Slovenia

Politics:

• Analysis

  Slovenia politics: New president seeks to promote unity

  Borut Pahor, the former prime minister whose centre-left ruling coalition collapsed in September 2011, was elected president for a five-year term on December 2nd, beating the incumbent, Danilo Tuerk, in the run-off contest. Mr Pahor had previously surprised many observers by winning the first round of voting with a comfortable majority, after he successfully courted many supporters of the centre-right government. The president has few powers, but Mr Pahor's supporters are hoping that his victory may help to heal some of the divisions in Slovenian society at a time when the government is taking tough measures to avoid becoming the sixth euro zone member to apply for an EU bailout.

  Mr Pahor, who at the age of 49 becomes Slovenia's youngest-ever head of state, won with a huge majority, securing 67.4% of the votes against Mr Tuerk's 32.6%. Mr Pahor's victory, in what turned into an unusual run-off between two candidates with a centre-left background, marked a remarkable turnaround in his political fortunes. A year ago, his government became the first in Slovenia's 20-year history as an independent state to have its four-year term cut short. This followed the disintegration of the ruling coalition after its defeat in a number of referendums, including those dealing with pension, taxation and labour market reforms. In the election of December 2011 Mr Pahor's Social Democrats (SD) were comprehensively beaten not only by their traditional opponents, the centre-right Slovenian Democratic Party (SDS), but also by a newly-formed centre-left party, Positive Slovenia (PS).

  In contrast to Mr Pahor's string of failures before the presidential contest, Mr Tuerk-a former diplomat with centre-left sympathies-was until recently Slovenia's most popular public figure. Although being head of state is largely a ceremonial role-with presidential powers largely limited to blocking government appointments to certain public offices-Slovenia's presidents have used their moral authority to comment on government policies. Mr Tuerk has been outspoken in his opposition to legislation enacted by Mr Jansa's government to set up a bad bank and a state holding of publicly owned companies, with a view to privatising them.

  By giving a broad backing to the government's fiscal consolidation package, Mr Pahor managed to win over many centre-right voters, in addition to retaining the support of large numbers of centre-left loyalists. The switch from the centre-right electorate to Mr Pahor became crucial after the first round of the election on November 11th, when the lacklustre candidate of the SDS finished a poor third. Mr Pahor's call for co-operation between the government and the opposition to help to pull Slovenia out of its economic and political crisis turned him into a symbol of national unity. He was also a more convincing figure than Mr Tuerk in the pre-election television debates, and had earlier conducted a populist campaign, during which he spent time working as a garbage collector, a barber and a road builder.

  Protests spread across the country

  Although Mr Pahor won a resounding victory, turnout-at just 42% of the electorate-was the lowest in a national election in Slovenia's post-independence history, indicating unease among the electorate. The general dissatisfaction with the double-dip recession, high unemployment and the government's austerity measures to bring the budget deficit under control was also highlighted by a number of street protests, which spead across the country in the second half of November. Some of the demonstrations turned violent, prompting the police in the capital, Ljubljana, on November 30th to use water cannon for the first time since Slovenia's independence.

  The protests started in Slovenia's second-largest city, Maribor, on November 12th, with demonstrations against the mayor, Franc Kangler, after speed cameras were installed in the city centre. The protests against Mr Kangler-who has been the subject of numerous allegations of corruption-escalated on November 21st, following his nomination to the National Council, the upper house of parliament. The use of tear gas by the police on that day triggered protests in many other cities. The demonstrations targeted not only the excessive use of force by the police but also wider issues, including cutbacks in social benefits and services by the state and local authorities. The rallies and marches turned into the largest wave of protests against the authorities since independence, reflecting a widespread sense of malaise in Slovenian society as the government struggles to find a way out of the economic crisis.

