“Compared to the Czech Republic, Poland or Hungary, economic cooperation between Luxembourg and Slovenia has not been very developed, until now, but there is still great potential,” explains François Berg, the first secretary and vice-consul at the Luxembourg Embassy in Vienna, Austria. According to Statec, exports to Slovenia amounted to 33.37 million euros in the last year and imports, to 15.57 million euros. Among the exchanged goods, textile materials, plastic materials, caoutchouc, machines and apparels prevailed.
Slovenia is nowadays one of the most successful countries in transition from socialism to a market economy. It boasts a stable growth in GDP and ranks among the countries with the lowest degree of risk, states the Government Communication Office. At the time of its independence in 1991, Slovenia was the wealthiest and most open Yugoslav Republic. Since then the country has privatised its economy, stabilised its wage growth, halted rising unemployment, relaxed the flow of capital and modernised its taxation system. According to the Statistical Office of the Republic of Slovenia, GDP per capita was 15,167 euros in 2006 and the average gross earnings in September this year were 1,259 euros. As a result of strengthening its currency, Slovenia adopted the euro at the beginning of 2007.
Export impetus for growth
“During 2006, the economy grew by 5.2% in real terms. Along with the impressive build-up of investments and moderate private consumption, exports were the major impetus for GDP growth,” reports Japti, the Public Agency for Entrepreneurship and Foreign Investments, in its brochure Slovenia Your Business Partner. According to the Chamber of Commerce and Industry of Slovenia, Slovenian exports to the EU accounted for 68.5% last year. Major trading partners were Germany, Italy, Austria and France.
The largest proportions of Slovenia’s exports include automobiles, pharmaceuticals, raw steel and steel manufactures, seats, parts and accessories for motor vehicles, electrical energy, pumps… Despite the country’s small size, a number of Slovenian trademarks are renowned all over the world, according to Japti. Elan skis, Alpina’s cross-country boots, Pipistrel’s high-quality micro-light and ultra-light aircrafts, Adria Mobil’s home or touring caravans are among these.
In spite of many possibilities, relations between Luxembourg and Slovenia are still rather weak. “The commercial relations increased during the last decade, during the whole pre-accession process, in parallel to the integration of Slovenia to the EU. The accession itself in 2004 seems not to have triggered major changes in terms of volume or structure of the bilateral trade,” explains François Berg. He adds that it is difficult to predict the future development of economic relations. “The Presidency might foster knowledge about Slovenia in Luxembourg in general and thus maybe also foster knowledge about the business opportunities in Slovenia. Slovenia might be an interesting market for Luxembourg as a platform for the markets in the other western Balkans states,” says François Berg. Franc Dreu, honorary consul at the consulate of the Republic of Slovenia in Luxembourg agrees that Slovenia can gain some promotion during the time of the Presidency of the EU. “Europeans will get to know it better. Such information could bring more business and a long-term relationship between the countries and companies,” he emphasises.