Good day! The Government adopted a draft bill on intervention measures
to deal with the consequences of the August 2023 floods and
landslides. The Bill will be presented in more detail by three
Ministers, so I now invite Minister Sanja Ajanović Hovnik to the podium
first. Good afternoon.
Good day! Welcome!
First of all, it must be said that we are facing a situation that is
unknown in Slovenia.
We have never had one before.
And that is why it is time for intervention.
Because the government needs and wants to help the people affected by
the floods to get back to normal as quickly as possible.
In preparing its measures, the Government has had the people, the
people of Slovenia, in its sights, who need help and need it now.
That is why we have been collecting, shaking up and preparing
these measures in all ministries, in a coordinated way, practically
day and night. For that, I would like to thank all the staff who have
been involved.
The measures we are proposing cut across all areas of our lives,
as the devastating floods have also cut into every pore of our lives.
The measures taken by this intervention bill are therefore the
first, most urgent, but by no means the last, and I want to stress this
seriously, help for people, municipalities, businesses and
agriculture. We have therefore structured the actions into four
strands. The first strand is about helping people, i.e.
households. The second set consists of measures for business, i.e.
the economy. The third set of measures are those designed
specifically for municipalities.
And it is the municipalities that are the first to have contact with
the population and, last but not least, the fourth set of measures,
which are remediation measures, on public infrastructure,
watercourses and flood protection.
So, to pause a bit on the first set of measures for people
for households.
We will help people in the affected areas in a variety of ways, from
exempting parents from paying for kindergarten if their children are
unable to attend at the time, to providing free meals for
schoolchildren. Exemption of students from paying the student
accommodation fee, extension of the beneficiary groups for solidarity aid,
temporary provision of housing also for the elderly and those who
cannot take care of themselves.
Exemptions from electricity, natural gas, deferred payment on consumer
credit, tax relief, exemption from legal fees.
The second strand is the economic strand.
Here, too, it must be said that the State is offering a helping hand in
the financial and fiscal spheres.
Businesses that work to provide a living for their employees and their
families. Measures for the economy are aimed at preserving incomes,
jobs and getting things working as quickly as possible.
We have therefore simplified the procedures for recruiting foreigners
to help with the recovery.
We have also paid special attention to farmers, including in terms of
tax relief and tailored declarations of force majeure or
exceptional occurrences.
The third set of measures for municipalities.
Much has been said in the past days.
A technical office is being set up, which will be organised within a
government department.
The technical offices will provide assistance and advice for
project preparation.
Municipalities will be allowed to borrow more liquidity and to spend
the donations they receive in their accounts smoothly.
There will be no limit on the use of the budget reserve.
Simplification is also foreseen in the area of public procurement.
Once the recovery programme is adopted, municipalities will receive
additional funds in their budgets for reconstruction.
The costs of waste management are borne by the State.
The measures that the State must implement as quickly and efficiently
as possible have been grouped together in a fourth strand, and
here we are mainly talking about the remediation of public
infrastructure and preventive measures on watercourses.
Simplifying and speeding up bureaucratic procedures, including
in the area of public procurement.
And here I must say that we have prepared and have already started
training for all those individuals and bodies who will be managing
these public procurement procedures.
The proposal also facilitates the transfer of civil servants to posts
where there is a greater need for work, including between authorities
and institutions.
Changes are also foreseen to speed up land purchases for the
construction of buildings.
The bill also envisages the creation of the Slovenian
Reconstruction Fund, which will co-finance the implementation of
comprehensive measures and projects related to floods and landslides.
It will collect funds from the national budget, European and other
sources. Within two months of the entry into force of the Intervention
bill, the Government will make a proposal on the establishment,
management and operation of the Reconstruction Fund, as well as on
the collection, management and use of funds.
We will include the unemployed in the remediation, and the bill also
contains solutions to mobilise international aid, as we already
have examples of many Slovenians working abroad who want to
contribute to the reconstruction.
Most of the measures covered by this intervention bill have a
duration of up to December 31 2023.
Measures on the employment of foreigners run through August 31 2024.
And here is where we need to say how to move forward.
Although the destructive power of torrents and landslides has caused
damage estimated at billions of euros.
In the case of reconstruction, we are starting from scratch, but in a
different way, in an interdisciplinary way.
We will entrust the reconstruction of the country to a consultative
group that will help, that will assist the government.
Under the expert guidance of Slovenian experts, who will take
into account modern planning practices in spatial planning.
We are all aware that it is not possible to rebuild this scale of
damaged infrastructure and facilities overnight, so these
first, most urgent solutions will be followed by additional, but
development-oriented measures.
A bill will be drafted and adopted very soon, setting out, among other
things, measures for the remediation of real estate, the
population or alternative construction.
