The Progress Report submitted by Slovenia to Brussels as the basis for this year's EU Commission report at the end of June is entirely positive, complying as it does with all three central membership criteria: the political criterion, the economic criterion and the ability to assume the obligations of membership. Fairly substantial progress was recorded in legal backlogs, which were reduced in all areas (with the exception of land-registry cases) by over 10 per cent last year. Progress was also visible in denationalisation. A total of 59.2 per cent of cases were decided, which represents DEM 2.7 billion.
Slovenia complies fully with the political and economic criteria for integration into the EU. Regarding the economic criteria, some deficiencies have been removed, mainly with respect to the liberalisation of capital flows. In 2000 and 2001 Slovenia thus accelerated its economic growth rate, strengthened economic stability and stepped up the construction of a legal framework for a well-functioning market economy, and the majority of structural and institutional reforms. The economy was also consolidated by the completion of privatisation in the enterprise sector and the beginning of bank privatisation. Regarding the ability to assume obligations, the majority of the basic acts that were missing were adopted, mainly in the area of the internal market, which constitute the basis for the establishment of the required administrative structures for the implementation of the acquis. Since last year's report, Slovenia has focused its attention on the adoption of those basic acts that were missing and which constitute a condition for progress to the next stage; special attention was therefore paid to employment and education, and to the establishment of institutions that were missing.
The adoption of legislation transferring the acquis to the Slovenian legal system is only the first step in the overall process of adjustment of legislation. Effective implementation of the acquis requires professional and effective state administration adequately equipped with staff, to which the government paid additional attention in the recent period. Almost all institutions for monitoring and implementing the acquis have thus been founded. Special attention was again paid to the education and training of state employees in the area of European affairs, mainly as part of the implementation of the Education Strategy adopted last year. Slovenia has chiefly been receiving EU aid as part of the Phare programme since 1992. In 2000 Slovenia became eligible for aid within the ISPA and SAPARD pre-accession programmes. Most (44 per cent) of the funds received so far have been directed towards institution building in all areas, which complies with the new Phare guidelines according to which at least 30 per cent of funds should be directed towards institution building and the consolidation of administrative qualification. Within the pre-accession strategy, Slovenia has paid special attention to twinning instruments. Projects have been taking place in all key areas: in the establishment of the external Schengen border, the internal market, public finance and supervision, preparations for future structural and cohesion funds, state aid, development of the agency for agricultural markets and rural development, the court of auditors, social and employment policies, and so on. Slovenia, receiving only 29 per cent of the entire pre-accession aid for candidate states, is thus among the most successful, since it has some 7 per cent of all operational twinnings whose effects are estimated to be positive. All twinning projects also play an educational role, which additionally contributes to the consolidation of administrative qualification.
In December 2000 Slovenia signed an additional memorandum extending the operation of the National Fund to the ISPA programme. The first ISPA programme year was an extremely successful one for Slovenia since, with a sufficient number of high-quality projects, it succeeded, as the only candidate country, in providing for the greatest possible level of available funds in 2000. The European Commission thus authorised a grant of almost 25 million euros for the ISPA programme, 20 million of which were for 2000.
This year the European Commission will draw up the fourth regular report on progress in integration into the EU for each candidate country separately, and submit it for discussion and adoption to the European Council. One of the bases is the Slovenian progress report.
The process of integration into the EU is in full swing. At the moment the majority of additional written inspections of the compliance of legislation adopted between 1 January 2000 and 31 December 2000 with the acquis are taking place. Slovenia estimates that all inspections will be completed by the end of July. Slovenia forwarded to EU bodies its negotiation starting-points for 29 chapters out of a total of 31. The temporarily closed chapters, for which further negotiations are presently not necessary, are: free flow of goods; free flow of services; free flow of capital; company law; fishing; economic and monetary union; statistics; social policy and employment; energy; industrial policy; small and medium-sized companies; science; education; telecommunications and information technology; culture; audio-visual policy; the environment; consumer and health protection; external economic relations and development aid; joint foreign and security policies; financial supervision.
Open chapters are: free flow of persons; competition policy and state aid; agriculture; transport; taxes; regional policy and the coordination of structural instruments; justice and home affairs; customs union; financing and the budget.
In all this Slovenia requires an extremely low number of transitional periods and exceptions. Slovenia believes that its relations with the EU are extremely good. Slovenia is implementing the provisions of the Europe Agreement correctly and is participating successfully in intense political dialogue between the EU and associated countries. Its activity within the joint foreign and security policies of the EU have been consolidated by participation in the Stability Pact for South East Europe. Bilateral political dialogue is also positive and trade relations continue to be positive. Slovenia wishes to participate in as many EU programmes as possible in the future, and will provide funds for this purpose.