Mojmir Mrak

The 2007–13 Financial Perspective: Domination of National Interests

This article confirms the validity of the hypothesis that national interests were the driving force behind the process and outcome of negotiations for the EUs next financial perspective for 2007–13. The hypothesis is tested by comparing hypothetical coalitions based on quantified national interests (partial net budgetary balances) and the actual (documented) coalitions. Based on these results, the article also discusses implications of the ‘net balances problem’ for the 2008/09 EU budget review.

Trade Reintegration of Southeastern Europe : The Role of Slovenia

This paper analyzes economic cooperation between Slovenia and the countries of the former Yugoslavia. We find the region still highly unstable and bearing a high trade deficit that may prompt the governments in the region to put restrictions on trade. In order to secure exports markets, a number of Slovenian firms are actively drawing foreign direct investment (FDI) into the region. We analyze this increased investment activity in some depth, combining survey and accounting data of Slovenian major investors into the Southeastern European (SEE) region in order to reveal their motivation for FDI. We find that, so far, trade-promoting rather than efficiency-seeking or resource-seeking motives are the driving force behind this increased investment activity. Slovenian firms are predominantly oriented toward increasing sales to the region from their Slovenian headquarters rather than toward setting up SEE production facilities in order to exploit local comparative advantages. The rationale for this is the still too-unstable political and economic environment of the SEE region, the low financial discipline of local customers, and the still underutilized resources of Slovenian-headquartered firms. Trade promotion might be a short-term strategy of Slovenian firms; in the longer run, however, we find some evidence in support of efficiency-seeking and resource-seeking motives.

Macroeconomic and Financial Absorption Capacity of Turkey for the Use of EU Structural Funds

The main objective of the paper is to assess macroeconomic and financial absorption capacity of the EU candidate country Turkey for the use of preaccession funds in the period before the country will join the European Union as well as for the use of structural action funds in the period following its accession to the European Union.

Communal Infrastructure in Slovenia in View of Its Accession to the European Union: Sector Review, Investment Needs, and Policy Priorities

Efficient, reliable, and user-oriented public utilities are an important component of a well-functioning market economy because they have a pervasive influence on the whole economy. The quantity and quality of economic infrastructure services are therefore an important determinant of a countrys overall productivity and output. The strategic objective of developing the communal infrastructure in Slovenia is to move toward a reliable and cost-efficient provision of conununal services that takes into account security of supply and the use of economic instruments. Policy priorities aimed at achieving this objective also include systematic actions to reduce pressures on the environment and to protect air, water, soils, and natural systems, with precise goals for improved sanitation coverage, improved quality of water supplies, and safe storage and disposal of waste. These steps are expected to bring Slovenia gradually in line with the environmental policies of the European Union (EU) and to meet the countrys obligations under international environmental agreements.