PROFILE

OFFICIAL NAME:
Republic of Slovenia

Geography
Area: 20,273 square kilometers (7,906 sq. mi.) slightly smaller than New Jersey.
Cities: Capital--Ljubljana (2002 census pop. 265,881). Other cities--Maribor (110,668), Kranj (51,225), Celje (48,081), Koper (47,539).
Terrain: Mountains rising to more than 2,500 meters (8,200 ft.) in the north, wide plateaus over 1,000 meters (3,280 ft.) high in the southeast, Karst limestone region of caves in the south-southwest, hills in the east, and approximately 50 kilometers (39 mi.) of coastline on the Adriatic Sea.
Land use: 54.2% forests, 39% agricultural land, 6.8% noncultivated land.
Climate: Temperate, with regional variations. Average temperature in the mountain region in January is below 0°C (32°F), in the interior from 0°C -2°C (32°F-36°F), and along the coast from 2°C -4°C (36°F-39°F); in July, average temperature in the interior is 20°C -22°C (68°F-72°F), along the coast 22°C -24°C (72°F-75°F). Average annual rainfall is from 800 mm (31 in.) in the east to 3,000 mm (117 in.) in the northwest.

People
Nationality: Noun--Slovene(s). Adjective--Slovenian.
Population (2002 census): 1,987,971. Annual growth rate: (2003 est.) 0.14%.
Ethnic groups (2002 census): Slovenes 83.06%, Croats 1.81%, Serbs 1.98%, Bosniaks 1.10%, Hungarians 0.32%, Montenegrins 0.14%, Macedonians 0.20%, Albanians 0.31%, Italians 0.11%, Roma 0.17%.
Religions (2002 census): Roman Catholic 57.8%, refused to reply 15.7%, atheist 10.1%, Orthodox Christian 2.3%, Muslim 2.4%.
Languages: The official language is Slovene. Hungarian and Italian are spoken in the border regions, and German fluency is common near the Austrian border. Bosnian, Croatian, and Serbian are spoken by a sizable (6% of the population) minority. English is widely understood by business people and students.
Education: Higher education enrollment ratio--26.2%.
Health: Infant mortality rate--4.42/1,000 births. Life expectancy--71.65 years for men, 79.58 years for women, 75.51 for the total population.
Work force (2003 est.): 876,100.

Government
Type: Parliamentary democracy.
Independence: On June 25, 1991, the Republic of Slovenia declared independence from Yugoslavia. The United States and the European Union recognized Slovenia in 1992.
Constitution: Adopted on December 23, 1991.
Branches: Executive--president, head of state, directly elected for a maximum of two consecutive 5-year terms. Legislative--bicameral legislature (Parliament is composed of the National Assembly, with 90 deputies directly elected on party basis for 4-year terms, and the National Council, with 40 members elected by the National Assembly to represent social, economic, professional, and local interests for 5-year terms); prime minister, head of government, nominated by the president and elected by the National Assembly. Judicial--Constitutional Court, regular courts, and a public prosecutor.
Political parties: National Assembly seats--Slovenian Democratic Party (SDS), 29 seats; Liberal Democracy of Slovenia (LDS), 23; United List of Social Democrats (ZLSD), 10; New Slovenia - Christian People’s Party (NSi), 9; Slovene People’s Party (SLS), 7; Slovene National Party (SNS), 6; Democratic Party of Slovenian Pensioners (DeSUS), 4; Italian minority, 1; Hungarian minority, 1.
Suffrage: Universal over 18 years of age; permanent residents may vote in local elections.
Administrative divisions: 193 local administrative units.
Government budget: 1.65 trillion SIT (about EUR 6.9 billion or $8.56 billion) (2004); 1.77 trillion SIT (about EUR 7.4 billion or $9.2 billion) (2005); defense, 1.64% GDP (2004).

