For the most current version of this Note, see Background Notes A-Z.

Flag of Slovenia is three equal horizontal bands of white (top), blue, and red, with the Slovenian seal located in the upper hoist side of the flag centered in the white and blue bands. Slovenian seal is a shield with the image of Triglav, Slovenia's highest peak, in white against a blue background at the center; beneath it are two wavy blue lines depicting seas and rivers, and above it are three six-pointed stars arranged in an inverted triangle, which are taken from the coat of arms of the Counts of Celje, the great Slovene dynastic house of the late 14th and early 15th centuries. 2003.

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--Liberal Democratic Party (LDS), 34 seats; Social Democratic Party of Slovenia (SDS), 14; United List of Social Democrats (ZLSD), 11; Slovene Peoples Party (SLS + SKD), 9; New Slovenia (NSi), 8; Pensioners Party of Slovenia (DeSUS), 4; Slovene National Party (SNS), 4; Slovene Youth Party (SMS), 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 (2003): 2.24 trillion Slovenian Tolar (about 9.5 billion euros); defense, 1.62% GDP.

Economy
GDP (2003 est.): $27.0 billion; 2004 forecast $28.5 billion.
GDP growth rate (2003 est.): 3.2%.
GDP per capita income (2003 est.): $13,534, which is 73% of the EU-15 average.
Natural resources: Coal, mercury, timber.
Agriculture/forestry/fishing (2.9% of 2003 GDP): Products--wheat, corn, pork, poultry, milk, potatoes, orchard fruits, wine.
Industry (35.9% of 2003 GDP): Types--electrical equipment, chemical products, textiles, food products, electricity, metal products, wood products, transportation equipment.
Trade: Exports (2003)--total $12.901 billion. Types of exports--machinery, transportation equipment, electrical and optical equipment, basic metals, and fabricated products. Exports to U.S.--$456 million. Imports (2003)--total $13.346 billion. Types of imports--machinery, transportation equipment, electrical and optical equipment, basic metals, and fabricated products. Imports from U.S.--$338 million. Major trading partners--Germany, Italy, Croatia, France, Austria. Trade with the U.S. accounts for less than 3% of total trade.
Foreign direct investment $4.892 billion (cumulative, end 2002); the U.S. share is $91 million (2002).

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 are Slovenes (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
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, 1991, 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 officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC, and is expected to become a member of the European Union (EU) in May 2004. As an Organization for Security and Cooperation in Europe (OSCE) Troika member scheduled to be Chairman-in-Office in 2005, a continuing participant in the Stabilization Force in Bosnia and Herzegovina (SFOR) deployment and in the Kosovo Force (KFOR) deployment, 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
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 Drnov�ek 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 Drnov�ek as Prime Minister in December 2002. His governing coalition commands an almost two-thirds majority in the National Assembly.

The government, most of the Slovenian polity, shares a common view of the desirability of a close association with the West, specifically of membership in both the European Union, which Slovenia will join in 2004, and NATO. Slovenia officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. 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.

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 was poised to achieve in 2004 its two primary foreign policy goals--membership in the EU and NATO. Slovenia officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. 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 United States 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 Drnov�ek
Prime Minister--Anton Rop
Ambassador to the United States--Davorin Kracun

Cabinet Ministers
Agriculture, Forestry, and Food--Franc But
Culture--Andreja Rihter
Defense--Anton Grizold
Economy--Tea Petrin
Education, Science and Sport--Slavko Gaber
Environment and Spatial Planning--Janez Kopac
Finance--Du�an Mramor
Foreign Affairs--Dimitrij Rupel
Health--Du�an Keber
Information Society--Pavel Gantar
Interior--Rado Bohinc
Justice--Ivan Bizjak
Labor, Family and Social Affairs--Vlado Dimovski
Transport --Jakob Presecnik
Minister without portfolio responsible for European Affairs--Janez Potocnik (Potocnik is the nominee for Slovenia's EU Commissioner and is expected to assume these duties on May 1, 2004.)
Minister without portfolio responsible for Regional Development--Zdenka Kovac

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
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. 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 gross domestic product (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 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.

