The decision comes after a recount of signatures filed by a trade union showed enough were collected to initiate the proceedings.

The recount was conducted after over 400 signatures filed by the Trade Union of Chemical, Non-Metal and Rubber Industries of Slovenia (KNG) demanding a referendum on the bad bank law had gone missing somewhere between the National Assembly and the Interior Ministry.

News of the disappearance triggered wide condemnation from opposition and coalition alike, and resulted in opposition calls for Interior Minister Vinko Gorenak and Virant to resign.

Meanwhile, negotiations continue between KNG and the Finance Ministry in a bid to avert a referendum which could derail one of the key government measures. Should the union collect the 40,000 signatures, the referendum could be held in January next year.

KNG's initiative is one of two referendum requests by trade unions against the government measures.

The other referendum, against the Slovenia Sovereign Holding, was filed by the Trade Union of Energy Workers, but the government later struck a deal with the union and the latter withdrew the initiative.