The Slovenia Times

Bratušek Govt Out of Office After Only 13 Months

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The outgoing government is Slovenia's third consecutive government to end its term prematurely in just over three and a half years and Slovenia is in for a second consecutive early election.

The eleventh government in independent Slovenia was sworn in on 20 March 2013 after coalition partners in the previous government withdrew support for Prime Minister Janez Janša, who was found in breach of corruption legislation.

Because Positive Slovenia (PS) head Zoran Janković was also found violating corruption legislation and potential coalition partners refused to cooperate with him, Bratušek took over the party and put together a government with the Social Democrats (SD), the Pensioners' Party (DeSUS) and the Citizens' List (DL).

The 44-year-old outgoing PM believes that one of her biggest achievements was managing to avoid a request for international financial aid. However, the price for this is being paid by taxpayers.

The government increased several taxes, with a VAT hike and a real estate tax causing the biggest stirs. The real estate tax was abolished by the Constitutional Court, which led to a recent increase on excise duties.

Slovenia moreover carried out a big bank recapitalisation under the outgoing government. More than EUR 3bn went to NLB, NKBM and Abanka in December.

Although unpopular among the people, the measures helped Slovenia's position on international financial markets and reversed a negative growth trend.

Only on Friday, Fitch ratings agency upgraded Slovenia's rating from negative to stable. The firm however also said that the political crisis, which ensued last weekend could lead to an early election and affect the country's reform efforts.

One of the more significant changes was the launch of privatisation in 15 state-owned companies of which some have been sold in the past year.

During the term of this government Slovenia also increased considerably its debt by taking out EUR 6.5bn in three bond issues. The country's public debt sky-rocketed to 60% of GDP and is expected to reach 80% of GDP next year.

Another problem is Slovenia's budget deficit, which exceeded EUR 1.5bn last year and is expected to reach EUR 1bn this year.

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