The Slovenia Times

Final Push for Austerity Bill

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The government bill, which was rejected once already, envisages a pay and pension freeze as well as curbs hiring and promotion, producing savings to the tune of EUR 300m.

Public sector wages were frozen in 2011 but the law expires at the end of the year, meaning that previously agreed promotions and pay rises would kick in.

Prime Minister Borut Pahor urged parliament today to pass the government bill as it is, or at least make minor tweaks if necessary to secure its passage.

It is better to take measures with a reasonable degree of sacrifice today; it may be too late to act in January, Development and European Affairs Minister Mitja Gaspari added.

The emergency bill, plus related amendments to the public finances act, would create enough room for the new government to take other measures fairly quickly, he added.

Pahor also warned against the consequences of not passing the law, saying that Slovenia may not have a serious debt and deficit problem but "the markets are starting to doubt the reform ability of our country".

In another attempt to secure passage, Zares deputy Pavel Gantar asked the college of deputy group leaders, which meets tomorrow, to put the bill on the agenda of the 17 November extraordinary session of parliament.

Gantar has held talks with public sector unions and deputy groups in parliament; the unions are split on the issue while the parties are willing to back the legislation only in agreement with the social partners.

Fearing that consensus may not be reached, Gantar said today that at least the bill could be pared down to freeze just the wages of public office holders.

Alternately, all parties could pledge not to touch public sector wages next year if the bill is passed, he said.

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