Our way forward is focused on smart urban regeneration that takes into
account the realities of climate change.
We need modern watercourses and riverbanks, twenty-first century
infrastructure, modernisation of these areas.
On the other hand, we must not neglect development measures for the
affected areas and Slovenia as a whole.
Only in this way, and by working together, will we be able to carry
out a smart remediation that can last for years, and build a much
better adapted and resilient to new storms.
Finally, I would like to reiterate the importance of the protection and
rescue forces and the volunteers. Without their selfless
contribution immediately after the water level had receded and the
creeping slopes were no longer a threat, we would not have had a
successful intervention. We will reinforce these teams, to whom I
would like to reiterate my gratitude, with appropriate
equipment, more stable funding and additional training, thus building
on the success of the current operation. I would also like to thank
them for their efforts.
The covid epidemic was a test of our togetherness and our
humanity, where our heart was on display.
The test that nature has set before us is a renewed opportunity to bring
solidarity and humanity back together, this time to help people
and to tackle climate change.
Thank you.
Thank you very much, Minister. I would like to ask you to clarify the
Solidarity Saturday, and then we will invite Luka Mesec on stage.
Yes, thank you very much for reminding me.
So a measure that I have not specifically highlighted, but which
has also been talked about quite a bit.
Solidarity Saturday. I would like to remind us that we have already
known something similar in the reconstruction of post-earthquake
Posočje. The mandatory contribution, which was ...
A compulsory contribution covering labour,
i.e. employees.
This time we are doing something similar for Solidarity Saturday.
It is a compulsory contribution, where we have extended the base to
all social groups: to the economy, to businesses,
to individuals, to legal persons, to farmers, to the self-employed.
And an alternative to this compulsory contribution, which is
Solidarity Saturday, where it will be possible to agree together, i.e.
employees and companies, to allow the contribution to be replaced by
work and essentially the income of that day to be donated to the
Slovenian Reconstruction Fund.
Thank you. I would also like to invite Mr Mesec to the podium.
And if there are any press questions for the minister, please make sure
to stay nearby.
Minister Mesec.
Thank you very much and greetings.
As Sanja said before me:
Today, we have finalised and adopted the Floods Relief Act in the
Government. This bill also contains a number of provisions that will
either help on the social side people whose property has been wiped
out by the floods, or will help to preserve jobs and, of course, to get
the economy back on track as soon as possible, and to get life back to
normal in the affected municipalities.
I will present some of these measures, which are most relevant to
the areas that I cover, in particular social and labour issues.
Now, the first thing I would like to remind all citizens.
It should be noted that we are introducing solidarity support for
affected citizens.
Solidarity aid is provided at 7 times the amount of
the emergency cash grant and there are no entry
criteria. If your house is flooded, contact the social work centre.
Tell us what happened and you could receive a lump sum
of up to 7 times your minimum short-term living costs.
This means €3,257 for a single person if unemployed, €3,513 if
employed, €8,957 for a family of four if parents are unemployed
and €11,466 if parents are employed.
These are the maximum amounts of this
one-off solidarity aid that all those affected by the floods
can receive through the social work centres.
But we will not take your income or assets into account at the social
work centres. The only serious entry criterion is that you have
suffered severe flood damage.
Solidarity aid is the first point.
Anyone who has been affected should go to a social work centre, make an
application and you will receive help as soon as possible, but of
course not more than the amount of the damage you have suffered.
The second thing I would like to point out is that we have adopted a
new measure, and that is that those employees who work in the flooded
companies and who have helped to clean up these companies during
their working hours in the past month, they will not receive 80% of
their salary, as is the case when they are on standby, but they will
receive 100%, their full salary.
That means that all of you who helped clean up businesses in August
will be entitled to your full salary for August,
even if the businesses were not working.
The third measure is temporal layoff and force majeure, that is,
either if you cannot go to work because the company is not working
because it has been flooded, or because you cannot go to work
because the infrastructure is damaged or something like that.
You are entitled to be placed on standby or force majeure until
the end of the year and can receive 80% of your salary.
Of this, 80% will be contributed by the State.
The fourth important measure in this area is support for the
self-employed. All self-employed people can apply for assistance
if they were naturally affected by the floods.
Those who, as we said last time, have experienced a 50% drop in
traffic in the current month due to flooding will not be eligible for
aid. We have changed the criteria so that those who will see
their turnover drop by 25% in a whole year are eligible.
This is now the entry criterion, not a halving of
turnover in a single month, but a 25% drop in turnover over the whole
year. Then public works for all unemployed - an
invitation to public works to help
in the floods, from cleaning up to helping in care homes, and so on.
They raise the wages of those who enroll in the public works programme,
i.e. someone with up to Level 5 education is entitled to the full
100% minimum wage.
