Financial Aspects of Slovenia’s Membership in the EU

This article addresses two main topics: the relationship between Slovenia and the European Union budget, focusing on specific factors the country faced when negotiating for various multiannual financial frameworks (MFFs), and membership in the euro area following the introduction of the euro in 2007. The main findings are (1) the EU budget, especially the funds earmarked for the Cohesion Policy, has significantly contributed to the economic development of Slovenia and has played a vital role in reducing the country’s development gap vis-à-vis the EU average and (2) despite requiring Slovenia to give up its monetary sovereignty, the introduction of the euro and membership in the euro area protected the country from potential currency attacks and significantly reduced currency risk for its residents when carrying out international economic transactions, contributing to lower inflation and interest rates, and to better and cheaper access to international financial markets, as clearly demonstrated during the recent crises.