By: Edvard Kadič
In Slovenia, we are increasingly feeling the effects of the economic and political situation, which directly impacts the lives of citizens. The situation in the economy is becoming alarming. Companies are withdrawing, shutting down, or publicly warning about the deteriorating economic environment. Firms such as Boxmark, Mahle, and the Maribor Foundry are just a few examples of companies either relocating production abroad or facing plant closures and mass layoffs. The economic climate is worsening, and businesses at various conferences are literally crying out for help and understanding.
Robert Golob’s government bears a significant part of the responsibility for the current situation. Although companies such as Mahle cite global factors like declining sales, unfavourable exchange rates, and rising labour costs, the role of the Slovenian government is crucial in creating a favourable economic environment. Through its decisions and policies, the government influences the competitiveness of the economy, and it is evident that not enough is being done to prevent this alarming situation.
One of the biggest issues burdening Slovenian businesses is undoubtedly the high cost of energy. While the Ministry of the Economy emphasises that structural problems within Slovenia’s industry are the main factor for declining competitiveness, the high cost of energy is often mentioned as a key element. Energy-intensive sectors are particularly affected by this, leading to reduced productivity and, in turn, layoffs. Although the theory sounds logical, the reality is that Slovenia, the smallest country in the world with its own nuclear power plant, has failed to capitalise on its energy resources to provide stable and competitive conditions for its businesses.
Prime Minister Golob has called on Minister of the Economy Matjaž Han for swift action and has announced an emergency short-time work scheme. But is it not a bit too late? The cooling of the economy in Germany and the looming recession in Europe have been predicted for some time. Instead of preparing in advance for the impending challenges, Golob’s government increased budget spending as if there were no limits to revenue.
The government should have developed long-term measures to create a stable business environment. While structural problems are recognised, the government seems to be offering only short-term solutions and rhetoric that shifts blame to the previous administration. Worse than such childish behaviour from those in charge is the fact that, in many areas, experts remain silent, seemingly out of fear of political pressure and media attacks. The atmosphere in the country is tense, as those who dare to speak out and warn about the critical situation often become targets of discreditation. Due to the lack of systemic reforms and incentives, businesses are forced to cut operational costs, leading to layoffs, but they have no voice in the public discourse.
On the other hand, trade unions are increasingly vocal about the impending crisis, which will affect a wide range of workers due to layoffs. The government, which is supposed to ensure social dialogue, should be actively seeking solutions to preserve jobs. But the current government measures are improvised and lack a clear vision, creating even more uncertainty and causing a decline in confidence in the government’s ability to manage the economic crisis effectively. Trust in the government, which seems to operate on the principle of “promise, believe, and go on vacation”, is already minimal – and now it is even lower.
Things will get worse when people receive their new, higher electricity and heating bills, along with the consequent increase in prices for basic necessities. The situation is not complicated – it does not take a genius to understand where this is heading.
What will happen when people face the reality of rising living costs, declining incomes, and an uncertain future? A political approach that fails to offer clear and long-term solutions cannot prevent further economic destabilisation. It must be said clearly: without effective measures, the economic crisis in Slovenia will have far greater consequences than we imagine. Even today, Croatia is catching up with us economically, the Czechs and Poles are only laughing at us, and Serbia and Slovakia will soon be right behind us.
Considering that Slovenia has certain advantages, such as knowledge, the energy potential of its own nuclear power plant, and its strategic location, the country could improve its economic situation with appropriate reforms and a clear vision. However, this requires a government that acts strategically and long-term, not with ad hoc and short-sighted solutions. For a stable future, we need to consider effective measures that will reduce costs for businesses while preserving jobs and preventing further social and economic erosion.
What awaits us in the coming months is already quite predictable: serious economic challenges that will require responsible and coordinated action from the government, businesses, and society. Is the pilot really in the plane?