If you have a sixth level education, you get 110% of the
minimum wage.
If you have a seventh level education or more, 120% of the
minimum wage.
This bill, which we have adopted today, introduces a subsidy
for renting a home.
For all of you who have been flooded and can no longer live in
your houses or apartments.
If you go into renting, you are entitled to a housing subsidy
for the rent.
If you are over 65 and if the flood has flooded your house, you
are entitled to crisis accommodation, free of charge, in
homes for the elderly, and the last measure I would mention is the rapid
recruitment of foreign workers.
In order to clear up the consequences of the floods as
quickly as possible, we are enabling rapid recruitment of
foreign workers.
Within 10 days of arriving in Slovenia, the employment service
will be obliged to give or withhold consent for them to start working,
and within three months, the administrative unit must decide
whether or not to grant them a single permit to stay and work.
But while they are waiting for this single permit, they can already
start working if they have the approval of the authorities, which
must be given within 10 days.
As a further point of clarification, we are talking about
foreign workers from non-EU countries.
That's all the countries of the Balkans, except Kosovo, and this
quota of non-visa countries does not include the Philippines, Nepal,
Bangladesh and the like.
In short, we are talking about non-visa countries, i.e.
countries from the Balkans.
Thank you very much. -Thank you.
Minister, please stay around. I'm inviting Klemen Boštjančič
to the podium to present the measures in his area of
expertise. And I would ask Minister Mesec to be around to answer any
questions. Minister for Finance, please!
Good day.
Let me tell you about the measures taken in the area of the Ministry of
Finance. Recognising that the circumstances have led to temporary
liquidity constraints for borrowers, we have also included a
temporary measure in the area of bank lending in the Intervention
bill. The measure obliges banks and savings banks, including branches
established in the Republic of Slovenia, to grant a loan deferment
of up to 12 months to a borrower who has suffered damage as a result
of floods or landslides.
Both legal and natural persons are eligible for a deferral, subject to
certain criteria regarding the amount of damage they have suffered.
Beneficiaries must submit their application to the Bank no later
than December 31.
During the grace period, interest may accrue on
the deferred part of the principal, up to a maximum of 12-month EURIBOR
+ 0 per cent or, if more favourable to the borrower, at the regular
interest rate agreed at the time of conclusion of the contract.
A number of measures concern municipalities, which are, of
course, an important partner in dealing with the consequences of
floods. For municipalities affected by floods and landslides, we have
raised the liquidity borrowing limit.
We have allowed them to borrow up to a maximum of 10% of the total
expenditure of the last adopted budget in financial years 2023 and 2024.
The current limit is 5%.
This has given them more flexibility in paying their costs.
For municipalities affected by natural disasters, we have also
increased the borrowing limit for investments in years 2023 and 2024.
In addition, this year, once the Disaster Recovery Programme has been
adopted, additional budgetary resources will be made available to
the affected municipalities to deal with the consequences of natural
disasters. The amount, conditions, purpose and procedure for allocating
the additional funds will be decided by the Government.
We have also enabled them to make smooth use of the funds they receive
through donations, which are collected in a special donations
account. They will therefore not have to prepare a rebalancing of this
year's municipal budgets.
In years 2023 and 2024, there is no limit to the amount of money that a
municipality can set aside in its budget reserve.
However, municipalities will also be able to use their budget reserve
to finance the costs of dealing with the consequences in another
municipality. I am also pleased that this bill has established the
Reconstruction Fund for Slovenia, which is intended to co-finance the
implementation of comprehensive measures and projects related to
floods and landslides.
It will collect funds from the national budget, European funds
and a range of other sources.
The Fund's operation will be regulated by a constitutive act.
Let me say that we are taking a cue from other countries that already
have these funds or have set them up in recent years.
We have also taken some measures in the area of taxation.
One of the most important things is that we have reduced the VAT rate on the
purchase of firefighting equipment, which is commonly used in
interventions, to 5%.
We have also provided more favourable tax treatment for people
who have had to find new or temporary accommodation, and for
legal persons and sole traders who provide accommodation for them.
I should also mention that municipalities will be able to waive
the building land use allowance revenue in favour of taxpayers for
properties that have been severely damaged.
That's all from my side for now.
Thank you very much, Minister. I am sure there will be a
question about the banks, so stay around.
And the last minister who will present measures in his area is
Minister Uroš Brežan.
Greetings to you all.
Let me start by saying that the government reacted very quickly
after the storm that hit us on August 4.
First, with the adoption of the Disaster Relief Act, which was also
the first intervention bill.
Today, the government adopted a second intervention bill and, of
course, the government's plan includes a renewal bill.
From the point of view of the Ministry, which is responsible for
water and the environment, I would like to highlight at this point
three areas or three actions that are addressed by the bill approved
today by the Government.
