The Slovenia Times - Winter Edition

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The Slovenia Times Slovenian Magazine in English Language Winter Edition 2013, Volume 10, EUR 4.90

Caught in the politics of one step forward, two steps backInterview: Professor Metka Tekavčič, Dean, Faculty of Economics, University of Ljubljana

It is Only When We Have Respect for Ourselves that Others Will Respect Us

Interview: Professor Pankaj Ghemawat, leading global management thinker

Prosperity for Peace

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2 The Slovenian Times | Winter Edition 2013

Editorial

Winter Edition 2013www.sloveniatimes.com

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Editorial

Between initial optimism and new political dilettantismIn recent weeks, Slovenia has definitely made some steps forward: the stabilisation of public finances has begun; the budgets for 2014 and 2015 are confirmed in line with EU recommendations (at least at first glance); we’ve seen some progress to limit the grey economy; the legal system is slowly but surely dealing with the damaging management practices of the past as the whole society has become more aware of the widespread danger of systemic corruption; and even some privatisation activates were successful. Unfortunately there are again signs of dangerous “question marks” ahead.

By Tilen Majnardi, M. Sc.

It seems that the major danger for Slovenia is crucially connected to the inability of our politicians to separate “their” and define “our” common interest, they don t understand that their interest must be also our interest if they want to be credible. Let s see.

A good example is the now ex-Minister of the Economy, Stanko Stepišnik, who is a member of the ruling Positive Slovenia. PM Alenka Bratušek didn´t understand that for our common interest, the person who repre-sents the Slovenian economy should be an ex-pert and not some local businessman without any political experience. She just followed her own interests to satisfy different inter-party political and personal interests. I will leave open the small possibility that she just didn´t realise, at the time, that Mr Stepišnik was not fit to be a leading minister in the government and that she will not make the same mistake again.

Let s go ahead with the second ex-minister, the Health Minister Tomaž Gantar from the Pensioner s Party. He didn t understand that our common interest is that he prepares com-prehensive health reform, instead he followed his and the Pensioner s Party interests and he has now stepped down allegedly because of a major divergence of opinion in the coalition and has organised a PR campaign that suits both his and the Pensioner s Party interests.

We just cannot forget the behaviour of the opposition. They all have a full mouth of “care for Slovenia” (and this goes for both left and right parties, the concept is more or less the same, just the roles change every few years). In practice they see only “their interests”. This contest between the coalition and opposition is of course logical and normal in a democracy, but to offset the wider interest of the country for self-promotion is just too much and the “cancer” of Slovenian politics. Recent behav-iour of the Slovenian Democrats who were prepared to spit on their own country on the world stage just to serve the very narrow in-terests of their party is just not statesmanship behaviour. This was also the premise behind the motion to oust the Finance Minister. The reason: controlled liquidation of two smaller banks which was coordinated with the EU and the removal of an SDS MP from the position of non-executive director of the bad bank. Understand, if you can, how an MP can, at the same time, be a company director?

The most recent case of government dilet-tantism is the reorganisation of Slovenian promotion. Not even a year old, the SPIRIT agency will now be dissolved into three pieces. Without analysis, by rapid government pro-cedure, just like that, obviously there is once again some interests that are definitely not our common interest.

3Winter Edition 2013 | The Slovenian Times

Contents

WINTER SEMAPHORE 4 Will the government be able to

work with Pensioner Party Whims

4 Will privatisation finally start?

5 Olympic games a potential confidence boost for Slovenia

ECONOMY 6 GDP forecasts: Recovery or free fall

in 2014?

7 Public finances: Budget for 2014 & 2015 Confirmed. Key Banking Stabilisation Issues Remain Open

8 Central bank: results of the stress test will not endanger the stability of Slovenian banks

8 New taxes: Controversial real estate tax will enter into force on 1 January

9 The end of SPIRIT

10 FDI Summit Slovenia 2013: Act Now!

12 Interview: Professor Metka Tekavčič, Dean, Faculty of Economics, University of Ljubljana

15 Record Attendance at Der Deutsche Ball

16 Interview: Professor Pankaj Ghemawat, leading global management thinker

18 Invest in the Pokolpje Region

20 Interview: Zev Gurion, Executive Director, Akron BioMedical Corridor, Akron, Ohio

22 Ljubljana Forum 2013: Co-Creating the Future of European cities

23 Interview: Ibon Zugasti, Partner/Director, Prospektiker; General Manager, LKS Market Research; Chairman, Millennium Project Node, Spain

26 Interview: Gašpar Gašpar Mišič, President of the Management Board, Luka Koper, d.d.

28 Air France’s 80 years long adventure – From pioneer to leading airline

30 The new MaxxiMUM from Bosch: The culmination of 60 years of kitchen machine experience

33 Special: The Slovenia Times Winter Tips

34 Hella’s LED Technology: from Headlamps to Street and Industrial Lighting

37 Looking for a saviour for the pearl of Slovenian tourism

38 Biopolymers – Organic Plastics

POLITICS 40 PM Survives “Pointless” Vote of

Confidence

42 Junior opposition party wants a bigger piece of the centre-right political pie

43 Bad sign for the “cleaning” of Slovenia

43 Opposition Leader with vision or suicide tactics?

EUROPEAN UNION 44 Budget 2014: Implementation is Key

45 Cooling down in Slovenian/ Croatian relations?

47 Slovenian Army helping in refugee crisis on Lampedusa

47 Two new Slovenian products with protected status

EXPERIENCE&LIFESTYLE SLOVENIA 48 Works by Jože Ciuha, one of the

greatest Slovenian painters, on show at the Jakopič Gallery

49 Quality Living in Ljubljana

49 Festive December in Ljubljana

50 Vipava Valley – Vipava – Vrhpolje and the Duplje Village

52 The Famous City - Glorified for its Cookery

54 Made in the home of skiing

SPORTS 56 Cheer Slovenia in Sochi

57 From Chamonix to Sochi

58 Interview: Filip Flisar, Ski Cross Ace

CULTURE&EVENTS 60 Tito: A Yugoslav Icon

62 Event Guide


Winter Semaphore

Politics

Will the government be able to work with Pensioner Party WhimsAs witnessed in the past in all sorts of governments, left and right, sooner or later the Pensioner s Party begins to represent an obstacle for the effective work of government, adoption of certain urgent reforms and additional austerity measures.

Economy

Will privatisation finally start?Starting a transparent privatisation process is one of the three main pillars for restoring the credibility of Slovenia in the coming months.

In recent months, the Pensioner s Party, as per usual, hasn’t accepted any reduction in pensions despite the critical situation in pub-lic finances and then they almost blocked the new real estate tax with the argument that a lot of pensioners own high value real estate but have low incomes and so will not be able to pay higher tax! At the moment they are pre-venting the adoption of a centralised system of managing state owned companies in a State Sovereign Holding because they require that some of the assets be left out of the Holding for the purpose of future pensions payments. The latest complication came just a day after their Minister for Health resigned because he “is not able to prepare comprehensive” health reform.

Now suddenly the Pensioner s Party wants a new coalition agreement and government shuffle. Without a new agreement they will not

support new candidates for the economy and health ministries. With the still very fragile situation in public finances and the urgent “cleansing” of the banking system which is estimated to cost around EUR 4-5bn, the gov-ernment will have to adopt new stabilisation measures and continue with structural re-forms, especially pension and health. It will be crucial for PM Alenka Bratušek to define a clear and effective working plan until the scheduled election in autumn 2015 or otherwise we will face early elections in the autumn of 2014 in combination with European Parliament and local elections. In any case, PM Bratušek will have to more aggressively step out of the shad-ow of Positive Slovenia founder and Mayor of Ljubljana, Zoran Jankovič, and show us if she is the real deal!

Karl Erjavec, Leader of the Pensioner s Party – difficult coalition partner; Photo: Aljaž Hafner

Will the government be strong enough to stop the damaging lobbying around the privatisation process?

First, the stabilisation of public finances, which started with the adoption of the budgets for 2014 and 2015 within EU rules; second, operationalise the bad bank with the transfer of toxic assets from the banking sector which is expected after the announcement of the results of the bank stress tests in the middle of December; and third, start real privatisation without the usual endless delays and numer-ous inventions of false “national interest” in even the most obscure companies.

As a first step, the government has defined an ad-hoc list of 15 companies in which the privatisation process started in recent months or earlier. This list was partially PR damage control by the new government to show clear

Winter Semaphore

Sport

Olympic games a potential confidence boost for SloveniaThe event of the winter 2013/2014 season will definitely be the Olympic Games in Sochi. Slovenia can use the games for a greater purpose. Expectations by the Slovene public are very high. We definitely have a good chance for a few medals - superstar Tina Maze will chase medals in all disciplines, the same goes for our “young eagles” in ski jumping etc…. Sport is one of the rare areas where Slovenians are not ideo-logically divided, when our girls and guys are competing we don t argue about the past and we are not crying about our smallness. Our flag flies high!

So, smart policy and politicians could use Sochi as a turning point in our recovery efforts. We must not forget that alpine skiing and win-ter sports in general were one of the pillars of national identity in the independence process in the late 1980 s and early 1990 s. Of course, we must wait for the final results of the games

but every medal for Slovenia will be a short escape from the daily pessimism and economic problems.

Can Slovenian confidence in sport transfer to society as a whole?

determination for privatisation and gain some credit from international markets and the Eu-ropean Commission. One company from that list, where the process is finished, is coating maker Helios who has a new owner, Austrian Ring International, although this was more or less expected and had nothing to do with the government plan. Nevertheless, the comple-tion of the transaction was acclaimed by inter-national markets.

Now we will see how smoothly the process will be in companies which, until recently, were declared strategic. The real test for government credibility and determination will be the priva-tisation of Ljubljana Airport, flag carrier Adria Airways, Telekom Slovenije…. In all these companies there is the beginnings of defensive tactics, some are unusually active in the media explaining their development strategy, alleg-edly excellent results, the absence of quality strategic partners etc….

The government must definitely come up with a clear and transparent strategy for the management of state owned companies which must define sectors and companies to be priva-tised. This will be one of the priority tasks of the new economy minister, which must repre-sent the strongest and not the weakest link of the government, as was the case with Minister Stanko Stepišnik.

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Economy

GDP forecasts

Recovery or free fall in 2014?As the government explained that Slovenia is showing the first signs of recovery, foreign institutions compete daily in downgrading economic forecasts for the next year. Whilst the OECD more or less agrees with the forecast of the Government Institute of Macroeconomic Analysis and Development (IMAD), which predicts a contraction of 0.8% (OECD 0.9%), the EBRD shocked the Slovenian public with their forecast of a 2.5% contraction.

By T. M., G. M., STA, Reuters

the improving situation in global markets will facilitate Slovenia’s exports which will remain the only generator of economic activity.

Exports are expected to increase this year by 1.6%, to be followed by 3.1% growth in 2014 and 4.7% growth in 2015. Investments are meanwhile expected to decrease 3.9% this year, 4.2% next year and by an additional 3.0% in 2015. The negative contribution of domestic consumption to GDP has been forecast at 3.4 percentage points in 2013, 3.1 points in 2014 and 1.3 points in 2015.

Despite the increase in VAT which was implemented on 1 July, inflation is to remain low, at 2.2% this year, dropping to 1.7% next year and to 1.3% in 2015. The survey unem-ployment rate is expected to continue to grow and stand at 11.4% by 2015, according to the OECD. It will stand at 10.7% this year and at 11.2% in 2014.

Given the expected high cost of bank re-structuring, the general government deficit is projected to amount to 7.1% of GDP this year

EBRD Overly Pessimistic?

The European Bank for Reconstruction and Development (EBRD) downgraded significant-ly its 2014 economic forecast for Slovenia in its latest report. The EBRD expects Slovenia’s GDP to contract by 2.5% next year; a considerable drop compared to its May projection forecast-ing a 0.9% contraction in 2014.

The EBRD’s forecast for Slovenia for 2013 remains nearly unchanged, with the bank estimating that the country’s economy will contract by 2.4%, 0.1% less than in the May forecast. The EBRD said that Slovenia’s ex-ports have been increasing gradually but the economy is being suffocated by weak domestic consumption resulting from the deleveraging of companies, problems in the banking system and measures to consolidate public finance.

The institution noted that Slovenia has started the privatisation process with the sale agreement for coatings maker, Helios, it would, however, like to see some progress in setting up the country’s Sovereign Holding. Furthermore, the EBRD believes that bank restructuring will take longer than planned and therefore, Slovenia’s economy will not be able to get back to growth.

OECD sees growth in 2015The Organisation for Economic Cooperation and Development (OECD) has forecast that Slovenia’s GDP will shrink by 0.9% next year, a downgrade of one percentage point compared to its spring forecast. The OECD explained the downgrade by saying that the delay in the restructuring of the banking system and the continuing consolidation of public finances and deleveraging of companies will further decrease domestic demand.

Domestic demand is expected to pick up toward the end of 2015. On the other hand,

and to 5.9% of GDP next year, but to drop to 2.9% in 2015.

The cyclically-adjusted deficit, which ex-cludes the effects of high economic growth or recession, is expected to decrease from 4.4% of GDP this year to 2.5% next year. In 2015 Slovenia is forecast to record a surplus of 0.5% of GDP. The OECD has kept its projection for economic contraction this year at 2.3%, while it expects the country to see 0.6% growth in 2015.

(Source: OECD)

1

0,5

0

-0,5

-1

-1,5

-2

-2,5

0,6

-2,3

2014

2015

OECD forecast of GDP growth (%)

Economic situation slowly stabilising, exports very strong

Gross domestic product (GDP) in the third quarter of 2013 decreased 0.6% in comparison with the same quarter of the previous year. In the January-September 2013 period, GDP de-creased 2.2% compared to the same period of 2012. Seasonally adjusted GDP in the third quarter of 2013 remained at the same level as the previous quarter. In comparison with the third quarter of 2012, it decreased 1.3%. The economic situation in Slovenia in the third quarter did not significantly change. A signif-icant decline in GDP was again prevented by external demand. Exports increased for the fifth consecutive quarter, this time by 4.9%. Imports increased 2.6% after six consecutive declines. The contribution of the external trade balance to growth was the same as in the previous quarter - 1.9 percentage points. The terms of trade also improved in the third quarter (index 101.5), which again had a posi-tive impact on the value added of the economy and thus the net taxes on products.

As in previous quarters, domestic de-mand had a negative impact on economic activity however, it is beginning to stabilise. Domestic consumption decreased slightly less than in the previous quarter, by 2.8%. Private final consumption decreased 3%. After the increase in the second quarter, the consumption of durable products in the third quarter decreased again, this time by 4.9%. Consumption of other products continues to decrease (-2.4%). Government final consump-tion fell 4.9%. Gross fixed capital formation fell slightly more than in the previous two quarters, by 4.4%. The influence of individual, major purchases of capital goods - transport equipment, other equipment and machinery - abroad is decreasing. Gross fixed capital for-mation in construction decreased by 7.1%, i.e. slightly less than in previous quarters.


Economy

Public finances

Budget for 2014 & 2015 Confirmed. Key Banking Stabilisation Issues Remain OpenThe parliament confirmed the budgets for 2014 and 2015 and formally set the basic framework of government economic policy for next year. The government declared that stabilisation of public finances is the absolute priority and from the structure of the budget, it is very clear that the government is primarily counting on higher revenues which are planned on very optimistic assumptions.

• Transfers to thePension andDisability In-surance Institute are ensured.

• Transfers to indirect budget users will beincreased by EUR 10m.

• Expenditure and transfers for investmentwill be increased by EUR 144m.

The surplus is limited to EUR 1.5bn in 2013 and set to decrease to EUR 1bn in 2014 and to EUR 859m in 2015.

Is it a realistic budget?The most frequent comment or question around the budget is the reality of the assump-tions – the key economic indicators used in the planning. The general question is whether the IMAD forecast for the contraction of GDP in 2014 is realistic. IMAD is planning a 0.8% con-traction, while the EBRD forecasts a 2.5%. If the reality is closer to the EBRD it means that major elements of budget revenue are wrong.

The second important question is whether the increase in revenue in the middle of a deep recession is too optimistic. The government plans higher corporate income tax, excises, VAT... and, of course, new revenue from the adopted real estate tax. The main open issue re-mains the depth of the hole in the banking sec-tor. The government has reserved EUR 1.2bn

for this operation although inside speculation and estimates are much higher - from EUR 4bn up to EUR 6.7bn. Nevertheless, the pressure of public debt on the budget is dangerously rising with interest amounting to almost EUR 1bn, representing more than 10% of planned expenditure.

New taxes instead of a more efficient public sectorFor 2014, the government plans a deficit of 2.9% of GDP with projected revenue of EUR 8.6bn and expenditure of EUR 9.6m. The 2015 budget, which plans expenditure of EUR 9.5bn, making for a deficit of 2.4% of GDP, was criti-cised by the opposition for failing to include all expenditure while squeezing people with new taxes.

Planned revenue of EUR 8.62bn means an increase of EUR 212.5m compared to the 2014 budget, adopted in 2013, which is a little sur-prising due to contraction forecasts and the ongoing fall in domestic demand. As the gov-ernment explained during the parliamentary session, the increase will be realised primarily through:• newtaxationofproperty;• limitingthegreyeconomy,particularlyper-

sonal income tax, corporate income tax, VAT and duties;

• suspensionof thegradual reduction incor-porate income tax;

• effectofincreasedVAT.

In order to obtain as much EU funding as possible, additional budgetary commitments totalling EUR 460m have been available since 2013 to finance reserve projects. Income from the EU is planned within the available frame-work for Slovenia.

Expenditure is planned to total EUR 9.64bn or EUR 322m more than approved for the 2014 budget. In comparison with 2013, the govern-ment explained the planned numbers:• Labour costs lowered on the basis of the

Agreement on Further Measures in the Field of Salaries and Other Labour Costs in the Pub-lic Sector Aiming to Balance Public Finances.

• Lowerexpenditureongoodsandservicesinall categories.

• Transferstoindividualsandhouseholdswillremain at similar levels;

Planned public finance consolidation (budget deficit as a % of GDP)

(Source: Ministry of Finance)

0

-1

-2

-3

-4

-5

-4,4 -2,9 -2,5

2013 2014 2015

The government (on the photo Finance Minister Uroš Čufer) didn t meet its promise that stabilisation of public finances will come primarily from lower expenditure


Economy

New taxes

Controversial real estate tax will enter into force on 1 JanuaryThe real estate tax bill, representing a crucial source of income for the government once it takes effect at the start of next year, was passed by the National Assembly. The tax is a key piece for fiscal consolidation by the government and replaces the existing system of fees on land, buildings and property.

Stress tests

Central bank: results of the stress test will not endanger the stability of Slovenian banksCentral Bank Governor, Boštjan Jazbec, confirmed that the results of bank stress tests would be released on 13 December. He is confident that no bank will have to enter bankruptcy or supervised liquidation on that date.

The tax is expected to bring in EUR 400m annually - EUR 200m to state finances and EUR 200m to municipalities. The basis for the tax will be the market value in the real estate registry. The tax will be levied on 80% of the value in 2014, 90% in 2015 and then 100% from 2016 on-wards.

The general market value is a key issue of discord with opponents, among them the opposition parties, criticising the estimates for failing to reflect real market prices.

Under the new law, homes will be taxed 0.15% while empty real es-tate, including holiday homes, will be taxed at 0.5%. A surcharge of 0.25 percentage points is being imposed on residential units whose value exceeds EUR 500,000.

Welfare or minimum pension support recipients will pay 50% less tax while handicapped people will get a 30% reduction. The Act in-troduces the possibility of a lien on real estate in cases where the owner cannot pay the tax. Commercial real estate will be taxed at 0.75%, en-ergy facilities at 0.4% and public buildings at 0.5%. Farm outbuildings will be taxed at 0.3%, farm land at 0.15% and forests at 0.07%.

Sacral buildings, monuments, barren land, protected forests and for-est reserves will not be taxed. Also excluded from the tax will be diplo-matic representations, international organisations and EU institutions. Illegal builds will be liable to triple the relevant tax rate.

Until now real estate was significantly “under” taxed in Slovenia

Preventive borrowing before results of the stress tests?Slovenia issued a EUR 1.5bn, three-year eurobond in late November, a surprise move considering recent government statements that it would not undertake new borrowing until early next year. The bond, a three-year private placement with a sole investor, has a coupon rate of 4.7% and was sold at 99.6% of nominal value, meaning that the yield was slightly above the coupon rate. This is the first eurobond issue after a long hiatus, as Slovenia was effectively shut out of the eurobond mar-ket and the last two issues of ten-year bonds were on the US market.

The action by the Finance Ministry is perceived as a preventive move before the stress tests of the Slovenian banking sector are announced. Even if Slovenia acquires fresh money at relatively high interest rates, it has gained significant liquidity which may facilitate the resolution of the banking problem in the coming months.

“This would have already happened if it had to happen,” he said, noting that the Central Bank reacted when it had to in the cases of Probanka and Factor banka, which are in the process of being wound down. “My only intention is to reduce the costs to taxpayers; all decisions related to required recapitalisations are informed by that,” he said at a panel on macro-prudential oversight.

Jazbec refused to speculate on the recent assessment by Fitch that Slo-venia will need EUR 4.6bn to recapitalise its banks, noting that this was precisely what the stress tests were for: to determine the required capital.

The Central Bank’s own estimate, recently revealed by Jazbec himself, is that the sum will be below EUR 4bn, although this is still signifi-cantly above initial estimates. For months there has been speculation among investors and politicians that Slovenia might have to request international financial assistance. He believes the likelihood that the country can manage without aid has “significantly improved” in recent weeks, reflecting the government’s efforts.

Don t panic! (Central Bank Governor Boštjan Jazbec)


Economy

Somersault over the promotion of Slovenia

The end of SPIRITLess than a year ago, on 1 January 2013, Slovenia integrated the promotion of Slovenia, general, corporate, tourism and entrepreneurship into one single agency – SPIRIT. The goal was clear: to end the ineffective atomization of promotional efforts and to establish a one-stop-shop for potential foreign investors. The idea was welcomed by domestic and foreign experts and the public. And what has the government now done just before the first birthday of SPIRIT? It has decided to dissolve the agency back to three individual agencies! So much about credibility and stability of the system.

