STA, 19 December 2020 - The government adopted on Saturday a new economic stimulus package. Direct income support for groups including pensioners, students and those with the lowest wages is planned along with aid for companies. Finance Minister Andrej Šircelj said the package is estimated at around EUR 550 million.

All employees with wages up to twice the minimum wage will get a one-off payment of EUR 200 from their employers that will then be refunded by the Tax Administration.

Pensioners will get EUR 130-300 depending on their pensions. Those with pensions up to EUR 714 will be eligible.

Students will get income support of EUR 150, and whose who receive child allowance will get an extra EUR 50 per child.

Farmers over 65 with income under EUR 591 will get EUR 150.

Religious workers will get a basic income of EUR 700, plus their social security contributions will be covered by the state.

Employees in hospitals and nursing homes will get a 30% increase in hourly pay, with the hike at 65% for those "working in particularly risky conditions," according to Šircelj.

The income support payments are broadly similar to measures adopted during the first wave of the epidemic.

"The social component of this package is significant, we are confident that these transfers will improve the welfare of those who need these allowances the most," he said.

For companies, special loans will be available from the state-owned SID Banka, while companies that suffered a revenue decline in excess of 70% will be eligible for aid of EUR 2,000 per employee in fixed costs.

There are also special provisions helping transport companies, rent assistance for companies, payment of rapid coronavirus tests for companies, and waiver of VAT on medical equipment needed to fight the epidemic.

One of the drafts of the legislative package included a partial suspension of the scheduled increase in the minimum wage, which takes effect on 1 January.

The proposal was met with strong resistance from trade unions, some of which started to gear up for industrial action.

Šircelj said a provision to this effect was not included in the bill. He said it is something employers and trade unions would have to agree among themselves.

According to the minister, the bill, which has not been made publicly available yet, would be sent to parliament as soon as possible.

STA, 17 December 2020 - The government decided on Thursday to allow some more shops, including those selling technical goods, to reopen for five days, from 19 to 23 December, after some services reopened on 15 December. What lockdown regime will apply after that is expected to be determined in the coming days, Economy Minister Zdravko Počivalšek said.

Shops selling technical goods, tree and plant nurseries as well as shops with goods for installation, maintenance and repair services will be able to open across the country. Pet care services as well as some counselling and therapeutic services will also be allowed.

Meanwhile, book shops, shops selling stationary and gifts, shops offering photocopying services and those with baby and children's products will only open in the four regions with a better epidemiological situation - Central Slovenia, Goriška, Obalno-Kraška and Gorenjska.

Real estate agents will also be able to offer their services in these regions, where clothes and footwear shops reopened on Tuesday.

Počivalšek said the government had already discussed the regime after 23 December but the final decision is to be taken in the coming days.

He said it would be largely based on epidemiological trends following the ongoing temporary easing of restrictions in the services sector.

The minister believes that despite the difficult epidemiological situation, it is vital that the economy is functioning.

Slovenia cannot afford a full lockdown during the holiday season, he told the government's afternoon Covid-19 briefing. "We are aware of its economic consequences, so this is not a measure we desire or support."

STA, 15 December 2020 - Some 84,700 unemployed persons were registered with Slovenia's Employment Service on average in the first eleven months of 2020, up 14.5% compared to the same period in 2019. Currently, 84,732 unemployed persons are recorded, however the figure is expected to rise to some 88,000 at the end of the year, Employment Service head Mitja Bobnar said.

During the January-November period, about 90,500 persons registered as unemployed, a 35% increase on the same period in 2019, Bobnar noted at today' briefing.

The year-on-year rise was most significant in the case of furloughed workers or people whose companies had gone bust. Among those who lost their jobs was also a larger number of persons who had seen their fixed-term contracts expire.

At the end of November, the unemployed register numbered more than 84,100, up by 16% year-on-year.

Employers registered 107,000 vacancies until the end of November, down by 27% on the first eleven months in 2019.

In the past two months, the number of vacancies dropped by some 20%, most notably in culture, recreational activities, traffic, warehouse services, retail and the hospitality sector, Bobnar said.

"Certain activities have been hiring on a significantly larger scale," he said, highlighting manufacturing, construction, transportation services and social care activities as such areas.

Compared with other European countries, Slovenia's unemployment rate is somewhere in between, he noted.

