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As originally planned, the holding would be incorporated with the transformation of the existing Restitution Fund (SOD) to manage all stakes held by the state in companies directly or indirectly, including those of the Pension Fund Management (KAD).

"We are implementing a stable system for the management of state assets that would not need changing with each new government," Finance Minister State Secretary Mitja Mavko told MPs as the general debate on the bill opened on Friday.

KAD would remain an independent legal entity within SSH and its assets would only be used to cover the needs of the pension purse. Still, the coalition Pensioners' Party (DeSUS) insists KAD remain completely independent manager of its assets.

The party's MP Ivan Hršak announced that the support of the deputy faction would depend on how much DeSUS's demands were taken into account in later stages of the law's passage.

The opposition voted against the motion. "The bill is bad and unnecessary as we already have a valid SSH law," Jožef Horvat of New Slovenia (NSi) said with Franc Bogovič from the People's Party (SLS) calling the solution flawed, projecting a series of problems ahead.

The opposition also lambasted the solution on the grounds that the government would take a full control of the SSH because it would put forward all members of the supervisory board alone.

The five-strong board would not include a single opposition representative, Democrat (SDS) Marko Pogačnik said, noting that the SSH would manage assets of the whole nation rather of the government alone.

In recent days the debate focused a provision in the bill that would scrap pay caps for managers of state-controlled companies imposed in 2009, but coalition MPs announced that this "stupidity" would be eliminated in a later reading.

State assets would be managed in accordance with a strategy that needs to be adopted within a year after the implementation of the act, a deadline that many MPs find too generous.

The assets would be divided into three groups: strategic ones in which the state would keep at least 50%, major ones in which the state would keep at least 25% and portfolio investments.

The holding would also take over the shares of insurer Zavarovalnica Triglav that are currently held by the pension purse manager ZPIZ.

It would meanwhile not manage state investments in international financial institutions and energy companies and those that are transferred to the bad bank.