Official Journal of the Republic of Slovenia no. 10 / 30 January 2003 / Page 1541

335. Medium-Term Programme of Statistical Surveys 2003–2007

Pursuant to Article 23 b of the National Statistics Act (Official Journal of the Republic of Slovenia nos. 45/95 and 9/01), the Government of the Republic of Slovenia adopted the following

MEDIUM-TERM PROGRAMME OF STATISTICAL SURVEYS2003–20071

1. AUTHORISED PERFORMERS OF THE NATIONAL STATISTICS

The authorised performers of the Programme of Statistical Surveys for the 2003–2007 period are the following: Agency of the Republic of Slovenia for Public and Legal Records and Services, The Bank of Slovenia, The Institute for Health Protection of the Republic of Slovenia, Ministry of Finance, Pension and Disability Insurance Institution of Slovenia, Employment Service of Slovenia and Health Insurance Institution of Slovenia.

In the medium-term programme, the performers are stated in individual policies and in the annual programmes in each statistical survey.

2. STRATEGY OF THE SLOVENIAN NATIONAL STATISTICS UNTIL THE END OF 2007

Mission National statistics provides the public administration bodies and organisations, the economy and the general public with quality and timely data on the situation and movements in the economic, demographic and social spheres and in the areas of the environment and natural resources. These data are comparable in time, among places and internationally. Data for national needs and international dissemination are provided at optimal costs. Taking into account the statistical confidentiality, it keeps building the users' trust and keeps strengthening the professional autonomy.

Vision- user orientation- mastering the quality in national statistics- competent and motivated staff - constant harmonisation with the international, and above all the EU standards - modern approaches to data collection, data processing and data dissemination - research work and innovations - improvement of working conditions

Values - the importance of users- trust gained on the part of all participants (data users, data providers and producers of statistics) - independency of the Office and profession- respect for privacy- knowledge and experience- high quality of statistical products and services - work in interdisciplinary teams/working groups - user-friendly environment

1 This Programme is published on the websites of the Statistical Office of the Republic of Slovenia: http://www.sigov.si/zrs/slo/spr03-07.doc.

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Long-term objectives- fulfilment of needs of users on national level- fulfilment of EU requirements (i.e. dissemination), especially those related to acquis communautaire- fulfilment of users’ requirements by presenting statistics of high quality, improving of the quality of services, especially timeliness, comparability, usefulness and reliability of data and transparency of methodological approaches and limitations - harmonisation of the methodological base within Slovenian national statistics (Statistical Council of RS, Statistical Advisory Committee of RS) and internationally - improvement of competency and readiness of reporting units to provide data by introducing new data collection technologies and by making excessive use of compiled data (records in public administration and enterprises)- further development of register-oriented statistics- project management, operational management and programme management- increase of the administrative competency and institutional strengthening- cost-benefit

3. THE BASIS AND THE FRAMEWORK OF NATIONAL STATISTICS ACTIVITIES IN THE 2003–2007 PERIOD

Expansion of the European Union, great dynamics of changes in the global economy, world-wide networks with large quantities of data, changes in the attitude towards data protection after September 11 in the USA and the rest of the world, influences of the society on the methods of collecting and disseminating data and potential competitive environment for the monopolistic national statistical institutions, use of data for supporting policies in operative as well as strategic decisions – all of this will impact the tasks of the national statistics in the period to come.

After Slovenia joins the EU and the Slovenian national statistics fully assume the liabilities stipulated by the EU legislation in this field and by other gentleman’s agreements, this will impose additional tasks and result in even more work.

Some of the events will have particular influence on the needs for statistical data in the next medium-term period:

- new regional breakdown of the territory of Slovenia and required supports to the structural policies;

- elimination of the economic border will influence collection of statistical data on foreign trade, data on the flow of goods, capital, labour force and population in general and those in other areas;

- preparations and inclusion in the monetary union will require even more consistent compliance with the requirements set by the European Central Bank as regards the expansion of the range of statistical indicators and the timeliness and quality of data;

- transition to the Euro will require substantial and technical adaptations of the statistics activity;

- when Slovenia becomes part of the European Union, material and financial sources, which are partially covered by the pre-accession programmes (Phare) at the moment, will have to be compensated for.

4. PRIORITY TASKS UNTIL THE END OF 2007

The priority task of the Republic of Slovenia is to join the European Union and its vision, written in Strategy for Economic Development of Slovenia, is a knowledge-based society with internationally competitive economy and a sustainable, regionally balanced development. Strategy for Economic

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Development of Slovenia2, The National Development Plan 2001–20063, The Community Statistical Programme 2003–20074 and other statistical requirements for data confirmed by gentleman's agreements5, represent the fundamental documents on the basis of which the policies are presented in the medium-term programme. The priority tasks of the national statistics for the medium-term period under scrutiny are the following:

- Structural indicators for measuring the progress of the EU Member States and the candidate countries in the fields of employment, innovations and research, economic and social cohesion and environment. Most of the data were already required in 2002, such as for example general economic indicators, labour market indicators, innovations and research & development, economic reforms, social cohesion and environment. In 2003 the list will be extended so as to include the demography of businesses, indicators of knowledge-based society, e-government, e-commerce, etc.

- Short-term indicators are mostly comparable in the European area in terms of substance, although the scope of indicators has to be expanded and the accuracy and quality of data improved. Once in the European Union, the promptness of data, especially for the needs of the ECB, will be required for which the introduction of European patterns and direct collection of data as well as more assessments and estimations of data will be needed. Better co-operation between the authorised performers (SORS, BoS and MF) will be required in the Slovenian national statistics and also the use of all administrative and especially tax data for the needs of statistics. But what is the most important of all is the need to monitor economic movements in the field of market service activities.

- Quality and transparency of macroeconomic aggregates, further upgrading and development of the system of economic accounts according to ESA, including price statistics and especially methodological transparency of macroeconomic aggregates (defined in the last EU report on the progress made by Slovenia for the accession to the EU) are only some of several complex and demanding tasks in this field. In view of data sources it is essential that tax data are obtained immediately and that co-operation with the MF and the BoS is harmonised.

- For the needs of structural business statistics it will be crucial to upgrade the statistical register of enterprises and combine various also individual sources for fulfilment of the demanding legislation in this area. Continuous electronic collection of data on enterprises as well as the use and linkage of administrative sources of data will reduce the need for introduction of comprehensive questionnaires.

- Intrastat, serving as transition to the collection of data on trading of goods directly from the enterprises after the abolishment of the customs border, has already started in 2002 as a pilot project and will become also for Slovenia the obligatory method of collecting data on trading of goods between the Member States. The success of the project will depend primarily on adequate provision of human resources in SORS and CARS (Customs Administration of the Republic of Slovenia) until the time Slovenia joins the EU and also on the availability of adequate tax data, necessary for keeping and managing the register of enterprises trading within the Community.

- In the EU the requirements for social statistics are increasing. In spite of significant progress achieved by Slovenia in this area, a comprehensive survey (SILC) is planned in the next medium-term period, aimed at discovering the needs for data on certain social states of the population, which cannot be obtained from the registers. Important areas of statistics include structural statistics on earnings and on labour costs and lifelong education.

- The use of data obtained by the 2002 Census of population, households and housings, which includes the preparation of census bases, publications and other forms of

2 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6.3 The National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6.4 Community Statistical Programme 2003–2007, Brussels, 28. 11. 2001, COM(2001) 683 final.5 Statistical Requirements Compendium, Eurostat 2002.

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dissemination of census data, as well as co-operation in the use and dissemination of census data with our neighbouring and other, foremost European, countries.

- Environment statistics are becoming more and more comprehensive and complex. Precise alignment with the Ministry of the Environment and Spatial Planning will also be required as well as joint monitoring and preparation of numerous indicators.

- Agriculture is also an area that will continue to increase its demands in the next medium-term period for more and more precise and quality data, due to which a closer co-operation will be required with the Ministry of Agriculture, Forestry and Food. It is extremely important that the administrative sources, promised by the law, be aligned and prepared for the use also for statistical purposes, besides their original purpose which is support for the implementation of agricultural policy.

- Public administration and monitoring of the social service sector are statistically relatively poorly covered areas, not only because of increased importance of services in general and especially in the process of joining the EU but also for national needs, this area of statistics requires special attention due to the foreseen privatisation and transition to concessions.

- Information society, new economy, knowledge-based society, understanding of network economies, innovations are the so-called “cross-sectional areas” which are covered quite poorly also in the developed national statistics of the European Union. Incomplete theoretical and conceptual frameworks can also be found in certain areas which is why it is necessary to improve co-operation between the statistical experts in various fields and participation of scientific and research areas.

- Institutional strengthening is the result of projects which foresee better quality and more efficient functioning of the national statistics activity itself and its inclusion in the national administration both in Slovenia and internationally (STAT 2000, drafting a Bill on integrating records, the project of setting up a register of housings and a register of households, the E-CORE project – electronic data collection of public sector).

5. ASSUMPTIONS AND CONDITIONS OF FUNCTIONING OF THE SLOVENIAN NATIONAL STATISTICS IN THE NEXT MEDIUM-TERM PERIOD, IN SLOVENIA AND INTERNATIONALLY

- The rules of functioning and co-ordination in national statistics activity, in Slovenia and internationally;

- the legal right to obtain individual data by means of identification for the purposes of the National Statistics Act will be exercised;

- by joining the EU, the Slovenian national statistics will be able to actively influence the drafting of statistical legislation by participating in the adequate committees (in line with comitology) and boards and obtain new know-how in the process of integration in the statistical networks of the EU system;

- interaction and influence of the statistics on the administrative sources will strengthen in the public sector, private enterprises, in e-trading and also broader environment;

- other public and national institutions (such as the Customs Administration of the Republic of Slovenia, the Agency of the Republic of Slovenia for Public and Legal Records and Services) will participate in the tasks of data collection (also for the needs of the national statistics);

- specialised possibilities offered by other institutions, such as the Chamber of Commerce and Industry of Slovenia and other chambers which can provide specific elements for different users will be used mainly in the field of dissemination as well as in data collection;

- the national statistics activity will have to be promptly included in the drafting of bills and other documents for national and international needs which will foresee the need for data;

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- the role of the Statistical Council of the Republic of Slovenia and other Statistical Advisory Committees of RS as important elements of quality management and inclusion of users in the work of national statistics;

- development of an total quality management with the emphasis on knowledge and satisfaction of employees, providers and users of data, management and efficient process of producing statistical data as well as quality management of statistical data and the related services;

- development and upgrading of quality criteria are foreseen (such as timeliness, coherence, accuracy, international comparability, etc.) and preparation of performance indicators used for measuring the efficiency of these criteria in terms of quantity as well as in qualitative studies of user and employee satisfaction;

- education and training in the field of statistical knowledge and management, information technology and other specialized know-how (rhetoric, foreign languages), besides the regular educational programmes (especially master’s and doctor’s degrees) will be one of the most important factors of quality development of the Slovenian national statistics also in the next medium-term period;

- incorporation of scientific and research activities in the work of national statistics on the assumption of exchange and upgrading of knowledge and common products for users;

- for the purposes of assuring safety and protection of data, improvement of working conditions and streamlining of SORS operations, new premises are planned in 2004 at the latest;

- maintenance and development of technological equipment, mainly by the use of modern information technology for modernization and streamlining of collection, processing and dissemination of statistical data and international segregation of duties in the framework of statistical offices;

- the number of authorized performers of the national statistics will not increase significantly, which is why more tasks will be assigned to other contractors (outsourcing);

- in view of the budget reduction policy, the human and financial resources will be very limited and therefore major organizational, technological and substantial efforts will be required to improve the rational functioning of national statistics activity.

6. ORGANISATION, HUMAN AND FINANCIAL RESOURCES

Pursuant to Article 2 of the National Statistics Act, the authorised performers must carry out the national statistics activity separately, which means that they must have an independent statistical unit. The scope of its operating and human resources must ensure uninterrupted implementation of the statistical programme. Reinforcement of the statistical units are necessary at the Ministry of Finance and the Institute for Health Protection of the Republic of Slovenia.

The required financial resources are formed on the basis of funds needed for statistical support of the policies, statistical infrastructure projects and development of maintenance for those systems supporting these policies.

The activities or the functions of SORS are financed almost entirely from the state budget. The funds from international subventions and own activity are quite low. The authorised performers, covering about one quarter of the entire activity, have different sources of funds. Statistical surveys carried out by these performers cover the national and international requirements for such data and also the needs of the authorised performer for carrying out own activity.

Available financial resources will be distributed according to programme priorities. Other areas will be maintained at such level that needs will be satisfied. Taking into account the development of statistical activity and reduced funds from the Phare programme, it is quite possible that the anticipated level of resources will not suffice for fulfilling all requirements. Any needs for

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postponing various tasks for these reasons will be stated in individual annual plans of statistical surveys.

7. THE CONTENTS OF THE MEDIUM-TERM PROGRAMME OF STATISTICAL SURVEYS IN THE 2003–2007 PERIOD

The contents under items 9.1 to 9.7 represents support to the policy of total quality management of statistical products and the related services. SORS and the authorised performers of programmes of statistical surveys are introducing modern approaches to the total quality management and performing of the assigned tasks (in the environment and within the statistical system). These ensure regular functioning from the scientific, conceptual, methodological and technological points of view and offer support for further development.

7.1. Quality management in the system of national statistics in Slovenia6

The Eurostat Working Group for Quality in Statistics recommended as the most appropriate model of quality assurance7 in the official statistics the EFQM (European Foundation for Quality Management)8.Considering the recommended conceptual quality framework, SORS is developing the quality area within four main pillars:

1. Data users and providers2. Human resource development3. Quality of statistical products and services 4. Process orientation

In order to be able to manage these four pillars of quality, modern management approach is required at all levels, taking into account:

- the balancing of needs of various interest groups (users, data providers, employees, activity financers and society as a whole),

- users as judges of quality and importance of establishing their current needs and anticipating their future needs,

- behaviour of the management, which influences the culture in the entire organisation,- understanding and transparency of processes and communication with the environment and

among the employees,- common values and organisational culture, including all the employees,- quality operations, related to the culture of lifelong learning, innovations and development- good relations with partners,

6 More information on total quality management in national statistics can be found in the master’s thesis written by I. Križman: The role of data users in the total quality management in national statistics, master’s thesis, FDV, Ljubljana 2002.7The quality of official statistics can be ensured through the following stages:

- establishing the needs of users,- formation and implementation of the needed changes in the process,- functioning and measuring the quality of the system (system functioning indicators),- dissemination of data on quality and reassessment of the gap between the achieved and the required

standards. 8 EFQM is a tool for establishing and developing quality according to five criteria (leadership, strategies and plans, human resources management, co-operation and sources and processes) related to the organisation of work (Enablers). The other four criteria (user satisfaction, employee satisfaction, impact on the society and comparison with the business environment, business results) describe achievements of the organisation (Results). These criteria represent a basis for establishing the progress of the organisation.

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- ethical and generally accepted social rules, including statistical confidentiality and data protection and security.

In the next medium-term period, a more detailed plan of introducing quality will be prepared, including the indicators of the national statistics system functioning. It is also assumed that the external quality audits will remain the principal part of the regular quality inspections in the European statistical system.

SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)The SWOT analysis of the Slovenian national statistics with the emphasis on the Statistical Office of the Republic of Slovenia as the principal performer and co-ordinator of the entire system represents one of the starting points for the formation of quality policy of the official statistics in the next medium-term period.

StrengthsIn the last thirty years Slovenia has developed a concept of official statistics similar to that of the Nordic countries, based on infrastructural registers, generally agreed identifications and standard classifications as well as relatively organised environment of public sector records supported by information technology.Openness to the national and international environments is the second most important strategic orientation of the Slovenian official statistics. In order to manage the openness to the environment, adequate knowledge is required about mutual relations, team work and foreign languages. Active co-operation with the Ministries, organisations of public administration, the Chamber of Commerce and Industry of Slovenia and other authorised chambers in individual areas, private enterprises, academic and scientific areas of research and the media is organised in different ways. To ensure international comparability, the co-operation with international environment and implementation of standards in the framework of the European Statistical System (ESS) is especially important. Co-operation in the development of the ESS is organised by Eurostat and the EU Member States, which is a great advantage and a guarantee for improving international comparability of the Slovenian official statistics also in the future.

WeaknessesIntegration of Slovenia into the international environment at the same time brings along more and more obligations that have to be assumed by the low capacity Slovenian official statistics.

Any budgetary and employment limitations in this sense can represent serious problems. Statistics requires continuous and stable financing in order to be able to provide time series and monitor unique phenomena. It is also important to ensure resources for occasional extraordinary requirements (comprehensive surveys, censuses) which require significant additional funds besides the regular budgetary assets. Extra attention must also be paid to substitute financing of those activities which were until now covered by the EU programmes (national and bilateral programmes).

OpportunitiesIn the past, the Statistical Office has gained a lot from international co-operation, primarily in the framework of the European Statistical System. In the medium-term period (2004), Slovenia will become the member of the European Union. This will increase its obligations, but also the opportunities of the Slovenian official statistics to achieve better quality.

In Slovenia government incentives in the field of electronic collection offer new opportunities for co-operation in collection and dissemination of data in order to eliminate redundant and repeating activities in the public sector and overburdened units of reporting. Establishment of standard procedures in electronic collection of data is an opportunity but also a necessity for ensuring sources of data required for the implementation of national statistical programmes.

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ThreatsIncreasing level of non-response and lower quality of answers, especially in the business sector, are two serious threats.

The quality of statistics can also be influenced by its use for adopting daily political decisions. Insufficiently organised records at the EU level lead to exceptional expectations for fast and extremely detailed data. This is where the problems arise related to capability of providing timely data for all countries and the issue of dissemination and covering of data (at the lower levels of classifications and territorial distribution, especially in small countries such as Slovenia).

As the connecting role at the EU level is not strong enough, this results in additional burdening, since the requirements of different performers in the EU are not only submitted through Eurostat to the national statistics but also via individual Directorates General of the Commission to the Ministries. A more precise legal regulation of the role of European Statistical System is thus necessary9.

Main guidelines for implementation of approach towards total quality management in the 2003–2007 periodThe main guidelines are presented by means of the abovementioned four pillars of national statistics quality with the emphasis on the tasks of the Statistical Office of the Republic of Slovenia. The role of the quality will be strengthened in terms of organisational culture.

Users and providers of data Strengthening the role of Statistical Council of RS and Statistical Advisory Comittees of

RS; Searching connection between the two roles of those subjects who are at the same time

providers and users of data; A more detailed segmentation of users and adequate treatment Improving lists of users in order to ensure a quality service, required surveys and

satisfaction analyses; Development of methodological bases and monitoring user satisfaction at least once a year; Elaboration of a system of immediate feedback and response to any complaints submitted

by the users; Introducing modern approaches to dissemination, taking into account the diversified

requirements of the users (price policy, world wide web, written publications, bilingualism);

Training of users as part of educational plan; Determination of key reporting units and the strategy of their incorporation into reporting

system; Use of modern approaches in data collection (e-reporting, studying the art of asking

questions); Reducing requirements imposed on the observed units by increasing the use of

administrative and other sources of already available data will demand even better knowledge and management of data sources;

Exchange of adequate feedback information with data providers.

Development of human resources Development of human resources represents the main source of quality improvement and

is also covered by the new legislation in the field of employment and work in public administration.

On the basis of the adopted programme for training of statistical experts, more concrete annual educational plans will be prepared which will also include other areas (regular under- and post-graduate studies in IT, management and team work, rhetoric and

9 Such orientation was also supported by the Conference of Directors-General of the ESS DGINS in Palermo, September 2002.

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languages). Lifelong and constant learning will be part of employees’ obligations and besides their performance a condition for promotion. With annual plans on training, the Office will set conditions which the employees will have to fulfil to be part of the educational process.

The list of typical posts will be set up, together with job descriptions, required skills and evaluations.

Expert and management promotion will be treated and evaluated equally in public administration.

The Statistical Office will start to monitor career developments of the employees in a more systematic manner.

Those employees whose posts will be abolished or changed due to new technologies or any other reasons will be put on a list. If possible, such persons will be additionally trained and assigned new tasks and duties.

Methodological bases will be set up and employee satisfaction measured regularly.

Quality of statistical products and the related services Quality criteria must be defined for quantitative and qualitative measurement of final

product quality (statistical data and the related services). Besides the applicable EU legislation, the recommendations and standards, developed in the framework of quality group within the European Statistical System, national experience and best practices of individual countries will also be taken into account.

Data on quality include data on the process of producing statistical and other metadata. Standard reports on quality will gradually be produced for all major statistical surveys. Methodological approaches will be searched for submitting data on quality to internal and

external users.

Process orientation and management Statistical Office will strengthen its process organisation which has been under

development for several years. Such an organisation enables a unique input of data (questionnaires and administrative sources), data processing and statistical analysis, data exchange within the Slovenian statistical system and the ESS, as well as data dissemination to the users. All development projects, developed outside this concept, will be gradually incorporated in the standard processing environment.

Process organisation will strenghten rational segregation of duties and use of human and financial resources.

Teamwork and partner relations with all the interested parties will become the prevailing form of organisation in which the status of the leaders will be that of the first among the equal.

In line with the rules on quality management the basic processes will be determined, which is not important only from the point of view of processes management but also because of their transparency, being one of the quality criteria, and because of the traceability needed for data protection.

Rules for handling and decision-making at individual organisational levels will be prepared, covering individual subjects of the statistical system and their relations with data users and providers.

Action plan and planning must be based on real assumptions. In time, the dates of statistical dissemination and publications will be planned in advance. The rules on broader use of “macrostatistical publication” will be drafted and put into

practice.

7.2 Classifications

Classifications in the area of social statistics

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The more and more rapid technological, organisational and information development of the society is reflected on both economic and social area. Significant and fast changes in the labour market, need for skilled and mobile labour force, people’s desire to live a more quality life, be more informed, have more opportunities for education, access to funds needed for appropriate standard of living, all these result in creation of new social and economic phenomena. In the international sphere the sources intended for identification of these phenomena keep increasing. Lots of efforts are put in a simplified transformation of these phenomena into statistical and analytical concepts, formation of comparable methodologies, tools for their monitoring and dissemination, which are needed for their management and orientation, included in the substance of international and national policies (social policy and employment, education and training, free movement of persons). Among these tools, classifications are of extreme importance in the field of social statistics. Classifications help us organise and systematically monitor data and due to the globalisation processes classifications are becoming one of the most important instruments for defining complex phenomena (Dr Lea Berger, Statistical classifications and education, a UNESCO manual for the use of international standard classification of education, Isced 1997: Problems with the use of Isced 1997 in Slovenia; Book of abstracts; 2001)

The international institutions, such as UNESCO, OECD and Eurostat have set as a task related to the classifications in the social area to improve the use of revised international classification ISCED-97 and the manual on “education and training” (for monitoring of data on current education statistics and data on education structure). In line with the central theme of the statistics of education and training, represented in the international statistical programmes by the lifelong education, Eurostat will develop additional new tools in co-operation with CEDEFOP, namely, the classifications for monitoring various forms of lifelong education (classification of learning activities). Together with the ISCED-97 classification and its detailed appendix, the manual on “education and training” these will represent the basic classifications in all individual statistics on a certain demographic and social area. In the field of labour statistics the international statistical programme documents for the coming period foresee the need for revision of the international classification of occupations ISCO-88.

Statistical supportThe Statistical Office of the Republic of Slovenia will monitor the development of international classifications in social area and use them in their surveys in line with the needs for international dissemination of data. In order to fulfil the needs of users at the national level and specifics of national systems in general (education and training systems, social security, employment, etc. vary between countries), the Office will strive to develop proper national classifications10 (standard, adopted by a Government decree, technical and operational for specific surveys), originating from national systems, which will be comparable at the level of concepts. Comparability of individual categories, especially at the lower levels, will be ensured by conversion tables. In case it is not possible to develop own new national classifications, the Office will try to enable most appropriate and uniform direct use of international standards.

Main guidelines for the 2003–2007 period informing about the importance of classifications in the social area, stimulating to

participate in their preparation and updating; ensuring uniform understanding, use and interpretation of national and international

standard classifications in the social area with the emphasis on classifications of education; co-operation with other institutions in charge of developing the information and

registration systems whose elements are or could be the classifications from the area of social statistics, with the aim to ensure and organise directly comparable data;

monitoring and unanimously classifying new phenomena in terms of substance – categories, such as national vocational qualifications, into classification systems;

10 The Statistical Office of the Republic of Slovenia will co-operate with the competent and other interested institutions.

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continuing work related to preparation of a new system of national classifications in the area of education (in-line project work in several activities and phases simultaneously);

preparation of technical and operational classifications and links for individual specific surveys in the area of social statistics;

modernisation of the Standard Classification of Occupations (especially the code system), drafting of a bill or implementing procedure for adoption of Government decree on amendments and supplements to the Standard Classification of Occupations.

Classifications in the area of economic statisticsMajor changes of principal classifications (international, European, American and national) are foreseen in 2007. The aim is to update classifications, adapt them to the actual economic situation and bring them in line as far as possible. Preparations for the revision have started already in 2002 with the analysis of comparability between classifications and gathering of proposals for amendments and supplements. In the following years the preparations of revised classifications of activities NACE Rev. 2, ISIC Rev. 4 and national classifications made on the basis of these two international standards are foreseen. Among these there is also the Slovenian Classification of Activities (SKD), which will have to be adapted to the changed European Classification of Activities. In this framework the specific needs of Slovenian users of the classification have to be considered and possible additional breakdowns into individual classes verified.Similar changes are planned also in the European Classification of Products by Activity (CPA). The changes to the Classification of Activities will be taken into account. A more detailed breakdown is foreseen in the areas in which the classification is not specific enough.

Statistical support Both the Classification of Activities (NACE) and the Classification of Products by Activities (CPA) are obligatory statistical standards of the EU, which ensure comparability of data of Member States. When Slovenia enters the EU it will also have to implement the regulations of the European Council, which is why it is necessary that Slovenian classifications are brought in line with the European legislation as soon as possible, which is the task of the Statistical Office of the Republic of Slovenia.

Main guidelines for the 2003–2007 period monitoring the EU actions related to revision of the Classifications of Activities and

products; co-operation in preparing the proposals for NACE Rev. 2 and CPA 2007; preparing national versions of these classifications and additional explanations of items; preparing adequate publications; revision of classifications and code lists related to the two basic classifications SKD and

CPA; monitoring other actions in the area of economic classifications; and ensurance of alignment between Slovenian economic classifications and European and

international standards.

