Business
STA, 23 July 2020 - The Slovenian government revoked a temporary ban on Sunday shopping that had been put in place during the earliest stages of the epidemic in mid-March. It said shops were now free to set their opening hours as they see fit.
The decision, adopted at the government session on Thursday as part of amendments to a decree that limits the sale of goods and services to consumers, comes just a week after legislation that would permanently close shops on Sunday stalled in parliament.
The legislation had been tabled by the Left and appeared to be slated for passage, but last-minute amendments made it impossible to pass the bill outright so it had to be sent into third reading.
The government had initially indicated it might end Sunday shopping for good, but then appears to have changed course.
The Sunday shopping ban has been wholeheartedly endorsed by trade unions, but retailers warned it could lead to massive layoffs and permanent shop closures.
STA, 23 July 2020 - Telekom Slovenije has started setting up the country's first commercial 5G networks using its existing base stations and within the existing 2600MHz frequency spectrum used in 4G. The company says that coverage will initially be provided in about 25% of the country but is expected to exceed 33% by the end of the year.
The national telecommunications operator said in a press conference on Thursday that the upgraded 4G/5G network will allow for data transfer speeds faster than provided by the LTE/4G network. However, the full potential of 5G will become available only after additional parts of the spectrum are awarded, it added.
So far, Telekom has upgraded 150 base stations, which covers about a fourth of the country. But as upgrades continues, the company expects coverage to exceed 33% by the end of this year. It will also soon start selling mobile phones with 4G/5G capabilities.
Listing the advantages of 5G networks, the company pointed to considerably higher download and upload speeds and connectivity of a large number of devices, allowing the development of smart industries and smart cities and communities, among other things.
Telekom plans to build the 5G networks in the form of campus networks, a concept allowing multiple virtual networks divided by purpose operating on the same physical infrastructure.
The company also said the setting up of the 5G networks is being conducted in complete compliance with the law, adding that Slovenia's environmental impact legislation was among the strictest in the world.
"The measuring of potential effects on the environment is conducted by independent expert institutions that have been licensed by the Environment Agency. The measurements of the upgraded base stations show that they are safe and far below limit values," Telekom said.
STA, 21 July 2020 - Prime Minister Janez Janša has described decisions on the EU's own resources as one of the biggest achievements of the latest marathon summit of the bloc's leaders. In his view digital tax will likely make the biggest potential own resource of the EU.
Janša made the comments after the summit agreed a pandemic recovery package comprising the bloc's next seven-year budget to the tune of EUR 1.074 trillion and a EUR 750 billion recovery fund, of which EUR 390 billion will be in grants and the rest in loans.
Related: Janša Pleased With Results of EU Budget Talks
To allow the European Commission to borrow in the markets to finance the recovery, the headroom - the difference between the own resources ceiling of the long-term budget and the actual spending - has been temporarily increased by 0.6 percentage points.
This pandemic debt, and grants, will have to be repaid, with EU leaders committing to do so by the end of 2058. The increase in the own resources ceiling will now need to be ratified by the national parliaments.
To make the repayment of that debt easier, EU leaders also committed today to work toward reforming the system of own resources in the coming years by introducing new own resources such as a non-recycled plastic tax, to be introduced next year.
The European Commission will also propose a mechanism to tax carbon-intensive industrial imports from third countries, and a digital levy, plus an overhaul of the emissions trading system to expand it to the aviation and maritime industries.
"The subsidies will have to be repaid. One of the major shifts is those few words about own EU resources, because in seven years' time when we negotiate the next budget this will be the key," Janša said, singling out digital tax as likely the biggest potential own resource.
The coronavirus crisis has substantially increased the profits of digital giants, having accelerated a change in lifestyle, the profits that will at least double over the next five years, Janša said, adding that while profits are being generated everywhere, levies are not collected in the EU. "It's as if cars were being refuelled without any excise duty charged."
Janša also emphasized that no single member state could tackle the digital tax and only the EU was big and strong enough to negotiate a global deal for the benefit of all. "When it comes to big giants even the countries they come from have no serious oversight of the profits that are up to trebling in record time."
The Slovenian prime minister noted that he had talked with OECD Secretary-General Angel Gurria, pointing to the efforts for a deal on digital tax within the Organization for Economic Cooperation and Development.
Janša said taking such decisions was not problematic for the Slovenian parliament. Tax on emissions and plastic would be a problem for the countries that have included the resources in their national tax policies.
