The new talks come after the previous government failed to find common ground with the unions on a 5% cut in the wage bill. It had insisted that the savings be implemented with either wage cuts or layoffs, but the unions rejected the size of the proposed cut.

The government, whose team will be headed by Interior and Public Administration Minister Gregor Virant, has not disclosed its negotiating position, but Virant said "linear measures will be needed" considering that the budget for 2013 is based on the assumption of a 6.4% reduction in the public sector wage bill.

Almost half of the budgeted cut has already been implemented as a result of the 2012 act on the balancing of public finances, which leaves EUR 158m in savings to be found for the remainder of the year.

Virant suggested the government wanted to find a solution that would not be radical, while adding that layoffs could not be discounted if agreement is not reached on a pay cut.

Trade unions made it clear last week that the talks would be tough, with the Coordinating Committee of Public Sector Unions saying that no additional cuts were acceptable.

Virant said the goal was to reach agreement by 10 May so that the measures could be implemented by 1 June.