  Referendums delay government legislation

  The protests have come against a background of disagreement between the government and the PS over the direction of economic policy. Mr Jansa's attempts to deal with loss-making state-owned banks and companies are being held up by the PS's call for a referendum on a law, passed in October, establishing a holding that would manage all state assets and speed up privatisation. Another law enacted in October, creating a bad bank to take over the non-performing loans (NPLs) of state-owned banks, has been challenged by a referendum demand from the Trade Union of Chemical Industry Workers. The PS and the union argue that the laws would result in the hasty and non-transparent sell-off of key state-owned assets. The government has referred both referendum demands to the Constitutional Court, seeking a ruling to prevent the plebiscites on the grounds that the new laws are crucial to ensure Slovenia's fiscal stability. The Court has no deadline to agree on a ruling, which could take several months, during which the new legislation cannot enter into force.

  Mr Pahor, who suffered several referendum defeats, leading to his government's collapse, has thrown his weight behind Mr Jansa's ruling coalition, arguing against the planned referendums. However, this will not help Mr Jansa as he attempts to secure a two-thirds majority in parliament to amend the constitution in order to ban referendums on budget, defence and human rights issues. With the PS and many of Mr Pahor's former SD colleagues opposed to restricting the scope of referendums, it is highly unlikely that the government will obtain the required majority. Indeed, Mr Pahor's influence has been diminished by his estrangement from the SD, which he led for 15 years, until June 2012, when he was replaced by Igor Luksic, a former education minister, who has more pronounced left-wing views. Many SD supporters consider that Mr Pahor has adopted economic policies that are too liberal.

  In other areas Mr Pahor can offer useful support to the government. One of the first such occasions for this will be the appointment of a new central bank governor, with the mandate of the incumbent, Marko Kranjec, due to expire in June. Unlike on previous occasions, when there was a dispute between president and government, Mr Pahor is expected to opt for a candidate backed by the ruling coalition. On the broader issue of whether Mr Pahor can bring the government and opposition together, doubts remain. His record in office was marred by failure to bring about consensus. If his attempts to produce some degree of agreement among rival politicians fail, Slovenia's chances of avoiding an EU bailout will diminish further in the coming months.

  December 04, 2012

• Background

  Slovenia: Key figures

  Janez Jansa

  The leader of the centre-right Slovenian Democratic Party (SDS), Mr Jansa became prime minister for the second time in February 2012, after his party came second in the December 2011 snap election. During his first term as prime minister (2004-08), he steered Slovenia into the euro zone in 2007 and his government proved broadly competent in its handling of the EU presidency in the first half of 2008. By contrast, his pledge to reduce the state's hold on key economic assets through radical reforms went largely unfulfilled. In early 2012 Mr Jansa outmanoeuvred the winner of the snap election, Zoran Jankovic of the centre-left Positive Slovenia (PS), by forming a five-party centre-right government. However, his position would be undermined if he were found guilty of corruption in a trial, under way since September 2011, relating to the purchase of Finnish-made armoured vehicles by his previous government in 2006. If he is cleared of the charges-which he strenuously denies-Mr Jansa's relative youth (he turned 54 in September 2012) should ensure that he continues to play an influential role in Slovenian politics in the coming years.

  Danilo Tuerk

  Mr Tuerk has risen to the top of the polls in terms of personal popularity since he was elected president, with the support of the centre-left parties, in November 2007, heavily defeating Alojz Peterle, the candidate backed by the centre-right government of the time. His standing has benefited from the diplomatic skills that he honed during his time as a high-level UN official. He is running for re-election in November 2011; opinion polls indicate that he is the favourite to win in the second round, where his challenger is likely to be the previous centre-left prime minister and former SD leader, Borut Pahor. Mr Tuerk has shown no interest in party politics and is running, once again, as an independent candidate, albeit with the support of the PS. The expected second term would be Mr Tuerk's last, because presidents are limited to two mandates, and in the future he may seek an international appointment.

