We have resolved open issues with three of Slovenia’s neighbours, which has resulted in excellent relations with these countries. We want to achieve the same with Croatia. The inability and unwillingness to act constructively and with respect in closing open issues is casting a shadow over our relations.The primary goal of Slovenia’s foreign policy is to ensure peace, security and prosperity, as well as to work towards a strong European Union and a well functioning multilateral system, says H.E. Ms Smiljana Knez, Slovenian Ambassador.
Foreign policy always begins with good neighbourly relations, notes the ambassador. “This has always been our top priority. We have resolved open issues with three of Slovenia’s neighbours, and I can say that such an approach has resulted in excellent relations with these countries. We want to achieve the same with Croatia.”
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What are the main characteristics of Slovenian-Croatian bilateral relations?
Relations are complex and intensive, with a lot of potential for improvement. On the one hand, there is good economic cooperation, rich cultural ties, and intensive cross border contacts. On the other hand, there are open issues that prevent the intensification of these relations and prevent other forms of cooperation.
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To what extent has the European integration process influenced relations between the two countries?
The European integration process offers great transformative potential. Some countries use this better than others do. The ultimate goal is to achieve fully functioning institutions for the protection and promotion of democratic standards. The European integration process should be led and navigated in a way that prevents backtracking.
Slovenia joined the EU eleven years before Croatia. Our country not only supported the Croatian candidacy politically, but also provided technical expertise, and shared experience and lessons learnt. We regret Croatia’s attempts to unilaterally draw the border between the two countries at the time of EU accession negotiations. At that point, Slovenia had to respond. We agreed on a compromise, and that compromise was the Arbitration Agreement, concluded and signed with the help of the EU , more specifically the European Commission. The Arbitration Agreement allowed Croatia to join the Union; at the same time, it obliged our neighbour to respect the ruling of the Arbitral Tribunal. We expect Croatia to do so.
The fact that both Slovenia and Croatia are members of the EU makes business cooperation somewhat easier.
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In what way do the two countries common economic interests unite them? What is your assessment of economic cooperation; which segments are most developed, and in which areas could cooperation improve?
That is a very good question. Trade between Slovenia and Croatia is important, close to 5 billion euros. Croatia is Slovenia’s fourth-biggest trading partner, while Slovenia is Croatia’s third-biggest (after Germany and before BiH).
There are many investments as well. I am proud to say that most Slovenian investments have been in regions that are less popular with other foreign investors, and usually mean a lot to the local population. One example is TLM Šibenik, bought by Impol. As is well known, around 1.4 million Slovenians visit Croatia every year, thus significantly contributing to good tourist seasons there. What is less known and really should be pointed out, is the good cooperation of both countries in third countries.
In recent years, Slovenia has enjoyed stable and rapid economic growth, at 5% annually. This growth is based on exports, industry and technology. Areas where Slovenian companies and research are particularly strong are artificial intelligence, blockchain and e-mobility. At the same time, these are areas where we see potential for future cooperation with Croatia.
When we focus on attracting more visitors, we promote Slovenia as “Green, Active and Healthy”; when we focus on attracting more businesses, we promote ourselves as “Green, Creative and Smart”. These slogans are highly evocative, and show the direction our country is taking.
I wish to underline the role of the SLO-CRO Business Club. I am very proud of their work and happy about our intensive cooperation.
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Apart from developed economic relations, what makes you optimistic about cooperation between the two countries?
It is my role as ambassador to be an optimist and to do the utmost to realise this optimism. The inability and unwillingness to act constructively and with respect in closing open issues is casting a shadow over our relations. As an embassy, we are doing our utmost to minimise the effects of open political issues on economic, cultural and people-to-people relations.
There are many positive stories and cases of excellent cooperation with Slovenian partners all around Croatia. Local politicians and the media highly appreciate them, as well. Still, I am somewhat disappointed that these good stories do not make headlines at the national level.
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The issue of the border in the Gulf of Piran, as well as certain open economic issues, like the one with Ljubljanska Banka, loom over political relations between the two countries. What concrete steps need to be taken to address these issues, because it seems that no one is willing to change their position?
To be clear: the border issue, now resolved with the Arbitral Award, concerns the whole border – the maritime and land boundaries.
To begin with, full respect for the principle of the rule of law would change a lot. We need to build confidence and to start making serious attempts to resolve these outstanding questions. The Arbitral Tribunal ruled on both the land and maritime boundaries. Slovenia has taken all the necessary measures to implement the Award on its side. The Final Award has been issued and needs to be implemented. Slovenia is ready to discuss its implementation with Croatia. When you ask about concrete steps – this is the first concrete step to be taken by our neighbour.
Rule of law is the key to the solution, also when it comes to LB/NLB issue. Slovenia respects the judgements of international courts and tribunals and duly fulfils its obligations. In line with the pilot EctHR judgement in the Ališić case (regarding LB foreign-currency deposits), Slovenia paid more than 150 Million EUR to the savers of LB Main Branch in Zagreb in last two-years. Croatia on the other hand, continues to violate the treaties concluded between the two neighbours – among them the Memorandum of Understanding (signed in Mokrice in 2013), when it comes to foreign currency savings transferred to ZaBa and PBZ. Furthermore, Croatian courts proceedings related to LB claims towards Croatian companies were not concluded in 25 years (!). Related to this issue Slovenia lodged an inter-state procedure against Croatia before the EctHR in Strasbourg in 2016 and we hope for a favourable outcome.
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How much can Slovenia’s experience contribute to the faster accession of candidate countries?
Slovenia is one of those EU Member States that strongly advocates an open door policy for the EU and NATO. Having said that, it is important to underline the responsibility of aspirant and candidate countries themselves to meet the criteria and fulfil their obligations. In the past, Slovenia has been providing expertise and technical assistance; our country will continue along this path. Without the Western Balkan countries, the European Union (and NATO) cannot be considered a truly complete community.