Slovenia enjoys prosperity and stability that are too often the exception in central and eastern Europe. Today, Slovenia is one the best economic performers in central and eastern Europe, with a GDP per capita estimated at $13,534, or 73% of the EU average. Slovenes now enjoy the highest per capita income of all the transition economies of central Europe. 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. Gross domestic product grew by about 2.9% in 2002, was expected to post a steady rate of 2.7% for 2003, and is forecast to grow by 3.6% in 2004.

Slovenia benefits from a well-educated and productive work force as well as dynamic and effective political and economic institutions. The currency is stable, fully convertible, and backed by substantial reserves. The economy provides citizens with a good standard of living. Manufacturing accounts for most employment, with machinery and other manufactured products comprising the country's major exports. Labor force surveys put unemployment at about 6.3% (Dec. 2003), with 98,129 registrations for unemployment assistance. Inflation has remained below double-digit levels, at 7.5% in 2002 and 4.6% in 2003. Slovenia's economic success clearly illustrates the benefits of embracing liberal trade, following the rule of law, and rewarding enterprise.

Slovenia's economy is highly dependent on foreign trade. Trade equals about 120% of GDP (exports and imports combined), and has been diversified toward the West and the growing markets of central and eastern Europe. Since independence, Slovenia has vigorously pursued such diversification of its trade toward the West and integration into Western and transatlantic institutions. In so doing, it has made substantial progress in its transition to a market economy, 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 will become a new EU member state on May 1, 2004. About two-thirds of Slovenia's trade is with the EU, a figure which will likely rise upon accession in 2004. 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, notably in the financial sector, 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.

The Slovenes have pursued internal economic restructuring with caution. The first phase of privatization (socially owned property under the Socialist Federal Republic of Yugoslavia system) is now complete, and sales of remaining large state holdings are planned for next year. 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.

Economic management in Slovenia is relatively good. Public finances have shown modest deficits on the order of 3.0% of GDP in 2002 and 1.5% in 2003. The budgets for 2004 and 2005 constrain public deficit to 1.7% of GDP, well within Maastricht parameters. The public debt to GDP ratio is 27.8% of GDP (2002). 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 $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 of 2003 rate of 4.6% supports government plans for meeting Maastricht criteria in 2 years.

Due to its macroeconomic stability, favorable foreign debt position, and successful accession talks with 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 accession. 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 Europe countries will decline without further vigorous reforms.

The EU expressed some dissatisfaction with the pace of harmonization in Slovenia and has joined the United States and the International Monetary Fund (IMF) in urging Slovenia to expedite necessary structural reforms. Following a lukewarm report card from Brussels in November 2000, the government redoubled its efforts to that end, stressing implementation of newly adopted legislation. This resulted in a fairly positive EU assessment in October 2002 and November 2003. Slovenia's continued success will hinge mainly on the success of fiscal reform, wage restraint, removal of administrative barriers, and its ability to open its economy further.

With the entry into force of Slovenia's Europe Agreement and the intensification of discussions in Brussels over EU membership, Slovenia has taken some important steps 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. Further measures are planned to remove most of remaining barriers by May 1, 2004. For instance, marketing of foreign mutual investment funds will be 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 and as privatization of two of the largest banks proceeds. While Belgian KBC became the Nova Ljubljanska Banka's (NLB) main owner with 34%, privatization of NKBM Bank was postponed again. Insurance reform is still pending.

Government efforts and reforms designed to attract foreign direct investment 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. By the time Slovenia entered NATO in 2004, the professional force was expected to number about 6,900 soldiers and about 12,000 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. Slovenia officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. Since 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. With a view to becoming a full member, Slovenia deepened its institutional relationship with NATO through active participation in the Euro-Atlantic Partnership Council (EAPC) and Partnership for Peace programs. Slovenia's current international commitments show Slovenia's willingness to become a co-provider of security in the region. Slovenia has contributed helicopters, medical personnel, military police, and an infantry company to SFOR. In March 2004 Slovenia was scheduled to send a small number of troops and vehicles to the International Security Assistance Force (ISAF) in Afghanistan.