  Zoran Jankovic

  The popular mayor of the capital, Ljubljana, formed the PS only a few weeks before the December 2011 election, but it won the most votes in the poll. However, Mr Jankovic failed to garner sufficient support to form a ruling coalition, and he left parliament to be re-elected as the mayor of Ljubljana in March 2012. Mr Jankovic remains the leader of the opposition and has sufficient time to strengthen the PS ahead of the next election. On the other hand, his effectiveness as the leader of the opposition will be weakened by his absence from parliament and by corruption allegations involving himself and his two sons. Formerly a successful chief executive of food retailer Mercator, one of Slovenia's largest companies, Mr Jankovic, now aged 59, was elected mayor of the capital with big majorities in 2006 and 2010. These victories and his subsequent electoral successes appeared to be the rewards for his ability to manage major projects, such as the construction of a new sports stadium, despite the economic crisis. Mr Jankovic's rivalry with Mr Jansa, which is reflected in their unwillingness to agree on important decisions, presents a key obstacle to reforms.

  Borut Pahor

  Mr Pahor became prime minister at the age of 45, in November 2008, having led the SD since 1997, steering the party towards the centre ground of Slovenian politics. His term in office, which was cut short by defeat in a parliamentary vote of confidence in 2011, was punctuated by repeated failures to maintain unity within the centre-left ruling coalition and to reach an agreement with trade unions on major reforms, including pensions and labour regulation. His record was further marked by repeated defeats in referendums, leading to the collapse of his coalition. The SD was routed in the December 2011 poll-the first pre-term election in independent Slovenia-and Mr Pahor's bid to become the speaker of the new parliament was also rebuffed. Mr Pahor stepped down as SD leader in June 2012 and he is now set to be eclipsed by other politicians, unless-contrary to the indications of opinion polls-he wins the November 2012 presidential contest.

  September 27, 2012

• Structure

  Slovenia: Political structure

  Official name

  Republic of Slovenia

  Form of state

  Democratic parliamentary republic

  Legal system

  Based on the constitution of 1991

  National legislature

  The main legislative body is the National Assembly, with 90 members directly elected for a four-year term. A National Council, elected for five years with the power only to delay legislation, has 40 members: 22 representing local interests; 12 evenly divided between employers, employees and the self-employed; and six representing not-for-profit activities in areas such as education and culture

  National elections

  December 2nd 2012 (presidential); December 4th 2011 (National Assembly). Next presidential election due in 2017; next parliamentary election due in 2015

  Head of state

  President, currently Danilo Tuerk, sworn in on December 22nd 2007

  National government

  The prime minister and the government are elected by the National Assembly. The government, which was sworn in on February 10th 2012, is a five-party coalition, led by the Slovenian Democratic Party

  Main political parties

  Social Democrats (SD); Slovenian Democratic Party (SDS); For Real-New Politics (Zares); Democratic Party of Slovenian Pensioners (DeSUS); Liberal Democracy of Slovenia (LDS); Slovenian People's Party (SLS); Slovenian National Party (SNS); New Slovenia (NSi); Positive Slovenia (PS); Civic List (DL)

  Prime minister: Janez Jansa (SDS)

  Key ministers

  Agriculture & environment: Franc Bogovic (SLS)

  Defence: Ales Hojs (NSi)

  Economic Development & Technology: Radovan Zerjav (SLS)

  Education, Science, Culture & Sport: Ziga Tuerk (SDS)

  Finance: Janez Sustersic (DLGV)

  Foreign affairs: Karl Erjavec (DeSUS)

  Health: Tomaz Gantar (DeSUS)

  Infrastructure: Zvonko Cernac (SDS)

  Interior: Vinko Gorenak (SDS)

  Justice & Public Administration: Senko Plicanic (DLGV)

  Labour, family & social affairs: Andrej Vizjak (SDS)

  Without portfolio (for Slovenes abroad): Ljudmila Novak (NSi)

  Parliamentary speaker

  Gregor Virant (DLGV)

