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Slovenia Weekly

Improving economic situation also by fighting grey economy

05.12.2014

Editorial

The government will introduce new measures to intensify campaign countering grey economy. Photo: Mostphotos
“Only a successful economy will enable a society to develop,” said the new Minister of Economy. Zdravko Počivalšek, who announced that he would seek to improve the competitiveness of the Slovenian economy and, consequently, achieve higher added value and the creation of new jobs. His goals include promoting exports and increasing foreign direct investments, establishing a support environment and better conditions for business operations, as he believes “that we should reverse the negative trend of recent years”.

Important government decisions that will improve the economy include a new package of measures aimed at fighting the grey economy. One of the main measures is the introduction of certified cash registers, which the government will expand to all companies. In the area of fighting grey economy, Slovenia has already achieved some results, and the government will only intensify the campaign with new measures, as, according to the PM Miro Cerar, the grey economy is not only an economic but a social phenomenon which is bad for everyone. The new minister of the economy also believes that the greatest guarantee of better financial discipline is the rule of law. Amendments to the Companies Act, which seek to prevent unfair business practices, will eliminate the sequencing system and setting up of additional companies as vehicles for sell-offs.

The effective management of public finances and long-term and sustainable economic development are also significantly connected to the Act on the Fiscal Rule, which seeks to improve financial discipline and limit medium-term borrowing for current expenditure. Approval of the legal proposal will fulfil the commitments stipulated in the Constitution, according to which revenues and expenditure should be balanced in the medium term, or there must be a surplus of revenue.

A positive sign – along with the warning that we should not stop now – also came from Brussels at the end of last week. At this moment, Slovenia is among the countries with the highest economic growth. In order to maintain this trend in the future, Minister Židan believes that we need stability both in politics and social system. The agreement between the Government and public sector trade unions on austerity measures for next year that was concluded in the past week will contribute significantly to the consolidation of public finances.

Fighting grey economy with certified cash registers and preventing the sequencing of companies

PM Cerar: By fighting grey economy we seek to continue to a better economic situation. Photo: STA
“By fighting grey economy, which presents between 8.5 and 12.2 per cent of Slovenia’s GDP, we seek to continue to a better economic situation in Slovenia,” said the Slovenian Prime Minister Miro Cerar at the press conference following the government session where new measures on fighting grey economy were approved.

Minister Dejan Židan, responsible for coordinating the activities of the Fighting Grey Economy project highlighted two in particular: introduction of certified cash registers and amendments to the Company Act, which seek to prevent unfair practices, particularly the sequencing of companies.

While about a year ago, Slovenia introduced so-called virtual certified cash registers, it is now extending the use of certified cash registers to all companies operating in all sectors. This will extend the taxable basis, as the entire annual turnover will be registered, and improve the transparency of business transactions. The certified registers will be connected with a central information system of the Financial Administration, and data will be updated in real time. Recording transactions or issuing invoices by hand will be permitted only exceptionally (field work, power failure, etc.). Certified cash registers will be used as of 1 September 2015 after a transitional period of 3 or 4 months. At the same time, the government will promote the issuing of invoices. more...

Draft Act on Fiscal Rule referred to the parliament

At today’s regular session, the government approved the text of the draft Fiscal Rule Act that defines the rule seeking to improve budgetary discipline, restrict medium-term borrowing for current spending and thereby ensure long-term sustainability of public finance. The draft act incorporates the European fiscal compact and implements Article 148 of the Constitution, which, according to the finance minister Mramor, is stricter than European legislation. more...

The new economy minister seeks to improve the competitiveness of the Slovenian economy

“Only a successful economy will enable a society to develop,” said the new Minister of Economy. Zdravko Počivalšek, who comes from the business sector, said that he would seek to improve the competitiveness of the Slovenian economy and, consequently, a higher added value and new jobs. His goals include promoting exports and foreign direct investments. With regard to the privatisation of companies owned by the state, he said that while privatisation should continue, it should be well conceived and strategic. more...

At NATO meeting, Slovenia reiterates its support to the decisions taken in Wales

On Tuesday, the foreign ministers of NATO members, including the Slovenian FM Karl Erjavec, met in Brussels for the first time since the September Wales Summit to confirm political support for Ukraine in its dealings with Russia, and underlined the security assurances to Eastern members. They also approved the new Resolute Support Mission in Afghanistan, which will begin in the new year. more...

Slovenia active in efforts to stabilise the situation in Iraq and Syria

Minister Erjavec participated in the meeting of representatives of 59 states and international organisations participating in efforts to stabilise the situation in Iraq and Syria, which focused on the fight against terrorism, violent extremism and radicalisation on the part of the Islamic State in Iraq and the Levant (ISIL). The participants exchanged views on this issue, and agreed that the global campaign against ISIL has yielded first positive results. more...

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