Combined nomenclatureCombined nomenclature (CN) is a European Nomenclature of goods, used basically as customs classification but serving also for the needs of external trade statistics. It was introduced in 1988, when the use of both classifications valid at that time - CCT (Common Customs Tariff – for customs needs) and NIMEXE (Nomenclature for Import and Export of European Community – for statistical needs) was discontinued. It is based on the international HS classification (Harmonised System – a harmonised system of the names and codes of goods), used in more than 180 countries and customs unions all over the world (98 % of the world trade). HS followed the technological progress and changes in international trade by adopting amendments and supplements in 1992, 1996 and 2002, and the next change is foreseen for 2007. Slovenia introduced CN on 1 January 1996 when it also harmonised the national customs legislation with the European one and it implemented the Single Administrative Document (SAD). The institution in charge of the national

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version of the CN is the Ministry of Economy. Within this Ministry, a Committee for CN composed of members from various institutions (Customs Administration, SORS, Chamber of Commerce, some ministries) which is in charge of preparing and harmonising annual changes, is operating. Slovenia added to the eight-digit European code its national extension (1 digit until 2000, two digits since 2001 because of formal alignment with the European TARIC) for own needs of foreign trade policy. Combined nomenclature changes every year (at the European and the national level) in line with various requirements (foreign trade policy, changes in goods flows, improved technology, statistical needs, etc.).

Statistical supportIn the EU, the CN is used in statistics of trade with third countries (Extrastat) and goods trading between the Member States (Intrastat). In Slovenia it has been used in foreign trade statistics since 1996 and after the accession it will also be used in Intrastat. As CN is also used for statistical purposes, it can be related to other statistical classifications (SITC, SKD or NACE, NIP or Prodcom, CPA, ISIC, BEC, etc.). Because of these correlations, data from customs declarations can be shown by various classifications, which enables the use of foreign trade data for various analyses and needs. Annual adaptations of foreign trade statistics to the changes in CN is a demanding and time-consuming task, since self-explanatory texts and correlation tables have to be adapted for the needs of automatic data processing.

Main guidelines for the 2003–2007 period pursuant to the European legislation the national version of the CN has to be supplemented

with the Chapter 98 (production lines) and list of products for which Intrastat does not require the entry of net mass (in other aspects the national CN has already been aligned with the European), before Slovenia joins the European Union;

once in the EU, Slovenia will be able to influence the changes of the CN (for statistical and customs purposes) through the Customs Code Committee (CCC), in which it now participates as an observer;

when Slovenia becomes member of the EU it will adopt the European TARIC (the instrument of foreign trade policy of the EU – further breakdown of CN on digits 9 and 10). The Ministry of Finance is in charge of the implementation of TARIC.

7.3 Training of statisticians

In strategic development of the programme for training of statisticians, new knowledge and methodologies will be introduced besides the regular education stimulated by the development of information technology, which will also cover data collection in a broader sense and surveying in a narrower sense.

Main guidelines for the 2003–2007 period consolidation of basic statistical knowledge (sampling, survey methodology, linking data from

various sources, data protection, etc.) in the framework of the programme of internal training in SORS. Participants in internal training are at the same time employees of SORS and also employees of the authorised performers;

acquiring and using new methodologies (i.e. the imputation methods which use highly advanced information technology and a wide range of available administratively linked data bases; development of questionnaires for e-surveys via the Internet, etc.) partially carried out through international institutions and partially through the internal training programme at SORS,

organising workshops for the SORS’ employees and authorised performers: by exchange of opinions and experience, the current-best-practice methods will be spread and applied to various products;

constant follow-ups and establishing needs for new knowledge due to advancements in information technology;

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preparing appropriate manuals and textbooks for internal training programme which will be available on the Internet to all employees of SORS as well as to the employees of the authorised performers, thus enabling all the interested parties to have an overview of different new developments and methodologies and a transparent overview of the current practices of collection, processing and analysis of data which will bring them closer to the current-best-practice methods.

7.4 Infrastructural and information technology services

In strategic development in the next period it is essential that the burden on the reporting units submitting data is decreased, that they are better adjusted to the needs of the users and that the procedures of archiving the voluminous statistical materials are standardised. The development of infrastructure services in the framework of the Slovenian national statistics by the end of 2007 will primarily support the following:

electronic transmission of data and services to the external users, introduction and improvement of electronic reporting standardised electronic archiving procedures.

Therefore, an interrupted process of statistical work will have to be ensured, connected with adequate metadata and standardised procedures in the so-called metadata driven process. Development and introduction of the proposed infrastructural services will bring along important improvement of the existing work process and significantly contribute to better timeliness, quality and use of statistical data and at the same time improve the security of archived materials.

7.5 Dissemination policy

In dissemination of data, SORS is striving to be a user-friendly institution to customers in Slovenia and those from abroad. It will be therefore adapted to various forms and user needs. The main strategic goals have also been determined:

- equal access to statistical results,- professionalism,- transparency,- user-friendliness,- improved access to statistical data and information through the world wide web,- issuing publications in both the Slovene and the English languages, as far as possible.

International dissemination is one of the basic tasks of the Office. When data are disseminated to international organisations by other institutions, the Office acts also as co-ordinator.

Requirements for timeliness of statistical data, especially as far as short-term statistics are concerned, are increasing in the area of economic and other statistics. This can be achieved by quick response of the reporting units, by using secondary sources and by improving working procedures within the SORS.

The Office notifies in advance the publications for certain users – i.e. the International Monetary Fund; in the future, all results will be published upon prior notice. At the moment the users are divided into four groups: enterprises, public sector, general public and researchers and universities. Important tasks in the future are the following:

- a more detailed breakdown of users according to their specific needs,- improved training of users,- introduction of regular measurement of users’ satisfaction with the quality of data and services

offered.

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7.6 Registers

SORS creates, sets up, keeps and maintains its own statistical registers by linkage of data from official and other administrative data collections with data obtained from the programme of statistical surveys.

Statistical Business Register (SBR)According to the needs of statistical surveys, the setting up, keeping and maintainance of the Statistical Business Register is one of the priority tasks of the medium-term programme of national statistics. Setting up, keeping and maintainance of the SBR in line with the European regulations and methodology complements the medium-term goals of national statistics. It is an important contribution to efficient dissemination, processing, linking and incorporation of various statistical and other data, collected and used by the authorised performers of the national statistics.

The SBR will become a collection of data on business subjects and a database support for the functioning of the statistical system, which will be harmonised with the European standards. Therefore it will:

- facilitate production of statistical address books,- unify procedures and definitions of the units of statistical observation,- cover the needs of collecting statistical data on business subjects for the purposes of national

statistics,- ensure reliability, objectivity and transparency of dissemination of statistical data,- increase efficiency of procedures in organising and implementing statistical surveys,- facilitate introduction of new technologies used in collecting, processing and dissemination of

statistical data, - support further development of register-oriented statistics in the Republic of Slovenia,- enable international comparisons and linkage of statistical data,- ease monitoring of business subject demography,- contribute to a more successful transition and international integration of Slovenian national

statistics, and- enable linkage of statistical data and other administrative sources by means of an identification

number.

In order to be able to carry out these tasks, adequate methodological, organisational, personnel and technical conditions will have to be set up.

Statistical Register of Employment Rapidly required, timely and reliable data are required for successful social and economic policy-making of the country and for timely and efficient interventions into the labour market. The pressure exercised by reporting units to reduce the scope of their reporting obligations dictates introduction of new methods of data collection or use of existing administrative and statistical sources. For this purpose the Statistical Office has been maintaining the Statistical Register of Employment for several years. The Register is a vast source of data on demographical and employment characteristics of employees and self-employed persons. The unique identifiers for individuals and business subjects enable linking of these data with other statistical and administrative sources. In the period to come, the register will have to be updated in terms of methodological and technical issues.

The data of the Statistical Register of Employment serve as statistical support, enabling:- establishment of movements and structures of persons in employment,- establishment of work migrations,

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- longitudinal analysis of labour market,- analysis of transitions between labour statuses using also the data on the unemployed

persons,- analysis of transitions between education and labour market using the data on the

education,- the analysis of the structure of earnings by using the tax data on income,- serving as additional source to other statistical surveys,- serving as the basis for establishment of other statistical registers,- comparisons of Slovenian statistical data with those of other countries by using

internationally comparable classifications.

In order to be able to carry out these tasks, adequate methodological, organisational and technical conditions will have to be set up.

7.7 Data security and statistical confidentiality

When protecting data in the process of dissemination, SORS and the authorised performers of the statistical programme in the next period will have to take into account the following rules: Before publishing tables and microdata these will be protected by adequate software packages.

No statistical data, which could be identified, i.e. attributed to a certain observation unit, can be made publicly available outside SORS or the authorised performers. Outside SORS or the authorised performers only the so-called deindividualised data (i.e. microdata) can be available.

Individual cells in the tables which show how the observed units are classified according to their specific characteristics must include at least the following number of units: in the most sensitive characteristics (religion, nationality and similar) at least ten units in sensitive characteristics (income) at least three units, in the least sensitive characteristics (demographic) there is no limitation and cells with only

one unit can also be shown.

For the statistical disclosure control, the software packages will be used which are available in the European Union and are also used by the Member States. Statistical disclosure control is an area in which new methods are developed quite fast, the Office will keep track of the new methodologies and the related software packages also in the 2003-2007 period.

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7.8 THE AREA OF ECONOMIC, DEMOGRAPHIC AND SOCIAL POLICIES AND POLICIES IN THE AREA OF ENVIRONMENT AND NATURAL RESOURCES, AND THE REQUIRED STATISTICAL SUPPORT

DIVISION OF STATISTICAL CONTENTS11

Chapter Domain ModuleISTATISTICAL INFRASTRUCTURE

11 Classifications111 Classification of Economic

Activities (NACE)112 Classification of Products by

Activity (CPA)113 Miscellaneous classifications 115 Classifications for social statistics 116 Classifications for trade in goods

statistics117 Standard classification of territorial

units (SKTE/NUTS)11991 Classifications (national interest)

12 Statistical training

13 Electronic data processing

14 Information technologies

15 Reference databases

16 Information

17 Dissemination

18 Statistical co-ordination

19 International co-operation191 International co-operation and

technical assistance to Slovenia192 Technical assistance to countries of

the former Yugoslavia19991 Technical assistance to other

countries

20 Preparation to the accession to the EU

11 The contents are taken from the Community Statistical Programme 2003-2007 and Statistical Requirements Compendium, Eurostat 2002, the national needs are added.

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21 Technical co-operation with third countries

22 Statistical research

23 Restructuring plans

24 Registers241 Methods and technologies for

statistical registers

25 Data security and statistical confidentiality

251 Data security and data protection252 Co-ordination for statistical

confidentiality253 Legal aspects of confidentiality

IIDEMOGRAPHIC AND SOCIAL STATISTICS

31 Population 311 Demographic statistics and

projections312 Community census programme313 Migration statistics

32 Labour market321 Employment and unemployment32991 Occupations and education322 Earnings and labour costs

33 Education 331 Education statistics 332 Vocational training statistics

34 Culture 341 Culture statistics

35 Health, safety and consumer protection

351 Public health 352 Health and safety at work353 Consumer protection

36 Distribution of incomes and living conditions

361 Family budgets 362 Time use

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363 Income, poverty and social exclusion

37 Social protection 371 Social protection statistics: central

system 37991 Statistics on family incomes and

maternity protection (national interest)

37992 Social protection statistics (national interest)

37993 Pension and disability insurance372 Social protection statistics:

modules

38 Other social statistics381 Housing statistics382 Social indicators and other social

domains383 Integration of household surveys

and registers38991 Election and self-imposed

contribution statistics (national interest)

IIIECONOMIC STATISTICSIII.1MACROECONOMIC STATISTICS

40 Annual economic accounts

401 European system of Accounts (ESA)

402 National accounts: aggregates403 Accounts of general government404 Accounts of other institutional

sectors405 Accounts by branch - Input/Output

tables406 Balance sheet accounts (including

capital stocks)

41 Quarterly and environment accounts

411 Quarterly national accounts412 Environment accounts

42 Financial accounts421 Current financial accounts

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422 Financial balance sheets

43 Monitoring own resources431 Monitoring own resources gross

national product (GNP)432 Monitoring own resources value

added tax (VAT)

55 Prices551 Harmonised consumer price index 55991 Output price indices (national

interest)552 Purchasing power parities for GDP553 Remuneration of EC Officials

III.2BUSINESS STATISTICS

44 Statistics on the economic activity of enterprises

441 Implementation of Structural business statistics regulation

442 Development of structural business statistics

443 Analysis of the Structural Business Statistics

444 Implementation and development of short-term statistics of enterprises

44991 Surveys of national significance- no EU directive

445 Industrial production statistics (including PRODCOM)

446 Iron and steel statistics

45 Energy and raw materials451 Structural statistics of energy452 Short-term statistics of energy453 Renewable energy sources454 Energy prices455 Special actions to support the new

Community energy policies456 Energy consumption and combined

production of electricity and heat457 Statistics on raw materials

47 Distributive trade471 Distributive trades statistics

48 Transport481 Information system on transport

economy482 Passenger transport

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483 Transport of goods by road484 Transport of goods by rail485 Sea and inland waterways transport486 Air transport487 Intermodal transport488 Statistics of road traffic accidents48991 Surveys of national significance -

no EU directive

49 Communication491 Statistics on the information

society492 Statistics on communications,

postal and telecommunications services

493 Statistics on audio-visual services

50 Tourism501 Tourism statistics502 Statistics on hotels and restaurants

and travel agencies

III.3MONETARY, FINANCIAL, TRADE AND BALANCE OF PAYMENTS STATISTICS

52 Money and finance521 Euro and EMS statistics522 Structural monetary and financial

indicators523 Short-term monetary and financial

indicators524 Statistics on public deficit and debt525 Use of the euro in national statistics52991 Public finance balance sheets,

survey of national significance – no EU directive

53 Trade in goods 531 Trade in goods between Member

States (including EDICOM)532 Trade in goods with third countries533 Sectoral analysis and international

trade studies 534 COMEXT database535 Tariff statistics – Generalised

preferences – Own resources536 Production of trade statistics

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54 Trade in services and balance of payments

541 Balance of payments542 Balance of payments of the

Community institutions543 Direct investment and foreign

affiliates trade statistics544 International trade in services and

geographical breakdown

IVAGRICULTURE, FORESTRY AND FISHERIES

61 Land use and landscape611 Land use612 Remote sensing

62 Agricultural structures621 Structure and typology of

agricultural holdings622 EUROFARM database623 Statistics on viticulture624 Statistics on fruit growing

63 Agricultural incomes and prices

631 Economic accounts of agriculture (EAA) And forestry (EAF)

632 Total income of agricultural households (TIAH)

633 Agricultural price statistics (APS)634 Statistics on agricultural labour

input635 Integrated database and agricultural

sector modelling

64 Crop production641 Crop production statistics642 Crop production supply balance

sheets643 Harvest forecasts (AGROMET)

65 Animal production 651 Livestock 652 Animal production statistics653 Animal production supply balance

sheets654 Feed balance sheets

66 Agro-industry statistics661 Agro-industry statistics

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67 Other agricultural statistics

68 Forestry statistics681 Forestry statistics

69 Fisheries statistics691 Statistics on the fishing fleet 692 Captures statistics693 Landings and supply balance sheets694 Aquaculture statistics69991 Economically active population in

the fisheries sector69992 Social and economic indicators in

fisheries

VMULTI-DOMAIN STATISTICS

71 Environment statistics and indicators

711 Driving forces: sectoral statistics712 Statistics on waste713 Statistics on scarce and hazardous

materials714 Statistics on water use and

discharges to water715 Integrated emission statistics716 Environmental pressure indicators

and sustainable development indices

717 Environmental expenditure statistics

718 Periodical integrated reporting 719 ENVSTAT database71991 Statistics on public utilities 71992 Statistics on the damage caused by

natural disasters

72 Regional and geographical information

721 Regional accounts 722 Regional labour market statistics723 Regional statistics by sector724 Data analysis and improvement725 Urban statistics726 REGIO database727 Infra-regional information system

(SIRE)728 Geographical information system

(GISCO)

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73 Science and technology731 R&D statistics 732 Innovation statistics

81 Economic and financial statistics (DG II)

811 Business surveys

PolicyThe policy is a summary of national12 and international13 statistical requirements from the aspect of political needs. These needs are covered within 24 policies of the Medium-term Programme of Statistical Surveys.

Chapter and domainChapters and domains are a rough division of the statistical contents. Medium-term and annual programmes of statistical surveys consist of chapters and domains, which follow the structure of Statistical Requirements Compendium, 2002, and Community Statistical Programme 2003-2007, Commission of the European Communities, Brussels, 28 November 2001.

ModuleModule is an integral whole of statistical contents, covering a part of policies. It is carried out by secondary sources (registers) and primary sources (statistical surveys) and internal inputs (economic statistics as input into national accounts)14. The contents breakdown into chapters and domains follows the structure of Statistical Requirements Compendium and Community Statistical Programme, with additional modules aimed at meeting specific national needs.

Statistical surveysStatistical surveys include surveys designated by names, carried out not only by primary collection of data, but also by secondary sources and internal inputs. In addition to this it covers also the contents, which are not covered directly by surveys; however, they are important for carrying out the programme.

Development tasksDevelopmental tasks are a part of »Statistical Surveys« (domain 22), and as statistical surveys they are structured in the same way as regular LPSR tasks.

12 Principal source: The Strategy for Economic Development of Slovenia, The National Development Plan 2001–2006, Negotiation positions for accession of the Republic of Slovenia to the European Union.13 Community Statistical Programme 2003–2007, Commission of the European Communities, Brussels, 28 November 2001 COM(2001) 683 final.14 Consequently, individual surveys generally appear in several modules. It is included in the module which comprises the major part of the contents.

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I. FREE MOVEMENT OF GOODS

Subject of the policy

Exercising of freedoms such as free movement of goods, persons, services and capital enables the production factors of labour and capital to function without barriers. Enterprises may produce and sell their products in accordance with the system of free competition in the Member State in which conditions are the most favourable for them. Enterprises can be established in the common market wherever they want and draw from abundant capital resources existing in each of the Member States. Slovenia’s major problem is the ability to estimate the consequences of the adoption of acquis communautaire in the light of implementation capacity of enterprises. Despite intensive efforts to make the entrepreneurial sector an active part of the process of identifying potential problems of the implementation of the acquis, the task is extremely demanding15.The consumers are free to select better quality or lower price products from a wide range of different products made in the Member States. Workers have better access to jobs in the areas where there is more demand and have thus better opportunities to find more favourable working conditions and higher salaries.In customs regulations, international customs co-operation and administrative skills adequate technical adaptation will be required for efficient monitoring and implementation of European regulations and exchange of information.

The principal contents of the CSP16: When the single European market was introduced in 1993, the system of compiling statistics relating to trading of goods between Member States (Intrastat) was implemented in order to ensure a detailed statistics on trading of goods within the Community, comparable with the statistics on Community trade with the third countries. The system will continue to be adapted to legislative reforms, but it should also be simplified. The reliability of the import and export price statistics will have to be improved so that internal competitiveness of Community products can be measured more effectively. The consequences of anticipated transition to the single system of VAT will have to be analysed on the basis of evaluation of statistical and administrative sources. Priority will be given to the maintenance of linkage to the VAT system and the use of business registers. Statistical support to the policy

In the EU, statistical data on the trading of goods between Member States are collected, processed and disseminated in the framework of the so-called Intrastat system, based on a statistical form similar to the Single Administrative Document and on the link with tax data. The Intrastat system was formally introduced on 1 January 1993, together with the single market, when the borders and customs formalities within the EU were abolished, which brought along the loss of the administrative source of data on trading of goods within the EU – the customs declaration.

Preparations for the harmonisation with the European legislation for Intrastat, which in practice means setting-up of the national Intrastat systems in the candidate countries, have been carried out in the framework of various Phare programmes under the leadership of Eurostat ever since the second half of 2000, while practical implementation is planned for the 2002-2003 period in the framework of the Enlargement project on external trade statistics. Eurostat is paying close attention to this project and offering general support, since Intrastat is considered to be one of the most complex and large statistical surveys in the Member States, while statistical data on the trading of goods are indispensable support to managing economic and monetary policy of the Community.Following the example of certain Member States where the tasks related to Intrastat are divided between the national statistical office and the customs or tax administration, Slovenia decided to divide these tasks between SORS and the Customs Administration (a written agreement signed in May 2002). The third institution which is indirectly involved in the setting-up of the national 15 Negotiation position on Free movement of goods, Internet, http://www.sigov.si/ops/slo/pi/problemi.html.16 CSP - Community Statistical Programme 2003 to 2007.

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Intrastat is the Tax Administration of the Republic of Slovenia. The latter will have to start sending to the Statistical Office the data on the value of goods traded within the Community at the level of enterprise identification when Slovenia joins the European Union. The abovementioned obligation of the national tax administration towards the national institution, responsible for Intrastat, is provided for in the European regulations for statistics on trade of goods between Member States, since tax data are the only available source for establishing which enterprises trade within the Community after the customs declarations have been abolished.

Table 1: Connection of the policy »Free movement of goods« with statistical domains

I. FREE MOVEMENT OF GOODSMain statistical domains 11 Classifications

24 Registers53 Trade in goods

Other important statistical domains 44 Statistics on the economic activity of enterprises45 Energy and raw materials

Main guidelines for the 2003–2007 period

In line with the goals of the Enlargement project on external trade statistics (formally the project is running from the first quarter of 2002 until the end of August 2003) and the agreement on sharing of tasks between the Statistical Office and the Customs Administration, a prototype of the national Intrastat system, will be able to function as regular monthly statistical surveys when Slovenia enters the European Union, has to be set up by the end of 2003. This means that from the substantial, technical and organisational point of view a data processing chain has to be constructed, which will enable quick collection of data, efficient controls and correction of data, close co-operation with reporting units, regular provision of tax data, required for the Intrastat by the Tax Administration and dissemination of monthly data on trading of goods for Slovenian, European and international needs.

After joining the EU, the system will be further improved and upgraded (methodologically, technically and operatively) on the basis of analysing results of pilot and regular surveys. Enterprises will have to be educated and informed, in order to ensure good quality of data. Due to another source of data and slightly different methodological bases than those of the standard foreign trade statistics, large amounts of data and their link to tax data, the quality of Intrastat data in the Member States is still not completely satisfactory. It is to be expected that the new members will also face similar problems. Data from the existing standard foreign trade statistics will have to be merged with those from the Intrastat system into a single database, which means that certain new methodological solutions and revision of dissemination of foreign trade statistics will have to be implemented. Additional changes in the European legislation on statistics relating to the trading of goods between the Member States, planned by the EU for 2005, will have to be taken into account.

National statistics performer: Statistical Office of the Republic of Slovenia, Agency of the Republic of Slovenia for Public and Legal Records and Services

Participating institutions: Customs Administration of the Republic of Slovenia, Tax Administration of the Republic of Slovenia, Ministry of Economy, Chamber of Commerce and Industry of Slovenia

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II. AGRICULTURE (INCLUDING FISHERIES)

Subject of the policy

Agriculture is more than just a branch of economy; it is also a social and environmental component of development. In Slovenia the natural conditions for agriculture are relatively unfavourable 17, which is why there are limited production possibilities, low efficiency and high production costs. The basic task of agricultural structural policy is to improve efficiency and competitiveness of agriculture and thus increase income of agricultural holdings as the subjects of agricultural production18.The programme of agricultural reforms is divided into three domains: (i) agricultural structures (establishing economically strong and developmentally promising agricultural holdings), (ii) Agro-industry (supports for activity update) and (iii) integral development of rural areas (changes in spatial planning, support for increasing economic diversity19 and other innovative measures for development of agricultural holdings)20. On the basis of the Rural Development Plan 2000–2006 Slovenia started drawing the EU pre-accession aid in 2002. Slovene agriculture and rural areas will only receive minimum financial assistance from the EU, since a mere 1% of the total of EUR 520 million available annual funds of the SAPARD21 were granted to Slovenia by the European Commission. In the seven years Slovenia is supposed to receive a total of EUR 45.1 million from the EU which accounts for 28.9% of the foreseen total costs for the implementation of the programme. The programme of agricultural restructuring is supported by relatively generous state aids (45.9% of all aids in 2000)22.In the negotiating process regarding determination of wine-growing regions Slovenia justified the classification of the entire wine-growing region in the wine-growing zone B23 with climatic and

17 Large forest cover, unfavourable relief and a significant share of absolute grassland (meadows and pastures) and a small share of fields and permanent crops. Less than one fourth of agricultural land is located in lowland areas, where modern and intensive agriculture is not limited by natural conditions. The remaining land is located in mountainous, hilly, karstic and other areas with limiting factors. (National Development Plan 2001–2006, Bulletin of the National Assembly of the RS, Ljubljana, 19 January 2002, no. 6, page 172).18 There are slightly more than 95,000 agricultural holdings in Slovenia. The average Slovene agricultural holdong has 4.8 ha of agricultural land, which is four times less than the EU average. Since agricultural holdings are too small to ensure adequate income from agriculture alone, part-time agricultural holdigns have become prevalent. Only about 15% of agricultural holdings in Slovenia operate on a full-time basis, with most family members working exclusively on the agricultural holding.19 Conditions for living and working in rural areas can only be improved by developing a quality labour market. One of the basic problems of the rural areas is ensuring adequate jobs in non-agricultural sector for those members of agricultural holdings who do not work on the agricultural holdings. Beside remoteness, the quality of jobs is also problematic, since there are extremely little possibilities for highly skilled human resources. Objectives, reduce the number of daily migrations, increasing the share of jobs in craft and tourism in rural areas, transfer of public sector jobs to rural areas, higher share of jobs requiring secondary school or university degree, new educational opportunities – training for the use of new telecommunication channels. (NDP 2001–2006, Bulletin of the National Assembly of the RS, 19 January 2002, no. 6/I, pages 282 in 283).20 National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, abstract, pages 143 and 144.21 The SAPARD programme was approved by European Commission decision of 27 October 2000 as Special Accession Programme for Agriculture and Rural Development. It defines the following advantages and measures which Slovenia implements by support of the Community on the transitional period: investments in agricultural holdings, investments in processing and marketing of agricultural and fishing products, economic diversification on agricultural holdings, development and improvement of infrastructure in rural areas and technical assistance. (National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 52).22 IMAD, Development Report, Ljubljana, 28 March 2002, pages 32 and 33.23 The proposal for classification of the wine-growing region of Slovenia in the mentioned viticultural zone was drafted on the basis of expert audit of several factors influencing the production of grape and wine, including climatic, bioclimatic and pedoecological parameters and traditional methods of production and

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production characteristics of grape and wine being the reason that the oenological practices in Slovenia are traditionally regulated in line with the requirements of the acquis communautaire applicable to the areas classified in the wine-growing zone B24.In Slovenia management of forests is based on the principles of sustainability and multiple exploitation. Forests play an important role in the formation of environment which is why it is important to monitor their state and planning their development25.Since the independence of the Republic of Slovenia its sea fishery has been limited to the Slovene territorial waters (around 4.5 nautical miles from the shore) and international waters of the Adriatic Sea. The territorial waters cover some 180 km² and are adjacent to the territorial waters of Italy and Croatia.Slovene fishermen are allowed to catch up to 1,500 tonnes of small oily fish per year in Croatian territorial waters. The fact that the fishing area was limited after independence of Slovenia, lead to a discrepancy between available fishing grounds and the number of fishermen and fishing resources. In Slovenia freshwater fishing is only a sport, because its inland waters cannot bear the burden of commercial fishing.26.In 2001 Slovenia started implementing the agricultural-environmental programme (SKOP). In the framework of this programme 23 measures have been adopted which are being gradually incorporated into implementation by the Republic of Slovenia in the pre-accession period. Each year the volume and scope of measures increases. In 2002 12 of these measures were being carried out, combined in the following groups: reducing negative influence of agriculture on the environment, keeping traditional agricultural landscape, managing areas with special natural limitations, and education and promotion27.

