. They incorporated

Top choice Smrekarjev hram Nazorjeva 2, Ljubljana T: +386 (0)1 308 19 07 smrekarjev.hram@gh-union.si www.gh-union.si Open: Every day from noon till 11 p.m. In Issue 144

Restavracija Proteus Titov trg 1, Postojna T: +386 (0)81 610 300 info@postojnska-jama.si Open: Monday to Sunday: 8am – 10pm In Issue 145

Restavracija MAK Osojnikova ulica 20, Maribor T: +386 (0)2 620 00 53 info@restavracija-mak.si www.restavracija-mak.si Open: Monday to Saturday: 11.30am – 9.30pm In Issue 148

the creamy texture by adding rice cream and therefore not mellowing the flavors of the truffle. The truffle had more of a predominant presence in the dish because of this. My theory is when ever cooking with truffles, don’t over complicate, the truffles are perfect just the way they are! The wine served with this dish was Scurek Pikolit, this wine is full-bodied, harmonious and warm with a long creamy aftertaste. The acidity broke through the buttery flavours of the sauce and helped the truffles sing out more. Prefect pairing. Our second pasta dish was Žlikrofi, also a national dish of Slovenia, made from dough with a potato filling and shaped into characteristic parcels. The žlikrofi was served with a morel mushroom sauce. It was so rich in flavors and using the morels in this dish was pure genius. The sauce resembled a mushroom demi glace, rich, earthy and full of flavor. It was truly the perfect partner to this pasta. Still enjoying my truffle high and completely sadden by it disappearance, I was elated when my next dish of fillet of sea bass served with a truffle “tartufato” sauce appeared. As I have said, I am always just looking for the perfect vehicle for my truffles. The sea bass was steamed and served on a sliced poached potato. It was simple and fresh, the fish was fantastic and the truffles, as always hit the spot. Long live mushroom season!! Justin had the young lamb cutlet with a potato mozaic and a medley of vegetable florets. After invading his space with my fork and knives I as rewarded with some of the best lamb I have had in this city, perfectly cooked. In my opinion, I did feel that the dish lacked a bit in the balanc-

ing of flavors. I think that it would have benefitted with an acidic component, be it berries, herbs or tree fruit, It just need something to help bring the flavors to the front of my pallet. However with that aside we did manage to finish both our plates, with a smile. For dessert we were served Pear mozaic with a white chocolate sauce. This dessert did not work for me. I am not a big fan of white chocolate and the shaved raw pear seemed a bit random in the mix. However, we were also served the Valvas’or cake. It was a layered cake filled with chocolate nut mouse, soft meringue and a sponge cake base. This was right up my ally! It was rich and creamy with a bit of a crunch from the hazel nuts, all topped off with a soft meringue (there is no other meringue in my opinion!). It was stunning and a great way to end a fantastic evening. Valvas’or got the balance right. It is visually a stunning space with a very creative design. It is intimate but with a sense of bustle and excitement around you. The booth seating is very comfortable and also gives you a retreat and an impression of space. It is definitely a hub for locals and foreigners who are there entertaining clients and larger parties. The restaurant is set up perfectly for larger tables, they have managed to create an intimate setting for large parties who still feel like they are part of the dining experience. If you are not acquainted with Slovenian wines, do not hesitate to ask the sommelier. He selected all our wine and did an excellent job. They also have the best lunch special in town. For value and quality you can’t beat it! I am already planning my next date night to be at Valvas’or.

Restavracija Maxim Trg republike 1, Ljubljana T: +386 (0)51 285 335 maxim@mercator.si www.maxi.si/maxim/ Open: 11am – 11pm, Saturday, Sunday by prior arrangement In Issue 149 JB logo 4/15/08 4:32 PM Page 1 C

CY CMY

JB Restaurant

Miklošičeva 17, Ljubljana Tel: +386 (0)1 430 70 70 restavracija.jb@siol.net, www.jb-slo.com Open: Mon-Sun, 11am – 11pm Sat, 5pm – 11pm In Issue 150

Otočec Castle Restaurant

Grajska cesta 2, Otočec Tel: + 386 (0)7 384 89 00 booking.grad-otocec@terme-krka.si www.castle-otocec.com Open: Every day until midnight

Composite

In Issue 151

Gostilna Na gradu

Grajska planota 1, Ljubljana Tel: + 386 (0)8 205 19 30 info@nagradu.si www.nagradu.sic Open: Mon to Sat: 9am – midnight, Sun: 9am – 6pm In Issue 152

Promenada Gourmet Restaurant

Cesta svobode 15, Bled T: +386 (0)4 579 18 39 restavracija.promenada@hotelibled.com www.sava-hotels-resorts.com Open: 12pm – 10pm (summertime till 11pm) In Issue 153 133

Valvas’or Restaurant

Stari trg 7, Ljubljana T: +386 (0)4 579 18 39 info@valvasor.net www.valvasor.net Open: Mon to Sat: 12pm – 11pm In Issue 153

October 2012

experience

Plaza Hotel Ljubljana

Big in Size and in Standards

Plaza hotel is set to become Ljubljana’s congress hotspot in a matter of months owing to perfection in every aspect - from visual aesthetics to culinary experiences. Furthermore, Plaza‘s location puts it both in the centre of Ljubljana’s commercial activity and within reach of its historical centre.

