THE NEED FOR STRATEGIC ALLIANCES BETWEEN SMALLER COUNTRIES
Welcome address by President Kucan at the Portuguese Industrial Association business conference
Official visit to the Republic of Portugal

Lisbon (Portugal), 29 March 2000


Ladies and Gentlemen,

I am delighted to be greeting today’s meeting of Portuguese and Slovene business people. I see this meeting as a continuation of our joint initiative and desire for better mutual acquaintance and cooperation between Portugal and Slovenia. Especially since this involves cooperation between economies, areas of endeavour that have experienced extraordinary change, both in the global dimension and within countries and individual companies.

Economies and markets have become global, companies have had to emerge from the protective wing of national governments and are now faced with the challenge of international competition. In order to develop and succeed they are seeking out new markets and new business and strategic partners. With these partners they are entering the dynamic and highly diverse relationships that are current in modern business.

Slovene companies are also faced with this challenge. They welcome the experience of Portuguese business people, who encountered the demands of modern business somewhat earlier and have successfully adapted to the new model of the world economy, richly exploiting the possibilities offered by it.

For this reason I also see today’s meeting as a resumption and continuation of the talks and dialogue you began at an identical business conference last April in Slovenia, during the visit by Portuguese President Dr Jorge Sampaia. And now I also see it as a consolidation of your mutual trust in doing business and of interests identified in strategic links and alliances.

I would be very pleased if this conference was used particularly for an exchange of the experience that Portuguese companies have in the markets of the European Union and with the EU’s economic policy. Slovene companies also have experience, for they have long been present in European Union markets, with 70 per cent of Slovene exports going to those markets, even though Slovenia is not yet a member of the European Union. Portuguese companies have a formal framework and incentives for their high share in European markets, for Portugal has been a member of the European Union since 1 January 1986. And Portuguese companies know how to take advantage of these incentives.

I would like to stress therefore, that in Slovenia we are following closely and appreciatively the experiences Portugal has through its work and life in the European family. We value the new kinds of emphasis introduced by Portugal in establishing the special interests and position of small countries in the Union. And naturally, as a candidate country we are giving close attention to the aims of Portugal’s presidency of the Council of the European Union, especially those that are linked to the conditions for accession of new members to the EU and to the Intergovernmental Conference on Institutional Reforms, through which the EU is gearing up for the acceptance of new members and for enlargement in general.

Portugal was able successfully to leave behind the structural backwardness of a self-sufficient and closed economy, to integrate completely into Europe and to exploit the EU environment politically, spiritually and economically, which has in turn offered development and stability. It was able to harness the solidarity and support of the community to adapt successfully to the values, principles and laws of its functioning. And it invested an exceptional amount of effort in this success, for you knew, as your president has said, that no one would do your homework for you.

Slovenia is also very well aware of this in its anticipation that membership of the EU will bear plentiful fruit, as it has done for Portugal. Internationally comparable indicators show that Slovenia merits support in its accession to the European Union. In terms of purchasing power per capita it attains almost 75 per cent of the European Union average, it has stable economic growth of around four per cent, in the index of human development assessed in the United Nations development programmes it is in 28th place out of 176 countries, in terms of financial risk rating it is in group A, the commercial sector is more or less privatised, and there is a tripartite social contract in place between the representatives of the unions, employers and the government. Slovenia has drafted and published all 29 of its negotiating positions; indeed for some areas it is possible to say that negotiations are already closed, while for others we have requested exceptions or for a transition period. Yet for the moment, of all the candidate countries Slovenia has requested the least number of exceptions.

A great deal has been done so far, especially in adopting the EU acquis and in its implementation, as well as in structural reforms. Yet there is sill much to be done. We are aware that the world is spinning faster every day, and that in it no one is waiting for us. So Slovene companies are gearing up for competition at an accelerated pace, while state institutions are supporting them wherever possible so as to facilitate their entry into new markets and to help them consolidate their shares of markets already gained. For this reason every state visit is of special importance in terms of the interests of the Slovene economy and its companies, in terms of helping to create market opportunities and in seeking potential strategic alliances.

When I speak of strategic alliances, I would like to stress the need for such alliances between countries – particularly between our countries, smaller countries, which in many respects share a similar historical fate – in shaping the future for European peoples and nations, as well as for the countries of Europe and the world. The kind of future which will through cooperation go beyond the differences in economic development and social stability of societies in individual countries for the good of more rapid common growth and the development of the entire European economy, as well as for the prosperity of all European people. The kind of future which will be able on the necessary material foundation to become a true common home for all European people and their countries. A Europe that will be one of the centres of development for the coming human civilisation of the third millennium. And I have talked about such a Europe with the Portuguese President Dr Sampaia and with other distinguished Portuguese hosts.

In the desire for both these meetings of Portuguese and Slovene business people to open new prospects for greater economic cooperation, I once again greet today’s business conference. And you will make a success of it yourselves. That is, after all, what you do! On the Slovene side there are Slovene companies here that have traversed a difficult path to survive. Now they are in good shape, and they could be good partners for you.