The Slovenia Times

Barroso Urges Slovenia to Get its Banking Sector in Order


Brussels is keeping a close eye on Slovenia's banking sector, Barroso said, noting that the Commission had warned Slovenia to strengthen its banking sector in May. "The Slovenian banking sector needs ambitious measures," he added.

While Barroso did not comment on today's general assembly of Slovenia's largest NLB bank, which confirmed a EUR 381m recapitalisation, Janša labelled the assembly as "successful".

He stressed that the recapitalisation the state-owned bank would meet the capital adequacy requirements set by the European Banking Authority. "This urgent step is now behind us," Janša said.

Asked whether Slovenia will be able to fix its banking sector without the help of European rescue funds, the prime minister said an answer could be given only after due diligence at Slovenian banks is complete.

With regards to the fiscal compact, which Slovenian ratified in mid-April but has so far failed to implement, Barroso said he expected Slovenia to meet its obligations.

"Lets hope there will be enough consensus for that", he said, referring to the lack of a two-thirds parliamentary majority to put the fiscal rule in the Constitution.

"Slovenia is facing numerous challenges," Barroso stressed, saying he was pleased to receive Janša's assurance that Slovenia would respond decisively to all such challenges.

Barroso added that outside the banking sector, Slovenia must also reduce its budget deficit and ensure long-term stability of its public finances.

According to Janša, Slovenia and the European Commission hold similar view regarding current issues in the eurozone. "We need to harmonize certain policies," Janša said, emphasising a stronger and more centralised oversight of financial institutions.

He noted on the topic that in the time of economic turmoil, Slovenia was better off having the euro, hence it was in its interest to preserve it.

Janša also agreed that the upcoming EU summit needed to focus not only on long-term measures, but also on measures that will solve current issues in EU members.

"The countries are in different position, but due to political and monetary interdependence we share the same fate in many areas," Janša stressed.


More from Nekategorizirano