Interview with Tanja Fajon, Deputy Prime Minister and Minister of Foreign Affairs, Republic of Slovenia

21 Nov Interview with Tanja Fajon, Deputy Prime Minister and Minister of Foreign Affairs, Republic of Slovenia

2021 was a special year, since Slovenia presided the Council of the EU over the second half of 2021. The last time it was during the financial crisis in 2008, which was a very challenging time; as well as 2021. What was essential for the Ministry of Foreign Affairs over the pandemic years? What was your main agenda and the tasks that you were tackling during this time?

I’m glad to start with EU related topics because I was myself, for many years, first, an EU correspondent and then European parliamentarian, so EU is very close to my heart. It was indeed the second presidency. That is always a challenge for a small country. But it’s also a huge opportunity if you run properly the agenda. Of course, a small country always inherits the EU agenda. But this time around, I was following the presidency with a bit of concern, because it was overshadowed by several things, especially by the very negative rhetoric by our prime minister on the social media, that also threatens, to a big extent, the narrative, the discourse in Slovenia; there were attacks on the journalists, attacks on the civil society. There was a deterioration of the media freedom, the rule of law and democracy. We were followed by the institutions as a country that had a strong political interference in the rule of law, in the judiciary, and in the media. It was the first time that I was, being a European parliamentarian myself, discussing in the EU institutions, about Slovenia as a problem.

On the other hand, I have to say that the presidency, on the technical level, was running smooth. That is why I regret it because we were always a story of a success, we had a challenging time, and if I look at the diplomats in Brussels and also the people in the ministries, they were really working well with all the dossiers that were on the table; at the technical level, they were full of successful stories. It was marked by an unprecedented pandemic situation and unexpected global developments. Including there was already mounting tensions on the Ukrainian border. That marked the presidency.

A Covid response was still needed, and Slovenia already wanted to build on the lessons learned from the pandemic and propose measures to increase the EU strategic autonomy, resilience and preparedness for future challenges. We managed to put the topic of resilience to crisis on the agenda of the EU institutions. That was the period. We were tackling the post-pandemic economic recovery, based on energy and digital transitions that were also one of the priorities of the Slovenian presidency. At that time, altogether, 22 national recovery and resilience plans were approved by the council, so first payments from the commission were also approved, to send the direct investments to the member states. We were tackling the usual business agenda of the EU that was really overshadowed by the pandemic and the recovery and resilience plans.

Slovenia’s Recovery and Resilience Plan is the framework in which the NextGen EU funds have been spent in your country. What have been the key areas of priority under this particular Plan? How did you develop these objectives? How is Slovenia benefitting from its partnership agreement with the EU?

The substantial EU funds for the recovery and resilience were, at that time of the pandemic and after the pandemic period, essential for the societies and for our economies. The idea of creating a common European financial instrument to address the economic and social fallout from the Covidcrisis was strongly supported by all the EU governments. The basic philosophy behind the allocation of these funds in Slovenia has always been to use the funding from the Resilience and Recovery Plan to strengthen the ability of our economy, and also public institutions such as a healthcare system. We had big challenges with the health-care system during the pandemic, especially with the public healthcare system, because it was almost on the collapse or the bankrupt; we had to withstand the large shocks and invest money in the healthcare system. That is how we were trying to adapt our National Plan.

The funding, which was over €1.8 billion decreased by €300 million as a consequence of higherprojected growth rate of Slovenia, and it was mainly channeled into the following areas: we looked into the future on how to boost our economy; that was green transition with investments to renewable energy sources and energy efficiency and circular economy, then digital transformation of the economy and public sector, – that was important – smart sustainable and inclusive growth, healthcare, and social security. These were priorities, and are still today, our priorities. It’s not only this Plan that is important financially, but how we are investing all the EU funds in the recovery of the country to boost growth and economy, to make business with an added value and promote jobs in green infrastructure and health environment.

You recently attended the 11th Annual Forum for EU Strategy in the Danube Region (EUSDR), where the issues of energy security and connectivity were discussed and highlighted in the joint statement from the Ministers. What are the priorities of the EUSDR? To what extent has this strategy been adapted in response to the current geopolitical context? How is Slovenia planning to diversify its energy supplies in the near and medium-term?

