News roundup - Thursday, 21 November

Slovenia extends checks at its border with Croatia, Hungary

LJUBLJANA - The government got acquainted with the reasons for an extension of the checks at the internal Schengen borders with Croatia and Hungary, which are in place until 21 December. The measure will be extended by another six months, because of the increased terrorism threat, the government said after today's meeting. The police will carry out controls at border crossing points in a way that will have a minimal impact on the flow of passengers, the environment and business, and in particular on the lives of the people living in border regions, UKOM said.

Fajon expresses interest for strengthening cooperation with UK

LONDON, UK - Foreign Minister Tanja Fajon held talks with her British counterpart David Lammy, expressing Slovenia's interest in further strengthening bilateral cooperation with the UK. The pair also discussed international issues, especially the situation in Ukraine, the Middle East, and the Western Balkans, the Foreign Ministry said. "Our countries share democratic values and have similar views on many international challenges. This is particularly evident in the UN Security Council, where we have excellent cooperation," Fajon said.

Eleventh-hour deal reached to avert postal strike

MARIBOR/KOPER - Pošta Slovenije and the company's two unions announced they have reached an agreement to avert a strike planned to begin on Friday, the start of the holiday shopping season. Most of their demands were met, notably accelerated hiring to fill staffing gaps, adjustments to make sure workload is more evenly distributed, and investments in better vehicles and equipment. The unions warn these deal only with the most pressing issues, while much larger problems still remain, most notably inadequate financing of universal postal services, which will require long-term solutions.

IMF applauds public sector wage reform, minister Boštjančič says

LJUBLJANA - Finance Minister Klemen Boštjančič told the press that the wrapped up public sector wage reform has been met with praise from representatives of the International Monetary Fund (IMF), who were in Slovenia on a routine interim mission. He said they described it as a "typical example of a serious long-term reform". The reform, gradually raising salaries and securing adjustment for inflation, is estimated to cost approximately EUR 350 million annually over the next four years. However, Boštjančič said that wage costs would have risen under the old system as well, albeit differently.

Ex-President Türk says ICC arrest warrants show strength of intl criminal law

LJUBLJANA - The arrest warrants issued by the International Criminal Court (ICC) for Israeli President Benjamin Netanyahu and Former Defence Minister Yoav Gallant, as well as Hamas military chief Muhammad Deif are an important decision that shows the life force of international criminal law, former Slovenian President Danilo Türk told the STA. "We know the wheels of the legal system turn slowly but it is crucial that they turn reliably and fairly," said Türk, an expert on international law.

Conference calls for stronger cooperation with Latin America, Caribbean

LJUBLJANA - Slovenia shares values and views with countries of Latin America and the Caribbean on how the world should be shaped, said Foreign Ministry State Secretary Marko Štucin at the Day of Latin America and the Caribbean conference, organised by the Foreign Ministry and the Bled Strategic Forum. Slovenia, as well as the countries of Latin America and the Caribbean prioritise the rule of law and the role of international institutions, said Štucin. Slovenia is working on many projects with those countries; one such project is the work of the Nova Gorica University on a telescope in Chile, he said.

Slovenia's outgoing EU commissioner stresses need for solidarity

BRUSSELS, Belgium - The EU has to keep strengthening solidarity between member states and the rest of the world even in light of more right-leaning composition of its institutions, Slovenia's outgoing European Commissioner for Crisis Management Janez Lenarčič told the STA. Solidarity means both humanitarian aid and civil protection, he said, expressing hope that the European Commission will not mean that developmental and humanitarian aid will receive less attention. "Europe is not an island," he stressed.

Government moves to establish STEP platform in Slovenia

LJUBLJANA - The government issued the decree on the implementation of the EU regulation on the establishment of the Strategic Technologies for Europe Platform (STEP), by which the EU wants to eliminate the strategic dependencies of the European economy and take a leading role in the development of advanced technologies. The STEP platform aims to support European industries to accelerate investment in strategic technologies in Europe by creating and directing incentives through eleven EU programmes to three key investment target areas.

Marko Lovše named new Defence Ministry state secretary

LJUBLJANA - The government appointed Marko Lovše as state secretary at the Defence Ministry after he has served as the ministry's secretary general. He will join on Friday Damir Črnčec, the other state secretary, who also served under the previous defence minister. Apart from Črnčec, previous Minister Marjan Šarec, who is now a member of the European Parliament, had another state secretary, Rudi Medved.