  Central bank governor

  Marko Kranjec

  December 13, 2012

• Outlook

  Slovenia: Key developments

  Outlook for 2013-17

  • Slovenia is governed by a five-party centre-right coalition-led by the Slovenian Democratic Party (SDS) of the prime minister, Janez Jansa-which emerged from a snap election in December 2011.
  • The cohesion of the ruling coalition will be tested by personality and policy differences, and resistance to reforms by the trade unions and the public.
  • Relations with Croatia may at times be difficult, as disputes stemming from the break-up of Yugoslavia await a final resolution.
  • The authorities will focus on narrowing the budget deficit and supporting economic growth. Progress on structural reforms is likely to be slow.
  • The Economist Intelligence Unit forecasts that the budget deficit, estimated at 4.4% of GDP (on the ESA 95 definition) in 2012, will shrink to within 3% of GDP in 2013, as required by the EU.
  • We forecast that real GDP will shrink by 1.4% in 2013, after an estimated contraction of 2.4% in 2012, as external and domestic demand falter. We forecast annual real GDP growth to return in 2014 as demand rebounds.
  • The current account returned to a surplus in 2012, estimated at 0.9% of GDP. We forecast that it will remain in surplus in 2013-17 as weak domestic demand constrains import growth.

  Review

  • Borut Pahor, a former prime minister whose centre-left coalition collapsed in 2011, won the presidential contest on December 2nd. Mr Pahor has said that he will support the government's fiscal consolidation measures.
  • In November the government's austerity measures and local corruption cases triggered the largest wave of protests since independence in 1991.
  • In November the government asked the Constitutional Court to dismiss opposition calls for referendums, which could delay the privatisation of state assets, endangering fiscal stability.
  • Parliament unanimously adopted a pension reform law in early December, which will relieve the long-term burden of pensions on the public finances.
  • The consolidated budget deficit in January-September shrank by 16.9% year on year, to EUR1.1bn (US$1.4bn), as the government reined in expenditure.
  • Real GDP shrank by 3.3% year on year in the third quarter as the economy returned to recession for the first time since 2009.
  • The current-account surplus amounted to EUR409m in January-September, up from EUR37m a year earlier, as imports contracted sharply.

  December 13, 2012

Economy:

• Background

  Slovenia: Country fact sheet

  Fact sheet

  Annual data	2011a	Historical averages (%)	2007-11
  Population (m)	2.1	Population growth	0.4
  GDP (US$ bn; market exchange rate)	50.3	Real GDP growth	0.7
  GDP (US$ bn; purchasing power parity)	58.3	Real domestic demand growth	0.4
  GDP per head (US$; market exchange rate)	24,491	Inflation	2.7
  GDP per head (US$; purchasing power parity)	28,344	Current-account balance (% of GDP)	-2.4
  Exchange rate US$:€ (av)	1.39	FDI inflows (% of GDP)	1.7
  a Actual.

  Download the numbers in Excel

  Background: Slovenia gained independence from Yugoslavia after a brief war in 1991. Politics was dominated by the centre-left Liberal Democracy of Slovenia (LDS) from independence until 2004, when a centre-right coalition led by the Slovenian Democratic Party (SDS) took power. Slovenia was already economically advanced by regional standards when it gained independence, so it has experienced slow growth relative to other central European economies, and has adopted a more complacent attitude towards privatisation and economic reform. The Social Democrats (SD) won the election in 2008, forming a centre-left government, which disintegrated in 2011, leading to an early election in December. The election results were inconclusive, but the SDS emerged at the head of a five-party centre-right coalition.

  Political structure: Slovenia has a bicameral parliament, but only the Drzavni zbor (National Assembly, the lower house) has legislative authority. Its 90 members are chosen in direct elections by proportional representation, with two seats reserved for the ethnic Hungarian and Italian minorities. Most government powers reside with parliament. The president, currently Borut Pahor, is elected directly by universal suffrage and is restricted to a maximum of two consecutive five-year terms. The next presidential election is due at end-2017 and the next parliamentary election is due at end-2015.

  Policy issues: Slovenia adopted the euro in January 2007. The main economic policy issues-beyond the immediate need to narrow the budget deficit and deal with the impact of the euro zone debt crisis-include privatisation and improvement of the business environment. Progress on both is made difficult by the consensus-based nature of policymaking.

  Taxation: Corporate income is taxed at a flat rate of 18% (cut from 20% in 2012). Personal income is taxed progressively, with tax brackets ranging from 16% to 41%. The social security contribution rate is 22.1% for employees and 16.1% for employers. Standard value-added tax (VAT) is levied at 20%, although a reduced rate of 8.5% is applied on certain goods and services.

  Foreign trade: Slovenia has a small, open economy, with trade in goods and services equal to around 135% of GDP. In 2011 goods exports totalled US$29.6bn and imports totalled US$31bn. The current account was in balance in 2011, having improved from a deficit of 0.6% of GDP in 2010, as export growth outperformed import growth.

  Major exports 2010	% of total	Major imports 2010	% of total
  Machinery & transport equipment	38.4	Machinery & transport equipment	29.0
  Manufactures, classified	22.0	Manufactures, classified	19.1
  Miscellaneous articles	10.7	Chemicals	13.5
  Chemicals	16.1	Manufactures, miscellaneous	9.8
  Leading markets 2011	% of total	Leading suppliers 2011	% of total
  Germany	24.0	Germany	18.5
  Italy	14.4	Italy	18.0
  Austria	9.2	Austria	11.5
  Croatia	7.6	Croatia	5.1

  Download the numbers in Excel

  Download text file (csv format)

  December 13, 2012

• Structure

  Slovenia: Economic structure

  Data and charts: Annual trends charts

  
  

  

  December 13, 2012

• Outlook

  Slovenia: Country outlook

  Slovenia: Country outlook

  FROM THE ECONOMIST INTELLIGENCE UNIT

  POLITICAL STABILITY: Slovenia has a five-party centre-right coalition government, led by Janez Jansa, following a snap election in December 2011 prompted by the defeat of the outgoing centre-left government in a confidence vote. This was the first pre-term election since Slovenia declared independence from Yugoslavia in 1991, and it came after several months of political turbulence in a country usually known for stable governments. The government's overriding aim is to avoid the fate of its predecessor, which lost several referendum votes--including one on pension reform--and was undermined by the defection of two junior partners before its defeat in the confidence vote.

  ELECTION WATCH: After the political turmoil of 2011, which resulted in the pre-term election, politics is set to remain volatile. Within a few weeks of the government's formation, the ruling coalition lost two members of parliament (MPs), who left their parties after media reports revealed their past wrongdoings. However, the weakness of a divided opposition helps to underpin the government's relative stability. Zoran Jankovic--the leader of Positive Slovenia (PS), which came first in the election--left parliament to return to his post as mayor of the capital, Ljubljana, which he won again with a large majority in the first round of a by-election in March. Mr Jankovic stays on as PS leader, but his absence from parliament is expected to diminish his party's effectiveness as an opposition force, and its ability to challenge the government and precipitate another early election.

  INTERNATIONAL RELATIONS: Slovenia's small size and consequent lack of international weight mean that it is likely to remain a small player in EU affairs. Disputes with Croatia concerning the border have eased since the Slovenian electorate's endorsement, in a referendum in June 2010, of the border arbitration agreement signed by the two countries in late 2009. In the past Mr Jansa's Slovenian Democratic Party (SDS) has suggested that it might seek to renegotiate the agreement, to secure a guarantee of Slovenia's access to the open sea, before the Slovenian parliament votes on the ratification of Croatia's EU accession treaty. More recently, the SDS has abandoned that plan. A resolution of the bilateral dispute came a step closer in mid-January 2012 with the appointment of the members of the international arbitration panel. However, relations with Croatia may remain difficult, because several other issues related to the Yugoslav succession remain unresolved. These include the financing of radioactive waste disposal from the jointly owned nuclear-power plant at Krsko in Slovenia, and a dispute about Croatian citizens' frozen accounts in Slovenia's largest bank, Nova Ljubljanska Banka (NLB). In July the disagreement over NLB prompted the Slovenian foreign minister, Karl Erjavec, to hint that Slovenia might delay the ratification of Croatia's EU membership treaty.

