Prime Minister Janez Janša: The Government takes the economy seriously and is committed to creating a stable environment for development

Prime Minister Janez Janša addressed the participants at the 21st Forum of Craft and Small Business. | Author Office of the Prime Minister

He assured craftspeople and entrepreneurs that the Government understands the importance of a stable, predictable and development-oriented business environment and will do everything in its power to remove unnecessary administrative barriers and burdens.

This year, the Chamber prepared 149 demands for the Government and brought them together in the Small Business Development Strategy 2026-2030. The Prime Minister stressed that many of these demands are already included in the coalition agreement or overlap with solutions being prepared by the Government.

"This is not a narrow political programme, but a development programme," he said. He stressed that not all changes can be implemented overnight; what matters, however, is that implementation begins immediately and that the direction is clear. "Certain things need to be done, and this environment must then remain stable."

He singled out the lack of stability and predictability as one of the biggest problems facing Slovenia's business environment. "The business community needs a stable and predictable environment in which it can plan three, five or even ten years ahead. Without this, it is difficult to make decisions about investment, employment and development."

He recalled that in 2008, after about ten years of intensive development, Slovenia reached about 91% of the EU average in terms of purchasing power parity per capita, and has remained at practically the same level. In the meantime, many of the countries that joined the European Union alongside Slovenia in 2004 have made significant progress.

"We are still there today. This means that Slovenia has not made any progress in this department at all since then," noted the Prime Minister. He sees the instability of the economic and political environment as one of the main reasons for the untapped development potential.

Nevertheless, Slovenia continues to maintain a relatively high level of development. According to the Prime Minister, the two key pillars of stability are local self-government and the Slovenian economy, particularly small and medium-sized enterprises, which have proved exceptionally resilient, flexible and adaptable through various crises.

"The economy is a key pillar of Slovenia's stability," he stressed, recalling that following independence, Slovenian companies succeeded in shifting from the lost Yugoslav markets to European markets far more quickly than Slovenia's European partners had predicted at the time.

The Prime Minister also warned about the growth of public spending in terms of the share of the country's gross domestic product. It increased from around 47% in 2022 to more than 50% of GDP. Such a level is not sustainable in the long term, as it leaves less room both for people's disposable income and for investment and economic development.

As an important measure to address this, he highlighted the so-called fiscal anchor, which would limit public spending as a share of GDP. "This creates the fundamental condition for a stable tax environment. A fiscal anchor is the greatest possible guarantee of stability," he stressed.

The Government's priorities will also include optimising public administration and improving its efficiency. The Prime Minister highlighted the rapid growth in the number of public-sector employees and emphasised that some staff could be gradually redeployed to areas where there is a labour shortage. According to him, part of the structural shift could also be achieved through the decentralisation of state institutions.

The Government will also place particular emphasis on cutting red tape and drafting legislation that is more responsive to people's needs. "We will do everything we can to create practical legislation without unnecessary burdens and restrictions," he assured craftspeople and entrepreneurs.

He pointed out that, in the past, when transposing EU directives, Slovenia had often not merely complied with the European Union's requirements, but had further complicated the domestic system and introduced stricter rules than those required by Brussels. The Government wants to change this practice and implement European regulations in a way that does not create additional and unnecessary burdens for the Slovenian economy.

"There is no need to reinvent the wheel. There are countries with well-functioning labour legislation, tax systems and other systems. We can also use good solutions in Slovenia," the Prime Minister said.

He also highlighted the Strategic Council of the Government of the Republic of Slovenia for the Economy as an important step towards more direct cooperation between the Government and the business community. "The previous Government had a strategic council for hate speech; now we have the Strategic Council for the Economy. The economy is now being taken seriously, and the proposals we have prepared are on the table," he stressed.

The Prime Minister also spoke about the Act on Intervention Measures for Slovenia's Development and the collection of signatures for a subsequent legislative referendum. He said this was an important development issue, as the Act contains measures aimed at improving the conditions for work, investment and development.

"Opposition to this bill is opposition to a successful Slovenia," he said. In his view, the outcome of a possible referendum will also be important for the country's future direction: "The referendum will chart the course for the future development of Slovenia." The outcome of the referendum would also send a signal to potential foreign investors.

The Prime Minister also drew attention to the broader European problem of growing bureaucracy and declining competitiveness. He described the first European measures aimed at reducing regulatory burdens as a positive step, stressing that the European Union must devote significantly more attention to innovation, competitiveness and affordable energy prices.

In his words, the Government wants to advocate a different approach both at home and at the European level. After almost two decades of lagging behind in development, Slovenia can no longer afford to wait.

"After all these years, we can no longer afford to keep putting things off," the Prime Minister said, stressing that the Government's goal is to work together with craftspeople, entrepreneurs and the wider business community to create an environment with less bureaucracy, more stable taxes, a more efficient state and greater scope for investment and development.