When we asked Acting Director of SPIRIT, Boštjan Skalar, just three months ago, we re-ceived a very clear answer: “SPIRIT unites under one umbrella agency the most important areas of the Slovenian economy: entrepreneurship, innova-tion, development, investment and tourism. For the Slovenian economy this means the provision of support in a harmonised, transparent and com-prehensive manner. Thus the Slovenian economy has, at its disposal, an institution that unites the key areas for growth, development and promotion of Slovenian companies in the most important target markets”. Obviously no more if you ask

the bureaucrats at the Ministry for Economic Development and Technology who are pushing the new changes.

The government plans to dissolve SPIRIT and establish two separate agencies to handle technological development and tourism, while the segment dedicated to the promotion of entrepreneurship and FDI will fall under the auspices of the Economic Development and Technology Ministry.

The ministry plans to establish the new tech-nological development agency in March and FDI and entrepreneurship promotion will be

transferred to the ministry on 1 January 2014.The changes, allegedly, aim to optimise

work, boost transparency and speed up the implementation of measures through direct single management. It is expected to save EUR 350,000. This year, SPIRIT’s budget was EUR 4.144m.

What is really behind the reorganisation is hard to say, definitely there has not been a com-prehensive analysis of the work done by SPIRIT, there was just not enough time to prepare it. Probably this is another example of “self pro-claimed experts” who are “close” to the current government persuading PM Bratušek that reor-ganisation is “in the best interests of Slovenia”. This interests will became very clear when we see who is appointed to the leadership positions in the new “transparent” institutions.

Who will benefit from the reorganisation?


Economy

2

FDI Summit Slovenia 2013

Act Now!This year s international

development conference, the FDI Summit Slovenia 2013, was a

turning point. Slovenia really can t wait for the implementation of

well publicised measures any more. Similar warnings were heard in 2012 but we have now definitely run out of reserves. This was the main message

of all speakers and participants who very carefully listened to PM

Alenka Bratušek as she detailed the government’s priorities for the next

few months. The PM was, in fact, very clear: further consolidation

of public finances, making the bad bank operational and starting the

privatisation process. Now we wait for action!

By Tilen Majnardi, M. Sc., STA

Gradualism resulted in Slovenia losing competitivenessPrivatisation should be seen as a tool for un-locking the economic potential of Slovenia, Jean-Marc Peterschmitt, the EBRD Managing Director for Central and South Eastern Europe, told participants at the opening of the Sum-mit, arguing that the policy of gradualism has resulted in a huge loss of competitiveness and productivity.

By forgoing privatisation in the past, Slo-venia has missed out on multiple benefits that the injection of foreign capital brings, including the introduction of new technology and new managerial input. “The privatisation agenda must now be made one of the centrepieces, as it presents not only new sources of revenue for the government but also an opportunity to change the fabric of the economy that can contribute to boosting growth,” Peterschmitt said on the pan-el debating ways for regaining credibility abroad.

Furthermore, he assessed that privatisation will be a test of the government’s credibility and commitment to implementing the reforms required to make the Slovenian economy more competitive and welcomed the PM’s announce-ment of measures aimed at making Slovenia

ment was committed to encouraging foreign direct investment. “The Slovenian government supports FDI as an excellent tool for support-ing economic growth and reducing unemploy-ment”. The government is aware that a sound economic environment is a key precondition for making Slovenia appealing to foreign inves-tors, which is why it has embarked on reforms and measures to fix Slovenia’s ailing banking sector and deal with corporate over-indebted-ness.

Announcing that a timetable for priva-tisation should be finalised by the end of the September, Bratušek stressed that the government was determined to ensure that Slovenia’s economic potential would be bet-ter utilised by opening up its economy. She pointed to Slovenia’s geographic position, strong industrial base, developed infrastruc-ture, and well-educated and hardworking labour force as key advantages that the gov-ernment was determined to help develop. Bratušek also defended the government’s economic track record since taking office in March, highlighting measures for making the bad bank operational, the supplementary budget and the reform programme sent to the EU.

more appealing to foreign investors. Peter-schmitt argued that foreign investors can help companies undergoing financial restructuring by providing much needed fresh capital, while also providing knowledge for the corporate restructuring that is required to turn around struggling companies. “We have seen, in many countries, that private equity is a significant driver of change,” he assessed in urging the gov-ernment to reduce the state’s involvement in business and make the business environment more appealing to investors”. He also urged the government to take institutional measures that would provide for unified management of state assets as it prepares for privatisation. The top priority, meanwhile, should be to carry out privatisation of one company which will serve as a signal to investors. “Make one privatisa-tion happen quickly...and make it a model for other sales,” he said when asked about the key measures for bolstering confidence in Slovenia.

PM promised a transparent privatisation plan. Reality: unexplained delaysDelivering her opening address to the confer-ence, Bratušek said that the Slovenian govern-

1

Photos: Aljaž Hafner


Economy

Faculty of Economics: Slovenia is in better condition than generally perceived

The, now former, Dean of the Ljubljana Econom-ics Faculty, Dušan Mramor, echoed the prime minister’s words by saying that key economic indicators were showing signs of improvement. The economic contraction in the second quar-ter of the year was the lowest since Slovenia entered the recession 18 months previously, which he said was a sign that contraction was levelling out. Elsewhere, exports and the con-struction sector are showing signs of growth, while other fundamental macroeconomic in-dicators, including public debt and confidence indices, are better than the EU average. “How come we are perceived as a country which does not have good macroeconomic fundamentals,” Mramor wondered in arguing that this is a per-ception that Slovenia is mostly feeding itself.

Stop bureaucracy to start the economy

Slovenian Interior Minister, Gregor Virant, who is also in charge of public administration, said the country had been focusing on stream-lining public administration procedures since 2000 and enjoyed success while still needing to undertake work in a number of areas. Slo-venia’s biggest achievement has been in sim-plifying procedures for setting up a business, which are among the quickest and cheapest in Europe. However, efforts must still be made in speeding up the issuance of building permits and amending zoning plans. Zoning changes can take up to four or five years to complete, which is why Virant said plans are already be-ing drawn up to amend legislation in order to speed up the process.

In issuing building permits, the biggest problem is usually related to consent which needs to be given by various bodies dealing with environmental protection and cultural heritage. One solution would be to create a one-stop shop, where all such institutions sit at the same desk, said Virant.

Virant added that efforts to cut red tape are high on the list of priorities of the govern-ment, with measures currently being taken to deregulate a series of business activities which had been licensed until now. As a result, the number of regulated activities will be reduced from 62 to 25.

Furthermore, the government is collecting proposals from business and the public for improving public administration processes as part of the ongoing “Stop the Bureaucracy” drive.

The conference also presented good prac-tices from Hong Kong. “By streamlining [public administration] processes, you actually improve compliance,” Ivan KB Lee, who heads the Hong Kong Economic and Trade Office in Berlin, told a debate on the efficiency of public services as a competitive advantage. Present-ing the experience of Hong Kong in cutting red tape, Lee said that a government unit deal-ing with public administration, which sits at the government table on equal footing with ministries, helped Hong Kong’s rise in interna-tional rankings dealing with the ease of doing business. Since resistance to change is a major obstacle to public sector reform, efforts must be aimed at changing mind-set while reforms must be gradual and represent more of an evo-lution than a revolution.

Promotion of the country must be simple and effective

One of the important questions of the FDI Summit Slovenia 2013 was content and organi-sation of the promotion of the country. Slove-nia reorganised the promotion of Slovenia into one agency, SPIRIT, connecting general, tourist and corporate promotion. Boštjan Skalar, Act-ing Director of SPIRIT, focussed on the devel-opment of the design for the country brand, noting that the “I Feel Slovenia” brand has had more success abroad than at home, where the public is somewhat reluctant to accept it.

Skalar expressed regret at speculation that the SPIRIT agency, which he says is already showing results, is to be split up back into smaller entities. He argued that it is hard to di-

vide promotion and that, as seen with EuroBas-ket 2013, “it works best under one umbrella”.

Japec Jakopin, founder and co-owner of boat maker, Seaway, agreed that Slovenia is slowly getting a place on the world map but the fact that foreigners are still so pleasantly surprised when they visit shows that “we did not do our marketing well”. “We provide ex-cellent opportunities to companies who want to attract people, good working conditions, everything is close and accessible, enabling creative work,” he added, urging a focus on getting the message across that Slovenia is a green and healthy country “where everybody likes to be”.

1 “Privatisation will be the test of this government s cred-ibility” (Jean-Marc Peterschmitt, Managing Director, Central and South Eastern Europe, EBRD)

2 We are aware that a sound economic environment is a precondition for FDI (PM Alenka Bratušek)

3 We are feeding excessive pessimism (prof. dr. Dušan Mramor)

4 Ivan K B Lee, head of the Hong Kong Economic and Trade Office in Berlin

5 Boštjan Skalar (far right), Acting Director of SPIRIT faces a reorganisation of promotional activities.

6 Economic diplomacy is bringing tangible results. (Stanislav Raščan, head of the economic diplomacy directorate at the Foreign Ministry)

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Economy

Interview: Professor Metka Tekavčič, Dean, Faculty of Economics, University of Ljubljana

It is Only When We Have Respect for Ourselves that Others Will Respect Us Metka Tekavčič took the helm of the Faculty of Economics in Ljubljana on 1 October this year, a time when the country is facing the worst consequences of the economic crisis. She took over a faculty that is in excellent shape and the best institution of its kind in the region at a time when the state is allocating increasingly less money for education. It is a time when Slovenia urgently needs a change in mindset to enable the gradual exit from the labyrinth that is the current crisis. The words and positions of the new Dean exude what is often (too) rarely found optimism for Slovenia, with which she aims to infect the whole of Slovenia and do so as widely and quickly as possible.

By Tilen Majnardi, MSc.

Q Over recent years, the Faculty of Economics has established itself on the international stage and is one of the best faculties, in this field, in Central Europe. What will be your key orienta-tions in the coming years?A We will, by all means, continue on the cur-rent course as that is our fundamental strate-gic orientation on account of us being a global school. We are, of course, acutely aware of the responsibility brought about by being the best school of this kind in the region when it comes to the generation of knowledge and its transfer. It is not helpful when there is, for example, only one “mushroom in the meadow” as mushroom gatherers prefer coming to an environment with plenty of mushrooms. We are certainly a harbinger of change as well as a lighthouse that

guides change; and we are ready to push the en-tire region forward in the science of economics and business.

Q The Faculty of Economics has one of the larg-est shares of foreign students among Slovenian faculties. How would you rate the importance of maximising the internationalisation of educa-tion in general and does the state or the system as a whole provide suitable support for such an orientation?A The question, of course, is how we interpret the word system. If we look at the higher educa-tion development strategy adopted by the Na-tional Assembly, we can say that it is a suitable institutional orientation. Unfortunately, this is not often the case at the implementation level. Our legislation governing this field is highly rigid, whereas we should have greater feel for basic logic in these terms. Some of the deci-sions are illogical and do not account for the ac-tual state-of-affairs. For example, many of our citizens who studied at faculties or acquired knowledge abroad would not have been able to do so had the bureaucratic obstacles been as severe as they are in Slovenia. It is a fact that we are also responsible for the development of Slovenian language – including professional terminology in different areas; however, we cannot pursue this goal by insisting on having educational programmes provided only in Slo-venian. The care for the language is something entirely different and I for one, believe it to be far more important that senior government of-ficials are able to use Slovenian in their work. To clarify what I want to emphasise: we have found ourselves in a position where we de-clared care for the Slovenian language as a state-level priority, while those who are to implement this policy are unable to master

Q On 1 October 2013 you assumed the function of Dean of the Faculty of Economics at the Univer-sity of Ljubljana. Have you been able to establish your own team and what are your first steps?A It is indeed true that around two months have passed since I assumed my function but I have been at the Faculty of Economics for a long time, which is why I am familiar with the people, work and tasks of the dean. I believe that we were able to form a very good leadership team as the vice deans were already involved with the work at the faculty in areas that they now cover as members of the new leadership. I would highlight the fact that we tried to act as an integrating element and include the larg-est possible number of staff in the work of the faculty and the fulfilment of the strategy.

Professor Metka Tekavčič, Dean, Faculty of Economics, University of Ljubljana


Economy

the basic elements of the language. When I attended a consultation on higher educa-tion recently, I noticed that the government officials, for example, frequently do not know how to use the dual when it comes to the neutral gender. The fact is that we cannot function well in a particular environment if we have not mastered foreign languages, which is the fate of a small nation. The high costs of a minority language are also linked to this and that is something we should be aware of.

Q When we talk of the state, we cannot disregard austerity and cost-cutting that also affects higher education. Are the warnings on excessive austeri-ty justified; could more be done within the institu-tions, the University and faculties; are there any reserves in terms of organisation or efficiency?A This issue certainly involves a combina-tion of different elements. Of course, I can-not claim that absolutely no internal reserves could be found, there is no doubt about that. But I cannot think of a single country in the world that grew and developed while lower-ing spending on education. We find ourselves in an extremely unusual situation when it comes to the financing of primary school, sec-ondary school and faculty students as we are the only country, according to OECD , where faculty students are not more expensive than secondary school or primary school students. The fact is that we should be mindful when it comes to austerity. I am not inclined to speak of the lowering of costs, but rather of manag-ing costs. Managing costs does not imply work with numbers but rather, working with people which is something people often forget. Linear measures can trigger highly negative reactions from people that are later reflected in high and unnecessary long term costs.

Q Has the economic crisis perhaps affected interest in the study of economics? There is a lot of talk about the “deluge” of economists, law-yers, philosophers, etc., which is not in line with the requirements of Slovenian society and the economy. How can we reconcile the needs of our economy with the structure of those studying?A The interest in business sciences has cer-tainly not waned. It is a fact that even those who possess technical and other knowledge and are involved in the management of com-panies are learning that they need the basic elements of business knowledge – including economic and certain macroeconomic knowl-edge – whereas data is frequently maliciously shown, creating an impression that there are too many people of this professional profile, while the data in practice does not corroborate this. A further fact is that our graduates are still employable and that they are undoubt-edly more employable than the graduates from certain private schools extending the

same professional title. We should not bury our head in the sand in this regard as qual-ity does indeed differ, but we are still afraid of admitting this.

I would like to tell you one very significant brief story from my days at secondary school during the so-called socialist times. I was in a class where we devotedly strove to develop en-trepreneurship. We thought of how we would go about establishing a company and then present the results of the simulations - in that group is one of the most successful companies in Slovenia, Studio Moderna. We were divided into two groups, technical and social sciences. I and Mr Sandi Češko were part of the social sciences section, while the technical sciences section had construction and computer engi-neers who underestimated us. But they quickly learned that they did not possess sufficient knowledge about business; that they knew how to develop a product and manufacture it, but did not know how to sell it, evaluate it in terms of costs, assess the funds required for develop-ment, etc. But when we joined forces, a success story was born – at first this was the Oria Com-pany, now Studio Moderna.

Q The Faculty of Economics is the centre of Slo-venian economics. Do you think that policymak-ers listen to the advice from your institution as it sometimes seems that the words of your profes-sors are falling on deaf ears and that politics is simply going its own way and has its own notion of the right solution?A This is the fundamental Slovenian social problem that is developmental in origin and has brought about the demonization of politics. It is much easier to point the finger at politics than those who handled public property irre-sponsibly and privatised it in an uncontrolled manner. It is true that a sort of primal accu-mulation of capital was happening over the initial years of the country’s independence – we could not call it any other name, but we were not willing to admit this. Many crooked stories transpired because some politicians were not willing to point them out in time. Today, no serious person wants to enter politics because a politician is seen as a swear word. But what is politics? It is a normal way of realising the interests of society, while in our coun-try, everyone has suddenly turned apoliti-cal while at the same time being a peanut politician themselves. This means that they first follow one and then another political option – and this is catastrophic.

In the past, our faculty yielded many minis-ters, leaders, and heads of institutions in both the private and public sectors which is why our people are highly involved in these environ-ments. Because of the general stance towards politics, no one, of course, wants to discharge functions where they could be scolded without

justification. But this is only the case in Slove-nia; they do not face such problems elsewhere.

Q How would you assess the adopted state budg-et for 2014? More importantly, do you find it to be realistic? Has politics, again, perhaps ignored the economic calculations?A The important thing is that the budget was adopted and that opportunities are being cre-ated for a somewhat more optimistic outlook. This biased criticism that we are witnessing in Slovenia is an important reason for us not be-ing able to move forward. You see, we are cur-rently facing the consequences of reforms not having been passed. We all knew what the consequences would be and I find it inappropriate that we now hear cries about what happened when we all knew even then what would happen. It seems right that the conditions in the country are stabilising at this basic level. It is, however, true that we have different economic doctrines, which is quite normal. The Nobel Prize went to both Hayek and Friedman, and Stiglitz and Krugman, where the latter two were actually socialists – an option that cannot be found in Slovenia. It is also true that we have thoroughly confused the terms liberal and libertarian in Slovenia. If one is a libertarian, they are not necessarily an economic liberal; you can also be in favour of other economic doctrines.

Q How do you look upon the justification of government borrowing for current government spending, that we are unable to adapt to the real-istic capabilities of the economy?A That’s exactly how it is. At the private level, everyone understands “how long their blanket is” and they are forced to apply household logic – even though unhappily. At the national level, we place impossible demands on this unfortunate country. We would, for example, like to have an easy life-style as it belived to be in Mediterranean, residential surface areas as they have in America, technological development seen in Japan, education and health enjoyed in Sweden, while we would prefer our taxes to be as they are in tax havens, i.e. no one would like to pay taxes! The state is, therefore, expected to give and it is not our problem where it comes from as long as they don’t take it from us! We have no tax culture to speak of and that has been deeply rooted in us since primary school. Teachers tell parents, for example, “we cannot issue a bill to you, but do bring money so that we co-finance such and such”, which is, of course, a grey market. How are children then expected to become responsible if we teach them from an early age that such behaviour is completely normal? You cannot change a per-son when they are 40 years old, which is why we must first truly agree among ourselves whether


Economy

we want to have a normal and well-arranged country where we pay taxes into the budget and then finance public projects from it. We must transfer this to our children.

Q One big problem in Slovenia is a culture of systemic late payment, what are your thoughts on this?A This is beyond a shadow of a doubt the fault of the state that has tolerated the so-called construction barons who supported different political parties and were, on account of that, allowed to carry on their inappropriate busi-ness practices or their attitude towards sub-contractors. This practice then spread from the construction industry to the entire economy. The state is to blame for this as are all the political parties. There is a known saying that politics is akin to the oldest profession in the world and if this is true, then politicians should act as the members of this guild as it is crystal clear who the boss is, i.e. the madam and not some up-and-comer.

Q As already mentioned, this demonisation of politics and the proclamation of being apolitical has reached ridiculous proportions which is why people no longer understand what politicians are supposed to do, we even have Members of Parlia-ment who say that they are not politicians. How are they then supposed to adequately steer state policy, economic development, etc.?A You know, we have had cases where even Ministers said they were not politicians. Such people should never even be in gov-ernment because they do not understand why they are there. Such people should first be given a basic social science diction-ary to read and learn about politics. As men-

tioned, this is a normal way of exercising the interest of individual social groups. But politics is not the only example where we have had our terminology completely mixed up. A good ex-ample is the term “technocratic government”. This means that the government conducts cur-rent affairs, whereas we obviously think that it may not have in its ranks any politicians or members of political parties, which is utter nonsense. As long as the parliament adopts de-cisions, it is all politics and political decisions. The notion of being apolitical and the like are all constructs contrived by the Slovenian po-litical circles to justify their mistakes.

Q Recently, we have been talking about foreign investments and their urgency. At the Faculty of Economics, the FDI Summit was organised for the second year and it clearly defined the methods for attracting and steering foreign investment. Not much is happening in reality, investors are not coming, everyone is talking about the unat-tractiveness of Slovenia, the lack of credibility on the part of the state, etc. How do you see the role of foreign investment and how do we become credible, interesting, attractive, etc.?A When we start talking about foreign investment and potential real projects, a sort of “invisible mechanism” is triggered in Slovenia that stifles it. Journalist can barely catch their breath while expounding potential scandals and the media is fast to point out who will “pocket” everything and how much, etc. This is, plain and simple, an unfriendly or untrustworthy environment for investors. In this regard, I am firmly convinced that our environment is much more trustwor-thy and friendly than we make it out to be. It is a fact that the banking industry should be brought to a recovery as soon as possible, and another fact is that political decisions in these segments were poor – what has been going on with Nova Ljubljanska banka for years was un-necessary because things were quite clear. Let us be completely fair and say that our bankers in shiny shoes were part of the international fi-nancial bubble; they cared only for themselves, spoke of profits to the media …, designed their own payment and bonus schemes that gave them astronomical earnings. But when real de-velopment projects of viable companies needed to be financed, managers of those companies had to turn to foreign banks because our bank-ers were simply too easygoing to deal with actual business models of companies and risk assessments.

Q Many foreign investors already present in this country mention excessive taxes, wages and sala-ries, and bureaucratic obstacles, but also often admit that our investment environment is not that bad, that their business is not that bad and that they are leaders within their corporations.

Is the actual problem a sort of general social cli-mate, negativity, etc.?A Yes, we Slovenians are truly an odd nation which is costing us dearly of late. We are kind of self-destructive. When it comes to boasting about our own family, we are prone to exag-gerating, all of our families are “wonderful”, they have wonderful children and grand-children, etc., but when it comes to our country, we think that we will have to go to confession if we say something nice. A good example is last year’s self-assessment report of Slovenian managers that ranked Slovenia last in Europe and even globally. One could literally cry if all of it were true. But the situation is not like that. I wonder who the managers who an-swered the questions were. They were probably the ones that became managers when the econ-omy “flew” on its own while they played golf and allocated donations among their friends. Now, when one has to prove oneself, work, save com-panies … they complain that everything is bad because they are simply not up to the job and up to the problems they must resolve.