The Slovenia Times

There’s something special and mysterious about Plaza on first sight. Its monolithic exterior, decorated with a series of intersecting white lines make it look more like a corporate building than a hotel, but only from a distance. The absence of “kitschy” decoration and blaring signs “Hotel Here” is a reminder that we are entering a place where high service standards need no introduction. It is a hotel, set on the city outskirts, that should primarily attract business people but for a number of reasons it has proven to be no less appealing to other sorts of travellers also.

Plaza hotel Ljubljana Bratislavska cesta 8 1000 Ljubljana, Slovenia T: +386 1 243 00 00 info@plazahotel.si

www.plazahotel.si

Business first Plaza’s primary aim is to fulfil the demands of the congress and business segment. Its top floor houses adjustable congress halls, with capacity of up to 120 people, which can host events for demanding groups. Cosy, well equipped and nicely arranged halls with some sweeterners such as customisable colour lightning may not make this congress centre the one and only but the real competitive edge in this sense comes in the totality of everything this hotel offers within and on the side. The majority of the hotel rooms are essentially superior meaning they all have a comfortable 27.5m2, there are also 25 junior suites, two business suites and a 155m2 executive suite. In all, 236 guest rooms, more than any other hotel in Ljubljana. The panoramic element, exposing the magnificent view of the Ljubljana basin, is omnipresent - in elevators, rooms, glassy conference halls and the terrace which serves as an attractive social place. The hotel rents the terrace to groups and they certainly wouldn’t turn you down if you are organising a gathering. In fact, Plaza has become increasingly popular for celebrations and weddings. It’s all there: great ambiance, great views and great catering.

Four seasons of delicious food Plaza’s hotel restaurant is there to please the demands of all its guests. The kitchen is universal and ready to adapt to culturally specific demands but at the same time, tries to present something local in the best possible way. Plaza’s chef offers a set of local specialities based on seasonal ingredients and there is also a selection of predominantly Slovene wines. Anyone who is a little familiar with Slovenian viticulture knows they should be the obvious choice. The hotel restaurant might also surprise you with special promotional events with the best winemakers in the country.

top priority for all the equipment from the elevators to the TV systems. In daily operations they are working on minimising its environmental footprint by separating waste, use of environmentally friendly cleaning supplies and recycled paper products. In addition, the hotel is encouraging its guests to adapt their habits in accordance with environmental efforts.

A good neighbourhood Plaza is situated straight off the Ljubljana ring road, within the BTC complex, a notorious place for shopping and trading. That’s why it has also become popular with shopping tourists. Additionally, any kind of entertainment you can imagine is only a minute away. This is also the reason why, with the exception of a fitness studio, there are no wellness facilities inside the hotel. Instead, all hotel guests are granted free entrance to Atlantis, a waterpark and sauna complex situated right next door. In terms of accessibility, Plaza offers transfers to Ljubljana centre for EUR 5 and the airport is only EUR 20 away. This is in the price range of the cheapest taxi services only in this case you get a luxurious ride in a BMW. Needless to say, there’s an abundance of parking spots in the hotel garage, accessible by a car elevator, yet another fascinating feature in a hotel with minimalist design but generous offers. And remember - autumn is the time for good deals! Plaza is a superior lodging, food and meeting facility. It is also the tallest hotel in Slovenia so set your expectations high!

Sustainable and environmentally friendly The hotel building was designed with energy efficient principles which was a October 2012

40 EVENTS Pop

Neomi Tue 23 Oct, 8.30pm, Cankarjev dom, Ljubljana, EUR 11–14 Comprised of Saša Vipotnik, vocals, Tadej Košir, guitar, Jernej Kržič, bass, Erik Marenče, keyboard and Anže Žurbi on drums, the band Neomi plays original music characterised by remarkably sincere and poetic lyrics and a wonderful sense of melody. Their Poglej (December 2011) album features urban pop music tinged with soul. Some of their influences are Norah Jones and Adele.

Metal

Accept Thu 25 Oct, 8pm, Kino Šiška, Ljubljana, EUR 21–27 With their brutal, simple riffs and aggressive, fast tempos, Accept were one of the top metal bands of the early 1980s and a major influence on the development of thrash. Led by the unique vocal stylings of Udo Dirkschneider, the band forged an instantly recognisable sound and was Slovenia times 2010.ai

notorious as one of the decade’s fiercest live acts. Despite recording two of the best heavy metal albums of the decade in Restless & Wild and Balls to the Wall, Accept remained too heavy and extreme for American audiences. Following disbandment in 1997 and resurrection in 2005, they reunited in 2009 with former T.T. Quick frontman, Mark Tornillo and released their highest charting album to date, “Blood of the Nations”.

