Hungary and Slovenia [print sheet]
Last updated: 20/08/08

Hungary and Slovenia were among the former Communist countries that joined the European Union on 1 May 2004. Both are central European countries that share a common border. Hungary also borders Slovakia, Czech Republic, Romania, Croatia, Serbia, Austria and Ukraine. Meanwhile Slovenia, which was formerly part of Yugoslavia, has borders with Austria, Italy and Croatia. The two countries were at the forefront of the move from Communism to liberal democracy in central Europe and have since made a very successful transition to the market economy.

Communist rule in Hungary ended in 1989 when the Hungarian Communist Party voluntarily gave up power under pressure for political reform. The Third Hungarian Republic was declared on 23 October 1989 and free elections were held in 1990, marking the start of democratic government in the country. Hungary quickly developed a strong party system and has had an orderly transfer of power between the centre-right and centre-left. The key aims of the Hungarian government have been to develop a more open, liberal economy and to forge closer links with western Europe. A major step forward was achieved in 1999, when Hungary became a member of the North Atlantic Treaty Organisation (NATO). This was followed by EU membership in 2004.

Slovenia was the first republic of the Federal Republic of Yugoslavia to break away, when it declared its independence in June 1991. While the rest of the federation collapsed into ethnic civil war, Slovenia escaped following only a very brief conflict. Slovenia was recognised by the United Nations (UN) in May 1992. In the years following independence, Slovenia established a successful liberal democracy that pursued a policy of steady economic reform. Slovenia succeeded in securing membership of NATO and the EU in the same year - 2004.

Both countries are representative parliamentary republics. In Hungary, the Prime Minster is the head of the executive and sponsors legislation. The current government is led by Ferenc Gyurcsány of the Hungarian Socialist Party. However, following a failed referendum, in March 2008 a minor party pulled out of Hungary's coalition government, blaming the Prime Minister for refusing to undertake economic reforms. As a result the Prime Minister leads a minority Socialist government, which could make governing more difficult. The President, currently László Sólyom, is elected by the legislature for a term of five years and has a mainly ceremonial role. Hungary has a single chamber Parliament (Országgyulés) with 386 members. It has the power to initiate legislation.

Slovenia is a parliamentary republic where executive power is shared between the President, currently Janez Drnovšek, and the Prime Minister, currently Janez Janša, leader of the Slovenian Democratic Party. The Parliament has two chambers. The 90 member National Assembly (Državni Zbor) is directly elected and appoints the 40 member National Council (Državni Svet).

Membership of the EU was an important political goal of both these countries. Having moved away from the Communist system, both made strong efforts to distance themselves from eastern Europe and to become more integrated with the West. In particular, they made efforts to identify themselves as central European countries - alongside Austria and Germany - rather than as part of the Communist sphere of influence. 70% of Hungary's trade is now with the EU, for Slovenia the figure is 66%. They have made significant attempts to make themselves more like other European countries, particularly by pursuing a programme of privatising formerly state owned companies, although this process has been slower in Slovenia.

Both countries are now aiming for greater participation in EU projects. For example in December 2007 both countries became part of the Schengen zone enabling free movement across national borders. Slovenia also held the Presidency of the European Council for the first half of 2008. When they joined in 2004, both counties did not adopt the Euro immediately, although Slovenia subsequently adopted it on 1 January 2007. This involved maintaining strong control over inflation and borrowing. Hungary is currently trying to meet the convergence criteria.

• The majority of Slovenes work in manufacturing jobs, with the exports to the EU making up a significant part of their market.
• Both Hungary's economic growth has slowed somewhat since its 4.5% level in 2005; it is estimated to be 2.4% for 2007. Slovenia enjoyed 3.9% in 2005, which rose to 5.7% for 2006.
• Hungary continues to have serious difficulties with employment: only 57% of the population is involved in paid employment.