Business News

German Companies in Slovenia Satisfied with 2010 Results

Ljubljana, 15 April (STA) - German companies in Slovenia posted good results last year and remain relatively optimistic regarding 2011, according to a survey presented on Friday by the Slovenian-German Business Chamber. They are, however, less satisfied with the economic situation in Slovenia, in particular with defaults on payment.

As many as 70% of 572 companies participating in the survey assessed the current economic situation as bad, which according to the chamber means that Slovenia has not completely exited the economic crisis.

German companies are meanwhile satisfied with their business, with 39% of them assessing last year's results as good and 43% as satisfactory. Only 19% of the surveyed companies said that their results were poor in 2010.

More than a half of the companies (54%) do not expect the situation to improve in 2011, 27% believe that their operations will improve, and 19% of them have announced poorer results compared to 2010.

Major cuts in workforce are not expected, as only 11.5% of the companies said they would reduce the number of workers, while as many as 31% announced additional hiring.

The survey, which has been carried out annually among the chamber members since 2003, suggests that companies exporting to Germany and other countries are considerably more optimistic than those operating only in Slovenia and SE Europe.

Payment discipline in Slovenia has been assessed as bad or very bad by 68% of the companies, which is the worst result so far in the survey. As as many as 62% of the companies wait two or more months to be paid for their goods or services.

The share of German companies which are unhappy with taxes increased compared to last year's survey, as 65% of the companies have assessed them as high or too high.

They are also unsatisfied with the availability of EU funds and other subsidies and start-up funds, low domestic demand, inefficiency of the public administration and lengthy and complicated administrative procedures.

As usual, German companies have also been critical of productivity, motivation and skills of the labour force in Slovenia and the availability and quality of suppliers. As many as 80% also said that the government crisis measures have missed the target.

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