150th regular session of the Government of the Republic of Slovenia

SLOVENIA, April 17 - The Government today adopted the proposed Individual Investment Account Act, which introduces a special type of investment account designed to make investing in capital markets easier, more transparent and more cost-effective for individuals. To encourage this form of savings, the Government proposes more favourable administrative and tax treatment for income generated through investments made via these accounts. The proposed Act is a result of constructive cooperation with the regulator (Securities Market Agency – ATVP) and market stakeholders. It is therefore expected to provide a solid foundation for diversifying household savings and strengthening the capital market. Compared to savers in other European Union countries, Slovenian savers hold an above-average share of their assets in bank deposits and a relatively small share in financial instruments. The marked dominance of bank deposits compared to more developed EU countries points to the untapped potential of other forms of savings, in particular through the capital markets.  This savings structure limits the development potential of the economy and does not allow for an optimal investment of the population's savings. In light of this, the proposed Act introduces a new form of trading account – the Individual Investment Account (IIA), designed to promote long-term savings by individuals in financial instruments. The Government also aims to diversify the population's investment opportunities, strengthen the Slovenian capital market and expand the sources of financing for the economy. The IIA is a special form of trading account that allows investment in a range of financial instruments under clearly defined conditions. It may be opened only once by an individual who is a tax resident of Slovenia. In the first year, the account holder may invest up to €20,000, and up to €5,000 in each subsequent year, or an additional €5,000 if invested in financial instruments issued by Slovenian entities. The total amount paid into the account may not exceed €150,000. The key advantages of the IIA include simplified tax accounting and payment procedures, more favourable tax treatment, greater flexibility in investment management and a focus on investor protection. Under the proposed Act, income from the IIA is classified as a new sub-category of capital income subject to a simplified method of tax calculation and payment. To encourage long-term savings, a lower tax rate of 15% is envisaged, and a full tax exemption on the first withdrawal from the IIA after 15 years, provided that no withdrawals have been made in the meantime. A withdrawal from the IIA account is also exempt from income tax if no other withdrawals have been made from the account in the preceding 15 years. As the proposed Act targets primarily retail investors, it also contains detailed provisions on the AAI contract, disclosure of costs and other relevant information for investors, and regulates the supervision of the conduct of the IIA providers. The Securities Market Agency will maintain a register of IIA providers, while the Financial Administration of the Republic of Slovenia will maintain a register of IIA holders. The introduction of IIAs represents an important supporting measure for the development of the capital market, as outlined in the Strategy for the Development of the Capital Market in Slovenia for the period 2023–2030. The Strategy was adopted by the Government in March 2023.

The proposed Freshwater Fisheries Act is an umbrella legal act regulating freshwater fisheries through the management of fishery resources in inland waters. It also includes sport fishing, the fisheries management and inspection service and other important tasks. The proposed amendments to the Act stipulate that the composition, tasks, competences, method and procedure for the selection of members of the bodies of the Fisheries Institute of Slovenia, their term-of-office and conditions for their appointment are defined in the founding charter. The proposed Act also takes into account the recommendations of the Court of Audit of the Republic of Slovenia. The amendment to this Act defines more in detail the conditions under which the Institute may also carry out other activities which constitute a commercial activity. It explicitly stipulates that the surplus of expenditure over revenue generated by commercial activities may not be covered by public service assets. Furthermore, the proposed amendment harmonises the educational qualifications required for the appointment of a fisheries inspector. As the fines in the existing Act are still defined in tolars, they have been changed to euros.

