The capital market in Slovenia was restored upon independence, with the ownership transformation of social enterprises in the transition to a market economy. The primary capital market in Slovenia is underdeveloped, while the secondary capital market is inefficient and illiquid. The business and tax environment in Slovenia is not favourable to direct investment in securities, as savings in deposits prevail and companies use bank financing. According to the findings of the final report on the capital market enhancement and development in Slovenia, the Slovenian government adopted a development strategy that envisages the adoption of measures that would enable the capital market in Slovenia to achieve the emerging market status, which would strengthen the international recognition of the domestic market. The capital market in Slovenia is not attractive for foreign portfolio investment, as there are no conditions in place to encourage foreign institutional investors to invest. The capital markets union legislative project was presented in 2015 with a desire to realise the EU's long-term vision of achieving the integration of national capital markets of EU Member States. European economies would benefit greatly from a single capital market, as the fragmentation of markets along national borders halts the economic development of individual EU Member States. In 2020, a new action plan was adopted, which foresees legislative measures and initiatives to fully implement the free movement of capital in the EU through market integration.
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