The war in Ukraine and the war in Europe affected us all, the whole world. We see it with high energy prices, we see it with food crisis, and we see it with instability and also the threat to the international law and order in the world. That is why we need partnerships with like-minded countries that are protecting the international law, peace and stability. For Slovenia, this is crucial. In our Constitution, it is stated that we want to have peace and dialogue of peace. We are a small country.

When you mentioned how to tackle the energy crisis, Slovenia was quite strongly dependent from the Russian gas and oil. We need urgently to diversify our energy supplies and to make prices for the winter sustainable. That is the short-term goal. We are, these days, signing the agreement for gas with Algeria for the next three years, so we are finding new ways of gas supplies to cut gas from Russia due to the Russian aggression in Ukraine. We cannot imagine supporting the economy for Russia’s regime as long as they run the war. Even the situation afterwards will not be business as usual.

But we are also forced, at the same time, to work, not only on diversification, but invest more on renewables. We have sun, we have water, and we can do much more on solar panels and on hydro energy power plants. That is what our future will have to be.

Talking about the EU strategy in the Danube region, this is important because it brings together 150 million people; it strengthens cooperation between nations, which is at a crucial time. The aim of the strategy is to find solutions to challenges in the Danube region. These challenges are environmental threats, transport connections, energy connections, and even socio-economic development, better coordination in education, as well as research and innovation systems. The strategy is adapting its work during the last year in the field of energy and in the field of social challenges.

The Ministry has argued in favor of integrating North Macedonia and Bosnia-and-Herzegovina into the EU, both of which are relatively close neighbours of yours. How strategic is the integration of the full Balkans region into the EU, and how is Slovenia supporting the accession process?

The integration is not complete without the Western Balkan countries becoming members of the EU family. But let me put it even with stronger words. With the war in Ukraine, we need a European continent even stronger than ever before. The Western Balkans is a very fragile region with a lot of economic political tensions, and a youth generation leaving their countries without proper future. We have to do and understand that the enlargement policy and the countries of the Western Balkan should not be left behind in the time when we are discussing about the EU perspective and the membership of Ukraine, Moldova and Georgia.

That is why we were, in the Slovenian foreign policy, strongly advocating not leaving the countries of the Balkans behind. We were pushing first to start the accession talks with North Macedonia and Albania. We were, in the last few months, as a new Foreign Minister myself, advocating to letting us deliver candidates’ status to Bosnia and Herzegovina till the end of the year, at the same frame we are doing to Ukraine and Moldova, let us think a bit out of the box to push a EU strong message to the countries, that we need you as you need us. We are also pushing for a visa liberalization for Kosovo, because quite often in the past, the EU enlargement policy was losing credibility, because once we were promising something – for instance, to North Macedonia, Albania or Kosovo, – and when they met the criteria we didn’t fulfill on our side. We have to be strong in our commitments and strong in our deliveries. I do hope that on the enlargement policy, we will do some significant step forward because this is the best we can do for our societies here in the region to be strong in the region. Then we can be also a strong and credible partner inside the EU. I see the enlargementpolicy being very beneficial to the EU on both sides.

Can you tell us about your main partners in terms of FDI inflow and to what extent are you trying to expand those relationships to attract more FDI into Slovenia? Also, recently, actually, I just read that Moody’s rating agency confirmed Slovenia’s credit rating as A3, which is going to be very beneficial for the attraction of the FDI inflow into the country.

Investors from EU countries dominate FDI in Slovenia. In 2021, foreign direct investments totaled €18.4 billion, which represents 35% of the Slovenian GDP; compared to a year before, 2020, investments increased by 10.4%. We can clearly see that last year there was no longer any investment restraint associated with the health crisis due to the Covid-19 pandemic.

Another trend to emphasize is that investments from the European countries are constantly increasing. At the end of 2021, no less than 79% of total inward FDI stock was accounted for by EU countries. The biggest investors among them being Austria, then Luxembourg, Switzerland, followed by Croatia, Germany, Netherlands, Italy, Cyprus, Hungary, and the UK. FDI from other EU countries lack much behind, but the share of EU countries in inward FDI stock in Slovenia, in the period 2011 to 2021, increased significantly and more than doubled.

