Business News

Austrian Firms in Slovenia Unhappy About Taxes, Labour Law

Ljubljana, 18 May (STA) - Austrian firms operating in Slovenia are unhappy about the state of the Slovenian economy, in particular the tax system, labour law and corruption, according to a survey by Advantage Austria, a portal of the Austrian Federal Chamber of Commerce.

Almost two-thirds of respondents said the economic situation in Slovenia was poor, though this is still an improvement over 81% in 2012.

Similarly, 55% said the prospects for the economy this year were bad and only 39% said they were satisfactory.

However, for next year 46% expect better prospects.

More than four in ten respondents expect higher revenue this year but almost the shame share believe they will be flat.

Just over a fifth of the respondents plan new hiring as opposed to 68% who do not expect changes.

The firms are unhappy about the tax system, subsidies, poor labour market flexibility, the fight against corruption and payment delays.

But they are reasonably satisfied with the effectiveness of public administration, public contracts and the workforce.

For Slovenia to be more attractive to foreign investors requires political stabilisation, more flexible labour laws, lower taxes, abolition of red tape, fight against corruption, and better transparency, according to the survey.

Austria is the single biggest source of foreign direct investment in Slovenia, with around 700 companies in majority Austrian ownership currently operating here.

The survey was carried out at the end of March among 103 executives at Austrian subsidiaries and selected local partners of Austrian firms.

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