The government of Slovenia has announced a package of measures it hopes will help avoid an EU bailout. The measures include a tax increase, a major restructuring of Slovenia's ailing banking sector, and a programme of mass privatisation.
Slovenia's mostly state-owned banking sector is suffering from mounting bad debts and the government has struggled to borrow money.
A "bad bank" will also be created to allow the banking sector to offload its bad debts. Meanwhile a total of 15 publicly-owned businesses will be sold off, including the second biggest bank, Nova KBM, the flag-carrying airline, Adria Airways, and Telekom Slovenia.
Announcing the measures, Ms Bratusek said she expected the budget deficit to rise to 7.8 per cent of GDP this year, but was forecast to fall to 3.3 per cent next year. She also said the VAT increase was decided on as the tax rise with the least impact on economic growth.
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8th Government session: Government adopts the National Reform Programme 2013-2014 and Stability Programme © 2013 Government of the Republic of Slovenia
© BBC - British Broadcasting Corporation
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