The proposed Marine Fisheries Act contains provisions harmonising the Act with EU legislation, mainly as regards fisheries control. The beginning of January 2024 saw the entry into force of the revised Fisheries Control Regulation, which introduced new provisions on serious infringements of the Common Fisheries Policy, which must be transposed into Slovenian law. The proposed Act also supplements legal bases for the implementation of provisions on the European Maritime, Fisheries and Aquaculture Fund (EMFAF). These legal bases mostly concern the establishment of a management and control system and the appointment of competent authorities involved in the EMFAF’s operation (the managing, auditing and accounting authorities). Furthermore, the proposed Act introduces legal bases for drafting a government regulation with detailed conditions regarding the manner of selection, the increase or decrease in the sample for review, the operation selection criteria, management reviews based on the risk assessment, the drafting of the National strategic plan for the development of aquaculture and the Programme implementing the EMFAF, as well as the legal basis for the collection of personal data on the owners of funding recipients in accordance with Annex XVII to Regulation 2021/1060/EU. The proposed Act also requires the competent ministry to carry out ex officio an annual review of the conditions for granting a fishing licence conditions. If it determines that the conditions are no longer met, the ministry revokes the fishing licence and removes the vessel from the register of fishing vessels. A fine in the amount higher than the prescribed minimum fine may be imposed for minor offences in expedited proceedings. In accordance with the EU Pilot requirements and EU legislation on the Common Fisheries Policy, including the revised Fisheries Control Regulation, the Act introduces the possibility of imposing a fine calculated as a multiple of the value of fishery products obtained through serious infringements. This represents an exception to the Act regulating minor offences. A new provision stipulates that a fishing vessel will be removed from the register of fishing vessels through a special procedure if it does not hold a valid navigational licence.

The Decree on the method of providing the obligatory public utility service of incinerating municipal waste regulates the incineration of combustible municipal waste that is currently sent abroad due to insufficient domestic capacities. Dependence on foreign incineration plants in recent years has led to increasingly overburdened temporary storage systems and associated environmental and hygiene risks. Furthermore, the transport of waste abroad also has a negative environmental impact. The proposed decree also provides for the scope of services, the pricing methodology, the conditions for the selection of concession operators and the transitional period until appropriate capacities are reached. The obligatory public utility service will only cover the incineration of the non-recyclable residues of mixed municipal waste from pre-treatment in the total annual volume of 140,000 tonnes. The facilities’ total maximum capacity will be limited to 220,000 tonnes per year. The decree also enables the provision of special services – the incineration of other types of waste generated in Slovenia that are not included in an obligatory public utility service – provided that they are carried out on the same infrastructure and with the approval of the concession provider. In addition to costs, the pricing methodology will also take into account the turnover of sales for heating, electricity and special services, enabling a more rational performance of the public utility service. In the transitional period until appropriate domestic capacities are reached, energy recovery will continue to be carried out in Slovenia or abroad according to the R1 procedure, with the simultaneous operation of a temporary system of collection of such waste based on a public tender. The proposed decree pursues the state’s strategic goal of reducing dependence on foreign capacities and ensuring long-term self-sufficiency in waste management. At the same time, it is an important step towards greater transparency and responsibility in decision-making on the siting of facilities for energy recovery from waste, as the selection of providers will depend, among other things, on the population density, meteorological conditions and environmental characteristics of a given location.

At today’s session, the Government approved the wording of the Agreement on the Implementation of Programmes and Tasks under the Capital City of the Republic of Slovenia Act for the 2025–2027 Period, with an enclosed list of programmes and tasks as its integral part. The Government also adopted a resolution requiring ministries to carry out the necessary activities for the realisation of the relevant programmes and tasks and report their findings to the Ministry of Public Administration by 30 June each year. A signing ceremony will be held shortly, where the agreement will be signed by the Prime Minister and the Mayor of the Municipality of Ljubljana. In accordance with the Capital City of the Republic of Slovenia Act, the agreement signed by the Prime Minister and the Mayor of Ljubljana stipulates the tasks of the capital and the state authorities in the implementation of programmes and tasks essential both to the development of the capital and the development of state institutions in the following years, and other mutual rights and obligations. Financial obligations are borne by each party according to their respective powers and adopted budgets, and the agreement provides the timeline and details for programmes and tasks that are relevant for both parties. The agreement covers the programmes and tasks agreed upon by both parties. The current agreement concluded for the 2025–2027 period contains 56 programmes and tasks falling under the responsibility of 14 ministries, the Government Secretariat-General and the Municipality of Ljubljana. These mostly concern long-term, challenging and long-lasting programmes and tasks that can be carried out over a longer period of time. The signatories to the agreement each bear their respective costs of the implementation of programmes and tasks.