by John B. Tieder, Jr., Senior Partner

I do not know what this means, but my first teaching experience was in Russia, the largest country on earth with almost unfathomable natural and human resources; the next year was Bulgaria, population 8,000,000 and a major exporter of agricultural products and electric power; this year was Slovenia, population 2,000,000 with all the economic activity 2,000,000 people can generate.  Well, the good news is that I am not aware of any former Eastern Bloc country that is smaller so I will assume that my assignments are random, not reflective of where I can do the least harm.

Although it is becoming increasingly difficult not to draw comparisons with my prior assignments, I will try to keep my comments on Slovenia.  My conclusion - Slovenia works.  The successful transition from socialism, although certainly socialism light, to a free market, does happen.

You need a map.  Slovenia is, in effect, a large valley south of Austria, north of Croatia.  It has a short western border with Italy, 20+ miles of Adriatic coastline, and an eastern border with Hungary.  Its total area is 20,275 square kilometers (a little smaller than the State of New Jersey).  It is ethnically and religiously homogenous with almost everyone speaking Slovene as a first language.  Phonetically, Slovene sounds much like Russian or Bulgarian but uses a Roman instead of a Cyrillic alphabet.  English is widely spoken, especially for those under 25, as is German.


These photos were taken 3.5 hours and 150 miles of each other

For a small sized country it is wonderfully diverse geographically.  The Adriatic coastline is pure Mediterranean with olive and citrus trees.  The northwest is Alpine with glacial lakes, steep mountains and Tyrolean architecture.  The east is rolling hills of vineyards flattening into a plain of large fields that is reminiscent of the Russian or Ukrainian steppe.  The climate, or perhaps more accurately the weather, is equally diverse.  Our diagonal trip across the country from the southwest on the Adriatic Sea to the northeast almost to the Hungarian border was on Easter Sunday.  We started on a warm, bright Mediterranean early afternoon; after an hour, it was 34° F; another hour was cloudless, crisp early Spring weather of 45°+ F; when we neared our destination of Maribor (see map) a full fledged blizzard was in progress.

Brief

Slovenia has long been a distinct place with its own  language.  The current borders are roughly consistent with a political/hereditary duchy that dates well back into the Austrian- Hungarian Empire of which it was a part until Austria-Hungary dissolved after WWI and eventually became part of Yugoslavia.

There is a curious, but understandable, ambiguity about the area’s role in WWII.  The official history emphasizes its role in the resistance to German occupation and there are many monuments to the victims of the concentration camps.  Some more skeptical observers feel this may be a convenient rewrite and that the country’s closeness to the Axis powers left it with considerable flexibility if WWII had had a different outcome.  Interesting topic for future generations of historians.

The socialists/communists took over in 1948 with the usual expropriation of private property.  Slovenia seems to have been spared, however, the bleakness of Soviet-era architecture.  Maybe it was too small or too far away from the center of power, but there were few of the decaying concrete apartment blocks which blight much of the rest of the former Yugoslavia and generally Central and Eastern Europe.

Slovenia was the first country to sever from Yugoslavia.  It declared its independence in 1991 and after a little “saber-rattling” by the Central Government, which seemed to simply give up, Slovenia became independent and Yugoslavia, of course, disappeared.  Slovenia was one of the first Eastern bloc countries to join the EU; and now is a full fledged member using the Euro although some places still show prices in the former currency.  A Slovenian is the president of the EU for 2008 (it rotates every year); and the country is quite proud of this, as evidenced by the advertising everywhere.

Perhaps because it is mostly bordered by mountains and is ethnically and religiously (Roman Catholic) homogenous, it has avoided the internal strife and resulting economic turmoil which has affected many of its neighbors.

In general, the population is prosperous and content with Slovenia’s place in the world. There is some worry expressed about immigration from some of their less stable neighbors such as Kosovo.  However, there did not appear to be a desire to emigrate among the people we met.  Indeed, Slovenia is regarded as a place with opportunities for financial success and a high quality of life.

The Infrastructure and General Living Conditions

Perhaps because Slovenia has been a member of the EU for a long time and like other small countries, e.g., Switzerland and Singapore, the country can predict and execute its needs, the infrastructure is very good, i.e., not yet Switzerland; but very close to Austria, and better than other Balkan countries.
The capital of the country is Ljubljana, a city of about 250,000 (think Salzburg, Austria).  The airport is appropriate for the city, especially since it is a destination airport; there are very few transit flights.  There are a few other airports in the Country, e.g., Maribor, but it is easier and faster to drive or take a train.  The setting of the Ljubljana Airport is fantastic; beautiful high mountains to one side.  It reminded us of some of the smaller Western U.S. airports in mountainous areas like Jackson, Wyoming or Bozeman, Montana.

