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SLOVENIA
Year of EU entry 2004
Political system Republlic
Capital city Ljubljana
Total area 20,000 km2
Population 2 million
Currency Euro |
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Overview
Previously one of Yugoslavia's six constituent republics, present-day Slovenia became independent in 1991 as Yugoslavia fell apart. It is bordered by Italy, Austria, Hungary and Croatia.
Four major European geographic regions meet in Slovenia: the Alps, the Dinaric area, the Pannonian plain and the Mediterranean. The country is mountainous, and Slovenes are keen skiers and hikers. The national flag depicts the three-peaked Triglav, Slovenia's highest mountain at 2,864 metres.
The country was once part of the Austro-Hungarian empire. The capital, Ljubljana, was founded in Roman times. Its university, with more than 50,000 students, contributes to the city's busy cultural life. The main industries are car parts, chemicals, electronics, electrical appliances, metal goods, textiles and furniture.
Tourist attractions include the famous caves at Postojna with their decor of stalactites and stalagmites. Graffiti in the caves shows that the first tourists came here in 1213.
Slovenian cuisine is strongly influenced by that of its neighbours. From Austria comes Strudel and Wiener schnitzel. Italy has contributed with risotto and ravioli and Hungary with goulash. The potica is a special Slovenian cake.
Among the most famous Slovenes are the physicist Jožef Stefan, the linguist Franc Mikloaic and the architect Jože Plecnik.
Economy
With its small transition economy and population of approximately two million, Slovenia is a model of economic success and stability for its neighbours in the former Yugoslavia. The country, which joined the EU in 2004, has excellent infrastructure, a well-educated workforce, and an excellent central location. It enjoys a GDP per capita substantially higher than any of the other transitioning economies of Central Europe. In March 2004, Slovenia became the first transition country to graduate from borrower status to donor partner at the World Bank. Slovenia adopted the euro in 2007 after meeting the EU's Maastricht criteria for inflation. Despite its economic success, Slovenia faces growing challenges. Much of the economy remains in state hands and foreign direct investment (FDI) in Slovenia is one of the lowest in the EU on a per capita basis.
Taxes are relatively high, the labour market is often seen as inflexible, and legacy industries are losing sales to more competitive firms in China, India and elsewhere. The current centre-right government, elected in October 2004, has pledged to accelerate privatisation of a number of large state holdings and is interested in increasing FDI in Slovenia. In late 2005, the government's new Committee for Economic Reforms was elevated to cabinet-level status. The Committee's programme includes plans for lowering the tax burden, privatising state-controlled firms, improving the flexibility of the labour market, and increasing the government's efficiency.
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