It seems like the EU financial crisis is not going away anytime soon but keeps deteriorating silently when the market hasn't found another hole yet. But here it is, Slovenia, a promising new blackhole for European Union right after Cyprus received 10 billion euro bailout package merely a few weeks ago. The previously praised "regional model of peaceful prosperity" of the Balkan has been hit with a rapidly engulfing banking crisis resulted from mismanagement of cheap and easy credit available after the country's admission to the EU. Moreover, a lot of Slovenian problems can be traced back to the failed trasition from communism to a fully functional market economy, which made its economy a crony capitalism until today. The rush for privatization of state-owned company has its effects felt today because it failed to eliminate the stranglehold of the government over the economy, and to ensure transparency. However, the young female new Prime Minister, Ms Alenka Bratusek, stays optimistic after Slovenia successfully raised $3.5 billion from issuing bond in the international market. Analysts remain very skeptical of the success, saying that it was attractive because of the high yield instead, given Slovenia was downgraded by Moody last Thursday to junk status.
On another aspect, the EU Commission released a report on Friday forecasting that France, Spain, Italy and Netherlands, four of the five largest eurozone economies, will be in recession through 2013.
Read more at: http://www.nytimes.com/2013/05/06/business/global/06iht-slovenia06.html?pagewanted=1&_r=1&ref=global-home
By Yen Do
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