Slovenia

despite its small size, this eastern Alpine country controls some of Europe's major transit routes

The Slovene lands were part of the Austro-Hungarian Empire until the latter's dissolution at the end of World War I. In 1918, Slovenia became part of the Kingdom of Serbs, Croats, and Slovenes, which was renamed Yugoslavia in 1929. After World War II, Slovenia joined Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, and Serbia as one of the constituent republics in the new Socialist Federal Republic of Yugoslavia (SFRY). In 1990, Slovenia held its first multiparty elections, as well as a referendum on independence. Serbia responded with an economic blockade and military action, but after a short 10-day war, Slovenia declared independence in 1991. Slovenia acceded to both NATO and the EU in the spring of 2004; it joined the euro zone and the Schengen Area in 2007.

parliamentary republic. Independence: 25 June 1991 (from Yugoslavia)

high-income EU and eurozone economy; high per-capita income and low inequality; key exports in automotive and pharmaceuticals; tight labor market with low unemployment; growth supported by private consumption and public investment, with risks from tight labor market and trade conditions; narrowing fiscal deficit and declining public debt