Although out of the spotlights, the headway on own EU resources is in Janša's view key from the aspect of agreements on all future financial instruments of the EU.
STA, 19 July 2020 - The financial position of Slovenian households keeps improving since assets growth continues to exceed debt. At the end of the first quarter in 2020, the surplus of assets over debt increased by EUR 2 billion year-on-year to EUR 41.9 billion, show central bank data.
At the end of the first quarter, Slovenia's households had assets of EUR 56.5 billion, up by EUR 2.5 billion year-on-year. Deposits increased by EUR 1.6 billion to EUR 22.9 billion, 90% of them were made at domestic banks and 72% of them were sight deposits.
In the same period, liabilities grew by EUR 427 million to EUR 14.6 billion. Loans, increasing by EUR 483 million, accounted for the bulk of the liabilities (EUR 12.9 billion) and were mostly arranged at banks (85%).
The finances of companies or non-financial corporations improved as well at the end of the first quarter. The deficit of assets over debt decreased by EUR 775 million year-on-year to EUR 38.9 billion.
Companies had assets of EUR 49 billion, a EUR 683 million increase year-on-year. Liabilities meanwhile stood at EUR 87.9 billion.
STA, 15 July 2020 - The average gross earnings in May amounted to EUR 1,892.31, down by 2.3% on April nominally and by 3.2% in real terms. The average net wage was EUR 1,244.44, a 1.7% and 2.6% decrease respectively on April, show data released by the Statistics Office on Wednesday.
Year-on-year, average gross earnings increased, in nominal terms by 9.5% and in real terms by 10.8%. The increase was largely the result of temporary stimulus measures related to the Covid-19 epidemic, which were also in place in April.
Compared to April, average gross earnings in May decreased in both sectors, in the private sector by 2.5% and in the public sector by 2.2%. In the institutional sector general government they decreased by 1.9%.
The highest average gross earnings for May were paid in electricity, gas, steam and air conditioning supply (EUR 2,589.33).
Compared to gross earnings for April, average gross earnings for May increased the most in public administration and defence, compulsory social security (by 7.0%) and decreased the most in accommodation and food service activities (by 8.0%).
If average gross earnings for May were calculated by the number of persons in paid employment on the basis of paid hours and not on the basis of the number of persons in paid employment, they would be higher than gross earnings for April in public administration and defence, compulsory social security by 4.8% and in accommodation and food service activities by 1.0%.
More detailed data can be found here
STA, 14 July 2020 - Home appliances maker Hisense Gorenje will not lay off production workers as initially planned. The company will instead employ soft methods to reduce the workforce, since orders have grown in recent weeks and June was the first profitable month this year.
The latest previous plan was to lay off roughly 300 workers in the production unit Gorenje in the town of Velenje, the group having already let go of 46 employees at the back-office unit Hisense Gorenje Europe in June.
Initially, as many as 830 people were to be laid off in Slovenia.
"Due to the altered operating circumstances, the management of Hisense Gorenje has decided to employ soft methods to improve work efficiency at the production company Gorenje," reads a statement issued on Tuesday.
The increased orders are "good news for the company and its employees" and a result of measures taken to improve operations and adjust to the consequences of the coronavirus pandemic, which has included changing business models, accelerating online sales and cutting costs.
These measures will continue given the unprecedented uncertainty and instability on the market, the company said, confident that the positive trends will continue in the months to come.
The in-house trade union expressed satisfaction today that the management decided to follow its recommendations. Its head Žan Zeba expressed hope that the company would now focus on goals it had set for itself and start showing results "that will benefit all stakeholders".
STA, 10 July 2020 - Slovenia's exports decreased by 6% to EUR 13.2 billion in first five months of the year, while imports fell by 11.5% to EUR 12.5 billion, show Statistics Office data released on Friday. In May, exports were down by 19.8% year-on-year to EUR 2.38 billion and imports by 22.4% to EUR 2.21 billion for an export to import ratio of 107.8%.
Slovenia recorded an external trade surplus in all of the first five months of 2020, the surplus in all five months combined amounting to EUR 726.9 million. In this period, the export to import ratio was 105.8%.
As for May, the office noted that the year-on-year decrease was smaller than in April, when exports were down 28.8% year-on-year and imports by 41.2%.
It said the negative effect of the epidemic on external trade in goods had been reduced somewhat, while adding the significant annual decline in April was also due to exceptionally high value of imports in April last year.
