Dealing with adversity: Both Slovenia and Croatia are difficult markets that are going through turbulent times
In a European Union that has been battered by the euro zone sovereign debt crisis, both Slovenia and Croatia — the latter, the European Union’s newest member state — are currently experiencing a severe economic depression. The governments of both countries are under enormous pressure to deliver — the reforms that have been initiated and the austerity measures that have been introduced have to take their countries in the right direction. The root cause of the problems facing the two countries dates back to the past, as the internecine Yugoslav wars of the 1990s damaged the region as an international player.
Currently, the investment environment in both countries is proving to be extremely difficult and controversial, as investors prefer to invest their money in safe-haven markets in western Europe and to avoid risky and small markets. If the reforms and austerity measures work, the investment environment in the two countries will be eased and the two countries will bec