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Country Report: The Republic of Slovenia
Introduction and Overview
Slovenia is a small country in southern Central Europe located at the crossroads of major
European trade and cultural routes. It is the northernmost of the Balkan states, sharing borders
Austria, Croatia, Hungary, and Italy, and the Adriatic Sea through the Gulf of Venice. A fairly
young nation-state, Slovenia succeeded in establishing its independence in 1991 from the
Socialist Federal Republic of Yugoslavia after a short 10-day war.1 Historical ties to Western
Europe, a strong economy, and a stable democracy have aided Slovenia’s transformation to a
viable modern state.2 Slovenia joined both NATO and the European Union in 2004, the euro
zone and the Schengen zone in 2007, and the Organization for Economic Cooperation and
Development in 2010. The country has seen extraordinary development and modernization over
the past two decades, but was dragged into a deep recession by the European financial crisis in
2012. Slovenia has taken significant efforts to improve its economy, and appears to be on the
path to recovery.
History
The Slovene lands were part of the Austro-Hungarian Empire until its dissolution after
World War I.3 In 1918 the Slovenes helped to form the multinational Kingdom of Serbs, Croats,
and Slovenes, which was later renamed Yugoslavia in 1929. During World War II Slovenia was
occupied by Nazi Germany and Italy, and at the end of the war in 1945 became a constituent
republic of socialist Yugoslavia. Dissatisfied with the exercise of power by the majority Serbs,
Slovenia – along with Croatia – declared independence in 1991. The Yugoslav Federal Army
and the Slovene Army engaged in a short 10-day conflict, which resulted in an EU-brokered
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ceasefire, the withdraw of Yugoslav federal troops, and recognition of national independence.4
Since independence, Slovenia acceded to both NATO and the European Union in 2004, the euro
zone and the Schengen zone in 2007, and the Organization for Economic Cooperation and
Development in 2010.
Political Considerations
The Republic of Slovenia is a parliamentary republic with a multi-party system. The
presidency is largely a ceremonial position, but carries authority in defense and foreign affairs in
addition to calling general elections and nominating the prime minister.5 The president is elected
for a five-year term in direct elections by secret ballot, and has a two-term limit.6 Borut Pahor,
the current president, was prime minister of a center-left government from 2008-2012 until being
elected to the position of president in December 2012.7 Executive and administrative authority in
Slovenia is held by the Government of Slovenia led by the prime minister, who is elected by the
National Assembly and is typically the leader of the majority party or coalition, and the Cabinet
of Ministers, who are nominated by the prime minister and elected by the National Assembly.8
Prime Minister Miro Cerar, originally a lawyer and academic, has held the position of prime
minister since August 2014.9
The legislative branch is comprised of a bicameral Parliament consisting of the 40-seat
National Council and the 90-seat National Assembly. The National Council is primarily an
advisory committee with limited legislative authority, and its composition reflects corporate
representation.10 The National Assembly holds the majority of legislative authority, and
exercises legislative, voting and monitoring functions. Compared to other bicameral systems, the
voting power of the Slovenian lower house is exercised over a wider range of issues.11 The
judicial branch consists of the Supreme Court and the Constitutional Court.12
Slovenia is considered a successful and stable democracy. Slovenia has been rated “Free”
by Freedom House as of 2016, and received a score of 1 (the best possible score) in each of the
three categories: ‘Freedom Rating’ ‘Civil Liberties,’ and ‘Political Rights.’13 Slovenia is rated
27th out of 178 countries surveyed in the 2010 Transparency International Corruption
Perceptions Index, with a score of 5.9.14
4
BBC Country Profile, Slovenia
http://www.slovenia.si/slovenia/state/the-president/
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http://www.slovenia.si/slovenia/state/the-president/
7
BBC Country Profile, Slovenia
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BBC Country Profile, Slovenia
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http://www.slovenia.si/slovenia/state/parliament-the-national-assembly/
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http://www.slovenia.si/slovenia/state/parliament-the-national-assembly/
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13
14
Freedom House, Slovenia, https://freedomhouse.org/report/freedom-world/2016/slovenia
Corruption Perceptions Index, Transparency International, http://cpi.transparency.org/cpi2011/results/
Corruption in Slovenia, while less prevalent than in its neighbors, still causes some
problems with government function, and usually concerns private-public conflicts of interest
among government officials. In the case of former prime minister Janez Janša, who in 2013 was
convicted of accepting bribes from the Finnish defense company Patria, the Constitutional Court
ruled in April 2015 that the trial had been unfair and ordered a retrial; in September, the court
announced that the statute of limitations for the case had expired. There have yet to be any
convictions in the long-running Patria case.15
Slovenia has been heavily impacted by Europe’s refugee crisis, and became a transit
country after Hungary closed its border with Croatia in October 2015.16 In October Slovenia
amended its law on defense to allow the deployment of its military to its borders in order to
prevent illegal entrance of refugees.17 In November 2015, amid concerns that Austria might close
its borders, Slovenia began building a barbed-wire fence on its border with Croatia to limit the
flow of refugees and migrants, prompting protests.18 The fence has resulted in the death of
wildlife, and has been criticized for increasing the prevalence of smuggling routes.19
A two-decade border dispute with Croatia—which concerns the delineation of the
countries’ maritime border in the Bay of Piran and parts of their common territorial border –
continues to be a lasting issue.20 Slovenia also disputes Croatia’s claim to an exclusive economic
zone in the Adriatic Sea.21
Economic Considerations
Slovenia boasts excellent infrastructure, a well-educated work force, and a strategic
location between the Balkans and Western Europe, and as such has one of the highest per capita
GDPs in Central Europe. Slovenia was the first 2004 EU-entrant to adopt the euro, which
occurred in 2007, and has experienced one of the most stable political transitions in Central and
Southeastern Europe. In March 2004, Slovenia became the first transition country to graduate
from borrower status to donor partner at the World Bank, and in 2012 Slovenia became a
member of the OECD. 22
However, the European financial crisis has posed significant challenges for the Slovene
economy. Long-delayed privatizations, particularly within Slovenia’s largely state-owned and
increasingly indebted banking sector, have fueled investor concerns since 2012 that the country
would need financial assistance from the EU and IMF. Prime Minister Cerar’s government took
15
Freedom House, Slovenia
Freedom House, Slovenia
17
Balkan Insight, http://www.balkaninsight.com/en/article/slovenian-migrant-border-fence-could-lead-toviolence-10-24-2016
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Freedom House, Slovenia
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Balkan Insight, http://www.balkaninsight.com/en/article/slovenian-migrant-border-fence-could-lead-toviolence-10-24-2016
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Freedom House, Slovenia
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22
CIA World Factbook, Slovenia section, https://www.cia.gov/library/publications/the-world-factbook/geos/si.html
CIA World Factbook, Slovenia.
