Balanced-Budget Rule Adopted
Published on 11 december 2014The government was initially planning for the changes to take effect in 2016, though the centre-right opposition has insisted the legislation needed to become effective as of 2015, as stipulated in the Constitution.
At issue is the centre-right parties' insistence that austerity needs to be tough if Slovenia is to remain competitive, versos the left's argument that fiscal consolidation needs to be slow so as not to choke the fledgling recovery.
It was not immediately clear today what the starting date will be, as the government is yet to disclose the actual bill.
Nevertheless, Finance Minister Dušan Mramor said the structural deficit could be eliminated in four to five years while the 2015 budget would be "planned in this spirit".
Prime Minister Miro Cerar said the government had "done its best" to draw up legislation that would allow public finances to be consolidated.
The government bill is significantly milder than a legislative motion submitted by the opposition Democrats (SDS). Mramor described the SDS bill as excessively restricting fiscal policy's scope to tackle economic shocks.
The government's fiscal rule follows EU requirements, it does not make sense to make the rule more restrictive than needed, he said.
Source: The Slovenia Times
