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Republic of Slovenia The Government of the Republic of Slovenia Andrej Horvat, Brussels, 6th October, 2010 What to do in Crisis? A Place Based Intervention.

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Presentation on theme: "Republic of Slovenia The Government of the Republic of Slovenia Andrej Horvat, Brussels, 6th October, 2010 What to do in Crisis? A Place Based Intervention."— Presentation transcript:

1 Republic of Slovenia The Government of the Republic of Slovenia Andrej Horvat, Brussels, 6th October, 2010 What to do in Crisis? A Place Based Intervention on Regional Level Dr. Andrej Horvat

2 1 Contents Slovenia in EU context Situation in Pomurje Region… …and Place-Based Intervention What have we learned? Andrej Horvat, Brussels, 6th October, 2010

3 2 SLOVENIA IN EU CONTEXT Andrej Horvat, Brussels, 6th October, 2010

4 3 Republic of Slovenia Constitutional Charter on the Independence and Soverignty of the Republic of Slovenia was proclaimed on 25. June 1991 The Constitution of the Republic of Slovenia was proclaimed on 23. December 1991 Member of EU1 May 2004 Introduction of the EUR1 January 2007 GDP per capita (2007) 17.076 Area (km2) 20.273 Population of RS (2008)2.040.934 CapitalLjubljana

5 4 2007-2013: SLOVENIA IS ONE CONVERGENCE REGION NUTS-2

6 5 WESTERN SLOVENIA EASTERN SLOVENIA 210 MUNICIPALITIES - NUTS 5 12 DEVELOPMENT REGIONS - NUTS 3 2 COHESION REGIONS - NUTS 2 Regional divisions of Slovenia

7 6 Regional Development Agencies Andrej Horvat, Brussels, 6th October, 2010

8 7 SITUATION IN POMURJE REGION

9 8 What happened in Pomurje region in 2009? Unemployed by education level Source: Marko Močnik, Pomurje Technology Park New bankrupt companies: Mura, Pomurka, etc

10 9 What happened in Pomurje region in 2009? Additional 3457 unemployed Source: Marko Močnik, Pomurje Technology Park Structure of unemployed

11 10 Level of registered unemployment Dec.08Dec.09DifferenceJan.10 G.Radgona11,015,44,416,2 Lendava14,322,77,423,4 Ljutomer10,516,66,117,1 M.Sobota13,822,38,523,1 OS M.Sobota13,220,47,221,1 Slovenija7,010,33,310,6 Andrej Horvat, Brussels, 6th October, 2010

12 11 Pomurje region – NUTS 3+

13 12 THE PLACE BASED INTERVENTION Andrej Horvat, Brussels, 6th October, 2010

14 13 Paradigm SHIFT? Van Run, Pieter (1987); The integral structural plan for the North of the Netherlands (ISP); Memo Johnson, Thomas G. (2007); Place-Based Economic Policy: Innovation or Fad?; Agricultural and Resources Economics Review. Barca, Fabrizio (2009); An Agenda for a Reformed Cohesion Policy, A place-based approach to meeting European Union challenges and expectations; Commissioner for Regional Policy, April 2009. Romer, Paul (2010); Technologies, Rules, and Progress: The Case for Charter Cities. Pezzini, Mario (2010); OECD Own Experience, (1997-2009)… Andrej Horvat, Brussels, 6th October, 2010

15 14 THE ACT REGULATING DEVELOPMENT SUPPORT TO THE POMURJE REGION IN THE PERIOD 2010–2015... immediate and coordinated action of all Government policies, not only of the regional policy... Andrej Horvat, Brussels, 6th October, 2010

16 15 Law adopted in the Slovene Parliament in October 2009; in action with 1st January 2010 Start of the new regional policy in Slovenia, based on Place Based Policy Analysis of programmes and projects showed following comparative advantages of the Pomurje Region, that may be supported by public means: - geothermal energy and other renewable energy sources, - sustainable and competitive agriculture, food-processing industry and rural development, - tourism, - logistics. Andrej Horvat, Brussels, 6th October, 2010 Law on Pomurje region

17 16 Measures in the Act 1.Programme to foster competitiveness of the Pomurje region in the period 2010–2015 2.employment incentives 3.tax relief applicable to investments 4.Priority treatment of programmes and projects in the Pomurje region competing for funds from national programmes, European cohesion policy and rural development policy. Andrej Horvat, Brussels, 6th October, 2010

