In early August, parts of Slovenia were hit by widespread flooding, which also caused great damage to part of the economy. Most of the Slovenian economy is functioning completely normally after the floods, it is safe and open for business.
Slovenian companies are innovative, professional, reliable, and very flexible business partners, which is why Slovenia urges foreign business partners who have done business with the affected Slovenian companies to continue to cooperate with them and not to look for replacement suppliers in the meantime. The state has taken quick, concrete, and effective measures to help the affected companies so that they can mitigate the consequences of natural disaster and resume their business activities as soon as possible. Slovenia also expresses its profound gratitude to all countries that have provided support and assistance in these difficult times.
The Minister of Economy, Tourism and Sports, Matjaž Han, points out, "After the floods in August, which affected some parts of Slovenia, most of the Slovenian economy is functioning completely normally."
At the same time, he highlights the government's quick action: "The Slovenian government stands behind the affected Slovenian companies, which will soon be able to resume work. The government has taken quick, concrete, and effective measures to help the affected companies. The measures are aimed at helping the affected companies as quickly as possible to repair the damage, ensure liquidity, retain employees and resume operations as soon as possible." Minister Han also urges foreign business partners and existing foreign customers "to maintain cooperation with the affected Slovenian companies in the future and not to look for replacement suppliers in the meantime." Foreign investment and business by foreign-owned companies is welcome, appreciated, and safe in Slovenia.
- Slovenia is an export-oriented country with a large share of industry and a sustained growth rate in the past with good forecasts for the coming years. Photo: Mitja Kobal, Karata Film/www.slovenia.info
- The reasons to do business in and with Slovenia are numerous. Photo: Mitja Kobal, Karata Film/www.slovenia.info
A series of measures to help businesses
The Slovenian government reacted immediately and, together with representatives of the Slovenian business community, prepared a series of measures to help businesses in the affected areas recover as quickly as possible.
It is also working closely with foreign chambers of commerce that have representative offices in Slovenia. The amendment to the Natural Disaster Recovery Act has introduced a series of measures to support the affected business sector, enabling funds to be made available to businesses for assistance in the event of natural disasters, either in the form of grants (as subsidies) or in repayable form (as loans or guarantees).
The total value of all measures taken thus far amounts to more than EUR 700 million.
The series of measures to help businesses include:
- Measures to retaining jobs (including subsidising temporary layoffs for employers who are temporarily unable to provide work to their employees due to flooding; subsidising the absence of an employee for reasons of force majeure; aid for self-employed persons and farmers and partial wage reimbursement for employees who remedy flood consequences at their employer);
- Advance payment and partly reimbursement of damage (including advance payments for businesses of up to 10% of the estimated amount of damage for the co-financing of remedying damage to machinery, equipment and inventory and loss of income);
- Assessment of damage to commercial buildings (Businesses report the damage to the municipality in which they are located):
- Ensuring the liquidity of businesses with loans and guarantees from the Slovenian Enterprise Fund and SID Bank;
- Deferral of the payment of loans from public funds and bank loans (Businesses that have hs received loans can apply for a 12-month deferral of the payment of loans from public funds, and a 24-month deferral of the payment of bank loans.);
- Extension of deadlines for project implementation (The Ministry of the Economy, Tourism and Sport will endeavour to grant, within the scope of its possibilities, the proposals of businesses and municipalities to extend deadlines for the implementation of projects.).
The government also plans to set up a special fund to finance reconstruction works after Slovenia's worst floods in living memory.
Also reed detailed information about the measures.
Slovenia is a land of infinite potential
Slovenia is an export-oriented country with a large share of industry and a sustained growth rate in the past with good forecasts for the coming years. The economy is diversified and well immersed into the European production chain.
Services provide most of the total value added, but what sets Slovenia apart is the large share of industry: with more than a 28% share of total value added, it is the third most industrialised EU Member State. Industry also accounts for 80% of private investment in R&D.
The reasons to do business in and with Slovenia are numerous and quite obvious: its strategic geographical location, excellent transport links and quality infrastructure, highly skilled and well-educated workforce, high level of stability, favourable tax policy and, finally, the high quality of life. Due to its relatively small size and well-developed R&D environment, it is an ideal location for various test projects, development projects and high-value-added projects. Slovenia has been recognised globally as one of the leaders in artificial intelligence (AI), which is why it was chosen as a host country for UNESCO’s International Research Centre on AI. Not a single car is produced in Europe without at least one component made in Slovenia. This includes the most prestigious makes such as Rolls Royce, Bugatti and Ferrari, popular ones like Volkswagen, and everything in between. And the world’s first serially produced and fully certified electric airplane is made by a Slovenian company. Those are just a few facts about Slovenian innovativeness and excellence.
Date: 29. August 2023
Time to read: 2 min