Dance

Michael Flatley’s Lord of the Dance Thu 25 Oct, 8pm, Dvorana Tivoli (sports hall), Ljubljana, EUR 26–45 Fri 26 Oct, 8pm, Dvorana Tabor, Maribor, EUR 25–39

11.10.2012

13:44:46

The dance and music spectacle Lord of the Dance by the Irishborn American dancer and choreographer, Michael Flatley, ranks amongst the world’s bestselling dance productions. It tells the story of a Little Spirit who travels through time and helps the Master of Dance protect his people from the Master of Darkness. The show features a masterly combination of excellent music, choreography and lighting and pyrotechnic effects.

Fri 26 Oct, 9pm, Kino Šiška, Ljubljana, EUR 12–18 Channel Zero & Kino Šiška present one of the most gripping representatives of the global surf scene, Sofa Surfers, the socalled Austrian “gods” of mixing electronics with rock. They are presenting their latest album “Superluminal” (Monoscope Prod., 2012), which was released on 14 September. The egalitarian music collective was formed in autumn 1996 by the like-minded Wolfgang Schlögl, Markus Kienzl, Michael Holzgruber and Wolfgang Frisch, whose efforts in music immediately adopted the DIY manner.

Sat 27 Oct, 9am, Kino Šiška, Ljubljana, Free admission

CMY

RDS-TMC The Slovenia Times

National radio traﬃc service

Keane Mon 29 Oct, 8pm, Dvorana Tivoli (sports hall), Ljubljana, EUR 27

Sofa Surfers

ARTish

Pop

Rock

Art market

Kranj 89,0 Novo mesto 105,5 Maribor/M.Sobota 102,8 Ljubljana 100,8 Bled 100,4 Postojna 107,7 N.Gorica/Ajdovščina 96,7 Tolmin 101,3 Koper 94,6 Trojane 105,5 Ribnica, Kočevje 91,5 Dravska dolina 103,9 MHz in 107,1 Celje 91,1 Krško 93,4 Portorož 102,0 Velenje 104,1 Črnomelj 107,7

km), a half marathon (21 km) or various shorter recreational races. All the races will be held within the wider city centre area.

Now taking place in the centre for urban culture, the festival’s colourful living room will again have creativity as the “official language”. In this its fifth event, the festival will again present a number of select Slovenian creators and their unique works that will also be on sale. The diverse programme will be complemented by creative workshops for adults and children alike.

Sport

Ljubljana Marathon Sat 27 Oct–Sun 28 Oct, Streets of Ljubljana, Ljubljana The Ljubljana Marathon is a mammoth celebration of running with nearly 18,000 runners from 35 countries participating. The Ljubljana Marathon is gaining more popularity each year and the number of participants is on the increase. This year, competitors can run the classic marathon (42

The Ljubljana concert by Keane, one of the most popular British rock bands, will be part of the band’s tour promoting their new album Strangeland. Keane have been a success since 2004 when they rose to international fame with their album Hopes and Fears, the second best-selling British album of the year. Their greatest hits include Bend & Break, Everybody’s Changing, This Is the Last Time, Is It Any Wonder, Somewhere Only We Know and Disconnected.

Pop

The Pains of Being Pure at Heart Tue 30 Oct, 9pm, Kino Šiška, Ljubljana, EUR 12–18 The New-York based indie-pop heroes are visiting Ljubljana on the wings of their widely praised second album ”Belong”, which was produced by the superpower team Flood (Depeche Mode, U2) and Alan Moulder (Smashing Pumpkins, Jesus and Mary Chain, Ride). Do The Pains of Being Pure at Heart belong? After garnering widespread acclaim from the media, the simple answer to that question would be YES!

Classical

Anna Netrebko Tue 30 Oct, 7.30pm, Cankarjev dom, Ljubljana, EUR 65–195 Anna Netrebko is no longer just the darling of the opera world: she is enchanting audiences across the globe while continuing to cultivate the respect and admiration of opera’s most devoted and demanding fans. Her beautiful, dark, and distinctive voice, together with her elegant and alluring stage

EVENTS 41

Rock

Caspian Sat 3 Nov, 9pm, Channel Zero, Ljubljana, EUR 12–15 Caspian is an instrumental post-rock band from Beverly, Massachusetts. Caspian loosely formed in autumn 2003, developing material in their first year, recording a demo in May 2004 and performing a small number of shows in late 2004 and early 2005, including as support for the Japanese post rock band, Mono. They have thus far released three full length studio albums. They will be supported by Thisquietarmy from Canada and Tides From Nebula from Poland.