Upper chamber vetoes changes to personal income tax, VAT laws

LJUBLJANA - The upper chamber of parliament endorsed suspensive vetoes on the recently passed changes to the Personal Income Tax Act and the Value Added Tax Act. It argued against changes to the flat tax rate system, incentive for the hiring of foreign skilled staff and higher taxation of sugary drinks. To override the vetoes, the National Assembly, the lower chamber of parliament, will have to garner an absolute majority of 46 votes in the 90-member body. The changes to the two acts are part of a broader tax reform that is scheduled to enter into force on 1 January 2025.

Tax authority employees end strike

LJUBLJANA - Employees at the Financial Administration (FURS) signed a strike agreement with the government, ending the strike that started in May 2023. Among their striking demands were pay rises for all FURS employees. The union is also calling for a 4% bonus to their gross pay because of the legal stipulation that FURS employees cannot engage in activities incompatible with the tasks of FURS and activities that would constitute a conflict of interests. Negotiations on this will take place next year, Pečnik said.

Kumer, NGOs say COP29 draft documents disappointment

BAKU, Azerbaijan - Environment, Climate and Energy Minister Bojan Kumer told the press on the sidelines of the UN Climate Change Conference (COP29) that in the opinion of the EU, the entire package of the first drafts of final documents is unsatisfactory and a huge disappointment. He is optimistic that some progress will be made, though. Slovenian environmental NGOs are also concerned by the draft documents, saying they lack ambition as they contain no specific financial goal.

Port operator Luka Koper's nine-month net profit up 4% to EUR 49.3 million

KOPER - Luka Koper, the operator of Slovenia's sole commercial port, reported EUR 242.8 million in net sales revenue for the first nine months, a 4% increase compared to the same period in 2023 and in line with its business plan. Net profit also grew 4% year-on-year to EUR 49.3 million, exceeding projections by 25%. Cargo throughput reached 17.2 million tonnes, 2% higher than in the same period last year and 1% above planned levels, according to the unaudited financial report.

Hungarian exec Andras Hamori named chairman of OTP Banka

MARIBOR - The supervisory board of OTP Banka has selected Andras Hamori as the new chairman of the bank, which emerged this year with the merger of NKBM and SKB Banka and is part of the Hungarian banking group OTP. Hamori will succeed John Denhof, whose term expires at the end of the year. He will expectedly join the bank in May 2025. Before he receives regulatory clearance from the ECB, he will act as procurator. Hamori has most recently been head of retail banking at ING Bank Australia. Prior to that he was a board member and CEO of ING Austria, Sberbank Europe, ZUNO Bank, Raiffeisen Bank International, and GE Money.

Pay reform to cost public health insurer EUR 141m more next year

LJUBLJANA - The public sector pay reform will push up the expenditure of the public health insurance operator ZZZS, which expects to see its cost rise by EUR 141 million next year and will require at least EUR 46 million in additional budget funds. It expects to feel the brunt of the new burden in 2026. The estimate by the Health Ministry is slightly more conservative, at EUR 132 million. Asked how community healthcare centres and hospitals were meant to cover the cost, the ministry told the STA that prices of services would increase.

Consumers less optimistic in November

LJUBLJANA - Consumer confidence in Slovenia deteriorated by one percentage point in November from October to end six percentage points below the long-term average, shows the latest Statistics Office data. Pushing the index down the most this month was consumer expectations about major purchases (-4pp) and views on current household finances (-1pp). Consumers are however slightly more optimistic than a year ago.

Slovenia joins Clean Hydrogen Partnership

BRUSSELS, Belgium - As Slovenia has signed a cooperation memorandum for the EU Clean Hydrogen Partnership, the Spatial Planning, Climate and Energy Ministry said that this would contribute to the project North Adriatic Hydrogen Valley as well as in terms of renewable targets. "We want to further our capacities and knowledge exchange for a more effective development and introduction of hydrogen technologies in Slovenia," Tina Seršen, a state secretary at the ministry, said after signing the document.

Slovenian Impressionist art on show in immersive exhibition

LJUBLJANA - An immersive exhibition based on paintings by Slovenia's leading representatives of Impressionism has been put on display in the largest hall of Ljubljana Castle. A three-dimensional video projection running daily until 26 October next year features the famous paintings by Rihard Jakopič, Ivan Grohar, Matija Jama and Matej Sternen. The 15-minute projection takes the visitor through 16 of their works such as the Sower, the Red Parasol, Bathers and the Circle Dance.