Principal contents of the CSP: special attention will be paid to environmental dimension by developing statistics required for analysing the connection between agriculture and environment, including improved statistics on the use of fertilisers, organic farming and various actions for maintaining the biodiversity and natural agricultural environment.CAP (Common Agricultural Policy) can also change due to reforms resulting from "Agenda 2000". The work in the field of integration indicators, incorporation of environmental issues in the CAP and operative indicators of the rural areas will also continue. Attention will also be paid to the increasing needs for information from the point of view of consumers and agricultural well-being and to statistical support of agricultural development in the CAP. In forestry, improvements are planned concerning specific indicators, needed for environmental management and sustainable development of forests. Information on sustainable development of wood-consuming industries must be gathered, taking into account the consequences of the Bonn Agreement and provisions of the Kyoto Agreement.In fisheries, the requirements for data on parameters used for estimating social and economic situation, resulting from the limited activities of fishing vessels and reduced fishing fleet, are growing rapidly.

Statistical support to the policy

In 2000, the Republic of Slovenia conducted the Census of agricultural holdings. Censuses are the basis for the analysis of structural changes at the national and regional levels. At the same time they are also very important for other statistical surveys, which are conducted in the period

composition of the types of vine in a certain area. Contents of sugar and total acidification that a vine is able to accumulate in the product in a certain area are also among the most important criteria for classification of this area in a certain viticultural zone.24 Negotiation position Agriculture, Internet, http:www.sigov.si/ops/slo/pi/problemi.html.25 National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, page 283.26 National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary, pages 176 and 177.27 National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 53.

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between censuses, as these data are used for sampling. The Census is also the foundation for setting up an administrative register of agricultural holdings. IACS - Integrated Administrative and Control System will be an important source for agricultural statistics in the future. IACS supports payments of subsidies to farmers and market interventions within the common EU agricultural policy (CAP). However, IACS does not contain all the data required for statistical purposes and does not cover agricultural holdings, which do not apply for a subsidy.

The reform of the CAP – Common Agricultural Policy is being prepared. Special attention will be paid to environmental protection and sustainable management in all areas. Emphasis will be put on maintaining environmental functions of agriculture and avoiding negative influences of agriculture on the environment. Thus, statistical data on the quality of water and air, use of land and other natural resources, waste management, noise, fauna, flora and biotopes.

In the 2003–2007 period three sample surveys on the structure of agricultural holdings will be carried out in the field of agriculture (2003, 2005 and 2007) the first of the three (in 2003) being especially important from the point of view of monitoring new environmental characteristics.

Table 2: Connection of the policy »Agriculture« (including fishing)« with statistical domains

II. AGRICULTURE (including fisheries)Main statistical domains 11 Classifications

24 Registers61 Land use and landscape62 Agricultural structures63 Agricultural incomes and prices64 Crop production65 Animal production66 Agro-industry statistics 67 Other agricultural statistics68 Forestry statistics 69 Fisheries statistics

Other important statistical domains 53 Trade in goods72 Regional and geographic information

Main guidelines for the 2003–2007 period

- use of all available administrative data for statistical purposes;- further adjustment of methodologies and classifications in line with Eurostat requirements;- electronic submission of data to Eurostat: EUROFARM database;- taking part in the analysis of data, integrated into AgrIS - Agricultural Information System,

which is being developed by Eurostat. The fundamental purpose of AgrIS is to reorganise annual agricultural statistics into New Cronos, which would facilitate user access and use of data;

- continuous monitoring of data on agricultural production and consumption by »small units« – data are important from the aspect of national accounts and food balance sheets;

- three sample surveys of agricultural structures will be carried out (in 2003, 2005 and 2007) which will include new characteristics, related to monitoring of agricultural impacts on the environment;

- market horticulture census will be performed in 2003 and that on plantations of fruit trees in 2007;

- dissemination of agricultural statistical data in a user-friendly way and use of tools for quick creation of tables for special needs of users, incorporating data of numerous surveys.

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National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of Agriculture, Forestry and Food, Chamber of Agriculture and Forestry of Slovenia, Agency of the Republic of Slovenia for Agricultural Markets and Rural Development, Agricultural Institute of Slovenia, Slovenian Institute of Forestry, Inspectorate of the Republic of Slovenia for Agriculture, Forestry, Hunting and Fisheries, Slovenian Forestry Service, Ministry of the Environment and Spatial Planning, Nature Protection Authority of the Republic of Slovenia

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III. FREEDOM OF MOVEMENT OF PERSONS

Subject of the policy

Internal migration mobility in Slovenia is quite lower than that of the EU, and is not related to tradition and culture alone but also to the volume, structure, exploitation and accessibility of the housing fund. Privatisation of public housings at the beginning of the nineties contributed to the fact that more than 90% of households live in dwellings, which are owned either by them or their parents or relatives (in 1995 56 % in EU). Such a big share of owner occupied housing and modest offer of private dwellings to be rented as well as lack of social and non-profit housing hinder the labour force mobility28.In the future years, the offer of housings to be rented will have to be increased (private, profit and social), the system of objective and subjective subsidies introduced and regulated, the system of financial networks extended (National Housing Savings Scheme) and project financing of housing units construction, which stimulates co-operation and partnership between the central state, local community, construction industry, co-operatives, associations and private landlords29.The policy of migrations allowed for by the membership in the EU will gain importance in the next years not only because of internationalisation of labour market but also due to reduced working age population in Slovenia, predicted by various demographic projections30.The principle of freedom of movement of persons within the EU includes the rights of the EU citizens regarding employment and residence. Upon joining the EU Slovenia will be able to maintain control over immigration and possibility of “selecting human resources necessary in the economy” only by means of implementation provisions and not with direct legal limitations, without infringing the principle of freedom of movement of persons31. As the most developed of

28 In the Littoral-Karst and Goriško statistical regions, the share of the elderly exceeds the share of the young.29 In the article published in IB Review 1/2002 entitled "Modern tendencies in development of population and jobs – sustainable and decentralised settlements in Slovenia" dr Marjan Ravbar established: "In Slovenia there are about 900 settlements in which almost three quarters of population live in suburban areas around towns which are the so-called condensation cores. Population density in urban areas is four times above the average level. The main characteristic of the urban regions is that population in the outskirts grows faster than in the towns themselves and that their number doubled in the last decades.” (page 20) Moreover: “In 2000 there were 460 settlements with more than 100 jobs which accounted for more than 93% of all jobs in Slovenia” (page 24) “As a rule, urban centres with more than 10,000 jobs have a surplus in relation to active population, while those with less than 10,000 jobs usually do not have such surplus (or only exceptionally), which is why no more than 15% of local communities have positive local divergence, or in other words, in such areas approximately two thirds of employees migrate to work daily into these communities outside their residential local community. One third of newly established communes have a noticeable deficit of jobs (more than 500) in the territory of the local community, which means that three quarters of active population have to drive to work from these communes to an employment centre outside their place of residence.” (page 25).In Slovenia, daily migrations are already at the level of western European countries. The policy that would stimulate further physical migration of population into urban areas could be regarded as inadequate and negative from the point of view of development, since it would actually cause additional depopulation of the already endangered demographic regions. It is therefore essential for a balanced demographic, settlement, economic and social development that the instruments of economic policy are used to stimulate the creation of new jobs also outside the prevailing employment centres.30 Negotiation position for the freedom of movement of persons mainly deal with mutual recognition of professional qualifications, free movement of workers and citizenship rights (right to vote and right to reside).31 Regarding freedom of movement of persons, Slovenia agreed to the so-called transitional period which means that the EU legislation in this area will not be implemented immediately upon the accession (from two to maximum seven years after joining the EU). This also means that Slovenia will have to lead an active policy in the process of concluding bilateral agreements on employment with the existing Member States of the EU and not only the active and selective policy of attracting labour force from the so-called “third countries”. At the moment there are practically no such agreements with the EU Member States that could serve as the basis for organised employment of Slovenian citizens in foreign countries and vice versa. It is therefore necessary that in the transitional period several bilateral agreements on employment are concluded,

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the candidate countries Slovenia will attract labour force from less developed countries. It will thus have to make a selection on the basis of migration policy so as to attract mostly those occupational groups in which the difference between supply and demand in the domestic labour market will be the most significant in the next years (these are mainly technical occupations and those in the field of information technology). On the other hand, Slovenia will have to find appropriate instruments for restricting emigration of young and skilled human resources by providing for such conditions of living and employment which will be comparable to those of the European Union, by establishing development centres to attract young and skilled persons and by ensuring an adequate level of income and housings32.

The principal contents of the CSP: The Community Programme combines the policy of freedom of movement of persons with the policy of services and capital.

Statistical support to the policy

When Slovenia joins the European Union or when free movement of workers is established between the EU and Slovenia, the Member States of the Union will be granted free access to Slovenian labour market. During the transitional period before the implementation of free movement of workers, the basis for employing workers in Slovenia and individual Member States will be separate bilateral agreements on employment.

Employment of all foreign citizens on the territory of Slovenia is regulated by the Employment and Work of Aliens Act (Official Journal of the Republic of Slovenia, no. 66/2000) stipulating the regime of issuing work permits. This same Act stipulates also the method of keeping and the contents of records, which provide data on the number and type of issued work permits and data on the number of foreigners in paid employment, including the review of countries these foreigners come from. Organised employing of the Slovene citizens abroad has practically ceased to exist in the 1990s. Currently it is carried out only under a bilateral agreement between Germany and Slovenia on employment to build up expertise and to learn languages, on seasonal employment and employment of nurses. Each organised mediation and employment of Slovene citizens abroad under the above mentioned and eventual new inter-state agreements is recorded and statistically monitored. Continuous provision of data on foreigners in paid employment in Slovenia and Slovene citizens abroad belongs to the wider framework of statistical monitoring of the labour market.

Management of the migration policy, including the regulation of emigration and immigration flows of workers falls within the competence of the Ministry of the Interior and the Ministry of Labour, Family and Social Affairs.

Table 3: Connection of the policy »Freedom of movement of persons« with statistical domains

III. FREEDOM OF MOVEMENT OF PERSONSMain statistical domains 11 Classifications

31 Population32 Labour market

Other important statistical domains 44 Statistics on the economic activity of enterprises48 Transport49 Communication50 Tourism

primarily with the neighbouring countries (Austria, Italy).32 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary, pp. 56–57.

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54 Trade in services and balance of payments

Main guidelines for the 2003–2007 period

- to ensure comprehensive statistical monitoring of employed foreign citizens in Slovenia;- to ensure statistical monitoring of employed Slovenian citizens in other countries on the

basis of bilateral agreements between Slovenia and other countries.

National statistics performer: Statistical Office of the Republic of Slovenia, Employment Service of Slovenia, Agency of the Republic of Slovenia for Public and Legal Records and Services

Participating institutions: Ministry of Labour, Family and Social Affairs, Ministry of Justice, Ministry of the Interior, the University of Ljubljana – Faculty of Social Sciences- Institute of Social Sciences.

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IV. FREEDOM TO PROVIDE SERVICES

Subject of the policy

Information and communication services as well as business and financial services are gaining importance in global terms. They all have high value added and increase efficiency of the entire economy and society. These are highly specialised services which are in most of enterprises not provided internally, mainly because of insufficient human and financial resources, but purchased in the market from specialised providers. In modern countries (in public administration and services) there is also a tendency to purchase such services in the market and thus increase their efficiency and flexibility.Slovenia is also developing the abovementioned services, although their efficiency, quality and diversity lag behind those of the EU. Unlike the EU, Slovenia does not have an adequate policy of development of modern services (information, communication, business and financial) that would be based on horizontal policies.In order to be able to develop new services the following orientations and activities are required:- establishment of business and support networks which would provide several specialised

services, necessary for the functioning of small and medium-sized enterprises on a single location;

- formation of risk capital funds which stimulate creativity and creation of enterprises with new technologies and services;

- setting up technology parks and incubators to enable the functioning of those companies which develop support for e-commerce, new services and technologies;

- accelerating electronic commerce on the relation public administration – enterprises and public administration – citizens, indirectly supporting also electronic commerce between enterprises;

- attracting foreign direct investments in development of new services due to the transfer of specific managerial, marketing and organisational skills33.

Services in the financial sector: - In Slovenia, banks are the prevailing financial intermediators. However, they are still far from

being internationally competitive, despite significant progress brought by intensive restructuring (data on the volume of performed operations according to the number of employees, data on diversification of services, offered by banks).

- Insurance industry is also facing numerous problems. Besides the traditional ones, there are also new problems on the horizon, namely, substitution of the existing life assurance and newly introduced pension insurance, as well as the portfolio management issues. Insurance companies will have to make portfolio investments in Slovenia and abroad.

- Problems in the securities market are mainly related to distributive privatisation which created a large number of public limited companies and shareholders who wish to sell their shares. Therefore, secondary trading does not have the function of additional financing of enterprises but serves mainly for reorganising the corporate ownership structure. The principal characteristics of trading are low liquidity on the stock exchange, large volumes of trading in lots in the grey market and concentration of shares for takeovers and acquisitions.

There are three main problems and challenges of the financial sector as a whole:- collecting funds and new savings habits of the population,- changes in the financing of population, enterprises and the state,- financial system and enterprise governing.

After Slovenia joins the EU, fiercer competition can be expected in the market of financial service providers from abroad. Their range of products and services offered will be based on the following general characteristics: (i) at least at the first stage foreign financial intermediators will operate 33 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, abstract page 60.

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primarily in the form of providing across-the-border financial services, i.e. without establishing their own institutions in Slovenia; (ii) the activity will be directed towards those segments of financial services which cannot be provided by Slovenian financial institutions or in which the services offered are insufficient or uncompetitive; (iii) the activity will be directed towards those segments of financial services, the quality provision of which does not require a widespread network34.

In the framework of the policy of freedom to provide services, Slovenia demanded in the negotiation process regarding the implementation of capital and other requirements of safe and diligent operations of savings co-operatives, established before 20 February 1999 a two-year transition period from the planned access to the European Union, i.e. 31 December 2004. Slovenia also demanded additional transitional period for protection of domestic level and volume of the system of guarantees for bank deposits and for protection of the volume of domestic scheme of guarantees for the claims of those investing in brokerage houses until 31 December 2005. Most of the problems arose in the area of non-financial services, regulated by numerous regulations falling within the competence of almost all ministries.

In trade, hotels and restaurants the structural movements were positive. In trade the restructuring processes were reflected in greater efficiency of both retail and wholesale trading activity. Positive restructuring processes in the hotels and restaurants industry were mainly due to restructured activity of hotels and increased importance of primarily tourist-oriented activity35. Tourism is a sector, which has a linking intersectoral character in national economies and large multiplicative effects. It accelerates economic activities, regional development and adds economic value to natural, cultural, historical and other characteristics36. The concept of service clusters improves tourist offer by linking various tourist activities and products in a certain area. Slovenian tourist offer is defined in five areas: (i) mountains and lakes, (ii) the littoral and the Karst; (iii) health resorts; (iv) towns and (v) rural areas.37

The present tourism infrastructure in Slovenia is poorly developed and needs to be updated. The main obstacles to the faster renovation and development of the tourism infrastructure are the shortage of capital of enterprises in the field of tourism infrastructure and the difficult access to appropriate sources of financing, which it is why it is necessary to establish a more favourable financial environment for investments, promote linkages between tourism offerers and public sector and offer direct development incentives for the implementation of common projects38.For the implementation of basic strategic goals in tourism development, the Strategy of Slovenian Tourism for the 2002-2006 period defines five basic development policies: (i) the policy of spatial development of tourism, (ii) the policy of marketing of the Slovenian tourism, (iii) the policy of development of human resources in tourism, (iv) investment policy of the Slovenian tourism, (v) the policy of promoting the development of new products and improving quality in tourism39.

Principal contents of the CSP: The EU payment balance statistics give fairly detailed information on trade with services and direct investment. Statistics on foreign branch trading is also being

34 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, abstract, pages 74–76.35 IMAD, Development Report, Ljubljana, 28 March 2002, page 5.36 Slovenia’s share in the European tourist visits today is not more than 0.3%. Tourism sector contributes to our economy more than 400 billion SIT of common production, which accounts for 9.1% of the GDP and 6% of value added and employs approximately 52.500 people. Foreign trading incomes from tourism (slightly less than 1 billion USD) represent a good 10% of the Slovene export of products and services.37 National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, page 159.38 National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6/I, page 242.39 The Strategy of Slovenian Tourism 2002–2006, Ljubljana, February 2002, page 59.

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developed. The systems for collecting payment balance data are at the stage of being restructured which is why the needs of the Commission have to be reassessed and redefined in this area.The system of globalisation indicators will be introduced. By developing satellite accounts the statistics will try to improve the analysis of sustainable tourism together with sustainable development.Legal basis will have to be developed for telecommunication statistics.A flexible system for collecting data on information society indicators will also be gradually introduced.

Statistical support to the policy

There are two pilot projects underway in the EU Member States: e-households and e-enterprises. Almost all Member States cooperate in these projects, since they are aware of the importance of these data. The common policy of the Member States and Eurostat is that the focus of data collection will be transferred to national statistics. Thus an agreement was made that the legal basis for these two surveys be established as soon as possible. A draft regulation is prepared and its adoption planned for 2003. All data that will have to be submitted to Eurostat will be presented in Annexes so that it will be possible to amend and supplement it without long and time-consuming formalities of adopting the European provisions. The Regulation will stipulate annual collection of data for the period of five years. The Phare 2002 budget foresees the funds for development of ICT statistics in the candidate countries. It is planned that when these two pilot projects, implemented in the Member States, are completed (both surveys are planned to be carried out annually since 2004), they will also be introduced in the candidate countries. SORS is planning to take over and perform an independent survey of e-enterprises in 2003 (at the moment this is done in the framework of the RIS project). The final decision will, however, depend on the dynamics of the abovementioned integration of Slovenia into the planned Eurostat pilot projects, primarily for the reasons of avoiding duplication of tasks.

The existing statistical monitoring of the major part of international services would be significantly affected by the Regulation (EC) No 2560/2001 of the European parliament and the Council of 19 December 2001 on cross-border payments in Euro, by means of which the EU restricted the reporting of amounts of international payment transactions for the balance of payments statistics to EUR 12,500 on 1 July 2002, anticipating the increase of this amount to EUR 50,000. Nevertheless, quality data on the exchange of services will have to be provided regardless of this regulation.

Tourism is an activity, which is increasing sharply all over the world. The events that can influence the drop in the number of tourists in one area may cause the flow of tourists be redirected to another area where the increase is significantly higher. To be able to monitor the situation, analyses and forecasts, accurate data are needed which can be provided by up-to-date tourism statistics. Their usefulness will increase in line with improved comparability of data from various countries. In 1995 the European Union adopted the Directive 95/57/EC on the collection of statistical information in the field of tourism. The first two parts of the Annex to this Directive determine data related to accommodation statistics, and the third part sets out collection of data on turism demand. Monthly accommodation statistics enables monitoring of the volume of accommodation capacities (rooms and beds) in all types of accommodation facilities, arrivals of domestic and foreign tourists and their overnight stays. The result is in fact the calculation of occupancies of accommodation facilities. Slovenian accommodation statistics meets almost all requirements, however, smaller adjustments will be required only in publishing the data on bedplaces. The Office accomplishes the requirements regarding data on tourism demand with a quarterly Survey on travels of domestic population. The global picture of situation and development of the Slovenian tourism is complemented by surveys on nautical tourism, those on functioning of travelling agencies and the visiting of tourist attractions, swimming pools and casinos.

Table 4: Connection of the policy »Freedom to provide services« with statistical domains

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IV. FREEDOM TO PROVIDE SERVICESMain statistical domains 49 Communications

50 Tourism52 Money and finance54 Trade in services and balance of payments

Other important statistical domains 34 Culture47 Distributive trade

Main guidelines for the 2003–2007 period

Information society statisticsAs Slovenia is about to join the EU in the immediate future, SORS will follow the present and future guidelines issued by Eurostat and DG INFSO in the area of information society statistics, also by means of direct participation in certain activities of their short- and medium-term action plans, such as:

- eEurope + indicators and the annual ISS questionnaire;- preparation of the Eurostat database and surveys on the use of ICT in enterprises (in 2004) and

households (pilot projects pursuant to European legislation, planned to be adopted in 2003)- collection of data on e-government – surveys on the use of ICT in public administration in

2004 (probably together with the EU Member States);- action plan eEurope 2005 – including new contents into the questionnaires of e-households and

e-enterprises (e-education, e-security) and definition of e-sector;- temporary revision of NACE and CPA for the ICT area;- continuous co-operation in development projects;- structural indicators for the ICT area; - publication of new contents.

Expanding the activity and gradual incorporation into the European statistical system is expected by 2003 also in the field of audio-visual services (cinematographic statistics will be developed as well as radio and TV services, the market of video games monitored and international exchange of audio-visual services organised, the AUVIS database will be completed, data on audio-visual services will be incorporated into SBS.After the year 2005 the measurement of the effects of information society development will gain importance and there will be more requirements for new data on telecommunications, postal and audio-visual services. The new Member States of the European Union will have to take part in the newly developed statistical surveys.

Tourism statistics- improved quality of data on accommodation statistics, especially as regards monitoring the

capacities in accommodation facilities (full alignment with the requirements of Directive 95/57/EC on the collection of statistical information in the field of tourism);

- procedures for transmission of data will be prepared according to the Eurostat requirements (Gesmes); this applies to all data on accommodation statistics and data on tourism demand;

- in the years 2003 and 2006 a survey on foreign tourists in Slovenia in the summer season will be carried out (and will serve as one of the sources for calculating income from tourism;

- introduction of tourism satellite account (TSA) will enable an integral and comparable evaluation of tourism effects in individual countries.

National statistics performer: Statistical Office of the Republic of Slovenia, the Bank of Slovenia, the Ministry of Finance, the Agency of the Republic of Slovenia for Public and Legal Records and Services

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Participating institutions: Agency of the Republic of Slovenia for insurance surveillance, Securities Market Agency, Ministry of Justice, Slovenian Tourist Board, Ministry of Economy, the Chamber of Commerce and Industry of Slovenia, the Tax Administration of the Republic of Slovenia.

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V. FREE MOVEMENT OF CAPITAL

Subject of the policy

On the basis of the Europe agreement on accession in the area of free movement of capital, adopted by Slovenia, the credit transactions and portfolio investments were liberalised gradually, while foreign direct investments were not subject to any restrictions. When Slovenia joins the EU, the remaining restrictions on issued foreign debt securities in the Republic of Slovenia, and issued equity securities abroad and investments of households abroad, will also be removed. By the end of 2002, the Act amending the Prevention of Money Laundering Act will be adopted, and the Slovenian legislation thus aligned with the Directive 2001/97/EC40. The central body in charge of discovering and preventing money laundering is the Office for the Prevention of Money Laundering, which has at its disposal all relevant information, including statistical data, on money laundering, and it is at the same time the authority responsible for the exchange of information under the Council of Europe's Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime41.Foreigners in Slovenia are entitled to acquire the ownership right to a real estate property pursuant to a law or an international agreement although in both cases the condition of reciprocity stipulated by Article 68 of the Constitution of the Republic of Slovenia must be provided for. This will not apply to those citizens or legal entities of any state, member of the EU on the day Slovenia joins the EU42.

Principal contents of the CSP: The Programme of the Community combines the policy of freedom of movement of persons with the policies of freedom to provide services and free movement of capital.

Statistical support to the policy

Capital flows in the framework of balance of payment statistics and balance sheet of international investments were monitored closely from the point of view of statistics at the moment the restrictions on international capital flows were lifted, for the reasons of great significance of successful management of the effects of capital flow conversion on the exchange rate of the small tolar area.

Table 5: Connection of the policy »Free movement of capital« with statistical domains

V. FREE MOVEMENT OF CAPITALMain statistical domains 47 Distributive trade

50 Tourism54 Trade in services and balance of payments

40 The proposed amendments to the legislation are aimed at achieving the following goals: (i) expanding the circle of those obliged to carry out certain tasks in the area of fighting against money laundering, so as to include lawyers, notaries, public, natural and legal persons carrying out the activity of organising and implementing auctions or art trade; (ii) determining obligation of the lawyers, notaries public, auditors, accountants and tax advisors to identify their clients, keep records and data on the services provided; (iii) it is planned that insurance companies will no longer have to carry out identification processes; (iv) non face-to-face identification of clients is also planned; (v) a novelty is planned in the field of collecting data on legal entities, namely, that data on the so-called “true owners” i.e. the beneficial owners must also be obtained. (National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 30).41 Negotiation position of the RS for the accession to the EU, January 2000, page 70.42 Negotiation position "Free movement of capital", Internet, http://www.sigov.si/ops/slo/pi/problemi.html.

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Main guidelines for the 2003–2007 period

- Development of a stable and flexible collection of globalisation indicators.

National statistics performer: Statistical Office of the Republic of Slovenia, The Bank of Slovenia, Agency of the Republic of Slovenia for Public and Legal Records and ServicesParticipating institutions: Foreign Exchange Inspectorate of the Republic of Slovenia, Office of the Republic of Slovenia for Prevention of Money Laundering, Securities Market Agency, Tax Administration of the Republic of Slovenia.

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VI. TRANSPORT

Subject of the policy

In Slovenia, transport flows are mainly concentrated on roads43, which is closely related to unsatisfactory state of road safety and pressure exercised on the environment. Among the reasons for which the use of railway transportation is still far below the available and economically interested volumes are the development or economical and political reasons as well as the geographic characteristics of Slovenia and technological characteristics of railway infrastructure. The advantages of railway transportation compared to road transportation include significantly lower levels of environmental burdening (a railway line requires much less space than a highway, is less polluting and consumes less energy per unit of service provided).Slovenia has already concluded a transport agreement on road transportation with the EU, resolving the issues of transit through the EU but not through the territories of individual Member States. Therefore, Slovenia has also entered into bilateral agreements on road transportation with all individual Member States except from Finland and Portugal.As far as road transportation is concerned Slovenia expect the majority of problems in implementing the technical, environmental, fiscal and social regulations (use of tachographs, transportation of dangerous substances, minimum working standards, ensuring financial rating of road carriers, training, etc.). It will be especially difficult to adapt to the new operating conditions for small carriers, the number of which has been increasing rapidly in the last years and who do not have adequate human and financial resources for adapting to the single European market. The carriers will also be affected by directives covering the transport of dangerous substances and technology, security and environmental impacts. Slovenia expects that by implementing the acquis communautaire upon its membership in the European Union the transport market will be fully opened to Slovenian road carriers (including the cabotage44).In railway transportation, the key directives on free access to railway infrastructure, allocation of infrastructure capacity and charging of infrastructure fees will be the most problematic45. The adoption of the key directives brings major changes into the functioning of railway industry and demands total reorganisation of the public enterprise Slovenian Railways: the most important is the separation of the management of railway infrastructure from the transport activity. As this is a small market, the transit rights granted to third parties may seriously endanger the existence of Slovenian railway industry.In air transport, the major problem is the multilateral Agreement on European Common Aviation Area (ECAA) since the existing Constitution of the Republic of Slovenia does not allow the possibility of transferring the competences to individual EU institutions. In maritime transport, inland water transport and combined transport, no significant problems are expected in the process of harmonisation with the EU46.

