Prime Minister Janez Janša at AmCham: Slovenia all too often creates its own obstacles to development

SLOVENIA, October 14 - During the discussion, he addressed the key challenges facing the Slovenian economy, including removing administrative barriers, creating a competitive business environment, attracting talent and managing state assets more effectively. He stressed that Slovenia has many development advantages, but to realise them fully, it must eliminate the obstacles it creates for itself.

The Prime Minister drew attention to excessive legislation and complex administrative procedures hindering the development of both the state and the economy. He emphasised that Slovenia's 24,000 national-level laws, regulations, and other legal acts place a significant burden on public administration and businesses. "We have found ourselves in an administrative or bureaucratic swamp that cannot be cleared overnight. It would take nothing less than a chainsaw to do that," he said.

He stressed that the Government is fully aware of the scale of the problem and is seeking solutions to simplify procedures and reduce administrative burdens. Furthermore, he noted that these difficulties stem not only from existing legislation, but also stem how new regulations are drafted and from the operational practices of individual ministries.

As a concrete example of the obstacles Slovenia faces when implementing development projects, he cited the Third Development Axis, specifically the road connection between Novo mesto and Bela Krajina. Even individual objections raised during administrative procedures, followed by judicial proceedings, can significantly delay projects of this nature.

"We are creating obstacles for ourselves. This is not the fault of external competition, but often of our own system," the Prime Minister warned, emphasising the need for state institutions to operate more effectively.

The Prime Minister also touched upon the challenges brought by artificial intelligence, emphasising that it is a fundamental technological shift, not merely an extension of digitalisation, which will profoundly impact the economy, society and countries' competitiveness. He noted that Slovenia must prepare for these changes well in advance, in particular by adapting its education system, introducing computing skills as early as primary school, and ensuring the effective transfer of new technologies into practice.

A significant portion of the discussion was also devoted to Slovenia's competitiveness and its ability to attract highly skilled personnel. The Prime Minister emphasised the importance of creating an environment in Slovenia that will encourage its top experts to stay, while also making the country attractive to experts from abroad.

"If we create a favourable environment for our best domestic talent, that environment will naturally be conducive to foreign experts as well," he concluded. He added that Slovenia has many advantages in this regard, including its stunning natural beauty, friendly inhabitants, excellent cuisine and a high quality of life. However, these advantages need to be reinforced by suitable working conditions, opportunities for development and space for creativity.

The Prime Minister also reiterated the importance of the Intervention Measures for Slovenia's Development Act, which introduces measures to improve the business and tax environment, by easing the economic burden, promoting innovation and improving people's well-being. He stressed that the referendum on the Act would be crucial for the country's long-term development direction and for inspiring confidence in potential foreign investors seeking stability and predictability.

The Prime Minister also touched upon attitudes towards entrepreneurship and success, as well as the importance of successful entrepreneurs as role models for younger generations. The discussion raised the question of how to strengthen the understanding of entrepreneurial success in Slovenian society and of how to create an environment that fosters ambition, innovation, and the creation of new opportunities.

He went on to talk about managing state assets and the role of the demographic fund. He emphasised that state ownership itself does not guarantee more effective corporate governance. In his view, it is necessary to clearly determine which sectors and infrastructure are of strategic importance and should therefore remain under state control.

"I do not see why state ownership should be further strengthened," he said, drawing attention to past inconsistencies in the definition of strategic investments. He noted, for example, that even hospitality establishments had been classified as strategic investments, while some activities that should have remained under state control had been privatised.

He also emphasised the importance of clear objectives, accountability, and measurable results when managing state assets. "We need to set concrete objectives to be achieved, and tie remuneration to them. We must establish a system based on capability and results achieved," he stressed.

The Prime Minister therefore emphasised the need for the state's assets to be managed more effectively, with a strong focus on results and returns.

The AmCham Slovenia business breakfast was part of a broader reflection on the 35 years of Slovenian statehood and the country's ambitions for development in the decades ahead. The Prime Minister was interviewed by Nevenka Črešnar Pergar, and the event also featured a debate with international investors and business leaders about their experiences of doing business and investing in Slovenia.

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