Mr Monti will stress the need for Slovenia to make the best use of its favourable economic situation to speed up the process of reform and of approximation of legislation. Substantial efforts are needed in view of the task ahead. There are specific legislative gaps concerning standardisation and certification, capital movements, insurance and indirect taxation. Moreover, more attention and resources will have to be devoted to enforcement structures to ensure that Single Market rules are applied in practice. Adequate training of the officials in charge of implementing the legislation is crucial in this respect.
Confusion also arises because of application in some areas of former Yugoslav mandatory regulations.
A joint declaration on cooperation in the field of customs and taxation is due to be adopted by Mr Monti and the Slovenian Minister of Finance, Mr Mitja Gaspari. Fully operational customs and tax administrations are essential for effective control of the EU's external frontiers. This issue is an important element of the Road Map and the Slovenian customs authorities have already prepared a strategy for the development of its customs administration until the year 2000 indirect taxation - Slovenia will probably confirm that new indirect tax legislation should be introduced by 1 July 1999 with no further delays. VAT system and excise duties system are actually indispensable prerequisite actions duty free shops - Mr. Monti will ask for a commitment by the Slovenian authorities not to create new duty free shops near the borders with Italy and Austria and to dismantle the existing ones. During his talks with Finance Minister Mitja Gaspari and Governor of the Bank of Slovenia France Arhar, Mr Monti will stress the importance of the reform of the banking and insurance sectors, as well as of strengthening the supervision authorities responsible for these sectors.