Slovenia Times recommends

Jan Garbarek Group with Trilok Gurtu Jan Garbarek, one of the most recognisable saxophonists in Europe and on the planet, returns to Slovenia as part of his European tour to perform his new set list in the company of excellent musicians! Over several decades of tireless creativity, Garbarek’s sound has become the “trademark” of the famous fortress of European jazz - ECM Records. Thanks to the intense cooperation with Keith Jarret, the Norwegian saxophonist soon joined the very elite of modern jazz. Appearing side by side with the great names of American jazz, his name is primarily related to the birth of the original European sound in jazz. In the early 1970s he began recording for the ECM label and gained wider recognition through his work with pianist Keith Jarrett’s European Quartet, which released the albums Belonging and My Song. In the 1980s Garbarek’s groups included the bass player, Eberhard Weber and often guitar players, Bill Frisell and David Torn. In 1993 he worked with the Hilliard Ensemble vocal quartet and recorded one of his most popular albums. This was followed by the Visible World album in 1995 and Rites four years later.

Photo: Gert Rickman-Wunderlich

presence, have prompted critics to hail the Russian soprano as “Audrey Hepburn with a voice,” and “a singer who simply has it all: a voice of astounding purity, precision, and scope, extensive dynamic and tonal range, imagination, insight, and wit – all combined with dazzling charisma that makes it all but impossible to look away when she is performing.”

In 2009, Jan Garbarek released his first live album Dresden. The double album, recorded in 2007 in the eponymous German city, serves as telling proof of Garbarek’s forceful performance and improvisational ability. On the current tour Garbarek will be accompanied by exceptional musicians, the same line-up that performed in Šiška on their first visit in March 2010: the pianist Rainer Brüninghaus, who has worked with Garbarek for a number of years, the Brazilian bass player, Yuri Daniel and the great Indian percussionist, Trilok Gurtu.

Wed 21 Nov, 8pm, Kino Šiška, Ljubljana, EUR 32–35

Classical

Grigory Sokolov Mon 5 Nov, 7.30pm, Cankarjev dom, Ljubljana, EUR 13–28 Grigory Sokolov came to international attention after winning the 1966 International Tchaikovsky Piano Competition in Moscow at the age of 16. Since then the world has known “a kind of pianism, musicianship and artistry one thought had vanished forever”. Championed at a young age and a prominent figure on the Russian music scene since his early teens, Grigory Sokolov has gained an almost mythical status amongst music lovers and pianophiles

throughout the world. He is considered by many today to be the world’s greatest living pianist.

Exhibition

Anophthalmus Hitleri Fri 9 Nov–Sat 1 Dec, Salon 2012, Maribor, Free admission Jasmina Cibic works across a range of media including photography, performance, installation and video. Over the past decade she has concentrated these practices into site-specific interventions that measure the

relationship between space and its promise/production of experience. Cibic is interested in the contingencies of geo-political identity, she imagines tourism as a perpetual state of being. In her new project, Jasmina Cibic investigates two key moments within the construction and survival of national icons and their myths, namely their invention and the chosen architectonic context that channels their perception towards the spectator/audience.

Rock

Brit Floyd

Fri 9 Nov, 8pm, Hala Tivoli, Ljubljana, EUR 27 In less than one year the new Brit Floyd phenomena was embraced by Pink Floyd fans worldwide, and acclaimed for their note-fornote perfection, unique Floydian animation and state-of-the art sound & lights. The show will come to Ljubljana on 9 November. Brit Floyd, the Pink Floyd tribute band from the UK, was formed in 2010. The group has already toured worldwide making a name for their performances, which include spectacular projections, lights and animation, based on the famous Pink Floyd concert tours. The group consists of 13 members

October 2012

42 EVENTS who deliver superior performances and an authentic atmosphere.

Rock

Rockers Sing Poets Sat 10 Nov, 5pm, RTS Television Studio, Maribor, Free admission “Rockers Sing Poets” is a wellestablished music and literature project that has experienced three literary editors, two home institutions, and a vast array of musical acts. The project will be held in 2012 regardless of the social crisis and will be dedicated to its home town, Maribor. The events will enrich the cultural aspect of the European Capital of Culture with its distinct singersongwriter character and spice up the project with an experimental approach to joining what seems to be impossible: poetry and popular (or less popular) music.

Rock

Steve Vai Tue 13 Nov, 9pm, Cvetličarna, Ljubljana, EUR 30–35

Grammy award winner, king of kora and co-leader of AfroCubism, Toumani Diabaté will present his internationally acclaimed band to Slovenian audiences for the first time. Born into a family that boasts thirteen generations of kora masters, Diabaté likes to point out that his music precedes Bach. He achieved fame, together with the late Ali Farka Touré and has been enjoying it in diverse international projects and his own band, which released a highly successful album, Boulevard de l’Independence. Apart from exquisite playing, Toumani Diabaté also prides himself on his stage charisma and communication.

Rock

Godspeed You! Black Emperor vs Dirty Three Wed 14 Nov, 8pm, Kino Šiška, Ljubljana, EUR 20–27 Kino Šiška and Channel Zero are proud to present an exclusive double bill with two of the grandest phenomena of post rock. Same day, same stage – the flag bearers of the Canadian Constellation post-rock scene Godspeed You! Black Emperor and the exceptional Australian instrumental trio Dirty Three under the baton of Warren Ellis, otherwise the first beard of Grinderman! A unique collision of two deities of instrumental rock, this year only to be seen in Kino Šiška!