The principal contents of the CSP: Transport is an important part of regional and environmental policies which is why special attention is paid to sustainable development indicators.

43 In the last decade Slovenia was flooded with personal cars, which is why public transportation is used less and less often. The rate of personal car ownership is already at the European level and in the early 1990s the road freight transit from and to the EU through the fifth corridor was liberalised completely. The Parliament adopted the National Motorway Construction Programme which is still underway with significant delays and much higher costs than estimated. In this period the investments in railways and other roads stagnated while public transportation on roads and railways is also decreasing and becoming less and less profitable. (Report on the implementation of sustainable development in Slovenia, working draft for public discussion, April 2002, Internet http://www.danesjutri.si/tr_porocilo.html/ pages 15 and 16).44 Cabotage means transportation on the territory of a certain country performed by a vehicle registered in another country (e.g. a truck with Slovenian registration plates transporting goods in Germany).45 Allocation of infrastructure capacity and charging of infrastructure fees.46 Negotiation position Transport, Internet http://www.sigov.si/ops/slo/pi/podrobno.html – updated 21 December 2001.

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Important data on the flow of cargo and passengers, transport flows, infrastructure, equipment, personal mobility, security, energy consumption, environmental impact, costs and prices of transport and transport companies.As the transport markets will be open for competitors, objective statistical data will be necessary for monitoring the developments on these markets and assessing the impact of such developments on employment and working conditions in transport companies and on economic ability of such companies to survive. There will be more demand for statistical indicators related to security and quality of services. Statistical data on freight transport will have to be collected that will provide information on multi-modal transport chain and on freight transport viewed from the market perspective.The demand for data on transport, expressed in kilometres per vehicle is increasing in all areas of transportation, as they are very important in monitoring traffic jams and gas emissions.Heavy investments into European transport infrastructure will continue, especially in the transport TEN, due to which specific needs for infrastructure and market trend statistics will occur.

Statistical support to the policy

As regards surveys in the area of transport statistics, the Statistical Office has coverage of trend-cycle and structural data. From the methodological point of view the development of transport statistics in the recent years mainly focused on revised monitoring of road freight transport (1997-2001) and air and maritime transport (2001-2002) by means of pilot projects for candidate countries applying for membership in the EU (Eurostat/Phare). In the future, these countries are expected to be directly participating in the pilot projects of the Member States of the European Union (especially in the field of railway and intermodal transport). At the moment, the question of implementation and especially financing of such activities before the candidate countries join the European Union is still open, since no special projects or funds are foreseen in the framework of the Phare project as regards transport statistics. To be able to assess and improve the policies and incentives by developing linked and competitive systems in line with the process of liberalisation of European transport, the implementation of the Common Transport Policy (White Paper; European transport policy for 2010) and the development of Transeuropean transport networks (TENs) will require exhaustive, detailed and up-to-date information on the functioning of the European transport system. These are extremely important for the creation of environmental and regional policies. The new methodological approaches and especially the incorporation of the multi-modality concept and its linking with the concept of interoperability of transeuropean transport networks have a strong impact on the new orientations and solutions in collecting data on transport. With the increased use of the state-of-the-art technologies (EDI, GIS), the collection of data will have to be simplified as much as possible and thus decrease the burden imposed on reporting or observation units. The introduction of these technologies will nevertheless influence the development of new analysis concepts and presentation of collected data. For the development of mobility to be harmonised with environmental requirements a statistical system will have to be established that will be able to currently measure the impact of the transport on the environment and the security. Priority tasks in the process of alignment with the requirements of the European statistical legislation will include further participation in the Eurostat’s workgroups in individual transport areas plus participation in new pilot projects. We will continue to participate in the UN/ECE transport statistics workgroup (Geneva, WP.6) for the construction of European information system and database with the Common Questionnaire for Transport Statistics (Eurostat, ECMT and UN/ECE) and the Glossary of Transport Statistics serving as the terminological and methodological basis. Besides the harmonisation and improvement of the existing and newly developed surveys, development of databases, collection, processing and dissemination of data, attention will also be paid to development projects designed to fulfil the requirements of transport policy in the new millennium (statistical monitoring of combined transportation, tendencies and prices of transport services, adequate measurement of the impact of transport on the environment, etc.). All planned activities will require closer connections and co-operation of administrative bodies, which especially applies

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to the relations between the Statistical Office with the Ministry of Transport and Communications and the Ministry of the Interior.

Table 6: Connection of the policy »Transport« with statistical domains

VI. TRANSPORTMain statistical domains 48 Transport

72 Regional and geographical information

Other important statistical domains 44 Statistics on the economic activity of enterprises45 Energy and raw materials49 Communication50 Tourism53 Trade in goods61 Land use and landscape71 Environment statistics and indicators

Main guidelines for the 2003–2007 period

In general, Slovenian transport statistics is quite well adapted to domestic requirements as well as the needs for reporting to UN/ECE and the EU (Eurostat), as this was necessary due to the specific linking nature of this industry. Adaptations and new methodological approaches will be required by the existing and the planned future European legislation, related mainly to the development of indicators for individual types of transport, in the 2003-2007 period, in the following areas:

railway transport (new regulation in 2002); harbour transport and maritime freight transport; container and other combined transport (intermodal concept); flows of goods by modes of transport; air transport; population mobility; transport enterprise statistics (EU structural indicators) regional transport statistics (development of new indicators); transport and environment (development of indicators, TERM); classifications of goods, means of transport and countries; transport service price statistics; statistics of expenses for transport infrastructure; Safety and quality of transport services.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of Transport, Ministry of the Interior, Chamber of Commerce and Industry of Slovenia, Chamber of Crafts of Slovenia, Slovenian Railways

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VII. COMPETITION RULES AND TAXATION

Subject of the policy

Competition policy is regulated in all developed economies. The global policy of competition under the auspices of the World trade organisation (WTO) is gradually building common bases, the WTO assuming the role of international co-ordinator and supervisor in multilateral areas. At the EU level the competition policy is supervised by the European Commission and the European Court. The EU competition policy has three objectives: integration (efficient and supervised competition in the market), economic and the objective of equality and justice (protection of consumers and small enterprises).Slovenian competition legislation is aligned with that of the EU in terms of substance47

(functioning of monopolies and other forms of dominant market position: cartels, vertical restrictions and mergers which lead to anti-competitive practices, and it includes provisions related to the prohibition of unfair competition; dumping and subsidised imports, unauthorised speculations and operations limited by the state) but also wishes, besides increasing international competitiveness of Slovenian economy, to pursue its principal objective in operative implementation, which is to protect competitiveness48.In the more and more rapid globalisation, the key areas of competition policy will become takeovers and mergers of enterprises49. Therefore, it is necessary to define the strategic position towards all forms of alliances between enterprises. As the global market is interlinked with various relationships, it is sometimes difficult to establish the difference between co-operation and competition. Sample surveys in Slovenia have shown that about one quarter of Slovenian enterprises intend to take over another enterprise in the near future.50

Micro-economic redistribution of national income (state aids) in favour of individual companies and groups of companies causes distortions in the market in favour of the recipients of such aids, which is why it is strictly restricted by the European (and global) regulations.State Aid Control Act was adopted in 2000, and institutions for ex ante and ex post state aid control were introduced gradually. Thus the norms were set but not the substantial basis of European regulations in this area. State aids in Slovenia are intended for resolving social tensions in failed large enterprises and covering regular operating costs and to a certain extent also for accelerating development activities. When Slovenia joins the EU, or when Slovenian businesses come to the EU single market, Slovenia will not be able to make decisions about state aids anymore (except from block exemptions and state aids according to the “de minimis” principle) as the European Commission in Brussels will be the one to decide on Slovenian state aids. There will be certain exemptions in textile, footwear and steel industries.Regarding the selection of instruments of the state aids the principle of transparency foresees the aids in the form of donations, which are however the least appropriate from the point of view of budgetary effects on the economic growth. Such aids granted by means of tax allowances, low-interest loans, state indemnities and similar instruments are much cheaper for the state and its 47 National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 39.48 In Slovenia special attention will have to be paid to the actual ability to implement the acquis communautaire and not only the legislative regulations. The principal issue is institutional capability and ability to carry out supervision.49 Among the indicators of competitiveness work efficiency is one of the most important indicators of competitive ability of the population.50 The activities aimed at raising the level of competitiveness of the entrepreneurial sector in Slovenia are the following: finish transitional restructuring with ownership consolidation, establishment of efficient ownership structure and introduction of long-term owners of the enterprises; definitively resolve the problem of enterprises operating at a loss with no real perspective; provide conditions for faster development of the competitive entrepreneurial sector of the Slovenian economy and speed up new domestic and foreign entries in the market, abolishment of administrative barriers for investments, promotion of economy internationalisation and stimulation of SMEs development. (IMAD, Development report, Ljubljana, 28 March 2002, page 17).

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budget while the recipients are obliged to use such aids for the actual purposes for which they were granted. To be able to use such instruments, the state should set up an additional system of monitoring and assessing the elements of state aids, thus ensuring transparency, and also establish an adequate system of supervision over the effects of granted state aids51.Since 1 January 2001, the resolution is in force, passed by the Accession Council of the EU on extending the transitional period referred to in Article 65 of the European Agreement on Accession in relation to state aids for underdeveloped regions for four years. During this period all state aids granted by the Republic of Slovenia shall be assessed according to the fact that Slovenia is a territory considered equal to the territories of the Community, determined in Article 87(3)(a) of the Treaty on the European Community. In July 2001, Slovenia submitted to the European Commission the proposal of a Regional Map of State Aids. Since June 2001 the implementation rules for state aids are in force52.As regards taxation53, the negotiation process defines the elements and the dynamics of alignment of the Value Added Tax Act in cases of minor deviations and with the requirements of intra-community transport taxation. Alignment of the legislation with acquis communautaire must also be improved in certain areas (special situations in international passenger transport)54.The Tax Administration of the Republic of Slovenia is currently preparing a study on possible implementation of the VAT Information Exchange System55.

Principal contents of the CSP: A statistical programme is not necessary. Statistical information for this area can be obtained from data and indicators prepared for other policies within this programme.

Statistical support to the policy

To be able to monitor the growth in domestic and international competitiveness of the Slovenian economy, the statistical institution(s) will supplement the existing indicators of productivity growth, monitor the process with the indicators for business demography and variables of the relations between the units, and also improve statistical monitoring of the prices of individual products and services. On the basis of such data the parities and disparities of prices will be analysed and price dispersion in domestic market and in international comparisons as well as the indicators of economic convergence with the EU and the power of competition.

In co-operation with other institutions, the system will be set up for monitoring state aids and their effects.

Table 7: Connection of the policy »Competition rules and taxation « with statistical domains

VII. COMPETITION RULES AND TAXATIONMain statistical domains 32 Labour market

40 Annual economic accounts

51 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary, pp. 95–100.52 National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 40.53 In 1999 the Republic of Slovenia adopted the Value Added Tax Act, the Excise Duty Act, the Real Property Sales Tax Act, the Gambling Tax Act, the Tax Act on Insurance Contracts and the Customs Service Act. In 2001 the Republic of Slovenia adopted the Act Regulating the Transformation of Duty-Free Shops at Road Border Crossings with Member States of the European Union, the Act Amending the Economic Zones Act and the Act amending the Excise Duty Act. In 2002 the Order on the Implementation of Article 45 of Excise Duty Act (National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 102).54 Negotiation position "Taxation", Internet, http://www.sigov.si/ops/slo/pi/problemi.html.55 National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 102.

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43 Monitoring own resources53 Trade in goods

Other important statistical domains 44 Statistics on the economic activity of enterprises45 Energy and raw materials48 Transport49 Communications 63 Agricultural incomes and prices64 Crop production 65 Animal production66 Agro-industry statistics

Main guidelines for the 2003–2007 period

- developing of additional indicators of labour productivity;- ensuring data for the analysis of parities, disparities and price dispersions;- streamlining and expanding statistical surveys by using tax sources.

National statistics performer: Statistical Office of the Republic of Slovenia, Agency of the Republic of Slovenia for Public and Legal Records and Services

Participating institutions: Ministry of the Economy (The Competition Protection Office of the Republic of Slovenia), Tax Administration of the Republic of Slovenia.

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VIII. ECONOMIC AND MONETARY UNION

Subject of the policy

Macroeconomic policies (monetary56, income57 and fiscal policy) have played their stabilising role in the period since Slovenia became independent very successfully. Relatively restrictive monetary and fiscal policies are the reasons for the successful macroeconomic stabilisation in the first half of the 1990s. In 2000, the tendencies of increased budgetary deficit and higher inflation rate appeared again and the balance of payments deficit remained at the same level. The budgetary deficit has destabilising effects primarily due to higher interest rates, if financed from domestic sources. This directly increases the costs of economy and thus the inflation and indirectly, by stricter conditions for indebtedness and transfers of domestic savings from the private to the public sector, ousts private investments and prevents economic growth. If the budgetary deficit is financed from foreign sources, the tendency of the balance of payments deficit in accelerated, thereby causing external imbalance.It is important to maintain a stable macroeconomic environment in the pre-accession period, since integration in the EU will significantly change the role of monetary policy and there will also be major changes in the field of fiscal policy.There are two important periods: (i) period before accession of Slovenia to the EU; (ii) period between accession of Slovenia to the EU and accession to the EMU58.In the first period Slovenia will keep its monetary sovereignty (independent monetary and exchange rate policy), which shall nevertheless be reduced in line with the assumed obligations on liberalising capital flows.In the second period Slovenia will formally join the EMU, however, with derogation regarding the Euro. In the EU’s opinion the shortest possible period between joining the EU and joining the EMU is two years. This can be done if a certain country decides to enter, immediately after joining the EU, into the European Exchange Rate Mechanism (ERM 2) 59. Once in the ERM 2 the Member State keeps its monetary sovereignty, although very limited. For Slovenia this would mean: no more independent exchange rate policy, which would have to be formed in agreement with the ECB; transfer to the mechanism of fixed but flexible exchange rates; transition from monetary to exchange rate targeting and bring along the need for harmonisation of interest rates with those of the European Union. The same applies to inflation rate.

56 The principal objective of the monetary policy is to gradually reduce inflation to the level which will enable integration of Slovenia into the EMU. This will ensure stability of domestic currency and also stabilise the macroeconomic situation. The Bank of Slovenia will continue to lead a restrictive monetary policy, especially by restricting the supply of money, which will contribute to lower rate of inflation.57 Income policy is a national competence. Its objective will be to slow down the growth in gross wage per employee, so that it will grow slower than work efficiency, thus lowering the rate of inflation and creating such circumstances which will enable enterprises to increase their investments in technology, markets and human resources and consequently strengthen competitiveness and increase the level of employment.58 The new Bank of Slovenia Act (third reading in the National Assembly of the Republic of Slovenia) stipulates the following changes: ensuring independency of the members of the Bank of Slovenia Council with the procedure of appointment and the provisions on the incompatibility of function; ensuring the institutional independence of the Bank of Slovenia in relation to the National Assembly and other bodies of the Republic of Slovenia; explicit prohibition of financing the state from the part of the central bank pursuant to the EU Council Regulation no. 3603/93. The Act will also include provisions regulating the period of transition into the Euro Area. (National Programme for the Adoption of the Acquis – Revision 2002, no. 0131-2/2002,20, of 17 May 2002, proposal to be adopted by the Government of the Republic of Slovenia, page 108).59 ERM 2 is a mechanism for regulating exchange rates based on fixed, but flexible exchange rates. In this mechanism the state has its official exchange rate, negotiated with the European Central Bank (ECB), which is supposed to be balanced, although it is not defined what this actually means. The state is supposed to keep this rate within certain (narrow or broad) limits (in case of broad limits this would mean a 15% deviation on each side of the official exchange rate). Within the set limits the exchange rate is flexible, i.e. a kind of regulated floating exchange rate, while the official rate and the set limits make it a fixed exchange rate.

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After the introduction of the Euro the economic policy makers in Slovenia will have less room for manoeuvring as regards intermediation. Their concerns for stability will be shown in the income and fiscal policies and the transferring of the focus from macroeconomic to microeconomic or structural policies, which are primarily aimed at influencing the efficiency and competitiveness of the economy. The employment and education policies must provide sufficient mobility and stability of labour force and thus restructuring of economy so that the microproblems of competitiveness in individual sectors of economy do not turn into a macroproblem of Slovenia as a whole60.

Principal contents of the CSP: Statistical monitoring of the economic and monetary policy will help align the macroeconomic policy and the monetary political functions of the European system of central banks. The Stability Pact brought new statistical requirements while the importance of measuring the volume of economic convergence remained. The activities in the field of short-term indicators, demand, production, labour market, prices and expenses will continue. New methods will be introduced (quick estimates, etc.) in order to improve services provided for the needs of business cycle analysts. Simultaneously, monetary and financial indicators will be further developed.The EMU’s statistical requirements stimulate permanent improvements in the field of promptness and data capturing. Quarterly national accounts and quick assessments will have to be made in due time. There will be a considerate amount of work in the field of quarterly financial and non-financial accounts of institutional sectors, which must be fully harmonised with annual accounts and short-term public finance. The requirement for counter-items in financial accounts, showing the inter-sectoral relations “from who to whom” is an important tool for the analyses of monetary policy.The quality of data on permanent and current prices will also be paid special attention. A lot of work will have to be done in the field of aligning the statistics on convergence criteria. The HICP methodology will have to be supplemented and consolidated in the framework of Council Regulation (EC) no. 2429/95. The budgetary situation and public debt will have to be monitored (Article 104 c of the Treaty establishing the European Community and the Stability Pact signed in Dublin) on the basis of public sector accounts, made according to the ESA95 methodology. Alignment and comparability will be reviewed.For the reasons of monitoring the economic development the need for full implementation of the programme for the transfer of data in the national accounts pursuant to the Regulation on ESA95 is growing, especially as regards promptness and capture, and will have to be gradually extended to new areas.The work in the field of composing the principal account aggregates in the field of purchasing power parity will continue.In the field of balance of payments statistics, the reporting thresholds are very important. They are planned to be changed, which will require a significant amount of development work in order to ensure that the quality of such data remains the same. The Member States are supposed to provide high quality and important data on service trade, foreign direct investments and operations of foreign branches for the European institutions.

Statistical support to the policy

Pursuing its goal of full membership in the EU and membership in development and dissemination of statistics, Slovenia will have to follow the directions and guidelines of the EU medium-term statistical programme related to the functioning of economic and monetary policy of this community in the next medium-term period.

For the analysis of monitoring the development of economy, its efficiency growth, the changing of its structure, the statistical office will continue to implement the European system of accounts (ESA95). Besides additional activities which include preparations of the entire set of financial and 60 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pages 41–43.

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non-financial accounts for all institutional sectors, the promptness of publication, quality of data and transparency of methodology will also be improved. As all Member States of the EU Slovenia will provide all data according to ESA95. Special focus will be on capturing production in the calculation of gross domestic product, its growth and calculation of individual elements of this macroeconomic aggregate (final private consumption of households, general government expenditure, investments, etc.). Transfers calculated on the basis of gross domestic product will account for 60% of the EU budget.

The Ministry of Finance will continue providing public finance statistics, based on the standards of the International Monetary Fund for various domestic and foreign users. In the next medium-term period additional requirements will be taken into account when preparing data for this statistical domain determined in the new manual for public finance statistics (among other data will be shown according to the principle of calculation) issued by the International Monetary Fund in 2001.

Slovenia (i.e. the Ministry of Finance in co-operation with SORS) will put extra efforts in improving the system of preparation of statistics for the needs of reporting on national deficit and the EU debt on the basis of ESA95 and additional methodological basis in the next medium-term period with the aim to align the provision of such statistics with the quality standards prescribed for the Member States of this community.

For the needs of following the monetary, economic and fiscal policy the short-term statistical indicators of demand, production, labour market, prices and expenses, finance and money will be further developed.

The methodological bases and practices of price statistics will be under permanent pressure of rapid market, technological and institutional changes including those brought about by territorial division of Slovenia. Statistical indicators in the field of prices, including the purchasing power parity, play an important role in monitoring of convergence criteria and pursuing other national policies. In order to ensure quality of these indicators, more emphasis will have to be placed on verifying and improving their accuracy from the point of view of sample size on which they are based. As a consequence, the required additional volume of data collection will have to be assessed as well as additional expenses, mainly as regards new requirements for the needs of purchasing power parities.

Quarterly non-financial accounts and quarterly financial accounts established also for institutional sectors which will have to be fully harmonised with the annual national accounts and short-term public finance statistics will be completed.

When Slovenia enters the European Union the Bank of Slovenia will become part of the European System of Central Banks (ESCB) and will have to start using the ECB’s and ESCB’s By-Laws together with statistical obligations of a »non-participating member state« (states that are not members of the EMU). This will mean formal obligation to fulfil statistical requirements needed for entering the monetary union, to which Slovenia and other associated EU countries already started to adapt in 2000. This means full harmonisation with the requirements of monetary and bank statistics (the list of monetary financial institutions, balance sheets and interest rates of monetary financial institutions, and other). The Bank of Slovenia already co-operates with the ECB in the process of aligning the Slovenian monetary and bank statistics and gradually increased the volume of data provided for the European Central Bank.

Slovenia is already sending to Eurostat and the European Central Bank the Slovenian balance of payments. Because of great importance of such statistics for the Slovenian monetary area its quality will have to be maintained until joining the monetary union, regardless of the prescribed reporting threshold in international payment transactions planned to be increased from the proposed EUR 12,500 to EUR 50,000.

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The Bank of Slovenia is developing the Slovenian Financial Accounts according to the requirements of Eurostat, which will be complemented with the ECB’s requirements regarding the Monetary union financial accounts, MUFA which are foreseen to be reported quarterly.

Table 8: Connection of the policy »Economic and monetary union« with statistical domains

VIII. ECONOMIC AND MONETARY UNIONMain statistical domains 40 Annual economic accounts

41 Quarterly and environment accounts42 Financial accounts52 Money and finance55 Prices

Other important statistical domains 32 Labour market53 Trade in goods54 Trade in services and balance of payments

Main guidelines for the 2003–2007 period

- to continue development of annual national accounts for Slovenia according to ESA95 and other relevant documents of the EU;

- to upgrade quarterly non-financial accounts and to establish quarterly financial accounts;- improve statistical reliability of price indices and other data on prices from the point of view of

sample size on which they are based;- further improvement of HICP methodology from the point of view of EC regulations,

especially in the field of “quality adjustment” of products and services;- transfer to standard Government Financial Statistics (GFS 2001) of the International Monetary

Fund;- gradual adaptation to methodological and technical standards of the ECB.

National statistics performer: Statistical Office of the Republic of Slovenia, Ministry of Finance, Bank of Slovenia, Agency of the Republic of Slovenia for Public and Legal Records and Services

Participating institutions: Tax Administration of the Republic of Slovenia

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IX. COMMON COMMERCIAL POLICY

Subject of the policy

The policy of international economic relations will be carried out at three levels: (i) national, (ii) supranational (EU) and (iii) international (WTO, OECD etc.).Slovenia will strive to strengthen the Slovenian economy in the EU internal market and global orientation (increased economic co-operation with the USA, Japan and other most influential developing countries). The shares of imports and exports as well as input and output foreign direct investments (FDI) in the GDP are the two basic indicators of economic internationalisation61.By joining the European Union, Slovenia will become member of the Customs Union, which means that it will have to: (i) eliminate the existing trade barriers towards other Member States of the EU, (ii) adapt its commercial policy towards third countries to that of the Community (adopting the common customs tariffs and the rights and obligations of the EU towards third countries). As the Member of the EU, Slovenia will regulate its relations with other Member States with the competition policy and its relations with the third countries with the commercial policy. In practice this will mean losing national sovereignty regarding anti-dumping measures and conclusion of trade agreements. The restriction also applies to service trading, where the EU’s room for manoeuvring is narrower since the approval of all members of the EU Council of Ministers.With the membership in the EMU the management of exchange rate policy will no longer be possible. The EU will have significant influence on Slovenian: (i) customs regulations, (ii) export support (export crediting and acceleration) and (iii) state aids to the economic sector62.The mechanism of insuring and financing of international economic transactions will be extremely important. The state will no longer be present in the sector of insurance for the so-called marketable risks which will be transferred to the private sector. In the process of Slovenia’s integration into the EU, this part of operations, at the moment performed by the Slovene Export Corporation, will be transferred to a specialised credit insurance company.Slovenia’s activities in south-eastern Europe comprise great interest of Slovenian enterprises in foreign direct investment in the republics of the former Yugoslavia. As a Member State of the European Union, Slovenia will be more protected in carrying out businesses in these countries, especially as regards introduction of unexpected additional trade barriers, since all countries, members of the WTO, will be able to apply the new mechanism of resolving trade disputes.It is important to ensure continuous strengthening of co-operation in bordering regions63.Slovenia requested a ten-year period, after joining the EU, in which it can preserve its free-trade agreements in order to achieve two goals – establish the importance of trade with Croatia and Macedonia for the Slovenian economy and reach a consensus for further development of economic relationships with Bosnia and Herzegovina and Yugoslavia. Slovenian enterprises are strengthening their position of investors and not only as sellers in the markets of the former Yugoslavia which changes the diversity of interests if the Slovenian economy64.

Principal contents of the CSP: For further negotiations on the General Agreements on Trade in Services (GATS), quality data are of extreme importance. Data on external trade in services (the geographical breakdown as well as details on individual elements), foreign direct investment and trade of foreign branches must be in compliance with quality standards, required details and level of alignment required by the Commission’s services in charge of implementing the commercial

61 As regards output FDI in the GDP Slovenia lags significantly behind the EU Member State (except from Greece). (IMAD, Development Report, Ljubljana, 28 March 2002, page 21).62 The structure of aids shows that Slovenia allocates state aids primarily to those with horizontal goals (research and development, SMEs, employment, education, etc. In 2000, 11.8% of state aids were intended for resolving the problems of restructuring while in the EU the respective percentage is 1.4%.63 The Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pages 100–102.64 Negotiation position on “Customs Union” and “External economic relations and international development aids”, Internet, http://www.sigov.si/ops/slo/pi/problemi.html.

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policy. The reliability of import and export prices statistics must be improved so as to ensure more precise measurement of international competitiveness of products.

Statistical support to the policy

Data on external trade represent an important basis for monitoring bilateral and multilateral relations between the countries and for exercising adequate commercial policies related to the trading of goods. Such data must be broken down by tariff codes of the Combined Nomenclature while individual transactions must be appropriately marked as regards preferences and trade agreements applicable to individual shipment of goods. Dissemination of statistical data on external trade developed rapidly in the last years and can now provide adequate information required for decision support in commercial policy.

