Slovenia: Green, smart and creative
The small nation at Europe’s heart goes big on sustainability and digitalization
Nestled in the center of Europe where the Alps meet the Mediterranean Sea, Slovenia is celebrating its 30th anniversary as an independent nation in the global spotlight—in July, it assumed presidency of the European Union (EU) Council at a critical time for a bloc looking to reboot its economy after COVID-19.
“This is a historic moment. The priority of our presidency is implementing the Recovery and Resilience Facility to provide funds and support the investments and reforms of member states,” asserts Minister of Finance Andrej Šircelj. That facility will see €800 billion pumped into the bloc’s economy, with Slovenia itself benefiting by around €2.5 billion. “We have an enormous opportunity to speed up recovery with massive investments in green and digital transitions,” notes Zdravko Počivalšek, Minister of Economic Development and Technology. Indeed, 43 percent of Slovenia’s recovery and resilience plan is made up of green projects and 21 percent relates to digitalization initiatives.
Fast growing before the pandemic, Slovenia’s economy is rebounding more rapidly than others in the EU. By mid 2021 it had regained almost all the ground it lost to COVID and the government’s advisors are now forecasting growth of 6.1 percent this year. “We are a very stable country, with a robust banking sector and a competitive, well-diversified economy,” says Šircelj. It’s an economy driven by exports, Počivalšek adds. “Exports are our main engine and 85 percent of what we produce, we export.”
Tomaž Kostanjevec, CEO of SPIRIT Slovenia, the public agency for entrepreneurship, internationalization, foreign investments and technology, explains that the country is uniquely placed for exporters: “It’s ideal for instant access to the EU as well as Central, East and Southeast European markets, and has excellent transport and communication infrastructure.” It has also built up world-class advanced industry clusters in, for example, the automotive, medical, electronics and electrical equipment, information and communication technologies, metal processing and machinery, and food and beverage sectors.
One thing its leading businesses and the country as a whole have in common is a focus on environment-friendly innovation, notes Kostanjevec. “Slovenia is green, creative and smart: green in terms of sustainability, technologies and social responsibility; smart in terms of our numerous high-tech, digitalized and globally recognized solutions; and creative in terms of innovative people with talent.” Local talent is key to the success of many firms, according to Jože Colarič, president and CEO of Krka, one of the nation’s two homegrown pharma giants along with Lek. “The most advanced technology is only technology when it’s not used by creative and dedicated employees. Slovenia has a very good education system, especially in relation to the Universities of Ljubljana and Maribor.”
The country has also nurtured a culture of entrepreneurialism, with 59 percent of the population believing they have the knowledge and skills to set up their own businesses. A key reference point for Slovene entrepreneurs is Sandi Češko, who disrupted the country’s retail sector in the 1990s by setting up Studio Moderna, which is now Central and Eastern Europe’s leading home and living omnichannel retailer. More recently, he has turned his attention to Vanema, a startup that is exploiting the potential of a groundbreaking eco-friendly foam technology, Octaspring. “We are always striving to create solutions, instead of only pushing products. We create solutions in terms of business concept, technologies, marketing and advertising. Simply put, we are revolutionizing everything.”
Learn more about how agile Slovenia and its many entrepreneurs are pioneering innovative and green solutions by accessing our full-length special with the QR code or visit www.newsweek.com/newsweek-country-reports.
“We are a very stable country, with a robust banking sector and a competitive, welldiversified economy.” Andrej Šircelj, Minister of Finance