document: THE war in the former republics of Yugoslavia is forcing Slovene enterprises to find alternative trading partners among European Community countries as a means of compensating for lost markets in the region . However , Slovene officials warn that capital inflows will not increase unless Slovenia re-establishes trade links with its southern neighbours . Until 1990 , over 30 per cent of Slovenia 's exports were with the former Yugoslavia , while about 70 per cent were divided between Comecon , the now defunct socialist trading block , and western European countries . But following an embargo by Serbia on Slovene imports in 1990 , and ensuing war in neighbouring Croatia last year , Slovene exports to the former Yugoslavia have fallen to 15 per cent of that previously . The loss of markets in the former Yugoslavia , and the war , has led to a sharp drop in industrial production , which last year fell by 15 per cent , and will fall a further 12 per cent this year . Unemployment has risen to 101,000 , up from 9 per cent to 11 per cent of the labour force . However , inflation is falling thanks to a strong monetary policy implemented by Slovenia 's central bank . Inflation was running at 25 per cent a month last October , but by April it had fallen to 5 per cent . Mr Feri Horvath , head of Slovenia 's Chamber of Commerce , said Slovenia , which declared its independence last June , must seek new markets because the republic is too small to be able to attract large amounts of foreign investment to foster growth . Renault , French car manufacturer , which assembles cars in Slovenia , and Siemens , German-based mechanical and electrical goods maker , which has a joint venture with Iskra , Slovenia 's electronic and telecommunications manufacturer , have used Slovenia as a base for exporting to other parts of Yugoslavia , as well as to western Europe . ` We have recently signed bilateral trade agreements with Croatia and Macedonia , ' said Mr Horvath . ` We want to normalise relations with the other republics , ' he added . In the meantime , Slovene enterprises , particularly those in the furniture , electronics , paper , and white goods sector , are exporting to European Community countries . Exports for the first quarter amounted to Dollars 941m -LRB- Pounds 513m -RRB- , and imports totalled Dollars 752m . Last year , total exports of goods reached Dollars 3.9 bn , and imports , Dollars 4.1 bn . ` Our enterprises are beginning to find new markets , ' said Mr Horvath , adding that Germany , Italy , France and Austria are now Slovenia 's main trading partners . Mrs Vojka Ravbar , Slovenia 's deputy foreign minister , who earlier this week headed a trade delegation to the UK , said enterprises will have to become even more competitive after privatisation . Parliament is now discussing a privatisation bill .
extractive_keyphrases: slovene enterprises slovene officials capital inflows slovenia former yugoslavia slovene exports independence foreign investment trade links european community countries