Slovenia was, like many countries, affected by the banking crisis, with both investment and foreign demand slowing through 2009. Recovery greatly depends both on exports and on the success of government policies in supporting growth. On the plus side, Slovenia has made a largely successful transition since independence from the former Yugoslavia and there are relatively few serious internal and external security challenges. Relations with Croatia, hitherto strained due to a longstanding sea border dispute, began to thaw in September 2009 when the Slovenian EU parliamentary committee voted unanimously to unblock the veto on Croatia's negotiations to enter the EU. In November the two countries signed an agreement to settle the dispute through arbitration.

Severe cuts to annual defence spending planned for 2007-2012 will mean Slovenia will probably be unable to meet the requirement of all NATO member states that 2% of GDP be allocated to defence in the years up to 2014. A reduction in the 2009 defence budget from EUR608mn, after two rounds of reductions, to EUR589mn will affect procurement levels for equipment urgently needed to continue army reform and modernisation. Expenditure has mainly focused on enhanced air defence systems and transport, craft for rapid reaction and port defence. The government has been forced to put a contract made with the Finnish company Patria for 135 armoured modular vehicles (AMVs) on hold, pending renegotiation,. Either the numbers ordered will be reduced or equipment levels on the vehicles reduced. The cuts also mean that Slovenia will reduce the number of soldiers active in international missions to 470, although the defence ministry has said it wants to maintain the present quota to Kosovo until at least March 2010, and to focus overseas troops, especially the quota for Afghanistan, on stabilisation and reconstruction. In 2009 the Slovenian forces completed their participation in NTM-I, the NATO mission to Iraq to train local security forces.

Slovenia badly needs to seek export markets for its defence industry. Accession to NATO in 2004 may, however, have encouraged purchases of minor equipment in order to enhance capability in communications and air defence, although the army's wishlist includes many other types of vehicles and equipment.