Aleš Cantarutti, state secretary at the Economy Ministry, told members of the parliamentary agriculture committee Thursday that his ministry would take over the management of Lipica, with the requisite legislative changes expected within three months.

Lipica was split up in 2007 into a public institution managing the world famous stud farm, and a limited liability company called Lipica Turizem in 100% state ownership.

The split was completed in 2014, when Lipica Turizem was transferred onto the Slovenian Sovereign Holding (SSH) to fully separate commercial tourism services and public services related to the stud farm.

The model turned out to be unsuccessful, as the tourism division has been struggling with declining revenue and poor liquidity for years, with lack of capital becoming acute this year.

The decision ends months of uncertainty and disputes within the coalition. The chosen solution was promoted by Economy Minister Zdravko Počivalšek, while Agriculture Minister Dejan Židan had been in favour of retaining the current system or liquidating Lipica Turizem.

Boštjan Bizjak, the head of the stud farm, told the MPs today he was worried that the entire operation would be jeopardised by the poor performance of the tourism division.

The boss of Lipica Turizem, Darko Ravnikar, on the other hand, supports the merged arguing that Lipica is "nothing without tourism".