First of all, the Article ensures that we can send enough people and
machinery into the watercourses to ensure that they are flowing in the
first place.
This is one of the key tasks that is emerging at the moment, and one
that is generating a lot of comments on the ground.
The bill adopted today by the Government will go some way towards
restricting the existing concession relationships on watercourses and
will allow additional capacity to be committed to ensure the flow of
watercourses and to provide emergency intervention measures.
Secondly, I would like to highlight the municipal detailed plan for
disaster recovery.
Here, we will work with the municipalities, which are the
spatial planning authorities at municipal level, to provide a new
mechanism that will speed up the possibility of acquiring new land
for the affected areas and thus enable new replacement buildings
to be built for the affected population.
And thirdly, also in this area.
Emergency reconstruction measure.
This is a measure already allowed under current building legislation,
but the Intervention bill extends this possibility.
Existing legislation limits this measure to existing building
dimensions only.
However, in this measure, which we are adopting by means of an
intervention bill, we are extending the possibility of urgent
reconstruction to buildings where we will be changing the dimensions,
without a building permit.
These are, in brief, the three most important actions in the field of
our Ministry.
Thank you very much. Mr Mesec expressed his wish to be the first
to answer questions.
So if anyone has a question for Mr Mesec.
Metka Majer. Minister Mesec, please come to the podium.
I'm rushing you and then I'm late myself.
I can now list you all the non-visa countries.
Thank you, we'll google them.
Let's begin.
You said that there are no entry criteria for solidarity aid.
However, CSD workers will probably have to make some kind of judgement
as to whether people who have been affected by the floods have come for help.
Yes, to be more precise:
The absence of criteria means that the criteria you need to pay
social assistance, social transfers and so on, do not apply.
In short, assets are not taken into account, income is not taken into
account. You must have suffered serious damage in the floods, to the
property you lived in.
The social work centres will then assess whether and to what extent
you are entitled to this solidarity support.
Because that is the payout limit.
The amount of solidarity aid, if rounded.
For a single person, this is around €3,500 max, and for a family of
four it is just over €11,000 max.
This amount cannot exceed the damage to the property in which the
individual or family lives.
Right, you mentioned the subsidy for those who decide to look for a
rental on the market.
What would it be?
The same as the subsidy for market rent .
Let us revisit Solidarity Saturday, because it was
only mentioned briefly. So a compulsory contribution
or Solidarity Saturday.
Could you please explain.
Yes, basically the concept is this, as Sanja said: just like after the
earthquake in Posočje, we will introduce a solidarity contribution
that will flow into the reconstruction fund for Slovenia,
that is to say, into a fund with the acronym SOS.
This contribution will be paid by all people and the economy.
We, the people will pay.
That is to say, employees, a share of income tax.
We will know exactly what it will be by the end of the day.
The economy will contribute the same amount as the people, but the
people will contribute with their own contribution.
What will the amount be? We'll let you know tonight.
Of course, you do not have to pay this contribution
if you help on Solidarity Saturday.
One Solidarity Saturday or four by the end of the year?
One this year and one next year. It will be paid in 2023
and 2024. It will be calculated by FURS at the time of income tax.
What is the amount we are talking about?
What I'm talking about? We are talking about 0.3% of income tax.
Okay. You will let me know by the end of the day.
Have you said anything on this
subject. I imagine that, given that there has been a lot of talk about it,
we now have a different concept.
Is this in agreement with employers and unions
that have expressed scepticism.
Yes, the employers themselves, as far as I have heard, first proposed
such a solidarity day on the 14th of August.
Then it was also proposed by the banks when the Prime Minister met
with them, so we basically adopted and took ideas from them.
But the contribution is this.
We cannot, as the Chamber of Commerce proposed, just deduct
from people's salaries, because the Chamber of Commerce proposed at the
time that people should contribute one day's salary to this fund.
This cannot be the case because wages are a constitutionally
protected category and you cannot take wages without the worker's
consent. So we have gone the other way, and that is to introduce an
additional contribution on top of income tax.
And of course, the economy will pay the same amount.
Because I could not agree to the idea that only the employee would
pay and employers would not.
Both will have to contribute, and in equal amounts.
And perhaps just one more thing that has not been mentioned today
and has not been clarified.
So there is a limit to what pensioners can do.
You said there would be no more.
Have you reached any agreement in the intervention bill?
Yes, there is a limit.
Pensioners' work will be extended until the end of this year.
From 60 to 90 hours.
It remains a temporary work form and the restriction
has not been completely lifted.
And of course we will invite all pensioners who want to work and earn
extra money to help with the remediation.
Anyone else?
Yes, Marta Razboršek, Zoom.
I apologise, let us give the floor to Marta
she has already raised her hand.