In May the export to import ratio was 107.8%; a surplus of EUR 172.1 million was generated in external trade in goods. The May external trade surplus is the second highest this year and the highest of the four May surpluses recorded after 2010.
Exports to EU member states in May amounted to EUR 1.53 billion (down 29.0% year-on-year) and imports to EUR 1.51 billion (30.7% less).
"Trade with this group of countries grew continuously from October 2016 until the second half of last year, when the effects of economic cooling began to show. The epidemic negatively affected trade with the EU already in March 2020 and even more in April and May," the Statistics Office wrote.
As for trade with countries outside the EU, Slovenia exported goods worth EUR 848 million in May (up 4.5% y/y) and imported goods worth EUR 693.9 million (up 5.0%).
"Since the end of 2018, we have been recording high growth rates of trade with this group of countries, the trend continued in May, however the growth was significantly reduced by the epidemic."
More on this data can be found here
STA, 9 July 2020 - Krka Group sales revenue grew by 6% year on year to EUR 803.8 million in the first half of the year, according to preliminary estimates. Net profit of the pharmaceutical group grew by 15% to EUR 160.3 million, Krka said on Thursday.
Sales of products and services were the highest in east Europe, standing at EUR 271.7 million, up 8% from the first six months in 2019.
Russia, which is Krka's largest individual market, added EUR 180.2 million to the total sales, which is also 8% more than a year ago.
Most other markets in east Europe and central Asia also recorded growth.
In Central Europe, where the group generates 22.8% of sales, sales were up by 8% to EUR 182.7 million. Western Europe follows with EUR 181.6 million, up 7% from the same period last year.
In SE Europe, where 12.9% of total sales are generated, it topped EUR 103.5 million.
Meanwhile, a 15% drop was recorded on the Slovenian market, where sales reached EUR 38.3 million.
The group attributes the drop to a 46% drop in the sales of health and tourism services because of the Covid-19 pandemic. The Slovenian market accounts for 4.8% of total sales.
Krka sold EUR 24 million worth of products overseas, which is 2% less than in the same period last year.
In the January-June period, Krka sold EUR 753.2 million worth of products, of which EUR 691.7 million came from prescription drugs and EUR 61.5 million from over-the-counter drugs. The sale of the former increased by 8% and of the later decreased by 2%.
Earnings before interest and taxes (EBIT) reached EUR 216.7 million, a 40% year-on-year increase, while earnings before income tax, depreciation and amortisation (EBITDA) were up by 30% to EUR 273 million.
Krka registered four new products in the first six months of the year, three prescription drugs and one over-the-counter drug.
The group, which employed 11,658 people at the end of June or 12,751 if agency workers are included, estimates investments in the first six months at EUR 30 million.
The preliminary data was presented by CEO Jože Colarič at today's annual shareholders meeting. Krka also said in a press release published on the web site of the Ljubljana Stock Exchange that this year sales were expected to reach EUR 1.52 billion, while net profit should top EUR 210 million.
The group plans to allocate EUR 134 million for investment, and spend 10% of sales revenue for R&D.
Krka also announced a dividend of EUR 4.25 gross per share this year, EUR 1.05 more than in 2019.
STA, 8 July 2020 - Banka Slovenije has pointed out that the government's corona-crisis stimulus measures are having a marked effect on the labour market and that employment and wage statistics could deteriorate significantly once they are lifted. The central bank added that a deterioration on the labour market was also heralded by surveys conducted among companies.
Banka Slovenije's latest quarterly report, released on Wednesday, also says Slovenia suffered a strong decline in GDP in April, the prospects for the second half of the year are, however, more favourable.
The central bank pointed to a survey by the Statistics Office, which suggests demand will increase substantially in the third quarter, while it simultaneously projected a deterioration of the labour market situation in the second half of the year.
The financial situation of businesses meanwhile remains stable, which Banka Slovenia attributes to ample liquidity reserves, favourable bank financing, labour costs subsidies, the possibility of deferred tax payments, as well as the government's loan guarantees scheme.
On the other hand, the state's fiscal situation has deteriorated significantly. Revenue in the first five months decreased year-on-year by EUR 720 million or 9.2%, while expenditure was up by EUR 874 million or 11.4%.
The state deficit could reach around 8% of GDP this year, whereas public debt could rise to 2015 levels, when it stood at a record 82% of GDP.
