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Slovenia Business Week no. 29/2004: Parliament Passes Act on Promotion of FDI

The main purpose of the act is to create an institutional basis for an efficient promotion of FDI and to accelerate the internationalisation of Slovenian companies, especially small and mid-sized enterprises

Lawmakers on Thursday, 15 July confirmed the government-proposed act on the promotion of foreign direct investments (FDI) and the internationalisation of companies.

The main purpose of the act is to create an institutional basis for an efficient promotion of FDI and to accelerate the internationalisation of Slovenian companies, especially small and mid-sized enterprises.

The act is designed to promote investment, which will have positive spillover effects on other parts of the economy.

Among measures to promote FDI, the act introduces measures to offer free information, counselling and other services to foreign investors, as well as the marketing of Slovenia as an investment destination and financial incentives for investments.

According to the act, the government must adopt a five-year programme for the promotion of investment. Funds for financial incentives are provided by the national budget and other domestic and foreign sources.

The objectives of the state subsidies are to create new jobs, transfer knowledge and technologies, achieve a balanced regional development and create synergies in promoting the cooperation of foreign investors with domestic companies.

The promotion of FDI and the internationalisation of Slovenian companies (by organising events, providing counselling and information) will be in the hands of a public agency that the government must create no later than one year after the act is adopted.

The agency will be created with the transformation of the Trade and Investment Promotion Office, which will no longer be part of the Ministry of Economics.

Author: Branka Murn