The Slovenia Times

Govt Lost Majority in Parliament

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Only five MPs voted against the proposal by the opposition and the coalition Social Democrats (SD) to cross out the provision under which indirect budget users, such as public institutes, would have to yield their surpluses to the state budget or the budgets of municipalities.

The provision was crossed out of the government-sponsored motion despite assurances by Finance Ministry State Secretary Mateja Vraničar that the proposal did not mean across-the board haircut on surpluses, but rather a case-by-case approach.

According to her, the proposal would have affected 1,600 indirect budget users which have accumulated a total of EUR 270m in savings over recent years.

At the proposal of the opposition Democratic Party (SDS), MPs also crossed out the proposal to increase the allowed scope of borrowing by majority state-owned non-financial companies.

The provision was to enable the Bank Asset Management Company to issue state-guaranteed bonds in order to mop up bad loans from Abanka Vipa and Banka Celje.

The SDS also managed to garner sufficient majority to topple the government proposal to stiffen the terms for advance payments from the budget for the drawing of EU funds.

Renata Brunskole of the senior coalition Positive Slovenia (PS) argued that the government provision, had it been adopted, would only worsen the situation regarding the use of EU funds.

"The coalition is gone, laws cannot be passed any longer," SDS deputy Andrej Šircelj (SDS) commented on the support for the opposition-sponsored proposal.

He proposed to the government to in fact assume the caretaker role because the laws that would mean a lessening of citizens' rights or an increase in tax burden would not get passed.

The SocDems won sufficient support as well for their amendment under which junior researchers, trainees in health institutions and some other categories of employees will be exempt from the prescribed staff cuts at indirect budget users.

The outgoing Finance Minister Uroš Čufer argued that the changes were absolutely needed for smooth implementation of the budgets for 2014 and 2015.

The vote was the first crucial test in parliament after Alenka Bratušek stepped down as prime minister as she lost the party leadership election in late April.

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