Classical

World

Toumani Diabaté Tue 13 Nov, 8pm, Cankarjev dom, Ljubljana, EUR 19–32 The Slovenia Times

Dream of the Year Thu 15 Nov, 7.30pm, Cankarjev dom, Ljubljana, EUR 6–19 Ligeti’s work ‘Lontano’, composed in 1967, not only became part of the standard repertoire of symphony orchestras but also found its way into the hearts of Hollywood directors. The Slovenian composer, Brina Jež Brezavšček, started composing the cantata, ‘Dream of the Year’ in 1980: the cantata is the musical rendition of a poem by the same name written by Gregor Strniša. This year, the Photo: Tone Stojko

Six-string wizard Steve Vai, along with his one-time teacher Joe Satriani, set the standard for rock guitar virtuosity in the 1980s. Born on 6 June 1960 and raised in Carle Place, New York, Vai became interested in the guitar and upon starting high school, took lessons with an older player from the school, Joe Satriani. Vai transcribed several of Frank Zappa’s most technically demanding compositions for guitar and even sent a copy of one such transcription, “Black Page,” to Zappa himself. Zappa was so impressed with the young guitarist that upon meeting him, he invited Vai to join his band.

composer decided to revise and finalise the piece. The song, ‘Zima’ (Winter), the last song in a cycle of four, is a completely new addition. The second part of the concert will be dedicated to a fantastic piece by Miklós Rózsa.

Rock

Garage Explosion Fri 16 Nov, 8pm, Pekarna Cultural Centre, Maribor Dirty sounds, shrill vocals, and uncompromising rock n’roll are the main focus of the “Garage Explosion” music festival. The festival has a distinct cultural identity and influenced contemporary rock culture in Slovenia and the nearby countries when it first began. The event is a compilation of the subcultural events of which Maribor takes pride. It has re-established the once close ties between individual rock centres in exYugoslav countries, and makes new connections with European ones. The musical acts include experienced artists from abroad and young Slovenian groups.

to the music of its own time. Its sound has been shaped by numerous outstanding conductors, most recently deeply marked by M. Franck and especially W. Weller, who launched a series of cycles devoted to the music of the classical giants.

Classical

Dalibor Miklavčič Wed 21 Nov, 7.30pm, Cankarjev dom, Ljubljana, EUR 7–16 Organ and harpsichord player, pianist and master of improvisation, Dalibor Miklavčič, navigates effortlessly between eloquent expressiveness and immaculate, virtuosic technique. Critics and audiences alike are impressed by this charismatic artist’s innovative approach to programming and his direct, focused and poetic playing and inexhaustible imagination.

Metal

Kreator Wed 21 Nov, 8pm, Cvetličarna, Ljubljana, EUR 29–32

Rock

Eric Gales Sat 17 Nov, 8pm, National Hall, Maribor The international festival Izzven - Jazz Festival Maribor has been presenting contemporary musical production from all around the world from its beginning in 2000; the festival showcases music predominantly from the creative tradition of jazz and ethnic music whilst mixing it with contemporary influences. The focus is firmly on the innovative, up-to-date and provocative approach of the musicians. The evening will feature the talents of Eric Gales, who will be paying tribute to Jimi Hendrix’s 70th birthday.

Classical

National Orchestra of Belgium Mon 19 Nov, 8pm, Cankarjev dom, Ljubljana, EUR 20–56 Since its establishment in 1936, the National Orchestra of Belgium (National Orkest van België / Orchestre National de Belgique) has given passionate performances of the great classics of the symphonic repertoire, while also bringing the same vigour

Arguably the most influential and successful European thrash metal band ever, Germany’s Kreator is also by far the most enduring. Kreator fused Metallica’s thrash innovations with Venom’s protoblack metal imagery, sparked it with Motörhead’s balls-out velocity and capped it off with the nihilistic outlook typical of heavy metal since the seminal days of Black Sabbath. Kreator’s career also mirrored speed metal’s rising and waning fortunes: going from strength to strength throughout the 1980s, only to fall on hard times in the 1990s. Now seemingly reborn, Kreator are certified worldwide superstars who still tour frequently.

Ballet

International Gala Ballet Concert & Gaudeamus Gala

EVENTS 43 Wed 21 Nov, 7.30pm, Slovene National Theatre, Maribor The International Gala Ballet Concert & Gaudeamus Gala, one of the most prominent ballet events of the year, will turn the Grand Hall of the Slovene National Theatre Maribor into a magical display of the finest ballet from the vaults of classical and modern ballet masterpieces, which never fail to impress with their originality. In addition to the international stars of ballet from 10 countries, who regularly enthral audiences around the world with their breathtaking mastery, the event will also feature young European ballet dancers who are beginning their undoubtedly successful careers.