Q Are you optimistic about economic develop-ment in Slovenia over the next three years; where do you see potential breakthroughs, the return to growth and primarily the return to social opti-mism?A I have always been optimistic, even dur-ing the worst years. My colleagues always wondered where I got such optimism from. It seems to me that if you spread pessimism, it takes root even though there is no reason for that, which is why we have to spread optimism, especially as we have realistic reasons for do-ing so. If I compare the income of individuals and the general social standard in Slovenia in 1990 and today, I can say that the jump is outstanding. Those born after 1990 don’t re-member that you could not buy a flight ticket once, go on vacation abroad, that shortages of basic goods were frequent, and they are prob-ably a little spoiled because of that. They must accept the fact that we are born at different points of economic cycles. If one is born at a point of the cycle when things are bad and things are currently better, they are satisfied, while if things are the other way around, they think that they have fallen victim to injustice. The fact that the world is turning must be in-corporated in all areas of our education system and in the upbringing of children so that they understand the events around them. The above is just as important as having ethics and moral-ity being integrated into every facet of educa-tion and the entire system of the functioning of the state. At the Faculty of Economics, we have incorporated the elements of ethics and morality into all processes. Ethics and morality are something that one has to live and cannot be activated with the push of a button.

At the private level, everyone understands “how long their

blanket is” and they are forced to apply household logic – even though unhappily. At the national level, we place impossible demands

on this unfortunate country. We would, for example, like to have an easy lifestyle as it belived to be in

Mediterranean, residential surface areas as they have in America,

technological development seen in Japan, education and health enjoyed in Sweden, while we would prefer our taxes to be as they are in tax havens,

i.e. no one would like to pay taxes!

Economy

Record Attendance at

Der Deutsche BallThe German-Slovene Chamber of Commerce organised the fourth German economy dance, the Der deutsche Ball, for its members and their business partners. The dance has become a highly regarded tradition in the business com-munity in both Slovenia and Germany. In fact, many German companies operating in Slovenia invite their business partners and owners from Germany to enjoy the special event. The dance, which was attended by 250 top managers from more than 50 companies, brought to the Hotel Kempinski Palace Portorož the scent of Germany. A well known German Band, Sm!le, German cuisine and an after dance party last-ing through to the early hours brought the guests sufficient reason to be a part of the German-Slovene business community. The proceeds from the tombola went to the charity, Botrstvo, which financially supports children from socially disadvantaged families to enable and ensure a reasonable living standard. There is no reason to panic if you missed the dance this year, put 17 October 2014 in the diary when the next “Der deutsche Ball” will be held.

The German-Slovene Chamber of Commerce has left behind successful year 2013. Year by year numerous companies decide to become a part of the German Slovene network. This year 41 new members found their way to the German-Slovene Chamber of Commerce.

GERMAN-SLOVENE NETWORK IS GROWING FROM YEAR TO YEAR

CONTACT USPoljanski nasip 6SI - 1000 Ljubljana

Tel.: +386 1 252 88 60Fax: +386 1 252 88 69

E-mail: [email protected];slowenien.ahk.de

Our support for your business:

• Workshops »How to enter on German market«• Fact find missions• Business delegations• Sector specific know-how transfer workshops• Business partner search• Legal and Tax information• Business development• Networking

At the end of the year we would like to express our gratitude to all our member companies and business partners and wish them a successful new year.

At the end of the year we would like to express our gratitude to all our member companies and business partners and wish them a successful new year.


Economy

Interview: Professor Pankaj Ghemawat, leading global management thinker

Prosperity for PeaceIn 1991, Pankaj Ghemawat became the youngest person in the history of Harvard Business School to be appointed a full professor. He was also the youngest “guru” included in the guide to the greatest management thinkers of all time, published in 2008 by The Economist. He was named one of the world’s top 50 business thinkers and awarded the Thinkers50 Best Business Book Award for his latest book, World 3.0 – Global Prosperity and How to Achieve It. This impressive CV makes him more than qualified to shed light on the political and economic past, present and future of the world and also on Slovenia, sharing his thoughts as the keynote speaker at the 26th Presidential Forum, organised by IEDC-Bled School of Management and in an exclusive interview for The Slovenia Times.

By Simon Demšar

Q Is global prosperity a truly achievable goal or just a myth?A Depends on what you mean by prosperity. We are living through a period in which, since the beginning of the industrial revolution, not only has the world population multiplied sev-eral-fold but world per capita income has mul-tiplied several-fold, too. It is only in the 19th century that significant portions of the world’s population started to live at a better than sus-tenance level. So, just going by the record of the last 200 years, we are now more prosperous than we were at the beginning of this period. While I think that there are some challenges

associated with the resource loads on the en-vironment in particular, higher standards of living for people around the world are clearly what is going to be needed to keep the political peace.

Q So, how does this prosperity look for an aver-age African, Indian or Chinese?A I tend to start with basic needs. In Africa or India, for example, people are without basic health care, education, running water. So, a necessary if not sufficient component of pros-perity for all is the notion that we shouldn’t have hundreds of millions of people who are still living that close to the margin. Africa is quite worrying despite the growth rates that have been recorded in recent years. In Africa and India, there are still significant instances of the underclass living untouched by the fruits of the increases in per capita income.

Q Don’t you think that there are simply too many people and too few resources in the world? Do you agree with our President that while resources are limited, our intellect is not?A When I look at the forecasts of the world’s population and think of food growing ability, it doesn’t strike me as the critical constraint. The major global resource that I am worried about has to do with clean air and relatedly, energy. It is pretty clear that we are on a scary trajectory in terms of global warming. The scenarios that people are talking about are a little bit of warm-ing versus a lot of warming or no warming at all. Even there, I think that for the incentives to exist to develop the technology – because everybody agrees that simply asking people to consume or drive less is not going to deal with global warming – we need some fundamental breakthroughs. I think it is more likely those breakthroughs will occur in a world where the innovators see the world as their market rather

Q During the Forum you met with the Slovenian President, Borut Pahor. Did you give him any recommendations on the future development of Slovenia?A I had two points to make. The first is that a lot of the problems with globalisation are inside our heads rather than out there. If we want to tap some of the fruits of globalisation we need to work on opening ourselves up inside as much as we need to work on free trade deals. My second thought was specifically focused on Slovene businesses. They need to stretch much farther, especially given forecasts for the EU over the next 15, 20 years.

So you think the world is a global village? Think again.According to Professor Ghemawat:• 95% of our information is from

local sources• 90% of people will never leave

their country• 85% of our Facebook friends are

from our own country• 90% – 95% of charity stays at

home• 98% of phone calls are accounted

for by local and regional calls

Professor Pankaj Ghemawat; Photo: IEDC


Economy

than individual countries. My biggest concern has to do with global warming. I have some degree of concern about water; I would say that land actually probably falls fairly low down.

Q Historically, increased welfare often triggered increased population. Can the same trend con-tinue if prosperity rises?A This is not in line with most of the stuff we’ve seen over demographic transition. It’s been interesting to watch the UN’s forecast of world’s population, fluctuating by one billion souls 30 or 40 years down the road. The as-sumption that more wealth means more kids: even in the poorest countries we have seen that there is a demographic transition. I’m not worried about the ability to feed the world’s growing population if the right choices are made. The thing that really worries me is what we’re doing to the atmosphere, what this may do to temperature conditions and the massive dislocations it may cause.

Q As you prove in your latest book, the world is not as globalised as we thought. Now that we have acknowledged this fact, how should we use it to our benefit?A First of all, it gives people who believe that globalisation is mostly a positive force, the room for additional integration. If we already thought that the world was completely glo-balised there would be nothing to campaign for. It is only when we realise that actual trade levels are a fraction of what you would expect from the standard economic models that you start to see that there might actually be some gains still to be tapped by, for instance, increas-ing trade flows. The second thing has to do with people who are convinced that globalisation is bad. Having an accurate handle on the extent of globalisation helps reduce or in some cases even reverse some fears that people have about globalisation. Let me give you a couple of examples. In large Western European countries when you do surveys as to how many of the people living in their country are first generation immigrants, people usually end up with estimates in the 24% - 26% range, whereas the average for the six countries I have checked is 8%. Maybe the debate about immi-gration might be a little bit better if it weren’t anchored in such a misleading sense. Then I look at crazy stuff, like somebody arguing that what the US needs to do to solve its unem-ployment problem is, basically, stop imports from China. Products made in China account for about 2% of US personal consumption ex-penditure. Once you realise that, it becomes a little bit harder to blame US unemployment entirely on those products made in China. One of the troubles with overstatements about globalisation is that it further scares the people who are already scared of globalisation while

also casting doubt on our ability to manage the side effects, all of which means we can take a more optimistic perspective. If we regard it not as some giant tsunami that is going to smash everything that we have built but as something that is rising slowly, something that can be managed, that can be channelled.

Q History has taught us that all political sys-tems in the world collapsed after a few hundred years. What is your prediction for the long term political future of the world?A Every age is different but I do think our age is different in the sense that it is only in the last 200 years that we’ve seen the possibility of material progress. So, I’m particularly uncom-fortable with things that go all the way back to the Stone Age and say this will apply today. The reassuring thing when one looks back a few millennia is that over time we have figured out how to live in larger and larger political entities. So, in the Stone Age, it was groups of two to three dozen gatherers and if you weren’t in my group I’ll try to kill you be-cause otherwise I’ll suspect you are trying to kill me. By the Middle Ages this graduated to city states and after the Treaty of Westfalia, the nation state came in. And so we’ve gone from political units of two to three dozen people to political units of at least a couple of million peo-ple. One can do some periodic extrapolations on this basis. I remember doing it just for fun once. There are always fluctuations in the short run and in the last 50, 60 years we’ve actually seen the tripling in the number of independent countries. But if you work on longer dynamics, maybe we’ll be bound to world government by 4080 or something like that. I use different forecasting bases; it is always sometime after 3080, so it’s not an immediate concern to me. The other thing that is a little bit of a bonus about this is that historically, fear of people outside the group has been used to build group solidarity. It is not quite clear what mecha-nism at the global level is unless the Martians are coming. But having said that I think that we’ve gradually learned how to expand the bounds of cooperation beyond the people who we know personally and the hope is that maybe we can continue this process.

Q What good things has the financial crisis brought to the world?A The most positive thing, I would say, is that it forces certain realism about things, which can be helpful after a period of detachment from reality. John Kenneth Galbraith said it best in his book Money, written 40 years ago, saying that every generation has to re-learn the limits of debt. We just now seem to be requiring more than once-in-a-generation reminders how stupid it is to assume that you can continue to leverage, leverage,

leverage, without things ever turning bad. It is not just Slovenia. I look at India right now. Many of India’s large companies confused their ability to borrow money from foreigners with international competitiveness. So, now they are sitting there with huge debt loads, a falling rupee, scratching their heads, saying, ‘Oh, boy, we have to do asset disposals now because it didn’t work out so well.’ What’s more striking to me than anything else are two things. One is that it should be obvious, based on the experience of the last few decades that trying to run your country in a way that requires capital markets to always be open and ac-cessible on good terms is not really a very prudent way of running a business, let alone a country, but that’s what so many countries have been doing for long periods of time. The second thing that is surprising to me is how little real re-thinking there has been of financial markets and financial regulation as a result of what we just went through. When I think of some of my colleagues who teach finance: their attitude hasn’t shifted at all as a result of the cri-sis; markets are still efficient most of the time etc. I would have expected to see more re-think-ing by now of what controls need to be placed on financial markets to reduce the likelihood or re-run of the crisis in less than a generation.

Q Who, in your opinion, rules the world? Who pulls the strings?A There are some financial linkages on in-terlocks between companies through various financial investment agencies. Having said that, I’m more struck by the democratisation of the world with things fragmented. There was a time after WWII when the US dominated eve-rything. It continues to be the case for military expenditure but when you look at most other measures, US dominance is no longer quite what it was even if it still exists. It is prob-ably harder to imagine a few people behind the scenes controlling everything. There are 7 bil-lion people on the planet, most of them living in independent countries with self-determination and having their ideas about what they would like to do. I don’t see some Bilderberg guys [a private conference of 120 to 140 people of influ-ence] influencing the Chinese communist party or other countries, for example.

Professor Pankaj Ghemawat and Slovenian President Borut Pahor; Photo: IEDC


Economy

Invest in the Pokolpje RegionIn south east Slovenia things are changing. The Pokolpje region, with its long tradition in the textile and metal industries, has been affected by the transition of the 1990’s. The crisis of the past few years made things worse and unemployment increased at an accelerated rate. When SECOP decided to move production to the Slovak Republic, the region seemed to be on the edge of collapse.

than 20 SMEs decided to move to or set up in the region.

More and more larger companies are in-terested in setting up in Pokolpje. In 2012, Akrapovič, d.d. decided to move their produc-tion to Črnomelj and companies including Tomplast, d.o.o. and Polycom, d.o.o. opened subsidiaries in the region.

Pokolpje has a large number of plots, fully-equipped with infrastructure, at competitive prices. In Pokolpje there are six main business zones, the largest, TRIS KANIŽARICA is locat-ed in Črnomelj. The zone surface is 106ha with a further 20ha of land available for construc-tion. The area is equipped with all required infrastructure and is priced at EUR 9 per m2 (land and utilities).

The other main zones are: • Pri Pildu Metlika: Zone surface is 17.5ha.

71% of the plots are available. The area is equipped with the basic public utility infra-structure. Price per m2 is EUR21.10 (exclud-ing VAT) and under certain conditions can be reduced by 50 % of the estimated value.

• PSC Vrtača Semič: Zone surface is 19.74ha. Approx. 40% of the area is available, inves-tors can purchase land owned by private persons. This is the only zone in Pokolpje with optic-fibre connection. The zone is fully equipped with public utility infrastructure. Price per m2 is approx. EUR10.

• Business zone LIK 1 Kočevje: Zone surface is 7.07ha. 40% of the privately owned land is available and can be purchased. The zone is fully equipped with public utility infrastruc-ture. Price per m2 subject to agreement.

• Business zone LIK II: Zone surface is

“The SECOP decision to move was a breaking point for us” says Peter Črnič from RIC Bela krajina, the sub regional development agency helping investors to set-up in the region. “We realised that more should be done to keep industry here and that we must put in more effort and try harder to get new investors”.

About three years ago, in 2010, municipali-ties from Pokolpje started to negotiate with the government for additional help for the region. As a result of these efforts, the Pokolpje pro-gramme was adopted. Amongst other ben-efits of the programme, public tenders for the Pokolpje region, tax relief and reimbursement of employer’s social security contributions were introduced, making Pokolpje a friendlier place to invest. Over the last three years more

DEVELOPMENT AND INFORMATION CENTRE BELA KRAJINATrg svobode 3, 8340 Črnomelj

Peter Črnič, director

e-mail: [email protected]: +386 40 740 738

13.5ha. Approx. 50% of the land is avail-able to future investors either as individual or separate plots. The zone is fully equipped with public utility infrastructure. Price per m2 is EUR 17.4 + VAT.

• Industrial park Predgrad: Zone surface is 2.6ha. 2ha of vacant land is still available. The park is partially equipped with public utility infrastructure. Price per m2 is EUR 8.

In Pokolpje there are also business premises available for investors to lease or buy, e.g. in the company Beti, d.d. there is 6,531m2 of business premises available.

The high unemployment in the Pokolpje re-gion (4,540 in September 2013), means there is a qualified and competitive labour force avail-able for investors. A high percentage of the un-employed are skilled in various technical tasks Labour costs are lower than average.

Pokolpje is strategically located in the vicin-ity of the Port of Rijeka. The construction of the development axis 3 and 3a for additional connections to Ljubljana, Austria and Croatia is planned in the near future. Now that Croatia is an EU member, the movement of goods and services will be liberalised and many adminis-trative barriers will be removed.

RIC Bela krajina has been very active in at-tracting FDI to the Pokolpje region: with the help of SPIRIT Slovenia we offer support and information to many potential foreign inves-tors, mostly from Italy but also from Sweden, Macedonia, India, Russia and Croatia. We participated in international investment fairs – MIPIM Cannes and EXPO REAL Munich and international business conferences and forums, including CORKMEET, FUTURALLIA Istanbul and AMERICANALLIA Guadalajara, where we presented investment projects from the Pokolpje region and business opportunities and benefits for investment and employment in the region. With the aim of attracting FDI in the region, we used lead generation services for the first time and held meetings with potential for-eign investors from the USA that are interested in investing in Slovenia – in the Pokolpje region.

With its strategic location, available qual-ity workforce, business opportunities of the Pokolpje programme, available plots for eco-nomic activities and support from develop-ment institutions, the Pokolpje region is the perfect hub for companies that want to settle in Europe.

Cycling along the Mura River. Rejdno dobro. Sparkling Wine. Rejdno dobro. “Prleška Tünka.” Rejdno dobro. Pumpkin Oil. Rejdno dobro. “Špricer” from Goričko. Rejdno dobro. Castel Grad. Rejdno dobro. Vulcania. Rejdno dobro. Homemade Bread. Rejdno dobro. “Pereci.” Rejdno dobro. Prekmurje Ham. Rejdno dobro. Orchid from Dobrovnik. Rejdno dobro. Thermal Water. Rejdno dobro. “Radenska Slatina”. Rejdno dobro. Spoiling Yourself. Rejdno dobro. Pomurje. Rejdno dobro!

*Really good. Come and experience by yourself!

www.rejdnodobro.si

*


Economy

Interview: Zev Gurion, Executive Director, Akron BioMedical Corridor, Akron, Ohio

Government cannot create entrepreneurs but must support themDr Zev Gurion visited Slovenia in October 2013, as a keynote speaker at the 4th COBIK Conference, organised by the Centre of Excellence for Biosensors, Instrumentation and Process Control. Professor Maja Makovec Brenčič, Chair of the Conference and Vice Dean at the University of Ljubljana, emphasised that connecting and networking high-tech expertise and innovations of Slovenian researchers with potential investment opportunities in the international environment is what COBIK has striven for since it was founded. COBIK s strategic goal has always been to create top research solutions with high market and business potential and fast transfer into industry. Dr Gurion was invited to be a keynote speaker because of his more than 40 years experience in bio-tech research and business.

By Hermina Ogrič

programme management was not as good as I thought it should be. This led me to move to the marketing department in 1981 and for the next 25 years I was working with Monsanto, Celanese, a JV of Monsanto and Exxon and finally for Exxon in a variety of executive management positions in strategic planning, commercial development, sales, marketing and overall business management. In 2005 I retired from Exxon and established my own consulting company helping international clients with strategic planning and global business development as well as working with the city of Akron and the State of Ohio in at-tracting international start up companies and

helping them grow. I am also a board member of a technology incubator in Israel as well as Executive Director of the Akron, Ohio, Bio-Medical Corridor.

I believe that while technology is very im-portant, the crucial part is to be successful in commercialisation. For this, I think it is very good to have a background in science or engi-neering before you move to the commercial side so you can have a general understanding of the products and technology.

Q Participants at the COBIK conference heard that you strongly recommend putting companies into the real world, out of their comfort zone.

Q Can you please share a little bit about your professional background? A I grew up in Israel and got a B.Sc and M.Sc in chemistry and physics from the Hebrew University in Jerusalem. I did my Ph.D in polymers at the University of Manchester In-stitute of Science and Technology (UMIST) in the UK and after graduating, had a few jobs in research and development as well as part time lecturing in a college in Israel. I was recruited by Monsanto US in 1976 and spent the first five years in technology working on research projects. Although the projects were interest-ing they were directed by the commercial department and I felt that their direction and

Zev Gurion, Executive Director, Akron BioMedical Corridor, Akron, Ohio; Photo: Mediaspeed


Economy

However, you also pointed out that in some phases, it is very important that state and public money plays a bigger role.A My talk at the COBIK conference focused on entrepreneurship and start up companies and for this, it is critical that entrepreneurs step out of their comfort zone and are not satisfied with the current situation. A feeling of dissatisfac-tion is needed for individuals to leave what they are currently doing and become entrepreneurs and start businesses. Since they are taking a risk, they need to have a strong belief in their venture and passionately want to succeed.

One of the main challenges for entrepre-neurs and start up companies is to get funding. Their company is in a very high risk situation because it is still not clear whether they will succeed or not. So, at this stage, it is very dif-ficult to raise money from venture capitalists (VCs) and most of the funding will come from friends, family and angels. But family money is limited and it is not easy to find angels and so the state and government organisations have a key role at this initial, high risk stage. They should create a system which offers start ups money in the form of grants or loans. The companies that receive it should be carefully screened and assessed and money should not be given automatically. In addition, start ups have low valuation and if they get funding from angels or VCs, they will have to give up a sig-nificant part of equity in their company, which they do not like. That’s why the state and public money have such an important role at the start up stage of companies, although it is very im-portant to design the system properly and not impose a burdensome bureaucratic system.

Q Akron is a unique combination of public con-sensus, focus (biotech, biomedicine), commit-ment, including political commitment and high potential. How did it become a success story?A There are three major reasons: strong lead-ership with a clear vision; a long term perspec-tive; and the skills to implement it. Our mayor has been in office for over 25 years and is a very motivational leader. Effective collaboration be-tween the private sector, institutions and city government is also important. Akron has cre-ated a structure where these bodies collaborate together under the leadership of the mayor. And finally, entrepreneurial infrastructure with a network of resources capable of support-ing the vision and making sure it is successfully implemented. Implementation is critical and a vision without effective implementation is just frustrating and wasteful.

Q What would you recommend to Slovenian bio-tech start-ups? Is there a recipe on how to move from local innovation to successful business growth?A Biotech start up companies need to ensure that they have the following key elements:

proprietary technology, ideally protected with IP or at least with effective trade secrets. This will give them a competitive advantage; clear understanding of their competition and a value added proposition detailing the value to the end user. And what differentiates them from the competition is a clear understanding of the market requirements and a strategy to enter the market and acquire customers. Also, a strong management team with broad experience. Many start ups start with management which consists of the original inventor which in most cases is a technical person. This may be good to get the company started and reach prototype stage but as the company moves forward, it needs to broad-en and change its management team. A strong commercial leader is needed to lead a company towards commercialisation and market entry. And another crucial factor: financial resources and a funding plan. Start up companies will be better off getting smart money rather than VC money. They should try to get funding from bodies that do not take equity (mostly public bodies) and postpone equity investments until they reach a reasonable valuation.

