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Restoring fiscal sustainability is a major challenge in Slovenia. Yet, the performance in terms of expenditure control is poor and public expenditure on social spending increased briskly during the crisis, significantly more than on average across the OECD.
Slovenia is facing the legacy of a boom-bust cycle that has been compounded by weak corporate governance of state-owned banks. The levels of non-performing loans and capital adequacy ratios compare poorly in international perspective and may deteriorate further, which could require significant bank recapitalisation.
This paper derives estimates of the efficiency of welfare spending in Slovenia and the other OECD countries from data envelopment analysis based on model specifications used in earlier OECD studies.
Slovenia is in a deep recession and, despite recent reforms, must solve the banking crisis, strengthen fiscal sustainability and boost growth through structural reforms, according to the OECD’s latest economic Survey of Slovenia.
Overall, the education system fares well by international comparison. Slovenia has one of the highest shares of the population aged 25 to 64 to have completed at least upper secondary education, and ranks high in international educational achievement tests.
Slovenia has been hit hard by the global crisis, but started to recover gradually. This Survey discusses policies to rapidly rebalance the Slovenian economy, restore competitiveness, improve the performance of the education system, and create a friendlier environment for foreign direct investmen
Product market regulation on average is Slovenia does not appear particularly stringent, but heavy state involvement and high market concentration in several industries call for the gauging of competitive pressures in Slovenian industries.
This paper examines various aspects of fiscal policy in Slovenia, in particular fiscal consolidation, pension reform, efficiency of government spending and the tax system.
Labour market outcomes have improved markedly in the past years as the beneficial effects of the economic upswing were reinforced by important structural reforms.
Slovenia’s rapid convergence to the OECD average has been interrupted by the global crisis that made discretionary fiscal expansion necessary. Beyond the crisis, ensuring fiscal sustainability, especially through pension reform, increasing labour participation, especially among the old and the young and improving the governance of financial institutions and state-owned enterprises remain key challenges.