The austerity budget cuts spending for 2012 by EUR 1.1bn over original plans, to EUR 9bn. Prime Minister Janez Janša told MPs yesterday this was the first step to recovery, which must be followed by measures to restart the economy.

The bill on the balancing of public finances, meanwhile, involves amendments to 45 pieces of legislation that will allow the government to cut spending by about EUR 500m this year and EUR 750m in 2013.

This is down from EUR 818m and EUR 949m, respectively, that the government originally wanted to save, but the figures are understandably lower, a result of seven weeks of intense talks with trade unions.