Presenting the results of its review of national budgets of all member states on Friday, the Commission called on Slovenia to provide for "rigorous implementation" of the budget document.

While highlighting the lack of a margin for error, the review found that the budget is "forecast to deliver the recommended fiscal effort in 2014".

Presenting the findings, European Economic and Monetary Policy Commissioner Olli Rehn welcomed "determined action" by Slovenia to deal with key economic challenges, including budget consolidation.

"All in all, Slovenia has delivered effective action and has presented a draft budgetary plan within the rules but without any margin of slippage," Rehn told the press in Brussels.

As part of its annual budget surveillance, the Commission also concluded that the fiscal restructuring measures included by Slovenia in the Economic Partnership Programme amount to "limited progress" in the area.

The positive assessment of the budget is the second piece of good news for Slovenia from Brussels this week, after the Commission backed Slovenia's efforts to deal with economic imbalances in a separate report on Wednesday.

Rehn was generally upbeat about Slovenia's ability to deal with key economic challenges, including the banking sector, structural reforms and fiscal policy.

"The Slovenian government is taking very determined action in order to ensure the country will be able to turn its economic fortunes," he said.

While not wanting to delve into efforts to fix Slovenia's banks until the results of ongoing stress tests are available, he pointed to "decisive and effective action" in this area.

He also warned that the Slovenian government cannot rest on its laurels, reiterating a call for reforms of corporate governance at state-owned companies.

The Chamber of Commerce and Industry (GZS) responded to the positive assessment of Slovenia's budget by calling on key stakeholders in the country to reach a development deal.

It is clear that the action taken in recent months has been little more than "damage control", the GZS said, adding that it was now the time to think about measures to promote development.

A new development deal would facilitate the adoption of key changes, including structural reforms demanded by the European Commission, while helping to preserve the welfare state, Slovenia's leading business chamber said in a statement.

Meanwhile, two Slovenian economists expressed satisfaction with the Commission's assessment today, saying that that it represented a realistic and neutral view of the document.

Jože P. Damijan and Sašo Polanec both share the view that the document is not ideal, but said that it was an attempt to consolidate public finances.

While Polanec believes that more could have been done to cut spending on pensions and the public sector, Damijan said further cuts to public spending would hurt economic growth.

Damijan stressed that the Commission's assessment reflects the realisation that overzealous consolidation was causing recession in the eurozone.

The parties making up Slovenia's ruling coalition also hailed the assessment today, with Jani Möderndorfer of the senior coalition Positive Slovenia (PS) labelling it as confirmation that Slovenia "is on the right track".

The opposition remains unconvinced, however, with the Democratic Party (SDS) following up Thursday's view expressed by its leader Janez Janša that this was the most unrealistic budget in Slovenia's history by saying that the Commission was being courteous in its assessment.

"The reality will hit us sooner or later," SDS deputy Robert Horvat said in forecasting that the target deficit figure would prove impossible for Slovenia to achieve.

Responding to the criticism from the opposition, Polanec said that although the budget had flaws, claiming that it was unrealistic was over the top.