International review of approaches to tackling child poverty: Slovenia

Introduction

In comparison to other EU and OECD countries, Slovenia has one of the lowest child poverty rates and is an interesting example of a country that has seen fluctuation but has not reached the higher levels of child poverty seen in other nations. Following independence in 1991, Slovenia initially had low levels of child poverty that were similar to those seen today. However, this shifted during the Eurozone crisis, which lasted from 2009 to the mid-2010s and affected Slovenia’s economy significantly in comparison to other Eurozone countries. As a result of Slovenia’s worsening economic climate, child poverty rates in Slovenia peaked in 2014 at nearly 15%. However, just six years later, this number had fallen below 10%.

In this case study, we consider the key factors and interventions that facilitated this rapid decline in child poverty rates in Slovenia, as well as the important economic, political, social and cultural context behind them. We find that Slovenia has historically adopted a preventative, rather than reactive, approach to tackling child poverty, as evidenced through their robust social security system and labour market policies.

Slovenia’s history

Slovenes voted for independence from the Socialist Federal Republic of Yugoslavia in December 1990 and became a fully independent capitalist state by 1991. Unlike other former Yugoslav republics, Slovenia experienced a smooth transition to a market economy. Slovenia joined the Council of Europe in 1993 and the European Union (EU) and the North Atlantic Treaty Organization (NATO) in 2004. In 2007, Slovenia switched from the Tolar and adopted the Euro and also became a member of the Schengen Area. By 2010, Slovenia had joined the Organisation for Economic Co-operation and Development (OECD).

Slovenia’s constitution established the country as a democratic republic and parliamentary democracy. The bicameral parliament consists of the National Council and the National Assembly, with the latter wielding significantly greater decision-making power. The National Assembly performs key parliamentary functions, including constitutional amendments, managing the state budget, and appointing the Prime Minister, President, and Vice Presidents.^{[16] [17]} Slovenia’s government is highly centralised, with local government holding very limited authority – the country’s 212 municipalities mostly manage local services such as schools, utilities and infrastructure.^{[18] [19]}

Developing an independent state

Slovenia is one of six republics that once made up the former Socialist Federal Republic of Yugoslavia and inherited a legacy of pro-redistribution policies. After gaining independence in 1991, Slovenia established itself as a democratic state and market economy, yet it also retained a robust social security system that emphasised universality and income redistribution. Child allowances, universal healthcare, unemployment insurance and state pensions are among the social security provisions Slovenia inherited from Yugoslavia.^[20] The constitution guarantees citizens’ rights to social protection and family support, explicitly outlining the rights of the child and guaranteeing them special protections against economic, social, physical and mental abuse or other exploitation.^[21]

Early laws such as the Social Security Act (1992), the Health Care and Health Insurance Act (1992), and the Pension and Disability Act (1992) were central in creating a welfare state that continues to be upheld today.

Despite the rapid reduction in child poverty rates seen in the last decade, Government interventions have taken a preventative rather than reactive approach when it comes to child poverty. Slovenia's social security system, along with its constitutional commitment to protecting families and children, has had a positive impact on reducing child poverty.

Economic development trajectory

After gaining independence, Slovenia followed a gradual approach to economic reform.^[22] The early 1990s and 2000s were notable for low levels of child poverty, a picture that started to change in the 2010s as the global financial crisis and subsequent Eurozone crisis led to strict austerity measures, but which ultimately remained comparatively lower than other countries.^[23] These led to a change from universal social security and family allowances to hyper-targeted, means-tested benefits.^[24]

The cuts to family allowances were the first of their kind since Slovenia’s independence and, as a result, political tensions rose. Workers, students, pensioners, and public and private sector trade unions organised anti-austerity protests and strikes. By 2019, most austerity measures had been reversed and child poverty rates were below pre-crisis levels.^[25]

Tackling child poverty in Slovenia

Slovenia has always prioritised child poverty prevention as part of its broader social protection system and constitutional commitment to children’s ‘special protection and care’.^[26] Additionally, Slovenia adheres to EU-wide commitments to reduce child poverty^[27] and, in 2023, submitted its National Action Plan in line with the European Child Guarantee. This EU initiative, launched in 2021, aims to lower the At Risk of Poverty and Social Exclusion (AROPE) rate across the EU and ensure that children facing poverty have access to key services^[28]. Slovenia’s policies remain grounded in a strong tradition of social security and family benefits, with child poverty being considered across policy areas such as welfare, education, and employment.

Slovenia’s approach to child poverty remains universal in design but with targeted elements, ensuring that families on the lowest incomes receive additional support. Child benefits, income support, and subsidised Early Childhood Education and Care (ECEC) and school meals remain central to the country’s response to child poverty. Additionally, Slovenia’s income support scheme, unemployment insurance, and generous maternity, paternity and parental leave benefits help reduce the financial strain on families and prevent child poverty from worsening.