Since the start of stimulus measures, the Employment Service has received more than 160,000 applications for the furlough or short-time work schemes for over 600,000 workers. "The figure is truly high, however we manage to process the applications in 14 days on average," Bobnar said.

All furlough scheme applications stemming from the fourth and fifth stimulus packages have been processed, he said, adding that short-time work scheme applications had been processed in timely fashion.

A total of EUR 335 million was disbursed to some 36,200 service providers for 236,000 workers.

STA, 15 December 2020 - Banka Slovenije, Slovenia's central bank, expects the economy to contract by 7.6% this year before growing at a rate of 3.1% in 2021 and 4.5% in 2022. The forecast hinges on the successful rollout of coronavirus vaccines.

The figures for this year and next mark a sharp downgrade from its forecast in June, when the central bank projected that the economy would contract by 6.5% this year and expand by 4.9% in 2021. The forecast for 2022 has, however, been upgraded by almost a full percentage point.

"According to this scenario, Slovenia would return to the pre-corona level at the end of 2022," said Arjana Brezigar Masten, the head of the central bank's analytical and research department.

Brezigar Masten said the forecast hinged on the successful rollout of coronavirus vaccines.

If the second wave of the epidemic could be contained this year, Slovenia could return to pre-corona levels in 2021. If the unfavourably epidemiological situation persists, GDP could continue declining next year and Slovenia would not reach pre-corona levels before the end of 2022.

The contraction has been substantially cushioned by economic stimulus measures. Absent these measures, the contraction would be worse by a third, she said.

Government stimulus has also kept the labour market stable, which is why the central bank expects unemployment will not be as bad as initially feared. The forecast indicates employment will decline by 1.5% this year and 0.3% next year before rising by 1.4% in 2022.

According to Brezigar Masten, survey unemployment is expected to increase next year but remain below 6%, which is "significantly less than in the previous financial crisis."

"Model estimates show that government measures, in particular subsidies for furlough and shorter work time, have so far managed to preserve roughly 16,000 jobs."

Exports are projected to contract by over 11% this year before expanding by 7.2% and 6.8% in the next two years. Imports, expected to plunge by over 13% this year, are to outpace exports in the next two years.

Consumer prices are projected to drop by 0.2% year-on-year, but once the epidemiological situation improves the central bank expects inflation to pick up, hitting 0.9% next year and 1.3% in 2022.

The latest macroeconomic forecasts are in broad convergence about the contraction of Slovenia's GDP this year, with the economy expected to shrink by about 7%. A rebound in the 3-5% range is expected in 2021.

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Banka Slovenije/December           -7.6%      3.1%      4.5%
OECD/December                      -7.5%      3.4%      3.5%
European Commission/November       -7.1%      5.1%      3.8%
IMF/October                        -6.7%      5.2%
EBRD/October                       -7.5%      3.5%
IMAD/September                     -6.7%      5.1%      3.7%
----------------------------------------------------------------

Source: Individual forecasts

STA, 14 December 2020 - The Eco Fund has reduced subsidies for electric vehicles in its latest tender published in the Official Gazette. The fund decided for the move because the overall volume of subsidies had been rising in recent years as the number of subsidised vehicles almost doubled each year while the price of vehicles has been dropping.

In the two public calls for application, for individuals and companies, which were published on Friday, the rules stipulate that subsidies cannot exceed 20% of the vehicle's value and thus range from EUR 300 to EUR 4,500.

Only vehicles that cost no more than EUR 65,000, including VAT, other discounts and battery lease included, can receive state subsidies.

In practical terms this means a subsidy for a typical electric car will drop to a maximum of EUR 4,500 from EUR 6,000, while subsidies for cargo vehicles will be EUR 1,000 lower and for light four-wheeled vehicles EUR 500 lower.

Companies will from now on be awarded subsidies under the 'de minimis' rule, which means a company must not receive more than EUR 200,000 in subsidies, with the exception of Covid-19 aid, over three business years. This is to simplify procedures, as the subsidies will be awarded for investments that have already been carried out.

Under the new rules, companies will no longer be reimbursed for the extra costs that they have with the electric vehicle compared to those using fossil fuel. Vehicles will be subsidised based on their category and regardless of the size or location of the company.

STA, 13 December 2020 - The government has extended for another week the temporary closure of shops offering non-essential goods and services to consumers in person, as it is due to resume debate on coronavirus restrictions today.

