Changes

==Geography==

==Geography==

Slovenia is situated at the crossroads of central Europe, the [[Mediterranean]], and the Balkans. The [[Alps]]--including the Julian Alps, the Kamnik-Savinja Alps, the Karavanke chain, and the Pohorje Massif--dominate northern Slovenia near [[Austria]]. Slovenia's [[Adriatic]] coastline extends for approximately 48 kilometers (30 mi.) from [[Italy]] to [[Croatia]]. The term "karst"--a [[limestone]] region of underground rivers, gorges, and caves--originated in Slovenia's Karst plateau between [[Ljubljana]] and the Italian border. On the Pannonian plain to the east and northeast, toward the Croatian and [[Hungary|Hungarian]] borders, the landscape is essentially flat. However, the majority of Slovenian terrain is hilly or mountainous, with around 90% of the surface 200 meters or more above [[sea level]].

Slovenia is situated at the crossroads of central Europe, the [[Mediterranean]], and the Balkans. The [[Alps]]—including the Julian Alps, the Kamnik-Savinja Alps, the Karavanke chain, and the Pohorje Massif—dominate northern Slovenia near [[Austria]]. Slovenia's [[Adriatic]] coastline extends for approximately 48 kilometers (30 mi.) from [[Italy]] to [[Croatia]]. The term "karst"—a [[limestone]] region of underground rivers, gorges, and caves—originated in Slovenia's Karst plateau between [[Ljubljana]] and the Italian border. On the Pannonian plain to the east and northeast, toward the Croatian and [[Hungary|Hungarian]] borders, the landscape is essentially flat. However, the majority of Slovenian terrain is hilly or mountainous, with around 90% of the surface 200 meters or more above [[sea level]].

==People==

==People==

==Government and Political Conditions==

==Government and Political Conditions==

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) [[United Nations Security Council|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 [[European Union]] (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]] (IMF), the [[World Bank Group]], and the [[European Bank for Reconstruction and Development]]--as well as 40 other international organizations, among them the [[World Trade Organization]] (WTO), of which it is a founding member.

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) [[United Nations Security Council|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 [[European Union]] (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]] (IMF), the [[World Bank Group]], and the [[European Bank for Reconstruction and Development]]—as well as 40 other international organizations, among them the [[World Trade Organization]] (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 a single 9-year term.

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 a single 9-year term.

Slovenia's first President, Milan Kučan, concluded his second and final term in December 2002. Prime Minister Janez Drnovšek defeated opposition candidate Barbara Brezigar in the 2002 presidential elections by a comfortable margin and was inaugurated as Kučan's successor on December 22, 2002. Finance Minister Anton Rop succeeded Drnovšek 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 Janša's center-right Slovenian Democratic Party (SDS) made a strong showing, winning a relative majority with over 29% of the vote. Janez Janša was sworn in as Prime Minister on November 9, 2004 and the National Assembly confirmed the new cabinet on December 3.

Slovenia's first President, Milan Kučan, concluded his second and final term in December 2002. Prime Minister Janez Drnovšek defeated opposition candidate Barbara Brezigar in the 2002 presidential elections by a comfortable margin and was inaugurated as Kučan's successor on December 22, 2002. Finance Minister Anton Rop succeeded Drnovšek 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 Janša's center-right Slovenian Democratic Party (SDS) made a strong showing, winning a relative majority with over 29% of the vote. Janez Janša was sworn in as Prime Minister on November 9, 2004 and the National Assembly confirmed the new cabinet on December 3.

In the 15 years since 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 southern 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. Many in this group have regularized their status or left the country; however, it is estimated that around 4000 cases remain unresolved. Slovenia willingly accepted nearly 100,000 refugees from the [[Bosnian War|fighting in Bosnia]] and has since participated in international stabilization efforts in the region.

In the 15 years since 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 southern 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. Many in this group have regularized their status or left the country; however, it is estimated that around 4000 cases remain unresolved. Slovenia willingly accepted nearly 100,000 refugees from the [[Bosnian War|fighting in Bosnia]] and has since participated in international stabilization efforts in the region.

