The country must use the recent bond issue to press on with reforms at a fast pace, Rehn said following the presentation of the European Commission's economic recommendations for member states.

His comments come after the Commission revealed that it would not take action against Slovenia for macroeconomic imbalances for the time being, while also giving the country two more years - until 2015 - to reduce its budget deficit to below 3% of GDP.

Rehn said that Slovenia's actions in recent times have convinced the Commission to give it extra time to deal with the excessive deficit.

He said that since April the country had visibly sped up the pace of its reforms, while also making additional commitments for getting its finances in order.

The commissioner labelled as important developments the recent introduction of the fiscal rule in the Constitution and a constitutional amendment to ban referendum initiatives on fiscal matters as well as agreement on fresh pay cuts in the public sector.

By implementing the strategy in its reform plan and measures outlined in a letter by Finance Minister Uroš Čufer to the European Commission Slovenia should eliminate the imbalances and regain the trust of markets, which should spell the end of the recession, he added.