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Slovenia Weekly

Indicators for Slovenia turn upwards

07.11.2014

Editorial

Stone by stone towards growth. Photo: Mostphotos
The Commission’s autumn forecast for Slovenia is very favourable, as it is even better than the current government projections. The forecast for Slovenia, which exited the recession in 2013, is 2.4 growth, yet due to Slovenia’s exposure to the international situation and the aggravated conditions on foreign export markets, the government is well aware that Europe's recovery compared to other developed economies is weak, as the situation has not been improving fast enough.

The government shares the opinion of the Institute of Macroeconomic Analysis and Development that in order to maintain the positive trend in the domestic environment, with existing signs of recovery, the commitment to implement structural reforms and fiscal consolidation is crucial. Business representatives also call for comprehensive reforms in order to promote long-term economic success. The government is aware of its responsibility. Optimistic projections from Brussels provide a significant incentive for the future.

Without the integration of the old continent, Europe and Slovenia would have no economic opportunities. The fall of the Berlin Wall on 9 November 25 years ago paved the way to a better common European future and gave the old continent an opportunity to come together democratically in diversity and respond to the challenges of contemporary times. On his recent visit to the Wall, the PM Miro Cerar wrote in the commemorative visitors’ book: “…the fall of the Berlin Wall 25 years ago, was a milestone symbolising the victory of democratic aspirations over oppression, and of self-determination over the artificial division of Europe.”

European Commission: Slovenia on the road to recovery

Commission's forecast for Slovenia optimistic. Photo: Mostphotos
According to the Autumn Forecast of the European Commission, growth in Slovenia will be 2.4 per cent this year, while in 2015 and 2016, it will be 1.7 per cent and 2.5 per cent, respectively. Since the country exited the recession at the end of 2013, growth has been fuelled by increased exports and investments in infrastructure. According to Slovenia’s Institute of Macroeconomic Analysis and Development (IMAD) the published forecast was expected and, similarly to the European Commission, IMAD warned about risks connected to the international and domestic environment.

From the international perspective, activities in Slovenia’s major trade partners, particularly in Germany, are crucial for Slovenia’s growth, as the county is a small and open economy, fairly susceptible to developments in foreign markets. According to IMAD, in order to maintain the positive trend in the domestic environment, with existing signs of recovery, the government’s commitment to implement structural reforms and fiscal consolidation are crucial.

Lower deficit, less borrowing

In 2013, the general government deficit increased to 14.6 per cent of GDP due to bank recapitalisation. As expected, the deficit should fall to 4.4 per cent of GDP in 2014. According to the Commission’s forecasts, the deficit will total only 2.9 per cent of GDP in 2015.

In 2015, general government debt is projected to peak at 82.9 per cent of GDP (82.2 per cent in 2014), then gradually decline. Even in 2016, it will remain well above 60 per cent of GDP, which is the upper limit according to the Stability and Growth Pact, but still considerably below the euro area average. more...

Lower prices for weekly and monthly vignettes for vans

The Government adopted the Decree Amending the Decree on Toll Roads and Tolls for the Use of Toll Roads, which lowers the price of weekly (from €40 to €30) and monthly vignettes (from €80 to €60) for vans (toll class 2B - vehicles up to 3,500 kg with a vehicle height over the front axis over 1.3 m). The price of the annual vignette for toll class 2B remains unchanged, i.e. €220. more...

The Government recognises that commercial activity has a great influence on growth

In his speech at the 8th Strategic Conference on Commerce at Brdo pri Kranju, under the title ‘Social responsibility pays off. At your company too.’, the Minister of Agriculture, Forestry and Food said that commerce was one of the biggest employers in the country, which has a great influence on economic growth, society and consumption. more...

Slovenia and the Czech Republic are linked by strong friendly and cultural ties

On Thursday and Friday, foreign minister Karl Erjavec visited the Czech Republic, where he was hosted by Czech foreign minister Lubomír Zaorálek. He also met the Czech president, Miloš Zeman, in Prague, which is additional confirmation of the excellent relations between the two countries. During his visit, Mr Erjavec also attended events commemorating the centenary of the Slovenian lectureship at Charles University in Prague, which is the oldest lectureship for Slovene at any foreign university. more...

Slovenia condemns eastern Ukraine vote

The Ministry of Foreign Affairs condemns the so-called presidential and parliamentary elections in Donetsk and Luhansk held on 2 November. Slovenia does not recognise the elections as they were held contrary to Ukraine’s law and contrary to the September Minsk Protocol. more...



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