Unemployment
Slovenia also has a National Unemployment Office (RZZ). This office reported in February 1996, 123,689 people remained unemployed which is 1.9% more than February 1995.[74] This further supports that the economy of Slovenia may be experiencing a slow down. As of July of 1996, the RZZ reported that unemployment was 13.7% but according to the ILO definition of unemployment, the figure was much lower at 7.3%.[75] However, with the change in government, hopes are that these issues will be discussed and policies implemented to reduce the level of unemployment. Currently, the country is providing unemployment insurance for the people without jobs who register with the RZZ.
Conclusion
Slovenia remains a powerhouse in comparison to some of the other former Eastern Bloc countries. It has proceed with some caution, realizing the changes that are necessary for a stable free market economy. Now, with new leaders, the country has to decide whether it will continue the course set forth by the originators of the country or whether it will go back, taking more conservative steps. From Slovenia’s current actions, it would seem that the next step is either Associate Membership or Full Membership in the European Union.
Janez Drnovsek when presenting the 1996 budget to parliament informed the legislative body that "Slovenia met three of the five Maastricht criteria for introducing a single European currency: ‘Our public debt is well below the European average and the budget is balanced, which is significantly better than the European Union average. We also meet the third criterion on the convertibility of the national currency. Two criteria remain: both our average interest rate and our inflation is too high, but we are planning to cut inflation down to about 6.5%.’"[76] Currently, Slovenia seems to be ahead of some of the current members of the EU in satisfying the Maastricht Treaty’s requirements. In addition, the question remains, whether Slovenia will join NATO. The new parliament may have a well defined opposition to this prospect.
Additionally, Slovenia is flourishing as an economic center of commerce in the East. Slovenia needs to strengthen its ties with other eastern countries, such as Russia, in order to develop its trade partners. The transitioning countries can serve as a new market for the West as well as Slovenia. Furthermore, additional trade partners exist in the far east, which are currently not being considered.
Many challenges face the transition countries as the century comes to a close. It will be important to watch these economies as they begin to rise above the already established economies of the West. It will be important that Slovenia manage it’s inflation rate, keep interest rates at a stable level and insure that the Tolar remain at a controlled level. All these factors will play a large role in determining successful public financial and monetary policy in the Republic of Slovenia.
[1]Http://soho.ios.com/`finsol/emregions/e-europe/slovenia.htm
[2] Golnik, Richard. “Calm & Safe Slovenia.” Emerging Nations -Slovenia, June 1995.
[3] Slovenia was at one point a part of the Austro-Hungarian Empire and thus always had felt a strong historical and economic ties to the Western European countries.
[4]Ibid, p.4.
[5]Danforth, Kenneth. “Slovenia: Open markets in an open society.” Europe. May 1996, no.356, p.22(3).
[6]Golnik, 1995, p.1.
[7]Mencinger, Joze. (1989) The Yugoslav economy: Systemic changes, 1945-1986. Pittsburgh, PA.: University of Pittsburgh Center for Russian and East European Studies. The Serbian/Bosnian/Croatian conflict was getting worse and the country was starting to fall apart.
[8] Http://soho.ios.com/`finsol/emregions/e-europe/slovenia.htm, p.4.
[9]Schneider, Jens. “Slovenia searches for Europe.” World Press Review, Jan. 1993 Vol.40, No.1, p.42(1).
[10]Danforth, 1996, p.2. and “Unimaginable only a few years ago, one of the six republics that once composed Yugoslavia is being praised in most Western capitals as the model for any ex-communist state aspiring to membership in NATO and the European Union.”
[11]EIU Country Report- 2nd Quarter. Slovenia. The Economist Intelligence Unit Limited, 1996.
[12]Http://www.gzs.si/eng/slovenia/busPages/TRENDS/TREND_1.HTM and 5.HTM, Chamber of Economy of Slovenia 1996.
[13]Golnik, 1995, p.1.
[14]Chamber of Economy of Slovenia. “Slovenia’s Economic Trends.” 1996.
[15]EIU Country Report, 1996.
[16]Gow, James. (1994). "Slovenia: Stabilization or stagnation?" RFE-RL Research Report, Jan. 7th, vol. 3, No. 1.
[17]Golnik, 1995, p.2.
[18]Http://www.new-europe.gr/profiles/slovenia.htm, p.3.
[19]Ibid., p.3.
[20]Bank of Slovenia. (1996). "General information on Slovenia." Monthly Bulletin: April.
[21]Golnik, 1995.