Economy
GDP (2004): U.S. $32.2 billion.
Real GDP growth rate (2005 est.): 3.8%.
GDP per capita income (2004): U.S. $16,112, which is approximately 75% of the EU-15 average.
Natural resources: Coal, mercury, timber.
Agriculture/forestry/fishing (approx. 3% of 2004 GDP): Products--wheat, corn, pork, poultry, milk, potatoes, orchard fruits, wine.
Industry (approx. 36% of 2004 GDP): Types--electrical equipment, chemical products, textiles, food products, electricity, metal products, wood products, transportation equipment.
Services (approx. 60% of 2004 GDP): Types--retail, transportation, communications, real estate and other business activities.
Trade: Exports (2004, total U.S. $15.546 billion)--machinery, transportation equipment, electrical and optical equipment, basic metals and fabricated products. To U.S.--$619 million (2004). Imports (2004, U.S. $17 billion)--machinery, transportation equipment, electrical and optical equipment, basic metals and fabricated products. From U.S.--$289 million (2004). Major trading partners--Germany, Italy, France, Austria, Croatia. Trade with the U.S. accounts for less than 3% of total trade.
Foreign direct investment: U.S. $6.5 billion (total stock estimate, end 2004).

GEOGRAPHY AND PEOPLE
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 50 kilometers (39 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 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.

The majority of Slovenia's population is Slovene (over 83%). Hungarians and Italians have the status of indigenous minorities under the Slovenian constitution, which guarantees them seats in the National Assembly. Most other minority groups, particularly those from the former Yugoslavia, immigrated after World War II for economic reasons. Slovenes are predominantly Roman Catholic, though the country also has a small number of Protestants, Orthodox Christians, Muslims, and Jews. Slovene is a Slavic language, written in the Roman script.

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. According to some scholars, Bodin's account of how Slovene farmers contractually consented to be governed by the Duke influenced Thomas Jefferson's drafting of the Declaration of Independence. 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.

In 1918, Slovenia joined with other southern Slav states in forming the Kingdom of Serbs, Croats, and Slovenes as part of the peace plan at the end of World War I. Renamed in 1929 under a Serbian monarch, the Kingdom of Yugoslavia fell to the Axis powers during World War II. Following communist partisan resistance to German, Hungarian, and Italian occupation and elimination of rival resistance groups, socialist Yugoslavia was born under the helm of Josip Broz Tito. During the communist era, Slovenia became Yugoslavia's most prosperous republic, at the forefront of Yugoslavia's unique version of communism. Within a few years of Tito's death in 1980, Belgrade initiated plans to further concentrate political and economic power in its hands. Defying the politicians in Belgrade, Slovenia underwent a flowering of democracy and an opening of its society in cultural, civic, and economic realms to a degree almost unprecedented in the communist world. In September 1989, the General Assembly of the Yugoslav Republic of Slovenia adopted an amendment to its constitution asserting Slovenia's right to secede from Yugoslavia. On December 23, 1990, 88% of Slovenia's population voted for independence in a referendum, and on June 25, 1990, the Republic of Slovenia declared its independence. A nearly bloodless 10-day war with Yugoslavia followed. Yugoslav forces withdrew after Slovenia demonstrated stiff resistance to Belgrade.

As a young independent republic, Slovenia pursued economic stabilization and further political openness, while emphasizing its Western outlook and central European heritage. Reflecting its success in these goals, Slovenia became a member both of the North Atlantic Treaty Organization (NATO) and the European Union (EU) in March and May, respectively, of 2004. As the Organization for Security and Cooperation in Europe (OSCE) Chairman-in-Office, a continuing participant in the SFOR/EUFOR deployment in Bosnia and the KFOR deployment in Kosovo, one of the top foreign investors in the former Yugoslavia, and a charter World Trade Organization (WTO) member, Slovenia enjoys a growing regional profile and plays a role on the world stage quite out of proportion to its small size.

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) 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 Drnovšek 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 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 Jansa’s 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 Slovenia’s 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 Slovenia’s central economic policy goals is meeting the Maastricht criteria for adoption of the Euro as Slovenia’s 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.

Principal Government Officials
President--Janez Drnovšek
Prime Minister--Janez Jansa
Ambassador to the United States--Samuel Zbogar

Cabinet Ministers
Agriculture, Forestry, and Food--Marija Lukacic
Culture--Vasco Simoniti
Defense--Karl Erjavec
Economy--Andrej Vizjak
Education and Sport--Milan Zver
Environment and Spatial Planning--Janez Podobnik
Finance--Andrej Bajuk
Foreign Affairs--Dimitrij Rupel
Health--Andrej Brucan
Higher Education and Technology--Jurij Zupan
Interior--Dragutin Mate
Justice--Lovro Sturm
Labor, Family and Social Affairs--Janez Drobnic
Public Administration--Gregor Virant
Transport--Janez Bozic
Minister without Portfolio responsible for Regional Development--(open)

Slovenia maintains an embassy in the United States at 1525 New Hampshire Avenue, NW, Washington, DC 20036 (tel.: (202) 667-5363; fax: (202) 667-4563).