Hello.
I have a question about the workforce that you are thinking of
importing from the Western Balkans, as I understand.
I wonder how many people you need, are long-term jobs available?
And I would also like to know about Slovenia opening
a Consulate General in the Philippines, which means that we
obviously have a great interest in Filipino labour.
Why Filipinos, given that they are also basically
common in other countries?
Why did you choose them and what kind of profiles are you looking for?
The first thing I would ask is that we do not mix
apples and pears. I've already read on the internet
that I said last time that we will try to provide as much free
housing as possible for people who have lost their homes.
So now we will create a pool of housing from the public
administration and the ministries, the housing fund and so on, where we
can put people in crisis accommodation free of charge.
I read on the internet that we are supposed to be doing this so that we
can put foreigners there.
No. These homes will be available to those who lost their homes in the
floods and no one else.
We decided that foreign workers could be hired on a fast-track
basis, i.e.
within 10 days of arriving in Slovenia, simply to help with
remediation and reconstruction work.
That's what it's all about.
This measure will apply this year and next until the end of the year.
As I said, the employment service will be able to issue a permit for
foreigners from non-visa countries within 10 days.
We are not talking about Nepal, Bangladesh, the Philippines and so
on. That is a completely separate topic from the one we have here.
So I am happy to explain that measure.
But to avoid being taken out of context once again, I will stress
at this point that we are not talking about foreign workers
coming from countries from which you need a visa to enter Slovenia.
Thank you. Lara Drašković, STA.
Okay, I would like to add to this answer on foreign labour.
Why non-visum countries?
You should know that these foreigners can otherwise enter
Slovenia as tourists.
They can stay in Slovenia for three months.
For this reason, it is a measure that other countries already know.
For example, in Austria and Germany, we have decided to allow
faster recruitment of foreigners who are already in the country,
or who can come very quickly, in the event of recovery from floods and
landslides this year.
These foreigners and these applications will have to be
labelled as remediation and then the process will go much faster.
Both at the Employment Service and then later at the administrative
units, where we are also abolishing local competence and designating one
administrative unit to deal specifically with these exceptions.
Thank you very much, Minister.
Another question from Lara Drašković.
I would also like to ask for some clarification on emergency
social assistance.
First of all, you are talking about a 7-fold lump sum of minimal wage.
Is this now about raising this existing emergency social assistance
from a 5-fold sum?
Or is it a separate thing and technically someone can get both,
It is an emergency cash grant.
But we are raising the maximum amount to a 7-fold lump sum.
And the second thing that is important is that we allow lump-sum
payments. If we kept the institution as it is, then these
people could get paid in September, and in October, November and
December. But they can get 7 times that amount in a lump sum.
This is essential, no. To help them quickly and to give them a sum of
money to start rebuilding their lives.
In the next bill, we will talk about how we will settle the damage.
If I understand correctly, this is the maximum amount.
What criteria will be used to determine these amounts?
Who will get the sixfold and who will get the fivefold?
Could you expand on this? How will people prove
the damage? On some assessment?
Will those most affected by the floods have to carry out the work
first and then submit some invoices?
If you could explain.
First they will be paid, then they will submit their invoices.
Because we want help as soon as possible.
The aid will be accessed by applying to social work centres.
I therefore urge those people who have suffered damage to apply to the
Social Work Centre as soon as possible for this solidarity aid.
The staff of the social work centres are involved in the
municipal commissions that take stock of the damage, and we
therefore count on them to be aware of who has suffered damage on such
scale that they need solidarity assistance.
So it will be channeled through the Social Work Centres?
The amounts people receive? -Yes.
We have exhausted the questions for Minister Mesec.
Thank you very much. -Thank you very On to the banks.
Špela Bezjak, POP TV.
Minister for Finance.
Hello! Špela Bezjak, POP TV.
The 48-hour deadline set by
Prime Minister Golob for the banks to come up with measures is soon up.
I wonder if the meeting with the banks has already taken place,
have you already had the banks' proposals on the table?
What was written and if you have already made any compromises?
In recent days, there has been very intensive communication between the
government and the banks.
In addition to that meeting, where you were also present in the
lobby of the Great Hall, the journalists were also present.
Other meetings are also taking place, mainly at the Ministry of Finance.
Today, the banks or an association of banks have sent a
reply with their proposal.
I believe that this answer has also been made public, or at least
its summary.
The Ministry of Finance has already prepared a reply to this reply, so
we will also send out a short press release on this in the next few
hours. The fact is, as I said, these talks are intense.
First of all, I can express my satisfaction with the willingness
of the banks to talk.
Of course, different banks have different views.
I will not comment on them, because that is not fair to
the individual interlocutors.
Different, both in terms of flexibility and operability.
