Slovenia is hopeful of pact with EU soon

THE Foreign Minister of Slovenia, Mr Zoran Thaler, said yesterday he hoped his country's association agreement with the European…

THE Foreign Minister of Slovenia, Mr Zoran Thaler, said yesterday he hoped his country's association agreement with the European Union, opening the way for talks on EU membership, will be signed before the Irish presidency begins in July.

The agreement has been delayed because of a dispute with Italy, but the recent change of government there has eased difficulties and, as Mr Thaler said diplomatically, "has given us a certain optimism" that the obstacles it will soon be removed.

During his visit to Dublin yesterday, Mr Thaler discussed Slovenia's plans for applying for EU membership with the Tanaiste, Mr Spring. The meeting was "very positive", he said later, and he had been assured of the Government's support for enlarging the union.

Economically, Slovenia has little to gain from association since it has had a co operation agreement with the EU since 1993.

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However, politically the way will be opened to joining the queue of central and eastern European countries which hope to start accession talks in 1998, and aim to become members in 2000 or shortly afterwards.

Since becoming independent in 1991 the first of the Yugoslav republics to establish its separate status - Slovenia has been become one of the most successful former communist states in developing its economy with GDP averaging $8,700 per head.

From no growth, high inflation and growing unemployment in the early 1990s, it has achieved a growth rate of between 4 and 6 per cent and stable unemployment and brought inflation - still 8.6 per cent - under control in the last three years.

"Hard currency reserves were non existent in 1991. Now after four years we have 53.2 billion of reserves, and in the fiscal part of Maastricht there is no budget deficit and public debt is low. But in inflation and interest rates we still have to do a lot."

Mr Thaler pointed out, however, that the country needed to export 75 per cent of what it produced "to survive, to be efficient", and at present its export rate was about 50 per cent or $5,000 per head of population.