US embassy cable - 04LJUBLJANA818

UNCLAS LJUBLJANA 000818 
 
SIPDIS 
 
 
SENSITIVE 
 
DEPT. FOR EUR/NCE 
 
E.O. 12958: N/A 
TAGS: PREL, ELAB, PINR, PGOV, SI, GTIP 
SUBJECT: SLOVENIA COM'S FAREWELL CALL ON MINISTER OF LABOR 
 
 
Sensitive But Unclassified.  Please protect accordingly 
 
1. (SBU) Summary.  Ambassador paid a farewell call on 
Minister of Labor, Family and Social Affairs, Vlado Dimovski 
on August 30.  Dimovski, who will not run for a seat in 
Parliament and does not plan to remain in government after 
elections, was openly critical of the last two years of 
leadership under Prime Minister Anton Rop, and he repeatedly 
mentioned the need for Slovenia to become more "open" and 
"modern."  Dimovski was rightly proud of his accomplishments 
while in office, but his frustration with the over-all pace 
of reform in Slovenia was evident throughout the meeting. 
End Summary. 
 
Significant Accomplishments 
--------------------------- 
 
2. (U)  As Dimovski explained to the Ambassador, it took him 
three days before he actually got to his office after his 
appointment as Labor Minister 4 years ago.  Dimovski's was a 
baptism by fire where he went directly from his confirmation 
to the negotiating table with Slovene labor unions.  In the 
succeeding years, Dimovski was dedicated to preparing the 
Slovene work-force for entry into the EU.  Slovenia's score 
for flexibility in the work-force went from 26 to 12 
according the World Bank.  He attributes his success on that 
front and with the reform of the pension system on the 
go-slow approach Slovenia has employed for reforms across the 
board since independence 12 years ago. "Changes that are too 
fast are like a boomerang.  It is really an art to make 
changes in Slovenia." 
 
 
Political Reform Must Match Other Reforms 
----------------------------------------- 
 
3. (SBU)  Despite his advocacy of the go-slow approach on 
labor and pension reform, Dimovski was clearly frustrated by 
the lack of political reform in Slovenia.  He feels the last 
ten years of transition have been merely a reallocation of 
wealth, and that now is the time to get serious about 
creating new wealth.  In particular, Dimovski found 
unacceptable the continued high-level of involvement by the 
ruling political parties in companies and entities that 
should be privatized or at least run independently.  He 
mentioned specifically the KAD and SOD, two government run 
investment funds, which were given a 25-30 percent stake in 
every Slovene company as they were privatized.  Responding to 
the Ambassador's comment that powerful forces had a vested 
interest in the status quo, Dimovski predicted an 
institutional crisis by 2006/7 if nothing changed.  One hope, 
he said, is that this is not acceptable behavior in the EU 
and this could be the catalyst for change. 
 
 
Good Cooperation with DOL on Pension Reform 
------------------------------------------- 
 
4. (U) Dimovski was particularly pleased with U.S. Dept. of 
Labor assistance on the reform of the pension system.  He 
claimed, and we can confirm, the formerly struggling pension 
systems are now major players in the Slovenian capital 
market.  They have breathed some life into the Slovenian 
stock exchange.  Dimovski's concern now is that the pensions 
funds can (and do) move markets, they be properly regulated. 
(Note: the Ambassador explained that this type of regulation 
is in the purview of the Securities and Exchange Commission 
in the US and that we would convey Slovenia's interest in any 
available programs.  End Note.) 
 
Trafficking in Persons 
---------------------- 
 
5. (U)  In closing, the Ambassador thanked Dimovski for his 
Ministry's role in promoting Trafficking in Persons 
legislation to which Dimovski replied that it was topic that 
need continuing visibility and exposure.  His hope is that 
the agreement his ministry will sign to fund Kljuc, an NGO 
involved in trafficking issues, will aid in this effort. 
YOUNG 
 
 
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