FDI Summit 2014 Conclusion Paper Event: “FDIs – The Principle Factor in Economic Growth”
On the 21st of January 2015, the Faculty of Economics, Ljubljana University (FELU) and The Slovenia Times (TST) organized the final event of international development conference “FDI Summit Slovenia 2014”. The guest of honour was the Minister of Finance, prof. dr. Dušan Mramor, who discussed the progress of the Slovenian privatization plan. The event was also attended by domestic and foreign executives and the chamber of commerce representatives of America, Austria, Italy, Germany, and Great Britain.
The discussion with the Minister of Finance was hosted by TST director, Brane Krajnik and TST editor in chief, mag. Tilen Majnardi. Prof. dr. Dušan Mramor said, the main objective of the government’s activities is to restore political stability and fiscal balance. The minister said that the first objective has already been achieved and the second is in progress. The government has been able to improve Slovenia’s fiscal position under the directives of the European Commission (EC) and has reduced the public deficit to below 2.8%. The minister estimates that the ratio of government debt-to-GDP finally has peaked and will gradually decrease until the end of 2015. prof. dr. Mramor stressed, privatization is progressing according to plan. “It is no secret that the next companies to be privatized are Žito, Telekom, and NKBM. […] Privatization has been a source of considerable debate in all democratic countries, but I can assure you that privatization process is going to plan.”
Companies are suffocating because of taxes
In a discussion with the Minister, economists from the audience talked about the steady increase in taxes and labour costs, as well as substantial bureaucracy. Representatives of various companies in Slovenia argued that such actions reduce the competitiveness of companies and consequently discourage new foreign investment (FDI). The Finance Minister answered them with reassurances that the newly agreed Social Agreement clearly states that no new burden shall be bestowed upon the economy. Furthermore all existing obligations will be restructured and reorganized in order to bring more transparency, lowering transaction costs and increasing competitiveness. All with a goal to reassure foreign markets and attract new investors.
Trust comes with actions
Because of Slovenia’s history of political instability, the Minister of Finance agreed that we have already heard the same promises from all the previous Ministers and Governments and because of this, even the European Commission (EC) no longer believes the promises of reform. “The European Commission did not believe us when we presented a plan for a balanced budget by 2015. And I understand them. It was so quickly drafted that nobody would take it seriously. It has been four months since the elections and we already did so much.”, explained prof. dr. Mramor and added: “I understand the business sector’s need for quick action and so I can tell you that following the last visit of the EC, they finally trust us as they see all that we achieved. Because of this I believe the Government will also quickly earn your trust.”
Aleksander Koren, EFnews
Proofread by Leeanna Whirl, EFnews
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