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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case SI-2020-18/908 Updated – measures in Slovenia

Set of measures to sustain the sectors most hit by the pandemic

Pomoč najbolj prizadetim sektorjem

Country Slovenia , applies nationwide
Time period Temporary, 01 May 2020 – 30 June 2021
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Maja Breznik (University of Ljubljana) and Eurofound
Case created 02 July 2020 (updated 24 February 2021)

Background information

The second and the third COVID-19 laws bring a lot of measures to get sectors, most hit by the epidemics, back to the normal. Measures include various projects:

  • Less rigid requirements for construction plans to boost the construction sector.
  • Tourist vouchers to help the tourist and hospitality sector.
  • State loans and grants to compensate the loss of income.
  • Financial incentives (loans and grants) to generate new investments and creation of new jobs.
  • Less rigid requirements for construction plans in agriculture and favorable agricultural rents (discounted or free of charge).

Measures particularly address these sectors: tourism and hospitality, road transport, agriculture, manufacturing and others.

Content of measure

The second COVID-19 law intends to boost investments in the construction sector by an accelerated procedure in obtaining building permits. The law requires, for example, more rigid criteria from environmental organisations (at least 50 active members, 3 full-time employees holding a diploma in natural sciences, €10,000 of assets in the last three years) to participate in the procedure.

The second and third COVID-19 laws help the tourist and hospitality sectors with tourist vouchers. Tourist agencies and organisers of sports events may issue vouchers instead of reimbursement for unrealised travels or events. Payment moratorium expires in 24 months. In order to revitalise the tourist sector, each permanent resident of Slovenia gets tourist vouchers (adults €200, minors €50), valid until 31 December 2020, to be spent on accommodation. The government estimates the cost of tourist vouchers at €345 million, while the multiplier effects are estimated to be €172 million.

State grants and loans co-finance the loss of income in tourism and hospitality, provide support for manufacturing in the affected border areas, encourage digitalisation of companies and development projects. Micro, small and medium-sized companies as well as large companies affected by the pandemic are eligible. On top of this, the state gives €35 million to companies in the road transport industry, financial aid for managers of ski lifts, ranging from €1,000 to €12,200 per lift.

Businesses meet less strict requirements for obtaining co-financing of investments until 30 June 2021. The incentives will be granted if the investment creates at least 10 jobs in the manufacturing or service sector, or 3 jobs in research and development within three years after its completion. The minimum threshold for investments is €12 million in manufacturing, €3 million in the service sector, and €2 million in research and development. Agricultural businesses may profit from less rigid requirements for building greenhouses, irrigation systems, and plantations until 31 December 2020, subsidies for the exploitation of geothermal energy for farming, or more favorable rents (discounted or free of charge) in agriculture.

Updates

The following updates to this measure have been made after it came into effect.

03 February 2021

The eighth COVID-19 (ZDUOP), adopted on 3 February 2021, extends lost income support for transport (public transport, railway passenger transport, school buses and occasional transport operators) until 30 June 2021.

08 January 2021

The seventh COVID-19 law (ZIUPOPDVE), adopted by the Parliament on 29 December 2020, extends support mechanism for transport until 31 May 2021. Road passenger and freight companies may request support for operational costs and investments. The total support is €25 million. Moreover, compensations for lost income due to the ban on passenger transport, are prolonged until 31 March 2021. City transport also has the right to the maximum 70% compensation for lost income since 1 June 2020. The beneficiaries must prove the payment of all wages and social contributions. A support scheme is in place for the transport of school buses, casual transport with vans, and bus stations from 1 November 2020 to 31 March 2021. In air transport, the law brings lower charging for air navigation services. In rail transport, passenger transport obtains the maximum 80% compensations for interrupted services during the two waves of the epidemic (until 31 March 2021).

27 November 2020

The sixth COVID-19 law (ZIUOPDVE), adopted by the Parliament on 25 November 2020, gives compensation to transport companies due to suspension of public transport in the second wave of the epidemic.

18 October 2020

The fifth emergency act (ZZUOOP), adopted by the Parliament on 15 October 2020, endows public transport and occasional transport operators the right to compensation for the prohibition of transport during the epidemic. Transport operators also have the right to reimbursement for protective equipment

Use of measure

More rigid criteria for environmental organisations raise concern in the public since new rules exclude environmental organisations from the procedure in obtaining the building permit. It is believed that new rules jeopardise the protection of nature. Adoption of this regulation is one of the motives for mass protests held every Friday evening. Ten protests so far gathered from a few thousand to ten thousand people. Other issues of disputes are corruption in the procurement of security and medical equipment, replacement of some top officials, the extension of the powers of the military, police brutality and others.

