According to Erjavec, a solution will be found, hopefully one that "will also be gentle to citizens". His words follow Finance Minister Uroš Čufer's statement that it would be hard to avoid a combination of an increase in value added tax (VAT) and spending cuts.

Coalition party presidents will meet again to discuss the best measures, Erjavec said, as the DL announced it would not support a raise in VAT and Erjavec's Pensioners' Party (DeSUS) said it would not consent to any cuts affecting pensioners.

President of the DL Gregor Virant said after the meeting that the VAT hike would not happen. Solutions will have to be found on the expenditure side, as "there is still room for saving" in the public sector, he stressed.

According to him, measures targeting expenses could be carried out without "burdening the rights, either public servants' or pensioners' rights".

Virant added that it was Čufer's turn to present alternative solutions and expressed the belief that consent will be reached.

Possible solutions will now be discussed by the coalition, which is expected to meet on Sunday according to information obtained by the STA, and adopt solutions at the political level.

Agriculture Minister Dejan Židan said the cabinet members discussed several options today, including possible cuts in all departments.

While Židan would not elaborate, he said the government would chose measures that are "friendliest for the people".

A report by TV Slovenija said the government mulled cutting subsidies for companies by EUR 50m, while another EUR 50m would be secured through cuts at 12 government departments.

Another EUR 10m would according to the report be secured through an increase in excise duties on alcohol and tobacco, while EUR 20-30m would be raised by increasing the real estate transaction tax for the sellers.