Business
STA, 12 January 2020 - Representatives of the hospitality industry have warned that the industry is one of the most affected by the Covid-19 epidemic, and that the government's aid measures do not suffice. They want special treatment in the next legislative stimulus package and a special emergency law that would fully cover wage costs and fixed costs.
Blaž Cvar, head of the Tourism and Catering Section of the Chamber of Craft and Small Business, said in Tuesday's statement that the second Covid-19 wave was much more severe and longer and that the hospitality industry required special treatment.
According to Cvar, the number of unemployed persons in the industry increased by 30% in the last three months, while more than 3,000 establishments closed their doors last year. This requires a special emergency law to be passed.
Together with related associations, the section would like to see such law determine measures in the case that the crisis persists, and an exit strategy, as a significant drop in turnover is expected in the first months after reopening.
Cvar also thinks that the government should start gradually relaxing restrictive measures, including in hospitality, which in the initial phase would mean being allowed to serve meals and drinks outdoors.
In the next legislative stimulus package, the section would like to see loss of turnover to be covered by the government.
It proposes that for each month as of January 2021, establishments receive 70% of the amount of monthly revenue recorded in 2019, the last year when the hospitality industry operated normally.
The section also wants that the current measure of subsidised furlough be extended, and that the state subsidises wages fully, as employers are not able to cover a full gross wage as they have no revenue at all.
It furthermore also wants that universal basic income, like in the spring, is fully covered by the state - EUR 700 plus contributions in full. Otherwise, many employees will not be able to cover basic expenses.
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STA, 9 January 2020 - The government has drafted mining act changes, under which high-volume fracking would be prohibited in Slovenia. The changes also lay down conditions for low-volume fracking. This comes after several unsuccessful attempts by opposition parties to ban fracking altogether.
The changes draw the limit between low-volume and high-volume fracking at 1,000 cubic metres of water per fracking phase or 10,000 cubic meters per entire fracking procedure.
While high-volume fracking would be banned, low-volume fracking would be allowed under several conditions, including that all ingredients in the fracking fluid and proppants must be known and approved for use in Slovenia.
Moreover, there can be no surface outflow of pollutants and they must not pollute the soil, water or air. Pollutants on the surface must be handled according to relevant rules, and must not contaminate underground water.
What is more, fracking must not come into contact with an aquifer and must not cause damage to other activities near the drilling wells.
Answering a question from the opposition earlier this week, Infrastructure Minister Jernej Vrtovec said that the changes "are substantially more restrictive than the provisions proposed by the European Commission," because the latter does not find low-volume fracking dangerous and does not regulate it.
"The technological method, just like any dangerous technological in the industry, will be safe for the people, the environment and nature," Vrtovec said in written answer to SocDems MP Dejan Židan.
The changes were put up for public consultation by the Infrastructure Ministry two weeks ago and stakeholders have until 22 January to comment.
The British company Ascent has been trying for years to get approval for fracking in Petišovci, NE, while left-leaning parties have attempted to get fracking banned three times.
STA, 6 January 2020 - The government has extended the shutdown of non-essential shops and services by another week until 13 January. Several existing exceptions will continue to apply, including for hair salons.
According to a release issued last night by the Government Communication Office, the exceptions to the ban include shops selling mainly groceries, personal care and cleaning items.
Those shops are not allowed to sell footwear or clothing, though.
Also allowed to stay open are pharmacies, stores selling medical and orthopaedic equipment, farming shops, petrol stations, financial services, post offices and delivery services.
Produce markets will continue to be open and farms will still be able to sell their produce to consumers.
Also remaining open are newsagents and hair salons, among several other exceptions.
Individual non-medical counselling and therapeutic services will continue to be available.
It will still be possible to pick up goods or food at pick-up points except for alcoholic beverages between 6am and 9pm. Consuming the food in public spaces is not allowed.
Other essential services needed to ensure safety and health are also permitted.
The ban on the sale of pyrotechnics remains in force, mainly to prevent injuries that would require medical attention.
Existing restrictions and precautionary measures continue to apply, including the one limiting the number of customers inside the establishments to one per 30 square metres or a single customer if the premises are smaller. In open-air markets one customer per ten square metres is allowed.