On the international front, Slovenia has rapidly integrated 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. In 2005, Slovenia served as the [[Organization for Security and Cooperation in Europe]] (OSCE) Chairman-in-Office. 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 partner for other southeast European governments at different stages of reform and integration, and has introduced initiatives towards this goal, including the establishment of the Center for European Perspective and the Bled Strategic Forum. 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. Slovenia faces its largest challenge since independence when it will be the first of the ten 2004 EU newcomers to hold the EU's rotating presidency in January 2008.

On the international front, Slovenia has rapidly integrated 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. In 2005, Slovenia served as the [[Organization for Security and Cooperation in Europe]] (OSCE) Chairman-in-Office. 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 partner for other southeast European governments at different stages of reform and integration, and has introduced initiatives towards this goal, including the establishment of the Center for European Perspective and the Bled Strategic Forum. 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. Slovenia faces its largest challenge since independence when it will be the first of the ten 2004 EU newcomers to hold the EU's rotating presidency in January 2008.

===Principal Government Officials===

===Principal Government Officials===

*President--Borut Pahor

*President—Borut Pahor

*Prime Minister--Miro Cerar

*Prime Minister—Miro Cerar

===Foreign Relations and Regional Cooperation===

===Foreign Relations and Regional Cooperation===

*Through its International Trust Fund for Demining and Mine Victims Assistance (ITF), Slovenia has created the demining instrument of choice for the international community in Bosnia and Herzegovina, the rest of the Balkans, and now even further afield in Central Asia and Cyprus. The organization has raised over $203 million since its inception in 1998 (with the United States contributing over $92 million).  

*Through its International Trust Fund for Demining and Mine Victims Assistance (ITF), Slovenia has created the demining instrument of choice for the international community in Bosnia and Herzegovina, the rest of the Balkans, and now even further afield in Central Asia and Cyprus. The organization has raised over $203 million since its inception in 1998 (with the United States contributing over $92 million).  

*Slovenia served as Chairman-in-Office of the OSCE in 2005 and the Chairman of the International Atomic Energy Agency's Board of Governors for 2006-2007.  

*Slovenia served as Chairman-in-Office of the OSCE in 2005 and the Chairman of the International Atomic Energy Agency's Board of Governors for 2006-2007.  

*Slovenia is engaged with 29 countries in bilateral military exchange--most actively with the U.S.--and in regional cooperative arrangements in central and southeast Europe; it participates in or intends to contribute forces for five major multinational regional peacekeeping bodies.  

*Slovenia is engaged with 29 countries in bilateral military exchange—most actively with the U.S.--and in regional cooperative arrangements in central and southeast Europe; it participates in or intends to contribute forces for five major multinational regional peacekeeping bodies.  

*Slovenia participates in the Proliferation Security Initiative (PSI) to halt the [[proliferation]] of weapons of mass destruction (WMD), their delivery systems, and related materials worldwide.  

*Slovenia participates in the Proliferation Security Initiative (PSI) to halt the [[proliferation]] of weapons of mass destruction (WMD), their delivery systems, and related materials worldwide.  

*Slovenia has ratified all 13 international anti-terrorism conventions.  

*Slovenia has ratified all 13 international anti-terrorism conventions.  

==Defense==

==Defense==

====Slovenian Armed Forces====  

====Slovenian Armed Forces====

After successful resistance to the Yugoslav National Army (JNA) following the 10-day war of independence in 1991, Slovenia faced the challenge of establishing independent armed forces. The Slovene Armed Forces underwent a major reorganization from 2003 to 2005, with the goal of changing from a conscription-based territorial defense force to a professional, deployable, and combat capable military with NATO. Conscription ended earlier than expected, in October 2003, and compulsory reserve service will end by 2010. As of September 2007, Slovenia's professional force included 7,143 soldiers and 9,063 reservists. The current force structure consists of one fully professional motorized infantry brigade and two cadre/reserve force mechanized brigades. The professional brigade represents Slovenia's deployable reaction force. The Slovene Armed Forces also include a small air force, equipped with helicopters and turbo-prop fixed wing aircraft, and a naval attachment, including a coastal patrol boat. The United States provides bilateral military assistance to Slovenia, including through the International Military Education and Training (IMET) program, the Foreign Military Financing (FMF) program, the State Partnership Program (aligned with Colorado), the George C. Marshall European Center for Security Studies, the EUCOM Joint Contact Team Program, and the Regional Counterterrorism Fellowship Program (CTFP).

