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Slovenia Defence and Security Report Q1 2012
Business Monitor International, Dec 2011, Pages: 93
The Slovenian defence budget for 2010 was EUR557mn (US$738mn). This marked a 9% drop compared with 2009’s EUR612mn budget, as the Slovenian government took action to limit expenditure in wake of the global economic crisis. As one of the Eurozone’s newer members, the country has also had to shoulder some of the burden of bailing out other, more profligate, members of the economic club. Low spending, when combined with predictions for limited growth in the period to 2015, makes almost certain that Slovenia will miss the NATO 2014 defence spending as a percentage of GDP target of 2%. Nevertheless, these small increases are set to increase Slovenia’s percentage from 1.6% in 2011 to 1.69% in 2015, a positive move which many NATO members are not replicating.
Slovenia has seen its credit rating cut to AA- by Fitch. The move follows the ongoing deterioration of the continent’s economic situation, as leaders struggle to find a route out of the crisis. The September 2011 decision was taken after the government failed to win a referendum on reforming the country’s pension system in July 2011. Ratings agencies say that the failed referendum highlights the difficulty the Slovenian government has in controlling spending and reforming public expenditure.
Furthermore, NLB, which is Slovenia’s largest bank, was rated near the bottom of the recent European stress test. Any significant crisis in European credit markets risks making the Slovenian government liable for the sizeable debts of NLB.
Slovenia has agreed to defence co-operation with China in June 2011, after the visit by Defence Minister Ljubica Jelusic to Beijing. This was the first time a Slovenian defence minister had visited China. Dr Jelusic held a meeting with the Chairman of China’s Central Military Commission, Xu Caihou. The two countries have agreed to deepen military ties, with a particular focus on developing personal contacts between Slovenian and Chinese officers.
Meanwhile, Slovenia is to form part of a joint training mission in Afghanistan. The mission will be comprised of police officers from Albania, Bosnia, Croatia, Montenegro and Macedonia in addition to Slovenia. Croat officers will head the 40 strong team which was agreed upon in October 2011. Key figures in NATO have said that the contribution for training Afghan military police is very welcome, given the experience of these countries after the collapse of Yugoslavia, which should provide trainers with better insight into the difficult dynamics at play in Afghanistan. Serbia is not participating in the mission, but members have said that Serbia is welcome to send a contingent if they wish.
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