STA, 7 July 2020 - National telco Telekom Slovenije signed a contract on Tuesday with Hungarian media company TV2 Media selling Planet TV, its subsidiary which produces the eponymous TV channel. TV2 Media will pay EUR 5 million for the 100% share, Telekom said in a press release. The deal is expected to be finalised by autumn.
Today's development confirms the previous media reports on the sale and the value of the deal.
Telekom's supervisors have already given the green light while all the other approvals are expected by the end of September.
TV2 Media is owned by Jozsef Vida, whom media associate with the business network of the Hungarian ruling party Fidesz. Speculation that TV2 is eyeing Planet TV started in early June, when reports also mentioned Croatian entrepreneur Ivan Ćaleta as a second candidate.
The news portal Necenzurirano.si also reported about unofficial plans to merge Planet TV and Nova24TV, the news portal and website associated with the ruling Slovenian Democratic Party (SDS) and also in the ownership of Hungarian individuals reportedly close to Hungarian Prime Minister Victor Orban.
Telekom launched Planet TV in 2012 under the then SDS-led Janez Janša government. It was reported that the telecoms incumbent had been looking for a strategic partner which would buy a 49% share in the TV production company already at the beginning of January, only to change its mind later on.
According to the newspaper Delo, Planet TV has cost Telekom Slovenije EUR 80 million in the form of capital injections, advertisements, loans and other services since it was launched in September 2012, and has operated in the red.
The latest blow was the Court of Arbitration of the International Chamber of Commerce ordering Telekom last year to pay a EUR 23 million buyout to Antenna Group, the Greek partner who wanted out of the joint venture.
Telekom, which thus became the sole owner of Planet TV, saw the buyout significantly reduce its profit last year, which reached a mere EUR 1.2 million.
After initially announcing the search for a strategic partner, Telekom said in mid-March that selling the outright stake in Planet TV was also an option.
According to Necenzurirano.si, some supervisors expressed great reservations about the sale at today's session. They argued they had been presented only the Hungarian bid, which was picked as the best by the Telekom management and a financial consultant.
Several bids had reportedly arrived, with the second and third best bidders allegedly offering only one euro for the company.
Unlike the other bidders, the Hungarians reportedly received an assurance from Telekom that it would continue to advertise on Planet TV. Telekom reportedly also pledged to turn EUR 30 million in loans into Planet TV's capital before the sale is completed.
Telekom also allegedly plans to write off some EUR 3 million in business claims and contribute another million to help keep Planet TV afloat.
The portal also says that Hungarians could extend the sales procedure until the end of the year, but in that case Telekom would have to transfer another EUR 2 million to cover Planet TV's loss.
All our stories on Slovenia and Hungary are here
STA, 7 July 2020 - The Ljubljana city council has confirmed changes to the municipal spatial plan for a former industrial area in the borough of Vič, where a residential complex is planned to be built. Several councillors have raised the issue of the investors including Mihael Karner, a Slovenian who is wanted by the US.
The council confirmed the project in a 21:15 vote on Monday to transform the site of the former Tovil factory in the south-western borough into a complex featuring 140 apartments, including up to 60 assisted living apartments.
The approximate location of the project
state.gov
The main investor in the Urban Oasis project is entrepreneur Mihael Karner, who is being sought by the Drug Enforcement Administration (DEA) with an international warrant for alleged distribution and import of anabolic steroids and money laundering.
Gregor Slabe of the Democrats said he was convinced that the US services were monitoring today's session and that they would certainly make a record of which councillors had endorsed Karner's project.
"The US is requesting extradition of Karner, his wife and brother. Since you failed to support our proposal to withdraw this disputable item from the agenda, you will be the ones held responsible for international diplomatic consequences," he added.
Igor Horvat (SDS) noted that, according to the media, the investors were companies which had not had any revenue recently, and no employees. He added that the plan's approval might jeopardise Slovenia's international reputation.
There is concern that Ljubljana will only get another construction pit, said Ksenija Sever, also of the SDS. "The investors will get loans, sell apartments, and then vanish, so that taxpayers can pay for another banking hole."
Asta Vrečko of the Left added that the investors were problematic and that the "municipality is doing favours to very disputable companies".
Vice Mayor Aleš Čerin, who chaired the session due to the absence of Mayor Zoran Janković, who is in quarantine after having a contact with a person who tested positive for coronavirus, said that the spatial plan was not about an individual investor, but spatial planning.
"Nowhere is written that the gentlemen you spoke about will be the actual investors", he said, adding that they were Slovenian citizens who had no criminal record in Slovenia.