Q What makes a researcher become a good, suc-cessful entrepreneur?A A big question is whether entrepreneurs are born or trained, I think it’s a mixture of both. In order for a researcher to turn into a success-ful entrepreneur he/she needs several things. He/she needs to have a personality which is not satisfied with just doing research, publishing papers and getting patents. They need to want to see the invention commercialised so it can benefit society and bring significant profits. But an entrepreneur should have a good sup-port ecosystem that encourages and fosters entrepreneurship and it also helps if there are role models who have made the successful transition from researcher to entrepreneur.

Q What should be the role of the support envi-ronment? A The supporting ecosystem plays a very critical role. I would divide this into 2 broad categories: intangible – it should provide suc-cessful role models, a culture that values entre-preneurship and business success; and tangible – a strong supportive and effective ecosystem and network which can provide business devel-opment support, funding and the needed skills and workforce.

Q May we ask you for some recommendations for Slovenia? A As I said at the conference I would recom-mend the following:First of all: have patience! It’s a long term pro-cess especially since Slovenia is still influenced by the old culture that places more value on research than on business entrepreneurship

and has the state more involved than the private sector. Create state and government programmes which provide financial support to entrepreneurs and start ups, but the empha-sis should be on supporting them rather than controlling them. As I said, government cannot create entrepreneurs but is critically needed to support them and help them grow. The state took very important action in establishing the Centres of Excellence. Now it should take two more steps to enhance their effectiveness - en-sure more commercial and business experience in them rather than just technical expertise and conduct more market assessment and commercial viability assessments of new pro-jects before they get state funding. And turn the Centres of Excellence into “for profit” cen-tres with real ownership by the private sector. Have the private sector invest in them so they will have direct accountability for the success of the Centre - they will bear the losses if they fail but will have a chance to profit if they are successful.

Q Is it possible to overstep any of stages toward success?A It takes time especially if you need to over-come an existing culture. Focus on highlight-ing role models and create the right ecosystem and government programmes. As soon as you get some successful exits, publicise them and celebrate their success. This will help advance the culture of entrepreneurship!

Create state and government programmes which provide financial support to entrepreneurs and start ups, but the emphasis should be on supporting them rather than controlling them. As I said, government cannot create entrepreneurs but is critically needed to support them and help them grow.


Economy

Ljubljana Forum 2013: Managing water & transport in the Danube region

Co-Creating the Future of European citiesOver 50 speakers from the European Union, the European Investment Bank, governments, municipalities, private businesses, NGOs, futurists and consultants presented their views, experiences, projects and future visions about urban development in the fields of water and transport management in Europe at the 3rd Ljubljana Forum, held in Ljubljana, Slovenia on 17-18 October 2013.

By Helena Habjan

“Building regional leadership cooperation is crucial for creating future development models for the cit-ies to enable them to pursue the goals of Europe 2020,” stressed the Chairman of the Ljubljana Forum and President of the GFS Institute, Blaž Golob. Zoran Janković, the Mayor of Ljublja-na, the co-organiser of the forum, highlighted that “Managing water and transport is among the most important issues for the successful future de-velopment of cities.”

During the two days, speakers offered im-portant insights on the key elements for future city development and proper water and trans-port management. As Lorenzo Madrid, Senior Consultant from Redmond, USA explained: “The three pillars for the successful transformation of cities are good management, smart leadership with smart policies and technology.”

“One of the aims of the Ljubljana Forum is how a more decentralised Europe can be achieved. To do this, cooperation is a must. Europe also needs to be aware that investment in infrastructure is a good tool against the crisis.” according to Miran Gajšek, Head of Department for Urban Plan-ning, City of Ljubljana.

Andreja Jerina, State Secretary, Ministry of Agriculture and Environment, Republic of Slovenia highlighted that “It is of crucial im-portance to set the priorities correctly and invest public money in the most sustainable and smartest manner. The macro regional approach offered here at the Ljubljana Forum of bringing together various stakeholders is a good one”.

There are various industry solutions and management models available today to enable city planners and managers to better operate a city and plan its development, by better under-standing the environment, anticipating prob-lems, coordinating resources and enabling the

proactive participation of citizens to enhance the quality of living in urban areas. “Now, it is time for intelligent cities,” said Michele Leonar-di, Chief Operational Officer at IBM Slovenia, who presented the key findings of their Trans-portation Maturity Model for Ljubljana with recommendations for key investment areas toward smarter transportation in the region.

The issue of water being taken for granted was also highlighted. “Since the majority of our potable water comes from groundwater, it should be treasured and carefully managed,” stressed Marko Komac, Director of Geological Survey of Slovenia. The International Sava River Basin Commission (ISRBC) presented its remarkable approach to implementing regional projects for the Sava river basin which “… is cohesive, inte-grated, transparent, aligned with EU strategies, sub-regional, pragmatic, practical and educational. The approach offers a best practice example that can be replicated elsewhere,” explained Dejan Ko-matina, Secretary General of the International Sava River Basin Commission.

In order to gain project funds in the 2014-2020 period, it is essential to cooperate and share. László Baranyay, Vice President, Eu-ropean Investment Bank stressed that cities must “use the network, use the macro regional cooperation tools and support each other. Use the EIB and other financial institutions to develop and implement new projects to achieve development of your cities”.

The benefits of cooperation and strong part-nerships were highlighted on the second day of the forum when six major projects for the ur-ban development in water and transport man-agement in the Danube region were presented.

Aimed at promoting prosperous urban projects, the annual Ljubljana Forum Award was granted for the first time for the Ada Bridge in Belgrade designed by architect Peter Gabrijelčič, chief engineer Viktor Markelj and investor the City Of Belgrade. The award was presented by the President of the selection committee, architect, Boris Podrecca.

For more information visit: http://www.ljubljanaforum.org/2013.

1 Ljubljana forum, City Mayors & Chairman & Co Chair and Moderator; Photo: Peter Irman

2 Ljubljana Forum, Round table on Job Creation and the Role of Cities in Europe; Photo: Peter Irman

3 Ljubljana Forum, Architect Gabrijelčič & Ada Bridge Belgrade; Photo: Peter Irman

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Economy

Interview: Ibon Zugasti, Partner/Director, Prospektiker; General Manager, LKS Market Research; Chairman, Millennium Project Node, Spain.

Future of the citiesCities occupy 2% of the surface of the earth but are responsible for 80% of the world’s CO2 emissions!Ibon Zugasti, the well-known “foresighter” is also the President of the European Regional Foresight College and national coordinator in Spain for the PREPARE Network. Since 1999, Ibon has led several European research projects and other consulting projects in foresight, regional development, sustainable development, training, and energy. He is also an advisor for the Committee of the Regions of the EU for the launching of the European Platform on Territorial Foresight. Since 2010, he has been the Chairman of the Millennium Project in Spain and President of the European Regional Foresight College. He is the co-author of numerous foresight publications and research.

By Helena Habjan

Q What exactly does “foresight” mean and why is it so useful when planning future (urban) de-velopment?A According to the European Commission, in essence, foresight provides a framework for a group of people concerned with a common

stakeholders including the business sector and NGOs ) to develop a vision of the future and pathways toward these visions.

Territorial foresight exercises are useful when planning urban development since they raise awareness of major trends like climate

issue (e.g. the future of EU manufacturing, R&D and innovation priorities, transport and mobility, etc.) to jointly think about the future in a structured and constructive way. Foresight provides a number of tools to support par-ticipants (i.e. policy makers, experts and other

Ibon Zugasti at Ljubljana forum 2013; Photo: Peter Irman


Economy

change or urban sprawl, their participatory dimension, including various stakeholders, al-lows a consensus to be reached to change the development pattern and they are often the first step before adopting a strategy of sustain-able development such as green planning.

Q Why do we need events and conferences, such as the Ljubljana Forum, on the future of cities?A The future of water and transportation management in Europe and the benefits of territorial foresight for addressing the urbani-sation challenges were the focus of this year’s Ljubljana Forum. Over 130 participants had the opportunity to exchange their knowledge, experience and project ideas and to establish new ways of cooperating amongst themselves and potential investors.

We need events and conferences like the Ljubljana Forum to stress the importance of building such cooperation among various stakeholders in order to create future develop-ment models for the cities to enable them to pursue the goals of Europe 2020 and beyond.

Q Which key challenges are cities facing today and in the future?A According to the research of the Millennium Project, a global independent think tank where we cooperate with the GFS Institute – the Mil-lennium Project Node for South-East Europe and organiser of the Ljubljana Forum on the future of cities – there are 15 global challenges that the world is facing related to issues such as water, energy, population and resources, sustainable development, education, gender equality, science and technology, etc.

Cities play a key role in implementing suc-cessful long term strategies to face such chal-lenges.

Q How should we react and plan today to over-come these major challenges?A According to the United Nations, cities oc-cupy about 2% of the surface of the earth but they are responsible for 80% of CO2 emissions and 75% of world energy consumption.

Nevertheless, medium and large cities can also be the ideal scale to combat climate change because they manage transport, traffic, land use... They can set ambitious targets to limit their impact on the environment according to some of the foresight exercises carried out in Europe.

Q Can you present some examples of successful urban planning in Europe?A The activities of the European Regional Foresight College, that merged with the Euro-pean Millennium Project Initiative in 2012, have contributed to identify some of the best practices of territorial foresight cases through the report “Regional Foresight 2.0 Experiences: Gipuzkoa / Wallonia / Danube Region”.

The College decided, within the work pro-gramme drafted for 2008-2010, the identifi-cation of three European regions at different levels of development, one in the north, one in the south and one in the east. Three regions whose respective foresight exercises stimu-lated innovation, competitiveness and regional development successfully.

These three cases in Gipuzkoa (Spain), Wal-lonia (Belgium) and the Danube region (related

Ibon Zugasti (in the middle) President European Foresight Collegue at Ljubljana Forum 2013; Photo: Peter Irman

to the Balkan area) show that successful future urban planning in Europe is possible and are clearly a reference for the other EU regions and cities. Some more examples can be found in the initial survey done for the Committee of the Regions of the EU, on the forward plan-ning and foresight work undertaken by many regional and local authorities.

Q A good examples of how to organise busi-nesses and involve stakeholders and employees are ‚‘cooperativas‘‘ in the Basque region of Spain where you come from. Cooperatives are do-ing well during the economic crisis and could be an example for moving forward, what is your experience in working with them? Do they use foresight studies to design business strategies?A The Institute I lead, PROSPEKTIKER, in collaboration with the LKS, MONDRAGON Cooperative Corporation (the largest business corporation in the Basque country and the seventh largest in Spain) and The Millennium Project, in 2012 conducted a real-time Delphi study to explore the future of cooperatives and other business approaches. It identified the key factors affecting the future of cooperatives as well as the probable future development of these factors. An international panel of over 100 experts from 38 countries provided input.

The panel concluded that the development of cooperatives can be a major generator of em-ployment and development. Cooperatives fared well, compared with other business models, for improving the standard of living. Thus the co-operative movement should be considered as a significant option for developing economies to help reduce the rich-poor gap.

According to the United Nations, cities occupy about 2% of the surface of the earth but they are responsible for 80% of CO

2 emissions and 75%

of world energy consumption.Nevertheless, medium and large cities can also be the ideal scale to combat climate change because they manage transport, traffic, land use... They can set ambitious targets to limit their impact on the environment according to some of the foresight exercises carried out in Europe.


Economy

Interview: Gašpar Gašpar Mišič, President of the Management Board, Luka Koper, d.d.

Logistics is a Comparative Advantage of Slovenia that Deserves Attention and SupportGašpar Gašpar Mišič assumed the leadership of the Port of Koper in October this year. He joined the company straight from the cabinet of Prime Minister Alenka Bratušek, where he was the secretary in charge of the coordination of large infrastructure projects and assisted in the recovery of companies in distress, giving rise to much speculation. Whatever the case may be, the dust settled quickly and he got down to work. He says that the Port of Koper is in excellent financial shape and that it still has plenty of development opportunities, the realisation of which is, to some extent, prevented by the lack of awareness on the part of Slovenian politics about the importance of logistics.

By B. K.

sociated with the port are not being implemented and the country is not taking advantage of its full potential. How would you explain this?A The Port of Koper and the maritime trans-port route linking Slovenia to the globalised world is a key comparative advantage of our country. In the past, the country lacked the awareness of this. The Port of Koper is an im-portant link in the European logistics chain, however, our operations are to a large extent dependent on land connections with the in-land areas that we serve. This is especially true of the railway connection. In the past, there was not enough political will and we were not prepared to implement infrastructure projects that are of strategic importance to Slovenia due to its remarkable geographic position. Slovenia has a sea, which is its advantage over the coun-tries of Central and Eastern Europe that do not have a coastline. The Port of Koper has an excellent location and is the shortest logistics route to the heart of Europe for overseas prod-uct flows. The countries of Central and Eastern Europe are supplied daily via the Port of Koper, as only a third of our throughput is intended for the Slovenian market. In short, there are plenty of arguments for the claim that the port is truly of strategic importance for the country.

Q Pier 3 and the second Koper–Divača railway track are two projects that our generation has been hearing about practically since kindergar-ten however, with the exception of some studies, promises and political platitudes, nothing hap-pened. Is this because the two projects might be oversized and not economically viable or have they become caught up in the classic Slovenian political labyrinth with no exit?A Site selection for Pier 3 has been performed and the pier has been included in the national

Q Over the last two months, you have probably familiarised yourself with the operations of the Port of Koper. In your opinion, what will be the main challenges in current operations?A The Port of Koper urgently requires a new development drive if it wishes to compete with other ports. Containers are certainly the type of cargo with the highest future potential which is why we consider them to be a strategic product group. During my leadership of the company, we have made a giant leap forward

in the dredging of the container terminal quayside. The project is of vital importance to us as our partner shipping companies have announced the arrival of larger ships, which is why we must urgently deepen the first basin of the container terminal quayside from the cur-rent 11.4 metres to 14 metres by the beginning of next year and then to 15 metres by the end of next year. Currently, container ships must first go to Trieste where they unload a portion of their cargo and only then can they come to Koper, due to the draught limitations, and this presents additional costs for shipping compa-nies. We are also simultaneously preparing to gradually extend Pier 1 alongside the deepening of the quayside as well as to arrange the inland areas of the port to provide us with additional warehousing capacity for containers. We are also preparing new, optimised traffic arrange-ments because the intersection of roads and railway tracks inside the port is causing stop-pages. Instead of the current single entrance where traffic chaos ensues during rush hour, we will build an additional three entrances and thus provide for improved throughput of trucks to the individual port terminals. We have also started upgrading our IT capability to facilitate the work of our business partners. We have raised the level of communication and cooperation both with our business partners and in terms of our relationship with the local community because we are aware that we are guests in this area. The local community need to accept our development plans otherwise it will be difficult to realise them.

Q Many who are called upon to do so in Slovenia, as well as those who are not, mention the Port of Koper as one of the key strategic companies, while in practice strategic projects supposedly as-

Gašpar Gašpar Mišič, President of the Management Board, Luka Koper, d.d.


Economy

spatial plan. Investments in Pier 3 are not anticipated for the time being but we have ensured the possibilities for our development with the national spatial plan. As far as the second railway track is concerned, we are aware that the government is currently tackling budgetary limitations, but it would be a grave mistake if the government were to stop pro-jects that represent support for the country’s development potential and promise economic growth of logistics that have important multi-plier effects on the entire economy. We should also draw attention to the fact that not hav-ing a better railway connection with inland markets means that the Port of Koper cannot utilise all of the development potential it is of-fered by the geographic location that provides such an excellent platform for the development of logistics and thereby the creation of numer-ous high added value jobs. Furthermore, the second railway track should be viewed from several angles and not just from the economic one. The transport of cargo by rail also places fewer burdens on the environment, while en-suring greater safety. As a country, we cannot afford the increase in throughput to move from the port to the road.

Q The Minister of Infrastructure and Spatial Planning found that the second track could be built for approximately EUR 700m which is half the originally estimated value. Do you agree with him?A I support efforts to find the most economi-cal solution. In doing so, we should to the great-est extent possible use EU funds intended for the development of European transport corri-dors. Last week, the Members of the European Parliament confirmed the budget for financing investments in pan-European traffic, energy and digital communication networks in the 2014–2020 period. Of the total EUR 29.3bn, EUR 23.2bn will be allocated to the transport sector or the financing of infrastructure pro-jects of the TEN- European transport network. Slovenia must not miss out on this opportu-nity.

Q Do you find it sensible to merge the Port of Koper and the Slovenian Railway Company into a logistics holding?A The Port of Koper is an important link in the European logistics chain, supplying economic operators in the countries of Central and East-ern Europe. Numerous railway operators de-pend on the Port of Koper which is why it is vitally important that the company retains a neutral position. A holding company involving the Port of Koper and the Slovenian Railway Company could make business partners feel that they are in an unequal position. The Slo-venian Railway Company is one of our biggest and most important partners but it is not the

only one. We have been working well with the Slovenian Railway Company at the operational and commercial levels and this is also how we see future cooperation .

Q Would you agree with a strategic partner entering the Port of Koper, e.g. in the form of a concessionaire for a part of the business? China has expressed interest in this on several occa-sions. Last year, we brought a Chinese delegation to the port as part of the FDI Summit Slovenia 2013 and they expressed genuine amazement at the fact that the port looks more or less the same as it did ten years ago?A I cannot agree with the assessment that nothing has changed at the Port of Koper in the last ten years. Let me only mention that we have increased throughput from 11 million tons to 18 million tons, meaning that we knew how to utilise our capacity. It is true, however, that improved results are tied to investment. If we want to attract guests to a restaurant, we must first buy chairs and tables, it is a similar story when it comes to cargo. A good example is the container terminal. Owing to the exten-sion of the pier and new cranes, we were able to grow the operations of this terminal at an annual rate of 30% and what is more, to do this is the crisis years of 2009 and 2010. The Port of Koper is currently in a sound financial state and can afford to invest in infrastructure by itself, i.e. primarily in the container terminal that is of strategic importance for to us. We estimate that we do not require strategic part-ners for this. As is the case with the logistics holdings, it is also true of this case that the Port of Koper must remain neutral and should not associate itself with a single partner.

Q In principle, Slovenia is intensely promoting its geostrategic position, while in practice it does

not exploit it and is losing its competitive advan-tages over its neighbours. Another example in addition to the Port is the airport in Ljubljana. Do you believe that this is due to the basic mis-understanding and incompetence of key decision-makers or the power of other lobbies that simply channel money into other projects?A As far as port activity is concerned, I can say with utmost confidence that the state or the centres of power in Ljubljana do not under-stand the importance of the sea and logistics. We only have one port and it is a key links in the Slovenian logistics chain. Logistics is cer-tainly a comparative advantage of Slovenia that deserves more attention and support. Let us look at the example of the Port of Koper: we are the biggest container terminal in the northern Adriatic, the second largest car ter-minal in the Mediterranean, the first port for Austria, and the first port for Hungary in the container segment. That is why we are so loud in our warnings regarding development op-portunities – we must not lose these aspects of primacy. We must not be lulled into sleep because our competitors are certainly not slumbering. This is why we propose that the government strives – in its diplomatic relations with countries in Central and Eastern Europe – to bolster cooperation and the conclusion of agreements between countries in the areas of port, traffic and logistics infrastructure, where the emphasis should be on improved traffic and logistics connection with the inland areas that the port serves. The Port of Koper wants the governments of the said countries to truly recognise the Port of Koper as their own and to make maximum use of it in the business sense within this context.

Airview of Port of Koper


Economy

Air France’s 80 years long adventureFrom pioneer to leading airline

Air France consistently refers to the ‘art of travel’ which shows that for the French num-ber one airline, civil aviation is much more than bringing passengers from A to B. France is a historic centre of high culture and the flag carrier of the country of chic, gastronomy, art and fashion wants its customers to experience the best the country has to offer. Meals on board are compiled by the country’s top chefs and the Air France products and inflight enter-tainment reflect the country’s leading position in art, fashion and cinematography.

Comfort, attention to detail and pleasure: those are the three priorities underpinning the Best & Beyond project. The project should keep passenger comfort and service on the highest international level and keep Air France competitive in the ever changing world of civil aviation. Seats, in-flight entertainment and lounges but also customer relations will be upgraded. The move upmarket is made up of major projects, as well as smaller daily actions.

In the autumn of 2013 Air France unveiled its new offer of products and services in the Economy and Premium Economy cabins. Start-ing in summer 2014, Air France will gradually equip 44 Boeing 777s from its long-haul fleet

with new seats and inflight entertainment sys-tems. In January 2014, the airline will unveil its future Business class offer. In April 2014 Air France’s top of the line new ‘La Première’ cabin will see the daylight.

The comfort level of the Air France fleet came a long way since the early days of the air-line. The Air France story in the history books

French flag carrier Air France has started a year of anniversary celebrations in which it will retrace its 80 years long history of passion and adventure. Air France, one of the leading airlines in the world, will relive, till the end of 2014, almost a century of lifestyle, creativity and the art of hospitality.

Air France customers can expect surprises till the end of 2014. Throughout the anniver-sary year, a famous writer will monthly publish a short story for Air France Magazine on the theme of travel. A collection of these stories will be published in autumn 2014. Further-more, Air France has a special line of anniver-sary products which are available in the Air France shop and on board.

Not only the anniversary will make 2014 an important year for Air France and its cus-tomers, the airline will this year take major steps in the Best & Beyond project which is an important part of a transformation process that has to ensure Air France’s position as one of the world’s leading airlines. The project includes an investment of over 500 million euros in new products and new training for over 19,000 employees in the latest service standards.

In Slovenia 2014 gives reason for extra celebration for Air France. On November 15 the French flag carrier will celebrate the tenth anniversary of its presence in Slovenia.Air France maintains a daily connection between the Ljubljana Jože Pučnik Airport and Paris Charles de Gaulle. From Charles de Gaulle passengers can fly Air France to over 500 destinations.