office in 2014 pledging to press ahead with commitments to privatize a select group of state-run
companies, rationalize public spending, and further stabilize the banking sector.23 Since 2014,
export-led growth, fueled by growing demand in larger European markets and improved costcompetitiveness, has pushed GDP growth. The recovery has become broader-based; private
consumption growth has accelerated, boosted by an improving labor market, rising consumer
confidence, and continued low energy prices. Investment in infrastructure projects co-funded by
the EU also helped boost growth, while private investment began to show initial signs of
recovery.24
Economic Indicators
- The Gross Domestic Product in Slovenia was $44.12 billion worth in US dollars in
2016.25 This is up from $42.775 billion worth in 2015. However, this is down from the
all-time high of $55.59 billion worth in 2008.26
- GDP Per Capita in 2016 was $32,000, up from $31,300 in 2015.27
- GDP Real Growth Rate is predicted at 2.3% in 2016, the same level as in 2015.28 This is
significantly improved from -2.894% in 2012 and -8.627% in 2009.29
- Slovenia’s budget revenues amounted to $19.32 billion in 2016, and their expenditures
amounted to $20.51 billion. Their budget deficit amounted 2.7% of GDP.30
- Estimated public debt in 2016 is 81.8% of GDP. This ranks 30th among all countries and is a
slight decrease from their debt in the previous year, which was 83.7% of GDP in 2015.31
-The inflation rate in Slovenia was -0.2% in 2016, an increase from -0.7% from the previous
year.32
- Slovenian imports stand at $25.52 billion, and exports at $27.2 billion. Slovenia’s primary
trading partners were Germany, Italy, Austria, Croatia, China, Slovakia, Hungary, and France.33
Economic Structure
23
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24
European Commission, Country Report Slovenia 2016,
http://ec.europa.eu/europe2020/pdf/csr2016/cr2016_slovenia_en.pdf
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26
World Bank, Data, Slovenia, http://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=SI
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29
World Bank, Data, Slovenia
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31 CIA World Factbook, Slovenia section, https://www.cia.gov/library/publications/the-world-factbook/geos/si.html
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-Slovenia’s economy is based primarily on services, which accounted for 64.1% of their total
GDP in 2016. Industry and agriculture accounted for 33.6% and 2.3%, respectively, of total
GDP in the same year.34
-Primary industries include: metallurgy and aluminum products, smelting, electronics, trucks,
automobiles, power equipment, wood products, textiles, chemicals, and machine tools.35
- Primary agricultural produce consists of: hops, potatoes, wheat, corn, grapes, sugar beets,
sheep, cattle, and poultry.36
- In 2012 Slovenia has a rating of 23.7 on the GINI Index, a measure of income distribution in a
country. This ranked Slovenia 145th out of 145 countries analyzed – meaning Slovenian society,
as of 2012, had the lowest income inequality in the world.37
-Slovenia controls several of Europe’s major transit routes, which has been a boon to commerce
in the country.38
Demographics and General Information
Population: 1,978,029 39
Population Growth: Negative; -0.29%40
Ethnicity: Slovene 83.1%, Serb 2%, Croat 1.8%, Bosnia 1.6%, Hungarian 0.3%, Italian 0.1%
other 2.2%, unknown or unspecified 8.9%41
Religion: Catholic 57.8%, Muslim 2.4%, Orthodox 2.3%, other Christian 0.9%, unaffiliated
3.5%, other or unspecified 23%, no religion 10.1%42
Age: 0-14 years 13.4%, 15-24 years 9.58%, 25-64 years 58.12%, 65 years and over 18.95%43
Capital: Ljubljana44
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37 CIA World Factbook,.
38 CIA World Factbook,.
39""Slovenia Population." Slovenia Population 2016. Accessed June 03, 2016. http://countrymeters.info/en/Slovenia.
40
CIA World Factbook, Slovenia section, https://www.cia.gov/library/publications/the-world-factbook/geos/si.html
41 Slovenia.si Informational and Tourism site, People section, http://www.slovenia.si/en/slovenia/country/people/
42 CIA World Factbook
43 CIA World Factbook, Slovenia section, https://www.cia.gov/library/publications/the-world-factbook/geos/si.html
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Acknowledgements
Research and Data Development Provided by: Sophie Qiao and Olivia de Vesci, Research
Assistants, under the Supervision and Coordination of: Dr. Gerard J. Janco, President,
Eurasia Center/EBC