LJUBLJANA: The Slovenian government on Thursday adopted an action plan aimed at avoiding a bailout that included privatisations, tax increases and austerity measures.
The plan, which is to be sent shortly to Brussels, is seen as crucial to bolstering the economy of recession-hit Slovenia and to underpinning its troubled banking system, just seven weeks into the mandate of Prime Minister Alenka Bratusek.
According to initial details regarding the programme, presented by Bratusek at a press conference in Ljubljana, a planned "crisis" tax of 0.5-5.0 percent on all wages had been dropped, but could be used as a "plan B" if the new measures failed to provide expected revenues.
However, a hike in the value-added tax (VAT) that was initially foreseen in 2014, is to take effect as early as July 1, while a new property tax is to be introduced in January, rather than in 2015, as thought earlier.
"We are aware that no tax increase has a positive impact on economy," Bratusek told journalists as she presented the action plan together with Finance Minister Uros Cufer. "That is why we chose the one that we believe has the smallest consequences for economic growth," she said.
Fifteen companies were to be privatised, including the country's second-largest bank NKBM, Adria Airways, Ljubljana's airport, Slovenian Telekom and the food producer Zito, Cufer said.
Two-million-strong Slovenia, once a model EU and eurozone nation, has been struggling to jumpstart an economy in recession since 2011, and is faced with doomsday predictions that it might become the next country to need a bailout.
Last week, Moody's cut its sovereign debt rating by two notches to "junk" level, while the government must also convince voters who are fed up with their political leadership.
indiatimes.com
The plan, which is to be sent shortly to Brussels, is seen as crucial to bolstering the economy of recession-hit Slovenia and to underpinning its troubled banking system, just seven weeks into the mandate of Prime Minister Alenka Bratusek.
According to initial details regarding the programme, presented by Bratusek at a press conference in Ljubljana, a planned "crisis" tax of 0.5-5.0 percent on all wages had been dropped, but could be used as a "plan B" if the new measures failed to provide expected revenues.
However, a hike in the value-added tax (VAT) that was initially foreseen in 2014, is to take effect as early as July 1, while a new property tax is to be introduced in January, rather than in 2015, as thought earlier.
"We are aware that no tax increase has a positive impact on economy," Bratusek told journalists as she presented the action plan together with Finance Minister Uros Cufer. "That is why we chose the one that we believe has the smallest consequences for economic growth," she said.
Fifteen companies were to be privatised, including the country's second-largest bank NKBM, Adria Airways, Ljubljana's airport, Slovenian Telekom and the food producer Zito, Cufer said.
Two-million-strong Slovenia, once a model EU and eurozone nation, has been struggling to jumpstart an economy in recession since 2011, and is faced with doomsday predictions that it might become the next country to need a bailout.
Last week, Moody's cut its sovereign debt rating by two notches to "junk" level, while the government must also convince voters who are fed up with their political leadership.
indiatimes.com
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