At a recent event, which was attended by many representative economic associations and the Commission for the Prevention of Corruption (KPK), Marko Lotrič, President of the Association of Employers in Crafts and Small Business of Slovenia (ZDOPS), highlighted the problem of over-regulation, which he sees as a consequence of the lack of trust between the public and private sectors in Slovenia. In his view, although the regulations are good, they are not applied consistently in practice, which leads to abuse and corruption.
Marko Lotrič, who is also the President of the National Council of the Republic of Slovenia, said in his speech that we need to restore trust in fair practices. “Over-regulation is the result of mistrust between the public and the private sector. Regulations are good, but everything breaks down in practice,” he said. Mariča Lah, President of the Slovenian Chamber of Commerce (TZS), also pointed out that over-regulation creates uncertainty through constant partial interventions in legislation, without ensuring proper oversight. Meanwhile, the President of the Slovenian Chamber of Commerce and Industry (OZS), Blaž Cvar, called for de-bureaucratisation, as bureaucracy is a major source of corruption. He cited the German programme as an example.
Marko Lotrič also stressed that zero tolerance for corruption should be the standard for all. “We need to restore trust in systems and people. Most international indicators already show a deterioration of our economy, which is also crippled by over-regulation, increasing state budgets and the absence of institutional and individual accountability.”
What is the government waiting for?
Five business associations, including the Chamber of Commerce and Industry of Slovenia (GZS), the Chamber of Commerce of Slovenia (TZS), the Association of Employers of Slovenia (ZDS), the Chamber of Craft and Small Business of Slovenia (OZS) and the Association of Employers in Crafts and Small Business of Slovenia (ZDOPS), together with the Commission for the Prevention of Corruption (KPK), have called on the state to take action. They say that we urgently need systemic steps to be taken simultaneously in different areas: the early adoption of a new Resolution on the Prevention of Corruption in the Republic of Slovenia, better legislation, unified and coordinated supervision of its implementation, leading by example, encouraging both the public sector and business to respect the highest ethical standards, tax and administrative relief, etc.
The interlocutors are thus striving for fair dealings with the state and expect the state, first and foremost, to do the same. In this context, it is essential to improve and speed up investigative and judicial procedures for corruption offences, to introduce mechanisms for greater transparency in public and local (self-)government, public procurement and political party financing, to establish clear guidelines for ethical business and governance (e.g. codes), and to educate and raise awareness about the harmful consequences of corruption.
Critical of the high wage burden
The President of the Slovenian Chamber of Commerce and Industry, Tibor Šimonka, was critical of the high wage burden in Slovenia, arguing that it is also the reason for the grey economy. “The grey economy creates a certain pool of funds that is uncontrolled, and it is probably clear to everyone that uncontrolled pools of funds again create the possibility for them to finance corrupt acts within the public sector,” he warned. Corruption is “more or less only possible where the state or the public sector is either the client or the investor.”
Critical of the extensive bureaucracy
“Large-scale bureaucracy and corruption are closely linked. The complexity and lack of clarity of procedures, slow decision-making, poor feedback from the competent authorities, a punitive supervisory policy instead of an advisory one or, on the other hand, a lack of adequate supervision, etc., create conditions where the risk of corruption is significantly higher than it would be in a less bureaucratic country,” agreed Blaž Cvar, President of the Slovenian Chamber of Commerce and Industry.
Slovenia needs systemic steps in several areas
The participants stressed that Slovenia needs systemic steps in several areas at the same time: early adoption of a new resolution on the prevention of corruption, better legislation, unified and coordinated monitoring of its implementation, leadership by example, encouraging both the public sector and the economy to respect the highest ethical standards, tax and administrative relief, etc.
They are committed to doing fair business with the state, and expect the state, first and foremost, to do the same. In this context, it is essential to improve and speed up investigative and judicial procedures for corruption offences, to introduce mechanisms for greater transparency in public and local (self-)government, public procurement and political party financing, to establish clear guidelines for ethical business and governance, and to educate and raise awareness about the harmful consequences of corruption.
A.G.