In 2002, Slovenia started to publish value data on external trade in Euros as the secondary currency. Series of data for previous years were also prepared (1996-2001, in ECU for the 1996-1998 period). This transition means improvement of the quality of data on external trade. Data expressed in Euros give a more realistic picture because of the currency structure of Slovenia’s external trade (more than 80% of goods transactions in 2002 were carried out in Euros) and are thus a better basis for decision support in commercial policy compared to the data expressed in USD, which were strongly influenced by inter-currency changes. Publishing the data on external trade in Euros is also Slovenia’s next step in the process of complying with the methodology of external trade statistics compiled in the Member States of the European Union.

Increased importance of the tertiary sector, transfer of negotiations in the WTO from GATT to GATS as well as the processes of globalisation require more qualitative and adequately detailed data on external trade in services (such data are provided in the framework of balance of payments statistics) and development of new marginal statistical domains not yet sufficiently covered since the methodological bases for these new domains are only being developed also in Europe.

The medium-term programme of statistical surveys 2003-2007 covers the period in which Slovenia will become the full member of the EU which will have significant influence on collection, processing and dissemination of data on external trade. The present system in which data on external trade are processed on the basis of customs records, will split into two systems:- statistics on trading of goods between Member States (Intrastat) in which data will be collected directly from the enterprises;- statistics on trading of goods with third countries (Extrastat), which will still be based on customs records.As there exist differences between the two systems regarding the amount of data, level of detail and the methodological definition itself, the basic task in the new medium-term period will be to develop a new model of dissemination of data on external trade, based on consolidated data from both systems. Such model will have to take into account the changes required by the process of enlargement and data required by the ECB related to the monetary union.

Table 9: Connection of the policy »Common commercial policy« with statistical domains

IX. COMMON COMMERCIAL POLICYMain statistical domains 53 Trade in goods

54 Trade in services and balance of payments

Other important statistical domains 42 Financial accounts52 Money and finance

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Main guidelines for the 2003–2007 period:

- development of a new model of dissemination of data on external trade, based on consolidated data from both systems, Intrastat and Extrastat;

- further alignment with the EU legislation and international recommendations of the United Nations Statistics Division;

- adapting statistical classifications for external trade statistics to the annual changes of the Combined Nomenclature;

- improving the quality of export and import price statistics in order to obtain more accurate data on international competitiveness;

- monitoring the development of new statistical legislation and methodological bases related to globalisation processes prepared by the EU and participation in the related activities from the point of view of the impact of globalisation on statistical monitoring of international flows of goods.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of the Economy, Customs Administration of the Republic of Slovenia, Tax Administration of the Republic of Slovenia, Chamber of Commerce and Industry of Slovenia

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X. SOCIAL POLICY AND EMPLOYMENT

Subject of the policy

Social policy focuses on people, their needs and interests, the quality of life and above all human development in its broadest sense. The bases for the above are a long and healthy life, the possibility of education and informing as well as access to means necessary for an adequate living standard.The social development policy will pursue mainly two objectives: (i) ensuring solid social security (ii) enabling and promoting social inclusion. The policy will trigger people to assume an active role in changing their own life, since assuming responsibility for one’s own situation lessens the problem of the so called "moral hazard", resulting in passive people - inactive recipients of aid due to wide-spread and unselective social security system65.Slovenia has adopted national programmes of education, employment, health, housing and social protection in which the foundations of the social development are laid down by defining sectoral objectives, development orientation and strategies, and in certain parts they are also related to the adoption of the programme against poverty and social exclusion66. Most of these documents define the period of development until 2010. The reform of the pension67 and disability insurance and a new strategy for employment and solution of unemployment problems have been adopted 68.

Ensuring safety and health at work is an element of social economic policy. According to the modern concept of safety and health at work, the scope of duties expanded from ensuring workers’ safety at work to protecting and maintaining workers’ health at work. In addition to the fact that a worker’s safety and health are one of the fundamental human rights, the mission in the field of safety and health and work is primarily to prevent injuries at work, occupational diseases and work-related diseases as well as to ensure that workers are able to work throughout their period of service. All of the above also represents a condition for successful performance of an enterprise as well as for productivity and motivation of employees to work. Development and progress of the society as a whole will be closely related to the productivity of the economy. In order to achieve the abovementioned objectives, the government’s measures will be aimed at: (i) managing traditionally recurring risks, (ii) managing risk arising from new dangers, (iii) managing activities which experience proved to be especially risky, (iv) managing safety and health at work with small employers and (v) managing risks in individual categories of workers (young and older workers, workers employed under time-limited working contracts).69

65 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary p. 31.66 Further in the implementation of social inclusion strategy, the following objectives will have priority: (i) expanding the possibility to raise the level of education and improve educating possibilities and incentives; (ii) expanding the possibility to include the unemployed in the programmes of active employment policy, especially those improving employability through new knowledge and skills; (iii) providing faster solutions for the possibility of education, training, employment and independent living of the disabled persons; (iv) ensuring better possibilities of accessing social and non-profit housing and introducing a more adequate system of assistance in rent payment. (proposal – Implementation of social inclusion strategy with the report on the realisation of the programme against poverty and social exclusion, Ljubljana, 28 February 2002, pp. 88 and 89).67 New sources of providing decent income for old age are systemically organised with the possibilities of supplementary statutory and voluntary pension insurance. Following initial problems in setting up financial intermediary institutions (pension insurance companies and mutual pension funds) and after the introductory hesitation of individuals and employers, in 2001 a great increase was recorded in the volume of the abovementioned new types of insurance and consequently specified-purpose savings grew. (IMAD, Development report, Ljubljana, 28 March 2002, p. 40). 68 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary p. 117.69 National Programme of Safety and Health at Work, working material, Ministry of Labour, Family and Social Affairs.

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The main objectives of the employment policy programme, which Slovenia started implementing in 2000, are: improving the population's employability (first pillar), stimulating entrepreneurship (second pillar), promoting the adaptability of enterprises and their employees (third pillar), and ensuring equal opportunities of employment regardless of sex (fourth pillar). The fundamental objectives set out in the national strategy for the development of labour market and employment until 2006 are to raise the population's level of education, diminish discrepancies on the labour market, increase employment, decrease unemployment70 and achieve rapid inclusion of the unemployed in different programmes or their re-employment. The implementation of the entire employment strategy, which will result in more flexible labour market and individuals on that market, will also contribute to more competitive economy.

Employment policy is characterised also by its regionalisation - forming of development partnerships at the regional levels, which will deal also with employment problems. The current migration mobility of the labour force will have to increase in order to achieve more efficient use of the available human resources and other developmental factors. 71

Principal contents of the CSP: (The title of the policy is VIII. Employment. The subject of the social policy is transferred from title XI. Social policy, education, vocational training and youth). New indicators of social exclusion and life-long learning will be introduced. A new survey in the EU covering the statistics on income and living conditions (EU-SILC) will be based on numerous sources and experience acquired in the 1990s, when successive panel surveys on households in the EU were carried out. This survey will become a reference source of comparable data about income and social exclusion at the EU level, providing much information about the living conditions of European citizens throughout a period of several years.Labour statistics have to be completely harmonized by 2007. The European Council has intensified the need to monitor the implementation of the European employment strategy and every year’s implementation of employment guidelines. The Labour Force Survey has to be running continuously and it has to adopt to the list of variables (new employment contracts have to be taken into account, in addition to the quality of jobs, the possibility of protection, child care and life-long learning). It is necessary to collect statistical data more often and to acquire comprehensive data, so that the differences between the sexes (differences in earnings in all economic activities) as well as the gap in skills can be measured. This will include the structure of earnings statistics and the conducting of the Community’s survey on job vacancy.The Regulation on the labour costs index will have to be implemented and short-term labour costs statistics as well as measuring of work efficiency will have to be constantly improved.The last phase of the European Statistics on Accidents at Work (ESAW) is required to be fully carried out in addition to the first phase of the European Occupational Diseases Statistics (EODOS). Indicators will be developed of work quality, work-related health problems and socio-economic health and safety at work expenses. The methodology for ensuring regular statistics about inclusion of the disabled persons into society will be elaborated.

Statistical support to the policy

Timely provision of quality data about the living conditions and implementation of surveys, revealing economic, social and demographic background of the population are crucial for effective support to the social policy. Development, inclusion in the common international system of social indicators and producing of specific national analyses are also important. Due to the above, the social situation can be established, various programmes and strategies can be planned (e.g.

70 At the end of the 1990s, the unemployment rate in Slovenia was lower than in the EU, however, for some years now it has remained between 7% and 8%, whereas in the EU it decreased relatively fast in the last few years. Continuously high share of unqualified unemployed and a high number of long-term unemployed point to a mostly structural character of unemployment. Of the total unemployed 47% have no specialised education. Long-term unemployed account for 60% of the total number of registered unemployed.71 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 54–55.

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Programme to combat poverty and social exclusion) and different social policy measures can be reviewed.

Introduction of a new survey covering statistics on income and living conditions will provide comparable data at the EU level and a source for calculating the required poverty and social exclusion indicators. During implementation of various statistical surveys, administrative and statistical sources will have to be inter-connected as much as possible in order to reduce expenses, diminish the respondents’ burden, improve the quality and ensure timely provision of data.

National statistics collect data about expenditure and benefits of social security programmes according to Eurostat methodology of the European system of integrated social protection statistics (ESSPROS). The goal is to provide a thorough, realistic and clear description of social security within a country at the internationally comparable level. This involves collection of data on expenses arising from individuals' monetary and non-monetary social benefits and their classification in a complex classification system. In addition to quantitative information, qualitative information is also obtained for a certain social security programmes.

In the field of social protection, surveys of national importance are carried out, namely about users, services and forms of protection as well as aid available through departments of social security within the social protection system, to which endangered groups are entitled. In addition to the activity of departments of social security, the work of different social protection institutions, such as old people’s homes, combined social protection institutes, special social protection institutes and work protection centres is also monitored. Likewise, data are followed about the employed disabled persons and the disabled in training at centres and enterprises providing professional training and employment for the disabled persons.

Data are acquired from the database of the Ministry of Labour, Family and Social Affairs about the number of persons entitled to aid and the amount of funds allocated for the rights arising from family aid and motherhood protection, e.g. family allowance, compensation for maternity leave and child nursing, maternity allowance, gift upon the birth of a child, benefit for childcare and large family benefit.

Data enabling the monitoring of the implementation of common European employment policy include data on labour force by main structural characteristic and data on the inclusion in the programmes which will be directly or indirectly promoted, i.e. financed by the general government. Furthermore, the statistics about the labour market will be used also for reporting to the European Commission about the implementation of development programmes co-financed by European structural funds. This area is covered by the European Social Fund and directives regulating the use of funds from the abovementioned fund (also determining obligatory indicators for monitoring). In this sense, statistics will ensure the key indicators necessary for monitoring the labour market and implementing the common strategic guidelines of the employment policy in the EU.

Employers are obliged to report about job vacancies to the Employment Service of Slovenia, therefore, a survey on job vacancies in Slovenia, planned by Eurostat, is not required. Data, based on the methodological and content-related standards, set by the Community, will be provided from the existing database. In case data do not fully meet the requirements, a supplementary sample survey will be conducted, to acquire only the missing data.

Table 10: Connection of the Social policy and employment with statistical domains

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X. SOCIAL POLICY AND EMPLOYMENTMain statistical domains 24 Registers

32 Labour market33 Education and training35 Health, safety and consumer protection36 Level of living37 Social security

Other important statistical domains 31 Population34 Culture35 Health, safety and consumer protection38 Other social statistics44 Business entities’ statistics49 Communications

Main guidelines for the 2003-2007 period

- a new survey in the field of earnings statistics and that on living conditions;- conducting Household budget surveys (for 2005) according to the revised Eurostat methodology;- development of statistical Register of Buildings and Dwellings;- development and finalisation of the methodology for satellite accounts on household production within the framework of Eurostat (based on data obtained from Surveys on Time Use);- monitoring development and introducing a new survey in view of the formulation of new methodologies - Esspross modules (e.g. collecting data on the entitled persons, labour market policies, influence of the fiscal system on social security, etc.);- co-operation in forming a uniform information system of social protection with the Social Protection Institute;- linkage to administrative and statistical sources;- setting up a system of indicators of labour market development and implementation of common strategic orientations of the employment policy in the EU.

National statistics performer: Statistical Office of the Republic of Slovenia, Employment Service of Slovenia, Health Insurance Institute of Slovenia, Old-Age and Disability Pension Insurance Institute of Slovenia, Agency of the Republic of Slovenia for Public and Legal Records and Services.

Participating institutions: Ministry of Labour, Family and Social Affairs, Social Protection Institute of the RS, Institute of the RS for Macroeconomic Analyses and Development, Economic Research Institute, Tax Administration of the Republic of Slovenia, Geodesy Administration of the Republic of Slovenia, Ministry of Finance, Ministry of Health, Chamber of Economy of Slovenia, University of Ljubljana – Faculty of Social Sciences – Institute of Social Sciences.

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XI. EDUCATION, TRAINING AND YOUTH

Subject of the policy

Knowledge is becoming an increasingly important production creator and factor of national competitiveness and investment into knowledge and human resources is essential for the transition into a knowledge-based society. Sufficient investments into human resources are a prerequisite for increasing the competitiveness of the economy (technological development, development of information and service society, public administration reforms), and at the same time they are important for alleviating the current and future problems on the labour market, decreasing social exclusion of vulnerable population groups, improving living conditions and creating social integration. According to some quantitative criteria applicable to education capital, Slovenia lags behind the developed countries. Nevertheless, younger generations undergo longer basic education and enter the labour market more educated and trained than the generations before them. In education of children and the youth, Slovenia is getting close to developed countries of the EU, however, much less favourable results are recorded in comparisons of the adults' educational attainment and their participation in education (in 1998 31%, whereas in most other countries, included in the international surveys, this figure was about 40%). Slovenia is one of the countries who have only started implementing the life-long learning concept. The results of functional literacy assessments (prose literacy, documentation literacy and quantitative literacy) of Slovenian population cause concern (when considered by themselves as well as) also in comparison to other countries participating in this international survey of the OECD. The literacy level of very many adult citizens of Slovenia (between 60% and 75% - depending on the type of literacy) aged between 16 and 65 is below the level required for a technologically developed information society. Of the twenty participating countries, Slovenia is at the bottom - together with Chile, Poland and Portugal. In the following years, development will require not only ever greater functional literacy, but also information and computer literacy, in addition to good knowledge of several foreign languages.In terms of financing and implementation (provision), the government is very active in education. Due to opening of private schools, the demand and supply in the field of education are more harmonized. Greater competition between education providers on the domestic market will improve the quality of education, together with the necessary adoption of the international standards, openness, establishing of connections and co-operation between Slovenian and foreign educational institutions.In the following years, the establishing of national qualification standards and recognising qualifications to individuals who meet these standards (certification system) will result in greater modular design of programmes and easier as well as more numerous possibilities for transition from work to education and back. Moreover, it will open the possibilities for more individualised education and thus better and faster adoption to technological requirements.Development of post-secondary vocational colleges outside the higher education system will have to be promoted in regional centres, which lag behind most as regards human capital. Due to the decrease in young generations, the university system will have to be more oriented towards developing life-long education72.Slovenia has signed the Bologna Declaration, obliging itself to the latest reforms of the European countries in post-secondary education (shortening the under-graduate and post-graduate studies, introducing the credit point system, setting up a system of comparable degree levels and accessibility to detailed information about their contents) 73.

72 Improvement of employability and the quality of living by creating, disseminating and using knowledge for economic and social development of Slovenia will be achieved by the following programmes: (i) employability and life-long learning, (ii) adaptability of enterprises and individuals, (iii) ensuring equal opportunities and social inclusion, (iv) improving the state of health of active labour force, NDP 2001-2006, Bulletin of the National Assembly of the Republic of Slovenia, 19 January 2002, no. 6/1, pp. 245 and 246.73 Strategy for Economic Development of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 50 - 53.

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Principal contents of the CSP: (the policy is entitled Social policy, education, training and youth). Statistical priorities for 2002 will continue to be dealt with (basic skills, information and communication technologies, mathematical science and technology). The use of data obtained by the 2002 population census will be of great importance. On account of economic and social changes, job and social skills have to be constantly updated, which enables life-long learning. The learning statistics system will be of use for employment, economic and educational policies; special attention will be paid to public and private investments in education. Data about adult education have to be supplemented.

Statistical support to the policy

Education and training is covered by national statistics and its surveys:

- By surveys on the basic formal education of the youth (including the youth with special educational needs) and adults at all educational levels (from pre-school to tertiary education) in public and private schools and by surveys on continuing vocational education and training with public and private providers of education. Data are collected at the level of educational institutions, except the data about tertiary education which comprise information about students and graduates at individual level (based on the entrance form of a student). On the basis of acquired data it is possible to calculate the share of those participating and of the "graduates" by age, sex, level or type of education or training, field of education, etc. Moreover, the structure of those employed in education and the number of participants per a professional, i.e. teacher, can be calculated. Comparisons in time and comparisons with other countries are also possible. Data are reliable, however, since they are mostly obtained from administrative sources at the level of institutions, they include only age and sex of the participants. In future, the method for collection of abovementioned data will be adjusted to the development of the information system in the field of education, which is in the preparation phase. Collection of data by using questionnaires will gradually be replaced with retrieval of data directly from databases. By linking these data with data from other databases, it will be possible to obtain much information, relevant as regards life-long learning (student mobility, dropping out, participants’ social background, characteristics of transition from school to working life).- By surveys on continuing vocational education and training of employees in enterprises and other organisations, data will be obtained about the enterprises which do or do not provide training for their employees, about the employees, participating in education, the working hours spent on education and funds allocated by enterprises to education and training of their employees. In Slovenia, education of employees has been surveyed already in the past years, but in 2000 Slovenia started participating in uniform international research on the abovementioned issue. Due to continuity, a national set of questions was added to the international one, including questions about the age of participants and detailed data about the types of education. A uniform international survey, i.e. continuing vocational training survey (CVTS), will be carried out every five years. Since additional data will be needed, a national set of questions will be added to the survey in the future.- population census (last in 2002) and some surveys (Labour Force Survey, Time Use Survey, Household Budget Survey) also contain questions about education and training as well as about investments in education and training. Despite some deficiencies of the abovementioned surveys (due to being based on individuals' statements, sample size, limited scope and question analysis), surveys carried out at the level of an individual/household enable acquisition of data i.e. estimates about the achieved level of education, the education and training of population and individual's/household's investments in education (measured in time and money) in relation to the socio-economic characteristics of an individual (status on the labour market, occupation, earnings). A special ad-hoc module about life-long learning will be added to the Labour Force Survey in 2003, containing, for the first time, also the questions about informal (occasional) learning. A special uniform survey on adult education is planned for 2006.

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Although data about education and training are abundant and also comparable internationally, there are some deficiencies to which special attention will have to be paid in the following period. Namely:- Data obtained through regular annual surveys on education and training will have to be published more promptly and more focus will have to be placed on the processing of data obtained by household sample surveys, especially LFS.- The system of national classifications on education comparable at the international level has to be elaborated as soon as possible (primarily levels and fields of education), so as to enable linkage of available data on employment at the national level and their comparability at the international level. - An information system about public educational expenditure will have to be set up by the Ministry of Education, Science and Sport and the Ministry of Finance in accordance with the national and international demands for data. Such data have not been available in Slovenia since 1995. Public expenditure measured in the share of GDP is one of the basic structural indicators at the EU level.

Table 11: Connection of the policy Education, training and youth with statistical domains

XI. EDUCATION, TRAINING AND YOUTHMain statistical domains 11 Classifications

24 Registers32 Labour market33 Education and training37 Social security38 Other social statistics

Other important statistical domains 31 Population36 Level of living70 Sustainable development72 Regional and geographic information

Main guidelines for the 2003-2007 period

- carrying out regular annual surveys on basic and formal education of youth and adults as well as on continuing vocational education and training; adapting the contents of these surveys to legislative changes and putting them into practice (monitoring of new modular programmes, achieved vocational qualifications, new forms of education, e.g. distance learning, adjusting the monitoring of tertiary education with the implementation of the credit system, etc.), bringing such surveys in line with international requirements; - gradual elaboration of an information system on education; adjusting the method of data collection to the development of the abovementioned system;- setting-up of a statistical register of qualifications;- obtaining and publishing results from the ad-hoc module about life-long learning in the Labour Force Survey (2003);- dissemination of data on educational attainment and educational participation in connection with the socio-economic characteristics of the population, obtained from the 2002 population census and some surveys (LFS - regular module of questions on educational attainment and participation in education, Time Use Survey); - implementation and publishing (dissemination of) results of uniform international surveys on continuing vocational education and training of employees in enterprises and other organisations (2005);- conducting of a special survey on adult education (2006);

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- setting-up of an information system on public education expenditure by the Ministry of Education, Science and Sport and the Ministry of Finance;- developing indicators in the field of education according to the international and national requirements;- creating national classifications on education, brought in line with the international classification ISCED 1997 and other relevant classifications in use;- examining the possibility of conducting internationally comparable surveys on vocational education and training (VET) in view of the existing human resources.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of Education, Science and Sport, Ministry of Labour, Family and Social Affairs, Ministry of Finance, Centre for Vocational Education and Training, Centre for Adult Education of Slovenia, Employment Service of Slovenia, National Examination Centre, Education Institute, Education Office of the RS, Universities of Ljubljana and Maribor, Chamber of Commerce and Industry of Slovenia, Chamber of Crafts of Slovenia, Public University Association, Economic Research Institute, Pedagogical Institute, Ministry of the Interior, University of Ljubljana – Faculty of Social Sciences – Institute of Social Sciences.

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XII. JUSTICE AND HOME AFFAIRS

Subject of the policy

Autonomous inclusion of individuals in social life requires the most complete protection possible of human, citizen and consumer rights in relation to the government and other non-proportionately strong participants, such as multinational enterprises and media. Efficient market economy entails legal infrastructure which gives the market entities freedom of economic initiative and ensures that the interference of the state in the private sector is transparent, efficient and adequately restricted. Since efficient market economy is based on private ownership and freedom of private business initiative, the ownership right is one of its basic legal institutions. If this ownership is to be the driving force of efficient economy, it has to be legally defined and conferred on a certain entity. The basic objective of the government in laying down ownership rights is: (i) to decrease, by effective legal order, the transaction costs of transfer, which also include the costs arising from the protection of rights and (ii) to define and distribute the rights in such a way that without transfer or after it, they are distributed so that higher returns are generated as they are exercised. Legal rules should “arbitrate” the disputes, i.e. regulate the relations between entities in a way most entities would, if they disposed with all the information and negotiated the solutions without limitations and without any one of them being forced to or being unable to understand the negotiations and the transaction. If the judicial system does not function effectively, i.e. in accordance with the rules and relatively fast, the contracting parties’ risk arising from certain legal transactions increases. 74 In addition, various phenomena occur in society, for instance corruption, negatively influencing the entire social order.In Slovenia, data on real estate are not provided in the form of a public and complete land register75. Moreover, numerous real estate items are still undergoing denationalisation. Therefore, the real estate market is ineffective, with the demand exceeding the supply, the latter being too small even in terms of the needs for labour force mobility76.Slovenia expects the demand for investments in border infrastructure, equipment and training to increase. The amount of necessary funds is not specified, which is related to the fact that the external border of the RS (i.e. its length) - at the same time being also the external border of the EU - will depend on the date of the accession of Hungary and the EU relations with Croatia. The current visa regime applicable in Slovenia is fully adjusted to the one of the EU and is unproblematic77. Slovenia adopted the Asylum Act in 1999 and supplemented it in August 2001. Pursuant to the supplements and amendments to the abovementioned Act, a foreign citizen may be granted asylum for humanitarian reasons, although not complying with the Geneva Convention, if, however, they need protection due to different humanitarian reasons in the sense of the European Convention for the Protection of Human Rights and Fundamental Freedoms78. A special form of protection also introduced with the amendments and supplements to the Act is available to foreign

74 Inefficiency of the judicial process is indicated by high ratio between the indicators of started proceedings, i.e. complaint and the indicators of concluded proceedings, i.e. imposed penalties and executions. Although comprehensive statistical data are not available, the widespread perception of the public and business entities of the inefficiency affects the adjustment of behaviour. This is not reflected only in individual and society costs arising from delayed proceedings, but also in lost economic growth on account of poorly functioning markets and less transactions as a result of too high risks to be assumed by investors, due to the fact that they cannot trust legal protection. (IMAD, Development report, Ljubljana, 28 March 2002, p. 26).75 In half cases the ownership is ambiguous. This will not be solved with the completion of the project of the Land Register informatisation, since mostly the current data is subject to informatisation and due to lessening the compulsion as much as possible, titles are registered in the Land Register only on the client’s request (although as regards car or cattle registration this is not the case). (IMAD, Development report, Ljubljana, 28 March 2002, p. 26).76 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary p. 35.77 Negotiation position Justice and Home Affairs, Internet, http://www.sigov.si/ops/slo/pi/problemi.html.78 The reasons refer to prohibition of torture and slavery, respect for dignity of foreign citizens, their family life, etc.

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citizens who were denied asylum on the basis of a final decision. They are able to temporarily stay in the Republic of Slovenia, if they would be removed to a country where their life or freedom would be endangered or to a country where they would be subjected to torture or inhuman or degrading treatment or punishment, or if the conditions for protecting a foreign citizen in the Republic of Slovenia are met based on some other regulation or international agreement79.

Principal contents of the CSP: (CSP includes a special policy: IV. Visas, asylum, immigration and other policies related to the freedom of movement of persons)The Commission communication about the immigration policy80 emphasises that more information is required on the migration flows and patterns to and from the EU. It is stated in the Commission communication about the asylum81 that for setting up and implementing a common European asylum system an in-depth analysis of the scope of migration flows and their origin as well as an analysis covering the characteristics of applications for protection and replies to these applications are needed.

Statistical support to the policy

By carrying out surveys in the field of judicial statistics, national statistics acquire data on persons under age, persons of age and legal entities from the conclusion of the procedure and preliminary procedure - following criminal complaint filed by a prosecutor’s office - until the final conclusion of procedure at courts by type of criminal offence. Statistical data about their activity are collected also by the police and the Administration for the Implementation of Criminal Sentences (some also by the prosecutor’s offices and courts themselves).In order to enable a common way of monitoring identified (reported) crime in Slovenia, a uniform information system would have to be set up in the future, based on a single (information) system of informatised events among the police, prosecutor's offices, courts and prisons (the assumptions for such system being the personal identification number of an individual - suspect, uniform definitions and classifications of events; the precondition is adequate amendments to the existing legislation).

Internationally uniform survey on the crime victims, which has been carried out by the national statistics since 2001 and which will be conducted every four or five years, is an important supplement to the official police and judicial statistics, which can record only reported events, whereas the survey inquires also about unreported events, thus enabling an estimate of their share. The results of the abovementioned survey provide for international comparability of data due to the fact that the questionnaire is uniform at the international level and the types of criminal events covered by the survey are descriptive. From the point of view of the respondents the survey enables an insight into the crime structure and tendencies, the analysis of risk indicators and definition of more or less risk exposed groups; in addition, it reflects the satisfaction of people with the work of the police and provides an insight into the use of preventive measures against crime and crime orientation of people.

