Coalition Contract Draft: Shift to The Left, Slower Reforms
There are several changes regarding public finances compared to the previous draft, most notably on privatisation, according to the document obtained by the STA.
The previous version said privatisation would be "managed and strategically analysed" on a case-by-case basis.
The new draft says the process will continue only if privatisation "preserves jobs, creates new jobs and ensures the growth of privatised companies".
The change indicates the growing role of the Pensioners' Party (DeSUS) and Social Democrats (SD), which are averse to privatisation and are the only two parties that look set to join Cerar's coalition.
Similarly, the latest draft abandons the plan to drop the highest tax bracket (50% tax on annual income over 71,000 EUR).
Nevertheless, the new coalition plans to gradually reduce the tax wedge and reform the tax brackets.
Another change, likely pushed for by the DeSUS, opens the door wider for higher pension expenditure.
The previous draft said the annual holiday allowance for pensioners would be conditional on the state of public finances.
The latest draft says only that an additional EUR 40m would be secured for the allowance.
The broader framework of pension indexation remains the same: pensions will be adjusted to wages when GDP growth exceeds 2.5%.
Additionally, the new government set a timetable for the creation of a demographic fund, which is determined by the act on the Slovenia Sovereign Holding.
The fund, which will finance public pensions, is to be established by 30 June 2015.
The SD, meanwhile, appears to have secured a mention for equal opportunities, which is dealt with in a special chapter of the agreement.
A 16th project, promotion of social enterprises, was added to the list of priority project, probably at the behest of the SD, which has been a vocal advocate of this field.
As for the government itself, it is projected to have 15 ministries, down from 16 in the previous version.
The latest draft might not be the last one, as Miro Cerar announced yesterday evening that the more liberal-minded Alliance of Alenka BratuĊĦek (ZaAB) would not be invited into the coalition.
