Lisbon Agenda Implementation: the Example of Slovenia unemployment, although the share of long-term unemployed is still high. The low employment rates of the elderly and high youth unemployment are a particular cause for concern. The situation in the labour market is still not satisfactory as regards employment although some progress has been made. Part-time employment represents the biggest unused potential where flexibility and employment could be enhanced. Slovenia has recorded very positive developmental results in the areas of the modern welfare state and higher employment. Slovenia belongs to countries with favourable balances in the labour market and the social protection system. It has also performed relatively well in the areas of living standards, risk of poverty and income inequality. Regarding sustainable development, Slovenia scores around the EU average in terms of integration of environmental com­ponents into economic development. The biggest burdens for the environment are energy intensity and the high consumption of nitrate fertilisers per unit of agricultural land. Table 2. Basic macroeconomic and social policy facts • Stable growth rate of around 4% without excessive public or external deficits • Inflation brought down below 2.5%; ready to enter euro-zone by 2007 • Moderate wage growth(below productivity increase) based on agreement between social partners • Below EU-average in unemployment rate(SLO: 6.8%: EU: 8.7%), long-term unemployment rate(SLO: 3.4%: EU 4.7%), at-risk-of-poverty rate after transfers(SLO: 10%: EU: 15%), inequality by income quintile share ratio(SLO: 3.1; EU: 4.6) • Measures foreseen to lower public expenditure share(by 2 percentage points until 2008), to eliminate structural public deficit(by 2010); • Goals set to increase spending on R&D(3% GDP by 2010; now 1.6% with 60% financed by industry) and total spending on tertiary education(2% by 2010; now 1.3%) Source: author's compilation LISBON STRATEGYAND SLOVENIA In a competitive environment, Slovenia has to cope with a double challenge. On the one hand, as a member of the developed world and sharing in European development values, it has to accept to an equal extent all of the findings and challenges that apply to the whole of the EU. On the other hand, it belongs to the less developed part of the EU, which means that it has to set for itself the goal of bringing its economy to the level of the more developed countries. 99