There are a number of things in these responses or proposals from
the banks that are, of course, very welcome.
We have already addressed some of this in the bill approved today.
But I would like to point out one thing in particular that has
happened today, which is that
we welcome the steps taken by individual banks to announce large
increases in passive interest rates or deposit rates.
We have been pointing this out not only in these last meetings, but for
a long time. I am sure that other banks will have to follow suit, and
this is of course very good news for all the people who have deposits
in these banks.
As for the other measures:
We are satisfied with the banks' response.
Of course, we are not yet where the government thinks we can be.
Intense discussions with banks will continue in the coming days.
As I said in this response from our Ministry, we have already invited
the Association of Banks to new meetings in the coming days.
So I believe that in the next few days, say in a week or two, we will
come to a final version.
Whether or not this will go beyond the agreement, again, it is difficult
to say. It is important to be aware that on the other hand there is a
relatively large number of entities that find it difficult to coordinate
with each other. But regardless, as I said after intensive discussions,
there are encouraging first steps.
But we are not yet where the government thinks we should be.
When we talk about these taxes on these extraordinary bank profits
on the one hand, and on the balance sheet totals on the other.
Is it true, then, that the government is looking for
a percentage of up to two percent
of the total balance sheet, and that the banks have offered in
return 0.1%.
And how do you react to the proposal?
Delo wrote today that
the Association of Banks says that if banks' profits are taxed, the
whole economy should contribute, because they are businesses
themselves.
The position of the banks is a good starting point for further
discussions, including on the introduction of a balance sheet
contribution for banks and savings banks.
The purpose of which is, of course, solely to repair the damage caused
by a natural disaster.
But we absolutely believe that this response is, of course, positive on
the one hand, but we will absolutely continue the discussions
both in terms of agreeing more precisely both the amount of the
duration itself and the obligations of this contribution.
There are banks that are committed to voluntarism, but of
course it is very difficult to gauge what the response will be.
This is absolutely one of the key areas where we will continue our
discussions with the banks.
Is one tenth of one percent of the balance sheet
enough, or how much do you expect banks to contribute to this fund?
This is a very complex issue.
It is one of the key things we are talking to the banks about.
You have to understand that I cannot explain to journalists
our positions and our explanations of why we think certain
percentages or percentages of percentages are necessary at this
stage. It is also important to be aware that in response
to a lot of relatively populist calls, it is not, of course, one of
the most important sectors of the economy, because it is also very
important to keep an eye on the financial stability of the whole
sector. We are very aware of this in the government,
so I will not make any populist statements about
what should be done and how it should be done.
We are arguing our positions in meetings with the banks and I
believe I said that we will reach a final decision by the government in
a relatively short time.
There is a difference between one tenth of a percent and
one percent. On the one hand we have 50 million, on the other half a
billion. What are we talking about here?
Like I said. It is not just a matter of the government and banks, it is a
matter of financial stability.
The Bank of Slovenia is also involved in these talks.
The introduction of a specific mandatory contribution has a
different impact on different banks, because the financial
situation of individual banks also varies.
So we are very attentive to all this.
We are working on a series of calculations on what it would mean.
I would not get into the debate about whether we are talking and
what figures we are talking about because all these debates lead to
speculation, which mostly has little to do with reality.
You do not rule out extraordinary taxation of the economy, right?
As for the economy, or other industries, banking is one of them.
Of course, banks are not the only industry that we think needs help
in times of crisis.
There are other sectors, which of course have very different
situations. No, of course not.
The question of insurance companies immediately comes up, but it is part
of the financial system.
But of course, again, it is a specific situation, because of
course, on the other hand, the insurance companies were affected.
There are other industries in these floods that we believe have a
contribution to make.
But, as I said, I would not talk about that today.
This will happen in the coming weeks and months.
TV Slovenia.
I have a question on last week's proposal, namely the issuance of
government bonds. How far are you with this proposal?
Have you checked it? Are you trying to persuade people to put their savings
into government bonds and get slightly higher interest rates
there?
Are you talking about so-called retail bonds?
I already announced this spring that we would very likely issue
these bonds by the end of the year.
The position is still the same.
We will very likely do it this year all this time, over the summer, and
that is actually independent of what has happened now, we have been
preparing for it.
Because, as with all the other measures, this measure was not
intended to be populist and, above all, to respond to certain calls,
and to a large extent to certain media, which are pushing us very
hard to do this.
Individual countries have done it, individual countries have not.
There are pros and cons to issuing this type of shares and
issuing this type of bonds.
So, on the one hand, compared to conventional borrowing, but on the
other hand, of course, nominally with a positive upside for capital
market development, which is one of the strategic objectives of the
Ministry of Finance.
So I won't go into too much detail, because I'll be too long, but just
one very important thing.
