The Slovenia Times

Mramor Says He Will Not Rest Despite Good Results


The ministry will continue to strive for fiscal consolidation and restructuring of the economy, he said.

Commenting on the positive macroeconomic indicators, such as improvements on the labour market and GDP growth, the minister said there was no guarantee that the positive trends would continue.

"There are many external risks, such as the refugee crisis, China, Greece's instability, Ukraine, Russia, which could affect our borrowing," he said.

"We must keep in mind that we need four billion euros a year - three to refinance our loan and a billion to cover for the deficit."

He also pointed to the risks stemming from bad loans in the banking sector.

"But the biggest risk is internal and that is to be consumed by the idea that austerity is no longer necessary and that we can return to the 2008 spending," he said, warning that GDP available now was 15 percentage points lower than seven years ago.

The ministry will continue to strive to eliminate structural deficit, set priorities for the public spending and improve the quality of public investment.

In the process of financial and business restructuring of companies, a corporation is to be set up for the managing of claims to private SMEs.

The ministry also plans to change the tax system. "In order for the tax system to be efficient and transparent it must include as few tax breaks as possible," Mramor said.

He also announced lifting the burdens on labour and the introduction of a real estate tax, expectedly in 2017.

Commenting on the public finances, Mramor said the government had managed to curb the deficit "with great difficulty." That there is a good chance that the goal of bringing it to bellow 3% of GDP this year will be reached, he said.

Mramor therefore hopes that an agreement would be reached with the trade unions on the method and extent of scrapping of the crisis measures. "Here we will have to decide whether we want to increase wages or give more job opportunities to the youth," he said.

As regards privatisation, the Slovenian Sovereign Holding is to present an annual list of state-owned assets that are to be sold.

Changes are also planned for the Bank Asset Management Company, which will no longer strive to sell assets as soon as possible but will pursue the goal of a speedy and successful financial and business restructuring of companies in its ownership.


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