After successful resistance to the Yugoslav National Army (JNA) following the 10-day war of independence in 1991, Slovenia faced the challenge of establishing independent armed forces. The Slovene Armed Forces underwent a major reorganization from 2003 to 2005, with the goal of changing from a conscription-based territorial defense force to a professional, deployable, and combat capable military with NATO. Conscription ended earlier than expected, in October 2003, and compulsory reserve service will end by 2010. As of September 2007, Slovenia's professional force included 7,143 soldiers and 9,063 reservists. The current force structure consists of one fully professional motorized infantry brigade and two cadre/reserve force mechanized brigades. The professional brigade represents Slovenia's deployable reaction force. The Slovene Armed Forces also include a small air force, equipped with helicopters and turbo-prop fixed wing aircraft, and a naval attachment, including a coastal patrol boat. The United States provides bilateral military assistance to Slovenia, including through the International Military Education and Training (IMET) program, the Foreign Military Financing (FMF) program, the State Partnership Program (aligned with Colorado), the George C. Marshall European Center for Security Studies, the EUCOM Joint Contact Team Program, and the Regional Counterterrorism Fellowship Program (CTFP).

Slovenia's current international commitments show its willingness to become a co-provider of security in the region. Slovenia contributed helicopters, medical personnel, military police, and an infantry company to the NATO Stabilization Force in Bosnia and Herzegovina (SFOR) and continues to be very active in the European Union Force (EUFOR), with 54 troops deployed in Bosnia and Herzegovina (ALTHEA, EUFOR, Joint Enterprise, NATO). In Kosovo, Slovenia actively participates in the NATO Kosovo Force (KFOR) with 169 troops. In March 2004, Slovenia sent a detachment of special operations troops, along with some vehicles, to the International Security Assistance Force (ISAF) mission in Afghanistan. Today, the total number of Slovenian personnel in ISAF stands at 65. In February 2006, Slovenia sent four instructors to the NATO Training Mission in Iraq, two of which are still there. There are also 12 troops in Lebanon (UNIFIL), 2 in Syria (UNTSO), and 2 in the U.S. (CENTCOM, NATO).

Slovenia's current international commitments show its willingness to become a co-provider of security in the region. Slovenia contributed helicopters, medical personnel, military police, and an infantry company to the NATO Stabilization Force in Bosnia and Herzegovina (SFOR) and continues to be very active in the European Union Force (EUFOR), with 54 troops deployed in Bosnia and Herzegovina (ALTHEA, EUFOR, Joint Enterprise, NATO). In Kosovo, Slovenia actively participates in the NATO Kosovo Force (KFOR) with 169 troops. In March 2004, Slovenia sent a detachment of special operations troops, along with some vehicles, to the International Security Assistance Force (ISAF) mission in Afghanistan. Today, the total number of Slovenian personnel in ISAF stands at 65. In February 2006, Slovenia sent four instructors to the NATO Training Mission in Iraq, two of which are still there. There are also 12 troops in Lebanon (UNIFIL), 2 in Syria (UNTSO), and 2 in the U.S. (CENTCOM, NATO).

The Government of Slovenia has diligently pursued its restructuring, reorganization, modernization, and procurement with the paramount goal of NATO interoperability. The United States has encouraged Slovenia to maintain the pace of reform--including the establishment of closer links with regional partners--even following its attainment of full membership in NATO.

The Government of Slovenia has diligently pursued its restructuring, reorganization, modernization, and procurement with the paramount goal of NATO interoperability. The United States has encouraged Slovenia to maintain the pace of reform—including the establishment of closer links with regional partners—even following its attainment of full membership in NATO.

==Economy==

==Economy==

Slovenia's economic success clearly illustrates the benefits of embracing liberal trade, following the rule of law, and rewarding enterprise. This success, however, is not unprecedented for Slovenia. Although it comprised only about one-thirteenth of Yugoslavia's total population, it was the most productive of the Yugoslav republics, accounting for one-fifth of its GDP and one-third of its exports. The country already enjoyed a relatively prosperous economy and strong market ties to the West when it gained independence in 1991. Since independence, Slovenia has pursued diversification of its trade toward the West and integration into Western and transatlantic institutions vigorously. In so doing, it has made substantial progress in its transition to a market economy, particularly becoming party to a number of bilateral and regional free trade agreements. Slovenia is a founding member of the WTO and joined the Central European Free Trade Agreement (CEFTA) in 1996. Slovenia also participates in SECI, as well as in the Central European Initiative, the Royaumont Process, and the Black Sea Economic Council. Slovenia became a new EU member state on May 1, 2004.