STA, 5 January 2020 - NLB, the largest bank in Slovenia, will phase in fees for combined deposits by physical persons of over EUR 250,000 as of April. The monthly fee will amount to 0.04% and will be first charged in May, the bank said in a press release on Tuesday.
The bank will add up the amounts on personal accounts and other accounts, including deposits, held by individuals in NLB, and charge the fee if the combined amount in a certain month exceeds EUR 250,000.
This means that if a client holds EUR 50,000 above the EUR 250,000 threshold for an entire month, he or she will pay a EUR 20 fee, the bank said.
The fee is expected to affect a small number of clients at NLB - some 100 from the network and slightly more from private banking. According to the business newspaper Finance, around 300 clients are expected to pay the fee.
The fee has been recently announced by NLB management board chairman Blaž Brodnjak, who has told the newspaper Delo that deposit fees had already been introduced in the majority of eurozone countries, most of which opted for the EUR 100,000 threshold.
"Fact is that the loan-to-deposit ratio in Slovenia is very unfavourable and deteriorating fast. This means that the volume of deposits compared to loans is higher than in comparable countries," Brodnjak has said.
Due to the lockdown and extensive stimulus measures, deposits have been rising even faster since people have nowhere to spend the money. Household bank deposits have thus already reached EUR 22 billion.
STA, 5 January 2020 - Slovenia has issued a new ten-year bond to the tune of EUR 1.75 billion and extended the existing 30-year bond issue by another EUR 250 million, the newspaper Finance has reported, adding that the coupon rate for the 10-year bond is negative for the first time ever.
The news follows an announcement by the Finance Ministry on Monday that it had commissioned the banks Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank, HSBC and NKBM to manage the issue of a new bond due in 2031 and the increase of the bond due in 2050.
Finance cites Bloomberg in reporting that demand for the ten-year bond exceeded EUR 10.6 billion and the coupon rate was 17 basis points above the mean value of the 10-year swap rate of -0.27%, which means the borrowing comes at a negative coupon rate.
Slovenia also issued an additional EUR 250 million in existing 30-year bonds with a maturity due in 2050. The demand exceeded EUR 250 million. The coupon rate was 40 basis points above the median value of the 30-year swap rate of -0.02%. This means the sovereign borrowed at an interest rate of 0.38%, according to Finance.
Slovenia most recently tapped into international financial markets in October 2020. Finance at the time reported that the treasury took out roughly EUR 6 billion in fresh borrowing through various new and expanded bonds, not including treasury bills.
The bulk of the borrowing was needed to finance relief and stimulus measures amid the Covid-19 pandemic.
To implement this year's state budget, the country would need to borrow EUR 5.67 billion, under the budget financing programme adopted by the government last month.
Public debt would thus increase to EUR 36.62 billion, or 75% of the country's GDP.
STA, 5 January 2020 - The sales of new cars in Slovenia dropped by more than a quarter in 2020 over 2019. Just under 53,700 cars were registered anew last year, a drop of 26.6% compared to the year before, data from the Chamber of Commerce show.
Volkswagen sold the most cars in Slovenia last year, 8,644, followed closely by Renault (8,391) and Škoda (5,577). The three car makers together hold a 42% market share.
In terms of car models, Renault Clio was by far the most popular (3,870), followed by Škoda Octavia (1,838) and Renault Captur (1,711).
The sales started lagging behind the 2019 figure already at the beginning of the year but then took a nosedive in March, as Slovenia imposed the first coronavirus lockdown.
Car salons closed in mid-March, with car sales dropping 62.5% year-on-year, while in April they remained closed the entire month and the sales plummeted by 71.4% to 1,846.
In May car salons were allowed to reopen and the number of cars sold jumped to over 5,000. The numbers started to drop again in autumn, as Slovenia went into lockdown once again.
The sales of vans dropped even more, by 28% compared to 2019. The makers Ford, Renault and Volkswagen remain the most popular among van buyers.
STA, 4 January 2020 - The Ajdovščina municipality in western Slovenia has set up the first community solar array for local electricity supply. Seven households are involved.
The pilot project by energy group Gen-I and the municipality uses the roof of a public facility, a primary school in the village of Budanje, to supply electricity to seven buildings.
