Slovenia: The Fall of an Economic Paragon

In recent weeks, Slovenia has been under discussion as the next candidate for the European bailout scheme. The country’s government, which is headed by a five-party coalition, has been unable to agree on austerity measures. As the crisis has demonstrated, Slovenia is particularly vulnerable because much of the economy - including major financial institutions - remains in state hands. Slovenia is now struggling with the after-effects of a collapsed real estate boom and the massive debt accumulated by its largest banks.