Slovenia's economic success clearly illustrates the benefits of embracing liberal trade, following the rule of law, and rewarding enterprise. This success, however, is not unprecedented for Slovenia. Although it comprised only about one-thirteenth of Yugoslavia's total population, it was the most productive of the Yugoslav republics, accounting for one-fifth of its GDP and one-third of its exports. The country already enjoyed a relatively prosperous economy and strong market ties to the West when it gained independence in 1991. Since independence, Slovenia has pursued diversification of its trade toward the West and integration into Western and transatlantic institutions vigorously. In so doing, it has made substantial progress in its transition to a market economy, particularly becoming party to a number of bilateral and regional free trade agreements. Slovenia is a founding member of the WTO and joined the Central European Free Trade Agreement (CEFTA) in 1996. Slovenia also participates in SECI, as well as in the Central European Initiative, the Royaumont Process, and the Black Sea Economic Council. Slovenia became a new EU member state on May 1, 2004.

Today, Slovenia is one the best economic performers in central and eastern Europe, with a GDP per capita in PPP in 2006 at € 19,200. Slovenia benefits from a well-educated and productive work force as well as dynamic and effective political and economic institutions. Although Slovenia has taken a cautious, deliberate approach to economic management and reform, with heavy emphasis on achieving consensus before proceeding, its overall record is one of relative success.

Today, Slovenia is one the best economic performers in central and eastern Europe, with a GDP per capita in PPP in 2006 at €19,200. Slovenia benefits from a well-educated and productive work force as well as dynamic and effective political and economic institutions. Although Slovenia has taken a cautious, deliberate approach to economic management and reform, with heavy emphasis on achieving consensus before proceeding, its overall record is one of relative success.

Slovenia has enjoyed healthy growth figures for the past 8 years, averaging 4.0% annual GDP growth. The European economic slowdown reduced the pace of growth somewhat beginning in 2001. GDP grew by 5.2% in 2006. Slovenia's economy is highly dependent on foreign trade. About two-thirds of Slovenia's trade is with the EU. Additionally, the country has penetrated successfully the south and east markets, including the former Soviet Union region. This high level of openness makes Slovenia extremely sensitive to economic conditions in its main trading partners and changes in its international price competitiveness. Keeping labor costs in line with productivity is thus a key challenge for Slovenia's economic well-being. Services contributed the most to the national output in 2006, accounting for 62% of GDP. Industry and construction comprised 34.7% of GDP; and, agriculture, forestry, and fishing accounted for 2.3% of GDP.

Slovenia has enjoyed healthy growth figures for the past 8 years, averaging 4.0% annual GDP growth. The European economic slowdown reduced the pace of growth somewhat beginning in 2001. GDP grew by 5.2% in 2006. Slovenia's economy is highly dependent on foreign trade. About two-thirds of Slovenia's trade is with the EU. Additionally, the country has penetrated successfully the south and east markets, including the former Soviet Union region. This high level of openness makes Slovenia extremely sensitive to economic conditions in its main trading partners and changes in its international price competitiveness. Keeping labor costs in line with productivity is thus a key challenge for Slovenia's economic well-being. Services contributed the most to the national output in 2006, accounting for 62% of GDP. Industry and construction comprised 34.7% of GDP; and, agriculture, forestry, and fishing accounted for 2.3% of GDP.

Economic management in Slovenia is relatively good. Public finances showed modest deficit of 1.2% of GDP in 2006. The government policy is aimed toward bringing the deficit to 1% of GDP by 2009. The budget of 2006 constrains public deficit to 1.4% of GDP, well within Maastricht parameters. The current account balance has improved significantly as a result of stronger exports and a changed composition of imports by economic purpose. In 2006, the current account balance showed a deficit of € 773 million. After the adoption of the Euro, controlling inflation remains a top government priority.

Economic management in Slovenia is relatively good. Public finances showed modest deficit of 1.2% of GDP in 2006. The government policy is aimed toward bringing the deficit to 1% of GDP by 2009. The budget of 2006 constrains public deficit to 1.4% of GDP, well within Maastricht parameters. The current account balance has improved significantly as a result of stronger exports and a changed composition of imports by economic purpose. In 2006, the current account balance showed a deficit of €773 million. After the adoption of the Euro, controlling inflation remains a top government priority.

Due to its macroeconomic stability, favorable foreign debt position, and successful accession to the EU, Slovenia consistently receives the highest credit rating of all transition economies--receiving the top regional honors in a recent Dunn & Bradstreet survey. Slovenia's ability to meet its growth rate objectives will largely depend on the state of the world economy, since exports demand in Slovenia's primary market has stalled. Foreign direct investment (FDI) will take up the slack to some extent, as analysts forecast FDI levels will continue to increase with further privatization of state assets, including portions of the telecommunications, financial, and energy sectors. Slovenia must carefully address fiscal, monetary, and FDI policy, in light of the high deficit in pension accounts, its vulnerable Western export markets, and inflation concerns. Slovenian enterprises have a tradition of market orientation that has served them well in the transition period, as they moved energetically to reorient trade from former Yugoslav markets to those of central and eastern Europe. However, in many cases under the Slovenian brand of privatization, managers and workers in formerly "socially owned" enterprises have become the majority shareholders, perpetuating the practices of "worker management" that were the hallmark of the Yugoslav brand of socialism. Difficulties associated with that model are expected to decrease under competitive pressures, as shares in these firms change hands, and as EU reforms introduce more Western-oriented governance practices.

Due to its macroeconomic stability, favorable foreign debt position, and successful accession to the EU, Slovenia consistently receives the highest credit rating of all transition economies—receiving the top regional honors in a recent Dunn & Bradstreet survey. Slovenia's ability to meet its growth rate objectives will largely depend on the state of the world economy, since exports demand in Slovenia's primary market has stalled. Foreign direct investment (FDI) will take up the slack to some extent, as analysts forecast FDI levels will continue to increase with further privatization of state assets, including portions of the telecommunications, financial, and energy sectors. Slovenia must carefully address fiscal, monetary, and FDI policy, in light of the high deficit in pension accounts, its vulnerable Western export markets, and inflation concerns. Slovenian enterprises have a tradition of market orientation that has served them well in the transition period, as they moved energetically to reorient trade from former Yugoslav markets to those of central and eastern Europe. However, in many cases under the Slovenian brand of privatization, managers and workers in formerly "socially owned" enterprises have become the majority shareholders, perpetuating the practices of "worker management" that were the hallmark of the Yugoslav brand of socialism. Difficulties associated with that model are expected to decrease under competitive pressures, as shares in these firms change hands, and as EU reforms introduce more Western-oriented governance practices.

Slovenia has taken some important steps in recent years to free up its financial markets. This sector historically has been one of the most protected, reflecting Slovenian concerns over limited capacity to face global competition and a desire to maintain domestic control over finance. A combination of market forces, changes in Bank of Slovenia regulations, and national legislation are moving this sector increasingly in a more globally oriented direction. In 2003, several measures were introduced to make both portfolio and direct investments easier and more transparent in Slovenia and to conduct many financial operations, including banking, securities brokering, and undertaking various credit transactions. Most remaining barriers were removed by May 1, 2004--for instance, marketing of foreign mutual investment funds is now allowed. The banking sector also is showing signs of stirring from its relative inactivity, as pressures build to consolidate Slovenia's myriad banks and as privatization of two of the largest banks proceeds. While Belgian KBC is the main owner of Nova Ljubljanska Banka (NLB) with 34%, little progress has been made in the privatization of NKBM bank, Slovenia's largest bank, which is still 100% state owned. The government continues to downsize state shares in the insurance sector; however, the government-owned Triglav still controls nearly half of the insurance market. Other insurance companies have been privatized or are foreign-owned.