Economy

at the airline’s headquarters in Paris starts on 7 October 1933. On that day at Le Bourget air-port in Paris, Air Transport minister Pierre Cot officially inaugurated Air France which was a merger of the airlines: Air Orient, Air Union, Société Générale de Transports Aériens, the CIDNA and Aéropostale.

Air France’s roots though, can be traced all the way back to the pioneering days of avia-tion. The Compagnie Générale Transaérienne, Air France’s earliest predecessor, was in 1909 France’s first commercial airline. Only six years earlier the Wright Brother’s made the first ever flight with an airplane in the USA. The magic that surrounded the world of the flying ma-chines in those days is still present today in the way airlines reduce distances and make our world smaller.

By the time Air France was formed in 1933 the pioneering days had passed. Aviation was a business and the business of Air France in the beginning was to melt the five different companies into a single entity that would work coherent, effective and safe. In several years Air France reduced its fleet of 259 (!) airplanes to 90, exclusively French, aircrafts.

In the fleet of Air France were Bloch 220 (16 passengers) and Dewoitine 338 (22 passengers) airplanes as well as several seaplanes. By 1938 Air France was with 85 stops the thirds largest

global network. The airline carried that year 100,000 passengers which was already twice as much as in 1933.

Today the Air France fleet consists of 374 planes. Among them are eight of the largest passengers aircrafts in the world; the Airbus A380-800 (516 seats). The French flag carrier flew 77.4 million passengers in 2012. Everyday 1500 Air France planes take off to one of the hundreds of destinations on our planet.

Air France looks back at its history as an exciting and passionate adventure. The airline sees that their story has been a part of many lives, from one generation to the next. And at its 80th birthday steps are taken to ensure that the story continues for the generations to come.

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Economy

The new MaxxiMUM from Bosch: The culmination of 60 years of kitchen machine experienceThe culmination of 60 years’ experience in kitchen machines has now taken shape: the MaxxiMUM from Bosch is the new premium kitchen machine. With full-metal housing, it is like a monolith — embodying strength, solidity and reliability. Made for people who see cooking and baking as an integral part of their lives, this machine provides optimum support for the widest variety of applications. Whether it’s home-baked natural sourdough bread, fresh pasta or Asian-style stir-fried vegetables, with the MaxxiMUM the kitchen becomes a place of endless possibilities and tempting delights. Fast and fresh preparation is only a few steps away — day after day.

It is not even phased by stiff doughAnyone who has ever thought “there has to be a better way” while kneading dough is now right. The new MaxxiMUM impresses with more than just its exceptionally powerful motor which, at 1600 watts, provides greater power reserves than any other kitchen machine to date. Even the stiffest dough cannot stop it. The new intelligent dough sensor prevents the mixing speed from slowing down. The fact that the MaxxiMUM also works faster and more thoroughly is due to the 3D PlanetaryMix-ing accessory. The advanced planetary stirrer moves in not two but three directions simulta-neously, and therefore quite literally represents a new dimension in dough processing.

Thought of everything? Yes!Food preparation with the new MaxxiMUM doesn’t just look easier — it really is! A number of innovative details have been added to make

food preparation even more convenient. There is now an EasyArm Lift for easy lifting of the mixer arm. Easy Fill is also new, this extra fea-ture makes preparing food even easier as the lid now has a large funnel. The parking position of the mixer has been carefully designed to ensure that when filling, the ingredients land in the bowl and not on the whisk. What’s more, the mixing bowl features two handles and a spout: The Bosch engineers call it EasyPour. In other words, even the smallest of details has been well-thought out.

No going backAnyone who owns a MaxxiMUM from Bosch will never want to part with it. And that is just how it is built, the high-quality full-metal housing and brushed stainless steel bowl make Bosch quality and longevity a reality. The subtle colour and high-quality metal trim evoke time-less elegance and beauty. The glass ThermoSafe blender is both heat and cold resistant and its 1.75 litre capacity makes it a real all-rounder

for culinary delights — from hot soups to frozen fruit. The abundance of accessories and its more than 120 functions mean you will never tire of constantly discovering new and delicious possibilities. In addition to the basics such as the blender, continuous shredder and meat mincer, every conceivable type of special accessory is available: These range from the tried and tested Bosch fruit press attachment which is perfect for making blackcurrant jam, to the citrus press, pastry attachment and pasta press.

Lifestyle accessory kits availableBosch has also compiled three themed acces-sory kits for special preferences. Vegetable gourmets will love “Veggie Love”, while pasta fans will be delighted with “PastaPassion”. And anyone who bakes their own bread or appreci-ates whole food cooking will be in their element with the “VitalEmotion” lifestyle package. No doubt about it, the MaxxiMUM really is per-fect for ambitious chefs and bakers.

Made in Slovenia. BSH Hišni aparati d.o.o. from Nazarje has producedsmall motorized household appliances since 1993 and from 2008,added technologically demanding appliances for coffee preparationthat are sold all over the world.

www.bosch-home.si

If you're thinking that itjust gets better and better:You're right.For best results using the essence of 60 years of experience:The new MaxxiMUM kitchen machine from Bosch.

Novelty!

B_OglasMaxxiMum_TheSloveniaTimes_230x300_11-2013_ENG_Layout 1 11/20/13 8:44 AM Page 1

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Economy

Hella is Betting on LED

Hella’s LED Technology: from Headlamps to Street and Industrial LightingThe development department of the global HELLA corporation known primarily for its innovative solutions in the automotive industry has not been slowed down by the crisis – if anything, the crisis has incited it to adopt a proactive stance to fight it.

workplaces and outside areas (roads, parks, parking lots, footpaths etc.), neutral or cooler shades of white light work best as they are more powerful and provide good illumination and high productivity.

Hella’s LED luminaires emit a neutral white light that is not too yellow and not too white. The reason for this colour of light is the maxi-mum optimisation of the ratio between the economy (electricity consumption) and the ap-propriate power of the light to illuminate space.

Up to 80% Savings with Hella’s LED Industrial Lighting

The private sector is acutely aware of their energy spending and is thus faster than the public sector at recognising and implementing the advantages quality LED technology brings.

Hella’s range of exterior and interior LED luminaires offers solutions for industrial fa-cilities, warehouses, logistics centres, parking garages, offices, supermarkets, shops, hotels, petrol stations and other facilities.

Hella’s first generation of modular industrial luminaires was renowned for its high IP protec-tion that was suitable for demanding conditions with high humidity, dust content or emissions. As such, they were appropriate for use in heavy industry, car washes, cold stores etc.

Hella designed the second generation for the illumination of high-bay industrial, logis-tics and sales facilities that can benefit from the IL2 PLUS modular industrial LED lighting.

The lighting system provides up to 80 per-cent savings, which is the joint result of several key components used in the IL2 PLUS light-band system. Even after 50,000 operating hours, the luminaires still achieve a rate of 70% of residual light flux.

Five years ago, Hella successfully carried over its knowledge from the automotive industry to a new non-automotive programme:

• LED street lighting, • LED industry lighting, • LED indoor lighting,• LED airport lighting and• people counters.

Having worked with it for over 120 years, Hella understands how important light is – it affects our mood and behaviour more than we realise.

More lighting or light with a higher colour temperature (cool white) positively affects our readiness to work and our work performance – just like sunlight, which is cooler during the day and warmer towards the evening (warm white).

The best type of lighting is one that is clos-est to what we find in nature. For illuminating


Economy

Modularity

The »IL2 PLUS« light-band system is composed of premium-quality aluminium support rails, which remain the same throughout their service life. Keeping in pace with techno-logical progress, only the LED modules can be replaced if needed or after the end of their service life; with time, these will become even more energy-saving and efficient, while their size will remain the same. Additional savings are already built in, since the maintenance and the exchange of modules do not require a spe-cialist.

Flexibility of Illumination The rail system ensures that the product is fully adaptable to the customer’s needs: placement of the LED modules on the support rails can be freely adjusted along with the rails themselves and the power of the lighting.

The Quality of LEDs and Electronics

With over 20 years of experience in LED tech-nology, Hella knows how important quality is in LEDs, which is why it works with the top development-oriented providers.

The control electronics are very important as they are responsible for optimal use of electricity. In collaboration with a German supplier which also produces electronics for the automotive industry, Hella developed its electronics specifically for the industrial light-ing programme.

Optics with Automotive Industry Knowledge

Optical systems can be used to generate ad-ditional electricity savings and optimum illu-mination. Hella develops its own such systems because optics are a key element in every lu-minaire, automotive or other. Besides further optimising electricity consumption, the job of optical systems is to properly direct and homo-geneously distribute light without producing light pollution. In industrial luminaires, there are various optical designs available in line with the customer’s requirements.

The patented optics precisely direct light, re-ducing the unavoidable loss of light as much as possible while preventing glare, which is com-monly associated with LED luminaires. These are composed of point light sources (LEDs), which need to be highly dispersed so as to avoid glare. The IL2 PLUS industrial luminaire contains as many as 200 point light sources,

making it very eye-friendly. The certificate of photobiological safety is an additional guaran-tee of the absence of thermal and photochemi-cal risk to the eyes.

Savings The system’s advantages can be demonstrated with a test of profitability and depreciation. The LED light-band rail system is especially profitable due to its low power consumption, the long service life of the LED module, effi-cient light direction and fast and inexpensive installation. The additional savings become ap-parent during maintenance or when replacing modules, which is so easy that you do not even need to call an expert. On average, the invest-ment pays for itself in three to five years.

HELLA Saturnus Slovenija d.o.o.Letališka c. 17, 1000 Ljubljana/SloveniaTel.: 01 520 32 58 [email protected]

LED AMBIENT LIGHTING

LED STREET LIGHTING

SMART LED LIGHT

LED INDUSTRY LIGHTING

HELLA INDUSTRIESTechnology with Vision

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Economy

Slovenia s Highest Ski Resort

Looking for a saviour for the pearl of Slovenian tourismKanin, Slovenia’s highest ski resort which is connected to Italy’s Sella Nevea resort, will not operate this winter. This is not a big surprise considering the history and the (in)competence of the local management structure. The resort has, in fact, been closed since January 2013 when a freak accident occurred in which two gondola cabins fell from the cable. The resort operator, ATC Kanin, owners, the local community and the Ministry for Economic Development and Technology were not able to find any solution in the past year and even worse, ATC Kanin filed bankruptcy procedures in June.

By T. M.

Tourist jewel ruined by extreme incompetenceThe resort has a long history of mismanage-ment and the accident was just the final step in a history of poor management. Even in years when the snow conditions were perfect, the meteorological rule is that this is the case al-most every year as the Western Julian Alps are very rich with snow precipitation (with proper slope preparation skiing would generally be possible from late November until mid-May), the management of the resort didn t know how or where to promote the resort and the region of Bovec which has huge potential for further development.

The poor management was present in all daily operations, from strange opening times which varied from day to day, poor preparation of the slopes, to poor entertainment and other activities on and around the slopes. Kanin was probably the only resort in the region without a system for producing artificial snow.

nia has no effective development strategy for winter tourism, it is just another dead letter on paper.

Throughout the winter the majority of ho-tels in Bovec will remain closed, the revenue from private rooms and restaurants will also drop sharply. An important, unanswered ques-tion is why the upper slopes of the resort will not be opened. The fact is that skiers can easily reach the Slovenian part of Kanin-Sella Nevea from the Italian side but the bankruptcy trus-tee was not able to reach agreement.

Only long term solution: a competent foreign investor

Knowing the history of tourism development and the competence of the local community and key local “managers” that were in fact the main problem, the only logical and long term solution is a foreign investor which will put together a comprehensive strategy for a unified Kanin-Sella Nevea resort. The first big ques-tion is whether there is somebody who would be prepared to invest in the resort and new in-frastructure; secondly, whether we are capable of presenting the potential of the resort and region; and thirdly, whether the local commu-nity is even interested in getting a transparent owner. As we have seen in the past, for many, the best solution would be state aid and “busi-ness as usual”.

Previously the local community had tried to find strategic partners for Kanin and the devel-opment of tourist facilities in Bovec but it was always somehow “unfortunate”. In fact, the only “semi normal” partner, French company Transmontagne, went bankrupt in 2007. From then things went from bad to worse. One of the bigger owners at that time, casino operator Hit, was caught in their own problems. The local community was officially trying to find foreign partners but the procedure was never really transparent, raising questions about whether the activities to find a strategic partner were sincere.

Huge loss for Bovec and the Posočje region

Bovec and the valley of Soča is one of the un-discovered pearls of Slovenian tourism but the responsible people in Slovenian tourism are just not capable of capitalising on its natural wealth. The situation clearly shows that Slove-

1 Old infrastructure just didn t hold any more2 Kanin is a paradise for off-piste skiing3 Kanin - view from the restaurant4 Upper slopes of Kanin

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Economy

PoliMaT, Centre of Excellence

Biopolymers – Organic PlasticsDrinking coke from rice instead of oil-based PET bottles? Burning liquefied biomass instead of oil or natural gas for heating your home? All this is possible and only a few years down the track, if you ask Darja Radić of the PoliMaT Centre of Excellence.

By Simon Demšar

didn’t know each other or were doing their own projects.

For a newly established company of 84 researchers, most of them holding PhDs in their respective fields, it was suddenly pos-sible to pursue the projects and ideas they were unable to on their own. PoliMaT received around EUR 10m, of which EUR 3m was spent on state-of-the-art facilities. “Four years of work has resulted in 77 innovations and two spin-off companies. We have been searching for solutions for industry which now needs to breathe life into them. Some are already being used by the founding members, some are to be further developed, improved or adapted for the market, and some will be wasted. A study has shown that at least 17 innovations have signifi-cant potential,” says Radić.

Saving the world

PoliMaT’s focus is on polymers (although not exclusively) or in everyday language, plastics. “However, through research and following the trend, we soon realised that development was heading in the direction of biopolymers,” says Radić. What’s the difference? Polymers are oil-based while biopolymers are produced by living organisms. That’s where rice-based PET bottle come in. Is PoliMaT therefore saving the world by replacing plastics with environmentally friendly and biodegradable material of simi-lar properties? “In a way we are,” says Radić. “There are two possible approaches to waste management. One is to keep using polymers and recycle them and the other is biopolymers.” The only serious obstacle for now is high costs.

So why is it that most people haven’t heard of the company that deals with such break-through innovations? Radić explains, “This is a question for the media – are such stories not interesting enough? We do appear in daily pub-lications but in the less popular business and science sections, not on the front page. We are probably better known abroad than in Slovenia but again, in scientific circles”..

PoliMaT is a research centre, established four years ago to bring together Slovene re-search and industry in the field of polymer sci-ence. The founding members – the interested manufacturing firms and research institutions – were able to identify their common needs and interests and work together toward solutions. Before that, research and development had been very fragmented and researchers often

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Economy

However, Radić believes that commercial use is just a few years down the road: “With the de-veloped countries very much focusing on this area, rapid progress can be expected. How rapid depends on how quickly the market will accept it. This is a great opportunity for Slovenia. Even when you forget about large companies such as Krka and Lek, the chemical industry is a major force in Slovenia in terms of the volume of pro-duction and export. As a result, we have good scientists who are familiar with the trends and are more than competent to take part in global innovations.

PoliMaT is, of course, not the only institu-tion dealing with biopolymers. “We knew from the beginning that we should go international as there are too many good solutions that the Slovene market alone would not be able to ab-sorb,” explains Radić. PoliMaT was instrumen-tal in establishing a global biopolymer network, consisting of partners from Austria, Germany and the US. On other projects PoliMaT cooper-ates with the University of Nairobi in the field of fertilisers and microcapsules. They contain either water or fertiliser and the membranes are so “smart” that they release the content at exactly the right time.

Joint scientific projects with Africa are a bit unusual but not for Radić. “At PoliMaT our way of working is rather unusual. A lot of credit goes to our CEO, Mateja Dermastia, who is a very open person and has a large network of contacts around the world, which she uses to spread Slovene knowledge. Anyway, our philos-ophy is to offer ‘the whole package’. We never go to a potential partner, offering a technology, collecting money and leaving. We go with a team, put on a workshop, and invite their sci-entists and industry. We spend a week, if nec-essary, identifying their needs and what could be done in a particular area. We create joint teams and train their scientists, if necessary. If they come up with a solution, they can sell it back to us. We are not pushy, we are not trad-ers and our approach is always well received. I should say that our innovative approach, as well as the scope of our activities, is something of a novelty, even for the EU institutions. There is a lot of aid going to Africa and just recently we were invited to Brussels to present our way of dealing with things.”

How can Slovenia benefit from this? “We gain new knowledge, information on the direc-tion of things or where funds will be spent. In the end, this is an opportunity for Slovene in-dustry to enter the game. Representing Slovene small and medium-sized enterprises, we have recently become a member of the Bio-based Industry Consortium, which consists of all the major European industrial companies. A small PoliMaT has joined them! This way, we will stay in touch with what Europe will be doing, where the tenders will be placed, what large-scale pro-

jects will be launched. It is through such initia-tives that our present activities will benefit Slo-venia. When state funding finishes from 2014, our aim is to become a broker between research-ers, market and industry,” explains Radić.

Pour me some woodLiquefied biomass is the most recent of Poli-MaT’s achievements. Slovene research activi-ties in this area began at the National Institute of Chemistry but it was only with the establish-ment of PoliMaT that it was given a fresh boost. The idea itself is not new and PoliMaT is not the only institution working on it. However, its research team led by Dr Matjaž Kunaver, de-veloped a new ultrasound method. Compared to pyrolysis, it is much cheaper. According to Radić, the production is actually very simple, you only need a reactor, temperatures between 160ºC and 180ºC, ultrasound, a small amount of acid, glycerol and of course, milled biomass. It doesn’t have to be wood, any organic material will do including waste cotton or old furniture, for example.

Liquefied biomass has a number of poten-tial applications including the generation of energy, polyurethane foams, insulation panels and adhesives. According to Kunaver, their use in adhesives, where it replaces toxic formal-dehydes, is closer than any other application. Comparing wood, light heating oil and liquefied

biomass, Kunaver has the following numbers to offer: one cubic metre of beech firewood pro-duces 2800 kWh of energy which is equivalent to 511 litres of liquefied wood or 280 litres of heating oil. So, compared to wood, you would save almost 500 litres of space, while compared to oil you would save 27% of money (EUR 1.04 compared to EUR 0.77 per 10 kWh).

The largest of PoliMaT’s projects in con-nection with biopolymers, especially liquefied biomass, involves the Brazilian city of Uberaba and its Agronelli Agro-Industry. The presenta-tion of PoliMaT’s work on liquefied wood and biomass resulted in strong interest for coopera-tion. In March, a biopolymer workshop on bio-based materials is planned, where experts from PoliMaT and the Global Biopolymer Network will join forces with local researchers, develop-ers and industry to identify the most important challenges and local needs that could result in joint research, development programmes and industrial projects. After the workshop, the Mayor of Uberaba, the owner and management of Agronelli, the management of the Technol-ogy Park and representatives of the University of Uberaba will visit PoliMaT in Slovenia to see its pilot production of liquefied biomass.

1 Prof. dr. Majda Žigon, President of the Board of Experts and dr. Johannes Hahn, EU Comssioner for Scinece visiting CE poliMaT laboratory in Ljubljana

2 Liquefied wood3 Mateja Dermastia, Executive Director4 Dr. Matjaž Kunaver

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Politics

Government

PM Survives “Pointless” Vote of ConfidencePM Alenka Bratušek, not surprisingly, survived a vote of confidence which she had linked to the adoption of the 2014 budget. The move was generally seen as a pointless and cheap PR stunt by the government as it was very clear that the budget would be adopted by the coalition parties. However, the PM believes she improved her position inside the government and in her party, Positive Slovenia, which is still unable to define clear leadership and the role of Ljubljana Mayor, Zoran Janković.

By M. T., B. K., STA

years, laid the groundwork for restructuring the banking sector and secured the money to cover all liabilities. She said the government would now continue working on long-term solutions although she did not specify new projects that would be tackled. Media reports in recent days suggest the government will embark upon further reform of the pension system among other major projects.

The presidents of the other coalition parties were also tight-lipped about the plans ahead. Citizens List (DL) president, Gregor Virant, did however note that fiscal consolidation would have to be undertaken without higher taxes. Karl Erjavec, head of the Pensioners’ Party

(DeSUS), said the coalition would try to agree in the coming weeks on measures to be taken to kick-start the economy. He said there are several “tough nuts”, including privatisation and the Act on the Slovenia Sovereign Holding, but he is confident the coalition can pull it off. Igor Lukšič, President of the Social Democrats (SD), said it is important that the government survive the remainder of its term and makes headway with the priorities.

Economy still waiting for structural reform, a transparent privatisation strategy, bad bank implementation and improved corporate governance

The President of the Chamber of Commerce and Industry (GZS), Samo Hribar Milič, lam-basted the government’s economic policies for failing to produce results, while PM Alenka Bratušek argued her government had man-aged to reverse negative trends. Slovenia has still not taken the necessary measures to break out of the crisis or they are taking too long, Hribar Milič said in his address to the annual business summit at Brdo pri Kranju, asserting that “time is running backwards in Slovenia”.

“Not only is the fixing of the banking sys-tem running too slowly, and not only is there no strategy to help the economy, there’s also a lack of measures to kick-start development and domestic and foreign investment and to make the business environment more stimulating,” the GZS boss stated.

Optimism boost for coalitionCoalition partners were upbeat about the pros-pects for the coming years with the government winning the confidence vote and the EU pro-viding a positive assessment of Slovenia’s eco-nomic and fiscal plans. “Both EU reports show we are on the right track,” PM Alenka Bratušek told reporters. Bratušek however acknowl-edged that neither the confidence vote nor the European Commission reports are a reason to be happy, “but they are definitely a reason to be optimistic”.

Listing the achievements, Bratušek high-lighted that the government had prepared “good and realistic” budgets for the next two

Is the optimism of the coalition realistic?

