The Slovenia Times

Govt Economic Institute Head Calls for Radical Reforms

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"We have serious problems in many areas but we are also familiar with some good solutions from other countries. However, we are not bold enough to implement them in a wider social context," Vasle told the paper's Saturday supplement Objektiv.

He believes the reason for this is "our national character". "We want to think things through over and over again and include increasingly many people in the talks, which waters down the proposed changes."

The institutional framework is also such that it does not allow for quick changes, he added.

Commenting on the current economic growth, Vasle said that Slovenia was increasing its presence on key foreign markets. "If our market shares were plummeting at the beginning of the crisis, now they are rising again."

Investments too are increasing. Apart from a better drawing of EU funds for public investments, investments into equipment and machinery in the private sector are also picking up. Companies are allocating part of their income for investment, which points to a stable recovery, Vasle said, adding that wages were also rising.

Nevertheless, he reiterated that the growth was still fragile and uncertain, mostly based on exports. "We still cannot expect the growth to be as high as this year and rise further," he said.

According to the IMAD head, the government should make three New Year's resolutions. First, it should shift its focus from short-term measures to long-term economic goals while striving to boost competitiveness of the Slovenian economy on foreign markets.

Second, it should make demographic adjustments to balance the period of time people spend working with the time they spend in pension and analyse the income of the current working generation.

The third resolution concerns public finances; Vasle believes the government should not only balance the next budget but deal with the fact that Slovenia has been recording a structural deficit for the last two decades.

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