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Economic democracy has emerged in recent years as a strategy for creating a more efficient and socially responsible economy. The Slovenian government has significantly strengthened its efforts in this area by establishing a service for expanding ED among SMEs. One of the first proposed measures is a law that would provide tax incentives for transferring ownership of companies to employees, which is expected to be sent for public discussion in the 2nd half of 2023. The law is based on IED''s policy proposal and draws on best practices from the US and the UK: in 2014, the UK introduced a similar law, which allowed the creation of over 1000 employee-owned (EO) companies.
The Slovenian law would regulate and encourage an EO model known as the sloESOP, the Slovenian variety of the generic euroESOP model – a social innovation by IED whose significant potential for expanding employee ownership has been recognized even by the EC.
Recent decisions by various companies, such as Magna Steyr and Talum, to relocate production from Slovenia, are further evidence that during times of crisis, conventional businesses will prioritize their economic interests over the well-being of local communities. Therefore, particularly in light of the current inflation crisis, it is crucial that the law be passed as soon as possible, thereby contributing to anchoring ownership in local communities and aligning the interest of business with those of local citizens.
Due to the increased interest in ED, many incorrect informations about the law and ED in general have appeared in the media and public in recent months. There is a risk that these, combined with already widespread prejudices that associate EO with self-management and economic inefficiency, may turn the public and key stakeholders against the law. It is particularly worrying that false information about the sloESOP model and government plans has appeared in leading business newspapers.