Stop talking, start walking (The President of the Chamber of Commerce and Industry – GZS, Samo Hribar Milič)


Politics

“Weakest links” jumping off the government train

Pointless government vote of confidence upgraded by pointless opposition sponsored no-confidence proposals on ministersFinance Minister Uroš Čufer easily survived a proposed interpellation or no-confidence vote, in November, which was filed by the Slovenian Democratic Party (SDS). They ac-cused Čufer of mismanaging the controlled winding down of two small private banks (Probanka and Factor banka) and the dis-missal of an opposition MP from the board of the Bank Assets Management Company, the bad bank. The move from the biggest op-position party was somewhat of a surprise be-cause the liquidation of the abovementioned banks was approved and coordinated with the European Commission and the dismissal of the SDS MP from the board of the company was in accordance with anti-corruption legis-lation. The opposition proposal received just 28 votes after a 15 hour tedious debate.

Another minister under attack is Interior Minister Gregor Virant, who is responsible for public administration. The opposition accused that his local government reform is harmful and hurting small municipalities. They also think that his agreement (which was the logical consequence of a final High Court decision) with public sector trade un-ions regarding pay increases is damaging public finances and they also have a problem with lump-sum compensation to so called erased citizens of Slovenia. They definitely have a point, arguing that part of the agree-ment with public sector trade unions, which favours members of trade unions by giving them higher jubilee awards is, to put it mildly, unusual. Nevertheless, Virant is expected to get clear support from the coalition.

Strong support for the Finance Minister Uroš Čufer (on the left)Photo: Nebojša Tejić/STA, Source: UKOM

Economy Minister “didn t understood” the meaning of “conflict of interestThe Minister for Economic Development and Technology stepped down, following huge public pressure, in the wake of an uproar against tool maker EMO Orodjarna, partly owned by the Minister, vying for subsidies handed out by “his” ministry. The Corruption Prevention Commission said the main prob-lem in Stepišnik’s case was the appearance that he could use his position to promote the interests of a company which he is associ-ated with. The Minister said that he stepped down because he doesn t want to hurt the company, EMO, or the prime minister but he still believes he did nothing wrong and he will return to the parliament as an MP of Positive Slovenia.The whole development is not really problem-atic for PM Bratušek. It was widely, publicly speculated that the PM wanted Stepišnik to go, not just because he was seen as the “weak-est link” in the government but also because of his friendship with Ljubljana Mayor, Zoran Jankovič and former State Secretary, Gašpar Gašpar Mišič who left politics and was contro-versially appointed as CEO of Port of Koper.

Health minister felt “powerless”

Health Minister, Tomaž Gantar, surprisingly announced his resignation just a few days after the Economy Minister. The main reason was that he felt powerless in preparing com-prehensive health reform and, in his opinion, his Pensioner s Party has just too little power in the government to be taken seriously. He also, repeatedly, mentioned different lobbies that are influencing crucial decisions in the Slovenian health system but he hasn’t re-vealed who they are. In short, the ex Health Minister found working in the government, in one of the “hardest” ministries at this time, was just too demanding and complex. As is the case for the Economy Minister, this res-ignation will probably not affect the stability of the coalition with the government needing to define a new system for managing state owned companies inside the State Sovereign Holding.

Not up to the job (Health Minister Tomaž Gantar)

Some politicians in Slovenia still don t understand the meaning of conflict of interest; Photo: UKOM(Economy Minister Stanko Stepišnik and PM Alenka Bratušek)

Arguing that Slovenia can keep its sov-ereignty only if economically successful, he slammed as irresponsible both “appeals for foreign help, be it in the form of the troika or stringent international demands, as well as the passive and delayed response to the challenges of the crisis”.

As two key problems, Hribar Milič cited the fact that the bad bank is still not operational and that new insolvency legislation is yet to be adopted. He also pointed to the ineffective use of EU funds, resistance to transparent privati-sation, red tape, the ineffective rule of law and tax increases.


Politics

New Slovenia (NSi) – Christian Democrats

Junior opposition party wants a bigger piece of the centre-right political pieSlovenia’s smallest parliamentary party, New Slovenia (NSi) changed its name from New Slovenia - the Christian People’s Party to New Slovenia - the Christian Democrats. Addressing the congress, party head, Ljudmila Novak, underlined that the Christian Democrats have the answers to Slovenia’s desperate needs. The change of name and new programme is seen as a move that will bring the party out of the shadows of the biggest opposition party – the democratic party of Janez Janša

Hard work and basic moral valuesChristian Democrats rely on hard work, fair-ness and responsibility - the basic moral and Christian values, which cannot be replaced by any number of laws and regulations, Novak said. The Christian Democrats want to build a Slovenia in which everybody would have equal opportunities to develop their potential and talent. They must respect tradition but at the same time strive to modernise, she added.

“In this time of crisis, the Christian Demo-crats remain a party of prudence, argumenta-tion, constructiveness, moral principles, dia-logue and cooperation. These are the answers of the Christian Democrats for Slovenia’s fu-ture,” she said. Slovenia is suffocating not only under the massive pile of debt but also under

an increasing number of taxes. She also under-lined that NSi will in no way support measures that would have a negative effect on farming in Slovenia.

Looking into the futureQuoting the words of publicist and diplomat, Leon Marc, Novak said that Slovenians must first of all become aware of who they are and become a nation, be critical towards the past, “count the bones” and replace Yugoslav-nos-talgia with the EU. Slovenia must also take advantage of its small size and be able to admit that those who think differently also have good intentions, as well as strengthen the civil soci-ety and define Slovenian values.

Furthermore, Novak pointed out that Slove-nia was divided along ideological lines, adding

Ljudmila Novak – politician of the future?; Photo: NSI

that the people expected more cooperation and less division. Therefore, NSi have proposed that President Borut Pahor relaunch a dialogue be-tween the coalition and opposition.

The congress, bringing together some 400 delegates representing more than 10,000 party members, also discussed topical issues and the future policies of NSi, adopting a declara-tion on solutions to Slovenia’s economic situ-ation. The delegates said in a statement that Slovenia needs a combination of a free market economy and social policy. They want to lower taxes and a slimmer and more efficient public administration. The party also wants to see the National Council, the upper chamber of parliament, abolished. NSi will moreover draft a timeline for privatisation which they want to see completed as soon as possible but also avoid selling companies to tycoons.


Opposition Leader

Opposition Leader with vision or suicide tactics?Democratic Party (SDS) head, Janez Janša, reiterated that Slovenia should request aid from the European Stability Mechanism (ESM) to restructure its banks, instead of trying to solve the problem with new borrowing on financial markets. He is convinced that Slovenia will otherwise “be forced to request money to restructure the entire system of public finance” within 18 months.

He moreover defended the decision of his gov-ernment that led Slovenia to borrow US$2.25bn at a 5.7% interest rate. He said the step was taken because there was no alternative, the ESM was established only two months later.

The continuous burden of the corruption trial and allegations

Janša also touched on a recent resolution by the European People’s Party (EPP) express-ing support for him after he had been found guilty in the Patria corruption trial by a court

in June. The resolution raised a lot of dust in Slovenia, as well as in other European parties, and Janša believes that “some responses in Slovenia further justified the resolution”. He stressed that the EPP “do not just make state-ments willy-nilly”.

Janša also talked about a recently leaked re-port on an investigation by the Corruption Pre-vention Commission penned by former corrup-tion commission head, Drago Kos. Janša said that the watchdog’s report that led to his oust-ing was “a political matter”.

He said that Kos mentions the same argu-ments against the investigation that he used in complaining against the report, adding that he was appalled by Kos’ assessment that the re-port itself may have been illegal but its effects were positive.

Janez Janša: ESM can provide cheap money for SloveniaThe opposition leader insists that Slovenia must take advantage of the “cheap aid”. He said that the conditions, which PM Alenka Bratušek does not want to be imposed on Slovenia, were merely to “spend as much as you create”. The former prime minister said that the expen-sive borrowing will hurt the economy in the medium-term. He pointed to projections by in-ternational institutions that suggest Slovenia is facing yet another year of contraction.

Janez Janša: The ESM is a good solution for Slovenia

Corruption Prevention Commission Resigns

Bad sign for the “cleaning” of SloveniaThe president of the Corruption Prevention Commission, Goran Klemenčič and both his deputies resigned in protest at the failure of politics to react to the commission’s warnings to improve the legislative framework to prevent and fight corruption. With the exception of the opposition Democrats (SDS), the move was mostly met with concern.

Klemenčič, whose team took over in Septem-ber 2010 and played a crucial role in the March 2013 change of power in the country, told the press that the move was not a result of despair, powerlessness, pressure or lack of will to work. He said the decision had been maturing since the summer and was a protest against the fail-ure of politics to address systemic corruption in the TEŠ6 power generator project, the bank-ing system, healthcare and with respect to the ownership of assets by officials.

The former Interior Ministry state secretary added that the leadership of the commission could no longer tolerate the issue of corrup-tion being politicised and subjected to pure populism. “From our position, we had insight into this Slovenian cesspit,” said Klemenčič, pointing out that his team had announced in

January - when it published the damning cor-ruption reports on party leaders, Janez Janša and Zoran Janković, that they would step down if no serious changes followed.

While Klemenčič believes that some pro-gress has been made in the fight against cor-ruption, the progress is not sustainable and is burdened with information leaks. The com-mission plans to continue with its work until a new team is appointed but not beyond March next year.

President Pahor, who will now be in charge of appointing new commission leadership, un-derstands the reasons for the resignation but does not agree with the move. He feels “that the reasons for which they have resigned are exactly the reasons for which the commission should keep working toward bringing about

the necessary changes regarding the legal cul-ture and the rule of law”.

Prime Minister Alenka Bratušek wants the commission members to reconsider their deci-sion and continue the good work they started. “Slovenia is on the difficult path of economic and moral recovery, which is why we should not give up halfway,” she said.

Parties, state institutions and NGOs mostly shared the view that the resignation is regretta-ble and a serious warning that changes in fight-ing corruption are needed. Police representa-tives even described the commission as “the leading institution in the fight against corrup-tion, which highlighted a number of problems and suggested solutions”. Only the opposition Democrats (SDS), the commission’s loudest critic, were an exception, insisting the watchdog was biased and should be abolished.

Goran Klemenčič – We have had enough!

Politics


European Union

European Commission

Budget 2014: Implementation is KeyThe European Commission has “cleared” Slovenia’s national budget for 2014 as being in line with EU rules, but warned that it contained no wiggle room in case of unexpected developments. Presenting the results of its review of national budgets of all member states, the Commission called on Slovenia to provide “rigorous implementation” of the budget document.

By T. M., STA, Reuters

Key issue: The hole in the Slovenian banking sector

“The Slovenian government is taking very de-termined action in order to ensure the country will be able to turn its economic fortunes,” he said. While not wanting to delve into efforts to fix Slovenia’s banks until the results of ongoing stress tests are available, he pointed to “decisive and effective action” in this area. Meanwhile, the Governor of Slovenia’s Central Bank announced that the results of the stress tests will be published on 13 December.

Rehn also warned that the Slovenian gov-ernment cannot rest on its laurels, reiterating a call for reform of corporate governance at state-owned companies.

The Slovenian Finance Ministry said that the assessment was a clear indication that Slovenia is on the right path in consolidating public finances. While admitting that there is little room for error, the Ministry stressed that

the Commission was confident that the goals of reducing the budget deficit can be achieved. Responding to the Commission’s call for struc-tural reform, the Finance Ministry said imple-menting reforms is a long-term process which cannot be achieved in just six months, but reiterated that the government was committed to implementing reforms and fixing its banks.

Businessmen want more than just damage control

The Chamber of Commerce and Industry (GZS) responded to the positive assessment of Slove-nia’s budget by calling on key stakeholders in the country to reach a development deal. It is clear that the action taken in recent months has been little more than damage control, add-ing that it is now time to think about measures to promote development.

A new development deal would facilitate the adoption of key changes, including the struc-tural reform demanded by the European Com-mission, while helping to preserve the welfare state, Slovenia’s leading business chamber said in a statement.

Numbers look OK, are they realistic?

While highlighting the lack of a margin for er-ror, the review found that the budget is “fore-cast to deliver the recommended fiscal effort in 2014”. Presenting the findings, European Economic and Monetary Policy Commissioner, Olli Rehn, welcomed “determined action” by Slovenia to deal with key economic challenges, including budget consolidation.

“All in all, Slovenia has delivered effective action and has presented a draft budgetary plan within the rules but without any margin for slippage,” Rehn told the press in Brussels. As part of its annual budget surveillance, the Commission also concluded that the fiscal re-structuring measures included by Slovenia in the Economic Partnership Programme amount to “limited progress” in the area.

The positive assessment of the budget was the second piece of good news for Slovenia, from Brussels last month, after the Commission backed Slovenia’s efforts to deal with economic imbalances in a separate report. Rehn was gener-ally upbeat about Slovenia’s ability to deal with the key economic challenges, including the bank-ing sector, structural reforms and fiscal policy.

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1 Olli Rehn: EC waiting for implementation of the adopted measures

2 Central bank: No need to be afraid of the stress test results 3 Chamber of Commerce: We need a development strategy

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European Union

Slovenia/Croatia

Cooling down in Slovenian/Croatian relations?When Croatia joined the EU on 1 July this year, optimists thought that major disputes with Slovenia’s southern neighbour would be solved. Unfortunately this assumption was wrong. It is obvious that Croatia signed a lot of things to formally meet all its promises and obligations in the accession process and now they are back on track with their policy of pretence and daily turning around of the facts. The EU “met” this Croatia when the country adopted the controversial “Lex Perković” when they wanted to avoid extradition of their citizens to other EU countries.

which LB and its successor, NLB bank, are be-ing sued over deposits even though the coun-tries signed a memorandum back in March whereby lawsuits will “stay” until a solution is found as part of talks on the succession from the former Yugoslavia.

Each country interprets the term “stay” in its own way, which the ministers agreed was the main sticking point. Slovenia understands the term as a suspension of proceedings, whereas Croatia understands it as “on hold” for up to two years. “That would mean that we could have a problem if a final solution is not reached in that time. Our main concern is that

if a decision is not taken within two years, this issue would then not be resolved as a matter of succession but that the Croatian courts could continue judging the case,” Erjavec said.

He said that the Croatian courts had acted differently in the case of LB’s claims to Croatian companies and that they suspended proceed-ings until the issue is resolved under succession negotiations. Erjavec said that Slovenia would not consent to such interpretation and that it expected Croatia to suspend court proceedings until a solution is found in accordance with the memorandum which stipulates the dispute be resolved under succession talks.

Erjavec also expressed his conviction that the Slovenian parliament would not have ratified Croatia’s EU Accession Treaty had the memorandum stated that court proceedings in the matter be “stayed” for a maximum of two years. Pusić meanwhile argued that Croatia had met its commitments under the memo-randum, while she repeated several times that Croatia was also willing to seek a solution in arbitration.

Under the memorandum, a solution should be sought in succession talks but both sides also disagree on the response of the Bank for International Settlements, which instead of its mediation offered its premises for meetings. With such an answer, Croatia appears to find the possibilities for reaching a solution through succession talks exhausted.

The LB issue was opened again. Croatia: Signing a memorandum between Slovenia and Croatia is not an international treaty?

Slovenia’s Karl Erjavec and Croatia’s Vesna Pusić failed to make progress in the latest dis-pute on the independence-era issue concerning those savings deposits that Croatia transferred into Croatia’s public debt.

The new rift arose after a Croatian court decided to resume proceedings in a lawsuit in

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1 How does Croatia understand their international obliga-tions? (Slovenian and Croatian FM, Karl Erjavec and Vesna Pusić)

2 The Slovenian parliament would not have ratified Croa-tia’s EU Accession Treaty had the memorandum just stated that court proceedings in the matter be “stayed” for a maximum of two years (Slovenian FM Karl Erjavec; Photo: Aljaž Hafner)

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European Union

“Slovenia believes this to be a matter of suc-cession, regardless of the response of the Basel bank, which we understand under its auspices is to offer anything needed to implement Arti-cle 7 of Appendix C to the Vienna Treaty” on succession, Erjavec said. While Slovenia un-derstands the March memorandum on the LB issue as a treaty, Pusić insisted that it was not because if it had been, Slovenian MPs would have been bound in their vote on Croatia’s Ac-cession Treaty which she said could not be the subject of a treaty.

Meanwhile, both ministers pledged their willingness to continue endeavours for a solu-tion. They assessed the relations between their countries as good despite disagreements. Two new hearings against LB and NLB are scheduled in the Zagreb municipal court for December.

Border Arbitration: Croatia with maximum demands?

Slovenia sent, in the middle of November to the Hague-based arbitration tribunal, its response to Croatia’s arguments regarding the disputed sections of the border on the basis of which the tribunal will take a relevant decision, expected in 2015. Hearings at the Hague tribunal are expected to be held in May and June 2014 and then the tribunal will make a ruling on the ba-sis of the arguments and documents, possibly in the first half of 2015.

The parliamentary Foreign Policy Commit-tee endorsed Slovenia’s memorandum behind closed doors after the government confirmed it at the end of October. The Slovenian memo-randum is a well-kept secret of 650 pages with another 5,450 pages attached, of which 250 pages are maps. The Foreign Policy Committee chair, Janja Klasinc, said she believed Slove-

nia argued its case very well. The memorandum was also endorsed by parliament before it was sent to Croatia. At the time, MPs adopted a statement saying that the tribunal needed to determine “a territorial junction of Slovenia’s territorial waters with the high seas” - a key is-sue in the dispute.

The centrepiece of the dispute, stemming from 1991 when both countries left Yugoslavia, is Slovenia’s territorial junction with the high seas. Slovenia claims it has always had access to international waters which qualifies it as a maritime nation. Following a series of failed attempts to resolve the dispute bilaterally and with the help of the EU, Slovenia and Croa-tia decided to refer the issue to international arbitration.

Prime ministers, Borut Pahor and Jadranka Kosor, signed a border arbitration treaty on 4 November 2009 in Stockholm under the aus-pices of the Swedish EU Presidency. The deal was based on a proposal by the then enlarge-ment commissioner, who helped them reach

3 Friendly neighbours: Croatia thinks that Sečovlje airport belongs to them?

4 Never-ending story (Agrokor/Mercator)

agreement on the manner in which to resolve the dispute, which in turn enabled Croatia to resume EU membership talks.

Officially, the content of Croatia’s response to Slovenia’s arguments is not known but some media reported, from unofficial sources, that Croatia took a huge step back and returned to its extreme position of previous years when they denied Slovenia access to international waters and claimed that the border with Slo-venia and Croatia is the “old riverbed” of the Dragonja river which would mean that all of the Sečovlje international airport is on the Croatian side of the border. This position has nothing to do with the real situation in 1991 when Yugoslavia disintegrated, and triggered a harsh response from Slovenian politics.

Agrokor-Mercator tragicomedyThe relations between Slovenia and Croatia have also been affected by the announced takeover of retailer Mercator by Agrokor. The reason is that, in Slovenia, Mercator is seen as a guarantee for the long term sale of Slovenian agricultural products whereas Agrokor repre-sents an operational tool for Croatian agricul-tural development policy.

In addition Agrokor’s owner, Ivica Todorić, is perceived as one of the major Croatian pri-vatisation tycoons. The result of this percep-tion is that a part of Slovenia politics sees a takeover by Agrokor as hostile and damaging for Slovenian agriculture. Maybe the current economic situation will solve the problem by itself. It is widely speculated that Mercator will not meet the conditions for the takeover to be completed, Agrokor will fail to meet competi-tion watchdog conditions or Agrokor will just not be able to raise enough capital to pay the agreed amount for Mercator.

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European Union

Refugee Crisis

Slovenian Army helping in refugee crisis on LampedusaSlovenia’s patrol boat, Triglav, will be deployed off the Italian island of Lampedusa starting on 15 December and will remain in action until the end of January. The details of the deployment are coordinated with Italy, according to Defence Minister, Roman Jakič.

EU Protected Status

Two new Slovenian products with protected statusSlovenian honey is the country’s 19th product to get EU protection, as it was entered in the register of protected designations of origin label under an order published in the EU’s Official Journal. “Slovenski med” has been defined as meaning acacia, lime, chestnut, fir, spruce, floral and forest honey produced in Slovenia. It has to contain less than 18.6% water. The Slovenski med honey joins honey from the Karst region and Kočevje honey, four types of cheese and several dried meat products on the list of protected products from Slovenia.

Refugees are the EU s problem (Defence Minister R. Jakič)

Slovenia offered the ship to help Italy tackle the refugee crisis on Lampedusa, the destina-tion of thousands of refugees from North Af-rica and the Middle East, in the aftermath of a ship capsizing with over 360 refugees dead.

Triglav is expected to perform reconnais-sance missions and help with rescue efforts if necessary. The cost is estimated at EUR 0.5m including fuel and staff costs, the Minister told reporters in Brussels.

The figure could be lower if Slovenia se-cures EU co-funding, but Jakič was quick to point out that the Italian air force conducts control of Slovenian air space on behalf of NATO, costing it nearly EUR 2m a year.

Furthermore, he said the Mediterranean refugee crisis was “the EU’s problem, not just It-aly’s problem. We need to help our neighbours.”

After completing its mission in the waters around Lampedusa, Triglav will return to Slo-venia to get ready for deployment in the UN’s mission in Lebanon (UNIFIL) in the second half of the year.

The Triglav is a Svetlyak-class patrol boat which Slovenia got from Russia in 2010 as an offset for Soviet-era debt. It is 49 metres long, 9.2 metres wide and has a top speed of 27 knots.

1 Slovenian honey2 Mohant, fourth cheese from Slovenia with protected

status

The other product is Mohant soft cheese pro-duced in Slovenia’s Julian Alps. It is the fourth Slovenian cheese to be registered by the EU as a foodstuff with protected designation of ori-gin. Mohant is a soft white cheese of a white-

yellowish, beige or pale buttery colour made of raw cow milk with a distinct, strong aroma and piquant taste.

