Position Paper for Slovenia

1. Position Paper for Slovenia Position of the Commission Services on the development of the Partnership Agreement and Programmes in Slovenia for the period 2014-2020 Launch Event in Ljubljana 29 November 2012

2. Introduction • Strong alignment with the Europe 2020 strategy, thematic concentration and performance incentives • Common Strategic Framework (CSF) funds to jointly foster competitiveness, convergence and cooperation at all levels • Need for strong prioritisation and result orientation

3. Partnership Agreement/Contract -Commission Services' Position Paper • Framework for dialogue between Commission services and Slovenia • Key challenges and funding priorities linked to Europe 2020 objectives and Country Specific Recommendations for Slovenia • Optimise the use of CSF funds and concentrate future spending on priority areas

4. Economic situation in Slovenia • Slovenian economy hard hit by the crisis, limited business prospects • Unemployment forecast: 8.4% in 2012, peak at 9.4% in 2013 • Regional disparities remain important in Slovenia: • GDP per head of almost 129% of the EU average in the capital city region of Osrednjeslovenska • GDP per head of only 59.3% of the EU average in the Zasavska region

5. Europe 2020 headline targets

6. Main challenges Low labour market participation Burdensome business environment hindering competitiveness on domestic and export markets Inefficient use of resources

7. Challenge: Low labour market participation Untapped labour marketpotential of olderworkers (employment rate of people aged 55-64 across the EU) 2000 performance 2011 performance % Source: Eurostat

8. Risk of poverty below the EU average… • At-risk of poverty in the EU, 2011, % of total population

9. Some groups are athigherrisk of poverty • At-risk-of-poverty rates by vulnerable groups in Slovenia, 2011* *At risk of poverty rate : cut-off point: 60% of median equivalised income after social transfers Source: EU-SILC 2011

10. Responsiveness of the education and training system to labour market • Incidence of self-reported skill mismatch, % of employees, 2010

11. Funding priority n°1: Increase labour market participation through employment, education & social inclusion • Enhance labour market participation of themost vulnerable groups • Improve employment and income opportunities, as well as social inclusion ofvulnerable groups • Improve matching of labour market skills supply and demand

12. Enhance labour market participation of the most vulnerable groups • 1. Access to employment for job-seekers and inactive • Increase employment of older and young workers, low-skilled and long term unemployed • Provide targeted and tailored training, validation of skills • 2. Active and healthy ageing • Promote elderly friendly work organisation • Support healthier working lives • 3. Promoting development and job creation in rural and coastal areas • • Support creation of new small enterprises and job creation • • Support labour mobility 12

13. Improve employment and income opportunities, as well as social inclusion of vulnerable groups • 1. Active inclusion • Reinforce measures to help people return to employment • Provide integrated employability measures • Improve cost-effectiveness/adequacy of social and unemployment benefits, while minimising traps effects • 2. Enhance access to affordable, sustainable and high quality services • • Healthcare services and reduce inequalities • • Long-term care services (deinstitutionalisation) • 3. Promote social inclusion, poverty reduction and economic development in rural areas • Foster community-led local development initiatives • Support social farming 13

14. Improve matching of labour market skills supply and demand • 1. Enhance access to life-long learning, upgrade skills of the workforce and increase labour market relevance of education and training systems • Participation in lifelong learning of older workers, low skilled and long term unemployed • Implement life-long learning strategies for the workforce • Promote vocational education and training • Promote partnerships between social partners, enterprises, education institutions • 2. Foster knowledge transfer and innovation in agriculture, forestry and rural areas 14

15. Challenge: Burdensome business environment hindering competitiveness • Insufficient "knowledge triangle", access to finance and entrepreneurship • Better connections between research and entrepreneurial sectors • Low level of productivity, barriers to internationalisation • Insufficient focus on strategic sectors and key enabling technologies • Railway network not competitive enough • Freight haulage, modal shift • Reduction of greenhouse gas emissions • Inefficiencies in the public administration • Weak institutional capacity (e.g. business environment, public procurement, competition etc.) • Lack of coordination • Cumbersome spatial planning procedures

16. Funding priority n°2: Competitive economy for growth &jobs in a business-friendly environment (including infrastructure) • Foster an effective "knowledge triangle" & innovation processes • Facilitate access to finance, promote entrepreneurship and exploit new businessopportunities • Develop a modern and competitive rail network • Improve efficiency of public administration and, where appropriate, institutional capacity

17. Foster an effective "knowledge triangle" and innovation processes 1. Enhance research and innovation activities • Promote cooperation between private and public sector institutions into joint research projects 2. Promote research & innovation investments, product and service development, technology transfers, networking • Implement a comprehensive smart specialisation strategy with focus on specific strengths and potentials in strategic sectors and key enabling technologies

