How to Attract More Investments from Germany?

There would be more German investments in Slovenia if the processes for obtaining land and real estate did not take too long, stated Gertrud Rantzen, president of the mixed Slovenian-German Chamber of Commerce, in an interview with the Ljubljana daily newspaper Dnevnik on Tuesday.

– Everything takes too long in Slovenia. Some German companies have complained to us that in the time they would spend obtaining permits in Slovenia, they could already build a factory and start selling in Poland – said Rantzen, who has been leading the mixed chamber for about ten years. – The biggest problem is real estate and construction land – she emphasized.

The experienced German manager, who is familiar with the conditions in Slovenia, said that this must be the main challenge for the new government that wants to attract investors, but that changes are also needed in the area of tax policy and labor legislation, as well as a change in the climate regarding foreign investments in general. Rantzen stated that she does not understand the perceptions that foreign investors come to take over and destroy a company, leaving workers on the street.

– I am not aware of any case where a foreign investor bought a Slovenian factory, financially drained it, and moved production. For German investors, I can say that they do not come with large investments, but start with the construction of a production hall and employ 50 to 100 workers, after which the next investment comes in two years. Therefore, I can hardly understand the fear of foreign investors behind which there are no real arguments and evidence – said Rantzen.

With last year’s mutual exchange of 8.5 billion euros, Germany is Slovenia’s largest economic partner, but in terms of investments, it ranks only fourth, behind Austria, Italy, and France. Of the total of about 12 billion euros in direct foreign investments in Slovenia, 1.4 billion comes from Germany, mostly in the industry that produces parts for the automotive industry.

– In the industry that still remains in Slovenia, it is necessary for companies to improve quality, which is a very significant condition, especially in the automotive industry – said Rantzen. Among some of the main problems in the Slovenian economy, Rantzen mentioned the insufficient focus on innovation and competitiveness, as well as the large share of state-owned assets and the Slovenian “business model” with a high degree of interconnection among companies.

– All these companies are somehow interconnected regardless of their different business activities. Such companies support each other instead of concentrating on their core business and striving to enhance the competitiveness of their products or services, for example, by investing in human resources and education – Rantzen said in the interview.