This is the kind of thing where a nearby country is praised a lot.
One very important thing that we think about the issuance of this
type of shares is the functioning of the secondary market.
So I think it's very important that when this kind of bond is issued.
We have a secondary market where these bonds can be traded.
There will be a completely different interest in these bonds.
So that is one thing we are working on intensively.
The other is, of course, that it is no secret that this is also part of
the way we are forcing banks to raise deposit rates.
Apparently, according to today's announcement by our biggest bank.
I suppose that is partly the reason they decided to do it.
I want to know where is the government with the decision to
borrow more from the Recovery and Resilience Fund?
What is the implementation plan, given that we know that the
deadlines are very tight and that the deadline for changes to the plan
is the end of the month.
Thank you.
Yes, first of all.
We are talking about borrowing, or government borrowing.
It is a completely different thing from grants.
So, again, I am speaking because there is a relatively large amount
of information both in politics and in the media.
Why don't we choose to do that and why don't we go for it?
It must first be said that in Europe,
August 31 is the deadline for countries to send the final version
of their Recovery and Resilience Plan redesign.
Then we will actually see how many countries have applied for grants.
Two months ago, data showed that there were fewer than ten such
countries in Europe.
This instrument is not so interesting, especially for those
countries that, of course, borrow relatively favourably on the capital
markets. So no surprise there.
This is interesting for those countries where
they have to borrow at higher costs or at higher interest rates.
Slovenia is still in a very good position.
In terms of borrowing, we have the lowest markup on
the base rate among CEE countries.
Despite the fact that, unfortunately, the financial
markets, because we are in so-called central eastern Europe,
consider us to be closer to Ukraine than Portugal and Spain, and we are
still achieving very comparable markups, so ...
To say a few things about how good this is:
This is relatively comparable to the conventional borrowing we are
achieving. The second thing is, of course, the constraints that come
from the Recovery and Resilience Plan.
This is exclusively for either grants or reimbursements for
projects that have to be completed by August 2026.
Here we have a lot of infrastructure projects that it is
questionable whether they can even be completed by 2026.
Plus the additional thing is that even for grants other than the 13%,
you can only apply after the project has actually been
implemented, which means that liquidity-wise we have to provide
the interim funding ourselves anyway.
Nevertheless, the Ministry of Finance or the Office for Resilience
Recovery, which is responsible for the plan, has called on all
ministers
ten days ago because
the European Commission had asked us to see if we could make more use of
these funds. So the ministries
that were impacted by the floods, they were asked which
of these remediation projects would meet the conditions of the
Recovery and Resilience Plan.
And in fact, what is happening these days is that we are reviewing
what is happening with these relatively strict conditions for
drawing down these loans.
What criteria we meet.
And of course, we will continue to do so until the end of the month
i.e. until the deadline.
Let's move online, where we have Anže Božič from Pop TV with us.
Yes, good afternoon. Minister, I would like to ask you to please
elaborate a little more on this SOS Fund.
Is it true that it will operate within SID bank?
How will it be managed?
What will actually be the main source of funding for this fund and
when will it come into operation?
I understand that the government has just set this up today, or
whatever you want to call it.
Today, we have announced the creation of
this fund, but of course the actual act of creation will follow in the
future, very probably in the framework of the next bill, which
will address the longer-term flood recovery.
So, the aim is to put all the resources into recovering from these
floods, into remediation, we are talking about infrastructure,
which of course will be by far the largest share.
or helping the economy or helping households.
All these funds are pooled in one place, the so-called SOS Fund, and
then funded from here.
The sources for this fund will vary widely.
Nominally, of course, partly from the budget, partly from European grants,
partly from repayable resources.
Then there's classic borrowing
and credits of individual multilateral banks?
By the way, these days the Ministry of Finance is intensively holding
responsible talks with both the European Investment Bank and the
European Bank for Reconstruction and Development, because it is going
to use their credit lines, which offer us relatively favourable
credits, precisely because all these institutions have actually
recognised the critical nature of this natural disaster.
In addition, it is also likely to be backed up by some additional new
resources. We will pay very close attention to donations.
In this respect, we will also be making a number of changes in the
coming weeks and months to make donations much more attractive than
they are today. I am talking fiscally, so on the one hand,
this fund will be replenished from various repayable and non-repayable
sources, but on the other hand, as I said, everything will be financed
through this fund.
There are several reasons for this.
One is transparency.
We want to make it very clear who is going to finance
this fund, from whatever source.
Of course, these funds can only be used for remediation.
On the other hand, of course, we also make no secret of the fact that
the reason for the creation of a special fund is the European rules
on borrowing in this respect, so in this context, of course, we have
been studying for some time now, actually since the flood itself, and
we are intensively studying the creation of similar funds abroad.
The German fund of 2002 is a case in point.
