Prime Minister Janša at the Slovenian Business Summit: Economic growth is the only realistic foundation for prosperity

SLOVENIA, October 20 - He stressed that the Government puts people's prosperity first and that this is founded on economic growth and the creation of new value.

"This Government puts people's prosperity first and recognises that there can be no prosperity without the creation of new value. Economic growth is the only realistic foundation for prosperity. We must be competitive; we must move forward. That is how we generate the resources for everything else," the Prime Minister said.

He also warned that Slovenia had failed to make full use of its development potential in recent years. He recalled that until 2008 Slovenia had been one of the fastest-developing new EU Member States, but that its convergence with the EU average subsequently slowed considerably. He said it was therefore essential to create the conditions needed to accelerate economic growth, increase productivity and attract new investment.

A stable business environment as the foundation for competitiveness

The Prime Minister identified a stable and predictable business environment as one of the key conditions for long-term development. In this context, he outlined the possibility of introducing a fiscal anchor that would cap public expenditure as a share of gross domestic product, thereby making the tax environment more predictable.

"Imagine the message this would send not only to Slovenian businesses but also to foreign investors if we succeeded," he said.

He also emphasised the importance of political stability as a prerequisite for economic stability and long-term investment planning. He cited a change to the electoral system as one way of strengthening political stability.

A law to accelerate economic progress

The Prime Minister placed particular emphasis on the Act Determining Intervention Measures for the Development of Slovenia, which he said brought together a number of measures to improve the competitiveness of the Slovenian economy and create more favourable conditions for development.

"This is not a law about intervention measures; it is a law designed to move Slovenia forward," he said.

He added that the law was not merely about individual measures, but also about deciding the country's future development path. He also warned of excessive bureaucracy and the large number of regulations that make it harder to do business and hamper development initiatives.

According to the Prime Minister, many of the answers to key development challenges are already included in the coalition agreement, which sets out measures to improve the tax environment, reduce bureaucracy and centralisation, and strengthen competitiveness. "This Government is, of course, determined to implement these measures," he said.

Competitive pay and quality jobs for young people

A significant part of the discussion focused on the tax burden on labour and on creating the conditions to retain highly skilled workers in Slovenia. The Prime Minister warned that uncompetitive taxation makes Slovenia's business environment less attractive and encourages skilled professionals to move abroad.

He stressed that Slovenia must enable young people to develop their knowledge and skills at home and be competitively paid for their work. In this context, he also pointed to the importance of the development cap, or social security contribution cap, as one of the measures to improve competitiveness.

"We need to explain that this is something that is destroying their children's future," he warned, referring to the consequences of an uncompetitive tax environment. He added that the goal must be to create high-quality, well-paid jobs with high added value.

All options must be used to keep energy prices affordable

The Prime Minister also addressed the issue of energy prices, which European leaders discussed at a recent meeting of the European Council. He said Slovenia was seeking to use every available measure at national and EU levels to keep energy prices affordable for households and businesses this coming winter.

At EU level, he cited the temporary suspension of levies linked to CO₂ emissions as one option, while at national level he pointed to measures to reduce taxes on energy products. He noted that the law on Slovenia's development also provides for the possibility of temporarily reducing taxes on energy products, which could have a significant effect on final prices.

He also stressed the importance of Europe's energy self-sufficiency, noting that timely investment in nuclear energy could make a significant contribution to greater energy security and lower energy prices.

A strong economy is the foundation of a prosperous society

In closing, the Prime Minister said that competitiveness underpins economic development and that Slovenia must create an environment in which success, knowledge, entrepreneurship and the creation of new value are recognised and encouraged.

"We will never be competitive if we are afraid to praise what is good and successful. Never," he said.

He reiterated that the Government's long-term goal was to create a stable, development-oriented and competitive business environment that would provide the conditions for more investment, better-paid jobs and greater prosperity for everyone in Slovenia.

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