79 In Slovenia the Asylum Department of the Ministry of Internal Affairs decides about the status of foreign citizens. The Department keeps updated statistical data and drafts semi-annual and annual work reports. Statistical data is forwarded also to international organisations (UNCHR, ICMPD, BAFL, IOM), the Council of Europe and others. In 2001 1,511 applications for asylum were filed. This number dropped considerably compared to 2000, which is the result of the introduction of visas required for the Iranian citizens entering Bosnia and Herzegovina. In addition, the policy caught some organisers of illegal cross-border crossings. (internet: http://www.mnz.si/si/uunz/odaz.html). 80 Commission communication to the Council and European Parliament about the immigration policy of the Community, 22 November 2000 (COM (2000) 757 final).81 Towards common asylum procedure and common status of persons granted asylum, which will apply in the entire Union, 22 November 2000 (COM (2000) 755 final).

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With the existing statistical survey and in co-operation with other institutions gathering data on asylum, national statistics will provide data for in-depth analyses of the scope of migration flows, their origin and reasons.

Table 12: Connection of the policy »Justice and Home Affairs« with statistical domains

XII. JUSTICE AND HOME AFFAIRSMain statistical domains 24 Registers

31 Population38 Other social statistics

Other important statistical domains 32 Labour market33 Education and training36 Level of living37 Social security

Main guidelines for the 2003-2007 period

- takeover of data from courts in electronic form;- preparing a draft uniform definition of organised crime in Slovenia;- examining the possibilities for designing a uniform information system covering all levels (police, prosecutor’s office, courts, prisons);- implementation of an internationally uniform survey on crime victims (2005 or 2006);- harmonization of the methodology in the field of monitoring migration flows and in terms of contents supplementing the collection of data on international migrations with the international recommendations of the United Nations82, especially as regards labour force migration;- co-operation of the Statistical Office of the RS in formulating a uniform definition of organised crime;- crime victims statistics.

National statistics performer: Statistical Office of the Republic of Slovenia Participating institutions: Ministry of Justice, Ministry of the Interior (Central Population Register, Office for Administrative Internal Affairs), Supreme Court of the RS, Senate of the RS for Violations, Attorney General’s Office, District Public prosecutor’s Office of Ljubljana, Institute of Criminology of the Law Faculty of Ljubljana, Ministry of the Economy.

82 Recommendations on Statistics about International Migration, Rev. 1, United Nations, Department of Economic and Social Affairs, New York, 1998.

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XIII. CULTURE

Subject of the policy

Culture plays an important role in forming of values as an element of human and social capital. It helps develop creativity, imagination, adaptability and co-operation, whereas development of national culture strengthens social cohesion and contributes to creating basic social agreement on consolidation of development potentials and creative response to challenges of the globalisation, which is also a cultural phenomenon83.In Slovenia, cultural institutions are co-financed from the national budget on the basis of their significance at the national, regional and other levels. Cultural institutions operate on the free market and it is particularly the cultural industry that is financed by placing its products on the market. Most cultural workers are employed, but to some of them the government is paying social security contributions84.Openness will have to be preserved and, in this relation, support will have to be offered to further pluralisation of media and better exchange of ideas with Europe and the world. On the other hand, national cultural institutions will have to be consolidated so as to develop and offer Slovenian creative works to domestic and foreign audience at the highest level - more than so far. This calls for completion/modernisation of the cultural infrastructure, which has never been conceptualised as infrastructure of an independent state.The Slovenian language will remain one of the main distinctive features of Slovenia and its culture at large, and therefore adequate attention will be paid to it. Slovenia will decide which measures to take and how the government will protect the official language (the Slovenian language) and encourage its development in globalisation trends.

The development goals of the public sector reform (public institutions) are the following: autonomy of public institutions, gradual change of labour relations, introduction of actual five-year terms of office for managers, their appointment based on programme plans and objectives, decentralisation of management and financing, introduction of multiannual co-financing agreements, training of managerial staff, artists and other employees, redistribution of public funds in the field of art and intermediation between theatres on the basis of criteria of accessibility, targets, occupancy, success and quality of programmes.Special objectives were set in the field of publishing, librarianship, stage art, visual art (fine arts), music, audio-visual culture, cultural institutions and cultural heritage85.

Principal contents of the CSP: The key advantage is the consolidation of test work in the field of employment in culture, co-operation in cultural activities and statistics on expenses for culture. Methodological support will be provided to development of statistics, related to income and investments in culture. International methodological bases will be developed, enabling statistical measurement and analysis of the possible influence of co-operation in cultural activities on the contribution to social objectives, such as increasing the educational levels and employment and decreasing crime and inequality in the field of health care.

Statistical support to the policy

National statistics cover a widespread and diverse field of cultural activity by surveys on the functioning of cultural institutions and other organisers of cultural activities. Monitoring of culture is not harmonised in different countries, definitions and classifications are not uniform, there are new areas in culture and new ways of presenting cultural property resulting from technological

83 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary p. 32.84 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary p. 159.85 National Development Plan 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 196–200.

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development - due to all of the above in 1999 Eurostat started making cultural statistics uniform at the international level. Eight basic cultural areas were defined: cultural heritage, archives, libraries, books and periodical publications, visual arts, architecture, performing arts, audio-visual culture. Definitions and classifications within these areas have not yet been formulated. The two basic approaches to monitoring cultural activity have been defined:- institutional approach - data are planned to be collected about goods and services offered by various cultural institutions within the defined basic cultural areas, about the visitors, i.e. audience, employees, income and expenses of these institutions;- general approach - three basic sets of data are envisaged: financing culture within the state and expenditure; employees in the field of culture in terms of "cultural" professions and/or cultural activities (possible sources of such data are ADS or a population census, which however do not provide sufficient analysis (ie. breakdown) of such data needed for cultural statistics); participation in cultural activities (the source of these data will be surveys, perhaps a special survey about cultural participation or ad-hoc modules within the existing surveys).By co-operating in a Eurostat working group dealing with cultural statistics, Slovenian national statistics will in the future monitor the proposed methodological solutions and after adopting the final solutions, harmonise its surveys. In doing this, the national statistics will take into account also the specific national needs to monitor culture and thus co-operate in setting up a uniform, quality, efficient and internationally comparable system for monitoring culture in statistical terms. In this way, national statistics will actively participate in the processes aimed at establishing common European cultural statistics.

In 2002 Slovenia, together with other pre-accession countries, was for the first time asked to fill in the Eurostat questionnaire about audio-visual services (currently abridged questionnaire version). This questionnaire comprises data from the field of cultural and business statistics. It will be filled in by SORS, the sector of demographic-social statistics in co-operation with the sector of business statistics.

Table 13: Connection of the policy Culture with statistical domains

XIII. CULTUREMain statistical domains 33 Education and training

34 Culture38 Other social statistics

Other important statistical domains 49 Communications

Main guidelines for the 2003-2007 period

- regular statistical surveys in the field of cultural statistics; - bringing the contents of the abovementioned surveys in line with the new national and international requirements in co-operation with users;- monitoring methodological development and providing a solution at the international level;- reporting data internationally (for now only for the audio-visual services).

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of Culture, Institute of the RS for Macroeconomic Analyses and Development, National and University Library, Slovenian Film Fund, Cultural Heritage Administration of the Republic of Slovenia, Museum Association of Slovenia, Broadcasting Council, Slovenian Association of Film Producers, Tax Administration of the Republic of Slovenia, University of Ljubljana - Faculty of Social Sciences – Institute of Social Sciences.

XIV. PUBLIC HEALTH

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Subject of the policy

Besides education and professional qualifications health is an important component of human resources. It is at the same time part of social welfare and an indicator of development, reflecting the conditions in physical and psycho-social environment in a given country. Healthy people are more efficient and have better possibilities for participating in social and economic activities. People’s awareness of own health has to be heightened and at the same time patients’ rights have to be better protected. The role of non-governmental organisations will become more prominent in this area. Development of knowledge and new technologies will bring about the question of managing technological risk which may directly influence people’s health, e.g. uncontrolled development of biotechnology and food processing technology.Health care expenditure86 will increase owing to demographic factors and new methods of treatment87. The contents of the compulsory88 and voluntary health insurance will have to be defined in greater detail and voluntary health insurance will have to include the principle of risk of the insured. Measures will have to be prepared for decreasing absenteeism 89 as one of the major restrictive factors in competitiveness. Priorities will have to be defined in ensuring health rights, while conditions for enforcing those rights which are not directly related to medical treatment will have to change. A structural reform of health care expenditure will guarantee justice and equality to inhabitants of individual regions and will change or adapt the system of financing of contractors so as to improve the quality of health services. Equality in access to health care has to be ensured, particularly by establishing a health centre system and defining the relationship between public institutions and private entities - concessionaires90.

Principal contents of the CSP: The basic public health statistics covers the health status, health determinants and health sources. If required, data will be broken down by sex, age, geographic location and income. Indicators of sustainable development will also be taken into account. Emphasis will generally be put on strengthening of infrastructure as well as harmonising and improving comparability of existing data.

Statistical support to the policy

As regards public health the European Community adopted the 2001–2006 Action Plan (COM (2000) 285, final version, 16 May 2000) in which it focused on collection, analysis and dissemination of statistical data required for determination of health indicators by country.

86 Of total population, active labour force accounts for only 40.7%. This means that every active insured person maintains 1.46 non-active insured persons, which is a specific burden for the active labour force so as to maintain the level of national social security (Health Insurance Institution of Slovenia, 2001 Annual Report, Ljubljana, March 2002, p. 18).87 Total percentage of the 15-64 year age group is higher than the EU average. Life expectancy of women and particularly men lags behind the EU average for more than ten years. 88 The number of population and the number of insured persons differ. In Slovenia, in compliance with the law, all people with Slovenian citizenship and with permanent address in the Republic of Slovenia should enter the compulsory health insurance scheme as well as all persons engaged in gainful activity in Slovenia and not insured pursuant to the regulations applicable in other states. There are approximately 22,000 people in Slovenia whose status is not in compliance with the applicable regulations on compulsory health insurance. (Health Insurance Institution of Slovenia, 2001 Annual Report, Ljubljana, March 2002, p. 17).89 The percentage of all lost working days owing to temporary incapacity for work for medical reasons increased in 2001, reaching 4.7% (in 2000 4.5%). The average length of leave of absence is 14 days for the following reasons: diseases and injuries outside work – 85% of lost working days, injuries at work – 9%, care for a family member – 5% and other reasons – 1%. On average, health of Slovenian population has improved over the past few decades, while at the same time the differences in health between regions, social groups, sexes and youth increased. (Health Insurance Institution of Slovenia, 2001 Annual Report, Ljubljana, March 2002, pp. 38-39).90 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 32–33.

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Statistics on disabled persons and their integration in social life will be developed, while health indicators which were selected within the structural indicators will be developed and improved. Additional stress will be put on statistics on accidents at work, their causes and circumstances, industrial diseases, including data on exposure, severity and diagnoses (methodological development of social and economic expenditure for accidents at work and industrial diseases). Quality and timeliness of data will improve.

Table 14: Connection of the “Public Health” policy with statistical domains

XIV. PUBLIC HEALTHMain statistical domains 35 Health, safety and consumer protection

37 Social security

Other important statistical domains 70 Sustainable development

Main guidelines for the 2003–2007 period

- to modernise collection of data on accidents at work in accordance with the ESAW (European Statistics on Accident at Work) methodology;- to provide statistical data on industrial/occupational diseases;- to provide statistical data on disabled persons.

National statistics performer: Institute for Health Protection of the Republic of Slovenia, Health Insurance Institution of Slovenia, Statistical Office of the Republic of Slovenia.

Participating institutions: Ministry of Health, Ministry of Labour, Family and Social Affairs, Office of the Republic of Slovenia for Safety and Health at Work, Pension and Disability Insurance Institution of Slovenia.

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XV. CONSUMER PROTECTION

Subject of the policy

The tasks within consumer protection are divided among the government and the non-government sector. The former is represented by the Office for Consumer Protection, which was established in 1996 and whose duties and competences were stipulated in the Organisation and Competence of Ministries Act. The Office is formulating a fair and efficient consumer policy and monitors this policy as well as supervises and co-ordinates work of different ministries relating to consumer protection, ensures implementation of legislation and provides inspections on the market of goods and services. To protect their interests and rights consumers will establish a national, independent, non-governmental, non-profit member organisation with the following tasks: informing, educating and counselling to consumers. The Office for Consumer Protection represents a link between the government and consumer organisations; it also manages financing of consumer organisations.Slovenia passed the General Safety of Products Act, drafted the Rules on the Method of Pricing of Products and Services as well as prepared a special expert opinion necessary for the drafting of the Consumer Loan Act, which has already been adopted. The National Consumer Protection Programme91 has also been adopted, but it lacks the concept of developing consumer protection policy at the local and regional levels92. By the end of 2002, the Consumer Protection Act will be supplemented by some provisions of the EU directives93. Out-of-court settlement of consumer disputes has not yet been regulated in Slovenia. Slovenia wishes to make consumer information more comprehensible, which is why such material will be written in the Slovenian language, without excluding other languages. Slovenia does not want or request measures that could constitute a technical obstacle to free movement of goods94.

Principal contents of the CSP: An action plan is being drafted regarding consumer policy in the 2002–2005 period. It will emphasise the need for systematic and exhaustive work in order to develop an adequate “knowledge pool” as an indispensable tool in developing this policy. Statistical data should be more interesting for the public and should shed light on consumption and consumer issues at the European, national and regional levels.

Statistical support to the policy

91 The National Consumer Protection Programme includes: basic rights of consumers; basic consumer protection policies; overview of legislation governing consumer protection; method of implementing this legislation; functioning of governmental bodies especially intra-ministerial co-operation and co-operation with non-governmental consumer organisations; promotion of development and functioning of consumer organisations; measures for better enforcement of consumer rights particularly more efficient judicial protection and out-of-court settlement of disputes; education programme; public services in the field of consumer protection; approximate amount of funds for establishment of a public service as well as development and functioning of consumer organisations.92 Vera Kozmik Vodušek, “Analysis of Consumers’ Involvement at Various Decision-Making Levels in Slovenia”, compendium Consumer Protection Policy, Ljubljana, March 2002, p. 16.93 On the following: misleading advertising; liability for product; agreements concluded outside business premises; unfair contractual terms and conditions in agreements concluded with consumers; agreements on purchase of right and use of real property based on time lease; tele-concluded agreements; comparative advertising; litigations for omission of act in consumer protection and the directive on certain aspects of sale of consumer goods and pertaining guarantees.Based on the Trade Act the Republic of Slovenia will pass by the end of 2002 the Rules on Amendments and Supplements to the Rules on Minimum Technical and Other Requirements concerning the sales premises for managing trade activities and the requirements for selling goods outside shops. (National Programme of the RS for the Adoption of the Acquis – 2002 Review, no. 0131-2/2002,20, 17 May 2002 – Material for the session of the Government of the RS, p. 160).94 Negotiation positions, Protection of consumers and health, Internet, http:/www.sigov.si/ops/slo/pi/problemi.html.

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Slovenia lacks a systemic approach to integrating consumer protection policy into individual policies at the national level95. The Office for Consumer Protection participates at individual points (harmonisation of some provisions of the legal acts and their executive regulations), but this is not a result of a systemic approach – this was simply a happenstance96. The Office should link various inspections (market, health, phytosanitary etc.) and ensure exchange of information between them. The supplemented Consumer Protection Act will include provisions governing misleading advertising, liability for product, direct sales and telesales, guarantees and unfair contractual terms and conditions97. The task of the national statistics performers is to improve people’s awareness of consumer protection issues and statistics which is crucial for this segment of the policy. Special attention will be paid to safety, e-commerce, services (including financial services), measuring of consumers' satisfaction with services – especially those of public interest and consumer prices (of goods and services).

Table 15: Connection of the “Consumer Protection” policy with statistical domains

XV. CONSUMER PROTECTIONMain statistical domains 35 Health, safety and consumer protection

36 Level of living

Other important statistical domains 61 Land use and landscape64 Crop production65 Animal production66 Agro-industry statistics69 Fisheries statistics

Main guidelines for the 2003-2007 period

- to present consumer protection statistics in a user-friendly form;- to participate in preparation of methodological bases for monitoring injuries at home;- to heighten people’s awareness of consumer protection issues in all major statistical domains.

National statistics performer: Statistical Office of the Republic of Slovenia, Institute for Health Protection

Participating institutions: Ministry of the Economy (Office of the RS for Consumer Protection), Ministry of Agriculture, Forestry and Food, Ministry of Health – Office for Food and Alimentation, Chamber of Commerce and Industry of Slovenia – Trade Association.

95 Based on the experience and according to the EU Member States only the foreign policy and the defence policy do not include consumer protection. All other areas should be planned and managed in view of protecting the interests of consumers.96 Vera Kozmik Vodušek, “Analysis of Consumers’ Involvement at Various Decision-Making Levels in Slovenia”, compendium Consumer Protection Policy, Ljubljana, March 2002, p. 7.97 Government Office for European Affairs, Analysis of the European Commission’s 2002 Regular Progress Report for Slovenia, including the programme of activities in the final stage of Slovenia’s preparations for joining the EU, no. 0131-2/2002,29 dated 21 October 2002.

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XVI. ENERGY

Subject of the policy

The major encumbrances from the past are high energy intensity in economy and high dependency on imports of oil and gas. The Slovenian warehousing capacities for oil and oil derivatives are quite limited, which is why the stocks of petrol and diesel fuel are substantially under the level equalling country’s 90-day consumption as required by the applicable EU directives. In the negotiations Slovenia applied for a transitory period of three years (31 December 2005) – at the moment its stocks cover more than 60-day consumption98. Warehousing capacities have to be increased and financing of increased stocks ensured. Owing to strategic reasons, Slovenia wants to store all the emergency stocks of oil on its own territory.Almost the whole electrical energy industry is still owned by the state, while in the sector of gas and oil, ownership is distributed among the state, funds and employees, and in the field of gas distribution also between private shareholders. However, it is not only the ownership that is problematic, but also the market structure. The new Energy Act and the corresponding secondary legislation limit public utilities only to the areas of electricity and gas transmission as well as electricity distribution. Electricity generation will be carried out as a market activity99.In April 2001, the internal electricity market was liberalised, while on 1 January 2003 the external market opened completely. The Guideline 96/92/EC on common rules for functioning of internal market of electricity, which was adopted in December 1996, laid down that by 2005 the EU Member States have to open to competition at least 33% of average annual consumption of electricity. By granting the eligible customer status to all consumers with connection power over 41 kW at one power supply entry point, approximately 64% of supply will be based on competition, by following the principle of regulated access to the network. In 2003 the market of natural gas will open as well.Almost the entire Slovenian coal is used for production of electricity. Slovenia already complies with the EU decision governing state aids to coal industry, which will cease to apply on 23 July 2002 when the European Coal and Steel Community will dissolute. In the process of reconstructing and closing down other mines, Slovenia will need state aids also after the above mentioned date, which is why it shall reserve the right to reconsider its requests in accordance with the EU legislation which will start applying after the dissolution of the ECSC.As regards supply of nuclear fuel and safety of nuclear materials, Slovenia does not expect to encounter any major difficulties in the adoption of the Acquis in compliance with the agreement concluded with Euratom100. Renewable energy sources are those which are preserved in nature and are renewing entirely or partly: hydroenergy, biomass (wood, wooden waste, energy plants, biodiesel and biogas fuel), geothermal energy, solar energy, wind energy, waste heat, energy of municipal and other waste. The goal of the EU is to increase by 2010 the share of renewable energy sources in the primary energy balance to 12% by exploiting them. Even though their share in 1996 accounted for 8.8%101

together with hydroenergy, this EU goal will be achieved by 2010 only with great efforts.The Agency for Energy of the Republic of Slovenia is an independent organisation supervising the functioning of the markets of electricity and natural gas. The Agency performs the tasks stipulated in the Energy Act, so as to ensure a transparent and unbiased functioning of the markets of

98 Based on the situation in the accession negotiations (Monitoring Report of the European Commission, May 2002) Slovenia has to provide 60-day stocks of oil and oil derivatives by 31 December 2002, 66-day stocks by 31 December 2003, 75-day stocks by 31 December 2004 and 90-day stocks by 31 December 2005.99 On 1 January 2002 a segment of the market was opened for the imports of electricity. The establishment of the Holding slovenske elektrarne (HSE) resulted in a strategic partnership of electricity producers, representing the largest enterprise in Slovenia whose basic goals are construction of hydro power plants on the lower Sava river and concert action of energy enterprises in selling electricity on the market. (IMAD, Development Report, Ljubljana, 28 March 2002, p. 24).100 Negotiation position "Energy", http:/www.sigov.si/ops/slo/pi/problemi.html.101 Andrej Kovač, M.Sc., "Overview and Evaluation of Energy Policies and Development Programmes", Internet, http://www.gov.si/zmar/sgrs/diskusij/kovac.html.

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electricity and natural gas for all participants. One of its key tasks is to set the prices of use of electricity networks.

Principal contents of the CSP: (The CSP includes the domain of energy in Chapter VI. Industry). As regards the statistics on energy and raw materials, the work will primarily focus on improving the quality of energy balances, particularly in the part concerning the use of energy which will also contribute to better monitoring of emissions of greenhouse gases. The current system of energy statistics will be expanded so as to enable monitoring of events relating to sustainable development (efficient use of energy, co-generation of electricity and heat and renewable energy sources), efficiency of competition on liberalised energy markets as well as the impact on users and the energy sector.

Statistical support to the policy

In the recent times, the energy sector and the closely related energy statistics are most strongly characterised by the opening of energy market. Statistical support to monitoring of events includes data collection for calculating the indicators which measure the level of liberalisation and competition. Besides regular surveys based on which quantitative data on production, import/export, sales and consumption of all types of energy products are collected surveys of prices of energy products for final users are also crucial for transparent functioning of the markets.Another important area which in its basis is much broader than the energy sector is sustainable development. In order to verify whether an area develops in line with the sustainability principles, the energy statistics collects data on co-generation of electricity and heat, evaluates the efficiency of energy consumption based on quantitative data, calculates the share of renewable sources in the primary balance and in the balance of final energy, etc.It has to be emphasised that in energy statistics the need for short-term data is ever more stringent and it calls for development of methods for rapid data evaluation.

Table 16: Connection of the “Energy” policy with statistical domains

XVI. ENERGYMain statistical domains 45 Energy and raw materials

Other important statistical domains 44 Statistics on business entities71 Environment statistics and indicators

Main guidelines for the 2003–2007 period

- to monitor energy product prices for final users;- to harmonise statistics on co-generation of electricity and heat with the envisaged EU directive governing this domain;- to monitor development of energy markets’ liberalisation and ensure statistical support to calculation of liberalisation and competition indicators;- to provide statistical support to calculation of indicators for the purpose of monitoring sustainable development;- to improve final energy consumption statistics, emphasising manufacturing, agriculture and services sector.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of the Environment, Spatial Planning and Energy, Ministry of the Economy, Energy Agency of the Republic of Slovenia, electricity market operator Borzen – organizacija trga z električno energijo d.o.o., Chamber of Commerce and Industry of Slovenia – Energy Association

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XVII. TELEMATIC NETWORKS

Subject of the policy

The use of information-communication technologies gains ground in all economic activities, the public sector and society. Transition to information society is not only a technological problem but an explicitly developmental one, with deep economic, cultural and social dimensions requiring mobilisation of human and material potentials as well as the broadest social consensus. Many dilemmas will arise concerning the work methods, methods of communicating in private and social life, ways of fulfilling needs, decision-making procedures, stronger decentralisation of management and leadership, information society inclusion/exclusion.A precondition for effective and comprehensive introduction of information society is highly-capable and reasonably priced information and communication infrastructure, encouraging at the same time the development of a series of new services in economy and the public sector which are founded on knowledge and information (e.g. e-commerce – between enterprises, between enterprises and customers, between enterprises and the government, between the government and individuals, teleworking, teleeducation). The major consequences of such development will be higher efficiency of economy and welfare of the citizens, while decrease in environment depreciation per unit of value added will be one of the direct consequences of information development.As regards public administration, some joint projects have been planned by the ministries and the Government Centre for Informatics, whose aim is to promote communication between the citizens and governmental bodies – electronic access to public administration. The plans include tasks relating to linking of public records, which will enable rendering of connected and open services of public administration to citizens and economic entities.Dynamic introduction of new technologies increases substantially the competitive power of economy. The government may extensively support this process by a clearly defined strategy on required information-communication infrastructure, by supporting education and research activity to develop new technologies and services, by introducing e-commerce in public administration and by deregulating the telecommunication and financial markets (it is important to achieve: cheaper, faster and safer access to the Internet; investment in people and knowledge; promotion of use of the Internet). A particularly encouraging role is that of venture capital funds, contributing to prolificacy of entrepreneurship, increase of competition and rapid introduction of new technologies102.With more than 40 network entry points per 100 inhabitants, Slovenia boasts a quite high level of penetration, but the quality of telecommunication services strongly lags behind the level required in fast-developing economy. The Telecommunications Act serves as a legal basis for separating ownership, supervisory and management functions in provision of telecommunication services. The above Act lays foundations for liberalisation of the telecommunication sector. In compliance with the Act, the Telecommunications and Broadcasting Agency of the Republicof Slovenia was established as an independent regulatory body within the telecommunication sector with administrative, professional and financial autonomy103. In April 2002, the systemic Postal Services Act was adopted based on which the Agency plans to undergo restructuring so as to expand its scope of activities to postal services and be renamed into the Agency for Telecommunications, Broadcasting and Postal Services of the Republic of Slovenia104.

Principal contents of the CSP: The CSP has no specific statistical programme. Statistical information can be derived from the data of other programme policies.

Statistical support to the policy

102 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 22–24.103 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary p. 81.104 National Programme for the Adoption of the Acquis – 2002 Review, no. 0131-2/2002,20 dated 17 May 2002, p. 142.

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In the framework of communication statistics, the Statistical Office of the Republic of Slovenia (SORS) carries out five surveys of telecommunications and postal services, of which two are on monthly and three on annual basis. Since 2000, SORS intensively co-operates with Eurostat on methodology (e-mail, CIRCA, activities in the framework of the work group for statistics on communication and information services) and on information exchange. Eurostat collects data from telecommunication and postal services by means of COINS (Communication and Information Statistics) questionnaires. So far the data have been collected on voluntary basis. Since 2000, the EU candidate countries also submit data. These statistics in the EU candidate countries are assessed as good (among them is also Slovenia) or satisfactory. Only Malta has no such data. The EU candidate countries rank higher than the EU Member States (a special publication is planned).