"This is the first such community project. It allows people to come up with their own solar plant, not on their roofs, which perhaps they don't even have, but on the roof of a public facility," Gen-I director Robert Golob told the STA.
The company funded and implemented the project. Local residents were then offered to lease the solar modules from Gen-I.
"Today, the solar plant is rented out in its entirety to seven families, who will get their electricity at a significantly lower price for ten years compared to what they have been paying so far," Golob added.
The 55.68kW solar array is expected to generate more than 58,000 kWh of electricity per year.
Another solar plant is planned on the roof of the Ajdovščina community health centre, the municipality told the STA. The project will bring together a larger community, up to 30 users.
Gen-I has been discussing such community endeavours with a number of municipalities. The Ajdovščina project is a milestone that could serve as a model. According to Golob, there are a lot of roofs on public buildings in Slovenia that could be used this way.
For a long time it was only possible for individual households to build solar arrays, but a government decree adopted in mid-2019 made it possible to implement such community projects.
STA, 4 January 2020 - A number of large companies have started their operations on Monday by testing their employees for coronavirus. Some are performing tests in-house, others are referring workers to health centres, where rapid tests are available throughout the country as of today.
The Slovenjska Bistrica-based aluminium producer Impol has so far tested nearly 760 staff at its headquarters, with just three coming back positive. Impol employs some 1,400 people in Slovenia.
The company said that in the future, rapid testing would be used in individual company units if a positive case is detected. So far, 231 employees have recovered from the virus across the entire group.
TBP, the Lenart-based producer of push-pull bowden cables and plastics, has reserved at the local health centre several time slots when its employees can get tested this week.
The company, which employs some 1,000 people in a region with high Covid-19 incidence, expects the number of infections to increase following the holidays.
Hydro plant operator Dravske Elektrarne Maribor (DEM) started sending its employees for rapid tests in health centres in the previous days. So far none has tested positive. Since the start of the epidemic, 30 of its 240 employees have recovered, while there are currently six active infections.
Ice-cream maker Incom has launched in-house testing which will also be available to employees of other companies, the head of the Ajdovščina civil protection Igor Benko told the STA on Monday.
Cement manufacturer Salonit Anhovo will be testing its staff until Wednesday. First up were production employees and maintenance personnel.
The state-owned power utility Holding Slovenske Elektrarne (HSE) said it has been providing rapid tests since mid-December. Rapid tests are now also available to employees of drug maker Krka.
Adria Mobil, the caravan maker, said more than 1,000 of its employees were tested this morning, this includes the entire morning shift and management. A ten-member team will also test the afternoon shift. So far, 19 people have tested positive.
Container maker Arcont, based in Gornja Radgona, said it would launch testing for employees on Tuesday, while Varis, the Lendava-based maker of prefabricated bathrooms, said it tested all of its 250 employees this morning, with only one testing positive. The company is also testing all others who want to enter its premises.
STA, 1 January 2020 - The statutory minimum wage is scheduled to increase in January under legislation passed in 2018. A new formula tying the minimum wage to cost of living will be used. Preliminary calculations show it will stand at roughly EUR 736 net.
Under the law, the minimum wage must be at least 20% and up to 40% higher than the minimum cost of living. The last time the minimum cost of living was calculated, in 2017, it stood at EUR 613 for a single person.
The Ministry of Labour, the Family, Social Affairs and Equal Opportunities has said the minimum wage will be set by the minister following consultations with social partner. It will be published in the Official Gazette on 31 January at the latest.
Slovenia introduced the minimum wage 25 years ago and it has been significantly increased several times since, most recently in 2019, when it stood at EUR 887 gross, and in 2020, when it rose to EUR 941 gross.
Employers have been warning for a while that some companies will not be able to absorb the higher wage and have asked the government to defer the scheduled increase. Trade unions have been fiercely opposed to the idea.
As a compromise, the government recently proposed that the new formula be postponed until April, whereby the state would pay for the increase through September.
Both employers and trade unions opposed this and the proposal, which was due to be included in the latest economic stimulus law, was shelved.
Sonja Šmuc, the director general of the Chamber of Commerce and Industry (GZS), said earlier this week that businesses would continue to push for a suspension of the increase and expected the government to cover the increase despite its compromise solution having been rejected.
