The Slovenia Times

GZS leadership warns against planned government management


Presenting a macroeconomic analysis of the coalition agreement, expert in international economy Anže Burger of the Ljubljana Social Sciences Faculty said that the many planned measures with a negative impact could completely annul the effects of the positive measures.

Burger believes that the much debated tax on capital gains could mainly affect blue-collar workers, because they are the easiest to replace through automation.

"Studies have shown that higher tax on profit reduced employment and aggregate activity as well as economic growth ... Raising the tax by a euro reduces the wage bill by almost half a euro," Burger said.

He also told business executives that they should not accept the government-enforced division between labour and the capital. "We're all in the same boat and if the company is doing well, its employees are doing well."

Gorjup said that certain measures proposed were not in line with global macroeconomic forecasts. He labelled them as overly optimistic given the cuts the government plans in the coming years.

"Nobody wants the kind of measures we experienced during the 2009 crisis ... Instead, we should systematically prepare for a possibly changed macroeconomic situation by introducing measures that will not have negative impacts but will be anti-cyclical," Gorjup said.

He believes the state's finances should be balanced and the current level of investment in infrastructure should be at least preserved while maintaining a sustainable wage growth.

Slovenia should look up to countries such as Austria or Germany, which have always been well prepared for crises rather than creating a "kind of European Venezuela", the GZS head said.

According to GZS director general Sonja Šmuc, the chamber will strive to set up very close contacts with the government, parliament and all political parties by the end of the year to present them its views.


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