Slovenia has a functioning market economy with introduced competition and continuous progress in structural reforms. It enjoys very solid macroeconomic stability (GDP growth is stable and has ranged between 3,5 and 5,2 percentage points since 1993) with effective fiscal control and low external debt (the budget deficit has never exceeded 1% of GDP), and a high degree of international economic integration. Slovenia trades primarily with EU member states, especially Germany, Italy, France, Austria, and the United Kingdom. According to data from the Slovenian Statistical Office for 2001, 62% of Slovenia's exports were destined for EU countries, and 67% of its imports came from EU member states. Spain currently ranks eleventh as a supplier to Slovenia and eighteenth as a customer. Slovenia is seeking to expand into new markets within the EU and wants to broaden trade ties with the former Yugoslavian market and achieve a greater presence not only in the US, but also in Russia, Ukraine, etc., and in the countries of Central Europe.
From the early days of Slovenia's independence, bilateral relations between Slovenia and Spain have been excellent. Cooperation in all fields has increased considerably, both politically and economically. High-level political visits have taken place, and at the beginning of July of this year, His Majesty King Juan Carlos I will visit Slovenia. The fundamental agreements and conventions that contribute to the development of trade between Slovenia and Spain have been signed (Agreement on International Road Transport, Air Transport Agreement, Agreement for the Promotion and Reciprocal Protection of Investments, Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital). Since February 1999, the Association Agreement between Slovenia and the EU has been in force, gradually opening the Slovenian market to EU exports.
In recent years, trade between Slovenia and Spain has increased, with the trade balance rising from $292,9 million in 2000 to $348,7 million in 2001. However, trade statistics still confirm a trade deficit for Slovenia. Slovenia, seeking to attract more Spanish direct investment, approved a plan on July 22, 2001, presented by the Trade and Investment Promotion Office. This plan aimed to promote and diversify foreign investment between 2001 and 2004 by simplifying procedures and mechanisms to reduce administrative hurdles and thus assist Spanish businesses.
Regarding EU accession, Slovenia has concluded 26 chapters with the EU, leaving three more, the most important ones, to be finalized. These concern the "financial package" (regional policy, agriculture, and the budget). We hope that the European Commission will adopt its common positions during the Spanish Presidency so that negotiations can be concluded. We are confident that the Spanish Presidency will achieve its objectives so that negotiations can conclude by the end of 2002, allowing Slovenia, along with other candidate countries, to join the EU in 2004 and contribute to common interests and free trade.
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