Govt Offers Maribor EUR 66M in State Aid
The government will refund social contributions paid by employers and tax breaks for employment and investments in the amount of some EUR 25m.
The programme for boosting competitiveness in the area in 2013-2018, which the Economic Development and Technology Ministry must prepare by 15 September, is worth EUR 32m.
Another EUR 3m is earmarked for sustainable rural development, EUR 2.2m for guarantees with a subsidised interest rate for investment loans and some EUR 4m for R&D projects and new technological equipment in 2014 and 2015.
With these emergency measures, adopted on the eve of a visit to the troubled area, the cabinet hopes to create similar conditions for the economy in the region as were granted to the neighbouring Pomurje region with a special law.
Moreover, the ministries and government offices were ordered to give the Maribor area priority status in development policies.
The Maribor city council responded with mixed reactions. They welcomed at today's session the government's willingness to help the city, but were critical that it only earmarked EUR 66m, as the city was hoping for EUR 600m.
While councillors from the ranks of Social Democrats (SD) and the Pensioners' Party (DeSUS) said this was merely the first portion of aid, the People's Party (SLS) and the Democrats (SDS) voiced criticism.
"It seems very unfair - NLB bank got half a billion and Maribor gets EUR 30m in five years," said Gregor Pivec, head of local SDS faction.
Mayor Andrej Fištravec on the other hand said the "council is happy that the government has started dealing with Maribor in a more concrete manner".
The council however also "believes that this is only a starting offer and that during the summer, when concrete companies and environments where measures are needed will be identified, this sum will be increased substantially", the mayor added.
He explained that the council also adopted a conclusion that the needed funds are "at least nine to ten times higher than presently proposed by the government".
Registered unemployment in the area, which has been asking the state for help and has proposed a list of measures, stood at 17.7% in March, while municipalities are eligible for state aid when unemployment exceeds 17% three months in a row. The city of Maribor itself has been above the threshold since last year.