The Slovenia Times

Veto on Public Finance Act?


The debate in the upper chamber will be held at the initiative of a group of councillors who want to make it obligatory for the government to submit detailed recapitalisation plans to parliament for approval.

The government had proposed changes to the public finance act in order to establish grounds for state recapitalisation of banks immediately after the results of the stress tests are revealed, expectedly on 13 December.

As part of the operation, government would have full authority to dispose of EUR 4.7bn for recapitalising banks which are found by the stress tests to lack capital.

In the debate held by the National Assembly on 29 November, the coalition argued that a mechanism for speedy recapitalisation was needed to secure stability in the banking system.

But the opposition said that enabling such haste would lead to a lack of transparency in the operation worth almost EUR 5bn, an argument backed by the councillors who called for the veto.

Given the large amount of money involved, it is important that the operation is conducted transparently, the group of councillors said, adding that it did not oppose efforts to fix Slovenia's banks.

Even if the veto is confirmed today, the coalition is expected to use its control of the National Assembly to override it in a new vote requiring an absolute majority of the votes in the 90-seat chamber.


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