Economists expect government to deliver more stable taxes and less red tape.

Business leaders expect more stable taxes and less bureaucracy from the government, according to officials at the recent summit on the future of Slovenia's economy. At the event held on Brdo near Kranj, President of the Slovenian Chamber of Commerce Tibor Šimonka supported the development of an intervention law aimed at addressing economic challenges. He emphasized that the success of businesses is crucial for funding the social state. Prime Minister Janez Janša highlighted the need for skilled personnel, predictable taxation, and faster procedures as key priorities. Šimonka noted during the summit that despite facing energy shortages, trade barriers, and supply chain issues, Slovenian companies continue to demonstrate resilience. He pointed out that while knowledge, innovation, and entrepreneurial tradition are present, the government is expected to address conditions over which it has influence. Attendees once again called for a more stable business environment, competitive taxation, and removal of administrative obstacles. Šimonka warned that these challenges are growing due to European regulations, emphasizing the need for quicker action both domestically and within the European Union. He acknowledged that many proposals from the business community have found their way into the coalition agreement and that the intervention law contains useful solutions. However, he stressed the importance of commitments to implement necessary measures. Šimonka linked the demands of the business sector with the question of maintaining public services that citizens expect from the state. He argued that without new investments, companies cannot increase productivity and maintain competitiveness, which is essential for long-term funding of education, healthcare, and social security. Prime Minister Janez Janša began his speech by focusing on exports, noting that a significant portion of what is produced in Slovenia is sold abroad. He explained that the small domestic market limits opportunities for companies to avoid international competition, which exists even within Slovenia as part of the common European market. He stated that companies must produce goods that are at least comparable in quality to competitors' products, ensuring production costs are not higher elsewhere. Among the areas the government needs to address, he emphasized the issue of human resources. Janša described demographics as a critical strategic challenge for Slovenia and Europe. Within this context, he raised the issue of labor force distribution, noting that there are too many workers in some sectors and not enough in others. He added that such imbalances cannot be resolved solely through importing labor. On taxation, he was brief: “Taxes must be reasonable and should not change every year or with each government.” The discussion took on direct political significance as Janša introduced a referendum on the intervention law for Slovenia’s development, presenting it as a crucial decision affecting future business conditions. He linked the implementation of the law to increased competitiveness and securing funds for welfare. He assessed that since 2008, Slovenia has practically stagnated compared to the average of the European Union. Both Šimonka and Janša expressed support for the developmental direction of the law. Šimonka spoke about the expectations of companies and solutions they consider beneficial, while Janša emphasized the political weight of the upcoming decision. A different perspective on the challenges faced by European companies was offered by Beatrice Javor, chief economist at the European Bank for Reconstruction and Development. At the summit, participants addressed the government with requests for a more stable and predictable business environment. Janša highlighted demographic challenges and committed to introducing a tax floor and changes to the electoral system. He evaluated that since 2008, Slovenia has practically not advanced compared to the average of the European Union. According to Šimonka, Slovenia has a tradition of entrepreneurship, innovative companies, knowledge, and capability. He warned that the current difficult conditions will not last indefinitely. Businesses want assurances that the government will implement necessary measures to create a more stable, predictable business environment, competitive tax regime, and eliminate frequent bureaucratic hurdles, which are not only of local origin but also stem from Europe, from which they also expect accelerated de-bureaucratization. Šimonka emphasized the question of how long businesses can withstand the current demanding conditions. Without new investments and inputs, there will be no productivity, no competitiveness of the economy, and thus no long-term sustainable financing of education, health care, shared needs, and social safety, all of which are highly valued by everyone. Janša emphasized that competitiveness is crucial for Slovenia, especially given its export-oriented economy. A large portion of what is produced in Slovenia is sold abroad. He noted that the internal market is relatively small, yet Slovenia is part of the common European market, where external competition also operates. This means that Slovenia must be able to produce high-quality products, products that are at least comparable in quality to those of competitors, at a price that is not higher than the cost of producing similar products elsewhere. This is the entire philosophy of competitiveness, he said. According to Janša, three things need to be addressed primarily. First, people. Demographics are, according to Janša, our key strategic problem, not only for Slovenia but also for Europe. Within this problem, however, the priority is the allocation of this human resource. That is, if there are too many in one area and not enough in another, it is not possible to solve this by importing labor. Slovenia has an electoral system that fragments votes required by coalitions and necessitates compromises that are often too large. They need a majority electoral system that brings serious stability or at least a combined electoral system. This would lead to a stable government that would ultimately be responsible for what it does at the end of its term. As the second point, Janša emphasized a stable, rational, and stable tax environment. “Taxes must be reasonable and should not change every year or with each government,” he stressed. As the third point, he emphasized as little bureaucracy as possible, regulations that stifle and prolong processes related to placing projects in space, construction, or obtaining various permits and standards. According to Janša, Slovenia developed normally until 2008 and was a gazelle among new EU members, compensating for the lag behind many and reaching 91 percent of the European average. “Today we are still there. Those who were far behind us have overtaken us, some who were late.”