Slovenia and EU Accession - EU Negotiations

Structure of Negotiations
As Dr. Fedor Cerne from the Center of European Affairs explained, Slovenia’s organizational structure of negotiations differs from most countries. Slovenia decided to choose eleven experts from varied sectors rather than politicians to conduct the negotiations. Members include experts in agriculture, environmental issues, chamber of commerce, and exports and imports. Also, while the leadership of the country has changed, the EU negotiation team has remained stable with the same eleven members, which has benefited them greatly in terms of continuity and expertise in negotiating with the EU and representing the best interests of Slovenia.

The actual process of negotiation takes place mostly on paper with the negotiating team in Slovenia only meeting on occasion when it becomes necessary. When the time comes to actually discuss terms in person, the Chief Negotiator travels to EU capitals twice a year to meet with the EU representatives. Screenings are held in which the EU presents the aquis, or their requirements in a certain area, and Slovenia responds as to how they will adjust to meet these requirements. Finally, reports of preparedness are created to show the country’s progress.

Slovenia and EU Negotiations
“The success of a country is not measured by its size and population, but by the quality of its contributions to the international community” (Slovenian News 7). After reading countless pages on Slovenia and listening to many great political leaders speak about their beloved country, we came to discover that indeed Slovenia has a small complex. But in a world where size seems matter to most people, it is difficult to imagine being smaller than New Jersey with a population just approaching two million and trying to gain respect among the international community. However, since gaining independence in 1991, Slovenia has consistently improved in all areas of comparison. Furthermore, in its quest to join the European Union, Slovenia has made tremendous progress, propelling itself above the other nine May 2004 joining states.

The negotiations for becoming a full EU member state began in 1998 while Slovenia was an associate member. The thirty-one chapters of negotiation can be quite daunting, but Slovenia has handled them well. There are two main areas in which Slovenia has faced difficulties: the final transition from a socialist economy to a market economy and increased integration into the EU in terms of agriculture, environmental standards, and managing regional policy (Facts about Slovenija 1). While these areas have been challenging, Slovenia has proved itself worthy of such challenges.

Slovenia was well-prepared to represent its interests in negotiations with the EU. While the rest of Europe will be subject to an incentive system which decreases subsidies over time in order to encourage greater efficiency and technology in the agricultural industry, Slovenia managed to convince the EU to allow them to keep their direct payment system to farmers on top of the EU subsidies in order to protect the fragile sector. In addition, Slovenia will not become a net-payer in the EU until 2007.

Slovenia’s desires to preserve trade and ties to the Balkans became apparent in negotiations. The EU has requested that Slovenia establish a Schengen border with Croatia to regulate illegal immigration, organized crime, and trafficking of drugs and human beings. Although discontinuing trade with the Balkans would have minimal effects on the Slovenia economy, Slovenia was at first resistant, wishing to keep ties with their former fellow countrymen. However, they agreed to relinquish trade agreements with Croatia after discovering the EU’s policy to gradual liberalize trade with the former Yugoslavia. Integration into the Schengen information system will only occur after May 2004, however, due to technical difficulties of implementing the system.

The October 8th final report of Preparedness showed that judicial reform was still needed and delays in legislation for professional qualifications were present. Some economic adjustments must still be made, but the final transition into a full market economy will occur after joining the EU. Now Slovenia faces the daunting task of sifting through 85,000 pages of EU negotiations to transpose them into domestic legislation (Fouere).

Summary of Chapters

1. Freedom of Movement of Goods: problem with capacity of companies to implement and supervise legal order and consequences, transition period required for Pharmaceuticals
2. Freedom of Movement of Persons: flexible transition period required by EU, although no problems expected
3. Freedom to Provide Services: transition period requested by Slovenia to protect domestic guarantee for claims of investors
4. Freedom of Movement of Capital: foreign property ownership discussed, but no problems
5. Company Law: great
6. Competition and State Aids: state aid to companies is fine but must fit EU regulations, which has been done
7. Agriculture: agreement to allow Slovenia to continue to subsidize farmers on top of EU subsidies
8. Fisheries: fine
9. Transport: will be fully integrated in EU system first day of accession, but must improve and reorganize Slovenian Railways company
10. Taxation: transition period for some areas, but fine
11. Economic and Monetary Union: exchange rate and inflation must improve
12. Statistics: good
13. Social Policy and Employment: fine
14. Energy: transitional period for providing crude oil, challenge in liberalizing energy markets
15. Industrial Policy: good but must work on implementing principles in practice
16. Small- and Medium-Sized Undertakings: no problems
17. Science and Research: great
18. Education, Training and Youth: educating children of migratory workers directive
19. Telecommunications and Information Technologies: working on liberalization of networks, performance of services, and establishing a regulatory body
20. Culture and Audio-Visual Policy: fine
21. Regional Policy and Structural Funds: discussion over classification of Slovenia and convincing EU that regional differences exist within Slovenia
22. Environment: several transition periods while Slovenia improves environmental standards and regulations to be in line with the National Environmental Action Programme
23. Consumers and Health Protection: fine
24. Justice and Home Affairs: Schengen border must be set with Croatia, integration into Schengen information system possible only after accession because of technical difficulties, increased investing in this area needed
25. Customs Union: no major problems
26. External Relations and Development Aid: with the belief in gradual liberalization of trade with the former Yugoslavia, no transition period requested
27. Common Foreign and Security Policy: good
28. Financial Control: no problems
29. Financial and Budgetary Provisions: net recipient until 2007
30. Institutions: fine
31. Other: none

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