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Privatisation as litmus test for Slovenia

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Slovenia is facing its most serious economic crisis since it joined the European Union in 2004 – a crisis that has shattered previous convictions and conventions about how the country ran its economy. This is welcome. Even more welcome is the determination of the current government to implement decisive measures that aim to put the country on a path of sustainable and stable growth.

A critical element in this is the country’s future approach to privatisation and the role it is prepared to give to foreign direct investment. The privatisation agenda is now being closely monitored internationally as a test of the government’s resolve to reform.

Historically, the role of FDI in Slovenia has been marginal compared with elsewhere in the region. This worked for a time because the country was able to count on many of its traditional strengths and benefitted from a benign economic environment.

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