The country also has a small airline, Adria Airways.  Its fleet is small jets serving Ljubljana from the bigger EU airports such as Vienna and Frankfurt.

The Slovenes complained about their road system, but from my driving experiences, they must have very high standards.  With Ljubljana as a hub, there is an east-west and north-south motorway which is excellent, but with a baffling toll collection system.  There will be a 50 km stretch with a toll booth collecting Euros 1.50 and then two toll booths in a 40 km stretch each collecting Euros 2.40.  The toll collectors were, however, very courteous and helpful. Secondary roads were also excellent.  The signage was superb; as good as it is in Germany.

Slovenia is “Green” in both senses of the word. This is reflected in the roads; billboards, instead bridges and overpasses blend with the landscape and the landscape is fantastic with fields running into mountains and forests, vineyards, fruit orchards, very little visible industry.  An interesting use of the road system is that most trucks are prohibited from using the roads on weekends.  We saw hundreds lined up one Sunday; at midnight they can start again.  It makes for good weekend driving.

Much of the electricity is from hydroelectric. The river, Drava, which flows through the city of Maribor (see page 13), is wide but with a placid flow.  This is because of the many dams in its higher reaches.  Slovenia has one nuclear plant and an expansion to include a new unit is well along in planning.  Western technology will be used.

The country is hi-tech.  Whenever I asked directions I was given an address or an intersection and told to put it in my GPS.  Cell phone coverage is virtually 100%, even in the mountains.  The only exception seemed to be WiFi which was not as prevalent as I would have expected.

Home ownership is common although I did not get a percentage.  There are also many large single family homes.  This is due in part to the restoration, starting in 1991, of property that the socialists had expropriated in 1948.  Many faculty members lived on small farms outside of Maribor.  Title in property is secure and is fully transferable.  Apparently many English and Germans are buying mountain and country homes.

A major project and a topic of considerable interest to some of the faculty members was to update the land registration from 1948 to the present.  In this regard, there was another visiting faculty member at the University of Maribor with whom I overlapped.  He was an attorney for American Title Insurance in Vermont, and had won a Fulbright and was on leave of absence from teaching property law at the University.

Regardless of whatever shortcomings the land registration system may have had, there was sufficient confidence that most houses are purchased using a mortgage.  There was an alternative method of financing which involved payments to a repayment insurance fund which I did not fully understand, and apparently this view is shared by most Slovenians since everyone I talked to said it made no economic sense.

Health care is provided by the State at no cost. Perhaps due to the changing weather from spring to blizzard, I caught a cold and tested the system.  I went to a clinic one morning – no appointment – and was seen within 15 minutes. Unfortunately, the doctor spoke no English and I spoke no Slovene.  We called in two other patients from the waiting room who translated. I wound up with three prescriptions.  Upon leaving, the receptionist asked if I had any type of insurance card.  I said I had my private insurance card from the U.S., but that I had not brought it with me assuming it would not be of use.  She replied that with a card I would not have to pay but without one she would have to charge me.  After 20 minutes of calculation, I was starting to get very nervous.  She then very reluctantly handed me a bill for Euros 4.73 (about USD 8.00).  The prescriptions, which would also have been free if I had a card were an additional Euros 15.00 (USD 24.00).  Of course the Slovenes pay for this “free” care and other benefits with an income tax rate which is approximately 60% not including VAT tax on all purchases of 15%.

In general, Slovenia was moderately expensive. We stayed in hotels when we first arrived and on weekend trips.  The Euro price was reasonable but with the exchange rate being USD 1.60 to Euro 1.00, every bill was plus 60%, for a total charge in the range of USD 225/night for a decent place, including breakfast; not outrageous, but also not a bargain.  The rental car was very expensive by any standard.  Meals were about what you would expect in smaller U.S. cities.  Gasoline and diesel fuel, although apparently the cheapest in Europe, was almost USD 8.00/gallon.

Good wine was very inexpensive, less than USD 10.00/bottle.  Maribor is a wine center, but the wine is not exported because there is only enough for domestic consumption.  As for beer, there are two breweries, Union and Lasko; in my opinion, bad and mediocre.  Fortunately, Austria, German and Dutch imports were available at a reasonable price.  Good coffee, espresso and cappuccino, are almost as readily available as in Italy, and only cost 1 Euro.

Slovenia prides itself on its water.  When I first mentioned I wanted to buy some bottled water, I was told, “Why would you buy water when you can get better water from the tap for free?” By some measure, it is the best water in Europe and, “much better than the water in Sweden.” My suggestion was to bottle and sell, “Pure Slovenian Water.” Unlike the wine, there is plenty of it and there appears to be a huge worldwide market for expensive and exotic water.