Slovenia abounds in statistical data on information society which are collected by several organisations within various projects. Data on the use of the Internet and ICT (Information and Communication Technology) in households, enterprises and schools is collected by the Faculty of Social Sciences and the Centre for Methodology and Informatics within the project entitled Use of on Internet in Slovenia (RIS). Data on the use of information and communication technologies in households are being collected within the project entitled Slovenian Public Opinion (SPO) by the Public Opinion Research Centre, while public accesses to the Internet are monitored by the Ministry of Information Society. The Statistical Office of the Republic of Slovenia collects information on investments in fixed assets on the basis of regular annual survey of investments in fixed assets. In 2002, Slovenia together with other EU candidate countries participated in the eEurope+ project, which DG INFSO (Brussels) manages and also co-ordinates it with Eurostat's activities.

Table 17: Connection of the “Telematic Networks” policy with statistical domains

XVII. TELEMATIC NETWORKSMain statistical domains 48 Transport

49 Communications

Other important statistical domains 45 Energy and raw materials 53 Trade in goods61 Land use and landscape71 Environment statistics and indicators72 Regional and geographic information73 Science and technology

Main guidelines for the 2003–2007 period

In view of the forthcoming accession of Slovenia to the EU, the Statistical Office of the Republic of Slovenia will follow the current and future policies of Eurostat and DG INFSO as well as directly participate in some of the actions within the short- and medium-term activity programmes. So far, the data on telecommunication services in the EU have been collected on voluntary basis. The new package of the EU legislation governing telecommunications, which is expected to additionally stimulate electronic communication in Europe, has been prepared (DG INFSO); a telecommunication module has been proposed within the legal bases of information society statistics (Eurostat).In compliance with the SBS regulation, two structural indicators in telecommunications are monitored in the EU: prices of telecommunication services and telecommunication market structure. Data for the Member States are provided by DG INFSO (Information Society). It has been proposed that a new indicator be added – percentage of consumers with two or more accesses

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to fixed telecommunication network (it will be included in the 2002 COINS Questionnaire). The development of telecommunication statistics is also foreseen in relation to the requirements for new structural indicators, which should be laid down in a regulation drafted for the purpose of information society statistics. Slovenia is facing expansion of requirements in this field (mobile telephony market structure, access to broadband telecommunication networks, prices of postal and telecommunication services, breakdown of expenses by type of lines, number of safe servers per million of inhabitants). Eurostat plans to introduce major methodological changes in postal and courier service statistics, owing to which the requirements of the COINS questionnaire in this field are expected to change and expand substantially from 2003 onwards.Regarding development in information society statistics in Slovenia, complete integration with the so-called Action Plan e-Europe 2005 (DG INFSO, Eurostat) may be expected in the following five years after the eEurope+ project and the envisaged pilot surveys have been completed. The above Action Plan was adopted by the European Council in Seville in June 2002 and it represents a new challenge for the European Statistical System. The goals of eEurope 2005 are the following:

Modern public services available via the Internet: e-government, e-educational services and ICT know-how as well as e-medical services;

Dynamic e-business environment; General use of broadband access at competitive prices; and Safe information infrastructure.

The final list of indicators is expected to be prepared by the end of 2002. Eurostat’s strategy is to include as many surveys as possible in the programmes carried out by official statistical agencies, while Eurobarometer and similar sources are expected to collect rapid information and/or the so-called benchmarking indicators from small samples offering representative data, particularly at the European level. In this way better comparability of data would be ensured and there would be less problems with differences between official and unofficial sources.Already after 2003 all of the above mentioned activities will require recruiting mainly in information society statistics, particularly because of gradual strengthening of the role of national statistical offices in monitoring of these activities, which is one of the basic strategic guidelines in creating a new European statistical system, covering this field.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of Information Society, Ministry of Education, Science and Sport, University of Ljubljana – Faculty of Social Science - Institute of Social Science.

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XVIII. INDUSTRY

Subject of the policy

A continuous process of enterprise restructuring is requisite for increasing the competitiveness of the enterprise sector and consequently ensuring further dynamic growth in the Slovenian economy, while the intensity of this process is the key determinant in Slovenian economy's capability to cope with competitive pressures on the EU internal market.In view of the restructuring process, there are three groups of enterprises in Slovenia: (i) enterprises with concentrated ownership (foreign, sole proprietorship and daughter enterprises) which have not undergone the privatisation process, as they were established as private enterprises, (ii) enterprises with diversified ownership (public enterprises, mainly owned by institutional owners and non-public enterprises, mainly owned by internal owners), which underwent the privatisation process, and (iii) non-privatised enterprises. Enterprises with concentrated ownership are much more successful than others, while non-privatized enterprises remain in the red.Formal privatisation of trade and manufacturing enterprises105 has been completed. Dispersion is a typical characteristic of the ownership structure in small and medium-sized privatised enterprises, as a large proportion of shares are held by management boards and employees. In capital-intensive enterprises institutional owners prevail. Such a situation does not enable efficient management of enterprises.In eliminating obstacles and improving the possibilities for development of entrepreneurship, Slovenia will strive to accelerate the process of ownership consolidation, establishment of efficient ownership structure and promotion of “the real” long-term owners of enterprises. The government will implement the following measures:

- in state-owned enterprises which are involved in various recovery and restructuring programmes, the government will accelerate the process of rescuing vital segments from the problematic enterprises and their privatisation as well as abolishment of non-prospective segments of enterprises;- the government will selectively support enterprises in their recovery and restructuring mainly on the basis of regional criteria, when the enterprises will be of great importance to a less developed region;- outside the sectors which the EU defined as sensitive, the government will carry out sectoral restructuring of the textile and leather industries.

The government's measures aiming at improving enterprises' competitive power will be the following106: (i) strengthening of managerial knowledge; (ii) investments in human resources and research & development; (iii) promoting establishment of new, high-tech enterprises with guaranteed risk capital, employing entrepreneurs in technology parks, with tax relief; (iv) integrating enterprises in clusters or consortiums; (v) organising advisory services; (vi) entrepreneurial-technological centres; (vii) education107.105 Structural shifts were most evident in re-allocation of employees from previous large manufacturing enterprises into new smaller enterprises dealing especially in services. There were two major shifts, i.e. from one sector to another (from industry to services) and from large enterprises to SMEs.106 Within the Commission of the RS for abolishment of administrative barriers, the following major activities for small and medium-sized enterprises were carried out: amended Companies’ Act (simplified procedure); shorter time required for registering an enterprise; up to 50% decrease of fees for incorporation of an enterprise and entering it in the Land Register; new Rules on the method and procedure for the Sole Proprietors’ Register; amended Rules on Business Licence Granting Procedure; a new Small Business Act and the Regulation on the A list of crafts activities and the B list of crafts-like activities; the new Inspection Act and the new Act on Execution and Security are in the pipeline; reorganisation of the Tax Administration of the Republic of Slovenia and centralisation of tax registries; drafting of new Personal Income Tax Act; information system modernisation. (National Programme for the Adoption of the Acquis – 2002 Review, no. 0131-2/2002,20 dated 17 May 2002, p. 130).107 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 64–69.

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Principal contents of the CSP: Statistical work in the field of industry in the broad meaning of the word (including primarily construction, services, energy and food-processing industry) will focus on offering support to policies which were defined by the Amsterdam Treaty and at many subsequent summit meetings (primarily that in Lisbon in March 2000). Such development is primarily planned in globalisation, internal and external organisation of enterprises (and in general the production system) as well as co-operation between enterprises, the spirit of entrepreneurship and management, demand, and last but not least employment and human resources.The first priority will be to implement various regulations governing statistics on enterprises. Special emphasis will be put on quality of results.The possibility to maximally streamline the national data collection methods will be examined so as to decrease the burden on enterprises as much as possible. Concerted efforts will be devoted to improving the analysis of the single market by means of the existing statistical tools or tools yet to be developed, primarily PRODCOM (similar development in services).

Statistical support to the policy

Trend-cycle and structural data are important at the national and international levels and are collected by surveys of manufacturing, construction, trade and services. Data are obtained by monthly and annual surveys of industrial production, monthly and quarterly surveys of business tendencies in manufacturing as well as semi-annual survey of investments in industry . As regards construction data are gathered by different monthly, quarterly, half a year and annual surveys as well as the survey of business tendencies in construction. Data on trade are collected by monthly and quarterly surveys of retail trade, wholesale trade and trade with motor vehicles and fuels. The survey of business tendencies in retail trade shows current main economic indicators as well as helps us estimate the tendencies in the following months, which serves as an indicator of confidence in retail trade. The annual data on trade provide more substantial information and support to making of market analyses and adopting business decisions in enterprises.Based on the Standard Classification of Activities which guarantees compliance with the European Classification of NACE Rev.1, the transition in statistical surveys has been completed and at the same time the European nomenclature of industrial products was adopted, which guarantees compliance with the European list of industrial products (PRODCOM) and the foreign trade codes of the Combined Nomenclature and Customs Tariffs (HS/CN). As regards construction the International Classification of Types of Construction (for candidate countries) was adopted.In accordance with the European Union programme, short-term statistics in the area of industry, construction, retail trade and other services will be developed to meet the needs of financial monetary policy, support the formulation and guidance of enterprises’ corporate policies and analyse short-term cycles in economy.Further development of short-term statistics will be geared towards integral monitoring of short-term statistics and harmonisation with the Acquis. It will allow better, more complete and rapid availability of data serving as a basis for making and monitoring financial-monetary and economic decisions.In order to estimate competitiveness levels and tendencies, a set of harmonised industrial statistics will be implemented in accordance with the European Union programme covering common agreement on providing conditions for competitive industry, construction, trade and services. The Office will continue with the process of harmonisation and follow the EU’s additional amendments to requirements and programmes. A process of monitoring business results and changes in business population in industry, trade and construction will be designed and developed within the structural statistics on enterprises, which will take into account national needs, the EU legislation and their plans for structural business statistics development. This process will foster a more complete monitoring of structural changes in Slovenian economy, it will allow comparison with other economies and support development policy decision-making. Complete monitoring of the Slovenian economy will allow an integral

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overview and easier and faster access to data required for decision-making in current and developmental economic and regional policies in industry and services.

Table 18: Connection of the “Industry” policy with statistical domains

XVIII. INDUSTRYMain statistical domains 44 Business entities statistics

45 Energy and raw materials66 Agro-industry statistics

Other important statistical domains 24 Registers (business register)49 Communications53 Trade in goods71 Statistics on environment and indicators

Main guidelines for the 2003–2007 period

- to further develop statistics on industry, construction, trade and service activities, which provide data on business results and are intended for measuring competitiveness;- to supplement and further develop statistics which provide data on short-term economic tendencies in industry, construction, trade and service activities;- to improve quality of short-term data and shorten deadlines for publishing;- to introduce surveys of short-term movements in income in service activities;- to harmonise the Nomenclature of Industrial Products with the EU PRODCOM list, to supplement the list with the national needs, to revise statistics by products, in compliance with the EU programme;- to further participate in Eurostat’s projects relating to short-term statistics and PRODCOM;- to participate in Eurostat's project on transmission of data to Eurostat,- to improve methodology, definitions, method of construction cost monitoring in construction statistics;- to adopt a Regulation on the implementation of Classification of Construction facilities by type;- to improve the quality of data on operations of enterprises and calculations of quality indicators; further develop the use of administrative sources in order to implement monitoring of enterprises' operations;- to gather information (introduce a questionnaire) on characteristics of the business population;- to collect data on enterprises' operations more rationally;- to develop statistics on enterprises in terms of service activities and business demography;- to carry out a census of shops by means of administrative sources;- to introduce dissemination of data on structural business statistics;- to participate in development projects of Eurostat concerning structural business statistics.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of the Economy, Chamber of Commerce and Industry of Slovenia, Tax Administration of the Republic of Slovenia, the Agency of the Republic of Slovenia for Public and Legal Records and Services, Chamber of Crafts of Slovenia

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XIX. ECONOMIC AND SOCIAL COHESION

Subject of the policy

In the period of transition, the differences in regional development increased. Important are primarily the differences in demographic conditions, human resources, economic structure and performance of the economy, social and economic facilities, extent of environmental problems and the internal homogeneity of regions (the share of municipalities in the region with the status of an area with specific developmental problems)108. The number of registered (or active) enterprises per thousand of inhabitants varies by region. Increasing regional differences often result from improper use of endogenous developmental potentials of regions.In Slovenia, the “urban-industrial” type of regional development structure prevails, encompassing four fifths of the population living on one third of the national territory109. The problems of unbalanced spatial distribution of economic and social infrastructure as well as structural disproportion between individual regions and regional centres are reflected in poorer accessibility of some areas and settlements, strong daily migrations and related individual and social costs, inefficient, expensive and deficient infrastructure and degraded areas. There are strong settlement pressures on the outskirts of towns and rural areas of higher quality, also in a form of unauthorised building. A tendency to establish new, developmentally weak municipalities is ever more present. It is encouraged by the current system of financing municipalities, which should instead promote establishment of municipalities which would depend less on state aids and be more self-dependent, and which would focus on development and co-operation.In terms of total national territory, the predominant traditional “rural-agrarian” type only modestly contributes to total number of inhabitants and to creation of welfare. There are not enough jobs in these areas, the level of education of the active labour force is low and the population emigrates.In Slovenia there is no industrial land with pertaining infrastructure enabling rapid investments; land and real property market is not flexible enough. A large proportion of real property cannot be adequately developed because no legal transactions are allowed owing to incomplete land registers, insufficient legal certainty, high transaction costs as a consequence of uncompleted procedures of denationalisation in kind, long lasting co-ownership relations stemming from court delays and failure to complete municipal separation balance sheets as well as over-detailed and obsolete town-planning documents permitting the use of space. The prices of real property are too high; there are no adequate tax incentives. Owing to the obsolete spatial legislation the state and the municipalities

108 The basic goal of the Regional Development Strategy of Slovenia is to promote a balanced regional development all over Slovenia. This requires orientation in multicentric development of the entire country, which would ensure continuity and stability of economic development, health as well as social and environmental factors. The vision of sustainable development of Slovenia by 2012 is: Slovenia is a country of welfare and quality life in active harmony with nature. Its competitive edge and fulfilment of global obligations are founded on: innovative technologies based on human resources, spatial component, natural resources and social component of Slovenia; education of creative individuals; efficient state relying on participative democracy; respecting the limits set by environment; active protection of landscape and eco-systems; active participation in international process of sustainable development. The key advantages lie in the following: education aiming at creativity; participative democracy; rural areas as a competitive edge of Slovenia; sustainable traffic policy; protection and management of water as strategic resource (Report on Implementation of Sustainable Development in Slovenia, draft version for public discussion, April 2002, Internet http://www.danesjutri.si/tr_porocilo.html/ pages 5, 10 in 13).109 The Ljubljana urban region is the most developed part of the country and differs from the rest of Slovenia by favourable demographic conditions. From 1991 to 2000, population growth in the Ljubljana urban region was one time faster than the national average. This was mainly due to the immigration of relatively young labour force. The population ageing index in this region is below average. Gross domestic product per capita in the region exceeds that of the national average by almost a third. This region is characterised by higher productivity and profitability. Infrastructure is above average - better schooling system. The population of the Ljubljana urban region is more educated than the average. The registered unemployment rate is below the average. (National Development Programme 2001–2006, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, p. 152).

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have a very limited range of instruments for acting on real property market. This is why industry attracts no major (foreign) direct investments.The new regional policy includes: (i) measures aiming at improving development functionalities of local potentials; (ii) complementarity of state incentives with regional and local development incentives110 and (iii) partnership approach between the public and private sectors, which should result in linking (at a regional level) of development initiatives of sub-regional development entities.The new regional policy in the European context can no longer aim only at eliminating development differences but should encourage both development poles and international competitiveness in all parts of the country.The basic guidelines of the spatial planning policy are the following: (i) shift from so far predominantly rural to urban-oriented policy, (ii) consolidate town aggregates, (iii) promote spatial cohesion of the country and its regions and (iv) preserve and develop natural and cultural landscapes.The mechanisms for achieving balanced regional developments are the following: (i) strengthen regional centres of national importance, (ii) participate in the European regional policy, (iii) promote the role of spatial planning as a factor of economic development, (iv) formulate a modern spatial planning policy, (v) exploit the position of Slovenia at the juncture of the pan-European Corridors V and X, (vi) continue the already started agricultural policy reform so as to develop rural areas and (vii) promote local self-government and establish regions111.In order to gradually promote the principle of territorial concentration of development aids Slovenia has already implemented the statistical classification SCTU (Standard Classification of Territorial Units; in Slovene SKTE) and divided its territory into statistical territorial units based on substance. This division is still being negotiated. The EU agrees with the statistical division at the SCTU-3 level (twelve statistical regions), but does not approve statistical division into two regions at the SCTU-2 level (the Ljubljana urban region and the region Rest of Slovenia). Problematic is the amount of funds that Slovenia will be granted from the EU budget in a form of structural aids. When the negotiations on regional policy were temporarily suspended (August 2002), a decision was passed that until 2006 Slovenia as a whole retains the Objective 1 status of the EU structural funds. This means that in the process of drafting regional development programmes Slovenia may expect co-financing from the richest EU regional development fund, namely European Regional Development Fund (ERDF). In the planned distribution of minor EU development programmes (cross-border co-operation, numerous “community initiatives”), the most important division is that into 12 statistical regions112.

Principal contents of the CSP: In the implementation of co-ordination policy for social and economic cohesion, regional policy is very important in the process of implementing decisions: eligibility of the areas under regional objectives is defined on the basis of social and economic criteria for certain thresholds; granting of finance to the Member States is objectively decided on the basis of statistical indicators. The impact of the policies of the Community at the regional level and quantitative definition of regional differences may only be assessed, if access to comprehensive statistical data (based on regions) is enabled (projections of populations at the regional level are of particular importance as well as data on regional demography).Special attention must be paid to urban issues – valuation of the quality of life in European cities.Technological progress enables ever more extensive use of geo-referentiated databases.

Statistical support to the policy

110 Owing to inadequately defined regional policy, Slovenia has not granted many regional aids, falling into the category of less restricted aids.111 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary, pp. 103–111.112 Negotiation positions Regional Policy and Co-ordination of Structural Funds, Internet, http://www.sigov.si/ops/slo/pi/podrobno.html - updated 30 August 2002.

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The principal aim of structural funds is to rectify social and regional imbalances and reduce the most topical ecological issues. The role of regional statistics in implementing co-ordination policy for social and economic balance and in decision making process is multi-layered, within both the EU and the national framework. Firstly, it impacts the process of identifying areas which in line with the EU legislation are entitled to co-financing from the development programmes. Such areas are identified on the basis of the fact whether they have reached the required thresholds of macro-economic and social statistics. In order to draft regional development programmes, statistical data have to be analysed at the local and regional levels. This is the so-called “ex ante” evaluation of statistical data. Prompt monitoring and checking of multi-annual development programmes require regional and sub-regional statistical data, while the law requires that a final “ex post” evaluation is carried out upon completion of development programmes/projects. This evaluation is based on the analysis of the time series of regional and sub-regional statistical data. The availability of regional and sub-regional statistical data is a prerequisite for successful management of regional development policy.

Table 19: Connection of the “Economic and Social Cohesion” policy with statistical domains

XIX. ECONOMIC AND SOCIAL COHESIONMain statistical domains 55 Prices

72 Regional and geographic information

Other important statistical domains 31 Population32 Labour market40 Annual national accounts44 Statistics on economic activity of enterprises50 Tourism63 Agricultural income and prices 71 Environment statistics and indicators

Main guidelines for the 2003–2007 period

- to update, develop and constantly modernise data warehouse of regional and sub-regional statistical data “SURS RDB” as the most complex, complete, territorially detailed source of time series of geocoded and geo-referentiated regional/subregional statistical data;- to develop methods and techniques of regional analysis, including the development of GIS technique (Geographic Information System), satellite teledetections and thematic cartography in co-operation with Eurostat and the national academic sphere;- to develop hardware and software for efficient access to and transfer of geo-referentiated data from administrative registers and records to statistical registers and databases; - to modernise and constantly adapt dissemination capacities to regional/sub-regional statistical data;- to take part in creation of the European set of regional statistical indicators as the requisite regional development indicators – co-operation with Eurostat, the national and foreign academic spheres and the Agency for Regional Development;- to take part in creation of and professional support to activities of national institutions in the regionalisation of the national territory at all levels, particularly territorial development of local self-government (co-operation with the Geodesy Administration of the Republic of Slovenia) and introduction of regions.

National statistics performer: Statistical Office of the Republic of Slovenia

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Participating institutions: Agency for Regional Development; Ministry of the Economy; Geodesy Administration of the Republic of Slovenia – Ministry of the Environment, Spatial Planning and Energy; Universities in Ljubljana and Maribor, Urban Planning Institute of the Republic of Slovenia and foreign research & development organisations (project linking); institutions involved in local self-government and regional development, Tax Administration of the Republic of Slovenia.

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XX. RESEARCH, DEVELOPMENT AND INNOVATIONS

Subject of the policy

The new development paradigm emphasises the meaning of stronger capacity of exploring global knowledge and technological progress as the main lever of work efficiency, national competitive power and quality of individual and social life. The key problem of the Slovenian research & development policy is not the level of expenditure but primarily inappropriate interweaving of knowledge, competitiveness and flexibility, which reflects in inadequate development function of enterprises. For knowledge in its broadest meaning, this results from unsatisfactory conditions in technological management and environment. These two factors are very important, as technological innovations represent one side to the coin. Nevertheless, innovation in management of economy and public services is perhaps even more important, including co-operation of all employees in innovation processes.The basic reasons for reduction and fragility of research & development activities in enterprises in the last decade lie in the process of defensive transitional restructuring, which forced entrepreneurial activities towards solving short-term “existential” problems. The result of successful research & development and innovation policies is an increase in gross added value per employee. The priority tasks are the following113: (i) promote better co-operation between enterprises and their research departments; (ii) increase the absorption capacity for transferring technology and innovation; (iii) increase investments in research & development and change their structure; (iv) develop research institutes and units in the private sector; (v) develop a stimulating environment for technological development; and (vi) integrate science and research potential of Slovenian people living abroad. In order to implement the above guidelines, new institutions will have to be established or the old ones adapted to innovative business, including risk funds, consortiums, professional organisations of innovators, the Slovenian Innovation Agency (yet to be established), regional centres or research & development agencies114.

Principal contents of the CSP: Measuring of co-ordinated inputs, production and socio-economic impacts of knowledge-based economy will be prioritised in surveying. All recent policies in research & development and innovations require timely and harmonized data. What must be developed is the capacity of making statistics on human resources in science and technology and their mobility (also by sex), so that decision-makers have necessary data at their disposal when assessing efficiency of policies.Priority will be given to improving the quality of existing indicators and developing new ones; a general framework for measuring the society of knowledge will be developed; technological tendencies will be measured on the basis of harmonized statistics on patents.Priority will also be given to official statistics as a field on the basis of which research activities will start. The demand for more accurate and comparable statistics is on the increase, primarily for short-term development indicators for the single EU market and monetary union.New technologies are being used to reduce the workload of the reporting units. Moreover, new methodologies and tools have to be developed for official statistics, allowing the combined use of data (administrative data and sample surveying or semi-annual statistics and structural statistics).

Statistical support to the policy

Statistics is an efficient tool for implementing and assessing science and technology policies. Internationally comparable data in this field are gathered by surveys, conducted by national statistics, in compliance with international methodologies of Frascati and Oslo concerning: (i) research & development activities (intensity of investments in view of value added and gross production and investment structure itself), (ii) national budgetary funds (amount of budgetary funds by social and economic targets and science disciplines) and (iii) innovation activity in 113 By 2006, the share of research and technological development in GDP is expected to increase to about 2%.114 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 60–63.

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manufacturing and selected service activities (innovativeness of enterprises and intensity of investments in view of sales income, analysis of factors hindering innovative activity and linking of enterprises; exports of high- and medium-tech products) Statistical data are useful in assessing regions’ capacity in the field of research & development and innovativeness for managing structural funds.

Table 20: Connection of the “Research, Development and Innovations” policy with statistical domains

XX. RESEARCH, DEVELOPMENT AND INNOVATIONSMain statistical domains 22 Statistical surveys and methodology

73 Science and technology

Other important statistical domains 44 Statistics on business entities49 Communications

Main guidelines for the 2003–2007 period

- to examine the international Canberra methodology on Human Resources in Science and Technology – HRST. This methodology defines the method for capturing data on the number of employees in science and technology; the main sources of these data are secondary sources, such as the Labour Force Survey and the statistics on education;- to prepare separate questionnaires on research & development activity by institutional sector: business, government, university and private non-profit; more detailed instructions by sector facilitate completion of questionnaires by the reporting units and improve data quality;- to participate in the following harmonised census of innovation activities in the EU Member States based on international methodology Oslo and recommendations given by Eurostat (Community Innovation Survey);- statistics on patents;- to further participate in the international project of the European Commission “Women in Science”;- to participate in the international project of the European Commission “National Research Policies Benchmarking”.

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: Ministry of Education, Science and Sport, Ministry of Information Society, Ministry of the Economy, Office of the Republic of Slovenia for Intellectual Property, Institute of Macroeconomic Analyses and Development, Ministry of the Economy, Chamber of Commerce and Industry of Slovenia, Tax Administration of the Republic of Slovenia

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XXI. ENVIRONMENT

Subject of the policy

In the past decade the increase in environment efficiency of the Slovenian enterprises was for the most part a reflection of the market requirements115 (such as obtaining ISO 14000 Standard Certificate and other adequate ISO standards). The voluntary measures of enterprises still remain an important mechanism, but in the future systemic incentive for increasing enterprises’ environmental efficiency116 will be even better defined. Political and economic measures will be geared towards this goal even more systematically, especially those concerning prices, taxes and environmental protection which will manage the use of natural resources (particularly energy).Aggregate indicators show too high environmental intensity in the past117. The energy intensity is twice higher than the EU average; the share of exports leaning on natural resources is higher than Slovenia could have afforded, as it owns no major stocks of mineral and energy raw materials that would be of economic interest.The key instrument in changing the current pattern of development and consumption in view of the use of non-renewable environment capital is gradual long-term increase in prices of energy products and energy. In doing this, economic objectives (competitiveness), environmental objectives (decrease in irreversible degradation of environment) and social development objectives (improvement in the relative status of traditional social groups) should be taken into account along with higher efficiency in generating, transforming and distributing energy and ensuring a standard reliability of procurement. The European harmonisation is expected to be geared towards the same goals when setting prices of energy products. The European Commission wavers on whether to make uniform the minimum excise duties on oil derivatives or to enforce the environmental tax reform.The tax reform directly and positively impacts budgetary income only, nevertheless indirect impacts are also felt in the environment, owing to relative increase in prices of energy and raw materials.Industries which are typically defined as "dirty" contribute one fifth to value added of manufacturing but employ over 40,000 people. In the second half of 1990s, their production and exports increased faster than the average. Net contribution of expanded exports to welfare in society as a whole may substantially increase in the future, only if export-growth factors are linked to the environmental-impact factors.When directing harmonised development towards sustainability it is necessary to co-ordinate the economic, social and environmental aspects. Annual reporting on economic and social development has already been performed, while annual reporting on environmental issues has not yet gained ground118. It is only for environment that we do not know its contribution to current development movements.Priority measures for encouraging environment development are the following: (i) increase public finance efficiency in allocating environmental protection funds; (ii) introduce systematic 115 In the second half of the 1990s, environmental protection expenditure lagged behind development projections by a good tenth. According to the National Environmental Protection Programme this expenditure has to increase by more than one half of the current amount by 2006, so as to enable implementation of the priority tasks of the programme which are planned for the following 15 years.116 The Directive on Integrated Pollution Prevention and Control restricts enterprises from freely selecting technologies in the case there exist technological solutions which are economically acceptable and at the same time more environmental friendly.117 With the National Environmental Protection Programme (NEPP) the environmental protection policy focused on four priorities: reconstruction of sewage and technological polluters of surface water and better management of solid municipal waste; climatic changes; preserving of biodiversity; and institutional support to environmental protection policy. Among the most sensitive areas in Slovenia which are the most protected against environmental degradation and pressures from economic activities, are the littoral, the rural areas, the mountains and the karst.118 This domain is inadequately managed in terms of information. We are well aware of the “information chain” starting with incomplete records and ending with lack of spatial statistics and synthetic indicators for monitoring. (IMAD, Progress Report, Ljubljana, 28 March 2002, p. 32).

