The Slovenia Times

New Pension Reform on the Way

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Addressing MPs at the start of the regular parliamentary session, Bratušek rejected the assessment by an MP of the opposition Democrats (SDS) that the state of the pension purse was "critical", and his concerns about the new Slovenia Sovereign Holding (SSH) bill.

Marko Pogačnik suggested that the bill would put the pension purse at risk by folding into SSH the Pension Fund Management (KAD) a 34.5% stake held in insurer Zavarovalnica Triglav by the pension purse manager.

He argued that the situation was being made worse by the government's budget policy and the economic turmoil.

The prime minister ruled out the possibility that the solutions in the new SSH bill would in any way undermine the stability of the pension purse as SSH would also assume KAD's obligations towards the pension purse.

Bratušek also noted that her government had secured an extra EUR 140m to maintain the stability of financing of the pension purse, thus covering the "hole" that she blamed on the previous government.

Jožef Horvat of the opposition New Slovenia (NSi) challenged Bratušek over demands made by employer organisations in a document calling for breathing space for the economy.

The prime minister responded that it was necessary to look for measures that would have the least negative impact on growth while still enabling fiscal consolidation.

She said that the government had technically prepared the bad bank so that transfers of non-performing loans from banks could begin, pending the results of stress tests.

"It's the restructuring of the banking system and banks starting to finance companies again that will help the Slovenian economy the most," she said.

She also pointed to two bills aimed at facilitating company delaveraging, which she said were being coordinated with the International Monetary Fund and the European Central Bank.

Bratušek also announced an evaluation of the effects of the latest reforms of the pension system and labour market for this year.

"If the results are not what your government projected, fresh talks will have to start," the PM said in reference to the SDS-led government. She also announced that a health reform would be presented shortly.

Bratušk said she planned a meeting with the opposition even before the presentation of the austerity budget for 2014 after MP Horvat recommended her to invite the opposition to help solve the crisis.

The PM also told parliament that her party Positive Slovenia (PS) was opposed to unilateral measures affecting the minimum wage and that discussion about potential cuts began in public before any agreements on the matter had been reached.

She commented on the measures designed to crack down on tax evasion and grey economy, explaining that 14,000 inspections had been conducted mainly at bars and restaurants since a special computer program was introduced in July and that results were very good.

Inspections will continue in other lines of business and official results will be available in November. If these are not satisfactory, the government will introduce tax-certified cash registers, Bratušek said, announcing that the inspectors' powers would be expanded.

She was upbeat that the fight against informal economy could contribute to fiscal consolidation, arguing that her government was the first to take on the problem seriously.

"We are extremely serious about the fight against grey economy. A new bill on illegal work is expected to be passed by the end of the year and damages for illegal buildings are planned, as well as increased oversight of illegal logging, control over food safety and quality and other measures," Bratušek said.

She also announced the launch of a one-stop shop for foreign direct investment, potential new incentives and removal of administrative barriers. The government would have a list of approvals to be simplified or scrapped ready within a month, which would make procedures swifter.

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