Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

27 February 2013

Reuters: Slovenia mandates new PM to halt dramatic decline


Slovenia dismissed its conservative-led government on Wednesday and offered a centre-left finance expert Alenka Bratusek the task of halting the Alpine country's fall from post-communist star to eurozone bailout candidate.

The 90-seat parliament voted 55-33 to dismiss Prime Minister Janez Jansa's ruling coalition. The baton passed to opposition Positive Slovenia leader Alenka Bratusek, who will become the country's first female prime minister if she manages to build a coalition around a platform to stabilise its finances and avoid going cap-in-hand to the European Union.

Spending cuts and allegations of government corruption have fuelled street protests of a kind not seen since Slovenia split from federal Yugoslavia in 1991 and escaped the bloodshed that would tear apart the rest of the region over the next decade. The downturn in Europe ravaged its vital export market, while €7 billion in bad loans exposed a toxic mixing of politics and finance of the kind that has bedevilled banks across the continent. Slovenia's €35 billion economy is estimated to have shrunk 2 per cent last year and unemployment is more than 12 per cent.

Given the policy differences in the likely new coalition - which would group the centre-right Civic List and pensioners' party Desus from the previous government with the two centre-left opposition parties - Bratusek is unlikely to have an easy ride. Estimates suggest a bailout for Slovenia could run to €5 billion, mostly for shoring up its banks. Although small by the standards of Greece or Ireland, a bailout would be politically awkward when the eurozone is also wrestling with financial woes in Spain, Italy, Portugal and Cyprus.

Full article



© Reuters


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment