According to Spilimbergo, "Slovenia needs to undertake additional fiscal adjustment over the medium term point to contain rising public debt and contingent liabilities and to calm unsettled financial markets."

In view of Slovenia's large output gap, IMF staff have noted in the past that a gradual approach would be appropriate, for example, adjustment of about 1 percent of GDP in structural terms annually, and full operation of automatic stabilizers should be allowed.

However, the planned measures of the stability and reform programmes go beyond this, Spilimbergo stressed.