December 2, 2012
LJUBLJANA, Slovenia (AP) - Former Slovenia Prime Minister Boorut 
Pahor won the presidential election Sunday, calling for unity in the 
tiny EU nation where discontent has been mounting with government 
budget cuts and other austerity measures designed to avoid a bailout.

Sunday's vote came just days after anti-austerity protests in 
Ljubljana, the capital, erupted into clashes that left 15 people 
injured, triggering fears this normally placid Alpine nation of 2 
million was heading into instability.

Several hundred protesters waving banners gathered Sunday in the 
eastern town of Krsko, even as snow blanketed the country, disrupting 
traffic in some parts and contributing to a low election turnout.

Slovenia, once an economic star among EU newcomers when it joined in 
2004, has faced one of the worst recessions of the 17-nation 
eurozone. Its economy has shrunk more than 8 percent since 2009 and 
continues to decline, resulting in a sharp drop in living standards 
and a surge in unemployment, which now stands at about 12 percent.

video: http://www.bbc.co.uk/news/world-europe-20576387

IMF country report on Slovenia, November 29, 2012:
http://www.imf.org/external/np/sec/pn/2012/pn12134.htm
http://www.imf.org/external/pubs/ft/scr/2012/cr12319.pdf

With a loss of more than 8 percent of GDP, Slovenia experienced the 
largest economic contraction since 2008 among euro area countries, 
excluding Greece. After independence in 1991, Slovenia grew steadily 
to achieve the highest income level in transition countries, but 
failed to complete structural reforms. A foreign-financed credit boom 
facilitated by euro adoption fueled a construction bubble and 
aggressive leveraging of the corporate sector, resulting in a rapid 
deterioration of the net international investment position (IIP). The 
2008-09 crisis brought a sudden stop of capital inflows, an abrupt 
fall in GDP, a quick correction in the current account deficit, and 
broad stabilization of the IIP at levels which seem sustainable. [...]


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