  POLICY TRENDS: The government is determined to rein in the budget deficit, which ballooned in 2009-11 following the deep recession of 2009. However, the goal of narrowing the deficit in 2013 to less than 3% of GDP (on the EU harmonised ESA 95 methodology) will be difficult to achieve, because the double-dip recession in 2012 is forecast to continue into 2013 (after which recovery will be more tenuous than previously assumed). Slovenia's tradition of consensus-based policymaking means that reform of labour legislation will take a considerable time. The government intends to sell large stakes in important banking, energy and telecommunications assets, frozen in recent years, and to that end parliament adopted laws in October 2012 to promote the privatisation process. However, many Slovenian policymakers, regardless of their political orientation, view foreign investors with mistrust, and this will constrain foreign direct investment (FDI) even once economic activity in the euro zone picks up modestly from 2014. Opposition from the trade unions--and from the Democratic Party of Slovenian Pensioners (DeSUS) inside the government--will limit the extent of pension reform, although changes adopted by parliament in early December 2012 will help to reduce the burden of pensions on the budget.

  ECONOMIC GROWTH: After the deep recession of 2009, the economic recovery in 2010-11 was anaemic, with real GDP growing by only 0.6% in 2011. Until early 2011 the recovery had been driven by an upturn in external demand, particularly in the EU and Balkan markets. However, this has faltered since then as the escalating euro zone crisis has undermined business confidence. Domestic demand has remained sluggish, and in 2012 household consumption has been weakened by cuts to public service wages, continuing high unemployment, and the debt-servicing requirements facing many consumers after years of high borrowing.

  INFLATION: Average inflation according to the EU's harmonised index of consumer prices (HICP) amounted to 2.1% in 2011, and the Economist Intelligence Unit estimates that it accelerated to 2.8% in 2012. Despite weak domestic demand stemming from cuts to public-sector pay and continuing high unemployment, HICP inflation has accelerated in 2012, owing to increases in excise duties and in administered utility prices. Inflation is forecast to dip to an average of 2.3% in 2013, because of lower international oil prices and weak household consumption, following cuts in social transfers. We expect that in subsequent years rising domestic demand will bring increased inflationary pressures. These will be mitigated until 2016 by largely stable international commodity prices. We forecast that annual HICP inflation will average 2.7% in 2014-17.

  EXCHANGE RATES: We estimate that the euro depreciated against the US dollar in 2012, to an average of US$1.28:EUR1, from US$1.39:EUR1 in 2011. We expect that the euro will gradually weaken against the US dollar to an average of US$1.24:EUR1 in 2015, owing to concerns about public finances in the euro area and the potential for the bloc to fragment. The US dollar should also benefit from an end to the bond-buying programme (quantitative easing) of the Federal Reserve (Fed, the US central bank) and from stronger economic growth in the US than in the euro zone. We forecast that from 2016 the euro will begin to rebound modestly against the US dollar, and will average US$1.26:EUR1 in that year as fears about public finances in the euro zone are allayed, and as the European Central Bank (ECB) and the Fed continue to raise interest rates, normalising monetary policy.

