In early September, the Slovenian ten-year bond yield peaked above the 7% mark with the spreads over German bunds as high as 5.64 percentage points.

The yield fell below 5% soon after the start of the new year. While part of the trend can be attributed to the calming of the situation in the eurozone, the Finance Ministry recently pointed to the decision of the Constitutional Court to ban referenda on legislation setting up a bad bank and a sovereign holding.

Moreover, trade unions have withdrawn their initiative for a referendum on the implementation of the 2013 budget, which they opposed because of spending cuts in the public sector.