She said that if the minimum wage did increase, "the price will be very high, in particular in the form of an increased number of jobless and the loss of quite a few companies in certain industries".
Šmuc has information some companies are preparing to relocate abroad because of the higher minimum wage. "We'll insist that a solution be found before January pay is due."
STA, 30 December 2020 - The latest economic stimulus law, passed by the National Assembly on Tuesday, brings a series of income support transfers for groups including employees, pensioners, students and families.
EMPLOYEES
Employees with monthly wages below twice the minimum wage will get EUR 200 from their employers on their pay checks for December. The employers will be reimbursed by the Financial Administration.
Employees at public health care and social care institutions are eligible for a 30% increase in hourly pay if they work directly with Covid-19 patients. Those working the most high-risk jobs will see their hourly pay increase by 65%. The increase is valid through the end of the year.
CHILDREN
Parents or guardians of children up to the age of 18 with permanent or temporary residence in Slovenia will get EUR 50 per child. Those who already receive child allowance will get the money automatically, those who do not have to submit an application with the Ministry of Labour, the Family and Social Affairs.
The existing allowance for the care of special-needs children will increase by EUR 100 per month effective from 18 October until the end of the epidemic.
The existing annual allowance for large families increases by EUR 100-200 depending on family size, payable until the end of the epidemic.
Babies born between 1 January this year and one year after the end of the epidemic will get a one-off allowance of EUR 500.
STUDENTS
Students with permanent residence in Slovenia will get a one-off transfer of EUR 150 EUR by 31 January.
PENSIONERS
Pensioners with permanent residence in Slovenia will get a one-off allowance of EUR 130-300. Those receiving pensions up to EUR 714 per month are eligible and the transfer will be carried out on 15 January.
FARMERS
Farmers over 65 whose taxable income was below EUR 591.2 per month in 2019 will get a one-off income support of EUR 150 that they have to apply for at the Agriculture Ministry.
UNEMPLOYED
The unemployed who were terminated or had their fixed-term contracts run out since 18 October will get a temporary cash benefit of almost EUR 514 per month until the end of the epidemic.
RELIGIOUS WORKERS
The employees of registered churches who were enrolled in pension insurance on 1 October will get a basic monthly income of EUR 700 for the last three months of this year.
BORROWERS
An extension of the option for both individuals and companies to request a deferral of liabilities stemming from credit agreements. Under a previous stimulus law, the deferral was in effect until 31 January next year, now creditors can ask for a nine-month deferral; their applications are due by 26 February.
COVERAGE OF FIXED COSTS
The previous stimulus package brought the coverage of fixed costs for companies whose sales dropped by at least 30%. The latest law doubles the compensation to EUR 2,000 per employee for companies whose income declined by more than 70%.
STA, 24 December 2020 - The government has extended by another three months most measures aimed at helping businesses, farmers and employees bridge the crisis. The measures that would have expired at the end of the year will thus be in place until the end of March.
The proposal for the extension of measures from the fifth and sixth stimulus packages had come from the Ministry of Economic Development and Technology, which proposed a six-month extension given that the epidemic is not over yet and that certain activities and services are still banned.
One of the measures that are being extended is the monthly basic income in the amount of EUR 1,100 for the self-employed who cannot work because of the epidemic. The measure was introduced with the fifth stimulus package.
Sole proprietors and freelancers will continue to be eligible for the income if they have been working at least since 1 September and if their revenue in 2020 is 20% lower than last year.
A similar aid will also go to farmers and sole shareholders, while religious workers are to get a basic income of EUR 700, plus their social security contributions covered by the state when the seventh package is passed next week.
Those whose business is affected because of quarantine or childcare will also get partial compensation; EUR 250-750 a month if they do not receive the basic income.
Subsidies for workers in quarantine or in case of force majeure will also remain in place.
The government also extended at yesterday's session the measure of partial covering of fixed monthly costs to companies, self-employed with at least one employee and shareholders whose revenue dropped by at least 30% in the final quarter year-on-year.
The ministry assessed a six-month extension of the measures would cost the state EUR 1.2 billion, so a three-month extension is probably worth about half as much.
Last week, the subsidised reduced working hours scheme that was introduced in June was extended until June 2021. The furlough scheme will meanwhile expire at the end of January 2021.