A new decree extending the ban, which was first imposed on 16 November in a bid to contain the coronavirus epidemic, is effective from Sunday.

The government opted for the extension late last night following consultations with health and business officials, the assessment being that the coronavirus situation in the country is not improving.

At the consultations, held at Brdo estate yesterday, hospital managers warned that hospitals have limited reserves for any potential increase in the number of Covid-19 patients.

According to a report by TV Slovenija, the officials warned the number of patients requiring hospital treatment could increase by up to 30% in January, also due to other respiratory conditions.

"We've given the reserves we had into fighting Covid-19. Patients with other diseases who also need beds are coming," Aleš Rozman, director of the Golnik University Clinic of Respiratory and Allergic Diseases, told Radio Slovenija.

Bojana Beović, the head of the Covid-19 advisory group, speaking to reporters ahead of the meeting with the government, said: "We can secure, let's say an extra 100 beds, but this means another 100 gravelly ill, more dead and more people with long-term consequences."

Under the government lockdown exit strategy, the number of hospitalised patients should fall bellow 1,200 or the number of daily infections below 1,350 on average over the past seven days for the first easing of measures.

While data for Saturday are yet to be published, a total of 1,276 Covid-19 patients were hospitalised on Friday, as the seven-day average of new cases stood at 1,526, according to covid-19.sledilnik.org tracker site.

The government also met yesterday representatives of businesses, who have been stepping up their calls for the reopening of some shops such as hairdresser's, florist's and small clothes stores.

After the meeting, which dragged late into the night, Branko Meh, the head of the Chamber of Trade Crafts and Small Business, told the STA the government heard out their arguments so they expected some easing soon.

"We talked mainly about regional opening of hair and beauty salons, flower shops and clothes stores," he said, adding that the business expressed their commitment to abide by safety measures.

Boštjan Gorjup, the chairman of the Chamber of Commerce and Industry, also expects that the government will start easing some measures gradually in the coming days.

The government will resume debate on coronavirus measures in a scaled-down format today, according to the Government Communication Office. Another possible item on the agenda is the 7th stimulus package.

STA, 10 December 2020 - The government has approved a proposal to amend the road transport act which introduces legal basis for digital labour platforms, such as Uber. The proposal sets down that drivers via these gig economy companies would need to get a licence. The amendments would also abolish mandatory use of taximeters for taxi drivers.

The proposal paves the way for innovative technologies in Slovenia's passenger transport which can enable service providers to exchange resources, time, knowhow and skills to provide new, expanded and lower-cost services to users, the Government Communication Office (UKOM) said on Wednesday after the government greenlit the proposal.

The amendments would change and streamline taxi services and put taxi services and private car and driver rentals on an equal footing by standardising conditions for using such apps.

Taximeters would thus no longer be necessary for taxi drivers. The Infrastructure Ministry had said that taximeters had been made pointless by digital platforms for transportation services, which enable the passenger and provider to agree on the price in advance.

The municipalities would also have a say in setting relevant rules since they would be able to determine the quality standard prescribing the type of a vehicle among other things. The ministry thinks such policy would enable local communities to pursue their environmental targets.

The amendments also include certain provisions making public transport more attractive to users and simplifying procedures for obtaining transit cards for professional athletes.

Infrastructure Minister Jernej Vrtovec announced setting up legal basis for digital platforms the likes of Uber in July.

Taxi drivers mostly oppose the changes, deeming such gig economy platforms unfair competition.

STA, 11 December 2020 - The Chamber of Commerce (TZS) has again called on the government to reopen non-essential stores. The appeal comes ahead of Saturday's government session where the future course of action to stem the epidemic is to be determined. Non-grocery stores have been closed four months and the chamber estimates the lost revenue at over EUR 2 billion.

The organisation highlighted on Friday that stores were not a source of infections or a factor aggravating the epidemiological status. It warned that retailers were facing huge problems, including seasonal goods piling up in their warehouses.

Moreover, consumers have been turning to the chamber reporting difficulties in acquiring urgently needed products.

"The closure of retail services is not underpinned by an assessment of the actual epidemiological risk in certain activities," said the head of the chamber Mariča Lah, adding that the lockdown had been causing disproportionate damage.

Retailers have been consistently heeding prevention measures, she added, calling on the authorities to reopen the stores and take steps that would aim to contain the actual coronavirus hotspots.