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monitoring, analysing and projecting of the changes in environment, implementation of the National Environmental Protection Programme and the pertaining policies as well as changes in development functionalities of environment; (iii) fully implement the arguments which have a systemic impact on environment in formulating development guidelines, programmes and measures; prioritise linking of four key renewable local resources: space, biodiversity, surface water and biomass; (iv) expand environmental tax reform by an increase in prices of energy and energy products as well as overall increase in national expenditure in the field of environment degradation; (v) link environmental protection with sectoral and regional policies so as to form a functional complex of environment development, with emphasis on better development functionality of renewable local environment capital. Expansion of integration instruments (studies of vulnerability of environment, strategic environmental assessments etc.)119.During the negotiations on Slovenia's accession to the EU, Slovenia applied for a ten-year transitional period for collection, disposal and purification of waste waters which will apply for deadlines for construction of sewage systems and purification plants (Directive 91/271/EEC). In order to fully comply with this Directive, EUR 889 million of investment funds would be needed.Slovenia applied for a five-year transitional period in waste management, in connection with the Directive 94/62/EC on packaging and the pertaining Decision (97/129/EC/97/138/EC). Due to a dispersed settlement pattern, the costs of waste packaging collection are very high and the quantities of actually collected waste packaging relatively small. The market of secondary raw materials cannot develop. Recycling is only possible for paper waste and to some extent also for scrap metal. Slovenia has no incineration plants for municipal waste, therefore such energy cannot be exploited.As regards prevention and control of industrial pollution – IPPC (Directive 96/91/EC), Slovenia applied for a four-year transitional period for the existing facilities, starting as of the day the Directive applying for EU Member States is enforced (i.e. 30 September 2007) and thus ending on 30 September 2011. Some of the current facilities will require substantial finance for restructuring and modernisation of production and providing the BAT (Best Available Techniques)120.

Principal contents of the CSP: Proposal for the sixth environmental work programme of the European Commission Environment 2010: Our Future, Our Choice also includes priority areas for environment statistics. The programme lists four major priorities of the policy: climatic changes; nature and biodiversity; environment and health; natural resources and waste. It also emphasises the need to consider environmental protection aspects in land use.The environmental segment of the statistics work programme and the strategy for sustainable development stipulate preservation and expansion of the current work areas as well as adaptation of the following areas: interaction between social, economic and environment development; biodiversity indicators; use of chemicals and their impact on human health; land use.An important task will be the implementation of the draft Regulation on Waste Statistics. New policies, interconnecting waste management and resource management, will require consistent data on transfer of material, waste quantity, waste recycling and ecologic efficiency.Statistical support will be needed in implementing the IPPC Directive (Integrated Pollution, Prevention and Control) so as to ensure comparability with business statistics.Development of environment accounts is important as well, since these accounts will be linked to national accounts. They will serve as a basis for environmental analyses and development of models for studying interactions between economy and environment. With further adaptations and expansions they will serve as an important statistical tool in analyses of sustainable development.

Statistical support to the policy

119 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 33 and 115–117.120 Negotiation positions for Chapter 22 – Environment, Internet, http://www.sigov.si/ops/slo/pi/problemi.html.

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The support which the environmental statistics offers to the policy is shown in the implementation of surveys of municipal waste, waste from production and service activities, water resources, environmental protection expenditure, natural disasters and municipal infrastructure. The major changes and vivid action may be expected in waste management, as it has not yet been adequately regulated. The adoption of the new legislation will also influence monitoring of waste statistics.

In the years to come, the Slovenian enterprises will engage in heavy investment activities, as they will be forced to implement the concept of clean and energy efficiency production, in compliance with a number of EU directives. Therefore surveys of environmental protection expenditure will be important.

Development of environment accounts will continue, as these accounts will monitor the use of natural resources together with exhaustion of resources and degradation of environment in a given period, while at the same time they will provide sectoral information on the structure of economy and environment funds.

Table 21: Connection of the “Environment” policy with statistical domains

XXI. ENVIRONMENTMain statistical domains 41 Quarterly and environment accounts

45 Energy and raw materials65 Animal production70 Sustainable development71 Environment statistics and indicators72 Regional and geographic information

Other important statistical domains 35 Health, safety and consumer protection44 Statistics on business entities48 Transport50 Tourism61 Land use and landscape62 Agricultural structures64 Crop production67 Other agricultural statistics68 Forestry statistics 69 Fisheries statistics

Main guidelines for the 2003–2007 period

- to revise surveys of waste statistics and harmonise them with the envisaged EU regulation;- to ensure statistical support to formulation of environmental indicators;- to improve data and/or methodologies on water statistics;- to revise surveys on municipal infrastructure;- to establish co-operation and co-ordinate activities with the Environment Agency of the Republic of Slovenia within the Ministry of the Environment, Spatial Planning and Energy;- to monitor development related to energy-environment and transport-environment indicators;- to prepare methodological material for monitoring individual sectors of environment accounts and design a project for its implementation.

National statistics performer: Statistical Office of the Republic of Slovenia

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Participating institutions: Ministry of the Environment, Spatial Planning and Energy, Environment Agency of the Republic of Slovenia, Office of the Republic of Slovenia for Physical Planning, Institute of Macroeconomic Analyses and Development, Ministry of Defence, Eco Fund of the Republic of Slovenia, Ministry of Agriculture, Forestry and Food, Chamber of Commerce and Industry of Slovenia

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XXII. OTHER POLICY NEEDS

Subject of the policy

Slovenia applied for a transitional period for its contributions to the EU budget, which has not yet been defined, as the necessary analyses are still being implemented. These analyses deal with the volume of Slovenia's contributions to the EU budget, impact of Slovenia's absorption capacity and impact of postponed disbursement of the EU funds (in phases). Slovenia expects its income from EU budget to exceed its contributions to the EU budget. It also expects that in the continuation of negotiations it will be informed in greater detail about technical aspects of disbursement.Among the EU issues is also that of co-ordination and harmonisation between different institutions in order to harmonise the management of EU budgetary inflows and outflows. By the end of 2002, Slovenia plans to enforce methodological standards in keeping records on obligations as well as determine the volume of and reporting on funds representing inflows from the EU budget121.

Principal contents of the CSP: This policy is not included in the CSP.

Statistical support to the policy

The Negotiating Positions of the Republic of Slovenia for the negotiations on accession to the European Union (RS January 2000, p. 326) stipulate that the Tax Administration of the Republic of Slovenia will be able to ensure all statistical data to be used in calculating the obligations arising from VAT (Council Regulation no. 1553/89 EEC, Euratom) by 31 December 2002 at the latest. The Statistical Office of the Republic of Slovenia will help prepare the data required by Article 4 of the above mentioned Regulation.

The Regulation requires provision of statistical data used for calculation of annual budgetary income from VAT, intermediate (weighted arithmetic) rate of VAT and the basis on which the VAT payment to the EU budget is calculated.

The report is made out annually. In order to implement it the Tax Administration of the Republic of Slovenia has to timely provide the Statistical Office of the Republic of Slovenia with complete databases on VAT, tax returns regarding taxes on sole proprietorship and personal income tax.

Table 22: Connection of the “Other Policy Needs” policy with statistical domains

XXII. OTHER POLICY NEEDSMain statistical domains 40 Annual national accounts

43 Monitoring own resources

Main guidelines for the 2003–2007 period

- to calculate annual budgetary income from VAT;- to prepare an assessment of GNP in compliance with ESA 95 and the Directive 98/130/EC, Euratom.

National statistics performer: Statistical Office of the Republic of Slovenia, Ministry of Finance Participating institutions: Tax Administration of the Republic of Slovenia

121 Negotiation position Financing and Budget, Internet, http://www.sigov.si/ops/slo/pi/podrobno.html, updated 18 September 2002.

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XXIII. GOVERNMENT EFFICIENCY

Subject of the policy

The government is implementing its development role in three basic ways: (i) it lays down and implements the basic rules of economic activity by providing for the protection of rights of the population and economic entities and for the implementability of agreements (economically and socially efficient legal order) as well as by setting up a frame for efficient functioning of markets (competition policy); (ii) it manages economic resources - directly as the owner of public and mixed enterprises, the public system manager (health, education, etc.) and the manager of public resources (budgetary income and expenses) and indirectly by regulations and financial instruments used to regulate the free business initiative and equality of citizens before the law, and by influencing the allocation of funds; (iii) it makes sure that it is internally qualified to efficiently manage and co-ordinate economic, social and other development policies as well as to function efficiently, timely and with minimum expenses122. Quality of institutions and their functioning today represents an equal constituent element of national competitiveness. Within this framework the following is essential: (i) public and national administration reform, enabling more adequate organisation for planning, monitoring and assessing the development policy; (ii) further depolitisation and professionalisation of administration as well as lessening of the government's role in managing economic entities and123 (iii) providing a greater development role of public finance, especially by restructuring expenses, i.e. their specific-purpose structure.The main guidelines of the administrative reform are the following: (i) improving qualification and professionalism of the national administration; (ii) introducing the principles and procedures of new public management; (iii) eliminating non-administrative functions from the government’s direct terms of reference; (iv) creating regions; (v) establishing a partnership between the government and its citizens; (vi) providing for more equal distribution of burden and rights between legal entities and citizens; (vii), adequately organising the judicial system and ensuring that it performs its services in due time (viii) providing adequate organisation of the government, necessary for pursuing the economic and development policies.124

The government has to acquire the necessary skills for implementing the policies according to the EU common market rules125 and carrying out the original tasks assigned to it. The method of the 122 IMAD, Development report, Ljubljana, 28 March 2002, p. 25, and supplementation by warnings contained in regular reports by the EU and by discussions at the National Assembly, warnings of the civil society (primarily including the elements of social policy and the Government’s function in this field, in addition to problems in the judiciary system).123 The Government should more and more regulate and supervise the implementation of the abovementioned services, but not the major implementer. This requires it to dedicate more attention to and assume more responsibility for regulating the contents, conditions, standards and norms applying to public services. Moreover, it has to specify their scope and supervision over implementation. The Government has to ensure the monitoring of all areas under its responsibility in an organised manner, information and communication systems and the necessary analytical and expert bases for developing and regulating these areas. In the future ,a significantly greater role in the implementation as such will be assumed by non-governmental implementers, included in public services networks based on granted concessions. (SEDS, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, p. 37).124 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, summary pp. 86–89.125 The state will loose some crucial, primarily macroeconomic policies, which will be transferred to the common EU level, with the remaining economic policies obtaining other substance and gaining importance. Due to entering the EU, the position and the role of individual state levels will change in relation to supranational institutions of the EU, national (state), regional or local community, with a larger role played by non-governmental organisations and interest groups in general – even as regards economic development. The role of the state will comprise primarily the forming of an adequate systemic framework (legislation, rules of the game, rule of law). In pursuing its economic policies, the state should focus on ensuring stable macroeconomic framework and chiefly concentrate on following structural policies used for monitoring and supporting the creation and consolidation of development indicators in economy, while searching for own development impulses in the competitive struggle and positioning on the internal European market. The role

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government’s intervention in economy and the regulative framework of the economic activity have to be adjusted in such a way as to enable, in compliance with the European rules, the best possible conditions for competitiveness among business entities. The policies for effective operational integration into the EU internal market are: (i) competition policy; (ii) state aid policy and (iii) international economic relations policy126. Due to the conditions for accessing the Union and its monetary system, the government has to draft an adequate development policy for the transition, complying with the Maastricht criteria, abolishing the economic borders with three states and introducing the amended criteria upon the establishment of the Schengen border. With the free movement of persons the government has to master the altered living and working conditions of the population and households as well as the positions of separate population groups in view of the agreed territorial division and special social groups, in particular demographic characteristics of population, its employment opportunities and other possibilities.An upward tendency in intra-sectoral transition of employees is expected (narrower state, public sector to private sector and vice versa) in Slovenia and less so in the Union or otherwise127.

Principal contents of the CSP: The CSP does not include this policy.

Statistical support to the policy

For over 20 years, Slovenia has been developing its register-orientation, which, by the transfer of basic and linked administrative registers to new managers, enabled the government and its bodies (as well as SORS) to prepare good administrative support for the functioning of basic general government functions and national statistics, providing also for the latest e-commerce activities. This infrastructure serves as a basis for part of statistical strategy and the entire MPSS and ASSP128.In general terms, the general government efficiency is measured according to the achievement of favourable macroeconomic aggregates - which is reflected in organised measuring of national economic GDP accounts, inflation and other matters defined in the MTPSS separately as regional statistics, in policies set out as the creators of national policy as a whole. Table 23: Connection of the government efficiency policy with statistical domains

XXIII. GOVERNMENT EFFICIENCYMain statistical domains 24 Registers

32 Labour market33 Education and training

Other important statistical domains 38 Other social statistics

Main guidelines for the 2003–2007 period

of the Government in the entire education system and directing of scientific research is important. (SEDS, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, pp. 24 and 25).126 Strategy for Economic Development of Slovenia, Bulletin of the National Assembly of the Republic of Slovenia, Ljubljana, 19 January 2002, no. 6, p. 11.127 Contents by SORS.128 The provision of the National Statistics Act, giving the SORS the right to obtain all micro- or individual data free of charge (including identification) for statistical purposes specified in The Annual Programme of Statistical Surveys (APSS) is basic.

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- generally, for the state as an entity comparable to other states; realising the agreed macroeconomic statistics with sufficient accuracy and transparency as well as timely, so as to provide support to the discussions and negotiations in the Union and other international environments, detailed enough at the sectoral and territorial level as well as timely for formulating development policies in the country and the Union129. This basic statistical system is proved through formulating of policies and as the basis for determining the budgets and other general government accounts;

- employment trends - adequately detailed at the sectoral and territorial levels, employees’ migrations between sectors and territorially;

- earnings by profession (sectors, territories);- efficiency of administrative procedures – statistical monitoring of administrative services;

determining and monitoring of major “non-administrative”130 services of general government;- statistics on the property (real estate) of households and population;- transition of individual groups of workers from the educational system to various

administrative and similar posts (by sector and territory) (longitudinally);- assistance in establishing regions and data support for the newly allocated functions (2004) as

well as supplying local communities with the required statistical data;- furnishing ministries and other government bodies with good samples, providing support to

decision-making models for in-depth research work;- assistance in implementing the government’s decision on measuring efficiency and statistical

monitoring of national administration;- co-operating with regulatory agencies and ministries in development of sectoral and special

statistics (tax statistics).

National statistics performer: Statistical Office of the Republic of Slovenia

Participating institutions: organisations authorised for conducting statistical survey, individual ministries and other.

129 The Union and other organisations shorten the deadlines and expand the contents required for preparing quarterly and annual accounts. Moreover, they introduce or announce satellite accounts for agriculture, tourism, environment and other areas. The implementation of the ESA 95 method is common for all areas at the state and at the international levels.130 Services not completed by an administrative procedure.

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XXIV. CO-OPERATION WITH INTERNATIONAL ENVIRONMENT

Subject of the policy

By joining the European Union, the Republic of Slovenia will also become the member of the European Investment Bank (EIB). As a member of the World Trade Organisation (WTO), the Republic of Slovenia is participating in activities of this organisation (accession to the Ministerial Declaration on Trade in Information Technology Products). Slovenia is not a member of the Organisation for Economic Cooperation and Development (OECD), but in February 2002 it acceeded to its Declaration on International Investment and Multinational Enterprises. Agreements on economic co-operation are concluded between Slovenia and third countries, which are not, however, contrary to the acquis communautaire and do not obstruct the common commercial policy. Thus, Slovenia has entered into agreements with 33 countries, namely, in addition to the EU, also with the CEFTA and EFTA countries, Croatia, Macedonia, Baltic States (Lithuania, Latvia, Estonia), Turkey, Israel and Bosnia and Herzegovina. Preliminary negotiations with the FRY (Serbia and Montenegro) are also underway131.

Principal contents of the CSP: The policy of external relations of the EU is supported by providing adequate statistical support, resulting in an increase of statistical capacity and ability to adapt to changes in the countries receiving the EU aid.Ever greater emphasis will be placed on monitoring of poverty, regional inclusion, price statistics, agricultural statistics, external trade, enterprise statistics, improvement of national accounts, statistical training, etc.In addition to social and economic statistics, the priorities are migrations, tourism and environment.Eurostat will support the work within the context of OECD/DAC, UN and the World Bank, to assess the influence of co-operation in realising the Development Goals of the Millennium adopted at the UN meeting at the 2000 summit. Technical co-operation activities will focus primarily on the user and promote the values of multi-annual programming. The goal of innovative work will be to establish new approaches and methods for measuring and monitoring human rights and good management.

Statistical support to the policy

Through Eurostat and OECD, SORS will be included in the regional CARDS programme in several areas, i.e. at least in the pilot project of price comparison and calculation of purchase power parities, carried out by a group managed by SORS. The group includes 5 countries from the Western Balkans. The assistance comprises organisation and implementation of seminars and work meetings, data control and calculation of price ratios. SORS will start with activities in the framework of the abovementioned pilot project in January and February 2003.

Table 24: Connection of the Co-operation with international environment policy with statistical domains

XXIV. CO-OPERATION WITH INTERNATIONAL ENVIRONMENTMain statistical domains 19 International co-operation

21 Technical (statistical) co-operation with third countries

131 Republic of Slovenia’s National Programme for the Adoption of the Acquis – revision 2002, no. 0131-2/2002,20 17 May 2002, p. 179.

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Main guidelines for the 2003–2007 period

- developing methods and ways for measuring and monitoring poverty, regional development and other statistical domains;

- co-operating with all international statistical organisations, primarily with the UN (United Nations), Eurostat and OECD (Organisation for Economic Cooperation and Development) as well as numerous national statistical offices;

- providing technical assistance to statistical offices of the former Yugoslavia, other countries of the so called Western Balkans and the countries requesting expert assistance based on concluded co-operation agreements or agreements awarded through international tenders.

National statistics performer: Statistical Office of the Republic of Slovenia, Bank of Slovenia, Institute of Public Health of the Republic of Slovenia, Employment Service of Slovenia, Ministry of Finance

Participating institutions: Ministry of Foreign Affairs

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8. MONITORING OF PROGRAMME IMPLEMENTATION

In order to provide for effective functioning of the general government, the Republic of Slovenia needs statistical data of high quality. Political decision makers and market players constantly rely on statistics in adopting their decisions as well as in monitoring and assessing their implementation. With the Republic of Slovenia’s decision to join the European Union, the volume of required statistical data increased, as did the need for their comparability and quality.

If the statistics are to satisfy the users’ needs, they have to be reliable, independent from political interference and available at the time and in the form most suitable for the users. Preparation of statistics must not represent an additional burden to data providers.

The Medium-Term Statistical Programme must enable an overview of strategies, priorities and work programmes, planned for the duration of that programme. A five-year programme is supported by annual programmes, stating more detailed goals for each separate year.

Monitoring of the implementation of the Medium-Term Statistical Programme is specified in Article 25 of the National Statistics Act, which stipulates that the Statistical Office of the RS, together with authorised performers of national statistics, stated in the Medium-Term Statistical Programme, will, during the third year of the abovementioned programme, present to the Statistical Council of the Republic of Slovenia132 an Intermediate Report on performed work and the Final Report to be submitted to the government of the RS in the year following the time frame of the programme.

Thus, two reports are planned to be drafted within the framework of the Medium-Term Programme of Statistical Surveys 2003-2007. One during the implementation of the programme (at the end of its third year, i.e. after 2005) and the other after its completion, i.e. in 2008.

The implementation of the programme will be constantly monitored by the Statistical Council of the RS, Statistical Advisory Committees of the RS, users and providers of data, which are necessary for carrying out activities of the national statistics as well as for compliance with international requirements.

The Statistical Advisory Committees133 are established within the Statistical Office of the RS, covering various statistical domains and discussing the proposed Medium-term and Annual Programmes of Statistical Surveys. The Statistical Advisory Committees of the RS and the Statistical Council of the RS are assigned a very important task of discussing the Statistical Programme. Together with the national statistics performers they provide for maximum harmonisation of the priorities set for the five-year programme with those of the annual programmes throughout the medium-term programme. Furthermore, they also ensure that the statistics react continuously to all changes in the environment.

The Statistical Office and authorised performers prepare a report on the work performed under the previous annual programme by 30 April of the current year for the previous year. The report is discussed by the Statistical Council of the RS as well as reviewed and analysed by the Statistical

132 The Statistical Council of the RS has been established pursuant to Article 12 of the NSA as a professional methodological advisory body for strategic and developmental questions of national statistics. The Act also lays down the tasks of the stated Council, determines from which institutions its members are and specifies their term of office.133 Based on Article 15 of the NSA, SORS establishes the Statistical Advisory Committees of the RS covering separate national statistical domains. The members of these committees are appointed upon the SORS’ request by the heads of institutions. In 2002 there were 24 Statistical Advisory Committees of the RS having a membership of about 380 external members and slightly more than 115 SORS’ employees.

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Advisory Committees of the RS at their meetings. Objections and suggestions are taken into account when preparing the following annual programmes.

In the negotiations on its accession to the European Union, the Republic of Slovenia undertook to fully bring the national statistics of the RS in line with the acquis by the end of 2002. Its obligations have been met in full. Until accession and also afterwards - as a member of the EU - it will comply with the national and international statistical requirements.

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9. LIST OF ABBREVIATIONS

LFS Labour Force SurveyAgrIS Agricultural Information SystemAUVIS Audio-visual ServicesGDP Gross Domestic ProductBiH Bosnia and HerzegovinaBoS Bank of Slovenia CAP Common Agricultural PolicyCC Candidate CountryCEDEFOP Centre Europeen pour le Developpement de la Formation Professionnelle

European Centre for the Vocational Training CEFTA Central European Free Trade AssociationCIRCA Communication and Information Resource Centre AdministratorCOINS Communication and Information StatisticsCOMEXT Eurostat reference database containing external trade statisticsCPA Statistical Classification of Products by Activity in the European

Economic CommunityCSP Community Statistical ProgrammeCARS Customs Administration of the Republic of Slovenia CVTS Continuing vocational training surveyVAT Value Added Tax DG Directorate GeneralDG INFSO Directorate General – Information Society (European Commission)TARS Tax Administration of the Republic of Slovenia E-CORE Electronic Collection of Raw data from EnterprisesEC European CommissionECAA European Common Aviation Area AgreementECB European Central BankECE Economic Commission for Europe – of the United NationsECMT European Conference of Ministers of TransportECU European Currency Unit - Replaced by the EuroEDI Electronic Data InterchangeEDICOM Electronic Data Interchange on CommerceEEC European Economic CommunityEFTA European Free Trade AssociationEIB European Investment Bank EMS European Monetary System PIN Personal Identification Number EMU European Monetary UnionEODS European Occupational Diseases StatisticsERDF European regional development foundation ERM European Exchange Rate Mechanism - a mechanism for regulating

exchange rates based on fixed yet flexible exchange ratesEC European Community ESA European System of AccountsESAW European Statistics on Accidents at WorkESCB European System of Central Banks ECSC European Coal and Steel Community ESSPROSS European System of Social Protection StatisticsEU European UnionEURATOM European Atomic Energy Community

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EUROSTAT European Statistical Office EXTRASTAT External Trade Statistics (trade with third countries)GATS General Agreement on Trade in ServicesGATT General Agreement on Tariffs and TradeGESMES/CB General statistical massage for Central BankGFS 2001 Government financial statisticsGIS Geographic Information Systems GISCO Geographic Information System of the Commission HICP Harmonised Index of Consumer prices HRST Human Resources in Science and TechnologyHS/CN Combined Nomenclature of Customs Tariff IACS Integrated Administrative and Control SystemICT Information and Communication TechnologyINTRASTAT Internal Trade Statistics (trade with EU member states)IPPC Integrated Pollution and Prevention ControlISCED International Standard Classification of EducationISCO International Standard Classification of OccupationsISO International Organisation for StandardizationISO 14000 International Organisation for Standardization 14000ISS Information Society StatisticsASSP Annual Statistical Survey ProgrammeMF Ministry of Finance (MF - Ministrstvo za finance)MUFA Monetary union financial accountsNACE General Industrial Classification of Economic Activities in the European

Communities (Nomenclature generale des Activites economiques dans les Communautes Europeennes)

FDI Foreign direct investments NUTS Nomenclature of Territorial Units for Statistics (Nomenclature des

Unites Territoriales Statistiques)OECD Organisation for Economic Cooperation and DevelopmentPHARE Action plan for coordinated aid to Poland and Hungary (subsequently

extended to the remainder of the Central and East European countries). It comprises programmes financed by the EU since 1990 to assist with economic restructuring in the Central and East European countries.

PPP Purchase power parity PRODCOM Products of the European CommunityREGIO Eurostat’s database for regional statistics RIS Research on Internet in Slovenia RS The Republic of Slovenia SAPARD Special Accession Programme for Agriculture and Rural DevelopmentSBS Structural Business StatisticsSILC Statistics on Income and Living Conditions SIRE Eurostat’s Infra-regional Information System SPO Slovenian public opinion SAEP Slovenian Agricultural and Environmental Programme SCTU (in Slovenian: SKTE)

Standard Classification of Territorial Units

SBR Statistical Business Register MTPSS Medium-Term Programme of Statistical Surveys STAT 2000 Aligment of Slovene Statistics with the Acquis CommunautaireWTO World Trade Organisation SORS Statistical Office of the Republic of Slovenia

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SORS RDB Statistical Office of the Republic of Slovenia; Regional Statistical Database

TAPAS Technical Action Plan for Improving Agricultural StatisticsTEN Transport and Environment Reporting Mechanism of the European

Environment AgencyTERM Trans-European networksSTA Satellite Tourism Account UN United NationsUNESCO United Nations Educational, Scientific and Cultural OrganisationVAT Value Added TaxWTO World Trade OrganisationUSA United States of America UN United Nations FRY Federal Republic of Yugoslavia

This programme shall be published in the Official Journal of the Republic of Slovenia.

No. 050-00/201-3Ljubljana, 9 January 2003

The Government of the Republic of Slovenia

Anton Rop, MSc President

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