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Country Commercial Guides for FY 2000: Slovenia Report prepared by U.S. Embassy Ljubljana, Released July, 1999 Note*

Chapter III Political Environment

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 a National Assembly (which takes the lead on virtually all legislative issues) and a National Council. The Constitutional Court has the highest power of review of legislation to ensure its consistency with the Slovene Constitution.

The present government is a "grand coalition," with the leftist Liberal Democratic Party (LDS) sharing power with the rightist, rural-based People's Party (SLS). Although this cohabitation suffered "teething pains," leading to delays in adopting and passing legislation necessary for EU accession and slowed the pace of tertiary economic reforms, it shows every sign of finishing out its full mandate (i.e., until fall, 2000). To its credit, the government has put its most serious disagreements behind it and has agreed to put its most critical legislation on a fast track. With certain exceptions pertaining to the influence of former elites, a relative consensus prevails about priorities. 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 and NATO.

In 1998, local elections for mayors and city councils of Slovenia's 192 municipalities (obcine) were held. The results showed strong gains for Slovenia's foremost party, the Liberal Democrats. However, if experience is any guide, these elections tend to have only weak predictive strength.

November, 1998 also saw the EU's progress report on candidate members' progress in fulfilling the requirements for membership. Slovenia's ranking at the bottom of the list provoked severe criticism of both government and Parliament and called, successfully resisted, for ministers' resignations. The accelerated procedures referred to above are likely to enable Slovenia to enjoy a significantly better report this year.

The high point on the political calendar for 1999 was the visit of President Clinton to Ljubljana in June and his speech to the Slovenian public from history Congress Square. Coming at the conclusion of the NATO operation in Kosovo, Clinton was able to thank Slovenia for its support in that operation and to point to Slovenia as the Former Yugoslavia's success story and a suitable model for the region. As part of that visit, the U.S. and Slovenia signed four major agreements in the fields of taxation, export financing, non-proliferation of weapons, and science and technology.

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. Slovene 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.

Slovenia enjoys excellent relations with the United States and cooperates with it actively on a number of fronts. It presently occupies a non-permanent seat on the UN Security Council, and in that capacity has 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 is also 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 World Trade Organization, of which it is a founding member.