The Slovenia Times

Companies Warn Political Instability Bad for Business



"We believe practically everything in the country will stand still for at least a few months," Samo Hribar Milič, the head of the Chamber of Commerce and Industry (GZS), told the STA on Saturday.

Hribar Milič said the GZS kept a close eye on yesterday's PS congress, which ended with Janković's victory but as yet failed to provide clarity about the fate of Prime Minister Alenka Bratušek.

"Any instability is very unpleasant for business. We've been struggling to put the crisis behind us for six years because we have political instability. Yesterday's change will only make that worse," he said.

Hribar Milič nevertheless hopes the political crisis will not lead to renewed recession, since the economy is largely export-driven, though he thinks it could delay privatisation and foreign investment.

The Manager Association likewise cautions against instability. "Even though Zoran Janković is taking over...we feel the government's resignation would not be good for the economy at this point," the association said in a written statement.

"If the government resigns we will face higher financing costs, reduced dynamics of foreign investments, and erosion of competitiveness," the association said, adding that "the economy neither wants nor needs that".

The government's fate remains uncertain after the leadership vote in the small hours of Saturday.

While Bratušek had indicated she would resign as prime minister if Janković wins, she left the congress without making any statements.

Statements by MPs suggest she will make a decision Monday or Tuesday.


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