The European Commission’s Country Report assesses Slovenia’s economy and acknowledges the progress made so far.
The survey recommends three priorities for the EU’s economic and social policy in 2016: re-launching investment, pursuing structural reforms to modernise Member States’ economies and responsible fiscal policies. The Alert Mechanism Report identified Slovenia as warranting a further in-depth review.
The Slovenian economy continued to grow strongly in 2015. Economic output is estimated to have expanded by 2.5% in 2015, following 3% in 2014. The rebound, which commenced in 2014, was initially driven by strong export performance. Subsequently, the recovery has become broader-based, as private consumption growth has accelerated, boosted by an improving labour market.
Overall, Slovenia has made some progress in addressing the 2015 country-specific recommendations: Several policy measures have been implemented to improve the long-term sustainability of the banking sector. Restructuring of several small and medium-sized enterprises is ongoing. A strategy and annual management plan including performance criteria for the management of state assets have been adopted. Positive trends in the efficiency of civil justice have been maintained. Some measures to increase the employability of vulnerable groups and to address long-term unemployment have been adopted. The composition of the minimum wage has been reformed.
The following challenges were exposed in the report:
- Reducing risks to Slovenia's external position
- Credit growth and the long-term profitability of Slovene banks
- Further decrease of corporate sector debt and diversification of SME’s funding sources
- Ease of administrative burden, reform of public administration and functioning of the justice system
- More efficient management of state companies
- Further privatisation
- Fiscal consolidation
- Diminish the pressure of aging population on pension, health care and long-term care systems
Further measures related to the restructuring and privatisation of banks and companies, the improvement of the business environment, fiscal stability, and structural reforms of the public sector have already been identified by the Ministry of Finance.
Contact:
Vanda Močnik Kohek
Senior Relationship Manager
GSS Slovenia
vanda.mocnik@unicreditgroup.si