The Slovenia Times

Business Rep Warns Growth Not a Certainty


Kraljič warned against over-exuberance regarding recent economic data in the country. "Slovenians shouldn't think that growth is guaranteed. The situation in export markets is changing quickly," he said in his lecture.

A key development for Slovenia is the tensions between Russia and Ukraine, with sanctions against Russia expected to negatively affect both Russia and the EU. "The EU is currently pushing Russia away from Europe. Where will it go? Towards China. Do we truly want this?" he said.

Assessing that the eurozone crisis is not over yet, he said the main priority for Slovenia should be boosting competitiveness. This is the only way to succeed in a globalised world, he told the meeting hosted by the Association of Purchasing Managers of Slovenia.

In order to give Slovenian exporters an even better shot at competing on global markets, the new government will have to focus on boosting competitiveness, as recent international surveys find Slovenia lagging in this area. Kraljič added that companies must also adapt to the ever-changing conditions.

Slovenia needs to learn from other countries which have successfully dealt with the crisis. "Germany recovery very quickly because it implemented timely structural reforms. France on the other hand is taking forever because it has failed to make the necessary changes."

One of the main problems for Europe is a lack of investment in research and development and excessive debt, as well as the failure to fully implement the free movement of labour.

"It was easier to go to Germany from the communist Yugoslavia 50 years ago than from the democratic Slovenia a year ago. This is egotistical behaviour by countries."

Assessing that success did not depend on the size of the country, Kraljič said that Slovenians needed foremost a change in mindset: "We aren't too small, we're too narrow."


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