The production of the cheese, according to many oral and written sources, dates back to

the 18th century and originates in the town of Bohinj. The traditional method of producing the cheese in two phases has a crucial influ-ence on its aroma, taste and texture. In addi-tion to Mohant, another three cheeses (Bovški sir, Nanoški sir and Tolminec) have also been registered at the EU.

Slovenia has now 19th protected products, among them, idrijski žlikrofi dumplings, prek-murska gibanica pastry, pumpkin seed oil from the regions of Štajersko and Prekmurje, kraški pršut prosciutto, kraški zašink dried meat from the Kras region and kraški med honey.

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Slovenian navy in action (Triglav patrol boat)


Experience&Lifestyle Slovenia

Works by Jože Ciuha, one of the greatest Slovenian painters, on show at the Jakopič Gallery Marking the 90th anniversary of Jože Ciuha, one of the best known Slovenian artists enjoying European renown, the Jakopič Gallery will launch a retrospective exhibition showcasing highlights of the artist’s prolific oeuvre.

Jože Ciuha graduated from the Ljubljana-based Academy of Fine Arts in 1950. He later studied, worked and taught in North and South America, South and South East Asia and in several European countries. Ciuha’s works have been honoured with many awards, in-cluding the Prešeren Fund Award, the Levstik Award, the Chevalier des Arts and des Lettres, and the artist himself was granted honorary membership of the Russian Academy of Arts in Moscow.

The Labyrinth of Time exhibition will present the body of work the artist started to create in the mid-20th century, with the old-est work to be displayed dating back to 1948. The exhibition will showcase both drawings and paintings created from the 1950s on and highlight works from the 1967 to 1981 period, showing them alongside the large formats painted in the most recent years. Abiding by Ciuha’s life principle that ‘his best painting is yet to be painted’, the curators have designed an open-ended exhibition.

The retrospective exhibition is accompanied by an extensive and comprehensive catalogue containing reproductions of over 200 works. Three expert texts describe in detail and reflect on the artist’s creative life, shedding light on the process of creating this extensive oeuvre, its reception and the role played in the context of Slovenian art. The three authors, art histo-rians of the younger generation, i.e. Barbara Savenc (MGML), Marija Skočir (MGML) and Marko Košan (Koroška Gallery of Fine Arts), were capable of dealing with Ciuha’s works from an unproblematic point of view which, given the length of time in which Ciuha has been creating, allows for the necessary time distance. Participating in the preparation of both the catalogue and the exhibition was the Koroška Gallery of Fine Arts from Slovenj Gradec, which will host the exhibition at the beginning of 2015. A foreword to the catalogue was written by the Minister of Culture, Dr Uroš Grilc.

During the time of the exhibition, nu-merous accompanying programmes will be available that provide visitors with several op-portunities to meet the artist whose manifold creativity has left an indelible mark on almost seven decades of Slovenian art. Visitors will be able to share his unique life experience which is also reflected in his work. The accompanying programme includes guided tours, lectures, painting workshops, a poetry reading, a chat with the artist, and programmes for families and schools.

More information is available at: www.mgml.si/galerija-jakopic/

1 Jože Ciuha while studying in Burma, around 1960 Courtesy of the artist

2 Jože Ciuha, Prophet, 1973, mixed media / acrylic on plexiglass, 103 x 113 cm. Private ownership. (Photo by: Matevž Paternoster, MGML)

3 Jože Ciuha, Legend of a Frog, 1981, mixed media / acrylic on plexiglass, 136.4 x 198.7 cm. Private collection. (Photo by: Matevž Paternoster, MGML)

With the title The Labyrinth of Time, the ex-hibition will be open from 18 December 2013 to 13 April 2014. “Staging a retrospective show was a great challenge for the Jakopič Gallery. The artist’s oeuvre is extremely extensive and varied, containing many important highlights and the gal-lery’s spatial capacity is limited. I do believe, how-ever, that my co-curator Barbara Savenc and I have risen to the challenge. Moreover, we invited the artist himself to actively participate in preparing the exhibition,” said the curator, Marija Skočir.

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Quality Living in LjubljanaMayor Zoran Janković likes to say that he considers Ljubljana the most beautiful city in the world and that the City of Ljubljana is striving to ensure a green, sustainable and high-quality life for all its citizens and citizen groups - from the youngest through to the oldest.

Festive December in LjubljanaIn December, Ljubljana begins glowing with a particularly festive and celebratory light.

The results of the Eurobarometer survey con-ducted in December of last year show that the City of Ljubljana is on the right track in view of the fact that as many as 90% of the Ljubljana citizens interviewed replied that they were happy with their lives there.

The survey results have shown that the citizens of Ljubljana are most satisfied with the following aspects of life:• schools and other educational institu-

tions – 87% satisfied citizens ranks Ljubljana in the first place among the EU capitals,

• cleanliness – 87% satisfied citizens ranks Ljubljana in the second place among the EU capitals,

• public transportation – 78% of surveyed people living in Ljubljana are satisfied with the transportation,

• healthcare services – 75% satisfied citi-zens surveyed,

• sports facilities – 76% satisfied citizens ranks Ljubljana in the fourth place among the EU capitals,

• cultural institutions – 88% satisfied sur-veyed citizens,

• neighbourhood streets and buildings – 82% satisfied citizens ranks Ljubljana in the fifth place among the EU capitals,

• public spaces (markets, squares, pedes-trian areas) – 85% satisfied citizens ranks Ljubljana in the sixth place among the EU capitals,

• tourist-friendly city – 87% satisfied citizens ranks Ljubljana in the fifth place among the EU capitals,

• 73% of the surveyed population believesthat foreign citizens are well integrated into the society, ranking Ljubljana in the first place among the EU capitals.

• safety in the city – 90% satisfied citizens ranks Ljubljana in the fifth place among the EU capitals,

• neighbourhood safety – 94% satisfied citizens ranks Ljubljana in the fourth place among the EU capitals,

• green areas (parks, gardens) – 86% satis-fied surveyed citizens,

• noise pollution level – 73% satisfied citi-zens ranks Ljubljana in the seventh place among the EU capitals.

As key challenges for the city that will need to be addressed in the future, the people surveyed pointed out healthcare services, unemploy-ment and air pollution. The City of Ljubljana is already addressing these issues by dedicating a lot of attention to them and carrying out a series of activities designed to improve the quality of the affected areas.

Air view of Ljubljana Castle. Photo: T. Jeseničnik

Welcome to festive Ljubljana. Photo: Dunja Wedam, Nik Rovan

Every year, the festive atmosphere symbolically kicks off on 3 December with the event People, Let’s Turn on the Light!, when Ljubljana puts on its holiday outfit, and continues with the varied happenings that take place on the city’s streets and squares up to 31 December, when it peaks with open-air New Year celebrations in the squares at the heart of Ljubljana.

December is a time when old friends and acquaintances meet again on the streets and squares of the festively lit and decorated Ljubljana, have a toast together and reminisce about the depart-ing year, and wish each other good luck and good health in the coming year. There are a number of events available, so a festive atmosphere is guaranteed: the St. Nicholas Fair, the Festive Fair, the St. Nicholas Procession, the Grandpa Frost Procession, the Christmas concert and a series of events and outdoor concerts for all generations and tastes.

Huts and stalls with mulled wine and hot tea and a wide range of delicacies invite locals and visitors to their own piece of “merry December in Old Ljubljana”, which is complemented by a varied programme in the city centre.

The festive atmosphere culminates on 31 December, when everyone celebrates in the city squares and the plethora of venues offer a rich New Year’s programme that people of all ages and tastes can enjoy.

You are warmly invited to visit festive Ljubljana and to join us in the magical atmosphere of our city, which can make your every holiday wish come true.

The Eurobarometer is a survey of the quality of life in European cities conducted by the European Commission. The survey was con-ducted in 79 cities of all EU Member States as well as Iceland, Norway, Switzerland and Turkey. 41,000 urban dwellers rated their sat-isfaction with various aspects of urban life.



Vipava Valley – Vipava – Vrhpolje and the Duplje VillageHistorians describe the Battle of Frigidus that took place in this area in 394 between Emperor Theodosius,from the Eastern Roman Empire - Byzantium and the Western Roman ruler, Eugenius, was determined by a fierce tempest – the bora. The bora wind not only shapes legends but also life in these regions.

The Mediterranean, which begins under the foothills of the Kovk and Nanos plateau, cre-ates this unique natural wonder. The bora wind gusts up to 250 km/h – rain in the wind – the sun that is absorbed by the soil in the summer dries it and creates the right temperature for grapes.The Škrlj family and their tradition, dating back to 1914 in the times of the monarchy, are part of this activity. Our grandfather, Alojz, transported wine by horse and cart to Klagen-furt and Trieste. His work was carried on by my father, Vladimir, who, in our early youth, included my brother and me in his work. When growing up as children charged with energy, which when working, is released as sweat on the brow and body and blistered hands. We turned the soil, dug up to 70 centimetres deep by hand to bring the soil from the depths to the surface and transfered the soil on the surface to the depths and planted vines.In their time, each member of the family gave themself to the soil, the vineyard, to work in the cellar. The name Monvi (my life) is embed-ded and woven in life. Every wine has its life and meaning, and the Monvi House focuses on the long aging of wines, on wines with a story and on wines with meaning.Our education is woven between Slovenia and France. In addition to local knowledge, we upgraded our skills with the help of world sommelier semi-finalist, Jean Pierre Škrlj, our cousin from Nice. When he turned eighteen my brother, Boštjan, went to Bordeaux to Chateau Borden, where he trained for two years and provided us with important insights. Today, my sons Matjaž and the youngest Miha

and I are engaged in numerous activities and creations that prove that we are on the right path of creating good moods and good feelings, not for ourselves but for those for whom these wines are intended. The smiles on their faces gives the message…

ZELEN autochthonous Slovenian wine. Straw yellow colour with shades of green, a gentle aroma, flowery and fruity notes of ripe vineyard peaches and fresh figs. The elegant aroma derives from alluring field flow-ers. It leaves a lovely and elegant aftertaste with roundness and softness.

SAUVIGNON Straw yellow, rich aroma, distinctly elegant nose of elder blossoms, yellow pepper, ripe fruit, ap-ples and ripe pears. With a lovely round taste, the wine of-fers harmony with slightly distinct freshness.

The characteristics of CHARDONNAY Barrique 2006 are its full body and overripe fruit aromas all encased in a golden straw colour intended for epicures.

MERLOT The freshness of nature and a pleasant taste

CABERNET SAUVIGNON Ruby red with pomegranate notes, a palette of amazing rich aromas, ripe blackberries, plum jam and cloves. A rich taste with a beautiful and fresh aftertaste and velvety tannins.

GRAJSKO RDEČE /PALACE RED aged for 5 years in oak barrels, pleasantly soft, fruity and a full of body. The elegant woody note intensifies the taste. The luxurious aroma dominated by a rich woody note, vanilla, the richness of plum jam, overripe blackberries, the forest floor, the smell of fresh leather, cocoa and coffee. Leaves a fine taste.

SLADKA JULIJA /SWEET JULIA/ GOOD MOOD ELIxIR flavoured liqueur wine relaxes the mouth, im-proves taste, makes the day better. Pleasant, rich, bittersweet flavoured taste with a pleasantly warm and rich sensation. It is made from red wine and the secrets of mum’s hands. It is an aperitif, a digestive, a cocktail. (Intended for ladies all over the globe and important for relationships. Taking a small sip brings a smile to her face and the feelings of a good mood, which satisfies her partner, who did not even taste it).

Member of the family Boštjan travelling around the world.www.aroundtheworld.si

ZELEN SPARKLING WINE A sophisticated lady in dark clothing made using the Crémant method with true elegance and form. Its excellence becomes evident even when pouring into the glass. Sparkling and effervescent, appearing lively at first but soon settles down, though never leaves us feeling indifferent. Tasting it, we feel the liveliness and fullness. This is the might of the Zelen variety, which represents the basis for birth. A sparkling wine made for the tastes of a special moment, celebration, socialising and intimacy. A sparkling wine of the heart. It is feminine, gentle and harmonic and with this sparkling wine the Monvi Family Cellar drinks to your health!

The Škrlj FamilyDuplje 31, 5271 Vipava, SloveniaBojan Škrlj 00386 40 751 905Matjaž Škrlj 00386 41 345 429E: [email protected]

www.kaval-group.si

www.kaval-group.si

The Famous City - Glorified for its Cookeryabove the Dragon Bridge, Prešeren Square, the Plečnik central market and the Three Bridges, Ljubljana Castle stands as a distinct symbol of the Slovenian capital. The Castle not only gives Ljubljana its identity; rather, like a crown stretching over the top of Castle Hill, it shapes its silhouette. The past meets the present in the magnificent castle landscape. The Shooting Tower enchants everyone stepping into its embrace. The space is marked by culinary, art and cultural events taking place on high. In a unique way, the historical tower connects the castle and the city below.

wonderful view over the immediate surround-ings and the enchanting hustle and bustle of the city below.

Shapes alter ceaselessly in the space, im-ages create a picture of the infinite landscape in which works by renowned authors, artists and craftsmen have found their place. Their care, sense for every minor detail and the commit-ment to their work now stands as the goal of Restaurant Strelec.

Concentric circles are diminishing and the arrow has reached its target. Into the middle!

From mouth to mouth ... And off to the shooting towerDepictions of Slovenian folk poetryThe walls of Restaurant Strelec are decorated with carvings or sgraffitos that are the work of architect, painter and university professor, Boris Kobe (1905-1981) and academic painter, Mario Pregelj (1913-1967). Congruent with Kobe’s design and equipment of the former castle restaurant (e.g. the beer hall that was operating until the 1960s), the sgrafittos were created in 1952-1953. During the last renova-tion of the Ljubljana Castle, the sgrafittos were substantially damaged, yet skilful restoration works have managed to preserve them.

The idea for the images, painted on the walls of the Shooting Towers depicting mo-tives of Slovenian folk poems, was part of the endeavours by Borut Kobe, who before WWII dedicated much of his creative attention to ar-ranging Castle Hill and the castle itself, thus carrying on the work initiated by architect, Jože Plečnik (1872-1957). Over the walls of the Castle Tower, he developed a narration of selected folk poems by dividing the vast wall planes into separate narrating fields transmit-ting the main messages of the poem narratives. He attracted his friend and renowned Sloveni-an academic painter, Mario Pregelj, for the re-alisation of the extensive task. Between them, they rhythmically divided individual fields and therewith, also the universal motive of folk poems. Boris Kobe decided for the sgrafitto technique, which represents a popular way of wall refining and façade ornamenting from the gothic period. The essence of the technique is a deposit of several multicoloured layers of thin plaster. For the actual composition, the artist has to design paper blueprints or cartons serv-ing to transfer the illustrations onto the fresh layers of plaster; the selected motive is brought to light by carving the plasters until the desired colour shade is achieved. Once the layers are solid, this technique offers exceptional dura-bility.

prof. Janez Bogataj, PhD



Since early times Ljubljana dishes renowned …Unsurprisingly, the hatching of forms started with cookery. The menu is a creation! This piece of creation was designed in cooperation with ethnologist, Professor Janez Bogataj and Chef Igor Jagodic, who signed off each and every dish created.

The offer of the new Restaurant Strelec represents a culinary crossroads between the Alps, the Mediterranean, and the Pannonian Basin. Offering a taste of our ancestors’ food, a pinch of castle-like atmosphere and the rous-ing noble aromas together with a glimpse into the medieval epoch, are the vision and genuine objectives of the restaurant. In Restaurant Strelec, we wish for the medieval time to stand still, at least for a short moment, as we offer you nothing but that which is the sweetest, the best, and the most beautiful, combined with a



Igor Jagodic Strelec Restaurant Ljubljana castleAfter graduating from the School for Cater-ing and Tourism in Ljubljana and School for Catering and Tourism Bled, Igor Jagodic started his culinary career as an apprentice in JGZ Brdo Kranj. His mentor was Andrej Goljat, one of the best chefs at the time.

His culinary career led him to Hotel Lev, the Astoria Hotel, Grand Hotel Toplice and Vila Bled. Since 2012 he has been the chef at Restaurant Strelec at the Ljubljana Castle.

Igor Jagodic continually improves his knowledge through various courses and professional training at home and abroad. In 2010 he worked for three weeks in the famous restaurant, Noma, in Copenhagen, where he was impressed by Chef Rene Redz-epi and his philosophy of preparing contem-porary cuisine using local ingredients.

Achievements:• 2nd place at semi finals WACS

Global Chef Challenge, 2012;

• Winner, Slovenian pre-selection for WACS Global Chef Challenge, 2011;

• 5 suns – awarded by the selection of Nedelo restaurant, November 2011

• Bronze medal, Expogast Culinary World Cup, Luxembourg, 2010;

• Two silver medals at the Culinary Olympics in Erfurtu (IKA Culinary Olympics), 2008;

• Silver medal, Intergastra, Stuttgart, 2008;

• Gold medal, Intergastra, Stuttgart, 2006;

• Bronze medal, Expogast Culinary World Cup, Luxembourg, 2006

Photos: Dean Dubokovič



Made in the home of skiingFor decades, Elan has been synonymous with sporting equipment that is designed with a clear goal: to provide the absolute best experience to recreational and professional athletes. Receiving the prestigious title of Most Innovative Brand of 2012 and 2013 for sports equipment, awarded by the German organisation Plus X Award, comes further confirmation that innovation combined with technical and design perfection, are the qualities that make Elan the first choice for industry experts as well as skiers.

The second innovation will make women happy, the introduction of the world’s light-est ski - Delight. No matter how good a skier you are, these skis will allow women to turn like a pro. Delicacy of movement; experience that grows into proficiency on snow. D’lightest women construction integrated in the Delight model is designed and engineered for advanced skiers who like to ski the whole mountain. Using lighter materials to lower the weight of the skis, WaveLight is an advanced technology that softens the flex of the ski at the same time as providing more stability and giving more support in the turn.

The result is the best light weight tool cou-pled with stable performance, offering fun and lightness on the mountain while reaching ski-ing perfection.

This new Elan ski, including bindings with technology designed entirely to satisfy wom-en’s specific skiing requirements, weighs less than a woman’s handbag!

With Elan innovations, skiing is easier, lighter and safer, giving more fun and pleasure. So what are you waiting for? Winter is already here. See you on slopes!

For expert skiers - introducing Amphibio® technology to the Race series.

The new SLx AMPHIBIO changes the rules of the racing world. POWER SPINE TECHNOL-OGY, the genetic evolution of race ski construc-tion, with its central spine arch bringing power and excellent edge grip to the skis, the ski’s interior construction is stronger and reinforced with a carbon layer along its entire length; and bones - reinforced elements that go out of the arch construction and follow the ski’s sidecut, providing better edge grip and torsion stabil-ity, Amphibio® Profile allows faster and direct turn initiation. Elan Race skis are the first race skis with real left & right construction. The combination of Power Spine Technology with Amphibio® Profile and asymmetric tips and tails, allows the most efficient transmission of force from the legs to the snow, assuring unri-valled performance on the most difficult slopes. Together with the rocker portion of Amphibio® Profile they provide direct turn initiation.

This new technology has been applied to the entire race range including SLX, SL, GSX, and the full range of Ripstick FIS skis, including the special Ripstick FIS skicross model used by Filip Flisar in the Ski Cross World Cup.

This winter, Elan will bring to market two important innovations. For expert skiers - introducing Amphibio® technology to the Race series. The second innovation will make women happy, the introduction of the world’s lightest ski - Delight.

Since 1945 when the first wooden Elan skis were created, the new features and improve-ments of Elan product collections have dictated trends on ski slopes around the world. Globally, Elan’s greatest achievements have included carving skis (1990) which completely redefined skiing; WaveFlex™ (2006), a technology that provides high torsion stiffness and simultane-ously improves the skis’ bending ability; and Amphibio (2011), original technology that uniquely combines powerful edge grip and easy turning for safe and smooth skiing. Innovation is a key element of Elan’s culture, integrated into every stage of development and all areas of activity.

Elan collaborates with leading experts in design because they are aware that excellence comes through the integration of a wealth of experience and specialised multidisciplinary knowledge. Commitment to development and innovation and dedication to achieving goals have strengthened Elan’s position among the world’s leading manufacturers of skis and other sporting equipment. The Elan ski factory has be-come the largest production facility in the world.

This winter, Elan will bring to market two important innovations.

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Economy

Sport

Cheer Slovenia in SochiWhat can Slovenia offer at the white Olympics on the shores of the Black Sea? Well, a colourful team, full of prospects and high hopes, perhaps the best team ever to represent the country at the Winter Olympic Games.

By Igor E. Bergant

There will be the amazing Tina Maze, last year’s Queen of Alpine skiing, the lady who won the 2013 World Cup with the highest total points in the history of the event. She has won everything in her career, including the World Champion title and the hearts of Slovenian and many international skiing fans, except Olym-pic gold, narrowly missing twice at the 2010 Olympics in Vancouver.

There will be the proven specialist in big biathlon events, Jakov Fak, who regularly collects medals at major championships. After surprisingly winning the bronze medal in the sprinting event of combined cross country skiing and shooting at the Vancouver Games for his native Croatia, he opted to change his nationality to the country in which he has been coached to reach the supreme level of his sport – Slovenia. The man with an immense positive aura, who inspires his team-mates, last year be-came the World Champion in the 20 kilometre competition.

There will also be Rok Marguč, who rocked the snowboarding scene by winning the world title in parallel slalom; the former overall

World Cup winner in ski-cross, the high-flying Filip Flisar; the World Champion in probably the most breath-taking winter sport of all – the (really high and long) ski flying (which couldn’t be invented anywhere else but Slovenia) – Robert Kranjec. Where Kranjec, the “human crane”, who won an Olympic bronze medal in ski jumping in 2002 at Salt Lake City, is the most experienced member of the highly gifted squad, in which the head coach has real trouble picking the best four competitors and follow-ing Olympic quota regulations without fearing he will leave a potential medal winner out of the team.

There are more, many more Slovenian fe-male and male athletes who will rush to beat their own Olympic goals and challenge their international rivals in and around the capital of the Russian Riviera.

