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The partners on the labour relations forum decided to launch talks with a view to signing a new social pact by the end of the year based on government negotiating positions that are to be put forward by mid-October.

Labour Minister Anja Kopač Mrak, who chairs the body, said the government was in favour of clear policies and a goal-oriented pact, with the specifics of individual policies to be left to relevant legislation.

Prime Minister Miro Cerar called for "dialogue in the true sense of the word", noting that Slovenia "really needs a social pact" that would help it emerge from the economic crisis.

While there was little substantive talk today, the social partners have already staked out their positions despite claims by the unions and employers that they were in favour of "common solutions" benefiting all stakeholders.

Jože Smole, the secretary general of the Association of Employers, told reporters that there was no fear about the adoption of a social pact by year's end "as long as our proposals are taken into account".

Igor Antauer, who heads an association of small businesses, noted that the unions were already making "unreasonable demands".

Dušan Semolič, the head of the ZSSS trade union association, said the social pact was "an opportunity not to be missed" and said deadlines should take the back seat to substance.

The unions do not oppose structural reforms but such measures must be "different than what some people think...they have to benefit the people, not erode the welfare state."

The statements suggest the first major issue in the talks will be public sector expenditure, an issue raised by Finance Minister Dušan Mramor, who reportedly said the public sector faced "tough times".

But Branimir Štrukelj, the head of a confederation representing public sector unions, said the unions would "not even talk about" wage cuts.

"It is absurd to go to the public sector looking for funds to kick-start the economy. It is the banks' job to open up and credit businesses normally," he said.

Even Antauer agreed, saying that "if we are held hostage by the public sector, we will not get anywhere" with the social pact.

The social pact has been subject to debate for years, since the expiry of the last such document, which was adopted in 2007 and was meant to be valid through 2009.

The reason the government wants to push through with a new pact is that this was one of eight European Commission recommendations for budgetary and reform measures to the country in June.