ECONOMY
Slovenia enjoys prosperity and stability that are too often the exception in central and eastern Europe. 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 2004 estimated at U.S. $16,112--slightly more than 75% of the EU-15 average. 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 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 about 4.6% in 2004, and 3.8% growth is forecast for 2005. Slovenia's economy is highly dependent on foreign trade. About two-thirds of Slovenia's trade is with the EU, a figure which will likely rise following its 2004 accession. Additionally, the country has penetrated successfully the south and east European 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 contribute the most to the national output, accounting for more than 60% of GDP. Industry and construction comprise over one-third of GDP; and, agriculture, forestry, and fishing account for nearly 3% of GDP.

Economic management in Slovenia is relatively good. Public finances showed modest deficits on the order of 1.5% of GDP in 2003. The budgets for 2004 and 2005 constrain public deficit to 1.7% 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 2003, the current account balance showed a surplus for the second year in a row. Based on 11-month data the surplus is estimated at U.S.$110 million. Controlling inflation remains a top government priority. While the authorities have been successful in stabilizing the Slovenian Tolar and in bringing inflation down from more than 200% in 1992 to 7.5% in 2002, the end 2004 rate of 3.6% supports the government’s plan for meeting Maastricht criteria in two years.

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 communism. 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's entry into the European Union provides the impetus for further economic improvements. Economic policy is geared largely toward EU integration. The government continues to focus on adopting EU rules on the internal market, structural economic reform, reform of the judiciary and public administration, and introduction of E-administration. Harmonization with EU laws and regulations will remain a major challenge to the government in the near future. Slovenia's position with respect to other central and eastern European (CEE) countries will decline without further vigorous reforms.

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 allowed as of May 1, 2004. The banking sector also is showing signs of stirring from its relative inactivity, as pressures build to consolidate Slovenia's myriad banks build 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. 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 successful--FDI almost tripled from 2001 to 2002, accounting for nearly 6.5% of GDP. 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. Recent acquisitions by multinational companies--KBC of Belgium's takeover of Nova Ljubljanska Banka, and Swiss Novartis' takeover of Lek Pharmaceuticals--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 and Western Wireless International being the two largest American investors. Removal of administrative barriers, further liberalization of the financial sector, completion of privatization, and progress on company restructuring are necessary to improve economic performance at the macro and micro levels. Without these measures, employment and FDI figures may not reach their full capacity.

DEFENSE

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. A major reorganization of the Slovene Armed Forces is currently underway, 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 August 2004, Slovenia’s professional force included 6,800 soldiers and nearly 14,000 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, and the EUCOM Joint Contact Team Program

NATO
After receiving an invitation to join NATO at the NATO Prague Summit in November 2002, Slovenes approved NATO accession with a vote of 66% in a March 2003 referendum. The National Assembly ratified accession to the North Atlantic Treaty in February 2004, and Slovenia officially became a member of the Alliance on March 29, 2004. After gaining independence, Slovenia avidly sought NATO membership as part of its overall strategy of integration into the most important international economic, financial, and security organizations. Slovenia's current international commitments show Slovenia's willingness to become a co-provider of security in the region. Slovenia contributed helicopters, medical personnel, military police, and an infantry company to SFOR and continues to be very active in EUFOR with 210 troops deployed in Bosnia and Herzegovina. In Kosovo, Slovenia actively participates in KFOR with 34 troops. In March 2004, Slovenia sent a detachment of special operations troops, along with some vehicles, to the ISAF mission in Afghanistan. A second rotation was sent in August 2004, followed by two firefighters to guard the Kabul Airport in September 2004. In July 2005, an additional 29 troops were deployed to the ISAF mission in Herat, bringing the total number of Slovenian personnel in ISAF to 60.

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.

FOREIGN RELATIONS AND REGIONAL COOPERATION
In regular public statements, Slovenia's highest politicians underscore their government's commitment to expanding cooperative arrangements with neighbors and active contributions to international efforts aimed at bringing stability to southeast Europe. Resource limitations are a concern for the government, which does not wish to see itself spread too thin. Nonetheless, the Slovenes are taking concrete steps toward a more outward looking and constructive role in regional security arrangements, as resources allow.