Jazz

Chick Corea Trio Wed 21 Nov, 9pm, Lent Festival Hall, Maribor, EUR 28–35

Chick’s newest member finds himself in the company of a stellar rhythm tandem: bassist Christian McBride (Sting, Pat Metheny, McCoy Tyner), one of the most outstanding and celebrated musicians of his generation, and drummer extraordinaire Brian Blade (Herbie Hancock, Bob Dylan, Joni Mitchell and longstanding member of the Wayne Shorter Quartet). This trio formed the rhythmic backbone of the Five Peace Band on its tour of Asia and America in 2009.As a trio, they’ll take up the musical dialogue that started there – dynamic, deeply interactive and irrepressibly swinging.

Rock

Mark Lanegan Band Sun 25 Nov, 8pm, Kino Šiška, Ljubljana, EUR 22–25 Mark Lanegan, one of the most prominent vocals and personalities in the Seattle grunge scene rose to fame with his main band Screaming Trees, with whom he released seven albums. Despite never having reached the commercial success of Nirvana, Pearl Jam, Alice in Chains and Soungarden, Screaming Trees were considered one of the strongest original bands from the legendary Seattle scene, leaving a strong mark in the sound of the 1990s US new rock.

Pop

Iranian kamancheh player, Kayhan Kalhor, is one of the world’s most sublime musicians and a vital ambassador of Persian musical culture. He has contributed to various outstanding projects and performed as a soloist with the New York Philharmonic Orchestra and the Lyon National Orchestra. He is the founder of the brilliant Ghazal Trio. I Will Not Stand Alone (World Village 2012) was a groundbreaking album from a musical perspective. Kalhor plays a new bass kamancheh, devised by Australian instrument maker Peter Biffin, which he calls the shah kaman. Ali Bahrami Fard accompanies him on bass santoor (hammer dulcimer).

Wayne McGregor Random Dance

Tue 27 Nov, 7.30pm, Cankarjev dom, Ljubljana, EUR 6–19

Wed 28 Nov, 7.30pm, Cankarjev dom, Ljubljana, EUR 13–26

One of the German alternative music magazines wrote that beside Laibach, the Duo Silence is the most promising Slovenian talent in the export market. This electronic and synth pop duo consists of Boris Jenko (singer and songwriter) and Primož Hladnik (keyboards). They also include other artists in their music which is why during this concert, we will be introduced to pianist Igor Vićentić, who completed his studies at the Ljubljana Academy of Music, under Professor Aci Bertoncelj. His interests are diverse: he is also a composer and collaborates with Laibach and Terrafolk on their projects.

A prolific dance maker, and the first resident choreographer of The Royal Ballet to come from contemporary dance, Wayne McGregor is one of the most celebrated and sought-after British choreographers of his generation. McGregor’s anatomydefying choreography and groundbreaking approach across dance, science, film, music, visual art and technology has fuelled a string of truly unique works. FAR, his most recent work is no exception.

World

Thu 29 Nov–Fri 30 Nov, 7.30pm, Cankarjev dom, Ljubljana, EUR 8–26

Tue 27 Nov, 8.30pm, Cankarjev dom, Ljubljana, EUR 20–25

Classical

Zagreb Philharmonic

The Zagreb Philharmonic, an orchestra with a 104 year tradition, will be led at this

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Metal

Devin Townsend, Fear Factory Fri 30 Nov, 8pm, Kino Šiška, Ljubljana, EUR 21–27

Dance

Silence

Kayhan Kalhor & Ali Bahrami Fard

concert by its chief conductor, Dmitrij Kitajenko. Although it was with Maestro Kitajenko that our regular guest Aleksander Rudin studied conducting, for the present concert he will return to his “musical roots”, taking on the role of soloist. In the words of a critic from the newspaper Stuttgarten Zeitung, the sound of his cello “floats through the whole musical surface with divine fluency, losing neither the beauty of the sound nor its intensity.”

Fear Factory were one of the first bands to fuse the loud, crushing intensity of death metal with the cold harshness of industrial electronics and samples, producing a more varied sonic palette with which to express their bleak, pessimistic view of modern, technology-driven society. Industrial metal singer/guitarist Devin Townsend picked up the banjo at age five, at 12 he moved to guitar, and within a few years was leading the band Grey Skies. Sending the group’s demo to the Relativity label, Townsend was not only offered a solo deal but was also tapped to sing on Steve Vai’s 1993 LP Sex and Religion, a collaboration which further extended to the guitar god’s 1996 effort, Fire Garden.

