Sep 23rd 2010, 11:04 by T.J. LJUBLJANA
THE massive floods that have afflicted two thirds of Slovenia have begun to recede. Inevitably they will leave a lot of muck behind. That sounds familiar. In 2009, after 16 years of uninterrupted growth, Slovenia’s GDP shrank by 7.8%, a bigger fall than any other euro-zone country. Now, thanks to growth in key Slovene export markets like Germany, the economy is recovering. But the crisis seems to have left behind quite a lot of muck too.
Ever since the collapse of Yugoslavia, Slovenes have cultivated a reputation as dynamic, efficient and uncorrupt. That brand has been tarnished of late. In August, Janez Jansa, a former prime minister, was charged with corruption in connection with a deal to buy armoured vehicles from Finland. He says the charge is an attempt to smear him before next month’s local elections. In March, the minister of agriculture was arrested after being charged with corruption. In July Matej Lahovnik, the economy minister, resigned, accusing his party leader of acting unethically with regard to government tenders. “People should not get the feeling that there are different rules for those in power and for ordinary people”, he says.
Every day Slovene newspapers are full of accusations and innuendo. So it is little wonder, says Drago Kos, the outgoing head of the country's anti-corruption commission, that surveys show that public trust in government is declining. And Slovenia is not free of the organised crime that is such a problem elsewhere in the Balkans. In May, 15 suspected members of a notorious drugs gang were arrested in Ljubljana on suspicion of involvement in a huge international cocaine deal. This week the trial of the gang's alleged leader, Darko Saric, began, in his absence, in Belgrade.
Now Borut Pahor's government is faced with tough fights as it attempts to push through painful economic reforms. Health-care and the pensions system will be particularly contentious. In economic terms, says Samuel Zbogar, the foreign minister, “It’s the most difficult time in Slovenia for any government since independence.” There are demographic problems—Slovenia has one of the fastest ageing populations in Europe. And business is suffering. Several large companies have gone to the wall, including Merkur, a large retailer, just a week ago.
Unsurprisingly, Mr Zbogar is happier talking about his own portfolio, where the picture looks happier. In June a referendum approved an agreement made by the government with its Croatian counterpart to send a long-running territorial dispute to international arbitration. The prime ministers of the two countries also say they have agreed on a way to resolve a bitter banking row. Both rows could have seen Slovenia threaten to hold up Croatia’s EU accession process.
Slovenia now seems to have dumped its previous qualms about being associated with the former Yugoslavia. Up to 70% of Slovene foreign investments go to ex-Yugoslav states, and in July parliament passed a resolution declaring that the Western Balkans were a strategic priority. “We are definitely trying to drag Serbia and the others to the EU because it is in our interest,” says Vojko Volk, Slovenia’s ambassador to Croatia. Slovenia has no more prejudices about the Balkans, he says. “That’s over. It has been 20 years. We needed some time.”
the economist, eastern approaches
http://www.economist.com/blogs/easternapproaches/2010/09/slovenia
THE massive floods that have afflicted two thirds of Slovenia have begun to recede. Inevitably they will leave a lot of muck behind. That sounds familiar. In 2009, after 16 years of uninterrupted growth, Slovenia’s GDP shrank by 7.8%, a bigger fall than any other euro-zone country. Now, thanks to growth in key Slovene export markets like Germany, the economy is recovering. But the crisis seems to have left behind quite a lot of muck too.
Ever since the collapse of Yugoslavia, Slovenes have cultivated a reputation as dynamic, efficient and uncorrupt. That brand has been tarnished of late. In August, Janez Jansa, a former prime minister, was charged with corruption in connection with a deal to buy armoured vehicles from Finland. He says the charge is an attempt to smear him before next month’s local elections. In March, the minister of agriculture was arrested after being charged with corruption. In July Matej Lahovnik, the economy minister, resigned, accusing his party leader of acting unethically with regard to government tenders. “People should not get the feeling that there are different rules for those in power and for ordinary people”, he says.
Every day Slovene newspapers are full of accusations and innuendo. So it is little wonder, says Drago Kos, the outgoing head of the country's anti-corruption commission, that surveys show that public trust in government is declining. And Slovenia is not free of the organised crime that is such a problem elsewhere in the Balkans. In May, 15 suspected members of a notorious drugs gang were arrested in Ljubljana on suspicion of involvement in a huge international cocaine deal. This week the trial of the gang's alleged leader, Darko Saric, began, in his absence, in Belgrade.
Now Borut Pahor's government is faced with tough fights as it attempts to push through painful economic reforms. Health-care and the pensions system will be particularly contentious. In economic terms, says Samuel Zbogar, the foreign minister, “It’s the most difficult time in Slovenia for any government since independence.” There are demographic problems—Slovenia has one of the fastest ageing populations in Europe. And business is suffering. Several large companies have gone to the wall, including Merkur, a large retailer, just a week ago.
Unsurprisingly, Mr Zbogar is happier talking about his own portfolio, where the picture looks happier. In June a referendum approved an agreement made by the government with its Croatian counterpart to send a long-running territorial dispute to international arbitration. The prime ministers of the two countries also say they have agreed on a way to resolve a bitter banking row. Both rows could have seen Slovenia threaten to hold up Croatia’s EU accession process.
Slovenia now seems to have dumped its previous qualms about being associated with the former Yugoslavia. Up to 70% of Slovene foreign investments go to ex-Yugoslav states, and in July parliament passed a resolution declaring that the Western Balkans were a strategic priority. “We are definitely trying to drag Serbia and the others to the EU because it is in our interest,” says Vojko Volk, Slovenia’s ambassador to Croatia. Slovenia has no more prejudices about the Balkans, he says. “That’s over. It has been 20 years. We needed some time.”
the economist, eastern approaches
http://www.economist.com/blogs/easternapproaches/2010/09/slovenia
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