Monday, January 7, 2008

Cracks Appear in Slovenia's Model Facade

"The Slovenians began expressing their frustrations in late November, when around 70,000 people took to the streets in Ljubljana -- a massive demonstration for such a small country. In what was the largest rally since the Slovenians proclaimed their independence, trade unions, students and pensioners protested against the rising cost of living and demanded more social justice.

Slovenia's inflation rate of 5.7 percent -- the highest in the euro zone -- does give rise for concern. In early November, EU Commissioner for Economic and Monetary Policy Joaquín Almunia even felt the need to issue a public warning to Slovenia, a model economy until then. An inflation rate higher than 3 percent, Almunia said, sends 'a bad signal' to the countries next in line for Euro-zone membership."

Source: Business Week

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