Regardless of these positive shifts, challenges remain in terms of ensuring a more sustainable improvement to Slovenia’s growth potential and the welfare of its population, which will require more radical structural changes. To strengthen its growth potential and improve the quality of life and welfare of its population, it is vital that Slovenia increases its productivity and adjusts its social protection systems to demographic changes, i.e. the rising share of the elderly population. Both would also have a positive impact on fiscal consolidation, which is essential for Slovenia to create a stable macroeconomic framework as a basis for sustainable development. However, economic development must also pursue the goal of reducing the environmental burden, and the measures taken towards more efficient use of energy and commodities should be considered an opportunity to increase productivity and competitiveness.
Priority measures should be focused on:
- Establishing strategic development priorities and improving the efficiency of the government and its institutions responsible for making and executing coordinated development decisions;
- Increasing productivity by boosting the innovative capacity of businesses, providing a business environment that fosters entrepreneurship, developing human capital supportive to the competitiveness of the economy and encouraging the more efficient use of digital technologies;
- Ensuring sources of finance for businesses by establishing an effective banking system, faster restructuring of enterprises, improving access to funding for small and medium-sized enterprises and developing the non-bank segments of the financial system;
- Improving the governance of state-owned enterprises and restructuring their ownership;
- Continuing fiscal consolidation through more permanent measures for reducing the structural deficit, particularly in order to ensure the fiscal sustainability of the pension system;
- Adjusting social protection systems to the ageing population, establishing a comprehensive system of long-term care, improving the efficiency of the health system and strengthening its preventive activities;
- Improving the system of labour market flexicurity in order to improve the efficiency of labour force allocation and reduce labour market segmentation;
- Reducing environmental pressures through the more efficient use of energy and raw materials and a transition to sustainable mobility.