Slovenia's economy too inflexible

The refrigeration technology specialist Secop is planning to cut 700 of the 1,000 jobs at its Slovenian factory in Črnomelj and shift production to a plant in Slovakia. For the daily Delo the move showcases the basic problems the Slovenian economy faces: "Slovakia has lower taxes, somewhat lower salaries (so far) and is generally more reform-oriented, more competitive and more business-friendly than Slovenia. For that reason foreign investors increasingly avoid Slovenia. There has been not a single large direct foreign investment under the current government that could create additional jobs. As the director of the Slovenian Chamber of Commerce said in an interview in the Saturday edition of Delo, the Japanese think our economy is too inflexible, too expensive and too slow. That's why they've already established 200 companies in Slovakia, but just one here in Slovenia."

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