The main questions is how will this fund and the resources
in this fund have an impact on the budget deficit, how will it be dealt
with? There will be many discussions with the European
Commission. So these are all reasons why we go into a special
fund. But as I said, the details are by no means finalised.
SID Bank will play an important role here, in particular because of
its experience in grant and repayment mechanisms.
Far from being the sole or independent manager of this fund,
SID Bank will in fact be in a merged body that we will set up.
Thank you very much, Minister.
Metka Majer.
Minister, could you perhaps tell us about this Solidarity Saturday and
this compulsory contribution?
What financial impact are you hoping for?
I would not make any predictions in advance.
The estimate is between 100 and 150
million a year.
What about the whole fund?
In reality, it is very difficult to say - we do not even have a precise
calculation of the consequences of natural disasters.
At the moment, we are talking about a natural disaster of over
five billion. So it is difficult for me to say what it will be and,
of course, how it will be financed through years, but at the end of the
day, these first steps will be as accurate an assessment of the damage
as possible. And in parallel, of course, we are already working on
the resources for this fund. But of course the exact figures are not yet
known.
Thank you very much, Minister, and now I thank you and invite the other
two Ministers, Minister Ajanović Hovnik and Minister Brežan,
to join us on stage.
Metka Majer, POP TV, has a question for you.
We are very comprehensive,
but there are still various questions that arise.
Solidarity Saturdays, are voluntary if you don't
pay a compulsory contribution.
Can companies choose
which Saturday they work on?
Or are we talking about a second Saturday in a month?
Which Saturday are we talking about?
It is as you mentioned. Two options are available.
One is a compulsory contribution, which can be replaced by a voluntary
Saturday. Which one will it be this Saturday?
The company will make a voluntary decision together with the
employees, and the same next year if it chooses this option.
Why two options?
This is mainly because we have found that not all companies in all
sectors are in the same position and that many find it very difficult
to organise their work.
Sixth or seventh day of the week.
Okay, now maybe one for you, Mr Brežan.
Of course, the exact damage will now become clearer in the
coming days, at the beginning of the month, but perhaps as far as
those people who have been left without everything are concerned.
There are a few hundred who cannot return home at the moment.
What do you have planned here?
What can these people who cannot go home and may not even be able to, do?
What are the plans?
First of all, it must be said that these people have been provided with
alternative housing, either through the civil protection system or
through local communities or through the social network.
And that is what is crucial at this moment.
That is to say, no one is homeless.
And of course we are concerned about how these people will now be
able to get access to alternative land.
We have a measure that is already provided for in the current building
legislation, in Article 4 of the Building Act.
It is possible to identify certain areas in the municipality for
temporary replacement housing that are not currently designated for
building in the municipal spatial plan.
And it can be done on a temporary basis for three years.
And this is one of the measures that the State, together with the
help of the municipalities, can of course take.
The second option, which we are introducing with the Intervention
bill, is a municipal detailed spatial plan for the regeneration of
these places. Here, however, we will be able to come up with land
through a mechanism that is already established, which the
municipalities are also familiar with, like the municipal spatial
plan, possibly in combination with Article 4 of the Building Act,
so that temporary land is provided through it
and then through the municipal spatial plan for
reconstruction, there is a permanent possibility for
people to live there.
This municipal detailed spatial plan is a faster procedure than the
one currently foreseen in the current legislation.
However, it still introduces landscape design or urban design to
ensure that, for such permanent settlements, for new settlements
that would be created in areas at risk, we will ensure that these
areas are nevertheless of a habitable quality and that they will
provide some long-term accommodation for the inhabitants.
Of course, we are counting on help and working hand in hand with
the municipalities, because they know their areas very well and that
is it, those are the two options that we have for this.
POP TV is still with us remotely.
Anže Božič. One last question, because we are very exhaustive and
we have been here for an hour already.
So, Anže Božič.
One question for Minister Sanja Ajanović Hovnik, please.
I would like to revisit the SOS Fund.
Is the basis for funding this fund
the 300 million that the state has earmarked for next year, I believe,
for aid, and which you have somehow reallocated from the budget
otherwise earmarked for the recapitalisation of companies in the
energy sector.
I cannot say exactly.
But the fact is that the 300 million was allocated in the
so-called B balance, so there is a high probability that the 300
million will be reallocated to this fund.
But as the Minister said earlier, he has given details of what the
resources are and where they will come from.
It is not yet clearly defined and will be known and presented in the
very near future.
I would just like to complement Anže Božič by asking him to send this
question to the Ministry of Finance, because I think it has gone
into the budget reserve, so that we do not accidentally misspeak.
To provide a clear answer, please send the question in writing.
Thank you all for being with us.
Have a nice day, goodbye! -Thank you.