Minister Han and Swiss Federal Councillor Parmelin on strengthening economic cooperation

Minister Han expressed his satisfaction with the visit of Swiss Minister of Economic Affairs Guy Parmelin to Ljubljana, noting that it came just one year after his own visit to Switzerland. He highlighted this as a confirmation of the excellent relations between the two countries and their shared commitment to strengthening cooperation.

Minister Han said: “This second meeting in two years speaks of the strong friendship between Slovenia and Switzerland and the excellent economic cooperation, which we are eager to further expand also beyond the pharmaceutical sector. Today’s visit reinforces Slovenia’s position as an attractive destination for high-tech investments, with a special focus on opportunities in the space industry and joint projects within the European Space Agency. On this occasion, we also signed the Support Measure Agreement under the second Swiss Contribution, marking an important step forward in strengthening cooperation between the two countries. We also exchanged views on the current economic situation and global challenges, such as transatlantic trade policy. I am confident that we will continue to upgrade and expand our cooperation in the years to come.”

The Ministers also discussed current developments in both the European and global economies, agreeing that trade wars benefit no one and should be avoided. Minister Han underlined that Slovenia is committed to maintaining and further strengthening its appeal as a destination for investment and high-tech activities. Slovenia currently offers tax breaks for investment in research and development, as well as financial incentives for investments in Slovenia that increase added value. Additionally, the country provides non-repayable and repayable financial support for the development of companies in Slovenia. The country has significantly increased investment in science and the education system. Slovenia is distinguished by its highly skilled workforce and is also accelerating investment in infrastructure.

During his visit, Minister Parmelin expressed his satisfaction with the fact that the two countries are deepening their cooperation: “I am delighted to be visiting Slovenia, a country that shares many common characteristics with Switzerland. The signing of the agreement on the energy programme within the second Swiss Contribution marks an important new step in our cooperation. I particularly welcome the topic chosen by our Slovenian partners, namely the transition from fossil fuels to renewable energy sources. As Alpine countries are strongly affected by climate change, we must work together and take concrete action. I am confident that the joint programme, which also includes the development of local energy communities and pilot projects in the field of photovoltaics, will deliver concrete solutions and mutually beneficial experiences.”

The ministers agreed that there are numerous opportunities for further deepening economic cooperation. In addition to pharmaceuticals and space technologies, there are also opportunities for cooperation in other economic areas, such as logistics services, investments in the food processing industry, construction, renewable energy sources, solutions for digitisation and circular economy, information and communication technologies, including artificial intelligence, and electromobility.

The ministers also met with the Prime Minister of the Republic of Slovenia, Dr. Robert Golob, and visited the companies Lek and Novartis, where they were briefed on the situation and plans of both global pharmaceutical companies. As part of their visit, they signed the Support Measure Agreement on support measures under the second Swiss Contribution in Slovenia.

Second Swiss Contribution in Slovenia

Slovenia is eligible to a total of CHF 16 million from the second Swiss Contribution. The Support Measure Agreement – an essential step for launching the implementation of the second Swiss Contribution – was signed on behalf of Slovenia by the Minister of Cohesion and Regional Development, Dr. Aleksander Jevšek. The Ministry of Cohesion and Regional Development acts as the managing authority for the second Swiss Contribution in Slovenia.

“Following the signing of the Framework Agreement on the implementation of the second Swiss Contribution in August 2023, today’s signing of the technical agreements establishes all the necessary legal bases for the implementation of the Contribution and calls for proposals. The available CHF 16 million will be allocated to enhancing energy efficiency and promoting renewable energy in Alpine regions. This strategically important programme will help reduce greenhouse gas emissions, increase energy independence of regions and the country, and promote the sustainable development of local communities,” underlined Minister Jevšek.

The Support Measure Implementation Agreement was signed by Minister Jevšek and Minister of the Environment, Climate and Energy mag. Bojan Kumer, as the Ministry of the Environment, Climate and Energy is the responsible authority for the programme and the implementation of related calls for proposals. 

Slovenia: a key player in the global manufacture of medicinal products

In recent years, Slovenia’s pharmaceutical industry has established itself as a key player in the global manufacture of medicinal products. Over the past two decades, exports of pharmaceutical products from Slovenia have grown significantly – from €2 billion in 2010 to €18.7 billion in 2024, while the industry’s gross value added has doubled over the same period. The industry now accounts for more than 6 percent of Slovenia’s gross domestic product (GDP) and directly employs more than 12,000 people. Switzerland played a significant role in this growth, particularly through Novartis and its generics division, Sandoz, which was spun off into a separate company in October 2023. Excluding the acquisition of Lek, the two companies have invested more than €3.5 billion in Slovenia over the past two decades. Including Lek, the total investment amounts to €5.5 billion, making Slovenia an indispensable partner for Switzerland’s two most prominent pharmaceutical companies.

Sandoz recognises Slovenia as one of its key strategic locations where the company continues to make a significant impact. With over 3,700 employees, Lek already provides comprehensive services within the Sandoz portfolio, including early development and production of active pharmaceutical ingredients and medicines, as well as packaging and distribution of finished products to various markets worldwide. With additional investments in the field of similar biological medicines (an investment in Lendava in a new factory for the production of active ingredients worth over USD 400 million and an investment in Ljubljana in a new development centre worth USD 90 million), Lek is becoming the most important and largest Sandoz site globally.

Similarly, Novartis employs nearly 4,000 people in Slovenia through two companies, Novartis d.o.o. and Novartis Pharma Services, operating in Ljubljana and Mengeš. Novartis develops, manufactures, and markets innovative medicinal products. With a 10 percent market share, Novartis is the leading pharmaceutical company in the Slovenian market. Novartis currently has around €500 million in investments underway in Slovenia, the largest of which are the construction of an aseptic production facility in Ljubljana and an investment in a centre for the technical development of biological medicines in Mengeš.

Economic cooperation with Switzerland

Economic cooperation with Switzerland is of great importance for Slovenia. In recent years, we have seen a sharp upward trend in mutual trade. Trade in goods reached €36.9 billion last year – an increase of 51 percent compared to the previous year. Of this total, exports amounted to €20.7 billion (an increase of 37.9 percent), and imports reached €16.2 billion (an increase of 73 percent). Trade in services totalled €1.08 billion in 2023, comprising exports of €799 million and imports of €282 million.

The strong trade in goods is primarily driven by the pharmaceutical industry’s significant processing of goods, which plays a leading role in bilateral economic cooperation. Slovenia is also a crucial market for Swiss exports, ranking third among Switzerland’s most important trading partners in 2024, according to data from the Swiss Federal Customs Office (positioned behind Germany and the United States, and ahead of Italy, China, and France).

Switzerland is Slovenia’s most important foreign trade partner in terms of both exports and imports, and ranks as the third-largest investor in the Slovenian economy (or fourth by country of investor origin). Swiss direct investments in Slovenia reached €2.44 billion in 2023, marking a 7 percent increase compared to the previous year. In contrast, Slovenian investments in Switzerland totalled €18.7 million, accounting for 0.2 percent of Slovenia’s total foreign investments.

In the field of tourism, Slovenia welcomed 82,580 tourists from Switzerland last year, marking a 10 percent increase compared to the previous year. These visitors spent a total of 179,025 nights in Slovenia, representing a 15 percent rise. Swiss tourists accounted for 1.6 percent of all foreign visitors to the country.