Slovenia wants new Structural Deficit Calculation Methodology

Slovenia wants new Structural Deficit Calculation Methodology

Ljubljana, January 28, 2015/ Independent Balkan News Agency

Review Hari Stefanatos

During the eurogroup meeting where new guidelines for a more flexible use of European budget rules were discussed, Slovenian Finance Minister Dušan Mramor warned that the European Commission’s methodology for the calculation of the structural deficit reduction goals was faulty.

Mramor argued that the methodology of the calculation of the decrease in structural deficit in a given year when a general government deficit is below 3% was not relevant.

The reason, argued the Slovenian Finance minister, is that it produces wrong results. For example,  according to calculations based on this methodology, Slovenia’s potential growth this year is zero percent, with a relatively high unemployment rate, zero rate of inflation and more than 5% surplus in the current account of the balance of payments. All these paint the wrong picture.

Other countries also expressed similar views forcing the European Commission to examine the methodology in detail. Slovenia will push for changes as soon as possible on the matter.

(Source: Sloveniatimes)