Veto on Real Estate Tax, Budget Implementation Act Expected
Both motions were filed by the same group of councillors representing local communities. They believe the real estate tax will erode the funding of municipalities while the borrowing planned for the coming two years will lead Slovenia to bankruptcy.
They contests a provision that would allow Slovenia to borrow EUR 10bn next year, as they believe this will render the country incapable of paying its annuities and interests.
The real estate tax would reduce the competitive edge of Slovenia's entire economy, the group said. They pointed out that the tax reduced municipalities' funds.
The group moreover opposes a provision stipulating that proceeds from the sale of the state's shares in company should be used to spur the economy. They believe the country's debts should be repaid first.
If the National Council vetos the two documents, the National Assembly will need to muster a absolute majority of 46 votes in the 90-member chamber to override it.
However, if the real estate tax is passed despite the veto, the law will face another hurdle soon, as the Koper city council tasked Mayor Boris Popovič on Monday to launch a constitutional review of the real estate tax.
What is more, a petition against the tax has been signed by 75,000 people in two weeks. The petition proponents have also announced a constitutional review.