The Institute of Macroeconomic Analysis and Development (UMAR) issued a study on the impact of COVID-19 epidemic on the tourist sector. It quotes data of the Statistical Office from the year 2017 when the tourist sector had a share of 8.4% in GDP and employed about 55,000 employees. Seventy per cent of income came from foreign tourists, including daily and transit guests. The closure of borders and accommodation facilities during the epidemic brought down the tourist activities. In April 2020 the income was cut by 86% compared to April 2019. Only the food delivery at home was prosperous but limited to urban settlements. Tourist vouchers were supposed to boost tourism after the epidemic. The Ministry of Economic presupposed that about 70% of vouchers will be redeemed. On 23 August, this plan was far from being realised. The Financial Administration reported that about 20% of all tourist vouchers were redeemed until 23 August 2020. The proprietors of tourist vouchers have time to spend them until 31 December 2020.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Negotiated Negotiated
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Up to 15 May 2020, social partners communicated with the government mostly by the written proposals. Negotiations between social partners were blocked because the new government, which came to power on 13 March 2020, had not appointed its members in the Economic and Social Council. On 20 April, trade unions protested against the exclusion of social partners in the preparation of emergency laws. They demanded the reactivation of the Economic and Social Council. The first meeting of the Economic and Social Council was held not before 15 May 2020. Since 15 May, the Council is involved in negotiations about next emergency laws.

Views and reactions

Both laws adopted many proposals of employer organisations. However, in their written comments on the third emergency law (ZIUZEOP ), four employer organisations mention some solutions which were not adopted: a restriction on the raise of the minimum wage in January 2021, less complicated obtaining of permits for work at home after the epidemics, state compensation of rents etc.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
      C - Manufacturing C10 Manufacture of food products
      C11 Manufacture of beverages
      C12 Manufacture of tobacco products
      C13 Manufacture of textiles
      C14 Manufacture of wearing apparel
      C15 Manufacture of leather and related products
      C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
      C17 Manufacture of paper and paper products
      C18 Printing and reproduction of recorded media
      C19 Manufacture of coke and refined petroleum products
      C20 Manufacture of chemicals and chemical products
      C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
      C22 Manufacture of rubber and plastic products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals
      C25 Manufacture of fabricated metal products, except machinery and equipment
      C26 Manufacture of computer, electronic and optical products
      C27 Manufacture of electrical equipment
      C28 Manufacture of machinery and equipment n.e.c.

This case is not occupation-specific.

Sources

  • 30 April 2020: Zakon o interventnih ukrepih za zajezitev epidemije COVID-19 in omilitev njenih posledic za državljane in gospodarstvo, ZIUZEOP-A [Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (www.uradni-list.si)
  • 13 May 2020: Employer organisations, Proposal (www.gzs.si)
  • 20 May 2020: The Government of the Republic of Slovenia, ‘Government adopts the third anti-corona package (www.gov.si)
  • 30 May 2020: Zakon o interventnih ukrepih za omilitev in odpravo posledic epidemije COVID-19 (ZIUOOPE) [Act Determining the Intervention Measures to Mitigate and Remedy the Consequences of the COVID-19 Epidemic (www.uradni-list.si)
  • 07 July 2020: [The impact of COVID-19 on tourism] Vpliv epidemije COVID-19 na turistično dejavnos (www.umar.gov.si)
  • 23 August 2020: [Tourist vouchers on 23 August 2020] Turistični vavčerji. Stanje na dan 23. 8. 202 (www.gov.si)
  • 15 October 2020: Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences (Zakon o začasnih ukrepih za omilitev in odpravo posledic covid-19, ZZUOOP)
  • 30 December 2020: Act Determining Intervention Measures to Assist in Mitigating the Consequences of the Second Wave of COVID-19 Epidemic (Zakon o interventnih ukrepih za pomoč pri omilitvi posledic drugega vala epidemije COVID-19, ZIUPOPDVE (pisrs.si)
  • 04 February 2021: Act on Additional Measures for Mitigation of Consequences COVID-19 (Zakon o dodatnih ukrepih za omilitev posledic COVID-19, ZDUOP (www.pisrs.si)

Citation

Eurofound (2020), Set of measures to sustain the sectors most hit by the pandemic, case SI-2020-18/908 (measures in Slovenia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.