Golob sees failed Magna investment as valuable lesson

Commenting during questions and answers time on the March announcement by Magma it was terminating the state-supported project less than four year's after the start of production, Golob said this was the opposite of a success story.

The arrival of Magna in Hoče near Marbior was announced in 2016 by then Prime Minister Miro Cerar and Minister of Economy Zdravko Počivalšek. The government even passed a special law, known as Lex Magna, which among other things enabled expropriation of landowners.

Golob was asked at the outset of the plenary session by Matej T. Vatovec whether the state was preparing an overall assessment of the damage caused by this deal and whether it intended to hold those responsible accountable.

The prime minister said discussions regarding compensation with Magna were still ongoing. "Unfortunately, the clauses regarding contractual penalties are not exactly in favour of the state but rather of the investor," he said.

He sees the investment as a valuable lesson. The automotive industry is one of the most important industries for Europe as a whole and Golob finds supporting its projects is the normal thing to do.

"However, comparing the manner in which the investment in Hoče was executed and our approach to supporting the automotive industry is like comparing night and day," he added.

He believes that it is necessary to support investments by established investors who already have their factories, employees, and knowledge in Slovenia and aim to further develop existing locations. "In that case, we really need to support them without hesitation," he stressed.

"But when someone comes to us who has never been present in Slovenia, and wants to obtain cheap land, infrastructure, and even state funds, then we really need to think three times and preferably decline," he said.

The state must invest in knowledge and help the industry maintain and increase its foothold in global markets, while creating jobs with high added value, he concluded.