There will even be a Slovenian male ice hockey team competing for the first time since the independence of the country. The guys are real binx (their nickname is in fact The Lynx) even to qualify for the Olympics, since there are less than 1,000 registered ice hockey play-ers, including children and veterans, in the country. Thus it is no surprise that the team around its big star – LA Kings player and 2012 Stanley Cup winner and currently the only Slo-venian player in the NHL, Anže Kopitar – is managed by Kopitar’s father, Matjaž. Slovenia’s aim is to go beyond the knock-out phase of the medal chase and enjoy Olympic clashes with the Russian home team, the US boys and their far more prominent Slovakian cousins.

It is the variety of Slovenian options in Sochi that can strike one’s attention and make this country of merely two million people proud of themselves. The winter Olympians from Slovenia achieve so much through their commitment, hard work and talent. But they clearly profit from a sporting environment which gives them many opportunities for trying different things and learning different skills. They are able to develop excellence, build self-confidence and stand tall in the face of the global contest. It’s based on long-term vision. It’s not a coincidence.

But this begs the question: why on earth can we do so well in winter and summer sports and so badly in many other fields of life and work in Slovenia. The answer may not be found in Sochi, but a medal or so would certainly cheer us up and hopefully inspire us and made us think again how to apply our talents elsewhere.

Rok Marguč; Photo: Reuters

Jakov Fak

Slovenia Ski Jumping Team; Photo: Klemen Zibelnik, SZS

Anže Kopitar; Slovenia Ice Hockey Team

Tina Maze; Photo: Goran Antlej

SportsSports


Economy

Winter Olympic Games

From Chamonix to SochiWith the exception of the Winter Olympic Games in Lake Placid in 1932 and Squaw Valley in 1960, Slovene athletes have taken part in all other Olympiads, including the very first in Chamonix in 1924. In all, they have won 11 medals with only Tina Maze in skiing and Matjaž Debelak in ski-jumping winning two medals each.

By Simon Demšar

medal for Yugoslavia, now considered also the first Slovenian Olympic medal. Franko became a national hero and the whole of Yugoslavia cel-ebrated. Older fans still remember the popular slogan “We love Jurek more than burek.”

The games in Albertville in 1992 were his-toric as they were the first big international event where Slovenia was allowed to compete as an independent country. Franci Petek car-ried the flag in the Opening Ceremony and

Slovenia’s ElevenSo far, Slovenian athletes have won these Olympic medals:Jure Franko Silver Giant Slalom Sarajevo 1984Mateja Svet Silver Slalom Calgary 1988Ski Jumping Team Silver Ski-Jumping Calgary 1988Tina Maze Silver Giant Slalom Vancouver 2010Tina Maze Silver Super G Vancouver 2010Matjaž Debelak Bronze Ski Jumping Calgary 1988Alenka Dovžan Bronze Slalom/Downhill Combination Lillehammer 1994Katja Koren Bronze Slalom Lillehammer 1994Jure Košir Bronze Slalom Lillehammer 1994Ski Jumping Team Bronze Ski-Jumping Salt Lake City 2002Petra Majdič Bronze Cross-Country Vancouver 2010

Slovene Olympic history begins with Zdenko Švigelj and Vladimir Kajzelj who participated in cross-country skiing in Chamonix. In the 18km run they finished 32nd and 34th respec-tively but retired in the 50km event. In the pre-war era, the best results were achieved in Garmisch Partenkirchen in 1936 by Franc Smolej who finished an excellent 10th in cross-country skiing. Slovenia had to wait until Sap-poro in 1972 for another top 10 finish when Danilo Pudgar was eighth in ski jumping.

The modern era began in Lake Placid in 1980 where Slovenia (under the Yugoslav flag) had a realistic chance of a medal for the first time. Unfortunately, the legendary Bojan Križaj missed by a mere two hundredths of a second to the Austrian Hans Enn in the gi-ant slalom. In slalom, his strongest discipline, he made a rarely seen error when he simply thought that a pole on the course was missing. He didn’t come so close again in Olympics al-though he remained a top world cup contender for another decade.

The Olympic Games in Sarajevo in 1984 were also Slovenia’s home games. They reached a climax when Jure Franko won a silver medal in the giant slalom, the first Winter Olympic

the whole team received a very warm welcome from the crowd. In Nagano in 1998, Slovenia was left without a medal after ski-jumper Primož Peterka failed to capitalise on his excel-lent form during the season when he won the overall World Cup.

In Salt Lake City in 2002, Slovenia present-ed as a mature team, capable of competitive performances in a number of sports. Justice was done when Peterka, fresh from a comeback after a couple of difficult years, won a silver medal in the team competition. “In Nagano I expected a medal and won nothing, in Salt Lake City I expected nothing and won a medal,” he said at the time.

In Turin, four years later, Petra Majdič was in Peterka’s shoes. A hot favourite in cross-country skiing, she managed no better than a sixth and an eighth place and the whole team failed to win a medal. Vancouver, four years ago, was the site of one of the most moving Olympic stories ever. Majdič had an unfor-tunate accident during a warm-up when she skidded off the track and plunged three metres deep into a gully and broke four ribs. Despite great pain she made it through two qualifying runs and won a heroic bronze medal.

Calgary 1988 and Vancouver 2010 were the most successful Winter Olympics for Slovene athletes. On both occasions two silver and a bronze medal were won. Since 1988, Slovenia has won medals at every second Olympiad, so if history repeats then next year should be dry but in this respect the athletes will surely try to defy the statistics.

Olympic Winter Games – Chamonix 1924

Olympic Winter Games – Sochi 2014

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Sports

proved a lot. So, when you put it all together, I can say it was very productive.

Q Considering this season is an Olympic season – do you feel more pressure than usual?A Rather than pressure I am just more moti-vated to train hard. I really aspire to put on a good show in Sochi, which is very good motiva-tion for training but I don’t feel under pressure about it.

Q How was your summer? Was it just training, training, training or did you manage some time off?A This summer “time off” wasn’t on the menu. The Olympic season was closing in and I did not have much choice but to train all day long. This summer it was really all about getting ready – not going out in the evenings, not attending barbecues every week etc.

Q The number of sports that you are good in is pretty impressive. You skateboard, ride a down-hill mountain bike and BMX, you wakeboard and ride dirt bikes, and in some of them you exceed the amateur level. Do you think this contributes to success in Ski Cross?A It is true. You could say I am a bit of an “all-rounder” which definitely helps a lot. Being on a skateboard, bike or motorbike gives you

a lot. I can’t say it affects skiing directly but it greatly improves balance and coordination. This reflects in improved motor abilities and if you ask me, this is the best thing about being an “all-rounder”.

Q What will be your priority this season – an Olympic medal or ending the season as the Ski Cross World Champion? A Definitely the Olympic medal! I already have one crystal globe “in the bag” so the main focus is definitely on the medal in Sochi. No-body is saying it is impossible though. If you perform well at the Olympics then there is a good chance you will also do well in the World Cup. If you look at it this way, Sochi is just an-other race that we will attend this season.

Q You tested the Ski Cross course in Sochi last year when a World Cup race was held there. Do you think that the Olympic course will be just as “epic” as the Games in general?A Since Ski Cross debuted at the Olympics in Vancouver, it is my only experience with Olym-pic courses so far, but it is a great one. Last year there was a “trial” World Cup race held in Sochi and I must say that the course is fantas-tic, which is mainly due to the huge amount of money the Russians invested in the prepara-tion. Building Ski Cross courses requires a lot

Interview: Filip Flisar, Ski Cross Ace

Slovenia s fastest moustacheFilip Flisar – truly one of a kind and one of Slovenia’s finest. The 26 year old Ski Cross ace from Maribor has already climbed to the top of the podium many times, finishing second at the X-Games and becoming the overall season champion in the 2011- 2012 season. With Olympic fever growing, Filip is showing no signs of tension or stress – his aim is clear and his goals are on the horizon. There is so much more to Filip than Ski Cross and his moustache!

By Luka Krajnik

Q So Filip, your season has already started. How are you feeling? A I am feeling excellent! This year I’ve teamed up with a new fitness coach and we have really taken a big step forward with my physical prep-aration. I had some bad luck in summer when I injured my heel and my shoulder, putting me out for almost two months but, looking back, it wasn’t that big a deal. I went to Chile with the Slovenian downhill team where I really im-

Sports


Sports

of earth shifting that costs a fortune and the organisers in Sochi put something like EUR 500,000 into just our course and really built it well. I prefer these kinds of courses – I like big jumps with a high level of technical difficulty because courses like these eliminate the factor of luck. In Ski Cross, luck sometimes counts a lot – sometimes some competitors, that other-wise wouldn’t stand a chance, get lucky on the start or profit on the mistakes of others in the early stages of the race and make it through with a good score. On a course like the one in Sochi, the effect of luck is very limited as you need to be on top of your game throughout the whole length of the course – there are some 20 jumps that you need to land perfectly if you want to retain or even gain more speed for what is coming next.

Q In one of your interviews you mentioned that some people think that you are in Ski Cross be-cause you were not good enough for alpine skiing. Q And now here you are, training with the alpine downhill national team and even beating them all in a race in Chile over the summer. What are your thoughts about this? A I don’t really have an opinion about this. In our world nobody is actually surprised about it – it is pretty obvious that if you are at the top of the Ski Cross game, you need to be a very good skier. If you are a very good skier you can also do well in alpine skiing because alpine skiing is the “base” that you build from. Now all the sceptics that said “You are playing tough in Ski Cross but you were not able to make it in al-pine skiing” can hopefully appreciate Ski Cross more as a discipline.

Q Last season there was a lot of talk about you having problems with your equipment. Have you and your team sorted this for the upcoming season?

A Indeed, I had some technical problems last year. This year I’ve taken matters into my own hands because I don’t trust others anymore. I have personally tested all the skis and every-thing else and now the equipment is as it needs to be. I trust myself on this and in the end that is what matters the most.

Q How are you taken care of as a sportsman by the Ski Association of Slovenia?A This year is much better I have to say. We all know that it could have been better in the past when I had virtually no support. Now the degree of their engagement has improved dramatically and I am very positively surprised about this. We cooperate well at the moment. Our team consists of four – Saša Parič, Blaž Ogorelc and a British dude, Peter Milan. Now we are complete – we have a coach and also someone who prepares my skis. A pretty pro-fessional team and I am very pleased with this.

Q Do you think that all the commotion around the Ski Association of Slovenia and the develop-ments there affects the performances of the ath-letes? A Yes, I think it does. It is obvious that if there is constant conflict and inconvenience at the Association, the spirit amongst the coaches and athletes can be a bit depressing. If a coach has a problem with being paid then he will be in a bad mood and this will reflect among the athletes as well. Don’t get me wrong, I am not saying coaches are not being paid but constant conflict reflects in the performance of every-body. But they are putting a great effort in end-ing this and so I think it is getting better and better.

Q How do you, as a young aspiring citizen of Slovenia, look upon the problems our country is

dealing with? Is the government doing enough for sport so that Slovenia will be able to nurture fu-ture generations of world-class athletes who will represent Slovenia? A This is a very broad topic of discussion and we could organise a six hour “talk show” just to answer this question. In some aspects the government or some organisations, such as the Olympic Committee of Slovenia, are doing a great job. The ministry is doing us world-class athletes a huge favour by giving us the opportunity to be “employed” in the armed forces or the police. But this only helps the already successful athletes who usually make some money on their own and can take care of themselves. The government could do more for sporting institutions and similar organisa-tions because this is how our society would benefit as a whole. Slovenians are well known as superb sportsmen and with better sporting infrastructure we would be even better because we all know that we don’t lack the enthusiasm or the passion for sport. This is especially ob-vious when considering that we are getting better and better regardless of the conditions for training, which are not necessarily improv-ing. In Slovenia you will not make it and it will not pay if you wait for somebody to help you and push you forward. You need to be very re-sourceful and find your own way. The situation is not brilliant, it could be better.

Sports


Culture&Events

Controversial Exhibition

Tito: A Yugoslav IconA new exhibition at Gospodarsko razstavišče in Ljubljana presents the life of the leader of the former Yugoslavia, Josip Broz Tito. Claiming to be “the first and largest” exhibition in Slovenia, it covers Tito’s life from his birth in Krumrovec to his death in Ljubljana and everything in between.

By David Tiefenthaler

More than two decades after the downfall of Yugoslavia, a big exhibition at Gospodarsko razstavišče in Ljubljana presents the life and work of Yugoslavia’s iconic leader, Josip Broz Tito. In the former countries of Yugoslavia, the old times are still present and people still remember the times under the leadership of Tito. And it has to be said: Comrade Tito, as he was called in Yugoslavia, is a controversial fig-ure among the nations of the former Yugosla-via. Repressive dictator or benevolent leader? Opinions about Josip Broz are still very differ-ent. Like Fitzroy McLean wrote in the Sunday Times: “Some people like Tito. Some don’t. Peo-ple like the 20th century or not. Some don’t. But they belong together, this man and this century.”

The exhibition begins with the birth of Josip Broz in Krumrovec, now in Croatia and proceeds with his youth learning the profes-sion of a locksmith and various workplaces in Slovenia, Austria and Germany. Drafted into military service, he distinguished himself, becoming the youngest Sergeant Major in the Austro-Hungarian army. After being seriously wounded and captured by the Imperial Rus-sians during World War I, he was sent to a work camp in the Ural Mountains. He participated in the October Revolution and later joined a Red Guard unit in Omsk. Upon his return home, Broz found himself in the newly estab-lished Kingdom of Yugoslavia where he joined the Communist Party of Yugoslavia.

During World War II, he led the partisan movement against the Nazis and became the main architect of the Socialist Federal Repub-lic of Yugoslavia, of which he soon became the undisputed leader. He split with Stalin and became the leader of the countries of the Non-Aligned Movement, who were neither part of the western bloc nor the eastern. He established strong ties with third world coun-tries such as Ghana and pursued a path of neutrality during the time of the cold war. Yugoslavia faced economic prosperity and fast development in the 1960s and 1970s, as well

as nationalist efforts which were suppressed by the Communist Party. After his death in May 1980 in Ljubljana, Yugoslavia lost what had held it together for three decades. It was maybe Tito’s greatest achievement to maintain unity among the Yugoslav nations and his “liberal communism” which was also recognised by his western partners.

The exhibit in Ljubljana provides visitors with an extensive selection of photos and materials such as paintings, personal belong-ings and other Tito related items. Of particular interest for visitors are the various interviews with people who worked with and for Josip Broz in former Yugoslavia. You can hear the stories of people from the military and his political cabinet, as well as his personal pilot who recalls anecdotes of his time with the statesman. Other sections of the exhibition reference Tito’s vehicle fleet, his New Year’s Eve celebrations (astonishing!), his travels around the world and the funeral of all funerals.

As a foreigner having seen the exhibition, I can say that the Tito exhibition takes a rather neutral position within a dispute which still divides people in the former Yugoslavia into two camps. It neither glorifies Tito nor pre-sents him as a brutal dictator. What I missed a little when visiting the exhibition, were views from people who were not working for Tito and therefore unbiased. Only a very small place in the exhibition is reserved for the dark side of Tito’s reign which only mentions the prison island Goli Otok, where thousands of political enemies and other prisoners were interned and tortured. The activities around the Yugoslavian secret service hunting down anti-communists and opponents of the regime are not men-tioned.

Nevertheless, the exhibition will satisfy Tito aficionados who nostalgically recall the times of his leadership of the common country, as well as his opponents and detractors, since it presents Tito as a personality and not as an ideological figure of the former social organisa-tion.

Culture&Events

Event Guide

The Slovenian Times | Winter Edition 201362

Concert

Budapest Gypsy Symphony Orchestra 14.12.2013, Hala Tivoli, Ljubljana, EUR 26 - 55The Hungarian orchestra is also known as the 100 violins and the most famous orchestra of gypsy musicians. They have had worldwide success, released records and are now coming to Tivoli Park. The musicians are mainly influ-enced by the great classical musicians such as Brahms, Strauß and Tchaikovsky. Those who are fans of classical music with a fresh twist will enjoy this concert.

Exhibition

Marij Preglej: Illustrations until 6.4.2014, Moderna Galerija, LjubljanaOn the 100th anniversary of Marij Pregelj’s birth, the Moderna Galerija is staging an ex-hibition of his illustrations for the Iliad (1949-50), which will be followed on 7 January 2014, by an exhibition of his illustrations for the Od-yssey (1951), in the post-war modernism sec-tion of the permanent exhibition 20th Century. Continuities and Ruptures. Preglej was one of the most notable modernists of his time, who also contributed to books such as White Fang and The Old Man And The Sea.

Event

New Years Eve in Ljubljana 31.12.2013, Ljubljana city centreThe programme of New Year’s Eve celebra-tions held in city centre squares is intended for people of all ages and tastes. A minute after midnight, a fireworks display will set the skies above Ljubljana alight and announce the begin-ning of the new year.

Fair:

Gast Expo: Fairs of Tastes 29.1.2014-1.2.2014, Gospodarsko Razstavišče, LjubljanaSimultaneously with the Alpe-Adria Tourism and Leisure Fair, this event is all about food and beverages and setting new trends. There will be specialised fairs for wine, ice cream, cof-fee, pizza and pasta. The annual fair will pre-sent and promote new products and services and provide a platform for interested visitors. If you are really into food and beverages and searching for new trends, you should not miss it!

Kino

The Company You Keep 15.12.2013, 7pm, Kinodvor, LjubljanaLong-time actor, Robert Redford, plays a lawyer with a past as an Anti-Vietnam War militant accused of robbery and murder. His counterpart is Shia LaBeouf, who plays the aggressive and young reporter, Ben. Jim Grant has hidden his past for 30 years, now with the FBI on his tracks he can lose everything. The thriller, which is also directed by Redford, will be shown in Ljubljana’s city cinema, Kinodvor, on this single occasion, so do not miss it!

Theatre/Dance

Dia Diasso Diasspora 31.12.2013, 7.30pm, Cankarjev dom, Ljubljana, EUR 22-25Created by Maša Kagao Knez, this event is a unique mixture of African culture and the expression of modern music and dance. The word ‘Dia’ means prosperity in Malinke, one of the languages of West Africa, ‘Diasso’ means a good home and ‘Diasspora’ speaks about the state of constant dichotomy between the homelands of the two parents and about the many faces of being different or the experience of (not) belonging. With this striking piece of dance and music, its authors have overcome the boundaries of countries and even conti-nents and brought originality, spontaneity and openness to the Slovenian cultural scene.

Event Guide


Rock/Pop

Anna Calvi 27.2.2014, Kino Šiška, Ljubljana, EUR 16-20Half Italian singer/guitarist, Anna Calvi, honours Slovenia at the end of February with a visit. Calvi describes her music as brooding, melodramatic, goth-pop, drawing influence from people like Django Reinhardt, Nick Cave and The Velvet Underground. Hailed by Brian Eno as “the best thing since Patti Smith”, as well as being included on the BBC’s Sound of 2011 list, it can be stated that Anna Calvi is on the up and coming.

Exhibition:

Overseas combatants until May 2014, Muzej novejše zgodovine Slovenije, LjubljanaThis temporary exhibition tells the story of the international brigades who reinforced the partisan movement in the last one and a half years of the war. Although fighting shoulder to shoulder with the partisans, they were regard-ed as second class partisans in post-war Yugo-slavia. The exhibition also features interviews with eyewitnesses which help in understand-ing their way through WWII.

Rock

Frank Turner and The Sleeping Souls 7.3.2014, 9pm, Kino Šiška, Ljubljana, EUR 18-22British folk-punk poet, Frank Turner, is coming to Slovenia for the first time to the infamous Kino Šiška in Ljubljana. Frank Turner is a unique phenomenon of today’s British music scene: the former vocalist of the post-hardcore band Million Dead has managed to transfer the boldness into singer-songwriter tracks, provide them with a lively folk-punk touch and win over diverse crowds of rock/pop/indie/punk/hardcore music fans. He played at last year‘s Olympic Games in London and is being carried on the wings of his new album Tape Deck Heart to Slovenia.

Classical

Czech Philharmonic 12.2.2014, 8pm, Cankarjev dom, Ljubljana, EUR 31 - 65It is no coincidence that the Czech Philhar-monic will be performing a work by Antonín Dvořák. 2014 marks the 110th anniversary of this Czech master and it was under the com-poser’s baton that the Czech Philharmonic gave its first public performance, under their cur-rent name, in 1896. Today, they are conducted by Jiří Bělohlávek and playing the works of Rachmaninov and Dvořák. The skill of Nikolai Lugansky, referred to as “the Russian prince of piano”, can be best experienced through his interpretation of Rachmaninov and the Czech tradition can be rendered at its most authentic by the Czech Philharmonic.

Exhibition

Tito A Yugslavian Icon until 28.2.2014, every day from 10am to 7pm, Gospodarsko Razstavišče, LjubljanaSome people like Tito, some don’t. The first and largest exhibition in Slovenia about the long-time leader of the former Yugoslavia invites visitors to find out why. Josip Broz Tito’s life is presented in a faceted way, providing a wide range of impressions so as not to be biased. The exhibition contains a large number of photos and video material, as well as some of his ve-hicle fleet.

The invention of the wheel is the foundation of civilisation and culture. Thousands of years of inventiveness have not created anything to replace the wheel. And the oldest wooden wheel with an axle, 5,200 years old, was discovered in Slovenia in the Ljubljana Marshes.

The wheel is making its fi rst public appearance in the City Museum

of Ljubljana at an exhibition which links ancient heritage and technological and scientifi c development with culture and art in an original manner and even escapes the limitations of our planet.

Visit the exhibition and experience the wheel in a completely new and surprising manner.

oglas_TIMES_230x300.indd 3 8/26/13 11:56 AM

New SLX Amphibio changes the rules of the racing world. Power Spine technology, genetic evoloution of race skis construction, with its spine and bones provides better edge grip and torsional stability, Amphibio® Profile allows faster and direct turn initiation. It will be difficult to catch them.

ALL THE REACTIVITY, STABILITY AND POWER YOU WERE ASKING FOR.

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The Slovenia Times - Winter Edition