[22]Price Waterhouse. (1996). "Privatization in Slovenia." Price Waterhouse. January 22.
[23]Ibid., 1996.
[24]EIU Country Report, 1996.
[25]EIU Country Report, 1996.
[26]EIU Country Report, 1996.
[27]Golnik, 1995, p.3.
[28]Markotich, Stan.(1996) "Slovenian Election Final." Open Media Research Institute.
[29]Markotich, Stan.(1996) "Slovenia’s former Communists say ‘No’ to NATO." Open Media Research Institute.
[30] The Economist. “Much to do: Slovenia.” Nov. 2, 1996 vol.341 no.7990 p.51(2).
[31]Shortall, Fergal. Slovenia: Birth of an Adriatic Tiger. http://www.economics. tcd.ie/ser/1996/slovenia.htm.
[32]Chamber of the Economy of Slovenia, 1996.
[33]Shortall, 1996.
[34]Ibid., 1996.
[35]Ibid., 1996.
[36] Chamber of Economy of Slovenia. (1996) Exchange Rate and Monetary Policy. Http://www.gzs.si/eng/slovenia/busPages/Trends/Trend_4.HTM.
[37]Exchange Rates for Companies. Banka Slovenia. 1996.
[38]The Economist. (1996) "Creditable: Eastern European Finance." July 13, Vol.340, No. 7974, p.72.
[39]General Information on Slovenia. Banka Slovenia. May 1996
[40]Institutional Investor, March 1996.
[41]Markotich, Stan.(1996) "Slovenian Parliament Approves Draft Budget." Open Media Research Institute.
[42]Petrov, Sabina. (1995). "Parliamentary election accelerates the enactment of the Slovenian Budget." Banka@ZSE.COM.HR.
[43]Ibid., p.1.
[44]Ibid., p.1.
[45]Http://www.odci.gov/cia/publications/95facts/si.html, p.7.
[46]Ibid., p.1.
[47] Slovenian National Constitution. Section- Public Finance. Adopted 1991.
[48] Adair, Robin. (1996). "Slovenia introduces Value-Added Tax as part of system reform." Transition Brief. No. 2 Winter.
[49]Deloitte & Touche LLP. (1996). "Slovenia." Taxation in Eastern Europe. Http://www.dtonline.com/eeurope/slovenia.htm.
[50]Price Waterhouse. (1995). " Taxation- Introduction and Developments." Business Monitor. 4 September, p.2.
[51]Ibid.,p.4.
[52]Ibid., p.1.
[53]Deloitte & Touche, LLP, p.3.
[54]Ibid., p.2.
[55]Deloitte & Touche, LLP, 1996.
[56]Ibid. p.4.
[57]Ibid. p.4- Rates include 5% to 10% for building and other structures, 33.3% for most machinery and equipment( including vehicles), 50% for computer equipment, and 20% for goodwill.
[58]Ibid., 1996.
[59]Ibid., 1996. Income tax is paid on personal income, income form agriculture, income from various activities, investment income, and income form property and property rights. Personal income consists of salary income, pension income, or any other gross receipts of an employee, including fringe-benefits, value of gifts, accommodations or used cars for personal purposes. Income from property and property rights includes rental income, income from profit participation, interest income, and royalty income.
[60]Ibid., 1996.
[61]Ibid., 1996.
[62]Ibid., 1996.
[63]Ibid., 1996.
[64]Ibid., 1996.
[65]Ibid., 1996.
[66]Shortall, 1996.
[67]Tanovnik, Tine. (1994). "The sale of the social housing stock in Slovenia: what happened and why." Urban Studies. Nov. Vol. 31, No. 9, p.1559(12).
[68]Sendi, Richard. (1995). "Housing reform and housing conflict: the privatization and denationalization of public housing in the Republic of Slovenia in practice." International Journal of Urban and Regional Research. Sept. Vol.19, No. 3 p. 435 (12).
[69]Golnik, 1995, p.1.
[70]Golnik, 1995, p.1.
[71]Orlowski, Lucjan T. (1995) "Social Safety Nets in Central Europe". Comparative Economic Studies. Vol. 37, No. 2 Pg. 29-48; Summer, p.40.
[72]Business Report on Slovenia. (1996).
[73]Petrov, 1995. P.1.
[74]Business Report on Slovenia. (1996).
[75]Chamber of Economy of Slovenia. (1996). Demand and Employment. Http://www.gzs.si/eng/slovenia/busPages/Trends/Trend_3.HTM
[76]Petrov, 1995. p.1.