By www.scx.hu News Focus Freeing Taxpayers The ruling NDP cut personal income and corporate taxes in half, but the emergency law is here to stay High Times Bankers expect higher interest rates to heat up the investment climate and cool inflation Mastering Law A new law program at the American University in Cairo seeks to get students serious about law Until the Cows Come Home Consumers are still waiting for Sudanese beef to hit the market AloAchoo! The next generation of viruses has hit mobile phones Star Power The 2004 Olympics created some unlikely national icons and a powerful lineup of marketing potential Below Par The World Bank says Egypt is handicapped by the high costs to start a business and the difficulty of firing people, to name a few Corporate Bonding Orascom Telecom and Telecom Egypt have made a splash in the bond market, but rising interest rates may damper enthusiasm Unmaking Monopolies Opposition MPs say changes to a proposed anti-trust law defy the purpose of the law by protecting monopolies On Topic The Euromoney conference put an exclamation point on the liberalization efforts of the government Investment Matchmakers Egypt Invest 2004 seeks to convince foreign investors that the country has finally turned a corner ’Dish’ing it Out Satellite TV stations are set to give the state-run channels a run for their advertising revenues during Ramadan Cargo Crunch As exporters complain about skyrocketing airfreight prices, the government seems to be turning an unsympathetic ear Star Power The 2004 Olympics created some unlikely national icons and a powerful lineup of marketing potential By Khaled Habib Borut Mahnic, Slovenian ambassador to Egypt, says closer economic ties are in the offing.

By Nadine El Sayed

President Hosni Mubarak’s first official visit to the tiny Adriatic state of Slovenia in October was steeped in history.

During the trip, he visited Brdo Castle, a sprawling countryside estate in the shadow of the Alps that was once a favored getaway of Joseph Tito, the long-serving Yugoslavian president who, along with Gamal Adbel Nasser and India’s Jawaharlal Nehru, founded the Non-Aligned Movement.

The political climate today is drastically different; countries no longer need to straddle the capitalist-communist divide, and Slovenia has long-since been independent from Yugoslavia. But Mubarak’s trip was an ode to Egypt’s past ties with Central and Eastern Europe, an area now filled with rapidly growing and reforming economies. Slovenia was one of four countries he visited during a whirlwind tour of the region, where he kicked the tires on a series of economic agreements.

During his visit to Slovenia, Mubarak discussed improving relations with President Danilo Türk, with an emphasis on trade and investment, state officials said. Türk is expected to make a reciprocal visit to Cairo this month.

Simon Kitchen, an economist with investment bank EFG Hermes says the countries make natural partners, “As an emerging market economy, Egypt is [] learning from the experiences of Eastern European countries as they reform their economies.”

Slovenian Ambassador to Egypt Borut Mahnic says that the leaders planned to discuss ways to “enhance cooperation, especially in the economy.” They could also sign off on a bilateral agreement that would exempt nationals working abroad from paying income taxes in the respective partner country.

Mahnic says business delegations from both countries were expected to explore investment opportunities as well. Trade between Egypt and Slovenia was valued at 51 million (LE 416 million) in 2008 — almost 45 million (LE 367 million) of that was in the form of Slovenian imports.

“We think [trade] is modest and there is potential for expansion,” says Mahnic. Slovenia exports primarily paper, iron, wood, household appliances and medical instruments to Egypt, while importing chemical products, cotton and clothes. Recently, the two countries have discussed increasing economic ties in fields like information technology and maritime transport.

Officials have also agreed to kick-start a project whereby the Slovenia-backed International Trust Fund will work with officials in El-Alamein to clear mines left behind during World War II.

There were also several talks regarding the shipping industry. Mahnic says Slovenia’s port of Koper on the Adriatic Sea, a free-trade zone, is an ideal avenue for both markets in Europe and the Far East. The trip from Suez can take just five days, a potential boon for fruit and vegetable exporters who need to get their products to market quickly, says Mahnic.

Wedged between Italy, Austria, Hungary and Croatia, Slovenia is home to 2 million people. It is one of the wealthier countries in Eastern Europe, with a GDP of 18,220 (LE 148,500) per capita. The country joined the European Union (EU) in 2004 and growth had been steady before the onset of the global financial crisis. Its economy, which is heavily reliant on manufacturing and real estate, had shrunk more than 9% year-on-year by the end of 1Q2009 according to Slovenia’s Statistical Office, but has since shown signs of recovery.

With steady growth of its economy and inclusion in several trade agreements under the EU umbrella, analysts believe Slovenia could present opportunities for Egyptian companies. It represents one of several countries Egypt has approached regarding expansion of trade. Along with Slovenia, Mubarak also visited Croatia, Hungary and Italy in October. Local officials have also set their set their sights on South America, where they traveled last month to lay the groundwork for a preferential trade deal.  bt