The country-specific recommendations are documents prepared by the European Commission for each Member State, which analyse its economic situation and provide tailored policy advice on measures that it should adopt over the coming 18 months. They cover the particular challenges that the Member State is facing in a broad range of areas: the state of public finances, reforms of pension systems, measures to create jobs and to fight unemployment, education and innovation challenges, efficiency of the public administration, competition etc. The final adoption of country-specific recommendations prepared by the Commission takes place at the highest level by national leaders in the European Council.
After a prolonged recession, recent data suggest that Slovenia has started a fragile recovery. The recovery appears to be broad based with improvements on both the external and domestic side. Employment is expected to stabilise in 2014 before growing modestly in 2015. Slovenia is recommended to correct its excessive deficit by 2015 at the latest. As highlighted in the 2014 in-depth review presented by the Commission on 5 March 2014, Slovenia continues to experience excessive macroeconomic imbalances which require specific monitoring and continuing strong policy action.
Slovenia has made some progress in addressing the country-specific recommendations issued by the Council in 2013. Substantial progress has been made in the area of cleaning up and reforming the financial sector. An important challenge concerns the creation of greater clarity regarding the underlying health of the financial sector, which resulted from an asset quality review and stress test. The markets have welcomed the government’s prompt recapitalisation and announced strategy for restructuring. However, limited progress has been made on several of the structural reform measures identified in 2013, and the privatisation process has lagged.
The main challenge for Slovenia is to restructure its banking and corporate sector, improve governance of the state-owned enterprises and correct its imbalances. See how Slovenia compares with other EU Member States in key areas.
2014 European Commission's recommendations in brief
The Commission has issued eight country-specific recommendations to Slovenia to help it improve its economic performance. These are in the areas of: public finances; sustainability of pensions and long-term care; labour market and wage-setting; financial sector; state-owned enterprises; corporate restructuring and insolvency proceedings; regulated professions and business environment; efficiency of the public administration.