The Slovenia Times

Slovenia to Get New Social Agreement

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Efforts to draft a social pact, an umbrella document laying out national priorities and guidelines on labour issues, were first launched by the Janez Drnovšek government in 1993 and the document was signed in 1995.

Reflecting the era of growth after a long slump following the break-up from the former Yugoslavia, the guidelines stipulated that the partners would strive to secure 5% GDP growth and keep inflation below 10%.

The same commitments were repeated in the 1996 social pact, which also mentioned adjustment of policies to EU standards as part of efforts to join the EU, boosting of exports, and acceleration of pension and tax reforms.

This was followed by a seven-year break and a new social pact was not concluded until 2003, during the Anton Rop government, also of the Liberal Democrats (LDS). Negotiations lasted 14 months and the agreement was in force until 2005.

The key achievement of the deal was a precise definition of the minimum wage in a special law.

The next social pact was adopted for the 2007-2009 period, during the tenure of the Janez Janša government, and focused on furthering growth and competitiveness while curbing public spending, reflecting the priorities of the centre-right government.

Multiple attempts were subsequently launched by all governments but none came closer than agreeing the negotiating standpoints.

The talks typically broke down when it came to labour market reform and public spending, areas that were put in sharp focus by the economic crisis.

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