Government coalition in Slovenia agrees on fiscal rule bill

Government coalition in Slovenia agrees on fiscal rule bill


Review Hari Stefanatos

Following the agreement of the coalition parties on the bill implementing the fiscal rule of zero deficits, comes its submission to Parliament on Thursday for debate. The coalition party leaders also called for action in regard to the revelations of the controversial spending at a bad bank.

Slovenian Prime Minister Miro Cerar addressed reporters after the meeting with the coalition partners informing of the coalition’s agreement to back the said bill and refer it to Parliament, adding that “In the shortest possible time we will also be calling on other parliamentary parties to get at the table together to reach a consensus on the solution for the fiscal rule”.

This was the third meeting on the matter, with the first two meeting taking place on Sunday and yesterday, during which  Finance Minister Dušan Mramor presented a working version of the document to the three coalition parties ahead of a planned debate involving all parliamentary parties.

The proposal envisages the implementation of the rule in 2016 with a gradual phasing-in resulting in the full elimination of budget deficits in four to five years. The bill, however, needs a two-thirds majority to pass, creating the need for the coalition to try to get other parties on board with a meeting planned for next week.

Cerar also said that “we also plan a decisive response to the issue of the Bank Asset Management Company” (BAMC), referring to the leaked report by the Commission for the Prevention of Corruption highlighting high expenses for consulting contracts and executive pay, among other things.

The Slovenian PM revealed that he ordered Finance Minister Mramor to have a report ready on the matter within a week, after examining potential flaws in BAMC’s operations or conflict of interests, adding that the issue needs careful handling and deliberation, so as to avoid rush decisions.

Finally, Cerar reiterated that the privatisation of the 15 companies on the priority list continued and noted that the coalition also discussed legislation to be debated by parliament in December with several financial bills on the agenda.

(Source: Hari Stefanatos)