Slovenia's stocks shot up with its secession from Yugoslavia on annual, but then slumped with unease about the future. The European Community hesitates to recognize Slovenia and Croatia, for whom it brokered a peace plan, for fear of encouraging its own minorities. Slovenia is used to being considered prosperous and Western and is disillusioned at feeling poor and shunned. Slovenia needs to find new markets to replace Yugoslavian markets, which purchased a quarter of Slovenia's goods. Exports need to double to match European standards. A major motivation behind Slovenia's independence was to free itself from the "Yugoslav risk" that discouraged foreign investment.
Slovenia's stocks shot up with its secession from Yugoslavia on June 25, but then slumped with unease about the future. The European Community hesitates to recognize Slovenia and Croatia, for whom it brokered a peace plan, for fear of encouraging its own minorities. Slovenia is used to being considered prosperous and Western and is disillusioned at feeling poor and shunned. Slovenia needs to find new markets to replace Yugoslavian markets, which purchased a quarter of Slovenia's goods. Exports need to double to match European standards. A major motivation behind Slovenia's independence was to free itself from the "Yugoslav risk" that discouraged foreign investment.