Croatia and Western Balkan countries represent important economic markets for Slovenia. They are traditionally recipients of Slovenian FDI. In the Western Balkan region, we have many competitive advantages due to our common past, to the knowledge of business customs, geographical proximity and knowledge of languages, recognition of brands achieved in the past, and established business contacts. Slovenia’s proximity to the EU, and its traditionally strong economic ties and cooperation with Germany, Austria, Switzerland, Italy, France and Croatia are the main reasons for the domination of investors from these countries.

Could you please comment on the transatlantic relations with the US and how do you see the FDI inflow from the US?

We have a strong partnership with the US. We have mixed committees and we are working on different fields together. We see the US as our natural partner on many issues, but it’s not one of the markets that are traditionally strong for us. Slovenia is a very oriented economy, but our main markets are the European Union markets.

Slovenia is known in the EU as a fairly low-emissions country thanks to its nuclear, hydroelectric power generation capacities. Slovenia also is a quite innovative country. It became the first in Central and Eastern Europe to launch a Sustainability Bond. How do you see Slovenia taking a leadership role in the EU’s Danube region on sustainability issues in the future, and on which issues in particular can Slovenia’s voice be the most impactful in terms of sustainability?

Because of war in Ukraine, we are forced to be more ambitious on renewables. We can use it as an opportunity. We were in the past losing some opportunities. We still have the old coal mining industry, we have a nuclear power plant and we are having a political consensus to build a second block of nuclear power plants; we will most probably hold a referendum to have a larger agreementin the society. But this is all what we are searching to be as much as self-dependent on energy resources.

When we speak about sustainability, this is on the top of the agenda of the Slovenian government – green transition and sustainable development, focusing on faster deployment of renewables, in particular solar power. Green transition, however, must encompass a just transition; that means leaving no one behind. In the coal industry, while we are trying to phase out, we have to ensure that there is a fair transition to make all these valleys sustainable with workforce and with a green transition that is just and where no one is left behind.

Slovenia is making efforts to be sustainable in most of the policy areas. Within the Danube region, Slovenia can contribute in particular in the area of energy efficiency, decarbonisation in transport and in projects of circular economy. In the field of transport, major developments have been achieved in the area of promotion of public transport and micro mobility in urban areas. To make it very simple, we are a small country, a very green country with a lot of forest, a lot of clean water and sun. There is a great potential to be used to make our country more energy self-sufficient. We have quite some challenges ahead; also, some big strategic expert and financial thoughts on how to move this just transition in a faster speed.

Are there any other questions that you wanted to address?

I would like to point out as Minister of Foreign Affairs: it’s my first four months and I’m the first female foreign minister in the history of this country. I’m mentioning that because a lot of topics we discussed also include empowerment of women. I’m introducing in our diplomacy, also, a feminist foreign policy. I want to further modernize our diplomacy, so that it fits effectively and respond to geopolitical changes.

When I say that I am committed to lead a foreign feminist policy it is to make sure not only to achieve the gender balance as part of our foreign policy – we are on a good way, 40% of Slovenian ambassadors are women, women are almost half in high management positions, at the Ministry – but by feminist foreign policy I mean the empowerment of women in crisis, in wars, in the Women, Peace and Security Agenda, integrating a gender perspective in activities within security policy. All these topics are extremely relevant to make the voice of women stronger, and the voice of girls that are also affected by violence, war and economic instability. I’m proud to join the unformal group of countries that are getting larger and larger in the world. I’m quite excited about that. I’m now trying to develop the strategy, talking with a lot of female ministers and we are nicely putting a group together.

Also, in the light of our biggest project that we are running in the Foreign Ministry currently, Slovenia has a chance, again, to become a non-permanent member of the UN Security Council in the period of 24-25; we have a vote next summer. I see the big opportunity for our country to sit among the big powers of the world and run the agenda of the Security Council, being a small member that runs the strong Environmental Digital Agenda, the Peace Policy, and I see we can be a small country building the bridges and trust among the allies in the Security Council.