Slovenia Capital Ljubljana Currency Tolar (SIT) Population 2.01 million EU status Member GDP $42.01 billion Employment 90.2% Government type Parliamentary democratic republic Religions Catholic 57.8% Orthodox 2.3% other Christian 0.9% Muslim 2.4% unaffiliated 3.5% other or unspecified 23% none 10.1% (2002 census) Languages Slovenian 91.1% Serbo-Croatian 4.5% other or unspecified 4.4% (2002 census) Exports $18.53 billion f.o.b. (2005 est.) Imports $19.62 billion f.o.b. (2005 est.)

Slovenia

One of the most westerly of the new entrants to the EU, Slovenia is described by the OECD as having managed “one of the most successful transitions to nationhood and a market economy in Central and Eastern Europe.” Slovenia is poised for entry into the Euro on 1 January 2007 and is, therefore, ensuring that key economic indicators, including debt levels, interest rates and inflation levels, are within the EU’s Maastricht criteria. As such, it can be viewed as a mature, rather than a maturing, economy, with corresponding levels of stability. Plans for further privatisation of state-owned assets are due for publication in spring 2006, with the EBRD prepared to invest several hundred million Euros in privatisation projects. GDP growth rate in 2005 was at 3.8%.

Slovenia’s attractive capital Ljubljana offers a high standard of living

Advantages

Slovenia considers its main advantages as an investment location to be:

• High-quality workforce with IT and language skills, high levels of productivity;
• Central location with good road, rail and sea links for reaching regional markets;
• High penetration of ICT — Slovenia scores above most other CEE countries on the digitial access index;
• Excellent quality of life.

Investment policy

A programme to attract and support inward FDI was launched in 2000. In 2002, Slovenia signed the OECD Declaration on International Investment and Multinational Enterprises. The Declaration promotes equally favourable treatment for foreign and domestic investors by the host government and promotes a set of voluntary standards of appropriate business conduct for multinational enterprises. In early 2006, the government decided to allocate further support to the FDI sector, “motivated by the fact that the investment projects received in previous applications under the Inward Investment Cost-Sharing Grant Scheme (CSGS) were outstanding,” says the Slovenian Trade and Investment Promotion Office. A new inward investment Cost-Sharing Grant Scheme was set up to administer the fund, and application forms for funding can be found on the investslovenia website. Support is available to projects that create at least 100 new jobs in prosperous areas. This is reduced to 50 new jobs in less developed regions and to 10 new jobs if the investment is in the field of R&D.

Taxation

Discussions on the introduction of a flat tax rate of 20% are underway. This would probably not be introduced until after the changeover to the Euro in 2007.

Investment opportunities

The European Commission recently identified Slovenia’s telecommunications sector as a weak spot where further deregulation — and further competition — was needed. The fixed-line telephone company Telekom Slovenje is a prime subject for privatisation within the next two years, as is the country’s second largest bank, Nov Kreditna Banka Maribor (NKBA). Sectors highlighted by the US commercial service as particularly good prospects for imports and investments from the US include healthcare equipment, environmental equipment, electrical power systems, and computer hardware and software.

Setting up a branch

In order to establish a branch in Slovenia, a foreign company must have been registered for a minimum of two years in its home country.

 

Facts in brief

Kozjak waterfall near Kobarid

Slovenia’s location is Central Europe, eastern Alps bordering the Adriatic Sea, between Austria and Croatia. Despite its small size, this eastern Alpine country controls some of Europe’s major transit routes

Its climate is a Mediterranean climate on the coast, continental climate with mild to hot summers and cold winters in the plateaus and valleys to the east

Natural resources include lignite coal, lead, zinc, mercury, uranium, silver, hydropower, forests

Agricultural products are potatoes, hops, wheat, sugar beets, corn, grapes; cattle, sheep, poultry

Industries include ferrous metallurgy and aluminium products, lead and zinc smelting; electronics (including military electronics), trucks, electric power equipment, wood products, textiles, chemicals, machine tools Slovenia’s legal system is based on a civil law system

Diplomatic representation in the US — Chief of mission: Ambassador Davorin Kracun

Diplomatic representation from the US — Chief of mission: Ambassador Thomas B Robertson

 

Contact Information

American Chamber of Commerce in Slovenia
Pod Hribom 55
SL-1000 Ljubljana
Slovenia
Tel: +386 1581 6285
E-mail: office@amcham.si
Website: www.amcham.si

Useful websites

ljubljana.usembassy.gov	US Embassy in Slovenia
www.investslovenia.org	Government investment advice
www.sloveniapartner.com	Business news, investment oportunities, business partner search facility
www.bsi.si	Bank of Slovenia
www.gov.si/zmar	Institute of Macroeconomic Analysis & Development
www.stat.si	Institute of Statistics
www.rtd.si/eng	Research and technology development

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