Business, December 2012

Foreign Investments and Tourism - Interest for investments in Slovenia

In January 2013, the Slovenian Agency for Entrepreneurship, Innovation, Development, Investment and Tourism, or SPIRIT Slovenia, merging the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI) , the Slovenian Tourist Board (STO)  and the Slovenian Technology Agency (TIA) , will start to operate. According to plans, the agency will aim to invite foreign investments, offer services to foreign direct investors helping them from the beginning of their investment to the issue of building permits, promote Slovenia as a tourist destination, develop entrepreneurship, and promote innovation, technological development and internationalisation of enterprises, while tenders will be dealt with at the umbrella ministry responsible for the economy.

Despite the fact that all three agencies have already been cooperating, the activities of Spirit may be more effective and at the same time more rational, and this consequently should reduce operational costs and thus cut less deeply into the funds for tasks and activities. There are many of these, and the agencies are aware of deficiencies and weaknesses in the Slovenian business environment and are taking an active approach to eliminate them. 

The competitive advantages of Slovenia should not only be its geostrategic position, quality of life and the reliability, knowledge and innovation of its labour force, as emphasised by this year’s best foreign investors in Slovenia, but also the labour code and simpler administrative procedures. This year’s chosen enterprises for best foreign investors, Boxmark, Belimed, Yaskawa and IBM, are achieving visible and enviable results despite deficiencies and weaknesses in the Slovenian business environment. 

Energy - South Stream Slovenia

Photo: STA

During the visit of Slovenian Prime Minister Janez Janša to his colleague Dmitry Medvedev in Moscow on 15 November, the President of the Russian gas giant Gazprom, Alexander Miller, the Director of Plinovodi, Marjan Eberlinc, and the Deputy Director of Plinovodi, Sara Izernik, signed the final investment decision of shareholders of the company South Stream Slovenia, representing the final approval of construction of the Slovenian section of the South Stream gas pipeline.

This is a very important strategic project for Slovenia, which, in the field of energy, means the diversification of sources and routes, increased gas supply security and greater competitiveness. Furthermore, the project will have indirect effects including investment activities that may follow. The Russian investors entrusted the majority of technical and operational work to Geoplin for the purpose of carrying out the joint enterprise. Additionally, Gazprom signed a shareholders’ agreement on setting up the joint enterprise South Stream Telekom with the company Comita. Slovenia will also benefit from the transit. 

The activities for the construction of the South Stream gas pipeline across Slovenia are already underway, while construction itself will commence after obtaining appropriate permits, probably not before 2014 or 2015. 

The route of the South Stream gas pipeline in Slovenia was examined and determined in certain alternatives in the feasibility study, which was elaborated in compliance with the interstate agreement by partners participating in the project, the companies Plinovodi and Gazprom, at the end of 2010.

The gas pipeline will actually be located in the area in the procedure of developing national spatial plans by using, as a rule, the existing energy infrastructure corridors everywhere where this is possible. In implementing the project, the investor’s priority will be given to environmentally friendly construction and operation of the gas pipeline, maintenance of habitats and economic efficiency.

The grey economy - Tax and customs administrations will merge on 1 July 2013

Photo: STA

Within the Government’s endeavours to restructure and rationalise certain public services whose aim is, inter alia, to increase the efficient functioning of the public sector, it is proposed that the Tax Administration of the Republic of Slovenia (TARS) and the Financial Administration of the Republic of Slovenia should merge as the Financial Administration of the Republic of Slovenia. The time-limit for the merger is 1 July 2013 and is connected with Croatia's accession to the EU, which will reduce the scope of certain tasks.

The new body will also help reduce the grey economy. Among the measures being taken in this area, two novelties are introduced, namely announcement of tax debtors and improvement of the efficiency of labour inspection. The announcement of tax debtors should encourage regular payment of tax liabilities, while the efficiency of labour inspection should be provided by an established joint mobile unit aimed at strengthening the prosecution of the most serious tax evasions or undeclared works in the field.

Other planned measures in combating the grey economy are the institute for securing tax debt and flat-rate taxation of small business owners and sole proprietors. The changes should result in simplification of administration and thus easier compliance with tax liabilities.

Text by Nataša Bušljeta, Sinfo, December 2012 

Photo: STA