Miroslav Koncina, Government Advisor at the Ministry of Economy, analyzes for MONEDA ÚNICA the process of economic restructuring that the country has undergone, focusing mainly on the industrial landscape.
Industry was one of the sectors most affected during the transition period following Slovenia's independence. One reason was the loss of the Yugoslav market, which plummeted from 20 million to just 2 million in the Slovenian market. Furthermore, "this sector was geared more towards production than marketing, since the Yugoslav state protected companies from external competition," explains Miroslav Koncina.
Thus, the primary focus during the transition was on reducing expenses and consolidating and launching these companies into other markets. The economic restructuring, which benefited from EU flexibility, lasted until 1997, when a strategic approach began to take hold, moving beyond purely political considerations and incorporating marketing strategies to address the issue of financial aid. "It was a difficult change, a shock, but we were able to adapt," the Councilor noted.
In 1999 and 2000, Slovenia submitted three restructuring programs to the EU for its most critical industrial sectors: footwear, leather, textiles, and metallurgy. Slovenia was the first to prepare a restructuring program compared to other candidate countries, and there were no objections. It was approved in 2000 and successfully implemented.
Other economic sectors that have experienced difficulties include construction, timber, and metalworking. The Regional Government's Ministry objects: "There has been insufficient emphasis on transforming traditional industrial sectors and, to a lesser extent, on developing new economy sectors, as the process has been too slow. In the last two years, more emphasis has been placed on the business sector and regional sectors."
Regarding restructuring, financing, and privatization, in most cases the process has already been completed in the industrial sectors, but not in the field of physical infrastructure: energy, rail, and telecommunications. In this area, discussions are still ongoing.
In the hold/olding of Slovenian foundries, excessive privatization takes place where domestic and foreign partners have the same opportunities.
At Nova Banca Ljubljana, part of the state loans have already been sold, the privatization of Banca Crédito de Maribor has begun, and in the insurance sector, the same has happened with what was previously share capital, and it is expected to be completed in two or three months.
"Generally speaking," the Government Councillor concludes, "we can say that Slovenia will have no problems joining the EU, except for the agricultural sector. Over the last two years, there has been strong growth in foreign investment, and the development plan for the industrial sectors can be bolstered by the entry of strategic foreign partners. Slovenia, compared to other countries, has attempted to restructure its industrial and financial sectors economically and, based on this, is negotiating with its potential strategic partners, rather than negotiating at any cost."
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