October 2012

44 SPORT

Interview: Jaka Blažič

“I Was Given a Chance” I have had the privilege of knowing Jaka Blažič since he was a primary school kid, playing basketball with his little sister in front of the family house in Bled. His late grandfather – who fitted the basket – would sometimes complain because he couldn’t take his regular afternoon nap. But as an avid sports fan, he would have undoubtedly been tremendously proud of his grandson’s achievement – playing for the Slovenian basketball icon Union Olimpija – although he was a little angry when he chose basketball over ice-hockey. For Jaka, sport runs in his blood. His mother was a successful volleyball player and his father, now Elan ski manufacturer’s race director, used to work as a ski coach for the national team of Slovenia and abroad. By Simon Demšar S evera l you ng g u n s h ave emerged in recent years and the situation might further improve. It is true that Sani Bečirović and Beno Udrih(now a NBA star) were Olimpija’s key players at the age of 19, which is not the case now but I hope that these times are coming back.

Can you talk us through the time between primary school and your professional career at Union Olimpija? In the beginning, I alternated between ice-hockey and basketball but in high school I eventually decided for basketball. I played it because I simply loved it, without thinking about the future. When I joined Slovan (the fourth or fifth highest ranking club in Slovenia), things became more professional. Everyone was highly motivated and this was when I started to think about basketball as a career. Then Olimpija approached me and the rest is history. Going to a big club like Union Olimpija you took a gamble, didn’t you? Krka’s offer was also on the table. I talked to Olimpija’s president and coach, they both assured me of their full support and then I made the decision. When the season started, I was the first substitute in my playing position. Soon, the financial situation of the club worsened and five players left the team. Personally speaking, it played into my hands as I was given more chances. I was happy with my part although we failed as a team. The situation was very similar to that at Slovan, where two players in my position got injured and I took over their roles. T h e re are thou san d s of ba sk e tball h o pe f ul s arou n d the world. How did you make the final step into professional basketball? Maybe this is what I have just said: I was given a chance. But I

The Slovenia Times

Giving up school and going professional was also a risk. What went through your mind when you were making the decision? I didn’t think at all. While at Slovan, I attended the Faculty of Economics and passed a few exams but now there is no way to do it. Our school system just doesn’t make it possible.

believe that I can make further progress. My character probably also helped: I never give up, I have a fighting spirit, it is difficult for me to accept that something is impossible and I try to prove the opposite. Do you miss “ordinary” life? It is true that my friends have

more time for a social life and time out. I make up for it a bit after the season but even if I dont, I am happy to do my job – if I can call it that. It is never difficult to go to practice, let alone matches. How do you see the current situation and the future of Slovenian basketball?

Moving to a big club also brought a lot of psychological pressure. How did you deal with it? Psychological pressure was something new for me. In a turbulent season like last year, you have to stick together as a team despite criticism in the media. It is best to avoid following them and get used to it. Regarding the pressure at matches, playing in front of 9,000 people against Barcelona was a game like any other, only with more adrenaline. It is true that even during the preparation I was asking myself if this was really happening to me – preparing to cover Juan Carlos Navarro and playing against the stars that I had been watching in the Euroleague finals less than a year earlier. I had been waiting for something like this my whole life. But once on the court, you quickly forget

SPORT 45 about it. The atmosphere can lift you but this can actually be a bad thing and coaches generally don’t like it because you play with your heart instead of mind. When you lose a tight match in the last second, are there any long-term negative psychological effects? Very little because the next day you are preparing for another game. Playing twice a week allows no time for thinking about yesterday. On the other hand, a shock can make you stronger, you begin looking at things from another perspective. Coaches sometimes even welcome a defeat in order to be able to apply a new approach to preparing the team. Is it possible to prepare for the nervous last seconds so characteristic of basketball? You usually do that with a sports psychologist but we didn’t have one last year, so I had to deal with it on my own. For example, when I decided last year’s semifinals with four free throws, I felt completely relaxed, like at practice. Everything depends on

game preparation. If you are wellprepared this is not a problem but if thousands of other things are rushing through your mind, it will be difficult to score those points. In critical moments it is usually more about your confidence than technical ability and it is important to listen to the coach in those moments. What is a day in the life of a professional basketball player like? I get up in the morning, go to practice, have a rest, followed by lunch and another practice. If you have the energy, there might be time for some social activities, but otherwise, mostly rest and sleep. Practice sessions are hard. If you practice well there is nothing to worry about when things are real. After two days without practice, you are nowhere, both physically and mentally. Five days without practice and you have to start more or less from the beginning. What makes a good coach? A good coach should take care of the quality of practice sessions. He should motivate the players, be

Sašo Filipovski, Union Olimpija’s head coach, on Jaka Blažič “Last year, Jaka made impressive progress. Before that, he actually hadn’t played serious basketball. At Slovan, he was a substitute but last year he became a key player in the Euroleague, followed by the call to the national team. Jaka is a player with tremendous athletic ability and courage, which is hard to find nowadays. But still, he has a lot of potential for development in terms of tactics and concentration. I believe in him and this year he will again have a prominent role in our team.”