Slovenia has taken some important steps in recent years to free up its financial markets. This sector historically has been one of the most protected, reflecting Slovenian concerns over limited capacity to face global competition and a desire to maintain domestic control over finance. A combination of market forces, changes in Bank of Slovenia regulations, and national legislation are moving this sector increasingly in a more globally oriented direction. In 2003, several measures were introduced to make both portfolio and direct investments easier and more transparent in Slovenia and to conduct many financial operations, including banking, securities brokering, and undertaking various credit transactions. Most remaining barriers were removed by May 1, 2004—for instance, marketing of foreign mutual investment funds is now allowed. The banking sector also is showing signs of stirring from its relative inactivity, as pressures build to consolidate Slovenia's myriad banks and as privatization of two of the largest banks proceeds. While Belgian KBC is the main owner of Nova Ljubljanska Banka (NLB) with 34%, little progress has been made in the privatization of NKBM bank, Slovenia's largest bank, which is still 100% state owned. The government continues to downsize state shares in the insurance sector; however, the government-owned Triglav still controls nearly half of the insurance market. Other insurance companies have been privatized or are foreign-owned.

Government efforts and reforms designed to attract foreign direct investment (FDI) have proven somewhat successful--FDI is continuing to slowly grow. However, FDI fell sharply in 2003 due to a lack of any major privatization deal or foreign acquisition. Slovenia's traditional anti-inflation policy in the past relied heavily on capital inflow restrictions. Its slow privatization process favored domestic investors and prescribed long lag time on share trading, complicated by a cultural wariness of being "bought up" by foreigners. As such, Slovenia has had a number of impediments to full foreign participation in its economy. However, a number of these barriers to FDI were fully removed in 2002. As a result, expected foreign takeovers of Slovenian blue chip companies, as well as EU membership, have fueled investors' interest in the country. Acquisitions by multinational companies--KBC of Belgium's takeover of significant share of Nova Ljubljanska Banka, Swiss Novartis' takeover of Lek Pharmaceuticals, and recent interest of foreigners in national telecom--clearly demonstrate the attractiveness of the Slovenian economy, particularly to European investors seeking a platform to support expansion into southeastern Europe. U.S. investments in Slovenia have been more modest; Goodyear is the largest American investor. Even with these successes, much of the economy remains in state hands and foreign direct investment in Slovenia is one of the lowest in the EU on a per capita basis.

Government efforts and reforms designed to attract foreign direct investment (FDI) have proven somewhat successful—FDI is continuing to slowly grow. However, FDI fell sharply in 2003 due to a lack of any major privatization deal or foreign acquisition. Slovenia's traditional anti-inflation policy in the past relied heavily on capital inflow restrictions. Its slow privatization process favored domestic investors and prescribed long lag time on share trading, complicated by a cultural wariness of being "bought up" by foreigners. As such, Slovenia has had a number of impediments to full foreign participation in its economy. However, a number of these barriers to FDI were fully removed in 2002. As a result, expected foreign takeovers of Slovenian blue chip companies, as well as EU membership, have fueled investors' interest in the country. Acquisitions by multinational companies—KBC of Belgium's takeover of significant share of Nova Ljubljanska Banka, Swiss Novartis' takeover of Lek Pharmaceuticals, and recent interest of foreigners in national telecom—clearly demonstrate the attractiveness of the Slovenian economy, particularly to European investors seeking a platform to support expansion into southeastern Europe. U.S. investments in Slovenia have been more modest; Goodyear is the largest American investor. Even with these successes, much of the economy remains in state hands and foreign direct investment in Slovenia is one of the lowest in the EU on a per capita basis.

The current government's ability to follow through on pledges to accelerate privatization of a number of large state holdings and increase FDI will be key to Slovenia's economic future. In late 2005, the government's new Committee for Economic Reforms was elevated to cabinet-level status with a program including plans for lowering the tax burden, privatizing state-controlled firms, improving the flexibility of the labor market, and increasing the government's efficiency. Many of the committee members and heads have resigned due to inability to make any significant progress. Though progress has been stalled on the program, the Jansa government has pledged to move forward with the planned reforms, which also in the vast majority have not been realized thus far. Slovenia's position with respect to other central and eastern European (CEE) countries will decline without vigorous pursuit of economic reform.

The current government's ability to follow through on pledges to accelerate privatization of a number of large state holdings and increase FDI will be key to Slovenia's economic future. In late 2005, the government's new Committee for Economic Reforms was elevated to cabinet-level status with a program including plans for lowering the tax burden, privatizing state-controlled firms, improving the flexibility of the labor market, and increasing the government's efficiency. Many of the committee members and heads have resigned due to inability to make any significant progress. Though progress has been stalled on the program, the Jansa government has pledged to move forward with the planned reforms, which also in the vast majority have not been realized thus far. Slovenia's position with respect to other central and eastern European (CEE) countries will decline without vigorous pursuit of economic reform.