18 17 Programme to foster competitiveness of the Region (33 M) A combination of different instruments is/will be used to mitigate the consequences of the financial and economic crisis and, in a period of six years, directly create 1,000 new jobs. The programme consists of the following instruments: I. encouraging corporate investments and the creation of new jobs II. encouraging human resources development III. promoting social entrepreneurship IV. promoting the region to attract new domestic and foreign investors V. support in the preparation and implementation of new development projects in the region Andrej Horvat, Brussels, 6th October, 2010

19 18 Employment incentives and Tax relief for investments in the Pomurje Region 1. An employer that employs a deprived worker in the Pomurje region for a period of twelve months may claim a reduction of the tax base of 70% of the costs incurred for that worker. An employer that employs a deprived worker for at least two years shall be reimbursed for social security contributions paid for that period. 2. An employer may, for investments made in the period 2010–2015, claim a reduction of the tax base of 70% of the amount invested in equipment and intangible assets. Andrej Horvat, Brussels, 6th October, 2010

20 19 Priority Treatment of programmes and projects related to EU Cohesion Policy INVESTMENTS IN: 1.establishing an inter-company education centre (IEC) in the approximate amount of EUR 2 million 2.establishing a regional economic centre in the Pomurje region in the approximate amount of EUR 30 million 3.restructuring and increasing the competitiveness of agriculture and forestry, and the food processing industry, and diversification into non-agricultural activities in the Pomurje region in the approximate amount of EUR 40 million 4.drinking water supply infrastructure in the Pomurje region in the approximate amount of EUR 98 million. Andrej Horvat, Brussels, 6th October, 2010

21 20 MEASURES YEAR 201020112012201320142015 Total Programme to foster the competitiveness of the Pomurje region 6.000.000 5.000.000 33.000.000 Reimbursement of social security contributions paid by employers11.500.000 69.000.000 Inter-Company Education Center1.000.000 2.000.000 Projects of the regional economic centre in the Pomurje region 2.000.000 3.000.0004.000.0007.000.000 30.000.000 Rural Development Programme 5.000.0008.000.00010.000.0009.000.0004.000.000 40.000.000 Drinking Water Supply Infrastructure3.000.000 11.000.00020.000.00021.000.000 20.000.00015.000.00090.000.000 TOTAL28.500.000 40.500.00051.500.00053.500.000 47.500.00042.500.000 264.000.000 APPROXIMATIONS… 2010-2015 Andrej Horvat, Brussels, 6th October, 2010

22 21 Implementation framework Place Based Intervention of the Government represents following institutions: 1.Inter-ministerial Commission 2.Government Bureau in the Pomurje Region 3.Project Unit of the Government Office for Local Self-Government and Regional Policy 4.Regional Development Agency. THE BUREAU IN THE REGION; It involves temporary operation of the Government in the Pomurje region The Office is headed by a State Secretary from the Prime Ministers Cabinet, and the necessary political mandate is assured for the purpose of concerted action of the state and region in dealing with a number of pending development issues. Andrej Horvat, Brussels, 6th October, 2010

23 22 Sector and programme coordination Cases Andrej Horvat, Brussels, 6th October, 2010

24 23 WHAT HAVE WE LEARNED? Andrej Horvat, Brussels, 6th October, 2010

25 24 Paradigm shift in regional policies Source: Mario Pezzini, OECD Andrej Horvat, Brussels, 6th October, 2010

26 25 Registered unemployment rate by administrative unit (NUTS 4); Dec 2009 Andrej Horvat, Brussels, 6th October, 2010

27 26 Average accesibility to Highway in minutes (NUTS 5) Andrej Horvat, Brussels, 6th October, 2010

28 27 Economic and social consequences of the economic crisis are especially strong represented in the less developed areas. A temporary place based intervention of the Government can show immediate results for the businesses. However, one should be very carefoul when intruducing such an area- based lex specialis, mainly due to the budget reasons. In Slovenia a new Act on Balanced Regional Development will be presented to the Parliament. It contains also a posibility for a Placed Based Intervention, based on two criteria: (1.) border areas with economic problems (2.) areas with high level of unemployment. What have we learned? Andrej Horvat, Brussels, 6th October, 2010

29 28 Potential areas of place based intervention in Slovenia 44,7% of territory, 20,6% of population, 10,4% of employed, 8,6% of value added, 6% net profit. Andrej Horvat, Brussels, 6th October, 2010

30 29 Dr. Andrej Horvat State Secretary Republic of Slovenia Office of the Prime Minister andrej.horvat4@gov.si Andrej Horvat, Brussels, 6th October, 2010


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