Mid-Term Grade for the Slovene Presidency: "A"

Posted: 15 April 2008

by Roman R. Kessler

In its first three months, Slovenia's stint at the rotating EU Presidency has already proven a bright spot in the European Union's record on East-West integration. The Alpine state is the first former communist country to head the 27-member bloc. Beyond all the sweet talk about how East and West are now one, Slovenia has been genuinely successful in shoring up pan-EU support for important long-term projects. Though a lightweight in EU power structures and a newbie to the Brussels political establishment, Slovenia picked the right strategy when it chose to focus on building a common approach to the western Balkans (an issue close to its own heart) and seeking consensus on economic reform projects and the Lisbon Treaty framework.

A Bridge to the Western Balkans

"It's about time to end the Yugoslav crisis that began with an assault on Slovenia in 1991," said Slovenia's foreign minister Dimitrij Rupel. The richest ex-communist state ( in per capita terms), Slovenia is also the only former Yugoslav republic that is now an EU member state, and the Slovenes are keen to bring as much closure as possible to the break-up of Tito's Yugoslavia. Slovenia has vested interests here – not the least of which concern its own boundaries – and the Slovene vision is one of a stable and unified Balkan region under an EU roof, where national borders no longer matter. On the Kosovo question, Ljubljana was able to provide some "street cred" in arguing that the province's separation from Serbia was the latest phase in the Balkans' ethno-national re-equilibration. Slovenia signaled it would back the declaration of independence in the former Serbian province long before the official decision had been made to do the same in major Western capitals.

EU Economic Reforms

Against the backdrop of international financial turmoil, the Slovene Presidency set in motion a new project to make the EU more fit for globalization. In his capacity as the head of the European Council, Prime Minister Janez Janša pointed both to the EU's solid foundations, which made its economy rather resilient against market turbulence, and high energy prices and other trends that made further reform necessary. In March, member states agreed to launch the “Lisbon Strategy” – an ambitious new cycle of economic reform named after the 2000 Lisbon Agenda. Its aim, over the next three years, is to foster innovation and enterprise, while  caring for people and the environment. To withstand the shocks that come with economic interdependence, Ljubljana argued that it is important to rely on the "creativity of our citizens and our rich cultural heritage" – words that now feature prominently in policy declarations. In practice, this translates into efforts to boost investment in research and development, as well as education. Members also pledged to prevent "brain drain" of European talent. Slovenia can take credit for formulating a crucial point related to the Union's long-term competitiveness.

Lisbon Treaty Ratification

Just before Slovenia assumed the Presidency, the EU's 27 heads of state signed the Lisbon Treaty to replace the washed-up constitutional treaty. Nine states have so far ratified the treaty, with Slovenia among the first to do so. Slovenia has used its Presidency to actively lobby for the speedy ratification of the treaty, which it says will make the EU more "effective, transparent and democratic." The treaty features important institutional reforms and promotes a common set of values and rights. It also provides for a strengthened foreign policy of the union by installing a more powerful High Representative for the Union in Foreign Affairs and Security Policy, who will also serve as Vice-President of the Commission. If things go according to plan, the treaty will enter into force on January 1, 2009. So far, the process of ratification has not encountered the opposition that its predecessor, the constitutional treaty, faced three years ago. France's EU Presidency, beginning this July, will be charged with concluding the ratification process.

Slovenia's Mid-Term Grade: "A"          

In its first three months, Slovenia's well-planned and transparent presidential term has delivered stability to the EU – an accomplishment not to be taken lightly, considering complaints over France’s still unclear presidency agenda for the second semester of 2008. In so doing, Slovenia has silenced those critics who feared the small Alpine state could be too weak and new to manage a successful presidential term. Without doubt, there is a distinctive Slovenian note to the current Presidency agenda, even if some of the foundation was inherited from the German and Portuguese Presidencies. Slovenia continues to put down roots in the Brussels establishment and burnish its image as an important link between “new” and “old” Europe.

When the last Presidency party ends this summer and the EU-phoria has worn off, political elites in Slovenia will hunker down for parliamentary elections this October. And Slovenia's successful presidential stint bodes well for Janša’s conservative government.

Roman R. Kessler is an economics correspondent for Dow Jones Newswires in Frankfurt and a contributor to the Wall Street Journal. He can be reached at kessler.roman@gmail.com.

The views expressed in this article are those of the author and do not necessarily reflect the opinions of the Center for European Policy Analysis.