Multilateral

• Slovenia assumed its duties as Chairman-in-Office of the OSCE in January 2005. Slovenia is a member of the OSCE Troika along with Bulgaria and Belgium, which will fill the CiO slot in 2006.

   

• 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 United States has contributed over $82 million to the ITF since 1998.

   

• 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 has ratified all thirteen international anti-terrorism conventions.

   

• Slovenia is party to the Wassenaar arrangement controlling exports of weapons and sensitive technology to countries of concern.
   
• With Hungary and Italy, Slovenia formed a Multinational Land Force (Trilateral Brigade) in April 1998 with regional peacekeeping ability. Further nonmilitary cooperation within the Trilateral Brigade occurs in the fields of transportation infrastructure, combating money laundering and organized crime, weapons of mass destruction (WMD) non-proliferation, border controls, and environmental protection. In 2001, Croatia was invited to join what then became the Quadrilateral Brigade.

   

• Slovenia's 10th motorized infantry battalion, established in 1996 as its primary "out-of-country" operation unit, is fully operational; one company was deployed to SFOR (now EUFOR) in January 2003.

   

• Slovenia is an active participant in Southeast European Defense Ministerial (SEDM) activities.

Contributions to Bosnian Stability

• Slovenia has been engaged in both the SFOR and EUFOR missions, providing VIP support helicopter and light transport aircraft missions and use of an airbase in southern Slovenia.

   

• Slovenia currently has a total of 210 personnel in Bosnia and Herzegovina, including a platoon of military police (up to 48) for the Italian-led Multinational Specialized Unit (MSU) in Sarajevo which has been deployed since January 1999.

   

• Slovenia contributes to mine action programs in Bosnia and Herzegovina through the ITF.

Relations With Neighbors
Slovenia's bilateral relations with its neighbors are generally harmonious and cooperative. However, there remain a few unresolved disputes with Croatia related to the succession of the former Yugoslavia, including demarcation of their common border. In addition, unlike the other successor states of the former Yugoslavia, Slovenia did not normalize relations with Serbia and Montenegro until after the passing from power of Slobodan Milosevic (although the Slovenes did open a representative office in Podgorica to work with Montenegrin President Djukanovic's government).

With its entry into the European Union, Slovenia has become a strong advocate for the inclusion of other former Yugoslav republics into Euro-Atlantic institutions. Slovenia's strong political ties to the region are complemented by strong economic ties. Slovenia is among the largest foreign investors in the region.

Italy. Italian-Slovene bilateral relations are also very good. By mid-1996, property restitution disputes derived from World War II had been set aside, allowing a dramatic improvement in relations. In 2001, the Italian Senate voted final approval of legislation resolving some minor differences remaining over minority rights issues and over the compensation for property abandoned by Italian refugees fleeing communist Yugoslavia in the postwar period.

Hungary. Relations are excellent with Hungary. Hungarian (as well as Italian) minorities in Slovenia are accorded special treatment under the Slovenian constitution, including a permanent parliamentary seat. Within the Multilateral Cooperation Initiative between Slovenia, Italy, Hungary, and Croatia, cooperation exists in numerous fields, including military (Multinational Land Force peacekeeping brigade), transportation, combating money laundering and organized crime, non-proliferation, border crossings, and environmental issues.

Austria. Austro-Slovenian relations are close. Although some disagreements over support for the other country's minorities continue to flare up, they are usually handled diplomatically and in a straightforward manner. Questions regarding nuclear power in Slovenia and the basis for the settlement of the Austrian State Treaty also appear to have been solved. Economic cooperation is expanding, including a joint project for development of border regions.

Croatia. Though somewhat rocky at times, Croatian-Slovenian relations are solid. Outstanding issues include a few remaining border disputes, property rights, and Croatian depositors' savings in the Ljubljanska Banka from Yugoslav times. In 2003, Croatia declared its intention to claim a 200-mile exclusive economic zone in the Adriatic Sea, which would effectively cut off Slovenia’s use of international waters. Multilateral discussions among Slovenia, Croatia, and Italy on this issue continue with European Commission participation. In a series of high-level meetings since the latter half of 1998, Slovenia and Croatia have been engaged in settling bilateral differences, a process which accelerated after the death of Croatian President Franjo Tudjman in 1999 and has intensified under the government of Prime Minister Janez Jansa elected in October 2004. In order to aid the stabilization of this part of Europe, Slovenia has supported Croatia's efforts to draw closer to European institutions.