Slovenia is a new nation in the process of building up a modern armed force capable of providing for its territorial defense and of contributing to regional stability. After independence, Slovenia was faced with having to build up most of its forces from scratch. The international embargo against arms shipments to the former Yugoslavia postponed a buildup until it was lifted in June 1996. The Slovenian Armed Forces are currently in transition to a professional force structure with NATO-interoperable units.

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 after its attainment of full membership in NATO.

FOREIGN RELATIONS AND REGIONAL COOPERATION
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 UN Security Council and in that capacity distinguished itself with a constructive, creative, and consensus-oriented activism. Slovenia has been a member of the United Nations since May 1992 and of the Council of Europe since May 1993. Slovenia signed an association agreement with the European Union in 1996 and is expected to become a full EU member state on May 1, 2004. Slovenia officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. 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.

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 will assume its duties as Chairman-in-Office of the OSCE in 2005. During 2004, Slovenia is a member of the OSCE Troika along with Bulgaria and the Netherlands. Slovenia's Ministry of Foreign Affairs has an OSCE Task Force that is very engaged in preparations for 2005.

  • 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 $62 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.

  • 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 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.

  • Slovenia is a member of Central European Nations Cooperation on Peacekeeping (CENTCOOP) -- with Austria, Hungary, Romania, Slovakia, Croatia, and Switzerland, with Ukraine and Czech Republic as observers--under which a combined infantry peacekeeping unit was formed March 1998.

  • Slovenia has observer status, like the U.S., in the Turkish-proposed Multinational Peacekeeping Force Southeast European (MPFSEE)--participating are Albania, Bulgaria, Greece, Italy, Macedonia, Romania, and Turkey.

  • Slovenia joined 13 other nations in forming the brigade-sized Standby High Readiness Brigade (SHIRBRIG), headquartered in Copenhagen.

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

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

Contributions to Bosnian Stability

  • Slovenia contributed logistical support to the Implementation Force (IFOR) and is very engaged in the SFOR effort, providing VIP support helicopter and light transport aircraft missions and use of an airbase in southern Slovenia; one motorized rifle company deployed for a 6-month rotation in January 2003.

  • Slovenia has provided a platoon of military police (up to 48) for the Italian-led Multinational Specialized Unit (MSU) in Sarajevo 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).

Succession issues, particularly concerning liabilities and assets of the former Yugoslavia, remain a key factor in Slovenia's relations in the region. On the whole, no conflicts mar relations with neighbors, which are on a sound footing. Numerous cooperative projects are either underway or envisioned, and bilateral and multilateral partnerships are deepening. Differences, many of which stem from Yugoslavia's time, have been handled responsibly and are being resolved.

Italy. Italo-Slovene bilateral relations are excellent. 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. Full and timely Slovenian integration into European and transatlantic organizations is a priority for Italy's current government.

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 have lingered, these appear to be on their way to resolution. 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 improving. Outstanding issues include a few remaining border disputes, joint management of the Krsko nuclear power plant, 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. In order to aid the stabilization of this part of Europe, Slovenia has supported Croatia's efforts to draw closer to European institutions.

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. has supported Slovenia's entrance into the community of developed democracies in the Euro-Atlantic area.

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. 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.

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 2002 stood at 630 million euros. 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 Drnov�ek in Slovenia during the June 2001 summit between President Bush and Russian President Putin. Then-Prime Minister Drnov�ek 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.

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, the area of the continent that poses the greatest diplomatic and military challenges.

Principal U.S. Official
Ambassador--Johnny Young

The U.S. Embassy in Slovenia is located at Pre�ernova 31, 1000 Ljubljana (tel.: +386 (1) 2005500; fax.: +386 (1) 200-5555).

For the most current version of this Note, see Background Notes A-Z.

[This is a mobile copy of Slovenia (03/04)]