*GDP (2006): € 33,177 million.

*GDP (2006): €33,177 million.

*Real GDP growth rate (2006): 5.2%, (2007 est.): 4.7%.  

*Real GDP growth rate (2006): 5.2%, (2007 est.): 4.7%.  

*GDP per capita in PPP (2006): € 19,200.  

*GDP per capita in PPP (2006): €19,200.  

*Natural resources: Coal, mercury, timber.

*Natural resources: Coal, mercury, timber.

*Agriculture/forestry/fishing (approx. 2.3% of 2006 GDP): Products--wheat, corn, poultry, beef, pork, milk, potatoes, orchard fruits, wine.

*Agriculture/forestry/fishing (approx. 2.3% of 2006 GDP): Products—wheat, corn, poultry, beef, pork, milk, potatoes, orchard fruits, wine.

*Industry (approx. 34.7% of 2006 GDP): Types--electrical equipment, chemical products, textiles, food products, electricity, metal products, wood products, transportation equipment.

*Industry (approx. 34.7% of 2006 GDP): Types—electrical equipment, chemical products, textiles, food products, electricity, metal products, wood products, transportation equipment.

*Services (approx. 62.9% of 2006 GDP): Types--retail, transportation, communications, real estate and other business activities.

*Services (approx. 62.9% of 2006 GDP): Types—retail, transportation, communications, real estate and other business activities.

*Trade: Exports (2006: € 16.757 million)--machinery, transportation equipment, manufactured articles, chemical products. To U.S.--$506 million (2006). Imports (2006: €18.341 million)--machinery, transportation equipment, manufactured articles, mineral fuels and lubricants. From U.S.--$289 million (2004). Major trading partners--Germany, Italy, France, Austria, Croatia. Trade with the U.S. accounts for about 1.5% of total trade.

*Trade: Exports (2006: €16.757 million)--machinery, transportation equipment, manufactured articles, chemical products. To U.S.--$506 million (2006). Imports (2006: €18.341 million)--machinery, transportation equipment, manufactured articles, mineral fuels and lubricants. From U.S.--$289 million (2004). Major trading partners—Germany, Italy, France, Austria, Croatia. Trade with the U.S. accounts for about 1.5% of total trade.

Foreign direct investment in 2005: € 93 million (1.6% of total FDI in Slovenia).

Foreign direct investment in 2005: €93 million (1.6% of total FDI in Slovenia).

==History==

==History==

Slovenia is today a vibrant democracy, but the roots of this democracy go back deep in Slovene history. According to the 16th century French political philosopher, Jean Bodin, Slovenes practiced the unique custom of the Installation of the Dukes of Carinthia for almost 1,000 years, until the late 14th century.  

Slovenia is today a vibrant democracy, but the roots of this democracy go back deep in Slovene history. According to the 16th century French political philosopher, Jean Bodin, Slovenes practiced the unique custom of the Installation of the Dukes of Carinthia for almost 1,000 years, until the late 14th century.  

From as early as the 9th century, Slovenia had fallen under foreign rulers, including partial control by Bavarian dukes and the Republic of Venice. With the exception of Napoleon's 4-year tutelage of parts of Slovenia and Croatia--the "Illyrian Provinces"--Slovenia was part of the Habsburg Empire from the 14th century until 1918. Nevertheless, Slovenia resisted Germanizing influences and retained its unique Slavic language and culture.

From as early as the 9th century, Slovenia had fallen under foreign rulers, including partial control by Bavarian dukes and the Republic of Venice. With the exception of Napoleon's 4-year tutelage of parts of Slovenia and Croatia—the "Illyrian Provinces"—Slovenia was part of the Habsburg Empire from the 14th century until 1918. Nevertheless, Slovenia resisted Germanizing influences and retained its unique Slavic language and culture.

After the successful Catholic [[Counter Reformation]], the Catholic Church again became dominant and Protestants were left only in the Upper Mur region by 1720.

After the successful Catholic [[Counter Reformation]], the Catholic Church again became dominant and Protestants were left only in the Upper Mur region by 1720.

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==see also==

==See also==

* [[Yugoslavia]]

* [[Yugoslavia]]