18. Facilitate access to finance, promote entrepreneurship & exploit business opportunities 1. Promote entrepreneurship by facilitating the economic exploitation of new ideas and fostering the creation of new firms • Develop a tailor-made offer of financial instruments, including the provision of start-up capital • Establish business advisory services • Support business development and higher quality products to enhance competitiveness, viability and sustainability, also in the agricultural, fisheries and aquaculture sector 2. Develop new business models for small and medium-sized enterprises • Enhance the internationalisation of activities while taking their size into account

19. Develop a modern and competitive rail network 1. Improve the quality of railway infrastructure and planning • Increase speed on the railway network and main rail corridors • Ensure the development of the European Rail Traffic Management System • Strengthen institutional capacity in preparation, prioritisation and smooth implementation of strategic railway projects 2. Enhance regional mobility by upgrading the secondary rail network and connectivity to main network 3. Develop sustainable transport systems • Improve the quality of public transport, including interoperability • Support modal shifts from road to rail

20. Improve efficiency of public administrationand institutional capacity 1. Investment in institutional capacity and the efficiency of public administrations and public services • Ensure efficient implementation of public policies (quality of civil justice procedures, enforcement of competition etc.) • Establish a framework for state-owned enterprises and improve bankruptcy procedures • Improve preparation and implementation of public procurement 2. Capacity-building for stakeholders delivering employment, education, health and social policies, and sectorial and territorial pacts to mobilise for reform

21. Challenge: Inefficient use of resources • Energy efficiency, renewable energy sources and smart grids • Energy efficiency still very low • Share of renewable energy sources in gross final energy consumption below the target of 25% (20% in 2010) • The national transmission grid is becoming a bottleneck • Resource efficiency • Waste management and recycling infrastructures • Sensitive areas and biodiversity • Mountain areas and areas with specific handicaps • High nature value areas/Natura 2000 areas • Climate change • Increased production risks • Increasing natural disasters 21

22. Funding priority n°3: Environment-friendly and resource-efficient economy • Energy-efficient sectors with low greenhouse gas emissions and expanded smart grids • Enhanced waste treatment and recycling facilities • Environmental protection and improved management of natural resources 22

23. Energy-efficient sectors with low greenhouse gas emissions and expanded smart grids 1. Promote environmentally-friendly energy production from renewable energy sources and the reduction of greenhouse gas emissions • Increase investments in renewable energy sources • Increase energy-efficiency in businesses, public infrastructures, private housing and agricultural holdings • Expand smart distribution systems at low voltage levels (smart grids and smart metering) • Enhance natural carbon sequestration 2. Promote low-carbon strategies for urban areas • Sustainable urban mobility 23

24. Enhanced waste treatment and recycling facilities 1. Investments in the waste and water sectors to meet the requirements of the environmental acquis • Implement the waste hierarchy by giving priority to prevention, re-use and recycling • Complete and ensure the proper running of infrastructure for collection and biological treatment of waste water • Protect drinking water sources and ensure quality monitoring • Implement an integrated approach and water-efficiency measures in the main water-consuming sectors 2. Investments to improve the urban environment 24

25. Environmental protection and improved management of natural resources (I) Preserve biodiversity and improve soil, air and water management (targeted agri-environment schemes) Promote environmentally sound farming systems, support farming in less-favoured areas andenhance sustainable forest management Promote sustainable management of Natura 2000 and High Nature Value areas Support ecosystem based approaches, green corridors and green infrastructure 25

26. Environmental protection and improved management of natural resources (II) • Ensure resilience to negative impacts of climate change • Improve flood prevention and support risk management • Protect and restore marine and costal biodiversity and ecosystems 26

27. Success factors (ex-ante conditionalities) • Research and innovation strategy for smart specialisation • Comprehensive transport plan, including railway development • National strategies for active ageing policies and for combatting poverty • Strategy for reinforcing Slovenian administrative efficiency, including a public administration reform • Effective implementation of EU acquisin sectors of waste and water management, as well as energy-efficiency and renewables • Administrative capacity for data collection for fisheries management and the implementation of a Union control, inspection and enforcement system • National multiannual plan for aquaculture • Improvement in the preparation/management of public tenders 27

28. European Territorial Cooperation • Transnational and cross-border approaches • Remove main bottlenecks in transport • Remove barriers to labour mobility • Transfer of good practices, especially in innovation, research and development or business environment • Promote climate change adaptation, risk prevention and management • EU Strategy for the Danube Region • Improve national coordination among the respective ministries in Slovenia • Stronger participation in different Priority Areas • Maritime Adriatic and Ionian Strategy • Maximize the potential of the blue economy 28

29. Negotiation process for Partnership Agreement/Contract (PA) CPR adopted October November December