Slovenia and Croatia most recently made an effort to improve relations during a joint government session on June 10, 2005 where three bilateral agreements were signed: Joint Statement on Avoiding of Conflicts, Bilateral Agreement on Avoiding Double Taxation, and an establishment of a joint Historical Commission for the border issue.

U.S.-SLOVENIAN RELATIONS
Since Slovenia achieved its independence in 1991 the United States and Slovenia have developed strong, cooperative relations on a broad range of issues, from promoting regional security to developing closer bilateral trade and investment ties. The U.S. was very supportive of Slovenia's entrance into NATO and other Euro-Atlantic agreements and institutions.

The first official U.S. presence in Slovenia dates from the early 1970s, when the United States Information Service (USIS) opened a library and American press and cultural center in Ljubljana. From its opening through 1992, the American Center worked to develop closer grassroots relations between the United States and the people of the then-Slovenian Republic of Yugoslavia.

On December 23, 1990, the Slovene people voted in a plebiscite to separate from greater Yugoslavia. On June 25, 1991, the new Republic of Slovenia officially declared its independence from the Federal Republic of Yugoslavia. A 10-day war commenced, during which Slovenian territorial troops fought off incursions by the Yugoslav National Army. The United States formally recognized the new republic on April 7, 1992. To develop U.S. diplomatic relations with the new state, the United States opened a new Embassy in Ljubljana in August 1992.

Since 1992, the United States and the Republic of Slovenia have developed an impressive track record of cooperation on bilateral, regional, and global issues. The United States has worked closely with the Slovenes to resolve succession issues stemming from the breakup of Yugoslavia. Slovenia provided invaluable assistance to the United States and NATO by facilitating the deployment of IFOR--and subsequently SFOR--to Bosnia after the conclusion of the Dayton accords. With strong U.S. support, Slovenia has developed the ITF as the demining instrument of choice in the Balkans and is expanding operations to include the Caucasus.

On the economic front, the United States has worked to develop bilateral trade and investment with Slovenia. U.S. trade (imports and exports) with Slovenia for 2004 was $908 million. Under the Support for Eastern European Democracy (SEED) Act, the U.S. provided technical assistance on enterprise competitiveness, banking and pension reform, competition policy, and debt restructuring. Reflecting the progress Slovenia has made in these areas, Slovenia was among the first transition countries to "graduate" from the SEED program.

The United States supported Slovenia's accession to the North Atlantic Alliance and continues to work with the Slovenian military to promote greater cooperation and interoperability with NATO forces. The United States and Slovenia hold periodic high-level security consultations to help Slovenia achieve this national objective. The U.S. European Command provides a liaison team that works with the Ministry of Defense full-time to develop greater familiarity with NATO structures and procedures.

In addition to regular diplomatic relations, numerous top-level visits on both sides have strengthened bilateral dialogue and contributed to deepening relations. President Bush met with then-President Milan Kucan and then-Prime Minister Janez Drnovšek in Slovenia during the June 2001 summit between President Bush and Russian President Putin. Then-Prime Minister Drnovšek met again with President Bush in Washington in May 2002. Defense Minister Anton Grizold and Foreign Minister Dimitrij Rupel traveled to Washington in September 2002. Secretary of Defense Donald Rumsfeld visited Ljubljana in November 2002, following the NATO summit in Prague. Speaker of the House Dennis Hastert traveled to Ljubljana in September 2003. In October 1997, Slovenia joined the group of countries--now numbering 27--whose citizens enjoy the privilege of visa-free travel to the United States. Having become a NATO member in 2004, Slovenia hosted a session of the NATO Parliamentary Assembly in May 2005. Also, Foreign Minister Rupel has met with Secretary Rice several times in 2005 as the chairman of OSCE, most recently in July.

Given Slovenia's relative economic success and location, its history, language, business ties, and insights into the region, Slovenia can be a partner in advancing the shared goal of regional political and economic stability. More than geographically, Slovenia is a bridge from developed Europe into the Balkans, an area of the continent that poses significant diplomatic and security challenges.

Principal U.S. Official
Ambassador--Thomas Bolling Robertson