  EXTERNAL SECTOR: The current account was in balance in 2011, following a deficit of 0.6% of GDP in 2010, as the services and current transfers surpluses grew. We estimate that average weighted import demand in Slovenia's 20 main export destinations rose by only 0.9% in 2012, after increasing by 5.6% in 2011. We estimate that the current account returned to a surplus in 2012, and we forecast that it will remain in surplus in 2013-17 as exports grow faster than imports in most years and the services surplus remains robust. We forecast that the current-account surpluses will begin to decline from 2015 onwards, as a result of rising international oil and raw material prices, and increased imports stemming from higher domestic demand.

  December 10, 2012

• Forecast

  Slovenia: Country forecast summary

  Country forecast overview: Highlights

  • Slovenia is governed by a five-party centre-right coalition—led by the Slovenian Democratic Party (SDS) of the prime minister, Janez Jansa—which emerged from an early election in December 2011. The government has a comfortable majority in parliament, but is likely to be tested by personality and policy differences. The initial focus will be on pursuing fiscal consolidation and fostering economic recovery. The government will need to maintain the consensus that it has started to build over proposed changes to the pension system and the labour market to avoid its reforms being frustrated by referendums, as happened under the previous, centre-left government, in 2011.
  • The Economist Intelligence Unit estimates that Slovenia breached EU-mandated budget rules by a wide margin in 2012. Fiscal tightening should let the budget deficit return to within the 3% of GDP limit required by the EU's Stability and Growth Pact (SGP) from 2013. However, the forecast recession in 2013 and public protests against austerity measures may force the government to slow the fiscal stabilisation process, in which case Slovenia will miss the EU's deadline.
  • Slovenia will gradually adopt a more open stance towards foreign investment in the coming years. The ruling coalition will relaunch the privatisations of banks and telecommunications companies that were frozen in recent years. Slovenia will intensify economic and trade links outside the EU.
  • Real GDP is estimated to have shrunk by 2.4% in 2012, and is forecast to contract by 1.4% in 2013, before growth returns in 2014, at 1.1%. Domestic demand will contract in 2013 as businesses and households continue to hold back on investment and consumption, and will rebound only gradually thereafter. Real GDP growth is forecast to accelerate to an average of 2.1% in 2015-17, well below the annual average of 5.1% in the pre-crisis years of 2004-08. Lower international commodity prices and weak domestic demand should help to dampen annual average inflation, which will be 2.3% per year in 2013-14, before it accelerates to an annual average of 2.7% in 2015-17.
  • The current account, which was broadly in balance in 2011, is estimated to have moved into a surplus of 0.9% of GDP in 2012 as the trade deficit narrowed. We forecast that the current account will be in surplus in 2013-17 as exports rise faster on average than imports. This trend will be helped by a sizeable services surplus, and an improvement in the current transfers balance as Slovenia's ability to absorb EU funds improves. Rising international commodity prices, a pick-up in domestic demand and accelerating import growth are expected to lead to a decline in the current-account surplus from 2015 onwards.

  

  December 13, 2012

View detailed map

Country Briefing

Land area

20,273 sq km, of which 66% wooded areas, 28% agricultural areas and 3% built-up areas

Population

2.05m (January 2011 census)

Main urban centres

Population in '000 (2011)

Ljubljana (capital): 280.1

Maribor: 111.7

Kranj: 55.0

Celje: 48.6

Climate

Mediterranean on the coast, continental inland

Weather in Ljubljana (altitude 295 metres)

Hottest month: July, 21°C; coldest month: January, -1°C (average daily maximum and minimum); driest months: January and February, 75 mm average rainfall; wettest month: June, 183 mm average rainfall

Language

Slovene

Weights and measures

Metric system

Currency

The euro (€), which replaced the Slovenian tolar (SIT) on January 1st 2007 at a fixed exchange rate of SIT239.64:€1

Time

One hour ahead of GMT; two hours ahead in summer

Fiscal year

Calendar year

Public holidays

January 1st-2nd; February 8th; Easter Monday; April 13th; Ascension Day; May 1st-2nd; Whit Sunday; June 25th (National Day); August 15th; October 31st; November 1st; December 25th-26th

March 01, 2012