Places to Go/Things to See

The good news – there is a lot to see; the better news – you can see a lot of it in 1-2 weeks; the best news – since the country is small, not a lot of driving is required.

Start with the capital city of Ljublijana where virtually all international flights arrive.  It is a city of 250,000 located between mountains and plains.  It is intersected by the Ljubljanica river, and has an imposing castle on the highest peak; visible and offering a view for several miles in every direction; very useful in the days when all enemies approached by foot or horseback.  Ljublijana had not been significantly damaged by any of the late 19th century /early 20th century wars, including the strife that continues to affect some parts of the Balkans.  The existing buildings cover several centuries and except on the very outskirts, there is little of the dreary, square, concrete architecture which is so prevalent elsewhere in the former Eastern Bloc.  There are, as in most older cities, many interesting legends.  Our favorite from Ljublijana is the “Dragon Bridge”. Apparently, Jason and the Argonauts stopped at this location in their search for the “Golden Fleece.” Nowadays, the Dragon’s role is to wink whenever a virgin crosses his bridge.  It is, all-in-all, a beautiful city.  If there is one criticism, Ljubljana has been too well restored. The castle, for example is beautiful from a distance, but has been restored to a degree that it looks brand new; little is left of its medieval purpose and charm.

It is an early city.  Dinner after 9:00 P.M.  is difficult and walking around after 10:00 P.M. is a lonely affair.

Traveling east to the Adriatic, to the town of Piran, less than 100 kilometers, is comparable in effect to traveling from Vienna to Venice, appearance, climate, architecture, and mode of living.  It is a Mediterranean (actually Adriatic) town in all respects.  We arrived on Saturday night before Easter and decided to attend Easter service that evening.

The church was on a hill over the city, reached by a steep cobblestone path.  It was a chilly and rainy night and the church was completely dark inside but with a large bonfire out front. The priest, his retinue and the parishioners all lit candles from the fire and walked into the church.  Since the service was in Slovene, we could not understand the words, but, of course, could generally follow the Easter story.  When the priest reached the resurrection, all the lights in the church went on; it was a beautifully restored baroque church with gold gild, paintings, statutes, frescoes — without understanding a word, the Easter message hit home!

Less than 100 kilometers from Piran is Lake Bled and the national park of Triglar.  Again in effect, from Venice to an Alpine village in all respects.  The snow covered the ground; the architecture, dress and life were alpine.  It was too early in the year to hike most trails, but it has some of the best hiking in Europe – the Julian Alps.  For you travelers who collect, we collect antique animal bells in our travels.  We have Yak bells from Nepal; camel bells from Dubai; elephant bells from Thailand, etc.; all hanging in our living room.  We spent the better part of a Sunday walking around small villages near Lake Bled searching for a cow bell; even knocking on farmers’ doors until we found one at an antique shop right in Lake Bled. Lake Bled itself is Slovenia’s poster child, like Germany’s Neuschwanstein castle, and with good reason.

While Piran and Lake Bled were major stops, the country is full of medieval towns, rivers for rafting and kayaking; mountains to climb and other interesting places.  The town of Skofja Loka, a few kilometers from Ljubljana, is a medieval town which still has most of its original walls. We arrived on a snowy night and stayed in a four room, 350 year old hotel.  The host spent almost half an hour finding a restaurant that had stayed open.  Ptui (pronounced “Phtooey” - how can you not visit there?) is another medieval walled town somewhat larger than Skofja Loka.  Virtually every city or town we visited that dates back to medieval times, and most do, has a monument to the victims of the plague.  As far as human tragedy goes, the major plague (“Black Death”) of the 13th/14th century totally depopulated many cities and reduced the population of Europe by more than one third.  For perspective, that would be like losing 100,000,000 people in the United States today.

The 1300’s castle of Predjama is built into a cliff. The limestone caves of Skocjan are a UNESCO World Heritage Site and if you enjoy caves, these are spectacular! In summary, much to see, much to do


Part II — My teaching law in Slovenia and the legal environment.


The information or opinion provided in this article is the author's own and not necessarily that of Watt, Tieder, Hoffar & Fitzgerald, LLP. The author is solely responsible for the information and opinion that he or she has provided. The information contained herein does not replace seeking specific legal counsel to directly address individual client needs.
 
Watt, Tieder, Hoffar & Fitzgerald is one of the largest construction law firms in the world, with a practice that encompasses all aspects of construction contracting, claims and disputes resolution, and transactional legal services. WTHF principally represents large general contractors, design firms, and sureties throughout the country and internationally.