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Slovenia enjoys excellent relations with the United States and cooperates with it actively on a number of fronts. From 1998 to 2000, Slovenia occupied a non-permanent seat on the United Nations (UN) Security Council and in that capacity distinguished itself with a constructive, creative, and consensus-oriented activism. Slovenia has been a member of the UN since May 1992 and of the Council of Europe since May 1993. Slovenia signed an association agreement with the EU in 1996 and became a full EU member state on May 1, 2004. Slovenia officially became a member of NATO on March 29, 2004. Slovenia is a member of all major international financial institutions--the International Monetary Fund, the World Bank Group, and the European Bank for Reconstruction and Development--as well as 40 other international organizations, among them the WTO, of which it is a founding member. Since the breakup of the former Yugoslavia, Slovenia has instituted a stable, multi-party, democratic political system, characterized by regular elections, a free press, and an excellent human rights record. Slovenia is a parliamentary democracy and constitutional republic. Within its government, power is shared between a directly elected president, a prime minister, and a bicameral legislature (Parliament). Parliament is composed of the 90-member National Assembly--which takes the lead on virtually all legislative issues--and the National Council, a largely advisory body composed of representatives from social, economic, professional, and local interests. The Constitutional Court has the highest power of review of legislation to ensure its consistency with Slovenia's constitution. Its nine judges are elected by the National Assembly for single 9-year terms. Slovenia's first President, Milan Kucan, concluded his second and final term in December 2002. Prime Minister Janez Drnovöek defeated opposition candidate Barbara Brezigar in the 2002 presidential elections by a comfortable margin and was inaugurated as Kucan's successor on December 22, 2002. Finance Minister Anton Rop succeeded Drnovöek as Prime Minister in December 2002, and his center-left governing coalition commanded an almost two-thirds majority in the National Assembly until October 2004. In the October 2004 election, Janez Jansaís center-right Slovenian Democratic Party (SDS) made a strong showing, winning a relative majority with over 29% of the vote. Janez Jansa was sworn in as Prime Minister on November 9, 2004 and the National Assembly confirmed the new cabinet on December 3. The government and most of the Slovenian polity share a common view of the desirability of a close association with the West, specifically of membership in both the EU and NATO. For all the apparent bitterness that divides left and right wings, there are few fundamental philosophical differences between them in the area of public policy. Slovenian society is built on consensus, which has converged on a social-democrat model. Political differences tend to have their roots in the roles that groups and individuals played during the years of communist rule and the struggle for independence. As the most prosperous republic of the former Yugoslavia, Slovenia emerged from its brief 10-day war of secession in 1991 as an independent nation for the first time in its history. Since that time, the country has made steady but cautious progress toward developing a market economy. Economic reforms introduced shortly after independence led to healthy economic growth. Despite the halting pace of reform and signs of slowing gross domestic product (GDP) growth today, Slovenes now enjoy the highest per capita income of all the transition economies of central Europe. The Slovenes have pursued internal economic restructuring with caution. The first phase of privatization (socially-owned property under the Socialist Federal Republic of Yugoslavia, or S.F.R.Y., system) is now complete. However, sales of several remaining large state holdings, planned for several years now, have yet to come to fruition. The Jansa government has said that it is committed to seeing this final stage of privatization happen under its administration. Foreign trade is very important to the Slovenian economy, with the annual volume of imports and exports exceeding 100% of GDP. Nearly two-thirds of Sloveniaís overall trade is with the EU and the vast majority of this is with Germany, Italy, Austria and France. While the service sector is the largest part of the economy as a percentage of GDP, manufacturing accounts for most employment, with machinery and other manufactured products comprising the major exports. Labor force surveys put unemployment at 6.4% (2004). Inflation has continued to decline from 5.6% in 2003 to 3.6% in 2004. Gross domestic product grew by about 4.6% in 2004 and is expected to grow at a 3.8% rate in 2005. The Slovene currency (the tolar, or SIT in abbreviated form) is stable, fully convertible, and backed by substantial reserves. In the coming years, one of Sloveniaís central economic policy goals is meeting the Maastricht criteria for adoption of the Euro as Sloveniaís currency. These criteria include three monetary and two fiscal measures. As of June 2005, Slovenia was in line to meet all of these criteria, albeit inflation is above the current EU limit. However, the inflation trend is in the right direction (lower) and barring any major, unforeseen macroeconomic issues arising, Slovenia will likely adopt the Euro in 2007. Over a decade after independence, Slovenia has made tremendous progress establishing democratic institutions, enshrining respect for human rights, establishing a market economy, and adapting its military to Western norms and standards. In contrast to its neighbors, civil tranquility and strong economic growth have marked this period. Upon achieving independence, Slovenia offered citizenship to all residents, regardless of ethnicity or origin, avoiding a sectarian trap that has caught out many central European countries. However, debate continues on how best to accommodate an estimated 18,000 undocumented non-Slovenes who were resident in Slovenia at the time of independence, but whose records were "erased" when they did not take citizenship. Slovenia willingly accepted nearly 100,000 refugees from the fighting in Bosnia and has since participated in international stabilization efforts in the region. On the international front, Slovenia has advanced rapidly toward integration into the Euro-Atlantic community of nations. With successful NATO (66% in favor) and EU (91% in favor) referenda in March 2003, Slovenia achieved upon accession in 2004 its two primary foreign policy goals--membership in the EU and NATO. Slovenia also participates in the Stability Pact and the Southeast Europe Cooperation Initiative (SECI). Slovenia is one of the focus countries for the U.S. southeast European policy aimed at reinforcing regional stability and integration. The Slovenian Government is well-positioned to be an influential role model for other southeast European governments at different stages of reform and integration. To these ends, the U.S. urges Slovenia to maintain momentum on internal economic, political, and legal reforms, while expanding their international cooperation as resources allow. U.S. and allied efforts to assist Slovenia's military restructuring and modernization efforts are ongoing. |
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