The Season is On Olimpija opened its international season in the Stožice hall in Ljubljana on 2 October in the ABA regional league against Split. The league was given a fresh boost this year after it became the only gateway to the Euroleague. After years of “automatic” qualification, Olimpija will have to earn its place among Europe’s strongest teams from next year. This year, it will play against Fenerbahce (19 October), Panathinaikos (26 October), Real Madrid (9 November), Khimki Moscow (9 December) and a team which will be decided in a qualifying tournament (16 November).

able to work with them at the psychological level. Regarding your personal tricks, you are expected to bring them with you from the junior years; you can only refine them later. This is not the head coach’s job but his assistants’. Being successful and famous also has its negative sides. How do you deal with that? This is where family and maybe a good friend, come in. You know that they will always stand by you. My father has been my advisor my whole career, which I am very grateful for.

Psychological pressure was something new for me. In a turbulent season like last year, you have to stick together as a team despite criticism in the media.

How do you look at your national team colleagues? Some of them were already stars when you were still in primary school? In the beginning you look at them as idols but you soon realise that they are just like you: they have the same mentality, they are athletes, they are joking, far from behaving like stars although they would have every reason to do so. The NBA? I will of course seize an opportunity if it occurs.

Football

Working for the Future After the bitter disappointment of losing against Dinamo Zagreb in the UEFA Champions League qualifier in August, the sun is shining again for Maribor football club.

ack in August, everything was set for celebration and a repeat of the 1999/2000 season, when Maribor qualified for its first and also its only participation in the Champions League. After losing 2-1 in Zagreb, hopes were high but were soon dashed by Dinamo’s dominance. Maribor nevertheless qualified for the Europa League. Overcoming Panathinaikos in an eye-catching performance and claiming their first group stage win (3-0), the league has proved to be much more suitable for the current strength of

Maribor. This was their first win in one of the two UEFA leagues in 13 years. In 1999 they won the only match in the Champions League against Dinamo Kiev. Last year Maribor also played in the Europa League but managed only one point and lost five matches. Capitalising on last year’s experience, things are off to a good start this year. What makes this year’s competition particularly attractive, despite its “second-division” status, is the opponents – Italian and English football icons Lazio and Tottenham. Maribor will play

its home matches against Tottenham on 25 October and Lazio on 6 December. Under the leadership of the legendary Zlatko Zahović and coached by his former national teammate Darko Milanić, Maribor has taken a major step forward in recent years and is systematically laying the foundations for the future. Although the Champions League match was so close back in August, it seems that it is only a matter of time until Maribor puts the final piece in its place. Much of the credit goes to Zahović who has

Photo: Miha Vidrih

By Simon Demšar

been able to create a solid financial base after some clever trading and earning millions of euros from selling some of its stars and replacing them with cheaper alternatives of similar quality. October 2012

The granting of the awards of the 15th Festival of Slovenian Film was concluded at Portorož Auditorium. This year, the FSF presented 66 films with 43 in the competition programme. Picture: Mojca Mavec, host of the closing ceremony of the Festival of Slovenian Film with jurors, Demeter Bitenc, Zvezdana Mlakar, Valentina Perko and Mitja Okorn. (Photo: Mediaspeed)

International Rowing Regatta for eights, the Bonaca Cup 2012. In the picture Eight students. (Photo: Mediaspeed) Harvestifng of the Old Vine. Styrian traditions and habits have become a city holiday, accompanied by the crowd of visitors from Mariobor and guests from all around the region and all of the Slovenian wine queens. (Photo: Mediaspeed)

EVERY PICTURE TELLS A STORY

President of the Republic of Slovenia in conversation with foreign investors at the FDI Summit Slovenia 2012, Faculty of Economics.

Annual Meeting of the Faculty of Economics Alumni Club at Križanke Theatre, Ljubljana.

The “Steps for little steps” campaign continues its mission and this year, for the fifth time, the march for the youngest. They charity march “Steps for little steps” was held at the Leon Štukelj Square in Maribor. This year´s goal is to upgrade the equipment at three elementary schools and purchase therapeutic devices for Dr Marijana Borštnarja’s Institute for Training, Work and Care in Dornava. (Photo: Mediaspeed)

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Eur opean Capital of Culture

LtUre U c F o L A It P A c eUroPeAn

h c I r A F: Urška Boljkovac

gel F: Stojan Spie

eS c n Ie r e P x e F o VArIety

BORŠTNIK MEETING: BRIDGES

The Borštnik Meeting, the oldest and largest festival of Slovenian theater, hopes to stren gthen relations with European centers of modern theater with its international program Bridges (Mos tovi). 16. - 26.10.2012 sLovene nationaL tHeatre Mar ibor

IENCE OL: ART, SCCA SOFT CONTRCH L GI LO O N AND THE TE US UNCONSCIO exhIbItIon

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CHICK COREA GARRy KASpAROv

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An exceptional and leading pers onality from a certain international field , ranging from all kinds of arts to philosop hy. 19.11.2012, at 19.00 sLovene nationaL tHe atr e Maribor - Kazina Hall

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GenerAL SPonSorS: ticket purchase at: www.maribor2012.eu and www.eventim.si

DownloaD MaRIBoR 2012 MoBIle applIcatIon